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First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 8 An Act to implement conventions and protocols concluded between Canada and Finland, Mexico and Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income ASSENTED TO 12th DECEMBER, 2006 BILL S-5 SUMMARY The purpose of this enactment is to implement the most recent tax treaties that have been concluded with Finland, Mexico and Korea. The tax treaties implemented by this enactment reflect Canada’s effort to update Canada’s network of tax treaties. Those treaties are generally patterned on the Model Double Taxation Convention prepared by the Organization for Economic Co-operation and Development. Tax treaties have two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Since they contain taxation rules that are different from the provisions of the Income Tax Act, they become effective only after an Act giving them precedence over domestic legislation is passed by Parliament. The process is initiated by the tabling of a Bill such as this one. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55 ELIZABETH II —————— CHAPTER 8 An Act to implement conventions and protocols concluded between Canada and Finland, Mexico and Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income [Assented to 12th December, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Tax Conventions Implementation Act, 2006. PART 1 CANADA–FINLAND TAX CONVENTION 2. The Canada–Finland Tax Convention Act, 2006, whose text is as follows and whose schedule is set out in Schedule 1 to this Act, is hereby enacted: Short title 1. This Act may be cited as the Canada– Finland Tax Convention Act, 2006. Definition of “Convention” 2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of Finland set out in the schedule. Convention approved 3. The Convention is approved and has the force of law in Canada during the period that the Convention, by its terms, is in force. C. 8 Inconsistent laws — general rule 4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Convention and the provisions of any other law, the provisions of this Act and the Convention prevail to the extent of the inconsistency. Inconsistent laws — exception (2) In the event of any inconsistency between the provisions of the Convention and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency. Regulations 5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Convention or for giving effect to any of its provisions. Notification 6. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination. Tax Conventions Im PART 2 CANADA–MEXICO TAX CONVENTION 3. The Canada–Mexico Tax Convention Act, 2006, whose text is as follows and whose Schedules 1 and 2 are set out in Schedule 2 to this Act, is hereby enacted: Short title 1. This Act may be cited as the Canada– Mexico Tax Convention Act, 2006. Definition of “Convention” 2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of the United Mexican States set out in Schedule 1, as amended by the Protocol set out in Schedule 2. Convention approved 3. The Convention is approved and has the force of law in Canada during the period that the Convention, by its terms, is in force. Inconsistent laws — general rule 4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Convention and the provisions of Conventions fi any other law, the provisions of this Act and the Convention prevail to the extent of the inconsistency. Inconsistent laws — exception (2) In the event of any inconsistency between the provisions of the Convention and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency. Regulations 5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Convention or for giving effect to any of its provisions. Notification 6. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination. PART 3 CANADA–KOREA TAX CONVENTION 4. Schedule IV to An Act to implement conventions between Canada and Spain, Canada and the Republic of Austria, Canada and Italy, Canada and the Republic of Korea, Canada and the Socialist Republic of Romania and Canada and the Republic of Indonesia and Agreements between Canada and Malaysia, Canada and Jamaica and Canada and Barbados and a convention between Canada and the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation with respect to income tax, chapter 44 of the Statutes of Canada, 1980-81-82-83, is replaced by the Schedule IV set out in Schedule 3 to this Act. 5. For greater certainty, the Convention set out in Schedule IV to the Act, as enacted by chapter 44 of the Statutes of Canada, 1980-81-82-83 (“the 1978 Convention”), ceases to apply in accordance with Article 28 of the Convention set out in Schedule 3 to this Act (“the 2006 Convention”). C. 8 Tax Conventions Im 6. (1) Within 60 days after the day on which the 2006 Convention enters into force, the Minister of Finance shall cause to be published in the Canada Gazette a notice of the day on which the 2006 Convention enters into force and of the day on which the 1978 Convention terminates. (2) For greater certainty, the notification referred to in subsection (1) replaces the notification provided for under section 12 of the Act in respect of the coming into force of the 2006 Convention and of the day on which the 1978 Convention ceases to be effective. Conventions fiscales SCHEDULE 1 (Section 2) SCHEDULE (Section 2) CONVENTION BETWEEN CANADA AND FINLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of Canada and the Government of Finland, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows: ARTICLE 1 PERSONS COVERED This Convention shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 TAXES COVERED 1. The existing taxes to which this Convention shall apply are: a) in the case of Canada: the income taxes imposed by the Government of Canada under the Income Tax Act, (hereinafter referred to as “Canadian tax”); and b) in the case of Finland: (i) the state income taxes; (ii) the corporate income tax; (iii) the communal tax; (iv) the church tax; (v) the tax withheld at source from interest; and (vi) the tax withheld at source from non-residents’ income, (hereinafter referred to as “Finnish tax”). 2. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws. ARTICLE 3 GENERAL DEFINITIONS 1. For the purposes of this Convention, unless the context otherwise requires: a) the term “Canada”, used in a geographical sense, means the territory of Canada, including C. 8 Tax Conventions Implemen (i) any area beyond the territorial seas of Canada which, in accordance with international law and the laws of Canada, is an area in respect of which Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and (ii) the seas and airspace above every area referred to in clause (i) in respect of any activities carried on in connection with the exploration for or the exploitation of the natural resources referred to therein; b) the term “Finland” means the Republic of Finland and, when used in a geographical sense, means the territory of the Republic of Finland, and any area adjacent to the territorial waters of the Republic of Finland within which, under the laws of Finland and in accordance with international law, the rights of Finland with respect to the exploration and exploitation of the natural resources of the seabed and its subsoil may be exercised; c) the terms “a Contracting State” and “the other Contracting State” mean, as the context requires, Canada or Finland; d) the term “person” includes an individual, a trust, a company, a partnership and any other body of persons; e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; f) the term “enterprise” applies to the carrying on of any business; g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; h) the term “national”, in relation to a Contracting State, means: (i) any individual possessing the nationality or citizenship of that Contracting State; and (ii) any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State; i) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; j) the term “tax” means Canadian tax or Finnish tax, as the context requires; k) the term “competent authority” means: (i) in the case of Canada, the Minister of National Revenue or the Minister’s authorized representative, (ii) in the case of Finland, the Ministry of Finance or the Ministry’s authorized representative or the authority which is designated as competent authority by the Ministry; l) the term “business” includes the performance of professional services and of other activities of an independent character. Conventions fiscales 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. ARTICLE 4 RESIDENT 1. For the purposes of this Convention, the term “resident of a Contracting State” means: a) any person who, under the laws of that State, is liable to tax therein by reason of the person’s domicile, residence, place of management or any other criterion of a similar nature but does not include any person who is liable to tax in that State in respect only of income from sources in that State; and b) that State, or a political subdivision or local authority thereof, or a statutory body of that State or subdivision. For the purposes of this paragraph the term “statutory body” means any legal entity of a public character created by the laws of a Contracting State in which no person other than the State itself or a political subdivision thereof has an interest. 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then the individual’s status shall be determined as follows: a) the individual shall be deemed to be a resident only of the State in which the individual has a permanent home available; if the individual has a permanent home available in both States, the individual shall be deemed to be a resident only of the State with which the individual’s personal and economic relations are closer (centre of vital interests); b) if the State in which the individual’s centre of vital interests is situated cannot be determined, or if there is not a permanent home available to the individual in either State, the individual shall be deemed to be a resident only of the State in which the individual has an habitual abode; c) if the individual has an habitual abode in both States or in neither of them, the individual shall be deemed to be a resident only of the State of which the individual is a national; and d) if the individual is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a company is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which it is incorporated or otherwise constituted. C. 8 Tax Conventions Implemen 4. Where by reason of the provisions of paragraph 1 a person other than an individual or a company is a resident of both Contracting States, the competent authorities of the Contracting States shall by mutual agreement endeavour to settle the question and to determine the mode of application of the Convention to such person. In the absence of such agreement, such persons shall not be entitled to claim any relief or exemption from tax provided by the Convention except to the extent and in such manner as may be agreed upon by the competent authorities. ARTICLE 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term “permanent establishment” includes especially: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; and f) a mine, an oil or gas well, a quarry or any other place relating to the exploration for or the exploitation of natural resources. 3. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months. 4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independent status to whom paragraph 6 applies is acting on behalf of an enterprise and has, and Conventions fiscales habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such persons are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph. 6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. For the purposes of this Convention, the term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property and to income from the alienation of such property. 4. Where the ownership of shares or other corporate rights in a company entitles the owner of such shares or corporate rights to the enjoyment of immovable property held by the company, the income from the direct use, letting, or use in any other form of such right to enjoyment may be taxed in the Contracting State in which the immovable property is situated. 5. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise. C. 8 Tax Conventions Implemen ARTICLE 7 BUSINESS PROFITS 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on or has carried on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment. 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment and with all other persons. 3. In determining the profits of a permanent establishment, there shall be allowed those deductible expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. 4. No profits shall be attributable to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8 SHIPPING AND AIR TRANSPORT 1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 and Article 7, profits derived from the operation of ships used principally to transport passengers or goods exclusively between places in a Contracting State may be taxed in that State. 3. The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. ARTICLE 9 ASSOCIATED ENTERPRISES 1. Where Conventions fiscales a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of tax charged therein on those profits, where that other State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other. 3. A Contracting State shall not change the profits of an enterprise in the circumstances referred to in paragraph 1 after six years from the end of the year in which the profits which would be subject to such change would have accrued to an enterprise of that State. 4. The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, wilful default or neglect. ARTICLE 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which owns at least 10 per cent of the voting stock in the company paying the dividends; b) 15 per cent of the gross amount of the dividends in all other cases. The provisions of this paragraph shall not affect the taxation of the company on the profits out of which the dividends are paid. C. 8 Tax Conventions Implemen 3. The term “dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income which is subject to the same taxation treatment as income from shares by the taxation law of the State of which the company making the distribution is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. 6. Notwithstanding any provision in this Convention, Canada may impose on the earnings of a company attributable to permanent establishments in Canada, or on the earnings attributable to the alienation of immovable property situated in Canada by a company carrying on a trade in immovable property, a tax in addition to the tax which would be chargeable on the earnings of a company incorporated in Canada, provided that the rate of such additional tax so imposed shall not exceed 5 per cent of the amount of such earnings which have not been subjected to such additional tax in previous taxation years. For the purpose of this provision, the term “earnings” means the earnings attributable to the alienation of such immovable property situated in Canada as may be taxed by Canada under the provisions of Article 6 or of paragraph 1 of Article 13 as well as the profits attributable to a permanent establishment situated in Canada (including gains from the alienation of property forming part of the business property, referred to in paragraph 2 of Article 13, of such permanent establishments) in accordance with Article 7 in a year and previous years after deducting therefrom: a) business losses attributable to such permanent establishments (including losses from the alienation of property forming part of the business property of such permanent establishments) in such year and previous years; b) all taxes chargeable in Canada on such profits, other than the additional tax referred to herein; c) the profits reinvested in Canada, provided that the amount of such deduction shall be determined in accordance with the existing provisions of the law of Canada regarding the computation of the allowance in respect of investment in property in Canada, and any subsequent modification of those provisions which shall not affect the general principle hereof; and d) five hundred thousand Canadian dollars ($500,000) less any amount deducted under this subparagraph (i) by the company; or Conventions fiscales (ii) by a person related thereto from the same or a similar business as that carried on by the company. ARTICLE 11 INTEREST 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be taxable only in that other State to the extent that such interest: a) is a penalty charge for late payment; b) is paid by the central bank of a Contracting State to the central bank of the other Contracting State; or c) is paid by a purchasing enterprise to a selling enterprise in connection with the sale on credit of any equipment or merchandise, except where the sale is made between associated enterprises within the meaning of Article 9, subparagraph 1a) or b). 4. Notwithstanding the provisions of paragraph 2: a) interest arising in a Contracting State and paid in respect of indebtedness of the government of that State or of a political subdivision or a local authority thereof shall, provided that the interest is beneficially owned by a resident of the other Contracting State, be taxable only in that other State; b) interest arising in Finland and paid to a resident of Canada shall be taxable only in Canada if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by Export Development Canada; and c) interest arising in Canada and paid to a resident of Finland shall be taxable only in Finland if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by Finnvera or the Finnish Export Credit PLC. 5. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation law of the State in which the income arises. However, the term “interest” does not include income dealt with in Article 8 or Article 10. 6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, C. 8 Tax Conventions Implemen and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 7. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether the payer is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated. 8. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 12 ROYALTIES 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. 3. Notwithstanding the provisions of paragraph 2: a) copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or artistic work (but not including royalties in respect of motion picture films and works on film, videotape, or any other means of reproduction for use in connection with television) arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State; b) royalties for the use of, or the right to use, computer software or any patent or for information concerning industrial, commercial or scientific experience (but not including any such royalty provided in connection with a rental or franchise agreement) arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner of the royalties shall be taxable only in that other State; and c) royalties arising in a Contracting State and paid to the government of the other Contracting State shall be taxable only in that other State. Conventions fiscales 4. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright, patent, trade mark, design or model, plan, secret formula or process or other intangible property, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience, and includes payments of any kind in respect of motion-picture films and works on film, videotape, or any other means of reproduction for use in connection with television. 5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 6. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether the payer is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 13 CAPITAL GAINS 1. Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) may be taxed in that other State. 3. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State. 4. Gains derived by a resident of a Contracting State from the alienation of: C. 8 Tax Conventions Implemen a) shares or other corporate rights in a company, the property of which consists principally of immovable property situated in a Contracting State; or b) an interest in a partnership or a trust, the property of which consists principally from immovable property situated in a Contracting State, may be taxed in that State. For the purposes of this paragraph the term “immovable property” shall not include property, other than rental property, in which the business of the company, partnership or trust is carried on; however, this term shall include shares or other corporate rights in a company described in subparagraph a) above and an interest in a partnership or a trust described in subparagraph b) above. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident. 6. Where a resident of a Contracting State alienates property in the course of a corporate or other organization, reorganization, amalgamation, division or similar transaction and profit, gain or income with respect to such alienation is not recognized for the purpose of taxation in that State, if requested to do so by the person who acquires the property, the competent authority of the other Contracting State may agree, in order to avoid double taxation and subject to terms and conditions satisfactory to such competent authority, to defer the recognition of the profit, gain or income with respect to such property for the purpose of taxation in that other State until such time and in such manner as may be stipulated in the agreement. 7. The provisions of paragraph 5 shall not affect the right of either of the Contracting States to levy, according to its law, a tax on gains derived by an individual who is a resident of the other Contracting State, from the alienation of any property (other than property to which paragraph 8 applies) if the alienator: a) is a national of the first-mentioned State or was a resident of that State for ten years or more prior to the alienation of the property; and b) was a resident of that first-mentioned State at any time during the five years immediately preceding such alienation. 8. Where an individual ceases to be a resident of a Contracting State and by reason thereof is treated for the purposes of taxation by that State as having alienated property and is taxed in that State and immediately thereafter becomes a resident of the other Contracting State, the other Contracting State may tax gains in respect of the property only to the extent that such gains had not accrued before the individual ceased to be a resident of the first-mentioned State. However, this provision shall not apply to property, any gain from which that other State could have taxed in accordance with the provisions of this Article, other than this paragraph, if the individual had realized the gain before becoming a resident of that other State. Conventions fiscales ARTICLE 14 INCOME FROM EMPLOYMENT 1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days within any twelve-month period commencing or ending in the calendar year concerned; and b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and c) the remuneration is not borne by a permanent establishment which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State. However, if the remuneration is derived by a resident of the other Contracting State, it may also be taxed in that other State. ARTICLE 15 DIRECTORS’ FEES Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. ARTICLE 16 ARTISTES AND SPORTSPERSONS 1. Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that individual’s personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in that individual’s capacity as such accrues not to the entertainer or sportsperson personally but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. C. 8 Tax Conventions Implemen 3. The provisions of paragraph 2 shall not apply if it is established that neither the entertainer or the sportsperson nor persons related thereto, participate directly or indirectly in the profits of the person referred to in that paragraph. ARTICLE 17 PENSIONS AND ANNUITIES 1. Pensions and annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. Pensions arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise, and according to the laws of that State. However, in the case of periodic pension payments, the tax so charged shall not exceed 20 per cent of the gross amount of the payment. 3. Annuities arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise, and according to the laws of that State, but the tax so charged shall not exceed 15 per cent of the portion thereof that is subject to tax in that State. However, this limitation does not apply to lump-sum payments arising on the surrender, cancellation, redemption, sale or other alienation of an annuity, or to payments of any kind under an annuity contract the cost of which was deductible, in whole or in part, in computing the income of any person who acquired the contract. 4. Notwithstanding any provision of this Convention, war veterans pensions and allowances arising in a Contracting State and paid to a resident of the other Contracting State shall be exempt from tax in that other State to the extent that they would be exempt from tax if received by a resident of the first-mentioned State. 5. The term “annuity” as used in this Article means a stated sum payable periodically to an individual at stated times during the individual’s life, or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth (other than services rendered). ARTICLE 18 GOVERNEMENT SERVICE 1. a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. Conventions fiscales 2. The provisions of Articles 14, 15 and 16 shall apply to salaries, wages and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. ARTICLE 19 STUDENTS AND APPRENTICES Payments which a student, apprentice or business trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of that individual’s education or training receives for the purpose of that individual’s maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. ARTICLE 20 OTHER INCOME 1. Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 2. However, if such income is derived by a resident of a Contracting State from sources in the other Contracting State, such income may also be taxed in the State in which it arises, and according to the law of that State. However, in the case of income from a trust, the tax so charged shall, provided that the income is taxable in the Contracting State in which the recipient resides, not exceed 15 per cent of the gross amount of the income. 3. For the purposes of this Article, a trust does not include an arrangement whereby the contributions made to the trust are deductible for the purposes of taxation in Canada. ARTICLE 21 ELIMINATION OF DOUBLE TAXATION 1. In the case of Canada, double taxation shall be eliminated as follows: a) subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Finland on profits, income or gains arising in Finland shall be deducted from any Canadian tax payable in respect of such profits, income or gains; b) subject to the existing provisions of the law of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company which is a resident of Finland pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the C. 8 Tax Conventions Implemen credit shall take into account the tax payable in Finland by that first-mentioned company in respect of the profits out of which such dividend is paid; and c) where in accordance with any provision of the Convention income derived by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income, take into account the exempted income. 2. Subject to the provisions of Finnish law regarding the elimination of international double taxation (which shall not affect the general principle hereof) double taxation shall be eliminated in Finland as follows: a) Where a resident of Finland derives income which, in accordance with the provisions of this Convention, may be taxed in Canada, Finland shall, subject to the provisions of subparagraph b), allow as a deduction from the Finnish tax of that person, an amount equal to the Canadian tax paid under Canadian law and in accordance with the Convention, as computed by reference to the same income by reference to which the Finnish tax is computed. b) Dividends paid by a company which is a resident of Canada to a company which is a resident of Finland and which controls directly at least 10 per cent of the voting power in the company paying the dividends shall be exempt from Finnish tax. c) Where in accordance with any provision of the Convention income derived by a resident of Finland is exempt from tax in Finland, Finland may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 3. For the purposes of this Article, profits, income or gains of a resident of a Contracting State which are taxed in the other Contracting State in accordance with the Convention shall be deemed to arise from sources in that other State. ARTICLE 22 NON-DISCRIMINATION 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 3. Nothing in this Article shall be construed as obliging a Contracting State to grant to residents of the other Contracting State personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 4. In this Article, the term “taxation” means taxes which are the subject of this Convention. Conventions fiscales ARTICLE 23 MUTUAL AGREEMENT PROCEDURE 1. Where a person considers that the actions of one or both of the Contracting States result or will result for that person in taxation not in accordance with the provisions of this Convention, that person may, irrespective of the remedies provided by the domestic law of these States, address to the competent authority of the Contracting State of which that person is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted within three years from the first notification of the action which gives rise to taxation not in accordance with the Convention. 2. The competent authority referred to in paragraph 1 shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. 3. A Contracting State shall not after six years from the end of the taxable period in which the income concerned has accrued, increase the tax base of a resident of either of the Contracting States by including therein items of income which have also been charged to tax in the other Contracting State. This paragraph shall not apply in the case of fraud, wilful default or neglect. 4. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. In particular, the competent authorities of the Contracting State may consult together to endeavour to agree: a) to the same attribution of profits to a resident of a Contracting State and its permanent establishment situated in the other Contracting State; b) to the same allocation of income between a resident of a Contracting State and any associated person provided for in Article 9. 5. The competent authorities of the Contracting States may consult together for the elimination of double taxation in cases not provided for in the Convention. ARTICLE 24 EXCHANGE OF INFORMATION 1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States insofar as the taxation thereunder is not contrary to the Convention. In the case of Finland, such exchange of information also covers taxes imposed on behalf of its local authorities. The exchange of information is not restricted by Articles 1 and 2. C. 8 Tax Conventions Implemen 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to, the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy. 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. ARTICLE 25 DIPLOMATIC AGENTS AND CONSULAR OFFICERS 1. Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements. 2. Notwithstanding Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State which is situated in the other Contracting State or in a third State shall be deemed for the purposes of the Convention Conventions fiscales to be a resident of the sending State if that individual is liable in the sending State to the same obligations in relation to tax on total income as are residents of that sending State. 3. The Convention shall not apply to International Organizations, to organs or officials thereof and to persons who are members of a diplomatic mission, consular post or permanent mission of a third State, being present in a Contracting State and who are not liable in either Contracting State to the same obligations in relation to tax on their total income as are residents thereof. ARTICLE 26 MISCELLANEOUS RULES 1. The provisions of this Convention shall not be construed to restrict in any manner any exclusion, exemption, deduction, credit or other allowance now or hereafter accorded: a) by the laws of a Contracting State in the determination of the tax imposed by that State, or b) by any other agreement entered into by a Contracting State. 2. Nothing in the Convention shall be construed as preventing a Contracting State from imposing a tax on amounts included in the income of a resident of that State with respect to a partnership, trust, company or other entity, in which that resident has an interest. 3. The Convention shall not apply to any company, trust or other entity that is a resident of a Contracting State and is beneficially owned or controlled, directly or indirectly, by one or more persons who are not residents of that State, if the amount of the tax imposed on the income or capital of the company, trust or other entity by that State (after taking into account any reduction or offset of the amount of tax in any manner, including a refund, reimbursement, contribution, credit or allowance to the company, trust, or other entity or to any other person) is substantially lower than the amount that would be imposed by that State if all of the shares of the capital stock of the company or all of the interests in the trust or other entity, as the case may be, were beneficially owned by one or more individuals who were residents of that State. 4. Notwithstanding anything in the Convention, alimony and other similar payments arising in the Contracting State and paid to a resident of the other Contracting State who is subject to tax therein in respect thereof shall be taxable only in that other State but the amount taxable in that other State shall not exceed the amount that would be taxable in the first-mentioned State if the recipient were a resident thereof. 5. The competent authorities of the Contracting States may communicate with each other directly for the purpose of applying the Convention. 6. For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding that paragraph, any dispute C. 8 Tax Conventions Implemen between them as to whether a measure falls within the scope of the Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph 4 of Article 23 or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States. 7. Contributions in a year in respect of services rendered in that year paid by, or on behalf of, an individual who is a resident of a Contracting State to a pension plan that is recognized for tax purposes in the other Contracting State shall, during a period not exceeding in the aggregate 48 months, be treated in the same way for tax purposes in the first-mentioned State as a contribution paid to a pension plan that is recognized for tax purposes in that firstmentioned State, if a) such individual was contributing on a regular basis to the pension plan for a period ending immediately before that individual became a resident of the first-mentioned State; and b) the competent authority of the first-mentioned State agrees that the pension plan generally corresponds to a pension plan recognized for tax purposes by that State. For the purposes of this paragraph, “pension plan” includes a pension plan created under the social security system in a Contracting State. ARTICLE 27 ENTRY INTO FORCE 1. The Governments of the Contracting States shall notify each other that the constitutional requirements for the entry into force of this Convention have been complied with. 2. The Convention shall enter into force thirty days after the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect: a) in Canada: (i) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after 1 January in the calendar year in which the later of the notifications referred to in paragraph 1 takes place; and (ii) in respect of other Canadian tax, for taxation years beginning on or after 1 January in the calendar year in which the later of the notifications referred to in paragraph 1 takes place; b) in Finland: (i) in respect of taxes withheld at source, on income derived on or after 1 January in the calendar year in which the later of the notifications referred to in paragraph 1 takes place; and (ii) in respect of other taxes on income, for taxes chargeable for any taxable year beginning on or after 1 January in the calendar year in which the later of the notifications referred to in paragraph 1 takes place. Conventions fiscales 3. The provisions of the Convention between Canada and Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at Helsinki on May 28, 1990 (hereinafter referred to as “the 1990 Convention”) shall cease to have effect with respect to taxes to which this Convention applies in accordance with the provisions of paragraph 2. 4. The 1990 Convention shall terminate on the last date on which it has effect in accordance with the foregoing provisions of this Article. ARTICLE 28 TERMINATION This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year following after the period of 5 years from the date on which the Convention enters into force. In such event, the Convention shall cease to have effect: a) in Canada: (i) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after 1 January in the calendar year next following that in which the notice is given; and (ii) in respect of other Canadian tax, for taxation years beginning on or after 1 January in the calendar year next following that in which the notice is given; b) in Finland: (i) in respect of taxes withheld at source, on income derived on or after 1 January in the calendar year next following the year in which the notice is given; and (ii) in respect of other taxes on income, for taxes chargeable for any taxable year beginning on or after 1 January in the calendar year next following the year in which the notice is given. IN WITNESS WHEREOF the undersigned, duly authorized to that effect, have signed this Convention. DONE in duplicate at Helsinki, this 20th day of July 2006, in the English, French, Finnish and Swedish languages, each version being equally authentic. FOR THE GOVERNMENT OF CANADA Anne-Marie Bourcier Ambassador of Canada to the Republic of Finland FOR THE GOVERNMENT OF FINLAND Ulla-Maj Wideroos Coordinate Minister of Finance C. 8 Tax Conventions Implemen SCHEDULE 2 (Section 3) SCHEDULE 1 (Section 2) CONVENTION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED MEXICAN STATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of Canada and the Government of the United Mexican States, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows: I. SCOPE OF THE CONVENTION ARTICLE 1 PERSONS COVERED This Convention shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 TAXES COVERED 1. This Convention shall apply to taxes on income imposed on behalf of each Contracting State, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property. 3. The existing taxes to which the Convention shall apply are, in particular: a) in the case of Canada: the income taxes imposed by the Government of Canada under the Income Tax Act, (hereinafter referred to as “Canadian tax”); b) in the case of Mexico: the income tax under the Income Tax Law, (hereinafter referred to as “Mexican tax”). 4. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws. II. DEFINITIONS ARTICLE 3 GENERAL DEFINITIONS 1. For the purposes of this Convention, unless the context otherwise requires: Conventions fiscales a) the term “Canada”, used in a geographical sense, means the territory of Canada, including: (i) any area beyond the territorial sea of Canada that, in accordance with international law and the laws of Canada, is an area in respect of which Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and (ii) the sea and airspace above every area referred to in clause (i); b) the term “Mexico”, used in a geographical sense, means the territory of the United Mexican States, including: (i) any area beyond the territorial sea of Mexico that, in accordance with international law and its Political Constitution, is an area in respect of which Mexico may exercise rights with respect to the seabed and subsoil and their natural resources; (ii) the sea above every area referred to in clause (i); and (iii) the air space above the national territory and any other airspace in respect of which Mexico has jurisdiction in accordance with international law; c) the terms “a Contracting State” and “the other Contracting State” mean, as the context requires, Canada or the United Mexican States; d) the term “person” includes an individual, an estate, a trust, a company, a partnership and any other body of persons; e) the term “company” means any body corporate or any entity, which is treated as a body corporate for tax purposes; f) the term “enterprise” applies to the carrying on of any business; g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; h) the term “business” includes the performance of professional services and of other activities of an independent character; i) the term “competent authority” means: (i) in the case of Canada, the Minister of National Revenue or the Minister’s authorized representative; (ii) in the case of Mexico, the Ministry of Finance and Public Credit; j) the term “tax” means Canadian tax or Mexican tax, as the context requires; k) the term “national” means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State; l) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places within the other Contracting State. C. 8 Tax Conventions Implemen 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax law of that State prevailing over a meaning given to the term under other laws of that State. ARTICLE 4 RESIDENT 1. For the purposes of this Convention, the term “resident of a Contracting State” means: a) any person who, under the laws of that State, is liable to tax therein by reason of the person’s domicile, residence, place of management, place of incorporation or any other criterion of a similar nature; b) that State or a political subdivision or local authority thereof or any agency or instrumentality of any such State, subdivision or authority. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then the individual’s status shall be determined as follows: a) the individual shall be deemed to be a resident only of the State in which the individual has a permanent home available; if the individual has a permanent home available in both States, the individual shall be deemed to be a resident only of the State with which the individual’s personal and economic relations are closer (centre of vital interests); b) if the State in which the individual’s centre of vital interests cannot be determined, or if there is not a permanent home available to the individual in either State, the individual shall be deemed to be a resident only of the State in which the individual has an habitual abode; c) if the individual has an habitual abode in both States or in neither of them, the individual shall be deemed to be a resident only of the State of which the individual is a national; d) if the individual is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall by mutual agreement endeavour to settle the question and to determine the Conventions fiscales mode of application of the Convention to such person. In the absence of such agreement, such person shall not be entitled to claim any relief or exemption from tax provided by the Convention. ARTICLE 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term “permanent establishment” includes especially: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; and f) a mine, an oil or gas well, a quarry or any other place relating to the exploration for or the exploitation of natural resources. 3. The term “permanent establishment” likewise encompasses: a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than six months; b) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for the same or a connected project) within a Contracting State for a period or periods aggregating more than six months within any twelve month period; and c) the furnishing of professional services or other activities of an independent nature by an individual within a Contracting State if such person is present in the territory of such Contracting State for a period or periods exceeding in the aggregate 183 days within any twelve month period. For the purposes of computing the time limits referred to in subparagraph b), the activities carried on by an enterprise associated with another enterprise within the meaning of Article 9 shall be aggregated with the period during which the activities are carried on by the associated enterprise, if the activities of both enterprises are identical or substantially similar. 4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; C. 8 Tax Conventions Implemen c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another person; d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research, or for preparations relating to the placement of loans or for similar activities which have a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to e) provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person — other than an agent of an independent status to whom paragraph 7 applies — is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State in respect of any activities which that person undertakes for the enterprise, if such person has, and habitually exercises, in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph. 6. Notwithstanding the preceding provisions of this Article, an insurance company which is an enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risk situated therein through a representative who is employed or carries on business in that other State, other than an agent of an independent status to whom paragraph 7 applies. 7. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business and that, in their commercial or financial relations with the enterprise, conditions are not made or imposed that differ from those generally agreed to by independent agents. 8. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. Conventions fiscales III. TAXATION OF INCOME ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. For the purposes of this Convention, the term “immovable property” shall have the meaning which it has for the purposes of the taxation law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property and to income from the alienation of such property. 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise. ARTICLE 7 BUSINESS PROFITS 1. The business profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on or has carried on business as aforesaid, the business profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment. If a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State and alienates property to persons in that other State that is identical or similar to property alienated through that permanent establishment, the profits from such alienation shall be attributed to that permanent establishment. However, the profits derived from such alienation shall not be attributed to that permanent establishment if the company establishes that such alienation has been carried out for a purpose other than that of obtaining a benefit from the provisions of this Convention. 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on or has carried on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the business profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment and with all other persons. C. 8 Tax Conventions Implemen 3. In the determination of the business profits of a permanent establishment of an enterprise, there shall be allowed those deductible expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses, whether incurred in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than as a reimbursement of actual expenses) by the permanent establishment to the head office or any other office of the enterprise as royalties, fees or other similar payments in return for the use of patents or other rights, or by way of a commission, for specific services performed or for management, or, except in the case of a bank, as interest on moneys lent to the permanent establishment. 4. No business profits shall be attributed to a permanent establishment of an enterprise by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purposes of the preceding paragraphs, the business profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where business profits include items of income which are dealt with separately in other Articles of the Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8 SHIPPING AND AIR TRANSPORT 1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 and Article 7, profits derived by an enterprise of a Contracting State from a voyage of a ship or aircraft where the principal purpose of the voyage is to transport passengers or property between places in the other Contracting State may be taxed in that other State. 3. The provisions of paragraphs 1 and 2 shall also apply to profits referred to in those paragraphs derived by an enterprise of a Contracting State from its participation in a pool, a joint business or an international operating agency. 4. In this Article, a) the term “profits” includes: (i) profits, net profits, gross receipts and revenues derived directly from the operation of ships or aircraft in international traffic, and (ii) interest on sums generated directly from the operation of ships or aircraft in international traffic provided that such interest is incidental to the operation; b) the term “operation of ships or aircraft” in international traffic by an enterprise, includes: (i) the charter or rental of ships or aircraft, Conventions fiscales (ii) the rental of containers and related equipment, and (iii) the alienation of ships, aircraft, containers and related equipment, by that enterprise provided that such charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic but does not include the transportation by an enterprise by any other means of transport or the provision of accommodation. ARTICLE 9 ASSOCIATED PERSONS 1. Where a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any income or profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the income or profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the income or profits of an enterprise of that State — and taxes accordingly — income or profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the amount so included is income or profits which would have accrued to the first-mentioned enterprise if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall, where it agrees with the inclusion, make an appropriate adjustment to the amount of tax charged therein on that income or those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other. 3. A Contracting State shall not change the income or profits of an enterprise in the circumstances referred to in paragraph 1 after the expiry of the time limits provided in its national laws and, in any case, after five years from the end of the year in which the income or profits which would be subject to such change would, but for the conditions referred to in paragraph 1, have accrued to that enterprise. 4. The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, wilful default or neglect. ARTICLE 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. C. 8 Tax Conventions Implemen 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company that controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends; and b) 15 per cent of the gross amount of the dividends, in all other cases. The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. 6. Nothing in this Convention shall be construed as preventing a Contracting State from imposing on the earnings of a company attributable to a permanent establishment in that State, a tax in addition to the tax which would be chargeable on the earnings of a company which is a national of that State, except that any additional tax so imposed shall not exceed 5 per cent of the amount of such earnings which have not been subjected to such additional tax in previous taxation years. For the purpose of this provision, the term “earnings” means the profits or income attributable to a permanent establishment or immovable property in a Contracting State and gains that may be taxed in that State in accordance with the provisions of Article 13 after deducting therefrom all taxes, other than the additional tax referred to herein, imposed in that State on such profits, income or gains. Conventions fiscales 7. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares or other rights in respect of which the dividend is paid to take advantage of this Article by means of that creation or assignment. ARTICLE 11 INTEREST 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2: a) interest arising in a Contracting State may be taxed only in the other Contracting State where the beneficial owner is a resident of that other State and the person paying the interest or the recipient thereof is a Contracting State or its central bank, or a political subdivision or local authority thereof; b) interest arising in Mexico and paid to a resident of Canada who is the beneficial owner thereof shall be taxable only in Canada if it is paid in respect of a loan having a term of not less than three years made, guaranteed or insured, or a credit for such period extended, guaranteed or insured, by Export Development Canada, or by any other institution as may be agreed to from time to time between the competent authorities of the Contracting States; c) interest arising in Canada and paid to a resident of Mexico who is the beneficial owner thereof shall be taxable only in Mexico if it is paid in respect of a loan having a term of not less than three years made, guaranteed or insured, or a credit for such period extended, guaranteed or insured, by Banco Nacional de Comercio Exterior, S.N.C. or Nacional Financiera, S.N.C., or by any other institution as may be agreed to from time to time between the competent authorities of the Contracting States; d) interest arising in a Contracting State and paid to a resident of the other Contracting State which was constituted and is operated exclusively to administer or provide benefits under one or more pension, retirement or other employee benefits plans shall not be taxable in the first-mentioned State provided that: (i) the resident is the beneficial owner of the interest and is generally exempt from tax in the other State; (ii) the interest is not derived from carrying on a trade or a business; and (iii) the interest is not derived from a related person. 4. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income which is C. 8 Tax Conventions Implemen subjected to the same taxation treatment as income from money lent by the laws of the State in which the income arises. However, the term “interest” does not include income dealt with in Article 8 or Article 10. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person: a) the amount of the interest exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention; b) the conditions (including amount) of the debt-claim differ from those that would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the interest thereon may be taxable according to paragraph 2 of Article 10. 8. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the debt-claim in respect of which the interest is paid to take advantage of this Article by means of that creation or assignment. ARTICLE 12 ROYALTIES 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. 3. Notwithstanding the provisions of paragraph 2, copyright royalties and other like payments in respect of the production or reproduction of any cultural, dramatic, musical or other artistic work (but not including royalties in respect of motion picture films and works on film or videotape or other means of reproduction for use in Conventions fiscales connection with television) arising in a Contracting State and paid to a resident of the other Contracting State who is subject to tax thereon shall be taxable only in that other State. 4. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright, patent, trade mark, design or model, plan, secret formula or process or other intangible property, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning, industrial, commercial or scientific experience, and includes payments of any kind in respect of motion picture films and works on film, videotape or other means of reproduction for use in connection with television. 5. Without prejudice to whether or not such payments would be dealt with as royalties under this Article in the absence of this paragraph, the term “royalties” as used in this Article shall include payments of any kind as consideration for the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by satellite or by cable, optic fibre or similar technology, or the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by satellite or by cable, optic fibre or similar technology. 6. The term “royalties” also includes gains derived from the alienation of any right or property referred to in paragraphs 4 and 5, which are contingent on the productivity or use thereof. 7. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 8. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated. 9. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. C. 8 Tax Conventions Implemen 10. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the rights in respect of which the royalties are paid to take advantage of this Article by means of that creation or assignment. ARTICLE 13 CAPITAL GAINS 1. Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State. 3. Gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State. 4. Gains derived by a resident of a Contracting State from the alienation of: a) shares, participations or other rights in the capital of a company, the value of which is derived principally from immovable property situated in that other State, or b) an interest in a partnership, trust or estate the value of which is derived principally from immovable property situated in that other State, may be taxed in that other State. For the purposes of this paragraph, the term “immovable property” does not include any property, other than rental property, in which the business of the company, partnership, trust or estate is carried on. 5. In addition to gains taxable in accordance with the provisions of the preceding paragraphs, gains derived by a resident of a Contracting State from the alienation of shares, participation or other rights in the capital of a company or other legal person that is a resident of the other Contracting State may be taxed in that other State if the recipient of the gain, at any time during the twelve month period preceding such alienation, together with all persons who are related to the recipient, had a participation of at least 25 per cent in the capital of that company or other legal person. 6. Except as provided in Article 12, gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3, 4 and 5 shall be taxable only in the Contracting State of which the alienator is a resident. 7. The provisions of paragraph 6 shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property (other than property to which the provisions of paragraph 8 apply) derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during the six years immediately preceding the alienation of the property. Conventions fiscales 8. Where an individual who ceases to be a resident of a Contracting State, and immediately thereafter becomes a resident of the other Contracting State, is treated for the purposes of taxation in the first-mentioned State as having alienated a property and is taxed in that State by reason thereof, the individual may elect to be treated for the purposes of taxation in the other State as if the individual had, immediately before becoming a resident of that State, sold and repurchased the property for an amount equal to its fair market value at that time. ARTICLE 14 INCOME FROM EMPLOYMENT 1. Subject to the provisions of Articles 15 and 18, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State: a) if the remuneration earned in the other Contracting State in the calendar year concerned does not exceed sixteen thousand Canadian dollars ($16,000) or its equivalent in Mexican pesos or such other amount as may be specified and agreed in letters exchanged between the competent authorities of the Contracting States; or b) if (i) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the calendar year concerned, and (ii) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and such remuneration is not borne by a permanent establishment which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic by a resident of a Contracting State, shall be taxable only in that State. However, if the remuneration is derived by a resident of the other Contracting State it shall be taxable only in that other State. ARTICLE 15 DIRECTORS’ FEES 1. Directors’ fees and other similar payments derived by a resident of a Contracting State in that resident’s capacity as a member of the board of directors or a similar organ of a company which is a resident of the other Contracting State, may be taxed in that other State. C. 8 Tax Conventions Implemen 2. Salaries, wages and other similar remuneration derived by a resident of a Contracting State in that resident’s capacity as an official in a top-level managerial position of a company which is a resident of the other Contracting State may be taxed in that other State. ARTICLE 16 ARTISTES AND SPORTSPERSONS 1. Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that resident’s personal activities as such exercised in the other Contracting State, may be taxed in that other State. Income derived by an entertainer or a sportsperson who is a resident of a Contracting State from that resident’s personal activities relating to that resident’s reputation as an entertainer or sportsperson exercised in the other Contracting State may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in that individual’s capacity as such accrues not to the entertainer or athlete personally but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. 3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities performed in a Contracting State by a resident of the other Contracting State in the context of a visit in the firstmentioned State of a non-profit organization of the other State, provided the visit is substantially supported by public funds. ARTICLE 17 PENSIONS AND ANNUITIES 1. Pensions and annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. Pensions arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise, and according to the law of that State. However, in the case of periodic pension payments, the tax so charged shall not exceed the lesser of: a) 15 per cent of the gross amount of the payment; and b) the rate determined by reference to the amount of tax that the recipient of the payment would otherwise be required to pay for the year on the total amount of the periodic pension payments received by that individual in the year, if that individual were a resident of the Contracting State in which the payment arises. 3. Annuities, other than pensions, arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise, and according to the law of the State; but the tax so charged shall not exceed 15 per cent of the portion thereof that is subject to tax in that State. For the purposes of this Convention, the term “annuities” means a stated sum paid periodically at stated times during life or during a specified number of years, under an obligation to make the payments in return for Conventions fiscales adequate and full consideration (other than services rendered), but does not include a payment that is not a periodic payment or any annuity the cost of which was deductible for the purposes of taxation in the Contracting State in which it was acquired. 4. Notwithstanding anything in the Convention: a) war pensions and allowances (including pensions and allowances paid to war veterans or paid as a consequence of damages or injuries suffered as a consequence of a war) arising in a Contracting State and paid to a resident of the other Contracting State shall be exempt from tax in that other State to the extent that they would be exempt from tax if received by a resident of the first-mentioned State; and b) alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State who is subject to tax therein in respect thereof, shall be taxable only in that other State. However, where a deduction or a credit for alimony or a similar payment is not allowed for the purposes of taxation in the Contracting State in which such payment arises, such payment shall not be taxable in the other Contracting State. ARTICLE 18 GOVERNMENT SERVICE 1. a) Salaries, wages and similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in any other State shall be taxable only in the first-mentioned State. b) However, such salaries, wages and similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. 2. The provisions of paragraph 1 shall not apply to salaries, wages and similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. ARTICLE 19 STUDENTS Payments which a student, apprentice or business trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of that individual’s education or training receives for the purposes of that individual’s maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. C. 8 Tax Conventions Implemen ARTICLE 20 OTHER INCOME 1. Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 2. However, if such income is derived by a resident of a Contracting State from sources in the other Contracting State, such income may also be taxed in the State in which it arises, and according to the law of that State. Where such income is income from an estate or a trust, other than a trust to which contributions were deductible, the tax so charged shall, if the income is taxable in the Contracting State in which the beneficial owner is a resident, not exceed 15 per cent of the gross amount of the income. IV. METHODS FOR PREVENTION OF DOUBLE TAXATION ARTICLE 21 ELIMINATION OF DOUBLE TAXATION 1. In the case of Canada, double taxation shall be avoided as follows: a) subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Mexico on profits, income or gains arising in Mexico shall be deducted from any Canadian tax payable in respect of such profits, income or gains; b) subject to the existing provisions of the law of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company that is a resident of Mexico pays a dividend to a company that is a resident of Canada which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Mexico by that first-mentioned company in respect of the profits out of which such dividend is paid; and c) where, in accordance with any provision of the Convention, income derived by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income, take into account the exempted income. 2. In the case of Mexico, double taxation shall be avoided as follows: a) residents of Mexico may credit against the Mexican tax on income arising in Canada the income tax paid in Canada in any amount not exceeding the tax payable in Mexico on such income; and Conventions fiscales b) subject to the existing provisions of the law of Mexico, companies which are residents of Mexico may also credit against Mexican tax on dividends paid by companies that are residents of Canada the income tax paid in Canada on the profits out of which the dividends are paid. 3. For the purposes of this Article, profits, income or gains of a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other State. V. SPECIAL PROVISIONS ARTICLE 22 NON-DISCRIMINATION 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. 2. The taxation on a permanent establishment which a resident of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on residents of that other State carrying on the same activities. 3. Nothing in this Article shall be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 9 of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Any provisions of paragraph 4 shall not affect the operation of any provision of the taxation laws of a Contracting State: a) relating to the deductibility or recharacterization of interest and which is in force on the date of signature of this Convention (including any subsequent modification of such provisions that does not change the general nature thereof); or b) adopted after such date by a Contracting State and which is designed to ensure that a person who is not a resident of that State does not enjoy, under the laws of that State, a tax treatment that is more favourable than that enjoyed by residents of that State. C. 8 Tax Conventions Implemen 6. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of a third State, are or may be subjected. 7. Notwithstanding the provisions of Article 2, this Article shall apply to all taxes imposed by a Contracting State. ARTICLE 23 MUTUAL AGREEMENT PROCEDURE 1. Where a person considers that the actions of one or both of the Contracting States result or will result for that person in taxation not in accordance with the provisions of this Convention, that person may, irrespective of the remedies provided by the domestic law of those States, address to the competent authority of the Contracting State of which that person is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted within three years from the first notification of the action which gives rise to taxation not in accordance with the Convention. 2. The competent authority referred to in paragraph 1 shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. 3. A Contracting State shall not, after the expiry of the time limits provided in its national laws and, in any case, after five years from the end of the taxable period to which the income concerned was attributed, increase the tax base of a resident of either of the Contracting States by including therein items of income which have also been charged to tax in the other Contracting State. This paragraph shall not apply in the case of fraud, wilful default or neglect. 4. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention and may communicate with each other directly for the purpose of applying the Convention. 5. If any difficulty or doubt arising as to the interpretation or application of the Convention cannot be resolved by the competent authorities pursuant to the preceding paragraphs of this Article, the case may be submitted for arbitration if both competent authorities and the taxpayer agree and the taxpayer agrees in writing to be bound by the decision of the arbitration board. The decision of the arbitration board in a particular case shall be binding on both States with respect to that case. The procedure shall be established in an exchange of notes between the Contracting States. Conventions fiscales 6. For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding that paragraph, any dispute between them as to whether a measure falls within the scope of this Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph 4 of Article 23 or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States. ARTICLE 24 EXCHANGE OF INFORMATION 1. The competent authorities of the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws of the Contracting States concerning taxes of every kind and description imposed by a Contracting State insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information even though that other State may not need such information for its own purposes. The obligation contained in the preceding sentence is subject to the limitation of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall endeavour to provide information under this Article in the C. 8 Tax Conventions Implemen form requested, such as depositions of witnesses and copies of unedited original documents (including books, papers, statements, records, accounts or writings), to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because it relates to ownership interests in a person. ARTICLE 25 DIPLOMATIC AGENTS AND CONSULAR OFFICERS 1. Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements. 2. Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State that is situated in the other Contracting State or in a third State shall be deemed for the purposes of the Convention to be a resident of the sending State if that individual is liable in the sending State to the same obligations in relation to tax on total income as are residents of that sending State. ARTICLE 26 MISCELLANEOUS RULES 1. The provisions of this Convention shall not be construed to restrict in any manner any exemption, allowance, credit or other deduction accorded: a) by the laws of a Contracting State in the determination of the tax imposed by that State; or b) by any other agreement entered into by a Contracting State. 2. Nothing in the Convention shall be construed as preventing a Contracting State from imposing a tax on amounts included in the income of a resident of that State with respect to a partnership, trust, or controlled foreign affiliate, in which the resident has an interest. 3. The Convention shall not apply to any company, trust, partnership or other entity that is a resident of a Contracting State and is beneficially owned or controlled directly or indirectly by one or more persons who are not residents of that State, if the amount of the tax imposed on the income of the company, trust, partnership or entity by that State (after taking into account any reduction or offset of the amount of tax in any manner, including a refund, reimbursement, contribution, credit or allowance to the company, trust, partnership or other person) is substantially lower than the Conventions fiscales amount that would be imposed by the State if all of the shares of the capital stock of the company or all of the interests in the trust, partnership or any other entity, as the case may be, were beneficially owned by one or more individuals who were residents of that State. 4. Where under any provision of the Convention any income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State a person, in respect of that income, is subject to tax by reference to the amount thereof that is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under the Convention in the first-mentioned Contracting State shall apply only to so much of the income as is taxed in the other Contracting State. VI. FINAL PROVISIONS ARTICLE 27 ENTRY INTO FORCE 1. This Convention shall enter into force on the date on which the Contracting States exchange notes through diplomatic channels notifying each other that the last of such things has been done as is necessary to make the Convention applicable in Canada and in Mexico, as the case may be, and thereupon the Convention shall have effect: a) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year next following that in which the Convention enters into force; and b) in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year next following that in which the Convention enters into force. 2. The provisions of the Convention between the Government of Canada and the Government of the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at Ottawa on April 8, 1991, as well as the provisions of the Convention between the Government of Canada and the Government of the United Mexican States for the Exchange of Information with respect to Taxes signed at Mexico City on March 16, 1990 (hereinafter referred to as the “1990 Convention”) shall cease to have effect: a) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year next following that in which this Convention enters into force; and b) in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year next following that in which this Convention enters into force. C. 8 Tax Conventions Implemen ARTICLE 28 TERMINATION This Convention shall continue in effect indefinitely but either Contracting State may, on or before June 30 of any calendar year after the year in which it entered into force, give to the other Contracting State a notice of termination in writing through diplomatic channels; in such event, the Convention shall cease to have effect: a) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after the first day of January of the next following calendar year; and b) in respect of other taxes, for taxation years beginning on or after the first day of January of the next following calendar year. IN WITNESS WHEREOF, the undersigned, duly authorized by their respective governments, have signed this Convention. DONE in duplicate at Mexico City, this twelfth day of September 2006, in the English, French and Spanish languages, each version being equally authentic. FOR THE GOVERNMENT OF CANADA G. Daniel Caron Deputy Head of Mission and Minister-Counsellor, Embassy of Canada to the United Mexican States FOR THE GOVERNMENT OF THE UNITED MEXICAN STATES José Francisco Gil Diaz Secretary of Finance and Public Credit SCHEDULE 2 (Section 2) PROTOCOL At the moment of signing the Convention this day concluded between the Government of Canada and the Government of the United Mexican States for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall be an integral part of the Convention. 1. Notwithstanding the provisions of Article 2 of the Convention, residents of Canada, whose profits derived from Mexico are not taxable in Mexico in accordance with the provisions of Article 8 of the Convention, shall not be taxed under the Mexican Assets Tax Law on the assets used to produce such profits. 2. For the purposes of paragraph 6 of Article 11 of the Convention, in the case of Mexico, when the indebtedness is contracted by a resident of a Contracting State, and distributed between different permanent establishments situated in different countries, interest shall be deemed to arise in the Contracting State in which the permanent establishment that bears the payment of the interest is situated. Conventions fiscales 3. For the purposes of paragraph 8 of Article 12 of the Convention, in the case of Mexico, when the obligation to pay the royalties is contracted by a resident of a Contracting State and the right or property is effectively connected with different permanent establishments situated in different countries, royalties shall be deemed to arise in the Contracting State in which the permanent establishment that bears the payment of the royalties is situated. 4. With respect to Article 16 of the Convention, it is understood that income in respect of personal activities referred to in that Article includes income derived from the performance of independent personal services, the direct use, letting, or use in any other form of goods or the alienation thereof, where such income is related to the activities exercised by an entertainer or a sportsperson. 5. For the purposes of Articles 6 and 13 of the Convention it is understood that the term “immovable property situated in the other Contracting State” includes any right that allows the use or enjoyment of immovable property situated in that other Contracting State where that use or enjoyment relates to time sharing. 6. It is understood that the principles for exchanging information contained in the 1990 Convention and the obligations and undertakings of the Contracting States thereunder are continued under the provisions of this Convention. 7. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of subparagraph f), paragraph 4 of Article 5 of the Convention. IN WITNESS WHEREOF, the undersigned, duly authorized by their respective governments, have signed this Protocol. DONE in duplicate at Mexico City, this twelfth day of September 2006, in the English, French and Spanish languages, each version being equally authentic. FOR THE GOVERNMENT OF CANADA G. Daniel Caron Deputy Head of Mission and Minister-Counsellor, Embassy of Canada to the United Mexican States FOR THE GOVERNMENT OF THE UNITED MEXICAN STATES José Francisco Gil Diaz Secretary of Finance and Public Credit C. 8 Tax Conventions Implemen SCHEDULE 3 (Section 4) SCHEDULE IV CONVENTION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of Canada and the Government of the Republic of Korea (hereinafter referred to as the “Contracting States”), desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows: ARTICLE 1 PERSONS COVERED This Convention shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 TAXES COVERED 1. The existing taxes to which this Convention shall apply are: (a) in the case of Korea: (i) the income tax; (ii) the corporation tax; (iii) the inhabitant tax; and (iv) the special tax for rural development, (hereinafter referred to as “Korean tax”); and (b) in the case of Canada, the income taxes imposed by the Government of Canada under the Income Tax Act (hereinafter referred to as “Canadian tax”). 2. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws. ARTICLE 3 GENERAL DEFINITIONS 1. For the purposes of this Convention, unless the context otherwise requires: (a) the term “Korea” means the Republic of Korea, and when used in a geographical sense, means all the territory of the Republic of Korea, including its territorial sea, air space, and any other area adjacent to the territorial sea of the Republic of Korea which, in accordance with international law and the laws of Korea, Conventions fiscales is an area within which the sovereign rights or jurisdiction of the Republic of Korea with respect to the waters, the sea-bed and subsoil, and their natural resources may be exercised; (b) the term “Canada”, used in a geographical sense, means all the territory of Canada, including its territorial sea and air space over the territory and the territorial sea, and any other area adjacent to the territorial sea of Canada which, in accordance with its legislation and with international law, is an area within which the sovereign rights or jurisdiction of Canada with respect to the waters, sea-bed and subsoil, and their natural resources, may be exercised; (c) the terms “a Contracting State” and “the other Contracting State” mean Korea or Canada, as the context requires; (d) the term “tax” means Canadian tax or Korean tax, as the context requires; (e) the term “person” includes an individual, a trust, a company and any other body of persons; (f) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes; (g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; (h) the term “international traffic” means any voyage of a ship or aircraft operated by an enterprise of a Contracting State to transport passengers or property except where the principal purpose of the voyage is to transport passengers or property between places within the other Contracting State; (i) the term “national” means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State; (j) the term “competent authority” means: (i) in the case of Korea, the Minister of Finance and Economy or the Minister’s authorised representative; (ii) in the case of Canada, the Minister of National Revenue or the Minister’s authorised representative. 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. C. 8 Tax Conventions Implemen ARTICLE 4 RESIDENT 1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of the person’s domicile, residence, place of head or main office, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof or any agency or other instrumentality of any such State, subdivision or authority. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then the individual’s status shall be determined as follows: (a) the individual shall be deemed to be a resident only of the State in which the individual has a permanent home available and if the individual has a permanent home available in both States, the individual shall be deemed to be a resident only of the State with which the individual’s personal and economic relations are closer (centre of vital interests); (b) if the State in which the individual’s centre of vital interests is situated cannot be determined, or if there is not a permanent home available to the individual in either State, the individual shall be deemed to be a resident only of the State in which the individual has an habitual abode; (c) if the individual has an habitual abode in both States or in neither of them, the individual shall be deemed to be a resident only of the State of which the individual is a national; (d) if the individual is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall by mutual agreement endeavour to settle its status and to determine the application of the Convention. Insofar as no such agreement has been reached, such person shall be deemed not to be a resident of either Contracting State for the purposes of enjoying benefits under the provisions of the Convention. ARTICLE 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term “permanent establishment” includes especially: (a) a place of management; (b) a branch; (c) an office; Conventions fiscales (d) a factory; (e) a workshop; and (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. A building site, a construction, assembly, or installation project or supervisory activities in connection therewith, constitutes a permanent establishment only if such site, project or activities lasts for more than six months. 4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include: (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e) provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person — other than an agent of an independent status to whom paragraph 6 applies — is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. C. 8 Tax Conventions Implemen ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. For the purposes of this Convention, the term “immovable property” shall have the meaning which it has for the purposes of the relevant tax law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property and to income from the alienation of such property. 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. ARTICLE 7 BUSINESS PROFITS 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on or has carried on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment. 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment and with all other persons. 3. In the determination of the profits of a permanent establishment, there shall be allowed those deductible expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses, whether incurred in the State in which the permanent establishment is situated or elsewhere. 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. Conventions fiscales 5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8 SHIPPING AND AIR TRANSPORT 1. Profits from the operation of ships or aircraft in international traffic carried on by an enterprise of a Contracting State shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 and Article 7, profits derived by an enterprise of a Contracting State from a voyage of a ship or aircraft where the principal purpose of the voyage is to transport passengers or property between places in the other Contracting State may be taxed in that other State. 3. The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 4. For the purposes of this Article, the terms “profits from the operation of ships or aircraft in international traffic” include profits derived from: (a) the rental of ships or aircraft fully equipped, manned and supplied; (b) the occasional rental of a ship or aircraft on a bareboat charter; and (c) the use, maintenance or rental of containers used for the transport of goods and merchandise; where such rental or such use, maintenance or rental, as the case may be, is incidental to the operation of ships or aircraft in international traffic. ARTICLE 9 ASSOCIATED ENTERPRISES 1. Where (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations that differ from those that would be made between independent enterprises, then any income that would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, has not so accrued, may be included in the income of that enterprise and taxed accordingly. C. 8 Tax Conventions Implemen 2. Where a Contracting State includes in the income of an enterprise of that State — and taxes accordingly — income on which an enterprise of the other Contracting State has been charged to tax in that other State and the income so included is income that would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those that would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of tax charged therein on that income. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other. 3. A Contracting State shall not change the income of an enterprise in the circumstances referred to in paragraph 1 after the expiry of the time limits provided in its domestic laws and, in any case, after five years from the end of the year in which the income that would be subject to such change would, but for the conditions referred to in paragraph 1, have been attributed to that enterprise. 4. The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, wilful default or neglect. ARTICLE 10 DIVIDENDS 1. Dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: (a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) that controls directly at least 25 per cent of the voting power in the company paying the dividends; and (b) 15 per cent of the gross amount of the dividends, in all other cases. The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3. The term “dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provisions of paragraph 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. Conventions fiscales 5. Where a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. 6. Nothing in this Convention shall be construed as preventing a Contracting State from imposing on the earnings of a company attributable to a permanent establishment in that State, or the earnings attributable to the alienation of immovable property situated in that State by a company carrying on a trade in immovable property, a tax in addition to the tax that would be chargeable on the earnings of a company that is a national of that State, except that any additional tax so imposed shall not exceed 5 per cent of the amount of such earnings that have not been subjected to such additional tax in previous taxation years. For the purpose of this provision, the term “earnings” means the earnings attributable to the alienation of such immovable property situated in a Contracting State as may be taxed by that State under the provisions of Article 6 or of paragraph 1 of Article 13, and the profits, including any gains, attributable to a permanent establishment in a Contracting State in a year and previous years, after deducting therefrom all taxes, other than the additional tax referred to herein, imposed on such profits in that State. ARTICLE 11 INTEREST 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be taxable only in the other Contracting State if the interest is derived by: (a) the Government of the other Contracting State or of a political subdivision or local authority thereof; (b) the Central Bank of the other Contracting State; (c) a financial institution performing functions of a governmental nature, more than 90 per cent of the capital of which is owned by the Government or the Central Bank of the other Contracting State; (d) a resident of the other Contracting State, who is the beneficial owner thereof, and paid in respect of a loan or credit guaranteed or insured by a financial institution referred to in subparagraph (c) in order to promote imports or exports; or C. 8 Tax Conventions Implemen (e) a resident of the other Contracting State, who is the beneficial owner thereof, and received with respect to an indebtedness arising in consequence of the sale on credit by a resident of that other State of any industrial, commercial or scientific equipment, or any merchandise, except where the sale or indebtedness was between related persons. 4. For the purpose of paragraph 3, the term “Central Bank” or reference to a financial institution described in subparagraph (c) of that paragraph means: (a) in the case of Korea: (i) the Bank of Korea; (ii) the Korea Export-Import Bank; (iii) the Korea Development Bank; (iv) the Korea Investment Corporation; and (v) the Korea Export Insurance Corporation; (b) in the case of Canada: (i) the Bank of Canada; and (ii) Export Development Canada; (c) any other financial institution performing functions of a governmental nature, more than 90 per cent of the capital of which is owned by the Government or the Central Bank of a Contracting State, as may be specified and agreed upon in letters exchanged between the competent authorities of the Contracting States. 5. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income which is subjected to the same taxation treatment as income from money lent by the laws of the State in which the income arises. However, the term “interest” does not include income dealt with in Article 8 or Article 10. 6. The provisions of paragraph 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 7. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether the payer is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. Conventions fiscales 8. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds for whatever reason the amount that would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 12 ROYALTIES 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. 3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright, patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience, and includes payments of any kind in respect of motion picture films and works on film, videotape or other means of reproduction for use in connection with television. 4. The provisions of paragraph 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether the payer is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and another person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount that would have been agreed upon by the payer and the beneficial owner in the C. 8 Tax Conventions Implemen absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 13 CAPITAL GAINS 1. Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment that an enterprise of a Contracting State has or had in the other Contracting State or of movable property pertaining to a fixed base that is or was available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or other movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State. 4. Gains derived by a resident of a Contracting State from the alienation of: (a) shares, more than 50 per cent of the value of which is derived directly or indirectly from immovable property situated in the other State; or (b) an interest in a partnership or trust, more than 50 per cent of the value of which is derived directly or indirectly from immovable property situated in that other State; may be taxed in that other State. 5. Gains from the alienation of shares forming part of substantial interest in the capital of a company which is a resident of a Contracting State may be taxed in that State and according to the laws of that State. For the purposes of this paragraph, a substantial interest shall be deemed to exist when the alienator, alone or together with associated or related persons, holds directly or indirectly 25 per cent of the total shares issued by the company. 6. Gains from the alienation of any property, other than that referred to in the preceding paragraphs, shall be taxable only in the Contracting State of which the alienator is a resident. 7. The provisions of paragraph 6 shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property (other than property to which paragraph 8 applies) derived by an individual who is a resident of the other Contracting State and has been a resident of the firstmentioned State at any time during the five years immediately preceding the alienation of the property. 8. Where an individual ceases to be a resident of a Contracting State and by reason thereof is treated for the purposes of taxation by that State as having alienated property and is taxed in that State and at any time thereafter becomes a resident of the other Contracting Conventions fiscales State, the other Contracting State may tax gains in respect of the property only to the extent that such gains had not accrued before the individual ceased to be a resident of the first-mentioned State. However, this provision shall not apply to property, any gain from which that other State could have taxed in accordance with the provisions of this Article, other than this paragraph, if the individual had realized the gain before becoming a resident of that other State. 9. Where a resident of a Contracting State alienates property in the course of a corporate or other organization, reorganization, amalgamation, division or similar transaction and profit, gain or income with respect to such alienation is not recognized for the purpose of taxation in that State, if requested to do so by the person who acquires the property, the competent authority of the other Contracting State may allow, in order to avoid double taxation and subject to terms and conditions satisfactory to such competent authority, a deferral of the recognition of the profit, gain or income with respect to such property for the purpose of taxation in that other State, after consultation with the competent authority of the firstmentioned State, until such time and in such manner as may be stipulated in the agreement. ARTICLE 14 INDEPENDENT PERSONAL SERVICES 1. Income derived by an individual who is a resident of a Contracting State in respect of professional or similar services of an independent character shall be taxable only in that State unless the individual has a fixed base regularly available in the other Contracting State for the purpose of performing the services. If the individual has or had such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base. For the purposes of this Article, when an individual is present in that other State for the purpose of performing such services for a period or periods exceeding in the aggregate 183 days in any twelvemonth period commencing or ending in the fiscal year concerned, the individual shall be deemed to have a fixed base regularly available in that other State and the income that is derived from the services that are performed in that other State shall be deemed to be attributable to that fixed base. 2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 DEPENDENT PERSONAL SERVICES 1. Subject to the provisions of Articles 16, 18, and 19, salaries, wages and other remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. C. 8 Tax Conventions Implemen 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelvemonth period commencing or ending in the calendar year concerned; and (b) the remuneration is paid by, or on behalf of, a person who is not a resident of the other State; and (c) the remuneration is not borne by a permanent establishment or a fixed base that the person has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State unless the remuneration is derived by a resident of the other Contracting State. ARTICLE 16 DIRECTORS’ FEES Directors’ fees and other similar payments derived by a resident of a Contracting State in the capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. ARTICLE 17 ARTISTES AND SPORTSPERSONS 1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that resident’s personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in that individual’s capacity as such, accrues not to the entertainer or sportsperson personally, but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised, unless the entertainer, sportsperson or other person establishes that neither the entertainer or the sportsperson nor persons related thereto participate directly or indirectly in the profits of that other person in any manner, including the receipt of deferred remuneration, bonuses, fees, dividends, partnership distributions, or other distributions. 3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, income derived by entertainers or sportspersons who are residents of a Contracting State from the activities exercised in the other Contracting State under a special programme of cultural exchange agreed upon between the governments of the Contracting States, shall be exempt from tax in that other State. Conventions fiscales ARTICLE 18 PENSIONS AND ANNUITIES 1. Pensions and annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. Pensions arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise and according to the laws of that State. However, in the case of periodic pension payments, other than payments under the social security legislation in a Contracting State, the tax so charged shall not exceed the lesser of: (a) 15 per cent of the gross amount of the payment; and (b) the rate determined by reference to the amount of tax that the recipient of the payment would otherwise be required to pay for the year on the total amount of the periodic pension payments received by the individual in the year, if the individual were resident in the Contracting State in which the payment arises. 3. Annuities arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise and according to the law of that State, but the tax so charged shall not exceed 10 per cent of the portion thereof that is subject to tax in that State. However, this limitation does not apply to lump-sum payments arising on the surrender, cancellation, redemption, sale or other alienation of an annuity, or to payments of any kind under an annuity contract the cost of which was deductible, in whole or in part, in computing the income of any person who acquired the contract. 4. Notwithstanding anything in this Convention: (a) war pensions and allowances (including pensions and allowances paid to war veterans or paid as a consequence of damages or injuries suffered as a consequence of a war) arising in a Contracting State and paid to a resident of the other Contracting State; (b) benefits arising pursuant to the social security legislation of a Contracting State and paid to a resident of the other Contracting State; and (c) alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State; shall be taxable only in the State in which they arise. ARTICLE 19 GOVERNMENT SERVICE 1. (a) Remuneration, other than a pension, paid by, or out of funds created by one of the Contracting States or a political subdivision or a local authority thereof to any individual in respect of services rendered to that State or subdivision or local authority thereof in the discharge of functions of a governmental nature shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident of that State who: C. 8 Tax Conventions Implemen (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of performing the services. 2. The provisions of paragraph 1 shall not apply to remuneration in respect of services rendered in connection with any trade or business carried on for the purpose of profits by one of the Contracting States or a political subdivision or a local authority thereof. 3. The provisions of paragraph 1 shall likewise apply in respect of remuneration paid by the Bank of Korea, the Korea Export-Import Bank, the Korea Trade-Investment Promotion Agency, the Korea Investment Corporation, the Bank of Canada, Export Development Canada and any other government-owned instrumentality performing functions of a governmental nature as may be specified and agreed upon in letters exchanged between the competent authorities of the Contracting States. ARTICLE 20 STUDENTS Payments which a student, apprentice or business trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of that individual’s education or training receives for the purpose of that individual’s maintenance, education or training shall not be taxed in that State, if such payments arise from sources outside that State. ARTICLE 21 OTHER INCOME 1. Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 3. However, if such income is derived by a resident of a Contracting State from sources in the other Contracting State, such income may also be taxed in the State in which it arises and according to the law of that State. Conventions fiscales ARTICLE 22 ELIMINATION OF DOUBLE TAXATION 1. Subject to the provisions of Korean tax law regarding the allowance as credit against Korean tax of tax payable in any country other than Korea (which shall not affect the general principle thereof): (a) where a resident of Korea derives income from Canada which may be taxed in Canada under the laws of Canada in accordance with the provisions of this Convention, in respect of that income, the amount of Canadian tax payable shall be allowed as a credit against the Korean tax payable imposed on that resident. The amount of credit shall not, however, exceed that part of Korean tax as computed before the credit is given, which is appropriate to that income; and (b) where the income derived from Canada is a dividend paid by a company which is a resident of Canada to a company which is a resident of Korea which owns not less than 25 per cent of the total shares issued by that company, the credit shall take into account the Canadian tax payable by the company in respect of the profits out of which such dividend is paid. 2. In the case of Canada, double taxation shall be avoided as follows: (a) subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Korea on profits, income or gains arising in Korea shall be deducted from any Canadian tax payable in respect of such profits, income or gains; (b) subject to the existing provisions of the law of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company which is a resident of Korea pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 25 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Korea by that firstmentioned company in respect of the profits out of which such dividend is paid; and (c) where, in accordance with any provision of the Convention, income derived or capital owned by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income or capital, take into account the exempted income or capital. 3. For the purposes of this Article, profits, income or gains of a resident of a Contracting State that may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other State. C. 8 Tax Conventions Implemen ARTICLE 23 NON-DISCRIMINATION 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith that is more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. 2. The taxation on a permanent establishment that an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 3. Nothing in this Article shall be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities that it grants to its own residents. 4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith that is more burdensome than the taxation and any connected requirements to which other similar enterprises that are residents of the first-mentioned State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of a third State, are or may be subjected. 5. In this Article, the term “taxation” means taxes that are the subject of this Convention. ARTICLE 24 MUTUAL AGREEMENT PROCEDURE 1. Where a person considers that the actions of one or both of the Contracting States result or will result for that person in taxation not in accordance with the provisions of this Convention, that person may, irrespective of the remedies provided by the domestic law of those States, address to the competent authority of the Contracting State of which that person is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 2. The competent authority referred to in paragraph 1 shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. A Contracting State shall not, after the expiry of the time limits provided in its domestic laws and, in any case, after five years from the end of the taxable period to which the income concerned was attributed, increase the tax base of a resident of either of the Contracting States by including therein items of income that have Conventions fiscales also been charged to tax in the other Contracting State. This paragraph shall not apply in the case of fraud, wilful default or neglect. 4. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. 5. The competent authorities of the Contracting States may consult together for the elimination of double taxation in cases not provided for in the Convention and may communicate with each other directly for the purpose of applying the Convention. ARTICLE 25 EXCHANGE OF INFORMATION 1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes imposed by the government of a Contracting State insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to taxes or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State; (b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or (c) to supply information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). 3. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain that information in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State, notwithstanding that the other State may not, at that time, need such information for the purposes of its own tax. 4. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall endeavour to provide information under this Article in the form requested, such as depositions of witnesses and copies of unedited original documents (including books, papers, statements, C. 8 Tax Conventions Implemen records, accounts or writings), to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information, other than information related to residents of that State, solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because the information relates to ownership interests in a person. ARTICLE 26 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS 1. Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. 2. Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State that is situated in the other Contracting State or in a third State shall be deemed for the purposes of the Convention to be a resident of the sending State if that individual is liable in the sending State to the same obligations in relation to tax on total income as are residents of that sending State. 3. The Convention shall not apply to international organizations, to organs or officials thereof and to persons who are members of a diplomatic mission, consular post or permanent mission of a third State or group of States, being present in a Contracting State and who are not liable in either Contracting State to the same obligations in relation to tax on their total income as are residents thereof. ARTICLE 27 MISCELLANEOUS RULES 1. The provisions of this Convention shall not be construed to restrict in any manner any exemption, allowance, credit or other deduction accorded by the laws of a Contracting State in the determination of the tax imposed by that State. 2. Nothing in the Convention shall be construed as preventing a Contracting State from imposing a tax on amounts included in the income of a resident of that State with respect to a partnership, trust, or controlled foreign affiliate, in which that resident has an interest. 3. The Convention shall not apply to any company, trust or other entity that is a resident of a Contracting State and is beneficially owned or controlled, directly or indirectly, by one or more persons who are not residents of that State, if the amount of the tax imposed on the income or capital of the company, trust or other entity by that Conventions fiscales State (after taking into account any reduction or offset of the amount of tax in any manner, including a refund, reimbursement, contribution, credit or allowance to the company, trust, or other entity or to any other person) is substantially lower than the amount that would be imposed by that State if all of the shares of the capital stock of the company or all of the interests in the trust or other entity, as the case may be, were beneficially owned by one or more individuals who were residents of that State. However, this paragraph shall not apply if 90 per cent or more of the income on which the lower amount of tax is imposed is derived exclusively from the active conduct of a trade or business carried on by it other than an investment business. 4. For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding that paragraph, any dispute between them as to whether a measure falls within the scope of the Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph 4 of Article 24 or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States. ARTICLE 28 ENTRY INTO FORCE 1. The Governments of the Contracting States shall notify each other through diplomatic channels that the constitutional requirements for the entry into force of this Convention have been complied with. 2. The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect: (a) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year next following that in which the Convention enters into force; and (b) in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year next following that in which the Convention enters into force. 3. The Convention between Canada and the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed at Seoul on February 10, 1978 (hereinafter referred to as “the 1978 Convention”), shall cease to have effect from the dates on which this Convention becomes effective in accordance with paragraph 2. 4. Notwithstanding the provisions of paragraph 2, where any greater relief from tax would have been afforded by the provisions of the 1978 Convention, any such provision as aforesaid shall continue to have effect for taxation years ending on or before the last day of the calendar year next following that in which the Convention enters into force. C. 8 Tax Conventions Implemen 5. The 1978 Convention shall terminate on the first day of January of the second calendar year next following that in which the Convention enters into force. ARTICLE 29 TERMINATION This Convention shall continue in effect indefinitely but either Contracting State may, on or before June 30 of any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Contracting State, through diplomatic channels, written notice of termination. In such event, the Convention shall cease to have effect: (a) in respect of tax withheld at the source on amounts paid or credited to non-residents, after the end of that calendar year; and (b) in respect of other taxes, for taxation years beginning after the end of that calendar year. IN WITNESS WHEREOF the undersigned, duly authorized to that effect by their respective Governments, have signed this Convention. DONE in duplicate at Ottawa, this 5th day of September, 2006, in the English, French and Korean languages, each version being equally authentic. FOR THE GOVERNMENT OF CANADA V. Peter Harder Deputy Minister of Foreign Affairs FOR THE GOVERNMENT OF THE REPUBLIC OF KOREA Yim Sung-joon Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Canada PROTOCOL At the signing of the Convention between the Government of Canada and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the “Convention”), the undersigned have agreed upon the following provisions which shall be an integral part of the Convention: 1. With reference to subparagraph (a) of paragraph 1 of Article 2 of the Convention, it is understood that Korea has agreed to include the “inhabitant tax” and the “special tax for rural development” based on Korea’s understanding that the political subdivisions of Canada do not impose withholding tax on income arising in their respective subdivisions and paid to non-residents of Canada and that the political subdivisions recognize and take into account the provisions of Canada’s income tax agreements or conventions. 2. With reference to Article 10 of the Convention, the Contracting States may, through an exchange of diplomatic notes, agree to the insertion in that Article of the following provisions which will have effect from the date of the later of the two notes: Conventions fiscales “7. Notwithstanding the provisions of paragraph 2, dividends arising in a Contracting State and paid to an organisation that is operated in the other Contracting State exclusively to administer or provide benefits under one or more pension, retirement or employee benefits plans shall be exempt from tax in the firstmentioned State if: (a) the organisation is the beneficial owner of the shares on which the dividends are paid, holds those shares as an investment and is generally exempt from tax in the other State; (b) the organisation does not own directly or indirectly more than 5 per cent of the capital or 5 per cent of the voting stock of the company paying the dividends; and (c) the class of shares of the company on which the dividends are paid is regularly traded on an approved stock exchange. 8. For the purposes of paragraph 7, the term “approved stock exchange” means: (a) in the case of dividends arising in Korea, the Korea Stock Exchange and the Korea Securities Dealers Automated Quotations (KOSDAQ); (b) in the case of dividends arising in Canada, a Canadian stock exchange prescribed for the purposes of the Income Tax Act; and (c) any other stock exchange agreed to in letters exchanged between the competent authorities of the Contracting States.” 3. With reference to Article 11 of the Convention, the Contracting States may, through an exchange of diplomatic notes, agree to the insertion in that Article of the following provision which will have effect from the date of the later of the two notes: “9. Interest arising in a Contracting State and paid to a resident of the other Contracting State that is operated exclusively to administer or provide benefits under one or more pension, retirement or employee benefits plans shall not be taxable in the first-mentioned State provided that: (a) the resident is the beneficial owner of the interest and is generally exempt from tax in the other State; and (b) the interest is not derived from carrying on a trade or a business or from a related person.” 4. With reference to paragraph 3 of Article 12 of the Convention, it is understood that payments of any kind received as consideration for the use of, or the right to use, software shall be treated as royalties, if: (a) the source code is transferred to the user in addition to the software; or (b) the software is developed for, or adapted to, the specific demands of a particular end-user; or (c) the payments for the acquisition of the software are measured by reference to the productivity or use of such software. C. 8 Tax Conventions Implemen 5. With reference to paragraph 3 of Article 21 of the Convention, it is understood that, where the income arises in Canada and that income is from a trust, other than a trust to which contributions were deductible, the tax so charged by Canada shall, if the income is taxable in Korea, not exceed 15 per cent of the gross amount of the income. IN WITNESS WHEREOF the undersigned, duly authorized to that effect by their respective Governments, have signed this Protocol. DONE in duplicate at Ottawa, this 5th day of September, 2006, in the English, French and Korean languages, each version being equally authentic. FOR THE GOVERNMENT OF CANADA V. Peter Harder Deputy Minister of Foreign Affairs FOR THE GOVERNMENT OF THE REPUBLIC OF KOREA Yim Sung-joon Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Canada Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 12 An Act to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Income Tax Act and to make a consequential amendment to another Act ASSENTED TO 14th DECEMBER, 2006 BILL C-25 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Income Tax Act and to make a consequential amendment to another Act”. SUMMARY This enactment amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to enhance the client identification, record-keeping and reporting measures applicable to financial institutions and intermediaries. It establishes a registration regime for money services businesses and foreign exchange dealers and creates a new offence for not registering. It allows the Financial Transactions and Reports Analysis Centre of Canada to disclose additional information to law enforcement and intelligence agencies, and to make disclosures to additional agencies. It permits the Centre to exchange compliance-related information with its foreign counterparts and permits the Canada Border Services Agency to share information about the application of the cross-border currency reporting regime with its foreign counterparts. It also includes a consequential amendment to the Canada Border Services Agency Act. It creates an administrative monetary penalty regime. It amends the Income Tax Act to allow the Canada Revenue Agency to disclose to the Centre, the Royal Canadian Mounted Police and the Canadian Security Intelligence Service information about charities suspected of being involved in terrorist financing activities. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55 ELIZABETH II —————— CHAPTER 12 An Act to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Income Tax Act and to make a consequential amendment to another Act [Assented to 14th December, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2000, c. 17; 2001, c. 41, s. 48 AMENDMENTS TO THE PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT 2005, c. 38, s. 124(2) and par. 145(2)(h) 1. (1) The definition “Minister” in section 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: “Minister” « ministre » “Minister” means, in relation to sections 24.1 to 39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. (2) Section 2 of the Act is amended by adding the following in alphabetical order: “violation” « violation » “violation” means a contravention of this Act or the regulations that is designated as a violation by regulations made under subsection 73.1(1). 2. The heading of Part 1 of the Act is replaced by the following: C. 12 Proceeds of Crime (Money L RECORD KEEPING, VERIFYING IDENTITY, REPORTING OF SUSPICIOUS TRANSACTIONS AND REGISTRATION 2001, c. 41, s. 51(1) 3. (1) Paragraphs 5(g) and (h) of the Act are replaced by the following: (g) persons and entities authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments, or to provide portfolio management or investment advising services; (h) persons and entities engaged in the business of foreign exchange dealing, of remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network, or of issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity; (2) Paragraph 5(l) of the Act is replaced by the following: (l) departments and agents of Her Majesty in right of Canada or of a province that are engaged in the business of accepting deposit liabilities, that sell money orders to the public or that sell prescribed precious metals, while carrying out the activities described in regulations made under paragraph 73(1)(c); and 4. Section 6 of the Act and the heading before it are replaced by the following: RECORD KEEPING AND VERIFYING IDENTITY Record keeping 6. Every person or entity referred to in section 5 shall keep and retain prescribed records in accordance with the regulations. Verifying identity 6.1 Every person or entity referred to in section 5 shall verify, in the prescribed circumstances and in accordance with the regulations, the identity of any person or entity. 2006 2001, c. 41, s. 52 Recyclage des produits de la cri 5. Section 7 of the Act and the heading before it are replaced by the following: REPORTING AND OTHER REQUIREMENTS Transactions if reasonable grounds to suspect 7. Subject to section 10.1, every person or entity referred to in section 5 shall report to the Centre, in the prescribed form and manner, every financial transaction that occurs or that is attempted in the course of their activities and in respect of which there are reasonable grounds to suspect that (a) the transaction is related to the commission or the attempted commission of a money laundering offence; or (b) the transaction is related to the commission or the attempted commission of a terrorist activity financing offence. 2001, c. 41, s. 52 6. Subsection 7.1(1) of the Act is replaced by the following: Disclosure 7.1 (1) Every person or entity referred to in section 5 that is required to make a disclosure under section 83.1 of the Criminal Code or under section 8 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism shall also make a report on it to the Centre, in the prescribed form and manner. 7. (1) Subsection 9(1) of the Act is replaced by the following: Prescribed financial transactions 9. (1) Subject to section 10.1, every person or entity referred to in section 5 shall report to the Centre, in the prescribed form and manner, every prescribed financial transaction that occurs in the course of their activities. (2) Subsection 9(3) of the Act is replaced by the following: List of persons (3) Every person or entity referred to in section 5 shall establish and maintain a list, in the prescribed form and manner, of their clients in respect of whom a report would have been required under subsection (1) were it not for subsection (2). However, a person or an entity may choose to report a client’s transactions under subsection (1) instead of maintaining the list in respect of that client. C. 12 Proceeds of Crime (Money L 8. The Act is amended by adding the following after section 9.1: Inability to establish identity 9.2 No person or entity referred to in section 5 shall open an account for a client, in the prescribed circumstances, if it cannot establish the identity of the client in accordance with the prescribed measures. Politically exposed foreign persons 9.3 (1) Every person or entity that is referred to in section 5 and that is prescribed shall determine, in the prescribed circumstances and in accordance with the regulations, whether it is dealing with a politically exposed foreign person. Measures (2) If the person or entity determines that it is dealing with a politically exposed foreign person, the person or entity shall obtain the approval of senior management in the prescribed circumstances and take prescribed measures. Definition of “politically exposed foreign person” (3) For the purposes of this section, “politically exposed foreign person” means a person who holds or has held one of the following offices or positions in or on behalf of a foreign state: (a) head of state or head of government; (b) member of the executive council of government or member of a legislature; (c) deputy minister or equivalent rank; (d) ambassador or attaché or counsellor of an ambassador; (e) military officer with a rank of general or above; (f) president of a state-owned company or a state-owned bank; (g) head of a government agency; (h) judge; (i) leader or president of a political party represented in a legislature; or (j) holder of any prescribed office or position. It includes any prescribed family member of such a person. 2006 Correspondent banking Recyclage des produits de la cri 9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d) and (e) and every other entity that is referred to in section 5 and that is prescribed shall take the following measures before entering into a correspondent banking relationship with a prescribed foreign entity: (a) obtain prescribed information about the foreign entity and its activities; (b) ensure that the foreign entity is not a shell bank as defined in the regulations; (c) obtain the approval of senior management; (d) set out in writing their obligations and those of the foreign entity in respect of the correspondent banking services; and (e) any prescribed measures. Prohibition — shell bank (2) No person or entity shall enter into a correspondent banking relationship with a shell bank as defined in the regulations. Definition of “correspondent banking relationship” (3) For the purposes of this section, “correspondent banking relationship” means a relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d) and (e) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity services such as international electronic funds transfers, cash management, cheque clearing and any prescribed services. Electronic funds transfer 9.5 Every person or entity that is referred to in section 5 and that is prescribed shall, in respect of a prescribed electronic funds transfer that occurs in the course of their financial activities, (a) include with the transfer the name, address, and account number or other reference number, if any, of the client who requested it, and any prescribed information; (b) take reasonable measures to ensure that any transfer that the person or entity receives includes that information; and (c) take any prescribed measures. C. 12 Compliance program 9.6 (1) Every person or entity referred to in section 5 shall establish and implement, in accordance with the regulations, a program intended to ensure their compliance with this Part. Risk assessment (2) The program shall include the development and application of policies and procedures for the person or entity to assess, in the course of their activities, the risk of a money laundering offence or a terrorist activity financing offence. Special measures (3) If the person or entity considers that the risk referred to in subsection (2) is high, the person or entity shall take prescribed special measures for identifying clients, keeping records and monitoring financial transactions in respect of the activities that pose the high risk. Foreign subsidiaries 9.7 (1) Every person or entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for authorized foreign companies within the meaning of section 2 of the Insurance Companies Act, shall ensure that their wholly owned subsidiaries, that are located in a country that is not a member of the Financial Action Task Force and that carry out activities similar to those of persons and entities referred to in those paragraphs, develop and apply policies and procedures that are consistent with the requirements of sections 6, 6.1 and 9.6 when the laws of the country permit it. Record keeping (2) If the development or application by a subsidiary of a policy or procedure referred to in subsection (1) would contravene the laws of the country in which the subsidiary is located, the person or entity shall keep and retain a record of that fact in accordance with section 6. Definition of “Financial Action Task Force” (3) For the purposes of this section, “Financial Action Task Force” means the Financial Action Task Force on Money Laundering established in 1989. Proceeds of Crime (Money L 2006 Foreign branches Recyclage des produits de la cri 9.8 Every entity referred to in paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for authorized foreign companies within the meaning of section 2 of the Insurance Companies Act, shall ensure that their branches, that are located in a country that is not a member of the Financial Action Task Force and that carry out activities similar to those of persons and entities referred to in those paragraphs, develop and apply policies and procedures that are consistent with the requirements of sections 6, 6.1 and 9.6 when the laws of the country permit it. 9. The Act is amended by adding the following after section 10: Non-application to legal counsel 10.1 Sections 7 and 9 do not apply to persons or entities referred to in paragraph 5(i) or (j) who are, as the case may be, legal counsel or legal firms, when they are providing legal services. 10. The Act is amended by adding the following after section 11: REGISTRATION Application and Revocation Registration requirement 11.1 Except as otherwise provided in the regulations, every person or entity referred to in paragraph 5(h), those referred to in paragraph 5(l) that sell money orders to the public, and every other person or entity that is referred to in section 5 and that is prescribed must be registered with the Centre in accordance with this section and sections 11.11 to 11.2. 11. The Act is amended by adding the following before the heading “PART 2”: Ineligible for registration 11.11 (1) The following persons or entities are not eligible for registration with the Centre: (a) a listed person as defined in section 1 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism; (b) a listed entity as defined in subsection 83.01(1) of the Criminal Code; C. 12 Proceeds of Crime (Money L (c) a person or entity that has been convicted of any of the following: (i) a money laundering offence, (ii) a terrorist activity financing offence, (iii) an offence under this Act when convicted on indictment, (iv) an offence under any of sections 83.18 to 83.231, 354 or 467.11 to 467.13 of the Criminal Code, or (v) a conspiracy or an attempt to commit, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in subparagraphs (i) to (iv); (d) a person or entity that has been convicted on indictment or convicted more than once for an offence under Part X of the Criminal Code or under the Controlled Drugs and Substances Act except for the offence under subsection 4(1) of that Act; (e) an entity that is a corporation in respect of which a director, the chief executive officer, the president or the person who owns or controls, directly or indirectly, 20 per cent or more of the shares has been convicted on indictment of an offence under this Act; or (f) any prescribed person or entity. Revocation of registration (2) If the Centre becomes aware that a person or entity referred to in subsection (1) is registered, the Centre shall revoke the registration and shall, without delay, inform the person or entity of the revocation. Application for registration 11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner, shall include a list of the applicant’s agents, mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h), in selling money orders to the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities, and shall include any prescribed information. Recyclage des produits de la cri Agents, mandataries and branches (2) Any agent, mandatary or branch included on the list is not required to register with the Centre when they are acting in that capacity. Changes to information 11.13 An applicant or a person or entity registered with the Centre shall notify the Centre, in the prescribed form and manner, of any change to the information provided in the application or of any newly obtained information that should have been included in the application within 30 days after the day on which the applicant or the registered person or entity becomes aware of the change or obtains the new information. Clarifications — applicant 11.14 (1) An applicant shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the prescribed information and the list referred to in subsection 11.12(1) within 30 days after the day on which the request is made. Denial of application (2) If the applicant does not provide the Centre with the clarifications within the 30 days, the Centre may deny the application and shall, without delay, inform the applicant of the denial. Notice of registration 11.15 The applicant is registered with the Centre once the Centre adds the applicant to the registry referred to in subsection 54.1(1). The Centre shall, without delay, send the applicant notice of their registration. Denial of application 11.16 The Centre shall deny the application of any person or entity referred to in subsection 11.11(1) and shall, without delay, inform the applicant of the denial. Clarifications — registrant 11.17 (1) A registered person or entity shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the prescribed information and the list referred to in subsection 11.12(1) within 30 days after the day on which the request is made. Revocation of registration (2) If the registered person or entity does not provide the Centre with the clarifications within the 30 days, the Centre may revoke the registration and shall, without delay, inform the person or entity of the revocation. C. 12 Written reasons 11.18 Any decision to deny an application or revoke a registration must be in writing with reasons. Renewal of registration 11.19 A registered person or entity shall renew their registration in the prescribed form and manner every two years or within any longer prescribed period. Cessation of activity 11.2 When a registered person or entity ceases an activity for which they are registered, they shall notify the Centre in the prescribed form and manner within 30 days after the day on which they cease the activity. Proceeds of Crime (Money L Review Application for review by Director 11.3 (1) Within 30 days after the day on which the person or entity receives a decision to deny their application or revoke their registration, the person or entity may apply in writing to the Director of the Centre for a review of the decision and may provide any information in support of their application for review. Review by Director (2) The Director shall review the decision as soon as possible and shall take into consideration any information that the Director deems relevant. Decision of Director (3) The Director may either confirm the decision or substitute his or her own decision, and shall, without delay, serve notice of the decision with reasons on the person or entity, together with notice of the right of appeal under subsection 11.4(1). Appeal to Federal Court Appeal 11.4 (1) A person or entity that applied for a review under subsection 11.3(1) may appeal the Director’s decision to the Federal Court within 30 days after the day on which the decision is served, or within any longer period that the Court allows. Appeal (2) If the Director does not make a decision within 90 days after the day on which the Director received the application for review, the applicant may appeal to the Federal Court, within 30 days after the day on which the 90-day period expires, the decision to deny the application for registration or revoke the registration. Recyclage des produits de la cri Precautions against disclosure (3) In an appeal, the Court shall take every reasonable precaution, including, when appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person or entity of information referred to in subsection 55(1). 2001, c. 41, s. 54(2) 12. Paragraph 12(3)(a) of the French version of the Act is replaced by the following: a) la personne ayant en sa possession effective ou parmi ses bagages les espèces ou effets se trouvant à bord du moyen de transport par lequel elle arrive au Canada ou quitte le pays ou la personne qui, dans les circonstances réglementaires, est responsable du moyen de transport; 2001, c. 41, s. 56 13. Section 16 of the Act is replaced by the following: Search of conveyance 16. (1) An officer may, in order to determine whether there are, on or about a conveyance, currency or monetary instruments of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection, stop, board and search the conveyance, examine anything in or on it and open or cause to be opened any package or container in or on it and direct that the conveyance be moved to a customs office or other suitable place for the search, examination or opening. Search of baggage (2) An officer may, in order to determine whether there are, in baggage, currency or monetary instruments that are of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection, search the baggage, examine anything in it and open or cause to be opened any package or container in it and direct that the baggage be moved to a customs office or other suitable place for the search, examination or opening. 14. Section 24 of the Act is replaced with the following: C. 12 Review of forfeiture 24. The forfeiture of currency or monetary instruments seized under this Part is final and is not subject to review or to be set aside or otherwise dealt with except to the extent and in the manner provided by sections 24.1 and 25. Corrective measures 24.1 (1) The Minister, or any officer delegated by the President for the purposes of this section, may, within 30 days after a seizure made under subsection 18(1) or an assessment of a penalty referred to in subsection 18(2), Proceeds of Crime (Money L (a) cancel the seizure, or cancel or refund the penalty, if the Minister is satisfied that there was no contravention; or (b) reduce the penalty or refund the excess amount of the penalty collected if there was a contravention but the Minister considers that there was an error with respect to the penalty assessed or collected, and that the penalty should be reduced. Interest (2) If an amount is refunded to a person or entity under paragraph (1)(a), the person or entity shall be given interest on that amount at the prescribed rate for the period beginning on the day after the day on which the amount was paid by that person or entity and ending on the day on which it was refunded. 15. The portion of subsection 29(1) of the Act before paragraph (a) is replaced by the following: If there is a contravention 29. (1) If the Minister decides that subsection 12(1) was contravened, the Minister may, subject to the terms and conditions that the Minister may determine, Recyclage des produits de la cri 16. Subsection 30(1) of the Act is replaced by the following: Appeal to Federal Court 30. (1) A person who requests a decision of the Minister under section 27 may, within 90 days after being notified of the decision, appeal the decision by way of an action in the Federal Court in which the person is the plaintiff and the Minister is the defendant. 2001, c. 41, s. 63 17. (1) Subsection 32(1) of the Act is replaced by the following: Interest as owner 32. (1) If currency or monetary instruments have been seized as forfeit under this Part, any person or entity, other than the person or entity in whose possession the currency or monetary instruments were when seized, who claims in respect of the currency or monetary instruments an interest as owner or, in Quebec, a right as owner or trustee may, within 90 days after the seizure, apply by notice in writing to the court for an order under section 33. 2005, c. 38, par. 127(d) (2) Subsection 32(3) of the Act is replaced by the following: Notice to President (3) The applicant shall serve notice of the application and of the hearing on the President, or an officer delegated by the President for the purpose of this section, not later than 15 days after a day is fixed under subsection (2) for the hearing of the application. 18. Section 33 of the Act is replaced by the following: Order 33. If, on the hearing of an application made under subsection 32(1), the court is satisfied (a) that the applicant acquired the interest or right in good faith before the contravention in respect of which the seizure was made, (b) that the applicant is innocent of any complicity in the contravention of subsection 12(1) that resulted in the seizure and of any collusion in relation to that contravention, and C. 12 Proceeds of Crime (Money L (c) that the applicant exercised all reasonable care to ensure that any person permitted to obtain possession of the currency or monetary instruments seized would report them in accordance with subsection 12(1), the applicant is entitled to an order declaring that their interest or right is not affected by the seizure and declaring the nature and extent of their interest or right at the time of the contravention. 19. Subsection 34(1) of the English version of the Act is replaced by the following: Appeal 34. (1) A person or entity that makes an application under section 32 or Her Majesty in right of Canada may appeal to the court of appeal from an order made under section 33 and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judgments of a court. 2005, c. 38, par. 127(e) 20. The portion of subsection 35(1) of the Act before paragraph (a) is replaced by the following: Delivery after final order 35. (1) The Minister of Public Works and Government Services shall, after the forfeiture of currency or monetary instruments has become final and on being informed by the President that a person or entity has obtained a final order under section 33 or 34 in respect of the currency or monetary instruments, give to the person or entity 21. The heading before section 36 of the Act is replaced by the following: DISCLOSURE AND USE OF INFORMATION 22. (1) Section 36 of the Act is amended by adding the following after subsection (1): Use of information (1.1) An officer who has reasonable grounds to suspect that the information referred to in subsection (1) is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Recyclage des produits de la cri Refugee Protection Act or is relevant to an offence under any of sections 117 to 119, 126 or 127 of that Act may use that information. (2) The portion of subsection 36(5) of the Act before paragraph (a) is replaced by the following: Immunity from compulsory processes (5) Subject to section 36 of the Access to Information Act and sections 34 and 37 of the Privacy Act, an official is required to comply with a subpoena, an order for production of documents, a summons or any other compulsory process only if it is issued in the course of 23. The Act is amended by adding the following after section 38: Agreements with foreign states 38.1 The Minister, with the consent of the Minister designated for the purpose of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has powers and duties similar to those of the Canada Border Services Agency, whereby the Canada Border Services Agency may, if it has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence, provide information set out in a report made under section 20 to that government, institution or agency. 2001, c. 12, s. 1; 2004, c. 11, s. 42 24. Paragraphs 54(d) and (e) of the Act are replaced by the following: (d) subject to section 6 of the Privacy Act, shall retain each report referred to in paragraph (a) and all information referred to in paragraph (a) or (b) for 10 years beginning on the day on which the report is received or the information is received or collected; and (e) despite the Library and Archives of Canada Act, shall destroy, 15 years after the day on which a report referred to in paragraph (a) is received, any identifying information contained in the report if the report was not disclosed under subsection 55(3), 55.1(1) or 56.1(1) or (2). C. 12 Proceeds of Crime (Money L 25. The Act is amended by adding the following after section 54: Registrar 54.1 (1) The Centre is responsible for establishing and maintaining a registry of the prescribed information submitted under sections 11.12 to 11.3. Registry (2) The registry shall be organized in any manner and kept in any form that the Centre may determine. Public access (3) The Centre shall make available to the public the part of the information referred to in subsection (1) that is identifying information as defined in the regulations. Verification of information (4) The Centre may verify the information contained in any application for registration or any other information submitted under sections 11.12 to 11.3. Analysis of information (5) The Centre may analyse and assess the information referred to in subsection (4) and, in that case, that analysis or assessment is deemed to be an analysis or assessment conducted under paragraph 54(c). Retention of information (6) Subject to section 6 of the Privacy Act, the Centre shall retain information referred to in subsection (4) for 10 years beginning on the day on which the Centre denies the registration of an applicant, on which a registered person or entity notifies the Centre that they have ceased their activities, or on which a person or entity is no longer registered with the Centre. 2001, c. 41, s. 67(1) 26. (1) The portion of subsection 55(1) of the Act before paragraph (a) is replaced by the following: Disclosure by Centre prohibited 55. (1) Subject to subsection (3), sections 52, 55.1, 56.1 and 56.2, subsection 58(1) and sections 65 and 65.1 of this Act and to subsection 12(1) of the Privacy Act, the Centre shall not disclose the following: (2) Subsection 55(1) of the Act is amended by adding the following after paragraph (b.1): Recyclage des produits de la cri (b.2) information provided under sections 11.12 to 11.3 except for identifying information referred to in subsection 54.1(3); 2005, c. 38, s. 126(1) (3) Paragraph 55(3)(b) of the Act is replaced by the following: (b) the Canada Revenue Agency, if the Centre also determines that the information is relevant to an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes or duties imposed under an Act of Parliament administered by the Minister of National Revenue; 2005, c. 38, s. 126(2) (4) Subsection 55(3) of the Act is amended by striking out the word “and” at the end of paragraph (b.1) and by replacing paragraph (d) with the following: (c) the Canada Revenue Agency, if the Centre also has reasonable grounds to suspect that the information is relevant to determining (i) whether a registered charity, as defined in subsection 248(1) of the Income Tax Act, has ceased to comply with the requirements of that Act for its registration as such, or (ii) whether a person or entity that the Centre has reasonable grounds to suspect has applied to be a registered charity, as defined in subsection 248(1) of the Income Tax Act, is eligible to be registered as such; (d) the Canada Border Services Agency, if the Centre also determines that the information is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Refugee Protection Act or is relevant to an offence under any of sections 117 to 119, 126 or 127 of that Act; (e) the Canada Border Services Agency, if the Centre also determines that the information is relevant to investigating or prosecuting an offence of smuggling or attempting to smuggle goods subject to duties or an offence related to the importation of goods that are C. 12 Proceeds of Crime (Money L prohibited, controlled or regulated under the Customs Act or under any other Act of Parliament; and (f) the Communications Security Establishment, if the Centre also determines that the information is relevant to the mandate of the Communications Security Establishment referred to in paragraph 273.64(1)(a) of the National Defence Act. 2001, c. 41, s. 67(8) (5) The portion of subsection 55(7) of the Act before paragraph (b) is replaced by the following: Definition of “designated information” (7) For the purposes of subsection (3), “designated information” means, in respect of a financial transaction, an attempted financial transaction or an importation or exportation of currency or monetary instruments, (a) the name of any person or entity that is involved in the transaction, attempted transaction, importation or exportation, or any person or entity acting on their behalf; 2001, c. 41, s. 67(9) (6) Subsection 55(7) of the Act is amended by striking out the word “and” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) the name, address, electronic mail address and telephone number of each partner, director or officer of an entity referred to in paragraph (a), and the address and telephone number of its principal place of business; (f) any other similar identifying information that may be prescribed for the purposes of this section; (g) the details of the criminal record of a person or entity referred to in paragraph (a) and any criminal charges laid against them that the Centre considers relevant in the circumstances; (h) the relationships suspected by the Centre on reasonable grounds to exist between any persons or entities referred to in paragraph (a) and any other persons or entities; Recyclage des produits de la cri (i) the financial interest that a person or entity referred to in paragraph (a) has in the entity on whose behalf the transaction was made or attempted, or on whose behalf the importation or exportation was made; (j) the name of the person or entity referred to in paragraph (a) suspected by the Centre on reasonable grounds to direct, either directly or indirectly, the transaction, attempted transaction, importation or exportation; (k) the grounds on which a person or entity made a report under section 7 about the transaction or attempted transaction and that the Centre considers relevant in the circumstances; (l) the number and types of reports on which a disclosure is based; (m) the number and categories of persons or entities that made those reports; and (n) indicators of a money laundering offence or a terrorist activity financing offence related to the transaction, attempted transaction, importation or exportation. 2001, c. 41, s. 68 27. (1) The portion of subsection 55.1(3) of the Act before paragraph (b) is replaced by the following: Definition of “designated information” (3) For the purposes of subsection (1), “designated information” means, in respect of a financial transaction, an attempted financial transaction or an importation or exportation of currency or monetary instruments, (a) the name of any person or entity that is involved in the transaction, attempted transaction, importation or exportation, or any person or entity acting on their behalf; 2001, c. 41, s. 68 (2) Subsection 55.1(3) of the Act is amended by striking out the word “and” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) the name, address, electronic mail address and telephone number of each partner, director or officer of an entity referred to in paragraph (a), and the address and telephone number of its principal place of business; C. 12 Proceeds of Crime (Money L (f) any other similar identifying information that may be prescribed for the purposes of this section; (g) the details of the criminal record of a person or entity referred to in paragraph (a) and any criminal charges laid against them that the Centre considers relevant in the circumstances; (h) the relationships suspected by the Centre on reasonable grounds to exist between any persons or entities referred to in paragraph (a) and any other persons or entities; (i) the financial interest that a person or entity referred to in paragraph (a) has in the entity on whose behalf the transaction was made or attempted, or on whose behalf the importation or exportation was made; (j) the name of the person or entity referred to in paragraph (a) suspected by the Centre on reasonable grounds to direct, either directly or indirectly, the transaction, attempted transaction, importation or exportation; (k) the grounds on which a person or entity made a report under section 7 about the transaction or attempted transaction and that the Centre considers relevant in the circumstances; (l) the number and types of reports on which a disclosure is based; (m) the number and categories of persons or entities that made those reports; and (n) indicators of a money laundering offence or a terrorist activity financing offence related to the transaction, attempted transaction, importation or exportation. 2001, c. 41, s. 68 28. (1) Subsection 56.1(3) of the English version of the Act is replaced by the following: Other disclosure (3) In order to perform its functions under paragraph 54(c), the Centre may direct queries to an institution or agency in respect of which Recyclage des produits de la cri an agreement or arrangement referred to in subsection (1) or (2) has been entered into, and in doing so it may disclose designated information. 2001, c. 41, s. 68 (2) The portion of subsection 56.1(5) of the Act before paragraph (b) is replaced by the following: Definition of “designated information” (5) For the purposes of this section, “designated information” means, in respect of a financial transaction, an attempted financial transaction or an importation or exportation of currency or monetary instruments, (a) the name of any person or entity that is involved in the transaction, attempted transaction, importation or exportation, or any person or entity acting on their behalf; 2001, c. 41, s. 68 (3) Subsection 56.1(5) of the Act is amended by striking out the word “and” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) the name, address, electronic mail address and telephone number of each partner, director or officer of an entity referred to in paragraph (a), and the address and telephone number of its principal place of business; (f) any other similar identifying information that may be prescribed for the purposes of this section; (g) the details of the criminal record of a person or entity referred to in paragraph (a) and any criminal charges laid against them that the Centre considers relevant in the circumstances; (h) the relationships suspected by the Centre on reasonable grounds to exist between any persons or entities referred to in paragraph (a) and any other persons or entities; (i) the financial interest that a person or entity referred to in paragraph (a) has in the entity on whose behalf the transaction was made or attempted, or on whose behalf the importation or exportation was made; (j) the name of the person or entity referred to in paragraph (a) suspected by the Centre on reasonable grounds to direct, either C. 12 Proceeds of Crime (Money L directly or indirectly, the transaction, attempted transaction, importation or exportation; (k) the grounds on which a person or entity made a report under section 7 about the transaction or attempted transaction and that the Centre considers relevant in the circumstances; (l) the number and types of reports on which a disclosure is based; (m) the number and categories of persons or entities that made those reports; and (n) indicators of a money laundering offence or a terrorist activity financing offence related to the transaction, attempted transaction, importation or exportation. 29. The Act is amended by adding the following after section 56.1: Usefulness of information 56.2 When the Centre receives information from an institution or agency under an agreement or arrangement referred to in subsection 56(1) or (2), the Centre may provide it with an evaluation of whether the information is useful to the Centre. 2001, c. 41, s. 70 30. Subsection 59(1) of the Act is replaced by the following: Immunity from compulsory processes 59. (1) Subject to section 36 of the Access to Information Act and sections 34 and 37 of the Privacy Act, the Centre, and any person who has obtained or who has or had access to any information or documents in the course of exercising powers or performing duties and functions under this Act, other than Part 2, is required to comply with a subpoena, a summons, an order for production of documents, or any other compulsory process only if it is issued in the course of court proceedings in respect of a money laundering offence, a terrorist activity financing offence or an offence under this Act in respect of which an information has been laid or an indictment preferred or, in the case of an order for production of documents, if it is issued under section 60, 60.1 or 60.3. Recyclage des produits de la cri 2001, c. 41, s. 71(1) 31. (1) Subsection 60(1) of the Act is replaced by the following: Limitation on orders for disclosure of information 60. (1) Despite the provisions of any other Act, except sections 49 and 50 of the Access to Information Act and sections 48 and 49 of the Privacy Act, an order for disclosure of information may be issued in respect of the Centre only under subsection (4) or section 60.1 or 60.3. (2) Paragraph 60(3)(b) of the Act is replaced by the following: (b) the person or entity in relation to which the information or documents referred to in paragraph (c) are required; 2001, c. 41, s. 71(2) (3) Paragraph 60(3)(d) of the Act is replaced by the following: (d) the facts relied on to justify the belief, on reasonable grounds, that the person or entity referred to in paragraph (b) has committed or benefited from the commission of a money laundering offence or a terrorist activity financing offence and that the information or documents referred to in paragraph (c) are likely to be of substantial value, whether alone or together with other material, to an investigation in respect of that offence; (4) Paragraph 60(3)(f) of the Act is replaced by the following: (f) information respecting all previous applications brought under this section in respect of any person or entity being investigated for the offence. (5) Subsection 60(8) of the Act is amended by striking out the word “or” at the end of paragraph (c) and by adding the following after that paragraph: (c.1) disclosure of the information or document would be injurious to national security; or C. 12 Proceeds of Crime (Money L (6) Subsection 60(16) of the Act is replaced by the following: Copies (16) Where any information or document is examined or provided under subsection (4), the person by whom it is examined or to whom it is provided or any employee of the Centre may make, or cause to be made, one or more copies of it and any copy purporting to be certified by the Director to be a copy made under this subsection is evidence of the nature and content of the original information or document and has the same probative force as the original information or document would have had if it had been proved in the ordinary way. 32. (1) Subsection 60.1(7) of the Act is amended by striking out the word “or” at the end of paragraph (c) and by adding the following after that paragraph: (c.1) disclosure of the information or document would be injurious to national security; or 2001, c. 41, s. 72 (2) Subsection 60.1(15) of the Act is replaced by the following: Copies (15) Where any information or document is examined or provided under subsection (3), the person by whom it is examined or to whom it is provided or any employee of the Centre may make, or cause to be made, one or more copies of it and any copy purporting to be certified by the Director to be a copy made under this subsection is evidence of the nature and content of the original information or document and has the same probative force as the original information or document would have had if it had been proved in the ordinary way. 33. The Act is amended by adding the following after section 60.2: Purpose of application 60.3 (1) If the Centre makes a disclosure under paragraph 55(3)(b), the Commissioner of Revenue, appointed under section 25 of the Canada Revenue Agency Act, may, for the purposes of an investigation in respect of an offence that is the subject of the disclosure, after having obtained the approval of the Minister of National Revenue, make an application for an order for disclosure of information. 2006 Application Recyclage des produits de la cri (2) An application shall be made ex parte in writing to a judge and be accompanied by an affidavit sworn on the information and belief of the Commissioner — or a person specially designated by the Commissioner for that purpose — deposing to the following matters: (a) the offence under investigation; (b) the person or entity in relation to which the information or documents referred to in paragraph (c) are required; (c) the type of information or documents — whether in written form, in the form of a report or record or in any other form — obtained by or on behalf of the Director in respect of which disclosure is sought; (d) the facts relied on to justify the belief, on reasonable grounds, that the person or entity referred to in paragraph (b) has committed or benefited from the commission of an offence referred to in subsection (1) and that the information or documents referred to in paragraph (c) are likely to be of substantial value, whether alone or together with other material, to an investigation in respect of that offence; (e) a summary of any information already received from the Centre in respect of the offence; and (f) information respecting all previous applications brought under this section in respect of any person or entity being investigated for the offence. Order for disclosure of information (3) Subject to the conditions that the judge considers advisable in the public interest, the judge to whom an application is made may order the Director — or any person specially designated in writing by the Director for the purposes of this section — to allow an employee of the Canada Revenue Agency named in the order to have access to and examine all information and documents to which the application relates or, if the judge considers it necessary in the circumstances, to produce the information and documents to the employee and allow the employee to remove them, if the judge is satisfied C. 12 Proceeds of Crime (Money L (a) of the matters referred to in paragraph (2)(d); and (b) that there are reasonable grounds for believing that it is in the public interest to allow access to the information or documents, having regard to the benefit likely to accrue to the investigation if the access is obtained. The order must be complied with within the period following the service of the order that the judge may specify. Execution in another province (4) A judge may, if the information or documents in respect of which disclosure is sought are in a province other than the one in which the judge has jurisdiction, issue an order for disclosure and the order may be executed in the other province after it has been endorsed by a judge who has jurisdiction in that other province. Service of order (5) A copy of the order shall be served on the person to whom it is addressed in the manner that the judge directs or as may be prescribed by rules of court. Extension of period for compliance with order (6) A judge who makes an order under subsection (3) may, on application of the Director, extend the period within which it is to be complied with. Objection to disclosure of information (7) The Director — or any person specially designated in writing by the Director for the purposes of this section — may object to the disclosure of any information or document in respect of which an order under subsection (3) has been made by certifying orally or in writing that it should not be disclosed on the ground that (a) the Director is prohibited from disclosing the information or document by any bilateral or international treaty, convention or other agreement to which the Government of Canada is a signatory respecting the sharing of information related to a money laundering offence or a terrorist activity financing offence, or an offence that is substantially similar to either offence; (b) a privilege is attached by law to the information or document; Recyclage des produits de la cri (c) the information or document has been placed in a sealed package pursuant to law or an order of a court of competent jurisdiction; (d) disclosure of the information or document would be injurious to national security; or (e) disclosure of the information or document would not, for any other reason, be in the public interest. Determination of objection (8) An objection made under subsection (7) may be determined, on application, in accordance with subsection (9), by the Chief Justice of the Federal Court, or by any other judge of that Court that the Chief Justice may designate to hear those applications. Judge may examine information (9) A judge who is to determine an objection may, if the judge considers it necessary to determine the objection, examine the information or document in relation to which the objection is made. The judge shall grant the objection and order that disclosure be refused if the judge is satisfied of any of the grounds mentioned in subsection (7). Limitation period (10) An application under subsection (8) shall be made within 10 days after the objection is made or within any greater or lesser period that the Chief Justice of the Federal Court, or any other judge of that Court that the Chief Justice may designate to hear those applications, considers appropriate in the circumstances. Appeal to Federal Court of Appeal (11) An appeal lies from a determination under subsection (8) to the Federal Court of Appeal. Limitation period for appeal (12) An appeal under subsection (11) shall be brought within 10 days after the date of the determination appealed from or within any further time that the Federal Court of Appeal considers appropriate in the circumstances. Special rules for hearings (13) An application under subsection (8) or an appeal brought in respect of that application shall be heard in private and, on the request of the person objecting to the disclosure of the information or documents, be heard and determined in the National Capital Region described in the schedule to the National Capital Act. 28 Ex parte representations C. 12 Proceeds of Crime (Money L (14) During the hearing of an application under subsection (8) or an appeal brought in respect of that application, the person who made the objection in respect of which the application was made or the appeal was brought shall, on his or her request, be given the opportunity to make representations ex parte. Copies (15) Where any information or document is examined or provided under subsection (3), the person by whom it is examined or to whom it is provided or any employee of the Centre may make, or cause to be made, one or more copies of it and any copy purporting to be certified by the Director to be a copy made under this subsection is evidence of the nature and content of the original information or document and has the same probative force as the original information or document would have had if it had been proved in the ordinary way. Definition of “judge” (16) For the purposes of this section, “judge” means a provincial court judge as defined in section 2 of the Criminal Code or a judge as defined in subsection 462.3(1) of that Act. 34. The Act is amended by adding the following after section 63: Information demand 63.1 (1) For an examination under subsection 62(1), an authorized person may also serve notice to require that the person or entity provide, at the place and in accordance with the time and manner stipulated in the notice, any document or other information relevant to the administration of Part 1 in the form of electronic data, a printout or other intelligible output. Obligation to provide information (2) The person or entity on whom the notice is served shall provide, in accordance with the notice, the documents or other information with respect to the administration of Part 1 that the authorized person may reasonably require. 35. Subsection 64(2) of the English version of the Act is replaced by the following: Recyclage des produits de la cri No examination or copying of certain documents when privilege claimed (2) If an authorized person acting under section 62, 63 or 63.1 is about to examine or copy a document in the possession of a legal counsel who claims that a named client or former client of the legal counsel has a solicitorclient privilege in respect of the document, the authorized person shall not examine or make copies of the document. 2004, c. 15, s. 101 36. Subsection 65(1) of the Act is replaced by the following: Disclosure to law enforcement agencies 65. (1) The Centre may disclose to the appropriate law enforcement agencies any information of which it becomes aware under section 62, 63 or 63.1 and that it suspects on reasonable grounds is evidence of a contravention of Part 1. 37. The Act is amended by adding the following after section 65: Agreements and arrangements 65.1 (1) The Centre may enter into an agreement or arrangement, in writing, with an institution or agency of a foreign state that has powers and duties, similar to those of the Centre, with respect to verifying compliance with requirements to identify persons or entities, keep and retain records or make reports, or with an international organization made up of such institutions or agencies and established by the governments of states, that stipulates (a) that the Centre and the institution, agency or organization may exchange information about the compliance of persons and entities with those requirements and about the assessment of risk related to their compliance; (b) that the information may only be used for purposes relevant to ensuring compliance with the requirements and to assessing risk related to compliance; and (c) that the information will be treated in a confidential manner and not be further disclosed without the express consent of the Centre. C. 12 Disclosure (2) The Centre may, in accordance with the agreement or arrangement, provide the institution, agency or organization with information referred to in the agreement or arrangement. Usefulness of information (3) When the Centre receives information from an institution, agency or organization under an agreement or arrangement, the Centre may provide it with an evaluation of whether the information is useful to the Centre. Proceeds of Crime (Money L 38. Section 72 of the Act is replaced by the following: Review of Act by parliamentary committee 72. (1) Every five years beginning on the day on which this section comes into force, the administration and operation of this Act shall be reviewed by the committee of the House of Commons, of the Senate or of both Houses that is designated or established for that purpose. Review by Privacy Commissioner (2) Every two years beginning on the day on which this section comes into force, the Privacy Commissioner, appointed under section 53 of the Privacy Act, shall review the measures taken by the Centre to protect information it receives or collects under this Act and shall, within three months after the review, submit a report on those measures to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides without delay after receiving it or, if that House is not then sitting, on any of the first 15 days on which that House is sitting after the Speaker receives it. 2001, c. 41, s. 73(1) 39. (1) Paragraph 73(1)(f) of the Act is replaced by the following: (e.2) prescribing the form and manner in which persons or entities or classes of persons or entities shall report under section 7, 7.1, 9 or 9.1; (f) specifying measures, and the periods within which those measures must be taken, that persons or entities are to take to identify any person or entity that requests the opening of an account or any person or entity in respect of which a record is required to be kept or a report made; Recyclage des produits de la cri (2) Subsection 73(1) of the Act is amended by striking out the word “and” at the end of paragraph (h) and by replacing paragraph (i) with the following: (i) prescribing the circumstances referred to in section 9.2; (j) prescribing, for the purposes of subsection 9.3(1), the manner for determining whether a person is a politically exposed foreign person and the circumstances in which it is necessary to make that determination; (k) prescribing, for the purposes of subsection 9.3(2), the circumstances in which it is necessary to obtain the approval of senior management and the measures to be taken when dealing with a politically exposed foreign person; (l) prescribing the offices and positions whose holders are politically exposed foreign persons for the purposes of paragraph 9.3(3)(j), prescribing the family members that are included in the definition “politically exposed foreign person” in subsection 9.3(3) and defining “foreign state” for the purposes of that subsection; (m) prescribing the foreign entities to which subsection 9.4(1) applies and, for the purposes of that subsection, prescribing the information to be obtained about those entities and prescribing the measures to be taken; (n) defining the expression “shell bank” referred to in section 9.4; (o) prescribing the services referred to in the definition “correspondent banking relationship” in subsection 9.4(3); (p) prescribing the electronic funds transfers to which section 9.5 applies, the information to be included with those transfers and the measures to be taken under that section; (q) specifying the manner for establishing and implementing the program referred to in subsection 9.6(1); (r) prescribing the special measures to be taken under subsection 9.6(3); C. 12 Proceeds of Crime (Money L (s) prescribing persons and entities that must be registered with the Centre under section 11.1; (t) prescribing persons or entities or classes of persons or entities that are not subject to section 11.1; (u) prescribing, for the purposes of paragraph 11.11(1)(f), persons or entities that are not eligible for registration; (v) prescribing the form and manner of submitting an application for registration under subsection 11.12(1) and the information that must be included with the application; (w) prescribing the form and manner of notifying the Centre of any information that must be provided under section 11.13; (x) prescribing the form and manner of providing the Centre with any clarifications under subsection 11.14(1) and any clarifications under subsection 11.17(1); (y) prescribing, for the purposes of section 11.19, the form and manner for renewing registration and any longer renewal period; (z) defining “identifying information” for the purposes of subsection 54.1(3); and (z.1) prescribing anything else that by this Act is to be prescribed. 40. The Act is amended by adding the following after section 73: PART 4.1 NOTICES OF VIOLATION, COMPLIANCE AGREEMENTS AND PENALTIES VIOLATIONS Regulations 73.1 (1) The Governor in Council may make regulations (a) designating, as a violation that may be proceeded with under this Part, the contravention of a specified provision of this Act or the regulations; Recyclage des produits de la cri (b) classifying each violation as a minor violation, a serious violation or a very serious violation, and classifying a series of minor violations as a serious violation or a very serious violation; (c) having regard to subsection (2), fixing a penalty, or a range of penalties, in respect of any violation; (d) prescribing the additional penalty to be paid for the purposes of subsection 73.18(1); (e) respecting the service of documents under this Part, including the manner and proof of service and the circumstances under which documents are deemed to be served; and (f) generally for carrying out the purposes and provisions of this Part. Maximum penalties (2) The maximum penalty for a violation is $100,000 if the violation is committed by a person and $500,000 if the violation is committed by an entity. Criteria for penalty 73.11 Except if a penalty is fixed under paragraph 73.1(1)(c), the amount of a penalty shall, in each case, be determined taking into account that penalties have as their purpose to encourage compliance with this Act rather than to punish, the harm done by the violation and any other criteria that may be prescribed by regulation. How contravention may be proceeded with 73.12 If a contravention that is designated under paragraph 73.1(1)(a) can be proceeded with either as a violation or as an offence under this Act, proceeding in one manner precludes proceeding in the other. Commission of violation 73.13 (1) Every contravention that is designated under paragraph 73.1(1)(a) constitutes a violation and the person who commits the violation is liable to a penalty determined in accordance with sections 73.1 and 73.11. Notice of violation or compliance agreement (2) If the Centre believes on reasonable grounds that a person or entity has committed a violation, the Centre may (a) issue and cause to be served on the person or entity a notice of violation; or C. 12 Proceeds of Crime (Money L (b) issue and cause to be served on the person or entity a notice of violation with an offer to reduce by half the penalty proposed in the notice if the person or entity enters into a compliance agreement with the Centre in respect of the provision to which the violation relates. NOTICES OF VIOLATION Contents of notice 73.14 (1) When the Centre issues a notice of violation under subsection 73.13(2), the notice shall name the person or entity believed to have committed a violation, identify the violation and set out (a) the penalty that the Centre proposes to impose; (b) the right of the person or entity, within 30 days after the day on which the notice is served or within any longer period that the Centre specifies, to pay the penalty or to make representations to the Director with respect to the violation and the proposed penalty, and the manner for doing so; and (c) the fact that, if the person or entity does not pay the penalty or make representations in accordance with the notice, the person or entity will be deemed to have committed the violation and the Centre will impose the penalty in respect of it. Administrative corrections (2) If a notice of violation contains any error or omission, the Centre may serve a corrected notice of violation on the person or entity at any time during the period referred to in paragraph (1)(b). Payment of penalty 73.15 (1) If the person or entity pays penalty proposed in the notice of violation, person is deemed to have committed violation and proceedings in respect of it ended. Representations to Director (2) If the person or entity makes representations in accordance with the notice, the Director shall decide, on a balance of probabilities, whether the person or entity committed the violation and, if so, may, subject to any regulations made under paragraph 73.1(1)(c), impose the penalty proposed, a lesser penalty or no penalty. the the the are Recyclage des produits de la cri Failure to pay or make representations (3) A person or entity that neither pays the penalty nor makes representations in accordance with the notice is deemed to have committed the violation and the Centre shall impose the penalty proposed in the notice. Notice of decision and right of appeal (4) The Director shall cause notice of any decision made under subsection (2) or the penalty imposed under subsection (3) to be issued and served on the person or entity together with, in the case of a decision made under subsection (2) in respect of a serious violation or very serious violation, notice of the right of appeal under subsection 73.21(1). COMPLIANCE AGREEMENTS Contents of compliance agreement 73.16 (1) When the Centre offers to enter into a compliance agreement under paragraph 73.13(2)(b), the agreement shall (a) identify the violation and provide that the person or entity will comply with the provision to which the violation relates within the period, and be subject to the terms and conditions, specified in the agreement; and (b) set out the amount that the person or entity will have to pay as the reduced penalty for the violation if the compliance agreement is entered into. Refusal to enter into agreement (2) The person or entity shall enter into the compliance agreement and pay the reduced penalty within 10 days after receiving the notice of violation and, if it does not do so, the person or entity is deemed to have refused to enter into the agreement, and the full penalty proposed in the notice of violation and section 73.15 apply. Extension of period (3) The Centre may extend the period referred to in paragraph (1)(a) if the Centre is satisfied that the person or entity with which the compliance agreement was entered into is unable to comply with it within that period for reasons beyond their control. Compliance agreement complied with 73.17 If the Centre considers that a compliance agreement has been complied with, the Centre shall serve a notice to that effect on the person or entity and, on the service of the notice, no further proceedings may be taken against the person or entity with respect to the violation. C. 12 Compliance agreement not complied with 73.18 (1) If the Centre considers that a compliance agreement has not been complied with, the Centre may issue and serve a notice of default on the person or entity to the effect that the person or entity is liable to pay the remainder of the penalty set out in the notice of violation and a prescribed additional penalty. Contents of notice (2) A notice of default shall include the date, which shall be 30 days after the day on which the notice is served, on or before which an application for review may be filed and particulars of how the application may be filed. No set-off or compensation (3) On the service of a notice of default, the person or entity served has no right of set-off or compensation against any amount that they spent under the compliance agreement. Application for review 73.19 (1) A person or entity served with a notice of default under subsection 73.18(1) may, on or before the date specified in the notice or within any further time that the Centre allows, file an application for review by the Director. Review (2) The Director may confirm the Centre’s decision or decide that the person or entity has complied with the compliance agreement. Failure to pay or apply for review (3) A person or entity that neither pays the amounts set out in the notice of default nor files an application for review in accordance with the notice is deemed to have not complied with the compliance agreement and shall pay the amounts without delay. Notice of decision and right of appeal (4) The Director shall cause notice of the decision to be issued and served on the person or entity together with, in the case of a serious violation or very serious violation, notice of the right of appeal under subsection 73.21(1). Deemed violation 73.2 A person or entity that enters into a compliance agreement is deemed to have committed the violation in respect of which the agreement was entered into. Proceeds of Crime (Money L APPEAL TO FEDERAL COURT Right of appeal 73.21 (1) A person or entity on which a notice of a decision made under subsection 73.15(2) or 73.19(2) is served, in respect of a serious violation or very serious violation, may, within 30 days after the day on which the notice Recyclage des produits de la cri is served, or within any longer period that the Court allows, appeal the decision to the Federal Court. Appeal — no notice of decision (2) If the Director does not cause notice of a decision to be issued and served under subsection 73.15(4) within 90 days after the completion of representations made under subsection 73.15(2), the person or entity that made the representations may appeal the penalty proposed in the notice of violation to the Federal Court, within 30 days after the day on which the 90-day period expires. Appeal — no notice of decision (3) If the Director does not cause notice of a decision to be issued and served under subsection 73.19(4) within 90 days after the day on which the Director received the application for review under subsection 73.19(1), the person or entity that filed the application may appeal to the Federal Court the amounts set out in the notice of default referred to in subsection 73.18(1), within 30 days after the day on which the 90-day period expires. Precautions against disclosure (4) In an appeal, the Court shall take every reasonable precaution, including, when appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person or entity of information referred to in subsection 55(1). Powers of Court (5) On an appeal, the Court may confirm, set aside or, subject to any regulations made under paragraph 73.1(1)(c), vary the decision of the Director. PUBLICATION Publication 73.22 When proceedings in respect of a violation are ended, the Centre may make public the nature of the violation, the name of the person or entity that committed it, and the amount of the penalty imposed. RULES ABOUT VIOLATIONS Violations not offences 73.23 (1) For greater certainty, a violation is not an offence. C. 12 Non-application of section 126 of the Criminal Code (2) Section 126 of the Criminal Code does not apply in respect of any obligation or prohibition under this Act whose contravention is a violation under this Act. Due diligence available 73.24 (1) Due diligence is a defence in a proceeding in relation to a violation. Common law principles (2) Every rule and principle of the common law that renders any circumstance a justification or an excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is not inconsistent with this Act. Proceeds of Crime (Money L COLLECTION OF PENALTIES Debts to Her Majesty 73.25 (1) A penalty and any interest due in respect of the penalty constitute a debt due to Her Majesty in right of Canada and may be recovered in the Federal Court. Time limit (2) No proceedings to recover a debt referred to in subsection (1) may be commenced after the period of five years that begins on the day on which the debt became payable. Proceeds payable to Receiver General (3) A penalty paid or recovered under this Part is payable to and shall be remitted to the Receiver General. Certificate 73.26 (1) The unpaid amount of any debt referred to in subsection 73.25(1) may be certified by the Director. Registration in Federal Court (2) Registration in the Federal Court of a certificate made under subsection (1) has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs. Collecting penalties 73.27 (1) The Centre may, for the purpose of collecting penalties proposed in a notice of violation issued under subsection 73.13(2) or imposed under this Part, enter into a contract, memorandum of understanding or other agreement with a department or an agency of the Government of Canada or the government of a province and with any other person or organization, inside Canada, in its own name or in the name of Her Majesty in right of Canada. Recyclage des produits de la cri Disclosure of information (2) The Centre may disclose to the other party of the contract, memorandum or agreement any information required to collect the penalties. Use of information (3) The other party shall not use the information referred to in subsection (2) for any purpose other than collecting the penalties. Interest 73.28 If a person or entity fails to remit a penalty payable under this Part to the Receiver General, the person or entity shall pay to the Receiver General interest on the amount of the penalty. The interest shall be calculated at the prescribed rate for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid. Garnishment 73.29 (1) If the Director is of the opinion that a person or entity is or is about to become liable to make a payment to a person or entity liable to pay a penalty or interest under this Part, the Director may, by written notice, require the first person or entity to pay without delay to the Receiver General, on account of the second person’s or entity’s liability, all or part of the money otherwise payable to the second person or entity. Applicability to future payments (2) If the Director requires an employer to pay to the Receiver General money otherwise payable to an employee as remuneration, (a) the requirement is applicable to all future payments of remuneration until the liability is satisfied; and (b) the employer shall pay to the Receiver General out of each payment of remuneration the amount that the Director stipulates in the notice. Discharge of liability (3) The receipt of the Director is a good and sufficient discharge of the original liability to the extent of the payment. Write-off 73.3 (1) The Director may write off in whole or in part a penalty or interest payable by a person or entity under this Part. C. 12 Effect of write-off (2) The writing off of a penalty or interest under this section does not affect any right of Her Majesty to collect or recover the penalty or interest. Proceeds of Crime (Money L GENERAL PROVISIONS Evidence 73.4 In a proceeding in respect of a violation or a prosecution for an offence, a notice of violation purporting to be issued under subsection 73.13(2), a notice of decision purporting to be issued under subsection 73.15(4) or 73.19(4), a notice of default purporting to be issued under subsection 73.18(1) or a certificate purporting to be made under subsection 73.26(1) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it. Time limit 73.5 (1) No proceedings in respect of a violation may be commenced later than two years after the subject-matter of the proceedings became known to the Centre. Certificate of Centre (2) A document appearing to have been issued by the Centre, certifying the day on which the subject-matter of any proceedings became known to the Centre, is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it. 41. The portion of section 74 of the Act before paragraph (a) is replaced by the following: General offences 74. Every person or entity that knowingly contravenes any of sections 6, 6.1 or 9.1 to 9.3, subsection 9.4(2), sections 9.5 to 9.7 or 11.1, subsection 12(1) or (4) or 36(1), section 37, subsection 55(1) or (2), section 57 or subsection 62(2), 63.1(2) or 64(3) or the regulations is guilty of an offence and liable 42. The Act is amended by adding the following after section 77: Registry 77.1 Every person or entity that provides information to the Centre under section 11.12, 11.13, 11.14 or 11.3 and that knowingly makes Recyclage des produits de la cri any false or misleading statement or knowingly provides false or misleading information to a person responsible for carrying out functions under this Act is guilty of an offence and liable (a) on summary conviction, to a fine of not more than $50,000 or to imprisonment for a term of not more than six months, or to both; or (b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both. 43. The portion of section 79 of the Act before paragraph (b) is replaced by the following: Offence by employee, agent or mandatary 79. In a prosecution for an offence under section 75, 77 or 77.1, (a) it is sufficient proof of the offence to establish that it was committed by an employee, agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or has been prosecuted for the offence; and 44. Section 81 of the Act is replaced by the following: Time limitation R.S., c. 1 (5th Supp.) 81. Proceedings under paragraph 74(a), 75(1)(a) or 76(a), subsection 77(1) or paragraph 77.1(a) may be instituted within, but not after, five years after the time when the subject-matter of the proceedings arose. AMENDMENTS TO THE INCOME TAX ACT 45. (1) Paragraph 241(4)(f.1) of the Income Tax Act is replaced by the following: (f.1) provide taxpayer information to an official for the purposes of the administration and enforcement of the Charities Registration (Security Information) Act, and where an official has so received taxpayer information, the official may provide that information to another official as permitted by subsection (9.1); C. 12 Proceeds of Crime (Money L (2) Section 241 of the Act is amended by adding the following after subsection (8): Threats to security (9) An official may provide, to an official of the Canadian Security Intelligence Service, of the Royal Canadian Mounted Police or of the Financial Transactions and Reports Analysis Centre of Canada, (a) publicly accessible charity information; (b) designated taxpayer information, if there are reasonable grounds to suspect that the information would be relevant to (i) an investigation by the Canadian Security Intelligence Service of whether the activity of any person may constitute threats to the security of Canada, as defined in section 2 of the Canadian Security Intelligence Service Act, (ii) an investigation of whether an offence may have been committed under (A) Part II.1 of the Criminal Code, or (B) section 462.31 of the Criminal Code, if that investigation is related to an offence under Part II.1 of that Act, or (iii) the prosecution of an offence referred to in subparagraph (ii); and (c) information setting out the reasonable grounds referred to in paragraph (b), to the extent that any such grounds rely on information referred to in paragraph (a) or (b). Threats to security (9.1) Information — other than designated donor information — provided to an official of the Canadian Security Intelligence Service or the Royal Canadian Mounted Police, as permitted by paragraph (4)(f.1), may be used by such an official, or communicated by such an official to another official of the Canadian Recyclage des produits de la cri Security Intelligence Service or the Royal Canadian Mounted Police for use by that other official, for the purpose of (a) investigating whether an offence may have been committed, ascertaining the identity of a person or persons who may have committed an offence, or prosecuting an offence, which offence is (i) described in Part II.1 of the Criminal Code, or (ii) described in section 462.31 of the Criminal Code, if that investigation, ascertainment or prosecution is related to an investigation, ascertainment or prosecution in respect of an offence described in Part II.1 of that Act; or (b) investigating whether the activities of any person may constitute threats to the security of Canada, as defined in section 2 of the Canadian Security Intelligence Service Act. (3) Subsection 241(10) of the Act is amended by adding the following in alphabetical order: “designated donor information” « renseignements désignés sur les donateurs » “designated taxpayer information” « renseignement confidentiel désigné » “designated donor information” means information of a charity, or of a person who has at any time made an application for registration as a registered charity, that is directly attributable to a gift that has been made or proposed to be made to the charity or applicant and that is presented in any form that directly or indirectly reveals the identity of the donor or prospective donor, other than a donor or prospective donor who is not resident in Canada and is neither a citizen of Canada nor a person described in subsection 2(3); “designated taxpayer information” means taxpayer information — other than designated donor information — of a registered charity, or of a person who has at any time made an application for registration as a registered charity, that is (a) in respect of a financial transaction C. 12 Proceeds of Crime (Money L (i) relating to the importation or exportation of currency or monetary instruments by the charity or applicant, or (ii) in which the charity or applicant has engaged a person to whom section 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act applies, (b) information provided to the Minister by the Canadian Security Intelligence Service, the Royal Canadian Mounted Police or the Financial Transactions and Reports Analysis Centre of Canada, (c) the name, address, date of birth and citizenship of any current or former director, trustee or like official, or of any agent, mandatary or employee, of the charity or applicant, (d) information submitted by the charity or applicant in support of an application for registration as a registered charity that is not publicly accessible charity information, (e) publicly available, including commercially available databases, or (f) information prepared from publicly accessible charity information and information referred to in paragraphs (a) to (e); “publicly accessible charity information” « renseignement d’organismes de bienfaisance accessible au public » “publicly accessible charity information” means taxpayer information that is (a) described in subsection (3.2), or that would be described in that subsection if the words “that was at any time a registered charity” were read as “that has at any time made an application for registration as a registered charity”, (b) information — other than designated donor information — submitted to the Minister with, or required to be contained in, any public information return filed or required to be filed under subsection 149.1(14), or (c) information prepared from information referred to in paragraph (a) or (b); Recyclage des produits de la cri CONSEQUENTIAL AMENDMENT 2005, c. 38 CANADA BORDER SERVICES AGENCY ACT 46. Subsection 13(1) of the Canada Border Services Agency Act is replaced by the following: Agreements 13. (1) Subject to sections 38 and 38.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the Agency may, with the approval of the Governor in Council, on the recommendation of the Minister and the Minister of Foreign Affairs, enter into an agreement with a foreign state or an international organization, for the purposes of carrying out the mandate of the Agency. COMING INTO FORCE Order in council 47. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

REPRINT First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 13 An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence ASSENTED TO 14th DECEMBER, 2006 BILL C-24 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence”. SUMMARY The purpose of this enactment is to implement some of Canada’s obligations under the Softwood Lumber Agreement between the Government of Canada and the Government of the United States, by imposing a charge on exports of certain softwood lumber products to the United States and on refunds of certain duty deposits paid to the United States and by amending certain Acts, including the Export and Import Permits Act. The charge on exports will take effect on October 12, 2006 and will be payable by exporters of softwood lumber products. The enactment also authorizes certain payments to be made. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO IMPOSE A CHARGE ON THE EXPORT OF CERTAIN SOFTWOOD LUMBER PRODUCTS TO THE UNITED STATES AND A CHARGE ON REFUNDS OF CERTAIN DUTY DEPOSITS PAID TO THE UNITED STATES, TO AUTHORIZE CERTAIN PAYMENTS, TO AMEND THE EXPORT AND IMPORT PERMITS ACT AND TO AMEND OTHER ACTS AS A CONSEQUENCE SHORT TITLE 1. Softwood Lumber Products Export Charge Act, 2006 INTERPRETATION 2. Definitions 3. Conversion 4. Interest to be paid 5. Time of export 6. Arm’s length 7. Person resident in Canada HER MAJESTY 8. Binding on Her Majesty APPLICATION 9. Exceptions SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE EXPORT CHARGE 10. Charge imposed 11. Exclusions 12. Export from a region 13. Export price 14. Surge mechanism 15. Charge EXEMPTIONS 16. Exemption — schedule 17. Exempt exports i CHARGE ON REFUNDS OF DUTY DEPOSITS 18. Imposition of charge on duty deposit refund GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE ADMINISTRATION, ENFORCEMENT AND OFFICERS 19. Minister’s duty 20. Staff 21. Administration of oaths REGISTRATION AND CERTIFICATION 22. Duty to register 23. Registration 24. Cancellation 25. Certification of independent remanufacturers RETURNS AND PAYMENT OF CHARGES 26. Monthly returns 27. Large payments 28. Small amounts owing 29. Set-off of refunds 30. Authority for separate returns 31. Execution of returns, etc. 32. Extension of time 33. Demand for return INTEREST 34. Compound interest on amounts not paid when required 35. Compound interest on amounts owed by Her Majesty 36. Application of interest provisions if Act amended 37. Waiving or cancelling interest or penalty ADMINISTRATIVE CHARGE UNDER THE FINANCIAL ADMINISTRATION ACT 38. Dishonoured instruments REFUNDS 39. Statutory recovery rights 40. Refund — third country adjustment ii 41. Refund of payment 42. Restriction 43. Restriction — trustees 44. Overpayment of refunds, etc. BANKRUPTCIES AND CORPORATE REORGANIZATIONS 45. Trustee’s obligations 46. Amalgamations PARTNERSHIPS 47. Member of a partnership RECORDS AND INFORMATION 48. Keeping records 49. Requirement to provide records or information ASSESSMENTS 50. Assessment 51. Assessment of refund 52. Notice of assessment 53. Limitation period for assessments OBJECTIONS TO ASSESSMENT 54. Objection to assessment 55. Extension of time by Minister APPEAL 56. Extension of time by Tax Court of Canada 57. Appeal to Tax Court of Canada 58. Extension of time to appeal 59. Limitation on appeals to the Tax Court of Canada 60. Institution of appeals 61. Disposition of appeal 62. References to Tax Court of Canada 63. Reference of common questions to Tax Court of Canada ADMINISTRATION AND ENFORCEMENT PENALTIES 64. Failure to file a return when required 65. Failure to answer demand iv 66. Failure to provide information 67. False statements or omissions 68. Offence for failure to file return or to comply with demand or order 69. Offences for false or deceptive statement 70. Failure to pay charges 71. Offence re confidential information 72. General offence 73. Defence of due diligence 74. Compliance orders 75. Officers of corporations, etc. 76. Information or complaint OFFENCES AND PUNISHMENT INSPECTIONS 77. By whom 78. Compliance order 79. Copies 80. Prohibition 81. Requirement to provide foreign-based information 82. Information respecting non-resident persons INVESTIGATION 83. Search warrant 84. Provision of information CONFIDENTIALITY OF INFORMATION COLLECTION 85. Debts to Her Majesty 86. Collection restrictions 87. Authorization to proceed without delay 88. Certificates 89. Garnishment 90. Recovery by deduction or set-off 91. Acquisition of debtor’s property 92. Money seized from debtor 93. Seizure if failure to pay 94. Person leaving Canada or defaulting v 95. Liability of directors 96. Tax liability re transfers not at arm’s length 97. Sending by mail 98. Proof of sending by mail 99. Distribution of revenue EVIDENCE AND PROCEDURE PAYMENTS TO PROVINCES REGULATIONS 100. Regulations 101. Effect EXPIRY 102. Regulation PAYMENT TO ACCOUNTS 103. Payment TRANSITIONAL PROVISIONS 104. Transitional period 105. Month 106. Section 64 107. Retroactive regulations 108. Retroactive regulations — Export and Import Permits Act AMENDMENTS TO THE EXPORT AND IMPORT PERMITS ACT 109-117. Export and Import Permits Act CONSEQUENTIAL AMENDMENTS 118-119. 120. Access to Information Act Canada Revenue Agency Act 121-124. Tax Court of Canada Act COORDINATING AMENDMENT 125. Public Safety Act, 2002 COMING INTO FORCE 126. Coming into force v SCHEDULE 55 ELIZABETH II —————— CHAPTER 13 An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence [Assented to 14th December, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Softwood Lumber Products Export Charge Act, 2006. INTERPRETATION Definitions “Agency” « Agence » “assessment” « cotisation » “bank” « banque » “board foot” « pied-planche » 2. The following definitions apply in this Act. “Agency” means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act. “assessment” means an assessment or a reassessment under this Act. “bank” means a bank as defined in section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act. “board foot” means a unit of measurement of lumber equal to 12 inches × 12 inches × 1 inch, and one thousand board feet is equal to 2.35974 cubic metres or 92.90227 square metres of lumber. C. 13 “calendar quarter” « trimestre » “calendar quarter” means a period of three months beginning on the first day of January, April, July or October. “Commissioner” « commissaire » “data” « données » “judge” « juge » “Minister” « ministre » “person” « personne » “prescribed” Version anglaise seulement Softwood Lumber Produc “Commissioner” means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. “data” means representations, in any form, of information or concepts. “judge”, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. “Minister” means the Minister of National Revenue. “person” means an individual, partnership, corporation, or a body that is a union or association. “prescribed” means (a) in the case of a form or the manner of filing a form, authorized by the Minister; (b) in the case of the information to be given on or with a form, specified by the Minister; and (c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. “primary processing” « première transformation » “record” « registre » “primary processing” means the production of softwood lumber products from softwood sawlogs. “record” means any material on which data are recorded or marked and that is capable of being read or understood by a person or a computer system or other device. “region” « région » “region” has the same meaning as in subsection 6.3(1) of the Export and Import Permits Act. “reporting period” « période de déclaration » “reporting period” means the month in respect of which a person is required to file a return under section 26. “softwood lumber product” « produit de bois d’oeuvre » “softwood lumber product” means, other than in section 18, a product referred to in section 8.4 of the Export and Import Permits Act. Droits d’exportation de prod 2006 “United States” « États-Unis » “United States” means the customs territory of the United States and the foreign trade zones located in the United States. Conversion 3. If a conversion of board feet to cubic metres or to square metres is required for the purposes of this Act, the conversion is to be made on a nominal measurement basis and shall not be rounded up to the nearest cubic metre or square metre. Interest to be paid 4. (1) For the purposes of every provision of this Act that requires interest to be paid at a specified rate, the specified rate in effect during any particular calendar quarter is the total of (a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the calendar quarter preceding the particular calendar quarter, and (b) 4 %. Interest to be paid by the Minister (2) For the purposes of every provision of this Act that requires interest at a specified rate to be paid on an amount payable by the Minister to a person or applied by the Minister against an amount owed by a person, the specified rate in effect during any particular calendar quarter is the total of (a) the rate determined under paragraph (1)(a) in respect of the particular calendar quarter, and (b) 2 %. Time of export 5. (1) For the purposes of this Act, the time at which an exported softwood lumber product is considered to be exported is the time at which the product was last loaded aboard a conveyance for export. C. 13 Export by rail (2) However, if the softwood lumber product is exported by rail, the time at which it is considered to be exported is the time at which the railcar that contains it was released to the railway for assembly to form part of a train for export. Clarification (3) For greater certainty, if a softwood lumber product is transshipped through a Canadian reload or other inventory location, the time at which it is considered to be exported is the time at which the product last leaves a reload or other inventory location for export. Arm’s length Softwood Lumber Produc 6. (1) For the purposes of this Act, (a) related persons are deemed not to deal with each other at arm’s length; and (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length. Related persons (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively. Person resident in Canada 7. For the purposes of this Act, a person is deemed to be resident in Canada at any time (a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere; (b) in the case of a partnership or an association, or a branch of one of them, if the member, or a majority of the members, having management and control of it is or are resident in Canada at that time; (c) in the case of a union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; and Droits d’exportation de prod (d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time. HER MAJESTY Binding on Her Majesty 8. This Act is binding on Her Majesty in right of Canada or a province. APPLICATION Exceptions 9. (1) This Act does not apply to a softwood lumber product that is exported to a country other than the United States but that passes in transit through the United States. For greater certainty (2) For greater certainty, this Act applies in respect of a softwood lumber product that is exported to the United States but that passes in transit through a country other than the United States. SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE EXPORT CHARGE Charge imposed 10. (1) Subject to the exclusions provided for in subsection 11(1), every person who exports a softwood lumber product to the United States after October 11, 2006, shall pay to Her Majesty in right of Canada a charge as determined under this Act in respect of the export. When charge payable (2) The charge becomes payable at the time that the softwood lumber product is exported. Exclusions 11. (1) The following exports of softwood lumber products are excluded from the charge referred to in section 10: (a) exports from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador; (b) exports from Yukon, the Northwest Territories or Nunavut; and (c) exports by a person referred to in section 16. C. 13 Deemed export from Atlantic provinces (2) An exported softwood lumber product is deemed to be exported from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador if the product underwent its first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine. Deemed export from territories (3) An exported softwood lumber product is deemed to be exported from Yukon, the Northwest Territories or Nunavut if the product underwent its first primary processing in one of those territories from softwood sawlogs originating in one of those territories. Export from a region 12. (1) If a softwood lumber product is exported from a region in a particular month, the amount of the charge in respect of that export is the amount calculated by applying the rate applicable for the month under subsection (3) or (4) to the export price of the product as determined under section 13. Deemed export from a region (2) An exported softwood lumber product is deemed to be exported from the region where the product underwent its first primary processing. If, however, the exported product underwent its first primary processing in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories or Nunavut from softwood sawlogs originating in a particular region, it is deemed to be exported from that region. Applicable rate — export allocation (3) In the case of an export for which an export allocation issued under paragraph 6.3(3)(b) of the Export and Import Permits Act is required, the applicable rate of charge for the particular month is Softwood Lumber Produc (a) 0% if the reference price for the month is more than US$355; (b) 2.5% if the reference price for the month is at least US$336 but not more than US$355; (c) 3% if the reference price for the month is at least US$316 but not more than US$335; or (d) 5% if the reference price for the month is not more than US$315. 2006 Applicable rate — other cases Droits d’exportation de prod (4) In the case of an export for which an export allocation referred to in subsection (3) is not required, the applicable rate of charge for the particular month is (a) 0% if the reference price for the month is more than US$355; (b) 5% if the reference price for the month is at least US$336 but not more than US$355; (c) 10% if the reference price for the month is at least US$316 but not more than US$335; or (d) 15% if the reference price for the month is not more than US$315. Reference price (5) The reference price for a particular month is the most recent four-week average of the weekly Framing Lumber Composite Price, published by Random Lengths Publications Incorporated, that is available at least 21 days before the start of the particular month. Reference price by regulation (6) If Random Lengths Publications Incorporated changes, at any time after April 27, 2006, the weights it uses to calculate the Framing Lumber Composite Price or ceases to publish the Framing Lumber Composite Price or any of its constituent prices, the reference price for a particular month is to be calculated according to a prescribed formula. Rounding (7) Each reference price shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple. Definitions 13. (1) The following definitions apply in this section. “FOB value” « valeur franco à bord » “FOB value” means a value consisting of all costs payable by a purchaser, including those incurred in the placement aboard the conveyance for shipment, but not including the actual shipping costs and the amount of a charge payable under section 10. 8 “independent remanufacturer” « entreprise indépendante de seconde transformation » “remanufactured” « seconde transformation » Export price C. 13 Softwood Lumber Produc “independent remanufacturer” means a person who is certified under section 25. “remanufactured” means, in relation to a softwood lumber product, that the softwood lumber product, in order to produce a semi-finished or finished softwood lumber product, has been subjected to changes including changes in thickness, width, length, profile, texture, moisture or grading, has been joined together by finger jointing or has been turned. (2) The export price of a softwood lumber product is to be determined in accordance with the following rules: (a) if the product has undergone only primary processing, the export price is the FOB value that is determined at the facility where the product underwent its last primary processing before export; (b) if the product was last remanufactured before export by an independent remanufacturer, the export price is the FOB value that is determined at the facility where the softwood lumber used to make the remanufactured product underwent its last primary processing before export; (c) if the product was last remanufactured before export by a remanufacturer that is not an independent remanufacturer, the export price is the FOB value that is determined at the facility where the product underwent its last processing before export; (d) for a product described in paragraph (a), (b) or (c) in respect of which an FOB value cannot be determined, the export price is the market price for identical products sold in Canada at approximately the same time and in one of the following arm’s length transactions, listed in order of precedence: (i) a transaction at substantially the same trade level but in different quantities, (ii) a transaction at a different trade level but in similar quantities, or Droits d’exportation de prod (iii) a transaction at a different trade level and in different quantities; and (e) if the export price determined in accordance with any of paragraphs (a) to (d) is greater than US$500 per thousand board feet, the export price is deemed to be US$500 per thousand board feet. Exchange rate (3) For the purposes of subsection (2), the rate of exchange in order to determine the export price in Canadian dollars of a softwood lumber product is the rate of exchange as quoted by the Bank of Canada at noon on the day before the day on which the charge referred to in section 10 becomes payable. Surge mechanism 14. (1) The amount of the charge applicable to an export of a softwood lumber product from a region during a month is increased by 50% if (a) the export is one that does not require an export allocation under paragraph 6.3(3)(b) of the Export and Import Permits Act; and (b) the exports of softwood lumber from the region during that month exceed the monthly trigger volume applicable to that region. Exports in excess of trigger volume (2) Exports from a region for a month are considered to have exceeded the monthly trigger volume if the volume of exports from that region for that month exceed 101% of the monthly trigger volume for that region for that month. Trigger volume (3) The monthly trigger volume applicable to a region, other than the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act, is the amount determined by the formula [A x (B/100) x 1.1] - C C. 13 Softwood Lumber Produc where A is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula; B is (a) in respect of Ontario, 3.15, (b) in respect of Quebec, 4.39, (c) in respect of Manitoba, 0.29, (d) in respect of Saskatchewan, 0.42, (e) in respect of Alberta, 2.49, and (f) in respect of the BC Interior, as defined in subsection 6.3(1) of the Export and Import Permits Act, 17.43; and C is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume. Trigger volume — BC Coast (4) The monthly trigger volume applicable to the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act is the amount determined by the formula (A x 0.0186 x 1.1 x B) - C where A is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula; B is (a) in respect of January, the quotient obtained by dividing 0.7212 by 0.9288, (b) in respect of February, the quotient obtained by dividing 0.9767 by 0.8944, Droits d’exportation de prod (c) in respect of March, the quotient obtained by dividing 0.9025 by 1.0014, (d) in respect of April, the quotient obtained by dividing 1.3557 by 1.0707, (e) in respect of May, the quotient obtained by dividing 1.1461 by 1.0679, (f) in respect of June, the quotient obtained by dividing 1.1771 by 1.0405, (g) in respect of July, the quotient obtained by dividing 0.9213 by 1.0508, (h) in respect of August, the quotient obtained by dividing 1.0719 by 1.0501, (i) in respect of September, the quotient obtained by dividing 1.0584 by 0.9953, (j) in respect of October, the quotient obtained by dividing 0.9477 by 1.0636, (k) in respect of November, the quotient obtained by dividing 0.8466 by 0.9435, and (l) in respect of December, the quotient obtained by dividing 0.8746 by 0.8930; and C is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume. Charge 15. (1) If, during a particular calendar quarter, total exports of softwood lumber products from Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador, as provided in subsection 11(2), exceed the aggregate sum of total production in that calendar quarter and total inventory at the beginning of that calendar quarter, of softwood lumber products that underwent their first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine, each person responsible for excess exports as determined under subsection (2) shall pay to Her Majesty in right of Canada a charge calculated C. 13 Softwood Lumber Produc by applying $200 per thousand board feet of exported lumber products to that person’s excess exports. When charge payable (1.1) The charge becomes payable at the time that the softwood lumber product is exported. Excess exports (2) A person’s excess exports shall equal the amount by which its exports exceed in a particular calendar quarter the sum of the person’s total production in that calendar quarter and total inventory at the beginning of that calendar quarter of softwood products that underwent their first primary processing in New Brunswick, Nova Scotia, Prince Edward Island or Newfoundland and Labrador from softwood sawlogs originating in one of those provinces or in the State of Maine. EXEMPTIONS Exemption — schedule 16. (1) Despite section 10, a person whose name is set out in the schedule is exempt from the charge referred to in that section in respect of the export of softwood lumber products that the person produces if the person satisfies the prescribed conditions. Amendments to schedule (2) The Governor in Council may, by regulation, amend the schedule by adding, deleting or changing the name of a person. Exempt exports 17. (1) The Governor in Council may, on the recommendation of the Minister for International Trade, by regulation, conditionally or unconditionally, exempt from the charge referred to in section 10 the export of softwood lumber products from a region. Exempt products (2) The Governor in Council may, on the recommendation of the Minister for International Trade, by regulation, conditionally or unconditionally, exempt any softwood lumber product from the charges referred to in sections 10 and 15. Exempt person (3) Any person exempted from registering under subsection 22(2) is exempted from the charges referred to in sections 10 and 15. Droits d’exportation de prod CHARGE ON REFUNDS OF DUTY DEPOSITS Definitions 18. (1) The following definitions apply in this section. “covered entry” « importation non tarifée » “covered entry” means an entry that, on October 12, 2006, has not been liquidated and in respect of which a duty deposit has been made. “duty deposit” « dépôt douanier » “duty deposit” means an amount deposited under a United States duty order. “duty deposit refund” « remboursement » “duty deposit refund” of a specified person means the refund of a duty deposit and all interest on that deposit accrued under United States law up to the earlier of (a) the day on which the refund is issued to the specified person or a designate of the specified person, and (b) the day on which the specified person sells the rights to the refund to Her Majesty in right of Canada. “revocation” « révocation » “specified person” « intéressé » “specified rate” « taux applicable » “revocation” means a revocation of a United States duty order including any direction to end any suspension of liquidation of a covered entry or to refund any duty deposit. “specified person” means a person that filed the documents and information required under the applicable United States law in respect of the importation of any softwood lumber product into the United States during the period beginning on May 22, 2002 and ending on October 11, 2006. “specified rate” means the rate determined by the formula A/B where A is US$1,000,000,000; and B is the total, expressed in United States dollars, of all duty deposits and all interest accrued on them under United States law as of October 12, 2006. C. 13 “United States duty order” « décret douanier américain » “United States duty order” means Softwood Lumber Produc (a) the Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Certain Softwood Lumber Products from Canada, 67 Fed. Reg. 36,068 (May 22, 2002), as amended; or (b) the Notice of Amended Final Affirmative Countervailing Duty Determination and Notice of Countervailing Duty Order: Certain Softwood Lumber Products from Canada, 67 Fed. Reg. 36,070 (May 22, 2002), as amended. Rounding (2) The specified rate shall be expressed as a decimal fraction rounded off to four digits after the decimal point, but if the fifth digit is five or greater, the fourth digit is increased by one. Imposition of charge on duty deposit refund (3) Every specified person in respect of whom a covered entry is to be liquidated as a result of a revocation shall pay to Her Majesty in Right of Canada a charge at the specified rate on the amount of any duty deposit refund that relates to the covered entry. Liability for charge (4) The charge under subsection (3) is payable by the specified person even if the refund is issued to a designate of the specified person. When charge payable (5) The charge under subsection (3) becomes payable by the specified person on the later of (a) the day on which this Act is assented to, and (b) the day that is the earlier of (i) the day on which the duty deposit refund is issued to the specified person or a designate of the specified person, and (ii) the day on which the specified person sells the rights to the duty deposit refund to Her Majesty in right of Canada. Joint and several or solidary liability (6) If, at any time after September 18, 2006, a specified person sells or otherwise disposes of the rights to a duty deposit refund to a person other than Her Majesty in right of Canada, the Droits d’exportation de prod specified person and the other person are jointly and severally, or solidarily, liable to pay the charge under subsection (3) and any penalties and interest payable under this Act in relation to that charge. GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE ADMINISTRATION, ENFORCEMENT AND OFFICERS Minister’s duty 19. The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act. Staff 20. (1) The persons that are necessary to administer and enforce this Act are to be appointed, employed or engaged in the manner authorized by law. Delegation of powers (2) The Minister may authorize any person employed or engaged by the Agency or who occupies a position of responsibility in the Agency to exercise powers or perform duties of the Minister, including any judicial or quasijudicial power or duty of the Minister, under this Act. Administration of oaths 21. Any person, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every person so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits. REGISTRATION AND CERTIFICATION Duty to register 22. (1) Every person who exports a softwood lumber product to the United States is required to be registered for the purposes of this Act. Exception (2) On the recommendation of the Minister for International Trade, the Governor in Council may, by regulation, exempt persons or classes of persons from the requirement to register. C. 13 Application (3) A person required to be registered shall apply to the Minister for registration on or before the day on which the softwood lumber product is exported. Form and manner (4) An application for registration must be made in the prescribed form containing the prescribed information and must be filed with the Minister in the prescribed manner. Security (5) An applicant who is not resident in Canada or who does not have a permanent establishment in Canada shall give and maintain security, in an amount and in a form satisfactory to the Minister, for the purposes of securing all amounts payable by the person under this Act. Definition of “permanent establishment” (6) For the purposes of subsection (5), “permanent establishment” in respect of an applicant means a fixed place of business of the applicant, including a place of management, a branch, an office, a factory or a workshop or any timberland. Registration 23. The Minister may register any person applying for registration and, if the Minister does so, shall notify the person of the effective date of the registration. Cancellation 24. (1) The Minister may cancel the registration of a person registered under section 23 if the Minister is satisfied that the registration is not required for the purposes of this Act or the person has failed to maintain security in accordance with subsection 22(5). Notice (2) If the Minister cancels the registration of a person, the Minister shall notify the person in writing of the cancellation and the effective date of the cancellation. Certification of independent remanufacturers 25. (1) The Minister may, on application in prescribed form containing prescribed information and filed in the prescribed manner, certify a person registered under section 23 to be an independent remanufacturer. Renewal, etc. (2) The Minister may amend, suspend, renew, cancel or reinstate a certification as required for the purposes of this Act. Softwood Lumber Produc Droits d’exportation de prod 2006 Notice (3) If the Minister cancels the certification of a person, the Minister shall notify the person in writing of the cancellation and of its effective date. Registry (4) The Minister shall establish and maintain a publicly accessible registry containing the following information with respect to each certification: (a) the name of the person that is certified; (b) the date of the certification; (c) any amendment made to the certification and the date of the amendment; and (d) the date of any suspension, renewal, cancellation or reinstatement of the certification. RETURNS AND PAYMENT OF CHARGES Monthly returns 26. A person who is, at any time during a particular month, registered under section 23 or required to be registered under section 22 — or a specified person as defined in subsection 18(1) by whom a charge under section 18 becomes payable at any time during a particular month — shall, on or before the last day of the month following the particular month, (a) file with the Minister a return for that month in the prescribed form and manner and containing the prescribed information; (b) calculate in the return the total amount of the charges payable for that month; and (c) pay that amount, if any, to the Receiver General. Large payments 27. Every person who is required under this Act to pay an amount to the Receiver General shall, if the amount is $50,000 or more, make the payment to the account of the Receiver General at (a) a bank; (b) a credit union; (c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or C. 13 Softwood Lumber Produc (d) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables. Small amounts owing 28. (1) If, at any time, the total of all unpaid amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, the amount owing by the person is deemed to be nil. Small amounts payable (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil. Set-off of refunds 29. If, at any time, a person files a return in which the person reports an amount that the person is required to pay under this Act and the person claims a refund payable to the person under this Act at that time, in the return or in another return, or in a separate application filed under this Act with the return, the person is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund. Authority for separate returns 30. (1) A person who engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application. Authorization by Minister (2) On receipt of the application, the Minister may, in writing, authorize the person to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that Droits d’exportation de prod (a) the branch or division can be separately identified by reference to its location or the nature of the activities engaged in by it; and (b) separate records, books of account and accounting systems are maintained in respect of the branch or division. Revocation of authorization (3) The Minister may revoke an authorization if (a) the person, in writing, requests the Minister to revoke the authorization; (b) the person fails to comply with any condition of the authorization or with any provision of this Act; (c) the Minister is no longer satisfied that the requirements of subsection (2) are met; or (d) the Minister considers that the authorization is no longer required. Notice of revocation (4) If the Minister revokes the authorization of a person, the Minister shall notify the person in writing of the revocation and the effective date of the revocation. Execution of returns, etc. 31. A return or other document made under this Act by a person that is not an individual shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person. If the person is a corporation or an association that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation or association, are deemed to be so duly authorized. Extension of time 32. (1) The Minister may at any time extend, in writing, the time for filing a return or providing information under this Act. Effect of extension (2) If the Minister extends the time within which a person is required to file a return or provide information under subsection (1), (a) the return shall be filed, or the information shall be provided, within the time so extended; C. 13 Softwood Lumber Produc (b) any amount payable that the person is required to report in the return shall be paid within the time so extended; (c) any interest payable under section 34 on the amount referred to in paragraph (b) shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and (d) any penalty payable under section 64 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires. Demand for return 33. The Minister may, by a demand served personally or sent by mail, require a person to file, within any reasonable time that may be stipulated in the demand, a return under this Act for any reporting period that is designated in the demand. INTEREST Compound interest on amounts not paid when required 34. (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the specified rate and computed for the period beginning on the first day after the day on or before which the amount was required to be paid and ending on the day on which the amount is paid. Payment of interest that is compounded (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day. Period when interest not payable (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies in the notice, interest is not payable on the specified amount for the period. Droits d’exportation de prod Interest and penalty amounts of $25 or less (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and a penalty payable under section 64, owing at that time to Her Majesty in right of Canada under this Act for a reporting period and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25, the Minister may cancel the interest and penalty. Compound interest on amounts owed by Her Majesty 35. Interest shall be compounded daily at the specified rate on amounts owed by Her Majesty in right of Canada to a person and computed for the period beginning on the first day after the day on which the amount is required to be paid by Her Majesty in right of Canada and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada. Application of interest provisions if Act amended 36. For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which that Act is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though that Act had been assented to on the particular day. Waiving or cancelling interest or penalty 37. (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period, or on application by a person on or before that day, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty payable under section 64 on an amount that is required to be paid by the person under this Act in respect of that reporting period. Interest if amounts cancelled (2) If a person has paid an amount of interest or penalty and the Minister cancels that amount under subsection (1), the Minister shall pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is refunded or applied against an amount owed by the person to Her Majesty in right of Canada. C. 13 Softwood Lumber Produc ADMINISTRATIVE CHARGE UNDER THE FINANCIAL ADMINISTRATION ACT Dishonoured instruments 38. For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid. REFUNDS Statutory recovery rights 39. Except as specifically provided under this Act or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty in right of Canada as or on account of, or that has been taken into account by Her Majesty in right of Canada as, an amount payable under this Act. Refund — third country adjustment 40. (1) The Minister shall pay to a person who has paid the charge referred to in section 10 in respect of the export of softwood lumber products from a region during two consecutive calendar quarters a refund of the amount calculated under subsection (2) or (3) if all of the following occur in each of two consecutive calendar quarters when compared respectively with each of the same two consecutive calendar quarters from the preceding year: (a) the share of American consumption of softwood lumber products from imports not originating in Canada, as calculated in accordance with the prescribed formula, is at least 20% greater; (b) the Canadian market share of American consumption of softwood lumber products, as calculated in accordance with the prescribed formula, has decreased; and Droits d’exportation de prod (c) the American market share of American consumption of softwood lumber products, as calculated in accordance with the prescribed formula, has increased. Amount of refund — charge calculated under subsection 12(3) (2) If the amount of the charge was calculated using the applicable rate under subsection 12(3), the amount of the refund is the amount of the charge paid. Amount of refund — charge calculated under subsection 12(4) (3) If the amount of the charge was calculated using the applicable rate under subsection 12(4), the amount of the refund is, subject to subsection (4), the lesser of (a) the amount of the charge paid, and (b) 5% of the export price of the softwood lumber product exported as determined in accordance with section 13. Trigger volume (4) If exports from a region for a month exceeded (within the meaning of subsection 14(2)) the monthly trigger volume during any month of the two consecutive calendar quarters, the amount of the refund is nil. Application for refund (5) A refund in respect of an amount shall not be paid under subsection (1) to a person unless the person files, in the prescribed manner, an application for the refund in the prescribed form and containing prescribed information within two years after the day on which the amount was paid by the person. One application per calendar quarter (6) Subject to subsection (7), not more than one application for a refund under this section may be made by a person in any calendar quarter. Application by branches and divisions (7) If a person who is entitled to a refund under this section is engaged in one or more activities in separate branches or divisions and is authorized under subsection 30(2) to file separate returns in relation to a branch or division, the person may file separate applications under this section in respect of the branch or division but not more than one application for a refund under this section in respect of the branch or division may be made by the person in any calendar quarter. C. 13 Refund of payment 41. (1) If a person has paid an amount as or on account of, or that was taken into account as, a charge, a penalty, interest or other obligation under this Act in circumstances where the amount was not payable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) and (3), pay a refund of that amount to the person. Restriction (2) A refund in respect of an amount shall not be paid under subsection (1) to a person to the extent that the Minister has assessed the person for the amount under section 50. Application for refund (3) A refund in respect of an amount shall not be paid under subsection (1) to a person unless the person files, in the prescribed manner, an application for the refund in prescribed form and containing prescribed information within two years after the day on which the amount was paid by the person. One application per reporting period (4) Subject to subsection (5), not more than one application for a refund under this section may be made by a person in any reporting period. Application by branches and divisions (5) If a person who is entitled to a refund under this section is engaged in one or more activities in separate branches or divisions and is authorized under subsection 30(2) to file separate returns in relation to a branch or division, the person may file separate applications under this section in respect of the branch or division but not more than one application for a refund under this section in respect of the branch or division may be made by the person in any reporting period. Restriction 42. (1) A refund of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that Softwood Lumber Produc (a) the amount has previously been refunded, remitted, applied or paid to that person under this or any other Act of Parliament; (b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament; or (c) the amount has been or will be refunded to the person under this Act. Droits d’exportation de prod Single application (2) Only one application may be made under this Act for a refund with respect to any matter. Restriction — trustees 43. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt have been paid. Overpayment of refunds, etc. 44. (1) If an amount is paid to, or applied to a liability of, a person as a refund under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day on which the amount is paid to, or applied to a liability of, the person. Effect of reduction of refund, etc. (2) For the purpose of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 42, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General. BANKRUPTCIES AND CORPORATE REORGANIZATIONS Definitions “bankrupt” « failli » “business” « entreprise » “receiver” « séquestre » 45. (1) The following definitions apply in this section. “bankrupt” has the same meaning as in section 2 of the Bankruptcy and Insolvency Act. “business” includes a part of a business. “receiver” means a person who C. 13 Softwood Lumber Produc (a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to manage or operate a business or a property of another person; (b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security; (c) is appointed by a bank to act as an agent or mandatary of the bank in the exercise of the authority of the bank under subsection 426(3) of the Bank Act in respect of property of another person; (d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation; or (e) is appointed as a committee, guardian, curator, tutor or mandatary in case of incapacity with the authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets. It includes a person who is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to manage or operate a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to manage or operate a business or a property of another person, it does not include that creditor. “relevant assets” « actif pertinent » “relevant assets” of a receiver means (a) if the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and (b) if the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets. 2006 “representative” « représentant » Trustee’s obligations Droits d’exportation de prod “representative” means a person, other than a trustee in bankruptcy or a receiver, who is administering, winding up, controlling or otherwise dealing with any property, business, estate or succession. (2) For the purposes of this Act, if on a particular day a person becomes a bankrupt, (a) the trustee in bankruptcy, and not the person, is liable for the payment of any amount (other than an amount that relates solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that becomes payable by the person under this Act during the period beginning on the day immediately after the day on which the trustee became the trustee in bankruptcy of the person and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that (i) the trustee is liable for the payment of any amount that became payable by the person after the particular day in respect of reporting periods that ended on or before the particular day, or of any amount that became payable by the person after the particular day, only to the extent of the property of the person in possession of the trustee available to satisfy the liability, (ii) the trustee is not liable for the payment of any amount for which a receiver is liable under subsection (3), and (iii) the payment by the person of an amount in respect of the liability shall discharge the liability of the trustee to the extent of that amount; (b) if, on the particular day the person is registered under section 23, the registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were the registered person in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate; C. 13 Softwood Lumber Produc (c) the reporting period of the person begins and ends on the day on which it would have begun and ended if the bankruptcy had not occurred, except that (i) the reporting period of the person during which the person becomes a bankrupt shall end on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates shall begin on the day immediately after the particular day, and (ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act shall end on the day on which the discharge is granted; (d) subject to paragraph (f), the trustee in bankruptcy shall file with the Minister in the prescribed form and manner all returns in respect of the activities of the person to which the bankruptcy relates for the reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Act to be filed by the person, as if those activities were the only activities of the person; (e) subject to paragraph (f), if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the trustee in bankruptcy shall, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a return for that reporting period of the person; and (f) if there is a receiver with authority in respect of any business, property, affairs or assets of the person, the trustee in bankruptcy is not required to include in any return any information that the receiver is required under subsection (3) to include in a return. 2006 Receiver’s obligations Droits d’exportation de prod (3) For the purposes of this Act, if on a particular day a receiver is vested with authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person, (a) if the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person; (b) the person and the receiver are jointly and severally or solidarily liable for the payment of any amount that becomes payable by the person under this Act before or during the period during which the receiver is acting as receiver of the person to the extent that the amount can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amount became payable, except that (i) the receiver is liable for the payment of any amount that became payable before that period only to the extent of the property of the person in possession or under the control and management of the receiver after (A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amount, and (B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person, (ii) the person is not liable for the payment of any amount payable by the receiver, and C. 13 Softwood Lumber Produc (iii) the payment by the person or the receiver of an amount in respect of the liability shall discharge the joint and several or solidary liability to the extent of that amount; (c) the reporting period of the person begins and ends on the day on which it would have begun and ended if the vesting had not occurred, except that (i) the reporting period of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, shall end on the particular day and a new reporting period of the person in relation to the relevant assets shall begin on the day immediately after the particular day, and (ii) the reporting period of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, shall end on the day on which the receiver ceases to act as receiver of the person; (d) the receiver shall file with the Minister in the prescribed form and manner all returns in respect of the relevant assets of the receiver for reporting periods of the person ending in the period during which the receiver is acting as receiver and that are required under this Act to be made by the person, as if the relevant assets were the only businesses, properties, affairs and assets of the person; and (e) if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the receiver shall, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in the prescribed form and manner a return for that reporting period that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period. 2006 Certificates for receivers and representatives Droits d’exportation de prod (4) Every receiver and representative who controls property of another person who is required to pay any amount under this Act shall, before distributing the property to any person, obtain a certificate from the Minister certifying that the following amounts have been paid or that security for the payment of them has, in accordance with this Act, been accepted by the Minister: (a) all amounts that are payable by the other person under this Act in respect of the reporting period during which the distribution is made, or any previous reporting period; and (b) all amounts that are, or can reasonably be expected to become, payable under this Act by the representative or receiver in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period. Liability for failure to obtain certificate (5) Any receiver or representative who distributes property without obtaining a certificate in respect of the amounts referred to in subsection (4) is personally liable for the payment of those amounts to the extent of the value of the property so distributed. Amalgamations 46. If two or more corporations (each of which is referred to in this section as a “predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new corporation”), the new corporation is deemed to be a separate person from each of the predecessors for the purposes of this Act except that, for the purposes of sections 26 to 45 and 48 to 98, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor. PARTNERSHIPS Member of a partnership 47. (1) For the purposes of this Act, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person. Joint and several or solidary liability (2) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the C. 13 Softwood Lumber Produc partnership, other than a member who is a limited partner and is not a general partner, are jointly and severally or solidarily liable for (a) the payment of all amounts that become payable by the partnership under this Act before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that (i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property and money that is regarded as property or money of the partnership under the relevant laws of general application in force in a province relating to partnerships, and (ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges the joint liability to the extent of that amount; and (b) all other obligations under this Act that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution. Continuation of partnership Continuation of predecessor partnership by new partnership (3) If a partnership would, but for this subsection, be regarded as having ceased to exist, the partnership is deemed for the purposes of this Act not to have ceased to exist until the registration of the partnership is cancelled. (4) Where (a) a partnership (in this subsection referred to as the “predecessor partnership”) would, but for this section, be regarded as having ceased at any time to exist, (b) a majority of the members of the predecessor partnership that together had, at or immediately before that time, more than a 50% interest in the capital of the predecessor Droits d’exportation de prod partnership become members of another partnership of which they comprise more than half of the members, and (c) the members of the predecessor partnership who become members of the other partnership transfer to the other partnership all or substantially all of the property distributed to them in settlement of their capital interests in the predecessor partnership, the other partnership is deemed to be a continuation of and the same person as the predecessor partnership, except where the other partnership is registered under section 23 or applies for registration under section 22. RECORDS AND INFORMATION Keeping records 48. (1) Every person who is required to pay an amount under this Act shall keep all records that are necessary to determine whether they have complied with this Act. Minister may specify information (2) The Minister may specify in writing the form that a record is to take and any information that the record must contain. Language and location of record (3) Unless otherwise authorized by the Minister, the records shall be kept in Canada, in English or French. Electronic records (4) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record. Inadequate records (5) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify, and the person shall keep the records specified by the Minister. General period for retention (6) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed. C. 13 Objection or appeal (7) If a person who is required under this Act to keep records serves a notice of objection or is a party to an appeal or reference under this Act, the person shall retain every record that pertains to the subject-matter of the objection, appeal or reference until the objection, appeal or reference is finally disposed of. Demand by Minister (8) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or sent by mail, require any person required under this Act to keep records to retain those records for any period that is specified in the demand, and the person shall comply with the demand. Permission for earlier disposal (9) A person who is required under this Act to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister. Requirement to provide records or information 49. (1) Despite any other provision of this Act but subject to subsection (2), the Minister may, for any purpose related to the administration or enforcement of this Act, including the collection of any amount payable under this Act by any person, by notice served personally or sent by mail, require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with Softwood Lumber Produc (a) any information or additional information, including a return under this Act; or (b) any record. Unnamed persons (2) The Minister shall not impose on any person (in this section referred to as a “third party”) a requirement under subsection (1) to provide information or any record relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (3). Judicial authorization (3) On ex parte application by the Minister, a judge may, subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed Droits d’exportation de prod person (in this section referred to as the “group”) if the judge is satisfied by information on oath that (a) the person or group is ascertainable; and (b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Act. Service of authorization (4) An authorization granted under subsection (3) shall be attached to the notice referred to in subsection (1). Review of authorization (5) If an authorization is granted under subsection (3), a third party on whom a notice is served or to whom a notice is sent under subsection (1) may, within 15 days after the service or sending, apply to the judge who granted the authorization or, if that judge is unable to act, to another judge of the same court for a review of the authorization. Powers on review (6) On hearing an application under subsection (5), a judge may (a) cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (3)(a) and (b) have been met; or (b) confirm or vary the authorization if the judge is satisfied that those conditions have been met. ASSESSMENTS Assessment 50. (1) The Minister may assess a person for any charge or other amount payable by the person under this Act and may, despite any previous assessment covering, in whole or in part, the same matter, vary the assessment, reassess the person assessed or make any additional assessments that the circumstances require. Liability not affected (2) The liability of a person to pay an amount under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made. C. 13 Minister not bound (3) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment despite any return, application or information provided or not provided. Refund on reassessment (4) If a person has paid an amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person in respect of that reporting period, the Minister shall refund to the person the amount of the excess and, for the purpose of section 35, the refund is deemed to have been required to be paid on the day on which the amount was paid to the Minister. Determination of refunds (5) In making an assessment, the Minister may take into account any refund payable to the person being assessed under this Act. If the Minister does so, the person is deemed to have applied for the refund under this Act on the day on which the notice of assessment is sent. Assessment of refund 51. (1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person. Reassessment (2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund. Payment (3) If, on assessment under this section, the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person. Restriction (4) A refund shall not be paid under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act. Interest (5) If a refund is paid to a person, the Minister shall pay interest at the specified rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid. Softwood Lumber Produc Droits d’exportation de prod Notice of assessment 52. (1) After making an assessment under this Act, the Minister shall send to the person assessed a notice of the assessment. Payment of remainder (2) If the Minister has assessed a person for an amount, any portion of that amount remaining unpaid is payable to the Receiver General as of the date of the notice of assessment. Limitation period for assessments 53. (1) Subject to subsections (2) to (4), no assessment in respect of any charge or other amount payable by a person under this Act shall be made more than four years after the day on which the person filed the person’s return under section 26. Exception — objection or appeal (2) A variation of an assessment, or a reassessment, in respect of any charge or other amount payable under this Act by a person may be made at any time if the variation or reassessment is made (a) to give effect to a decision on an objection or appeal; or (b) with the written consent of an appellant to dispose of an appeal. Exception — neglect or fraud (3) An assessment in respect of any matter may be made at any time if the person to be assessed has, in respect of that matter, (a) made a misrepresentation that is attributable to their neglect, carelessness or wilful default; or (b) committed fraud with respect to a return or an application for a refund filed under this Act. Exception — waiver (4) An assessment in respect of any matter specified in a waiver filed under subsection (5) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (6), in which case an assessment may be made at any time during the six months that the waiver remains in effect. Filing waiver (5) Any person may, within the time otherwise limited by subsection (1) for an assessment, waive the application of that subsection by filing with the Minister a waiver in the C. 13 Softwood Lumber Produc prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection. Revoking waiver (6) Any person who has filed a waiver may revoke it by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner. The waiver remains in effect for six months after the notice is filed. OBJECTIONS TO ASSESSMENT Objection to assessment Issue to be decided 54. (1) Any person who has been assessed and who objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts. (2) A notice of objection shall (a) reasonably describe each issue to be decided; (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and (c) provide the facts and reasons relied on by the person in respect of each issue. Late compliance (3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister. Limitation on objections (4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this section referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to Droits d’exportation de prod the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue (a) only if the person complied with subsection (2) in the notice with respect to that issue; and (b) only with respect to the relief sought in respect of that issue as specified by the person in the notice. Application of subsection (4) (5) Subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment. Limitation on objections (6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person. Acceptance of objection (7) The Minister may accept a notice of objection even if it was not filed in the prescribed form and manner. Consideration of objection (8) On receipt of a notice of objection, the Minister shall, without delay, reconsider the assessment and vacate or confirm it or make a reassessment. Waiving reconsideration (9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court of Canada requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration. Notice of decision (10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister shall notify the person objecting to the assessment of the Minister’s decision by mail. Extension of time by Minister 55. (1) If no objection to an assessment is filed under section 54 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application. Contents of application (2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so. C. 13 How application made (3) An application must be made by delivering or mailing, to the Assistant Commissioner of the Appeals Branch of the Agency, the application accompanied by a copy of the notice of objection. Defect in application (4) The Minister may accept an application even if it was not made in accordance with subsection (3). Duties of Minister (5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by mail. Date of objection if application granted (6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister. Conditions for grant of application (7) No application shall be granted under this section unless Softwood Lumber Produc (a) the application is made within one year after the expiry of the time limited under this Act for objecting; and (b) the person demonstrates that (i) within the time limited under this Act for objecting, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to object to the assessment, (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and (iii) the application was made as soon as circumstances permitted it to be made. APPEAL Extension of time by Tax Court of Canada 56. (1) A person who has made an application under section 55 may apply to the Tax Court of Canada to have the application granted after either (a) the Minister has refused the application; or (b) 90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision. Droits d’exportation de prod When application may not be made (2) No application may be made after the expiry of 30 days after the decision referred to in subsection 55(5) was mailed to the person. How application made (3) An application must be filed in the Registry of the Tax Court of Canada, in accordance with the rules of the Court made under the Tax Court of Canada Act. Copy to the Commissioner (4) The Tax Court of Canada must send a copy of the application to the Commissioner. Powers of Tax Court of Canada (5) The Tax Court of Canada may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order. When application to be granted (6) No application shall be granted under this section unless (a) the application under subsection 55(1) was made within one year after the expiry of the time limited under this Act for objecting; and (b) the person demonstrates that (i) within the time limited under this Act for objecting, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to object to the assessment, (ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and (iii) the application under subsection 55(1) was made as soon as circumstances permitted it to be made. Appeal to Tax Court of Canada 57. (1) Subject to subsection (2), a person who has filed a notice of objection to an assessment may appeal to the Tax Court of Canada to have the assessment vacated or a reassessment made after (a) the Minister has confirmed the assessment or has reassessed; or C. 13 Softwood Lumber Produc (b) 180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed. No appeal (2) No appeal under subsection (1) may be instituted after the expiry of 90 days after notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 54(10). Amendment of appeal (3) The Tax Court of Canada may, on any terms that it sees fit, authorize a person who has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal. Extension of time to appeal 58. (1) If no appeal to the Tax Court of Canada under section 57 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court of Canada for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just. Contents of application (2) An application must set out the reasons why the appeal was not instituted within the time limited under section 57 for doing so. How application made (3) An application must be filed in the Registry of the Tax Court of Canada, in accordance with the rules of the Court made under the Tax Court of Canada Act. Copy to Deputy Attorney General of Canada (4) The Tax Court of Canada must send a copy of the application to the office of the Deputy Attorney General of Canada. When order to be made (5) No order shall be made under this section unless (a) the application was made within one year after the expiry of the time limited under section 57 for appealing; and Droits d’exportation de prod (b) the person demonstrates that (i) within the time limited under section 57 for appealing, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to appeal, (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, (iii) the application was made as soon as circumstances permitted it to be made, and (iv) there are reasonable grounds for the appeal. Limitation on appeals to the Tax Court of Canada 59. (1) Despite section 57, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court of Canada to have the assessment vacated, or a reassessment made, only with respect to (a) an issue in respect of which the person has complied with subsection 54(2) in the notice and the relief sought in respect of the issue as specified by the person in the notice; or (b) an issue described in subsection 54(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue. No appeal if waiver (2) Despite section 57, a person may not appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person. Institution of appeals 60. An appeal to the Tax Court of Canada under this Act shall be instituted in accordance with the Tax Court of Canada Act. Disposition of appeal 61. The Tax Court of Canada may dispose of an appeal from an assessment by (a) dismissing it; or (b) allowing it and (i) vacating the assessment, or C. 13 Softwood Lumber Produc (ii) referring the assessment back to the Minister for reconsideration and reassessment. References to Tax Court of Canada 62. (1) If the Minister and another person agree in writing that a question arising under this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax Court of Canada, that question shall be determined by that Court. Time during consideration not to count (2) For the purposes of making an assessment, filing a notice of objection to an assessment or instituting an appeal from an assessment, the time between the day on which proceedings are instituted in the Tax Court of Canada to have a question determined and the day on which the question is finally determined shall not be counted in the computation of (a) the four-year period referred to in subsection 53(1); (b) the period within which a notice of objection to an assessment may be filed under subsection 54(1); or (c) the period within which an appeal may be instituted under subsection 57(2). Reference of common questions to Tax Court of Canada Contents of application 63. (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court of Canada for a determination of the question. (2) An application shall set out (a) the question in respect of which the Minister requests a determination; (b) the names of the persons that the Minister seeks to have bound by the determination; and (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application. Droits d’exportation de prod Service (3) A copy of the application shall be served by the Minister on each of the persons named in it and on any other person who, in the opinion of the Tax Court of Canada, is likely to be affected by the determination of the question. Determination by Tax Court of Canada of question (4) If the Tax Court of Canada is satisfied that a determination of a question set out in an application will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court of Canada under this subsection, it may (a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or (b) if one or more of the persons so named has or have appealed, make any order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed to determine the question. Determination final and conclusive (5) Subject to subsection (6), if a question set out in an application is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of persons named by the Court under subsection (4). Appeal (6) If a question set out in an application is determined by the Tax Court of Canada, the Minister or any person who has been served with a copy of the application and who is named in an order of the Court under subsection (4) may appeal from the determination, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as those provisions relate to appeals from the Tax Court of Canada. Parties to appeal (7) The parties who are bound by a determination are parties to any appeal from the determination. C. 13 Time during consideration not counted (8) For the purpose of making an assessment of a person, filing a notice of objection to an assessment or instituting an appeal from an assessment, the periods described in subsection (9) shall not be counted in the computation of Softwood Lumber Produc (a) the four-year period referred to in subsection 53(1); (b) the period within which a notice of objection to an assessment may be filed under subsection 54(1); or (c) the period within which an appeal may be instituted under subsection 57(2). Excluded periods (9) The period that is not to be counted in the computation of the periods described in paragraphs (8)(a) to (c) is the time between the day on which an application that is made under this section is served on a person under subsection (3) and (a) in the case of a person named in an order of the Tax Court of Canada under subsection (4), the day on which the determination becomes final and conclusive and not subject to any appeal; or (b) in the case of any other person, the day on which the person is served with a notice that the person has not been named in an order of the Tax Court of Canada under subsection (4). ADMINISTRATION AND ENFORCEMENT PENALTIES Failure to file a return when required 64. Every person who fails to file a return as and when required under section 26 shall pay a penalty equal to the total of (a) an amount equal to 1% of the amount of charges unpaid at the expiry of the time for filing the return, and (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. Droits d’exportation de prod Failure to answer demand 65. Every person who fails to file a return as and when required under a demand issued under section 33 is liable to a penalty of $250. Failure to provide information 66. Every person who fails to provide any information or record as and when required under this Act is liable to a penalty of $100 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information. False statements or omissions 67. Every person who knowingly, or under circumstances amounting to gross negligence or, in the Province of Quebec, gross fault, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a “return”) is liable to a penalty of the greater of $250 and 25% of the total of (a) if the false statement or omission is relevant to the determination of an amount payable under this Act by the person, the amount, if any, by which (i) the amount payable exceeds (ii) the amount that would be payable by the person if the amount payable were determined on the basis of the information provided in the return, and (b) if the false statement or omission is relevant to the determination of a refund or any other payment that may be obtained under this Act, the amount, if any, by which (i) the amount that would be the refund or other payment payable to the person if the refund or other payment were determined on the basis of the information provided in the return exceeds C. 13 Softwood Lumber Produc (ii) the amount of the refund or other payment payable to the person. OFFENCES AND PUNISHMENT Offence for failure to file return or to comply with demand or order 68. (1) Every person who fails to file or make a return as and when required under this Act or who fails to comply with an obligation under subsection 48(5) or (8) or section 49 or an order made under section 74 is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $1,000 and not more than $25,000 or to imprisonment for a term not exceeding 12 months, or to both. Saving (2) A person who is convicted of an offence under subsection (1) for a failure to comply with a provision of this Act is not liable to pay a penalty imposed under section 65 or 66 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made. Offences for false or deceptive statement 69. (1) Every person commits an offence who (a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, certificate, record or answer filed or made as required under this Act; (b) for the purposes of evading payment of any amount payable under this Act, or obtaining a refund to which the person is not entitled under this Act, (i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or (ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person; Droits d’exportation de prod (c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment of an amount payable under this Act; (d) wilfully, in any manner, obtains or attempts to obtain a refund to which the person is not entitled under this Act; or (e) conspires with any person to commit an offence described in any of paragraphs (a) to (d). Punishment (2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to (a) a fine of not less than 50%, and not more than 200%, of the amount payable that was sought to be evaded, or of the refund sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000; (b) imprisonment for a term not exceeding 18 months; or (c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding 18 months. Penalty on conviction (3) A person who is convicted of an offence under subsection (1) is not liable to pay a penalty imposed under any of sections 64 to 67 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. Stay of appeal (4) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court of Canada and, on doing so, the proceedings before the Tax Court of Canada are stayed pending a final determination of the outcome of the prosecution. C. 13 Failure to pay charges 70. Every person who wilfully fails to pay a charge as and when required under this Act is guilty of an offence punishable on summary conviction and, in addition to any penalty or interest otherwise provided, is liable to Softwood Lumber Produc (a) a fine not exceeding the aggregate of $1,000 and an amount equal to 20% of the amount of the charge that should have been paid; (b) imprisonment for a term not exceeding six months; or (c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding six months. Offence re confidential information 71. (1) Every person is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both, if the person (a) contravenes subsection 84(2); or (b) knowingly contravenes an order made under subsection 84(7). Offence re confidential information (2) Every person (a) to whom confidential information has been provided for a particular purpose under paragraph 84(6)(a), (b), (c), (e), (h) or (k), or (b) who is an official to whom confidential information has been provided for a particular purpose pursuant to paragraph 84(6)(d), (f) or (i) and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both. Definitions (3) In subsection (2), “official” and “confidential information” have the same meanings as in subsection 84(1). Droits d’exportation de prod General offence 72. Every person who fails to comply with any provision of this Act or the regulations made under this Act for which no other offence is specified in this Act is guilty of an offence punishable on summary conviction and liable to a fine not exceeding $1,000. Defence of due diligence 73. No person shall be convicted of an offence under section 68 or 72 if the person establishes that they exercised all due diligence to prevent the commission of the offence. Compliance orders 74. If a person is convicted by a court of an offence for a failure to comply with a provision of this Act, the court may make any order that it considers proper in order to enforce compliance with the provision. Officers of corporations, etc. 75. If a person other than an individual commits an offence under this Act, every officer, director or representative of the person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted. Information or complaint 76. (1) An information or complaint under this Act may be laid or made by any employee of the Agency, by a member of the Royal Canadian Mounted Police or by any person authorized to do so by the Minister and, if an information or complaint purports to have been laid or made under this Act, it is deemed to have been laid or made by a person so authorized by the Minister and shall not be called in question for lack of authority of the informant or complainant, except by the Minister or a person acting for the Minister or for Her Majesty in right of Canada. Two or more offences (2) An information or complaint in respect of an offence under this Act may be for one or more offences, and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences. C. 13 Territorial jurisdiction (3) An information or complaint in respect of an offence under this Act may be heard, tried or determined by any court, if the accused is resident, carrying on business, found or apprehended or is in custody within the court’s territorial jurisdiction even if the matter of the information or complaint did not arise within that territorial jurisdiction. Limitation of prosecutions (4) An information or complaint under the provisions of the Criminal Code relating to summary convictions, in respect of an offence under this Act, may be laid or made within two years after the day on which the matter of the information or complaint arose. Softwood Lumber Produc INSPECTIONS By whom 77. (1) A person authorized by the Minister to do so may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records, processes, property or premises of a person in order to determine whether that or any other person is in compliance with this Act. Powers of authorized person (2) For the purposes of an inspection, audit or examination, the authorized person may (a) enter any place in which the authorized person reasonably believes the person keeps records or carries on any activity to which this Act applies; and (b) require any individual to be present during the inspection, audit or examination and require that individual to answer all proper questions and to give to the authorized person all reasonable assistance. Prior authorization (3) If any place referred to in paragraph (2)(a) is a dwelling-house, the authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4). Warrant to enter dwelling-house (4) A judge may issue a warrant authorizing a person to enter a dwelling-house subject to the conditions specified in the warrant if, on ex parte application by the Minister, a judge is satisfied by information on oath that Droits d’exportation de prod (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in paragraph (2)(a); (b) entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act; and (c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused. Orders if entry not authorized (5) If the judge is not satisfied that entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act, the judge may, to the extent that access was or may be expected to be refused and that a record or property is or may be expected to be kept in the dwelling-house, (a) order the occupant of the dwelling-house to provide a person with reasonable access to any record or property that is or should be kept in the dwelling-house; and (b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act. Definition of “dwellinghouse” (6) In this section, “dwelling-house” means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes (a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway; and (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence. Compliance order 78. (1) On application by the Minister, a judge may, despite section 74, order a person to provide any access, assistance, information or record sought by the Minister under section 49 or 77 if the judge is satisfied that (a) the person was required under section 49 or 77 to provide the access, assistance, information or record and did not do so; and C. 13 Softwood Lumber Produc (b) in the case of information or a record, the information or record is not protected from disclosure by solicitor-client privilege. Notice required (2) An application under subsection (1) must not be heard before the end of five clear days after the day on which the notice of application is served on the person against whom the order is sought. Judge may impose conditions (3) The judge making an order under subsection (1) may impose any conditions in respect of the order that the judge considers appropriate. Contempt of court (4) If a person fails or refuses to comply with an order, a judge may find the person in contempt of court and the person is subject to the processes and the punishments of the court to which the judge is appointed. Appeal (5) An order by a judge under subsection (1) may be appealed to a court having appellate jurisdiction over decisions of the court to which the judge is appointed. An appeal does not suspend the execution of the order unless it is so ordered by a judge of the court to which the appeal is made. Copies 79. If any record is seized, inspected, audited, examined or provided under any of sections 49, 77, 78 and 83, the person by whom it is seized, inspected, audited or examined or to whom it is provided or any officer of the Agency may make or cause to be made one or more copies of it and, in the case of an electronic document, make or cause to be made a print-out of the electronic document. Any document purporting to be certified by the Minister or an authorized person to be a copy of the record, or to be a print-out of an electronic document, made under this section is evidence of the nature and content of the original record and has the same probative force as the original record would have if it were proven in the ordinary way. Prohibition 80. (1) No person shall, physically or otherwise, do or attempt to do either of the following: Droits d’exportation de prod (a) interfere with, hinder or molest any person doing anything the person is authorized to do under this Act; or (b) prevent any person from doing anything the person is authorized to do under this Act. Compliance (2) Every person shall, unless the person is unable to do so, do everything the person is required to do by or pursuant to any of sections 49, 77 to 79 and 83. Definition of “foreign-based information or record” 81. (1) For the purposes of this section, “foreign-based information or record” means any information or record that is available or located outside Canada and that may be relevant to the administration or enforcement of this Act, including the collection of any amount payable under this Act by any person. Requirement to provide foreignbased information (2) Despite any other provision of this Act, the Minister may, by notice served personally or sent by registered or certified mail, require a person resident in Canada or a non-resident person who carries on business in Canada to provide any foreign-based information or record. Content of notice (3) A notice referred to in subsection (2) shall set out (a) a reasonable period of not less than 90 days for the provision of the information or record; (b) a description of the information or record being sought; and (c) the consequences under subsection (8) to the person of the failure to provide the information or record being sought within the period set out in the notice. Review by judge (4) The person on whom a notice of a requirement is served or to whom a notice of requirement is sent under subsection (2) may, within 90 days after the service or sending of the notice, apply to a judge for a review of the requirement. C. 13 Powers on review (5) On hearing an application under subsection (4) in respect of a requirement, a judge may Softwood Lumber Produc (a) confirm the requirement; (b) vary the requirement if satisfied that it is appropriate to do so in the circumstances; or (c) set aside the requirement if satisfied that it is unreasonable. Clarification (6) For the purposes of subsection (5), a requirement to provide information or a record shall not be considered to be unreasonable because the information or record is under the control of or available to a non-resident person that is not controlled by the person on whom the notice of the requirement is served or to whom the notice of requirement is sent under subsection (2) if that person is related to the nonresident person. Time during consideration not to count (7) The period between the day on which an application for the review of a requirement is made under subsection (4) and the day on which the review is decided shall not be counted in the computation of (a) the period set out in the notice of the requirement; and (b) the period within which an assessment may be made under section 50 or 51. Consequence of failure (8) If a person fails to comply substantially with a notice served or sent under subsection (2) and if the notice is not set aside under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act shall, on motion of the Minister, prohibit the introduction by that person of any foreign-based information or record covered by that notice. Information respecting nonresident persons 82. Every corporation that, at any time in a taxation year, was resident in Canada or carried on business in Canada shall, in respect of each non-resident person with whom it was not dealing at arm’s length at any time in the year, file with the Minister, within six months after the end of the year, information specified by the Minister for the year in respect of transactions with that person. Droits d’exportation de prod INVESTIGATION Search warrant 83. (1) A judge may, on ex parte application by the Minister, issue a warrant authorizing any person named in the warrant to enter and search any building, receptacle or place for any record or thing that may afford evidence of the commission of an offence under this Act and to seize the record or thing and, as soon as is practicable, bring it before, or make a report in respect of it to, the judge or, where that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section. Evidence on oath (2) An application under subsection (1) shall be supported by information on oath establishing the facts on which the application is based. Issue of warrant (3) A judge may issue a warrant referred to in subsection (1) if the judge is satisfied that there are reasonable grounds to believe that (a) an offence under this Act has been committed; (b) a record or thing that may afford evidence of the commission of the offence is likely to be found; and (c) the building, receptacle or place specified in the application is likely to contain such a record or thing. Contents of warrant (4) A warrant issued under subsection (1) shall refer to the offence for which it is issued, identify the building, receptacle or place to be searched and the person who is alleged to have committed the offence, and it shall be reasonably specific as to any record or thing to be searched for and seized. Seizure of record (5) Any person who executes a warrant issued under subsection (1) may seize, in addition to the record or thing referred to in that subsection, any other record or thing that the person believes on reasonable grounds affords evidence of the commission of an offence under this Act and shall, as soon as is practicable, bring the record or thing before, or make a report in respect of it to, the judge who issued the warrant or, if that judge is unable to C. 13 Softwood Lumber Produc act, another judge of the same court, to be dealt with by the judge in accordance with this section. Retention of things seized (6) Subject to subsection (7), if any record or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of it is made to a judge, the judge shall, unless the Minister waives retention, order that it be retained by the Minister, who shall take reasonable care to ensure that it is preserved until the conclusion of any investigation into the offence in relation to which the record or thing was seized or until it is required to be produced for the purposes of a criminal proceeding. Return of things seized (7) If any record or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of it is made to a judge, the judge may, on the judge’s own motion or on summary application by a person with an interest in the record or thing on three clear days notice of application to the Deputy Attorney General of Canada, order that the record or thing be returned to the person from whom it was seized or the person who is otherwise legally entitled to it, if the judge is satisfied that the record or thing (a) will not be required for an investigation or a criminal proceeding; or (b) was not seized in accordance with the warrant or this section. Access and copies (8) The person from whom any record or thing is seized under this section is entitled, at all reasonable times and subject to any reasonable conditions that may be imposed by the Minister, to inspect the record or thing and, in the case of a record, to obtain one copy of the record at the expense of the Minister. CONFIDENTIALITY OF INFORMATION Definitions “authorized person” « personne autorisée » 84. (1) The following definitions apply in this section. “authorized person” means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of Her Majesty in right of Canada to assist in carrying out the provisions of this Act. 2006 “confidential information” « renseignement confidentiel » “court of appeal” « cour d’appel » “official” « fonctionnaire » Provision of information Droits d’exportation de prod “confidential information” means information of any kind and in any form that relates to one or more persons and that is obtained by or on behalf of the Minister for the purposes of this Act, and any information that is prepared from such information, but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates. “court of appeal” has the same meaning as in section 2 of the Criminal Code. “official” means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, Her Majesty in right of Canada or a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. (2) Except as authorized under this section, no official shall knowingly (a) provide, or allow to be provided, to any person any confidential information; (b) allow any person to have access to any confidential information; or (c) use any confidential information other than in the course of the administration or enforcement of this Act. Provision of information in legal proceedings (3) Despite any other Act of Parliament or other law, no official shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information. Communications where proceedings have been commenced (4) Subsections (2) and (3) do not apply in respect of (a) criminal proceedings that have been commenced by the laying of an information or the preferring of an indictment under an Act of Parliament; (b) any legal proceedings relating to the administration or enforcement of this Act, the Customs Act, the Export and Import Permits Act or any other Act of Parliament or law of a province that provides for the C. 13 Softwood Lumber Produc imposition or collection of a tax or duty, before a court of record, including a court of record in a jurisdiction outside Canada; or (c) any legal proceedings under an international agreement relating to trade before (i) a court of record, including a court of record in a jurisdiction outside Canada, (ii) an international organization, or (iii) a dispute settlement panel or an appellate body created under an international agreement relating to trade. Circumstances involving danger Disclosure of confidential information (5) The Minister may provide to appropriate persons any confidential information relating to imminent danger of death or physical injury to any individual. (6) An official may (a) provide to a person any confidential information that may reasonably be regarded as necessary for the purpose of the administration or enforcement of this Act, solely for that purpose; (b) provide to a person confidential information that can reasonably be regarded as necessary for the purposes of determining any liability or obligation of the person or any refund to which the person is or may become entitled under this Act; (c) provide, allow to be provided, or allow inspection of or access to any confidential information to or by (i) any person, or any person within a class of persons, that the Minister may authorize, subject to any conditions that the Minister may specify, or (ii) any person otherwise legally entitled to the information by reason of an Act of Parliament, solely for the purposes for which that person is entitled to the information; (d) provide confidential information Droits d’exportation de prod (i) to an official of the Department of Finance solely for the purposes of the administration of a federal-provincial agreement made under the FederalProvincial Fiscal Arrangements Act, (ii) to an official solely for the purpose of the formulation, evaluation or implementation of a fiscal or trade policy or for the purposes of the administration or enforcement of the Customs Act, the Export and Import Permits Act, any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty or an international agreement relating to trade, (iii) to an official solely for the purposes of the negotiation or implementation of an international agreement relating to trade, (iv) to an official of the government of a province solely for the purposes of the formulation or evaluation of a fiscal or trade policy or any other policy relating to softwood lumber products, (v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis, (vi) to an official solely for the purposes of setting off, against any sum of money that may be payable by Her Majesty in right of Canada, a debt due to (A) Her Majesty in right of Canada, or (B) Her Majesty in right of a province on account of taxes payable to the province where an agreement exists between Canada and the province under which Canada is authorized to collect taxes on behalf of the province, or (vii) to an official solely for the purposes of section 7.1 of the Federal-Provincial Fiscal Arrangements Act; C. 13 Softwood Lumber Produc (e) provide confidential information to an official or any person employed by or representing the government of a foreign state, an international organization established by the governments of states, a community of states, or an institution of any such government or organization, in accordance with an international convention, agreement or other written arrangement relating to trade between the Government of Canada or an institution of the Government of Canada and the government of the foreign state, the organization, the community or the institution, solely for the purposes set out in that arrangement; (f) provide confidential information solely for the purposes of sections 23 to 25 of the Financial Administration Act; (g) use confidential information to compile information in a form that does not directly or indirectly reveal the identity of the person to whom the information relates; (h) use, or provide to any person, confidential information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by Her Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of Her Majesty in right of Canada to assist in the administration or enforcement of this Act, to the extent that the information is relevant for that purpose; (i) provide access to records of confidential information to the Librarian and Archivist of Canada or a person acting on behalf of or under the direction of the Librarian and Archivist, solely for the purposes of section 12 of the Library and Archives of Canada Act, and transfer such records to the care and control of such persons solely for the purposes of section 13 of that Act; (j) use confidential information relating to a person to provide information to that person; and (k) provide confidential information to a police officer, within the meaning assigned by subsection 462.48(17) of the Criminal Droits d’exportation de prod Code, solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if (i) that information can reasonably be regarded as being relevant for the purpose of ascertaining the circumstances in which an offence under the Criminal Code may have been committed, or the identity of the person or persons who may have committed an offence, with respect to an official, or with respect to any person related to that official, (ii) the official was or is engaged in the administration or enforcement of this Act, and (iii) the offence can reasonably be considered to be related to that administration or enforcement. Measures to prevent unauthorized use or disclosure (7) The person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may order any measures that are necessary to ensure that confidential information is not used or provided to any person for any purpose not relating to that proceeding, including (a) holding a hearing in camera; (b) banning the publication of the information; (c) concealing the identity of the person to whom the information relates; and (d) sealing the records of the proceeding. Disclosure to person or on consent (8) An official may provide confidential information relating to a person (a) to that person; and C. 13 Softwood Lumber Produc (b) with the consent of that person, to any other person. Appeal from order or direction (9) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed without delay by the Minister or by the person against whom the order or direction is made to (a) the court of appeal of the province in which the order or direction is made, in the case of an order or direction made by a court or other tribunal established under the laws of the province, whether that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or (b) the Federal Court of Appeal, in the case of an order or direction made by a court or other tribunal established under the laws of Canada. Disposition of appeal (10) The court to which an appeal is taken under subsection (9) may allow the appeal and quash the order or direction appealed from or may dismiss the appeal, and the rules of practice and procedure from time to time governing appeals to the courts shall apply, with any modifications that the circumstances require, in respect of an appeal instituted under subsection (9). Stay (11) An appeal instituted under subsection (9) shall stay the operation of the order or direction appealed from until judgment is pronounced. COLLECTION Definitions “action” « action » “charge debt” « dette fiscale » 85. (1) The following definitions apply in this section. “action” means an action to collect a charge debt of a person and includes a proceeding in a court and anything done by the Minister under any of sections 88 to 93. “charge debt” means any amount payable by a person under this Act. Droits d’exportation de prod 2006 “legal representative” « représentant légal » “legal representative” of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other similar person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate. Debts to Her Majesty (2) A charge debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act. Court proceedings (3) The Minister may not commence a proceeding in a court to collect a charge debt of a person in respect of an amount that may be assessed under this Act, unless when the proceeding is commenced the person has been or may be assessed for that amount. No actions after limitation period (4) The Minister may not commence an action to collect a charge debt after the end of the limitation period for the collection of the charge debt. Limitation period (5) The limitation period for the collection of a charge debt of a person (a) begins (i) if a notice of assessment in respect of the charge debt is mailed to the person, or a notice referred to in subsection 94(1) in respect of the charge debt is mailed to or served on the person, on the last day on which one of those notices is mailed or served, and (ii) if no notice referred to in subparagraph (i) in respect of the charge debt was mailed or served, on the day on which the Minister can commence an action to collect that charge debt; and (b) ends, subject to subsection (9), on the day that is 10 years after the day on which it begins. C. 13 Limitation period restarted (6) The limitation period described in subsection (5) for the collection of a charge debt of a person restarts — and ends, subject to subsection (9), on the day that is 10 years after the day on which it restarts — on any day, before it would otherwise end, on which Softwood Lumber Produc (a) the person acknowledges the charge debt in accordance with subsection (7); (b) the Minister commences an action to collect the charge debt; or (c) the Minister, under subsection 89(7) or 95(4), assesses another person in respect of the charge debt. Acknowledgement of charge debts (7) A person acknowledges a charge debt if the person (a) promises, in writing, to pay the charge debt; (b) makes a written acknowledgement of the charge debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or (c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the charge debt. Agent or legal representative (8) For the purposes of this section, an acknowledgement made by a person’s agent or mandatary or legal representative has the same effect as if it were made by the person. Extension of limitation period (9) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case: (a) the Minister has accepted and holds security in lieu of payment of the charge debt; (b) if the person was resident in Canada on the applicable date described in paragraph (5)(a) in respect of the charge debt, the person is non-resident; or (c) an action that the Minister may otherwise take in respect of the charge debt is restricted or not permitted under any provision of the Droits d’exportation de prod Bankruptcy and Insolvency Act, of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act. Assessment before collection (10) The Minister may not take any collection action under sections 88 to 93 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 34 or penalty under section 64 or 65, unless the amount has been assessed. Interest on judgments (11) If a judgment is obtained for any amount payable under this Act, including a certificate registered under section 88, the provisions of this Act by which interest is payable for a failure to pay an amount apply, with any modifications that the circumstances require, to the failure to pay the judgment debt, and the interest is recoverable in the same manner as the judgment debt. Litigation costs (12) If an amount is payable by a person to Her Majesty in right of Canada because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, sections 88 to 94 apply to the amount as if it were payable under this Act. Collection restrictions 86. (1) If a person is liable for the payment of an amount under this Act, the Minister shall not, for the purpose of collecting the amount, take any of the following actions until the end of 90 days after the date of a notice of assessment issued under this Act in respect of the amount: (a) commence legal proceedings in a court; (b) certify the amount under section 88; (c) require a person to make a payment under subsection 89(1); or (d) require an institution or a person to make a payment under subsection 89(2). C. 13 No action after service of notice of objection (2) If a person has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in subsection (1) until the end of 90 days after the date of the notice to the person that the Minister has confirmed or varied the assessment. No action after appealing to Tax Court of Canada (3) If a person has appealed to the Tax Court of Canada from an assessment of an amount payable under this Act, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in subsection (1) before the day on which a copy of the decision of the Court is mailed to the person or the day on which the person discontinues the appeal, whichever is the earlier. No action pending determination by court (4) If a person has agreed under subsection 62(1) that a question should be determined by the Tax Court of Canada, or if a person is served with a copy of an application made under subsection 63(1) to that Court for the determination of a question, the Minister shall not take any of the actions described in subsection (1) for the purpose of collecting that part of an amount assessed, the liability for payment of which will be affected by the determination of the question, before the day on which the question is determined by the Court. Action after judgment (5) Despite any other provision of this section, if a person has served a notice of objection under this Act to an assessment or has appealed to the Tax Court of Canada from an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be, until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of the person, the Minister may take any of the actions described in subsection (1) for the purpose of collecting the amount assessed, or a part of it, determined in a manner consistent with the judgment of the Court in the other action at any Softwood Lumber Produc Droits d’exportation de prod time after the Minister notifies the person in writing that the judgment has been given by the Court in the other action. Authorization to proceed without delay 87. (1) Despite section 86, if, on ex parte application by the Minister, a judge is satisfied that there are reasonable grounds to believe that the collection of all or any part of an amount assessed in respect of a person would be jeopardized by a delay in the collection of the amount, the judge shall, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to take without delay any of the actions described in subsection 86(1) with respect to the amount. Notice of assessment not sent (2) An authorization under subsection (1) in respect of an amount assessed may be granted by a judge even if a notice of assessment in respect of that amount has not been sent to the person at or before the time the application is made if the judge is satisfied that the receipt of the notice of assessment by the person would likely further jeopardize the collection of the amount, and for the purposes of sections 85, 88 to 90, 92 and 93, the amount in respect of which an authorization is so granted is deemed to be an amount payable under this Act. Affidavits (3) Statements contained in an affidavit of a person filed in the context of an application under this section may be based on the belief of the person. Service of authorization and of notice of assessment (4) An authorization granted under this section in respect of a person shall be served by the Minister on the person within 72 hours after it is granted unless the judge orders the authorization to be served at some other time specified in the authorization. If a notice of assessment has not been sent to the person at or before the time of the application, the notice of assessment shall be served together with the authorization. How service effected (5) For the purposes of subsection (4), service on a person shall be effected by (a) personal service on the person; or (b) service in accordance with the directions, if any, of a judge. C. 13 Application to judge for direction (6) If service on a person cannot reasonably be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction. Review of authorization (7) If a judge of a court has granted an authorization under this section in respect of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization. Limitation period for review application (8) An application under subsection (7) shall be made Softwood Lumber Produc (a) within 30 days after the authorization was served on the person in accordance with this section; or (b) within any further time that a judge may allow, on being satisfied that the application was made as soon as practicable. Hearing in camera (9) An application under subsection (7) may, on the application of the person, be heard in camera, if the person establishes to the satisfaction of the judge that the circumstances of the case justify in camera proceedings. Disposition of application (10) On an application under subsection (7), the judge shall determine the question summarily and may confirm, set aside or vary the authorization and make any other order that the judge considers appropriate. Directions (11) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no direction in this section with respect to it, a judge may give any direction that the judge considers appropriate. No appeal from review order (12) No appeal lies from an order of a judge made under subsection (10). Certificates 88. (1) Any amount payable by a person (in this section referred to as the “debtor”) under this Act that has not been paid as and when required under this Act may be certified by the Minister as an amount payable by the debtor. Registration in court (2) On production to the Federal Court, a certificate in respect of a debtor shall be registered in the Court and when so registered Droits d’exportation de prod has the same effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest on the amount as provided under this Act to the day of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the Court against the debtor for a debt due to Her Majesty in right of Canada and enforceable as such. Costs (3) All reasonable costs and charges paid or incurred for the registration in the Federal Court of a certificate or in respect of any proceedings taken to collect the amount certified are recoverable in the same manner as if they had been included in the amount certified in the certificate when it was registered. Charge on property (4) A document issued by the Federal Court evidencing a registered certificate in respect of a debtor, a writ of that Court issued pursuant to the certificate or any notification of the document or writ (which document, writ or notification is in this section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in such property, held by the debtor, in the same manner as a document evidencing (a) a judgment of the superior court of the province against a person for a debt owing by the person, or (b) an amount payable or required to be remitted by a person in the province in respect of a debt owing to Her Majesty in right of the province may be filed, registered or otherwise recorded in accordance with the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest. Creation of charge (5) If a memorial has been filed, registered or otherwise recorded under subsection (4), C. 13 Softwood Lumber Produc (a) a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in such property, held by the debtor, or (b) such property or interest in the property is otherwise bound, in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), and the charge, lien, priority or binding interest created is subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the time the memorial was filed, registered or otherwise recorded. Proceedings in respect of memorial (6) If a memorial is filed, registered or otherwise recorded in a province under subsection (4), proceedings may be taken in the province in respect of the memorial, including proceedings (a) to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of (i) the filing, registration or other recording of the memorial, and (ii) proceedings taken to collect the amount, (b) to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial, (c) to cancel or withdraw the memorial wholly or in respect of any of the property or interests affected by the memorial, or (d) to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property or interest affected by the memorial, in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an Droits d’exportation de prod amount referred to in paragraph (4)(b), except that, if in any such proceeding or as a condition precedent to any such proceeding, any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or by a judge or official of the court, a similar order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of the court. Presentation of documents (7) If (a) a memorial is presented for filing, registration or other recording under subsection (4), or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding described in subsection (6), to any official of a property registry system of a province, or (b) access is sought to any person, place or thing in a province to make the filing, registration or other recording, the memorial or document shall be accepted for filing, registration or other recording or the access shall be granted, as the case may be, in the same manner and to the same extent as if the memorial or document relating to the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b) for the purpose of a similar proceeding, except that, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required. Sale, etc. (8) Despite any other law of Canada or law of a province, a sheriff or other person shall not, without the written consent of the Minister, sell or otherwise dispose of any property or publish C. 13 Softwood Lumber Produc any notice or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection (1), interest on the amount or costs, but if that consent is subsequently given, any property that would have been affected by such a process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, shall be bound, seized, attached, charged or otherwise affected as it would be if that consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be. Completion of notices, etc. (9) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out without the written consent of the Minister, the sheriff or other person shall complete the minute, notice or document to the extent possible without that information and, when that consent of the Minister is given, a further minute, notice or document setting out all the information shall be completed for the same purpose, and the sheriff or other person, having complied with this subsection, is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document. Application for an order (10) A sheriff or other person who is unable, because of subsection (8) or (9), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest. Deemed security (11) If a charge, lien, priority or binding interest created under subsection (5) by filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act, it is deemed Droits d’exportation de prod (a) to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and (b) to also be a claim referred to in paragraph 86(2)(a) of that Act. Details in certificates and memorials (12) Despite any other law of Canada or law of the legislature of a province, in any certificate in respect of a debtor, any memorial evidencing a certificate or any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the specified rate applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period. Garnishment 89. (1) If the Minister has knowledge or suspects that a person is, or will be within one year, liable to make a payment to another person who is liable to pay an amount under this Act (in this section referred to as a “debtor”), the Minister may, by notice in writing, require the person to pay without delay, if the money is immediately payable, and in any other case, as and when the money becomes payable, the money otherwise payable to the debtor in whole or in part to the Receiver General on account of the debtor’s liability under this Act. Garnishment of loans or advances (2) Without limiting the generality of subsection (1), if the Minister has knowledge or suspects that within 90 days (a) a bank, credit union, trust company or other similar person (in this section referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor who is C. 13 Softwood Lumber Produc indebted to the institution and who has granted security in respect of the indebtedness, or (b) a person, other than an institution, will loan or advance money to, or make a payment on behalf of, a debtor who the Minister knows or suspects (i) is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or (ii) if that person is a corporation, is not dealing at arm’s length with that person, the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General on account of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or paid. Effect of receipt (3) A receipt issued by the Minister for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment. Effect of requirement (4) If the Minister has, under this section, required a person to pay to the Receiver General on account of the liability under this Act of a debtor money otherwise payable by the person to the debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement applies to all such payments to be made by the person to the debtor until the liability under this Act is satisfied, and operates to require payments to the Receiver General out of each such payment of any amount that is stipulated by the Minister in a notice in writing. Failure to comply (5) Every person who fails to comply with a requirement under subsection (1) or (4) is liable to pay to Her Majesty in right of Canada an amount equal to the amount that the person was required under that subsection to pay to the Receiver General. 2006 Other failures to comply Droits d’exportation de prod (6) Every institution or person that fails to comply with a requirement under subsection (2) with respect to money to be loaned, advanced or paid is liable to pay to Her Majesty in right of Canada an amount equal to the lesser of (a) the total of money so loaned, advanced or paid, and (b) the amount that the institution or person was required under that subsection to pay to the Receiver General. Assessment (7) The Minister may assess any person for any amount payable under this section by the person to the Receiver General and, if the Minister sends a notice of assessment, sections 50 to 63 apply with any modifications that the circumstances require. Time limit (8) An assessment of an amount payable under this section by a person to the Receiver General shall not be made more than four years after the notice from the Minister requiring the payment was received by the person. Effect of payment as required (9) If an amount that would otherwise have been advanced, loaned or paid to or on behalf of a debtor is paid by a person to the Receiver General in accordance with a notice from the Minister issued under this section or with an assessment under subsection (7), the person is deemed for all purposes to have advanced, loaned or paid the amount to or on behalf of the debtor. Recovery by deduction or setoff 90. If a person is indebted to Her Majesty in right of Canada under this Act, the Minister may require the retention by way of deduction or setoff of any amount that the Minister may specify out of any amount that may be or become payable to that person by Her Majesty in right of Canada. Acquisition of debtor’s property 91. For the purpose of collecting debts owed by a person to Her Majesty in right of Canada under this Act, the Minister may purchase or otherwise acquire any interest in the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption, C. 13 Softwood Lumber Produc and may dispose of any interest so acquired in any manner that the Minister considers reasonable. Money seized from debtor 92. (1) If the Minister has knowledge or suspects that a person is holding money that was seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to pay any amount under this Act (in this section referred to as the “debtor”) and that is restorable to the debtor, the Minister may in writing require the person to turn over the money otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s liability under this Act. Receipt of Minister (2) A receipt issued by the Minister for money turned over is a good and sufficient discharge of the requirement to restore the money to the debtor to the extent of the amount turned over. Seizure if failure to pay 93. (1) If a person fails to pay an amount as required under this Act, the Minister may in writing give 30 days notice to the person, addressed to their last known address, of the Minister’s intention to direct that the person’s things be seized and disposed of. If the person fails to make the payment before the expiry of the 30 days, the Minister may issue a certificate of the failure and direct that the person’s things be seized. Disposition (2) Things that have been seized under subsection (1) shall be kept for 10 days at the expense and risk of the owner. If the owner does not pay the amount due together with all expenses within the 10 days, the Minister may dispose of the things in a manner that the Minister considers appropriate in the circumstances. Proceeds of disposition (3) Any surplus resulting from a disposition, after deduction of the amount owing and all expenses, shall be paid or returned to the owner of the things seized. Exemptions from seizure (4) Anything of any person in default that would be exempt from seizure under a writ of execution issued by a superior court of the province in which the seizure is made is exempt from seizure under this section. Droits d’exportation de prod Person leaving Canada or defaulting 94. (1) If the Minister suspects that a person has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent by registered or certified mail addressed to their last known address, demand payment of any amount for which the person is liable under this Act or would be so liable if the time for payment had arrived, and the amount shall be paid without delay despite any other provision of this Act. Seizure (2) If a person fails to pay an amount required under subsection (1), the Minister may direct that things of the person be seized, and subsections 93(2) to (4) apply, with any modifications that the circumstances require. Liability of directors 95. (1) If a corporation fails to pay any amount as and when required under this Act, the directors of the corporation at the time it was required to pay the amount are jointly and severally or solidarily liable, together with the corporation, to pay it and any interest that is payable on it under this Act. Limitations (2) A director of a corporation is not liable unless (a) a certificate for the amount of the corporation’s liability has been registered in the Federal Court under section 88 and execution for that amount has been returned unsatisfied in whole or in part; (b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved, and a claim for the amount of the corporation’s liability has been proved within six months after the earlier of the date of commencement of the proceedings and the date of dissolution; or (c) the corporation has made an assignment or a bankruptcy order has been made against it under the Bankruptcy and Insolvency Act, and a claim for the amount of the corporation’s liability has been proved within six months after the date of the assignment or bankruptcy order. C. 13 Diligence (3) A director of a corporation is not liable for a failure under subsection (1) if the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances. Assessment (4) The Minister may assess any person for any amount payable by the person under this section and, if the Minister sends a notice of assessment, sections 50 to 63 apply with any modifications that the circumstances require. Time limit (5) An assessment of any amount payable by a person who is a director of a corporation shall not be made more than two years after the person ceased to be a director of the corporation. Amount recoverable (6) If execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution. Preference (7) If a director of a corporation pays an amount in respect of the corporation’s liability that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference to which Her Majesty in right of Canada would have been entitled had the amount not been so paid, and if a certificate that relates to the amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director’s payment, which assignment the Minister is empowered to make. Contribution (8) A director who satisfies a claim under this section is entitled to contribution from the other directors who were liable for the claim. Tax liability re transfers not at arm’s length 96. (1) Where at any time a person has transferred property, either directly or indirectly, by means of a trust or by any other means, to Softwood Lumber Produc (a) the transferor’s spouse or common-law partner (in this section having the same meaning as in subsection 248(1) of the Income Tax Act) or an individual who has since become the transferor’s spouse or common-law partner, Droits d’exportation de prod (b) an individual who was under eighteen years of age, or (c) another person with whom the transferor was not dealing at arm’s length, the transferee and transferor are jointly and severally or solidarily liable to pay under this Act an amount equal to the lesser of (d) the amount determined by the formula A-B where A is the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property, and B is the amount, if any, by which the amount assessed the transferee under subsection 160(2) of the Income Tax Act in respect of the property exceeds the amount paid by the transferor in respect of the amount so assessed, and (e) the total of all amounts each of which is (i) an amount that the transferor is liable to pay under this Act for the reporting period of the transferor that includes that time or any preceding reporting period of the transferor, or (ii) interest or penalty for which the transferor is liable as of that time. However, nothing in this subsection limits the liability of the transferor under any other provision of this Act. Fair market value of undivided interest or right (2) For the purpose of this section, the fair market value at any time of an undivided interest in, or for civil law an undivided right in, a property, expressed as a proportionate interest or right in that property, is, subject to subsection (5), deemed to be equal to the same proportion of the fair market value of that property at that time. C. 13 Assessment (3) The Minister may at any time assess a transferee in respect of any amount payable by reason of this section, and sections 50 to 63 apply, with any modifications that the circumstances require. Rules applicable (4) If a transferor and transferee have, by reason of subsection (1), become jointly and severally or solidarily liable in respect of part or all of the liability of the transferor under this Act, the following rules apply: Softwood Lumber Produc (a) a payment by the transferee on account of the transferee’s liability shall, to the extent of the payment, discharge the joint liability; and (b) a payment by the transferor on account of the transferor’s liability only discharges the transferee’s liability to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee was, by subsection (1), made jointly and severally or solidarily liable. Transfers to spouse or common-law partner (5) Despite subsection (1), if at any time an individual transfers property to the individual’s spouse or common-law partner under a decree, order or judgment of a competent tribunal or under a written separation agreement and, at that time, the individual and the individual’s spouse or common-law partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership (as defined in subsection 248(1) of the Income Tax Act), for the purposes of paragraph (1)(d), the fair market value at that time of the property so transferred is deemed to be nil. However, nothing in this subsection limits the liability of the individual under any other provision of this Act. Definition of “property” (6) In this section, “property” includes money. EVIDENCE AND PROCEDURE Sending by mail 97. (1) For the purposes of this Act and subject to subsection (2), anything sent by registered, certified or first class mail is deemed to have been received by the person to whom it was sent on the day it was mailed. Droits d’exportation de prod Payment (2) A person who is required under this Act to pay an amount is deemed not to have paid it until it is received by the Receiver General. Proof of sending by mail 98. (1) If, under this Act, provision is made for sending by mail a request for information, a notice or a demand, an affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the request, notice or demand if the affidavit sets out that (a) the employee has knowledge of the facts in the particular case; (b) such a request, notice or demand was sent by registered or certified mail on a specified day to a specified person and address; and (c) the employee identifies as exhibits attached to the affidavit the post office certificate of registration of the letter or a true copy of the relevant portion of the certificate and a true copy of the request, notice or demand. Proof of personal service (2) If, under this Act, provision is made for personal service of a request for information, a notice or a demand, an affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the personal service and of the request, notice or demand if the affidavit sets out that (a) the employee has knowledge of the facts in the particular case; (b) such a request, notice or demand was served personally on a specified day on the person to whom it was directed; and (c) the employee identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand. Proof of failure to comply (3) If, under this Act, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to C. 13 Softwood Lumber Produc take affidavits, setting out that the employee has charge of the appropriate records and that, after a careful examination and search of the records, the employee has been unable to find in a given case that the return, application, statement, answer or certificate has been made by that person, is evidence that in that case the person did not make the return, application, statement, answer or certificate. Proof of time of compliance (4) If, under this Act, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the employee has charge of the appropriate records and that, after a careful examination of the records, the employee has found that the return, application, statement, answer or certificate was filed or made on a particular day, is evidence that it was filed or made on that day. Proof of documents (5) An affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the employee has charge of the appropriate records and that a document attached to the affidavit is a document or true copy of a document made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person, is evidence of the nature and contents of the document. Proof of no appeal (6) An affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the employee has charge of the appropriate records and has knowledge of the practice of the Agency and that an examination of the records shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this Act and that, after a careful examination and search of the records, the employee has been unable to find that a notice of objection or of appeal from the assessment was received within the time allowed for an objection or appeal to be filed under this Act, is evidence of the statements contained in the affidavit. Droits d’exportation de prod Presumption (7) If evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an employee of the Agency, it is not necessary to prove the signature of the person or that the person is such an employee, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn. Proof of documents (8) Every document purporting to have been executed under or in the course of the administration or enforcement of this Act over the name in writing of the Minister, the Commissioner or an employee authorized to exercise the powers or perform the duties of the Minister under this Act is deemed to be a document signed, made and issued by the Minister, the Commissioner or the employee, unless it has been called into question by the Minister or a person acting for the Minister or for Her Majesty in right of Canada. Mailing date (9) If a notice or demand that the Minister is required or authorized under this Act to send by mail to a person is mailed to the person, the day of mailing is deemed to be the date of the notice or demand. Date when assessment made (10) If a notice of assessment has been sent by the Minister as required under this Act, the assessment is deemed to have been made on the day of mailing of the notice of assessment. Proof of return (11) In a prosecution for an offence under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed or delivered by or on behalf of the person charged with the offence or to have been made or signed by or on behalf of that person, is evidence that the return, application, certificate, statement or answer was filed or delivered by or on behalf of that person or was made or signed by or on behalf of that person. Proof of return — printouts (12) For the purposes of this Act, a document presented by the Minister purporting to be a printout of the information in respect of a person shall be received as evidence and, in the absence of evidence to the contrary, is proof of the return filed by the person. C. 13 Proof of return — production of returns, etc. (13) In a proceeding under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed, delivered, made or signed by or on behalf of a person, is evidence that the return, application, certificate, statement or answer was filed, delivered, made or signed by or on behalf of that person. Evidence (14) In a prosecution for an offence under this Act, an affidavit of an employee of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the employee has charge of the appropriate records and that an examination of the records shows that an amount required under this Act to be paid to the Receiver General has not been received by the Receiver General, is evidence of the statements contained in the affidavit. Probative force of copy (15) Any copy of an original record made under section 79 that is purported to be certified by the Minister or an employee to be a copy of the original record is evidence of the nature and content of the original record, and has the same probative force as the original record would have if it were proven in the ordinary way. Softwood Lumber Produc PAYMENTS TO PROVINCES Distribution of revenue 99. (1) The Minister shall distribute, among the provinces from which the softwood lumber products originate, the revenue derived by Her Majesty in right of Canada from the charge imposed on those products under section 10 or 15, less any refunds and less the following costs incurred by Her Majesty in right of Canada, as determined by the Minister, (a) costs incurred in the administration of this Act and the softwood lumber agreement, as defined in subsection 2(1) of the Export and Import Permits Act; and (b) costs incurred in relation to any litigation, including damages, in respect of this Act or that agreement. Amount of payments (2) The amount to be paid to a province shall be paid out of the Consolidated Revenue Fund. Droits d’exportation de prod REGULATIONS Regulations — general 100. (1) The Governor in Council may make regulations (a) respecting the duration, amendment, suspension, renewal, cancellation or reinstatement of a certification under section 25; (b) prescribing any matter or thing that by this Act is to be or may be prescribed; and (c) generally to carry out the purposes and provisions of this Act. Regulations — section 99 (2) The Governor in Council may, on the recommendation of the Minister for International Trade, make regulations establishing conditions to which payments under section 99 are subject and respecting the amount that shall be paid to a province under that section. Effect 101. A regulation made under this Act has effect from the day it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise and (a) has a relieving effect only; (b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act; (c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette; or (d) gives effect to a budgetary or other public announcement, in which case the regulation shall not, unless paragraph (a), (b) or (c) applies, have effect before the day on which the announcement was made. EXPIRY Regulation 102. The Governor in Council may, by regulation, declare that any of sections 10 to 15 cease to be in force on a day or days fixed in the regulation. C. 13 Softwood Lumber Produc PAYMENT TO ACCOUNTS Payment 103. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister for International Trade, be paid and applied a sum or sums for payment to any account as determined by that Minister in order to meet Canada’s financial obligations under the softwood lumber agreement, as defined in subsection 2(1) of the Export and Import Permits Act. TRANSITIONAL PROVISIONS Transitional period 104. (1) If a person registered under section 23 exported a softwood lumber product from a region during the period beginning on October 12, 2006 and ending on the day before the day on which subsection 12(3) comes into force and the registered person would require an export allocation under paragraph 6.3(3)(b) of the Export and Import Permits Act in order to export the same product from that region on that day, the Minister shall refund the registered person the amount, if any, by which the amount that the registered person paid under section 10 in respect of the export of the product exceeds the amount that the registered person would have been required to pay in respect of the export of that product under that section if subsection 12(3) applied to that export. Exception (2) If the total exports of softwood lumber products from a region, during any month of the period referred to in subsection (1), exceeds the sum of export allocations that would have been issued for that region for that month if section 6.3 of the Export and Import Permits Act, as enacted by section 111 of this Act, were in force during that month, the amount of the refund under subsection (1) in respect of the export of a softwood lumber product from that region during that month is nil. Month 105. (1) For the purpose of applying section 14 to the month of October 2006, references to a month in subsections 14(1) Droits d’exportation de prod and (2) are deemed to be references to the period beginning on October 12, 2006 and ending on October 31, 2006. Monthly trigger volume for October 2006 (2) The monthly trigger volume applicable to a region for the month of October 2006 is the amount determined by the formula A x (B/100) x 1.1 x (20/31) where A is the value of A determined under subsection 14(3) or (4), as applicable; and B is the value of B determined under subsection 14(3) or (4), as applicable. Value of C for November 2006 (3) For the purpose of calculating the value of C as determined under subsection 14(3) or (4) for the month of November 2006 in respect of a region, (a) the reference to “exports from the region of softwood lumber products during the previous month” is deemed to be a reference to exports from the region of softwood lumber products during the period beginning on October 12, 2006 and ending on October 31, 2006; and (b) the reference to “the trigger volume for the region for the previous month” is deemed to be a reference to the volume calculated under subsection (2). Section 64 106. For the purposes of section 64, a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007. Retroactive regulations 107. Despite section 101, every first regulation made under subsection 17(1) or (2) or 22(2) or section 100 may, if the regulation so provides, have effect earlier than the day on which it is made but no earlier than October 12, 2006. Retroactive regulations — Export and Import Permits Act 108. Every first regulation made under section 3, 6 or 12 of the Export and Import Permits Act or under paragraph 6.3(3)(a) of that Act, as enacted by section 111 of this Act, and arising out of the implementation of the C. 13 Softwood Lumber Produc softwood lumber agreement, as defined in subsection 2(1) of that Act, may, if the regulation so provides, have effect earlier than the day on which it is made but no earlier than October 12, 2006. R.S., c. E-19 AMENDMENTS TO THE EXPORT AND IMPORT PERMITS ACT 109. Subsection 2(1) of the Export and Import Permits Act is amended by adding the following in alphabetical order: “data” « données » “export allocation” « autorisation d’exportation » “record” « registre » “softwood lumber agreement” « accord sur le bois d’oeuvre » “data” means representations, in any form, of information or concepts; “export allocation” means an allocation issued under paragraph 6.3(3)(b); “record” means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device; “softwood lumber agreement” means the Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America signed on September 12, 2006 and amended on October 12, 2006, and includes any rectifications made to it before its ratification by Canada; 1999, c. 31, s. 88 110. Section 3 of the Act is renumbered as subsection 3(1) and is amended by adding the following: Conditions (2) The description of goods set out in the Export Control List may contain conditions that are based on approvals, classifications or determinations made by specified persons or specified government entities, including foreign government entities. 111. The Act is amended by adding the following after section 6.2: Droits d’exportation de prod SOFTWOOD LUMBER PRODUCTS EXPORT ACCESS Definitions 6.3 (1) The following definitions apply in this section and section 6.4. “BC Coast” « côte de la ColombieBritannique » “BC Coast” means the Coast forest region established by the Forest Regions and Districts Regulation of British Columbia, as it existed on July 1, 2006. “BC Interior” « intérieur de la ColombieBritannique » “BC Interior” means the Northern Interior forest region and the Southern Interior forest region established by the Forest Regions and Districts Regulation of British Columbia, as they existed on July 1, 2006. “region” « région » “region” means Ontario, Quebec, Manitoba, Saskatchewan, Alberta, the BC Coast or the BC Interior. Determination of quantities (2) If any softwood lumber products have been included on the Export Control List for the purpose of implementing the softwood lumber agreement, the Minister may determine the quantity of those products that may be exported from a region during a month, or the basis for calculating such quantities, for the purposes of subsection (3) and section 8.4. Allocation method (3) If the Minister has determined a quantity of products under subsection (2), the Minister may (a) by order, establish a method for allocating the quantity to persons registered under section 23 of the Softwood Lumber Products Export Charge Act, 2006 who apply for an allocation; and (b) issue an export allocation for a month to any of those persons subject to the regulations and any terms and conditions that the Minister may specify in the export allocation. Transfer of allocation (4) The Minister may consent to the transfer of an export allocation from one registered person to another registered person. C. 13 Export from a region 6.4 An exported softwood lumber product is deemed to be exported from the region where the product underwent its first primary processing, as defined in section 2 of the Softwood Lumber Products Export Charge Act, 2006. If, however, the exported product underwent its first primary processing in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories or Nunavut from softwood sawlogs originating in a region, it is deemed to be exported from that region. Softwood Lumber Produc 112. The Act is amended by adding the following after section 8.3: Export permits for softwood lumber products 8.4 Despite subsection 7(1), if softwood lumber products have been included on the Export Control List for the purpose of implementing the softwood lumber agreement, the Minister shall issue a permit to export those products to any person registered under section 23 of the Softwood Lumber Products Export Charge Act, 2006 who applies for the permit, subject only to (a) any export allocation issued to that person under paragraph 6.3(3)(b); and (b) the person’s compliance with any regulations made under section 12. Retroactive permits 8.5 An import permit or export permit issued under this Act may, if the permit so provides, have effect from a day earlier than the day on which it is issued. 1994, c. 47, s. 111 113. Subsection 10(1) of the Act is replaced by the following: Alteration of permits, etc. 10. (1) Subject to subsection (3), the Minister may amend, suspend, cancel or reinstate any permit, import allocation, export allocation, certificate or other authorization issued or granted under this Act. 114. The Act is amended by adding the following after section 10: Inspectors 10.1 The Minister may designate as an inspector any person who, in the Minister’s opinion, is qualified to be so designated. Droits d’exportation de prod Inspection 10.2 (1) An inspector may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records of any person who has applied for a permit, an import allocation, an export allocation, a certificate or another authorization under this Act in order to determine whether that or any other person is in compliance with this Act. Powers of inspector (2) For the purposes of an inspection, audit or examination, an inspector may (a) enter any place in which the inspector reasonably believes the person keeps records or carries on any activity to which this Act applies; and (b) require any individual to be present during the inspection, audit or examination and require that individual to answer all proper questions and to give to the inspector all reasonable assistance. Prior authorization (3) If any place referred to in paragraph (2)(a) is a dwelling-house, an inspector may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4). Warrant to enter dwelling-house (4) A judge may issue a warrant authorizing an inspector to enter a dwelling-house subject to the conditions specified in the warrant if, on ex parte application by the inspector, a judge is satisfied by information on oath that (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in paragraph (2)(a); (b) entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act; and (c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused. Orders if entry not authorized (5) If the judge is not satisfied that entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act, the judge may, to the extent that access C. 13 Softwood Lumber Produc was or may be expected to be refused and that a record is or may be expected to be kept in the dwelling-house, (a) order the occupant of the dwelling-house to provide the inspector with reasonable access to any record that is or should be kept in the dwelling-house; and (b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act. Copies of records (6) When an inspector inspects, audits, examines or is provided a record under this section, the inspector may make, or cause to be made, one or more copies of the record. Keeping records 10.3 (1) Every person who applies for a permit, import allocation, export allocation, certificate or other authorization under this Act shall keep all records that are necessary to determine whether they have complied with this Act. Minister may specify information (2) The Minister may specify in writing the form that a record is to take and any information that the record must contain. Language and location of record (3) Unless otherwise authorized by the Minister, a record shall be kept in Canada in English or French. Electronic records (4) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record. Inadequate records (5) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify, and the person shall keep the records specified by the Minister. General period for retention (6) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed by regulation. Demand by Minister (7) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or sent by mail, require any Droits d’exportation de prod person required under this Act to keep records to retain those records for any period that is specified in the demand, and the person shall comply with the demand. Permission for earlier disposal (8) A person who is required under this Act to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister. 1994, c. 47, s. 112(1) 115. Paragraphs 12(a) to (b) of the Act are replaced by the following: (a) prescribing the information, certificates issued by a third party attesting to a softwood sawlog’s origin and undertakings to be furnished by applicants for permits, import allocations, export allocations, certificates or other authorizations under this Act, the procedure to be followed in applying for and issuing or granting permits, import allocations, export allocations, certificates or other authorizations, the duration of them, and the terms and conditions, including those with reference to shipping or other documents, on which permits, import allocations, export allocations, certificates or other authorizations may be issued or granted under this Act; (a.1) respecting the considerations that the Minister must take into account when deciding whether to issue an import allocation or export allocation or consent to its transfer; (b) respecting information to be supplied by persons to whom permits, import allocations, export allocations, certificates or other authorizations have been issued or granted under this Act and any other matter associated with their use; (b.1) respecting information to be supplied to specified persons or specified government entities, including foreign government entities, by persons who export goods expressly excluded from the Export Control List; C. 13 Softwood Lumber Produc 116. The Act is amended by adding the following after section 14: Exception 14.1 A person does not contravene section 13 or 14 if, at the time of exportation or importation, the person would have exported or imported the goods under the authority of and in accordance with an export permit or an import permit issued under this Act had they applied for it, and if, after the exportation or importation, the permit is issued. 1994, c. 47, ss. 113 and 114 117. Sections 16.1 and 17 of the Act are replaced by the following: Transfers or unauthorized use 16.1 No person who has been issued an import allocation or an export allocation shall, without the consent of the Minister, transfer it or allow it to be used by another person. False or misleading information, and misrepresentation 17. No person shall wilfully furnish any false or misleading information or knowingly make any misrepresentation in any application for a permit, import allocation, export allocation, certificate or other authorization under this Act or for the purpose of procuring its issue or grant or in connection with any subsequent use of the permit, import allocation, export allocation, certificate or other authorization or the exportation, importation or disposition of goods to which it relates. CONSEQUENTIAL AMENDMENTS R.S., c. A-1 ACCESS TO INFORMATION ACT R.S., c. 12 (3rd Supp.), s. 25 118. Schedule II to the Access to Information Act is amended by striking out the reference to: Softwood Lumber Products Export Charge Act Loi sur le droit à l’exportation de produits de bois d’oeuvre and the corresponding reference to “section 20”. Droits d’exportation de prod 119. Schedule II to the Act is amended by adding, in alphabetical order, a reference to: Softwood Lumber Products Export Charge Act, 2006 Loi de 2006 sur les droits d’exportation de produits de bois d’oeuvre and a corresponding reference in respect of that Act to “section 84”. 1999, c. 17; 2005, c. 38, s. 35 2005, c. 38, s. 36(3)(E) CANADA REVENUE AGENCY ACT 120. Paragraph (a) of the definition “program legislation” in section 2 of the Canada Revenue Agency Act is replaced by the following: (a) that the Governor in Council or Parliament authorizes the Minister, the Agency, the Commissioner or an employee of the Agency to administer or enforce, including the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Income Tax Act and the Softwood Lumber Products Export Charge Act, 2006; or R.S., c. T-2 TAX COURT OF CANADA ACT 2002, c. 9, s. 10(2) 121. (1) Subsection 12(1) of the Tax Court of Canada Act is replaced by the following: Jurisdiction 12. (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Employment Insurance Act, the Excise Act, 2001, Part IX of the Excise Tax Act, the Income Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act and the Softwood Lumber Products Export Charge Act, 2006 when references or appeals to the Court are provided for in those Acts. C. 13 2002, c. 9, s. 10(3) (2) Subsections 12(3) and (4) of the Act are replaced by the following: Further jurisdiction (3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 51 or 52 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 or 205 of the Excise Act, 2001, section 310 or 311 of the Excise Tax Act, section 173 or 174 of the Income Tax Act or section 62 or 63 of the Softwood Lumber Products Export Charge Act, 2006. Extensions of time (4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 97.52 or 97.53 of the Customs Act, subsection 103(1) of the Employment Insurance Act, section 197 or 199 of the Excise Act, 2001, section 304 or 305 of the Excise Tax Act, section 166.2 or 167 of the Income Tax Act or section 56 or 58 of the Softwood Lumber Products Export Charge Act, 2006. Softwood Lumber Produc 122. Paragraph 18.29(3)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (vi), by replacing the word “and” at the end of subparagraph (vii) with the word “or” and by adding the following after subparagraph (vii): (viii) section 56 or 58 of the Softwood Lumber Products Export Charge Act, 2006; and 2002, c. 9, s. 10(5) 123. Subsection 18.31(2) of the Act is replaced by the following: Determination of a question (2) If it is agreed under section 51 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 of the Excise Act, 2001, section 310 of the Excise Tax Act or Droits d’exportation de prod section 62 of the Softwood Lumber Products Export Charge Act, 2006 that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question. 2002, c. 9, s. 10(6) 124. Subsection 18.32(2) of the Act is replaced by the following: Provisions applicable to determination of a question (2) If an application has been made under section 52 of the Air Travellers Security Charge Act, section 205 of the Excise Act, 2001, section 311 of the Excise Tax Act or section 63 of the Softwood Lumber Products Export Charge Act, 2006 for the determination of a question, the application or determination of the question shall, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require. COORDINATING AMENDMENT 2004, c. 15 125. On the later of the day on which section 117 of this Act comes into force and the day on which section 62 of the Public Safety Act, 2002, being chapter 15 of the Statutes of Canada, 2004, comes into force — or, if those days are the same day, then on that day — section 17 of the Export and Import Permits Act is replaced by the following: False or misleading information, and misrepresentation 17. No person shall wilfully furnish any false or misleading information or knowingly make any misrepresentation in any application for a permit, import allocation, export allocation, certificate or other authorization under this Act or for the purpose of procuring its issue or grant or in connection with any subsequent use of the permit, import allocation, export allocation, certificate or other authorization or the exportation, importation, transfer or disposition of goods or technology to which it relates. C. 13 Softwood Lumber Produc COMING INTO FORCE Coming into force 126. (1) The provisions of this Act, other than subsection 12(3) and sections 64, 67 to 76 and 125, come into force or are deemed to have come into force on October 12, 2006. Subsection 12(3) (2) Subsection 12(3) comes into force on a day to be fixed by order of the Governor in Council. Section 64 (3) Section 64 comes into force or is deemed to have come into force on April 1, 2007. Droits d’exportation de produits d SCHEDULE (Section 16) EXEMPT PERSONS 1. Armand Duhamel & Fils inc. 2. Bardeaux & Cèdres St-Honoré inc. 3. Beaubois Coaticook inc. 4. Busque & Laflamme inc. 5. Carrier & Bégin inc. 6. Clermond Hamel ltée 7. J.D. Irving Ltd. 8. Les Produits Forestiers D.G. ltée 9. Marcel Lauzon inc. 10. Mobilier Rustique (Beauce) inc. 11. Paul Vallée inc. 12. René Bernard inc. 13. Roland Boulanger & Cie ltée 14. Scierie Alexandre Lemay & Fils inc. 15. Scierie La Patrie inc. 16. Scierie Tech inc. 17. Wilfrid Paquet & Fils ltée 18. Sault Forest Products Ltd. 19. Boccam inc. 20. Indian River Lumber 21. Interbois inc. 22. Jacomau inc. 23. Richard Lutes Cedar Inc. 24. Séchoirs de Beauce inc. 25. Scierie West Brome inc. 26. Matériaux Blanchet inc. (Saint-Pamphile) 27. Daaquam Lumber Inc. 28. Bois Oméga ltée 29. Fontaine inc. (J.A. Fontaine & Fils inc.) 30. Industries Maibec inc. C. 13 Softwood Lumber Products Exp 31. Les Produits Forestiers Dubé inc. 32. 9157-9516 Québec inc. (Scierie Nord-Sud inc.) Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 9 An Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability ASSENTED TO 12th DECEMBER, 2006 BILL C-2 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability”. SUMMARY Part 1 enacts the Conflict of Interest Act and makes consequential amendments in furtherance of that Act. That Act sets out substantive prohibitions governing public office holders. Compliance with the Act is a deemed term and condition of a public office holder’s appointment or employment. The Act also sets out a detailed regime of compliance measures to ensure conformity with the substantive prohibitions, certain of which apply to all public office holders and others of which apply to reporting public office holders. The Act also provides for a regime of detailed post-employment rules. Finally, the Act establishes a complaints regime, sets out the powers of investigation of the Commissioner and provides for public reporting as well as a regime of administrative monetary penalties. Amongst other matters, the consequential amendments to the Parliament of Canada Act provide for the appointment and office of the Conflict of Interest and Ethics Commissioner along with his or her tenure, expenses, duties and other administrative matters. Part 1 also amends the Canada Elections Act to (a) reduce to $1,000 the amount that an individual may contribute annually to a registered party, and create a distinct $1,000 annual limit on contributions to the registered associations, the nomination contestants and the candidates of a registered party; (b) reduce to $1,000 the amount that an individual may contribute to an independent candidate or to a leadership contestant; (c) reduce to $1,000 the amount that a nomination contestant, a candidate or a leadership contestant may contribute to his or her own campaign in addition to the $1,000 limit on individual contributions; (d) totally ban contributions by corporations, trade unions and associations by repealing the exception that allows them to make an annual contribution of $1,000 to the registered associations, the candidates and the nomination contestants of a registered party and a contribution of $1,000 to an independent candidate during an election period; (e) ban cash donations of more than $20, and reduce to $20 the amount that may be contributed before a receipt must be issued or, in the case of anonymous contributions following a general solicitation at a meeting, before certain record-keeping requirements must be met; and Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca (f) increase to 5 years after the day on which the Commissioner of Canada Elections became aware of the facts giving rise to a prosecution, and to 10 years following the commission of an offence, the period within which a prosecution may be instituted. Other amendments to the Canada Elections Act prohibit candidates from accepting gifts that could reasonably be seen to have been given to influence the candidate in the performance of his or her duties and functions as a member, if elected. The wilful contravention of this prohibition is considered to be a corrupt practice. A new disclosure requirement is introduced to require candidates to report to the Chief Electoral Officer any gifts received with a total value exceeding $500. Exceptions are provided for gifts received from relatives, as well as gifts of courtesy or of protocol. The amendments also prohibit registered parties and registered associations from transferring money to candidates directly from a trust fund. The amendments to the Lobbyists Registration Act rename the Act and provide for the appointment by the Governor in Council of a Commissioner of Lobbying after approval by resolution of both Houses of Parliament. They broaden the scope for investigations by the Commissioner, extend to 10 years the period in respect of which contraventions may be investigated and prosecuted, and increase the penalties for an offence under the Act. In addition, they empower the Commissioner to prohibit someone who has committed an offence from lobbying for a period of up to two years, prohibit the acceptance and payment of contingency fees and prohibit certain public office holders from lobbying for a period of five years after leaving office. They require lobbyists to report their lobbying activities involving certain public office holders and permit the Commissioner to request those office holders to confirm or correct the information reported by lobbyists. Amendments to the Parliament of Canada Act prohibit members of the House of Commons from accepting benefits or income from certain trusts and require them to disclose all trusts to the Conflict of Interest and Ethics Commissioner. The amendments also authorize the Conflict of Interest and Ethics Commissioner to issue orders requiring members to terminate most trusts and prohibiting them from using the proceeds from their termination for political purposes. In cases where the trusts are not required to be terminated, the amendments authorize the Conflict of Interest and Ethics Commissioner to make orders prohibiting members from using the trusts for political purposes. An offence is created for members who do not comply with such orders. The amendments also provide that, in the event of a prosecution, a committee of the House of Commons may issue an opinion that is to be provided to the judge before whom the proceedings are held. Finally, Part 1 amends the Public Service Employment Act to remove the right of employees in ministers’ offices to be appointed without competition to positions in the public service for which the Public Service Commission considers them qualified. Part 2 harmonizes the appointment and removal provisions relating to certain officers. Amendments to the Parliament of Canada Act establish within the Library of Parliament a position to be known as the Parliamentary Budget Officer, whose mandate is to provide objective analysis to the Senate and House of Commons about the estimates of the government, the state of the nation’s finances and trends in the national economy, to undertake research into those things when requested to do so by certain Parliamentary committees, and to provide estimates of the costs of proposals contained in Bills introduced by members of Parliament other than in their capacity as ministers of the Crown. The amendments also provide the Parliamentary Budget Officer with a right of access to data that are necessary for the performance of his or her mandate. Part 3 enacts the Director of Public Prosecutions Act which provides for the appointment of the Director of Public Prosecutions and one or more Deputy Directors. That Act gives the Director the authority to initiate and conduct criminal prosecutions on behalf of the Crown that are under the jurisdiction of the Attorney General of Canada. That Act also provides that the Director has the power to make binding and final decisions as to whether to prosecute, unless the Attorney General of Canada directs otherwise, and that such directives must be in writing and published in the Canada Gazette. The Director holds office for a non-renewable term of seven years during good behaviour and is the Deputy Attorney General of Canada for the purposes of carrying out the work of the office. The Director is given responsibility, in place of the Commissioner of Canada Elections, for prosecutions of offences under the Canada Elections Act. Part 3 also amends the Access to Information Act to ensure that all parent Crown corporations, and their wholly-owned subsidiaries, within the meaning of section 83 of the Financial Administration Act are encompassed by the definition “government institution” in section 3 of the Access to Information Act and to add five officers, five foundations and the Canadian Wheat Board to Schedule I of that Act. It adjusts some of the exemption provisions accordingly and includes new exemptions or exclusions relating to the added officers and the Crown corporations. It empowers the Governor in Council to prescribe criteria for adding a body or an office to Schedule I and requires Ministers to publish annual reports of all expenses incurred by their offices and paid out of the Consolidated Revenue Fund. It adds any of those same officers and foundations that are not already included in the schedule to the Privacy Act to that schedule, ensures that all of those parent Crown corporations and subsidiaries are encompassed by the definition “government institution” in section 3 of that Act, and makes other consequential amendments to that Act. It amends the Export Development Act to include a provision for the confidentiality of information. It revises certain procedures relating to the processing of requests and handling of complaints and allows for increases to the number of investigators the Information Commissioner may designate to examine records related to defence and national security. Amendments to the Library and Archives of Canada Act provide for an obligation to send final reports on government public opinion research to the Library and Archives of Canada. Finally, Part 3 amends the Public Servants Disclosure Protection Act to (a) establish the Public Servants Disclosure Protection Tribunal and empower it to make remedial orders in favour of victims of reprisal and to order disciplinary action against the person or persons who took the reprisal; (b) provide for the protection of all Canadians, not only public servants, who report government wrongdoings to the Public Sector Integrity Commissioner; (c) remove the Governor in Council’s ability to delete the name of Crown corporations and other public bodies from the schedule to the Act; (d) require the prompt public reporting by chief executives and the Public Sector Integrity Commissioner of cases of wrongdoing; and (e) permit the Public Sector Integrity Commissioner to provide access to legal advice relating to the Act. Part 4 amends the Financial Administration Act to create a new schedule that identifies and designates certain officials as accounting officers and, within the framework of their appropriate minister’s responsibilities and accountability to Parliament, sets out the matters for which they are accountable before the appropriate committees of Parliament. A regime for the resolution of issues related to the interpretation or application of a policy, directive or standard issued by the Treasury Board is established along with a requirement that the Treasury Board provide a copy of its decision to the Auditor General of Canada. Part 4 also amends the Financial Administration Act and the Criminal Code to create indictable offences for fraud with respect to public money or money of a Crown corporation, and makes persons convicted of those offences ineligible to be employed by the Crown or the corporation or to otherwise contract with the Crown. Other amendments to the Financial Administration Act clarify the authority of the Treasury Board to act on behalf of the Queen’s Privy Council for Canada on matters related to internal audit in the federal public administration. They also set out the deputy head’s responsibility for ensuring that there is an internal audit capacity appropriate to the needs of the department and requires them, subject to directives of the Treasury Board, to establish an audit committee. The Financial Administration Act, the Farm Credit Canada Act and the Public Sector Pension Investment Board Act are amended to require Crown corporations to establish audit committees composed of members who are not officers or employees of the corporation. Other amendments to the Financial Administration Act require, subject to directions of the Treasury Board, that all grant and contribution programs be reviewed at least every five years to ensure their relevance and effectiveness. Amendments made to the Financial Administration Act and to the constituent legislation of a number of Crown corporations provide for appointments of directors for up to four years from a current maximum of three years. Part 4 also amends the Canadian Dairy Commission Act, the Enterprise Cape Breton Corporation Act and the National Capital Act to require different individuals to perform the duties of chair of the Board of Directors and chief executive officer of the corporation. Part 5 amends the Auditor General Act by expanding the class of recipients of grants, contributions and loans into which the Auditor General of Canada may inquire as to the use of funds, whether received from Her Majesty in right of Canada or a Crown corporation. Other amendments provide certain immunities to the Auditor General. Amendments to the Department of Public Works and Government Services Act provide for the appointment and mandate of a Procurement Auditor. Part 5 also amends the Financial Administration Act to provide for a government commitment to fairness, openness and transparency in government contract bidding, and a regulation-making power to deem certain clauses to be set out in government contracts in relation to prohibiting the payment of contingency fees and respecting corruption and collusion in the bidding process for procurement contracts, declarations by bidders in respect of specific criminal offences, and the provision of information to the Auditor General of Canada by recipients under funding agreements. TABLE OF PROVISIONS AN ACT PROVIDING FOR CONFLICT OF INTEREST RULES, RESTRICTIONS ON ELECTION FINANCING AND MEASURES RESPECTING ADMINISTRATIVE TRANSPARENCY, OVERSIGHT AND ACCOUNTABILITY SHORT TITLE 1. Federal Accountability Act PART 1 CONFLICTS OF INTEREST, ELECTION FINANCING, LOBBYING AND MINISTERS’ STAFF CONFLICT OF INTEREST ACT Enactment of Act 2. Enactment of Act AN ACT TO ESTABLISH CONFLICT OF INTEREST AND POSTEMPLOYMENT RULES FOR PUBLIC OFFICE HOLDERS SHORT TITLE 1. Conflict of Interest Act INTERPRETATION 2. Definitions 3. Purpose of the Act PURPOSE PART 1 CONFLICT OF INTEREST RULES 4. Conflict of interest 5. General duty 6. Decision-making 7. Preferential treatment 8. Insider information 9. Influence 10. Offers of outside employment 11. Gifts and other advantages i 12. Travel 13. Contracts with public sector entities 14. Contracting 15. Prohibited activities 16. Fundraising 17. Divestiture of controlled assets 18. Anti-avoidance 19. Condition of appointment or employment PART 2 COMPLIANCE MEASURES INTERPRETATION 20. Definitions RECUSAL 21. Duty to recuse CONFIDENTIAL DISCLOSURE 22. Confidential report 23. Disclosure of gifts 24. Disclosure of offers PUBLIC DECLARATION 25. Public declaration — recusal 26. Summary statement DIVESTMENT 27. Divestment on appointment FUNCTIONS OF THE COMMISSIONER 28. Annual review 29. Determination of appropriate measures 30. Compliance order 31. Reimbursement of costs 32. Post-employment obligations PART 3 POST-EMPLOYMENT RULES FOR ALL FORMER PUBLIC OFFICE HOLDERS 33. Prohibitions after leaving office 34. Previously acting for Crown ii RULES FOR FORMER REPORTING PUBLIC OFFICE HOLDERS 35. Prohibition on contracting 36. Time limits: former reporting public office holder 37. Report to Commissioner 38. Exemption 39. Waiver or reduction of limitations 40. Decision of Commissioner 41. Order: official dealings 42. No impact FUNCTIONS OF THE COMMISSIONER PART 4 ADMINISTRATION AND ENFORCEMENT MANDATE AND POWERS OF THE COMMISSIONER 43. Confidential advice 44. Request from parliamentarian 45. Examination on own initiative 46. Presentation of views 47. Conclusion in report final 48. Powers 49. Suspension of examination 50. No summons PUBLIC REGISTRY 51. Public registry ADMINISTRATIVE MONETARY PENALTIES 52. Violation 53. Notice of violation 54. Regulations 55. Payment of penalty 56. Representations to Commissioner 57. Failure to act 58. Due diligence available 59. Evidence 60. Limitation 61. Recovery of administrative monetary penalties 62. Publication iv PART 5 GENERAL 63. Section 126 of Criminal Code 64. Activities on behalf of constituents 65. Limitation period 66. Orders and decisions final 67. Review Transitional Provisions 3. Positions 3.1 Reference to Act Consequential Amendments 4. Canada Post Corporation Act 5-6. Federal Courts Act 7. Financial Administration Act 8. First Nations Fiscal and Statistical Management Act 9-17. Garnishment, Attachment and Pension Diversion Act 18. Government Employees Compensation Act 19. Non-smokers’ Health Act 20-25. Official Languages Act 26-28. Parliament of Canada Act 29-32. Parliamentary Employment and Staff Relations Act 33. Public Service Superannuation Act 34. Radiocommunication Act Coordinating Amendments 35. Lobbying Act 36. Lobbying Act 37. Public Servants Disclosure Protection Act 38. Federal Courts Act CANADA ELECTIONS ACT Amendments to Act 39-59. Amendments Transitional Provisions 60. Transitional — Registered associations 61. Transitional — Candidates v 62. Transitional — Nomination campaigns Consequential Amendments 63-64. Income Tax Act LOBBYISTS REGISTRATION ACT Amendments to Act 65-81. Amendments Terminology 82. Replacement of references Transitional Provisions 83. Reference to Act 84. Commissioner 85. Pending investigations 86. Transfer of appropriations 87. Contingent payments 88. Former designated public office holders 88.1 Five-year prohibition — lobbying 88.2 Publication Consequential Amendments 89-91. Access to Information Act 92-95. Financial Administration Act 96. Official Languages Act 97-98. Privacy Act PARLIAMENT OF CANADA ACT 99. Amendment PUBLIC SERVICE EMPLOYMENT ACT Amendments to Act 100-106. Amendments Transitional Provision 107. Employees of ministers’ offices COMING INTO FORCE 108. Order in council v PART 2 SUPPORTING PARLIAMENT ACCESS TO INFORMATION ACT 109. Amendments AUDITOR GENERAL ACT 110. Amendments OFFICIAL LANGUAGES ACT 111. Amendments PARLIAMENT OF CANADA ACT Amendments to Act 112-116. Amendments Coordinating Amendments 117. Coordinating Amendments 118. Amendments PRIVACY ACT PUBLIC SERVANTS DISCLOSURE PROTECTION ACT 119. Amendments 120. Transitional — continuation in office TRANSITIONAL PROVISION PART 3 OFFICE OF THE DIRECTOR OF PUBLIC PROSECUTIONS, ADMINISTRATIVE TRANSPARENCY AND DISCLOSURE OF WRONGDOING DIRECTOR OF PUBLIC PROSECUTIONS ACT Enactment of Act 121. Enactment of Act AN ACT RESPECTING THE OFFICE OF THE DIRECTOR OF PUBLIC PROSECUTIONS SHORT TITLE 1. Director of Public Prosecutions Act INTERPRETATION 2. Definitions vi DIRECTOR OF PUBLIC PROSECUTIONS 3. Appointment 4. Selection committee 5. Tenure and term DEPUTY DIRECTORS, PROSECUTORS AND OTHER STAFF 6. Deputy Director 7. Employed federal prosecutors 8. Other staff 9. Delegation DELEGATION DIRECTIVES 10. Directive from Attorney General — specific prosecution 11. Delay in publication — directive 12. Directives not statutory instruments 13. Duty to inform 14. Intervention 15. Taking conduct of prosecution 16. Annual report ISSUES OF GENERAL OR PUBLIC INTEREST ASSUMING CONDUCT OF PROSECUTION ANNUAL REPORT Transitional Provisions 122. Definition of “other Act” 123. Acting Director 124. Transfer of employees 125. Non-employed federal prosecutors 126. Transfer of appropriations 127. Continuation of prosecutions 128. Election-related prosecutions 129. Access to Information Act Consequential Amendments 130-136. 137. Canada Elections Act Department of Justice Act vi 138-139. 140. Financial Administration Act Privacy Act ACCESS TO INFORMATION ACT Amendments to Act 141-172.01 Amendments Consequential Amendment 172.1 Canadian Wheat Board Act CANADA ELECTIONS ACT Amendments to Act 173-177. Amendments Transitional Provisions 178. Incumbent returning officers EXPORT DEVELOPMENT ACT 179. Amendment LIBRARY AND ARCHIVES OF CANADA ACT 179.1-180. Amendments PRIVACY ACT 181-193. Amendments PUBLIC SERVANTS DISCLOSURE PROTECTION ACT Amendments to Act 194-225. Amendments Coordinating Amendment 226. Coordinating Amendment 227. Amendment SALARIES ACT COMING INTO FORCE 228. Order in council ix PART 4 ADMINISTRATIVE OVERSIGHT AND ACCOUNTABILITY BUSINESS DEVELOPMENT BANK OF CANADA ACT 229. Amendment CANADA COUNCIL FOR THE ARTS ACT 230. Amendment CANADA MORTGAGE AND HOUSING CORPORATION ACT 231-233. Amendments CANADA POST CORPORATION ACT 234-236. Amendments CANADA REVENUE AGENCY ACT 237. Amendment CANADIAN COMMERCIAL CORPORATION ACT 238. Amendment CANADIAN DAIRY COMMISSION ACT Amendments to Act 239-241. Amendments Transitional Provision 242. Transitional — Chairman CANADIAN RACE RELATIONS FOUNDATION ACT 243-244. Amendments CANADIAN TOURISM COMMISSION ACT 244.1-244.2 Amendments CAPE BRETON DEVELOPMENT CORPORATION ACT 245. Amendment 246. Amendment CRIMINAL CODE x ENTERPRISE CAPE BRETON CORPORATION ACT Amendments to Act 247-252. Amendments Transitional Provision 253. Transitional — Vice-President EXPORT DEVELOPMENT ACT 254. Amendment FARM CREDIT CANADA ACT 255-256. Amendments FINANCIAL ADMINISTRATION ACT Amendments to Act 257-270. Amendments Coordinating Amendments 271. Commissioner of Lobbying 272. Commissioner of Lobbying 273. Director of Public Prosecutions 274. 2005, c. 46 275. 2005, c. 46 FRESHWATER FISH MARKETING ACT 276-278. Amendments MUSEUMS ACT 279. Amendment NATIONAL ARTS CENTRE ACT 280-282. Amendments NATIONAL CAPITAL ACT 283-289. Amendments PILOTAGE ACT 290-294. Amendments PUBLIC SECTOR PENSION INVESTMENT BOARD ACT 295-297. Amendments x ROYAL CANADIAN MINT ACT 298. Amendment STANDARDS COUNCIL OF CANADA ACT 299. Amendment 300. Order in council COMING INTO FORCE PART 5 PROCUREMENT AND CONTRACTING AUDITOR GENERAL ACT 301-305. Amendments DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT 306-307. Amendments FINANCIAL ADMINISTRATION ACT Amendments to Act 308-312. Amendments Coordinating Amendment 313. Coordinating Amendment 314. Order in council COMING INTO FORCE SCHEDULE 55 ELIZABETH II —————— CHAPTER 9 An Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability [Assented to 12th December, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Federal Accountability Act. PART 1 CONFLICTS OF INTEREST, ELECTION FINANCING, LOBBYING AND MINISTERS’ STAFF CONFLICT OF INTEREST ACT Enactment of Act 2. The Conflict of Interest Act is enacted as follows: An Act to establish conflict of interest and postemployment rules for public office holders SHORT TITLE Short title 1. This Act may be cited as the Conflict of Interest Act. C. 9 Accoun INTERPRETATION Definitions “Commissioner” « commissaire » “common-law partner” « conjoint de fait » “common-law partnership” « union de fait » “dependent child” « enfant à charge » “former reporting public office holder” « ex-titulaire de charge publique principal » “gift or other advantage” « cadeau ou autre avantage » 2. (1) The following definitions apply in this Act. “Commissioner” means the Conflict of Interest and Ethics Commissioner appointed under section 81 of the Parliament of Canada Act. “common-law partner” means a person who is cohabiting with a public office holder in a conjugal relationship, having so cohabited for a period of at least one year. “common-law partnership” means the relationship between two persons who are cohabiting in a conjugal relationship, having so cohabited for a period of at least one year. “dependent child” means a child of a public office holder, or a child of the public office holder’s spouse or common-law partner, who has not reached the age of 18 years or who has reached that age but is primarily dependent on the public office holder or public office holder’s spouse or common-law partner for financial support. “former reporting public office holder” means a former public office holder who, while in office, was a reporting public office holder. “gift or other advantage” means (a) an amount of money if there is no obligation to repay it; and (b) a service or property, or the use of property or money that is provided without charge or at less than its commercial value. “ministerial adviser” « conseiller ministériel » “ministerial adviser” means a person, other than a public servant, who occupies a position in the office of a minister of the Crown or a minister of state and who provides policy, program or financial advice to that person on issues relating to his or her powers, duties and functions as a minister of the Crown or a minister of state, whether or not the advice is provided on a fulltime or part-time basis and whether or not the person is entitled to any remuneration or other compensation for the advice. Respon 2006 “ministerial staff” « personnel ministériel » “ministerial staff” means those persons, other than public servants, who work on behalf of a minister of the Crown or a minister of state. “private interest” « intérêt personnel » “private interest” does not include an interest in a decision or matter (a) that is of general application; (b) that affects a public office holder as one of a broad class of persons; or (c) that concerns the remuneration or benefits received by virtue of being a public office holder. “public office holder” « titulaire de charge publique » “public office holder” means (a) a minister of the Crown, a minister of state or a parliamentary secretary; (b) a member of ministerial staff; (c) a ministerial adviser; (d) a Governor in Council appointee, other than the following persons, namely, (i) a lieutenant governor, (ii) officers and staff of the Senate, House of Commons and Library of Parliament, (iii) a person appointed or employed under the Public Service Employment Act who is a head of mission within the meaning of subsection 13(1) of the Department of Foreign Affairs and International Trade Act, (iv) a judge who receives a salary under the Judges Act, (v) a military judge within the meaning of subsection 2(1) of the National Defence Act, and (vi) an officer of the Royal Canadian Mounted Police, not including the Commissioner; (d.1) a ministerial appointee whose appointment is approved by the Governor in Council; and (e) a full-time ministerial appointee designated by the appropriate minister of the Crown as a public office holder. C. 9 “public sector entity” « entité du secteur public » “public sector entity” means a department or agency of the Government of Canada, a Crown corporation established by or under an Act of Parliament or any other entity to which the Governor in Council may appoint a person, but does not include the Senate or the House of Commons. “public servant” « fonctionnaire » “public servant” has the meaning assigned by subsection 2(1) of the Public Servants Disclosure Protection Act, but includes officers and non-commissioned members of the Canadian Forces and employees of the Canadian Security Intelligence Service or the Communications Security Establishment. “reporting public office holder” « titulaire de charge publique principal » “reporting public office holder” means a public office holder who is Accoun (a) a minister of the Crown, minister of state or parliamentary secretary; (b) a member of ministerial staff who works on average 15 hours or more a week; (c) a ministerial adviser; (d) a Governor in Council appointee, or a ministerial appointee whose appointment is approved by the Governor in Council, who exercises his or her official duties and functions on a part-time basis but receives an annual salary and benefits; (e) a Governor in Council appointee, or a ministerial appointee whose appointment is approved by the Governor in Council, who exercises his or her official duties and functions on a full-time basis; or (f) a full-time ministerial appointee designated by the appropriate minister of the Crown as a reporting public office holder. “spouse” « époux » Family members “spouse” does not include a person from whom a public office holder is separated if all support obligations and family property or patrimony have been dealt with by a separation agreement or a court order. (2) The following are the members of a public office holder’s family for the purposes of this Act: (a) his or her spouse or common-law partner; and Respon (b) his or her dependent children and the dependent children of his or her spouse or common-law partner. Relatives (3) Persons who are related to a public office holder by birth, marriage, common-law partnership, adoption or affinity are the public office holder’s relatives for the purposes of this Act unless the Commissioner determines, either generally or in relation to a particular public office holder, that it is not necessary for the purposes of this Act that a person or a class of persons be considered a relative of a public office holder. PURPOSE Purpose of the Act 3. The purpose of this Act is to (a) establish clear conflict of interest and post-employment rules for public office holders; (b) minimize the possibility of conflicts arising between the private interests and public duties of public office holders and provide for the resolution of those conflicts in the public interest should they arise; (c) provide the Conflict of Interest and Ethics Commissioner with the mandate to determine the measures necessary to avoid conflicts of interest and to determine whether a contravention of this Act has occurred; (d) encourage experienced and competent persons to seek and accept public office; and (e) facilitate interchange between the private and public sector. PART 1 CONFLICT OF INTEREST RULES Conflict of interest 4. For the purposes of this Act, a public office holder is in a conflict of interest when he or she exercises an official power, duty or function that provides an opportunity to further C. 9 Accoun his or her private interests or those of his or her relatives or friends or to improperly further another person’s private interests. General duty 5. Every public office holder shall arrange his or her private affairs in a manner that will prevent the public office holder from being in a conflict of interest. Decision-making 6. (1) No public office holder shall make a decision or participate in making a decision related to the exercise of an official power, duty or function if the public office holder knows or reasonably should know that, in the making of the decision, he or she would be in a conflict of interest. Abstention from voting (2) No minister of the Crown, minister of state or parliamentary secretary shall, in his or her capacity as a member of the Senate or the House of Commons, debate or vote on a question that would place him or her in a conflict of interest. Preferential treatment 7. No public office holder shall, in the exercise of an official power, duty or function, give preferential treatment to any person or organization based on the identity of the person or organization that represents the first-mentioned person or organization. Insider information 8. No public office holder shall use information that is obtained in his or her position as a public office holder and that is not available to the public to further or seek to further the public office holder’s private interests or those of the public office holder’s relatives or friends or to improperly further or to seek to improperly further another person’s private interests. Influence 9. No public office holder shall use his or her position as a public office holder to seek to influence a decision of another person so as to further the public office holder’s private interests or those of the public office holder’s relatives or friends or to improperly further another person’s private interests. Offers of outside employment 10. No public office holder shall allow himself or herself to be influenced in the exercise of an official power, duty or function by plans for, or offers of, outside employment. Respon Gifts and other advantages 11. (1) No public office holder or member of his or her family shall accept any gift or other advantage, including from a trust, that might reasonably be seen to have been given to influence the public office holder in the exercise of an official power, duty or function. Exception (2) Despite subsection (1), a public office holder or member of his or her family may accept a gift or other advantage (a) that is permitted under the Canada Elections Act; (b) that is given by a relative or friend; or (c) that is received as a normal expression of courtesy or protocol, or is within the customary standards that normally accompany the public office holder’s position. Forfeiture (3) When a public office holder or a member of his or her family accepts a gift or other advantage referred to in paragraph (2)(c) that has a value of $1,000 or more, the gift or other advantage is, unless otherwise determined by the Commissioner, forfeited to Her Majesty in right of Canada. Travel 12. No minister of the Crown, minister of state or parliamentary secretary, no member of his or her family and no ministerial adviser or ministerial staff shall accept travel on noncommercial chartered or private aircraft for any purpose unless required in his or her capacity as a public office holder or in exceptional circumstances or with the prior approval of the Commissioner. Contracts with public sector entities 13. (1) No minister of the Crown, minister of state or parliamentary secretary shall knowingly be a party to a contract with a public sector entity under which he or she receives a benefit, other than a contract under which he or she is entitled to pension benefits. Partnerships and private companies (2) No minister of the Crown, minister of state or parliamentary secretary shall have an interest in a partnership or private corporation that is a party to a contract with a public sector entity under which the partnership or corporation receives a benefit. C. 9 Exception (3) Subsections (1) and (2) do not apply if the Commissioner is of the opinion that the contract or interest is unlikely to affect the exercise of the official powers, duties and functions of the minister of the Crown, minister of state or parliamentary secretary. Contracting 14. (1) No public office holder who otherwise has the authority shall, in the exercise of his or her official powers, duties and functions, enter into a contract or employment relationship with his or her spouse, common-law partner, child, sibling or parent. Public sector entity — public office holders (2) No public office holder, other than a minister of the Crown, minister of state or parliamentary secretary, who otherwise has the authority shall permit the public sector entity for which he or she is responsible, or to which he or she is assigned, to enter into a contract or employment relationship with his or her spouse, common-law partner, child, sibling or parent except in accordance with an impartial administrative process in which the public office holder plays no part. Public sector entity — ministers (3) No minister of the Crown, minister of state or parliamentary secretary who otherwise has the authority shall permit the public sector entity for which he or she is responsible, or to which he or she is assigned, to enter into a contract or employment relationship with his or her spouse, common-law partner, child, sibling or parent. Other ministers or party colleagues (4) No minister of the Crown, minister of state or parliamentary secretary who otherwise has the authority shall permit anyone acting on his or her behalf to enter into a contract or employment relationship with a spouse, common-law partner, child, sibling or parent of another minister of the Crown, minister of state or parliamentary secretary or party colleague in Parliament, except in accordance with an impartial administrative process in which the minister of the Crown, minister of state or parliamentary secretary plays no part. Restriction (5) Subsection (4) does not apply in respect of the appointment of a member of ministerial staff or a ministerial adviser. Accoun Respon 2006 Certain contracts excluded (6) This section does not apply to a contract for goods or services offered by a public sector entity on the same terms and conditions as to the general public. Prohibited activities 15. (1) No reporting public office holder shall, except as required in the exercise of his or her official powers, duties and functions, (a) engage in employment or the practice of a profession; (b) manage or operate a business or commercial activity; (c) continue as, or become, a director or officer in a corporation or an organization; (d) hold office in a union or professional association; (e) serve as a paid consultant; or (f) be an active partner in a partnership. Exception (2) Despite paragraph (1)(c), a reporting public office holder who is a director or officer in a Crown corporation as defined in section 83 of the Financial Administration Act may continue as, or become, a director or officer in a financial or commercial corporation but only if the Commissioner is of the opinion that it is not incompatible with his or her public duties as a public office holder. Exception (3) Despite paragraph (1)(c), a reporting public office holder may continue as, or become, a director or officer in an organization of a philanthropic, charitable or non-commercial character but only if the Commissioner is of the opinion that it is not incompatible with his or her public duties as a public office holder. Political activities (4) Nothing in this section prohibits or restricts the political activities of a reporting public office holder. Fundraising 16. No public office holder shall personally solicit funds from any person or organization if it would place the public office holder in a conflict of interest. C. 9 Divestiture of controlled assets 17. No reporting public office holder shall, unless otherwise provided in Part 2, hold controlled assets as defined in that Part. Anti-avoidance 18. No public office holder shall take any action that has as its purpose the circumvention of the public office holder’s obligations under this Act. Condition of appointment or employment 19. Compliance with this Act is a condition of a person’s appointment or employment as a public office holder. Accoun PART 2 COMPLIANCE MEASURES INTERPRETATION Definitions “assets” « bien » “controlled assets” « bien contrôlé » 20. The following definitions apply in this Part. “assets” includes any trusts in respect of which a public office holder or a member of his or her family is a beneficiary. “controlled assets” means assets whose value could be directly or indirectly affected by government decisions or policy including, but not limited to, the following: (a) publicly traded securities of corporations and foreign governments, whether held individually or in an investment portfolio account such as, but not limited to, stocks, bonds, stock market indices, trust units, closed-end mutual funds, commercial papers and medium-term notes; (b) self-administered registered retirement savings plans, self-administered registered education savings plans and registered retirement income funds composed of at least one asset that would be considered controlled if held outside the plan or fund; (c) commodities, futures and foreign currencies held or traded for speculative purposes; and (d) stock options, warrants, rights and similar instruments. Respon 2006 “exempt assets” « bien exclu » “exempt assets” means assets and interests in assets for the private use of public office holders and the members of their family and assets that are not of a commercial character, including the following: (a) primary and secondary residences, recreational property and farm land and buildings used or intended for use by public office holders or the members of their family; (b) household goods and personal effects; (c) works of art, antiques and collectibles; (d) automobiles and other personal means of transportation; (e) cash and deposits; (f) Canada Savings Bonds and other similar investments issued or guaranteed by any level of government in Canada or agencies of those governments; (g) registered retirement savings plans and registered education savings plans that are not self-administered or self-directed; (h) investments in open-ended mutual funds; (i) guaranteed investment certificates and similar financial instruments; (j) public sector debt financing not guaranteed by a level of government, such as university and hospital debt financing; (k) annuities and life insurance policies; (l) pension rights; (m) money owed by a previous employer, client or partner; (n) personal loans receivable from the public office holder’s relatives, and personal loans of less than $10,000 receivable from other persons if the public office holder has loaned the moneys receivable; (o) money owed under a mortgage or hypothec of less than $10,000; (p) self-administered or self-directed registered retirement savings plans, registered education savings plans and registered retire12 C. 9 Accoun ment income funds composed exclusively of assets that would be considered exempt if held outside the plan or fund; and (q) investments in limited partnerships that are not traded publicly and whose assets are exempt assets. RECUSAL Duty to recuse 21. A public office holder shall recuse himself or herself from any discussion, decision, debate or vote on any matter in respect of which he or she would be in a conflict of interest. CONFIDENTIAL DISCLOSURE Confidential report 22. (1) A reporting public office holder shall, within 60 days after the day on which he or she is appointed as a public office holder, provide a confidential report to the Commissioner. Content of report (2) The report required under subsection (1) must contain the following: (a) a description of all of the reporting public office holder’s assets and an estimate of their value; (b) a description of all of the reporting public office holder’s direct and contingent liabilities, including the amount of each liability; (c) a description of all income received by the reporting public office holder during the 12 months before the day of appointment and all income the reporting public office holder is entitled to receive in the 12 months after the day of appointment; (d) a description of all activities referred to in section 15 in which the reporting public office holder was engaged in the two-year period before the day of appointment; (e) a description of the reporting public office holder’s involvement in philanthropic, charitable or non-commercial activities in the two-year period before the day of appointment; Respon (f) a description of all of the reporting public office holder’s activities as trustee, executor or liquidator of a succession or holder of a power of attorney in the two-year period before the day of appointment; and (g) any other information that the Commissioner considers necessary to ensure that the reporting public office holder is in compliance with this Act. Additional content (3) A minister of the Crown, minister of state or parliamentary secretary shall make reasonable efforts to include in the report the information referred to in subsection (2) for each member of his or her family. Benefits from contracts (4) A reporting public office holder shall include in the report a description of all benefits that he or she, any member of his or her family or any partnership or private corporation in which he or she or a member of his or her family has an interest is entitled to receive during the 12 months after the day of appointment, as a result of a contract with a public sector entity and the report must include a description of the subject-matter and nature of the contract. Notification of material change (5) If there is a material change in any matter in respect of which a reporting public office holder is required to provide a confidential report under this section, the reporting public office holder shall, within 30 days after the change, file a report with the Commissioner describing the material change. Disclosure of gifts 23. If the total value of all gifts or other advantages accepted by a reporting public office holder or a member of his or her family exceeds $200 from any one source other than relatives and friends in a 12-month period, the reporting public office holder shall disclose the gifts or other advantages to the Commissioner within 30 days after the day on which the value exceeds $200. Disclosure of offers 24. (1) A reporting public office holder shall disclose in writing to the Commissioner within seven days all firm offers of outside employment. C. 9 Disclosure of acceptance (2) A reporting public office holder who accepts an offer of outside employment shall within seven days disclose his or her acceptance of the offer in writing to the Commissioner as well as to the following persons: Accoun (a) in the case of a minister of the Crown or minister of state, to the Prime Minister; (b) in the case a parliamentary secretary, to the minister whom the parliamentary secretary assists; (c) in the case of deputy heads, to the Clerk of the Privy Council; and (d) in the case of any other reporting public office holder, to the appropriate minister. PUBLIC DECLARATION Public declaration — recusal 25. (1) If a reporting public office holder has recused himself or herself to avoid a conflict of interest, the reporting public office holder shall, within 60 days after the day on which the recusal took place, make a public declaration of the recusal that provides sufficient detail to identify the conflict of interest that was avoided. Public declaration — certain assets (2) A reporting public office holder shall, within 120 days after the day on which he or she is appointed as a public office holder, make a public declaration of all of his or her assets that are neither controlled assets nor exempt assets. Public declaration — liabilities (3) A minister of the Crown, minister of state or parliamentary secretary shall, within 120 days after the day on which he or she is appointed, make a public declaration with respect to all of his or her liabilities of $10,000 or more that provides sufficient detail to identify the source and nature of the liability but not the amount. Public declaration — outside activities (4) If a reporting public office holder holds a position referred to in subsection 15(2) or (3), the reporting public office holder shall, within 120 days after the day on which he or she is appointed, make a public declaration of that fact. Public declaration — gifts (5) If a reporting public office holder or a member of his or her family accepts any single gift or other advantage that has a value of $200 or more, other than one from a relative or friend, Respon the reporting public office holder shall, within 30 days after accepting the gift or other advantage, make a public declaration that provides sufficient detail to identify the gift or other advantage accepted, the donor and the circumstances under which it was accepted. Public declaration — travel (6) If travel has been accepted in accordance with section 12, from any source, the minister of the Crown, minister of state or parliamentary secretary concerned shall, within 30 days after the acceptance, make a public declaration that provides sufficient detail to identify the source and the circumstances under which the travel was accepted. Summary statement 26. (1) A reporting public office holder shall, within 120 days after the day on which he or she is appointed, sign a summary statement containing the information required under subsection (2) and provide it to the Commissioner. Content (2) The summary statement must contain the following: (a) for each controlled asset of the reporting public officer holder, and for each asset of the reporting public office holder that the Commissioner has ordered divested under section 30, a description of the asset and the method used to divest it; (b) for each matter in respect of which the Commissioner has ordered a reporting public office holder to recuse himself or herself under section 30, a description of the matter and information regarding the process to be put in place by the reporting public office holder and others to effect the recusal; and (c) for any other matter in respect of which the Commissioner has issued an order to the reporting public office holder under section 30, a description of the matter and the order, and the steps taken to comply with the order. C. 9 Accoun DIVESTMENT Divestment on appointment 27. (1) Subject to subsections (9) and (10), a reporting public office holder shall, within 120 days after the day on which he or she is appointed as a reporting public office holder, divest each of his or her controlled assets by doing one of the following: (a) selling it in an arm’s-length transaction; or (b) placing it in a blind trust that meets the requirements of subsection (4). Divestment of gift or bequest (2) Subject to subsections (9) and (10), a reporting public office holder shall, within 120 days after the day on which he or she receives controlled assets by way of gift or testamentary disposition or in any other way over which the reporting public office holder has no control, divest the controlled assets in the manner required by subsection (1). Prohibition on blind management agreement (3) For greater certainty, a reporting public office holder may not divest his or her controlled assets by any measure other than one referred to in subsection (1), including by placing them in a blind management agreement. Blind trust requirements (4) The terms of a blind trust must provide that (a) the assets to be placed in trust shall be registered to the trustee unless they are in a registered retirement savings plan account; (b) the reporting public office holder shall not have any power of management or control over the trust assets; (c) the trustee shall not seek or accept any instruction or advice from the reporting public office holder concerning the management or the administration of the assets; (d) the assets placed in the trust shall be listed on a schedule attached to the instrument or contract establishing the trust; (e) the term of any trust shall be for as long as the reporting public office holder who establishes the trust continues to hold his or her office, or until the trust assets have been depleted; Respon (f) the trustee shall deliver the trust assets to the reporting public office holder when the trust is terminated; (g) the trustee shall not provide information about the trust, including its composition, to the reporting public office holder, except for information that is required by law to be filed by the reporting public office holder and periodic reports on the overall value of the trust; (h) the reporting public office holder may receive any income earned by the trust, and add to or withdraw from the capital funds in the trust; (i) the trustee shall be at arm’s length from the reporting public office holder and the Commissioner is to be satisfied that an arm’s length relationship exists; (j) the trustee must be (i) a public trustee, (ii) a public company, including a trust company or investment company, that is known to be qualified to perform the duties of a trustee, or (iii) an individual who may perform trustee duties in the normal course of his or her work; and (k) the trustee shall provide the Commissioner, on every anniversary of the trust, a written annual report verifying as to accuracy the nature and market value of the trust, a reconciliation of the trust property, the net income of the trust for the preceding year, and the fees of the trustee, if any. General investment instructions (5) Despite subsection (4), general investment instructions may be included in a blind trust instrument or contract but only with the prior approval of the Commissioner. The instructions may provide for proportions to be invested in various categories of risk, but may not be industry-specific, except if there are legislative restrictions on the type of assets that a public office holder may own. C. 9 No oral instructions (6) For greater certainty, no oral investment instructions may be given with respect to a blind trust contract or instrument. Confirmation of sale or trust (7) A reporting public office holder shall provide to the Commissioner a confirmation of sale or a copy of any contract or instrument establishing the trust in respect of any controlled asset divested under subsection (1). Information confidential (8) Unless otherwise required by law, the Commissioner shall keep confidential all information provided by a reporting public office holder relating to a divestment under subsection (1), except the fact that a sale has taken place or that a trust exists. Security (9) Subject to the approval of the Commissioner, a reporting public office holder is not required to divest controlled assets that are given as security to a lending institution. Assets of minimal value (10) A reporting public office holder who is not a minister of the Crown, a minister of state or a parliamentary secretary is not required to divest controlled assets if, in the opinion of the Commissioner, the assets are of such minimal value that they do not constitute any risk of conflict of interest in relation to the reporting public office holder’s official duties and responsibilities. Accoun FUNCTIONS OF THE COMMISSIONER Annual review 28. The Commissioner shall review annually with each reporting public office holder the information contained in his or her confidential reports and the measures taken to satisfy his or her obligations under this Act. Determination of appropriate measures 29. Before they are finalized, the Commissioner shall determine the appropriate measures by which a public office holder shall comply with this Act and, in doing so, shall try to achieve agreement with the public office holder. Compliance order 30. In addition to the specific compliance measures provided for in this Part, the Commissioner may order a public office holder, in respect of any matter, to take any compliance Respon measure, including divestment or recusal, that the Commissioner determines is necessary to comply with this Act. Reimbursement of costs 31. (1) The Commissioner may order that the following administrative costs incurred by a public office holder be reimbursed: (a) in relation to a divestment of assets, (i) reasonable legal, accounting and transfer costs to establish and terminate a trust determined to be necessary by the Commissioner, (ii) annual, actual and reasonable costs to maintain and administer the trust, in accordance with rates set from time to time by the Commissioner, (iii) commissions for transferring, converting or selling assets where determined necessary by the Commissioner, (iv) costs of other financial, legal or accounting services required because of the complexity of the arrangements for the assets, and (v) commissions for transferring, converting or selling assets if there are no provisions for a tax deduction under the Income Tax Act; and (b) in relation to a withdrawal from activities, the costs of removing a public office holder’s name from federal or provincial registries of corporations. Restriction (2) The following administrative costs are not eligible to be reimbursed under subsection (1): (a) charges for the day-to-day operations of a business or commercial entity; (b) charges associated with winding down a business; (c) costs for acquiring permitted assets using proceeds from the required sale of other assets; and (d) any income tax adjustment that may result from the reimbursement of trust costs. C. 9 Postemployment obligations 32. Before a public office holder’s last day in office, the Commissioner shall advise the public office holder of his or her obligations under Part 3. Accoun PART 3 POST-EMPLOYMENT RULES FOR ALL FORMER PUBLIC OFFICE HOLDERS Prohibitions after leaving office 33. No former public office holder shall act in such a manner as to take improper advantage of his or her previous public office. Previously acting for Crown 34. (1) No former public office holder shall act for or on behalf of any person or organization in connection with any specific proceeding, transaction, negotiation or case to which the Crown is a party and with respect to which the former public office holder had acted for, or provided advice to, the Crown. Improper information (2) No former public office holder shall give advice to his or her client, business associate or employer using information that was obtained in his or her capacity as a public office holder and is not available to the public. RULES FOR FORMER REPORTING PUBLIC OFFICE HOLDERS Prohibition on contracting 35. (1) No former reporting public office holder shall enter into a contract of service with, accept an appointment to a board of directors of, or accept an offer of employment with, an entity with which he or she had direct and significant official dealings during the period of one year immediately before his or her last day in office. Prohibition on representations (2) No former reporting public office holder shall make representations whether for remuneration or not, for or on behalf of any other person or entity to any department, organization, board, commission or tribunal with which he or she had direct and significant official dealings during the period of one year immediately before his or her last day in office. Prohibition on former ministers (3) No former reporting public office holder who was a minister of the Crown or minister of state shall make representations to a current minister of the Crown or minister of state who Respon was a minister of the Crown or a minister of state at the same time as the former reporting public office holder. Time limits: former reporting public office holder 36. (1) With respect to all former reporting public office holders except former ministers of the Crown and former ministers of state, the prohibitions set out in subsections 35(1) and (2) apply for the period of one year following the former reporting public office holder’s last day in office. Time limits: former ministers (2) With respect to former ministers of the Crown and former ministers of state, the prohibitions set out in subsections 35(1) to (3) apply for a period of two years following their last day in office. Report to Commissioner 37. (1) A former reporting public office holder who, during the applicable period under section 36, has any communication referred to in paragraph 5(1)(a) of the Lobbyists Registration Act or arranges a meeting referred to in paragraph 5(1)(b) of that Act shall report that communication or meeting to the Commissioner. Requirement to file return (2) The former reporting public office holder shall file a return that (a) sets out, with respect to every communication or meeting referred to in subsection (1), (i) the name of the public office holder who was the object of the communication or meeting, (ii) the date of the communication or meeting, (iii) particulars to identify the subjectmatter of the communication or meeting, and (iv) any other information that the Commissioner requires; and (b) if any information contained in the return is no longer correct or additional information that the former reporting public office holder would have been required to provide in the return has come to his or her knowledge after the return was filed, provides the corrected or additional information. C. 9 Exemption 38. (1) The Commissioner may, on application, exempt from the application of section 35 or 37 a former reporting public office holder who, while in office, was a member of ministerial staff who worked on average 15 hours or more a week. Criteria (2) An exemption may only be granted under subsection (1) in respect of a person based on the following criteria: Accoun (a) the person was not a senior member of ministerial staff; (b) the person’s functions did not include the handling of files of a political or sensitive nature, such as confidential cabinet documents; (c) the person had little influence, visibility or decision-making power in the office of a minister of the Crown or a minister of state; and (d) the person’s salary level was not commensurate with the person having an important role in that office. Notice of decision (3) The decision made by the Commissioner shall be communicated in writing to the person who applied for the exemption. Publication (4) If the Commissioner has granted an exemption in accordance with this section, the Commissioner shall publish the decision and the reasons in the public registry maintained under section 51. FUNCTIONS OF THE COMMISSIONER Waiver or reduction of limitations 39. (1) On application by a reporting public office holder or a former reporting public office holder, the Commissioner may waive or reduce any applicable period set out in section 36. Balancing (2) In exercising his or her discretion under subsection (1), the Commissioner shall consider whether the public interest in granting the waiver or reduction outweighs the public interest in maintaining the prohibition. Factors to be considered (3) In determining the public interest for the purposes of subsection (2), the Commissioner shall consider the following factors: Respon (a) the circumstances under which the reporting public office holder left his or her office; (b) the general employment prospects of the reporting public office holder or former reporting public office holder; (c) the nature, and significance to the Government of Canada, of information possessed by the reporting public office holder or former reporting public office holder by virtue of that office holder’s public office; (d) the facilitation of interchange between the private and public sector; (e) the degree to which the new employer might gain unfair commercial advantage by hiring the reporting public office holder or former reporting public office holder; (f) the authority and influence possessed by the reporting public office holder or former reporting public office holder while in public office; and (g) the disposition of other cases. Notice of decision (4) The decision made by the Commissioner shall be communicated in writing to the applicant referred to in subsection (1). Publication (5) If the Commissioner has granted a waiver or reduction in accordance with this section, the Commissioner shall publish the decision and the reasons in the public registry maintained under section 51. Decision of Commissioner 40. On receipt of a report under section 37, the Commissioner shall immediately determine whether the former reporting public office holder is complying with his or her obligations under this Part. Order: official dealings 41. (1) If the Commissioner determines that a former reporting public office holder is not complying with his or her obligations under this Part, the Commissioner may order any current public office holders not to have official dealings with that former reporting public office holder. C. 9 Duty to comply with order (2) All current public officer holders shall comply with an order of the Commissioner made under subsection (1). No impact 42. For greater certainty, no exemption granted in respect of a person under section 38 and no waiver or reduction granted in respect of a person under section 39 affects any obligation or prohibition that applies to that person under the Lobbyists Registration Act. Accoun PART 4 ADMINISTRATION AND ENFORCEMENT MANDATE AND POWERS OF THE COMMISSIONER Confidential advice 43. In addition to carrying out his or her other duties and functions under this Act, the Commissioner shall (a) provide confidential advice to the Prime Minister, including on the request of the Prime Minister, with respect to the application of this Act to individual public office holders; and (b) provide confidential advice to individual public office holders with respect to their obligations under this Act. Request from parliamentarian 44. (1) A member of the Senate or House of Commons who has reasonable grounds to believe that a public office holder or former public office holder has contravened this Act may, in writing, request that the Commissioner examine the matter. Content of request (2) The request shall identify the provisions of this Act alleged to have been contravened and set out the reasonable grounds for the belief that the contravention has occurred. Examination (3) If the Commissioner determines that the request is frivolous or vexatious or is made in bad faith, he or she may decline to examine the matter. Otherwise, he or she shall examine the matter described in the request and, having regard to all the circumstances of the case, may discontinue the examination. Respon Information from public (4) In conducting an examination, the Commissioner may consider information from the public that is brought to his or her attention by a member of the Senate or House of Commons indicating that a public office holder or former public office holder has contravened this Act. The member shall identify the alleged contravention and set out the reasonable grounds for believing a contravention has occurred. Confidentiality (5) If a member of the Senate or House of Commons receives information referred to in subsection (4), the member, while considering whether to bring that information to the attention of the Commissioner, shall not disclose that information to anyone. If the member brings that information to the attention of the Commissioner under that subsection, the member shall not disclose that information to anyone until the Commissioner has issued a report under this section in respect of the information. Referral to Speaker (6) Where the Commissioner is of the opinion that a member of the Senate or House of Commons has failed to comply with the confidentiality provision of subsection (5), the Commissioner may refer the matter, in confidence, to the Speaker of the Senate or House of Commons. Report (7) The Commissioner shall provide the Prime Minister with a report setting out the facts in question as well as the Commissioner’s analysis and conclusions in relation to the request. The report shall be provided even if the Commissioner determines that the request was frivolous or vexatious or was made in bad faith or the examination of the matter was discontinued under subsection (3). Making report available (8) The Commissioner shall, at the same time that the report is provided under subsection (7), provide a copy of it to the member who made the request — and the public office holder or former public office holder who is the subject of the request — and make the report available to the public. Confidentiality (9) The Commissioner may not include in the report any information that he or she is required to keep confidential. C. 9 Examination on own initiative 45. (1) If the Commissioner has reason to believe that a public office holder or former public office holder has contravened this Act, the Commissioner may examine the matter on his or her own initiative. Discontinuance (2) The Commissioner, having regard to all the circumstances of the case, may discontinue the examination. Report (3) Unless the examination is discontinued, the Commissioner shall provide the Prime Minister with a report setting out the facts in question as well as the Commissioner’s analysis and conclusions. Making report available (4) The Commissioner shall, at the same time that the report is provided under subsection (3) to the Prime Minister, provide a copy of it to the public office holder or former public office holder who is the subject of the report and make the report available to the public. Presentation of views 46. Before providing confidential advice under paragraph 43(a) or a report under section 44 or 45, the Commissioner shall provide the public office holder or former public office holder concerned with a reasonable opportunity to present his or her views. Conclusion in report final 47. A conclusion by the Commissioner set out in a report under section 44 or 45 that a public office holder or former public office holder has or has not contravened this Act may not be altered by anyone but is not determinative of the measures to be taken as a result of the report. Powers 48. (1) For the purposes of paragraph 43(a) and sections 44 and 45, the Commissioner has the power to summon witnesses and require them Accoun (a) to give evidence — orally or in writing — on oath or, if they are persons entitled to affirm in civil matters, on affirmation; and (b) to produce any documents and things that the Commissioner considers necessary. Enforcement (2) The Commissioner has the same power to enforce the attendance of witnesses and to compel them to give evidence as a court of record in civil cases. Respon Powers exercised in private (3) The powers referred to in subsections (1) and (2) shall be exercised in private. Inadmissibility (4) Information given by a person under this section is inadmissible against the person in a court or in any proceeding, other than in a prosecution of the person for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made to the Commissioner. Confidentiality (5) Unless otherwise required by law, the Commissioner, and every person acting on behalf or under the direction of the Commissioner, may not disclose any information that comes to their knowledge in the performance of their duties and functions under this section, unless (a) the disclosure is, in the opinion of the Commissioner, essential for the purposes of carrying out his or her powers under subsection (1) or establishing the grounds for any conclusion contained in a report under section 44 or 45; or (b) the information is disclosed in a report referred to in paragraph (a) or in the course of a prosecution for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made to the Commissioner. Suspension of examination 49. (1) The Commissioner shall immediately suspend an examination under section 43, 44 or 45 if (a) the Commissioner believes on reasonable grounds that the public office holder or former public office holder has committed an offence under an Act of Parliament in respect of the same subject-matter, in which case the Commissioner shall notify the relevant authorities; or (b) it is discovered that the subject-matter of the examination is also the subject-matter of an investigation to determine whether an offence referred to in paragraph (a) has been committed or that a charge has been laid in respect of that subject-matter. C. 9 Investigation continued (2) The Commissioner may not continue an examination until any investigation or charge in respect of the same subject-matter has been finally disposed of. No summons 50. (1) The Commissioner, or any person acting on behalf or under the direction of the Commissioner, is not a competent or compellable witness in respect of any matter coming to his or her knowledge as a result of exercising any powers or performing any duties or functions of the Commissioner under this Act. Protection (2) No criminal or civil proceedings lie against the Commissioner, or any person acting on behalf or under the direction of the Commissioner, for anything done, reported or said in good faith in the exercise or purported exercise of any power, or the performance or purported performance of any duty or function, of the Commissioner under this Act. Clarification (3) The protection provided under subsections (1) and (2) does not limit any powers, privileges, rights and immunities that the Commissioner may otherwise enjoy under section 86 of the Parliament of Canada Act. Accoun PUBLIC REGISTRY Public registry 51. (1) The Commissioner shall maintain a registry consisting of the following documents for examination by the public: (a) public declarations made under section 25; (b) summary statements made under section 26; (c) notes of every gift or other advantage forfeited under subsection 11(3); (c.1) decisions on exemption applications under section 38 and the accompanying reasons; (d) decisions on waiver or reduction applications under section 39 and the accompanying reasons; and (e) any other documents that the Commissioner considers appropriate. 2006 Confidences of Queen’s Privy Council Respon (2) If a public office holder has recused himself or herself in respect of a matter and a public declaration is made in respect of that recusal under subsection 25(1) or section 30, (a) no publication of the declaration shall be made if the very fact of the recusal could reveal, directly or indirectly, any of the following: (i) a confidence of the Queen’s Privy Council for Canada in respect of which subsection 39(1) of the Canada Evidence Act applies, and (ii) special operational information within the meaning of subsection 8(1) of the Security of Information Act; and (b) no publication of the declaration shall include any detail that could reveal, directly or indirectly, any of the following: (i) a confidence of the Queen’s Privy Council for Canada in respect of which subsection 39(1) of the Canada Evidence Act applies, (ii) special operational information within the meaning of subsection 8(1) of the Security of Information Act, (iii) information that is subject to solicitorclient privilege, (iv) information that is subject to any restriction on disclosure created by or under any other Act of Parliament, (v) information that could reasonably be expected to cause injury to international relations, national defence or national security, or to the detection, prevention or suppression of criminal, subversive or hostile activities, (vi) information that could reasonably be expected to cause injury to the privacy interests of an individual, or (vii) information that could reasonably be expected to cause injury to commercial interests. C. 9 Accoun ADMINISTRATIVE MONETARY PENALTIES Violation 52. Every public office holder who contravenes one of the following provisions commits a violation and is liable to an administrative monetary penalty not exceeding $500: (a) subsections 22(1), (2) and (5); (b) section 23; (c) subsections 24(1) and (2); (d) subsections 25(1) to (6); (e) subsections 26(1) and (2); and (f) subsection 27(7). Notice of violation Contents of notice 53. (1) If the Commissioner believes on reasonable grounds that a public office holder has committed a violation, the Commissioner may issue, and shall cause to be served on the public office holder, a notice of violation. (2) A notice of violation must (a) set out the name of the public office holder believed to have committed a violation; (b) identify the violation; (c) set out the penalty that the Commissioner proposes to impose; (d) inform the public office holder that he or she may, within 30 days after the notice is served or within any longer period specified by the Commissioner, pay the penalty set out in the notice or make representations to the Commissioner with respect to the alleged violation or proposed penalty and set out the manner for doing so; and (e) inform the public office holder that, if he or she does not pay the penalty or make representations in accordance with the notice, he or she will be considered to have committed the violation and the Commissioner may impose a penalty in respect of it. Criteria for penalty (3) The amount of a proposed penalty is, in each case, to be determined taking into account the following matters: Respon (a) the fact that penalties have as their purpose to encourage compliance with this Act rather than to punish; (b) the public office holder’s history of prior violations under this Act during the five-year period immediately before the violation; and (c) any other relevant matter. Regulations 54. The Governor in Council may make regulations respecting the service of documents required or authorized to be served under sections 53 to 57, including the manner and proof of service and the circumstances under which documents are deemed to be served. Payment of penalty 55. If the public office holder pays the penalty proposed in the notice of violation, he or she is considered to have committed the violation and proceedings in respect of it are ended. Representations to Commissioner 56. (1) If the public office holder makes representations to the Commissioner in accordance with the notice of violation, the Commissioner shall decide, on a balance of probabilities, whether the public office holder committed the violation and, if so, may impose the penalty proposed, a lesser penalty or no penalty. Notice of decision (2) The Commissioner shall cause notice of any decision made under subsection (1) to be served on the public office holder. Failure to act 57. A public office holder who neither pays the penalty nor makes representations in accordance with the notice of violation is deemed to have committed the violation. The Commissioner shall impose the penalty proposed and notify the public office holder of the penalty imposed. Due diligence available 58. (1) Due diligence is a defence in a proceeding in relation to a violation. Common law principles (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is not inconsistent with this Act. C. 9 Evidence 59. In any proceeding, a notice appearing to have been issued under subsection 53(1) or 56(2) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it. Limitation 60. (1) Proceedings in respect of a violation may be commenced at any time within but not later than five years after the day on which the Commissioner became aware of the subjectmatter of the proceedings. Certificate of Commissioner (2) A document appearing to have been issued by the Commissioner, certifying the day on which the subject-matter of any proceedings became known to the Commissioner, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is, in the absence of evidence to the contrary, proof of the matter asserted in it. Recovery of administrative monetary penalties 61. Any administrative monetary penalty required to be paid by a public office holder constitutes a debt due to Her Majesty and may be recovered as a debt from the public office holder in the Federal Court or any other court of competent jurisdiction. Publication 62. If an administrative monetary penalty is imposed on a public office holder in respect of a violation, the Commissioner shall make public the nature of the violation, the name of the public office holder who committed it and the amount of the penalty imposed. Accoun PART 5 GENERAL Section 126 of Criminal Code 63. Section 126 of the Criminal Code does not apply to or in respect of any contravention or alleged contravention of any provision of this Act. Activities on behalf of constituents 64. (1) Subject to subsection 6(2) and sections 21 and 30, nothing in this Act prohibits a member of the Senate or the House of Commons who is a public office holder or former public office holder from engaging in Respon those activities that he or she would normally carry out as a member of the Senate or the House of Commons. Rights, etc. not affected (2) Subject to subsection 6(2) and sections 21 and 30, nothing in this Act abrogates or derogates from any of the privileges, immunities and powers referred to in section 4 of the Parliament of Canada Act. Limitation period 65. Proceedings under this Act may be taken at any time within but not later than five years after the day on which the Commissioner became aware of the subject-matter of the proceedings and, in any case, not later than ten years after the day on which the subjectmatter of the proceeding arose. Orders and decisions final 66. Every order and decision of the Commissioner is final and shall not be questioned or reviewed in any court, except in accordance with the Federal Courts Act on the grounds referred to in paragraph 18.1(4)(a), (b) or (e) of that Act. Review 67. (1) Within five years after this section comes into force, a comprehensive review of the provisions and operation of this Act shall be undertaken by such committee of the Senate, of the House of Commons or of both Houses of Parliament as may be designated or established by the Senate or the House of Commons, or by both Houses of Parliament, as the case may be, for that purpose. Report to Parliament (2) The committee referred to in subsection (1) shall, within a year after a review is undertaken pursuant to that subsection or within such further time as may be authorized by the Senate, the House of Commons or both Houses of Parliament, as the case may be, submit a report on the review to Parliament, including a statement of any changes that the committee recommends. Transitional Provisions Positions 3. (1) An employee who occupies a position in the office of the Ethics Commissioner immediately before the day on which section 81 of the Parliament of Canada Act, as enacted by section 28 of this Act, comes into force continues in that position, except that C. 9 Accoun from that day the employee occupies that position in the office of the Conflict of Interest and Ethics Commissioner. Transfer of appropriation (2) Any amount appropriated, for the fiscal year in which this section comes into force, by an appropriation Act based on the Estimates for that year for defraying the charges and expenses of the office of the Ethics Commissioner that, on the day on which this section comes into force, is unexpended is deemed, on that day, to be an amount appropriated for defraying the charges and expenses of the office of the Conflict of Interest and Ethics Commissioner. References (3) Every reference to the Ethics Commissioner in any deed, contract, agreement, instrument or other document executed by that person is to be read as a reference to the Conflict of Interest and Ethics Commissioner, unless the context otherwise requires. Continuation of proccedings (4) Any action, suit or other legal or administrative proceeding to which the Ethics Commissioner is a party that is pending on the coming into force of this section may be continued by or against the Conflict of Interest and Ethics Commissioner in a similar manner and to the same extent as it would have been continued by or against the Ethics Commissioner. Transfer of data (5) All information that, on the day on which this section comes into force, is in the possession or control of the Ethics Commissioner relating to the exercise of his or her powers, duties and functions under the Parliament of Canada Act is, as of that day, under the control of the Conflict of Interest and Ethics Commissioner. Jurisdiction of the Commissioner (6) The Conflict of Interest and Ethics Commissioner has, with respect to persons subject to and obligations established by The Conflict of Interest and Post-Employment Code for Public Office Holders, as issued from time to time, the same powers, duties and functions that the Ethics Counsellor or Ethics Commissioner had in relation to those persons and obligations. In addition, the Conflict of Interest and Ethics Commissioner has all the powers, duties and functions of the Respon Commissioner under the Conflict of Interest Act in relation to those persons and obligations. Exception (7) Subsection (6) does not apply to any person or obligation in respect of which the Ethics Counsellor or Ethics Commissioner had reached a final decision. Request from parliamentarian (8) A member of the Senate or House of Commons may, with respect to persons subject to and obligations established by The Conflict of Interest and Post-Employment Code for Public Office Holders, as issued from time to time, make a request to the Conflict of Interest and Ethics Commissioner in accordance with section 44 of the Conflict of Interest Act. Reference to Act 3.1 (1) In this section, the “other Act” means, before the day on which section 66 of this Act comes into force, the Lobbyists Registration Act and, from that day, the Lobbying Act. Five-year prohibition — lobbying (2) If, on the day on which section 27 of this Act comes into force, section 10.11 of the other Act, as enacted by section 75 of this Act, is not yet in force, persons who would otherwise be bound by section 29 of the Conflict of Interest and Post-Employment Code for Public Office Holders by virtue of their office and who cease to hold that office on or after that day but before the day on which that section 10.11 comes into force, are subject to the obligations established by section 29 of that Code, despite the coming into force of section 27 of this Act. Jurisdiction of registrar (3) The registrar referred to in section 8 of the other Act has, with respect to the persons and obligations referred to in subsection (2), the same powers, duties and functions that the Ethics Commissioner would have in relation to those persons and obligations if section 27 of this Act were not in force. C. 9 Accoun Consequential Amendments R.S., c. C-10 2004, c. 7, s. 6 Canada Post Corporation Act 4. Paragraph 35(2)(d) of the Canada Post Corporation Act is replaced by the following: (d) the Conflict of Interest and Ethics Commissioner or Senate Ethics Officer R.S., c. F-7; 2002, c. 8, s. 14 Federal Courts Act 2004, c. 7, s. 38 5. Subsection 2(2) of the Federal Courts Act is replaced by the following: Senate and House of Commons (2) For greater certainty, the expression “federal board, commission or other tribunal”, as defined in subsection (1), does not include the Senate, the House of Commons, any committee or member of either House, the Senate Ethics Officer or the Conflict of Interest and Ethics Commissioner with respect to the exercise of the jurisdiction or powers referred to in section 86 of the Parliament of Canada Act. 6. Subsection 28(1) of the Act is amended by adding the following after paragraph (b): (b.1) the Conflict of Interest and Ethics Commissioner appointed under section 81 of the Parliament of Canada Act; R.S., c. F-11 2004, c. 7, s. 8(1) Financial Administration Act 7. (1) Paragraph (c) of the definition “appropriate Minister” in section 2 of the Financial Administration Act is replaced by the following: (c) with respect to the Senate and the office of the Senate Ethics Officer, the Speaker of the Senate, with respect to the House of Commons, the Board of Internal Economy, with respect to the office of the Conflict of Interest and Ethics Commissioner, the Speaker of the House of Commons, and with respect to the Library of Parliament, the Speakers of the Senate and the House of Commons, Respon 2006 2004, c. 7, s. 8(2) (2) Paragraph (c) of the definition “department” in section 2 of the Act is replaced by the following: (c) the staffs of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer and office of the Conflict of Interest and Ethics Commissioner, and 2005, c. 9 First Nations Fiscal and Statistical Management Act 8. Subsection 132(3) of the First Nations Fiscal and Statistical Management Act is replaced by the following: Conflict of interest (3) All persons appointed to a commission, board or institute established under this Act shall comply with the Conflict of Interest Act as though they were public office holders as defined in that Act. R.S., c. G-2 Garnishment, Attachment and Pension Diversion Act 2004, c. 7, s. 9 9. The title of Division IV before section 16 of the Garnishment, Attachment and Pension Diversion Act is replaced by the following: SENATE, HOUSE OF COMMONS, LIBRARY OF PARLIAMENT, OFFICE OF THE SENATE ETHICS OFFICER AND OFFICE OF THE CONFLICT OF INTEREST AND ETHICS COMMISSIONER 2004, c. 7, s. 10 10. The portion of paragraph (b) of the definition “salary” in section 16 of the Act before subparagraph (i) is replaced by the following: (b) in the case of the staff of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner or the staff of members of the Senate or House of Commons, or in the case of any other person paid out of moneys appropriated C. 9 Accoun by Parliament for use by the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, 2004, c. 7, s. 11 11. The portion of section 17 of the Act before paragraph (a) is replaced by the following: Garnishment of salaries, remuneration 17. The Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer and office of the Conflict of Interest and Ethics Commissioner are, subject to this Division and any regulation made under it, bound by provincial garnishment law in respect of 2004, c. 7, s. 12 12. Sections 18 and 19 of the Act are replaced by the following: Service binding 18. (1) Subject to this Division, service on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner of a garnishee summons, together with a copy of the judgment or order against the debtor and an application in the prescribed form, binds the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, 15 days after the day on which those documents are served. When service is effective (2) A garnishee summons served on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner is of no effect unless it is served on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, in the first 30 days following the first day on which it could have been validly served on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be. Respon 2006 Place of service 19. (1) Service of documents on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner in connection with garnishment proceedings permitted by this Division must be effected at the place specified in the regulations. Method of service (2) In addition to any method of service permitted by the law of a province, service of documents on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner under subsection (1) may be effected by registered mail, whether within or outside the province, or by any other method prescribed. If service by registered mail (3) If service of a document on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner is effected by registered mail, the document shall be deemed to be served on the day of its receipt by the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be. 1997, c. 1, s. 30; 2004, c. 7, s. 13 13. Paragraphs 21(a) and (b) of the Act are replaced by the following: (a) in the case of a salary, (i) the salary to be paid on the last day of the second pay period next following the pay period in which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, is bound by the garnishee summons, and (ii) where the garnishee summons has continuing effect under the law of the province, the salary to be paid on the last day of each subsequent pay period; or (b) in the case of remuneration described in paragraph 17(b), C. 9 Accoun (i) the remuneration payable on the fifteenth day following the day on which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, is bound by the garnishee summons, and (ii) either (A) any remuneration becoming payable in the thirty days following the fifteenth day after the day on which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, is bound by the garnishee summons that is owing on that fifteenth day or that becomes owing in the fourteen days following that fifteenth day, or (B) if the garnishee summons has continuing effect under the law of the province, any remuneration becoming payable subsequent to the fifteenth day after the day on which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, is bound by the garnishee summons. 1997, c. 1, s. 30; 2004, c. 7, s. 14 14. The portion of section 22 of the Act before paragraph (b) is replaced by the following: Time period to respond to a garnishee summons 22. The Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner has the following time period within which to respond to a garnishee summons: (a) in the case of a salary, fifteen days, or such lesser number of days as is prescribed, after the last day of the second pay period next following the pay period in which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer Respon or office of the Conflict of Interest and Ethics Commissioner is bound by the garnishee summons; or 2004, c. 7, s. 15 15. Section 23 of the Act is replaced by the following: Method of response 23. (1) In addition to any method of responding to a garnishee summons permitted by provincial garnishment law, the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner may respond to a garnishee summons by registered mail or by any other method prescribed. Response by registered mail (2) If the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner responds to a garnishee summons by registered mail, the receipt issued in accordance with regulations relating to registered mail made under the Canada Post Corporation Act shall be received in evidence and is, unless the contrary is shown, proof that the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as the case may be, has responded to the garnishee summons. Effect of payment into court (3) A payment into court by the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner under this section is a good and sufficient discharge of liability, to the extent of the payment. Recovery of overpayment to debtor (4) If, in honouring a garnishee summons, the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, through error, pays to a debtor by way of salary or remuneration an amount in excess of the amount that it should have paid to that debtor, the excess becomes a debt due to the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or C. 9 Accoun office of the Conflict of Interest and Ethics Commissioner, as the case may be, by that debtor and may be recovered from the debtor at any time by set-off against future moneys payable to the debtor as salary or remuneration. 2004, c. 7, s. 16 16. Paragraph 24(a) of the Act is replaced by the following: (a) specifying the place where service of documents on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner must be effected in connection with garnishment proceedings permitted by this Division; 2004, c. 7, s. 17 17. Section 26 of the Act is replaced by the following: No execution 26. No execution shall issue on a judgment given against the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner in garnishment proceedings permitted by this Part. R.S., c. G-5 2004, c. 7, s. 18 Government Employees Compensation Act 18. Paragraph (e) of the definition “employee” in section 2 of the Government Employees Compensation Act is replaced by the following: (e) any officer or employee of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner; R.S., c. 15 (4th Supp.) 2004, c. 7, s. 25 Non-smokers’ Health Act 19. Paragraph (c) of the definition “employer” in subsection 2(1) of the Nonsmokers’ Health Act is replaced by the following: (c) the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest Respon and Ethics Commissioner, in relation to employees thereof or employees of a committee of the Senate or House of Commons, as the case may be, or R.S., c. 31 (4th Supp.) 2004, c. 7, s. 26 Official Languages Act 20. Paragraph (c.1) of the definition “federal institution” in subsection 3(1) of the Official Languages Act is replaced by the following: (c.1) the office of the Senate Ethics Officer and the office of the Conflict of Interest and Ethics Commissioner, 2004, c. 7, s. 27 21. Section 33 of the Act is replaced by the following: Regulations 33. The Governor in Council may make any regulations that the Governor in Council deems necessary to foster actively communications with and services from offices or facilities of federal institutions — other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner — in both official languages, if those C. 9 Accoun communications and services are required under this Part to be provided in both official languages. 2004, c. 7, s. 28(1) 22. (1) The portion of subsection 38(1) of the Act before paragraph (a) is replaced by the following: Regulations 38. (1) The Governor in Council may make regulations in respect of federal institutions, other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, 2004, c. 7, s. 28(2)(E) (2) Paragraph 38(2)(b) of the Act is replaced by the following: (b) substituting, with respect to any federal institution other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, a duty in relation to the use of the official languages of Canada in place of a duty under section 36 or the regulations made under subsection (1), having regard to the equality of status of both official languages, if there is a demonstrable conflict between the duty under section 36 or the regulations and the mandate of the institution. 2005, c. 41, s. 1 23. Subsection 41(3) of the Act is replaced by the following: Regulations (3) The Governor in Council may make regulations in respect of federal institutions, other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, prescribing the manner in which any duties of those institutions under this Part are to be carried out. 2004, c. 7, s. 29 24. Subsection 46(1) of the Act is replaced by the following: Responsibilities of Treasury Board 46. (1) The Treasury Board has responsibility for the general direction and coordination of the policies and programs of the Government of Canada relating to the implementation of Parts IV, V and VI in all federal institutions other than the Senate, House of Commons, Library of Respon Parliament, office of the Senate Ethics Officer and office of the Conflict of Interest and Ethics Commissioner. 2004, c. 7, s. 30 25. Section 93 of the Act is replaced by the following: Regulations 93. The Governor in Council may make regulations (a) prescribing anything that the Governor in Council considers necessary to effect compliance with this Act in the conduct of the affairs of federal institutions other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner; and (b) prescribing anything that is by this Act to be prescribed by regulation of the Governor in Council. R.S., c. P-1 Parliament of Canada Act 2004, c. 7, s. 2 26. Subsection 20.5(4) of the Parliament of Canada Act is replaced by the following: Conflict of Interest Act (4) For greater certainty, the administration of the Conflict of Interest Act in respect of public office holders who are ministers of the Crown, ministers of state or parliamentary secretaries is not part of the duties and functions of the Senate Ethics Officer or the committee. 2004, c. 7, s. 4 27. The heading before section 72.01 and sections 72.01 to 72.13 of the Act are repealed. 28. The Act is amended by adding the following after section 80: CONFLICT OF INTEREST AND ETHICS COMMISSIONER Appointment 81. (1) The Governor in Council shall, by commission under the Great Seal, appoint a Conflict of Interest and Ethics Commissioner after consultation with the leader of every recognized party in the House of Commons and approval of the appointment by resolution of that House. C. 9 Qualifications (2) In order to be appointed under subsection (1), a person must be Accoun (a) a former judge of a superior court in Canada or of any other court whose members are appointed under an Act of the legislature of a province; (b) a former member of a federal or provincial board, commission or tribunal who, in the opinion of the Governor in Council, has demonstrated expertise in one or more of the following: (i) conflicts of interest, (ii) financial arrangements, (iii) professional regulation and discipline, or (iv) ethics; or (c) a former Senate Ethics Officer or former Ethics Commissioner. Reappointment (3) The Commissioner is eligible to be reappointed for one or more terms of up to seven years each. Tenure 82. (1) The Commissioner holds office during good behaviour for a term of seven years but may be removed for cause by the Governor in Council on address of the House of Commons. Interim appointment (2) In the event of the absence or incapacity of the Commissioner, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. Remuneration 83. (1) The Commissioner shall be paid the remuneration and expenses set by the Governor in Council. Carrying out functions (2) The Commissioner shall engage exclusively in the duties and functions of the Commissioner and may not hold any office under Her Majesty or engage in any other employment for reward. Respon Deputy head 84. (1) The Commissioner has the rank of a deputy head of a department of the Government of Canada and has the control and management of the office of the Commissioner. Powers to contract (2) The Commissioner may, in carrying out the work of the office of the Commissioner, enter into contracts, memoranda of understanding or other arrangements. Staff (3) The Commissioner may employ any officers and employees and may engage the services of any agents and mandataries, advisers and consultants that the Commissioner considers necessary for the proper conduct of the work of the office of the Commissioner. Authorization (4) The Commissioner may, subject to the conditions he or she sets, authorize any person to exercise any powers under subsection (2) or (3) on behalf of the Commissioner that he or she may determine. Salaries (5) The salaries of the officers and employees of the office of the Commissioner shall be fixed according to the scale provided by law. Payment (6) The salaries of the officers and employees of the office of the Commissioner, and any casual expenses connected with the office, shall be paid out of moneys provided by Parliament for that purpose. Estimates to be prepared (7) Prior to each fiscal year, the Commissioner shall cause to be prepared an estimate of the sums that will be required to pay the charges and expenses of the office of the Commissioner during the fiscal year. Inclusion in government estimates (8) The estimate referred to in subsection (7) shall be considered by the Speaker of the House of Commons and then transmitted to the President of the Treasury Board, who shall lay it before the House of Commons with the estimates of the Government for the fiscal year. Mandate 85. The mandate of the Commissioner is to (a) carry out the functions of the Commissioner referred to in sections 86 and 87; and (b) provide confidential policy advice and support to the Prime Minister in respect of conflict of interest and ethical issues in general. C. 9 Functions: members of House of Commons 86. (1) The Commissioner shall perform the duties and functions assigned by the House of Commons for governing the conduct of its members when they are carrying out the duties and functions of their office as members of that House. Privileges and immunities (2) The duties and functions of the Commissioner under subsection (1) are carried out within the institution of the House of Commons. The Commissioner enjoys the privileges and immunities of the House of Commons and its members when carrying out those duties and functions. General direction of committee (3) The Commissioner shall carry out those duties and functions under the general direction of any committee of the House of Commons that may be designated or established by that House for that purpose. Clarification — ethical principles, etc. (4) For greater certainty, the general direction of the committee referred to in subsection (3) does not include the administration of the Conflict of Interest Act in respect of ministers of the Crown, ministers of state or parliamentary secretaries acting in their capacity as ministers of the Crown, ministers of state or parliamentary secretaries. Clarification — powers, etc., of House of Commons (5) For greater certainty, this section shall not be interpreted as limiting in any way the powers, privileges, rights and immunities of the House of Commons or its members. No summons 86.1 (1) The Commissioner, or any person acting on behalf or under the direction of the Commissioner, is not a competent or compellable witness in respect of any matter coming to his or her knowledge as a result of exercising any powers or performing any duties or functions of the Commissioner under this Act. Protection (2) No criminal or civil proceedings lie against the Commissioner, or any person acting on behalf or under the direction of the Commissioner, for anything done, reported or said in good faith in the exercise or purported exercise of any power, or the performance or purported performance of any duty or function, of the Commissioner under this Act. Accoun Respon Clarification (3) The protection provided under subsections (1) and (2) does not limit any powers, privileges, rights and immunities that the Commissioner may otherwise enjoy. Functions: public office holders 87. The Commissioner shall, in relation to public office holders, perform the duties and functions assigned to the Commissioner under the Conflict of Interest Act. Use of personal information 88. (1) Personal information collected by the Commissioner shall not, without the consent of the individual to whom it relates, be used by the Commissioner except for the purpose for which the information was obtained or for a use consistent with that purpose. Clarification (2) The purpose for which information referred to in subsection (1) was obtained is determined by the section of this Act under which the Commissioner was acting when he or she obtained the information. Delegation 89. The Commissioner may authorize any person to exercise or perform, subject to any restrictions or limitations that the Commissioner may specify, any of the powers, duties or functions of the Commissioner under this Act or the Conflict of Interest Act except the power to delegate under this section. Annual reports 90. (1) Within three months after the end of each fiscal year, the Commissioner shall submit (a) a report on his or her activities under section 86 for that year to the Speaker of the House of Commons, who shall table the report in that House; and (b) a report on his or her activities under section 87 for that year to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides. Confidentiality (2) The Commissioner may not include in the annual reports any information that he or she is required to keep confidential, including confidences of the Queen’s Privy Council for Canada. 50 R.S., c. 33 (2nd Supp.) 2004, c. 7, s. 31 C. 9 Accoun Parliamentary Employment and Staff Relations Act 29. The long title of the Parliamentary Employment and Staff Relations Act is replaced by the following: An Act respecting employment and employer and employee relations in the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer and office of the Conflict of Interest and Ethics Commissioner 2004, c. 7, s. 32 30. Paragraph 2(a) of the Act is replaced by the following: (a) the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, and 2004, c. 7, s. 33 31. The definition “employer” in section 3 of the Act is amended by replacing paragraph (e) with the following: (e) the office of the Conflict of Interest and Ethics Commissioner as represented by the Conflict of Interest and Ethics Commissioner; 2004, c. 7, s. 34 32. Paragraph 85(c.2) of the Act is replaced by the following: Respon (c.2) the office of the Conflict of Interest and Ethics Commissioner as represented by the Conflict of Interest and Ethics Commissioner; or R.S., c. P-36 Public Service Superannuation Act 2004, c. 7, ss. 36 and 41(3)(E) 33. The definition “public service” in subsection 3(1) of the Public Service Superannuation Act is replaced by the following: “public service” « fonction publique » “public service” means the several positions in or under any department or portion of the executive government of Canada, except those portions of departments or portions of the executive government of Canada prescribed by the regulations and, for the purposes of this Part, of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer and office of the Conflict of Interest and Ethics Commissioner and any board, commission, corporation or portion of the federal public administration specified in Schedule I; R.S., c. R-2; 1989, c. 17, s. 2 Radiocommunication Act 1989, c. 17, s. 4; 2004, c. 7, s. 37 34. Subsections 3(1) and (2) of the Radiocommunication Act are replaced by the following: Application to Her Majesty and Parliament 3. (1) Subject to subsection (2), this Act is binding on Her Majesty in right of Canada, on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer and office of the Conflict of Interest and Ethics Commissioner and on Her Majesty in right of a province. Exemptions (2) The Governor in Council may by order exempt Her Majesty in right of Canada, or the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner, as represented by the person or persons named in the order, from any or all provisions of this Act or the regulations, and such an exemption may be C. 9 Accoun (a) in the case of an exemption of Her Majesty in right of Canada, in respect of Her Majesty in right of Canada generally, or only in respect of a department or other body named in the order; (b) either absolute or qualified; and (c) of either general or specific application. Coordinating Amendments Lobbying Act 35. On the day on which section 66 of this Act comes into force, section 42 of the Conflict of Interest Act, as enacted by section 2 of this Act, is replaced by the following: No impact 42. For greater certainty, no exemption granted in respect of a person under section 38 and no waiver or reduction granted in respect of a person under section 39 affects any obligation or prohibition that applies to that person under the Lobbying Act. Lobbying Act 36. On the day on which section 66 of this Act comes into force, subsection 37(1) of the Conflict of Interest Act, as enacted by section 2 of this Act, is replaced by the following: Report to Commissioner 37. (1) A former reporting public office holder who, during the applicable period under section 36, has any communication referred to in paragraph 5(1)(a) of the Lobbying Act or arranges a meeting referred to in paragraph 5(1)(b) of that Act shall report that communication or meeting to the Commissioner. Public Servants Disclosure Protection Act 37. On the later of the day on which section 45 of the Conflict of Interest Act comes into force and the day on which section 24 of the Public Servants Disclosure Protection Act comes into force — or, if those days are the same day, then on that day — the Conflict of Interest Act is amended by adding the following after section 67: Referral from Public Sector Integrity Commissioner 68. If a matter is referred to the Commissioner under subsection 24(2.1) of the Public Servants Disclosure Protection Act, the Commissioner shall Respon (a) provide the Prime Minister with a report setting out the facts in question as well as the Commissioner’s analysis and conclusions; (b) provide a copy of the report to the public office holder or former public office holder who is the subject of the report; (c) provide a copy of the report to the Public Sector Integrity Commissioner; and (d) make the report available to the public. Federal Courts Act 38. On the later of the day on which section 5 of this Act comes into force and the day on which section 99 of this Act comes into force — or, if those days are the same day, then on that day — subsection 2(2) of the Federal Courts Act is replaced by the following: Senate and House of Commons (2) For greater certainty, the expression “federal board, commission or other tribunal”, as defined in subsection (1), does not include the Senate, the House of Commons, any committee or member of either House, the Senate Ethics Officer or the Conflict of Interest and Ethics Commissioner with respect to the exercise of the jurisdiction or powers referred to in sections 41.1 to 41.5 and 86 of the Parliament of Canada Act. 2000, c. 9 CANADA ELECTIONS ACT Amendments to Act 39. The portion of subsection 2(2) of the Canada Elections Act before paragraph (a) is replaced by the following: No commercial value (2) For the purposes of this Act, other than section 92.2, the commercial value of property or a service is deemed to be nil if 40. The Act is amended by adding the following after section 92: GIFTS AND OTHER ADVANTAGES Definition of candidate 92.1 For the purposes of sections 92.2 to 92.6, a candidate is deemed to have become a candidate on the earlier of (a) the day on which he or she is selected at a nomination contest, and C. 9 Accoun (b) the day on which the writ is issued for the election. Prohibition 92.2 (1) No candidate shall accept any gift or other advantage that might reasonably be seen to have been given to influence him or her in the performance of his or her duties and functions as a member, were the candidate to be elected, during the period that (a) begins on the day on which he or she becomes a candidate; and (b) ends on the day on which he or she withdraws, in the case of a candidate who withdraws in accordance with subsection 74(1), on the day on which he or she becomes a member, in the case of a candidate who is elected, and on polling day, in any other case. Exception (2) Despite subsection (1), a candidate may accept a gift or other advantage that is given by a relative or as a normal expression of courtesy or protocol. Statement of candidate (3) The candidate shall provide the Chief Electoral Officer with a statement in the prescribed form that discloses, in respect of all gifts or other advantages that the candidate accepted during the period referred to in subsection (1) whose benefit to the candidate exceeds $500 or, if accepted from the same person or entity in that period, exceeds a total of $500, other than gifts or other advantages given by relatives or made by way of an unconditional, non-discretionary testamentary disposition, (a) the nature of each gift or other advantage, its commercial value and the cost, if any, to the candidate; (b) the name and address of the person or entity giving the gift or other advantage; and (c) the circumstances under which the gift or other advantage was given. Clarification (4) For the purposes of subsection (3), the benefit to a candidate of a gift or other advantage that is a service or property, or the use of property or money, is the difference Respon between the commercial value of the service or property or the use of the property or money and the cost, if any, to the candidate. Period for providing statement (5) The candidate shall provide the statement to the Chief Electoral Officer within four months after (a) polling day; or (b) the publication of a notice of the withdrawal or deemed withdrawal of the writ for the election. Definitions “common-law partnership” « union de fait » “gift or other advantage” « cadeau ou autre avantage » (6) The following definitions apply in this section. “common-law partnership” means the relationship between two persons who are cohabiting in a conjugal relationship, having so cohabited for a period of at least one year. “gift or other advantage” means (a) an amount of money if there is no obligation to repay it; and (b) a service or property, or the use of property or money, that is provided without charge or at less than its commercial value. It does not include a contribution made by an eligible individual under Part 18 to the official agent of a candidate that does not exceed the limits set out in that Part, or a provision of goods or services or a transfer of funds under section 404.2. “relative” « parent » Extension or correction — Chief Electoral Officer “relative”, in respect of a candidate, means a person related to the candidate by marriage, common-law partnership, birth, adoption or affinity. 92.3 (1) The Chief Electoral Officer, on the written application of a candidate, may authorize (a) the extension of the period provided in subsection 92.2(5); or (b) the correction, within a specified period, of the statement referred to in subsection 92.2(3). 56 Deadline C. 9 Accoun (2) An application may be made (a) under paragraph (1)(a), within the period provided in subsection 92.2(5); and (b) under paragraph (1)(b), as soon as the candidate becomes aware of the need for correction. Grounds (3) The Chief Electoral Officer may not authorize an extension or correction unless he or she is satisfied by the evidence submitted by the candidate in writing that the circumstances giving rise to the application arose by reason of (a) the illness of the candidate; or (b) inadvertence or an honest mistake of fact. Extension or correction — judge 92.4 (1) A candidate may apply to a judge who is competent to conduct a recount for an order authorizing an extension referred to in paragraph 92.3(1)(a) or a correction referred to in paragraph 92.3(1)(b). The applicant shall notify the Chief Electoral Officer of the application. Deadline (2) An application may be made within two weeks after (a) the rejection of an application, made in accordance with section 92.3, for the extension or correction; or (b) the expiry of the extended period or specified period authorized under paragraph 92.3(1)(a) or (b). Grounds (3) A judge may not grant an order unless he or she is satisfied that the circumstances giving rise to the application arose by reason of a factor referred to in either paragraph 92.3(3)(a) or (b). Contents of order (4) An order under subsection (1) may require that the candidate satisfy any condition that the judge considers necessary for carrying out the purposes of this Act. Chief Electoral Officer to retain statements 92.5 (1) The Chief Electoral Officer shall retain in his or her possession the statements referred to in subsection 92.2(3) for at least one year after the return of the writ for the election. Information to be kept confidential (2) The Chief Electoral Officer shall keep confidential the statements provided under subsection 92.2(3). Respon 2006 Exception (3) Subsection (2) does not prohibit the Commissioner from inspecting the statements referred to in that subsection, and any of those statements may be provided to the Director of Public Prosecutions and produced by that Director for the purpose of a prosecution for an offence under this Act. Prohibition — false, misleading or incomplete statement 92.6 No candidate shall provide the Chief Electoral Officer with a statement referred to in subsection 92.2(3) that (a) the candidate knows or ought reasonably to know contains a material statement that is false or misleading; or (b) does not substantially set out the information required by that subsection. 2003, c. 19, s. 23 41. (1) Subsection 403.35(1) of the Act is amended by adding the word “and” at the end of paragraph (b), by striking out the word “and” at the end of paragraph (c) and by repealing paragraph (d). 2003, c. 19, s. 23 (2) Paragraphs 403.35(2)(a) to (d) of the Act are replaced by the following: (a) a statement of contributions received by the registered association; (b) the number of contributors; (c) the name and address of each contributor who made contributions of a total amount of more than $200 to the registered association, that total amount, as well as the amount of each such contribution and the date on which it was received by the association; 2003, c. 19, s. 23 42. Section 403.36 of the Act is replaced by the following: When contributions forwarded to Receiver General 403.36 The financial agent of a registered association shall, without delay, pay an amount of money equal to the value of a contribution received by the association to the Chief Electoral Officer, who shall forward it to the Receiver General, if the name of the contributor of a contribution of more than $20, or the name or the address of the contributor having made contributions of a total amount of more than $200, is not known. C. 9 Accoun 2003, c. 19, s. 24 43. Section 404.1 of the Act is repealed. 2003, c. 19, s. 24 44. (1) The portion of subsection 404.2(2) of the Act before paragraph (a) is replaced by the following: Exclusion for goods and services — registered parties, registered associations and candidates (2) A provision of goods or services is permitted and is not a contribution for the purposes of this Act if it is (2) Section 404.2 of the Act is amended by adding the following after subsection (2): Exclusion for funds — registered parties, registered associations and candidates (2.1) A transfer of funds is permitted and is not a contribution for the purposes of this Act if it is (a) from a registered party to an electoral district association of the party; (b) from a registered association to the party with which it is affiliated or another registered association of the party; (c) from a candidate endorsed by a registered party to the party or a registered association of the party; or (d) from a candidate to himself or herself in his or her capacity as a nomination contestant in respect of the same election. Exclusion for funds other than trust funds — registered parties and registered associations (2.2) A transfer of funds, other than trust funds, is permitted and is not a contribution for the purposes of this Act if it is (a) from a registered party to a candidate endorsed by the party; or (b) from a registered association to a candidate endorsed by the party with which the association is affiliated. 2003, c. 19, s. 24 (3) Subsections 404.2(4) and (5) of the Act are replaced by the following: Exception (5) The provision, by an employer, of a paid leave of absence during an election period to an employee for the purpose of allowing the employee to be a nomination contestant or candidate is not a contribution. Respon (4) Section 404.2 of the Act is amended by adding the following after subsection (6): Contribution (7) For greater certainty, the payment by or on behalf of an individual of fees to attend an annual, biennial or leadership convention of a particular registered party is a contribution to that party. 2003, c. 19, s. 24 45. (1) Subsection 404.4(1) of the Act is replaced by the following: Issuance of receipts 404.4 (1) Any person who is authorized to accept contributions on behalf of a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant shall issue a receipt — of which he or she shall keep a copy — for each contribution of more than $20 that he or she accepts. 2003, c. 19, s. 24 (2) The portion of subsection 404.4(2) of the Act before paragraph (a) is replaced by the following: Record keeping (2) If anonymous contributions of $20 or less per person are collected in response to a general solicitation at a meeting or fundraising event related to the affairs of a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant, the person authorized to accept those contributions must record the following: 2003, c. 19, s. 25 46. (1) Subsection 405(1) of the Act is replaced by the following: Contribution limits 405. (1) No individual shall make contributions that exceed (a) $1,000 in total in any calendar year to a particular registered party; (a.1) $1,000 in total in any calendar year to the registered associations, nomination contestants and candidates of a particular registered party; (b) $1,000 in total to a candidate for a particular election who is not the candidate of a registered party; and C. 9 Accoun (c) $1,000 in total to the leadership contestants in a particular leadership contest. 2003, c. 19, s. 25 (2) Subsection 405(3) of the Act is replaced by the following: Attribution of certain contributions (3) For the purposes of subsection (1), a contribution to a person who presents himself or herself as seeking the endorsement of a particular registered party shall be treated as a contribution referred to in paragraph (1)(a.1) to a candidate of that party and a contribution to a person who presents himself or herself as seeking to be a candidate not endorsed by any registered party shall be treated as a contribution referred to in paragraph (1)(b). 2003, c. 19, s. 25 (3) Paragraphs 405(4)(a) to (c) of the Act are replaced by the following: (a) contributions that do not exceed $1,000 in total by a nomination contestant or candidate of a registered party out of his or her own funds to his or her own campaign as a nomination contestant or candidate; (b) contributions that do not exceed $1,000 in total by a candidate for a particular election who is not the candidate of a registered party out of his or her own funds to his or her own campaign; and (c) contributions that do not exceed $1,000 in total by a leadership contestant in a particular leadership contest out of his or her own funds to his or her own campaign. 2003, c. 19, s. 25 47. (1) The portion of subsection 405.1(1) of the Act before paragraph (a) is replaced by the following: Adjustment for inflation 405.1 (1) The inflation adjustment factor applicable to the limits established under subsection 405(1), in effect for a period of one year beginning on each April 1, is a fraction with 2003, c. 19, s. 25 (2) Subsection 405.1(2) of the Act is replaced by the following: 2006 Adjustment Respon (2) The amounts set out in subsection 405(1) shall be multiplied by the inflation adjustment factor referred to in subsection (1) for any given year and the resulting amounts apply (a) in the cases referred to in paragraphs 405(1)(a) and (a.1), during the calendar year that commences in that year; (b) in the case referred to in paragraph 405(1)(b), with respect to an election whose writ is issued during that year; and (c) in the case referred to in paragraph 405(1)(c), with respect to a leadership contest that begins during that year. The resulting amounts shall be rounded to the nearest hundred dollars. 2003, c. 19, s. 25 48. (1) Paragraph 405.2(1)(a) of the Act is replaced by the following: (a) circumvent, or attempt to circumvent, the prohibition under subsection 404(1) or a limit set out in subsection 405(1) or section 405.31; or 2003, c. 19, s. 25 (2) Subsection 405.2(4) of the Act is replaced by the following: Prohibited agreements (4) No person or entity shall enter into an agreement for the provision for payment of goods or services to a registered party or a candidate that includes a term that any individual will make a contribution, directly or indirectly, to a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant. 2003, c. 19, s. 25 49. Sections 405.3 and 405.4 of the Act are replaced by the following: Prohibition — making indirect contributions 405.3 No individual shall make a contribution to a registered party, a registered association, a candidate or a leadership contestant or a nomination contestant that comes from money, property or the services of any person or entity that was provided to that individual for that purpose. Limit on cash contributions 405.31 No individual shall, in respect of each contribution made under this Part, contribute cash in an amount that exceeds $20. C. 9 Return of contributions 405.4 If a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant receives a contribution made in contravention of subsection 405(1) or 405.2(4) or section 405.3 or 405.31, the chief agent of the registered party, the financial agent of the registered association, the official agent of the candidate or the financial agent of the leadership contestant or nomination contestant, as the case may be, shall, within 30 days after becoming aware of the contravention, return the contribution unused to the contributor, or, if that is not possible, pay the amount of it or, in the case of a non-monetary contribution, an amount of money equal to its commercial value, to the Chief Electoral Officer who shall forward that amount to the Receiver General. 2003, c. 19, s. 35 50. Section 425 of the Act is replaced by the following: When contributions forwarded to Receiver General 425. A registered agent of a registered party shall, without delay, pay an amount of money equal to the value of a contribution received by the registered party, to the Chief Electoral Officer, who shall forward it to the Receiver General, if the name of the contributor of a contribution of more than $20, or the name or the address of the contributor having made contributions of a total amount of more than $200, is not known. 2003, c. 19, s. 40 51. Section 435.32 of the Act is replaced by the following: When contributions forwarded to Receiver General 435.32 The financial agent of a leadership contestant shall, without delay, pay an amount of money equal to the value of a contribution that the contestant received to the Chief Electoral Officer, who shall forward it to the Receiver General, if the name of the contributor of a contribution of more than $20, or the name or the address of the contributor having made contributions of a total amount of more than $200, is not known. 2003, c. 19, ss. 44(3) and (4) 52. (1) Paragraphs 451(2)(f) to (h.1) of the Act are replaced by the following: Accoun (f) a statement of contributions received; (g) the number of contributors; Respon (h) the name and address of each contributor who made contributions of a total amount of more than $200 to the candidate, that total amount, as well as the amount of each such contribution and the date on which it was received by the candidate; 2003, c. 19, s. 44(6) (2) Subsection 451(2.1) of the Act is replaced by the following: Supporting documents (2.1) Together with the electoral campaign return, the official agent of a candidate shall provide to the Chief Electoral Officer documents evidencing expenses set out in the return, including bank statements, deposit slips, cancelled cheques and the candidate’s written statement concerning personal expenses referred to in subsection 456(1). 2003, c. 19, s. 45 53. Section 452 of the Act is replaced by the following: When contributions forwarded to Receiver General 452. An official agent of a candidate shall, without delay, pay an amount of money equal to the value of a contribution that the candidate received to the Chief Electoral Officer, who shall forward it to the Receiver General, if the name of the contributor of a contribution of more than $20, or the name or the address of the contributor having made contributions of a total amount of more than $200, is not known. 2003, c. 19, s. 57 54. (1) Paragraphs 478.23(2)(d) to (g) of the Act are replaced by the following: (d) a statement of contributions received; (e) the number of contributors; (f) the name and address of each contributor who made contributions of a total amount of more than $200 to the nomination contestant, that total amount, as well as the amount of each such contribution and the date on which it was received by the contestant; 2003, c. 19, s. 57 (2) Subsection 478.23(3) of the Act is replaced by the following: Supporting documents (3) Together with the nomination campaign return, the financial agent of a nomination contestant shall provide to the Chief Electoral Officer documents evidencing expenses set out in the return, including bank statements, deposit C. 9 Accoun slips, cancelled cheques and the contestant’s written statement concerning personal expenses referred to in subsection 478.31(1). 2003, c. 19, s. 57 55. Section 478.24 of the Act is replaced by the following: When contributions forwarded to Receiver General 478.24 The financial agent of a nomination contestant shall, without delay, pay an amount of money equal to the value of a contribution received by the contestant to the Chief Electoral Officer, who shall forward it to the Receiver General, if the name of the contributor of a contribution of more than $20, or the name or the address of the contributor having made contributions of a total amount of more than $200, is not known. 56. (1) Subsection 486(1) of the Act is replaced by the following: Strict liability offences — summary conviction 486. (1) Every candidate who contravenes subsection 83(1) (failure to appoint official agent) or 83(2) (failure to appoint auditor), section 87 (failure to appoint a replacement official agent or auditor), subsection 92.2(1) (accepting prohibited gift or other advantage) or 92.2(5) (failure to provide statement within required period) or paragraph 92.6(b) (providing incomplete statement) is guilty of an offence. (2) Subsection 486(3) of the French version of the Act is replaced by the following: Infraction exigeant une intention — double procédure (3) Commet une infraction : a) quiconque contrevient à l’article 89 (signature d’un acte de candidature par une personne inéligible); b) quiconque contrevient volontairement aux paragraphes 90(1) ou (2) (agir comme agent officiel ou vérificateur d’un candidat sans être admissible); c) quiconque contrevient à l’article 91 (fausse déclaration à propos d’un candidat); d) quiconque contrevient à l’article 92 (publication d’une fausse déclaration relative à un désistement). Respon (3) Subsection 486(3) of the Act is amended by striking out the word “or” at the end of paragraph (c) and by adding the following after paragraph (d): (e) being a candidate, wilfully contravenes subsection 92.2(1) (accepting prohibited gift or other advantage); (f) being a candidate, wilfully contravenes subsection 92.2(5) (failure to provide statement within required period); or (g) being a candidate, contravenes paragraph 92.6(a) (providing statement containing false or misleading information) or knowingly contravenes paragraph 92.6(b) (providing incomplete statement). 2003, s. 19, s. 58(3) 57. (1) Paragraph 497(1)(i.6) of the Act is replaced by the following: (i.6) being an individual, contravenes section 405.3 (making indirect contributions); 2003, c. 19, s. 58(11) (2) Paragraphs 497(3)(f.17) and (f.18) of the Act are replaced by the following: (f.17) being an individual, wilfully contravenes section 405.3 (making indirect contributions); (f.18) being an individual, wilfully contravenes section 405.31 (exceeding cash contribution limit); 58. Subsection 502(2) of the Act is amended by adding the following after paragraph (f): (f.1) being a candidate, wilfully contravenes subsection 92.2(1) (accepting prohibited gift or other advantage); 2003, c. 19, s. 63(1) 59. Subsection 514(1) of the Act is replaced by the following: Limitation period 514. (1) A prosecution for an offence under this Act may be instituted at any time but not later than five years after the day on which the Commissioner became aware of the facts giving rise to the prosecution but, in any case, not later than 10 years after the day on which the offence was committed. C. 9 Accoun Transitional Provisions Transitional — Registered associations 60. Sections 403.35 and 403.36 of the Canada Elections Act, as they read immediately before the coming into force of this section, apply with respect to the documents that a registered association must provide in relation to the fiscal period ending after the coming into force of this section. Transitional — Candidates 61. If a candidate was, before the coming into force of this section, deemed under section 365 of the Canada Elections Act to have been a candidate, then section 451 of that Act, as it read immediately before the coming into force of this section, applies with respect to the documents that the official agent of the candidate must provide in relation to the election next following the coming into force of this section. Transitional — Nomination campaigns 62. If a nomination contestant was, before the coming into force of this section, deemed under section 478.03 of the Canada Elections Act to have been a nomination contestant, then section 478.23 of that Act, as it read immediately before the coming into force of this section, applies with respect to the documents that the financial agent of the nomination contestant must provide in relation to the nomination campaign of that contestant. Consequential Amendments R.S., c. 1 (5th Supp.) Income Tax Act 63. Subparagraph 98.1(1)(d)(i) of the Income Tax Act is replaced by the following: (i) by reason of paragraph (b), the taxpayer shall, except for the purposes of subsections 110.1(4) and 118.1(8), be deemed not to be a member of the partnership, and 64. (1) The portion of subsection 127(4.1) of the Act before paragraph (a) is replaced by the following: Respon 2006 Monetary contributions — form and content (4.1) For the purpose of subsections (3) and (3.1), a monetary contribution made by a taxpayer may be in the form of cash or of a negotiable instrument issued by the taxpayer. However, it does not include (2) Subsection 127(4.2) of the Act is repealed. R.S., c. 44 (4th Supp.) LOBBYISTS REGISTRATION ACT Amendments to Act 65. The long title of the Lobbyists Registration Act is replaced by the following: An Act respecting lobbying 66. Section 1 of the Act is replaced by the following: Short title 1. This Act may be cited as the Lobbying Act. 67. (1) The definition “registrar” in subsection 2(1) of the Act is repealed. (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “designated public office holder” « titulaire d’une charge publique désignée » “designated public office holder” means (a) a minister of the Crown or a minister of state and any person employed in his or her office who is appointed under subsection 128(1) of the Public Service Employment Act, (b) any other public office holder who, in a department within the meaning of paragraph (a), (a.1) or (d) of the definition “department” in section 2 of the Financial Administration Act, (i) occupies the senior executive position, whether by the title of deputy minister, chief executive officer or by some other title, or (ii) is an associate deputy minister or an assistant deputy minister or occupies a position of comparable rank, and C. 9 Accoun (c) any individual who occupies a position that has been designated by regulation under paragraph 12(c.1). (3) Section 2 of the Act is amended by adding the following after subsection (2): Transition team (3) Any person identified by the Prime Minister as having had the task of providing support and advice to him or her during the transition period leading up to the swearing in of the Prime Minister and his or her ministry is subject to this Act, except subsections 10.11(2) to (4), as if the person were a designated public office holder during that period. 68. The Act is amended by adding the following after section 4: OFFICE OF THE COMMISSIONER OF LOBBYING COMMISSIONER OF LOBBYING Commissioner of Lobbying 4.1 (1) The Governor in Council shall, by commission under the Great Seal, appoint a Commissioner of Lobbying after consultation with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and House of Commons. Tenure of office and removal (2) Subject to this section, the Commissioner holds office during good behaviour for a term of seven years, but may be removed for cause by the Governor in Council at any time on address of the Senate and House of Commons. Further terms (3) The Commissioner, on the expiry of a first or any subsequent term of office, is eligible to be reappointed for a further term not exceeding seven years. Interim appointment (4) In the event of the absence or incapacity of the Commissioner, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. Respon 2006 Rank and powers 4.2 (1) The Commissioner has the rank and powers of a deputy head of a department, shall engage exclusively in the duties of the office of Commissioner under this Act or any other Act of Parliament and shall not hold any other office or employment for reward. Duties and functions (2) The Commissioner’s duties and functions, in addition to those set out elsewhere in this Act, include developing and implementing educational programs to foster public awareness of the requirements of this Act, particularly on the part of lobbyists, their clients and public office holders. Remuneration and expenses (3) The Commissioner shall be paid the remuneration and expenses set by the Governor in Council. Pension benefits (4) The provisions of the Public Service Superannuation Act, other than those relating to tenure of office, apply to the Commissioner, except that a person appointed as Commissioner from outside the public service, as defined in the Public Service Superannuation Act, may, by notice in writing given to the President of the Treasury Board not more than 60 days after the date of appointment, elect to participate in the pension plan provided in the Diplomatic Service (Special) Superannuation Act, in which case the provisions of that Act, other than those relating to tenure of office, apply to the Commissioner from the date of appointment and the provisions of the Public Service Superannuation Act do not apply. Other benefits (5) The Commissioner is deemed to be employed in the federal public administration for the purposes of the Government Employees Compensation Act and any regulations made under section 9 of the Aeronautics Act. STAFF Staff of the Commissioner 4.3 (1) Any officers and employees that are necessary to enable the Commissioner to perform the duties and functions of the Commissioner under this Act or any other Act of Parliament shall be appointed in accordance with the Public Service Employment Act. Technical assistance (2) The Commissioner may engage on a temporary basis the services of persons having technical or specialized knowledge of any C. 9 Accoun matter relating to the work of the Commissioner to advise and assist the Commissioner in the performance of the duties and functions of the Commissioner under this Act or any other Act of Parliament and, with the approval of the Treasury Board, may fix and pay the remuneration and expenses of those persons. DELEGATION Delegation by Commissioner 4.4 The Commissioner may authorize any person to exercise or perform, subject to any restrictions or limitations that the Commissioner may specify, any of the powers, duties or functions of the Commissioner under this Act except (a) the power to delegate under this section; and (b) those set out in subsections 10(1), 10.2(1), 10.5(1) and sections 11, 11.1, 14.01 and 14.02. 2003, c. 10, s. 4(1) 69. (1) Subsections 5(1.1) to (1.3) of the Act are replaced by the following: Time limit for filing return (1.1) An individual shall file the return referred to in subsection (1) not later than 10 days after entering into the undertaking. 2003, c. 10, s. 4(4)(F) (2) Paragraph 5(2)(g) of the Act is replaced by the following: (g) the fact that the undertaking does not provide for any payment that is in whole or in part contingent on the outcome of any matter described in subparagraphs (1)(a)(i) to (vi) or on the individual’s success in arranging a meeting referred to in paragraph (1)(b); 2003, c. 10, s. 4(5) (3) Paragraph 5(2)(h.1) of the Act is replaced by the following: (h.1) if the individual is a former public officer holder, a description of the offices held, which of those offices, if any, qualified the individual as a designated public office holder and the date on which the individual last ceased to hold such a designated public office; 1995, c. 12, s. 3 (4) Subsection 5(3) of the Act is replaced by the following: Respon 2006 Requirement to file monthly return (3) The individual shall file a return, in the prescribed form and manner, not later than 15 days after the end of every month, beginning with the one in which the return is filed under subsection (1), that (a) sets out, with respect to every communication referred to in paragraph (1)(a) that is of a prescribed type and that was made in that month involving a designated public office holder and relating to the undertaking, (i) the name of the designated public office holder who was the object of the communication, (ii) the date of the communication, (iii) particulars, including any prescribed particulars, to identify the subject-matter of the communication, and (iv) any other information that is prescribed; (b) if any information contained in the return filed under subsection (1) is no longer correct or additional information that the individual would have been required to provide under that subsection has come to the knowledge of the individual after the return was filed, provides the corrected or additional information; and (c) if the undertaking has been performed or terminated, advises the Commissioner of that fact. First monthly return (4) The first return filed under subsection (3) shall, despite paragraph (3)(a), set out the information required by that paragraph in respect of communications made between the day on which the undertaking referred to in subsection (1) was entered into and the end of the month immediately before the filing of the return. Exception (4.1) Subject to subsection (4.2), no return is required under subsection (3) if no communication referred to in paragraph (3)(a) was made during the period with respect to which the return is to set out information, and if the circumstances referred to in paragraphs (3)(b) and (c) have not arisen. C. 9 Return — sixmonth period (4.2) In any case, no more than five months shall have elapsed since the end of the month in which a return was last filed without a return being filed by the individual under subsection (3), even if, since the last return, no communication was made as referred to in paragraph (3)(a) and the circumstances referred to in paragraphs (3)(b) and (c) have not arisen, in which case the report shall so state. Termination of reporting obligation (4.3) The obligation to file a return under subsection (3) terminates when the undertaking has been performed or is terminated and a report has been filed under that subsection advising of that fact in accordance with paragraph (3)(c). 2003, c. 10, s. 4(7) (5) Subsection 5(7) of the Act is replaced by the following: For greater certainty (7) For greater certainty, an individual who undertakes to communicate with a public office holder as described in paragraph (1)(a) is not required to file more than one return under subsection (1) with respect to the undertaking, even though the individual, in connection with that undertaking, communicates with more than one public office holder or communicates with one or more public office holders on more than one occasion. 2003, c. 10, s. 7(1) 70. (1) Subsections 7(2) and (2.1) of the Act are replaced by the following: Time limit for filing return (2) The officer responsible for filing returns shall file a return not later than two months after the day on which the requirement to file a return first arises under subsection (1). 2003, c. 10, s. 7(1) (2) Paragraphs 7(3)(f.1) to (h.3) of the Act are replaced by the following: Accoun (f.1) if the employer is a corporation, (i) a list including the name of each senior officer or employee a significant part of whose duties is as described in paragraph (1)(a), and (ii) a second list including the name of each other senior officer any part of whose duties is as described in paragraph (1)(a) but without constituting a significant part; Respon (g) particulars to identify the subject-matter of any communication that any employee named in the return has made or is expected to make with a public office holder in respect of any matter described in subparagraphs (1)(a)(i) to (v) and any other information respecting that subject-matter that is prescribed; (h) if any employee named in the return is a former public office holder, a description of the offices held, which of those offices, if any, qualified the employee as a designated public office holder and the date on which the employee last ceased to hold such a designated public office; 2003, c. 10, s. 7(1) (3) Paragraphs 7(3)(j) and (k) of the Act are replaced by the following: (j) the name of any department or other governmental institution in which any public office holder with whom any employee named in the return communicates or is expected to communicate in respect of any matter described in subparagraphs (1)(a)(i) to (v) is employed or serves; (k) particulars to identify any communication technique, including grass-roots communication within the meaning of paragraph 5(2)(j), that any employee named in the return uses or is expected to use in connection with any communication in respect of any matter described in subparagraphs (1)(a)(i) to (v); and 2003, c. 10, s. 7(1) (4) Subsection 7(4) of the Act is replaced by the following: Requirement to file monthly return (4) The officer responsible for filing returns shall file a return, in the prescribed form and manner, not later than 15 days after the end of every month, beginning with the one in which the return is filed under subsection (1), that (a) sets out, with respect to every communication referred to in paragraph (1)(a) that is of a prescribed type and that was made in that month involving a designated public office holder, C. 9 Accoun (i) the name of the designated public office holder who was the object of the communication, (ii) the date of the communication, (iii) particulars, including any prescribed particulars, to identify the subject-matter of the communication, and (iv) any other information that is prescribed; (b) if any information contained in the return filed under subsection (1) is no longer correct or additional information that the officer would have been required to provide under that subsection has come to the knowledge of the officer after the return was filed, provides the corrected or additional information; and (c) if the employer no longer employs any employees whose duties are as described in paragraphs (1)(a) and (b), advises the Commissioner of that fact. First monthly return (4.1) The first return filed under subsection (4) shall, despite paragraph (4)(a), set out the information required by that paragraph in respect of communications made between the day on which the requirement to file a return first arose under subsection (1) and the end of the month immediately before the filing of the return. Exception (4.2) Subject to subsection (4.3), no return is required under subsection (4) if no communication referred to in paragraph (4)(a) was made during the period with respect to which the return is to set out information and if the circumstances referred to in paragraphs (4)(b) and (c) have not arisen. Return — sixmonth period (4.3) In any case, no more than five months shall have elapsed since the end of the month in which a return was last filed without a return being filed under subsection (4), even if, since the last return, no communication was made as referred to in paragraph (4)(a) and the circumstances referred to in paragraphs (4)(b) and (c) have not arisen, in which case the report shall so state. Respon 2006 Termination of reporting obligation (4.4) The obligation to file a return under subsection (4) terminates when the employer no longer employs any employees whose duties are as described in paragraphs (1)(a) and (b) and a report has been filed under that subsection advising of that fact in accordance with paragraph (4)(c). 71. Section 8 of the Act is repealed. 1995, c. 12, s. 5 72. (1) Subsection 9(1) of the Act is replaced by the following: Registry 9. (1) The Commissioner shall establish and maintain a registry in which shall be kept a record of all returns and other documents submitted to the Commissioner under this Act and of any information sent under subsection 9.1(1) and responses provided relative to that information. (2) Section 9 of the Act is amended by adding the following after subsection (3): Clarifications and corrections (3.1) Every individual who is required to submit returns or other documents referred to in subsection (1), or to provide responses referred to in that subsection, shall provide in the prescribed time, manner and form any clarification or correction to them that the Commissioner requires. 73. The Act is amended by adding the following after section 9: Confirmation of lobbying activity information 9.1 (1) The Commissioner may send to any present or former designated public office holder information derived from that referred to in paragraph 5(3)(a) or 7(4)(a) and provided in returns filed under subsection 5(3) or 7(4) in order that the office holder — in the prescribed time, manner and form — confirm to the Commissioner its accuracy and completeness or correct and complete it. Report (2) The Commissioner may, in a report under section 11 or 11.1, report on the failure by a present or former designated public office holder to respond relative to information sent under subsection (1) or the provision by such a person of an unsatisfactory response. C. 9 2004, c. 7, s. 20 74. Subsection 10(1) of the Act is replaced by the following: Interpretation bulletins 10. (1) The Commissioner may issue advisory opinions and interpretation bulletins with respect to the enforcement, interpretation or application of this Act other than under sections 10.2 to 10.5. Accoun 75. The Act is amended by adding the following after section 10: LOBBYISTS’ REMUNERATION Prohibition — lobbyist 10.1 (1) An individual who is required to file a return under subsection 5(1) shall not receive any payment that is in whole or in part contingent on the outcome of any matter described in subparagraphs 5(1)(a)(i) to (vi) or on the individual’s success in arranging a meeting referred to in paragraph 5(1)(b). Prohibition — client (2) The client of an individual referred to in subsection (1) shall not make any such payment to the individual. RESTRICTION ON LOBBYING ACTIVITY Five-year prohibition — lobbying 10.11 (1) No individual shall, during a period of five years after the day on which the individual ceases to be a designated public office holder, (a) carry on any of the activities referred to in paragraph 5(1)(a) or (b) in the circumstances referred to in subsection 5(1); (b) if the individual is employed by an organization, carry on any of the activities referred to in paragraph 7(1)(a) on behalf of that organization; and (c) if the individual is employed by a corporation, carry on any of the activities referred to in paragraph 7(1)(a) on behalf of that corporation if carrying on those activities would constitute a significant part of the individual’s work on its behalf. Exception (2) Subsection (1) does not apply in respect of any designated public office that was held only because the individual participated in an employment exchange program. Respon 2006 Exemption (3) On application, the Commissioner of Lobbying may, on any conditions that the Commissioner specifies, exempt an individual from the application of subsection (1) if the Commissioner is of the opinion that the exemption would not be contrary to the purposes of this Act having regard to any circumstance or factor that the Commissioner considers relevant, including whether the individual (a) was a designated public office holder for a short period; (b) was a designated public office holder on an acting basis; (c) was employed under a program of student employment; or (d) had administrative duties only. Publication (4) The Commissioner shall without delay cause every exemption and the Commissioner’s reasons for it to be made available to the public. Application for exemption 10.12 (1) Any person who is subject to this Act as if they were a designated public office holder by reason of subsection 2(3), may apply to the Commissioner for an exemption from section 10.11. Commissioner may exempt (2) The Commissioner may, on any conditions that the Commissioner specifies, exempt the person from the application of section 10.11 having regard to any circumstance or factor that the Commissioner considers relevant, including the following: (a) the circumstances under which the person left the functions referred to in subsection 2(3); (b) the nature, and significance to the Government of Canada, of information that the person possessed by virtue of the functions referred to in subsection 2(3); (c) the degree to which the person’s new employer might gain unfair commercial advantage by hiring the person; (d) the authority and influence that the person possessed while having the functions referred to in subsection 2(3); and C. 9 Accoun (e) the disposition of other cases. Publication (3) The Commissioner shall without delay cause every exemption and the Commissioner’s reasons for it to be made available to the public. Audit (4) The Commissioner may verify the information contained in any application under subsection (1). 76. The Act is amended by adding the following before section 10.4: INVESTIGATIONS 2004, c. 7, s. 23 and par. 39(3)(a) 77. (1) Subsections 10.4(1) and (2) of the Act are replaced by the following: Investigation 10.4 (1) The Commissioner shall conduct an investigation if he or she has reason to believe, including on the basis of information received from a member of the Senate or the House of Commons, that an investigation is necessary to ensure compliance with the Code or this Act, as applicable. Exception (1.1) The Commissioner may refuse to conduct or may cease an investigation with respect to any matter if he or she is of the opinion that (a) the matter is one that could more appropriately be dealt with according to a procedure provided for under another Act of Parliament; (b) the matter is not sufficiently important; (c) dealing with the matter would serve no useful purpose because of the length of time that has elapsed since the matter arose; or (d) there is any other valid reason for not dealing with the matter. Powers of investigation (2) For the purpose of conducting the investigation, the Commissioner may (a) in the same manner and to the same extent as a superior court of record, (i) summon and enforce the attendance of persons before the Commissioner and compel them to give oral or written evidence on oath, and Respon (ii) compel persons to produce any documents or other things that the Commissioner considers relevant for the investigation; and (b) administer oaths and receive and accept information, whether or not it would be admissible as evidence in a court of law. 2003, c. 10, ss. 10(2) and (3); 2004, c. 7, s. 23 and par. 39(3)(b) and (c) (2) The portion of section 10.4 of the Act after subsection (5) is replaced by the following: Confidentiality (6) The Commissioner, and every person acting on behalf of or under the direction of the Commissioner, may not disclose any information that comes to their knowledge in the performance of their duties and functions under this section, unless (a) the disclosure is, in the opinion of the Commissioner, necessary for the purpose of conducting an investigation under this section or establishing the grounds for any findings or conclusions contained in a report under section 10.5; (b) the information is disclosed in a report under section 10.5 or in the course of a prosecution for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made to the Commissioner; or (c) the Commissioner believes on reasonable grounds that the disclosure is necessary for the purpose of advising a peace officer having jurisdiction to investigate an alleged offence under this or any other Act of Parliament or of the legislature of a province. Advice to peace officers (7) If, during an investigation under this section, the Commissioner believes on reasonable grounds that a person has committed an offence under this or any other Act of Parliament or of the legislature of a province, the Commissioner shall advise a peace officer having jurisdiction to investigate the alleged offence and immediately suspend the Commissioner’s investigation. C. 9 Suspension of investigation (8) The Commissioner shall immediately suspend an investigation under this section if he or she discovers that the subject-matter of the investigation is also the subject-matter of an investigation to determine whether an offence under this or any other Act of Parliament or of the legislature of a province has been committed or that a charge has been laid with respect to that subject-matter. Investigation continued (9) The Commissioner may not continue an investigation under this section until any investigation or charge regarding the same subject-matter has been finally disposed of. 2004, c. 7, ss. 23, 24 and 39(4) 78. Sections 10.5 to 11 of the Act are replaced by the following: Report on investigation 10.5 (1) After conducting an investigation, the Commissioner shall prepare a report of the investigation, including the findings, conclusions and reasons for the Commissioner’s conclusions, and submit it to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides forthwith after receiving it or, if that House is not then sitting, on any of the first fifteen days on which that House is sitting after the Speaker receives it. Contents of report (2) The report may contain details of any payment received, disbursement made or expense incurred by an individual who is required to file a return under subsection 5(1) or by an employee who, in accordance with paragraph 7(3)(f) or (f.1), is named in a return filed under subsection 7(1), in respect of any matter referred to in any of subparagraphs 5(1)(a)(i) to (vi) or 7(1)(a)(i) to (v), as the case may be, or of any payment made by the client of an individual who is required to file a return under subsection 5(1) in respect of any matter referred to in any of subparagraphs 5(1)(a)(i) to (vi), any communication referred to in paragraph 5(1)(a) or any meeting referred to in paragraph 5(1)(b), if the Commissioner considers publication of the details to be in the public interest. Accoun Respon 2006 REPORTS TO PARLIAMENT Annual report 11. The Commissioner shall, within three months after the end of each fiscal year, prepare a report with regard to the administration of this Act during that fiscal year and submit the report to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides forthwith after receiving it or, if that House is not then sitting, on any of the first fifteen days on which that House is sitting after the Speaker receives it. Special reports 11.1 (1) The Commissioner may, at any time, prepare a special report concerning any matter within the scope of the powers, duties and functions of the Commissioner if, in the opinion of the Commissioner, the matter is of such urgency or importance that a report on it should not be deferred until the next annual report. Tabling of special report (2) The Commissioner shall submit the special report to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides forthwith after receiving it or, if that House is not then sitting, on any of the first fifteen days on which that House is sitting after the Speaker receives it. 79. Section 12 of the Act is amended by adding the following after paragraph (c): (c.1) designating, individually or by class, any position occupied by a public office holder as a position occupied by a designated public office holder for the purposes of paragraph (c) of the definition “designated public office holder” in subsection 2(1) if, in the opinion of the Governor in Council, doing so is necessary for the purposes of this Act; 1995, c. 12, s. 7 80. Section 14 of the Act is replaced by the following: Contravention 14. (1) Every individual who fails to file a return as required under subsection 5(1) or (3) or 7(1) or (4), or knowingly makes any false or misleading statement in any return or other document submitted to the Commissioner under C. 9 Accoun this Act or in any response provided relative to information sent under subsection 9.1(1), whether in electronic or other form, is guilty of an offence and liable (a) on summary conviction, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding six months, or to both; and (b) on proceedings by way of indictment, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding two years, or to both. Other contraventions (2) Every individual who contravenes any provision of this Act — other than subsections 5(1) and (3), 7(1) and (4) and 10.3(1) — or the regulations is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000. Limitation (3) Proceedings by way of summary conviction in respect of an offence under this section may be instituted at any time within but not later than five years after the day on which the Commissioner became aware of the subjectmatter of the proceedings but, in any case, not later than ten years after the day on which the subject-matter of the proceedings arose. Prohibition on communication 14.01 If a person is convicted of an offence under this Act, the Commissioner may — if satisfied that it is necessary in the public interest, taking into account the gravity of the offence and whether the offence was a second or subsequent offence under this Act — prohibit for a period of not more than two years the person who committed the offence from effecting any communication described in paragraph 5(1)(a) or 7(1)(a) or arranging a meeting referred to in paragraph 5(1)(b). Publication 14.02 The Commissioner may make public the nature of the offence, the name of the person who committed it, the punishment imposed and, if applicable, any prohibition under section 14.01. Replacement of references 81. The Act is amended by replacing “registrar” with “Commissioner” wherever it occurs in the following provisions: (a) subsections 5(1) and (5); Respon 2006 (b) subsections 7(1) and (5); (c) sections 7.1 to 7.3; (d) subsections 9(2) to (4); (e) section 10.2; (f) section 10.4; and (g) paragraphs 12(a) and (b). Terminology Replacement of references 82. Unless the context otherwise requires, any reference to the Lobbyists Registration Act is replaced by a reference to the Lobbying Act wherever it occurs in regulations, as defined in section 2 of the Statutory Instruments Act and in any other instrument made in the execution of a power conferred under an Act of Parliament or by order or under the authority of the Governor in Council. Transitional Provisions Reference to Act 83. In sections 84 to 88.2 of this Act, the “other Act” means, before the day on which section 66 of this Act comes into force, the Lobbyists Registration Act and, from that day, the Lobbying Act. Commissioner 84. (1) The person who holds the office of registrar immediately before the day on which section 68 of this Act comes into force is authorized to act as the Commissioner of Lobbying under the other Act until the appointment of a Commissioner under subsection 4.1(1) of the other Act — or of a person under subsection 4.1(4) of the other Act — as enacted by section 68 of this Act. Employees (2) The coming into force of section 68 of this Act does not affect the status of an employee — as defined in subsection 2(1) of the Public Service Employment Act — who occupied, immediately before the day on which that section 68 comes into force, a position in the Office of the Registrar of Lobbyists, except that the employee from that day occupies that position in the Office of the Commissioner of Lobbying. C. 9 Pending investigations 85. Any investigation by the registrar under the other Act that is pending immediately before the day on which section 77 of this Act comes into force may continue to be conducted by the Commissioner of Lobbying under the other Act. Transfer of appropriations 86. Any amount that is appropriated, for the fiscal year in which section 71 of this Act comes into force, by an appropriation Act based on the Estimates for that year for defraying the charges and expenses of the federal public administration for the former registrar designated under section 8 of the other Act, as it read before the day on which that section 71 comes into force, and that, on that day, is unexpended is deemed, on that day, to be an amount appropriated for defraying the charges and expenses of the Office of the Commissioner of Lobbying under the administration of the Commissioner of Lobbying referred to in subsection 4.1(1) of the other Act, as enacted by section 68 of this Act. Contingent payments 87. Section 10.1 of the other Act, as enacted by section 75 of this Act, does not apply with respect to any contingent payment that, on the day on which that section 75 comes into force, Accoun (a) was mentioned in a return in accordance with paragraph 5(2)(g) of the other Act as it read before the day on which subsection 69(2) of this Act comes into force; or (b) was provided for in an undertaking entered into before the day on which that section 75 comes into force but for which a return was neither filed nor yet required, under subsection 5(1.1) of the other Act as it read before the day on which subsection 69(1) of this Act comes into force, to be filed. Former designated public office holders 88. (1) For greater certainty, section 10.11 of the other Act, as enacted by section 75 of this Act, does not apply with respect to any ceasing to hold office or to be employed that is referred to in that section 10.11 and that occurred before the day on which that section 75 comes into force. Respon Assistant deputy ministers (2) Section 10.11 of the other Act, as enacted by section 75 of this Act, also does not apply in respect of any ceasing to be a designated public office holder with the rank of assistant deputy minister or any office of equivalent rank that occurs during the six months after the day on which that section 75 comes into force. Five-year prohibition — lobbying 88.1 (1) No individual who was a member of a transition team who ceased to carry out his or her functions as a transition team member after January 24, 2006 but before the coming into force of section 10.11 of the other Act, as enacted by section 75 of this Act, shall, during a period of five years after the day on which he or she ceased to carry out those functions (a) carry on any of the activities referred to in paragraph 5(1)(a) or (b) of the other Act in the circumstances referred to in subsection 5(1) of the other Act; (b) if the individual is employed by an organization, carry on any of the activities referred to in paragraph 7(1)(a) of the other Act on behalf of that organization; and (c) if the individual is employed by a corporation, carry on any of the activities referred to in paragraph 7(1)(a) of the other Act on behalf of that corporation if carrying on those activities would constitute a significant part of the individual’s work on its behalf. Exception (2) Subsection (1) does not apply to a member of a transition team in respect of any activities referred to in that subsection that were carried out before the day on which this Act is assented to. Contravention (3) Every individual who contravenes subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000. Limitation (4) Proceedings by way of summary conviction in respect of an offence under this section may be instituted at any time within but not later than five years after the day on which the registrar referred to in section 8 of C. 9 Accoun the other Act became aware of the subjectmatter of the proceedings but, in any case, not later than ten years after the day on which the subject-matter of the proceedings arose. Definition (5) For the purposes of this section, members of a transition team are those persons identified by the Prime Minister as having had the task of providing support and advice to him or her during the transition period leading up to the swearing in of the Prime Minister and his or her ministry. Application for exemption 88.11 (1) Any member of a transition team referred to in section 88.1 may apply to the Commissioner of Lobbying for an exemption from that section. Commissioner of Lobbying may exempt (2) The Commissioner of Lobbying may, on any conditions that the Commissioner of Lobbying specifies, exempt the member from the application of section 88.1 having regard to any circumstance or factor that the Commissioner of Lobbying considers relevant, including the following: (a) the circumstances under which the member left the functions referred to in subsection 88.1(5); (b) the nature, and significance to the Government of Canada, of information that the member possessed by virtue of the functions referred to in subsection 88.1(5); (c) the degree to which the member’s new employer might gain unfair commercial advantage by hiring the member; (d) the authority and influence that the member possessed while having the functions referred to in subsection 88.1(5); and (e) the disposition of other cases. Publication (3) The Commissioner of Lobbying shall without delay cause every exemption and the Commissioner of Lobbying’s reasons for it to be made available to the public. Audit (4) The Commissioner of Lobbying may verify the information contained in any application under subsection (1). Respon 2006 Publication 88.2 The registrar referred to in section 8 of the other Act may make public the nature of an offence committed under section 88.1, the name of the person who committed it and the punishment imposed. Consequential Amendments R.S., c. A-1 Access to Information Act 89. The Access to Information Act is amended by adding the following in numerical order: Records relating to investigations 16.2 (1) The Commissioner of Lobbying shall refuse to disclose any record requested under this Act that contains information that was obtained or created by the Commissioner or on the Commissioner’s behalf in the course of an investigation conducted by or under the authority of the Commissioner. Exception (2) However, the Commissioner shall not refuse under subsection (1) to disclose any record that contains information that was created by the Commissioner or on the Commissioner’s behalf in the course of an investigation conducted by, or under the authority of, the Commissioner once the investigation and all related proceedings, if any, are finally concluded. SOR/2006-34 90. Schedule I to the Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Registrar of Lobbyists Bureau du directeur des lobbyistes 91. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Commissioner of Lobbying Commissariat au lobbying R.S., c. F-11 SOR/2006-30; SOR/2006-31 Financial Administration Act 92. Schedule I.1 to the Financial Administration Act is amended by striking out the following in column I: Office of the Registrar of Lobbyists Bureau du directeur des lobbyistes C. 9 Accoun and the corresponding reference in column II to the “President of the Treasury Board”. 93. Schedule I.1 to the Act is amended by adding the following in alphabetical order in column I: Office of the Commissioner of Lobbying Commissariat au lobbying and a corresponding reference in column II to the “President of the Treasury Board”. SOR/2006-32 94. Schedule IV to the Act is amended by striking out the following: Office of the Registrar of Lobbyists Bureau du directeur des lobbyistes 95. Schedule IV to the Act is amended by adding the following in alphabetical order: Office of the Commissioner of Lobbying Commissariat au lobbying R.S., c. 31 (4th Supp.) Official Languages Act 96. Subsection 24(3) of the Official Languages Act is amended by striking out the word “and” at the end of paragraph (d), by adding the word “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) the Office of the Commissioner of Lobbying. R.S., c. P-21 Privacy Act SOR/2006-33 97. The schedule to the Privacy Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Registrar of Lobbyists Bureau du directeur des lobbyistes 98. The schedule to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Commissioner of Lobbying Commissariat au lobbying Respon 2006 R.S., c. P-1 PARLIAMENT OF CANADA ACT 99. The Parliament of Canada Act is amended by adding the following after section 41: Prohibition — accepting benefits from trusts relating to position 41.1 (1) No member of the House of Commons may, directly or indirectly, accept any benefit or income from a trust established by reason of his or her position as a member of the House of Commons. Anti-avoidance (2) No member of the House of Commons shall take any action that has as its purpose the circumvention of the prohibition referred to in subsection (1). Offence and punishment (3) Every member of the House of Commons who contravenes subsection (1) or (2) is guilty of an offence and liable on summary conviction to a fine of not less than $500 and not more than $2,000. Obligation to disclose trusts 41.2 (1) Every member of the House of Commons shall disclose to the Conflict of Interest and Ethics Commissioner every trust known to the member from which he or she could, currently or in the future, either directly or indirectly, derive a benefit or income. Manner of disclosure (2) The disclosure must be made in accordance with the provisions governing the disclosure of private interests in the Conflict of Interest Code for Members of the House of Commons set out in the Standing Orders of the House of Commons. Non-application of section 126 of the Criminal Code (3) Section 126 of the Criminal Code does not apply in respect of a contravention of subsection (1). Commissioner’s orders 41.3 (1) If a trust disclosed by a member of the House of Commons was established by the member or by a person who is not a relative of the member, the Conflict of Interest and Ethics Commissioner shall (a) if he or she is of the opinion that it is legally possible for the member to terminate the trust, order the member to terminate the trust and not to use any distribution of the assets on its termination for the purpose of C. 9 Accoun financing a nomination contest, a leadership contest or an electoral campaign within the meaning of the Canada Elections Act; or (b) if he or she is of the opinion that it is not legally possible for the member to terminate the trust, order the member not to derive any benefit or income from the trust for the purpose of financing a nomination contest, a leadership contest or an electoral campaign within the meaning of the Canada Elections Act. Commissioner’s orders (2) If a trust disclosed by a member was established by a relative of the member, the Conflict of Interest and Ethics Commissioner shall order the member not to derive any benefit or income from the trust, including any distribution of its assets on its termination, for the purpose of financing a nomination contest, a leadership contest or an electoral campaign within the meaning of the Canada Elections Act. Exceptions (3) Subsections (1) and (2) do not apply in respect of a trust that meets the requirements of subsection 27(4) of the Conflict of Interest Act or a trust that is governed by a registered retirement savings plan or a registered education savings plan. Cessation of order (4) No order made under this section has effect after the day on which the member to which the order relates ceases to be a member of the House of Commons and, for the purposes of this subsection, a person who was a member of the House of Commons immediately before the issue of a writ for the election of a new member in place of that person is deemed to continue to be a member of that House until the date of that election. Compliance measures under Conflict of Interest Act (5) If there is any inconsistency between an order made under this section and compliance measures required to be taken under the Conflict of Interest Act, the order prevails to the extent of the inconsistency. Offence and punishment (6) Every member of the House of Commons who contravenes an order made under this section is guilty of an offence and liable on summary conviction to a fine of not less than $500 and not more than $2,000. Respon 2006 Meaning of relative (7) Persons who are related to a member of the House of Commons by birth, marriage, common-law partnership, adoption or affinity are the member’s relatives for the purpose of this section unless the Conflict of Interest and Ethics Commissioner determines, either generally or in relation to a particular member, that it is not necessary for the purposes of this section that a person or class of persons be considered a relative of the member. Meaning of “common law partnership” (8) For the purpose of subsection (7), “common law partnership” means the relationship between two persons who are cohabiting in a conjugal relationship, having so cohabited for a period of at least one year. Notification of Committee 41.4 (1) Any person, including the Conflict of Interest and Ethics Commissioner, who has reasonable grounds to believe that an offence has been committed under section 41.1 shall, in writing, notify the Committee of the House of Commons designated to consider such matters. Opinion of Committee (2) The Committee may issue its opinion with respect to the notification within 30 sitting days of the House of Commons after being notified. Order to be provided to Committee 41.5 (1) The Conflict of Interest and Ethics Commissioner shall provide any order made under section 41.3 to a Committee of the House of Commons designated to consider whether a member has contravened an order of the Commissioner. Issuance of opinion (2) The Committee may issue its opinion with respect to the order within 30 sitting days of the House of Commons after being provided with the order. 2003, c. 22, ss. 12 and 13 PUBLIC SERVICE EMPLOYMENT ACT Amendments to Act 100. Paragraph 22(2)(a) of the Public Service Employment Act is replaced by the following: (a) establishing for any person or class of persons a right to be appointed — in priority to all persons other than those referred to in section 40 and subsections 41(1) and (4) — C. 9 Accoun during the period specified by the Commission, to any position for which the Commission is satisfied that they meet the essential qualifications referred to in paragraph 30(2)(a); 101. The Act is amended by adding the following after section 35.1: Mobility — ministers’ staffs 35.2 A person who has been employed for at least three years in the office of a minister or of a person holding the recognized position of Leader of the Opposition in the Senate or Leader of the Opposition in the House of Commons, or in any of those offices successively, (a) may, during a period of one year after they cease to be so employed, participate in an advertised appointment process for which the organizational criterion established under section 34 entitles all employees to be considered, as long as they meet the other criteria, if any, established under that section; and (b) has the right to make a complaint under section 77. Parliamentary employees 35.3 A person employed in the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer or office of the Conflict of Interest and Ethics Commissioner (a) may participate in an advertised appointment process for which the organizational criterion established under section 34 entitles all employees to be considered, as long as the person meets the other criteria, if any, established under that section; and (b) has the right to make a complaint under section 77. 102. Section 38 of the Act is replaced by the following: Exceptions to merit 38. Paragraph 30(2)(b) does not apply in relation to any appointment made under subsection 15(6) (re-appointment on revocation by deputy head), section 40 (priorities — surplus employees), subsection 41(1) or (4) (other priorities) or section 73 (re-appointment on revocation by Commission) or 86 (re-appoint2006 Respon ment following Tribunal order), or under any regulations made pursuant to paragraph 22(2)(a). 103. (1) Subsections 41(2) and (3) of the Act are repealed. (2) Subsections 41(5) and (6) of the Act are replaced by the following: Essential qualifications (5) The priority of a person referred to in subsection (1) or (4) applies with respect to any position if the Commission is satisfied that the person meets the essential qualifications referred to in paragraph 30(2)(a). Order of priorities (6) Persons described in subsection (1) shall be appointed in priority to persons described in subsection (4), and persons described in each of those subsections shall be appointed in the order determined by the Commission. 104. Subsection 53(2) of the Act is replaced by the following: Exceptions to priority rights (2) A deputy head may deploy a person without regard to any other person’s right to be appointed under subsection 41(1) or (4) or any regulations made pursuant to paragraph 22(2)(a). 105. Section 87 of the Act is replaced by the following: Where no right to complain 87. No complaint may be made under section 77 in respect of an appointment under subsection 15(6) (re-appointment on revocation by deputy head), section 40 (priorities — surplus employees), subsection 41(1) or (4) (other priorities) or section 73 (re-appointment on revocation by Commission) or 86 (re-appointment following Tribunal order), or under any regulations made pursuant to paragraph 22(2)(a). 106. The Act is amended by adding the following after section 127: C. 9 Accoun DEPUTY MINISTERS AND OTHER SENIOR OFFICIALS Appointment by Governor in Council 127.1 (1) The Governor in Council may appoint persons to the following positions and fix their remuneration: (a) deputy minister, associate deputy minister and positions of equivalent ranks; (b) deputy head, associate deputy head and positions of equivalent ranks; and (c) special adviser to a minister. Application of Part 7 (2) For greater certainty, the provisions of Part 7 applicable to deputy heads apply to persons appointed as such or as deputy ministers under subsection (1), and the provisions of that Part applicable to employees apply to other persons appointed under subsection (1). Transitional Provision Employees of ministers’ offices 107. A person referred to in subsection 41(2) or (3) of the Public Service Employment Act, as it read on the coming into force of subsection 103(1) of this Act, shall continue to be given priority for appointment in accordance with subsection 41(2) or (3), as the case may be, for a period of one year following the day on which the person ceased to be employed if that day is prior to the coming into force of this section. COMING INTO FORCE Order in council 108. (1) The provisions of the Conflict of Interest Act, as enacted by section 2 of this Act, sections 3 to 34 of this Act and any provisions enacted or repeals effected by those sections come into force on a day or days to be fixed by order of the Governor in Council. Order in council (2) Notwithstanding subsection 114(4) of the Canada Pension Plan, the provisions of the Conflict of Interest Act, as enacted by section 2 of this Act, come into force as provided under subsection (1) but do not apply in respect of the Canada Pension Plan Investment Board unless the lieutenant governor in council of each of at least two thirds Respon of the included provinces, within the meaning of subsection 114(1) of the Canada Pension Plan, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to those provisions. Coming into force (3) Sections 39 and 40, subsections 44(1) and (2) and sections 56 and 58 come into force six months after the day on which this Act receives royal assent. Coming into force (4) Sections 41 to 43, subsections 44(3) and (4) and sections 45 to 55, 57 and 60 to 64 come into force or are deemed to have come into force on January 1, 2007. Coming into force (4.1) Sections 63 and 64 come into force or are deemed to have come into force on January 1, 2007, but do not apply in respect of monetary contributions made before that day. Order in council (5) Sections 65 to 82, 84 to 88 and 89 to 98 come into force on a day or days to be fixed by order of the Governor in Council. Coming into force (6) Section 99 of this Act comes into force on the day on which section 81 of the Parliament of Canada Act, as enacted by section 28 of this Act, comes into force. PART 2 SUPPORTING PARLIAMENT R.S., c. A-1 ACCESS TO INFORMATION ACT 109. (1) Subsections 54(1) and (2) of the Access to Information Act are replaced by the following: Appointment 54. (1) The Governor in Council shall, by commission under the Great Seal, appoint an Information Commissioner after consultation with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and House of Commons. Tenure (2) Subject to this section, the Information Commissioner holds office during good behaviour for a term of seven years, but may be C. 9 Accoun removed for cause by the Governor in Council at any time on address of the Senate and House of Commons. (2) Subsection 54(4) of the Act is replaced by the following: Interim appointment (4) In the event of the absence or incapacity of the Information Commissioner, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. R.S., c. A-17 AUDITOR GENERAL ACT 110. (1) Subsections 3(1) and (2) of the Auditor General Act are replaced by the following: Appointment 3. (1) The Governor in Council shall, by commission under the Great Seal, appoint an Auditor General of Canada after consultation with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and House of Commons. Tenure (1.1) The Auditor General holds office during good behaviour for a term of 10 years but may be removed for cause by the Governor in Council on address of the Senate and House of Commons. Ceasing to hold office (2) Despite subsections (1) and (1.1), the Auditor General ceases to hold office on reaching 65 years of age. (2) Subsection 3(4) of the Act is replaced by the following: Interim appointment (4) In the event of the absence or incapacity of the Auditor General or if that office is vacant, the Governor in Council may appoint any qualified auditor to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. Respon 2006 R.S., c. 31 (4th Supp.) OFFICIAL LANGUAGES ACT 111. (1) Subsections 49(1) and (2) of the Official Languages Act are replaced by the following: Appointment 49. (1) The Governor in Council shall, by commission under the Great Seal, appoint a Commissioner of Official Languages for Canada after consultation with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and House of Commons. Tenure (2) Subject to this section, the Commissioner holds office during good behaviour for a term of seven years, but may be removed for cause by the Governor in Council at any time on address of the Senate and House of Commons. (2) Subsection 49(4) of the Act is replaced by the following: Interim appointment (4) In the event of the absence or incapacity of the Commissioner or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. R.S., c. P-1 PARLIAMENT OF CANADA ACT Amendments to Act 2004, c. 7, s. 2 112. Subsection 20.2(2) of the Parliament of Canada Act is replaced by the following: Interim appointment (2) In the event of the absence or incapacity of the Senate Ethics Officer, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. 2004, c. 7, s. 4 113. Subsection 72.02(2) of the Act is replaced by the following: C. 9 Interim appointment (2) In the event of the absence or incapacity of the Ethics Commissioner, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. Accoun 114. Subsection 75(4) of the Act is replaced by the following: Other officers and employees (4) The officers, other than the Parliamentary Librarian, the Associate Parliamentary Librarian and the Parliamentary Budget Officer, and the clerks and servants who are authorized by law and required for the service of the Library may be appointed in the manner prescribed by law to hold office during pleasure. 115. Section 78 of the Act is replaced by the following: Duties of Librarians and staff 78. The Parliamentary Librarian, the Associate Parliamentary Librarian, the Parliamentary Budget Officer and the other officers, clerks and servants of the Library are responsible for the faithful discharge of their official duties, as defined, subject to this Act, by regulations agreed on by the Speakers of the two Houses of Parliament and concurred in by the joint committee referred to in section 74. 116. The Act is amended by adding the following after section 79: Parliamentary Budget Officer 79.1 (1) There is hereby established the position of Parliamentary Budget Officer, the holder of which is an officer of the Library of Parliament. Appointment and term of office (2) The Governor commission under the Parliamentary Budget during pleasure for a more than five years. Selection (3) The Governor in Council may select the Parliamentary Budget Officer from a list of three names submitted in confidence, through the Leader of the Government in the House of Commons, by a committee formed and chaired by the Parliamentary Librarian. in Council shall, by Great Seal, appoint the Officer to hold office renewable term of not Respon Remuneration and expenses (4) The Parliamentary Budget Officer shall be paid the remuneration and expenses set by the Governor in Council. Mandate 79.2 The mandate of the Parliamentary Budget Officer is to (a) provide independent analysis to the Senate and to the House of Commons about the state of the nation’s finances, the estimates of the government and trends in the national economy; (b) when requested to do so by any of the following committees, undertake research for that committee into the nation’s finances and economy: (i) the Standing Committee on National Finance of the Senate or, in the event that there is not a Standing Committee on National Finance, the appropriate committee of the Senate, (ii) the Standing Committee on Finance of the House of Commons or, in the event that there is not a Standing Committee on Finance, the appropriate committee of the House of Commons, or (iii) the Standing Committee on Public Accounts of the House of Commons or, in the event that there is not a Standing Committee on Public Accounts, the appropriate committee of the House of Commons; (c) when requested to do so by a committee of the Senate or of the House of Commons, or a committee of both Houses, that is mandated to consider the estimates of the government, undertake research for that committee into those estimates; and (d) when requested to do so by a member of either House or by a committee of the Senate or of the House of Commons, or a committee of both Houses, estimate the financial cost of any proposal that relates to a matter over which Parliament has jurisdiction. Access to financial and economic data 79.3 (1) Except as provided by any other Act of Parliament that expressly refers to this subsection, the Parliamentary Budget Officer is entitled, by request made to the deputy head of a C. 9 Accoun department within the meaning of any of paragraphs (a), (a.1) and (d) of the definition “department” in section 2 of the Financial Administration Act, or to any other person designated by that deputy head for the purpose of this section, to free and timely access to any financial or economic data in the possession of the department that are required for the performance of his or her mandate. Exception (2) Subsection (1) does not apply in respect of any financial or economic data (a) that are information the disclosure of which is restricted under section 19 of the Access to Information Act or any provision set out in Schedule II to that Act; or (b) that are contained in a confidence of the Queen’s Privy Council for Canada described in subsection 69(1) of that Act, unless the data are also contained in any other record, within the meaning of section 3 of that Act, and are not information referred to in paragraph (a). Confidentiality 79.4 The Parliamentary Budget Officer, and every person acting on behalf or under the direction of the Parliamentary Budget Officer, shall not disclose any financial or economic data that come to their knowledge under section 79.3, unless the disclosure is essential for the performance of his or her mandate and the financial or economic data to which the disclosure relates are not information described in subsection 13(1), section 14 or any of paragraphs 18(a) to (d) or 20(1)(b) to (d) of the Access to Information Act. Powers to contract 79.5 (1) The Parliamentary Budget Officer may, in the performance of his or her mandate, enter into contracts, memoranda of understanding or other arrangements in the name of his or her position. Technical assistance (2) The Parliamentary Budget Officer may engage on a temporary basis the services of persons having technical or specialized knowledge necessary for the performance of his or her mandate. Respon 2006 Authorization to assist (3) The Parliamentary Budget Officer may authorize a person employed in the Library of Parliament to assist him or her to exercise any of the powers under subsection (1) or (2), subject to the conditions that the Parliamentary Budget Officer sets. Clarification (4) For greater certainty, section 74 and subsection 75(2) apply in respect of the exercise of the powers described in subsections (1) to (3). Coordinating Amendments 117. (1) With respect to each of the following sections of the Access to Information Act, as of the day on which that section comes into force, a reference to that section is deemed to be included in the references to that Act in section 79.4 of the Parliament of Canada Act: (a) section 18.1, as enacted by section 147 of this Act; and (b) section 20.1, as enacted by section 148 of this Act. (2) On the first day on which all of the following have occurred, namely, section 18.1 of the Access to Information Act, as enacted by section 147 of this Act, has come into force and section 20.1 of the Access to Information Act, as enacted by section 148 of this Act, has come into force, subsection (1) is repealed and section 79.4 of the Parliament of Canada Act is replaced by the following: Confidentiality 79.4 The Parliamentary Budget Officer, and every person acting on behalf or under the direction of the Parliamentary Budget Officer, shall not disclose any financial or economic data that come to their knowledge under section 79.3, unless the disclosure is essential for the performance of his or her mandate and the financial or economic data to which the disclosure relates are not information described in subsection 13(1), section 14, any of paragraphs 18(a) to (d), section 18.1, any of paragraphs 20(1)(b) to (d) or section 20.1 of the Access to Information Act. 102 R.S., c. P-21 C. 9 Accoun PRIVACY ACT 118. (1) Subsections 53(1) and (2) of the Privacy Act are replaced by the following: Appointment 53. (1) The Governor in Council shall, by commission under the Great Seal, appoint a Privacy Commissioner after consultation with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and House of Commons. Tenure (2) Subject to this section, the Privacy Commissioner holds office during good behaviour for a term of seven years, but may be removed for cause by the Governor in Council at any time on address of the Senate and House of Commons. (2) Subsection 53(4) of the Act is replaced by the following: Interim appointment (4) In the event of the absence or incapacity of the Privacy Commissioner, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. 2005, c. 46 PUBLIC SERVANTS DISCLOSURE PROTECTION ACT 119. (1) Subsections 39(1) and (2) of the Public Servants Disclosure Protection Act are replaced by the following: Appointment 39. (1) The Governor in Council shall, by commission under the Great Seal, appoint a Public Sector Integrity Commissioner after consultation with the leader of every recognized party in the Senate and House of Commons and approval of the appointment by resolution of the Senate and House of Commons. Respon 2006 Tenure (2) Subject to this section, the Commissioner holds office during good behaviour for a term of seven years, but may be removed for cause by the Governor in Council at any time on address of the Senate and House of Commons. (2) Subsection 39(4) of the Act is replaced by the following: Interim appointment (4) In the event of the absence or incapacity of the Commissioner, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. TRANSITIONAL PROVISION Transitional — continuation in office 120. A person who holds office under one of the following provisions immediately before the day on which this section comes into force continues in office and is deemed to have been appointed under that provision, as amended by sections 109 to 111, 118 and 119, to hold office for the remainder of the term for which he or she had been appointed: (a) the Information Commissioner under section 54 of the Access to Information Act; (b) the Auditor General of Canada under section 3 of the Auditor General Act; (c) the Commissioner of Official Languages for Canada under section 49 of the Official Languages Act; (d) the Privacy Commissioner under section 53 of the Privacy Act; and (e) the Public Sector Integrity Commissioner under section 39 of the Public Servants Disclosure Protection Act. C. 9 Accoun PART 3 OFFICE OF THE DIRECTOR OF PUBLIC PROSECUTIONS, ADMINISTRATIVE TRANSPARENCY AND DISCLOSURE OF WRONGDOING DIRECTOR OF PUBLIC PROSECUTIONS ACT Enactment of Act 121. The Director of Public Prosecutions Act is enacted as follows: An Act respecting the office of the Director of Public Prosecutions SHORT TITLE Short title 1. This Act may be cited as the Director of Public Prosecutions Act. INTERPRETATION Definitions “Attorney General” « procureur général » “prosecution” « poursuite » 2. The following definitions apply in this Act. “Attorney General” means the Attorney General of Canada. “prosecution”, except in relation to matters referred to in subsection 3(8), means a prosecution under the jurisdiction of the Attorney General, a proceeding respecting any offence, the prosecution — or prospective prosecution — of which is under the jurisdiction of the Attorney General, and any appeal related to such a prosecution or proceeding. DIRECTOR OF PUBLIC PROSECUTIONS Appointment 3. (1) The Governor in Council shall, on the recommendation of the Attorney General, appoint a Director of Public Prosecutions (in this Act referred to as the “Director”) in accordance with section 4. Rank and status (2) The Director has the rank and status of a deputy head of a department. Duties and functions (3) The Director, under and on behalf of the Attorney General, Respon (a) initiates and conducts prosecutions on behalf of the Crown, except where the Attorney General has assumed conduct of a prosecution under section 15; (b) intervenes in any matter that raises a question of public interest that may affect the conduct of prosecutions or related investigations, except in proceedings in which the Attorney General has decided to intervene under section 14; (c) issues guidelines to persons acting as federal prosecutors respecting the conduct of prosecutions generally; (d) advises law enforcement agencies or investigative bodies in respect of prosecutions generally or in respect of a particular investigation that may lead to a prosecution; (e) communicates with the media and the public on all matters respecting the initiation and conduct of prosecutions; (f) exercises the authority of the Attorney General respecting private prosecutions, including to intervene and assume the conduct of — or direct the stay of — such prosecutions; and (g) exercises any other power or carries out any other duty or function assigned to the Director by the Attorney General that is compatible with the office of Director. Deputy Attorney General (4) For the purpose of exercising the powers and performing the duties and functions referred to in subsection (3), the Director is the Deputy Attorney General of Canada. Guidelines not statutory instruments (5) For greater certainty, guidelines referred to in paragraph (3)(c) are not statutory instruments within the meaning of the Statutory Instruments Act. Publication (6) Any assignment under paragraph (3)(g) must be in writing and be published by the Attorney General in the Canada Gazette. Agreements and arrangements (7) The Director may, for the purposes of exercising the powers and performing the duties and functions referred to in subsection (3), enter C. 9 Accoun into an agreement or arrangement on behalf of the Attorney General with the government of a province. Duties — election-related matters (8) The Director initiates and conducts prosecutions on behalf of the Crown with respect to any offences under the Canada Elections Act, as well as any appeal or other proceeding related to such a prosecution. Other powers, duties and functions (9) The Director may, under and on behalf of the Attorney General, exercise any powers or perform any duties or functions of the Attorney General under the Extradition Act or the Mutual Legal Assistance in Criminal Matters Act. Selection committee 4. (1) The Attorney General shall establish a selection committee consisting of the following members: (a) a person named by the Federation of Law Societies of Canada; (b) a person named by each recognized political party in the House of Commons; (c) the Deputy Minister of Justice; (d) the Deputy Minister of the Department of Public Safety and Emergency Preparedness; and (e) a person selected by the Attorney General. List of candidates (2) The Attorney General shall submit to the selection committee a list of not more than 10 candidates whom he or she considers suitable to be appointed as Director, each of whom must be a member of at least 10 years standing at the bar of any province. The committee shall assess the candidates and recommend three of them to the Attorney General. Selection (3) The Attorney General shall, from among those three candidates, select the one whom he or she considers most suitable for the office of Director. Referral to committee (4) The question of the appointment of the selected candidate shall be referred for approval to a committee designated or established by Parliament for that purpose. Respon Recommendation to Governor in Council (5) The Attorney General shall, if the parliamentary committee gives its approval, recommend to the Governor in Council that the selected candidate be appointed as Director or, if the parliamentary committee does not give its approval, refer to the committee the appointment of another candidate recommended under subsection (2). Tenure and term 5. (1) The Director holds office, during good behaviour, for a term of seven years, but may be removed by the Governor in Council at any time for cause with the support of a resolution of the House of Commons to that effect. The Director is not eligible to be reappointed for a further term of office. End of term (2) At the end of the Director’s term, the Director shall continue in office until his or her successor is appointed. Full-time (3) The Director shall engage exclusively in the duties and functions of his or her office under this Act or any other Act of Parliament and shall not hold any other office or engage in any other employment for reward. Incapacity or vacancy (4) In the event of the incapacity of the Director or a vacancy in that office, the Governor in Council may authorize a Deputy Director of Public Prosecutions to act as Director, but no person may act as Director for a period exceeding 12 months without the approval of the Governor in Council. Remuneration and expenses (5) The Director shall be paid the remuneration and expenses that are fixed by the Governor in Council. Once fixed, the remuneration may not be reduced. DEPUTY DIRECTORS, PROSECUTORS AND OTHER STAFF Deputy Director 6. (1) The Governor in Council shall, on the recommendation of the Attorney General, appoint one or more members of at least 10 years’ standing at the bar of any province to be Deputy Directors of Public Prosecutions. Selection committee (2) The Attorney General may only make the recommendation after consultation with a selection committee consisting of the Director, a C. 9 Accoun person representing the Federation of Law Societies of Canada and the Deputy Minister of Justice. Powers, duties and functions — lawful deputy (3) Under the supervision of the Director, a Deputy Director may exercise any of the powers and perform any of the duties or functions referred to in subsection 3(3) and, for that purpose, is a lawful deputy of the Attorney General. Other powers, duties and functions (4) Under the supervision of the Director, a Deputy Director may also act for or on behalf of the Director in the exercise of any of the other powers or the performance of any of the other duties or functions that the Director is authorized to exercise or perform under this or any other Act of Parliament. Employed federal prosecutors 7. (1) The federal prosecutors that are necessary to enable the Director to perform any of the duties or functions of his or her office shall be appointed in accordance with the Public Service Employment Act. Non-employed federal prosecutors (2) The Director may also for that purpose retain, on behalf of Her Majesty, the services of barristers and, in the Province of Quebec, advocates to act as federal prosecutors and, with the approval of the Treasury Board, may fix and pay their fees, expenses and other remuneration. Qualification (3) A person appointed under subsection (1) or whose services are retained under subsection (2) must be a member of the bar of a province. Other staff 8. (1) Any other officers and employees that are necessary to enable the Director to perform any of the duties and functions of his or her office shall be appointed in accordance with the Public Service Employment Act. Technical assistance (2) The Director may engage the services of persons having technical or specialized knowledge of any matter relating to the Director’s work to advise and assist the Director in performing any of the duties and functions of his or her office and, with the approval of the Treasury Board, may fix and pay the remuneration and expenses of those persons. Respon 2006 DELEGATION Delegation 9. (1) The Director may, subject to any restrictions or limitations that the Director specifies, authorize a federal prosecutor, a person acting as a federal prosecutor under subsection 7(2) or any person referred to in subsection 8(1) to act for or on behalf of the Director in the exercise of any of the powers or the performance of any of the duties or functions that the Director is authorized to exercise or perform under this or any other Act of Parliament, except the power to delegate under this subsection. Agency (2) Every person who is authorized under subsection (1) acts as an agent of the Director and is not required to prove such authorization. Designation (3) The Director, a Deputy Director and any person referred to in subsection 7(3) may be designated as an agent of the Minister of Public Safety and Emergency Preparedness under section 185 of the Criminal Code. DIRECTIVES Directive from Attorney General — specific prosecution 10. (1) Any directive that the Attorney General issues to the Director with respect to the initiation or conduct of any specific prosecution must be in writing and be published in the Canada Gazette. Directive — generally applicable (2) The Attorney General may, after consulting the Director, issue directives respecting the initiation or conduct of prosecutions generally. Any such directives must be in writing and be published in the Canada Gazette. Delay in publication — directive 11. (1) The Attorney General or the Director may, if he or she considers it to be in the interests of the administration of justice, direct that the publication in the Canada Gazette of a directive referred to in subsection 10(1) be delayed. Limit on delay (2) The publication of a directive may not be delayed beyond the completion of the prosecution or any related prosecution. C. 9 Directives not statutory instruments 12. For greater certainty, directives issued under section 10 are not statutory instruments within the meaning of the Statutory Instruments Act. Accoun ISSUES OF GENERAL OR PUBLIC INTEREST Duty to inform 13. The Director must inform the Attorney General in a timely manner of any prosecution, or intervention that the Director intends to make, that raises important questions of general interest. Intervention 14. When, in the opinion of the Attorney General, proceedings raise questions of public interest, the Attorney General may, after notifying the Director, intervene in first instance or on appeal. ASSUMING CONDUCT OF PROSECUTION Taking conduct of prosecution 15. (1) The Attorney General may only assume conduct of a prosecution after first consulting the Director. The Attorney General must then give to the Director a notice of intent to assume conduct of the prosecution and publish it in the Canada Gazette without delay. Transfer of file (2) The Director is required to turn the prosecution file over to the Attorney General and to provide any information that the Attorney General requires within the time specified. Delay in publication (3) However, publication may be delayed if the Attorney General or the Director considers it to be in the interests of the administration of justice. ANNUAL REPORT Annual report 16. (1) The Director shall, not later than June 30 of each year, report to the Attorney General in respect of the activities of the office of the Director — except in relation to matters referred to in subsection 3(8) — in the immediately preceding fiscal year. Tabling in Parliament (2) The Attorney General shall cause a copy of the Director’s report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after he or she receives the report. Respon 2006 Transitional Provisions Definition of “other Act” 122. In sections 123 to 127 of this Act, “other Act” means the Director of Public Prosecutions Act, as enacted by section 121 of this Act. Acting Director 123. (1) The person who holds the position of Assistant Deputy Attorney General (Criminal Law) in the Department of Justice immediately before the day on which this section comes into force is authorized to act as the Director of Public Prosecutions under the other Act until the appointment of the Director of Public Prosecutions under subsection 3(1) of the other Act. Acting Deputy Director (2) That person may authorize two members of at least 10 years’ standing at the bar of any province to act as Deputy Directors of Public Prosecutions under the other Act until the appointment of a Deputy Director of Public Prosecutions under subsection 6(1) of the other Act. Incapacity or death (3) In the event of the incapacity or death of the person authorized to act as the Director of Public Prosecutions under subsection (1), the Attorney General of Canada shall designate one of the persons authorized to act as Deputy Director of Public Prosecutions under subsection (2) to act as Director of Public Prosecutions in the interim. Transfer of employees 124. (1) The coming into force of the other Act shall not be construed as affecting the status of an employee who occupied, immediately before the day on which the other Act comes into force, a position in the Department of Justice in the administrative unit known as the Federal Prosecution Service, except that the employee from that day occupies that position in the Office of the Director of Public Prosecutions. Transfer of other staff (2) The Governor in Council may, by order made on the recommendation of the Treasury Board, if the Governor in Council is of the opinion that an employee or class of employees in the Department of Justice is carrying out powers, duties or functions that are in whole or in part in support of or related to the powers, duties and functions of C. 9 Accoun employees referred to in subsection (1) and that it is in the best interests of the core public administration to do so, declare that the employee or class of employees shall, on the day on which the order comes into force, occupy their positions in the Office of the Director of Public Prosecutions. Definition of “employee” (3) In this section, “employee” has the same meaning as in subsection 2(1) of the Public Service Employment Act. Non-employed federal prosecutors 125. Any barrister or, in the Province of Quebec, any advocate whose services were retained, immediately before the day on which the other Act comes into force, to act as a prosecutor for the Crown in connection with any matter is deemed, on that day, to have had his or her services retained under subsection 7(2) of the other Act to act in connection with that matter. Transfer of appropriations 126. Any amount that is appropriated, for the fiscal year in which the other Act comes into force, by an appropriation Act based on the Estimates for that year for defraying the charges and expenses of the Department of Justice in relation to duties and functions carried out by the administrative unit known as the Federal Prosecution Service and that, on the day on which the other Act comes into force, is unexpended, is deemed to be an amount appropriated for defraying the charges and expenses of the Office of the Director of Public Prosecutions. Continuation of prosecutions 127. (1) Any prosecution to which the Attorney General of Canada is a party and that is ongoing on the day on which the other Act comes into force is continued by the Director of Public Prosecutions without further formality. Definition of “prosecution” (2) In subsection (1), “prosecution” has the same meaning as in section 2 of the other Act. Election-related prosecutions 128. Any prosecution for an offence under the Canada Elections Act that is pending immediately before the day on which sections 121 and 130 to 136 of this Act come into force may continue to be conducted by the Commissioner of Canada Elections, as well Respon as any appeal or other proceeding related to such a prosecution as if those sections had not come into force. Consequential Amendments R.S., c. A-1 Access to Information Act 129. Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Director of Public Prosecutions Bureau du directeur des poursuites pénales 2000, c. 9 Canada Elections Act 2003, c. 19, s. 62 130. Section 511 of the Canada Elections Act is replaced by the following: Director of Public Prosecutions may prosecute 511. (1) If the Commissioner believes on reasonable grounds that an offence under this Act has been committed, the Commissioner may refer the matter to the Director of Public Prosecutions who shall decide whether to initiate a prosecution. Information (2) If the Director decides to initiate a prosecution, the Director shall request the Commissioner to cause an information in writing and under oath or solemn declaration to be laid before a justice, as defined in section 2 of the Criminal Code. Search and seizure (3) For the purposes of section 487 of the Criminal Code, any person charged by the Commissioner with duties relating to the administration or enforcement of this Act is deemed to be a public officer. 131. (1) Subsection 512(1) of the Act is replaced by the following: Director’s consent required 512. (1) No prosecution for an offence under this Act may be instituted by a person other than the Director of Public Prosecutions without the Director’s prior written consent. (2) Subsection 512(3) of the Act is replaced by the following: C. 9 Proof of consent (3) Every document purporting to be the Director’s consent under subsection (1) is deemed to be that consent unless it is called into question by the Director or by someone acting for the Director or for Her Majesty. Accoun 132. Section 513 of the Act is replaced by the following: Commissioner may intervene 513. The Commissioner, where he or she considers it to be in the public interest, may take any measures, including incurring any expenses, in relation to an inquiry, injunction or compliance agreement under this Act. 133. (1) Subsection 517(1) of the Act is replaced by the following: Compliance agreements 517. (1) Subject to subsection (7), if the Commissioner believes on reasonable grounds that a person has committed, is about to commit or is likely to commit an act or omission that could constitute an offence under this Act, the Commissioner may enter into a compliance agreement, aimed at ensuring compliance with this Act, with that person (in this section and sections 518 to 521 called the “contracting party”). 2001, c. 21, s. 25(E) (2) Subsections 517(6) to (8) of the Act are replaced by the following: Effect of compliance agreement — no referral (6) If a matter has not yet been referred to the Director of Public Prosecutions when a compliance agreement is entered into, no such referral may be made for an act or omission that led to the agreement unless there is noncompliance with it. Matter that has been referred (7) If a matter has already been referred to the Director of Public Prosecutions, whether or not a prosecution has been initiated, the Director may — if, after consultation with the Commissioner, the Director considers that a compliance agreement would better serve the public interest — remit the matter back to the Commissioner so that it may be so dealt with. Effect of compliance agreement (8) When a compliance agreement is entered into, any prosecution of the contracting party for an act or omission that led to it is suspended Respon and, unless there is non-compliance with it, the Director of Public Prosecutions may not institute such a prosecution. Renegotiation (9) The Commissioner and the contracting party may renegotiate the terms of the compliance agreement at the request of the Commissioner or contracting party at any time before it is fully executed. Copy to be provided (10) The Commissioner shall provide the contracting party with a copy of a compliance agreement, without delay after it is entered into or renegotiated under subsection (9). If the matter has been referred to the Director of Public Prosecutions, the Commissioner shall also provide a copy of the compliance agreement to the Director. 134. Sections 518 and 519 of the Act are replaced by the following: If agreement complied with 518. (1) If the Commissioner is of the opinion that the compliance agreement has been complied with, the Commissioner shall cause a notice to that effect to be served on the contracting party. If the matter has been referred to the Director of Public Prosecutions, the Commissioner shall also provide a copy of the notice to the Director. Effect of notice (2) Service of the notice terminates any prosecution of the contracting party that is based on the act or omission in question and prevents the Commissioner from referring the matter to the Director of Public Prosecutions and the Director from instituting such a prosecution. If agreement not complied with 519. If the Commissioner is of the opinion that a contracting party has not complied with a compliance agreement, the Commissioner shall cause a notice of default to be served on the contracting party, informing him or her that, as the case may be, the Commissioner may refer the matter to the Director of Public Prosecutions for any action the Director considers appropriate or, if a prosecution was suspended by virtue of subsection 517(8), it may be resumed. If the matter has been referred to the Director of Public Prosecutions, the Commissioner shall also provide a copy of the notice to the Director. C. 9 Accoun 135. The Act is amended by adding the following after section 535: Consultation 535.1 The Chief Electoral Officer may, before making a report under section 534 or 535, consult the Director of Public Prosecutions on any question relating to measures taken under section 511 or 512. 136. Subsection 540(4) of the Act is replaced by the following: Exception (4) Subsection (3) does not prohibit the Chief Electoral Officer, any authorized member of his or her staff or the Commissioner from inspecting the documents referred to in that subsection, and any of those documents may be produced by the Commissioner for the purpose of an inquiry made under section 510 or provided to the Director of Public Prosecutions who may produce them for the purpose of a prosecution — or possible prosecution — by the Director for an offence under this Act. R.S., c. J-2 Department of Justice Act 137. Subsection 3(2) of the Department of Justice Act is replaced by the following: Deputy Attorney General R.S., c. F-11 (2) The Deputy Minister is ex officio the Deputy Attorney General except in respect of the powers, duties and functions that the Director of Public Prosecutions is authorized to exercise or perform under subsection 3(3) of the Director of Public Prosecutions Act. Financial Administration Act 138. Schedule I.1 to the Financial Administration Act is amended by adding the following in alphabetical order in column I: Office of the Director of Public Prosecutions Bureau du directeur des poursuites pénales and a corresponding reference in column II to the “Minister of Justice”. 139. Schedule IV to the Act is amended by adding the following in alphabetical order: Respon Office of the Director of Public Prosecutions Bureau du directeur des poursuites pénales R.S., c. P-21 Privacy Act 140. The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Director of Public Prosecutions Bureau du directeur des poursuites pénales R.S., c. A-1 ACCESS TO INFORMATION ACT Amendments to Act 141. (1) The definitions “designated Minister”, “head” and “record” in section 3 of the Access to Information Act are replaced by the following: “designated Minister” « ministre désigné » “head” « responsable d’institution fédérale » “designated Minister” means a person who is designated as the Minister under subsection 3.2(1); “head”, in respect of a government institution, means (a) in the case of a department or ministry of state, the member of the Queen’s Privy Council for Canada who presides over the department or ministry, or (b) in any other case, either the person designated under subsection 3.2(2) to be the head of the institution for the purposes of this Act or, if no such person is designated, the chief executive officer of the institution, whatever their title; “record” « document » “record” means any documentary material, regardless of medium or form; (2) The definition “government institution” in section 3 of the Act is replaced by the following: “government institution” « institution fédérale » “government institution” means (a) any department or ministry of state of the Government of Canada, or any body or office, listed in Schedule I, and C. 9 Accoun (b) any parent Crown corporation, and any wholly-owned subsidiary of such a corporation, within the meaning of section 83 of the Financial Administration Act; 142. The Act is amended by adding the following after section 3: For greater certainty 3.01 (1) For greater certainty, any provision of this Act that applies to a government institution that is a parent Crown corporation applies to any of its wholly-owned subsidiaries within the meaning of section 83 of the Financial Administration Act. For greater certainty (2) For greater certainty, the Canadian Race Relations Foundation and the Public Sector Pension Investment Board are parent Crown corporations for the purposes of this Act. For greater certainty 3.1 For greater certainty, for the purposes of this Act, information that relates to the general administration of a government institution includes information that relates to expenses paid by the institution for travel, including lodging, and hospitality. DESIGNATION Power to designate Minister 3.2 (1) The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of any provision of this Act. Power to designate head (2) The Governor in Council may, by order, designate a person to be the head of a government institution, other than a department or ministry of state, for the purposes of this Act. 143. Section 4 of the Act is amended by adding the following after subsection (2): Responsibility of government institutions (2.1) The head of a government institution shall, without regard to the identity of a person making a request for access to a record under the control of the institution, make every reasonable effort to assist the person in connection with the request, respond to the request accurately and completely and, subject to the regulations, provide timely access to the record in the format requested. Respon 144. The Act is amended by adding the following in numerical order: Records relating to investigations, examinations and audits 16.1 (1) The following heads of government institutions shall refuse to disclose any record requested under this Act that contains information that was obtained or created by them or on their behalf in the course of an investigation, examination or audit conducted by them or under their authority: (a) the Auditor General of Canada; (b) the Commissioner of Official Languages for Canada; (c) the Information Commissioner; and (d) the Privacy Commissioner. Exception (2) However, the head of a government institution referred to in paragraph (1)(c) or (d) shall not refuse under subsection (1) to disclose any record that contains information that was created by or on behalf of the head of the government institution in the course of an investigation or audit conducted by or under the authority of the head of the government institution once the investigation or audit and all related proceedings, if any, are finally concluded. 145. The Act is amended by adding the following in numerical order: Investigations, examinations and reviews under the Canada Elections Act 16.3 Subject to section 541 of the Canada Elections Act, the Chief Electoral Officer may refuse to disclose any record requested under this Act that contains information that was obtained or created by or on behalf of a person who conducts an investigation, examination or review in the performance of their functions under the Canada Elections Act. 146. (1) Paragraph 18(b) of the Act is replaced by the following: (b) information the disclosure of which could reasonably be expected to prejudice the competitive position of a government institution or to interfere with contractual or other negotiations of a government institution; C. 9 Accoun (2) The portion of paragraph 18(d) of the Act before subparagraph (i) is replaced by the following: (d) information the disclosure of which could reasonably be expected to be materially injurious to the financial interests of a government institution or to the ability of the Government of Canada to manage the economy of Canada or could reasonably be expected to result in an undue benefit to any person, including such information that relates to 147. The Act is amended by adding the following after section 18: Economic interests of certain government institutions 18.1 (1) The head of a government institution may refuse to disclose a record requested under this Act that contains trade secrets or financial, commercial, scientific or technical information that belongs to, and has consistently been treated as confidential by, (a) the Canada Post Corporation; (b) Export Development Canada; (c) the Public Sector Pension Investment Board; or (d) VIA Rail Canada Inc. Exceptions (2) However, the head of a government institution shall not refuse under subsection (1) to disclose a part of a record that contains information that relates to (a) the general administration of an institution referred to in any of paragraphs (1)(a) to (d); or (b) any activity of the Canada Post Corporation that is fully funded out of moneys appropriated by Parliament. 148. The Act is amended by adding the following after section 20: Public Sector Pension Investment Board 20.1 The head of the Public Sector Pension Investment Board shall refuse to disclose a record requested under this Act that contains advice or information relating to investment that Respon the Board has obtained in confidence from a third party if the Board has consistently treated the advice or information as confidential. Canada Pension Plan Investment Board 20.2 The head of the Canada Pension Plan Investment Board shall refuse to disclose a record requested under this Act that contains advice or information relating to investment that the Board has obtained in confidence from a third party if the Board has consistently treated the advice or information as confidential. National Arts Centre Corporation 20.4 The head of the National Arts Centre Corporation shall refuse to disclose a record requested under this Act if the disclosure would reveal the terms of a contract for the services of a performing artist or the identity of a donor who has made a donation in confidence and if the Corporation has consistently treated the information as confidential. 149. (1) Paragraph 21(1)(b) of the Act is replaced by the following: (b) an account of consultations or deliberations in which directors, officers or employees of a government institution, a minister of the Crown or the staff of a minister participate; (2) Paragraph 21(2)(b) of the Act is replaced by the following: (b) a report prepared by a consultant or an adviser who was not a director, an officer or an employee of a government institution or a member of the staff of a minister of the Crown at the time the report was prepared; 150. The Act is amended by adding the following after section 22: Internal audits 22.1 (1) The head of a government institution may refuse to disclose any record requested under this Act that contains a draft report of an internal audit of a government institution or any related audit working paper if the record came into existence less than fifteen years before the request was made. C. 9 Exception (2) However, the head of a government institution shall not refuse under subsection (1) to disclose a draft report of an internal audit of a government institution if a final report of the audit has been published or if a final report of the audit is not delivered to the institution within two years after the day on which the audit was first commenced. Accoun 151. Section 31 of the Act is replaced by the following: Written complaint 31. A complaint under this Act shall be made to the Information Commissioner in writing unless the Commissioner authorizes otherwise. If the complaint relates to a request by a person for access to a record, it shall be made within sixty days after the day on which the person receives a notice of a refusal under section 7, is given access to all or part of the record or, in any other case, becomes aware that grounds for the complaint exist. 152. Paragraph 35(2)(c) of the French version of the Act is replaced by the following: c) un tiers, s’il est possible de le joindre sans difficultés, dans le cas où le Commissaire à l’information a l’intention de recommander, aux termes du paragraphe 37(1), la communication de tout ou partie d’un document qui contient ou est, selon lui, susceptible de contenir des secrets industriels du tiers, des renseignements visés à l’alinéa 20(1)b) qui ont été fournis par le tiers ou des renseignements dont la communication risquerait, selon lui, d’entraîner pour le tiers les conséquences visées aux alinéas 20(1)c) ou d). R.S., c. 27 (1st Supp.), s. 187 (Sch. V, item 1(1)) 153. Subsection 36(3) of the Act is replaced by the following: Evidence in other proceedings (3) Except in a prosecution of a person for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made under this Act, in a prosecution for an offence under section 67, in a review before the Court under this Act or in an appeal from such proceedings, evidence given by a person in proceedings Respon under this Act and evidence of the existence of the proceedings is inadmissible against that person in a court or in any other proceedings. 154. Subsection 47(2) of the Act is replaced by the following: Disclosure of offence authorized (2) The Court may disclose to the appropriate authority information relating to the commission of an offence against a law of Canada or a province by a director, an officer or an employee of a government institution if, in the Court’s opinion, there is evidence of such an offence. 155. Subsection 58(2) of the French version of the Act is replaced by the following: Assistance technique (2) Le Commissaire à l’information peut retenir temporairement les services d’experts ou de spécialistes dont la compétence lui est utile dans l’exercice des fonctions que lui confèrent la présente loi ou une autre loi fédérale; il peut fixer et payer, avec l’approbation du Conseil du Trésor, leur rémunération et leurs frais. 156. Subsection 59(2) of the Act is replaced by the following: Investigations relating to international affairs and defence (2) The Information Commissioner or an Assistant Information Commissioner may not delegate the investigation of a complaint resulting from a refusal by the head of a government institution to disclose all or part of a record under paragraph 13(1)(a) or (b) or section 15 except to one of eight officers or employees — or one of any greater number of officers or employees fixed by the designated Minister — specifically designated by the Commissioner for the purpose of conducting those investigations. 157. Subsection 63(2) of the Act is replaced by the following: Disclosure of offence authorized (2) The Information Commissioner may disclose to the Attorney General of Canada information relating to the commission of an offence against a law of Canada or a province by a director, an officer or an employee of a government institution if, in the Commissioner’s opinion, there is evidence of such an offence. C. 9 Accoun 158. The heading before section 68 of the Act is replaced by the following: EXCLUSIONS 159. The Act is amended by adding the following after section 68: Canadian Broadcasting Corporation 68.1 This Act does not apply to any information that is under the control of the Canadian Broadcasting Corporation that relates to its journalistic, creative or programming activities, other than information that relates to its general administration. Atomic Energy of Canada Limited 68.2 This Act does not apply to any information that is under the control of Atomic Energy of Canada Limited other than information that relates to (a) its general administration; or (b) its operation of any nuclear facility within the meaning of section 2 of the Nuclear Safety and Control Act that is subject to regulation by the Canadian Nuclear Safety Commission established under section 8 of that Act. 160. The Act is amended by adding the following after section 69.1: GENERAL 161. (1) Subsection 70(1) of the Act is amended by striking out the word “and” at the end of paragraph (c) and by adding the following after that paragraph: (c.1) cause statistics to be collected on an annual basis for the purpose of assessing the compliance of government institutions with the provisions of this Act and the regulations relating to access; and (2) Section 70 of the Act is amended by adding the following after subsection (1): Duties and functions of designated Minister (1.1) The designated Minister may fix the number of officers or employees of the Information Commissioner for the purposes of subsection 59(2). 162. The Act is amended by adding the following after section 72: 2006 Report of expenses Respon 72.1 The head of a department or a ministry of state of the Government of Canada shall publish an annual report of all expenses incurred by his or her office and paid out of the Consolidated Revenue Fund. 163. (1) Paragraph 77(1)(a) of the Act is replaced by the following: (a) prescribing limitations in respect of the format in which records are to be provided under subsection 4(2.1); (a.1) prescribing limitations in respect of records that can be produced from machine readable records for the purpose of subsection 4(3); (2) Subsection 77(1) of the Act is amended by striking out the word “and” at the end of paragraph (g), by adding the word “and” at the end of paragraph (h) and by adding the following after paragraph (h): (i) prescribing criteria for adding a body or office to Schedule I. 164. Schedule I to the Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”: Atlantic Pilotage Authority Administration de pilotage de l’Atlantique Bank of Canada Banque du Canada Blue Water Bridge Authority Administration du pont Blue Water Business Development Bank of Canada Banque de développement du Canada Canada Council for the Arts Conseil des Arts du Canada Canada Deposit Insurance Corporation Société d’assurance-dépôts du Canada Canada Development Investment Corporation Corporation de développement des investissements du Canada Canada Lands Company Limited Société immobilière du Canada limitée Canada Mortgage and Housing Corporation Société canadienne d’hypothèques et de logement C. 9 Accoun Canadian Air Transport Security Authority Administration canadienne de la sûreté du transport aérien Canadian Commercial Corporation Corporation commerciale canadienne Canadian Dairy Commission Commission canadienne du lait Canadian Museum of Civilization Musée canadien des civilisations Canadian Museum of Nature Musée canadien de la nature Canadian Race Relations Foundation Fondation canadienne des relations raciales Canadian Tourism Commission Commission canadienne du tourisme Cape Breton Development Corporation Société de développement du Cap-Breton Cape Breton Growth Fund Corporation Corporation Fonds d’investissement du CapBreton Defence Construction (1951) Limited Construction de défense (1951) Limitée Enterprise Cape Breton Corporation Société d’expansion du Cap-Breton Farm Credit Canada Financement agricole Canada The Federal Bridge Corporation Limited La Société des ponts fédéraux Limitée Freshwater Fish Marketing Corporation Office de commercialisation du poisson d’eau douce Great Lakes Pilotage Authority Administration de pilotage des Grands Lacs International Development Research Centre Centre de recherches pour le développement international The Jacques-Cartier and Champlain Bridges Inc. Les Ponts Jacques-Cartier et Champlain Inc. Laurentian Pilotage Authority Administration de pilotage des Laurentides Marine Atlantic Inc. Marine Atlantique S.C.C. National Capital Commission Commission de la capitale nationale National Gallery of Canada Musée des beaux-arts du Canada Respon National Museum of Science and Technology Musée national des sciences et de la technologie Old Port of Montreal Corporation Inc. Société du Vieux-Port de Montréal Inc. Pacific Pilotage Authority Administration de pilotage du Pacifique Parc Downsview Park Inc. Parc Downsview Park Inc. Queens Quay West Land Corporation Queens Quay West Land Corporation Ridley Terminals Inc. Ridley Terminals Inc. Royal Canadian Mint Monnaie royale canadienne The Seaway International Bridge Corporation, Ltd. La Corporation du Pont international de la voie maritime, Ltée Standards Council of Canada Conseil canadien des normes Telefilm Canada Téléfilm Canada 165. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Canadian Wheat Board Commission canadienne du blé 166. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Asia-Pacific Foundation of Canada Fondation Asie-Pacifique du Canada Canada Foundation for Innovation Fondation canadienne pour l’innovation Canada Foundation for Sustainable Development Technology Fondation du Canada pour l’appui technologique au développement durable Canada Millennium Scholarship Foundation Fondation canadienne des bourses d’études du millénaire C. 9 Accoun The Pierre Elliott Trudeau Foundation La Fondation Pierre-Elliott-Trudeau 167. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Auditor General of Canada Bureau du vérificateur général du Canada 168. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Chief Electoral Officer Bureau du directeur général des élections 169. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Commissioner of Official Languages Commissariat aux langues officielles 170. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Information Commissioner Commissariat à l’information 171. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Privacy Commissioner Commissariat à la protection de la vie privée 172. Schedule II to the Act is amended by adding, in alphabetical order, a reference to Export Development Act Loi sur le développement des exportations and a corresponding reference to “section 24.3”. 172.01 Schedule II to the Act is amended by adding, in alphabetical order, a reference to Canada Elections Act Loi électorale du Canada Respon and a corresponding reference to “section 540”. Consequential Amendment R.S., c. C-24 Canadian Wheat Board Act 172.1 The Canadian Wheat Board Act is amended by adding the following after section 76: REVIEW BY MINISTER Access to Information Act 2000, c. 9 76.1 In the event of a change to the Corporation’s mandate, the Minister shall review the appropriateness of the Corporation’s inclusion in Schedule I to the Access to Information Act. CANADA ELECTIONS ACT Amendments to Act 173. Subsection 22(1) of the Canada Elections Act is amended by adding the following after paragraph (c): (c.1) persons designated pursuant to subsection 28(3.1); 174. (1) Subsection 24(1) of the Act is replaced by the following: Appointment of returning officers 24. (1) The Chief Electoral Officer shall appoint a returning officer for each electoral district in accordance with the process established under subsection (1.1) and may only remove him or her in accordance with the procedure established under that subsection. Qualifications (1.1) The Chief Electoral Officer shall prescribe the qualifications for the appointment of persons as returning officers, and shall establish for returning officers an external appointment process within the meaning of subsection 2(1) of the Public Service Employment Act on the basis of merit and a fair procedure for their removal on the grounds set out in subsection (7). Meaning of merit (1.2) The appointment of a person as a returning officer is made on the basis of merit if the Chief Electoral Officer is satisfied that the person meets the essential qualifications for the work to be performed and has regard to C. 9 Accoun (a) any additional qualifications that the Chief Electoral Officer considers to be an asset for the work to be performed; and (b) any current or future operational requirements. Term of office (1.3) A returning officer shall be appointed for a term of ten years. Reappointment (1.4) The Chief Electoral Officer may, after consultation with the leader of every recognized political party in the House of Commons, reappoint for another term any returning officer whose term expires and who has performed the functions of a returning officer in a satisfactory manner, whether or not other persons are considered for the appointment. Continuation in office (1.5) A returning officer may, with the approval of the Chief Electoral Officer, continue in office after his or her term expires until he or she is reappointed or until another person is appointed to the office. (2) Subsection 24(4) of the Act is replaced by the following: Vacancy (4) The office of returning officer does not become vacant unless the returning officer dies, resigns, is removed from office, reaches the end of his or her term of office or ceases to reside in the electoral district, or unless the boundaries of the electoral district are revised as a result of a representation order made under section 25 of the Electoral Boundaries Readjustment Act. (3) The portion of subsection 24(7) of the Act before paragraph (a) is replaced by the following: Removal from office (7) The Chief Electoral Officer may remove from office any returning officer who 175. Section 25 of the Act is replaced by the following: List in Canada Gazette 25. Between the 1st and 20th days of January in each year, the Chief Electoral Officer shall publish a list in the Canada Gazette of the name, address and occupation of the returning officer for each electoral district in Canada. Respon 176. Subsections 28(2) to (4) of the Act are replaced by the following: Assistant returning officer to act (3) Subject to subsection 24(1.5), if a returning officer is absent or unable to act or if a returning officer’s office is vacant, the assistant returning officer shall act in place of the returning officer. Designated person to act (3.1) If a returning officer and an assistant returning officer are both absent or unable to act or if both their offices are vacant during an election period, the Chief Electoral Officer shall designate a person to act in place of the returning officer, and that person may, during and after that period, perform the duties of a returning officer in relation to that election. Appointment within limited period (4) When the office of a returning officer becomes vacant, the Chief Electoral Officer shall appoint a new returning officer without delay. 177. Section 536 of the Act is replaced by the following: Report on returning officer qualifications 535.2 Whenever the Chief Electoral Officer, pursuant to subsection 24(1.1), prescribes the qualifications for the appointment of persons as returning officers or establishes a process for their appointment or a procedure for their removal — or modifies those qualifications, that process or that procedure in a significant manner — the Chief Electoral Officer shall report accordingly to the Speaker of the House of Commons without delay. Submission of report to House of Commons 536. The Speaker of the House of Commons shall submit a report received by him or her from the Chief Electoral Officer under section 534, 535 or 535.2 to the House of Commons without delay. Transitional Provisions Incumbent returning officers 178. (1) The term of office of a returning officer who holds office immediately before the day on which this section comes into force expires on that day. No right to compensation (2) No person has any right or claim to receive compensation, damages, indemnity or any other form of relief from Her Majesty in C. 9 Accoun right of Canada, or from any servant or agent of Her Majesty, by reason of ceasing to hold office pursuant to subsection (1). R.S., c. E-20; 2001, c. 33, s. 2(F) EXPORT DEVELOPMENT ACT 179. The Export Development Act is amended by adding the following after section 24.2: Privileged information 24.3 (1) Subject to subsection (2), all information obtained by the Corporation in relation to its customers is privileged and a director, officer, employee or agent of, or adviser or consultant to, the Corporation must not knowingly communicate, disclose or make available the information, or permit it to be communicated, disclosed or made available. Authorized disclosure (2) Privileged information may be communicated, disclosed or made available (a) for the purpose of the administration or enforcement of this Act and legal proceedings related to it; (b) for the purpose of prosecuting an offence under this Act or any other Act of Parliament; (c) to the Minister of National Revenue solely for the purpose of administering or enforcing the Income Tax Act or the Excise Tax Act; or (d) with the written consent of the person to whom the information relates. 2004, c. 11 LIBRARY AND ARCHIVES OF CANADA ACT 179.1 The definition “government institution” in section 2 of the Library and Archives of Canada Act is replaced by the following: “government institution” « institution fédérale » “government institution” has the same meaning as in section 3 of the Access to Information Act or in section 3 of the Privacy Act or means an institution designated by the Governor in Council. Respon 180. The Act is amended by adding the following after section 15: Public opinion research R.S., c. P-21 15.1 Every department, as defined in section 2 of the Financial Administration Act, shall, within six months after the completion of any data collection done for the purposes of public opinion research carried out under a contract at the request of the department and for the exclusive use of Her Majesty in right of Canada, send to the Librarian and Archivist the written report referred to in subsection 40(2) of the Financial Administration Act. PRIVACY ACT 181. (1) The definitions “designated Minister” and “head” in section 3 of the Privacy Act are replaced by the following: “designated Minister” « ministre désigné » “head” « responsable d’institution fédérale » “designated Minister” means a person who is designated as the Minister under subsection 3.1(1); “head”, in respect of a government institution, means (a) in the case of a department or ministry of state, the member of the Queen’s Privy Council for Canada who presides over the department or ministry, or (b) in any other case, either the person designated under subsection 3.1(2) to be the head of the institution for the purposes of this Act or, if no such person is designated, the chief executive officer of the institution, whatever their title; (2) The definition “government institution” in section 3 of the Act is replaced by the following: “government institution” « institution fédérale » “government institution” means (a) any department or ministry of state of the Government of Canada, or any body or office, listed in the schedule, and C. 9 Accoun (b) any parent Crown corporation, and any wholly-owned subsidiary of such a corporation, within the meaning of section 83 of the Financial Administration Act; 182. The Act is amended by adding the following after section 3: For greater certainty 3.01 (1) For greater certainty, any provision of this Act that applies to a government institution that is a parent Crown corporation applies to any of its wholly-owned subsidiaries within the meaning of section 83 of the Financial Administration Act. For greater certainty (2) For greater certainty, the Canadian Race Relations Foundation and the Public Sector Pension Investment Board are parent Crown corporations for the purposes of this Act. DESIGNATION Power to designate Minister 3.1 (1) The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of any provision of this Act. Power to designate head (2) The Governor in Council may, by order, designate a person to be the head of a government institution, other than a department or ministry of state, for the purposes of this Act. 183. The Act is amended by adding the following in numerical order: Information obtained by Privacy Commissioner 22.1 (1) The Privacy Commissioner shall refuse to disclose any personal information requested under this Act that was obtained or created by the Commissioner or on the Commissioner’s behalf in the course of an investigation conducted by, or under the authority of, the Commissioner. Exception (2) However, the Commissioner shall not refuse under subsection (1) to disclose any personal information that was created by the Commissioner or on the Commissioner’s behalf in the course of an investigation conducted by, or under the authority of, the Commissioner once the investigation and all related proceedings, if any, are finally concluded. Respon 184. Subsection 46(2) of the Act is replaced by the following: Disclosure of offence authorized (2) The Court may disclose to the appropriate authority information relating to the commission of an offence against a law of Canada or a province by a director, an officer or an employee of a government institution if, in the Court’s opinion, there is evidence of such an offence. 185. Subsection 58(2) of the French version of the Act is replaced by the following: Assistance technique (2) Le Commissaire à la protection de la vie privée peut retenir temporairement les services d’experts ou de spécialistes dont la compétence lui est utile dans l’exercice des fonctions que lui confèrent la présente loi ou une autre loi fédérale; il peut fixer et payer, avec l’approbation du Conseil du Trésor, leur rémunération et leurs frais. 186. Subsection 64(2) of the Act is replaced by the following: Disclosure of offence authorized (2) The Privacy Commissioner may disclose to the Attorney General of Canada information relating to the commission of an offence against a law of Canada or a province by a director, an officer or an employee of a government institution if, in the Commissioner’s opinion, there is evidence of such an offence. 187. The heading before section 69 of the Act is replaced by the following: EXCLUSIONS 188. The Act is amended by adding the following after section 69: Canadian Broadcasting Corporation 69.1 This Act does not apply to personal information that the Canadian Broadcasting Corporation collects, uses or discloses for journalistic, artistic or literary purposes and does not collect, use or disclose for any other purpose. 189. The Act is amended by adding the following after section 70.1: GENERAL C. 9 Accoun 190. The schedule to the Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”: Atlantic Pilotage Authority Administration de pilotage de l’Atlantique Bank of Canada Banque du Canada Blue Water Bridge Authority Administration du pont Blue Water Business Development Bank of Canada Banque de développement du Canada Canada Council for the Arts Conseil des Arts du Canada Canada Deposit Insurance Corporation Société d’assurance-dépôts du Canada Canada Development Investment Corporation Corporation de développement des investissements du Canada Canada Lands Company Limited Société immobilière du Canada limitée Canada Mortgage and Housing Corporation Société canadienne d’hypothèques et de logement Canada Post Corporation Société canadienne des postes Canadian Air Transport Security Authority Administration canadienne de la sûreté du transport aérien Canadian Commercial Corporation Corporation commerciale canadienne Canadian Dairy Commission Commission canadienne du lait Canadian Museum of Civilization Musée canadien des civilisations Canadian Museum of Nature Musée canadien de la nature Canadian Race Relations Foundation Fondation canadienne des relations raciales Canadian Tourism Commission Commission canadienne du tourisme Cape Breton Development Corporation Société de développement du Cap-Breton Cape Breton Growth Fund Corporation Corporation Fonds d’investissement du CapBreton Respon Defence Construction (1951) Limited Construction de défense (1951) Limitée Enterprise Cape Breton Corporation Société d’expansion du Cap-Breton Export Development Canada Exportation et développement Canada Farm Credit Canada Financement agricole Canada The Federal Bridge Corporation Limited La Société des ponts fédéraux Limitée Freshwater Fish Marketing Corporation Office de commercialisation du poisson d’eau douce Great Lakes Pilotage Authority Administration de pilotage des Grands Lacs International Development Research Centre Centre de recherches pour le développement international The Jacques-Cartier and Champlain Bridges Inc. Les Ponts Jacques-Cartier et Champlain Inc. Laurentian Pilotage Authority Administration de pilotage des Laurentides Marine Atlantic Inc. Marine Atlantique S.C.C. National Arts Centre Corporation Corporation du Centre national des Arts National Capital Commission Commission de la capitale nationale National Gallery of Canada Musée des beaux-arts du Canada National Museum of Science and Technology Musée national des sciences et de la technologie Old Port of Montreal Corporation Inc. Société du Vieux-Port de Montréal Inc. Pacific Pilotage Authority Administration de pilotage du Pacifique Parc Downsview Park Inc. Parc Downsview Park Inc. Queens Quay West Land Corporation Queens Quay West Land Corporation Ridley Terminals Inc. Ridley Terminals Inc. Royal Canadian Mint Monnaie royale canadienne C. 9 Accoun The Seaway International Bridge Corporation, Ltd. La Corporation du Pont international de la voie maritime, Ltée Standards Council of Canada Conseil canadien des normes Telefilm Canada Téléfilm Canada 191. The schedule to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Asia-Pacific Foundation of Canada Fondation Asie-Pacifique du Canada Canada Foundation for Innovation Fondation canadienne pour l’innovation Canada Foundation for Sustainable Development Technology Fondation du Canada pour l’appui technologique au développement durable Canada Millennium Scholarship Foundation Fondation canadienne des bourses d’études du millénaire The Pierre Elliott Trudeau Foundation La Fondation Pierre-Elliott-Trudeau 192. The schedule to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Information Commissioner Commissariat à l’information 193. The schedule to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Privacy Commissioner Commissariat à la protection de la vie privée 2005, c. 46 PUBLIC SERVANTS DISCLOSURE PROTECTION ACT Amendments to Act 194. (1) Section 2 of the Public Servants Disclosure Protection Act is renumbered as subsection 2(1). Respon (2) The definition “Minister” in subsection 2(1) of the Act is replaced by the following: “Minister” « ministre » “Minister” means, in respect of sections 4, 5, 38.1 and 54, the Minister responsible for the Agency. (3) The portion of the definition “reprisal” in subsection 2(1) of the Act before paragraph (a) is replaced by the following: “reprisal” « représailles » “reprisal” means any of the following measures taken against a public servant because the public servant has made a protected disclosure or has, in good faith, cooperated in an investigation into a disclosure or an investigation commenced under section 33: (4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “Agency” « Agence » “investigation” « enquête » “Tribunal” « Tribunal » “Agency” means the Public Service Human Resources Management Agency of Canada. “investigation” means, for the purposes of sections 24, 25, 26 to 31, 33, 34, 36 and 37, an investigation into a disclosure and an investigation commenced under section 33. “Tribunal” means the Public Servants Disclosure Protection Tribunal established under subsection 20.7(1). (5) Section 2 of the Act is amended by adding the following after subsection (1): Taking a reprisal (2) Every reference in this Act to a person who has taken a reprisal includes a person who has directed the reprisal to be taken. 195. Section 2.1 of the Act is repealed. 196. Paragraph 3(a) of the Act is replaced by the following: (a) Schedule 1 by adding the name of any Crown corporation or other public body; 197. (1) Paragraph 8(a) of the Act is replaced by the following: C. 9 Accoun (a) a contravention of any Act of Parliament or of the legislature of a province, or of any regulations made under any such Act, other than a contravention of section 19 of this Act; (2) Section 8 of the Act is amended by adding the word “and” at the end of paragraph (e) and by replacing paragraphs (f) and (g) with the following: (f) knowingly directing or counselling a person to commit a wrongdoing set out in any of paragraphs (a) to (e). 198. Subsection 10(4) of the Act is replaced by the following: Exception (4) Subsections (1) and (2) do not apply to a chief executive if he or she declares, after giving notice to the Agency, that it is not practical to apply those subsections given the size of that portion of the public sector. 199. Section 11 of the Act is replaced by the following: Duty of chief executives 11. (1) Each chief executive must (a) subject to paragraph (c) and any other Act of Parliament and to the principles of procedural fairness and natural justice, protect the identity of persons involved in the disclosure process, including that of persons making disclosures, witnesses and persons alleged to be responsible for wrongdoings; (b) establish procedures to ensure the confidentiality of information collected in relation to disclosures of wrongdoings; and (c) if wrongdoing is found as a result of a disclosure made under section 12, promptly provide public access to information that (i) describes the wrongdoing, including information that could identify the person found to have committed it if it is necessary to identify the person to adequately describe the wrongdoing, and (ii) sets out the recommendations, if any, set out in any report made to the chief executive in relation to the wrongdoing and the corrective action, if any, taken by Respon the chief executive in relation to the wrongdoing or the reasons why no corrective action was taken. Exception (2) Nothing in paragraph (1)(c) requires a chief executive to provide public access to information the disclosure of which is subject to any restriction created by or under any Act of Parliament. 200. Subsection 13(1) of the Act is replaced by the following: Disclosure to the Commissioner 13. (1) A public servant may disclose information referred to in section 12 to the Commissioner. 201. The heading before section 19 and sections 19 to 21.1 of the Act are replaced by the following: COMPLAINTS RELATING TO REPRISALS PROHIBITION AGAINST REPRISALS Prohibition against reprisal 19. No person shall take any reprisal against a public servant or direct that one be taken against a public servant. COMPLAINTS Complaints 19.1 (1) A public servant or a former public servant who has reasonable grounds for believing that a reprisal has been taken against him or her may file with the Commissioner a complaint in a form acceptable to the Commissioner. The complaint may also be filed by a person designated by the public servant or former public servant for the purpose. Time for making complaint (2) The complaint must be filed not later than 60 days after the day on which the complainant knew, or in the Commissioner’s opinion ought to have known, that the reprisal was taken. Time extended (3) The complaint may be filed after the period referred to in subsection (2) if the Commissioner feels it is appropriate considering the circumstances of the complaint. C. 9 Effect of filing (4) Subject to subsection 19.4(4), the filing of a complaint under subsection (1) precludes the complainant from commencing any procedure under any other Act of Parliament or collective agreement in respect of the measure alleged to constitute the reprisal. Exception — RCMP (5) A member or former member of the Royal Canadian Mounted Police may not make a complaint under subsection (1) in relation to any matter that is the subject of an investigation or proceeding under Part IV or V of the Royal Canadian Mounted Police Act or an investigation or proceeding relating to administrative discharge under the Royal Canadian Mounted Police Regulations, 1988 unless Accoun (a) he or she has exhausted every procedure available under that Act or those regulations for dealing with the matter; and (b) the complaint is filed within 60 days after those procedures have been exhausted. Complaint in respect of past disclosures 19.2 (1) A public servant who alleges that a reprisal was taken against him or her by reason that he or she, in good faith, disclosed, after February 10, 2004 and before the day on which section 19.1 comes into force, a wrongdoing in the course of a parliamentary proceeding or an inquiry under Part I of the Inquiries Act may file a complaint under that section in respect of the reprisal. Time limit (2) The public servant may file the complaint within 60 days after the later of (a) the day on which section 19.1 comes into force, and (b) the day on which he or she knew or, in the opinion of the Commissioner, ought to have known that the reprisal was taken. Refusal to deal with complaint 19.3 (1) The Commissioner may refuse to deal with a complaint if he or she is of the opinion that (a) the subject-matter of the complaint has been adequately dealt with, or could more appropriately be dealt with, according to a procedure provided for under an Act of Parliament, other than this Act, or a collective agreement; Respon (b) if the complainant is a member or former member of the Royal Canadian Mounted Police, the subject-matter of the complaint has been adequately dealt with by the procedures referred to in subsection 19.1(5); (c) the complaint is beyond the jurisdiction of the Commissioner; or (d) the complaint was not made in good faith. Restriction (2) The Commissioner may not deal with a complaint if a person or body acting under another Act of Parliament or a collective agreement is dealing with the subject-matter of the complaint other than as a law enforcement authority. Royal Canadian Mounted Police Act (3) For the purpose of subsection (2), a person or body dealing with a matter in the course of an investigation or proceeding under the Royal Canadian Mounted Police Act is deemed not to be dealing with the matter as a law enforcement authority. No jurisdiction (4) The Commissioner ceases to have jurisdiction to deal with a complaint filed by a member or former member of the Royal Canadian Mounted Police if an application for judicial review of any decision relating to the procedures referred to in subsection 19.1(5) is made by the member. Time limit 19.4 (1) The Commissioner must decide whether or not to deal with a complaint within 15 days after it is filed. Notice — decision to deal with complaint (2) If the Commissioner decides to deal with a complaint, he or she must send a written notice of his or her decision to the complainant and to the person or entity that has the authority to take disciplinary action against each person who participated in the taking of a measure alleged by the complainant to constitute a reprisal. Reasons — decision not to deal with complaint (3) If the Commissioner decides not to deal with a complaint, he or she must send a written notice of his or her decision to the complainant and set out the reasons for the decision. C. 9 Effect of not dealing with complaint (4) If the Commissioner decides not to deal with a complaint and sends the complainant a written notice setting out the reasons for that decision, Accoun (a) subsection 19.1(4) ceases to apply; and (b) the period of time that begins on the day on which the complaint was filed and ends on the day on which the notice is sent is not to be included in the calculation of any time the complainant has to avail himself or herself of any procedure under any other Act of Parliament or collective agreement in respect of the measure alleged to constitute the reprisal. Exception (5) Subsection (4) does not apply if the Commissioner has decided not to deal with the complaint for the reason that it was not made in good faith. DISCIPLINARY ACTION Restriction on disciplinary action 19.5 (1) If the Commissioner decides to deal with a complaint and sends a written notice under subsection 19.4(2) and no disciplinary action has yet been taken against a person by reason of that person’s participation in the taking of a measure alleged by the complainant to constitute a reprisal, no disciplinary action may be taken during the period referred to in subsection (3) in relation to the person’s participation in the taking of the measure. Exception (2) Subsection (1) does not apply in respect of disciplinary action taken as a result of a settlement approved by the Commissioner or an order of the Tribunal. Period during which no disciplinary action may be taken (3) For the purposes of subsection (1), the period during which no disciplinary action may be taken is the period that begins on the day on which the Commissioner sends the notice referred to in subsection 19.4(2) and ends on the earliest of (a) the day on which the complaint is withdrawn or dismissed, (b) the day on which the Commissioner makes an application to the Tribunal for an order referred to in paragraph 20.4(1)(a) in respect of the complaint, and Respon (c) in the case where the Commissioner makes an application to the Tribunal for the orders referred to in paragraph 20.4(1)(b) in respect of the complaint, the day on which the Tribunal makes a determination that the complainant was not subject to a reprisal taken by the person. Period not to be included (4) If a time limit is provided for under any Act of Parliament or collective agreement for the taking of disciplinary action, the period during which disciplinary action may not be taken against the person by reason of subsection (1) is not to be included in the calculation of the prescribed time limit. Application (5) This section applies despite Part IV of the Royal Canadian Mounted Police Act. Suspension of disciplinary action 19.6 (1) If the Commissioner decides to deal with a complaint and sends a written notice under subsection 19.4(2) and disciplinary action has already been taken against a person by reason of the person’s participation in the taking of a measure alleged by the complainant to constitute a reprisal (a) the implementation of the disciplinary action — and the commencement or continuation of any procedure in relation to the disciplinary action by the person under any other Act of Parliament or collective agreement — is suspended for the period referred to in subsection (3); and (b) the appropriate chief executive must take the measures necessary to put the person in the situation the person was in before the disciplinary action was implemented. Exception (2) If the disciplinary action already taken against a person by reason of the person’s participation in the taking of a measure alleged by the complainant to constitute a reprisal has been the subject of a decision of a court, tribunal or arbitrator dealing with it on the merits, other than a decision made under the Royal Canadian Mounted Police Act, (a) subsection (1) does not apply; and (b) neither the Commissioner nor the Tribunal may deal with the issue of disciplinary action against that person. C. 9 Period of suspension (3) For the purposes of paragraph (1)(a), the suspension begins on the day on which the Commissioner sends the notice referred to in subsection 19.4(2) and ends on the earliest of Accoun (a) the day on which the complaint is withdrawn or dismissed, (b) the day on which the Commissioner makes an application to the Tribunal for an order referred to in paragraph 20.4(1)(a) in respect of the complaint, (c) in the case where the Commissioner makes an application to the Tribunal for the orders referred to in paragraph 20.4(1)(b) in respect of the complaint, the day on which the Tribunal makes a determination that the complainant was not subject to a reprisal taken by the person, and (d) the day on which the disciplinary action is taken as a result of a settlement approved by the Commissioner or an order of the Tribunal. Prior disciplinary action cancelled (4) Disciplinary action taken as a result of a settlement approved by the Commissioner or an order of the Tribunal cancels any prior disciplinary action. Application (5) This section applies despite Part IV of the Royal Canadian Mounted Police Act. INVESTIGATIONS INTO COMPLAINTS Designation of complaint investigator 19.7 (1) The Commissioner may designate a person as an investigator to investigate a complaint. Informality (2) Investigations into complaints are to be conducted as informally and expeditiously as possible. Notice to chief executive 19.8 (1) When commencing an investigation, the investigator must notify the chief executive concerned and inform that chief executive of the substance of the complaint to which the investigation relates. Notice to others (2) The investigator may also notify any other person he or she considers appropriate, including every person whose conduct is called into question by the complaint, and inform the person of the substance of the complaint. Respon 2006 Access 19.9 (1) If the investigator so requests, chief executives and public servants must provide the investigator with any facilities, assistance, information and access to their respective offices that the investigator may require for the purposes of the investigation. Insufficient cooperation (2) If the investigator concludes that he or she is unable to complete an investigation because of insufficient cooperation on the part of chief executives or public servants, he or she must make a report to the Commissioner to that effect under section 20.3. CONCILIATION Recommendation — conciliation 20. (1) At any time during the course of the investigation into a complaint the investigator may recommend to the Commissioner that a conciliator be appointed to attempt to bring about a settlement. Appointment of conciliator (2) The Commissioner may appoint a person as a conciliator for the purpose of attempting to bring about a settlement of the complaint. Eligibility (3) A person is not eligible to act as a conciliator in respect of a complaint if that person has already acted as an investigator in respect of that complaint. Confidentiality (4) Any information received by a conciliator in the course of attempting to reach a settlement of a complaint is confidential and may not be disclosed except with the consent of the person who gave the information. Who may settle — remedy 20.1 (1) A settlement that relates to the remedy to be provided to the complainant must be agreed to by the complainant and the person with the authority to implement the remedy. Who may settle — disciplinary action (2) A settlement that relates to the disciplinary action, if any, that is to be imposed on a person identified by the investigator as being the person or one of the persons who took the alleged reprisal must be agreed to by the person identified by the investigator and the person with the authority to take the disciplinary action. Referral of a settlement to Commissioner 20.2 (1) The terms of a settlement must be referred to the Commissioner for approval or rejection and the Commissioner must, without delay after approving or rejecting them, so certify and notify the parties to the settlement. C. 9 Complaint dismissed (2) If the Commissioner approves a settlement that relates to the remedy to be provided to the complainant, the complaint to which it relates is dismissed. Application barred (3) If the Commissioner approves a settlement that relates to disciplinary action, if any, that is to be imposed on a person, the Commissioner may not apply to the Tribunal for an order referred to in paragraph 20.4(1)(b) in respect of the person. Enforcement of settlement (4) A settlement approved by the Commissioner may, for the purpose of enforcement, be made an order of the Federal Court on application to that Court by the Commissioner or a party to the settlement. Accoun DECISION AFTER INVESTIGATION Investigator’s report to Commissioner 20.3 As soon as possible after the conclusion of the investigation, the investigator must submit a report of his or her findings to the Commissioner. Application to Tribunal 20.4 (1) If, after receipt of the report, the Commissioner is of the opinion that an application to the Tribunal in relation to the complaint is warranted, the Commissioner may apply to the Tribunal for a determination of whether or not a reprisal was taken against the complainant and, if the Tribunal determines that a reprisal was taken, for (a) an order respecting a remedy in favour of the complainant; or (b) an order respecting a remedy in favour of the complainant and an order respecting disciplinary action against any person or persons identified by the Commissioner in the application as being the person or persons who took the reprisal. Exception (2) The order respecting disciplinary action referred in paragraph (1)(b) may not be applied for in relation to a complaint the filing of which is permitted by section 19.2. Factors (3) In considering whether making an application to the Tribunal is warranted, the Commissioner must take into account whether Respon (a) there are reasonable grounds for believing that a reprisal was taken against the complainant; (b) the investigation into the complaint could not be completed because of lack of cooperation on the part of one or more chief executives or public servants; (c) the complaint should be dismissed on any ground mentioned in paragraphs 19.3(1)(a) to (d); and (d) having regard to all the circumstances relating to the complaint, it is in the public interest to make an application to the Tribunal. Dismissal of complaint 20.5 If, after receipt of the report, the Commissioner is of the opinion that an application to the Tribunal is not warranted in the circumstances, he or she must dismiss the complaint. Notice 20.6 The Commissioner must notify in writing each of the following of his or her action under section 20.4 or 20.5: (a) the complainant; (b) if the complainant is a public servant, the complainant’s employer; (c) if the complainant is a former public servant, the person or entity who was the complainant’s employer at the time the alleged reprisal was taken; (d) the person or persons identified in the investigator’s report as being the person or persons who may have taken the alleged reprisal; (e) the person or entity with the authority to take disciplinary action against any person referred to in paragraph (d); and (f) every person, other than the complainant, or entity that was sent a notice under subsection 19.4(2) in respect of the complaint. C. 9 Accoun PUBLIC SERVANTS DISCLOSURE PROTECTION TRIBUNAL Establishment Establishment 20.7 (1) There is established a tribunal to be known as the Public Servants Disclosure Protection Tribunal consisting of a Chairperson and not less than two and not more than six other members to be appointed by the Governor in Council. All of the members must be judges of the Federal Court or a superior court of a province. Tenure (2) Each member of the Tribunal is to be appointed for a term of not more than seven years and holds office so long as he or she remains a judge. Re-appointment (3) A member of the Tribunal, on the expiration of a first or any subsequent term of office, is eligible to be re-appointed for a further term. Temporary members (4) Subject to subsection (5), in addition to the members appointed under subsection (1), any judge or former judge of the Federal Court of Canada or the Federal Court or of a superior or district court of a province may, on the request of the Chairperson of the Tribunal made with the approval of the Governor in Council, act as a temporary member of the Tribunal. Consent required (5) Except in relation to a former judge, no request may be made under subsection (4) (a) to a judge of the Federal Court without the consent of the Chief Justice of that Court or of the Attorney General of Canada; or (b) to a judge of a superior court of a province without the consent of the chief justice or chief judge of that court or of the attorney general of the province. Approval of requests by Governor in Council (6) The Governor in Council may approve the making of requests under subsection (4) in general terms or for particular periods or purposes, and may limit the number of persons who may act as temporary members of the Tribunal. Respon 2006 Remuneration of temporary members (7) Each temporary member of the Tribunal who is a former judge is to be paid the remuneration determined by the Governor in Council. Expenses (8) Each member of the Tribunal and each temporary member of the Tribunal is entitled to be paid the expenses fixed by the Governor in Council. Acting after expiration of appointment (9) A member of the Tribunal whose appointment expires may, with the approval of the Chairperson, conclude any hearing that the member has begun and he or she is deemed to be a temporary member of the Tribunal for the purpose. Administration Registry 20.8 (1) There shall be a Registry of the Tribunal consisting of an office in the National Capital Region described in the schedule to the National Capital Act. Registrar and other staff (2) The registrar of the Tribunal and the other officers and employees necessary for the proper conduct of the work of the Tribunal are to be appointed in accordance with the Public Service Employment Act. Technical experts (3) If requested to do so by the Chairperson, the registrar of the Tribunal may engage persons having technical or special knowledge to assist or advise members of the Tribunal in any matter and may, with the approval of the Treasury Board, fix and pay their remuneration and reimburse their expenses. Sittings 20.9 The Tribunal may sit at the times and at the places throughout Canada that it considers necessary or desirable for the proper conduct of its business. Proceedings Conduct of proceedings 21. (1) Proceedings before the Tribunal are to be conducted as informally and expeditiously as the requirements of natural justice and the rules of procedure allow. Tribunal rules of procedure (2) The Chairperson of the Tribunal may make rules of procedure governing the practice and procedure before the Tribunal, including, but not limited to, rules governing (a) the giving of notices to parties; C. 9 Accoun (b) the addition of parties and interested persons to the proceedings; (c) the summoning of witnesses; (d) the production and service of documents; (e) discovery proceedings; and (f) pre-hearing conferences. RCMP (3) The Chairperson must consult with the Royal Canadian Mounted Police before making any rules and must ensure that the rules take that organization’s security and confidentiality needs into account. Publication of proposed rules (4) A copy of each rule that the Chairperson proposes to make must be published in the Canada Gazette, and a reasonable opportunity must be given to interested persons to make representations with respect to it. Exception (5) A proposed rule need not be published more than once, whether or not it has been amended as a result of any representations. Applications by Commissioner Assignment of member or members 21.1 (1) On receipt of an application made by the Commissioner under subsection 20.4(1) the Chairperson of the Tribunal must assign a member of the Tribunal to deal with the application, but the Chairperson may assign a panel of three members if he or she considers that the complexity of the matter requires that it be dealt with by three members. Every decision of the member or panel is a decision of the Tribunal. Chair of panel (2) If a panel of three members has been assigned, the Chairperson must designate one of them to chair the proceedings, but the Chairperson must chair the proceedings if he or she is a member of the panel. Powers 21.2 (1) The member or panel may (a) in the same manner and to the same extent as a superior court of record, summon and enforce the attendance of witnesses and compel them to give oral or written evidence on oath and to produce any documents and things that the member or panel considers necessary for the full hearing and consideration of the application; Respon 2006 (b) administer oaths; (c) subject to subsection (2), receive and accept any evidence and other information, whether on oath or by affidavit or otherwise, that the member or panel sees fit, whether or not that evidence or information is or would be admissible in a court of law; (d) lengthen or shorten any time limit established by the rules of procedure; and (e) decide any procedural or evidentiary question. Conciliators as witnesses (2) A conciliator appointed to settle the complaint is not a competent or compellable witness at a hearing. Witness fees (3) Any person summoned to attend a hearing is entitled, at the discretion of the member or panel, to receive the same fees and allowances as those paid to persons summoned to attend before the Federal Court. Hearing may be in camera 21.3 A hearing before the Tribunal may be held in camera at the request of any party if the party establishes to the satisfaction of the Tribunal that the circumstances of the case so require. Determination — paragraph 20.4(1)(a) 21.4 (1) On application made by the Commissioner for an order referred to in paragraph 20.4(1)(a) the Tribunal must determine whether the complainant has been subject to a reprisal and, if it so determines, the Tribunal may make an order granting a remedy to the complainant. Parties (2) The parties in respect of the application are the Commissioner and (a) the complainant; (b) if the complainant is a public servant, the complainant’s employer; and (c) if the complainant is a former public servant, the person or entity who was the complainant’s employer at the time the alleged reprisal was taken. Addition of party (3) If the Tribunal is of the opinion that a person who has been identified as being a person who may have taken the alleged reprisal may be directly affected by a determination of the Tribunal, the Tribunal may add that person as a party. C. 9 Determination — paragraph 20.4(1)(b) 21.5 (1) On application made by the Commissioner for the orders referred to in paragraph 20.4(1)(b) the Tribunal must determine whether the complainant has been subject to a reprisal and whether the person or persons identified by the Commissioner in the application as having taken the alleged reprisal actually took it. If it determines that a reprisal was taken, the Tribunal may, regardless of whether or not it has determined that the reprisal was taken by the person or persons named in the application, make an order granting a remedy to the complainant. Parties (2) The parties in respect of proceedings held for the purpose of subsection (1) are the Commissioner and Accoun (a) the complainant; (b) if the complainant is a public servant, the complainant’s employer; (c) if the complainant is a former public servant, the person or entity who was the complainant’s employer at the time the alleged reprisal was taken; and (d) the person or persons identified in the application as being the person or persons who may have taken the alleged reprisal. Reasons (3) The Tribunal must issue written reasons for its decisions under subsection (1) as soon as possible. Order respecting disciplinary action (4) After issuing the reasons under subsection (3), the Tribunal may make an order respecting the disciplinary action to be taken against any person who was determined by it to have taken the reprisal. Parties (5) The parties in respect of proceedings held for the purpose of subsection (4) are the Commissioner, the person against whom the disciplinary action would be taken and, for the purpose of making submissions regarding disciplinary action on behalf of the person or entity who would be required to implement the order if it were made, any person designated by the Tribunal. Rights of parties 21.6 (1) Every party must be given a full and ample opportunity to participate at any proceedings before the Tribunal — including, Respon but not limited to, by appearing at any hearing, by presenting evidence and by making representations — and to be assisted or represented by counsel, or by any person, for that purpose. Duty of Commissioner (2) The Commissioner must, in proceedings before the Tribunal, adopt the position that, in his or her opinion, is in the public interest having regard to the nature of the complaint. Limitation — proceedings relating to remedy (3) With respect to the portions of proceedings that relate solely to the remedy, if any, to be ordered in favour of the complainant, the Tribunal may, despite subsection (1), limit the participation of any person or persons identified as being the person or persons who may have taken the alleged reprisal. Remedies 21.7 (1) To provide an appropriate remedy to the complainant, the Tribunal may, by order, require the employer or the appropriate chief executive, or any person acting on their behalf, to take all necessary measures to (a) permit the complainant to return to his or her duties; (b) reinstate the complainant or pay compensation to the complainant in lieu of reinstatement if, in the Tribunal’s opinion, the relationship of trust between the parties cannot be restored; (c) pay to the complainant compensation in an amount not greater than the amount that, in the Tribunal’s opinion, is equivalent to the remuneration that would, but for the reprisal, have been paid to the complainant; (d) rescind any measure or action, including any disciplinary action, and pay compensation to the complainant in an amount not greater than the amount that, in the Tribunal’s opinion, is equivalent to any financial or other penalty imposed on the complainant; (e) pay to the complainant an amount equal to any expenses and any other financial losses incurred by the complainant as a direct result of the reprisal; or (f) compensate the complainant, by an amount of not more than $10,000, for any pain and suffering that the complainant experienced as a result of the reprisal. C. 9 Royal Canadian Mounted Police Act (2) The Tribunal may make an order under subsection (1) in relation to a member of the Royal Canadian Mounted Police despite subsections 42(4) and (6), 45.16(7) and 45.26(6) of the Royal Canadian Mounted Police Act. Disciplinary action 21.8 (1) The Tribunal may, by order, require the Governor in Council, the employer or the appropriate chief executive, or any person acting on their behalf, to take all necessary measures to take the disciplinary action, including termination of employment or revocation of appointment, specified by the Tribunal against any person named in the application who was determined by it to have taken the reprisal. Factors (2) In making the order the Tribunal must take into account the factors ordinarily considered by employers when they discipline their employees, including, but not limited to, Accoun (a) the gravity of the reprisal; (b) the level of responsibility inherent in the position that the person occupies; (c) the person’s previous employment record; (d) whether the reprisal was an isolated incident; (e) the person’s rehabilitative potential; and (f) the deterrent effect of the disciplinary action. Additional factors (3) In making the order the Tribunal must also take into account (a) the extent to which the nature of the reprisal discourages the disclosure of wrongdoing under this Act; and (b) the extent to which inadequate disciplinary action in relation to the reprisal would have an adverse effect on confidence in public institutions. Grievance precluded (4) The person against whom disciplinary action is taken as a result of an order made under subsection (1) may not initiate a griev2006 Respon ance or other similar procedure under an Act of Parliament or a collective agreement in respect of the disciplinary action. Restriction — RCMP (5) The disciplinary action that the Tribunal may order with respect to a member of the Royal Canadian Mounted Police is limited to a disciplinary action referred to in subsection 41(1), or a sanction referred to in subsection 45.12(3), of the Royal Canadian Mounted Police Act, or any combination of them. Royal Canadian Mounted Police Act (6) The Tribunal may make an order under subsection (1) in relation to a member of the Royal Canadian Mounted Police despite subsections 42(4) and (6), 45.16(7) and 45.26(6) of the Royal Canadian Mounted Police Act. Royal Canadian Mounted Police Act (7) An order made under subsection (1) in relation to a member of the Royal Canadian Mounted Police may be implemented by the Governor in Council or Commissioner of the Royal Canadian Mounted Police despite subsection 12(2) and Part IV of the Royal Canadian Mounted Police Act. Filing of orders in Federal Court 21.9 (1) The Commissioner must, on the request in writing of any person or employer affected by any order of the Tribunal, file a certified copy of the order, exclusive of the reasons for the order, in the Federal Court, unless, in his or her opinion, (a) there is no indication of failure or likelihood of failure to comply with the order; or (b) there is other good reason why the filing of the order in the Federal Court would serve no useful purpose. Effect of filing (2) An order of the Tribunal becomes an order of the Federal Court when a certified copy of the order is filed in that court, and it may subsequently be enforced as such. 202. (1) Paragraph 22(a) of the Act is replaced by the following: (a) provide information and advice regarding the making of disclosures under this Act and the conduct of investigations by the Commissioner; C. 9 Accoun (2) Paragraphs 22(g) and (h) of the Act are replaced by the following: (g) review the results of investigations into disclosures and those commenced under section 33 and report his or her findings to the persons who made the disclosures and to the appropriate chief executives; (h) make recommendations to chief executives concerning the measures to be taken to correct wrongdoings and review reports on measures taken by chief executives in response to those recommendations; and (i) receive, review, investigate and otherwise deal with complaints made in respect of reprisals. 203. Sections 24 and 25 of the Act are replaced by the following: Right to refuse 24. (1) The Commissioner may refuse to deal with a disclosure or to commence an investigation — and he or she may cease an investigation — if he or she is of the opinion that (a) the subject-matter of the disclosure or the investigation has been adequately dealt with, or could more appropriately be dealt with, according to a procedure provided for under another Act of Parliament; (b) the subject-matter of the disclosure or the investigation is not sufficiently important; (c) the disclosure was not made in good faith or the information that led to the investigation under section 33 was not provided in good faith; (d) the length of time that has elapsed since the date when the subject-matter of the disclosure or the investigation arose is such that dealing with it would serve no useful purpose; (e) the subject-matter of the disclosure or the investigation relates to a matter that results from a balanced and informed decisionmaking process on a public policy issue; or Respon (f) there is a valid reason for not dealing with the subject-matter of the disclosure or the investigation. Adjudicative decisions (2) The Commissioner must refuse to deal with a disclosure or to commence an investigation if he or she is of the opinion that the subject-matter of the disclosure or the investigation relates solely to a decision that was made in the exercise of an adjudicative function under an Act of Parliament, including a decision of the Commissioner of the Royal Canadian Mounted Police under Part IV or V of the Royal Canadian Mounted Police Act. Notice of refusal (3) If the Commissioner refuses to deal with a disclosure or to commence an investigation, he or she must inform the person who made the disclosure, or who provided the information referred to in section 33, as the case may be, and give reasons why he or she did so. Delegation 25. (1) The Commissioner may delegate to any employee in the Office of the Public Sector Integrity Commissioner any of his or her powers and duties under this Act, except (a) the power to delegate under this section; (b) the power to decide not to deal with a complaint filed under subsection 19.1(1); (c) the power in section 20.2 to approve or reject a settlement; (d) the power in section 20.4 to apply to the Tribunal; (e) the power in section 20.5 to dismiss a complaint; (f) the duties in paragraphs 22(g) and (h) to review the result of investigations, to report findings and to make recommendations; (g) the power in section 24 to refuse to deal with a disclosure or to commence an investigation, the power in that section to cease an investigation and the duty in that section to provide reasons; C. 9 Accoun (h) the power to issue, in the exercise of any powers referred to in subsection 29(1), a subpoena or other request or summons to appear before the Commissioner or a person appointed to conduct an investigation; (i) the power in section 33 to commence an investigation; (j) the power in section 34 to refer a matter to another authority; (k) the power in subsection 35(1) to remit information; (l) the power to request that a chief executive provide notice as referred to in section 36; and (m) the power in section 37 and the power and duties in section 38 to make a report. Restriction concerning certain investigations (2) The Commissioner may not delegate the conduct of an investigation that involves or may involve information relating to international relations, national defence, national security or the detection, prevention or suppression of criminal, subversive or hostile activities, except to one of a maximum of four officers or employees of the Office of the Public Sector Integrity Commissioner specifically designated by the Commissioner for the purpose of conducting those investigations. Access to legal advice 25.1 (1) The Commissioner may provide access to legal advice to (a) any public servant who is considering making a disclosure of wrongdoing under this Act; (b) any person who is not a public servant who is considering providing information to the Commissioner in relation to any act or omission that may constitute a wrongdoing under this Act; (c) any public servant who has made a disclosure under this Act; (d) any person who is or has been involved in any investigation conducted by a senior officer or by or on behalf of the Commissioner under this Act; Respon (e) any public servant who is considering making a complaint under this Act regarding an alleged reprisal taken against him or her; or (f) any person who is or has been involved in a proceeding under this Act regarding an alleged reprisal. Condition (2) The Commissioner may provide the access to legal advice only if the public servant or person satisfies the Commissioner that they do not have other access to legal advice at no cost to them. Additional condition (3) In addition to the condition referred to in subsection (2), the Commissioner may provide access to legal advice to a public servant referred to in paragraph (1)(a) or a person referred to in paragraph (1)(b) only if the Commissioner is of the opinion that the act or omission to which the disclosure or the information relates, as the case may be, likely constitutes a wrongdoing under this Act and that the disclosure or the provision of the information is likely to lead to an investigation being conducted under this Act. Maximum payment (4) The maximum amount that may be paid by the Commissioner under this section for legal advice provided or to be provided to any particular public servant or person in relation to any particular act or omission that may constitute a wrongdoing or reprisal is $1,500. Maximum value (5) If, for the purpose of this section, the Commissioner chooses to provide access to legal advice to any particular public servant or person in relation to a particular act or omission that may constitute a wrongdoing or reprisal through legal counsel employed in his or her office, the monetary value of the time spent by them in providing the legal advice may not be more than $1,500. Deemed amount (6) If the Commissioner is of the opinion that there are exceptional circumstances, the maximum amount provided for in subsections (4) and (5) is deemed to be $3,000. C. 9 Factors (7) In determining the amount to be paid for legal advice, or the monetary value of the time to be spent providing it, as the case may be, the Commissioner must take into account Accoun (a) the degree to which the public interest may be affected by the subject-matter of the disclosure or the information provided; and (b) the degree to which the public servant or person seeking the legal advice may be adversely affected as a result of his or her involvement in making the disclosure, providing the information, making the complaint or participating in the investigation or the proceeding, as the case may be. Grants and contributions (8) For the purpose of providing access to legal advice under this section, the Commissioner may make grants or contributions in accordance with terms and conditions approved by the Treasury Board. Solicitor-client basis (9) The relationship between the public servant or person to whom access to legal advice is provided under this section and the legal counsel providing the advice is that of solicitor and client. 204. Subsection 26(1) of the Act is replaced by the following: Purpose of investigations 26. (1) Investigations into disclosures and investigations commenced under section 33 are for the purpose of bringing the existence of wrongdoings to the attention of chief executives and making recommendations concerning corrective measures to be taken by them. 205. (1) Subsection 27(1) of the English version of the Act is replaced by the following: Notice to chief executive 27. (1) When commencing an investigation, the Commissioner must notify the chief executive concerned and inform that chief executive of the substance of the disclosure to which the investigation relates. (2) Subsection 27(3) of the English version of the Act is replaced by the following: 2006 Opportunity to answer allegations Respon (3) It is not necessary for the Commissioner to hold any hearing and no person is entitled as of right to be heard by the Commissioner, but if at any time during the course of an investigation it appears to the Commissioner that there may be sufficient grounds to make a report or recommendation that may adversely affect any individual or any portion of the public sector, the Commissioner must, before completing the investigation, take every reasonable measure to give to that individual or the chief executive responsible for that portion of the public sector a full and ample opportunity to answer any allegation, and to be assisted or represented by counsel, or by any person, for that purpose. 206. Subsection 28(1) of the Act is replaced by the following: Access 28. (1) If the Commissioner so requests for the purposes of an investigation, chief executives and public servants must provide him or her, or the person conducting the investigation, with any facilities, assistance, information and access to their respective offices that the Commissioner may require. 207. Subsection 29(1) of the Act is replaced by the following: Powers 29. (1) In conducting an investigation, the Commissioner has all the powers of a commissioner under Part II of the Inquiries Act. 208. Section 36 of the English version of the Act is replaced by the following: Request for notice of action 36. In making a report to a chief executive in respect of an investigation, the Commissioner may, if he or she considers it appropriate to do so, request that the chief executive provide the Commissioner, within a time specified in the report, with notice of any action taken or proposed to be taken to implement the recommendations contained in the report or reasons why no such action has been or is proposed to be taken. 209. The portion of section 37 of the Act before paragraph (a) is replaced by the following: C. 9 Report to appropriate Minister or governing council 37. If the Commissioner considers it necessary, he or she may report any matter that arises out of an investigation to the Minister responsible for the portion of the public sector concerned or, if the matter relates to a Crown corporation, to its board or governing council, including, but not limited to, when the Commissioner is of the opinion that Accoun 210. (1) Subsection 38(1) of the Act is replaced by the following: Annual report 38. (1) Within three months after the end of each financial year, the Commissioner must prepare an annual report in respect of the activities of the Commissioner during that financial year. (2) Paragraph 38(2)(b) of the Act is replaced by the following: (b) the number of disclosures received and complaints made in relation to reprisals, and the number of them that were acted on and those that were not acted on; (3) Subsection 38(2) of the Act is amended by adding the following after paragraph (d): (d.1) in relation to complaints made in relation to reprisals, the number of settlements, applications to the Tribunal and decisions to dismiss them; (4) Subsections 38(3) to (5) of the Act are replaced by the following: Special report (3) The Commissioner may, at any time, prepare a special report referring to and commenting on any matter within the scope of his or her powers and duties under this Act if, in his or her opinion, the matter is of such urgency or importance that a report on it should not be deferred until the time provided for the submission of the annual report. Case report (3.1) If the Commissioner makes a report to a chief executive in respect of an investigation into a disclosure or an investigation commenced under section 33 and there is a finding of wrongdoing in the report, the Commissioner must, within 60 days after making the report, prepare a case report setting out Respon 2006 (a) the finding of wrongdoing; (b) the recommendations, if any, set out in the report made to the chief executive; (c) the time, if any, that was specified in the report to the chief executive for the chief executive to provide the notice referred to in section 36; (d) the Commissioner’s opinion as to whether the chief executive’s response to the report to the chief executive, up to that point in time, is satisfactory; and (e) the chief executive’s written comments, if any. Opportunity to make representations (3.2) Before making a case report, the Commissioner must provide the chief executive with a reasonable opportunity to make written comments. Tabling of report (3.3) Within the period referred to in subsection (1) for the annual report and the period referred to in subsection (3.1) for a case report, and at any time for a special report, the Commissioner shall submit the report to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides forthwith after receiving it or, if that House is not then sitting, on any of the first fifteen days on which that House is sitting after the Speaker receives it. Referral to Committee (4) After it is tabled, every report the Commissioner stands referred to the committee of the Senate, the House of Commons or both Houses of Parliament that may be designated or established for the purpose of reviewing the Commissioner’s reports. 211. The Act is amended by adding the following after section 38: Report to Agency — disclosures under section 12 38.1 (1) Within 60 days after the end of each financial year, each chief executive must prepare and submit to the Agency a report for that financial year on the activities, in the portion of the public sector for which the chief executive is responsible, respecting disclosures made under section 12. C. 9 Report to Minister — disclosures under section 12 (2) Within six months after the end of each financial year, the President of the Agency must prepare and submit to the Minister a report for that financial year that provides an overview of the activities, throughout the public sector, respecting disclosures made under section 12. Content (3) The report under subsection (2) must set out Accoun (a) the number of general inquiries relating to this Act; (b) the number of disclosures received, the number of those that were acted on and the number of those that were not acted on; (c) the number of investigations commenced as a result of disclosures made under section 12; (d) whether there are any systemic problems that give rise to wrongdoings; and (e) any other matter that the President of the Agency considers necessary. Report to Parliament (4) The Minister must cause the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report. 212. Subsection 39.3(1) of the Act is replaced by the following: Staff 39.3 (1) The Deputy Commissioner and the officers and employees that are necessary to enable the Commissioner to perform his or her duties and functions are to be appointed in accordance with the Public Service Employment Act. Duties and powers of Deputy Commissioner (1.1) The Deputy Commissioner exercises any of the powers and performs any of the duties and functions that the Commissioner may assign. Scope of assigned duties and functions (1.2) The assignment of powers, duties and functions by the Commissioner to the Deputy Commissioner may include the delegation to the Deputy Commissioner of any of the Commissioner’s powers, duties and functions, including those referred to in paragraphs 25(1)(a) to (k) and the powers in sections 36 and 37, but it may Respon not include the delegation of the Commissioner’s power or any of his or her duties in section 38. 213. The heading before section 40 of the Act is replaced by the following: PROHIBITIONS GENERAL PROHIBITIONS 214. Section 40 of the English version of the Act is replaced by the following: False statements 40. No person shall, in a disclosure of a wrongdoing or in the course of any investigation under this Act, knowingly make a false or misleading statement, either orally or in writing, to a supervisor, a senior officer, the Commissioner or a person acting on behalf of or under the direction of any of them. 215. The Act is amended by adding the following after section 42: EMPLOYERS Prohibition — employer 42.1 (1) No employer shall take any of the following measures against an employee by reason only that the employee has, in good faith and on the basis of reasonable belief, provided information concerning an alleged wrongdoing in the public sector to the Commissioner or, if the alleged wrongdoing relates to the Office of the Public Sector Integrity Commissioner, to the Auditor General of Canada — or by reason only that the employer believes that the employee will do so: (a) take a disciplinary measure against the employee; (b) demote the employee; (c) terminate the employment of the employee; (d) take any measure that adversely affects the employment or working conditions of the employee; or (e) threaten to take any measure referred to in paragraphs (a) to (d). C. 9 Saving (2) Nothing in subsection (1) impairs any right of an employee either at law or under an employment contract or collective agreement. Meaning of “employer” (3) For the purpose of subsection (1), “employer” does not include an employer in the public sector. Accoun CONTRACTS Prohibition — termination of contract or withholding of payments 42.2 (1) A public servant or any person purporting to act on behalf of Her Majesty in right of Canada or a portion of the public sector shall not terminate any contract with Her Majesty in right of Canada or any portion of the public sector, or withhold any payment that is due and payable in respect of any such contract, by reason only that the other party to the contract or any of that other party’s employees has, in good faith and on the basis of reasonable belief, provided information concerning an alleged wrongdoing in the public sector to the Commissioner or, if the alleged wrongdoing relates to the Office of the Public Sector Integrity Commissioner, to the Auditor General of Canada. Prohibition — entering into contract (2) A public servant or any person purporting to act on behalf of Her Majesty in right of Canada or a portion of the public sector shall not, in considering whether to enter into a contract with a person, take into account that the person or any of the person’s employees has, in the past, in good faith and on the basis of reasonable belief, provided information concerning an alleged wrongdoing in the public sector to the Commissioner or, if the alleged wrongdoing relates to the Office of the Public Sector Integrity Commissioner, to the Auditor General of Canada. Meaning of “contract” (3) In this section, “contract” includes, but is not limited to, an agreement for the supply of goods or the provision of services, an agreement relating to real property or immoveables, a loan, a grant and a contribution, but does not include an agreement by a public servant, or by a person Respon appointed by the Governor in Council or by a minister of the Crown, to perform the duties to which their employment or appointment relates. OFFENCE Offence and punishment 42.3 Every person who knowingly contravenes section 19 or contravenes any of sections 40 to 42.2 commits an offence and is guilty of (a) an indictable offence and liable to a fine of not more than $10,000 or to imprisonment for a term of not more than two years, or to both that fine and that imprisonment; or (b) an offence punishable on summary conviction and liable to a fine of not more than $5,000 or to imprisonment for a term of not more than six months, or to both that fine and that imprisonment. 216. Section 46 of the Act is renumbered as subsection 46(1) and is amended by adding the following: Exceptions (2) Subsection (1) does not apply to (a) the Commissioner or any person acting on behalf of or under the direction of the Commissioner, with respect to the Commissioner’s participation in any proceedings before the Tribunal; or (b) a person designated as an investigator under section 19.7 with regard to his or her participation in the investigation for which he or she was so designated. 217. (1) The portion of subsection 49(1) of the Act before paragraph (a) is replaced by the following: Restriction 49. (1) Subject to subsections (2) and (3), when referring any matter under section 34 or making a report under section 38, the Commissioner shall not disclose any information that the Government of Canada or any portion of the public sector is taking measures to protect, including, but not limited to, information that (2) Paragraph 49(3)(a) of the Act is replaced by the following: C. 9 Accoun (a) the disclosure is necessary to refer any matter under section 34 or to establish the grounds for any finding or recommendation in a report under section 38; and 218. The portion of section 51 of the Act before paragraph (b) is replaced by the following: Saving 51. Subject to subsections 19.1(4) and 21.8(4), nothing in this Act is to be construed as prohibiting (a) the presentation of an individual grievance under subsection 208(1) of the Public Service Labour Relations Act; or 219. The Act is amended by adding the following after section 51: Power to temporarily assign other duties 51.1 (1) A chief executive may temporarily assign other duties to a public servant who is involved in a disclosure or a complaint in respect of a reprisal if the chief executive believes on reasonable grounds that the public servant’s involvement has become known in the public servant’s workplace or that the temporary assignment is necessary to maintain the effective operation of the workplace. Public servants who may be assigned other duties (2) For the purposes of this section, the public servants involved in a disclosure or a complaint in respect of a reprisal are (a) the public servant who made the disclosure and every public servant who is the subject of the disclosure; (b) the public servant who filed the complaint and every public servant who is alleged to have taken the reprisal to which the complaint relates; and (c) every public servant who is a witness or potential witness in the investigation, if any, relating to the disclosure or in any proceeding dealing with the complaint. Duration (3) The assignment may be for a period of up to three months, but the chief executive may renew the assignment one or more times if he or she believes that the conditions giving rise to it continue to exist on the expiry of a previous period. Respon Duties (4) Subject to subsection (7), the duties that may be assigned must be in the same portion of the public sector in which the public servant is employed and must be comparable to the public servant’s normal duties. Consent (5) Subsection (1) applies to a public servant, other than a public servant who is the subject of the disclosure or who is alleged to have taken the reprisal, as the case may be, only if the public servant consents in writing to the assignment. The assignment is deemed not to be a reprisal if the public servant’s consent is given. Not disciplinary action (6) The assignment of other duties to a public servant who is the subject of the disclosure or who is alleged to have taken the reprisal, as the case may be, is deemed not to be a disciplinary action. Duties in other portion of the public sector (7) A public servant may be temporarily assigned duties in another portion of the public sector if both the chief executive of that other portion and the public servant consent to the assignment and the duties are comparable to the public servant’s normal duties. The assignment is deemed not to be a reprisal or a disciplinary action if the public servant’s consent is given. Judicial review 51.2 (1) For the purposes of section 18.1 of the Federal Courts Act, (a) a public servant who has made a disclosure to the Commissioner under section 13 is deemed to be directly affected by any report made by the Commissioner in relation to the disclosure; (b) a public servant or former public servant who files a complaint under subsection 19.1(1) is deemed to be directly affected by a decision of the Commissioner to refuse to deal with or to dismiss the complaint; and (c) a party to a proceeding before the Tribunal is deemed to be directly affected by a decision of the Tribunal in relation to that proceeding. C. 9 Rights of action (2) Nothing in this Act affects any right of action that a public servant may otherwise have in relation to any act or omission giving rise to a dispute that does not relate to his or her terms or conditions of employment. Authority to act for Commissioner of the Royal Canadian Mounted Police 51.3 The Commissioner of the Royal Canadian Mounted Police may authorize a Deputy or Assistant Commissioner of the Royal Canadian Mounted Police to exercise the powers or perform the duties and functions of the Commissioner of the Royal Canadian Mounted Police as a chief executive in respect of section 11, subsection 19.4(2), paragraph 19.6(1)(b), subsections 19.8(1) and 19.9(1), paragraphs 22 (g) and (h), subsections 26(1), 27(1) and (3), 28(1) and 29(3) and sections 36 and 50. Accoun 220. Subsection 54.1(1) of the Act is replaced by the following: Transitional — staff 54.1 (1) Each person employed in the Agency in the administrative unit known as the Office of the Public Service Integrity Officer assumes, on the coming into force of this section, a position in the Office of the Public Sector Integrity Commissioner. 221. Section 55 of the Act is replaced by the following: 55. The Access to Information Act is amended by adding the following in numerical order: Public Sector Integrity Commissioner 16.4 (1) The Public Sector Integrity Commissioner shall refuse to disclose any record requested under this Act that contains information (a) obtained or created by him or her or on his or her behalf in the course of an investigation into a disclosure made under the Public Servants Disclosure Protection Act or an investigation commenced under section 33 of that Act; or (b) received by a conciliator in the course of attempting to reach a settlement of a complaint filed under subsection 19.1(1) of that Act. Respon 2006 Exception (2) Subsection (1) does not apply in respect of a record that contains information referred to in paragraph (1)(b) if the person who gave the information to the conciliator consents to the record being disclosed. Public Servants Disclosure Protection Act 16.5 The head of a government institution shall refuse to disclose any record requested under this Act that contains information created for the purpose of making a disclosure under the Public Servants Disclosure Protection Act or in the course of an investigation into a disclosure under that Act. 55.1 Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Office of the Public Sector Integrity Commissioner Commissariat à l’intégrité du secteur public Registry of the Public Servants Disclosure Protection Tribunal Greffe du Tribunal de la protection des fonctionnaires divulgateurs d’actes répréhensibles 222. Section 56 of the Act is replaced by the following: 56. The schedule to the Canada Evidence Act is amended by adding the following after item 19: 20. The Public Sector Integrity Commissioner, for the purposes of sections 26 to 35 of the Public Servants Disclosure Protection Act. R.S., c. F-7; 2002, c. 8, s. 14 FEDERAL COURTS ACT 56.1 Subsection 28(1) of the Federal Courts Act is amended by striking out the word “and” at the end of paragraph (o), by adding the word “and” at the end of paragraph (p) and by adding the following after paragraph (p): C. 9 Accoun (q) the Public Servants Disclosure Protection Tribunal established by the Public Servants Disclosure Protection Act. R.S., c. F-11 FINANCIAL ADMINISTRATION ACT 56.2 Schedule I.1 to the Financial Administration Act is amended by adding the following in alphabetical order in column I: Office of the Public Sector Integrity Commissioner Commissariat à l’intégrité du secteur public and a corresponding reference in column II to the “President of the Treasury Board”. 56.3 Schedule I.1 to the Act is amended by adding the following in alphabetical order in column I: Registry of the Public Servants Disclosure Protection Tribunal Greffe du Tribunal de la protection des fonctionnaires divulgateurs d’actes répréhensibles and a corresponding reference in column II to the “Minister of Canadian Heritage”. 56.4 Schedule IV to the Act is amended by adding the following in alphabetical order: Office of the Public Sector Integrity Commissioner Commissariat à l’intégrité du secteur public Registry of the Public Servants Disclosure Protection Tribunal Greffe du Tribunal de la protection des fonctionnaires divulgateurs d’actes répréhensibles R.S., c. 31 (4th Supp.) OFFICIAL LANGUAGES ACT 56.5 Subsection 24(3) of the Official Languages Act is amended by adding the following after paragraph (b): Respon (b.1) the Office of the Public Sector Integrity Commissioner; 223. Section 57 of the Act is replaced by the following: 57. Subsection 9(3) of the Personal Information Protection and Electronic Documents Act is amended by striking out the word “or” at the end of paragraph (c.1), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the information was created for the purpose of making a disclosure under the Public Servants Disclosure Protection Act or in the course of an investigation into a disclosure under that Act. 224. Sections 58 and 58.1 of the Act are replaced by the following: 58. The Privacy Act is amended by adding the following in numerical order: Public Sector Integrity Commissioner 22.2 The Public Sector Integrity Commissioner shall refuse to disclose any personal information requested under subsection 12(1) that was obtained or created by him or her or on his or her behalf in the course of an investigation into a disclosure made under the Public Servants Disclosure Protection Act or an investigation commenced under section 33 of that Act. Public Servants Disclosure Protection Act 22.3 The head of a government institution shall refuse to disclose personal information requested under subsection 12(1) that was created for the purpose of making a disclosure under the Public Servants Disclosure Protection Act or in the course of an investigation into a disclosure under that Act. 58.1 The schedule to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: C. 9 Accoun Office of the Public Sector Integrity Commissioner Commissariat à l’intégrité du secteur public Registry of the Public Servants Disclosure Protection Tribunal Greffe du Tribunal de la protection des fonctionnaires divulgateurs d’actes répréhensibles 225. Subsection 59(1) of the Act is repealed. Coordinating Amendment 226. On the later of the day on which section 45 of the Conflict of Interest Act comes into force and the day on which section 24 of the Public Servants Disclosure Protection Act comes into force ― or, if those days are the same day, then on that day ― section 24 of the Public Servants Disclosure Protection Act is amended by adding the following after subsection (2): Jurisdiction of the Conflict of Interest and Ethics Commissioner R.S., c. S-3 (2.1) The Commissioner must refuse to deal with a disclosure or to commence an investigation if he or she is of the opinion that the subject-matter of the disclosure or the investigation is within the jurisdiction of the Conflict of Interest and Ethics Commissioner under the Conflict of Interest Act and must refer the matter to the Conflict of Interest and Ethics Commissioner. SALARIES ACT 227. The Salaries Act is amended by adding the following after section 1: PUBLIC APPOINTMENTS COMMISSION Functions of Commission 1.1 (1) The Governor in Council may establish a Public Appointments Commission, consisting of a chairperson and not more than four other members (a) to oversee, monitor, review and report on the selection process for appointments and reappointments by the Governor in Council to agencies, boards, commissions and Crown corporations, and to ensure that every such Respon process is widely made public and conducted in a fair, open and transparent manner and that the appointments are based on merit; (b) to evaluate and approve the selection processes proposed by ministers to fill vacancies and determine reappointments within their portfolios, monitor and review those processes, and ensure that they are implemented as approved, giving special attention to any instances in which ministers make appointments that are inconsistent with the recommendations of appointment panels; (c) to develop and establish a code of practice for appointments by the Governor in Council and ministers that sets out the steps that are necessary for a fair, open and transparent appointment process, including requirements for appointments and criteria for appointments to be made fully public; (d) to audit appointment policies and practices in order to determine whether the code of practice is being observed; (e) to report publicly on compliance with the code of practice, in particular by providing an annual report to the Prime Minister to be transmitted to the Speaker of each House of Parliament for tabling and referral to the appropriate committee of that House for study; (f) to provide public education and training of public servants involved in appointment and reappointment processes regarding the code of practice; and (g) to perform any other function specified by the Governor in Council. Appointment (2) Before making a recommendation to the Governor in Council that a person be appointed to the Commission, the Prime Minister shall consult with the leader of every recognized party in the House of Commons. An announce178 C. 9 Accoun ment of an appointment shall be transmitted to the Speaker of the House of Commons for tabling in that House. Term of office (3) Members of the Commission hold office during good behaviour for a term of five years and may be reappointed for a further term or terms, but are removable for cause by the Governor in Council. Report to Parliament (4) In its report, the Commission shall identify any material failure to comply with its code of practice by any department, Minister or official. Remuneration and expenses 1.2 (1) Members of the Public Appointments Commission shall be paid the remuneration and expenses fixed by the Governor in Council. Appointment of staff (2) Any employees that are required by the Commission to enable it to carry out its functions shall be appointed in accordance with the Public Service Employment Act. COMING INTO FORCE Order in council 228. (1) Sections 3.01 and 3.1 of the Access to Information Act, as enacted by section 142 of this Act, and section 3.01 of the Privacy Act, as enacted by section 182 of this Act, as well as subsection 141(2), sections 143 to 149, 154 and 157 to 160, subsection 163(1), sections 164 to 179, subsection 181(2) and sections 183, 184 and 186 to 193 of this Act and any provisions enacted by those provisions come into force on a day or days to be fixed by order of the Governor in Council. Canada Pension Plan Investment Board (2) Despite subsection (1), the definition “government institution” in section 3 of the Access to Information Act, as enacted by subsection 141(2) of this Act, and the definition “government institution” in section 3 of the Privacy Act, as enacted by subsection 181(2) of this Act, do not apply in respect of the Canada Pension Plan Investment Board unless the lieutenant governor in council of each of at least two thirds of the included provinces, within the meaning of subsection 114(1) of the Canada Pension Plan, having in the aggregate not less than two thirds of the Respon population of all of the included provinces, has signified the consent of that province to the application of those definitions to the Board. PART 4 ADMINISTRATIVE OVERSIGHT AND ACCOUNTABILITY 1995, c. 28 BUSINESS DEVELOPMENT BANK OF CANADA ACT 229. Subsection 6(4) of the Business Development Bank of Canada Act is replaced by the following: Appointment of directors (4) The other directors are to be appointed by the Designated Minister, with the approval of the Governor in Council, for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than half of the directors. R.S., c. C-2; 2001, c. 34, s. 14(E) CANADA COUNCIL FOR THE ARTS ACT 1995, c. 29, s. 10(E) 230. Subsection 4(2) of the Canada Council for the Arts Act is replaced by the following: Other members (2) Each of the other members of the Council shall be appointed for a term of four years. R.S., c. C-7 CANADA MORTGAGE AND HOUSING CORPORATION ACT 231. (1) The definition “Chairman” in section 2 of the English version of the Canada Mortgage and Housing Corporation Act is repealed. (2) Section 2 of the English version of the Act is amended by adding the following in alphabetical order: “Chairperson” Version anglaise seulement “Chairperson” means the Chairperson of the Board, appointed pursuant to subsection 6(2); C. 9 1999, c. 27, s. 25(2) 232. Subsection 6(4) of the Act is replaced by the following: Appointment of directors (4) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. Replacement of references 233. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions: Accoun (a) subsections 6(1) to (3); (b) section 9; (c) subsection 10(2); (d) subsection 12(1); and (e) section 15. R.S., c. C-10 CANADA POST CORPORATION ACT 234. (1) The definition “Chairman” in subsection 2(1) of the English version of the Canada Post Corporation Act is repealed. (2) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order: “Chairperson” « président du conseil » “Chairperson” means the Chairperson of the Board, appointed pursuant to section 7; 235. Subsection 6(2) of the Act is replaced by the following: Appointment of directors (2) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. Respon 2006 Replacement of references 236. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions: (a) subsection 6(1); (b) subsection 6(5); (c) section 7 and the heading before it; (d) paragraph 11(c); and (e) subsections 13(3) and (4). 1999, c. 17; 2005, c. 38, s. 35 CANADA REVENUE AGENCY ACT 237. Subsection 30(1) of the Canada Revenue Agency Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following at the end of paragraph (d): (e) internal audit in the Agency. R.S., c. C-14 CANADIAN COMMERCIAL CORPORATION ACT 2002, c. 4, s. 2 238. Subsection 3.1(3) of the Canadian Commercial Corporation Act is replaced by the following: Appointment of directors (3) Each director of the Corporation, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors. R.S., c. C-15 CANADIAN DAIRY COMMISSION ACT Amendments to Act 239. The definition “Commission” in section 2 of the Canadian Dairy Commission Act is replaced by the following: “Commission” « Commission » “Commission” means the Canadian Dairy Commission continued by section 3; 240. (1) Subsection 3(1) of the Act is replaced by the following: C. 9 Commission continued 3. (1) The Canadian Dairy Commission is continued as a corporation consisting of a Chairperson, a Chief Executive Officer and one other member. Accoun (2) Subsection 3(4) of the Act is repealed. 241. Subsection 5(1) of the English version of the Act is replaced by the following: Consultative Committee 5. (1) The Minister shall appoint a Consultative Committee consisting of a chairperson and eight other members. Transitional Provision Transitional — Chairman 242. On the day on which this section comes into force, the person occupying the position of Chairman of the Canadian Dairy Commission ceases to occupy that position and becomes the Chief Executive Officer of the Commission as if appointed to that position under section 3 of the Canadian Dairy Commission Act for a period equal to the remainder of the person’s term of office as Chairman. 1991, c. 8 CANADIAN RACE RELATIONS FOUNDATION ACT 243. Subsection 7(1) of the Canadian Race Relations Foundation Act is replaced by the following: Term of office 7. (1) Each director shall be appointed to hold office for a term not exceeding four years. 2005, c. 30, s. 45 244. Subsection 17(3) of the Act is replaced by the following: Financial Administration Act (3) Part X of the Financial Administration Act, except for sections 131 to 148 and 154.01, does not apply to the Foundation. 2000, c. 28 CANADIAN TOURISM COMMISSION ACT 244.1 Subsection 11(4) of the Canadian Tourism Commission Act is replaced by the following: Respon 2006 Term of office (4) The directors appointed under subsection (1) hold office during pleasure on a part-time basis for a term not exceeding four years. 244.2 Subsection 12(3) of the Act is replaced by the following: Term of office (3) The directors appointed under subsection (1) hold office during pleasure on a part-time basis for a term not exceeding four years. R.S., c. C-25 CAPE BRETON DEVELOPMENT CORPORATION ACT 2000, c. 23, s. 8(2) 245. Subsection 4(2) of the Cape Breton Development Corporation Act is replaced by the following: Appointment of directors (2) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years. R.S., c. C-46 1995, c. 22, s. 6 Disability to contract CRIMINAL CODE 246. Subsection 750(3) of the Criminal Code is replaced by the following: (3) No person who is convicted of (a) an offence under section 121, 124 or 418, (b) an offence under section 380 committed against Her Majesty, or (c) an offence under paragraph 80(1)(d), subsection 80(2) or section 154.01 of the Financial Administration Act, has, after that conviction, capacity to contract with Her Majesty or to receive any benefit under a contract between Her Majesty and any other person or to hold office under Her Majesty. C. 9 R.S., c. 41 (4th Supp.), Part II ENTERPRISE CAPE BRETON CORPORATION ACT Accoun Amendments to Act 247. (1) The definition “Vice-President” in section 26 of the Enterprise Cape Breton Corporation Act is repealed. (2) The definition “President” in section 26 of the English version of the Act is repealed. (3) Section 26 of the Act is amended by adding the following in alphabetical order: “Chief Executive Officer” « premier dirigeant » “Chief Executive Officer” means the Chief Executive Officer of the Corporation appointed under subsection 28(1); (4) Section 26 of the English version of the Act is amended by adding the following in alphabetical order: “Chairperson” « président » “Chairperson” means the President of the Atlantic Canada Opportunities Agency appointed pursuant to subsection 11(1) of the Atlantic Canada Opportunities Agency Act; 248. Section 27 of the Act and the heading before it are replaced by the following: CORPORATION CONTINUED Composition 27. The Enterprise Cape Breton Corporation is continued as a corporation consisting of a Board of Directors comprising the Chairperson, a Chief Executive Officer and five other directors appointed in accordance with subsection 28(2). 249. Subsections 28(1) to (3) of the Act are replaced by the following: Appointment of Chief Executive Officer 28. (1) The Chief Executive Officer shall be appointed by the Governor in Council for a term that the Governor in Council considers appropriate, and may be removed at any time by the Governor in Council. Appointment of directors (2) Each director, other than the Chairperson and the Chief Executive Officer, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office for a term not exceeding four years that will ensure, Respon as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. Each director may be removed at any time by the Minister, with the approval of the Governor in Council. Re-appointment (3) The Chief Executive Officer is eligible for re-appointment on the expiration of a term of office. Notwithstanding subsection 105(3) of the Financial Administration Act, any other director who has served two consecutive terms is not, during the twelve months following the completion of a second term, eligible for appointment except as Chairperson or Chief Executive Officer. 250. Sections 29 and 30 of the Act are replaced by the following: Chairperson to preside 29. The Chairperson shall preside at meetings of the Board, but in the event of the absence or incapacity of the Chairperson or a vacancy in that office, the Chief Executive Officer shall preside. Authority of Chief Executive Officer 30. (1) The Chief Executive Officer of the Corporation has, on behalf of the Board, the direction and control of the business of the Corporation with authority to act in the conduct of that business in all matters that are not by this Part or by the by-laws of the Corporation specifically reserved to be done by the Board. Absence or incapacity (2) In the event of the absence or incapacity of the Chief Executive Officer or a vacancy in that office, the Board shall authorize another officer or director of the Corporation to act as the Chief Executive Officer, but no person may act as such for a period exceeding sixty days without the approval of the Governor in Council. 251. (1) Subsection 31(1) of the Act is replaced by the following: Salaries and fees 31. (1) The Chief Executive Officer shall be paid by the Corporation a salary to be fixed by the Governor in Council. The other directors, except the Chairperson, shall be paid by the Corporation the fees fixed by the Governor in Council for attendance at meetings of the Board or any committee of the Board. C. 9 Accoun (2) Subsection 31(2) of the English version of the Act is replaced by the following: Expenses (2) Each director other than the Chairperson is entitled to be paid by the Corporation the travel and living expenses incurred in the performance of the director’s duties that are fixed by by-law of the Corporation. 252. (1) Paragraph 39(c) of the English version of the Act is replaced by the following: (c) fixing the travel and living expenses to be paid to directors other than the Chairperson; (2) Paragraph 39(e) of the Act is replaced by the following: (e) respecting the establishment, management and administration of a pension fund for the Chief Executive Officer and the officers and employees of the Corporation and dependants of those persons, the contributions to be made to the fund by the Corporation and the investment of the pension fund moneys; and Transitional Provision Transitional — Vice-President 253. On the day on which this section comes into force, the person occupying the position of Vice-President of the Enterprise Cape Breton Corporation ceases to occupy that position and becomes the Chief Executive Officer of the Corporation, as if appointed to that position under subsection 28(1) of the Enterprise Cape Breton Corporation Act, for a term of office equivalent to the remainder of the person’s term as VicePresident. R.S., c. E-20; 2001, c. 33, s. 2(F) EXPORT DEVELOPMENT ACT 2001, c. 33, s. 13(E) 254. Subsection 4(1) of the Export Development Act is replaced by the following: Appointment of directors 4. (1) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a Respon term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. 1993, c. 14; 2001, c. 22, s. 2 FARM CREDIT CANADA ACT 1994, c. 38, par. 25(1)(j) 255. Subsection 5(2) of the Farm Credit Canada Act is replaced by the following: Appointment (2) The directors, other than the Chairperson and the President, shall be appointed by the Minister of Agriculture and Agri-Food, with the approval of the Governor in Council, for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. 256. Subsection 8(1) of the Act is replaced by the following: Committees 8. (1) The Board may establish an executive committee and any other committees that the Board considers advisable, and may determine their composition and duties and the tenure of their members. R.S., c. F-11 FINANCIAL ADMINISTRATION ACT Amendments to Act 257. Section 3 of the Financial Administration Act is amended by adding the following after subsection (9): Schedule VI (10) The Governor in Council may, by order, (a) add to Part I of Schedule VI the name of any department named in Schedule I; (b) add to Part II or III of Schedule VI the name of any department and a reference to the accounting officer for the department; (c) amend Part II or III of Schedule VI by replacing a reference to the accounting officer for a department with a new reference; C. 9 Accoun (d) move from Part II to Part III of Schedule VI, or from Part III to Part II of that Schedule, the name of a department and the reference to its accounting officer; (e) amend Part I, II or III of Schedule VI by replacing the former name of a department with the new name; and (f) delete the name of a department and the reference to its accounting officer from Part I, II or III of Schedule VI, where the department has ceased to exist or become part of another department. 258. Subsection 7(1) of the Act is amended by adding the following after paragraph (e.1): (e.2) internal audit in the federal public administration; 259. The Act is amended by adding the following after section 16: PART I.1 INTERNAL AUDIT AND ACCOUNTING OFFICERS Audit capacity 16.1 The deputy head or chief executive officer of a department is responsible for ensuring an internal audit capacity appropriate to the needs of the department. Audit committees 16.2 Subject to and except as otherwise provided in any directives issued by the Treasury Board under paragraph 7(1)(e.2), the deputy head or chief executive officer of a department shall establish an audit committee for the department. Appointment 16.21 (1) A person who does not occupy a position in the federal public administration but who meets the qualifications established by directive of the Treasury Board may be appointed to an audit committee by the Treasury Board on the recommendation of the President of the Treasury Board. Term of office (2) A member of an audit committee so appointed holds office during pleasure for a term not exceeding four years, which may be renewed for a second term. Respon Remuneration (3) A member of an audit committee so appointed shall be paid the remuneration and expenses fixed by the Treasury Board. Definition of “accounting officer” 16.3 In sections 16.4 and 16.5, “accounting officer” (a) with respect to a department named in Part I of Schedule VI, means its deputy minister; and (b) with respect to a department named in Part II or III of Schedule VI, means the person occupying the position set out opposite that name. Accountability of accounting officers within framework of ministerial accountability 16.4 (1) Within the framework of the appropriate minister’s responsibilities and his or her accountability to Parliament, and subject to the appropriate minister’s management and direction of his or her department, the accounting officer of a department named in Part I of Schedule VI is accountable before the appropriate committees of the Senate and the House of Commons for (a) the measures taken to organize the resources of the department to deliver departmental programs in compliance with government policies and procedures; (b) the measures taken to maintain effective systems of internal control in the department; (c) the signing of the accounts that are required to be kept for the preparation of the Public Accounts pursuant to section 64; and (d) the performance of other specific duties assigned to him or her by or under this or any other Act in relation to the administration of the department. Accountability of accounting officers within framework of ministerial accountability (2) Within the framework of the appropriate minister’s responsibilities under the Act or order constituting the department and his or her accountability to Parliament, the accounting officer of a department named in Part II or III of Schedule VI is accountable before the appropriate committees of the Senate and the House of Commons for C. 9 Accoun (a) the measures taken to organize the resources of the department to deliver departmental programs in compliance with government policies and procedures; (b) the measures taken to maintain effective systems of internal control in the department; (c) the signing of the accounts that are required to be kept for the preparation of the Public Accounts pursuant to section 64; and (d) the performance of other specific duties assigned to him or her by or under this or any other Act in relation to the administration of the department. Appearance before committee (3) The obligation of an accounting officer under this section is to appear before the appropriate committee of the Senate or the House of Commons and answer questions put to him or her by members of the committee in respect of the carrying out of the responsibilities and the performance of the duties referred to in subsection (1) or (2), as the case may be. Written guidance from Secretary 16.5 (1) Where the appropriate minister and the accounting officer for a department named in Part I or II of Schedule VI are unable to agree on the interpretation or application of a policy, directive or standard issued by the Treasury Board, the accounting officer shall seek guidance in writing on the matter from the Secretary of the Treasury Board. Referral to Treasury Board (2) Where guidance is provided under subsection (1) and the matter remains unresolved, the appropriate minister shall refer the matter to the Treasury Board for a decision. Copy to Auditor General (3) A decision by the Treasury Board shall be in writing and a copy shall be provided to the Auditor General of Canada. Cabinet confidence (4) The copy of a decision provided to the Auditor General of Canada is a confidence of the Queen’s Privy Council for Canada for the purposes of any Act of Parliament. 260. The Act is amended by adding the following before the heading “PART IV” before section 43: Respon Five-year reviews 42.1 (1) Subject to and except as otherwise provided in any directives issued by the Treasury Board, every department shall conduct a review every five years of the relevance and effectiveness of each ongoing program for which it is responsible. Definition of “program” (2) In this section, “program” means a program of grants or contributions made to one or more recipients that are administered so as to achieve a common objective and for which spending authority is provided in an appropriation Act. 261. Section 80 of the Act is renumbered as subsection 80(1) and is amended by adding the following: Fraud against Her Majesty (2) Every officer or person acting in any office or employment connected with the collection, management or disbursement of public money who, by deceit, falsehood or other fraudulent means, defrauds Her Majesty of any money, securities, property or service is guilty of an indictable offence and liable on conviction, (a) if the amount of the money or the value of the securities, property or service does not exceed $5,000, to a fine not exceeding $5,000 and to imprisonment for a term not exceeding five years; or (b) if the amount of the money or the value of the securities, property or service exceeds $5,000, to a fine not exceeding that amount or that value and to imprisonment for a term not exceeding fourteen years. 2005, c. 30, s. 51 262. (1) Subsection 85(1) of the Act is replaced by the following: Exemption for Bank of Canada 85. (1) Divisions I to IV, except for section 154.01, do not apply to the Bank of Canada. (2) Section 85 of the Act is amended by adding the following after subsection (1): Exemption for Canada Pension Plan Investment Board (1.01) Divisions I to IV, except for section 154.01, do not apply to the Canada Pension Plan Investment Board. C. 9 2005, c. 30, s. 51 (3) Subsections 85(1.1) and (1.2) of the Act are replaced by the following: Exempted Crown corporations (1.1) Divisions I to IV, except for sections 131 to 148 and 154.01, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, the International Development Research Centre or the National Arts Centre Corporation. Exemption for Telefilm Canada (1.2) Divisions I to IV, except for sections 131 to 148 and 154.01 and subject to subsection 21(2) of the Telefilm Canada Act, do not apply to Telefilm Canada. 1994, c. 47, s. 116 263. Subsection 89.2(1) of the Act is replaced by the following: Directive 89.2 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive pursuant to subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the WTO Agreement that pertains to that Crown corporation. 1996, c. 17, s. 16 264. Section 89.3 of the Act is replaced by the following: Directive 89.3 Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive pursuant to subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Agreement as that term is defined in section 2 of the Agreement on Internal Trade Implementation Act that pertains to that Crown corporation. 1997, c. 14, s. 79 265. Subsection 89.4(1) of the Act is replaced by the following: Directive 89.4 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive under subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Canada-Chile Free Trade Agreement that pertains to that Crown corporation. 2001, c. 28, s. 51 266. Subsection 89.5(1) of the Act is replaced by the following: Accoun Respon 2006 Directive 89.5 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive under subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Canada–Costa Rica Free Trade Agreement that pertains to that Crown corporation. 267. Subsection 105(1) of the Act is replaced by the following: Appointment of directors 105. (1) Each director, other than an officerdirector, of a parent Crown corporation shall be appointed by the appropriate Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors of the corporation. 1991, c. 24, s. 50 (Sch. II, item 22)(F) 268. Subsection 148(1) of the Act is replaced by the following: Audit committee 148. (1) Each parent Crown corporation that has four or more directors shall establish an audit committee composed of not less than three directors of the corporation, none of whom may be officers or employees of the corporation or any of its affiliates. 269. The Act is amended by adding the following after section 154: Offence Fraud against Her Majesty 154.01 (1) A director, officer or employee of a Crown corporation who, by deceit, falsehood or other fraudulent means, in connection with the collection, management or disbursement of money belonging to the corporation, defrauds the corporation of any money, securities, property or service is guilty of an indictable offence and liable on conviction (a) if the amount of the money or the value of the securities, property or service does not exceed $5,000, to a fine not exceeding $5,000 and to imprisonment for a term not exceeding five years; or C. 9 Accoun (b) if the amount of the money or the value of the securities, property or service exceeds $5,000, to a fine not exceeding that amount or that value and to imprisonment for a term not exceeding fourteen years. Employment (2) A person who is convicted of an offence under subsection (1) in respect of a corporation is, after the time for final appeal has expired, ineligible to be an employee of the corporation. 270. The Act is amended by adding, after Schedule V, the Schedule VI set out in the schedule to this Act. Coordinating Amendments Commissioner of Lobbying 271. On the later of the day on which section 68 of this Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by deleting the following from column I: Office of the Registrar of Lobbyists Bureau du directeur des lobbyistes and the corresponding reference in column II to the “Registrar of Lobbyists”. Commissioner of Lobbying 272. On the later of the day on which section 68 of this Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I: Office of the Commissioner of Lobbying Commissariat au lobbying and a corresponding reference in column II to the “Commissioner of Lobbying”. Director of Public Prosecutions 273. On the later of the day on which section 121 of this Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part II of Respon Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I: Office of the Director of Public Prosecutions Bureau du directeur des poursuites pénales and a corresponding reference in column II to the “Director of Public Prosecutions”. 2005, c. 46 274. On the later of the day on which subsection 39(1) of the Public Servants Disclosure Protection Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I: Office of the Public Sector Integrity Commissioner Commissariat à l’intégrité du secteur public and a corresponding reference in column II to the “Public Sector Integrity Commissioner”. 2005, c. 46 275. On the later of the day on which section 20.7 of the Public Servants Disclosure Protection Act comes into force and the day on which section 270 of this Act comes into force — or, if those days are the same day, then on that day — Part III of Schedule VI to the Financial Administration Act is amended by adding the following in alphabetical order in column I: Public Servants Disclosure Protection Tribunal Tribunal de la protection des fonctionnaires divulgateurs d’actes répréhensibles and a corresponding reference in column II to the “Registrar”. R.S., c. F-13 FRESHWATER FISH MARKETING ACT 276. (1) The definition “Chairman” in section 2 of the English version of the Freshwater Fish Marketing Act is repealed. C. 9 Accoun (2) Section 2 of the English version of the Act is amended by adding the following in alphabetical order: “Chairperson” Version anglaise seulement “Chairperson” means the Chairperson of the Board; R.S., c. 1 (4th Supp.), s. 44 (Sch. II, item 15)(E) 277. Subsection 3(3) of the Act is replaced by the following: Appointment of directors (3) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. Replacement of references 278. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions: (a) subsections 3(1) and (2); (b) subsection 3(8); (c) section 4; (d) subsection 6(1); and (e) subsection 17(1). 1990, c. 3 MUSEUMS ACT 279. Subsection 19(2) of the Museums Act is replaced by the following: Appointment of trustees R.S., c. N-3 (2) The trustees of a museum, other than the Chairperson and Vice-Chairperson, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term, not exceeding four years, that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than four of those trustees. NATIONAL ARTS CENTRE ACT 280. The definition “Corporation” in section 2 of the National Arts Centre Act is replaced by the following: Respon 2006 “Corporation” « Société » “Corporation” means the National Arts Centre Corporation continued by section 3; 1995, c. 29, s. 51 281. Section 3 of the Act is replaced by the following: Corporation continued 3. The National Arts Centre Corporation is continued as a corporation consisting of a Board of Trustees composed of a Chairperson, a ViceChairperson, the mayors of the cities of Ottawa and Gatineau and six other members to be appointed as provided in subsection 4(2). 1995, c. 29, s. 52 282. Subsection 4(2) of the Act is replaced by the following: Appointment of other members (2) Each of the members of the Board, other than the Chairperson and Vice-Chairperson and the mayors referred to in section 3, shall be appointed by the Governor in Council for a term not exceeding four years. R.S., c. N-4 NATIONAL CAPITAL ACT 1995, c. 29, s. 55(E) 283. (1) The definition “Vice-Chairperson” in section 2 of the National Capital Act is repealed. (2) The definition “Commission” in section 2 of the Act is replaced by the following: “Commission” « Commission » “Commission” means the National Capital Commission continued by section 3; (3) Section 2 of the Act is amended by adding the following in alphabetical order: “Chief Executive Officer” « premier dirigeant » “Chief Executive Officer” means the Chief Executive Officer of the Commission; 284. The heading before section 3 of the Act is replaced by the following: COMMISSION CONTINUED R.S., c. 1 (4th Supp.), s. 44 (Sch. II, item 16)(E); 1995, c. 29, s. 54(1) and s. 55(E) 285. (1) Subsections 3(1) to (3) of the Act are replaced by the following: C. 9 Corporation continued 3. (1) The corporation called the National Capital Commission is continued, consisting of fifteen members including a Chairperson and a Chief Executive Officer. Appointment of members (2) Each member, other than the Chairperson and the Chief Executive Officer, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members. Appointment of Chairperson and Chief Executive Officer (3) The Chairperson and the Chief Executive Officer shall each be appointed by the Governor in Council to hold office during pleasure for a term that the Governor in Council considers appropriate. 1995, c. 29, s. 54(2) (2) The portion of subsection 3(4) of the Act before paragraph (a) is replaced by the following: Members (4) The members, other than the Chairperson and the Chief Executive Officer, shall be appointed as follows: 1995, c. 29, s. 55(E) (3) Subsection 3(6) of the Act is replaced by the following: Re-appointment (6) A person who has served two consecutive terms as a member, other than as Chief Executive Officer, is not eligible to be reappointed to the Commission, during the twelve months following the completion of the person’s second term, in the same capacity in which the person served. Accoun 286. Section 6 of the Act is replaced by the following: Absence or incapacity 6. In the event of the absence or incapacity of the Chairperson or the Chief Executive Officer or of a vacancy in either office, the Commission shall authorize another member to act as such, but no person may act as such for a period exceeding sixty days without the approval of the Governor in Council. 1995, c. 29, s. 55(E) 287. Subsections 7(1) and (2) of the Act are replaced by the following: Respon 2006 Salary of Chief Executive Officer 7. (1) The Chief Executive Officer shall be paid a salary to be fixed by the Governor in Council. Remuneration of other members (2) The Governor in Council may authorize the payment of allowances or other remuneration to the Chairperson and to any other member having special duties. 1995, c. 29, s. 55(E) 288. Subsection 9(1) of the Act is replaced by the following: Executive Committee 9. (1) There shall be an Executive Committee of the Commission consisting of the Chairperson, the Chief Executive Officer and three other members to be appointed by the Commission, at least one of whom shall be from the Province of Quebec. 1995, c. 29, s. 55(E) 289. Section 22 of the Act is replaced by the following: Evidence 22. In a prosecution for the contravention of any regulation made under subsection 20(1), a certificate stating that any property described in it is under the control of the Commission and purporting to be certified by the Commission or the Chief Executive Officer, General Manager, Chief Engineer, or Secretary of the Commission shall be admitted in evidence without proof of the signature or official character of the person appearing to have signed the certificate and without further proof and, in the absence of evidence to the contrary, is proof that the property is under the control of the Commission. R.S., c. P-14 PILOTAGE ACT 290. (1) Subsection 3(3) of the Pilotage Act is replaced by the following: Other members (3) Each of the other members of an Authority shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term, not exceeding four years, that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members. 1998, c. 10, s. 145(2) (2) Subsection 3(3.1) of the English version of the Act is replaced by the following: C. 9 Full- or part-time (3.1) The Chairperson and the Vice-Chairperson may be appointed to serve full-time or part-time. Accoun 291. Section 10 of the English version of the Act is replaced by the following: ViceChairperson 10. The Governor in Council may appoint one of the members, other than the Chairperson, of an Authority to be Vice-Chairperson. 292. Subsection 13(2) of the English version of the Act is replaced by the following: When ViceChairperson to act (2) In the event of the absence or incapacity of the Chairperson of an Authority, or if the office of Chairperson is vacant, the ViceChairperson, if any, of the Authority shall act as Chairperson. 293. Subsections 14(1) and (2) of the English version of the Act are replaced by the following: Remuneration 14. (1) The Chairperson and Vice-Chairperson of an Authority shall be paid remuneration to be fixed by the Governor in Council. Members’ allowances (2) A member, other than the Chairperson or Vice-Chairperson, of an Authority shall be paid a daily allowance to be fixed by the Governor in Council for each day that the member is engaged on the business of the Authority. Replacement of references 294. The English version of the Act is amended by replacing “Chairman” with “Chairperson” wherever it occurs in the following provisions: (a) subsections 3(1) and (2); (b) subsections 13(1) and (1.1); (c) subparagraph 17(1)(b)(i); (d) subsections 27(1) to (3); and (e) subsection 27(5). 1999, c. 34 2005, c. 30, s. 47 PUBLIC SECTOR PENSION INVESTMENT BOARD ACT 295. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following: Respon 2006 Financial Administration Act (6) Part X of the Financial Administration Act, except for sections 132 to 147 and 154.01, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act. 296. Subsection 9(1) of the Act is replaced by the following: Appointment of directors 9. (1) Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for a term, not exceeding four years, that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors. 297. Section 27 of the Act is amended by adding the following after subsection (1): Restriction — audit committee R.S., c. R-9 (1.1) None of the members of the audit committee may be officers or employees of the Board or any of its affiliates, within the meaning of section 83 of the Financial Administration Act. ROYAL CANADIAN MINT ACT R.S., c. 35 (3rd Supp.), s. 9 298. Section 11 of the Royal Canadian Mint Act is replaced by the following: Appointment of directors 11. Each director, other than the Chairperson and the Master of the Mint, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. R.S., c. S-16 STANDARDS COUNCIL OF CANADA ACT 299. Subsection 6(1) of the Standards Council of Canada Act is replaced by the following: C. 9 Appointment of members 6. (1) Each member of the Council, other than the persons referred to in paragraphs 3(b) and (c), shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the members. Accoun COMING INTO FORCE Order in council 300. (1) Subject to subsection (2), sections 239 to 242, 244, 246 to 253 and 261, subsections 262(1) and (3) and sections 263 to 266, 269, 283 to 289 and 295 come into force on a day or days to be fixed by order of the Governor in Council. Order in council (2) Subsection 262(2) comes into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council. PART 5 PROCUREMENT AND CONTRACTING R.S., c. A-17 AUDITOR GENERAL ACT 2005, c. 30, s. 32 301. (1) The definitions “not-for-profit corporation” and “recipient corporation” in section 2 of the Auditor General Act are repealed. 2005, c. 30, s. 32 (2) The definition “funding agreement” in section 2 of the Act is replaced by the following: “funding agreement” « accord de financement » “funding agreement” has the meaning given to that expression by subsection 42(4) of the Financial Administration Act; (3) Section 2 of the Act is amended by adding the following in alphabetical order: “recipient” « bénéficiaire » 2005, c. 30, s. 33 “recipient” has the meaning given to that expression by subsection 42(4) of the Financial Administration Act; 302. (1) The portion of subsection 2.1(1) of the Act before paragraph (a) is replaced by the following: Respon 2006 Control 2.1 (1) For the purpose of paragraph (d) of the definition “recipient” in subsection 42(4) of the Financial Administration Act, a municipality or government controls a corporation with share capital if 2005, c. 30, s. 33 (2) Subsection 2.1(2) of the Act is replaced by the following: Control (2) For the purpose of paragraph (d) of the definition “recipient” in subsection 42(4) of the Financial Administration Act, a corporation without share capital is controlled by a municipality or government if it is able to appoint the majority of the directors of the corporation, whether or not it does so. 303. The heading before section 5 of the Act is replaced by the following: POWERS AND DUTIES 2005, c. 30, s. 34 304. Subsection 7.1(1) of the Act is replaced by the following: Inquiry and report 7.1 (1) The Auditor General may, with respect to a recipient under any funding agreement, inquire into whether (a) the recipient has failed to fulfil its obligations under any funding agreement; (b) money the recipient has received under any funding agreement has been used without due regard to economy and efficiency; (c) the recipient has failed to establish satisfactory procedures to measure and report on the effectiveness of its activities in relation to the objectives for which it received funding under any funding agreement; (d) the recipient has failed to faithfully and properly maintain accounts and essential records in relation to any amount it has received under any funding agreement; or (e) money the recipient has received under any funding agreement has been expended without due regard to the environmental effects of those expenditures in the context of sustainable development. C. 9 Accoun 305. The Act is amended by adding the following after section 18: IMMUNITIES Immunity as witness 18.1 The Auditor General, or any person acting on behalf or under the direction of the Auditor General, is not a competent or compellable witness — in respect of any matter coming to the knowledge of the Auditor General or that person as a result of performing audit powers, duties or functions under this or any other Act of Parliament during an examination or inquiry — in any proceedings other than a prosecution for an offence under section 131 of the Criminal Code (perjury) in respect of a statement made under this Act. Protection from prosecution 18.2 (1) No criminal or civil proceedings lie against the Auditor General, or against any person acting on behalf or under the direction of the Auditor General, for anything done, reported or said in good faith in the course of the performance or purported performance of audit powers, duties or functions under this or any other Act of Parliament. Defamation (2) For the purposes of any law relating to defamation, (a) anything said, any information supplied or any document or thing produced in good faith by or on behalf of the Auditor General, in the course of the performance or purported performance of audit powers, duties or functions under this or any other Act of Parliament, is privileged; and (b) any report made in good faith by the Auditor General in the course of the performance or purported performance of audit powers, duties or functions under this or any other Act of Parliament, and any fair and accurate account of the report made in good faith in a newspaper or any other periodical publication or in a broadcast, is privileged. Respon 2006 1996, c. 16 DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT 306. The Department of Public Works and Government Services Act is amended by adding the following after section 22: PROCUREMENT OMBUDSMAN Appointment 22.1 (1) The Governor in Council may appoint a Procurement Ombudsman for a term of not more than five years. Remuneration and expenses (2) The Procurement Ombudsman shall be paid the remuneration and expenses that may be fixed by the Governor in Council. General duties and functions (3) The Procurement Ombudsman shall, in accordance with the regulations, (a) review the practices of departments for acquiring materiel and services to assess their fairness, openness and transparency and make any appropriate recommendations to the relevant department for the improvement of those practices; (b) review any complaint respecting the compliance with any regulations made under the Financial Administration Act of the award of a contract for the acquisition of materiel or services by a department to which the Agreement, as defined in section 2 of the Agreement on Internal Trade Implementation Act, would apply if the value of the contract were not less than the amount referred to in article 502 of that Agreement; (c) review any complaint respecting the administration of a contract for the acquisition of materiel or services by a department; and (d) ensure that an alternative dispute resolution process is provided, on request of each party to such a contract. C. 9 Other duties and functions (4) The Procurement Ombudsman shall also perform any other duty or function respecting the practices of departments for acquiring materiel and services that may be assigned to the Procurement Ombudsman by order of the Governor in Council or the Minister. Person who may complain 22.2 (1) A person may only file a complaint referred to in paragraph 22.1(3)(b) or (c) if that person is a Canadian supplier within the meaning of article 518 of the agreement referred to in paragraph 22.1(3)(b) and meets any requirements prescribed by the regulations. Timing of complaint (2) The complaint may only be filed after the award of the contract to which the complaint relates. Findings and recommendations (3) The Procurement Ombudsman shall, within the period after the complaint is filed that may be established by the regulations, provide the complainant, the relevant minister and the Minister with the Procurement Ombudsman’s findings and any recommendations. Limitation (4) The Procurement Ombudsman may not recommend the cancellation of the contract to which the complaint relates. Annual Report 22.3 (1) The Procurement Ombudsman shall, within four months after the end of each fiscal year, deliver a report respecting the activities of the Procurement Ombudsman in that year to the Minister. Annual report to be laid (2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report. Accoun 307. The Act is amended by adding the following after section 23: Regulations 23.1 The Governor in Council may make regulations respecting (a) the performing of the duties and functions of the Procurement Ombudsman referred to in subsection 22.1(3), including the departments in respect of which those duties and functions shall not be performed; Respon (b) the filing of complaints referred to in paragraphs 22.1(3)(b) and (c), including any conditions that must be met before a complaint may be filed and the manner in which it must be filed; and (c) the types of recommendations that the Procurement Ombudsman may make in response to the complaints and the time within which they must be made. R.S., c. F-11 FINANCIAL ADMINISTRATION ACT Amendments to Act 308. The Financial Administration Act is amended by adding the following after section 39: PART III.1 CONTRACTS 1991, c. 24, s. 50 (Sch. II, item 10)(F) 309. (1) Section 40 of the French version of the Act is replaced by the following: Clause automatique des contrats 40. Tout contrat prévoyant des paiements à effectuer par Sa Majesté est censé comporter une clause qui les subordonne à l’existence d’un crédit particulier ouvert pour l’exercice au cours duquel des engagements découlant du contrat sont susceptibles d’arriver à échéance. 1991, c. 24, s. 50 (Sch. II, item 10)(F) (2) Section 40 of the Act is renumbered as subsection 40(1) and is amended by adding the following: Public opinion research (2) It is a term of every contract for public opinion research entered into by any person with Her Majesty that a written report will be provided by that person. 310. The Act is amended by adding the following after section 40: Commitment 40.1 The Government of Canada is committed to taking appropriate measures to promote fairness, openness and transparency in the bidding process for contracts with Her Majesty for the performance of work, the supply of goods or the rendering of services. C. 9 1991, c. 24, s. 50 (Sch. II, item 11)(F) 311. Subsection 41(1) of the French version of the Act is replaced by the following: Règlements sur les contrats 41. (1) Le gouverneur en conseil peut, par règlement, régir les conditions de passation des contrats. Il peut en outre, par dérogation aux autres lois fédérales : Accoun a) ordonner l’interdiction ou l’invalidation des contrats prévoyant un paiement qui dépasse un plafond fixé par lui sans que luimême ou le Conseil du Trésor ait approuvé leur passation; b) prendre par règlement des mesures touchant les cautionnements à fournir à Sa Majesté et au nom de celle-ci en garantie de la bonne exécution des contrats. 312. The Act is amended by adding the following after section 41: Regulations — deemed terms of contracts 42. (1) The Governor in Council may make regulations fixing terms that are deemed to be expressly set out in contracts, or classes of contracts, that provide for the payment of any money by Her Majesty or a Crown corporation — or in documents, or classes of documents, relating to such contracts and their formation — including terms (a) prohibiting payment of a contingency fee by any party to the contract to a person to whom the Lobbyists Registration Act applies; (b) respecting corruption and collusion in the bidding process for contracts for the performance of work, the supply of goods or the rendering of services; (c) requiring that a bidder on a contract for the performance of work, the supply of goods or the rendering of services make a declaration that the bidder has not committed an offence under section 121, 124 or 418 of the Criminal Code; (d) respecting the provision of information or records to enable the Auditor General of Canada to inquire into the use of funds provided under funding agreements; and Respon (e) requiring the public disclosure of basic information on contracts entered into with Her Majesty for the performance of work, the supply of goods or the rendering of services and having a value in excess of $10,000. Powers of Auditor General (2) Regulations made under subsection (1) may not infringe on the powers of the Auditor General under section 7.1 of the Auditor General Act. Regulations — public opinion research (3) The Governor in Council may, in respect of contracts for public opinion research, make regulations (a) prescribing the form and content of the term of the contract and of the written report referred to in subsection 40(2); and (b) requiring the report to be made available to the public in the manner, and subject to the conditions, specified in the regulations. Definitions “funding agreement” « accord de financement » “recipient” « bénéficiaire » (4) The following definitions apply in this section. “funding agreement”, in respect of a recipient, means an agreement in writing under which the recipient receives a grant, contribution or other funding from Her Majesty in right of Canada or a Crown corporation, either directly or through an agent or mandatary of Her Majesty, including by way of loan, but excludes contracts for the performance of work, the supply of goods or the rendering of services. “recipient” means an individual, body corporate, partnership or unincorporated organization that has, in any five consecutive fiscal years, received a total of one million dollars or more under one or more funding agreements, but does not include (a) a Crown corporation; (b) a departmental corporation; (c) the government of a foreign state, a provincial government or a municipality, or any of their agencies; (c.1) a band, as defined in subsection 2(1) of the Indian Act, any member of the council or any agency of the band or an aboriginal body C. 9 Accoun that is party to a self-government agreement given effect by an Act of Parliament or any of their agencies; (d) a corporation that is controlled by a municipality or a government other than the Government of Canada; or (e) an international organization. Coordinating Amendment 313. On the day on which section 66 of this Act comes into force, paragraph 42(1)(a) of the Financial Administration Act is replaced by the following: (a) prohibiting payment of a contingency fee by any party to the contract to a person to whom the Lobbying Act applies; COMING INTO FORCE Order in council 314. (1) Sections 306 and 307 come into force on a day or days to be fixed by order of the Governor in Council. Order in council (2) Notwithstanding subsection 114(4) of the Canada Pension Plan, section 312 comes into force on the day on which this Act is assented to, but that section does not apply in respect of the Canada Pension Plan Investment Board unless the lieutenant governor in council of each of at least two thirds of the included provinces, within the meaning of subsection 114(1) of that Act, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment made by that section. Responsabilit 2006 SCHEDULE (Section 270) SCHEDULE VI (Sections 3 and 16.3 to 16.5) PART I Department of Agriculture and Agri-Food Ministère de l’Agriculture et de l’Agroalimentaire Department of Canadian Heritage Ministère du Patrimoine canadien Department of Citizenship and Immigration Ministère de la Citoyenneté et de l’Immigration Department of the Environment Ministère de l’Environnement Department of Finance Ministère des Finances Department of Fisheries and Oceans Ministère des Pêches et des Océans Department of Foreign Affairs and International Trade Ministère des Affaires étrangères et du Commerce international Department of Health Ministère de la Santé Department of Human Resources and Skills Development Ministère des Ressources humaines et du Développement des compétences Department of Indian Affairs and Northern Development Ministère des Affaires indiennes et du Nord canadien Department of Industry Ministère de l’Industrie Department of Justice Ministère de la Justice Department of National Defence Ministère de la Défense nationale Department of Natural Resources Ministère des Ressources naturelles Department of Public Safety and Emergency Preparedness Ministère de la Sécurité publique et de la Protection civile Department of Public Works and Government Services Ministère des Travaux publics et des Services gouvernementaux Department of Social Development Ministère du Développement social Department of Transport Ministère des Transports Department of Veterans Affairs Ministère des Anciens Combattants Department of Western Economic Diversification Ministère de la Diversification de l’économie de l’Ouest canadien C. 9 Accountability PART II Responsabilit PART III C. 9 Accountability Responsabilit C. 9 Accountability Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 11 An Act to amend the Judges Act and certain other Acts in relation to courts ASSENTED TO 14th DECEMBER, 2006 BILL C-17 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Judges Act and certain other Acts in relation to courts”. SUMMARY Part 1 of this enactment amends the Judges Act to implement the federal government’s response to the report of the most recent Judicial Compensation and Benefits Commission regarding salaries and benefits of federally appointed judges. Included is a mechanism to divide judicial annuities upon breakdown of the conjugal relationship. Part 2 makes certain amendments to the Federal Courts Act and a number of technical amendments to other Acts in relation to courts. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO AMEND THE JUDGES ACT AND CERTAIN OTHER ACTS IN RELATION TO COURTS PART 1 AMENDMENTS TO THE JUDGES ACT 1-16. Judges Act PART 2 AMENDMENTS TO OTHER ACTS 17. Canada Transportation Act 18. Crown Liability and Proceedings Act 19. Employment Insurance Act 20-24. Federal Courts Act 25. Pesticide Residue Compensation Act 26. Railway Safety Act 27-34. Tax Court of Canada Act COMING INTO FORCE 35. Order in council 36. Section 44.2 of the Judges Act 55 ELIZABETH II —————— CHAPTER 11 An Act to amend the Judges Act and certain other Acts in relation to courts [Assented to 14th December, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: PART 1 AMENDMENTS TO THE JUDGES ACT R.S., c. J-1 JUDGES ACT R.S., c. 39 (3rd Supp.), s. 1(1), c. 51, (4th Supp.), s. 13; 1992, c. 51, s. 5(1); 1998, c. 30, s. 2(1); 2001, c. 7, ss. 1-13; 2002, c. 8, ss. 83, 84(E) 1. Sections 9 to 21 of the Judges Act are replaced by the following: Supreme Court of Canada 9. The yearly salaries of the judges of the Supreme Court of Canada are as follows: (a) the Chief Justice of Canada, $298,500; and (b) the eight puisne judges, $276,400 each. Federal Courts 10. The yearly salaries of the judges of the Federal Courts are as follows: (a) the Chief Justice of the Federal Court of Appeal, $254,600; (b) the other judges of the Federal Court of Appeal, $232,300 each; (c) the Chief Justice of the Federal Court, $254,600; and C. 11 Jud (d) the other judges of the Federal Court, $232,300 each. Tax Court of Canada 11. The yearly salaries of the judges of the Tax Court of Canada are as follows: (a) the Chief Justice, $254,600; (b) the Associate Chief Justice, $254,600; and (c) the other judges, $232,300 each. Court of Appeal for Ontario and Superior Court of Justice 12. The yearly salaries of the judges of the Court of Appeal for Ontario and of the Superior Court of Justice in and for the Province of Ontario are as follows: (a) the Chief Justice and the Associate Chief Justice of Ontario, $254,600 each; (b) the 14 Justices of Appeal, $232,300 each; (c) the Chief Justice and the Associate Chief Justice of the Superior Court of Justice, $254,600 each; and (d) the 192 other judges of the Superior Court of Justice, $232,300 each. Court of Appeal and Superior Court of Quebec 13. The yearly salaries of the judges of the Court of Appeal and of the Superior Court in and for the Province of Quebec are as follows: (a) the Chief Justice of Quebec, $254,600; (b) the 18 puisne judges of the Court of Appeal, $232,300 each; (c) the Chief Justice, the Senior Associate Chief Justice and the Associate Chief Justice of the Superior Court, $254,600 each; and (d) the 140 puisne judges of the Superior Court, $232,300 each. Court of Appeal and Supreme Court of Nova Scotia 14. The yearly salaries of the judges of the Nova Scotia Court of Appeal and the Supreme Court of Nova Scotia are as follows: (a) the Chief Justice of Nova Scotia, $254,600; (b) the seven other judges of the Court of Appeal, $232,300 each; Jug (c) the Chief Justice and the Associate Chief Justice of the Supreme Court, $254,600 each; and (d) the 23 other judges of the Supreme Court, $232,300 each. Court of Appeal and Court of Queen’s Bench of New Brunswick 15. The yearly salaries of the judges of the Court of Appeal of New Brunswick and of the Court of Queen’s Bench of New Brunswick are as follows: (a) the Chief Justice of New Brunswick, $254,600; (b) the five other judges of the Court of Appeal, $232,300 each; (c) the Chief Justice of the Court of Queen’s Bench, $254,600; and (d) the 21 other judges of the Court of Queen’s Bench, $232,300 each. Court of Appeal and Court of Queen’s Bench for Manitoba 16. The yearly salaries of the judges of the Court of Appeal for Manitoba and of Her Majesty’s Court of Queen’s Bench for Manitoba are as follows: (a) the Chief Justice of Manitoba, $254,600; (b) the six Judges of Appeal, $232,300 each; (c) the Chief Justice, the Senior Associate Chief Justice and the Associate Chief Justice of the Court of Queen’s Bench, $254,600 each; and (d) the 30 puisne judges of the Court of Queen’s Bench, $232,300 each. Court of Appeal and Supreme Court of British Columbia 17. The yearly salaries of the judges of the Court of Appeal for British Columbia and of the Supreme Court of British Columbia are as follows: (a) the Chief Justice of British Columbia, $254,600; (b) the 12 Justices of Appeal, $232,300 each; (c) the Chief Justice and the Associate Chief Justice of the Supreme Court, $254,600 each; and (d) the 81 other judges of the Supreme Court, $232,300 each. C. 11 Supreme Court of Prince Edward Island 18. The yearly salaries of the judges of the Supreme Court of Prince Edward Island are as follows: Jud (a) the Chief Justice of Prince Edward Island, $254,600; (b) the two other judges of the Appeal Division, $232,300 each; (c) the Chief Justice of the Trial Division, $254,600; and (d) the three other judges of the Trial Division, $232,300 each. Court of Appeal and Court of Queen’s Bench for Saskatchewan 19. The yearly salaries of the judges of the Court of Appeal for Saskatchewan and of Her Majesty’s Court of Queen’s Bench for Saskatchewan are as follows: (a) the Chief Justice of Saskatchewan $254,600; (b) the six Judges of Appeal, $232,300 each; (c) the Chief Justice of the Court of Queen’s Bench, $254,600; and (d) the 29 other judges of the Court of Queen’s Bench, $232,300 each. Court of Appeal and Court of Queen’s Bench of Alberta 20. The yearly salaries of the judges of the Court of Appeal of Alberta and of the Court of Queen’s Bench of Alberta are as follows: (a) the Chief Justice of Alberta, $254,600; (b) the 10 Justices of Appeal, $232,300 each; (c) the Chief Justice and the Associate Chief Justice of the Court of Queen’s Bench, $254,600 each; and (d) the 55 other Justices of the Court of Queen’s Bench, $232,300 each. Supreme Court of Newfoundland and Labrador 21. The yearly salaries of the judges of the Supreme Court of Newfoundland and Labrador are as follows: (a) the Chief Justice of Newfoundland and Labrador, $254,600; Jug (b) the five Judges of Appeal, $232,300 each; (c) the Chief Justice of the Trial Division, $254,600; and (d) the 18 other judges of the Trial Division, $232,300 each. 1999, c. 3, s. 72; 2001, c. 7, s. 14; 2002, c. 7, s. 189 2. Subsections 22(1) to (2.1) of the Act are replaced by the following: Supreme Court of Yukon 22. (1) The yearly salaries of the judges of the Supreme Court of Yukon are as follows: (a) the senior judge, $254,600; and (b) the other judge, $232,300. Supreme Court of the Northwest Territories (2) The yearly salaries of the judges of the Supreme Court of the Northwest Territories are as follows: (a) the senior judge, $254,600; and (b) the two other judges, $232,300 each. Nunavut Court of Justice (2.1) The yearly salaries of the judges of the Nunavut Court of Justice are as follows: (a) the senior judge, $254,600; and (b) the two other judges, $232,300 each. 1992, c. 51, s. 7(4) 3. Paragraph 24(6)(a) of the Act is replaced by the following: (a) in relation to each of the Provinces of Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Saskatchewan, Alberta and Newfoundland and Labrador, the Court of Appeal of the Province; and 2001, c. 7, s. 16 4. (1) Subsection 25(1) of the Act is replaced by the following: Annual adjustment of salary 25. (1) The yearly salaries referred to in sections 9 to 22 apply in respect of the twelve month period commencing April 1, 2004. C. 11 2001, c. 7, s. 16 (2) The portion of subsection 25(2) of the Act before paragraph (a) is replaced by the following: Annual adjustment of salary (2) The salary annexed to an office of judge in sections 9 to 22 for the twelve month period commencing April 1, 2005, and for each subsequent twelve month period, shall be the amount obtained by multiplying 2001, c. 7, s. 16 (3) Paragraph 25(3)(a) of the Act is replaced by the following: Jud (a) in relation to any twelve month period in respect of which the salary is to be determined, the “first adjustment year” is the most recent twelve month period for which the Industrial Aggregate is available on the first day of the period in respect of which the salary is to be determined, and the “second adjustment year” is the twelve month period immediately preceding the first adjustment year; and 2001, c. 7, s. 18 5. Subsection 26.3(2) of the Act is replaced by the following: Entitlement to payment of costs (2) A representative of the judiciary identified under subsection (1) who participates in an inquiry of the Commission is entitled to be paid, out of the Consolidated Revenue Fund, two thirds of the costs determined under subsection (3) in respect of his or her participation. 2002, c. 7, s. 190(1) 6. (1) Subsection 27(2) of the Act is replaced by the following: Additional allowance for northern judges (2) On and after April 1, 2004, there shall be paid to each judge of the Supreme Court of Newfoundland and Labrador resident in Labrador and each judge of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories and the Nunavut Court of Justice who is in receipt of a salary under this Act, in addition to the allowance provided by subsection (1), a non-accountable yearly allowance of $12,000 as compensation for the higher cost of living in Labrador and in the territories. 2001, c. 7, s. 19(2); 2002, c. 7, ss. 190 and 277(E), c. 8, s. 86 (2) Subsections 27(6) and (7) of the Act are replaced by the following: 2006 Representational allowance Jug (6) On and after April 1, 2004, each of the following judges is entitled to be paid, as a representational allowance, reasonable travel and other expenses actually incurred by the judge or the spouse or common-law partner of the judge in discharging the special extrajudicial obligations and responsibilities that devolve on the judge, to the extent that those expenses may not be reimbursed under any other provision of this Act and their aggregate amount does not exceed in any year the maximum amount indicated below in respect of the judge: (a) the Chief Justice of Canada, $18,750; (b) each puisne judge of the Supreme Court of Canada, $10,000; (c) the Chief Justice of the Federal Court of Appeal and each chief justice described in sections 12 to 21 as the chief justice of a province, $12,500; (d) each other chief justice referred to in sections 10 to 21, $10,000; (e) the Chief Justices of the Court of Appeal of Yukon, the Court of Appeal of the Northwest Territories and the Court of Appeal of Nunavut, and the senior judges of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories and the Nunavut Court of Justice, $10,000 each; (f) the Chief Justice of the Court Martial Appeal Court of Canada, $10,000; and (g) each regional senior judge of the Superior Court of Justice in and for the Province of Ontario, $5,000. (3) The definition “chief justice” in subsection 27(9) of the Act is replaced by the following: “chief justice” « juge en chef » “chief justice”, except in paragraphs (6)(a) and (c), includes a senior associate chief justice and an associate chief justice; R.S., c. 16 (3rd Supp.), s. 3; 2002, c. 8, s. 87(1) 7. Subsections 28(1) and (2) of the Act are replaced by the following: C. 11 Federal Courts and Tax Court 28. (1) If a judge of the Federal Court of Appeal, the Federal Court or the Tax Court of Canada notifies the Minister of Justice of Canada of his or her election to give up regular judicial duties and hold office only as a supernumerary judge, the judge shall hold the office of supernumerary judge of that Court from the time notice is given until he or she reaches the age of retirement, resigns or is removed from or otherwise ceases to hold office, or until the expiry of 10 years from the date of the election, whichever occurs earlier, and shall be paid the salary annexed to that office. Restriction on election (2) An election may be made under subsection (1) only by a judge Jud (a) who has continued in judicial office for at least 15 years and whose combined age and number of years in judicial office is not less than 80; or (b) who has attained the age of 70 years and has continued in judicial office for at least 10 years. 2002, c. 8, s. 88(1)(E) 8. Subsections 29(1) and (2) of the Act are replaced by the following: Provincial superior courts 29. (1) If the legislature of a province has enacted legislation establishing for each office of judge of a superior court of the province the additional office of supernumerary judge of the court, and a judge of that court notifies the Minister of Justice of Canada and the attorney general of the province of the judge’s election to give up regular judicial duties and hold office only as a supernumerary judge, the judge shall hold the office of supernumerary judge from the time notice is given until he or she reaches the age of retirement, resigns or is removed from or otherwise ceases to hold office, or until the expiry of 10 years from the date of the election, whichever occurs earlier, and shall be paid the salary annexed to that office. Conditions (2) An election under subsection (1) may only be made by a judge Jug (a) who has continued in judicial office for at least 15 years and whose combined age and number of years in judicial office is not less than 80; or (b) who has attained the age of 70 years and has continued in judicial office for at least 10 years. 2002, c. 7, s. 193(1) 9. (1) Paragraph 40(1)(c) of the Act is replaced by the following: (c) a judge of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice who moves to a place of residence in one of the ten provinces or in another territory during the period of two years (i) beginning two years before the judge’s date of eligibility to retire, or (ii) if no removal allowance is paid in respect of a move made during the period described in subparagraph (i), beginning on the judge’s date of retirement or resignation from office; 2002, c. 8, s. 93(2) (2) Paragraph 40(1)(e) of the Act is replaced by the following: (e) a judge of the Supreme Court of Canada, the Federal Court of Appeal, the Federal Court or the Tax Court of Canada who moves to a place of residence in Canada outside the area within which the judge was required to reside by the Act establishing that Court, during the period of two years (i) beginning two years before the judge’s date of eligibility to retire, or (ii) if no removal allowance is paid in respect of a move made during the period described in subparagraph (i), beginning on the judge’s date of retirement or resignation from office; and (3) Section 40 of the Act is amended by adding the following after subsection (2): Expenses of spouse or common-law partner (2.1) Where a removal allowance is payable to a judge of the Supreme Court of Canada, the Federal Court of Appeal, the Federal Court or C. 11 Jud the Tax Court of Canada under paragraph (1)(a), an employment assistance allowance shall be paid to the judge’s spouse or common-law partner up to a maximum of $5,000 for expenses actually incurred by the spouse or common-law partner in pursuing employment in the judge’s new place of residence. 2001, c. 7, s. 20 10. Paragraph 41.1(2)(c) of the Act is replaced by the following: (c) the representational allowance referred to in subsection 27(6) for the period, as though the appropriate maximum referred to in that subsection were an amount that bears the same ratio to that allowance that the number of months in the period bears to twelve. 1998, c. 30, s. 7(2); 2002, c. 8, s. 95(1)(E) 11. (1) Paragraph 42(1)(e) of the Act is replaced by the following: (e) a judge of the Supreme Court of Canada who has continued in judicial office on that Court for at least 10 years and resigns from office, 2002, c. 8, par. 111(a)(E) (2) Subsection 42(3) of the French version of the Act is replaced by the following: Durée des pensions (3) Le juge touche la pension à compter de la date à laquelle il cesse d’occuper son poste, et ce, jusqu’à son décès. 2001, c. 7, s. 21 12. Subsection 43.1(2) of the Act is replaced by the following: Calculation of amount of deferred annuity (2) The amount of the deferred annuity shall be two thirds of the amount of the salary annexed to the judge’s office at the time of the election multiplied by a fraction of which (a) the numerator is the number of years, to the nearest one tenth of a year, during which the judge has continued in judicial office, and (b) the denominator is the number of years, to the nearest one tenth of a year, during which the judge would have been required to continue in judicial office in order to be eligible to be granted an annuity under paragraph 42(1)(a) or (d). 2000, c. 12, par. 169(a) 13. Subsection 44(2) of the Act is replaced by the following: 2006 Where judge receiving annuity Jug (2) Subject to this section, where a judge who, before, on or after July 11, 1955, was granted a pension or annuity under this Act or any other Act of Parliament providing for the grant of pensions or annuities to judges died or dies after July 10, 1955, the Governor in Council shall grant to the survivor of the judge (a) an annuity equal to one half of the pension or annuity granted to the judge, commencing on July 18, 1983 or immediately after the death of the judge, whichever is later, and continuing during the life of the survivor; or (b) if a division of the judge’s annuity benefits has been made under section 52.14, an annuity equal to one half of the annuity that would have been granted to the judge had the annuity benefits not been divided, commencing immediately after the death of the judge and continuing during the life of the survivor. 2002, c. 8, s. 99 14. Subsection 50(2.1) of the Act is replaced by the following: Adjustment of contributions (2.1) A supernumerary judge, a judge who continues in judicial office after having been in judicial office for at least 15 years and whose combined age and number of years in judicial office is not less than 80, a judge of the Supreme Court of Canada who has continued in judicial office on that Court for at least 10 years, or a judge referred to in section 41.1 is not required to contribute under subsections (1) and (2) but is required to contribute, by reservation from salary, to the Supplementary Retirement Benefits Account at a rate of one per cent of his or her salary. 15. The Act is amended by adding the following after section 52: DIVISION OF JUDGE’S ANNUITY BENEFITS ON CONJUGAL BREAKDOWN Definitions 52.1 The following definitions apply in this section and in sections 52.11 to 52.22. C. 11 “agreement” « accord » “agreement” means an agreement referred to in subparagraph 52.11(2)(b)(ii). “annuity” « pension » “annuity” means an annuity payable under section 42, 43 or 43.1. “annuity benefit” « prestation de pension » “application” « demande » “court order” « ordonnance » “interested party” « intéressé » Jud “annuity benefit” means an annuity or a return of contributions payable under section 51, and includes amounts payable to a judge under the Supplementary Retirement Benefits Act. “application” means an application made under subsection 52.11(1). “court order” means an order referred to in paragraph 52.11(2)(a) or subparagraph 52.11(2)(b)(i). “interested party”, in relation to an application for division of a judge’s annuity benefits, means the judge or the spouse, former spouse or former common-law partner with whom those benefits would be divided under the application. “judge” « juge » “judge” includes a former judge who has been granted an annuity. “Minister” « ministre » “Minister” means the Minister of Justice of Canada. “prescribed” Version anglaise seulement “spouse” « époux » “prescribed” means prescribed by regulation. “spouse”, in relation to a judge, includes a person who is a party to a void marriage with the judge. Application for division 52.11 (1) A judge or a spouse, former spouse or former common-law partner of a judge may, in the circumstances described in subsection (2), apply in accordance with the regulations for the division of the judge’s annuity benefits between the judge and the spouse, former spouse or former common-law partner. When application may be made (2) An application may be made under the following circumstances: (a) where a court of competent jurisdiction in Canada, in proceedings in relation to divorce, annulment of marriage or separation, has made an order that provides for the annuity benefits to be divided between the interested parties; or Jug (b) where the interested parties have been living separate and apart for a period of one year or more and, either before or after they began to live separate and apart, (i) a court of competent jurisdiction in Canada has made an order that provides for the annuity benefits to be divided between them, or (ii) the interested parties have entered into a written agreement that provides for the annuity benefits to be divided between them. Notice to interested parties (3) The Minister shall send to each interested party in accordance with the regulations a notice of the receipt of an application. Objections by interested parties 52.12 (1) An interested party who objects to the division of annuity benefits on any of the grounds described in subsection (2) may submit a notice of objection in writing in accordance with the regulations within 90 days after the day on which notice of the receipt of the application is sent to the interested party under subsection 52.11(3). Grounds for objection (2) The grounds for objection are as follows: (a) the court order or agreement on which the application is based has been varied or is of no force or effect; (b) the terms of the court order or agreement have been or are being satisfied by other means; or (c) proceedings have been commenced in a court of competent jurisdiction in Canada to appeal or review the court order or challenge the terms of the agreement. Documentary evidence (3) An interested party who submits a notice of objection shall include with that notice documentary evidence to establish the grounds for objection. Approval of division 52.13 (1) Subject to subsections (2) and (3), the Minister shall, as soon as is practicable after the Minister is satisfied that an application meets the requirements of this Act, approve the division of annuity benefits in respect of which the application is made. C. 11 When decision to be deferred (2) When an interested party submits a notice of objection in accordance with section 52.12, the Minister shall Jud (a) if the objection is made on the grounds referred to in paragraph 52.12(2)(a) or (b), defer a decision on the application until the Minister is able to ascertain to his or her satisfaction whether those grounds have been established; and (b) if the objection is made on the grounds referred to in paragraph 52.12(2)(c), defer a decision on the application until the final disposition of the proceedings on which those grounds are based. Refusal of division (3) The Minister shall refuse to approve the division of annuity benefits if (a) the application is withdrawn in accordance with the regulations; (b) a notice of objection has been submitted on grounds referred to in paragraph 52.12(2)(a) or (b) and the Minister is satisfied that those grounds have been established and constitute sufficient reason to refuse the division; (c) a notice of objection has been submitted on grounds referred to in paragraph 52.12(2)(c) and the court order or agreement is of no force or effect as a result of the proceedings referred to in that paragraph; (d) the period of cohabitation of the judge and the spouse, former spouse or former common-law partner cannot be determined under subsection 52.14(6); or (e) the Minister is satisfied, based on evidence submitted by any person, that it would not be just to approve the division. Exception (4) Notwithstanding subsection (3), the Minister may approve the division of annuity benefits on the basis of an order of a court issued pursuant to any proceedings referred to in paragraph 52.12(2)(c). Transitional (5) The Minister may approve the division of the annuity benefits even though the court order or agreement on which the application is based was made or entered into before the day on which subsection 52.11(1) comes into force. 2006 Division of annuity benefits Jug 52.14 (1) Subject to subsections (3) and (3.1), where the Minister approves the division of the annuity benefits of a judge, the spouse, former spouse or former common-law partner shall be accorded a share of the annuity benefits consisting of (a) an amount representing 50% of a proportion, determined in accordance with subsection (2), of the value of the annuity that is attributed, in accordance with the regulations, to the period subject to division; or (b) if the terms of the court order or agreement on which the application for division is based provide for the payment to the spouse, former spouse or former common-law partner of a share of annuity benefits that is less than the amount determined under paragraph (a), that lesser share. Proportion of annuity value (2) The proportion of the value of an annuity referred to in paragraph (1)(a) is (a) subject to paragraph (b), the period subject to division divided by the judge’s number of years of service until the judge’s actual date of retirement or, in the case of a judge who has not yet retired, until the judge’s expected date of retirement determined in accordance with the regulations; or (b) in the case of a judge who had resigned or been removed from office by reason of an infirmity, the quotient obtained by dividing (i) the period, measured to the nearest one tenth of a year, from the beginning of the period subject to division to the earlier of the end of the period of cohabitation and the judge’s expected date of retirement if the infirmity had not occurred, determined in accordance with the regulations, by (ii) the judge’s number of years of service up to the judge’s expected date of retirement if the infirmity had not occurred, determined in accordance with the regulations. Return of contributions (3) Subject to subsections (3.1) and (4), where the Minister approves the division of the annuity benefits of a judge who was not C. 11 Jud eligible to be granted an annuity at the end of the period subject to division, the spouse, former spouse or former common-law partner shall be accorded a share of the annuity benefits consisting of (a) an amount equal to 50% of the contributions made by the judge under section 50 during the period subject to division plus 50% of any interest payable on those contributions; or (b) if the terms of the court order or agreement on which the application for division is based provide for the payment to the spouse, former spouse or former common-law partner of a share of annuity benefits that is less than the amount determined under paragraph (a), that lesser share. Return of contributions — infirm annuitant (3.1) Subject to subsection (4), where the Minister approves the division of the annuity benefits of a judge who had been granted an annuity by reason of an infirmity but was not otherwise eligible to be granted an annuity at the end of the period subject to division, the spouse, former spouse or former common-law partner shall be accorded a share of the annuity benefits consisting of (a) an amount equal to 50% of the contributions that would have been made during the period described by subparagraph (2)(b)(i) if the judge had continued in office, plus 50% of any interest payable on those contributions; or (b) if the terms of the court order or agreement on which the application for division is based provide for the payment to the spouse, former spouse or former common-law partner of a share of annuity benefits that is less than the amount determined under paragraph (a), that lesser share. Election by spouse (4) A judge’s spouse, former spouse or former common-law partner who is entitled to be accorded a share of the judge’s annuity benefits under subsection (3) or (3.1) may elect in the manner prescribed by the regulations, in lieu of receiving that share, to receive — at the time the judge becomes eligible to be granted an annuity, or at the time the judge would have Jug become eligible to be granted an annuity had the judge not resigned or been removed from office by reason of an infirmity — a share of the annuity benefits for which the judge is or would have been eligible, determined as provided in subsection (1). Death or resignation of judge (5) Where an election has been made under subsection (4) and, before becoming eligible to be granted an annuity, the judge dies, resigns, is removed from office or otherwise ceases to hold office, the spouse, former spouse or former common-law partner shall instead be paid immediately the portion of the judge’s contributions to which the spouse was otherwise entitled under subsection (3) or (3.1). Determination of periods of division and cohabitation (6) For the purposes of this section and sections 52.15 and 52.16, (a) a period subject to division is the portion of a period of cohabitation during which a judge held office under this Act, measured in years to the nearest one tenth of a year; and (b) a period of cohabitation is the period during which interested parties cohabited, as specified by the court order or agreement on which an application for division is based or, if none is specified, as determined in accordance with the regulations on the basis of evidence submitted by either or both of the interested parties. Death of spouse, former spouse or former commonlaw partner (7) A share of annuity benefits that cannot be accorded under subsection (1) by reason only of the death of the spouse, former spouse or former common-law partner shall be paid to that person’s estate or succession. Adjustment of accrued benefits (8) Where the Minister approves the division of a judge’s annuity benefits, the annuity benefits payable to the judge under this Act shall be adjusted in accordance with the regulations. Notice of division (9) The Minister shall send a notice of the division of annuity benefits in the prescribed manner to each interested party. Transfer and payment of share 52.15 (1) The spouse’s, former spouse’s or former common-law partner’s share of a judge’s annuity benefits shall be accorded by C. 11 Jud (a) the transfer of the specified portion of that share to a retirement savings plan established for the spouse, former spouse or former common-law partner that is of the prescribed kind for the purposes of section 26 of the Pension Benefits Standards Act, 1985; and (b) the payment of the remainder of that share, if any, to the spouse, former spouse or former common-law partner. Calculation of specified portion (2) For the purpose of paragraph (1)(a), the specified portion of a spouse’s, former spouse’s or former common-law partner’s share of a judge’s annuity benefits is (a) if that share consists of a portion of the judge’s contributions, that portion; or (b) in any other case, the amount determined by the formula (A x B x C) / D where A is the share of the annuity benefits, B is the period subject to division, C is the defined benefit limit, within the meaning of regulations made under the Income Tax Act, for the calendar year in which the share is accorded, and D is the portion of the annuity that is attributed, in accordance with the regulations, to the period subject to division. Tax treatment (3) For the purposes of the Income Tax Act, an amount transferred to a retirement savings plan in accordance with paragraph (1)(a) is deemed to be an amount transferred from a registered pension plan in accordance with subsection 147.3(5) of that Act. Further divisions precluded 52.16 Where a division of annuity benefits is made in respect of a period subject to division under section 52.14, no further divisions may be made under that section in respect of that period. Amounts transferred in error 52.17 Where the amount transferred or paid in respect of a spouse, former spouse or former common-law partner, or paid to the estate or Jug succession of a deceased spouse, former spouse or former common-law partner, under section 52.14 or 52.15 exceeds the amount that the spouse, former spouse or former common-law partner was entitled to have transferred or paid or the estate or succession was entitled to be paid, the amount in excess constitutes a debt due to Her Majesty in right of Canada by that spouse, former spouse or former common-law partner or that estate or succession. Amounts paid before adjustment 52.18 Where an adjustment is made under subsection 52.14(8) and an amount is or has been paid to a judge that exceeds the amount to which the judge is or would have been entitled under this Act after the effective date of that adjustment, the amount in excess constitutes a debt due to Her Majesty in right of Canada by the judge and may be recovered at any time by set-off against any annuity benefit that is payable to the judge under this Act, without prejudice to any other recourse available to Her Majesty in right of Canada with respect to its recovery. Void transactions 52.19 (1) Amounts that a spouse, former spouse or former common-law partner is or may become entitled to under section 52.14 are not capable of being assigned, charged, anticipated or given as security, and any transaction that purports to assign, charge, anticipate or give as security any such amount is void. Exemption from attachment, etc. (2) Amounts that a spouse, former spouse or former common-law partner is or may become entitled to under section 52.14 are exempt from attachment, seizure and execution, either at law or in equity. Access of spouse, etc. to division of benefits 52.2 Notwithstanding any other provision of this Act, a court of competent jurisdiction may order, for any period that the court determines, that no action be taken by the Minister under this Act that may prejudice the ability of the spouse, common-law partner, former spouse or former common-law partner to make an application or obtain the division of the judge’s annuity benefits under this Act. Information for spouse, etc. re benefits 52.21 Subject to the regulations, the Minister shall, at the request of a spouse, common-law partner, former spouse or former common-law C. 11 Jud partner of a judge, provide that person with information prescribed by the regulations concerning the benefits that are or may become payable to or in respect of that judge under this Act. Regulations 52.22 The Governor in Council may make regulations (a) respecting the manner of making an application, the information that is to be provided in it and the documents that are to accompany it; (b) prescribing the circumstances in which interested parties are deemed to have been living separate and apart for the purposes of paragraph 52.11(2)(b); (c) prescribing circumstances in which a person may make an application or object to an application on behalf of another person, or may act on behalf of another person in proceeding with an application made by that other person; (d) prescribing circumstances in which, the manner in which and the conditions under which the personal representative or the liquidator of the succession of a deceased judge or of a deceased spouse, former spouse or former common-law partner of a judge may make or object to an application or may proceed with an application that was made by or on behalf of the judge, spouse, former spouse or former common-law partner; (e) when regulations are made under paragraph (c) or (d), respecting the manner in which and the extent to which any provision of this Act applies to a person referred to in that paragraph or in the circumstances prescribed by those regulations, and adapting any provision of this Act to those persons or circumstances; (f) prescribing circumstances in which, the manner in which and the conditions under which a spouse, former spouse or former common-law partner of a judge may make an application after the death of the judge; (g) respecting the notice of receipt of applications to be given to interested parties under subsection 52.11(3); Jug (h) respecting the withdrawal of applications; (i) respecting the manner of submitting notices of objection under subsection 52.12(1); (j) for determining the value of an annuity to be attributed to a period subject to division, for the purposes of subsection 52.14(1); (k) for determining the expected date of retirement of a judge, for the purposes of subsections 52.14(2) and (3.1); (l) respecting the actuarial assumptions on which the determinations made under paragraphs (j) and (k) are to be based; (m) prescribing the manner in which a judge’s spouse, former spouse or former common-law partner may make an election under subsection 52.14(4), and respecting the notification of a judge of such an election; (n) prescribing, for the purposes of paragraph 52.14(6)(b), the manner of determining the period during which interested parties cohabited; (o) respecting the adjustment of the annuity benefits payable to a judge under subsection 52.14(8), including the determination of the effective date of the adjustment; (p) generally respecting the division of the annuity benefits of a judge who resigns or is removed from office by reason of an infirmity; (q) respecting the manner in which and the extent to which any provision of this Act applies, notwithstanding the other provisions of this Act, to a judge, to a spouse, former spouse, common-law partner or former common-law partner of a judge or to any other person when annuity benefits are divided under section 52.14, and adapting any provision of this Act to those persons; (r) for determining the portion of an annuity to be attributed to a period subject to division, for the purposes of subsection 52.15(2); (s) for the purposes of section 52.21, respecting the manner in which a request for information is to be made by a spouse, C. 11 Jud former spouse, common-law partner or former common-law partner of a judge, prescribing the information that is to be provided to that person concerning the benefits that are or may become payable to or in respect of the judge and specifying circumstances in which a request may be refused; (t) prescribing remedial action that may be taken in prescribed circumstances in response to administrative error or the provision of erroneous information; (u) prescribing any matter or thing that may be prescribed under sections 52.1 to 52.21; and (v) generally for carrying out the purposes and provisions of sections 52.1 to 52.21 and this section. 1989, c. 8, s. 13 16. Subsection 53(1) of the Act is replaced by the following: Amounts payable out of C.R.F. 53. (1) The salaries, allowances and annuities payable under this Act and the amounts payable under sections 46.1, 51 and 52.15 shall be paid out of the Consolidated Revenue Fund. PART 2 AMENDMENTS TO OTHER ACTS 1996, c. 10 CANADA TRANSPORTATION ACT 2002, c. 8, s. 122 17. Subsection 33(1) of the Canada Transportation Act is replaced by the following: Enforcement of decision or order 33. (1) A decision or an order of the Agency may be made an order of the Federal Court or of any superior court and is enforceable in the same manner as such an order. R.S., c. C-50; 1990, c. 8, s. 21 CROWN LIABILITY AND PROCEEDINGS ACT 1990, c. 8, s. 32 18. (1) Paragraph 34(a) of the Crown Liability and Proceedings Act is replaced by the following: Jug (a) prescribing rules of practice and procedure in respect of proceedings by, against or involving the Crown, including tariffs of fees and costs; 1990, c. 8, s. 32 (2) Paragraphs 34(d) and (e) of the Act are replaced by the following: (d) making applicable to any proceedings by, against or involving the Crown all or any of the rules of evidence applicable in similar proceedings between subject and subject; and (e) generally respecting proceedings by, against or involving the Crown. 1996, c. 23 EMPLOYMENT INSURANCE ACT 2002, c. 8, par. 182(1)(o) 19. Section 105 of the Employment Insurance Act is replaced by the following: Decision final 105. The decision of the Tax Court of Canada under section 103 is final and, except for an appeal under the Federal Courts Act, is not subject to appeal to or review by any court. R.S., c. F-7; 2002, c. 8, s. 14 FEDERAL COURTS ACT 2002, c. 8, s. 16 20. Section 5.4 of the Federal Courts Act is replaced by the following: Judges from Quebec 5.4 At least five of the judges of the Federal Court of Appeal and at least 10 of the judges of the Federal Court must be persons who have been judges of the Court of Appeal or of the Superior Court of the Province of Quebec, or have been members of the bar of that Province. 2002, c. 8, s. 16 21. Subsection 6(2) of the Act is replaced by the following: Absence or incapacity of a Chief Justice (2) If the office of Chief Justice of the Federal Court of Appeal or the office of the Chief Justice of the Federal Court is vacant, or the Chief Justice of either court is absent from Canada or is for any reason unable or unwilling to act, the powers and duties of the Chief Justice shall be exercised and performed by C. 11 Jud (a) the judge of the Federal Court of Appeal or of the Federal Court, as the case may be, who has been designated for that purpose by the Chief Justice of that Court; or (b) if no judge has been so designated, or if the judge so designated is absent from Canada or is unable or unwilling to act, the senior judge of the same court who is in Canada and is able and willing to act and who has not elected to hold office as a supernumerary judge under section 28 of the Judges Act. 22. Subsection 7(2) of the English version of the Act is replaced by the following: Rota of judges (2) Notwithstanding subsection (1), the Rules may provide for a rota of judges in order to ensure continuity of judicial availability in any centre where the volume of work or other circumstances make such an arrangement expedient. 23. Subsection 12(2) of the Act is repealed. 2002, c. 8, s. 43(1) 24. Paragraph 45.1(1)(b) of the Act is replaced by the following: (b) three judges designated by the Chief Justice of the Federal Court of Appeal, and five judges and one prothonotary designated by the Chief Justice of the Federal Court; R.S., c. P-10; 2001, c. 4, s. 113(F) PESTICIDE RESIDUE COMPENSATION ACT 1990, c. 8, s. 60 25. Subsection 14(1) of the Pesticide Residue Compensation Act is replaced by the following: Assessor and Deputy Assessors 14. (1) The Governor in Council may, from among the judges of the Federal Court and the judges of the superior, district or county courts of the provinces, appoint an Assessor and the number of Deputy Assessors that the Governor in Council considers necessary to hear and determine appeals from compensation awards made under this Act or under any other Act to which this Part is made applicable and, subject to this Act, may prescribe their jurisdiction. 2006 R.S., c. 32 (4th Supp.) Jug RAILWAY SAFETY ACT 2002, c. 8, s. 168 26. Subsection 34(1) of the Railway Safety Act is replaced by the following: Enforcement through court 34. (1) An order or emergency directive made by the Minister may be made an order of the Federal Court or any superior court and shall be enforced in the same manner as an order of the court. R.S., c. T-2 TAX COURT OF CANADA ACT 2002, c. 9, s. 10(3) 27. Subsection 12(4) of the Tax Court of Canada Act is replaced by the following: Extensions of time (4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 97.51 or 97.52 of the Customs Act, subsection 103(1) of the Employment Insurance Act, section 197 or 199 of the Excise Act, 2001, section 304 or 305 of the Excise Tax Act, or section 166.2 or 167 of the Income Tax Act. R.S., c. 51 (4th Supp.), s. 5; 1998, c. 19, s. 291(1) 28. Section 17.2 of the Act is replaced by the following: How proceeding instituted 17.2 (1) Unless the Act under which the proceeding arises provides otherwise, a proceeding in respect of which this section applies shall be instituted by filing an originating document in the form and manner set out in the rules of Court and by paying, in accordance with the rules, any required filing fee. Filing date (2) An originating document is deemed to be filed on the day on which it is received by the Registry of the Court. Service of originating document (3) After the proceeding has been instituted, an officer of the Registry of the Court shall, on behalf of the party who instituted the proceeding C. 11 Jud and in accordance with the rules of the Court, serve the originating document without delay on Her Majesty in right of Canada by transmitting a copy to the office of the Deputy Attorney General of Canada. Certificate (4) An officer of the Registry of the Court shall, in accordance with the rules of the Court, deliver or forward to the party who instituted the proceeding a certificate indicating the date of filing of the originating document and the date of service on Her Majesty in right of Canada. Certificate to be evidence (5) A certificate is evidence of the dates of filing and service. R.S., c. 51 (4th Supp.), s. 5; 1998, c. 19, s. 292(1) 29. Section 18.15 of the Act is replaced by the following: How proceeding instituted 18.15 (1) An appeal referred to in section 18 shall be instituted by filing an originating document with the Registry of the Court in the manner set out in the rules of Court and by paying, in accordance with the rules, any required filing fee. The document shall set out, in general terms, the reasons for the appeal and the relevant facts, but no special form is required unless the Act under which the appeal arises provides otherwise. Filing date (2) An originating document is deemed to be filed on the day on which it is received by the Registry of the Court. Hearing (3) Notwithstanding the provisions of the Act under which the appeal arises, the Court is not bound by any legal or technical rules of evidence in conducting a hearing and the appeal shall be dealt with by the Court as informally and expeditiously as the circumstances and considerations of fairness permit. 1998, c. 19, s. 283 30. Subsection 18.26(1) of the Act is replaced by the following: Costs 18.26 (1) The Court may, subject to the rules, award costs. In particular, the Court may award costs to the appellant if the judgment reduces the aggregate of all amounts in issue or Jug the amount of interest in issue, or increases the amount of loss in issue, as the case may be, by more than one half. R.S., c. 51 (4th Supp.) s. 5; 1990, c. 45, s. 59; 1998, c. 19, s. 294 31. Section 18.27 of the Act is replaced by the following: Regulations 18.27 The Governor in Council may make regulations increasing the amount in dispute referred to in paragraphs 18.3002(3)(c) and 18.3008(c) and subparagraph 18.3009(1)(c)(i) to any amount that does not exceed $12,000. 1998, c. 19, s. 295(1) 32. The portion of subsection 18.29(1) of the Act before paragraph (a) is replaced by the following: Other applications 18.29 (1) The provisions of sections 18.14 and 18.15, other than the reference to filing fees, subsection 18.18(1), section 18.19, subsection 18.22(3) and sections 18.23 and 18.24 apply, with any modifications that the circumstances require, in respect of appeals arising under 2002, c. 22, s. 408(15) 33. The portion of subsection 18.3009(1) of the Act before paragraph (a) is replaced by the following: Costs 18.3009 (1) In an appeal referred to in section 18.3001, the Court may, subject to the rules of Court, award costs. In particular, the Court may award costs to the person who brought the appeal if the judgment reduces the amount in dispute by more than one half and 2002, c. 8, s. 77 34. Subsection 19.2(3) of the English version of the Act is replaced by the following: Notice of appeal (3) The Attorney General of Canada and the attorney general of each province are entitled to notice of any appeal made in respect of the constitutional question. COMING INTO FORCE Order in council 35. (1) Subsections 9(1) and (2) come into force on a day to be fixed by order of the Governor in Council. C. 11 Order in council (2) Sections 13 and 15 come into force on a day to be fixed by order of the Governor in Council. Order in council (3) Sections 28 to 30, 32 and 33 come into force on a day to be fixed by order of the Governor in Council. Section 44.2 of the Judges Act 36. Section 44.2 of the Judges Act, as enacted by section 163 of the Modernization of Benefits and Obligations Act, chapter 12 of the Statutes of Canada, 2000, and replaced by section 24 of An Act to amend the Judges Act and to amend another Act in consequence, chapter 7 of the Statutes of Canada, 2001, and the Optional Survivor Annuity Regulations, made by Order in Council P.C. 2001-1362 on August 1, 2001 and registered as SOR/2001-283, are deemed to have come into force on August 1, 2001. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Jud Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 10 An Act to provide for jurisdiction over education on First Nation lands in British Columbia ASSENTED TO 12th DECEMBER, 2006 BILL C-34 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to provide for jurisdiction over education on First Nation lands in British Columbia”. SUMMARY This enactment enables agreements between Her Majesty in right of Canada and individual First Nations in British Columbia with respect to jurisdiction over education on First Nation land to be brought into effect by order in council. It includes the establishment of a First Nations Education Authority and sets out the powers, duties, functions and composition of that entity. Consequential amendments to other federal Acts are also included. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO PROVIDE FOR JURISDICTION OVER EDUCATION ON FIRST NATION LANDS IN BRITISH COLUMBIA SHORT TITLE 1. First Nations Jurisdiction over Education in British Columbia Act INTERPRETATION 2. Definitions 3. Conflict with agreement PURPOSE AND EFFECT OF THE ACT 4. Purpose 5. Bringing agreement into effect 6. Order in council — deletions from the schedule 7. Persons and bodies subject to agreement 8. Agreement binding 9. Legislative powers 10. Scope of individual agreement EFFECT OF INDIVIDUAL AGREEMENT FIRST NATIONS EDUCATION AUTHORITY 11. Establishment 12. Not agent of Her Majesty 13. Appointment of directors 14. Appointment of President and Vice-President 15. Rules of procedure 16. Head office 17. Staff PURPOSE AND POWERS OF THE AUTHORITY 18. Mandate 19. Education co-management agreements 20. Delegation 21. Other First Nations i COMMUNITY EDUCATION AUTHORITY 22. Establishment OTHER ACTS 23. Indian Act 24. Participating First Nation not liable LIABILITY MINISTER’S DUTIES AND POWERS 25. Schools GENERAL 26. Judicial notice of individual agreements 27. Judicial notice of First Nation laws 28. Statutory Instruments Act 29. Federal Courts Act 30. Notice of court or tribunal proceedings ORDERS AND REGULATIONS 31. Orders in council 32. Access to Information Act CONSEQUENTIAL AMENDMENTS 33-34. Privacy Act COMING INTO FORCE 35. Order in council SCHEDULE 55 ELIZABETH II —————— CHAPTER 10 An Act to provide for jurisdiction over education on First Nation lands in British Columbia [Assented to 12th December, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the First Nations Jurisdiction over Education in British Columbia Act. INTERPRETATION Definitions “Authority” « Autorité scolaire » “council of a participating First Nation” « conseil de la première nation participante » “education” « éducation » “First Nation land” « terres autochtones » 2. (1) The following definitions apply in this Act. “Authority” means the First Nations Education Authority established by section 11. “council of a participating First Nation” has the same meaning as the expression “council of the band” in subsection 2(1) of the Indian Act. “education” means education programs and services of a nature generally provided to students from kindergarten to grade 12. “First Nation land” means a “reserve”, as that term is defined in subsection 2(1) of the Indian Act, that is situated in British Columbia and that is set apart for a participating First Nation, and includes “first nation land” as that term is defined in subsection 2(1) of the First Nations Land Management Act. C. 10 “First Nation law” « loi autochtone » “First Nation law” means a law made under subsection 9(1). “individual agreement” « accord spécifique » “Minister” « ministre » “participating First Nation” « première nation participante » First Nations Jurisdiction over “individual agreement” means an agreement entered into between Her Majesty in right of Canada and a participating First Nation with respect to jurisdiction over education by the participating First Nation on First Nation land, and includes any amendments to the agreement made pursuant to its provisions. “Minister” means the Minister of Indian Affairs and Northern Development. “participating First Nation” means a band named in the schedule. Words and expressions in Indian Act (2) Unless the context otherwise requires, words and expressions used in this Act have the same meaning as in the Indian Act. Conflict with agreement 3. (1) In the event of a conflict between an individual agreement and any Act of Parliament, including this Act, the individual agreement prevails to the extent of the conflict. Conflict with Act (2) In the event of a conflict between this Act and any other Act of Parliament, this Act prevails to the extent of the conflict. PURPOSE AND EFFECT OF THE ACT Purpose 4. The purpose of this Act and of orders of the Governor in Council made under this Act is to bring into effect individual agreements entered into with participating First Nations. Bringing agreement into effect 5. (1) Once an individual agreement has been entered into, the Governor in Council may, by order, bring it into effect and add the name of the band that is party to it to the schedule. Force of law of agreement (2) An individual agreement is given the force of law by an order made under subsection (1). Order in council — deletions from the schedule 6. The Governor in Council may, by order, delete the name of a participating First Nation from the schedule if the Minister is satisfied that the participating First Nation has entered into a Compétence des premières nations en mat comprehensive self-government agreement, a treaty or a land claims agreement, providing for jurisdiction over education. EFFECT OF INDIVIDUAL AGREEMENT Persons and bodies subject to agreement 7. Persons and bodies have the powers, rights, privileges and benefits conferred on them by an individual agreement and are subject to any obligations and liabilities imposed on them by an individual agreement. Agreement binding 8. An individual agreement is binding on and may be relied on by all persons. Legislative powers 9. (1) A participating First Nation has, to the extent provided by an individual agreement, the power (a) to enact laws respecting education on First Nation land; and (b) to delegate to the Authority its power to make laws under paragraph (a). Transferability (2) A participating First Nation shall provide, or make provision for, education so as to allow students to transfer without academic penalty to an equivalent level in another school within the school system of British Columbia. Scope of individual agreement 10. For greater certainty, nothing in this Act renders ineffective any provision, or any amendment made to a provision, of an individual agreement for which specific provision is not made in this Act. FIRST NATIONS EDUCATION AUTHORITY Establishment 11. (1) There is hereby established in British Columbia the First Nations Education Authority, to be managed by a board of directors that consists of a minimum of six directors, including a President and a Vice-President. Capacity, rights, powers and privileges (2) The Authority has the capacity, rights, powers and privileges of a natural person, including the capacity (a) to enter into contracts; (b) to acquire, hold and dispose of property or an interest in property; (c) to raise, invest or borrow money; and (d) to sue and be sued in its own name. C. 10 Not agent of Her Majesty 12. The Authority is not an agent of Her Majesty. Appointment of directors 13. (1) Each participating First Nation has the right to appoint two directors to the board of directors, at least one of whom shall be a member of the participating First Nation, for an initial term of two years. Directors may be reappointed, for a term fixed by the board, for second or subsequent terms. Removal from office (2) A director holds office at the pleasure of the participating First Nation that appointed them, but they may be removed by the board of directors at any time for cause or for a ground set out in the board’s rules. Appointment of President and Vice-President 14. The board of directors shall appoint a President and a Vice-President, from among the directors, to hold office at the pleasure of the board for an initial term not exceeding two years, and they may be reappointed for terms of appointment to be established by the board. Rules of procedure 15. The board of directors may make rules that are consistent with this Act for the purpose of carrying out the Authority’s work, First Nations Jurisdiction over (a) specifying the grounds for the removal of directors in addition to those generally recognized by law; (b) conducting and managing its internal administrative affairs; and (c) specifying the duties of its officers, directors and employees and of persons retained by it. Head office Staff 16. The Authority’s head office shall be in British Columbia. 17. (1) The Authority may (a) hire any persons that are necessary to conduct its work; and (b) determine the duties of those persons and the conditions of their employment. Salaries and benefits (2) Persons hired under subsection (1) shall be paid the salary and benefits fixed by the Authority. Compétence des premières nations en mat PURPOSE AND POWERS OF THE AUTHORITY Mandate 18. The purpose of the Authority is to assist participating First Nations in developing the capacity to provide education on First Nation land and to provide for any other matters related to education that may be agreed to by the Authority and a participating First Nation in accordance with an individual agreement. Education comanagement agreements 19. (1) In furthering its purpose, the Authority shall, if requested by a participating First Nation and in accordance with an individual agreement, enter into a co-management agreement in respect of education with that participating First Nation. Education standards (2) The Authority shall, as provided for by a co-management agreement, (a) establish standards that are applicable to education provided by a participating First Nation on First Nation land for curriculum and examinations for courses necessary to meet graduation requirements; (b) provide a teacher certification process for teachers providing educational instruction in schools operated by a participating First Nation on First Nation land, other than teachers who teach only the language and culture of the participating First Nation; (c) provide, upon request by a participating First Nation, a teacher certification process for teachers who teach only the language and culture of the participating First Nation in schools operated by the participating First Nation on First Nation land; (d) provide a process for certifying schools that are operated by a participating First Nation on First Nation land; and (e) perform any other duties that are consistent with the individual agreement and this Act. Consultation with province (3) The Authority shall consult with the competent authorities in British Columbia regarding standards established under paragraph (2)(a). C. 10 Delegation 20. The Authority may exercise the jurisdiction over education that is delegated to it by a participating First Nation in accordance with an individual agreement. Other First Nations 21. (1) The board of directors may authorize the Authority to enter into agreements in respect of education with any First Nation in British Columbia other than a participating First Nation if that First Nation has entered into a comprehensive self-government agreement, a treaty or a land claims agreement, providing for jurisdiction over education. Agreements with other First Nations (2) If the Authority has been authorized by the board of directors to enter into agreements under subsection (1), the Authority may, if requested by a First Nation described in subsection (1) and in accordance with a comprehensive self-government agreement, a treaty or a land claims agreement, providing for jurisdiction over education, enter into an agreement in respect of education with that First Nation. Delegated jurisdiction (3) If the Authority has entered into an agreement with a First Nation under subsection (2), the Authority shall exercise the jurisdiction over education that is delegated to it by that First Nation in British Columbia in a manner consistent with subsection 19(2). Additional directors (4) If the Authority has entered into an agreement with a First Nation under subsection (2), that First Nation has the right to appoint two directors to the board of directors, at least one of whom shall be a member of that First Nation. A director holds office at the pleasure of the First Nation that appointed them, but may be removed by the board for cause or for a ground set out in the board’s rules. Terms of appointment (5) A director appointed under subsection (4) holds office for an initial term of two years and may be reappointed for a second or subsequent term, for a term of appointment fixed by the board of directors. First Nations Jurisdiction over Compétence des premières nations en mat COMMUNITY EDUCATION AUTHORITY Establishment 22. (1) A participating First Nation may, on its own or jointly with other participating First Nations, establish a Community Education Authority to operate, administer and manage the education system of the participating First Nation on First Nation land in accordance with an individual agreement. Powers, rights and duties (2) A Community Education Authority has the powers, rights, privileges and benefits conferred on it by a participating First Nation and shall perform the duties — and be subject to the liabilities — imposed on it by a First Nation law in accordance with an individual agreement. OTHER ACTS Indian Act 23. On the coming into force of a First Nation law, sections 114 to 122 of the Indian Act cease to apply to the participating First Nation and its members. LIABILITY Participating First Nation not liable 24. (1) A participating First Nation is not liable in respect of anything done or omitted to be done by Her Majesty, or any person or body authorized by Her Majesty to act, in the exercise of their powers, duties and functions in relation to education. Indemnification of participating First Nation (2) Her Majesty shall indemnify a participating First Nation for any loss suffered by the participating First Nation as a result of an act or omission described in subsection (1). Her Majesty not liable (3) Her Majesty is not liable in respect of anything done or omitted to be done by a participating First Nation, or any person or body authorized by the participating First Nation to act, in the exercise of their powers, duties and functions in relation to education. Indemnification of Her Majesty (4) The participating First Nation shall indemnify Her Majesty for any loss suffered by Her Majesty as a result of an act or omission described in subsection (3). C. 10 First Nations Jurisdiction over MINISTER’S DUTIES AND POWERS Schools 25. (1) The Minister may, in accordance with this Act, establish and maintain schools on First Nation land. Deposit of copies (2) The Minister shall cause a copy of each individual agreement and of any amendment made to the individual agreement, certified by the Minister to be a true copy, to be deposited in the library of the Department of Indian Affairs and Northern Development situated in the National Capital Region, as described in the schedule to the National Capital Act, and in any regional offices of that Department and other places that the Minister considers advisable. GENERAL Judicial notice of individual agreements 26. Judicial notice shall be taken of each individual agreement. Judicial notice of First Nation laws 27. (1) Judicial notice shall be taken of First Nation laws. Evidence of First Nation laws (2) A copy of a First Nation law purporting to be deposited in the public registry of First Nation laws referred to in an individual agreement is evidence of that law and of its contents, unless the contrary is shown. Statutory Instruments Act Federal Courts Act Notice of court or tribunal proceedings 28. For greater certainty, First Nation laws are not statutory instruments within the meaning of the Statutory Instruments Act. 29. For greater certainty, no body established by this Act or by a First Nation law is a federal board, commission or other tribunal as defined in subsection 2(1) of the Federal Courts Act. 30. (1) A party in any proceeding before a court or tribunal shall serve notice in writing on the Attorney General of Canada and the participating First Nation of any issue raised by that party in respect of (a) the interpretation or validity of an individual agreement; or (b) the validity or applicability of this Act or of a First Nation law. Compétence des premières nations en mat Content of notice (2) A notice shall identify the proceeding in which the issue arises, state whether it arises in relation to paragraph (1)(a) or (b), give particulars of the point to be argued and, if a date has been fixed for argument, give the date. Attachments (3) A notice shall be accompanied by copies of all pleadings and other documents pertaining to the issue that have been filed with the court or tribunal. Time of service (4) A notice shall be served within seven days after the issue is first raised by a party to the proceeding, whether in the initial pleadings or otherwise, and the issue may not be argued sooner than 14 days after service unless the court or tribunal allows a shorter period. Participation in proceedings (5) In any proceeding to which subsection (1) applies, the Attorney General of Canada and the participating First Nation may appear and participate with the same rights as any other party. ORDERS AND REGULATIONS Orders in council 31. (1) The Governor in Council may make orders and regulations that are necessary to implement individual agreements entered into after the day on which this subsection comes into force. Regulationmaking authority (2) The Governor in Council may make regulations to establish standards for buildings and equipment, and the inspection of buildings and equipment, used by schools administered under this Act. CONSEQUENTIAL AMENDMENTS R.S., c. A-1 ACCESS TO INFORMATION ACT 32. Subsection 13(3) of the Access to Information Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): C. 10 First Nations Jurisdiction over (e) the council of a participating First Nation as defined in subsection 2(1) of the First Nations Jurisdiction over Education in British Columbia Act. R.S., c. P-21 PRIVACY ACT 2004, c. 17, s. 18(1) 33. (1) Paragraph 8(2)(f) of the Privacy Act is replaced by the following: (f) under an agreement or arrangement between the Government of Canada or an institution thereof and the government of a province, the council of the Westbank First Nation, the council of a participating First Nation — as defined in subsection 2(1) of the First Nations Jurisdiction over Education in British Columbia Act —, the government of a foreign state, an international organization of states or an international organization established by the governments of states, or any institution of any such government or organization, for the purpose of administering or enforcing any law or carrying out a lawful investigation; (2) Subsection 8(7) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the council of a participating First Nation as defined in subsection 2(1) of the First Nations Jurisdiction over Education in British Columbia Act. 34. Subsection 19(1) of the Act is amended by striking out the word “or” at the end of paragraph (d), by adding the word “or” at the end of paragraph (e) and by adding the following after paragraph (e): (f) the council of a participating First Nation as defined in subsection 2(1) of the First Nations Jurisdiction over Education in British Columbia Act. Compétence des premières nations en mat COMING INTO FORCE Order in council 35. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. C. 10 First Nations Jurisdiction over Educa SCHEDULE (Subsection 2(1) and sections 5 and 6) PARTICIPATING FIRST NATIONS Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 4 An Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006 ASSENTED TO 22nd JUNE, 2006 BILL C-13 RECOMMENDATION Her Excellency the Governor General recommends to the House Commons the appropriation of public revenue under the circumstances, the manner and for the purposes set out in a measure entitled “An Act implement certain provisions of the budget tabled in Parliament on May 2006”. of in to 2, SUMMARY Part 1 amends the Excise Tax Act to implement, effective July 1, 2006, the reduction in the Goods and Services Tax (GST) and the federal component of the Harmonized Sales Tax (HST) from 7 to 6 per cent. It also amends the Act to provide transitional rules for determining the GST/HST rate applicable to transactions that straddle the July 1, 2006, implementation date, including transitional rebates in respect of the sale of residential complexes where transfer of ownership and possession both take place on or after July 1, 2006, pursuant to a written agreement entered into on or before May 2, 2006. The Excise Act, 2001 and the Excise Act are amended to increase the excise duties on tobacco and alcohol products to offset the impact of the GST/HST rate reduction. The Air Travellers Security Charge Act is amended to ensure that rates for domestic and transborder air travel reflect the impact of the GST/HST rate reduction. Those amendments generally apply as of July 1, 2006. Part 2 implements income tax measures proposed or referenced in Budget 2006 to (a) reduce personal income taxes; (b) increase the child disability benefit; (c) increase the refundable medical expense tax credit; (d) eliminate capital gains tax on charitable donations of publicly-listed securities and ecologically-sensitive land; (e) reintroduce the mineral exploration tax credit for new flow-through share agreements entered into before April 2007; (f) expand the eligibility criteria for the disability tax credit; (g) expand the list of expenses eligible for the disability supports deduction; (h) expand the list of expenses eligible for the medical expenses tax credit; (i) clarify the eligibility of home renovation and construction expenses for the medical expenses tax credit; (j) double the amount of disability-related and medical expenses that can be claimed by a caregiver; All parliamentary publications are available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca (k) introduce a tax credit in respect of adoption expenses; (l) introduce a tax deferral for shareholders of agricultural co-ops; (m) reduce corporate income taxes; (n) eliminate the federal capital tax; and (o) extend the carry-over period for non-capital losses and investment tax credits. Part 3 amends Schedule I to the Excise Tax Act to repeal the excise tax on clocks, items made from semi-precious stones and items commonly known as jewellery, effective May 2, 2006. Part 4 amends the First Nations Goods and Services Tax Act to facilitate the establishment of taxation arrangements between the government of specified provinces and interested Indian Bands situated in those specified provinces. It also amends the Yukon First Nations Self-Government Act to provide transitional income tax measures consistent with negotiated agreements. Part 5 amends the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act to harmonize various accounting, interest, penalty and related administrative and enforcement provisions. These amendments will apply based on an implementation date that is the later of April 1, 2007, and Royal Assent. It also amends the Excise Tax Act to confirm that debt collection services that are generally provided by collection agents to financial institutions are not financial services for GST/HST purposes and are therefore taxable for GST/HST purposes. Part 6 enacts the Universal Child Care Benefit Act to assist families by supporting their child care choices through direct financial support to a maximum of $1,200 per year in respect of each of their children who has not attained the age of six years. It also makes consequential and related amendments to the Income Tax Act, the Employment Insurance Act, the Children’s Special Allowances Act and the Old Age Security Act. Part 7 amends the Federal-Provincial Fiscal Arrangements Act to determine the amount of the fiscal equalization payments to the provinces and the territorial formula financing payments to each of the territories for the fiscal years beginning after March 31, 2006 and to authorize the Minister of Finance to make an additional fiscal equalization payment to British Columbia and Newfoundland and Labrador, and to make an additional territorial formula financing payment to Yukon and Nunavut, for the fiscal year beginning on April 1, 2006. Part 8 provides for a total payment of $650,000,000 to the provinces and territories for the fiscal year 2006-2007 in respect of early learning and child care. It provides for payments to the territories for the fiscal year 2006-2007. Part 9 authorizes the Minister of Finance to enter into an agreement to provide protection to mortgagees in respect of mortgage insurance policies that are provided by a mortgage insurer that is approved by the Superintendent of Financial Institutions to sell mortgage insurance in Canada. It also fixes the maximum amount of such protection and determines how that amount can be changed. Part 10 extends the sunset provisions of financial institutions statutes by six months from October 24, 2006 to April 24, 2007. Part 11 amends the Canadian Forces Superannuation Act, Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act to change the existing formula by which adjustments are made to a contributor’s annuity. Part 12 enacts the Mackenzie Gas Project Impacts Act, the purpose of which is to create the Corporation for the Mitigation of Mackenzie Gas Project Impacts. The corporation will provide contributions to regional organizations that will fund projects that mitigate the existing or anticipated socio-economic impacts on communities in the Northwest Territories arising from the Mackenzie gas project. The Part also provides that a payment of $500,000,000 may be made to the corporation and adds the name of the corporation to the schedule of certain federal Acts. Part 13 amends the European Bank for Reconstruction and Development Agreement Act to permit the European Bank for Reconstruction and Development to carry out its purpose in Mongolia and to allow the Governor in Council to amend, by order, the schedule to that Act. It amends the Freshwater Fish Marketing Act to increase the Freshwater Fish Marketing Corporation’s legislative borrowing limit from thirty million dollars to fifty million dollars. It also amends the Public Sector Pension Investment Board Act to create share capital for the Public Sector Pension Investment Board TABLE OF PROVISIONS AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON MAY 2, 2006 SHORT TITLE 1. Budget Implementation Act, 2006 PART 1 AMENDMENTS RELATING TO THE GST/HST RATE REDUCTION AMENDMENTS RELATING TO THE GST/HST Excise Tax Act 2-32. Amendments RELATED AMENDMENTS Air Travellers Security Charge Act 33. Amendments Amendments Relating to the Taxation of Tobacco Products Excise Act, 2001 34-41. Amendments Application 42. Application Amendments Relating to Alcohol Products Excise Act 43. Amendments Excise Act, 2001 44-49. Amendments Application 50. Application PART 2 AMENDMENTS TO THE INCOME TAX ACT 51-88. Amendments i PART 3 AMENDMENTS RELATING TO EXCISE TAX ON JEWELLERY, ETC. EXCISE TAX ACT 89. Amendment BUDGET IMPLEMENTATION ACT, 2005 90. Amendment PART 4 AMENDMENTS RELATING TO ABORIGINAL TAX POWERS AND ABORIGINAL TAX TREATMENT FIRST NATIONS GOODS AND SERVICES TAX ACT 91-97. Amendments YUKON FIRST NATIONS SELF-GOVERNMENT ACT 98. Amendment PART 5 OTHER TAX-RELATED AMENDMENTS AIR TRAVELLERS SECURITY CHARGE ACT 99-112. Amendments EXCISE ACT, 2001 113-123. Amendments EXCISE TAX ACT 124-160. Amendments INCOME TAX ACT 161-166. Amendments CONDITIONAL AMENDMENT 167. Conditional amendment PART 6 UNIVERSAL CHILD CARE BENEFIT ENACTMENT OF ACT 168. Enactment of Act ii SHORT TITLE 1. Universal Child Care Benefit Act INTERPRETATION 2. Definitions 3. Purpose PURPOSE BENEFIT 4. Amount of payment 5. Benefit cannot be charged, etc. 6. Return of overpayment or erroneous payment 7. Limitation period 8. No interest payable 9. Authority to enter agreements 10. Payment out of C.R.F. CONSEQUENTIAL AND RELATED AMENDMENTS Children’s Special Allowances Act 169-171. Amendments Employment Insurance Act 172. Amendment Income Tax Act 173-179. Amendments Old Age Security Act 180. Amendment COMING INTO FORCE 181. Coming into force PART 7 AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 182-189. Amendments iv PART 8 PAYMENTS TO PROVINCES AND TERRITORIES 190. Payment of $650,000,000 191. Payment to territories PART 9 MORTGAGE INSURANCE 192. Interpretation 193. Mortgage or hypothec insurance protection agreement 194. Regulations 195. Amount to be paid out of C.R.F. 196. 2004, c. 1 197. Appropriation Act No. 1, 2006-2007 198. Appropriation Act No. 1, 2006-2007 PART 10 AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS BANK ACT 199-199.1 Amendment COOPERATIVE CREDIT ASSOCIATIONS ACT 200. Amendment INSURANCE COMPANIES ACT 201-201.1 Amendment TRUST AND LOAN COMPANIES ACT 202. Amendment PART 11 AMENDMENTS RELATING TO PENSIONS CANADIAN FORCES SUPERANNUATION ACT 203. Amendment PUBLIC SERVICE SUPERANNUATION ACT 204-205. Amendments ROYAL CANADIAN MOUNTED POLICE SUPERANNUATION ACT 206. Amendment v COMING INTO FORCE 207. Coming into force PART 12 MACKENZIE GAS PROJECT IMPACTS ACT ENACTMENT OF ACT 208. Enactment of Act 1. Mackenzie Gas Project Impacts Act SHORT TITLE INTERPRETATION 2. Definitions INCORPORATION 3. Corporation established 4. Corporation not agent of Her Majesty 5. Objects and purposes of Corporation 6. Capacity 7. Head office 8. Canada Corporations Act DIRECTORS 9. Board of directors 10. Notice of appointment 11. Terms of office of directors 12. Director representation and experience 13. Costs and expenses of Corporation STAFF 14. Staff 15. Agreement with regional organizations 16. Investment policies 17. Investments 18. Borrowing prohibited 19. Delegation by board OPERATIONS v LIQUIDATION 20. Order 21. Distribution GENERAL 22. Mandatory by-laws 23. Inconsistencies AMENDMENT OF SCHEDULE 24. Order in Council PAYMENTS 209. Payment of $500,000,000 210. Access to Information Act 211. Financial Administration Act 212. Privacy Act CONSEQUENTIAL AMENDMENTS COMING INTO FORCE 213. Order in Council PART 13 MISCELLANEOUS AMENDMENTS EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AGREEMENT ACT 214-215. Amendments FRESHWATER FISH MARKETING ACT 216. Amendment PUBLIC SECTOR PENSION INVESTMENT BOARD ACT 217. Amendment SCHEDULES 1 and 2 55 ELIZABETH II —————— CHAPTER 4 An Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006 [Assented to 22nd June, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Budget Implementation Act, 2006. PART 1 AMENDMENTS RELATING TO THE GST/HST RATE REDUCTION AMENDMENTS RELATING TO THE GST/HST R.S., c. E-15 Excise Tax Act 1997, c. 10, s. 150(6) 2. (1) The description of G in paragraph (a) of the definition “basic tax content” in subsection 123(1) of the Excise Tax Act is replaced by the following: G is (A) 7%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006, and (B) 6%, in any other case, C. 4 1997, c. 10, s. 150(6) (2) The description of P in paragraph (b) of the definition “basic tax content” in subsection 123(1) of the Act is replaced by the following: Budget Implem P is (A) 7%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006, and (B) 6%, in any other case, (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2006. 1997, c. 10, s. 160(1) 3. (1) Subsection 165(1) of the Act is replaced by the following: Imposition of goods and services tax 165. (1) Subject to this Part, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 6% on the value of the consideration for the supply. (2) Subsection (1) applies (a) to any supply (other than a supply deemed under section 191 of the Act to have been made) made on or after July 1, 2006; (b) for the purposes of calculating tax in respect of any supply (other than a supply by way of sale of real property) made before July 1, 2006, but only in respect of the portion of the tax that (i) becomes payable on or after July 1, 2006, without having been paid before that day, or (ii) is paid on or after July 1, 2006, without having become payable; Exécution du b (c) for the purposes of calculating tax in respect of any supply (other than a supply deemed under Part IX of the Act to have been made) by way of sale of real property made before July 1, 2006, if ownership and possession of the property are transferred on or after July 1, 2006, to the recipient under the agreement for the supply, unless the supply is a supply of a residential complex pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006; (d) to any supply by way of sale of a residential complex, which is a single unit residential complex (as defined in subsection 123(1) of the Act) or a residential condominium unit, deemed under subsection 191(1) of the Act to have been made on or after July 1, 2006, unless the supply is deemed to have been made as a consequence of the builder giving possession of the complex to a person under an agreement, entered into on or before May 2, 2006, for the supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated; (e) to any supply by way of sale of a residential condominium unit deemed under subsection 191(2) of the Act to have been made on or after July 1, 2006, unless possession of the unit was given to the particular person referred to in that subsection before July 1, 2006; (f) to any supply by way of sale of a residential complex deemed under subsection 191(3) of the Act to have been made on or after July 1, 2006, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the complex to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex and (i) the agreement was entered into on or before May 2, 2006, or C. 4 Budget Implem (ii) another agreement was entered into on or before May 2, 2006, by the builder and another person and that other agreement was not terminated before July 1, 2006, and was for the supply by way of sale of the building or part of it forming part of the complex; (g) to any supply by way of sale of an addition to a residential complex deemed under subsection 191(4) of the Act to have been made on or after July 1, 2006, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the addition to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex and (i) the agreement was entered into on or before May 2, 2006, or (ii) another agreement was entered into on or before May 2, 2006, by the builder and another person and that other agreement was not terminated before July 1, 2006, and was for the supply by way of sale of the building or part of it forming part of the addition; (h) for the purposes of calculating tax on the cost to another person of supplying property or a service to a financial institution under paragraph (c) of the description of A in subsection 225.2(2) of the Act if the reporting period of the financial institution ends on or after July 1, 2006; and (i) for the purposes of determining or calculating any of the following amounts if none of paragraphs (a) to (h) applies: (i) tax on or after July 1, 2006, (ii) tax that is not payable but would have been payable on or after July 1, 2006, in the absence of certain circumstances described in the Act, and (iii) an amount or a number, at any time on or after July 1, 2006, by or in accordance with an algebraic formula that makes reference to the rate set out in subsection 165(1) of the Act. 2006 1997, c. 10, s. 165(5)(E) Exécution du b 4. (1) The description of A in clause 173(1)(d)(vi)(B) of the Act is replaced by the following: A is (I) where 1. the benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in a participating province, or 2. the benefit amount is required under subsection 15(1) of that Act to be included in computing the individual’s income and the individual is resident in a participating province at the end of the year, the total of 5% and the tax rate for the participating province, and (II) in any other case, 5%, (2) Subsection (1) applies to the 2006 and subsequent taxation years of an individual, except that for the 2006 taxation year, the reference to “5%” in the description of A in clause 173(1)(d)(vi)(B) of the Act shall be read as “5.5%”. 1997, c. 10, s. 166(1) 5. (1) Paragraph 174(e) of the French version of the Act is replaced by the following: e) la personne est réputée avoir payé, au moment du versement de l’indemnité et relativement à la fourniture, une taxe égale au résultat du calcul suivant : A × (B/C) C. 4 Budget Implem où : A représente le montant de l’indemnité, B : (i) la somme du taux fixé au paragraphe 165(1) et du taux de taxe applicable à une province participante si, selon le cas : (A) la totalité ou la presque totalité des fournitures relativement auxquelles l’indemnité est versée ont été effectuées dans des provinces participantes, (B) l’indemnité est versée en vue de l’utilisation du véhicule à moteur dans des provinces participantes, (ii) dans les autres cas, le taux fixé au paragraphe 165(1), C la somme de 100 % et du pourcentage déterminé selon l’élément B. 1997, c. 10, s. 166(1) (2) Paragraph 174(f) of the English version of the Act is replaced by the following: (f) the person is deemed to have paid, at the time the allowance is paid, tax in respect of the supply equal to the amount determined by the formula A × (B/C) where A is the amount of the allowance, B is (i) the total of the rate set out in subsection 165(1) and the tax rate for a participating province if (A) all or substantially all of the supplies for which the allowance is paid were made in participating provinces, or (B) the allowance is paid for the use of the motor vehicle in participating provinces, and (ii) in any other case, the rate set out in subsection 165(1), and Exécution du b C is the total of 100% and the percentage determined for B. (3) Subsections (1) and (2) apply to any allowance paid by a person on or after July 1, 2006. 1997, c. 10, s. 169(3) 6. (1) The description of A in subsection 176(1) of the Act is replaced by the following: A is (a) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (b) in any other case, the rate set out in subsection 165(1), (2) Subsection (1) applies to any supply made on or after July 1, 2006. 1997, c. 10, s. 174(1) 7. (1) The definition “tax fraction” in subsection 181(1) of the Act is replaced by the following: “tax fraction” « fraction de taxe » “tax fraction” of a coupon value or of the discount or exchange value of a coupon means (a) where the coupon is accepted in full or partial consideration for a supply made in a participating province, the fraction A/B where A is the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and B is the total of 100% and the percentage determined for A; and (b) in any other case, the fraction C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C. C. 4 Budget Implem (2) Subsection (1) applies to any coupon that is accepted on or after July 1, 2006, in full or partial consideration for a supply. 1997, c. 10, s. 175(1) 8. (1) The description of A in paragraph 181.1(a) of the French version of the Act is replaced by the following: A représente : (i) si la taxe prévue au paragraphe 165(2) était payable relativement à la fourniture du bien ou du service au profit de la personne, la somme du taux fixé au paragraphe 165(1) et du taux de taxe applicable à la province participante dans laquelle cette fourniture a été effectuée, (ii) dans les autres cas, le taux fixé au paragraphe 165(1), 1997, c. 10, s. 175(1) (2) The description of A in paragraph 181.1(e) in the English version of the Act is replaced by the following: A is (i) if tax under subsection 165(2) was payable in respect of the supply of the property or service to the particular person, the total of the rate set out in subsection 165(1) and the tax rate of the participating province in which that supply was made, and (ii) in any other case, the rate set out in subsection 165(1), and (3) Subsections (1) and (2) apply to any supply of property or a service in respect of which tax became payable on or after July 1, 2006, if the supply is made to a person to whom a registrant pays a rebate in respect of the property or service. 1997, c. 10, s. 176(1) 9. (1) The description of B in paragraph 182(1)(a) of the Act is replaced by the following: B is (i) if tax under subsection 165(2) was payable in respect of the supply, the total of 100%, the rate set out in Exécution du b subsection 165(1) and the tax rate for the participating province in which the supply was made, and (ii) in any other case, the total of 100% and the rate set out in subsection 165(1), and (2) Subsection (1) applies to an amount that is paid or forfeited on or after July 1, 2006, and to a debt or other obligation that is reduced or extinguished, without payment on account of the debt or obligation, on or after that day. 1997, c. 10, s. 177(1) 10. (1) The description of A in paragraph 183(4)(a) of the Act is replaced by the following: A is (i) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (ii) in any other case, the rate set out in subsection 165(1), 1997, c. 10, s. 177(2) (2) The description of A in subparagraph 183(5)(b)(i) of the Act is replaced by the following: A is (A) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (B) in any other case, the rate set out in subsection 165(1), 1997, c. 10, s. 177(3); 2000, c. 30, s. 35(2) (3) The description of A in subparagraph 183(6)(a)(ii) of the Act is replaced by the following: A is (I) the rate set out in subsection 165(1) if 1. the property is situated in a participating province at the particular time, it was seized or repossessed before the day that is three years after the implementa10 C. 4 Budget Implem tion date for that province (as defined in section 348) and tax would not have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, or 2. the property is situated in a non-participating province at the particular time, and (II) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time, 1997, c. 10, s. 177(4) (4) The description of A in paragraph 183(6)(b) of the Act is replaced by the following: A is (i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (ii) in any other case, the rate set out in subsection 165(1), (5) Subsections (1) to (4) apply to property that is seized or repossessed by a creditor if the creditor begins, on or after July 1, 2006, to use the property otherwise than in the making of a supply of the property. 1997, c. 10, s. 178(1) 11. (1) The description of A in paragraph 184(3)(a) of the Act is replaced by the following: A is (i) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (ii) in any other case, the rate set out in subsection 165(1), 1997, c. 10, s. 178(2) (2) The description of A in subparagraph 184(4)(b)(i) of the Act is replaced by the following: Exécution du b A is (A) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (B) in any other case, the rate set out in subsection 165(1), 1997, c. 10, s. 178(3); 2000, c. 30, s. 36(2) (3) The description of A in subparagraph 184(5)(a)(ii) of the Act is replaced by the following: A is (A) the rate set out in subsection 165(1) if (I) the property is situated in a participating province at the particular time, it was transferred before the day that is three years after the implementation date for that province (as defined in section 348) and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, or (II) the property is situated in a non-participating province at the particular time, and (B) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time, 1997, c. 10, s. 178(4) (4) The description of A in paragraph 184(5)(b) of the Act is replaced by the following: A is (i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (ii) in any other case, the rate set out in subsection 165(1), C. 4 Budget Implem (5) Subsections (1) to (4) apply to property that is transferred to an insurer if the insurer begins, on or after July 1, 2006, to use the property otherwise than in the making of a supply of the property. 2000, c. 30, s. 37(1) 12. (1) The description of A in clause 184.1(2)(d)(i)(A) of the Act is replaced by the following: A is (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for the participating province, and (II) in any other case, the rate set out in subsection 165(1), and (2) Subsection (1) applies to a person acting as a surety under a performance bond in respect of a contract for a particular taxable supply of construction services if a contract payment (within the meaning of paragraph 184.1(2)(a) of the Act) becomes due or is paid without having become due to the person on or after July 1, 2006, by reason of the person carrying on the particular construction. (3) Despite subsection (2) and for the purpose of determining the total amount of all input tax credits in respect of direct inputs (within the meaning of paragraph 184.1(2)(c) of the Act), where a surety is carrying on a particular construction of real property situated in Canada as full or partial satisfaction of the surety’s obligation under a bond, a contract payment (within the meaning of paragraph 184.1(2)(a) of the Act), other than a contract payment that is not in respect of the particular construction, becomes due or is paid without having become due before July 1, 2006, and another contract payment (within the meaning of paragraph 184.1(2)(a) of the Act), other than a contract payment that is not in respect of the particular construction, becomes due on or after that day, without having been paid before that Exécution du b day, or is paid without having become due on or after that day, clause 184.1(2)(d)(i)(A) of the Act shall be read as follows: (A) the amount determined by the formula (A × B) + (C × D) where A is (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of 7% and the rate of tax for that participating province, and (II) in any other case, 7%, B is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due before July 1, 2006, or are paid, without having become due, to the surety before that day, C is (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of 6% and the rate of tax for the participating province, and (II) in any other case, 6%, and D is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due on or after July 1, 2006, without having been paid before that day, or are paid, without having become due, to the surety on or after that day 1997, c. 10, s. 181(1) 13. (1) The description of B in paragraph 187(c) of the Act is replaced by the following: B is C. 4 Budget Implem (i) if that supply is made in a participating province, the total of 100%, the rate set out in subsection 165(1) and the tax rate for that province, and (ii) in any other case, the total of 100% and the rate set out in subsection 165(1), (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 1994, c. 9, s. 12(1)(F) 14. (1) Subsection 188(1) of the Act is replaced by the following: Prizes 188. (1) If a commercial activity of a registrant (other than a registrant to whom subsection (5) applies) consists of taking bets or conducting games of chance and, in the course of that activity, the registrant pays an amount of money at any time in a reporting period as a prize or winnings to a bettor or a person playing or participating in the games, for the purpose of determining an input tax credit of the registrant, the registrant shall be deemed to have received at that time a taxable supply of a service for use exclusively in the activity and to have paid, at that time, tax in respect of the supply equal to the amount determined by the formula (A/B) × C where A is (a) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (b) in any other case, the rate set out in subsection 165(1), B is the total of 100% and the percentage determined for A, and C is the amount of money paid as the prize or winnings. (2) Subsection (1) is deemed to have come into force on April 1, 1997. Exécution du b 1993, c. 27, s. 57(3) 15. (1) The portion of subsection 193(1) of the Act before paragraph (a) is replaced by the following: Sale of real property 193. (1) Subject to subsection (2.1), if at a particular time a registrant makes a particular taxable supply of real property by way of sale, other than 1997, c. 10, s. 183(2) (2) The portion of subsection 193(2) of the Act before paragraph (a) is replaced by the following: Sale by public sector bodies (2) Subject to subsection (2.1), if at a particular time a registrant that is a public sector body (other than a financial institution) makes a particular taxable supply of real property by way of sale (other than a supply that is deemed under subsection 200(2) or 206(5) to have been made) and, immediately before the time tax becomes payable in respect of the particular taxable supply, the property was not used by the registrant primarily in commercial activities of the registrant, except where subsection (1) applies, the registrant may, despite section 170 and Subdivision d, claim an input tax credit for the reporting period in which tax in respect of the particular taxable supply became payable or is deemed to have been collected, as the case may be, equal to the lesser of (3) Section 193 of the Act is amended by adding the following after subsection (2): Limitation (2.1) If the particular taxable supply of property referred to in subsection (1) or (2) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the value of C. 4 Budget Implem A in subsection (1) and the input tax credit under subsection (2) shall not exceed the lesser of (a) the basic tax content of the property at the particular time, and (b) the amount determined by the formula (A/B) × C where A is the basic tax content of the property at the particular time, B is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition “basic tax content” in subsection 123(1), and C is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply. (4) Subsections (1) to (3) apply to any supply in respect of which tax becomes payable or would have become payable, in the absence of section 167 of the Act, on or after July 1, 2006. 1997, c. 10, s. 184(1) 16. (1) The description of A in paragraph 194(a) of the Act is replaced by the following: A is (i) if tax under subsection 165(2) was payable in respect of the supply, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, and (ii) in any other case, the rate set out in subsection 165(1), Exécution du b (2) Subsection (1) applies to any supply of real property in respect of which ownership and possession under the agreement for the supply are transferred on or after July 1, 2006. 1997, c. 10, s. 192(4) 17. (1) The description of A in paragraph 202(4)(b) of the Act is replaced by the following: A is (i) in the case of an acquisition or importation in respect of which tax is payable only under subsection 165(1) or section 212 or 218, as the case may require, and in the case of an acquisition deemed to have been made under subsection (5) of a vehicle or aircraft in respect of which no tax under subsection 165(2) was payable by the registrant, the amount determined by the formula C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C, (ii) in the case of the bringing into a participating province of the vehicle or aircraft from a non-participating province and in the case of an acquisition in respect of which tax under section 220.06 is payable, the amount determined by the formula E/F where E is the tax rate for the participating province, and F is the total of 100% and the percentage determined for E, and (iii) in any other case, the amount determined by the formula G/H where C. 4 Budget Implem G is the total of the rate set out in subsection 165(1) and the tax rate for a participating province, and H is the total of 100% and the percentage determined for G, and (2) Subsection (1) applies to any taxation year of a registrant that ends on or after July 1, 2006, except that, for the taxation year of the registrant that includes that day, the description of A in paragraph 202(4)(b) of the Act, as amended by subsection (1), shall be read as follows: A is (i) in the case of an acquisition or importation in respect of which tax is payable only under subsection 165(1) or section 212 or 218, as the case may require, and in the case of an acquisition deemed to have been made under subsection (5) of a vehicle or aircraft in respect of which no tax under subsection 165(2) was payable by the registrant, 6.5/106.5, (ii) in the case of the bringing into a participating province of the vehicle or aircraft from a non-participating province and in the case of an acquisition in respect of which tax under section 220.06 is payable, 8/108, and (iii) in any other case, 14.5/114.5, and 1993, c. 27, s. 76(4) 18. (1) Paragraphs 211(4)(a) and (b) of the Act are replaced by the following: (a) to have made, immediately before that day, a taxable supply of the property by way of sale and to have collected, on that day, tax in respect of the supply equal to the basic tax content of the property on that day; and Exécution du b (b) to have received, on that day, a taxable supply of the property by way of sale and to have paid, on that day, tax in respect of the supply equal to the basic tax content of the property on that day. (2) Subsection (1) applies in respect of an election that is revoked and ceases to have effect on or after May 2, 2006. 1997, c. 10, s. 198(1) 19. (1) Section 212 of the Act is replaced by the following: Imposition of goods and services tax 212. Subject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 6% on the value of the goods. (2) Subsection (1) applies to goods imported into Canada, or released (as defined in the Customs Act), on or after July 1, 2006. 1997, c. 10, s. 203(1) 20. (1) Section 218 of the Act is replaced by the following: Imposition of goods and services tax 218. Subject to this Part, every recipient of an imported taxable supply shall pay to Her Majesty in right of Canada tax calculated at the rate of 6% on the value of the consideration for the imported taxable supply. (2) Subsection (1) applies (a) to any imported taxable supply made on or after July 1, 2006; (b) for the purposes of calculating tax in respect of any imported taxable supply made before July 1, 2006, but only in respect of consideration that becomes due on or after that day without having been paid before that day or that is paid, without having become due, on or after July 1, 2006; and C. 4 Budget Implem (c) if neither paragraph (a) nor (b) applies, for the purposes of determining or calculating tax that is not payable but would have been payable on or after July 1, 2006, in the absence of certain circumstances described in the Act. 1997, c. 10, s. 208(1) 21. (1) The description of E in subsection 225.2(2) of the Act is replaced by the following: E is the rate set out in subsection 165(1); (2) Subsection (1) applies for the purposes of determining the net tax of a selected listed financial institution for a reporting period of the selected listed financial institution that ends on or after July 1, 2006. 2000, c. 30, s. 61(2) 22. (1) The description of A in subparagraph 233(2)(a)(i) of the Act is replaced by the following: A is the total of 100%, the rate set out in subsection 165(1) and the tax rate for that province, and 2000, c. 30, s. 61(2) (2) Subparagraph 233(2)(a)(ii) of the Act is replaced by the following: (ii) the total consideration for all supplies (in this subparagraph referred to as the “non-participating provinces’ supplies”) that are specified supplies to which subsection 165(2) did not apply by the amount determined by the formula (100%/A) × B where A is the total of 100% and the rate set out in subsection 165(1), B is (A) if the particular person has made an election under this subsection that is in effect for that fiscal year, the part of the dividend that is in respect of the non-participating province’s supplies, and (B) in any other case, the amount determined by the formula (C/D) × E Exécution du b where C is the portion of the total of the values determined, in computing the specified amount in respect of the dividend, for B and D in subsection (1) that is attributable to supplies made in non-participating provinces, D is the total referred to in the description of C, and E is the specified amount in respect of the dividend; and (3) Subsections (1) and (2) apply in respect of a patronage dividend that is paid on or after July 1, 2006. 1997, c. 10, s. 220(3) 23. (1) The description of A in subsection 253(1) of the Act is replaced by the following: A is (a) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula D/E where D is the rate set out in subsection 165(1), and E is the total of 100% and the percentage determined for D, (b) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula F/G where F is the tax rate for a participating province, and C. 4 Budget Implem G is the total of 100% and the percentage determined for F, and (c) in any other case, the amount determined by the formula H/I where H is the total of the rate set out in subsection 165(1) and the tax rate for a participating province, and I 1993, c. 27, s. 108(1) is the total of 100% and the percentage determined for H, (2) Subparagraph 253(2)(a)(ii) of the Act is replaced by the following: (ii) paid tax in respect of the instrument equal to the amount determined by the formula A×B where A is (A) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C, (B) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula E/F where E is the tax rate for a participating province, and Exécution du b F is the total of 100% and the percentage determined for E, and (C) in any other case, the amount determined by the formula G/H where G is the total of the rate set out in subsection 165(1) and the tax rate for a participating province, and H is the total of 100% and the percentage determined for G, and B is the capital cost allowance in respect of that instrument that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year; 1993, c. 27, s. 108(1) (3) Subparagraph 253(2)(c)(ii) of the Act is replaced by the following: (ii) paid, in that reporting period, tax in respect of that acquisition equal to the amount determined by the formula A×B where A is (A) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C, C. 4 Budget Implem (B) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula E/F where E is the tax rate for a participating province, and F is the total of 100% and the percentage determined for E, and (C) in any other case, the amount determined by the formula G/H where G is the total of the rate set out in subsection 165(1) and the tax rate for a participating province, and H is the total of 100% and the percentage determined for G, and B is (A) in the case of property imported by the individual, the amount (not exceeding the total of the value of the property determined under section 215 and the tax calculated on it) in respect of the acquisition and importation of the property by the individual that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year, and (B) in any other case, the amount in respect of the acquisition of the property or service by the individual that was so deductible in computing that income. Exécution du b (4) Subsection (1) applies to any rebate for a calendar year after 2005, except that for the 2006 calendar year the description of A in subsection 253(1) of the Act, as amended by subsection (1), shall be read as follows: A is (a) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, 6.5/106.5, (b) where the tax paid by the individual does not include any tax imposed under any of those provisions, 8/108, and (c) in any other case, 14.5/114.5, (5) Subsections (2) and (3) are deemed to have come into force on April 1, 1997, except that for the purpose of determining a rebate under subsection 253(2) of the Act, as amended by subsections (2) and (3), for the 2006 calendar year, the expression “the rate set out in subsection 165(1)” shall be read as “6.5%”. 1990, c. 45, s. 12(1); 1997, c. 10, s. 221(2)(F) 24. (1) Paragraph 254(2)(h) of the Act is replaced by the following: (h) where the total consideration is not more than $350,000, an amount equal to the lesser of $7,560 and 36% of the total tax paid by the particular individual, and 1990, c. 45, s. 12(1) (2) The description of A in paragraph 254(2)(i) of the Act is replaced by the following: A is the lesser of $7,560 and 36% of the total tax paid by the particular individual, and (3) Subsections (1) and (2) apply to any rebate in respect of a supply by way of sale of a residential complex in respect of which ownership is transferred on or after July 1, 2006, to the particular individual referred to in section 254 of the Act, unless the tax C. 4 Budget Implem payable under subsection 165(1) of the Act in respect of the supply of the complex applied at the rate of 7%. 1993, c. 27, s. 110(1) 25. (1) Paragraph 254.1(2)(c) of the Act is replaced by the following: (c) the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement, is less than $477,000, 1993, c. 27, s. 110(1); 1997, c. 10, s. 222(2) (2) Paragraphs 254.1(2)(h) and (i) of the Act are replaced by the following: (h) if the fair market value referred to in paragraph (c) is not more than $371,000, an amount equal to the lesser of $7,560 and 2.04% of the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable by the particular individual to the builder for the supply by way of sale to the particular individual of the building or part of a building referred to in paragraph (a) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and (i) if the fair market value referred to in paragraph (c) is more than $371,000 but less than $477,000, the amount determined by the formula A × [($477,000 - B)/$106,000] where A is the lesser of $7,560 and 2.04% of the total consideration, and B is the fair market value referred to in paragraph (c). 2000, c. 30, s. 72(3) (3) Paragraph 254.1(2.1)(a) of the Act is replaced by the following: (a) an individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Exécution du b Nova Scotia or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the individual under the agreement for the supply of the complex to the individual, were less than $477,000, and (4) Subsections (1) to (3) apply in respect of a supply, to a particular individual referred to in section 254.1 of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if possession of the unit is given to the particular individual on or after July 1, 2006, unless the builder is deemed under section 191 of the Act to have paid tax under subsection 165(1) of the Act calculated at the rate of 7% in respect of the supply referred to in paragraph 254.1(2)(d) of the Act. 1993, c. 27, s. 111(1)(F) 26. (1) Paragraph 255(2)(d) of the Act is replaced by the following: (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $477,000, 1990, c. 45, s. 12(1) (2) Paragraphs 255(2)(g) and (h) of the Act are replaced by the following: (g) if the total consideration is not more than $371,000, an amount equal to the lesser of $7,560 and 2.04% of the total consideration, and (h) if the total consideration is more than $371,000 but less than $477,000, the amount determined by the formula A × [($477,000 - B)/$106,000] where A is the lesser of $7,560 and 2.04% of the total consideration, and B is the total consideration. C. 4 2000, c. 30, s. 73(1) (3) Paragraph 255(2.1)(c) of the Act is replaced by the following: Budget Implem (c) the individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the individual of the share or an interest in the corporation, complex or unit, were less than $477,000, (4) Subsections (1) to (3) apply for the purpose of determining a rebate in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the individual is acquiring the share for the purposes of using a residential unit in a residential complex as the primary place of residence of the individual, or a relation (as defined in subsection 255(1) of the Act) of the individual, and the rebate application is filed on or after July 1, 2006, unless the corporation paid tax under subsection 165(1) of the Act in respect of the supply of the complex to the corporation calculated at the rate of 7%. 1993, c. 27, s. 112(3); 1997, c. 10, s. 224(2)(F) 27. (1) The portion of subsection 256(2) of the Act after subparagraph (d)(ii) is replaced by the following: the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to the amount determined by the formula A × ($450,000 - B)/$100,000 where A is the lesser of 36% of the total tax paid by the particular individual before an application for the rebate is filed with the Minister in accordance with subsection (3), and (i) if all or substantially all of that tax was paid at the rate of 6%, $7,560, and (ii) in any other case, the lesser of $8,750 and the amount determined by the formula (C × $1,260) + $7,560 where Exécution du b C is the extent (expressed as a percentage) to which that tax was paid at the rate of 7%, and B is the greater of $350,000 and the fair market value of the complex referred to in paragraph (b). (2) Subsection (1) applies to any rebate in respect of a residential complex for which an application is filed with the Minister of National Revenue on or after July 1, 2006. 2001, c. 15, s. 16(1) 28. (1) The portion of the description of A in subsection 256.2(3) of the Act before the formula is replaced by the following: A is the lesser of $7,560 and the amount determined by the formula 2001, c. 15, s. 16(1) (2) The portion of the description of A in subsection 256.2(4) of the Act before the formula is replaced by the following: A is the lesser of $7,560 and the amount determined by the formula 2001, c. 15, s. 16(1) (3) The portion of the description of A in subsection 256.2(5) of the Act before the formula is replaced by the following: A is the lesser of $7,560 and the amount determined by the formula (4) Subsection (1) applies to (a) a taxable supply to a recipient from another person of a residential complex or an interest in a residential complex, in respect of which ownership and possession under the agreement for the supply are transferred on or after July 1, 2006, unless the agreement for the supply is evidenced in writing and was entered into on or before May 2, 2006; and (b) a deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) by a builder if the tax in respect of the deemed purchase of a complex or an addition to a complex is deemed to have been paid on or after July 1, 2006. C. 4 Budget Implem (5) Subsection (2) applies to a supply of a building or part of it forming part of a residential complex and a supply of land, described in subparagraphs 256.2(4)(a)(i) and (ii) of the Act, that result in a person being deemed under section 191 of the Act to have made and received a taxable supply by way of sale of the complex or of an addition to it on or after July 1, 2006, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the complex or the addition to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex or the addition and (a) the agreement was entered into on or before May 2, 2006; or (b) another agreement was entered into on or before May 2, 2006, by the builder and another person and that other agreement was not terminated before July 1, 2006, and was for the supply by way of sale of the building or part of it forming part of (i) in the case of a deemed supply of a complex, the complex, or (ii) in the case of a deemed supply of an addition, the addition. (6) Subsection (3) applies to (a) a taxable supply by way of sale to a recipient from another person of a residential complex, or an interest in a residential complex, in respect of which ownership and possession under the agreement for the supply are transferred on or after July 1, 2006, unless the agreement is evidenced in writing and was entered into on or before May 2, 2006; and (b) a deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) by a builder if the tax in respect of the Exécution du b deemed purchase of a complex or an addition to a complex is deemed to have been paid on or after July 1, 2006. 29. (1) The Act is amended by adding the following after section 256.2: Transitional rebate 256.3 (1) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to 1% of the value of the consideration for the supply. Transitional rebate (2) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and C. 4 Budget Implem (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the consideration payable for the supply to the particular person of the complex, and B is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex. Transitional rebate (3) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection, in respect of that tax, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the consideration payable for the supply to the particular person of the complex, and B is (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 Exécution du b that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and (ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex. Transitional rebate (4) If a cooperative housing corporation (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after July 1, 2006, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under section 256.2 or 259, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the corporation equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the consideration payable for the supply, and B is (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex, (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and C. 4 Budget Implem (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex, (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and (iii) in any other case, zero. Transitional rebate (5) If a particular individual (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after July 1, 2006, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular individual equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] Exécution du b where A is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 7%, and B is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex. Group of individuals (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5). Application for rebate (7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person. Transitional rebate where section 254.1 applies 256.4 (1) If (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, (b) possession of the complex is given to the particular person under the agreement on or after July 1, 2006, C. 4 Budget Implem (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), (e) pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the amount determined by the formula C × (100/D) where C is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and D is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and B is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection Exécution du b 256.2(4), in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula (E - F) × [0.01 - ((G/(E - F))/7)] where E is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c), F is the amount determined for A under paragraph (e), and G is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4). Transitional rebate where section 254.1 does not apply (2) If (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, (b) possession of the complex is given to the particular person under the agreement on or after July 1, 2006, (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular C. 4 Budget Implem person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), (e) pay a rebate to the particular person equal to the amount determined by the formula A/B where A is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and B is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula 0.01 × [C - (D × (100 / E))] where C is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c), D is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the Exécution du b supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and E is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107. Group of individuals (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1). Application for rebate (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person, and (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder. Transitional rebate for purchaser 256.5 (1) Where (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other C. 4 Budget Implem than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after July 1, 2006, (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession (i) of the residential unit to the particular person under the agreement, or (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after July 1, 2006, it is the case that the builder and (i) the particular person entered into the agreement on or before May 2, 2006, or (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before July 1, 2006, the Minister shall, subject to subsection (3), Exécution du b (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the amount determined by the formula C × (100/D) where C is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and D is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and B is the amount of the rebate under subsection 254.1 that the particular person is entitled to claim in respect of the complex, and (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula E/F where E is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular C. 4 Budget Implem person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and F is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107. Group of individuals (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph. Application for rebate (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person. Transitional rebate for builder 256.6 (1) If (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other Exécution du b than a single unit residential complex or a residential condominium unit, or an addition to it the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or a supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, (b) the builder is deemed under subsection 191(3) or (4) to have made and received on or after July 1, 2006, a supply of the complex or the addition as a consequence of giving possession (i) of the residential unit to the particular person under the agreement, or (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, (c) the builder and (i) the particular person entered into the agreement on or before May 2, 2006, or (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (b)) and that agreement was not terminated before July 1, 2006, (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 7%, and (e) the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (d), C. 4 Budget Implem the Minister shall, subject to subsection (2), pay a rebate to the builder equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the amount determined by the formula C - [D × (100/E)] where C is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (b), D is (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and E is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and B is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition. 2006 Application for rebate Exécution du b (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) is deemed to have been paid by the builder. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 1997, c. 10, s. 226(1) 30. (1) The portion of subsection 257(1) of the Act before paragraph (a) is replaced by the following: Non-registrant sale of real property 257. (1) If a person who is not a registrant makes a particular taxable supply of real property by way of sale, the Minister shall, subject to subsections (1.1) and (2), pay a rebate to the person equal to the lesser of (2) Section 257 of the Act is amended by adding the following after subsection (1): Limitation (1.1) If the particular taxable supply referred to in subsection (1) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the rebate under subsection (1) shall not exceed the lesser of (a) the basic tax content of the property at the particular time, and (b) the amount determined by the formula (A/B) × C where A is the basic tax content of the property at the particular time, B is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition “basic tax content” in subsection 123(1), and C is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply. C. 4 Budget Implem (3) Subsections (1) and (2) apply to a supply in respect of which tax becomes payable or would have become payable, in the absence of section 167 of the Act, on or after July 1, 2006. 1997, c. 10, s. 227(1) 31. (1) Subparagraph (a)(ii) of the definition “non-creditable tax charged” in subsection 259(1) of the Act is replaced by the following: (ii) tax deemed under subsection 129(6), 129.1(4), 171(3) or 183(4) or section 191 to have been collected during the period by the person in respect of the property or service, (2) Subsection (1) applies to tax deemed to have been collected on or after May 2, 2006. 32. (1) The Act is amended by adding the following after section 274: Rate change — variation of agreement 274.1 If (a) at any time before July 1, 2006, a supplier and a recipient enter into an agreement for a taxable supply of property or a service, (b) the supplier and the recipient at a later time either directly or indirectly (i) vary or alter the agreement for the supply, or (ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a), (c) the supplier, the recipient and, where applicable, the other persons are not dealing with each other at arm’s length at the time the agreement is entered into or at the later time, Exécution du b (d) tax under subsection 165(1) or section 218 in respect of the supply referred to in paragraph (a) would have been calculated at the rate of 7% on all or part of the value of the consideration for the supply attributable to the property or service in the absence of the variation, alteration or termination of the agreement, (e) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements would, in the absence of this section, be calculated at the rate of 6% on any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax, in respect of the supply referred to in paragraph (a), was initially calculated at the rate of 7%, and (f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to benefit in any manner from the rate change, the following rule applies (g) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate of 7% on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service. Definitions “person” « personne » 274.2 (1) The following definitions apply in this section. “person” does not include a consumer. C. 4 “rate change” « modification de taux » “rate change” means any change in any rate of tax imposed under this Part. “tax benefit” « avantage fiscal » “tax benefit” means a reduction, an avoidance or a deferral of tax or other amount payable under this Part or an increase in a refund or rebate of tax or other amount under this Part. “transaction” « opération » Rate change — transactions Budget Implem “transaction” has the meaning assigned by subsection 274(1). (2) If (a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm’s length at the time any of those transactions are made, (b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a tax benefit to one or more of the persons involved in the transaction or series of transactions, and (c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a tax benefit, arising from a rate change, for one or more of the persons involved in the transaction or series of transactions, the amount of tax, net tax, input tax credit, rebate or other amount payable by, or refundable to, any of those persons under this Part, or any other amount that is relevant for the purposes of computing that amount shall be determined as is reasonable in the circumstances in order to deny the tax benefit to any of those persons. Denying tax benefit on transactions (3) Despite any other provision of this Part, a tax benefit shall only be denied under subsection (2) through an assessment, reassessment or additional assessment. Exécution du b Request for adjustments (4) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) shall be entitled, within one hundred and eighty days after the day on which the notice was mailed, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction. Duties of Minister (5) On receipt of a request by a person under subsection (4), the Minister shall, with all due dispatch, consider the request and, despite subsections 298(1) and (2), assess, reassess or make an additional assessment with respect to the person, except that an assessment, a reassessment or an additional assessment may be made under this subsection only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (4). (2) Section 274.1 of the Act, as enacted by subsection (1), applies to any agreement varied, altered, terminated or entered into on or after May 2, 2006. (3) Section 274.2 of the Act, as enacted by subsection (1), applies to any transaction made on or after May 2, 2006. RELATED AMENDMENTS 2002, c. 9, s. 5 2005, c. 30, s. 20(1) Air Travellers Security Charge Act 33. (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following: (a) $4.67 for each chargeable emplanement included in the service, to a maximum of $9.34, if C. 4 2005, c. 30, s. 20(2) (2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following: Budget Implem (b) $4.95 for each chargeable emplanement included in the service, to a maximum of $9.90, if 2005, c. 30, s. 20(4) (3) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following: (d) $8.42 for each chargeable emplanement included in the service, to a maximum of $16.84, if 2005, c. 30, s. 20(7) (4) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following: (b) $8.42 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $16.84, if (5) Subsections (1) to (4) apply in respect of any air transportation service that includes a chargeable emplanement on or after July 1, 2006 and for which any consideration is paid or becomes payable on or after that day. Amendments Relating to the Taxation of Tobacco Products 2002, c. 22 Excise Act, 2001 34. (1) The Excise Act, 2001 is amended by adding the following after section 58: PART 3.1 TOBACCO PRODUCTS INVENTORY TAX Definitions 58.1 The following definitions apply in this Part. “loose tobacco” « tabac à cigarettes » “loose tobacco” means loose, fine-cut manufactured tobacco for use in making cigarettes. 2006 “separate retail establishment” « établissement de détail distinct » Exécution du b “separate retail establishment” of a person means a shop or store of the person (a) that is geographically separate from other places of business of the person; (b) at which, in the ordinary course of the person’s business, the person regularly sells, otherwise than through vending machines, tobacco products to consumers, within the meaning of section 123 of the Excise Tax Act, attending at the shop or store; and (c) in respect of which separate records are maintained. “taxed tobacco” « tabac imposé » “taxed tobacco” of a person means cigarettes, tobacco sticks, loose tobacco and cigars, in respect of which duty has been imposed under section 42 before July 1, 2006 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1 or in section 4 of that Schedule, as those provisions read on June 30, 2006, and that, at the beginning of July 1, 2006, (a) were owned by that person for sale in the ordinary course of a business of the person; (b) were not held in a vending machine; and (c) were not relieved from that duty under this Act. “unit” « unité » Imposition of tax “unit” means one cigarette, tobacco stick, gram of loose tobacco or cigar. 58.2 Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed tobacco of the person at the rate of (a) 0.2799 cent per cigarette; (b) 0.2517 cent per tobacco stick; (c) 0.1919 cent per gram of loose tobacco; and (d) 0.1814 cent per cigar. Exemption for small retail inventory 58.3 Tax under this Part in respect of the inventory of all taxed tobacco of a person that is held at the beginning of July 1, 2006 at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer units. C. 4 Taking of inventory 58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person’s inventory of all taxed tobacco. Returns 58.5 (1) Every person liable to pay tax under this Part shall, on or before August 31, 2006, file a return with the Minister in the prescribed form and manner. Separate returns (2) A person authorized under subsection 239(2) of the Excise Tax Act to file separate returns in respect of a separate branch or division may file separate returns under this Part in respect of that branch or division. Payment 58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before August 31, 2006. Minimum interest (2) No interest in respect of an amount payable by a person under this Part is payable if, at the time the person pays the amount, the total of that interest otherwise payable is less than $25. Extension (3) The Minister may at any time extend in writing the time for filing a return, or paying the tax payable, under this Part and, where the Minister so extends the time, Budget Implem (a) the return shall be filed or tax payable shall be paid within the time as so extended; and (b) interest is payable under section 170 as if the time had not been extended. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 35. (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following: (i) $0.165 multiplied by the number of cigarettes to which the offence relates, (ii) $0.121 multiplied by the number of tobacco sticks to which the offence relates, Exécution du b (iii) $0.112 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and (iv) $0.284 multiplied by the number of cigars to which the offence relates, and (2) Subparagraphs 216(3)(a)(i) to (iv) of the Act are replaced by the following: (i) $0.246 multiplied by the number of cigarettes to which the offence relates, (ii) $0.182 multiplied by the number of tobacco sticks to which the offence relates, (iii) $0.168 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and (iv) $0.66 multiplied by the number of cigars to which the offence relates, and (3) Subsections (1) and (2) come into force on the later of July 1, 2006 and the day on which this Act is assented to. 2003, c. 15, s. 46 36. (1) Paragraphs 240(a) to (c) of the Act are replaced by the following: (a) $0.355548 per cigarette that was removed in contravention of that subsection, (b) $0.205 per tobacco stick that was removed in contravention of that subsection, and (c) $203.804 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection. (2) Subsection (1) comes into force on the later of July 1, 2006 and the day on which this Act is assented to. 2003, c. 15, s. 47(2) 37. (1) Paragraph 1(b) of Schedule 1 to the Act is replaced by the following: C. 4 Budget Implem (b) $0.41025 for each five cigarettes or fraction of five cigarettes contained in any package, in any other case. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 2003, c. 15, s. 48(2) 38. (1) Paragraph 2(b) of Schedule 1 to the Act is replaced by the following: (b) $0.0605 per stick, in any other case. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 2003, c. 15, s. 49(2) 39. (1) Paragraph 3(b) of Schedule 1 to the Act is replaced by the following: (b) $55.90 per kilogram, in any other case. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 40. (1) Section 4 of Schedule 1 to the Act is replaced by the following: 4. Cigars: $16.60 per 1,000 cigars. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 2003, c. 15, s. 50(1) 41. (1) Paragraph (a) of Schedule 2 to the Act is replaced by the following: (a) $0.066 per cigar, and 2003, c. 15, s. 50(2) (2) The portion of paragraph (b) of Schedule 2 to the Act before subparagraph (i) is replaced by the following: (b) 66%, computed on (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2006. Application 42. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though sections 37 to 41 had come into force on July 1, 2006. Exécution du b Amendments Relating to Alcohol Products R.S., c. E-14 1990, c. 45, s. 34 Excise Act 43. (1) Sections 1 and 2 of Part II of the schedule to the Excise Act are replaced by the following: 1. On all beer or malt liquor containing more than 2.5% absolute ethyl alcohol by volume, $31.22 per hectolitre. 2. On all beer or malt liquor containing more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $15.61 per hectolitre. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 2002, c. 22 Excise Act, 2001 44. (1) Subparagraphs 217(2)(a)(i) and (ii) of the Excise Act, 2001 are replaced by the following: (i) $11.696 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, (ii) $0.62 multiplied by the number of litres of wine to which the offence relates, and (2) Subparagraphs 217(3)(a)(i) and (ii) of the Act are replaced by the following: (i) $23.392 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, (ii) $1.24 multiplied by the number of litres of wine to which the offence relates, and (3) Subsections (1) and (2) come into force on the later of July 1, 2006 and the day on which this Act is assented to. C. 4 Budget Implem 45. (1) Subparagraphs 218(2)(a)(i) and (ii) of the Act are replaced by the following: (i) $23.392 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and (ii) $1.24 multiplied by the number of litres of wine to which the offence relates, and (2) Subparagraphs 218(3)(a)(i) and (ii) of the Act are replaced by the following: (i) $35.088 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and (ii) $1.86 multiplied by the number of litres of wine to which the offence relates, and (3) Subsections (1) and (2) come into force on the later of July 1, 2006 and the day on which this Act is assented to. 46. (1) Section 242 of the Act is replaced by the following: Contravention of section 72 242. Every person who contravenes section 72 is liable to a penalty equal to $1.24 per litre of wine to which the contravention relates. (2) Subsection (1) comes into force on the later of July 1, 2006 and the day on which this Act is assented to. 47. (1) Paragraph 243(b) of the Act is replaced by the following: (b) if the contravention relates to wine, $0.62 per litre of that wine. (2) Subsection (1) comes into force on the later of July 1, 2006 and the day on which this Act is assented to. 48. (1) Sections 1 and 2 of Schedule 4 to the Act are replaced by the following: 1. Spirits: $11.696 per litre of absolute ethyl alcohol contained in the spirits. Exécution du b 2. Spirits containing not more than 7% absolute ethyl alcohol by volume: $0.295 per litre of spirits. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. 49. (1) Paragraphs (b) and (c) of Schedule 6 to the Act are replaced by the following: (b) in the case of wine that contains more than 1.2% of absolute ethyl alcohol by volume but not more than 7% of absolute ethyl alcohol by volume, $0.295 per litre; and (c) in the case of wine that contains more than 7% of absolute ethyl alcohol by volume, $0.62 per litre. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006. Application 50. For the purposes of applying the provisions of the Customs Act and the Excise Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though sections 43, 48 and 49 had come into force on July 1, 2006. PART 2 R.S., c. 1 (5th Supp.) AMENDMENTS TO THE INCOME TAX ACT 51. (1) The portion of paragraph 38(a.1) of the Income Tax Act before subparagraph (ii) is replaced by the following: (a.1) a taxpayer’s taxable capital gain for a taxation year from the disposition of a property is equal to zero if (i) the disposition is the making of a gift to a qualified donee (other than a private foundation) of a share, debt obligation or right listed on a prescribed stock exchange, a share of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, an interest in a related segregated C. 4 Budget Implem fund trust (within the meaning assigned by paragraph 138.1(1)(a)) or a prescribed debt obligation, or (2) The portion of paragraph 38(a.2) of the Act before subparagraph (i) is replaced by the following: (a.2) a taxpayer’s taxable capital gain for a taxation year from the disposition of a property is equal to zero if (3) Subsections (1) and (2) apply in respect of gifts of property made after May 1, 2006. 52. (1) Clause 53(1)(e)(i)(A) of the Act is replaced by the following: (A) paragraphs 38(a.1) and (a.2) and the fractions set out in the formula in paragraph 14(1)(b) and in subsection 14(5), paragraph 38(a) and subsection 41(1), (2) Subsection (1) applies after May 1, 2006. 53. (1) Clauses (ii)(F) to (H) of the description of A in paragraph 64(a) of the Act are replaced by the following: (F) where the taxpayer has an impairment in physical or mental functions, for the cost of note-taking services and to a person engaged in the business of providing such services, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, (G) where the taxpayer has an impairment in physical functions, for the cost of voice recognition software, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software, Exécution du b (H) where the taxpayer has a learning disability or an impairment in mental functions, for the cost of tutoring services that are rendered to, and supplementary to the primary education of, the taxpayer and to a person ordinarily engaged in the business of providing such services to individuals who are not related to the person, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services, (2) Subparagraph (ii) of the description of A in paragraph 64(a) of the Act is amended by striking out the word “and” at the end of clause (I) and by adding the following after clause (J): (K) where the taxpayer has a severe and prolonged impairment in physical or mental functions, for the cost of job coaching services (not including job placement or career counselling services) and to a person engaged in the business of providing such services if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, (L) where the taxpayer is blind or has a severe learning disability, for the cost of reading services and to a person engaged in the business of providing such services, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment or disability, requires those services, (M) where the taxpayer is blind and profoundly deaf, for the cost of deafblind intervening services and to a person engaged in the business of providing such services, (N) where the taxpayer has a speech impairment, for the cost of a device that is a Bliss symbol board, or a similar device, that is prescribed by a medical C. 4 Budget Implem practitioner to help the taxpayer communicate by selecting the symbols or spelling out words, (O) where the taxpayer is blind, for the cost of a device that is a Braille notetaker, prescribed by a medical practitioner, to allow the taxpayer to take notes (that can, by the device, be read back to them or printed or displayed in Braille) with the help of a keyboard, (P) where the taxpayer has a severe and prolonged impairment in physical functions that markedly restricts their ability to use their arms or hands, for the cost of a device that is a page turner prescribed by a medical practitioner to help the taxpayer to turn the pages of a book or other bound document, and (Q) where the taxpayer is blind, or has a severe learning disability, for the cost of a device or software that is prescribed by a medical practitioner and designed to enable the taxpayer to read print, (3) Subsections (1) and (2) apply to the 2005 and subsequent taxation years. 54. (1) Subsection 67.1(1) of the Act is replaced by the following: Expenses for food, etc. 67.1 (1) For the purposes of this Act, other than sections 62, 63, 118.01 and 118.2, an amount paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment is deemed to be 50% of the lesser of (a) the amount actually paid or payable in respect thereof, and (b) an amount in respect thereof that would be reasonable in the circumstances. (2) Subsection (1) applies to the 2005 and subsequent taxation years. Exécution du b 55. (1) Subsection 87(2) of the Act is amended by adding the following before paragraph (t): Tax deferred cooperative shares (s) for the purpose of section 135.1, if the new corporation is, at the beginning of its first taxation year, an agricultural cooperative corporation (within the meaning assigned by subsection 135.1(1)), (i) the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation that was an agricultural cooperative corporation at the end of the predecessor corporation’s last taxation year, and (ii) if, on the amalgamation, the new corporation issues a share (in this subparagraph referred to as the “new share”) that is described in all of paragraphs (b) to (d) of the definition “tax deferred cooperative share” in subsection 135.1(1) to a taxpayer in exchange for a share of a predecessor corporation (in this subparagraph referred to as the “old share”) that was, at the end of the predecessor corporation’s last taxation year, a tax deferred cooperative share within the meaning assigned by that definition, and the amount of paid-up capital, and the amount, if any, that the taxpayer is entitled to receive on a redemption, acquisition or cancellation, of the new share are equal to those amounts, respectively, in respect of the old share, (A) the new share is deemed to have been issued at the time the old share was issued, and (B) in applying subsection 135.1(2), the taxpayer is deemed to have disposed of the old share for nil proceeds; (2) Subsection (1) applies after 2005. 56. (1) The portion of paragraph 110(1)(d.01) of the Act before subparagraph (i) is replaced by the following: Charitable donation of employee option securities (d.01) subject to subsection (2.1), where the taxpayer disposes of a security acquired in the year by the taxpayer under an agreement referred to in subsection 7(1) by making a gift C. 4 Budget Implem of the security to a qualified donee (other than a private foundation), an amount in respect of the disposition of the security equal to 1/2 of the lesser of the benefit deemed by paragraph 7(1)(a) to have been received by the taxpayer in the year in respect of the acquisition of the security and the amount that would have been that benefit had the value of the security at the time of its acquisition by the taxpayer been equal to the value of the security at the time of the disposition, if (2) Subsection (1) applies to gifts made after May 1, 2006. 57. (1) Paragraph 111(1)(a) of the Act is replaced by the following: Non-capital losses (a) non-capital losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year; (2) Paragraphs 111(1)(c) and (d) of the Act are replaced by the following: Restricted farm losses (c) restricted farm losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year, but no amount is deductible for the year in respect of restricted farm losses except to the extent of the taxpayer’s incomes for the year from all farming businesses carried on by the taxpayer; Farm losses (d) farm losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year; and (3) The portion of the definition “noncapital loss” in subsection 111(8) of the Act before the description of F is replaced by the following: “non-capital loss” « perte autre qu’une perte en capital » “non-capital loss” of a taxpayer for a taxation year means, at any time, the amount determined by the formula (A + B) - (D + D.1 + D.2) where A is the amount determined by the formula E-F where Exécution du b E is the total of all amounts each of which is (a) the taxpayer’s loss for the year from an office, employment, business or property, (b) an amount deducted under paragraph (1)(b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g), (j) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or (c) if that time is before the taxpayer’s eleventh following taxation year, the taxpayer’s allowable business investment loss for the year, and (4) Subsections (1) to (3) apply in respect of losses that arise in the 2006 and subsequent taxation years. 58. (1) Subsection 117(2) of the Act is replaced by the following: Rates for the 2005 taxation year (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for the 2005 taxation year is (a) 15% of the amount taxable, if the amount taxable is equal to or less than $35,595; (b) $5,339 plus 22% of the amount by which the amount taxable exceeds $35,595, if the amount taxable is greater than $35,595 and is equal to or less than $71,190; (c) $13,170 plus 26% of the amount by which the amount taxable exceeds $71,190, if the amount taxable is greater than $71,190 and is equal to or less than $115,739; and C. 4 Budget Implem (d) $24,753 plus 29% of the amount by which the amount taxable exceeds $115,739, if the amount taxable is greater than $115,739. (2) Subsection 117(2) of the Act, as enacted by subsection (1), is replaced by the following: Rates for the 2006 taxation year (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for the 2006 taxation year is (a) 15.25% of the amount taxable, if the amount taxable is equal to or less than $36,378; (b) $5,548 plus 22% of the amount by which the amount taxable exceeds $36,378, if the amount taxable is greater than $36,378 and is equal to or less than $72,756; (c) $13,551 plus 26% of the amount by which the amount taxable exceeds $72,756 if the amount taxable is greater than $72,756 and is equal to or less than $118,285; and (d) $25,388 plus 29% of the amount by which the amount taxable exceeds $118,285, if the amount taxable is greater than $118,285. (3) Subsection 117(2) of the Act, as enacted by subsection (2), is replaced by the following: Rates for taxation years after 2006 (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is (a) 15.5% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $36,378; (b) if the amount taxable is greater than the amount determined for the year in respect of $36,378 and is equal to or less than the Exécution du b amount determined for the year in respect of $72,756, the amount determined in respect of the taxation year under paragraph (a) plus 22% of the amount by which the amount taxable exceeds the amount determined in respect of $36,378 for the year; (c) if the amount taxable is greater than the amount determined for the year in respect of $72,756, but is equal to or less than the amount determined for the year in respect of $118,825, the total of the amounts determined in respect of the taxation year under paragraphs (a) and (b) plus 26% of the amount by which the amount taxable exceeds the amount determined in respect of $72,756; and (d) if the amount taxable is greater than the amount that would be determined for the year in respect of $118,825, the total of the amounts determined in respect of the taxation year under paragraphs (a), (b) and (c) plus 29% of the amount by which the amount taxable exceeds the amount determined in respect of $118,825. (4) Subsection (1) applies to the 2005 taxation year. (5) Subsection (2) applies to the 2006 taxation year. (6) Subsection (3) applies to the 2007 and subsequent taxation years. 59. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following: Annual adjustment (indexing) 117.1 (1) Each of the amounts expressed in dollars in subsection 117(2), the description of B in subsection 118(1), subsections 118(2) and 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of C. 4 Budget Implem (2) Subsection (1) applies to the 2006 and subsequent taxation years. 60. (1) Subsections 118(3.1) to (3.3) of the Act are replaced by the following: Additions to personal credits — basic personal amount (3.1) The amount of $7,131 referred to in paragraphs (a) to (c) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is (a) for the 2005 taxation year, to be replaced by $8,648; (b) for the 2006 taxation year, to be replaced by $8,839, except that, for the purpose of determining the particular amount for the 2007 taxation year, the particular amount for 2006 is deemed to be $8,639; (c) for the 2007 taxation year, to be replaced by the amount that is the total of $100 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount of $8,639 as deemed under paragraph (b); (d) for the 2008 taxation year, to be replaced by the amount that is the total of $200 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c); (e) for the 2009 taxation year, to be replaced by the amount that is the greater of (i) the total of $600 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and Exécution du b (ii) $10,000; and (f) for each of the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under this subsection in respect of the amount for the immediately preceding taxation year. Additions to personal credits — spouse or common-law partner or wholly dependent person (3.2) The amount of $6,055 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is (a) for the 2005 taxation year, to be replaced by $7,344; (b) for the 2006 taxation year, to be replaced by $7,505, except that, for the purpose of determining the particular amount for the 2007 taxation year, the particular amount for 2006 is deemed to be $7,335; (c) for the 2007 taxation year, to be replaced by the amount that is the total of $85 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount of $7,335 as deemed under paragraph (b); (d) for the 2008 taxation year, to be replaced by the amount that is the total of $170 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c); (e) for the 2009 taxation year, to be replaced by the amount that is the greater of (i) the total of $510 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section C. 4 Budget Implem 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and (ii) $8,500; and (f) for each of the 2010 and subsequent taxation years, to be replaced by the amount determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined for that description for the immediately preceding taxation year in respect of the particular amount. Additions to personal credits — net income threshold (3.3) The amount of $606 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is (a) for the 2005 taxation year, to be replaced by $734; (b) for the 2006 taxation year, to be replaced by $751, except that, for the purpose of determining the particular amount for the 2007 taxation year, the particular amount for 2006 is deemed to be $734; (c) for the 2007 taxation year, to be replaced by the amount that is the total of $8.50 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount of $734 as deemed under paragraph (b); (d) for the 2008 taxation year, to be replaced by the amount that is the total of $17.00 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c); (e) for the 2009 taxation year, to be replaced by the amount that is the greater of Exécution du b (i) the total of $51.00 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d); and (ii) $850; and (f) for each of the 2010 and subsequent taxation years, to be replaced by the amount determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined for that description for the immediately preceding taxation year in respect of the particular amount. (2) Section 118 of the Act is amended by adding the following after subsection (8): Rounding (9) If an amount determined under any of paragraphs (3.1)(a) to (f), (3.2)(a) to (f) and (3.3)(a) to (f) is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the greater multiple. (3) Subsections (1) and (2) apply to the 2005 and subsequent taxation years. 61. (1) The Act is amended by adding the following after section 118: Definitions “adoption period” « période d’adoption » 118.01 (1) The following definitions apply in this section. “adoption period”, in respect of an eligible child of an individual, means the period that (a) begins at the earlier of the time that the eligible child’s adoption file is opened with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government) and the time, if any, that an application related to the adoption is made to a Canadian court; and (b) ends at the later of the time an adoption order is issued by, or recognized by, a government in Canada in respect of that child, and the time that the child first begins to reside permanently with the individual. 70 “eligible adoption expense” « dépense d’adoption admissible » C. 4 Budget Implem “eligible adoption expense”, in respect of an eligible child of an individual, means an amount paid for expenses incurred during the adoption period in respect of the adoption of that child, including (a) fees paid to an adoption agency licensed by a provincial government; (b) court costs and legal and administrative expenses related to an adoption order in respect of that child; (c) reasonable and necessary travel and living expenses of that child and the adoptive parents; (d) document translation fees; (e) mandatory fees paid to a foreign institution; (f) mandatory expenses paid in respect of the immigration of that child; and (g) any other reasonable expenses related to the adoption required by a provincial government or an adoption agency licensed by a provincial government. “eligible child” « enfant admissible » “eligible child”, of an individual, means a child who has not attained the age of 18 years at the time that an adoption order is issued or recognized by a government in Canada in respect of the adoption of that child by that individual. Adoption expense tax credit (2) For the purpose of computing the tax payable under this Part by an individual for the taxation year that includes the end of the adoption period in respect of an eligible child of the individual, there may be deducted the amount determined by the formula A×B where A is the appropriate percentage for the taxation year; and Exécution du b B is the lesser of (a) $10,000, and (b) the amount determined by the formula C-D where C is the total of all eligible adoption expenses in respect of the eligible child, and D is the total of all amounts each of which is the amount of a reimbursement or any other form of assistance (other than an amount that is included in computing the individual’s income and that is not deductible in computing the individual’s taxable income) that any individual is or was entitled to receive in respect of an amount included in computing the value of C. Apportionment of credit (3) Where more than one individual is entitled to a deduction under this section for a taxation year in respect of the adoption of an eligible child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. (2) Subsection (1) applies to the 2005 and subsequent taxation years. 62. (1) The portion of the description of D in subsection 118.2(1) of the Act before the formula is replaced by the following: D is the total of all amounts each of which is, in respect of a dependant of the individual (within the meaning assigned by subsection 118(6), other than a child of the individual who has not attained the age of 18 years before the end of the taxation year), the lesser of $10,000 and the amount determined by the formula C. 4 Budget Implem (2) Paragraph 118.2(2)(i) of the Act is replaced by the following: (i) for, or in respect of, an artificial limb, an iron lung, a rocking bed for poliomyelitis victims, a wheel chair, crutches, a spinal brace, a brace for a limb, an iliostomy or colostomy pad, a truss for hernia, an artificial eye, a laryngeal speaking aid, an aid to hearing, an artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator, for the patient; (3) Paragraphs 118.2(2)(l.2) and (l.21) of the Act are replaced by the following: (l.2) for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling, provided that such expenses (i) are not of a type that would typically be expected to increase the value of the dwelling, and (ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment; (l.21) for reasonable expenses relating to the construction of the principal place of residence of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the patient to gain access to, or to be mobile or functional within, the patient’s principal place of residence, provided that such expenses (i) are not of a type that would typically be expected to increase the value of the dwelling, and Exécution du b (ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment; (4) Subsection 118.2(2) of the Act is amended by adding the following after paragraph (l.42): (l.43) on behalf of the patient who is blind or has a severe learning disability, for reading services, if (i) the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and (ii) the payment is made to a person in the business of providing such services; (l.44) on behalf of the patient who is blind and profoundly deaf, for deaf-blind intervening services, if the payment is made to a person in the business of providing those services; (5) Subsection 118.2(2) of the Act is amended by striking out the word “or” at the end of paragraph (q) and by adding the following after paragraph (r): (s) for drugs obtained under Health Canada’s Special Access Programme in accordance with sections C.08.010 and C.08.011 of the Food and Drug Regulations and purchased for use by the patient; C. 4 Budget Implem (t) for medical devices obtained under Health Canada’s Special Access Programme in accordance with Part 2 of the Medical Devices Regulations and purchased for use by the patient; or (u) on behalf of the patient who is authorized to possess marihuana for medical purposes under the Marihuana Medical Access Regulations or section 56 of the Controlled Drugs and Substances Act, for (i) the cost of medical marihuana or marihuana seeds purchased from Health Canada, or (ii) the cost of marihuana purchased from an individual who possesses, on behalf of that patient, a designated-person production licence to produce marihuana under the Marihuana Medical Access Regulations or an exemption for cultivation or production under section 56 of the Controlled Drugs and Substances Act. (6) Subsections (1), (2), (4) and (5) apply to the 2005 and subsequent taxation years. (7) Subsection (3) applies to expenses incurred after February 22, 2005. 63. (1) Paragraph 118.3(1)(a) of the Act is replaced by the following: (a) an individual has one or more severe and prolonged impairments in physical or mental functions, (2) The portion of subsection 118.3(1)(a.1) of the Act before subparagraph (i) is replaced by the following: Exécution du b (a.1) the effects of the impairment or impairments are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted where the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a basic activity of daily living or are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted but for therapy that (3) Paragraph 118.3(1)(a.2) of the Act is replaced by the following: (a.2) in the case of an impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a single basic activity of daily living is markedly restricted or would be so restricted but for therapy referred to in paragraph (a.1), a medical practitioner has certified in prescribed form that the impairment is a severe and prolonged impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted, but for therapy referred to in paragraph (a.1), where the medical practitioner is a medical doctor or, in the case of (i) a sight impairment, an optometrist, (ii) a speech impairment, a speech-language pathologist, (iii) a hearing impairment, an audiologist, (iv) an impairment with respect to an individual’s ability in feeding or dressing themself, an occupational therapist, (v) an impairment with respect to an individual’s ability in walking, an occupational therapist, or after February 22, 2005, a physiotherapist, and (vi) an impairment with respect to an individual’s ability in mental functions necessary for everyday life, a psychologist, C. 4 Budget Implem (a.3) in the case of one or more impairments in physical or mental functions the effects of which are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted, a medical practitioner has certified in prescribed form that the impairment or impairments are severe and prolonged impairments in physical or mental functions the effects of which are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted and that the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a single basic activity of daily living, where the medical practitioner is, in the case of (i) an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, a medical doctor or an occupational therapist, and (ii) in the case of any other impairment, a medical doctor, (4) Section 118.3 of the Act is amended by adding the following after subsection (1): Time spent on therapy (1.1) For the purpose of paragraph 118.3(1)(a.1), in determining whether therapy is required to be administered at least three times each week for a total duration averaging not less than an average of 14 hours a week, the time spent on administering therapy (a) includes only time spent on activities that require the individual to take time away from normal everyday activities in order to receive the therapy; (b) in the case of therapy that requires a regular dosage of medication that is required to be adjusted on a daily basis, includes (subject to paragraph (d)) time spent on activities that are directly related to the determination of the dosage of the medication; (c) in the case of a child who is unable to perform the activities related to the administration of the therapy as a result of the child’s Exécution du b age, includes the time, if any, spent by the child’s primary caregivers performing or supervising those activities for the child; and (d) does not include time spent on activities related to dietary or exercise restrictions or regimes (even if those restrictions or regimes are a factor in determining the daily dosage of medication), travel time, medical appointments, shopping for medication or recuperation after therapy. (5) Subsections (1) to (4) apply to the 2005 and subsequent taxation years. 64. (1) Subsection 118.4(1) of the Act is amended by adding the following after paragraph (b): (b.1) an individual is considered to have the equivalent of a marked restriction in a basic activity of daily living only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual’s ability to perform more than one basic activity of daily living (including for this purpose, the ability to see) is significantly restricted, and the cumulative effect of those restrictions is tantamount to the individual’s ability to perform a basic activity of daily living being markedly restricted; (2) Subparagraph 118.4(1)(c)(i) of the Act is replaced by the following: (i) mental functions necessary for everyday life, (3) Subsection 118.4(1) of the Act is amended by adding the following after paragraph (c): (c.1) mental functions necessary for everyday life include (i) memory, (ii) problem solving, goal-setting and judgement (taken together), and C. 4 Budget Implem (iii) adaptive functioning; (4) The portion of subsection 118.4(2) of the Act before paragraph (a) is replaced by the following: Reference to medical practitioners, etc. (2) For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist, or speech-language pathologist is a reference to a person authorized to practise as such, (5) Subsections (1) to (3) apply to the 2005 and subsequent taxation years. (6) Subsection (4) applies to the 2004 and subsequent taxation years, except that in its application before February 23, 2005, the portion of subsection 118.4(2) of the Act before paragraph (a), as enacted by subsection (4), is to be read as follows: (2) For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, occupational therapist, optometrist, pharmacist, psychologist or speechlanguage pathologist is a reference to a person authorized to practise as such, 65. (1) The description of C in subsection 118.61(1) of the Act is replaced by the following: C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.3 and 118.7); (2) Paragraph 118.61(2)(b) of the Act is replaced by the following: Exécution du b (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.3 and 118.7). (3) Section 118.61 of the Act is amended by adding the following after subsection (3): Change of Appropriate Percentage (4) For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition fee and education tax credit at the end of the preceding taxation year is deemed to be the amount determined by the formula A/B × C where A is the appropriate percentage for the current taxation year; B is the appropriate percentage for the preceding taxation year; and C is the amount that would be the individual’s unused tuition and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection. (4) Subsection (1) applies to the 2002 and subsequent taxation years except that, for taxation years that are after 2001 and before 2005, the description of C in subsection 118.61(1) of the Act, as enacted by subsection (1), shall be read as follows: C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.3 and 118.7); C. 4 Budget Implem (5) Subsection (2) applies to the 2002 and subsequent taxation years except that, for taxation years that are after 2001 and before 2005, paragraph 118.61(2)(b) of the Act, as enacted by subsection (2), shall be read as follows: (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.3 and 118.7). (6) Subsection (3) applies to the 2005 and subsequent taxation years. 66. (1) Subparagraph (ii) of the description of A in paragraph 118.81(a) of the Act is replaced by the following: (ii) the amount determined by the formula C×D where C is the appropriate percentage for the taxation year, and D is $5,000. (2) The description of B in paragraph 118.81(a) of the Act is replaced by the following: B is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118, 118.01, 118.3, 118.61 and 118.7), and (3) Subsections (1) and (2) apply to the 2005 and subsequent taxation years. 67. (1) Subparagraph 118.91(b)(i) of the Act is replaced by the following: Exécution du b (i) such of the deductions permitted under subsection 118(3) and sections 118.01, 118.1, 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable, and (2) Subsection (1) applies to the 2005 and subsequent taxation years. 68. (1) Sections 118.92 to 118.94 of the Act are replaced by the following: Ordering of credits 118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsection 118(3) and sections 118.01, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121. Credits in separate returns 118.93 Where a separate return of income with respect to a taxpayer is filed under subsection 70(2), 104(23) or 150(4) for a particular period and another return of income under this Part with respect to the taxpayer is filed for a period ending in the calendar year in which the particular period ends, for the purpose of computing the tax payable under this Part by the taxpayer in those returns, the total of all deductions claimed in all those returns under any of subsection 118(3) and sections 118.01 to 118.7 and 118.9 shall not exceed the total that could be deducted under those provisions for the year with respect to the taxpayer if no separate returns were filed under subsections 70(2), 104(23) and 150(4). Tax payable by non-residents (credits restricted) 118.94 Sections 118, 118.01 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all of the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year. C. 4 Budget Implem (2) Subsection (1) applies to the 2005 and subsequent taxation years. 69. (1) Paragraph 118.95(a) of the Act is replaced by the following: (a) such of the deductions as the individual is entitled to under subsection 118(3) and sections 118.01, 118.1, 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable to the taxation year, and (2) Subsection (1) applies to the 2005 and subsequent taxation years. 70. (1) Paragraph (a) of the description of A in subsection 122.51(2) of the Act is replaced by the following: (a) $1,000, and (2) Paragraph (b) of the description of B in subsection 122.51(2) of the Act is replaced by the following: (b) $21,663. (3) Subsection (1) applies to the 2006 and subsequent taxation years. (4) Subsection (2) applies to the 2005 and subsequent taxation years. 71. (1) The portion of the description of N in the description of M in subsection 122.61(1) of the Act before paragraph (a) is replaced by the following: N is the product obtained by multiplying $2,300 by the number of qualified dependants in respect of whom both (2) The description of P in the description of M in subsection 122.61(1) of the Act is replaced by the following: P is 4% (or where the person is an eligible individual in respect of only one qualified dependant included in the description of N at the beginning of the month, 2%) of the amount determined for the description of O, (3) Subsections (1) and (2) apply in respect of overpayments deemed to arise during months that are after June 2006. Exécution du b 72. (1) Subsections 123.2(2) and (3) of the Act are replaced by the following: Specified percentage (2) The specified percentage of a corporation for a taxation year is that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year. (2) Section 123.2 of the Act is repealed. (3) Subsection (2) applies to taxation years that begin after 2007. 73. (1) The definition “general rate reduction percentage” in subsection 123.4(1) of the Act is replaced by the following: “general rate reduction percentage” « pourcentage de réduction du taux général » “general rate reduction percentage” of a corporation for a taxation year is the total of (a) that proportion of 7% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year, (b) that proportion of 7.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year, (c) that proportion of 8% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year, and (d) that proportion of 9% that the number of days in the taxation year that are after 2009 is of the number of days in the taxation year. (2) The portion of paragraph (a) of the definition “full rate taxable income” in subsection 123.4(1) of the Act before subparagraph (ii) is replaced by the following: (a) if the corporation is not a corporation described in paragraph (b) or (c) for the year, the amount by which the corporation’s C. 4 Budget Implem taxable income for the year (or, for greater certainty, if the corporation is non-resident, its taxable income earned in Canada for the year) exceeds the total of (i) if an amount is deducted under subsection 125.1(1) from the corporation’s tax otherwise payable under this Part for the year, the amount obtained by dividing the amount so deducted by the corporation’s general rate reduction percentage for the taxation year, 74. (1) The portion of subsection 125.1(1) of the Act before paragraph (a) is replaced by the following: Manufacturing and processing profits deductions 125.1 (1) There may be deducted from the tax otherwise payable under this Part by a corporation for a taxation year an amount equal to the corporation’s general rate reduction percentage for the taxation year (within the meaning assigned by subsection 123.4(1)) multiplied by the lesser of (2) The portion of subsection 125.1(2) of the Act before the formula is replaced by the following: Electrical energy and steam (2) A corporation that generates electrical energy for sale, or produces steam for sale, in a taxation year may deduct from its tax otherwise payable under this Part for the year an amount equal to the corporation’s general rate reduction percentage for the taxation year (within the meaning assigned by subsection 123.4(1)) multiplied by the amount determined by the formula 75. (1) Paragraph (d) of the definition “investment tax credit” in subsection 127(9) of the Act is repealed. (2) Paragraph (a) of the definition “flowthrough mining expenditure” in subsection 127(9) of the Act is replaced by the following: (a) that is a Canadian exploration expense incurred by a corporation after May 1, 2006 and before 2008 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2008) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the Exécution du b existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1), (3) Paragraphs (c) and (d) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act are replaced by the following: (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after May 1, 2006 and before April 1, 2007, and (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after May 1, 2006 and before April 1, 2007; (4) Section 127 of the Act is amended by adding the following after subsection (9): Transitional application of investment tax credit definition (9.01) For the purpose of applying each of paragraphs (c) to (f), (h) and (i) of the definition “investment tax credit” in subsection (9) in respect of a taxpayer, the reference to “10” in that paragraph is to be read as a reference to the number that is the lesser of (a) 20, and (b) the number that is the total of 10 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 2005 exceeds 11. Transitional application of investment tax credit definition (9.02) For the purpose of applying paragraph (g) of the definition “investment tax credit” in subsection (9) in respect of a taxpayer, the reference to “9” in that paragraph is to be read as a reference to the number that is the lesser of (a) 19, and C. 4 Budget Implem (b) the number that is the total of 9 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 2005 exceeds 11. (5) Section 127 of the Act is amended by adding the following after subsection (35); Transitional application of investment tax credit recapture (36) For the purpose of applying each of subsection (27) or (29) in respect of a taxpayer, subsection (28) in respect of a partnership or subsection (34) or (35) in respect of a purchaser and an original user, as the case may be, (which taxpayer, partnership or original user is, in this subsection, referred to as the “taxpayer”), the reference to “10” in that subsection is to be read as a reference to the number that is the lesser of (a) 20, and (b) the number that is the total of 10 and the number of taxation years or fiscal periods, as the case may be, by which the number of taxation years or fiscal periods of the taxpayer that have ended after 2005 exceeds 11. (6) Subsections (1), (4) and (5) apply to the 2006 and subsequent taxation years. (7) Subsections (2) and (3) apply to expenses renounced under agreements made after May 1, 2006. 75.1 (1) Clause 127.52(1)(h)(ii)(A) of the Act is replaced by the following: (A) the amount deducted under paragraph 110(1)(d.01), and (2) Subsection (1) applies to the 2006 and subsequent taxation years except that, for the 2006 taxation year, clause 127.52(1)(h)(ii)(A) of the Act, as enacted by subsection (1), shall be read as follows: (A) the total of (I) twice the amount deducted under paragraph 110(1)(d.01) in respect of gifts made before May 2, 2006, and Exécution du b (II) the amount deducted under paragraph 110(1)(d.01) in respect of gifts made after May 1, 2006, and 76. (1) Section 127.531 of the Act is replaced by the following: Basic minimum tax credit determined 127.531 An individual’s basic minimum tax credit for a taxation year is the total of all amounts each of which is (a) an amount deducted under subsection 118(1) or (2), 118.01(2) or 118.3(1) or any of sections 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or (b) the amount that was claimed under section 118.1 or 118.2 in computing the individual’s tax payable for the year under this Part, determined without reference to this Division, to the extent that the amount claimed does not exceed the maximum amount deductible under that section in computing the individual’s tax payable for the year under this Part, determined without reference to this Division. (2) Subsection (1) applies to the 2002 and subsequent taxation years except that, for taxation years before 2005, paragraph 127.531(a) of the Act, as enacted by subsection (1), shall be read as follows: (a) an amount deducted under subsection 118(1) or (2) or 118.3(1) or any of sections 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or 77. (1) Subparagraph 127.54(2)(b)(ii) of the Act is replaced by the following: (ii) the amount determined by the formula A×B where A is the appropriate percentage for the taxation year, and C. 4 Budget Implem B is the individual’s foreign income for the year. (2) Subsection (1) applies to the 2005 and subsequent taxation years. 78. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following: (A) under section 118, 118.01, 118.2, 118.3, 118.5, 118.6, 118.8 or 118.9, (2) Subsection (1) applies to the 2005 and subsequent taxation years. 79. (1) The portion of subsection 135(1) of the Act before paragraph (a) is replaced by the following: Deduction in computing income 135. (1) Notwithstanding anything in this Part, other than subsections (1.1) to (2.1) and 135.1(3), there may be deducted, in computing the income of a taxpayer for a taxation year, the total of the payments made, pursuant to allocations in proportion to patronage, by the taxpayer (2) The portion of subsection 135(3) of the Act before paragraph (a) is replaced by the following: Amount to be deducted or withheld from payment to customer (3) Subject to subsection 135.1(6), a taxpayer who makes at any particular time in a calendar year a payment pursuant to an allocation in proportion to patronage to a person who is resident in Canada and is not exempt from tax under section 149 shall, notwithstanding any agreement or any law to the contrary, deduct or withhold from the payment an amount equal to 15% of the lesser of the amount of the payment and the amount, if any, by which (3) The portion of subsection 135(4) of the Act before the definition “allocation in proportion to patronage” is replaced by the following: Definitions (4) For the purposes of this section and section 135.1, (4) Subsection 135(7) of the Act is replaced by the following: 2006 Payment to customer to be included in income Exécution du b (7) Where a payment pursuant to an allocation in proportion to patronage (other than an allocation in respect of consumer goods or services) has been received by a taxpayer, the amount of the payment shall, subject to subsection 135.1(2), be included in computing the recipient’s income for the taxation year in which the payment was received and, without restricting the generality of the foregoing, where a certificate of indebtedness or a share was issued to a person pursuant to an allocation in proportion to patronage, the amount of the payment by virtue of that issuance shall be included in computing the recipient’s income for the taxation year in which the certificate or share was received and not in computing the recipient’s income for the year in which the indebtedness was subsequently discharged or the share was redeemed. (5) Subsections (1) to (4) apply after 2005. 80. (1) The Act is amended by adding the following after section 135: Agricultural Cooperatives — Tax-deferred Patronage Dividends Definitions “agricultural business” « entreprise d’agriculture » 135.1 (1) The following definitions apply in this section and section 135. “agricultural business” means a business, carried on in Canada, that consists of one or any combination of (a) farming (including, if the person carrying on the business is a corporation described in paragraph (a) of the definition “agricultural cooperative corporation”, the production, processing, storing and wholesale marketing of the products of its members’ farming activities); or (b) the provision of goods or services (other than financial services) that are required for farming. “agricultural cooperative corporation” « coopérative agricole » “agricultural cooperative corporation” at any time means a corporation (a) that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment C. 4 Budget Implem of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations; and (b) that has at that time (i) as its principal business an agricultural business, or (ii) members, making up at least 75% of all members of the corporation, each of whom (A) is an agricultural cooperative corporation, or (B) has as their principal business a farming business. “allowable disposition” « disposition admissible » “allowable disposition” means a disposition by a taxpayer of a tax deferred cooperative share less than five years after the day on which the share was issued if (a) before the disposition, (i) the agricultural cooperative corporation is notified in writing that the taxpayer has after the share was issued become disabled and permanently unfit for work, or terminally ill, or (ii) the taxpayer ceases to be a member of the agricultural cooperative corporation; or (b) the agricultural cooperative corporation is notified in writing that the share is held by a person on whom the share has devolved as a consequence of the death of the taxpayer. “eligible member” « membre admissible » “eligible member” of an agricultural cooperative corporation means a member who carries on an agricultural business and who is (a) an individual resident in Canada; (b) an agricultural cooperative corporation; (c) a corporation resident in Canada that carries on the business of farming in Canada; or (d) a partnership that carries on the business of farming in Canada, all of the members of which are described in any of paragraphs (a) to (c) or this paragraph. 2006 “tax deferred cooperative share” « part à imposition différée » Exécution du b “tax deferred cooperative share” at any time means a share (a) issued, after 2005 and before 2016, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage; (b) the holder of which is not entitled to receive on the redemption, cancellation or acquisition of the share by the agricultural cooperative corporation or by any person with whom the agricultural cooperative corporation does not deal at arm’s length an amount that is greater than the amount that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the eligible member’s income for their taxation year in which the share was issued; (c) that has not before that time been deemed by subsection (4) to have been disposed of; and (d) that is of a class (i) the terms of which provide that the agricultural cooperative corporation shall not, otherwise than pursuant to an allowable disposition, redeem, acquire or cancel a share of the class before the day that is five years after the day on which the share was issued, and (ii) that is identified by the agricultural cooperative corporation in prescribed form and manner as a class of tax deferred cooperative shares. “tax paid balance” « solde libéré d’impôt » “tax paid balance” of a taxpayer at the end of a particular taxation year of the taxpayer means the amount, if any, by which (a) the total of (i) the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and C. 4 Budget Implem (ii) the amount, if any, that is included in computing the taxpayer’s income under this Part for the particular taxation year because of an election described in subparagraph (2)(a)(ii), exceeds (b) the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share that the taxpayer disposed of in the particular taxation year. Income inclusion (2) In computing the income of a taxpayer for a particular taxation year, there shall be included under subsection 135(7), in respect of the taxpayer’s receipt, as an eligible member, of tax deferred cooperative shares of an agricultural cooperative corporation in the particular taxation year, only the total of (a) the lesser of (i) the total of all amounts, in respect of the taxpayer’s receipt in the particular taxation year of tax deferred cooperative shares, that would, if this Act were read without reference to this section, be included under subsection 135(7) in computing the taxpayer’s income for the particular taxation year, and (ii) the greater of nil and the amount, if any, specified by the taxpayer in an election in prescribed form that is filed with the taxpayer’s return of income for the particular taxation year, and (b) the amount, if any, by which (i) the total of all amounts each of which is the taxpayer’s proceeds of disposition of a tax deferred cooperative share disposed of by the taxpayer in the particular taxation year exceeds (ii) the total of (A) the taxpayer’s tax paid balance at the end of the immediately preceding taxation year, and Exécution du b (B) the amount, if any, that is included in computing the taxpayer’s income for the particular taxation year because of an election described in subparagraph (a)(ii). Deductibility limit (3) The amount that may be deducted under subsection 135(1) for a particular taxation year by an agricultural cooperative corporation in respect of payments, in the form of tax deferred cooperative shares, made pursuant to allocations in proportion to patronage shall not exceed 85% of the agricultural cooperative corporation’s income of the taxation year attributable to business done with members. Deemed disposition (4) A taxpayer who holds a tax deferred cooperative share is deemed to have disposed of the share, for proceeds of disposition equal to the amount that would, if this Act were read without reference to this section, have been included under subsection 135(7), in respect of the share, in computing the taxpayer’s income for the taxation year in which the share was issued, at the earliest time at which (a) the paid-up capital of the share is reduced otherwise than by way of a redemption of the share; or (b) the taxpayer pledges, or for civil law hypothecates, assigns or in any way alienates the share as security for indebtedness of any kind. Reacquisition (5) A taxpayer who is deemed by subsection (4) to have disposed at any time of a tax deferred cooperative share is deemed to have reacquired the share, immediately after that time, at a cost equal to the taxpayer’s proceeds of disposition from that disposition. Exclusion from withholding obligation (6) Subsection 135(3) does not apply to a payment pursuant to an allocation in proportion to patronage that is paid by an agricultural cooperative corporation through the issuance of a tax deferred cooperative share. Withholding on redemption (7) If a share that was, at the time it was issued, a tax deferred cooperative share of an agricultural cooperative corporation is redeemed, acquired or cancelled by the agricultural cooperative corporation, or by a person or partnership with whom the agricultural coop94 C. 4 Budget Implem erative corporation does not deal at arm’s length, the agricultural cooperative corporation or the person or partnership, as the case may be, shall withhold and forthwith remit to the Receiver General, on account of the shareholder’s tax liability, 15% from the amount otherwise payable on the redemption, acquisition or cancellation. Application of subsections 84(2) and (3) (8) Subsections 84(2) and (3) do not apply to a tax deferred cooperative share. (2) Subsection (1) applies after 2005, except that paragraph 135.1(4)(b) of the Act, as enacted by subsection (1), does not apply to any indebtedness entered into before 2006. 81. (1) The portion of subsection 136(2) of the Act before paragraph (a) is replaced by the following: Definition of “cooperative corporation” (2) In this section, “cooperative corporation” means a corporation that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations, for the purpose of marketing (including processing incident to or connected to the marketing) natural products belonging to or acquired from its members or customers, of purchasing supplies, equipment or household necessaries for or to be sold to its members or customers or of performing services for its members or customers, if (2) Subsection (1) applies after June 2005. 82. (1) Subsection 181.1(1.1) of the Act is amended by adding the word “and” at the end of paragraph (b) and by repealing paragraphs (d) and (e). (2) Subsection (1) applies to the 2006 and subsequent taxation years. 83. (1) Subparagraphs 186(1)(d)(i) and (ii) of the Act are replaced by the following: Exécution du b (i) non-capital loss for any of its 20 taxation years immediately preceding or 3 taxation years immediately following the year, and (ii) farm loss for any of its 20 taxation years immediately preceding or 3 taxation years immediately following the year (2) Subsection (1) applies in respect of losses that arise in the 2006 and subsequent taxation years. 84. (1) Subsection 211.1(2) of the Act is replaced by the following: Taxable Canadian life investment income (2) For the purposes of this Part, the taxable Canadian life investment income of a life insurer for a taxation year is the amount, if any, by which its Canadian life investment income for the year exceeds the total of its Canadian life investment losses for the 20 taxation years immediately preceding the year, to the extent that those losses were not deducted in computing its taxable Canadian life investment income for any preceding taxation year. (2) Subsection (1) applies in respect of losses that arise in the 2006 and subsequent taxation years. 85. (1) Subsection 225.1(8) of the Act is replaced by the following: Definition of “large corporation” (8) For the purposes of this section and section 235, a corporation (other than a corporation described in subsection 181.1(3)) is a “large corporation” in a particular taxation year if the total of the taxable capital employed in Canada of the corporation, at the end of the particular taxation year, and the taxable capital employed in Canada of any other corporation, at the end of the other corporation’s last taxation year that ends at or before the end of the particular taxation year, if the other corporation is related (within the meaning assigned for the purposes of section 181.5) to the corporation at the end of the particular taxation year, exceeds $10 million, and, for the purpose of this subsection, a corporation formed as a result of the amalgamation or merger of 2 or more C. 4 Budget Implem predecessor corporations is deemed to be the same corporation as, and a continuation of, each predecessor corporation. (2) Subsection (1) applies to the 2006 and subsequent taxation years. 86. (1) The portion of subsection 227(5) of the Act before paragraph (a) is replaced by the following: Payments by trustees, etc. (5) Where a specified person in relation to a particular person (in this subsection referred to as the “payer”) has any direct or indirect influence over the disbursements, property, business or estate of the payer and the specified person, alone or together with another person, authorizes or otherwise causes a payment referred to in subsection 135(3), 135.1(7) or 153(1), or on or in respect of which tax is payable under Part XII.5 or XIII, to be made by or on behalf of the payer, the specified person (2) Paragraph 227(5)(a.1) of the Act is replaced by the following: (a.1) is, for the purposes of subsections 135.1(7) and 211.8(2), deemed to be a person who redeemed, acquired or cancelled a share and made the payment as a consequence of the redemption, acquisition or cancellation; (3) Subparagraph 227(5)(b)(i) of the Act is replaced by the following: (i) all amounts payable by the payer because of any of subsections 135(3), 135.1(7), 153(1) and 211.8(2) and section 215 in respect of the payment, and (4) The portion of subsection 227(8.3) of the Act before paragraph (a) is replaced by the following: Interest on amounts not deducted or withheld (8.3) A person who fails to deduct or withhold any amount as required by subsection 135(3), 135.1(7), 153(1) or 211.8(2) or section 215 shall pay to the Receiver General interest on the amount at the prescribed rate, computed (5) Paragraph 227(8.3)(b) of the Act is replaced by the following: Exécution du b (b) in the case of an amount required by subsection 135(3) or 135.1(7) or section 215 to be deducted or withheld, from the day on which the amount was required to be deducted or withheld to the day of payment of the amount to the Receiver General; and (6) Subsection 227(8.4) of the Act is replaced by the following: Liability to pay amount not deducted or withheld (8.4) A person who fails to deduct or withhold any amount as required under subsection 135(3) or 135.1(7) in respect of a payment made to another person or under subsection 153(1) in respect of an amount paid to another person who is non-resident or who is resident in Canada solely because of paragraph 250(1)(a) is liable to pay as tax under this Act on behalf of the other person the whole of the amount that should have been so deducted or withheld and is entitled to deduct or withhold from any amount paid or credited by the person to the other person or otherwise to recover from the other person any amount paid by the person as tax under this Part on behalf of the other person. (7) Subsections (1) to (6) apply after 2005. 87. (1) Subsection 227.1(1) of the Act is replaced by the following: Liability of directors for failure to deduct 227.1 (1) Where a corporation has failed to deduct or withhold an amount as required by subsection 135(3) or 135.1(7) or section 153 or 215, has failed to remit such an amount or has failed to pay an amount of tax for a taxation year as required under Part VII or VIII, the directors of the corporation at the time the corporation was required to deduct, withhold, remit or pay the amount are jointly and severally, or solidarily, liable, together with the corporation, to pay that amount and any interest or penalties relating to it. (2) Subsection (1) applies after 2005. 88. (1) Section 235 of the Act is replaced by the following: Penalty for failing to file corporate returns 235. Every large corporation (within the meaning assigned by subsection 225.1(8)) that fails to file a return for a taxation year as and when required by section 150 or 190.2 is liable, C. 4 Budget Implem in addition to any penalty otherwise provided, to a penalty for each such failure equal to the amount determined by the formula A×B where A is the total of (a) 0.0005% of the corporation’s taxable capital employed in Canada at the end of the taxation year, and (b) 0.25% of the tax that would be payable under Part VI by the corporation for the year if this Act were read without reference to subsection 190.1(3); and B is the number of complete months, not exceeding 40, from the day on or before which the return was required to be filed to the day on which the return is filed. (2) Subsection (1) applies to the 2006 and subsequent taxation years. PART 3 AMENDMENTS RELATING TO EXCISE TAX ON JEWELLERY, ETC. R.S., c. E-15 EXCISE TAX ACT 2005, c. 30, s. 25(1) 89. (1) Sections 5 to 5.2 of Schedule I to the Excise Tax Act are repealed. (2) Subsection (1) is deemed to have come into force on May 2, 2006. 2005, c. 30 BUDGET IMPLEMENTATION ACT, 2005 90. Section 26 of the Budget Implementation Act, 2005 is repealed. Exécution du b PART 4 AMENDMENTS RELATING TO ABORIGINAL TAX POWERS AND ABORIGINAL TAX TREATMENT 2003, c. 15, s. 67 FIRST NATIONS GOODS AND SERVICES TAX ACT 2005, c. 19, s. 10 91. The title of Part 2 of the First Nations Goods and Services Tax Act is replaced by the following: FIRST NATIONS SALES TAX — SPECIFIED PROVINCES 2005, c. 19, s. 10 92. (1) The definitions “parallel Quebec law” and “reserves in Quebec” in section 17 of the Act are repealed. (2) Section 17 of the Act is amended by adding the following in alphabetical order: “parallel provincial law” « loi provinciale parallèle » “specified province” « province visée » “parallel provincial law”, in respect of a band law, means the enactment of the specified province listed in Schedule 2 opposite the name of the council of the band that enacted the band law, or those provisions of an enactment of that province, to which the band law is similar. “specified province” means a province that is listed in Schedule 2. 2005, c. 19, s. 10 93. Sections 21 and 22 of the Act are replaced by the following: Application of other Acts 21. If a law of a specified province provides that one or more laws of the specified province apply as if the tax imposed under a band law were imposed under a particular law of the specified province, all Acts of Parliament, other than this Act, apply as if the tax imposed under the band law were imposed under that particular law of the specified province. ADMINISTRATION AGREEMENT Authority to enter into agreement 22. A council of the band may, on behalf of the band, enter into an administration agreement with the government of the specified province C. 4 Budget Implem listed opposite the name of that council in Schedule 2 in respect of a band law enacted by that council. 2005, c. 19, s. 10 94. (1) Subsections 23(1) and (2) of the Act are replaced by the following: Authority to impose a direct sales tax 23. (1) A council of the band that is listed in Schedule 2 may enact a law that imposes a direct sales tax, and any other amount that may be required to be paid in relation to the imposition of that direct sales tax, within its reserves that are situated in the specified province listed opposite the name of that council in that Schedule and that are listed in that Schedule opposite the name of the council. Parallel provincial law (2) A law may not be enacted under subsection (1) unless the law has only one parallel provincial law that is expressly identified in that law. 2005, c. 19, s. 10 (2) Paragraphs 23(3)(a) to (d) of the Act are replaced by the following: (a) an administration agreement in respect of the law is in effect; (b) that administration agreement is between the council of the band and the government of the specified province listed opposite the name of that council in Schedule 2; (c) the law is administered and enforced, and the direct sales tax imposed under that law is collected, in accordance with that administration agreement; (d) the name of the band, the name of the council of the band, the name, or description, of the reserves of the band within which the law applies and the name of the specified province in which the reserves are situated are listed opposite one another in Schedule 2; and (e) its parallel provincial law is in force. 2005, c. 19, s. 10 95. Section 24 of the Act is replaced by the following: Exécution du b Coming into force — law under section 23 24. Subject to subsection 23(3), a band law comes into force on the date specified in the administration agreement entered into under section 22 in respect of that law. 2005, c. 19, s. 10 96. Section 29 of the Act is replaced by the following: Amendment of Schedule 2 29. The Governor in Council may, by order, amend Schedule 2 by adding, deleting or varying the name of a band, the name of a council of the band, the name, or description, of a band’s reserves or the name of a specified province. 2005, c. 19, s. 12 97. Schedule 2 to the Act is replaced by the Schedule 2 set out in Schedule 1 to this Act. 1994, c. 35 YUKON FIRST NATIONS SELFGOVERNMENT ACT 98. (1) The Yukon First Nations Self-Government Act is amended by adding the following after section 22. Definitions 22.1 (1) The following definitions apply in this section. “band” « bande » “band” has the same meaning as in section 2 of the Indian Act. “Indian” « Indien » “Indian” has the same meaning as in section 2 of the Indian Act. “reserve” « réserve » “reserve” has the same meaning as in section 2 of the Indian Act. “transition period” « période de transition » Taxation exemption — former reserves “transition period”, in respect of a first nation, means the period beginning on the day of the year on which the first nation’s final agreement is brought into effect and ending on December 31 of that year. (2) During the transition period of a first nation, income of a band or an Indian, other than an Indian enrolled under a final agreement that came into effect before the calendar year that includes the transition period, is exempt from taxation under the Income Tax Act, if the situs of the income is on land of the first nation that was a reserve throughout the portion of that calendar year before the transition period. C. 4 Taxation exemption — Indians enrolled (3) During the transition period of a first nation, income of an Indian who is enrolled under the first nation’s final agreement and is resident in the Yukon is exempt from taxation under the Income Tax Act, if the situs of the income is on a reserve. Budget Implem (2) Subsection (1) is deemed to have come into force on January 1, 1999. PART 5 OTHER TAX-RELATED AMENDMENTS 2002, c. 9, s. 5 AIR TRAVELLERS SECURITY CHARGE ACT 99. (1) Subsection 21(2) of the Air Travellers Security Charge Act is replaced by the following: Small amounts payable (2) If, at any time, the total of all amounts payable by the Minister to a designated air carrier under this Act does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time, by the carrier to Her Majesty. However, if the carrier, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil. (2) Subsection (1) comes into force on April 1, 2007. 100. (1) Section 25 of the Act is renumbered as subsection 25(1) and is amended by adding the following: Effect of extension (2) If the Minister extends the time within which a person shall file a return or provide information under subsection (1), (a) the return shall be filed, or the information shall be provided, within the time so extended; (b) any amount payable that the person is required to report in the return shall be paid within the time so extended; Exécution du b (c) any interest payable under section 27 on the amount referred to in paragraph (b) shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and (d) any penalty payable under section 53 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires. (2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007. 101. (1) Subsection 27(1) of the Act is replaced by the following: Compound interest on amounts not paid when required 27. (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period that begins on the first day after the day on or before which the amount was required to be paid and that ends on the day the amount is paid. (2) Section 27 of the Act is amended by adding the following after subsection (2): Payment before specified date (3) If the Minister has served a demand that a person pay on or before a specified date all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified date, the Minister shall waive any interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day following the date of the demand and ending on the day of payment. (3) Subsection (1) comes into force on April 1, 2007. (4) For the purposes of applying subsection 27(1) of the Act, as enacted by subsection (1), any penalty accrued before April 1, 2007 that remains unpaid on April 1, 2007 is deemed to be an amount required to be paid to the Receiver General on March 31, 2007. C. 4 Budget Implem (5) Subsection (2) comes into force on April 1, 2007, except that, in respect of any demand served before April 1, 2007 for which a penalty under subsection 53(1) of the Act, as it read on March 31, 2007, is payable, subsection 27(3) of the Act, as enacted by subsection (2), shall be read as follows: (3) If the Minister has served a demand that a person pay on or before a specified date all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified date, the Minister shall waive any penalty and interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day following the date of the demand and ending on the day of payment. 102. (1) Section 30 of the Act is replaced by the following: Waiving or reducing interest 30. (1) The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or reduce any interest payable by the person under this Act on an amount that is required to be paid by the person under this Act in respect of the fiscal month. Interest where amounts waived or reduced (2) If a person has paid an amount of interest and the Minister has waived or reduced under subsection (1) any portion of the amount, the Minister shall pay interest at the prescribed rate on an amount equal to the portion of the amount that was waived or reduced beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the portion is refunded to the person. (2) Subsection (1) comes into force on April 1, 2007. 103. (1) The Act is amended by adding the following after section 30: Exécution du b ADMINISTRATIVE CHARGE UNDER THE FINANCIAL ADMINISTRATION ACT Dishonoured instruments 30.1 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid. (2) Subsection (1) applies in respect of any instrument that is dishonoured on or after April 1, 2007. 104. (1) Subsection 40(4) of the Act is replaced by the following: Restriction (4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Excise Act, 2001, the Excise Tax Act and the Income Tax Act. (2) Subsection (1) comes into force on April 1, 2007. 105. (1) Section 53 of the Act is replaced by the following: Failure to file a return when required 53. Every person who fails to file a return for a fiscal month as and when required under this Act shall pay a penalty equal to the sum of (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the fiscal month and was not paid on the day on which the return was required to be filed, and C. 4 Budget Implem (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. (2) Subsection (1) comes into force on April 1, 2007. (3) For the purposes of section 53 of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007. 106. (1) Section 54 of the Act is repealed. (2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007. 107. (1) Section 55 of the Act is replaced by the following: Waiving or cancelling penalties 55. (1) The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or cancel any penalty payable by the person under section 53 in respect of the fiscal month. Interest where amount waived or cancelled (2) If a person has paid an amount of penalty and the Minister waives or cancels that amount under subsection (1), the Minister shall pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is refunded to the person. (2) Subsection (1) comes into force on or after April 1, 2007. 108. (1) Section 56 of the Act is replaced by the following: Failure to answer demand 56. Every person who fails to file a return as and when required under a demand issued under section 26 is liable to a penalty of $250. Exécution du b (2) Subsection (1) applies in respect of any demand served under section 26 of the Act by the Minister of National Revenue on or after April 1, 2007. 109. (1) Subsection 61(2) of the Act is replaced by the following: Saving (2) A person who is convicted of an offence under subsection (1) for a failure to comply with a provision of this Act is not liable to pay a penalty imposed under section 53, 56 or 57 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made. (2) Subsection (1) applies in respect of any penalty imposed on or after April 1, 2007. 110. (1) Subsection 62(3) of the Act is replaced by the following: Penalty on conviction (3) A person who is convicted of an offence under subsection (1) is not liable to pay a penalty imposed under any of sections 53 and 56 to 58 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. (2) Subsection (1) applies in respect of any penalty imposed on or after April 1, 2007. 111. (1) Subsection 72(3) of the Act is replaced by the following: Assessment before collection (3) The Minister may not take any collection action under sections 74 to 79 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 27, unless the amount has been assessed. (2) Subsection (1) comes into force on April 1, 2007. 112. (1) Paragraphs 74(12)(a) and (b) of the Act are replaced by the following: C. 4 Budget Implem (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the prescribed rate under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period; and (c) to refer to the penalty calculated under section 53 to be charged on the separate amounts making up the amount payable in general terms as a penalty under that section on amounts payable to the Receiver General. (2) Subsection (1) applies in respect of any certificate made under subsection 74(1) of the Act in respect of amounts that became payable to the Receiver General on or after April 1, 2007. 2002, c. 22 EXCISE ACT, 2001 2003, c. 15, s. 58 113. (1) Subsection 165(2) of the Excise Act, 2001 is replaced by the following: Amounts payable of $2 or less in total (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil. (2) Subsection (1) comes into force on April 1, 2007. 114. (1) Subsection 168(2) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following: Exécution du b (c) any interest payable under section 170 on any amount payable in respect of the return shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and (d) any penalty payable under section 251.1 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires. (2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007. 2003, c. 15, s. 92(1) 115. (1) Subsection 170(4) of the Act is replaced by the following: Minimum interest and penalty (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty payable under section 251.1, owing at that time to Her Majesty under this Act for a fiscal month of the person and the total amount of interest and the penalty payable by the person under this Act for that month is not more than $25.00, the Minister may waive the total amount. (2) Subsection (1) applies in respect of any fiscal month of a person that ends on or after April 1, 2007. 116. (1) Section 173 of the Act is replaced by the following: Waiving or reducing interest 173. The Minister may, on or before the day that is ten calendar years after the day an amount was required to be paid by a person under this Act, waive or reduce any interest on the amount payable by the person under section 170. (2) Subsection (1) comes into force on April 1, 2007. 117. (1) The portion of subsection 188(3) of the French version of the Act before paragraph (a) is replaced by the following: Application de sommes non demandées (3) Le ministre, s’il constate les faits ci-après relativement à un remboursement lors de l’établissement d’une cotisation concernant les C. 4 Budget Implem droits, intérêts ou autres sommes exigibles d’une personne pour un mois d’exercice de celle-ci ou concernant une autre somme exigible d’une personne en vertu de la présente loi, applique tout ou partie du montant de remboursement en réduction des droits, intérêts ou autres sommes exigibles comme si la personne avait versé, à la date visée aux sous-alinéas a)(i) ou (ii), le montant ainsi appliqué au titre de ces droits, intérêts ou autres sommes : (2) The portion of subsection 188(3) of the English version of the Act after paragraph (c) is replaced by the following: the Minister shall apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount. (3) The portion of subsection 188(4) of the Act before paragraph (a) is replaced by the following: Application of overpayment (4) If, in assessing the duty payable by a person for a fiscal month of the person, the Minister determines that there is an overpayment of duty payable for the month, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall (4) The portion of subsection 188(5) of the Act before paragraph (a) is replaced by the following: Application of payment (5) If, in assessing the duty payable by a person for a fiscal month of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall (5) Subsection 188(6) of the Act is replaced by the following: 2006 Limitation on refunding overpayments Exécution du b (6) An overpayment of duty payable for a fiscal month of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with the Minister under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act. (6) Subparagraph 188(7)(b)(ii) of the Act is replaced by the following: (ii) the person has filed all returns and other records of which the Minister has knowledge and that the person was required to file with the Minister under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act before the day on which notice of the assessment is sent to the person. (7) Section 188 of the Act is amended by adding the following after subsection (9): Refund of interest or penalty (9.1) Despite subsection (9), if a person has paid an amount of interest or penalty and the Minister waives or reduces that amount under section 173 or 255.1, as the case may be, the Minister shall refund the amount of the waiver or reduction to the person, together with interest on the amount of the waiver or reduction at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid. (8) Subsections (1) to (7) come into force on April 1, 2007. 118. (1) Subsection 189(4) of the Act is replaced by the following: C. 4 Restriction (4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act. Budget Implem (2) Subsection (1) comes into force on April 1, 2007. 119. (1) Section 251 of the Act is replaced by the following: Failure to answer demand 251. Every person who does not file a return as and when required under a demand issued under section 169 is liable to a penalty equal to $250. Failure to file return 251.1 Every person who fails to file a return for a fiscal month as and when required under this Act shall pay a penalty equal to the sum of (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the fiscal month and was not paid before the end of the day on which the return was required to be filed, and (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. Dishonoured instruments 251.2 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is Exécution du b deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid. (2) Section 251 of the Act, as enacted by subsection (1), applies in respect of any demand under section 169 of the Act served by the Minister of National Revenue on or after April 1, 2007. (3) Section 251.1 of the Act, as enacted by subsection (1), applies (a) in respect of any return that is required to be filed under the Act on or after April 1, 2007; and (b) in respect of any return that is required to be filed under the Act before that day if it is not filed on or before March 31, 2007, in which case the day on or before which the return is required to be filed is deemed to be March 31, 2007 for the purposes of calculating any penalty under that section. (4) Section 251.2 of the Act, as enacted by subsection (1), applies in respect of any instrument that is dishonoured on or after April 1, 2007. 120. (1) Subsection 254(1) of the Act is replaced by the following: Notice of imposed penalty 254. (1) A penalty that a person is liable to pay under any of sections 233 to 253, other than section 251.1, may be imposed by the Minister by serving on the person a written notice of the imposed penalty or by sending the notice by registered or certified mail to the person’s last known address. (2) Subsection (1) comes into force on April 1, 2007. 121. (1) The Act is amended by adding the following after section 255: Waiving or reducing failure to file penalty 255.1 The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the fiscal month. C. 4 Budget Implem (2) Subsection (1) comes into force on April 1, 2007. 122. (1) Paragraph 286(1)(e) of the Act is repealed. (2) Subsection (1) comes into force on April 1, 2007. 123. (1) Paragraphs 288(12)(a) and (b) of the Act are replaced by the following: (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the prescribed rate under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period; and (c) to refer to the penalty calculated under section 251.1 to be charged on the separate amounts making up the amount payable in general terms as a penalty under that section on amounts payable to the Receiver General. (2) Subsection (1) applies in respect of any certificate made under subsection 288(1) of the Act in respect of amounts that became payable to the Receiver General on or after April 1, 2007. R.S., c. E-15 EXCISE TAX ACT 2003, c. 15, s. 94(1) 124. (1) Subsection 7(1) of the Excise Tax Act is replaced by the following: Definition 7. (1) In this section, “month” means a period beginning on a particular day in a calendar month and ending on (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or Exécution du b (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month. Failure to file a return when required (1.1) Every person who fails to file a return for a period as and when required under subsection 5(1) shall pay a penalty equal to the sum of (a) an amount equal to 1% of the amount of tax unpaid at the expiration of the time for filing the return, and (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. (2) Subsection (1) comes into force on April 1, 2007. (3) For the purposes of subsections 7(1) and (1.1) of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007. 125. (1) Section 68.5 of the Act is amended by adding the following after subsection (9): Failure to file a report when required (9.1) Every person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum of (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, and (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed. C. 4 Budget Implem (2) Subsection (1) comes into force on April 1, 2007. 126. (1) The Act is amended by adding the following after section 76: Restriction on refunds and credits 77. A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act. (2) Subsection (1) comes into force on April 1, 2007. 127. (1) Section 79 of the Act is amended by adding the following after subsection (3): Demand for return (4) The Minister may, by a demand served personally or by registered or certified mail, require a person to file within any reasonable time that may be stipulated in the demand a return under this Act for any period that may be designated in the demand. Failure to answer a demand (5) Every person who fails to file a return as and when required under a demand issued under subsection (4) is liable to a penalty of $250. (2) Subsection (1) comes into force on April 1, 2007. 2003, c. 15, s. 100(1) 128. (1) Section 79.01 of the Act is repealed. (2) Subsection (1) comes into force on April 1, 2007. 2003, c. 15, s. 100(1) 129. (1) Subsection 79.02(2) of the Act is replaced by the following: Amounts payable of $2 or less in total (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the Exécution du b person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil. (2) Subsection (1) comes into force on April 1, 2007. 2003, c. 15, s. 100(1) 130. (1) Subsection 79.03(4) of the Act is replaced by the following: Interest and penalty amounts of $25 or less (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty. (2) Subsection (1) applies in respect of any reporting period of a person that ends on or after April 1, 2007. R.S., c. 12 (4th Supp.), s. 33(1); 2002, c. 22, s. 384(4); 2003, c. 15, ss. 101(1) and (3) and 130(3), (4) and (6) 131. (1) Section 79.1 of the Act is repealed. (2) Subsection (1) applies to fiscal months that begin after March 31, 2007. 132. (1) The Act is amended by adding the following after section 81.39: ADMINISTRATIVE CHARGE UNDER THE FINANCIAL ADMINISTRATION ACT Dishonoured instruments 81.4 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest C. 4 Budget Implem and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid. (2) Subsection (1) applies in respect of any instrument that is dishonoured on or after April 1, 2007. R.S., c. 7 (2nd Supp.), s. 41(1) 133. (1) Subsection 86(4) of the Act is amended by adding the word “or” at the end of paragraph (b), by striking out the word “or” at the end of paragraph (c) and by repealing paragraph (d). R.S., c. 7 (2nd Supp.), s. 41(1) (2) Subsection 86(5) of the Act is replaced by the following: Delay where objection (5) If a person has served a notice of objection under section 81.15, otherwise than pursuant to section 81.33, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c) before ninety days after the day on which the notice of decision is sent to that person. R.S., c. 7 (2nd Supp.), s. 41(1); 2002, c. 8, par. 183(1)(j) (3) The portion of subsection 86(6) of the Act before paragraph (a) is replaced by the following: Delay where appeal (6) If a person has appealed to the Tribunal or the Federal Court under this Part, otherwise than pursuant to section 81.33, in respect of an assessment, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c), R.S., c. 7 (2nd Supp.), s. 41(1); 2002, c. 8, s. 140 (4) Subsections 86(7) and (8) of the Act are replaced by the following: Delay where reference (7) If a person is named in a reference under section 81.36, agrees to a reference under section 81.37 or appears as a party at the hearing of any such reference, the Minister shall Exécution du b not, for the purpose of collecting any sum for which that person has been assessed and of which the liability for payment will be affected by the determination of the question, take any of the actions described in paragraphs (4)(a) to (c) before the day on which the question is determined by the Court. Delay when agreement (8) Despite subsections (1) to (7), if a person has served a notice of objection under section 81.15 or has appealed to the Tribunal or the Federal Court under this Part, otherwise than under section 81.33, in respect of an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal until a decision or judgment is rendered in another action before the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of that person, the Minister may take any of the actions described in paragraphs (4)(a) to (c) for the purpose of collecting any sum for which that person has been assessed, determined in a manner consistent with the decision or judgment of the Tribunal or Court in the other action, at any time after the Minister notifies the person in writing that the decision or judgment has been rendered. (5) Subsections (1) to (4) come into force on April 1, 2007. R.S., c. 7 (2nd Supp.), s. 41(1) 133.1 (1) Subsection 87(1) of the Act is replaced by the following: Collection in jeopardy 87. (1) Despite section 86, if it may reasonably be considered that the collection of any sum for which a person has been assessed would be jeopardized by a delay under that section and the Minister has, by a notice served personally or by registered or certified mail, so advised that person and directed them to pay that sum or any part of it, the Minister may without delay take any of the actions described in paragraphs 86(4)(a) to (c) with respect to that sum or part. C. 4 Budget Implem (2) Subsection (1) comes into force on April 1, 2007. 2003, c. 15, s. 109(1) 134. (1) Subsection 88(1) of the Act is replaced by the following: Waiver or cancellation of interest or penalty 88. (1) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period. (2) Subsection (1) comes into force on April 1, 2007. 135. (1) The Act is amended by adding the following after section 95: Failure to file a return when required 95.1 Every person who fails to file a return for a fiscal month as and when required under subsection 79(1) shall pay a penalty equal to the sum of (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the fiscal month and was not paid on the day on which the return was required to be filed, and (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. (2) Subsection (1) comes into force on April 1, 2007. (3) For the purposes of section 95.1 of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007. Exécution du b 136. (1) The definition “financial service” in subsection 123(1) of the Act is amended by adding the following after paragraph (r.1): (r.2) a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on any security given for, the debt, but does not include a service that consists solely of accepting from a person (other than the particular person) a payment of all or part of an account unless (i) under the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on any security given for the account, or (ii) the principal business of the person rendering the service is the collection of debt, (2) Subsection (1) applies to a debt collection service rendered under an agreement for a supply if (a) any consideration for the supply becomes due after November 17, 2005, or is paid after that day without having become due; or (b) all of the consideration for the supply became due or was paid on or before that day unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or in respect of any other supply that includes a debt collection service and that is made under the agreement. 1997, c. 10, s. 44(1) 137. (1) Subparagraph 225(3)(b)(ii) of the Act is replaced by the following: C. 4 Budget Implem (ii) if the person does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the person for that preceding period expires, the person pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General. (2) Subsection (1) applies for the purpose of determining the net tax for a reporting period of a person if the person’s preceding reporting period referred to in subsection 225(3) of the Act ends on or after April 1, 2007. 1997, c. 10, s. 45(1) 138. (1) Subparagraph 225.1(4)(b)(ii) of the Act is replaced by the following: (ii) if the charity does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the charity for that preceding period expires, the charity pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General. (2) Subsection (1) applies for the purpose of determining the net tax for a reporting period of a charity if the charity’s preceding reporting period referred to in subsection 225.1(4) of the Act ends on or after April 1, 2007. 1997, c. 10, s. 211(1) 139. (1) Subsection 229(2) of the Act is replaced by the following: Restriction (2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister. Exécution du b 1990, c. 45, s. 12(1); 1993, c. 27, s. 203 (Sch. I, par. 1(c) (2) Subsection 229(3) of the Act is replaced by the following: Interest on refund (3) If a net tax refund for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the net tax refund for the period beginning on the day that is 30 days after the later of the day the return in which the refund is claimed is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid. 1990, c. 45, s. 12(1) (3) Subsection 229(4) of the Act is repealed. (4) Subsections (1) and (3) come into force on April 1, 2007. (5) Subsection (2) applies to any net tax refund for a reporting period of a person that ends on or after April 1, 2007. 1990, c. 45, s. 12(1); 1997, c. 10, s. 48(2) 140. (1) Subsection 230(2) of the Act is replaced by the following: Restriction (2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister. 1997, c. 10, s. 48(3) (2) Subsection 230(3) of the Act is replaced by the following: Interest on refund (3) If a refund of an amount that was paid on account of net tax for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the refund for the period beginning on the day that is 30 days after the later of the day the return for the reporting C. 4 Budget Implem period is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid. 1990, c. 45, s. 12(1) (3) Subsection 230(4) of the Act is repealed. (4) Subsections (1) and (3) come into force on April 1, 2007. (5) Subsection (2) applies to any refund in respect of a reporting period of a person that ends on or after April 1, 2007. 2000, c. 30, s. 65(1) 141. (1) Section 236.1 of the Act is replaced by the following: Adjustment if property not exported or supplied 236.1 If a registrant has received a zero-rated supply of a continuous transmission commodity included in section 15.2 of Part V of Schedule VI and the commodity is neither exported, as described in paragraph (a) of that section, nor supplied, as described in paragraph (b) of that section, by the registrant, the registrant shall, in determining the net tax of the registrant for the reporting period that includes the earliest day on which tax, calculated at the rate set out in subsection 165(1), would, in the absence of that section, have become payable in respect of the supply, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would have been payable in respect of the supply if it were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. (2) Subsection (1) applies in respect of any supply of a continuous transmission commodity made to a registrant in respect of which tax would have, in the absence of section 15.2 of Part V of Schedule VI to the Act, first become payable on a particular day that is in a reporting period of the registrant for which the return under section 238 of the Act is required to be filed on or before a day that is after March 31, 2007, except that if the particular day is before April 1, 2007, and the day on or before which the return for the reporting period that includes the particular Exécution du b day is required to be filed is on or after April 1, 2007, section 236.1 of the Act, as enacted by subsection (1), shall be read as follows: 236.1 If a registrant has received a zero-rated supply of a continuous transmission commodity included in section 15.2 of Part V of Schedule VI and the commodity is neither exported, as described in paragraph (a) of that section, nor supplied, as described in paragraph (b) of that section, by the registrant, the registrant shall, in determining the net tax of the registrant for the reporting period that includes the earliest day on which tax would, in the absence of that section, have become payable in respect of the supply, add an amount equal to the total of (a) interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax that would have been payable in respect of the supply if it were not a zerorated supply, computed for the period beginning on that earliest day and ending on March 31, 2007, and (b) interest, at the prescribed rate, on the total amount of tax that would have been payable in respect of the supply if it were not a zerorated supply plus the interest referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. 2001, c. 15, s. 11(1) 142. (1) Subsection 236.2(1) of the Act is replaced by the following: Adjustment if invalid use of export certificate 236.2 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.1 of Part V of that Schedule) from a supplier to whom the registrant has provided an export certificate (within the meaning of section 221.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the registrant does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part, the registrant shall, in determining the net tax for C. 4 Budget Implem the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zerorated supply, add an amount equal to interest at the prescribed rate on the total amount of tax in respect of the supply that was payable or would have been payable if the supply were not a zerorated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. 2001, c. 15, s. 11(1) (2) The description of B in subsection 236.2(2) of the Act is replaced by the following: B is the prescribed rate of interest that is in effect on the last day of that first reporting period following the year. (3) Subsection (1) applies in respect of a supply of property made to a registrant in respect of which tax first became payable, or would have first become payable if the supply were not a zero-rated supply, on a particular day that is in a reporting period of the registrant for which the return under section 238 of the Act is required to be filed on or before a day that is after March 31, 2007, except that if the particular day is before April 1, 2007, and the day on or before which the return for the reporting period that includes the particular day is required to be filed is on or after April 1, 2007, subsection 236.2(1) of the Act, as enacted by subsection (1), shall be read as follows: 236.2 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.1 of Part V of that Schedule) from a supplier to whom the registrant has provided an export certificate (within the meaning of section 221.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the registrant does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part, the Exécution du b registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable, or would have become payable if the supply were not a zerorated supply, add an amount equal to the total of (a) interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax that was payable or would have been payable if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on March 31, 2007, and (b) interest, at the prescribed rate, on the total amount of tax that was payable or would have been payable if the supply were not a zerorated supply, plus the interest referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. (4) Subsection (2) applies in respect of any reporting period of a registrant following a fiscal year of the registrant that ends on or after April 1, 2007, except that if the fiscal year of the registrant includes April 1, 2007, subsection 236.2(2) of the Act, as amended by subsection (2), shall be read as follows: (2) If a registrant’s authorization to use an export certificate (within the meaning of section 221.1) is deemed to have been revoked under subsection 221.1(6) effective immediately after the last day of a fiscal year of the registrant, the registrant shall, in determining the net tax for the first reporting period of the registrant following that year, add the total of all amounts each of which is determined by the formula A × B/12 where A is (a) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration that was paid C. 4 Budget Implem or became payable before April 1, 2007, by the registrant for a supply made in a non-participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, (b) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, (c) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration not included in paragraph (a) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a nonparticipating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and (d) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration not included in paragraph (b) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a participating province of an item of inventory acquired by the Exécution du b registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period; and B is (a) in the case where paragraph (a) or (b) of the description of A applies, the total of 4% and the rate of interest prescribed for the purposes of paragraph 280(1)(b) (expressed as a percentage per year) that is in effect on March 31, 2007, and (b) in any other case, the prescribed rate of interest that is in effect on the last day of that first reporting period following the year. 2001, c. 15, s. 11(1) 143. (1) Subsection 236.3(1) of the Act is replaced by the following: Adjustment if invalid use of export distribution centre certificate 236.3 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.2 of Part V of that Schedule) from a supplier to whom the registrant has provided an export distribution centre certificate (within the meaning of section 273.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the property was not acquired by the registrant for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)) in the course of commercial activities of the registrant, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest, at the prescribed rate, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if the supply were not a zero-rated supply, computed for the period C. 4 Budget Implem beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. 2001, c. 15, s. 11(1) (2) The description of B in subsection 236.3(2) of the Act is replaced by the following: B is the prescribed rate of interest that is in effect on the last day of that first reporting period following the year. (3) Subsection (1) applies in respect of a supply of property made to a registrant in respect of which tax first became payable, or would have first become payable if the supply were not a zero-rated supply, on a particular day that is in a reporting period of the registrant for which the return under section 238 of the Act is required to be filed on or before a day that is after March 31, 2007, except that if the particular day is before April 1, 2007, and the day on or before which the return for the reporting period that includes the particular day is required to be filed is on or after April 1, 2007, subsection 236.3(1) of the Act, as enacted by subsection (1), shall be read as follows: 236.3 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.2 of Part V of that Schedule) from a supplier to whom the registrant has provided an export distribution centre certificate (within the meaning of section 273.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the property was not acquired by the registrant for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)) in the course of commercial activities of the registrant, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or Exécution du b would have become payable if the supply were not a zero-rated supply, add an amount equal to the total of (a) interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if it were not a zerorated supply, computed for the period beginning on that earliest day and ending on March 31, 2007, and (b) interest, at the prescribed rate, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if it were not a zerorated supply plus the interest referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. (4) Subsection (2) applies in respect of any reporting period of a registrant following a fiscal year of the registrant that ends on or after April 1, 2007, except that if the fiscal year of the registrant includes April 1, 2007, subsection 236.3(2) of the Act, as amended by subsection (2), shall be read as follows: (2) If an authorization granted to a registrant under subsection 273.1(7) is in effect at any time in a fiscal year of the registrant and the export revenue percentage of the registrant (as defined in subsection 273.1(1)) for that year is less than 90% or the circumstances described in paragraph 273.1(11)(a) or (b) exist with respect to the year, the registrant shall, in determining the net tax for the first reporting period of the registrant following the year, add the total of all amounts each of which is determined by the formula A × B/12 where A is C. 4 Budget Implem (a) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a non-participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, (b) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zerorated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, (c) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount which is the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value, for the purposes of Division III, of a good that was imported before April 1, 2007, by the registrant in the year and in respect of which, by reason only of section 11 of Schedule VII, tax under that Division did not apply, (d) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration not included in paragraph (a) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a nonparticipating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Exécution du b Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, (e) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration not included in paragraph (b) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and (f) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount which is the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value, for the purposes of Division III, of a good that was imported on or after April 1, 2007, by the registrant in the year and in respect of which, by reason only of section 11 of Schedule VII, tax under that Division did not apply; and B is (a) in the case where paragraph (a), (b) or (c) of the description of A applies, the total of 4% and the rate of interest prescribed for the purposes of paragraph 280(1)(b) (expressed as a percentage per year) that is in effect on March 31, 2007, and (b) in any other case, the prescribed rate of interest that is in effect on the last day of that first reporting period following the year. C. 4 2001, c. 15, s. 16(1) 144. (1) Subsection 256.2(10) of the Act is replaced by the following: Repayment of rebate (10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate plus interest at the prescribed rate less 2% per year, calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General. Budget Implem (2) Subsection (1) applies in respect of any rebate that a person was entitled to claim if the amount of the rebate is paid by the person to the Receiver General on or after April 1, 2007, except that if the rebate was paid to the person before that day, subsection 256.2(10) of the Act, as enacted by subsection (1), shall be read as follows: (10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the Exécution du b purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate, plus the total of (a) interest at the rate prescribed for the purposes of paragraph 280(1)(b), calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on March 31, 2007, and (b) interest at the prescribed rate less 2% per year, calculated on the total of that amount plus the interest referred to in paragraph (a) for the period beginning on April 1, 2007, and ending on the day the amount of the rebate is paid by the person to the Receiver General. 145. (1) The Act is amended by adding the following after section 263.01: Restriction on rebate 263.02 A rebate under this Part shall not be paid to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on April 1, 2007. 1990, c. 45, s. 12(1); 2000, c. 30, s. 83(1)(F) 146. (1) Subsection 280(1) of the Act is replaced by the following: Interest 280. (1) Subject to this section and section 281, if a person fails to remit or pay an amount to the Receiver General when required under this Part, the person shall pay interest at the prescribed rate on the amount, computed for the period beginning on the first day following the day on or before which the amount was required to be remitted or paid and ending on the day the amount is remitted or paid. C. 4 1997, c. 10, s. 235(1); 2000, c. 30, s. 83(2)(F) (2) Subsection 280(1.1) of the Act is replaced by the following: Interest on net tax of selected listed financial institutions (1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay, on the amount not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of Budget Implem (a) the day the total of the amount and interest is paid, and (b) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period. 1990, c. 45, s. 12(1); 2000, c. 30, s. 83(3)(F) (3) Subsection 280(2) of the Act is replaced by the following: Interest on instalments (2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay, on the amount of the instalment not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of (a) the day the total of the amount and interest is paid, and (b) the day on or before which the tax on account of which the instalment was payable is required to be remitted. 1990, c. 45, s. 12(1) (4) Subsection 280(3) of the Act is replaced by the following: Interest on instalments (3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which Exécution du b the instalment was payable is required to be remitted shall not exceed the amount, if any, by which (a) the amount of interest that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period exceeds (b) the total of all amounts each of which is an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted. 1993, c. 27, s. 126(1) (5) Subsection 280(4) of the Act is replaced by the following: Unpaid interest on instalments (4) If a person is required to pay interest under subsection (2) in respect of an instalment required under subsection 237(1) to be paid within the time specified in that subsection and the interest has not been paid on or before the day on or before which the tax on account of which the instalment was payable is required to be remitted, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the person on or before that day that has not been remitted on or before that day. 1997, c. 10, s. 235(2) (6) Subsection 280(4.01) of the Act is replaced by the following: Unpaid interest on net tax of selected listed financial institutions (4.01) If a selected listed financial institution is required to pay interest under subsection (1.1) in respect of an amount required under subsection 228(2.1) to be paid within the time specified in that paragraph and the interest has not been paid on or before the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the financial institution on or before that day that has not been remitted on or before that day. C. 4 1993, c. 27, s. 126(1) (7) Subsection 280(4.1) of the Act is replaced by the following: Payment of interest (4.1) If interest is compounded on a particular day on an amount that a person has failed to pay or remit when required under this Part, the interest so compounded is deemed, for the purposes of this section, to be required to be paid by the person to the Receiver General at the end of the particular day and, if the person has not paid the interest so computed by the end of the next following day, the interest shall be added to the amount at the end of the particular day. 1990, c. 45, s. 12(1) (8) Subsection 280(5) of the Act is repealed. 1990, c. 45, s. 12(1) (9) Subsection 280(6) of the Act is repealed. 1990, c. 45, s. 12(1) (10) Subsection 280(7) of the Act is replaced by the following: Payment before specified date (7) If the Minister has served a demand that a person pay or remit on or before a specified date all tax, net tax, instalments, amounts under section 264, penalties and interest payable by the person under this Part on the date of the demand, and the person pays the total on or before the specified date, the Minister may waive interest for the period beginning on the first day following the date of the demand and ending on the day of payment. Budget Implem (11) Subsections (1) and (7) come into force on April 1, 2007. (12) Subsection (2) applies in respect of any reporting period of a selected listed financial institution that ends on or after April 1, 2007, and for the purposes of calculating any penalty and interest in respect of an amount that the selected listed financial institution is required to pay under subsection 228(2.1) of the Act before that day and fails to pay before that day, subsection 280(1.1) of the Act, as enacted by subsection (2), shall be read as follows: Exécution du b (1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay (a) a penalty of 6% per year and interest at the prescribed rate on the amount not paid, computed for the period beginning on the first day following that time and ending on March 31, 2007; and (b) interest at the prescribed rate on the total of the amount that remains unpaid on March 31, 2007, plus the interest and penalty referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the earlier of (i) the day the total of the amount, penalty and interest is paid, and (ii) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period. (13) Subsection (3) applies in respect of any instalment payable by a person on or after April 1, 2007, and for the purposes of calculating any penalty and interest in respect of an instalment that the person is required to pay under subsection 237(1) of the Act before that day and fails to pay before that day, subsection 280(2) of the Act, as enacted by subsection (3), shall be read as follows: (2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay (a) a penalty of 6% per year and interest at the prescribed rate on the amount of the instalment not paid, computed for the period beginning on the first day following that time and ending on March 31, 2007; and (b) interest at the prescribed rate on the total of the amount of the instalment that remains unpaid on March 31, 2007, plus the interest C. 4 Budget Implem and penalty referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the earlier of (i) the day the total of the amount, penalty and interest is paid, and (ii) the day on or before which the tax on account of which the instalment was payable is required to be remitted. (14) Subsection (4) applies in respect of any reporting period of a person that begins on or after April 1, 2007. However, if the person is required to pay an instalment under subsection 237(1) of the Act before April 1, 2007, fails to pay the instalment before the time provided under section 237 of the Act and is required to remit the tax on account of which the instalment was payable on or before a day that is on or after that day, for the purposes of calculating any penalty or interest in respect of the instalment, subsection 280(3) of the Act, as enacted by subsection (4), shall be read as follows: (3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted shall not exceed the amount, if any, by which (a) the total of the interest and penalties that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period exceeds (b) the total of all amounts each of which is (i) an amount of interest at the prescribed rate plus 6% per year, calculated on a particular instalment of tax paid before Exécution du b April 1, 2007, for the period beginning on the day of that payment and ending on March 31, 2007, (ii) an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on that particular instalment of tax for the period beginning on April 1, 2007, and ending on the day on or before which the tax on account of which the particular instalment was payable is required to be remitted, and (iii) an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid after March 31, 2007, for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted. (15) Subsection (5) applies in respect of any instalment that a person first fails to pay on or after April 1, 2007. (16) Subsection (6) applies in respect of any amount that a selected listed financial institution is required to pay under subsection 228(2.1) of the Act and first fails to pay on or after April 1, 2007. (17) Subsection (8) applies in respect of any amount that a person fails to remit or pay on or after April 1, 2007. (18) Subsection (9) applies in respect of any reporting period of a person that ends on or after April 1, 2007. (19) Subsection (10) applies in respect of any demand served on or after April 1, 2007, by the Minister of National Revenue. 147. (1) The Act is amended by adding the following after section 280: C. 4 Failure to file a return 280.1 Every person who fails to file a return for a reporting period as and when required under this Part is liable to pay a penalty equal to the sum of Budget Implem (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be remitted or paid for the reporting period and was not remitted or paid, as the case may be, on or before the day on or before which the return was required to be filed, and (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on or before which the return was required to be filed to the day on which the return is filed. Minimum interest and penalty 280.2 If at any time a person pays or remits all tax, net tax, instalments and amounts under section 264 payable by the person under this Part for a reporting period of the person and, immediately before that time, the total, for the reporting period, of all interest payable by the person under section 280 and penalties payable under section 280.1 is not more than $25, the Minister may cancel the total of the penalties and interest. Dishonoured instruments 280.3 For the purposes of this Part and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under that Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Part is deemed to be an amount that becomes payable by the person at that time under this Part. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of that Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Part is paid. Exécution du b (2) Section 280.1 of the Act, as enacted by subsection (1), applies (a) in respect of any return that is required to be filed under Part IX of the Act on or after April 1, 2007; and (b) in respect of any return that is required to be filed under Part IX of the Act before that day if it is not filed on or before March 31, 2007, in which case the day on or before which the return is required to be filed is deemed to be March 31, 2007, for the purposes of calculating any penalty under that section. (3) Section 280.2 of the Act, as enacted by subsection (1), applies in respect of any reporting period of a person that ends on or after April 1, 2007. (4) Section 280.3 of the Act, as enacted by subsection (1), applies in respect of any instrument that is dishonoured on or after April 1, 2007. 1990, c. 45, s. 12(1) 148. (1) Paragraphs 281(2)(c) and (d) of the Act are replaced by the following: (c) any interest payable under section 280 on any tax or net tax payable that the person is required to report in the return shall be calculated as though the tax or net tax were required to be paid on or before the day on which the extended time expires; and (d) any penalty payable under section 280.1 in respect of the return shall be calculated as though the return were required to be filed on or before the day on which the extended time expires. (2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007. 1993, c. 27, s. 127(1) 149. (1) Section 281.1 of the Act is replaced by the following: Waiving or cancelling interest 281.1 (1) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel interest payable by the person under section 280 C. 4 Budget Implem on an amount that is required to be remitted or paid by the person under this Part in respect of the reporting period. Waiving or cancelling penalties (2) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel all or any portion of any (a) penalty that became payable by the person under section 280 before April 1, 2007, in respect of the reporting period; and (b) penalty payable by the person under section 280.1 in respect of a return for the reporting period. (2) Subsection (1) comes into force on April 1, 2007. 1990, c. 45, s. 12(1) 150. (1) Section 283 of the Act is replaced by the following: Failure to answer demand 283. Every person who fails to file a return when required pursuant to a demand issued under section 282 is liable to a penalty equal to $250. (2) Subsection (1) applies in respect of any demand under section 282 of the Act served by the Minister of National Revenue on or after April 1, 2007. 1997, c. 10, s. 78(2) 151. (1) The portion of subsection 296(2) of the French version of the Act before paragraph (a) is replaced by the following: Application d’un crédit non demandé (2) Le ministre, s’il constate les faits ci-après relativement à un montant (appelé « crédit déductible » au présent paragraphe) lors de l’établissement d’une cotisation concernant la taxe nette d’une personne pour une période de déclaration donnée de celle-ci, prend en compte le crédit déductible dans l’établissement de la taxe nette pour cette période comme si la personne avait demandé le crédit déductible dans une déclaration produite pour cette période : 1997, c. 10, s. 78(2) (2) The portion of subsection 296(2) of the English version of the Act after paragraph (c) is replaced by the following: Exécution du b the Minister shall take the allowable credit into account in assessing the net tax for the particular reporting period as if the person had claimed the allowable credit in a return filed for the period. 1997, c. 10, s. 78(2) (3) The portion of subsection 296(2.1) of the French version of the Act before paragraph (a) is replaced by the following: Application d’un montant de remboursement non demandé (2.1) Le ministre, s’il constate les faits ci-après relativement à un montant (appelé « montant de remboursement déductible » au présent paragraphe) lors de l’établissement d’une cotisation concernant la taxe nette d’une personne pour une période de déclaration de celle-ci ou concernant un montant (appelé « montant impayé » au présent paragraphe) qui est devenu payable par une personne en vertu de la présente partie, applique tout ou partie du montant de remboursement déductible en réduction de la taxe nette ou du montant impayé comme si la personne avait payé ou versé, à la date visée aux sous-alinéas a)(i) ou (ii), le montant ainsi appliqué au titre de la taxe nette ou du montant impayé : 1997, c. 10, s. 78(2) (4) The portion of subsection 296(2.1) of the English version of the Act after paragraph (c) is replaced by the following: the Minister shall apply all or part of the allowable rebate against that net tax or overdue amount as if the person had, on the particular day, paid or remitted the amount so applied on account of that net tax or overdue amount. 1997, c. 10, s. 78(2) (5) The portion of subsection 296(3) of the Act before paragraph (a) is replaced by the following: Application or payment of credit (3) If, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that there is an overpayment of net tax for the particular period, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall 1997, c. 10, s. 78(2) (6) The po rtion of sub parag raph 296(3)(b)(i) of the Act before clause (A) is replaced by the following: C. 4 Budget Implem (i) all or part of the overpayment that was not applied under paragraph (a) together with interest at the prescribed rate on all or that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of 1997, c. 10, s. 78(2) (7) The portion of paragraph 296(3)(c) of the Act before subparagraph (i) is replaced by the following: (c) refund to the person that part of the overpayment that was not applied under paragraphs (a) and (b) together with interest at the prescribed rate on that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of 1997, c. 10, s. 78(2) (8) The portion of subsection 296(3.1) of the Act before paragraph (a) is replaced by the following: Application or payment of rebate (3.1) If, in assessing the net tax of a person for a particular reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, all or part of an allowable rebate referred to in subsection (2.1) is not applied under that subsection against that net tax or overdue amount, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall 1997, c. 10, s. 78(2) (9) The po rtion of sub parag raph 296(3.1)(b)(i) of the Act before clause (A) is replaced by the following: (i) all or part of the allowable rebate that was not applied under subsection (2.1) or paragraph (a) together with interest at the prescribed rate on all or that part of the Exécution du b allowable rebate, computed for the period beginning on the day that is 30 days after the later of 1997, c. 10, s. 78(2) (10) The portion of paragraph 296(3.1)(c) of the Act before subparagraph (i) is replaced by the following: (c) refund to the person that part of the allowable rebate that was not applied under any of subsection (2.1) and paragraphs (a) and (b) together with interest at the prescribed rate on that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of 1997, c. 10, s. 78(2) (11) Paragraph 296(4)(b) of the Act is replaced by the following: (b) shall not be refunded under paragraph (3)(c) unless the input tax credit or deduction would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day notice of the assessment is sent to the person. 1997, c. 10, s. 78(2) (12) Paragraph 296(4.1)(b) of the Act is replaced by the following: (b) shall not be refunded under paragraph (3.1)(c) unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day notice of the assessment is sent to the person, and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount. 1990, c. 45, s. 12(1) (13) Subsection 296(7) of the Act is replaced by the following: C. 4 Interest on cancelled amounts (6.1) Despite subsection (6), if a person has paid an amount of interest or penalty and the Minister cancels that amount under section 281.1, the Minister shall refund the amount to the person, together with interest on the amount at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid. Restriction on refunds (7) An amount under this section shall not be refunded to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister. Budget Implem (14) Subsections (1) to (5), (8) and (11) to (13) come into force on April 1, 2007. (15) Subsections (6), (7), (9) and (10) apply to any reporting period of a person that ends on or after April 1, 2007. 1990, c. 45, s. 12(1); 1993, c. 27, s. 130(4) 152. (1) Subsection 297(4) of the Act is replaced by the following: Interest on rebate (4) If a rebate under section 215.1 or Division VI (other than section 253) is paid to a person under subsection (3), the Minister shall pay interest at the prescribed rate to the person on the rebate for the period beginning on the day that is 30 days after the day the application in which the rebate is claimed is filed with the Minister and ending on the day the rebate is paid. 1990, c. 45, s. 12(1) (2) Subsection 297(5) of the Act is repealed. (3) Subsection (1) applies (a) to any rebate under section 259, 259.1 or 261.01 of the Act if the claim period for the rebate ends on or after April 1, 2007; and Exécution du b (b) to any other rebate if the application in which the rebate is claimed is filed with the Minister of National Revenue on or after April 1, 2007. (4) Subsection (2) applies in respect of interest payable by the Minister of National Revenue under subsection 297(4) of the Act on or after April 1, 2007. 153. (1) The Act is amended by adding the following after section 297: Minimum amounts owed to Her Majesty 297.1 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Part does not exceed two dollars, those amounts are deemed to be nil. Minimum amounts payable by Minister (2) If, at any time, the total of all amounts payable by the Minister to a person under this Part does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil. (2) Subsection (1) comes into force on April 1, 2007. 2000, c. 19, s. 71 154. (1) Paragraph 298(1)(e) of the Act is replaced by the following: (e) in the case of any penalty payable by the person, other than a penalty under section 280.1, 285 or 285.1, more than four years after the person became liable to pay the penalty; (2) Subsection (1) applies in respect of any penalty that becomes payable on or after April 1, 2007. 1990, c. 45, s. 12(1) 155. (1) Subsection 313(3) of the Act is replaced by the following: Interest on judgments (3) If a judgment is obtained for any tax, net tax, penalty, interest or other amount payable or remittable under this Part, including a certificate registered under section 316, the provisions of this Part by which interest is payable for failure C. 4 Budget Implem to pay or remit the amount apply, with such modifications as the circumstances require, to failure to pay the judgment debt, and the interest is recoverable in like manner as the judgment debt. (2) Subsection (1) applies in respect of any judgment obtained for amounts that became payable or remittable to the Receiver General on or after April 1, 2007. 1990, c. 45, s. 12(1) 156. (1) Subsection 315(1) of the Act is replaced by the following: Assessment before collection 315. (1) The Minister may not take any collection action under sections 316 to 321 in respect of any amount payable or remittable by a person that may be assessed under this Part, other than interest, unless the amount has been assessed. (2) Subsection (1) comes into force on April 1, 2007. 2000, c. 30, s. 94(3) 157. (1) Subparagraphs 316(11)(b)(i) and (ii) of the Act are replaced by the following: (i) in the case of interest, interest at the prescribed rate under this Part applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any particular period of time, or (ii) in the case of a penalty, a penalty under section 280.1 on amounts payable to the Receiver General. (2) Subsection (1) applies in respect of any certificate made under subsection 316(1) of the Act in respect of amounts that became payable or remittable to the Receiver General on or after April 1, 2007. 2000, c. 14, s. 36 158. (1) Paragraph 322.1(3)(f) of the Act is replaced by the following: Exécution du b (f) sections 280, 280.1 and 284 apply as if the net tax for the assessed period were not required to be remitted, and the return for that period were not required to be filed, until the last day of the period described in subsection (9). (2) Subsection (1) comes into force on April 1, 2007. 1990, c. 45, s. 12(1) 159. (1) Subsection 326(3) of the Act is replaced by the following: Saving (3) A person who is convicted under this section of failing to comply with a provision of this Part or a regulation made under this Part is not liable to pay a penalty imposed under section 280.1, 283 or 284 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made. (2) Subsection (1) comes into force on April 1, 2007. 2000, c. 19, s. 72 160. (1) Subsection 327(3) of the Act is replaced by the following: Penalty on conviction (3) A person who is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1 and 283 to 285.1 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. (2) Subsection (1) comes into force on April 1, 2007. R.S., c. 1 (5th Supp.) INCOME TAX ACT 161. (1) Paragraph 18(1)(t) of the Income Tax Act is replaced by the following: Payments under different acts (t) any amount paid or payable (i) under this Act (other than tax paid or payable under Part XII.2 or Part XII.6), (ii) as interest under Part IX of the Excise Tax Act, or C. 4 Budget Implem (iii) as interest under the Air Travellers Security Charge Act; (2) Subsection (1) applies to taxation years that begin on or after April 1, 2007. 162. (1) Subsection 161.4(2) of the Act is replaced by the following: Minister (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil. (2) Subsection (1) applies to amounts owing on or after April 1, 2007. 163. (1) Section 164 of the Act is amended by adding the following after subsection (2): Withholding of refunds (2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on April 1, 2007. 164. (1) Subsection 220(3) of the Act is replaced by the following: Extensions for returns (3) The Minister may at any time extend the time for making a return under this Act. (2) Section 220 of the Act is amended by adding the following after subsection (3.7): 2006 Dishonoured instruments Exécution du b (3.8) For the purposes of this Act and section 155.1 of the Financial Administration Act (a) any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Act is deemed to be an amount that becomes payable or remittable by the person at that time under this Act; (b) sections 152, 158 and 159, subsections 161(1), (2) and (11), sections 162 to 167 and Division J of this Part are applicable to the amount deemed to become payable or remittable by this subsection with any modifications that the circumstances require; (c) Part II of the Interest and Administrative Charges Regulations does not apply to the charge; and (d) any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid. (3) Subsection (1) applies in respect of extensions granted on or after April 1, 2007. (4) Subsection (2) applies in respect of any instrument that is dishonoured on or after April 1, 2007. 165. (1) Section 221.2 of the Act is renumbered as subsection 221.2(1) and is amended by adding the following: Re-appropriation of amounts (2) Where a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under this Act, the Excise Tax Act, the Air Travellers Security Charge Act or the Excise Act, 2001, the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts, C. 4 Budget Implem (a) the later appropriation is deemed to have been made at the time of the earlier appropriation; (b) the earlier appropriation is deemed not to have been made to the extent of the later appropriation; and (c) the particular amount is deemed not to have been paid on account of the debt to the extent of the later appropriation. (2) Subsection (1) applies in respect of reappropriation applications made on or after April 1, 2007. 166. (1) Paragraph 225.1(1)(e) of the Act is repealed. (2) Subsection (1) comes into force on April 1, 2007. CONDITIONAL AMENDMENT Conditional amendment 167. If this Act receives royal assent after April 1, 2007, (a) every reference in this Part to “April 1, 2007” is replaced by the day of that assent; and (b) every reference in this Part to “March 31, 2007” is replaced by the day before the day of that assent. PART 6 UNIVERSAL CHILD CARE BENEFIT ENACTMENT OF ACT Enactment of Act 168. The Universal Child Care Benefit Act is enacted as follows: An Act to assist families by supporting their child care choices through direct financial support and to make consequential and related amendments to certain Acts SHORT TITLE Short title 1. This Act may be cited as the Universal Child Care Benefit Act. Exécution du b INTERPRETATION Definitions “eligible individual” « particulier admissible » “Minister” « ministre » “qualified dependant” « personne à charge admissible » 2. The following definitions apply in this Act. “eligible individual” means a person who is an eligible individual for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act. “Minister” means the Minister of Human Resources and Skills Development. “qualified dependant” means a person who has not attained the age of six years and who is a qualified dependant for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act. PURPOSE Purpose 3. The purpose of this Act is to assist families by supporting their child care choices through direct financial support to a maximum of $1,200 per year in respect of each of their children who has not attained the age of six years. BENEFIT Amount of payment 4. (1) The Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, a benefit of $100 for each child who is a qualified dependant of the individual at the beginning of that month. Limitation (2) The benefit may not be paid in respect of any month before July, 2006. Benefit cannot be charged, etc. 5. A benefit (a) is not subject to the operation of any law relating to bankruptcy or insolvency; (b) cannot be assigned, charged, attached or given as security; (c) cannot be retained by way of deduction, set-off or, in Quebec, compensation, under any Act of Parliament other than this Act; and (d) is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act. C. 4 Return of overpayment or erroneous payment 6. (1) A person who has received or obtained a benefit to which the person is not entitled, or a benefit in excess of the amount of the benefit to which the person is entitled, shall, as soon as possible, repay the amount of the benefit or the excess amount, as the case may be. Recovery as a debt due to Her Majesty (2) The amount of the overpayment or erroneous payment constitutes a debt due to Her Majesty, as of the day on which it was paid, that may be recovered by the Minister of National Revenue. Limitation period 7. (1) Subject to this section, no action or proceedings shall be taken to recover money owing under this Act after the expiry of the sixyear limitation period that begins on the day on which the money becomes due and payable. Deduction and set-off (2) Money owing by a person under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money, including a benefit under this Act, that may be due or payable by Her Majesty in right of Canada to the person, other than an amount payable under section 122.61 of the Income Tax Act. Acknowledgment of liability (3) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period. Acknowledgment after expiry of limitation period (4) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5) after the expiry of the limitation period, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment. Types of acknowledgments Budget Implem (5) An acknowledgment of liability means (a) a written promise to pay the money owing, signed by the person or his or her agent or other representative; Exécution du b (b) a written acknowledgment of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; (c) a part payment by the person or his or her agent or other representative of any money owing; or (d) any acknowledgment of the money owing made by the person, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. Limitation period suspended (6) The running of a limitation period in respect of money owing under this Act is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover money owing under this Act. Enforcement proceedings (7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. No interest payable 8. No interest is payable on any amount owing to Her Majesty under this Act as a result of an overpayment or an erroneous payment. Authority to enter agreements 9. The Minister may enter into agreements or arrangements with any department, board or agency of the Government of Canada to assist the Minister in carrying out the purposes and provisions of this Act. Payment out of C.R.F. 10. All amounts payable by the Minister under section 4 shall be paid out of the Consolidated Revenue Fund. CONSEQUENTIAL AND RELATED AMENDMENTS 1992, c. 48, Sch. Children’s Special Allowances Act 169. The Children’s Special Allowances Act is amended by adding the following after section 2: C. 4 Interpretation 2.1 (1) Except for the purposes of sections 2, 3, 3.1 and 8, the expression “special allowance” is to be read as including the special allowance supplement described in section 3.1. Interpretation (2) For the purposes of the payment of a special allowance supplement under section 3.1, the reference to “January 1993” in paragraph 4(2)(c) is to be read as a reference to “July 2006”. Budget Implem 170. The Act is amended by adding the following after section 3: Monthly special allowance supplement 3.1 If a special allowance is payable under section 3 for a child under the age of six, there shall be added to that special allowance a special allowance supplement in the amount of $100 to be paid out of the Consolidated Revenue Fund. 171. Paragraph 4(4)(d) of the Act is replaced by the following: (d) reaches eighteen years of age or, in the case of a special allowance supplement paid under section 3.1, reaches six years of age. 1996, c. 23 Employment Insurance Act 172. The definition “income” in section 144 of the Employment Insurance Act is replaced by the following: “income” « revenu » “income” of a person for a period means the amount that would be their income for the period determined under the Income Tax Act if no amount were (a) deductible under paragraphs 60(v.1), (w) and (y) of that Act, (b) included in respect of a gain from a disposition of property to which section 79 of that Act applies, or (c) included under subsection 56(6) of that Act; R.S., c. 1 (5th Supp.) Income Tax Act 173. (1) Section 56 of the Income Tax Act is amended by adding the following after subsection (5): 2006 Child care benefit Exécution du b (6) There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts each of which is a benefit paid under section 4 of the Universal Child Care Benefit Act that is received in the taxation year by (a) the taxpayer, if (i) the taxpayer does not have a spouse or common-law partner at the end of the year, or (ii) the income, for the taxation year, of the person who is the taxpayer’s spouse or common-law partner at the end of the taxation year is equal to or greater than the income of the taxpayer for the taxation year; or (b) the taxpayer’s spouse or common-law partner at the end of the taxation year, if the income of the spouse or common-law partner for the taxation year is greater than the taxpayer’s income for the taxation year. (2) Subsection (1) applies to amounts received after June 30, 2006. 174. (1) Section 60 of the Act is amended by striking out the word “and” at the end of paragraph (w), by adding the word “and” at the end of paragraph (x) and by adding the following after paragraph (x): Repayment of UCCB (y) the total of all amounts each of which is an amount paid in the taxation year as a repayment, under the Universal Child Care Benefit Act, of a benefit that was included because of subsection 56(6) in computing the taxpayer’s income for the taxation year or a preceding taxation year. (2) Subsection (1) applies to repayments made after June 30, 2006. 175. (1) The definition “adjusted income” in subsection 122.5(1) of the Act is replaced by the following: “adjusted income” « revenu rajusté » “adjusted income” of an individual, for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s C. 4 Budget Implem qualified relation, if any, in relation to the specified month, both calculated as if no amount were included under subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and as if no amount were deductible under paragraph 60(y) in computing that income. (2) Subsection (1) applies to the 2006 and subsequent taxation years. 176. (1) The definition “adjusted income” in section 122.6 of the Act is replaced by the following: “adjusted income” « revenu modifié » “adjusted income” of an individual for a taxation year means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year if no amount were included under subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(y) in computing that income; (2) Subsection (1) applies to the 2006 and subsequent taxation years. 177. (1) The description of A in subsection 122.61(1) of the Act is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c). (2) Subsection (1) applies in respect of overpayments that are deemed to arise during months that are after June 2007, and, for overpayments that are deemed to arise during months that are after June 2006 and before July 2007, the description of D in subsection 122.61(1) of the Act is to be read as follows: D is the product obtained by multiplying $249 by the number of qualified dependants who have attained the age of 6 years before the month and have not attained the age of 7 years before Exécution du b the month and in respect of whom the person is an eligible individual at the beginning of the month, and 178. (1) The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following: “adjusted income” « revenu modifié » “adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if no amount were included under subsection 56(6) or in respect of a gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(w) or (y) in computing that income; (2) Subsection (1) applies to the 2006 and subsequent taxation years. 179. (1) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.2): (vii.3) to an official solely for the purposes of the administration and enforcement of the Children’s Special Allowances Act or the evaluation or formation of policy for that Act, (vii.4) to an official solely for the purposes of the administration and enforcement of the Universal Child Care Benefit Act or the evaluation or formation of policy for that Act, (2) Subparagraph 241(4)(d)(vii.3) of the Act, as enacted by subsection (1), applies after June 2003. (3) Subparagraph 241(4)(d)(vii.4) of the Act, as enacted by subsection (1), applies after June 2006. R.S., O-9 Old Age Security Act 180. The definition “income” in section 2 of the Old Age Security Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d): C. 4 Budget Implem (e) there shall be deducted from the person’s income for the year any amount included under subsection 56(6) of the Income Tax Act and there shall be included in the person’s income for the year any amount that may be deducted under paragraph 60(y) of that Act; COMING INTO FORCE Coming into force 181. This Part, other than sections 173 to 179, comes into force, or is deemed to have come into force, on July 1, 2006. PART 7 R.S., c. F-8; 1995, c. 17, s. 45(1) AMENDMENTS TO THE FEDERALPROVINCIAL FISCAL ARRANGEMENTS ACT 2005, c. 7, s. 1(1) 182. Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following: Fiscal equalization payment 3. Subject to the provisions of this Act, there may be paid to a province for each fiscal year that begins after March 31, 2004 a fiscal equalization payment not exceeding the amounts set out in this Part. 2005, c. 7, s. 1(1) 183. (1) Subsection 4.1(3) of the Act is replaced by the following: Provincial allocation for fiscal year 2006-2007 (2.1) The fiscal equalization payment referred to in paragraph (1)(b) shall be allocated to the provinces as follows: (a) to Quebec, $5,539,296,000; (b) to Nova Scotia, $1,385,539,000; (c) to New Brunswick, $1,450,799,000; (d) to Manitoba, $1,709,430,000; (e) to British Columbia, $260,228,000; (f) to Prince Edward Island, $291,262,000; (g) to Saskatchewan, $12,723,000; and (h) to Newfoundland and Labrador, $632,223,000. Exécution du b Provincial allocation for subsequent fiscal years (3) With the approval of the Governor in Council, the fiscal equalization payments referred to in paragraph (1)(c) shall be allocated to each province in the proportion that the Minister considers appropriate. The approval of the Governor in Council shall be given once in respect of the three-month period beginning on April 1, 2007 and once in respect of each subsequent three-month period, within three months before the beginning of each of those periods. 2005, c. 7, s. 1(1) (2) Subsection 4.1(4) of the Act is replaced by the following: Upward adjustment of fiscal equalization payment for the fiscal year 2006-2007 (3.1) If the fiscal equalization payment for the fiscal year beginning on April 1, 2006 to which a province is entitled under subsection (2.1) exceeds the fiscal equalization payment that was paid to that province in accordance with the allocation determined under subsection (3), as it read on April 1, 2006, an amount equal to the difference may be paid to the province at the times and in the manner that the Minister considers appropriate. Overpayment made to a province for the fiscal year 2006-2007 (3.2) If the fiscal equalization payment for the fiscal year beginning on April 1, 2006 to which a province is entitled under subsection (2.1) is less than the fiscal equalization payment that was paid to that province in accordance with the allocation determined under subsection (3), as it read on April 1, 2006, the Minister may recover the amount of that overpayment (a) from any amount payable to the province under this Act in that fiscal year or as soon as possible after the end of that fiscal year; or (b) from the province as a debt due to Her Majesty in right of Canada. Time and manner of payment (4) The fiscal equalization payment shall be paid to the province in equal monthly instalments on the first and third working days after the 15th day of each month during the relevant fiscal year. For the purpose of this subsection, “working day” includes any day that is not a Saturday or a holiday. 184. The Act is amended by adding the following after section 4.3: C. 4 Additional fiscal equalization payment for fiscal year 2006-2007 4.31 Despite paragraph 4.1(1)(b), an additional fiscal equalization payment for the fiscal year beginning on April 1, 2006, which shall not be included in the calculation made under paragraph 4.1(1)(c), may be paid, in accordance with subsection 4.1(4), Budget Implem (a) to British Columbia, in the amount of $199,184,000; and (b) to Newfoundland and Labrador, in the amount of $54,380,000. 2005, c. 7, s. 1(1) 185. The portion of section 4.4 of the Act before paragraph (a) is replaced by the following: Payments to territories 4.4 Subject to the provisions of this Part, there may be paid to a territory 186. (1) Section 4.92 of the Act is amended by adding the following after subsection (1): Payment for fiscal year 2006-2007 (1.1) For the fiscal year beginning on April 1, 2006, a territorial formula financing payment may be paid ( a ) t o Yu k o n , i n t h e a m o u n t o f $505,608,000; (b) to the Northwest Territories, in the amount of $739,414,000; and (c) to Nunavut, in the amount of $824,978,000. 2005, c. 7, s. 1(1) (2) Subsections 4.92(3) and (4) of the Act are replaced by the following: Territorial allocation for subsequent fiscal years (3) With the approval of the Governor in Council, the territorial formula financing payments referred to in subsection (2) shall be allocated to each territory in the proportion that the Minister considers appropriate. The approval of the Governor in Council shall be given once in respect of the three-month period beginning on April 1, 2007 and once in respect of each subsequent three-month period, within three months before the beginning of each of those periods. Time and manner of payment (4) In April and May of each fiscal year beginning after March 31, 2005, there shall be paid to a territory a monthly instalment of the territorial formula financing payment equal to Exécution du b 16 per cent of the territory’s allocation of the aggregate territorial formula financing payment for that fiscal year. In each of the remaining ten months of the fiscal year, there shall be paid to the territory a monthly instalment of the territorial formula financing payment equal to 6.8 per cent of the territory’s allocation of the aggregate territorial formula financing payment under this section. 2005, c. 7, s. 1(1) 187. Section 4.93 of the Act is replaced by the following: Underpayment 4.93 (1) If it is determined that an underpayment of any amounts payable to a territory under section 4.92 has been made, an amount equal to the underpayment may be paid to the territory at the times and in the manner that the Minister considers appropriate. Overpayment (2) If it is determined that an overpayment in respect of any amounts payable to a territory under section 4.92 for a fiscal year has been made, the Minister may recover the amount of that overpayment (a) from any amount payable to the territory under this Act in the same fiscal year or as soon as possible after the end of that fiscal year; or (b) from the territory as a debt due to Her Majesty in right of Canada. 188. The Act is amended by adding the following after section 4.93: Additional territorial formula financing payment for fiscal year 2006-2007 4.94 Despite subsection 4.92(1.1), an additional territorial formula financing payment for the fiscal year beginning on April 1, 2006, which shall not be included in the calculation made under subsection 4.92(2), may be paid, in accordance with subsection 4.92(4), (a) to Yukon, in the amount of $311,000; and (b) to Nunavut, in the amount of $1,553,000. 2005, c. 7, s. 6 189. Section 41 of the Act is replaced by the following: Payment out of C.R.F. 41. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister, be paid an amount authorized to be paid by Part I, I.1 or II at the times and in the C. 4 Budget Implem manner that may be prescribed or, if no times and manner have been prescribed, at the times and in the manner set out in that Part. PART 8 PAYMENTS TO PROVINCES AND TERRITORIES Payment of $650,000,000 190. (1) From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Human Resources and Skills Development, be paid to the provinces a payment in the amount of $650,000,000 for the fiscal year beginning on April 1, 2006, in respect of early learning and child care. Provincial allocation (2) The payment referred to in subsection (1) shall be allocated to the provinces as follows: (a) to Ontario, $252,933,933.35; (b) to Quebec, $152,740,663.90; (c) to Nova Scotia, $18,743,350.65; (d) to New Brunswick, $15,028,068.42; (e) to Manitoba, $23,683,368.44; (f) to British Columbia, $85,920,064.72; (g) to Prince $2,762,632.45; Edward Island, (h) to Saskatchewan, $19,863,918.85; (i) to Alberta, $65,973,415.33; (j) to Newfoundland and Labrador, $10,266,477.67; (k) to Yukon, $619,370.20; ( l ) t o t h e N o r t h w e s t Te r r i t o r i e s , $862,067.75; and (m) to Nunavut, $602,668.27. Payment to territories 191. From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Finance, be paid to the territories the following payments for the fiscal year beginning on April 1, 2006: (a) to Yukon, $10,900,000; ( b ) t o t h e N o r t h w e s t Te r r i t o r i e s , $18,000,000; and Exécution du b (c) to Nunavut, $17,500,000. PART 9 MORTGAGE INSURANCE Interpretation “mortgagee” « créancier hypothécaire » “mortgage insurer” « assureur hypothécaire » Mortgage or hypothec insurance protection agreement 192. The following definitions apply in sections 193 and 194. “mortgagee” means a mortgagee or hypothecary creditor that holds a mortgage or hypothec insurance policy with a mortgage insurer. “mortgage insurer” means a corporation to which subsection 13(1) of the Insurance Companies Act applies and that is approved by the Superintendent of Financial Institutions to sell mortgage or hypothec insurance policies in Canada. 193. (1) The Minister of Finance may, with respect to an insurance policy held by a mortgagee, enter into an agreement with any person, including a mortgage insurer or the mortgagee, to do any of the following: (a) provide an indemnity to the mortgagee; (b) provide a guarantee or suretyship to the mortgagee; and (c) purchase a replacement insurance policy for the mortgagee. Payment to be made (2) The agreement shall provide that, if the mortgage insurer with whom the mortgagee holds an insurance policy becomes insolvent or is liquidated, a payment shall be made to the mortgagee, or to another mortgage insurer if the agreement provides for a replacement insurance policy. Amount of payment (3) Subject to regulations made under paragraph 194(1)(a), the payment shall be equal to the benefits payable under the insurance policy held with the mortgage insurer less 10 per cent of the original principal amount of the mortgage or hypothec that is subject to the insurance policy. Limitation (4) The aggregate outstanding principal amount of all mortgages or hypothecs to which insurance policies that are subject to C. 4 Budget Implem such agreements apply shall not at any time exceed $200,000,000,000 or any other amount that may be authorized for the purposes of this subsection under an appropriation Act. Deeming (5) An agreement having the same purpose as an agreement referred to in subsection (1) and that is entered into by the Minister of Finance before the coming into force of that subsection is deemed to be an agreement referred to in this section. Regulations 194. (1) The Governor in Council may make regulations respecting (a) the percentage of the original principal amount to be subtracted under subsection 193(3), including the mortgages or hypothecs to which that percentage applies; (b) information and documents, electronic or otherwise, to be maintained by a person who is a party to an agreement referred to in section 193; and (c) the disclosure of any information and documents, electronic or otherwise, by such a person to the Minister of Finance or any person designated by the Minister of Finance. Application of regulations (2) A regulation made under paragraph (1)(a) does not apply in respect of a mortgage or hypothec that became insured before the coming into force of the regulation by an insurance policy that is subject to an agreement referred to in section 193. Amount to be paid out of C.R.F. 195. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Finance, be paid any amounts to be paid under an agreement entered into under section 193. 2004, c. 1 196. Finance vote 16b of Appropriation Act No. 4, 2003-2004 is repealed. Appropriation Act No. 1, 2006-2007 197. If a bill entitled Appropriation Act No. 1, 2006-2007 is introduced in the first session of the 39th Parliament and receives royal assent, Finance vote 10 of that Act is repealed. 2006 Appropriation Act No. 1, 2006-2007 Exécution du b 198. If a bill entitled Appropriation Act No. 1, 2006-2007 is introduced in the first session of the 39th Parliament and comes into force before section 196 of this Act, section 196 of this Act is repealed. PART 10 AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS 1991, c. 46 BANK ACT 2001, c. 9, s. 44 199. Subsection 21(1) of the Bank Act is replaced by the following: Sunset provision 21. (1) Subject to subsection (2), banks shall not carry on business and authorized foreign banks shall not carry on business in Canada after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, respectively, until the day that is one hundred and eighty days after the first day of the first session of the next Parliament. 2001, c. 9, s. 183 199.1 Subsection 670(1) of the Act is replaced by the following: Sunset provision 670. (1) Subject to subsection (2), bank holding companies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, bank holding companies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament. 1991, c. 48 COOPERATIVE CREDIT ASSOCIATIONS ACT 2001, c. 9, s. 254 200. Subsection 22(1) of the Cooperative Credit Associations Act is replaced by the following: Sunset provision 22. (1) Subject to subsection (2), associations shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, associations may continue to C. 4 Budget Implem carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament. 1991, c. 47 INSURANCE COMPANIES ACT 2001, c. 9, s. 353 201. Subsection 21(1) of the Insurance Companies Act is replaced by the following: Sunset provision 21. (1) Subject to subsection (2), companies and societies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, companies and societies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament. 2001, c. 9, s. 465 201.1 Subsection 707(1) of the Act is replaced by the following: Sunset provision 707. (1) Subject to subsection (2), insurance holding companies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, insurance holding companies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament. 1991, c. 45 TRUST AND LOAN COMPANIES ACT 2001, c. 9, s. 484 202. Subsection 20(1) of the Trust and Loan Companies Act is replaced by the following: Sunset provision 20. (1) Subject to subsection (2), companies shall not carry on business after April 24, 2007, except that if Parliament dissolves on that day or at any time within the three-month period before that day, companies may continue to carry on business until the day that is one hundred and eighty days after the first day of the first session of the next Parliament. Exécution du b PART 11 AMENDMENTS RELATING TO PENSIONS R.S., c. C-17 CANADIAN FORCES SUPERANNUATION ACT 203. Subsection 15(2) of the Canadian Forces Superannuation Act is replaced by the following: Deduction from annuity (2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor (a) has not reached the age of sixty-five years, and (b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan, there shall be deducted from the amount of any annuity to which that contributor is entitled under this Act an amount equal to the percentage, as set out in subsection (2.1), of (c) the average annual pay received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings, multiplied by (d) the number of years of pensionable service after 1965 or after he or she has attained the age of eighteen years, whichever is the later, to the credit of the contributor, not exceeding thirty-five, divided by fifty. Percentages (2.1) For the purposes of subsection (2), the percentage that applies in respect of a contributor is (a) 35%, if the contributor was born before 1943; (b) 34.25%, if the contributor was born in 1943; (c) 33.5%, if the contributor was born in 1944; C. 4 Budget Implem (d) 32.75% if the contributor was born in 1945; (e) 32%, if the contributor was born in 1946; and (f) 31.25%, if the contributor was born after 1946. R.S., c. P-36 PUBLIC SERVICE SUPERANNUATION ACT 1992. c. 46, s. 1(2) 204. Subsection 3(4) of the Public Service Superannuation Act is replaced by the following: When specified age deemed to be reached (4) For the purposes of paragraph 8(2)(e), a person is deemed to have reached the age of eighteen years at the beginning of the month following the month in which the person actually reached that age and, for the purposes of paragraph 11(2)(a), a person is deemed to have reached the age of sixty-five years at the beginning of the month following the month in which the person actually reached that age. 205. Subsection 11(2) of the Act is replaced by the following: Deduction from annuity (2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor (a) has not reached the age of sixty-five years, and (b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan, there shall be deducted from the amount of any annuity to which that contributor is entitled under this Part an amount equal to the percentage, as set out in subsection (2.1), of (c) the average annual salary received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings, multiplied by Exécution du b (d) the number of years of pensionable service after 1965 to the credit of the contributor, not exceeding thirty-five, divided by fifty. Percentages (2.1) For the purposes of subsection (2), the percentage that applies in respect of a contributor is (a) 35%, if the contributor was born before 1943; (b) 34.25%, if the contributor was born in 1943; (c) 33.5%, if the contributor was born in 1944; (d) 32.75% if the contributor was born in 1945; (e) 32%, if the contributor was born in 1946; and (f) 31.25%, if the contributor was born after 1946. R.S., c. R-11 ROYAL CANADIAN MOUNTED POLICE SUPERANNUATION ACT 206. Subsection 10(2) of the Royal Canadian Mounted Police Superannuation Act is replaced by the following: Deduction from annuity (2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor (a) has not reached the age of sixty-five years, and (b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan, there shall be deducted from the amount of any annuity to which that contributor is entitled under this Part an amount equal to the percentage, as set out in subsection (2.1), of (c) the average annual pay received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings, multiplied by C. 4 Budget Implem (d) the number of years of pensionable service after 1965 or after he or she has attained the age of eighteen years, whichever is the later, to the credit of the contributor, not exceeding thirty-five, divided by fifty. Percentages (2.1) For the purposes of subsection (2), the percentage that applies in respect of a contributor is (a) 35%, if the contributor was born before 1943; (b) 34.25%, if the contributor was born in 1943; (c) 33.5%, if the contributor was born in 1944; (d) 32.75% if the contributor was born in 1945; (e) 32%, if the contributor was born in 1946; and (f) 31.25%, if the contributor was born after 1946. COMING INTO FORCE Coming into force 207. This Part comes into force on January 1, 2008. PART 12 MACKENZIE GAS PROJECT IMPACTS ACT ENACTMENT OF ACT Enactment of Act 208. The Mackenzie Gas Project Impacts Act, whose text is as follows and whose schedule is set out in Schedule 2 to this Act, is hereby enacted: An Act to establish the Corporation for the Mitigation of Mackenzie Gas Project Impacts SHORT TITLE Short title 1. This Act may be cited as the Mackenzie Gas Project Impacts Act. Exécution du b INTERPRETATION Definitions “board” « conseil » “Corporation” « Société » 2. The following definitions apply in this Act. “board” means the board of directors of the Corporation. “Corporation” means the Corporation for the Mitigation of Mackenzie Gas Project Impacts established by section 3. “director” « administrateur » “director” means a person who is on the board and includes the chairperson. “eligible project” « travaux admissibles » “eligible project” means a project referred to in section 5. “employee or agent of Her Majesty in right of a province” « fonctionnaire ou mandataire de Sa Majesté du chef d’une province » “employee or agent of Her Majesty in right of a province” does not include an employee or agent of Her Majesty in right of a province whose duties and functions in that capacity are restricted to work in a university, college or other educational institution. “Mackenzie gas project” « projet gazier Mackenzie » “Mackenzie gas project” means the project proposed by a consortium led by Imperial Oil Resources Ventures Limited that includes the development of the natural gas fields of Niglintgak, Taglu and Parsons Lake, and the construction and operation of (a) a gathering system related to those fields; (b) a natural gas liquids pipeline; (c) the natural gas pipeline that is the subject of the application GH-12004 made to the National Energy Board on October 7, 2004; and (d) facilities related to the fields, the gathering system or the pipelines. “Minister” « ministre » “regional organization” « organisation régionale » “Minister” means the Minister of Indian Affairs and Northern Development. “regional organization” means an organization referred to in the schedule. C. 4 Budget Implem INCORPORATION Corporation established 3. There is hereby established a corporation to be known as the Corporation for the Mitigation of Mackenzie Gas Project Impacts. Corporation not agent of Her Majesty 4. The Corporation is not an agent of Her Majesty in right of Canada. Objects and purposes of Corporation 5. (1) The objects and purposes of the Corporation are to provide contributions to regional organizations with respect to projects described in subsection (2). Eligible project (2) The Corporation may only provide contributions to regional organizations in respect of a project if the project (a) mitigates the existing or anticipated socio-economic impacts on communities in the Northwest Territories arising from the Mackenzie gas project; and (b) is consistent with criteria established and made publicly available by the Corporation. Capacity 6. In carrying out its objects and purposes, the Corporation has the capacity and, subject to this Act, the rights, powers and privileges of a natural person. Head office 7. The head office of the Corporation shall be in a place in Canada designated by the Governor in Council. Canada Corporations Act 8. The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, does not apply to the Corporation. DIRECTORS Board of directors 9. There shall be a board of directors consisting of either three or five persons, including the person appointed as chairperson. Notice of appointment 10. (1) The Minister shall provide notice to the regional organizations at least one month before appointing the first director, other than the chairperson, under section 105 of the Financial Administration Act and each successor of that director. Exécution du b Nominees of regional organizations (2) The regional organizations, on receiving the notice, may provide the Minister with a list of nominees for the appointment. The Minister shall consider the nominees before making the appointment. Eligibility for directors (3) A person is not eligible to be appointed as a director if the person (a) is a member of the Senate, the House of Commons or the legislature of a province; (b) is an employee or agent of Her Majesty in right of Canada or in right of a province; (c) does not ordinarily reside in Canada; or (d) is disqualified under subsection 105(1) of the Canada Business Corporations Act. Limitation (4) Until all directors are appointed, the Corporation shall not provide any contributions or enter into any agreements or arrangements, or review any applications, for or in respect of contributions. Terms of office of directors 11. (1) The directors, other than the chairperson, shall be appointed to hold office during pleasure for terms not exceeding five years. Staggered terms (2) The appointment of all directors shall ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors of the Corporation. Ceasing to be director (3) A director ceases to be a director when the director (a) dies; (b) resigns; (c) is appointed to the Senate; (d) is elected to the House of Commons or to the legislature of a province; (e) becomes an employee or agent of Her Majesty in right of Canada or in right of a province; (f) ceases to be ordinarily resident in Canada; or C. 4 Budget Implem (g) becomes disqualified under subsection 105(1) of the Canada Business Corporations Act. Director representation and experience 12. The appointment of directors shall be made having regard to the need for a board that has sufficient knowledge of, and experience in, financial administration and sufficient knowledge of the socio-economic issues affecting communities in northern regions. Costs and expenses of Corporation 13. (1) The following shall be paid by the Corporation: (a) the directors’ remuneration and benefits, in accordance with section 108 of the Financial Administration Act; (b) the directors’ reasonable travel and living expenses incurred by them in the performance of their duties under this Act while absent from their ordinary place of residence; and (c) other costs and expenses of carrying on the business of the Corporation. Directors not to profit (2) Except as provided under subsection (1), no director shall profit, gain any income or acquire any property, from the Corporation or its activities. STAFF Staff 14. (1) The board may appoint any officers, employees, agents and mandataries of the Corporation that it considers necessary to carry out the objects and purposes of the Corporation. Designation of offices (2) Subject to the by-laws of the Corporation, the board may designate the offices of the Corporation and specify the duties and functions of each office. Directors not employees, agents or mandataries (3) Directors are not eligible to be employees, agents or mandataries of the Corporation. Not part of federal public administration (4) The directors, officers, employees, agents and mandataries of the Corporation are not, because of being directors, officers, employees, agents and mandataries of the Corporation, part of the federal public administration. Exécution du b OPERATIONS Agreement with regional organizations 15. (1) The Corporation shall, before providing a contribution to a regional organization, enter into an agreement with the organization respecting, among other things, (a) the manner in which advances will be made in respect of contributions and when those advances will be made; (b) the terms or conditions on which the contributions will be provided; and (c) the evaluation of the regional organization’s performance in achieving the objectives associated with the provision of contributions for eligible projects and the evaluation of the results of the projects that are funded. Corporation not to acquire a benefit or interest (2) In providing contributions to a regional organization, the Corporation shall not acquire any benefit or any interest, including an ownership interest, whether through the acquisition of share capital, a partnership interest or otherwise. Investment policies 16. The board shall, with the approval of the Minister of Finance, establish investment policies, standards and procedures that a reasonably prudent person would apply in respect of a portfolio of investments to avoid undue risk of loss and obtain a reasonable return, having regard to the Corporation’s obligations and anticipated obligations. Investments 17. (1) The Corporation shall invest its funds, and reinvest any income from those funds, in accordance with the investment policies, standards and procedures established by the board. Incorporation of other corporations (2) The Corporation shall not cause any corporation to be incorporated, participate in such an incorporation or become a partner in a partnership. Control of Corporation (3) Except for the investment of its funds, the Corporation shall not carry on any business for gain or profit and shall not hold or acquire any interest in any corporation or enterprise. C. 4 Borrowing prohibited 18. (1) Except as permitted under its corporate plan approved in accordance with section 122 of the Financial Administration Act, the Corporation shall not borrow money, issue any debt obligations or securities, give any guarantees to secure a debt or other obligation of another person or mortgage, hypothecate, pledge or otherwise encumber property of the Corporation. Real property or immovables (2) The Corporation shall not purchase or accept a donation of real property or immovables. Delegation by board 19. (1) Subject to subsection (2), the board may delegate to the chairperson, a committee of directors or an officer of the Corporation any of the powers or rights of the board. Restrictions on delegation (2) The board shall not delegate any power or right of the board Budget Implem (a) to enact, amend or repeal by-laws; (b) to authorize the provision of contributions to regional organizations for eligible projects; (c) to appoint officers of the Corporation or fix their remuneration; or (d) to approve the annual financial statements or reports of the Corporation. LIQUIDATION Order 20. The Governor in Council may, by order, require the Corporation to cease carrying on business and liquidate its assets. Distribution 21. Any money remaining after liquidation shall be distributed in accordance with instructions given by the Governor in Council. GENERAL Mandatory bylaws 22. The Corporation shall include in its bylaws provisions (a) entitling a regional organization that has made an application for a contribution from the Corporation to request the board to make Exécution du b a ruling as to the possible conflict of interest of a director in the consideration or disposal of the application; (b) establishing procedures to be followed by the board in responding to the request and giving the ruling; and (c) determining the fiscal year of the Corporation. Inconsistencies 23. In the event of an inconsistency between the provisions of this Act and the provisions of Part X of the Financial Administration Act, the provisions of this Act prevail. AMENDMENT OF SCHEDULE Order in Council 24. The Governor in Council may, by order made on the recommendation of the Minister, add or delete the name of any organization to or from the schedule. PAYMENTS Payment of $500,000,000 209. (1) From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Finance made on the recommendation of the Minister of Indian Affairs and Northern Development, be paid to the Corporation for the Mitigation of Mackenzie Gas Project Impacts payments not exceeding in the aggregate the sum of $500,000,000. Condition for recommendation (2) The Minister of Indian Affairs and Northern Development may only make the recommendation if the Mackenzie gas project, as defined in section 2 of the Mackenzie Gas Project Impacts Act, as enacted by section 208 of this Act, has not been terminated and the Minister of Indian Affairs and Northern Development is of the opinion that progress is being made on the project. Terms and conditions (3) The Minister of Indian Affairs and Northern Development may, with the concurrence of the Minister of Finance, enter into an agreement with the Corporation for the Mitigation of Mackenzie Gas Project Impacts respecting the terms and conditions applicable to the making of the payments and their use. C. 4 Budget Implem CONSEQUENTIAL AMENDMENTS R.S., c. A-1 Access to Information Act 210. Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Corporation for the Mitigation of Mackenzie Gas Project Impacts Société d’atténuation des répercussions du projet gazier Mackenzie R.S., c. F-11 Financial Administration Act 211. Part 1 of Schedule III to the Financial Administration Act is amended adding the following in alphabetical order: Corporation for the Mitigation of Mackenzie Gas Project Impacts Société d’atténuation des répercussions du projet gazier Mackenzie R.S., c. P-21 Privacy Act 212. The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”: Corporation for the Mitigation of Mackenzie Gas Project Impacts Société d’atténuation des répercussions du projet gazier Mackenzie COMING INTO FORCE Order in Council 213. Sections 208 to 212 come into force on a day to be fixed by order of the Governor in Council. Exécution du b PART 13 MISCELLANEOUS AMENDMENTS 1991, c. 12 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AGREEMENT ACT 214. The European Bank for Reconstruction and Development Agreement Act is amended by adding the following after section 4: Amendment to schedule 4.1 The Governor in Council may, by order, amend the schedule to reflect amendments to the Agreement. 215. Article 1 of the Agreement set out in the schedule to the Act is replaced by the following: ARTICLE 1 Purpose In contributing to economic progress and reconstruction, the purpose of the Bank shall be to foster the transition towards open marketoriented economies and to promote private and entrepreneurial initiative in the Central and Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market economics. The purpose of the Bank may also be carried out in Mongolia subject to the same conditions. Accordingly, any reference in this Agreement and its annexes to “Central and Eastern European countries”, “countries from Central and Eastern Europe”, “recipient country (or countries)” or “recipient member country (or countries)” shall refer to Mongolia as well. R.S., c. F-13 FRESHWATER FISH MARKETING ACT 216. Subsection 16(2) of the Freshwater Fish Marketing Act is replaced by the following: Limitation (2) The aggregate outstanding at any time of the amounts borrowed by the Corporation pursuant to paragraph 7(g) and the amounts lent by the Minister of Finance under this section shall not exceed fifty million dollars. 1999, c. 34 C. 4 Budget Implem PUBLIC SECTOR PENSION INVESTMENT BOARD ACT 217. The Public Sector Pension Investment Board Act is amended by adding the following after section 3: CAPITAL AND SHARES Capital 3.1 (1) The capital of the Board is $100. The Minister shall pay the capital of the Board out of the Consolidated Revenue Fund. Shares (2) The capital is divided into 10 shares having a par value of $10 each. The shares shall be issued to the Minister to be held on behalf of Her Majesty in right of Canada. Registration (3) The shares issued to the Minister shall be registered by the Board in the name of the Minister. Exécution du budget SCHEDULE 1 (Section 97) SCHEDULE 2 (Sections 17, 22, 23 and 29) LIST OF BANDS, COUNCILS, RESERVES AND SPECIFIED PROVINCES Column 1 Column 2 Column 3 Council of Column 4 Specified Band the Band Reserves Province Montagnais Essipit Conseil des Montagnais Essipit Reserve of Montagnais Essipit Quebec C. 4 Budget Implementation SCHEDULE 2 (Section 208) SCHEDULE (Sections 2 and 24) REGIONAL ORGANIZATIONS Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services PWGSC, Ottawa, ON K1A 0S5 Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services PWGSC, Ottawa, ON K1A 0S5

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 5 An Act respecting the establishment of the Public Health Agency of Canada and amending certain Acts ASSENTED TO 12th DECEMBER, 2006 BILL C-5 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act respecting the establishment of the Public Health Agency of Canada and amending certain Acts”. SUMMARY This enactment establishes the Public Health Agency of Canada to assist the Minister of Health in exercising or performing the Minister’s powers, duties and functions in relation to public health. It also provides that the Governor in Council may make regulations respecting the collection and management of public health information and the protection of confidential information, including personal information. It also makes related and consequential amendments to certain Acts. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT RESPECTING THE ESTABLISHMENT OF THE PUBLIC HEALTH AGENCY OF CANADA AND AMENDING CERTAIN ACTS Preamble SHORT TITLE 1. Public Health Agency of Canada Act INTERPRETATION 2. Definitions PUBLIC HEALTH AGENCY OF CANADA 3. Establishment 4. Minister to preside 5. Delegation to Agency CHIEF PUBLIC HEALTH OFFICER 6. Appointment 7. Lead health professional 8. Tenure of office and removal 9. Rank and status 10. Remuneration 11. Delegation 12. Annual report on public health GENERAL PROVISIONS 13. Officers and employees 14. Committees 15. Regulations 16. Definitions 17. Chief Public Health Officer 18. Transfer of appropriations 19. References 20. Annual report TRANSITIONAL PROVISIONS i RELATED AND CONSEQUENTIAL AMENDMENTS 21. Department of Health Act 22. Quarantine Act COORDINATING AMENDMENT 23. 2005, c. 20 COMING INTO FORCE 24. Order in council 55 ELIZABETH II —————— CHAPTER 5 An Act respecting the establishment of the Public Health Agency of Canada and amending certain Acts [Assented to 12th December, 2006] Preamble WHEREAS the Government of Canada wishes to take public health measures, including measures relating to health protection and promotion, population health assessment, health surveillance, disease and injury prevention, and public health emergency preparedness and response; WHEREAS the Government of Canada wishes to foster collaboration within the field of public health and to coordinate federal policies and programs in the area of public health; WHEREAS the Government of Canada wishes to promote cooperation and consultation in the field of public health with provincial and territorial governments; WHEREAS the Government of Canada also wishes to foster cooperation in that field with foreign governments and international organizations, as well as other interested persons or organizations; AND WHEREAS the Government of Canada considers that the creation of a public health agency for Canada and the appointment of a Chief Public Health Officer will contribute to federal efforts to identify and reduce public health risk factors and to support national readiness for public health threats; C. 5 Public Health Ag NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Public Health Agency of Canada Act. INTERPRETATION Definitions 2. The following definitions apply in this Act. “Agency” « Agence » “Agency” means the Public Health Agency of Canada established by section 3. “Chief Public Health Officer” « administrateur en chef » “Chief Public Health Officer” means the Chief Public Health Officer appointed under subsection 6(1). “Minister” « ministre » “Minister” means the Minister of Health. PUBLIC HEALTH AGENCY OF CANADA Establishment 3. The Public Health Agency of Canada is established for the purpose of assisting the Minister in exercising or performing the Minister’s powers, duties and functions in relation to public health. Minister to preside 4. The Minister presides over the Agency and has the management and direction of it. Delegation to Agency 5. (1) The Minister may, subject to any terms and conditions that the Minister specifies, delegate to an officer or employee of the Agency any of the powers, duties and functions that the Minister is authorized to exercise or perform under any Act of Parliament or any order made by the Governor in Council in respect of public health. Restriction (2) Subsection (1) does not authorize the Minister to delegate a power to make regulations nor a power to delegate under that subsection. Agence de la santé p CHIEF PUBLIC HEALTH OFFICER Appointment 6. (1) The Governor in Council shall appoint a Chief Public Health Officer, who is the deputy head of the Agency. Qualifications required (2) The Chief Public Health Officer shall be a health professional who has qualifications in the field of public health. Lead health professional 7. (1) The Chief Public Health Officer is the lead health professional of the Government of Canada in relation to public health. Communication with governments, public health authorities and organizations (2) The Chief Public Health Officer may, with respect to public health issues, communicate with governments, public health authorities or organizations in the public health field, within Canada or internationally. Communication with the public, voluntary organizations and the private sector (3) The Chief Public Health Officer may communicate with the public, voluntary organizations in the public health field or the private sector for the purpose of providing information, or seeking their views, about public health issues. Tenure of office and removal 8. (1) The Chief Public Health Officer holds office during pleasure for a term not exceeding five years. Reappointment (2) The Chief Public Health Officer may be reappointed for one or more additional terms. Rank and status 9. The Chief Public Health Officer has the rank and status of a deputy head of a department. Remuneration 10. (1) The Chief Public Health Officer shall be paid, for the performance of his or her duties and functions, the remuneration fixed by the Governor in Council. Travelling, living and other expenses (2) The Chief Public Health Officer shall be paid, in accordance with Treasury Board directives, for reasonable travel, living and other expenses incurred in performing his or her duties and functions while absent from his or her ordinary place of work. Delegation 11. The Chief Public Health Officer may delegate any of the powers, duties and functions that the Chief Public Health Officer is author4 C. 5 Public Health Ag ized to exercise or perform, except the power to delegate under this section, to any officer or employee of the Agency. Annual report on public health 12. (1) The Chief Public Health Officer shall, within six months after the end of each fiscal year, submit a report to the Minister on the state of public health in Canada. Tabling in Parliament (2) The Minister shall cause the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report. Other report on public health (3) The Chief Public Health Officer may prepare and publish a report on any issue relating to public health. Data and methodology (4) The Chief Public Health Officer shall, to the extent possible, in any report submitted or published under this section, set out the source of the data and information used in the preparation of the report and the methodology employed to arrive at the report’s findings, conclusions or recommendations. Contents of a report (5) The Chief Public Health Officer may, in any report submitted or published under this section, refer to public health problems and their causes, as well as any measures that may, in his or her opinion, be effective in preventing or resolving those problems. GENERAL PROVISIONS Officers and employees 13. The officers and employees necessary for the proper conduct of the work of the Agency shall be appointed in accordance with the Public Service Employment Act. Committees 14. (1) The Minister may establish advisory and other committees in relation to public health and provide for their membership, duties, functions and operation. Remuneration (2) Members of a committee shall be paid, for the performance of their duties and functions, any remuneration that may be fixed by the Governor in Council. Travel, living and other expenses (3) Members of a committee are entitled to be paid, in accordance with Treasury Board directives, for reasonable travel, living and other expenses incurred in the performance of their duties and functions while absent from their Agence de la santé p ordinary place of work, in the case of full-time members, or from their ordinary place of residence, in the case of part-time members. Regulations 15. (1) The Governor in Council may, on the recommendation of the Minister, make regulations respecting (a) the collection, analysis, interpretation, publication and distribution of information relating to public health, for the purpose of paragraph 4(2)(h) of the Department of Health Act; and (b) the protection of that information if it is confidential information, including if it is personal information as defined in section 3 of the Privacy Act. Offence (2) Every person who knowingly possesses, uses or discloses information in contravention of a regulation made under subsection (1) is guilty of an offence and is liable, on summary conviction, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding six months, or to both. TRANSITIONAL PROVISIONS Definitions 16. The following definitions apply in sections 17 to 19. “former agency” « ancienne agence » “former agency” means the portion of the federal public administration known as the Public Health Agency of Canada. “new agency” « nouvelle agence » “new agency” means the Public Health Agency of Canada established under section 3. Chief Public Health Officer 17. (1) The person occupying the office of Chief Public Health Officer on the day on which this section comes into force remains in office and is deemed to have been appointed under subsection 6(1). Employees (2) Nothing in this Act is to be construed as affecting the status of an employee who, immediately before the coming into force of this section, occupied a position in the former C. 5 Public Health Ag agency, except that the employee shall, on that coming into force, occupy that position in the new agency. Definition of “employee” (3) In subsection (2), “employee” has the same meaning as in subsection 2(1) of the Public Service Employment Act. Transfer of appropriations 18. (1) Any amount that is appropriated, for the fiscal year in which this section comes into force, by an appropriation Act based on the Estimates for that year for defraying the charges and expenses of the federal public administration for the former agency and that is unexpended on the day on which this section comes into force is deemed, on that day, to be an amount appropriated for defraying the charges and expenses of the federal public administration for the new agency. Transfer of powers, duties and functions (2) If a power, duty or function is, under any Act, order, rule or regulation, or under any contract, lease, licence or other document, vested in or exercisable by an officer or employee of the former agency, the power, duty or function is vested in and shall be exercised by the appropriate officer or employee of the new agency, unless the Governor in Council, by order, designates a deputy minister or an officer of the federal public administration to exercise or perform that power, duty or function. References 19. (1) A reference to the former agency in any of the following schedules and orders is deemed to be a reference to the new agency: (a) Schedule I to the Access to Information Act, under the heading “OTHER GOVERNMENT INSTITUTIONS”; (b) Schedules I.1 and IV to the Financial Administration Act; (c) the schedule to the Privacy Act, under the heading “OTHER GOVERNMENT INSTITUTIONS”; (d) the schedule to the Access to Information Act Heads of Government Institutions Designation Order; Agence de la santé p (e) the schedule to the Direction Applying the Auditor General Act Sustainable Development Strategy Requirements to Certain Departments; (f) the schedule to the Privacy Act Heads of Government Institutions Designation Order; and (g) any order of the Governor in Council made pursuant to the definition “department” in subsection 2(1) of the Public Service Employment Act. Deputy head (2) The designation of a person as deputy head of the former agency in any order of the Governor in Council made pursuant to paragraph 29(e) of the Canadian Security Intelligence Service Act or to the definition “deputy head” in subsection 2(1) of the Public Service Employment Act is deemed to be a designation of the Chief Public Health Officer as deputy head of the new agency. Annual report 20. Subsections 12(1) and (2) do not apply until the expiry of the fiscal year following the fiscal year in which those subsections come into force. RELATED AND CONSEQUENTIAL AMENDMENTS 1996, c. 8 DEPARTMENT OF HEALTH ACT 21. The Department of Health Act is amended by adding the following after section 4: Portfolio of the Minister — coordination and strategic priorities 4.1 The Minister shall coordinate the activities of, and establish strategic priorities for, any board or agency for which the Minister is responsible and may, subject to any terms and conditions that the Minister considers appropriate, delegate those powers, duties and functions to the Deputy Minister of Health. Services between the Department and boards or agencies 4.2 (1) The Department may provide services to, and receive services from, any board or agency for which the Minister is responsible and any of those boards or agencies may also provide services to each other. C. 5 Fees for services (2) The Minister may fix the fees to be paid for services provided by the Minister or the Department to any board or agency for which the Minister is responsible and any of those boards or agencies may fix the fees to be paid for services provided to the Minister, the Department or to each other, despite subsection 6(1). Amounts charged (3) The amounts to be recovered for services provided under subsection (1) and the manner of calculating the amounts are subject to the approval of the Treasury Board and the amount charged for a service may not exceed the cost of providing the service. Amounts received may be spent (4) Subject to any conditions imposed by the Treasury Board, any amounts received by the Department or a board or agency for services provided under subsection (1) may be expended, in the case of the Department, for any purpose of the Department, or, in the case of a board or agency, for any purpose of the board or agency. Public Health Ag R.S., c. Q-1 QUARANTINE ACT 1996, c. 8, par. 33(b) 22. Paragraph 9(b) of the Quarantine Act is replaced by the following: (b) may appeal the detention to the Chief Public Health Officer, or any other person that the Chief Public Health Officer may designate, who may allow the appeal, dismiss it or make any order with respect to the detention or the release of the detained person that a quarantine officer may make under subsection 8(2). COORDINATING AMENDMENT 2005, c. 20 23. (1) If section 82 of the Quarantine Act (the “other Act”), being chapter 20 of the Statutes of Canada, 2005, comes into force before section 22 of this Act, then, on the later of the day on which that section 82 comes into force and the day on which this Act receives royal assent — or, if those days are the same day, then on that day — section 22 of this Act and the heading before it are repealed. Agence de la santé p (2) If section 82 of the other Act comes into force on the same day as section 22 of this Act, then section 22 of this Act is deemed to have come into force before section 82 of the other Act. COMING INTO FORCE Order in council 24. This Act, other than section 23, comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 1 An Act to amend An Act to amend the Canada Elections Act and the Income Tax Act ASSENTED TO 11th MAY, 2006 BILL C-4 SUMMARY This enactment amends An Act to amend the Canada Elections Act and the Income Tax Act by replacing its sunset provision with a requirement for a mandatory review, within two years, by a committee of the Senate and a committee of the House of Commons. All parliamentary publications are available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55 ELIZABETH II —————— CHAPTER 1 An Act to amend An Act to amend the Canada Elections Act and the Income Tax Act [Assented to 11th May, 2006] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Section 26 of An Act to amend the Canada Elections Act and the Income Tax Act, being chapter 24 of the Statutes of Canada, 2004, is replaced by the following: REVIEW Review 26. Within two years after the coming into force of this section, the committee of the Senate that normally considers electoral matters, and the committee of the House of Commons that normally considers electoral matters, shall each undertake a comprehensive review of the amendments made by this Act and submit a report to its House containing its recommendations concerning those amendments. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services PWGSC, Ottawa, ON K1A 0S5 Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services PWGSC, Ottawa, ON K1A 0S5

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006 STATUTES OF CANADA 2006 CHAPTER 3 An Act to amend the Agricultural Marketing Programs Act ASSENTED TO 22nd JUNE, 2006 BILL C-15 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Agricultural Marketing Programs Act”. SUMMARY This enactment extends Part I of the Agricultural Marketing Programs Act to a wider range of agricultural products and makes benefits under that Part more accessible to producers throughout the production cycle of agricultural products. All parliamentary publications are available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55 ELIZABETH II —————— CHAPTER 3 An Act to amend the Agricultural Marketing Programs Act [Assented to 22nd June, 2006] 1997, c. 20 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. (1) The definitions “crop” and “crop unit” in subsection 2(1) of the Agricultural Marketing Programs Act are repealed. (2) The definition “crop year” in subsection 2(1) of the English version of the Act is repealed. 2001, c. 27, s. 203 “administrator” « agent d’exécution » (3) The definitions “administrator”, “advance” and “producer” in subsection 2(1) of the Act are replaced by the following: “administrator” means one of the following organizations, if it has the power to sue and be sued in its own name: (a) an organization of producers that is involved in marketing an agricultural product to which Part I applies; (b) an organization, including the Board but not including a lender, that the Minister, taking into account any criteria prescribed by regulation, determines to be an organization that represents producers who produce, in an area, a significant portion of an agricultural product for which advances will be made; or C. 3 Agricultural Mar (c) an organization, including a lender, that the Minister determines to be an organization that would be able to make advances more accessible to producers and that the Minister designates as an administrator. “advance” « avance » “advance” means an advance payment to an eligible producer for an agricultural product. “producer” « producteur » “producer” means a producer of an agricultural product who is (a) a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act; (b) a corporation a majority of whose voting shares are held by Canadian citizens or permanent residents; (c) a cooperative a majority of whose members are Canadian citizens or permanent residents; or (d) a partnership or other association persons where partners or members who Canadian citizens or permanent residents entitled to at least 50% of the profits of partnership or association. of are are the For the purposes of Parts I and IV, “producer” includes a person or entity mentioned in any of paragraphs (a) to (d) that is entitled to an agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor on a date specified for the purposes of this definition in an advance guarantee agreement. (4) The definition “agricultural product” in subsection 2(1) of the English version of the Act is replaced by the following: “agricultural product” « produit agricole » “agricultural product” means an animal or a plant or a product, including any food or drink, that is wholly or partly derived from an animal or a plant. (5) The definition “campagne agricole” in subsection 2(1) of the French version of the Act is replaced by the following: 2006 « campagne agricole » “production period” Programmes de comm « campagne agricole » En ce qui concerne tel produit agricole, toute période d’au plus dixhuit mois — ou le nombre de mois supérieur fixé par le ministre — prévue par l’accord de garantie d’avance relativement à ce produit. (6) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “production unit” « unité de production » “production unit”, in respect of an agricultural product, means the production unit specified in the advance guarantee agreement relating to the agricultural product. (7) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order: “production period” « campagne agricole » “production period”, in respect of an agricultural product, means the period of up to 18 months — or any longer period that is fixed by the Minister — specified in the advance guarantee agreement relating to the agricultural product. (8) Subsection 2(2) of the Act is repealed. 2. Section 4 of the Act is replaced by the following: Purpose 4. The purpose of this Part is to improve marketing opportunities for the agricultural products of eligible producers by guaranteeing the repayment of the advances made to them as a means of improving their cash-flow. Eligible agricultural products 4.1 (1) Subject to subsections (2) and (3), this Part applies only in respect of an agricultural product that meets the following criteria: (a) the agricultural product is (i) an animal that is raised in Canada or the fur pelt of such an animal, (ii) a plant that is grown in Canada or the product of such a plant, or (iii) honey or maple syrup that is produced in Canada; (b) the Minister has determined, taking into account any criteria prescribed by regulation, that it is possible to establish an average price for the agricultural product; and C. 3 Agricultural Mar (c) the Minister has determined, taking into account any criteria prescribed by regulation, that the agricultural product is not processed or, in the case of a perishable agricultural product, is not processed beyond what is necessary to store it and prevent spoilage. Designation by Governor in Council (2) The Governor in Council may, by regulation, designate any other agricultural product as being subject to this Part. Breeding animals (3) Animals that are or were used as breeding animals are not agricultural products that are subject to this Part. 1999, c. 26, s. 42 3. (1) Subsections 5(1.1) to (2) of the Act are replaced by the following: Restriction (1.1) An advance guarantee agreement may be made with an administrator and a lender, or with an administrator that is a lender, only if the Minister is satisfied that doing so will reduce the interest payable to the lender and the agreement is made subject to terms and conditions approved by the Minister of Finance. Conditions concerning the guarantee (1.2) If a guarantee under the advance guarantee agreement is made to a lender, or to an administrator that is a lender, the agreement must provide, in addition to any other terms and conditions, that the interest rate on the money provided by the lender, or by the administrator, as the case may be, will not exceed the rate specified in the agreement. Administrator to demonstrate ability (2) An administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement. (2) The portion of subsection 5(3) of the Act before paragraph (a) is replaced by the following: Terms and conditions (3) In addition to identifying the agricultural products and specifying the terms and conditions governing advances and their repayment, an advance guarantee agreement must provide that the administrator agrees (3) Paragraph 5(3)(e) of the Act is replaced by the following: Programmes de comm (e) to take steps, in accordance with the terms and conditions of the advance guarantee agreement, to ensure that, before an advance is made, (i) in the case of an agricultural product that is storable, it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, and (ii) in the case of an agricultural product that is not storable, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable; (4) Section 5 of the Act is amended by adding the following after subsection (3): Exception (3.1) The terms described in paragraphs (3)(c) and (f) and subparagraph (3)(g)(i) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) and subparagraph (3)(g)(i) — are not required if the Minister and an administrator are the only parties to the agreement. Schedule (3.2) The Governor in Council may, by regulation, on the recommendation of the Minister, amend the schedule by adding to it, or deleting from it, the name of a program. Restriction (3.3) An amendment to an advance guarantee agreement may not be made during the period specified in it that constitutes the C. 3 Agricultural Mar production period if doing so would extend that period beyond 18 months, or the longer period fixed by the Minister, if one was so fixed before the advance guarantee agreement was entered into. (5) Subsection 5(5) of the Act is replaced by the following: Maximum contingent liability (5) The aggregate contingent liability of Her Majesty in relation to the principal outstanding under guarantees made under advance guarantee agreements must not at any time exceed $5 billion or the amount fixed by regulation. Administrator’s percentage (6) The administrator’s percentage mentioned in paragraph (3)(g), as determined under the regulations, must be at least 1% and not more than 15%. If the regulations establish a method of calculating that percentage, the percentage is deemed to be 1% if the calculation results in a lower percentage, and 15% if the calculation results in a higher percentage. 1999, c. 26, s. 43 4. Sections 6 and 7 of the Act are replaced by the following: Agreement where guarantee already exists 5.1 (1) The Minister may enter into an advance guarantee agreement with an administrator without making the guarantee referred to in paragraph 5(1)(a) if the Minister is satisfied that the repayment of the advances to be made under the agreement will be guaranteed by another person or entity. Provisions do not apply (2) Paragraph 5(3)(i) and, unless the agreement specifies otherwise, section 23 do not apply in respect of an advance guarantee agreement that the Minister enters into without making the guarantee referred to in paragraph 5(1)(a). Obligations of administrators 6. A guarantee given to an administrator is not effective unless the administrator complies with this Act and the advance guarantee agreement. Emergency advance 7. (1) Despite paragraph 5(3)(e), the advance guarantee agreement may authorize the administrator to pay, subject to any terms and conditions set out in the advance guarantee agreement, a portion of an advance as an emergency advance to an eligible producer who has difficulty producing the producer’s Programmes de comm agricultural product because of unusual production conditions attributable to weather or natural disaster if it is reasonable to expect that the agricultural product will be marketable. Maximum amount (2) The maximum amount of the emergency advance is the lesser of $25,000, or the amount fixed by regulation, and 50%, or the percentage fixed by regulation, of the advance that the administrator expects to make to the producer in respect of the agricultural product on the basis of the amount of that product that is expected to be produced. 5. Subsection 9(1) of the Act is replaced by the following: Payment of interest 9. (1) The Minister must, in relation to each producer, pay to the lender specified in the advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing during a production period on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts advanced during the production period, or during any shorter period specified in the agreement: (a) amounts advanced to the producer for all of their agricultural products, and (b) the percentage of the amounts advanced to all related producers, for all of their agricultural products, that is attributable to the producer under subsection (2). 6. (1) Subsection 10(1) of the Act is replaced by the following: Eligibility requirements for producers 10. (1) For a producer to be eligible for a guaranteed advance during a production period, (a) the producer must own the agricultural product continuously and be responsible for marketing it, as determined by the Minister, taking into account any criteria prescribed by regulation; (b) if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on and must be C. 3 Agricultural Mar principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor; (c) if the producer is a corporation with only one shareholder, the shareholder must (i) have attained the age of majority in the province where the producer’s farming operation is carried on, (ii) be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor, and (iii) agree in writing to be personally liable to the administrator for any liability of the producer under section 22 and to provide any security for the repayment of the advance that the administrator may require; (d) if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons, (i) at least one of the shareholders, partners or members, as the case may be, must have attained the age of majority in the province where the producer’s farming operation is carried on and must be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor, and (ii) each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable to the administrator for any liability of the producer under section 22 and must provide any security for the repayment of the advance that the administrator may require; (e) the producer and, to the extent provided in the advance guarantee agreement, any related producers must not be in default under a repayment agreement; (f) the producer must not be ineligible under subsection 21(4); Programmes de comm (g) the producer must not have given the agricultural product, or any amount to be received under a program listed in the schedule, as security ranking in priority to the security created by section 12; and (h) the producer must demonstrate that (i) in the case of an agricultural product that is storable, it is of marketable quality and stored so as to remain of marketable quality until disposed of or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, and (ii) in the case of an agricultural product that is not storable, it is of marketable quality and maintained so as to remain of marketable quality until disposed of, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable. 1999, c. 26, s. 45 (2) Subsection 10(1.1) of the English version of the Act is replaced by the following: Sharing security (1.1) For the purpose of paragraph (1)(h), the producer’s eligibility is not affected by the administrator sharing its security with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement. C. 3 Agricultural Mar (3) Subsection 10(2) of the Act is replaced by the following: Eligible producers must make repayment agreements (2) An eligible producer must make a repayment agreement with the administrator under which the producer agrees (a) to repay the advance (i) by selling the agricultural product for which the advance is to be made to a buyer or buyers named by the administrator, and authorizing in writing each buyer to withhold from any amount they pay to the producer for each production unit an amount determined in accordance with the repayment schedule specified in the agreement, (ii) by selling, in accordance with the terms and conditions specified in the agreement, the agricultural product for which the advance is to be made and paying directly to the administrator, for each production unit, an amount determined in accordance with the repayment schedule specified in the agreement, (iii) by paying directly to the administrator any amount received under a program listed in the schedule, (iv) by assigning to the administrator amounts payable to the producer under a program listed in the schedule, (v) without proof that the agricultural product has been sold, by paying the administrator an amount up to an amount prescribed by the regulations, or (vi) by paying the administrator by a combination of the methods described in subparagraphs (i) to (v); (b) to ensure that (i) in the case of an agricultural product that is storable, it will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is Programmes de comm covered by a program listed in the schedule and amounts that may be received under that program are assignable, and (ii) in the case of an agricultural product that is not storable, it will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable; (c) to repay the amount of the overpayment, if any, of the advance within the period that begins on the earlier of the day on which the producer becomes aware of the overpayment and the day on which the administrator mails or delivers a notice to the producer stating that there has been an overpayment of the advance and ends on the expiry of the number of days set out in the agreement; and (d) to comply with any other terms and conditions set out in the agreement, including terms and conditions governing the delivery of the agricultural product and the payment of interest, both before and after any default. 7. Sections 11 and 12 of the Act are replaced by the following: Unmarketable agricultural product 11. If an agricultural product for which a guaranteed advance is made ceases to be in marketable condition, in whole or in part, through no fault of the producer, the producer becomes liable to repay immediately, to the administrator that made the advance, the portion of the guaranteed advance that is attributable to the unmarketable portion of the agricultural product, together with the interest on that portion from the date of the advance. Security 12. An administrator that makes a guaranteed advance to a producer in a production period in respect of an agricultural product shall take the security required by the regulations, for C. 3 Agricultural Mar the amount of the producer’s liability under sections 22 and 23, in the agricultural product for which the advance was made, in any agricultural product produced in a subsequent production period by the producer and, subject to the repayment agreement, in any amount that may be received by the producer under a program listed in the schedule. 8. (1) Subsection 13(1) of the English version of the Act is replaced by the following: Powers to make arrangements and agreements 13. (1) For the purpose of making guaranteed advances under this Act, the Board may make any arrangements, contracts or agreements that it considers necessary or advisable for the administration of this Part and it may borrow or raise money by any means, including by issuing, reissuing, selling and pledging bonds, debentures, notes and other evidences of indebtedness of the Board. (2) Subsection 13(2) of the Act is replaced by the following: Minister of Finance to guarantee repayment (2) The Minister of Finance may, subject to any terms and conditions approved by the Governor in Council, guarantee the repayment of money borrowed under subsection (1) together with the interest on it if the money is borrowed or raised in order to make an advance under a guaranteed advance agreement to which the only parties are the Minister and the Board. 9. Section 14 of the English version of the Act is replaced by the following: Cash purchase tickets 14. Despite the Canada Grain Act, every person, including the manager or operator of an elevator, authorized by the Board to make guaranteed advances on its behalf may make advances by means of cash purchase tickets. 10. Sections 15 to 19 of the Act are replaced by the following: Delivery of documents 16. (1) At any time after a producer applies to the Board for an advance, the Board may require the producer to deliver to it any document, including a permit book, that the Board issued to the producer or to a related producer. Programmes de comm Endorsement (2) The Board may require an endorsement to be made in any of those documents, in a form specified by the Board, indicating that amounts must be deducted in accordance with the repayment agreement with the producer and paid to the Board in priority to all other persons. Deductions 17. (1) If an agricultural product for which the Board has required the delivery of a document bearing an endorsement required under subsection 16(2) is sold, the producer of the agricultural product or, if the person purchasing it has been authorized by the Board to make remittances to the Board in respect of amounts paid for agricultural products, the person purchasing the agricultural product, shall (a) deduct and pay to the Board, in priority to all other persons, the portion of the payment for the agricultural product that the repayment agreement with the producer authorizes to be deducted from each payment until the advance has been repaid; and (b) make an appropriate entry of the deduction in the document and in any other document that has the same endorsement and that is presented to the person purchasing the agricultural product. Cancellation of endorsement (2) When the guaranteed advance has been repaid, the Board must cancel the endorsement. Prohibition 18. A producer whose document has been endorsed under subsection 16(2) is not entitled to receive and shall not use any other document, including a document of a related producer, in substitution for the endorsed document for the same or any subsequent production period, unless the guaranteed advance is repaid or the endorsement is also made in the other document. AMOUNT OF ADVANCES Amount of advance to be guaranteed 19. (1) Subject to subsection (3), the amount of an advance eligible for a guarantee under this Part is calculated by multiplying (a) the number of production units for which the advance is to be made by C. 3 Agricultural Mar (b) the rate per production unit specified in the advance guarantee agreement for the agricultural product for the production period for which the advance is made, or for a specified portion of the production period for which the advance is made. Rate per production unit (2) The rate per production unit may be specified for a particular agricultural product in a particular area, but it must not exceed 50%, or the percentage fixed by regulation, of the average price that in the Minister’s opinion will be payable to producers of the agricultural product in that area. Exception (3) If, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule, the maximum amount of an advance eligible for a guarantee under this Part is the lesser of the amount calculated under subsection (1) and the percentage, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program. 11. Subsection 20(1) of the Act is replaced by the following: Annual maximum guarantee for each producer 20. (1) Subject to subsection (1.1), the maximum amount of advances in any production period that are eligible for a guarantee under this Act is (a) for a particular agricultural product produced by a producer, the amount specified in the advance guarantee agreement for that agricultural product; and (b) for all agricultural products produced by a producer or a related producer, to the extent that advances for the agricultural products are attributable to the producer under subsection (2), $400,000 or the amount fixed by regulation. Overlapping production periods (1.1) The maximum amount of all advances that are eligible for a guarantee under this Act in relation to a producer, or to a related producer to the extent that the advances are attributable to the producer under subsection (2), may not, at any one time, exceed $400,000, or the amount fixed by regulation. Programmes de comm 12. (1) Paragraph 21(1)(b) of the English version of the Act is replaced by the following: (b) has not met all of their obligations under the agreement at the end of the production period for which the advance was made; (2) Paragraph 21(1)(d) of the Act is replaced by the following: (d) at any time breaches an obligation under the agreement and, if the breach relates to the obligation to store the agricultural product or to maintain it so that it remains of marketable quality, section 11 does not apply; or 13. Subsection 24(1) of the Act is replaced by the following: Board deductions 24. (1) If a producer is in default under a repayment agreement with the Board or any other administrator, the Board may, for the purpose of repaying the producer’s liability under sections 22 and 23, make deductions from any amounts owing under the Canadian Wheat Board Act to the producer or to another producer whose permit book the producer uses. 14. The Act is amended by adding the following after section 33: Crown debts assignable 33.1 The following may be assigned in whole or in part: (a) for the purposes of Part I, an amount payable under a program listed in the schedule that is a Crown debt within the meaning of section 66 of the Financial Administration Act; and (b) for the purposes of Part II, an amount payable by the Minister under a price guarantee agreement. 15. Subsection 34(4) of the Act is replaced by the following: C. 3 Use of document (4) A person who uses a document in contravention of section 18 commits an offence. Agricultural Mar 16. (1) The portion of subsection 40(1) of the Act before paragraph (g) is replaced by the following: Governor in Council regulations 40. (1) The Governor in Council may make regulations (a) for the purposes of the definition “administrator” in subsection 2(1), prescribing criteria for determining (i) whether organizations represent producers in an area, or (ii) what constitutes a significant portion of an agricultural product, either generally or with respect to any specified area; (b) for the purpose of subsection 4.1(1), prescribing criteria for (i) establishing an average price for an agricultural product, or (ii) determining whether an agricultural product is not processed or not processed beyond what is necessary to store it and prevent spoilage; (c) determining the administrator’s percentage mentioned in paragraph 5(3)(g), or establishing a method of calculating it, which percentage may differ among administrators depending on their experience and past performance; (d) determining a method of calculating the Minister’s percentage mentioned in paragraph 5(3)(i) and subsection 23(1); (d.1) fixing an amount for the purposes of each of subsections 5(5), 7(2) and 9(1), paragraph 20(1)(b) and subsection 20(1.1), which amount may, for the purposes of subsection 9(1), paragraph 20(1)(b) or subsection 20(1.1), differ with regard to classes of producers; (e) fixing a percentage for the purposes of each of subsection 7(2), paragraph 9(2)(c), subsection 19(2) and paragraph 20(2)(c); Programmes de comm (e.1) prescribing criteria for determining, for the purpose of paragraph 10(1)(a), when a producer ceases to own an agricultural product or ceases to be responsible for its marketing; (f) prescribing an amount for the purposes of subparagraph 10(2)(a)(v); (f.1) for the purposes of paragraph 10(2)(c), defining “overpayment”; (f.2) respecting the security that administrators are required to take for the purposes of section 12; (2) Subsection 40(1) of the Act is amended by striking out the word “and” at the end of paragraph (h) and by adding the following after paragraph (h): (h.1) respecting the assignment of the amounts referred to in paragraphs 33.1(a) and (b); and (3) Subsection 40(2) of the Act is replaced by the following: Recommendation (2) Regulations made under paragraphs (1)(d.1), and regulations made under paragraph (1)(e) to the extent that they fix a percentage for the purposes of subsection 7(2) or 19(2), may only be made on the recommendation of the Minister with the concurrence of the Minister of Finance. Different requirements for security (3) Regulations made under paragraph (1)(f.2) may require different security to be taken with respect to different classes of agricultural products, different amounts of producer liability and different risks associated with that liability. 17. Subsection 42(1) of the Act is replaced by the following: Five-year review 42. (1) Every five years after the coming into force of this subsection, the Minister must review the provisions and operation of this Act in consultation with the Minister of Finance. 18. Section 51.1 of the Act is replaced by the following: C. 3 Defaults 51.1 For the purpose of applying paragraph 10(1)(e), a default under a repayment agreement includes a default in repaying an advance made under the Advance Payments for Crops Act on or before March 31, 1997. Agricultural Mar 19. Section 52.1 of the Act is replaced by the following: Defaults 52.1 For the purpose of applying paragraph 10(1)(e), a default under a repayment agreement includes a default in repaying an advance payment made under the Prairie Grain Advance Payments Act on or before May 31, 1997. 20. The Act is amended by adding, at the end of the Act, the schedule set out in the schedule to this Act. Transitional 21. (1) The following definitions apply in this section. “new Act” « nouvelle loi » “new Act” means the Agricultural Marketing Programs Act as it reads on the day on which this Act comes into force. “old Act” « ancienne loi » “old Act” means the Agricultural Marketing Programs Act as it read immediately before the day on which this Act comes into force. Old Act continues to apply (2) The old Act continues to apply after the day this Act comes into force with respect to advance guarantee agreements and repayment agreements entered into under the old Act that are still in existence on the day on which this Act comes into force. Unpaid amounts — old Act (3) Amounts remaining unpaid in respect of advances made under advance guarantee agreements entered into under the old Act that are still in existence on the day on which this Act comes into force are to be taken into account for the purposes of applying the new Act. Unpaid amounts — spring credit advances (4) Amounts remaining unpaid in respect of advances made under agreements entered into under the Spring Credit Advance Program or the Enhanced Spring Credit Advance Program that are still in existence Programmes de comm on the day on which this Act comes into force are to be taken into account for the purposes of applying the new Act. Default — spring credit advances (5) A default under a repayment agreement entered into under the Spring Credit Advance Program or the Enhanced Spring Credit Advance Program is deemed to be a default under a repayment agreement entered into under the new Act. Retroactive effect of regulations (6) For the purpose of implementing the amendments to the Agricultural Marketing Programs Act enacted by this Act, a regulation made under the new Act, shall, if the regulation so provides, be retroactive and be deemed to have come into force on a day earlier than the day on which the regulation was made, which earlier day may not be before the day on which this Act comes into force. Coming into force 22. This Act comes into force on a day to be fixed by order of the Governor in Council. C. 3 Agricultural Marketing SCHEDULE (Section 20) SCHEDULE (Sections 5, 10, 12, 19 and 33.1) PROGRAMS Canadian Agricultural Income Stabilization Program Net Income Stabilization Account Production Insurance Program Programme d’assurance stabilisation des revenus agricoles Self-Directed Risk Management Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services PWGSC, Ottawa, ON K1A 0S5 Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services PWGSC, Ottawa, ON K1A 0S5

Second Session, Thirty-ninth Parliament, 56 Elizabeth II, 2007 STATUTES OF CANADA 2007 CHAPTER 37 An Act to amend the Canada Elections Act (verification of residence) ASSENTED TO 14th DECEMBER, 2007 BILL C-18 SUMMARY This enactment amends the Canada Elections Act to allow an elector or voucher who provides a piece of identification that does not prove his or her residence to use that piece of identification to prove his or her residence provided that the address on the piece of identification is consistent with information related to the elector or voucher that appears on the list of electors. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 56 ELIZABETH II —————— CHAPTER 37 An Act to amend the Canada Elections Act (verification of residence) [Assented to 14th December, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2000, c. 9 CANADA ELECTIONS ACT 1. Section 143 of the Canada Elections Act is amended by adding the following after subsection (3): Proof of residence (3.1) If the address contained in the piece or pieces of identification provided under subsection (2) or paragraph (3)(a) does not prove the elector’s residence but is consistent with information related to the elector that appears on the list of electors, the elector’s residence is deemed to have been proven. Request to take an oath (3.2) Despite subsection (3.1), a deputy returning officer, poll clerk, candidate or candidate’s representative who has reasonable doubts concerning the residence of an elector referred to in that subsection may request that the elector take the prescribed oath, in which case his or her residence is deemed to have been proven only if he or she takes that oath. 2007, c. 21, s. 26(1) 2. Paragraphs 161(1)(a) and (b) of the Act are replaced by the following: (a) provides as proof of his or her identity and residence the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, which piece or one of which pieces must contain an address that proves his or her residence; or C. 37 Canada Elections (ver (b) proves his or her identity and residence by taking the prescribed oath, and is accompanied by an elector whose name appears on the list of electors for the same polling division and who (i) provides the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, which piece or one of which pieces must contain either an address that proves his or her residence or an address that is consistent with information related to him or her that appears on the list of electors, and (ii) vouches for him or her on oath in the prescribed form, which form must include a statement as to the residence of both electors. 2007, c. 21, s. 30(1) 3. Paragraphs 169(2)(a) and (b) of the Act are replaced by the following: (a) provides as proof of his or her identity and residence the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, which piece or one of which pieces must contain an address that proves his or her residence; or (b) proves his or her identity and residence by taking the prescribed oath, and is accompanied by an elector whose name appears on the list of electors for the same polling division and who (i) provides the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, which piece or one of which pieces must contain either an address that proves his or her residence or an address that is consistent with information related to him or her that appears on the list of electors, and (ii) vouches for him or her on oath in the prescribed form, which form must include a statement as to the residence of both electors. COORDINATING AMENDMENTS 4. If, in the 2nd session of the 39th Parliament, a Bill entitled An Act to amend the Canada Elections Act (expanded voting Loi électorale du Canada opportunities) and to make a consequential amendment to the Referendum Act (the “other Act”) is introduced that is in the same form as Bill C-55 — introduced in the 1st session of the 39th Parliament and having the same title — and if it receives royal assent, then, on the first day on which both subsection 12(3) of that other Act has produced its effects and section 3 of this Act is in force, subsection 176.2(2) of the Canada Elections Act is replaced by the following: Conditions (2) An elector shall not be registered unless he or she (a) provides as proof of his or her identity and residence the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, which piece or one of which pieces must contain an address that proves his or her residence; or (b) proves his or her identity and residence by taking the prescribed oath, and is accompanied by an elector whose name appears on the official list of electors for the same polling division and who (i) provides the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, which piece or one of which pieces must contain either an address that proves his or her residence or an address that is consistent with information related to him or her that appears on the list of electors, and (ii) vouches for him or her on oath in the prescribed form, which form must include a statement as to the residence of both electors. Bill C-6 5. (1) Subsections (2) and (3) apply if Bill C-6, introduced in the 2nd session of the 39th Parliament and entitled An Act to amend the Canada Elections Act (visual identification of voters) (the “other Act”), receives royal assent. (2) On the first day on which subsections 143(3.1) and (3.2) of the Canada Elections Act, as enacted by section 5 of the other Act, C. 37 Canada Elections (ver and subsections 143(3.1) and (3.2) of the Canada Elections Act, as enacted by section 1 of this Act, are in force, (a) subsections 143(3.1) and (3.2) of the Canada Elections Act, as enacted by section 1 of this Act, are renumbered as subsections 143(3.3) and (3.4), respectively, and are repositioned accordingly if required; and (b) the reference to subsection (3.1) in subsection 143(3.4) of the Canada Elections Act is replaced with a reference to subsection (3.3). (3) On the first day on which both section 9 of the other Act is in force and subsection (2) has produced its effects, section 237.1 of the Canada Elections Act is amended by adding the following after subsection (1): Application of subsections 143(3.3) and (3.4) (1.1) Subsections 143(3.3) and (3.4) apply, with any modifications that the circumstances require, in respect of the piece or pieces of identification provided under subsection (1). Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Thirty-ninth Parliament, 56 Elizabeth II, 2007 STATUTES OF CANADA 2007 CHAPTER 36 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005 ASSENTED TO 14th DECEMBER, 2007 BILL C-12 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005”. SUMMARY This enactment amends the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005 to ensure the effective operation of that chapter 47. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO AMEND THE BANKRUPTCY AND INSOLVENCY ACT, THE COMPANIES’ CREDITORS ARRANGEMENT ACT, THE WAGE EARNER PROTECTION PROGRAM ACT AND CHAPTER 47 OF THE STATUTES OF CANADA, 2005 BANKRUPTCY AND INSOLVENCY ACT 1-60. Amendments COMPANIES’ CREDITORS ARRANGEMENT ACT 61-82. Amendments WAGE EARNER PROTECTION PROGRAM ACT 83-94. Amendments CHAPTER 47 OF THE STATUTES OF CANADA, 2005 95-109. Amendments TRANSITIONAL PROVISIONS 110. Bankruptcy and Insolvency Act 111. Companies’ Creditors Arrangement Act COORDINATING AMENDMENTS 112. Bill C-52 COMING INTO FORCE 113. Order in council 56 ELIZABETH II —————— CHAPTER 36 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005 [Assented to 14th December, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. B-3; 1992, c. 27, s. 2 1999, c. 28, s. 146(2) “corporation” « personne morale » BANKRUPTCY AND INSOLVENCY ACT 1. (1) The definition “corporation” in section 2 of the Bankruptcy and Insolvency Act is replaced by the following: “corporation” means a company or legal person that is incorporated by or under an Act of Parliament or of the legislature of a province, an incorporated company, wherever incorporated, that is authorized to carry on business in Canada or has an office or property in Canada or an income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, insurance companies, trust companies, loan companies or railway companies; (2) The definitions “court” and “person” in section 2 of the Act, as enacted by subsection 2(3) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: “court” « tribunal » “court”, except in paragraphs 178(1)(a) and (a.1) and sections 204.1 to 204.3, means a court referred to in subsection 183(1) or (1.1) or a C. 36 Amend judge of that court, and includes a registrar when exercising the powers of the court conferred on a registrar under this Act; “person” « personne » “person” includes a partnership, an unincorporated association, a corporation, a cooperative society or a cooperative organization, the successors of a partnership, of an association, of a corporation, of a society or of an organization and the heirs, executors, liquidators of the succession, administrators or other legal representatives of a person; (3) The definitions “current assets”, “director”, “income trust” and “transfer at undervalue” in section 2 of the Act, as enacted by subsection 2(5) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: “current assets” « actif à court terme » “director” « administrateur » “income trust” « fiducie de revenu » “current assets” means cash, cash equivalents — including negotiable instruments and demand deposits — inventory or accounts receivable, or the proceeds from any dealing with those assets; “director” in respect of a corporation other than an income trust, means a person occupying the position of director by whatever name called and, in the case of an income trust, a person occupying the position of trustee by whatever name called; “income trust” means a trust that has assets in Canada if (a) its units are listed on a prescribed stock exchange on the date of the initial bankruptcy event, or (b) the majority of its units are held by a trust whose units are listed on a prescribed stock exchange on the date of the initial bankruptcy event; “transfer at undervalue” « opération sous-évaluée » “transfer at undervalue” means a disposition of property or provision of services for which no consideration is received by the debtor or for Modific which the consideration received by the debtor is conspicuously less than the fair market value of the consideration given by the debtor; (4) Paragraph (b) of the definition “date of the bankruptcy” in section 2 of the English version of the Act, as enacted by subsection 2(5) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (b) the filing of an assignment in respect of the person, or 1997, c. 12, s. 1(5) (5) The portion of the definition “date of the initial bankruptcy event” in section 2 of the English version of the Act before paragraph (a) is replaced by the following: “date of the initial bankruptcy event” « ouverture de la faillite » “date of the initial bankruptcy event”, in respect of a person, means the earliest of the day on which any one of the following is made, filed or commenced, as the case may be: (6) The definition “date of the initial bankruptcy event” in section 2 of the Act is amended by striking out the word “or” at the end of paragraph (d), by adding the word “or” at the end of paragraph (e) and by adding the following after paragraph (e): (f) proceedings under the Companies’ Creditors Arrangement Act; (7) Section 2 of the Act is amended by adding the following in alphabetical order: “equity claim” « réclamation relative à des capitaux propres » “equity claim” means a claim that is in respect of an equity interest, including a claim for, among others, (a) a dividend or similar payment, (b) a return of capital, (c) a redemption or retraction obligation, (d) a monetary loss resulting from the ownership, purchase or sale of an equity interest or from the rescission, or, in Quebec, the annulment, of a purchase or sale of an equity interest, or (e) contribution or indemnity in respect of a claim referred to in any of paragraphs (a) to (d); C. 36 “equity interest” « intérêt relatif à des capitaux propres » “equity interest” means Amend (a) in the case of a corporation other than an income trust, a share in the corporation — or a warrant or option or another right to acquire a share in the corporation — other than one that is derived from a convertible debt, and (b) in the case of an income trust, a unit in the income trust — or a warrant or option or another right to acquire a unit in the income trust — other than one that is derived from a convertible debt; “shareholder” « actionnaire » “shareholder” includes a member of a corporation — and, in the case of an income trust, a holder of a unit in an income trust — to which this Act applies; 2. Subsection 4(5) of the Act, as enacted by subsection 5(4) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Presumptions (5) Persons who are related to each other are deemed not to deal with each other at arm’s length while so related. For the purpose of paragraph 95(1)(b) or 96(1)(b), the persons are, in the absence of evidence to the contrary, deemed not to deal with each other at arm’s length. 3. Section 11.1 of the Act is amended by adding the following after subsection (2): Agreement to provide compilation (3) The Superintendent may enter into an agreement to provide a compilation of all or part of the information that is contained in the public record. 4. Subsection 13.3(1.1) of the French version of the Act, as enacted by subsection 11(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: 2007 Avis au surintendant Modific (1.1) S’il demande l’autorisation visée au paragraphe (1), le syndic envoie sans délai une copie de sa demande au surintendant. 5. Subsection 13.4(1) of the Act, as enacted by section 12 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Trustee may act for secured creditor 13.4 (1) No trustee may, while acting as the trustee of an estate, act for or assist a secured creditor to assert a claim against the estate or to realize or otherwise deal with a security that the secured creditor holds, unless the trustee has obtained a written opinion from independent legal counsel that the security is valid and enforceable against the estate. 1997, c. 12, s. 12 6. The portion of subsection 14.01(1) of the Act before paragraph (a) is replaced by the following: Decision affecting licence 14.01 (1) If, after making or causing to be made an inquiry or investigation into the conduct of a trustee, it appears to the Superintendent that 7. Subsections 14.02(1.1) and (1.2) of the Act, as enacted by section 15 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Summons (1.1) The Superintendent may, for the purpose of the hearing, issue a summons requiring and commanding any person named in it (a) to appear at the time and place mentioned in it; (b) to testify to all matters within their knowledge relative to the subject matter of the inquiry or investigation into the conduct of the trustee; and C. 36 Amend (c) to bring and produce any books, records, data, documents or papers — including those in electronic form — in their possession or under their control relative to the subject matter of the inquiry or investigation. Effect throughout Canada (1.2) A person may be summoned from any part of Canada by virtue of a summons issued under subsection (1.1). 8. Paragraph 14.03(2)(b) of the French version of the Act, as enacted by subsection 16(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: b) la tenue des investigations ou des enquêtes prévues à l’alinéa 5(3)e); 9. (1) Paragraph 14.06(1.1)(c) of the French version of the Act, as enacted by section 17 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: c) les autres personnes qui sont nommément habilitées à prendre — ou ont pris légalement — la possession ou la responsabilité d’un bien acquis ou utilisé par une personne insolvable ou un failli dans le cadre de ses affaires. (2) Subsection 14.06(1.2) of the Act, as enacted by section 17 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: No personal liability in respect of matters before appointment (1.2) Despite anything in federal or provincial law, if a trustee, in that position, carries on the business of a debtor or continues the employment of a debtor’s employees, the trustee is not by reason of that fact personally liable in respect of a liability, including one as a successor employer, (a) that is in respect of the employees or former employees of the debtor or a predecessor of the debtor or in respect of a pension plan for the benefit of those employees; and (b) that exists before the trustee is appointed or that is calculated by reference to a period before the appointment. 1997, c. 12, s. 15(1) (3) Subsection 14.06(1.3) of the Act is replaced by the following: Modific Status of liability (1.3) A liability referred to in subsection (1.2) is not to rank as costs of administration. Liability of other successor employers (1.4) Subsection (1.2) does not affect the liability of a successor employer other than the trustee. 10. Subsections 30(5) and (6) of the Act, as enacted by section 23 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Related persons (5) For the purpose of subsection (4), in the case of a bankrupt other than an individual, a person who is related to the bankrupt includes (a) a director or officer of the bankrupt; (b) a person who has or has had, directly or indirectly, control in fact of the bankrupt; and (c) a person who is related to a person described in paragraph (a) or (b). Factors to be considered (6) In deciding whether to grant the authorization, the court is to consider, among other things, (a) whether the process leading to the proposed sale or disposition of the property was reasonable in the circumstances; (b) the extent to which the creditors were consulted; (c) the effects of the proposed sale or disposition on creditors and other interested parties; (d) whether the consideration to be received for the property is reasonable and fair, taking into account the market value of the property; (e) whether good faith efforts were made to sell or otherwise dispose of the property to persons who are not related to the bankrupt; and (f) whether the consideration to be received is superior to the consideration that would be received under any other offer made in accordance with the process leading to the proposed sale or disposition of the property. C. 36 Amend 11. Subsection 36(1) of the French version of the Act, as enacted by section 28 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Devoirs de l’ancien syndic en cas de substitution 36. (1) À la nomination d’un syndic substitué, le syndic qui l’a précédé soumet immédiatement ses comptes au tribunal et remet au syndic substitué tous les biens de l’actif, avec tous les livres, registres et documents du failli et ceux qui sont relatifs à l’administration de l’actif. Il lui remet également un état complet des recettes provenant des biens du failli ou d’autres sources, intérêts y compris, et de ses débours et dépenses, ainsi que de la rémunération qu’il réclame. L’état est accompagné d’un document contenant la description détaillée de tous les biens du failli qui n’ont pas été vendus ou réalisés, où sont indiqués, en plus de leur valeur, le motif pour lequel ils ne l’ont pas été, ainsi que la façon dont il en a été disposé. 1997, c. 12, s. 25(2) 12. Subsection 41(8.1) of the Act is replaced by the following: Investigation not precluded (8.1) Nothing in subsection (8) is to be construed as preventing an inquiry, investigation or proceeding in respect of a trustee under subsection 14.01(1). 13. Section 46 of the Act is amended by adding the following after subsection (2): Place of filing (3) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor. 14. (1) Subsection 47(1) of the Act, as enacted by subsection 30(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Appointment of interim receiver 47. (1) If the court is satisfied that a notice is about to be sent or was sent under subsection 244(1), it may, subject to subsection (3), appoint a trustee as interim receiver of all or any part of the debtor’s property that is subject to the security to which the notice relates until the earliest of Modific (a) the taking of possession by a receiver, within the meaning of subsection 243(2), of the debtor’s property over which the interim receiver was appointed, (b) the taking of possession by a trustee of the debtor’s property over which the interim receiver was appointed, and (c) the expiry of 30 days after the day on which the interim receiver was appointed or of any period specified by the court. 1992, c. 27, s. 16(1) (2) Subsection 47(2) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following: (c) take conservatory measures; and (d) summarily dispose of property that is perishable or likely to depreciate rapidly in value. (3) Section 47 of the Act is amended by adding the following after subsection (3): Place of filing (4) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor. 15. (1) Subsection 47.1(1.1) of the Act, as enacted by subsection 31(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Duration of appointment (1.1) The appointment expires on the earliest of (a) the taking of possession by a receiver, within the meaning of subsection 243(2), of the debtor’s property over which the interim receiver was appointed, (b) the taking of possession by a trustee of the debtor’s property over which the interim receiver was appointed, and (c) court approval of the proposal. C. 36 1992, c. 27, s. 16(1) (2) Subsection 47.1(2) of the Act is amended by striking out the word “and” at the end of paragraph (c) and by replacing paragraph (d) with the following: Amend (d) take conservatory measures; and (e) summarily dispose of property that is perishable or likely to depreciate rapidly in value. (3) Section 47.1 of the Act is amended by adding the following after subsection (3): Place of filing (4) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor. 16. (1) Paragraph 50(6)(a) of the Act, as enacted by subsection 34(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (a) a statement — or a revised cash-flow statement if a cash-flow statement had previously been filed under subsection 50.4(2) in respect of that insolvent person — (in this section referred to as a “cash-flow statement”) indicating the projected cashflow of the insolvent person on at least a monthly basis, prepared by the person making the proposal, reviewed for its reasonableness by the trustee and signed by the trustee and the person making the proposal; 1992, c. 27, s. 18(4) (2) Paragraph 50(10)(a) of the Act is replaced by the following: (a) file a report on the state of the insolvent person’s business and financial affairs — containing the prescribed information, if any — (i) with the official receiver without delay after ascertaining a material adverse change in the insolvent person’s projected cash-flow or financial circumstances, and (ii) with the court at any time that the court may order; and 1992, c. 27, s. 18(4) (3) Paragraph 50(10)(b) of the Act is replaced by the following: Modific (b) send, in the prescribed manner, a report on the state of the insolvent person’s business and financial affairs — containing the trustee’s opinion as to the reasonableness of a decision, if any, to include in a proposal a provision that sections 95 to 101 do not apply in respect of the proposal and containing the prescribed information, if any — to the creditors and the official receiver at least 10 days before the day on which the meeting of creditors referred to in subsection 51(1) is to be held. 17. (1) Paragraph 50.4(2)(a) of the Act, as enacted by subsection 35(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (a) a statement (in this section referred to as a “cash-flow statement”) indicating the projected cash-flow of the insolvent person on at least a monthly basis, prepared by the insolvent person, reviewed for its reasonableness by the trustee under the notice of intention and signed by the trustee and the insolvent person; 1992, c. 27, s. 19 (2) Paragraph 50.4(7)(b) of the English version of the Act is replaced by the following: (b) shall file a report on the state of the insolvent person’s business and financial affairs — containing the prescribed information, if any — (i) with the official receiver without delay after ascertaining a material adverse change in the insolvent person’s projected cash-flow or financial circumstances, and (ii) with the court at or before the hearing by the court of any application under subsection (9) and at any other time that the court may order; and 18. Section 50.6 of the Act, as enacted by section 36 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Order — interim financing 50.6 (1) On application by a debtor in respect of whom a notice of intention was filed under section 50.4 or a proposal was filed under subsection 62(1) and on notice to the secured creditors who are likely to be affected by the C. 36 Amend security or charge, a court may make an order declaring that all or part of the debtor’s property is subject to a security or charge — in an amount that the court considers appropriate — in favour of a person specified in the order who agrees to lend to the debtor an amount approved by the court as being required by the debtor, having regard to the debtor’s cash-flow statement referred to in paragraph 50(6)(a) or 50.4(2)(a), as the case may be. The security or charge may not secure an obligation that exists before the order is made. Individuals (2) In the case of an individual, (a) they may not make an application under subsection (1) unless they are carrying on a business; and (b) only property acquired for or used in relation to the business may be subject to a security or charge. Priority (3) The court may order that the security or charge rank in priority over the claim of any secured creditor of the debtor. Priority — previous orders (4) The court may order that the security or charge rank in priority over any security or charge arising from a previous order made under subsection (1) only with the consent of the person in whose favour the previous order was made. Factors to be considered (5) In deciding whether to make an order, the court is to consider, among other things, (a) the period during which the debtor is expected to be subject to proceedings under this Act; (b) how the debtor’s business and financial affairs are to be managed during the proceedings; (c) whether the debtor’s management has the confidence of its major creditors; (d) whether the loan would enhance the prospects of a viable proposal being made in respect of the debtor; Modific (e) the nature and value of the debtor’s property; (f) whether any creditor would be materially prejudiced as a result of the security or charge; and (g) the trustee’s report referred to in paragraph 50(6)(b) or 50.4(2)(b), as the case may be. 1992, c. 27, s. 22 19. Paragraph 54(2)(d) of the Act is replaced by the following: (d) the proposal is deemed to be accepted by the creditors if, and only if, all classes of unsecured creditors — other than, unless the court orders otherwise, a class of creditors having equity claims — vote for the acceptance of the proposal by a majority in number and two thirds in value of the unsecured creditors of each class present, personally or by proxy, at the meeting and voting on the resolution. 20. The Act is amended by adding the following after section 54: Class — creditors having equity claims 54.1 Despite paragraphs 54(2)(a) and (b), creditors having equity claims are to be in the same class of creditors in relation to those claims unless the court orders otherwise and may not, as members of that class, vote at any meeting unless the court orders otherwise. 21. Section 59 of the Act is amended by adding the following after subsection (3): Court may order amendment (4) If a court approves a proposal, it may order that the debtor’s constating instrument be amended in accordance with the proposal to reflect any change that may lawfully be made under federal or provincial law. 1992, c. 27, s. 24(2) 22. Subsection 60(5) of the Act is replaced by the following: Power of court (5) Subject to subsections (1) to (1.7), the court may either approve or refuse to approve the proposal. C. 36 Amend 23. Subsection 62(2.1) of the Act, as enacted by subsection 41(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: When insolvent person is released from debt (2.1) A proposal accepted by the creditors and approved by the court does not release the insolvent person from any particular debt or liability referred to in subsection 178(1) unless the proposal explicitly provides for the compromise of that debt or liability and the creditor in relation to that debt or liability voted for the acceptance of the proposal. 24. Sections 64.1 and 64.2 of the Act, as enacted by section 42 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Security or charge relating to director’s indemnification 64.1 (1) On application by a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) and on notice to the secured creditors who are likely to be affected by the security or charge, a court may make an order declaring that all or part of the property of the person is subject to a security or charge — in an amount that the court considers appropriate — in favour of any director or officer of the person to indemnify the director or officer against obligations and liabilities that they may incur as a director or officer after the filing of the notice of intention or the proposal, as the case may be. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the person. Restriction — indemnification insurance (3) The court may not make the order if in its opinion the person could obtain adequate indemnification insurance for the director or officer at a reasonable cost. Negligence, misconduct or fault (4) The court shall make an order declaring that the security or charge does not apply in respect of a specific obligation or liability incurred by a director or officer if in its opinion the obligation or liability was incurred as a result of the director’s or officer’s gross Modific negligence or wilful misconduct or, in Quebec, the director’s or officer’s gross or intentional fault. Court may order security or charge to cover certain costs 64.2 (1) On notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) is subject to a security or charge, in an amount that the court considers appropriate, in respect of the fees and expenses of (a) the trustee, including the fees and expenses of any financial, legal or other experts engaged by the trustee in the performance of the trustee’s duties; (b) any financial, legal or other experts engaged by the person for the purpose of proceedings under this Division; and (c) any financial, legal or other experts engaged by any other interested person if the court is satisfied that the security or charge is necessary for the effective participation of that person in proceedings under this Division. Priority Individual (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the person. (3) In the case of an individual, (a) the court may not make the order unless the individual is carrying on a business; and (b) only property acquired for or used in relation to the business may be subject to a security or charge. 1992, c. 27, s. 30; 1997, c. 12, s. 41(2) “eligible financial contract” « contrat financier admissible » 25. The definition “eligible financial contract” in subsection 65.1(8) of the Act is replaced by the following: “eligible financial contract” means an agreement of a prescribed kind; 26. Section 65.11 of the Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: C. 36 Disclaimer or resiliation of agreements 65.11 (1) Subject to subsections (3) and (4), a debtor in respect of whom a notice of intention was filed under section 50.4 or a proposal was filed under subsection 62(1) may — on notice given in the prescribed form and manner to the other parties to the agreement and the trustee — disclaim or resiliate any agreement to which the debtor is a party on the day on which the notice of intention or proposal was filed. The debtor may not give notice unless the trustee approves the proposed disclaimer or resiliation. Individuals Amend (2) In the case of an individual, (a) they may not disclaim or resiliate an agreement under subsection (1) unless they are carrying on a business; and (b) only an agreement in relation to the business may be disclaimed or resiliated. Court may prohibit disclaimer or resiliation (3) Within 15 days after the day on which the debtor gives notice under subsection (1), a party to the agreement may, on notice to the other parties to the agreement and the trustee, apply to a court for an order that the agreement is not to be disclaimed or resiliated. Court ordered disclaimer or resiliation (4) If the trustee does not approve the proposed disclaimer or resiliation, the debtor may, on notice to the other parties to the agreement and the trustee, apply to a court for an order that the agreement be disclaimed or resiliated. Factors to be considered (5) In deciding whether to make the order, the court is to consider, among other things, (a) whether the trustee approved the proposed disclaimer or resiliation; (b) whether the disclaimer or resiliation would enhance the prospects of a viable proposal being made in respect of the debtor; and (c) whether the disclaimer or resiliation would likely cause significant financial hardship to a party to the agreement. Date of disclaimer or resiliation (6) An agreement is disclaimed or resiliated (a) if no application is made under subsection (3), on the day that is 30 days after the day on which the debtor gives notice under subsection (1); Modific (b) if the court dismisses the application made under subsection (3), on the day that is 30 days after the day on which the debtor gives notice under subsection (1) or any later day fixed by the court; or (c) if the court orders that the agreement is disclaimed or resiliated under subsection (4), on the day that is 30 days after the day on which the debtor gives notice or any later day fixed by the court. Intellectual property (7) If the debtor has granted a right to use intellectual property to a party to an agreement, the disclaimer or resiliation does not affect the party’s right to use the intellectual property — including the party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the party extends the agreement as of right, as long as the party continues to perform its obligations under the agreement in relation to the use of the intellectual property. Loss related to disclaimer or resiliation (8) If an agreement is disclaimed or resiliated, a party to the agreement who suffers a loss in relation to the disclaimer or resiliation is considered to have a provable claim. Reasons for disclaimer or resiliation (9) A debtor shall, on request by a party to the agreement, provide in writing the reasons for the proposed disclaimer or resiliation within five days after the day on which the party requests them. Exceptions (10) This section does not apply in respect of (a) an eligible financial contract within the meaning of subsection 65.1(8); (b) a lease referred to in subsection 65.2(1); (c) a collective agreement; (d) a financing agreement if the debtor is the borrower; or (e) a lease of real property or of an immovable if the debtor is the lessor. 27. Section 65.13 of the Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: C. 36 Restriction on disposition of assets 65.13 (1) An insolvent person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) may not sell or otherwise dispose of assets outside the ordinary course of business unless authorized to do so by a court. Despite any requirement for shareholder approval, including one under federal or provincial law, the court may authorize the sale or disposition even if shareholder approval was not obtained. Individuals (2) In the case of carrying on a business, the sale or disposition acquired for or used in Notice to secured creditors (3) An insolvent person who applies to the court for an authorization shall give notice of the application to the secured creditors who are likely to be affected by the proposed sale or disposition. Factors to be considered (4) In deciding whether to grant the authorization, the court is to consider, among other things, Amend an individual who is the court may authorize only if the assets were relation to the business. (a) whether the process leading to the proposed sale or disposition was reasonable in the circumstances; (b) whether the trustee approved the process leading to the proposed sale or disposition; (c) whether the trustee filed with the court a report stating that in their opinion the sale or disposition would be more beneficial to the creditors than a sale or disposition under a bankruptcy; (d) the extent to which the creditors were consulted; (e) the effects of the proposed sale or disposition on the creditors and other interested parties; and (f) whether the consideration to be received for the assets is reasonable and fair, taking into account their market value. 2007 Additional factors — related persons Modific (5) If the proposed sale or disposition is to a person who is related to the insolvent person, the court may, after considering the factors referred to in subsection (4), grant the authorization only if it is satisfied that (a) good faith efforts were made to sell or otherwise dispose of the assets to persons who are not related to the insolvent person; and (b) the consideration to be received is superior to the consideration that would be received under any other offer made in accordance with the process leading to the proposed sale or disposition. Related persons (6) For the purpose of subsection (5), a person who is related to the insolvent person includes (a) a director or officer of the insolvent person; (b) a person who has or has had, directly or indirectly, control in fact of the insolvent person; and (c) a person who is related to a person described in paragraph (a) or (b). Assets may be disposed of free and clear (7) The court may authorize a sale or disposition free and clear of any security, charge or other restriction and, if it does, it shall also order that other assets of the insolvent person or the proceeds of the sale or disposition be subject to a security, charge or other restriction in favour of the creditor whose security, charge or other restriction is to be affected by the order. Restriction — employers (8) The court may grant the authorization only if the court is satisfied that the insolvent person can and will make the payments that would have been required under paragraphs 60(1.3)(a) and (1.5)(a) if the court had approved the proposal. 28. (1) Subsection 66(1.1) of the Act, as enacted by section 45 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Assignments (1.1) For the purposes of subsection (1), in deciding whether to make an order under subsection 84.1(1), the court is to consider, in C. 36 Amend addition to the factors referred to in subsection 84.1(3), whether the trustee approved the proposed assignment. (2) Subsection 66(1.3) of the Act, as enacted by section 45 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Examination by official receiver (1.3) For the purposes of subsection (1), the examination under oath by the official receiver under subsection 161(1) is to be held — on the attendance of the person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) — before the proposal is approved by the court or the person becomes bankrupt. Division to be applied conjointly with other Acts (1.4) The provisions of this Division may be applied together with the provisions of an Act of Parliament, or of the legislature of a province, that authorizes or provides for the sanction of compromises or arrangements between a corporation and its shareholders or any class of its shareholders. 29. Subsection 66.28(2.1) of the Act, as enacted by section 51 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: When consumer debtor is released from debt (2.1) A consumer proposal accepted, or deemed accepted, by the creditors and approved, or deemed approved, by the court does not release the consumer debtor from any particular debt or liability referred to in subsection 178(1) unless the consumer proposal explicitly provides for the compromise of that debt or liability and the creditor in relation to that debt or liability voted for the acceptance of the consumer proposal. 30. Subsections 66.31(2) to (10) of the Act, as enacted by section 52 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Deemed annulment — amendment withdrawn or refused (2) If an amendment to a consumer proposal filed before the deemed annulment of the consumer proposal under subsection (1) is withdrawn or refused by the creditors or the court, the consumer proposal is deemed to be annulled at the time that the amendment is withdrawn or refused. 2007 Duties of administrator in relation to deemed annulment Modific (3) Without delay after a consumer proposal is deemed to be annulled, the administrator shall (a) file with the official receiver a report in the prescribed form in relation to the deemed annulment; and (b) send a notice to the creditors informing them of the deemed annulment. Effects of deemed annulment — consumer proposal made by a bankrupt (4) If a consumer proposal made by a bankrupt is deemed to be annulled, (a) the consumer debtor is deemed to have made an assignment on the day on which the consumer proposal is deemed to be annulled; (b) the trustee who is the administrator of the consumer proposal shall, within five days after the day on which the consumer proposal is deemed to be annulled, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, despite section 14, affirm the appointment of the trustee or appoint another trustee in lieu of that trustee; and (c) the trustee shall, without delay, file with the official receiver, in the prescribed form, a report of the deemed annulment and the official receiver shall, without delay, issue a certificate of assignment, in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed under section 49. Validity of things done before deemed annulment (5) A deemed annulment of a consumer proposal does not prejudice the validity of any sale or disposition of property or payment duly made, or anything duly done under or in pursuance of the consumer proposal and, despite the deemed annulment, a guarantee given under the consumer proposal remains in full force and effect in accordance with its terms. Notice of possibility of consumer proposal being automatically revived (6) In the case of a deemed annulment of a consumer proposal made by a person other than a bankrupt, if the administrator considers it appropriate to do so in the circumstances, he or she may, with notice to the official receiver, send to the creditors — within 30 days, or any other number of days that is prescribed, after the day on which the consumer proposal was deemed to be annulled — a notice in the C. 36 Amend prescribed form informing them that the consumer proposal will be automatically revived 60 days, or any other number of days that is prescribed, after the day on which it was deemed to be annulled unless one of them files with the administrator, in the prescribed manner, a notice of objection to the revival. Automatic revival (7) If the notice is sent by the administrator and no notice of objection is filed during the period referred to in subsection (6), the consumer proposal is automatically revived on the expiry of that period. Notice if no automatic revival (8) If a notice of objection is filed during the period referred to in subsection (6), the administrator is to send, without delay, to the official receiver and to each creditor a notice in the prescribed form informing them that the consumer proposal is not going to be automatically revived on the expiry of that period. Administrator may apply to court to revive consumer proposal (9) The administrator may at any time apply to the court, with notice to the official receiver and the creditors, for an order reviving any consumer proposal of a consumer debtor who is not a bankrupt that was deemed to be annulled, and the court, if it considers it appropriate to do so in the circumstances, may make an order reviving the consumer proposal, on any terms that the court considers appropriate. Duty of administrator if consumer proposal is revived (10) Without delay after a consumer proposal is revived, the administrator shall (a) file with the official receiver a report in the prescribed form in relation to the revival; and (b) send a notice to the creditors informing them of the revival. 31. Section 66.34 of the Act is amended by adding the following after subsection (6): Eligible financial contracts (7) Subsection (1) does not apply in respect of an eligible financial contract. Existing eligible financial contracts (8) For greater certainty, if an eligible financial contract, entered into before a consumer proposal is filed, is terminated on or after the filing of the proposal, the setting off or compensation of obligations — between the Modific consumer debtor and the other parties to the eligible financial contract, in accordance with its provisions — is permitted and, if net termination values determined in accordance with the eligible financial contract are owed by the consumer debtor to another party to the eligible financial contract, the other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of the net termination values. Definitions (9) In this section, “eligible financial contract” and “net termination value” have the same meanings as in subsection 65.1(8). 32. (1) Paragraphs 67(1)(b) to (b.3) of the same statute, as enacted by subsection 57(1) of Chapter 47 of the Statutes of Canada, 2005, are replaced by the following: (b) any property that as against the bankrupt is exempt from execution or seizure under any laws applicable in the province within which the property is situated and within which the bankrupt resides; (b.1) goods and services tax credit payments that are made in prescribed circumstances to the bankrupt and that are not property referred to in paragraph (a) or (b); (b.2) prescribed payments relating to the essential needs of an individual that are made in prescribed circumstances to the bankrupt and that are not property referred to in paragraph (a) or (b); or (b.3) without restricting the generality of paragraph (b), property in a registered retirement savings plan or a registered retirement income fund, as those expressions are defined in the Income Tax Act, or in any prescribed plan, other than property contributed to any such plan or fund in the 12 months before the date of bankruptcy, (2) Paragraph 67(1)(c) of the Act, as enacted by subsection 57(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: C. 36 Amend (c) all property wherever situated of the bankrupt at the date of the bankruptcy or that may be acquired by or devolve on the bankrupt before their discharge, including any refund owing to the bankrupt under the Income Tax Act in respect of the calendar year — or the fiscal year of the bankrupt if it is different from the calendar year — in which the bankrupt became a bankrupt, except the portion that (i) is not subject to the operation of this Act, or (ii) in the case of a bankrupt who is the judgment debtor named in a garnishee summons served on Her Majesty under the Family Orders and Agreements Enforcement Assistance Act, is garnishable money that is payable to the bankrupt and is to be paid under the garnishee summons, and 33. (1) The portion of the definition “total income” in subsection 68(2) of the Act before paragraph (b), as enacted by subsection 58(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: “total income” « revenu total » “total income” (a) includes, despite paragraphs 67(1)(b) and (b.3), a bankrupt’s revenues of whatever nature or from whatever source that are earned or received by the bankrupt between the date of the bankruptcy and the date of the bankrupt’s discharge, including those received as damages for wrongful dismissal, received as a pay equity settlement or received under an Act of Parliament, or of the legislature of a province, that relates to workers’ compensation; but (2) The definition “surplus income” in subsection 68(2) of the English version of the Act, as enacted by subsection 58(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: “surplus income” « revenu excédentaire » “surplus income” means the portion of a bankrupt individual’s total income that exceeds that which is necessary to enable the bankrupt individual to maintain a reasonable standard of living, having regard to the applicable standards established under subsection (1). Modific (3) Subsection 68(4) of the French version of the Act, as enacted by subsection 58(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Obligations du syndic par suite de la décision (4) Il avise, de la manière prescrite, le séquestre officiel et les créanciers qui en font la demande de sa conclusion et, s’il conclut que le failli a un revenu excédentaire, il fixe, conformément aux normes applicables, la somme que celui-ci doit verser à l’actif de la faillite et prend les mesures indiquées pour qu’il s’exécute. (4) Subsection 68(7) of the English version of the Act, as enacted by subsection 58(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Creditor may request mediation (7) On a creditor’s request made within 30 days after the day on which the trustee informed the creditor of the amount fixed under subsection (4) or (5.1), the trustee shall, within five days after the day on which the 30-day period ends, send to the official receiver a request, in the prescribed form, that the matter of the amount that the bankrupt is required to pay be determined by mediation and send a copy of the request to the bankrupt and the creditor. (5) Subsections 68(14) and (15) of the Act, as enacted by subsection 58(4) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Application is a proceeding (14) For the purposes of section 38, an application referred to in subsection (10) is deemed to be a proceeding for the benefit of the estate. Property included for enforcement purposes (15) For the purpose of this section, a requirement that a bankrupt pay an amount to the estate is enforceable against the bankrupt’s total income. When obligation to pay ceases (16) If an opposition to the automatic discharge of a bankrupt individual who is required to pay an amount to the estate is filed, the bankrupt’s obligation under this section ceases on the day on which the bankrupt would have been automatically discharged had the opposition not been filed, but nothing in this C. 36 Amend subsection precludes the court from determining that the bankrupt is required to pay to the estate an amount that the court considers appropriate. 1992, c. 27, s. 36(1) 34. The portion of subsection 69(1) of the Act before paragraph (a) is replaced by the following: Stay of proceedings — notice of intention 69. (1) Subject to subsections (2) and (3) and sections 69.4, 69.5 and 69.6, on the filing of a notice of intention under section 50.4 by an insolvent person, 1992, c. 27, s. 36(1); 1997, c. 12, s. 63(1) 35. The portion of subsection 69.1(1) of the Act before paragraph (a) is replaced by the following: Stay of proceedings — Division I proposals 69.1 (1) Subject to subsections (2) to (6) and sections 69.4, 69.5 and 69.6, on the filing of a proposal under subsection 62(1) in respect of an insolvent person, 36. Subsection 69.3(1) of the French version of the Act, as enacted by subsection 62(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Suspension des procédures en cas de faillite 69.3 (1) Sous réserve des paragraphes (1.1) et (2) et des articles 69.4 et 69.5, à compter de la faillite du débiteur, ses créanciers n’ont aucun recours contre lui ou contre ses biens et ils ne peuvent intenter ou continuer aucune action, mesure d’exécution ou autre procédure en vue du recouvrement de réclamations prouvables en matière de faillite. 37. The Act is amended by adding the following after section 69.5: Meaning of “regulatory body” 69.6 (1) In this section, “regulatory body” means a person or body that has powers, duties or functions relating to the enforcement or administration of an Act of Parliament or of the legislature of a province and includes a person or body that is prescribed to be a regulatory body for the purpose of this Act. Modific Regulatory bodies — sections 69 and 69.1 (2) Subject to subsection (3), no stay provided by section 69 or 69.1 affects a regulatory body’s investigation in respect of an insolvent person or an action, suit or proceeding that is taken in respect of the insolvent person by or before the regulatory body, other than the enforcement of a payment ordered by the regulatory body or the court. Exception (3) On application by the insolvent person and on notice to the regulatory body and to the persons who are likely to be affected by the order, the court may order that subsection (2) not apply in respect of one or more of the actions, suits or proceedings taken by or before the regulatory body if in the court’s opinion (a) a viable proposal could not be made in respect of the insolvent person if that subsection were to apply; and (b) it is not contrary to the public interest that the regulatory body be affected by the stay provided by section 69 or 69.1. Declaration — enforcement of a payment (4) If there is a dispute as to whether a regulatory body is seeking to enforce its rights as a creditor, the court may, on application by the insolvent person and on notice to the regulatory body, make an order declaring both that the regulatory body is seeking to enforce its rights as a creditor and that the enforcement of those rights is stayed. 38. Sections 81.3 and 81.4 of the Act, as enacted by section 67 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Security for unpaid wages, etc. — bankruptcy 81.3 (1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed wages, salaries, commissions or compensation by a bankrupt for services rendered during the period beginning on the day that is six months before the date of the initial bankruptcy event and ending on the date of the bankruptcy is secured, as of the date of the bankruptcy, to the extent of $2,000 — less any amount paid for those services by the C. 36 Amend trustee or by a receiver — by security on the bankrupt’s current assets on the date of the bankruptcy. Commissions (2) For the purposes of subsection (1), commissions payable when goods are shipped, delivered or paid for, if shipped, delivered or paid for during the period referred to in that subsection, are deemed to have been earned in that period. Security for disbursements (3) The claim of a travelling salesperson who is owed money by a bankrupt for disbursements properly incurred in and about the bankrupt’s business during the period referred to in subsection (1) is secured, as of the date of the bankruptcy, to the extent of $1,000 — less any amount paid for those disbursements by the trustee or by a receiver — by security on the bankrupt’s current assets on that date. Rank of security (4) A security under this section ranks above every other claim, right, charge or security against the bankrupt’s current assets — regardless of when that other claim, right, charge or security arose — except rights under sections 81.1 and 81.2 and amounts referred to in subsection 67(3) that have been deemed to be held in trust. Liability of trustee (5) If the trustee disposes of current assets covered by the security, the trustee is liable for the claim of the clerk, servant, travelling salesperson, labourer or worker to the extent of the amount realized on the disposition of the current assets and is subrogated in and to all rights of the clerk, servant, travelling salesperson, labourer or worker in respect of the amounts paid to that person by the trustee. Claims of officers and directors (6) No officer or director of the bankrupt is entitled to have a claim secured under this section. Non-arm’s length (7) A person who, in respect of a transaction, was not dealing at arm’s length with the bankrupt is not entitled to have a claim arising from that transaction secured by this section unless, in the opinion of the trustee, having regard to the circumstances — including the Modific remuneration for, the terms and conditions of and the duration, nature and importance of the services rendered — it is reasonable to conclude that they would have entered into a substantially similar transaction if they had been dealing with each other at arm’s length. Proof by delivery (8) A claim referred to in this section is proved by delivering to the trustee a proof of claim in the prescribed form. Definitions (9) The following definitions apply in this section. “compensation” « rémunération » “receiver” « séquestre » “compensation” includes vacation pay but does not include termination or severance pay. “receiver” means a receiver within the meaning of subsection 243(2) or an interim receiver appointed under subsection 46(1), 47(1) or 47.1(1). Security for unpaid wages, etc. — receivership 81.4 (1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed wages, salaries, commissions or compensation by a person who is subject to a receivership for services rendered during the six months before the first day on which there was a receiver in relation to the person is secured, as of that day, to the extent of $2,000 — less any amount paid for those services by a receiver or trustee — by security on the person’s current assets that are in the possession or under the control of the receiver. Commissions (2) For the purposes of subsection (1), commissions payable when goods are shipped, delivered or paid for, if shipped, delivered or paid for during the six-month period referred to in that subsection, are deemed to have been earned in those six months. Security for disbursements (3) The claim of a travelling salesperson who is owed money by a person who is subject to a receivership for disbursements properly incurred in and about the person’s business during the six months before the first day on which there was a receiver in relation to the person is secured, as of that day, to the extent of $1,000 C. 36 Amend — less any amount paid for those disbursements by a receiver or trustee — by security on the person’s current assets that are in the possession or under the control of the receiver. Rank of security (4) A security under this section ranks above every other claim, right, charge or security against the person’s current assets — regardless of when that other claim, right, charge or security arose — except rights under sections 81.1 and 81.2. Liability of receiver (5) If the receiver takes possession or in any way disposes of current assets covered by the security, the receiver is liable for the claim of the clerk, servant, travelling salesperson, labourer or worker to the extent of the amount realized on the disposition of the current assets and is subrogated in and to all rights of the clerk, servant, travelling salesperson, labourer or worker in respect of the amounts paid to that person by the receiver. Claims of officers and directors (6) No officer or director of the person who is subject to a receivership is entitled to have a claim secured under this section. Non-arm’s length (7) A person who, in respect of a transaction, was not dealing at arm’s length with a person who is subject to a receivership is not entitled to have a claim arising from that transaction secured by this section unless, in the opinion of the receiver, having regard to the circumstances — including the remuneration for, the terms and conditions of and the duration, nature and importance of the services rendered — it is reasonable to conclude that they would have entered into a substantially similar transaction if they had been dealing with each other at arm’s length. Proof by delivery (8) A claim referred to in this section is proved by delivering to the receiver a proof of claim in the prescribed form. Definitions (9) The following definitions apply in this section. 2007 “compensation” « rémunération » “person who is subject to a receivership” « personne faisant l’objet d’une mise sous séquestre » “receiver” « séquestre » Modific “compensation” includes vacation pay but does not include termination or severance pay. “person who is subject to a receivership” means a person any of whose property is in the possession or under the control of a receiver. “receiver” means a receiver within the meaning of subsection 243(2) or an interim receiver appointed under subsection 46(1), 47(1) or 47.1(1). 39. (1) The definition “receiver” in subsection 81.6(4) of the Act, as enacted by section 67 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: “receiver” « séquestre » “receiver” means a receiver within the meaning of subsection 243(2) or an interim receiver appointed under subsection 46(1), 47(1) or 47.1(1). (2) The definition “person who is subject to a receivership” in subsection 81.6(4) of the English version of the Act, as enacted by section 67 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: “person who is subject to a receivership” « personne faisant l’objet d’une mise sous séquestre » “person who is subject to a receivership” means a person any of whose property is in the possession or under the control of a receiver. 40. Sections 84.1 and 84.2 of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Assignment of agreements Individuals 84.1 (1) On application by a trustee and on notice to every party to an agreement, a court may make an order assigning the rights and obligations of a bankrupt under the agreement to any person who is specified by the court and agrees to the assignment. (2) In the case of an individual, (a) they may not make an application under subsection (1) unless they are carrying on a business; and C. 36 Amend (b) only rights and obligations in relation to the business may be assigned. Exceptions (3) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the date of the bankruptcy; (b) an eligible financial contract within the meaning of subsection 65.1(8); or (c) a collective agreement. Factors to be considered (4) In deciding whether to make the order, the court is to consider, among other things, (a) whether the person to whom the rights and obligations are to be assigned is able to perform the obligations; and (b) whether it is appropriate to assign the rights and obligations to that person. Restriction (5) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the person’s bankruptcy, insolvency or failure to perform a nonmonetary obligation — will be remedied on or before the day fixed by the court. Copy of order (6) The applicant is to send a copy of the order to every party to the agreement. Certain rights limited 84.2 (1) No person may terminate or amend — or claim an accelerated payment or forfeiture of the term under — any agreement, including a security agreement, with a bankrupt individual by reason only of the individual’s bankruptcy or insolvency. Lease (2) If the agreement referred to in subsection (1) is a lease, the lessor may not terminate or amend, or claim an accelerated payment or forfeiture of the term under, the lease by reason only of the bankruptcy or insolvency or of the fact that the bankrupt has not paid rent in respect of any period before the time of the bankruptcy. Public utilities (3) No public utility may discontinue service to a bankrupt individual by reason only of the individual’s bankruptcy or insolvency or of the Modific fact that the bankrupt individual has not paid for services rendered or material provided before the time of the bankruptcy. Certain acts not prevented (4) Nothing in this section is to be construed as (a) prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the time of the bankruptcy; or (b) requiring the further advance of money or credit. Provisions of section override agreement (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to this section is of no force or effect. Powers of court (6) On application by a party to an agreement or by a public utility, the court may declare that this section does not apply — or applies only to the extent declared by the court — if the applicant satisfies the court that the operation of this section would likely cause the applicant significant financial hardship. Eligible financial contracts (7) Subsection (1) (a) does not apply in respect of an eligible financial contract within the meaning of subsection 65.1(8); and (b) does not prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association. 41. The heading “PREFERENCES” of the Act, as enacted by section 71 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: PREFERENCES AND TRANSFERS AT UNDERVALUE 1997, c. 12, s. 78(2); 2004, c. 25, s. 56 42. Subsections 95(1) to (2.1) of the Act are replaced by the following: C. 36 Preferences 95. (1) A transfer of property made, a provision of services made, a charge on property made, a payment made, an obligation incurred or a judicial proceeding taken or suffered by an insolvent person Amend (a) in favour of a creditor who is dealing at arm’s length with the insolvent person, or a person in trust for that creditor, with a view to giving that creditor a preference over another creditor is void as against — or, in Quebec, may not be set up against — the trustee if it is made, incurred, taken or suffered, as the case may be, during the period beginning on the day that is three months before the date of the initial bankruptcy event and ending on the date of the bankruptcy; and (b) in favour of a creditor who is not dealing at arm’s length with the insolvent person, or a person in trust for that creditor, that has the effect of giving that creditor a preference over another creditor is void as against — or, in Quebec, may not be set up against — the trustee if it is made, incurred, taken or suffered, as the case may be, during the period beginning on the day that is 12 months before the date of the initial bankruptcy event and ending on the date of the bankruptcy. Preference presumed (2) If the transfer, charge, payment, obligation or judicial proceeding referred to in paragraph (1)(a) has the effect of giving the creditor a preference, it is, in the absence of evidence to the contrary, presumed to have been made, incurred, taken or suffered with a view to giving the creditor the preference — even if it was made, incurred, taken or suffered, as the case may be, under pressure — and evidence of pressure is not admissible to support the transaction. Exception — margin deposits (2.1) In the case of a margin deposit made by a clearing member with a clearing house, the clearing member and the clearing house are deemed to be dealing with each other at arm’s length and subsection (2) does not apply. 43. Sections 96 and 96.1 of the Act, as enacted by section 73 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: 2007 Transfer at undervalue Modific 96. (1) On application by the trustee, a court may declare that a transfer at undervalue is void as against, or, in Quebec, may not be set up against, the trustee — or order that a party to the transfer or any other person who is privy to the transfer, or all of those persons, pay to the estate the difference between the value of the consideration received by the debtor and the value of the consideration given by the debtor — if (a) the party was dealing at arm’s length with the debtor and (i) the transfer occurred during the period that begins on the day that is one year before the date of the initial bankruptcy event and that ends on the date of the bankruptcy, (ii) the debtor was insolvent at the time of the transfer or was rendered insolvent by it, and (iii) the debtor intended to defraud, defeat or delay a creditor; or (b) the party was not dealing at arm’s length with the debtor and (i) the transfer occurred during the period that begins on the day that is one year before the date of the initial bankruptcy event and ends on the date of the bankruptcy, or (ii) the transfer occurred during the period that begins on the day that is five years before the date of the initial bankruptcy event and ends on the day before the day on which the period referred to in subparagraph (i) begins and (A) the debtor was insolvent at the time of the transfer or was rendered insolvent by it, or (B) the debtor intended to defraud, defeat or delay a creditor. Establishing values (2) In making the application referred to in this section, the trustee shall state what, in the trustee’s opinion, was the fair market value of the property or services and what, in the C. 36 Amend trustee’s opinion, was the value of the actual consideration given or received by the debtor, and the values on which the court makes any finding under this section are, in the absence of evidence to the contrary, the values stated by the trustee. Meaning of “person who is privy” (3) In this section, a “person who is privy” means a person who is not dealing at arm’s length with a party to a transfer and, by reason of the transfer, directly or indirectly, receives a benefit or causes a benefit to be received by another person. 1992, c. 27, s. 42(1); 2004, c. 25, s. 62 44. Sections 101.1 and 101.2 of the Act are replaced by the following: Application of sections 95 to 101 101.1 (1) Sections 95 to 101 apply, with any modifications that the circumstances require, to a proposal made under Division I of Part III unless the proposal provides otherwise. Interpretation (2) For the purposes of subsection (1), a reference in sections 95 to 101 (a) to “date of the bankruptcy” is to be read as a reference to “day on which a notice of intention is filed” or, if a notice of intention is not filed, as a reference to “day on which a proposal is filed”; and (b) to “bankrupt”, “insolvent person” or “debtor” is to be read as a reference to “debtor in respect of whom the proposal is filed”. Application of sections 95 to 101 if proposal annulled (3) If the proposal is annulled by the court under subsection 63(1) or as a result of a bankruptcy order or assignment, sections 95 to 101 apply as though the debtor became bankrupt on the date of the initial bankruptcy event. 45. Subsection 109(6) of the Act, as enacted by subsection 80(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Vote of creditors not dealing at arm’s length (6) If the chair is of the opinion that the outcome of a vote was determined by the vote of a creditor who did not deal with the debtor at arm’s length at any time during the period that begins on the day that is one year before the date of the initial bankruptcy event and that Modific ends on the date of the bankruptcy, the chair shall redetermine the outcome by excluding the creditor’s vote. The redetermined outcome is the outcome of the vote unless a court, on application within 10 days after the day on which the chair redetermined the outcome of the vote, considers it appropriate to include the creditor’s vote and determines another outcome. 46. The Act is amended by adding the following after section 115: Court order — interlocutory or permanent 115.1 In an application to revoke or vary a decision that affects or could affect the outcome of a vote, the court may make any order that it considers appropriate, including one that suspends the effect of the vote until the application is determined and one that redetermines the outcome of the vote. 2000, c. 12, s. 15 47. Subsection 137(2) of the Act is repealed. 2000, c. 12, s. 16 48. Section 138 of the Act is repealed. 49. Section 140.1 of the Act, as enacted by section 90 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Postponement of equity claims 140.1 A creditor is not entitled to a dividend in respect of an equity claim until all claims that are not equity claims have been satisfied. 2004, c. 25, s. 72(E) 50. Section 146 of the Act is replaced by the following: Application of provincial law to lessors’ rights 146. Subject to priority of ranking as provided by section 136 and subject to subsection 73(4) and section 84.1, the rights of lessors are to be determined according to the law of the province in which the leased premises are situated. 1997, c. 12, s. 91 51. (1) Subsection 149(3) of the Act is repealed. (2) Subsections 149(4) and (5) of the Act, as enacted by subsection 92(2) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: C. 36 Certain federal claims (3) Despite subsection (2), a claim may be filed for an amount payable under the following Acts or provisions within the time limit referred to in subsection (2) — or within three months after the return of income or other evidence of the facts on which the claim is based is filed or comes to the attention of the Minister of National Revenue or, in the case of an amount payable under legislation referred to in paragraph (c), the minister in that province responsible for the legislation: Amend (a) the Income Tax Act; (b) any provision of the Canada Pension Plan or Employment Insurance Act that refers to the Income Tax Act and provides for the collection of a contribution as defined in the Canada Pension Plan or an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, and of any related interest, penalties or other amounts; (c) any provincial legislation that has a purpose similar to the Income Tax Act, or that refers to that Act, to the extent that it provides for the collection of a sum, and of any related interest, penalties or other amounts, if the sum (i) has been withheld or deducted by a person from a payment to another person and is in respect of a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, or (ii) is of the same nature as a contribution under the Canada Pension Plan if the province is a “province providing a comprehensive pension plan” as defined in subsection 3(1) of the Canada Pension Plan and the provincial legislation establishes a “provincial pension plan” as defined in that subsection; (d) the Excise Tax Act; (e) the Excise Act, 2001; (f) the Customs Act; and (g) the Air Travellers Security Charge Act. No dividend allowed Modific (4) Unless the trustee retains sufficient funds to provide for payment of any claims that may be filed under legislation referred to in subsection (3), no dividend is to be declared until the expiry of three months after the trustee has filed all returns that the trustee is required to file. 52. The portion of subsection 172(2) of the Act before paragraph (a), as enacted by subsection 104(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Powers of court to refuse or suspend discharge or grant conditional discharge (2) The court shall, on proof of any of the facts referred to in section 173, which proof may be given orally under oath, by affidavit or otherwise, 53. (1) The portion of subsection 172.1(1) of the French version of the Act before paragraph (a), as enacted by section 105 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Exception — failli ayant une dette fiscale 172.1 (1) Dans le cas d’un failli qui a une dette fiscale impayée d’un montant de deux cent mille dollars ou plus représentant soixantequinze pour cent ou plus de la totalité des réclamations non garanties prouvées, l’audition de la demande de libération ne peut se tenir avant l’expiration : (2) Subsection 172.1(8) of the Act, as enacted by section 105 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Meaning of “personal income tax debt” (8) For the purpose of this section, “personal income tax debt” means the amount payable, within the meaning of subsection 223(1) of the Income Tax Act without reference to paragraphs (b) to (c), by an individual and the amount payable by an individual under any provincial legislation that imposes a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, including, for greater certainty, the amount of any interest, penalties or fines imposed under the Income Tax Act or C. 36 Amend the provincial legislation. It does not include an amount payable by the individual if the individual is or was a director of a corporation and the amount relates to an obligation of the corporation for which the director is liable in their capacity as director. 54. Paragraph 178(1)(e) of the Act, as enacted by subsection 107(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (e) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim; 1997, c. 12, s. 114 55. Section 216 of the Act is repealed. 56. Subsection 219(1) of the Act is replaced by the following: Application for consolidation order 219. (1) A debtor who resides in a province in respect of which this Part applies may apply to the clerk of the court having jurisdiction where they reside for a consolidation order. 2002, c. 7, s. 85 57. Section 242 of the Act is replaced by the following: Application of this Part 242. (1) The Governor in Council shall, at the request of the lieutenant governor in council of a province, declare, by order, that this Part applies or ceases to apply, as the case may be, in respect of the province. Automatic application (2) Subject to an order being made under subsection (1) declaring that this Part ceases to apply in respect of a province, if this Part is in force in the province immediately before that subsection comes into force, this Part applies in respect of the province. 58. (1) Subsections 243(1) and (2) of the Act, as enacted by subsection 115(1) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: 2007 Court may appoint receiver Modific 243. (1) Subject to subsection (1.1), on application by a secured creditor, a court may appoint a receiver to do any or all of the following if it considers it to be just or convenient to do so: (a) take possession of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt; (b) exercise any control that the court considers advisable over that property and over the insolvent person’s or bankrupt’s business; or (c) take any other action that the court considers advisable. Restriction on appointment of receiver (1.1) In the case of an insolvent person in respect of whose property a notice is to be sent under subsection 244(1), the court may not appoint a receiver under subsection (1) before the expiry of 10 days after the day on which the secured creditor sends the notice unless (a) the insolvent person consents to an earlier enforcement under subsection 244(2); or (b) the court considers it appropriate to appoint a receiver before then. Definition of “receiver” (2) Subject to subsections (3) and (4), in this Part, “receiver” means a person who (a) is appointed under subsection (1); or (b) is appointed to take or takes possession or control — of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt — under (i) an agreement under which property becomes subject to a security (in this Part referred to as a “security agreement”), or C. 36 Amend (ii) a court order made under another Act of Parliament, or an Act of a legislature of a province, that provides for or authorizes the appointment of a receiver or receivermanager. 1992, c. 27, s. 89(1) (2) Subsection 243(3) of the Act is replaced by the following: Definition of “receiver” — subsection 248(2) (3) For the purposes of subsection 248(2), the definition “receiver” in subsection (2) is to be read without reference to paragraph (a) or subparagraph (b)(ii). (3) Subsection 243(4) of the Act, as enacted by subsection 115(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Trustee to be appointed (4) Only a trustee may be appointed under subsection (1) or under an agreement or order referred to in paragraph (2)(b). Place of filing (5) The application is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor. Orders respecting fees and disbursements (6) If a receiver is appointed under subsection (1), the court may make any order respecting the payment of fees and disbursements of the receiver that it considers proper, including one that gives the receiver a charge, ranking ahead of any or all of the secured creditors, over all or part of the property of the insolvent person or bankrupt in respect of the receiver’s claim for fees or disbursements, but the court may not make the order unless it is satisfied that the secured creditors who would be materially affected by the order were given reasonable notice and an opportunity to make representations. Meaning of “disbursements” (7) In subsection (6), “disbursements” does not include payments made in the operation of a business of the insolvent person or bankrupt. Modific 59. Section 275 of the Act, as enacted by section 122 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (2): Forms of cooperation (3) For the purpose of this section, cooperation may be provided by any appropriate means, including (a) the appointment of a person to act at the direction of the court; (b) the communication of information by any means considered appropriate by the court; (c) the coordination of the administration and supervision of the debtor’s assets and affairs; (d) the approval or implementation by courts of agreements concerning the coordination of proceedings; and (e) the coordination of concurrent proceedings regarding the same debtor. 60. Subsection 284(2) of the Act, as enacted by section 122 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Public policy exception (2) Nothing in this Part prevents the court from refusing to do something that would be contrary to public policy. R.S., c. C-36 COMPANIES’ CREDITORS ARRANGEMENT ACT 61. (1) The definition “shareholder” in subsection 2(1) of the Companies’ Creditors Arrangement Act, as enacted by subsection 124(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: “shareholder” « actionnaire » “shareholder” includes a member of a company — and, in the case of an income trust, a holder of a unit in an income trust — to which this Act applies; (2) The definitions “director” and “income trust” in subsection 2(1) of the Act, as enacted by subsection 124(3) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: “director” « administrateur » “income trust” « fiducie de revenu » C. 36 Amend “director” means, in the case of a company other than an income trust, a person occupying the position of director by whatever name called and, in the case of an income trust, a person occupying the position of trustee by whatever named called; “income trust” means a trust that has assets in Canada if (a) its units are listed on a prescribed stock exchange on the day on which proceedings commence under this Act, or (b) the majority of its units are held by a trust whose units are listed on a prescribed stock exchange on the day on which proceedings commence under this Act; (3) The definition “agent négociateur” in subsection 2(1) of the French version of the Act, as enacted by subsection 124(3) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: « agent négociateur » “bargaining agent” « agent négociateur » Syndicat ayant conclu une convention collective pour le compte des employés d’une compagnie. (4) Subsection 2(2) of the Act, as enacted by subsection 124(5) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Meaning of “related” and “dealing at arm’s length” (2) For the purpose of this Act, section 4 of the Bankruptcy and Insolvency Act applies for the purpose of determining whether a person is related to or dealing at arm’s length with a debtor company. 62. Paragraph 11.02(3)(b) of the French version of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: b) dans le cas de l’ordonnance visée au paragraphe (2), le demandeur le convainc en outre qu’il a agi et continue d’agir de bonne foi et avec la diligence voulue. Modific 63. (1) Subsection 11.05(1) of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Eligible financial contracts 11.05 (1) No order may be made under this Act that has the effect of staying or restraining the exercise of a right to terminate or amend an eligible financial contract or claim an accelerated payment or a forfeiture of the term under it. (2) The definition “eligible financial contract” in subsection 11.05(3) of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: “eligible financial contract” « contrat financier admissible » “eligible financial contract” means an agreement of a prescribed kind. 64. Section 11.06 of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Member of the Canadian Payments Association 11.06 No order may be made under this Act that has the effect of preventing a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for a company in accordance with the Canadian Payments Act or the by-laws or rules of that Association. 65. Sections 11.1 to 11.4 of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Meaning of “regulatory body” 11.1 (1) In this section, “regulatory body” means a person or body that has powers, duties or functions relating to the enforcement or administration of an Act of Parliament or of the legislature of a province and includes a person or body that is prescribed to be a regulatory body for the purpose of this Act. Regulatory bodies — order under section 11.02 (2) Subject to subsection (3), no order made under section 11.02 affects a regulatory body’s investigation in respect of the debtor company or an action, suit or proceeding that is taken in C. 36 Amend respect of the company by or before the regulatory body, other than the enforcement of a payment ordered by the regulatory body or the court. Exception (3) On application by the company and on notice to the regulatory body and to the persons who are likely to be affected by the order, the court may order that subsection (2) not apply in respect of one or more of the actions, suits or proceedings taken by or before the regulatory body if in the court’s opinion (a) a viable compromise or arrangement could not be made in respect of the company if that subsection were to apply; and (b) it is not contrary to the public interest that the regulatory body be affected by the order made under section 11.02. Declaration — enforcement of a payment (4) If there is a dispute as to whether a regulatory body is seeking to enforce its rights as a creditor, the court may, on application by the company and on notice to the regulatory body, make an order declaring both that the regulatory body is seeking to enforce its rights as a creditor and that the enforcement of those rights is stayed. Interim financing 11.2 (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, a court may make an order declaring that all or part of the company’s property is subject to a security or charge — in an amount that the court considers appropriate — in favour of a person specified in the order who agrees to lend to the company an amount approved by the court as being required by the company, having regard to its cash-flow statement. The security or charge may not secure an obligation that exists before the order is made. Priority — secured creditors (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. Priority — other orders (3) The court may order that the security or charge rank in priority over any security or charge arising from a previous order made Modific under subsection (1) only with the consent of the person in whose favour the previous order was made. Factors to be considered (4) In deciding whether to make an order, the court is to consider, among other things, (a) the period during which the company is expected to be subject to proceedings under this Act; (b) how the company’s business and financial affairs are to be managed during the proceedings; (c) whether the company’s management has the confidence of its major creditors; (d) whether the loan would enhance the prospects of a viable compromise or arrangement being made in respect of the company; (e) the nature and value of the company’s property; (f) whether any creditor would be materially prejudiced as a result of the security or charge; and (g) the monitor’s report referred to in paragraph 23(1)(b), if any. Assignment of agreements 11.3 (1) On application by a debtor company and on notice to every party to an agreement and the monitor, the court may make an order assigning the rights and obligations of the company under the agreement to any person who is specified by the court and agrees to the assignment. Exceptions (2) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the day on which proceedings commence under this Act; (b) an eligible financial contract within the meaning of subsection 11.05(3); or (c) a collective agreement. C. 36 Factors to be considered (3) In deciding whether to make the order, the court is to consider, among other things, Amend (a) whether the monitor approved the proposed assignment; (b) whether the person to whom the rights and obligations are to be assigned would be able to perform the obligations; and (c) whether it would be appropriate to assign the rights and obligations to that person. Restriction (4) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the company’s insolvency, the commencement of proceedings under this Act or the company’s failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court. Copy of order (5) The applicant is to send a copy of the order to every party to the agreement. Critical supplier 11.4 (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring a person to be a critical supplier to the company if the court is satisfied that the person is a supplier of goods or services to the company and that the goods or services that are supplied are critical to the company’s continued operation. Obligation to supply (2) If the court declares a person to be a critical supplier, the court may make an order requiring the person to supply any goods or services specified by the court to the company on any terms and conditions that are consistent with the supply relationship or that the court considers appropriate. Security or charge in favour of critical supplier (3) If the court makes an order under subsection (2), the court shall, in the order, declare that all or part of the property of the company is subject to a security or charge in favour of the person declared to be a critical supplier, in an amount equal to the value of the goods or services supplied under the terms of the order. 2007 Priority Modific (4) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. 66. Sections 11.51 and 11.52 of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: Security or charge relating to director’s indemnification 11.51 (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of the company is subject to a security or charge — in an amount that the court considers appropriate — in favour of any director or officer of the company to indemnify the director or officer against obligations and liabilities that they may incur as a director or officer of the company after the commencement of proceedings under this Act. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. Restriction — indemnification insurance (3) The court may not make the order if in its opinion the company could obtain adequate indemnification insurance for the director or officer at a reasonable cost. Negligence, misconduct or fault (4) The court shall make an order declaring that the security or charge does not apply in respect of a specific obligation or liability incurred by a director or officer if in its opinion the obligation or liability was incurred as a result of the director’s or officer’s gross negligence or wilful misconduct or, in Quebec, the director’s or officer’s gross or intentional fault. Court may order security or charge to cover certain costs 11.52 (1) On notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of a debtor company is subject to a security or charge — in an amount that the court considers appropriate — in respect of the fees and expenses of (a) the monitor, including the fees and expenses of any financial, legal or other experts engaged by the monitor in the performance of the monitor’s duties; C. 36 Amend (b) any financial, legal or other experts engaged by the company for the purpose of proceedings under this Act; and (c) any financial, legal or other experts engaged by any other interested person if the court is satisfied that the security or charge is necessary for their effective participation in proceedings under this Act. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. 1997, c. 12, s. 124 67. Subsections 11.8(1) and (2) of the Act are replaced by the following: No personal liability in respect of matters before appointment 11.8 (1) Despite anything in federal or provincial law, if a monitor, in that position, carries on the business of a debtor company or continues the employment of a debtor company’s employees, the monitor is not by reason of that fact personally liable in respect of a liability, including one as a successor employer, (a) that is in respect of the employees or former employees of the company or a predecessor of the company or in respect of a pension plan for the benefit of those employees; and (b) that exists before the monitor is appointed or that is calculated by reference to a period before the appointment. Status of liability (2) A liability referred to in subsection (1) shall not rank as costs of administration. Liability of other successor employers (2.1) Subsection (1) does not affect the liability of a successor employer other than the monitor. 68. Section 12 of the Act, as enacted by section 130 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Fixing deadlines 12. The court may fix deadlines for the purposes of voting and for the purposes of distributions under a compromise or arrangement. 69. Section 19 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: 2007 Claims that may be dealt with by a compromise or arrangement Modific 19. (1) Subject to subsection (2), the only claims that may be dealt with by a compromise or arrangement in respect of a debtor company are (a) claims that relate to debts or liabilities, present or future, to which the company is subject on the earlier of (i) the day on which proceedings commenced under this Act, and (ii) if the company filed a notice of intention under section 50.4 of the Bankruptcy and Insolvency Act or commenced proceedings under this Act with the consent of inspectors referred to in section 116 of the Bankruptcy and Insolvency Act, the date of the initial bankruptcy event within the meaning of section 2 of that Act; and (b) claims that relate to debts or liabilities, present or future, to which the company may become subject before the compromise or arrangement is sanctioned by reason of any obligation incurred by the company before the earlier of the days referred to in subparagraphs (a)(i) and (ii). Exception (2) A compromise or arrangement in respect of a debtor company may not deal with any claim that relates to any of the following debts or liabilities unless the compromise or arrangement explicitly provides for the claim’s compromise and the creditor in relation to that debt has voted for the acceptance of the compromise or arrangement: (a) any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence; (b) any award of damages by a court in civil proceedings in respect of (i) bodily harm intentionally inflicted, or sexual assault, or (ii) wrongful death resulting from an act referred to in subparagraph (i); C. 36 Amend (c) any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in Quebec, as a trustee or an administrator of the property of others; (d) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability of the company that arises from an equity claim; or (e) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (d). 70. Subsection 20(3) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is repealed. 71. Section 22 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Company may establish classes 22. (1) A debtor company may divide its creditors into classes for the purpose of a meeting to be held under section 4 or 5 in respect of a compromise or arrangement relating to the company and, if it does so, it is to apply to the court for approval of the division before the meeting is held. Factors (2) For the purpose of subsection (1), creditors may be included in the same class if their interests or rights are sufficiently similar to give them a commonality of interest, taking into account (a) the nature of the debts, liabilities or obligations giving rise to their claims; (b) the nature and rank of any security in respect of their claims; (c) the remedies available to the creditors in the absence of the compromise or arrangement being sanctioned, and the extent to which the creditors would recover their claims by exercising those remedies; and (d) any further criteria, consistent with those set out in paragraphs (a) to (c), that are prescribed. Modific Related creditors (3) A creditor who is related to the company may vote against, but not for, a compromise or arrangement relating to the company. Class — creditors having equity claims 22.1 Despite subsection 22(1), creditors having equity claims are to be in the same class of creditors in relation to those claims unless the court orders otherwise and may not, as members of that class, vote at any meeting unless the court orders otherwise. 72. (1) Subparagraph 23(1)(a)(ii) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (ii) within five days after the day on which the order is made, (A) make the order publicly available in the prescribed manner, (B) send, in the prescribed manner, a notice to every known creditor who has a claim against the company of more than $1,000 advising them that the order is publicly available, and (C) prepare a list, showing the names and addresses of those creditors and the estimated amounts of those claims, and make it publicly available in the prescribed manner; (2) Paragraphs 23(1)(d) to (f) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, are replaced by the following: (d) file a report with the court on the state of the company’s business and financial affairs — containing the prescribed information, if any — (i) without delay after ascertaining a material adverse change in the company’s projected cash-flow or financial circumstances, (ii) not later than 45 days, or any longer period that the court may specify, after the day on which each of the company’s fiscal quarters ends, and C. 36 Amend (iii) at any other time that the court may order; (d.1) file a report with the court on the state of the company’s business and financial affairs — containing the monitor’s opinion as to the reasonableness of a decision, if any, to include in a compromise or arrangement a provision that sections 38 and 95 to 101 of the Bankruptcy and Insolvency Act do not apply in respect of the compromise or arrangement and containing the prescribed information, if any — at least seven days before the day on which the meeting of creditors referred to in section 4 or 5 is to be held; (e) advise the company’s creditors of the filing of the report referred to in any of paragraphs (b) to (d.1); (f) file with the Superintendent of Bankruptcy, in the prescribed manner and at the prescribed time, a copy of the documents specified in the regulations; (f.1) for the purpose of defraying the expenses of the Superintendent of Bankruptcy incurred in performing his or her functions under this Act, pay the prescribed levy at the prescribed time to the Superintendent for deposit with the Receiver General; (3) Paragraph 23(1)(j) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (j) make the prescribed documents publicly available in the prescribed manner and at the prescribed time and provide the company’s creditors with information as to how they may access those documents; and (4) Subsection 23(2) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Monitor not liable (2) If the monitor acts in good faith and takes reasonable care in preparing the report referred to in any of paragraphs (1)(b) to (d.1), the Modific monitor is not liable for loss or damage to any person resulting from that person’s reliance on the report. 73. Section 26 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (2): Agreement to provide compilation (3) The Superintendent of Bankruptcy may enter into an agreement to provide a compilation of all or part of the information that is contained in the public record. 74. (1) Subsection 29(2) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Rights (2) For the purpose of the inquiry or investigation, the Superintendent of Bankruptcy or any person whom he or she appoints for the purpose (a) shall have access to and the right to examine and make copies of the books, records, data, documents or papers — including those in electronic form — in the possession or under the control of a monitor under this Act; and (b) may, with the leave of the court granted on an ex parte application, examine the books, records, data, documents or papers — including those in electronic form — relating to any compromise or arrangement in respect of which this Act applies that are in the possession or under the control of any other person designated in the order granting the leave, and for that purpose may under a warrant from the court enter and search any premises. (2) Subsection 29(3) of the French version of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Personnel (3) Le surintendant des faillites peut retenir les services des experts ou autres personnes et du personnel administratif dont il estime le concours utile à l’investigation ou l’enquête et fixer leurs fonctions et leurs conditions d’emploi. La rémunération et les indemnités dues à C. 36 Amend ces personnes sont, une fois certifiées par le surintendant, imputables sur les crédits affectés à son bureau. 75. (1) Subsection 30(3) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Summons (3) The Superintendent of Bankruptcy may, for the purpose of the hearing, issue a summons requiring the person named in it (a) to appear at the time and place mentioned in it; (b) to testify to all matters within their knowledge relative to the subject matter of the inquiry or investigation into the conduct of the monitor; and (c) to bring and produce any books, records, data, documents or papers — including those in electronic form — in their possession or under their control relative to the subject matter of the inquiry or investigation. (2) Subsection 30(4) of the English version of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Effect throughout Canada (4) A person may be summoned from any part of Canada by virtue of a summons issued under subsection (3). 76. Section 32 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Disclaimer or resiliation of agreements 32. (1) Subject to subsections (2) and (3), a debtor company may — on notice given in the prescribed form and manner to the other parties to the agreement and the monitor — disclaim or resiliate any agreement to which the company is a party on the day on which proceedings commence under this Act. The company may not give notice unless the monitor approves the proposed disclaimer or resiliation. Court may prohibit disclaimer or resiliation (2) Within 15 days after the day on which the company gives notice under subsection (1), a party to the agreement may, on notice to the other parties to the agreement and the monitor, apply to a court for an order that the agreement is not to be disclaimed or resiliated. Modific Court-ordered disclaimer or resiliation (3) If the monitor does not approve the proposed disclaimer or resiliation, the company may, on notice to the other parties to the agreement and the monitor, apply to a court for an order that the agreement be disclaimed or resiliated. Factors to be considered (4) In deciding whether to make the order, the court is to consider, among other things, (a) whether the monitor approved the proposed disclaimer or resiliation; (b) whether the disclaimer or resiliation would enhance the prospects of a viable compromise or arrangement being made in respect of the company; and (c) whether the disclaimer or resiliation would likely cause significant financial hardship to a party to the agreement. Date of disclaimer or resiliation (5) An agreement is disclaimed or resiliated (a) if no application is made under subsection (2), on the day that is 30 days after the day on which the company gives notice under subsection (1); (b) if the court dismisses the application made under subsection (2), on the day that is 30 days after the day on which the company gives notice under subsection (1) or on any later day fixed by the court; or (c) if the court orders that the agreement is disclaimed or resiliated under subsection (3), on the day that is 30 days after the day on which the company gives notice or on any later day fixed by the court. Intellectual property (6) If the company has granted a right to use intellectual property to a party to an agreement, the disclaimer or resiliation does not affect the party’s right to use the intellectual property — including the party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the party extends the agreement as of right, as long as the party continues to perform its obligations under the agreement in relation to the use of the intellectual property. C. 36 Loss related to disclaimer or resiliation (7) If an agreement is disclaimed or resiliated, a party to the agreement who suffers a loss in relation to the disclaimer or resiliation is considered to have a provable claim. Reasons for disclaimer or resiliation (8) A company shall, on request by a party to the agreement, provide in writing the reasons for the proposed disclaimer or resiliation within five days after the day on which the party requests them. Exceptions Amend (9) This section does not apply in respect of (a) an eligible financial contract within the meaning of subsection 11.05(3); (b) a collective agreement; (c) a financing agreement if the company is the borrower; or (d) a lease of real property or of an immovable if the company is the lessor. 77. Section 34 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Certain rights limited 34. (1) No person may terminate or amend, or claim an accelerated payment or forfeiture of the term under, any agreement, including a security agreement, with a debtor company by reason only that proceedings commenced under this Act or that the company is insolvent. Lease (2) If the agreement referred to in subsection (1) is a lease, the lessor may not terminate or amend the lease by reason only that proceedings commenced under this Act, that the company is insolvent or that the company has not paid rent in respect of any period before the commencement of those proceedings. Public utilities (3) No public utility may discontinue service to a company by reason only that proceedings commenced under this Act, that the company is insolvent or that the company has not paid for services rendered or goods provided before the commencement of those proceedings. 2007 Certain acts not prevented Modific (4) Nothing in this section is to be construed as (a) prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the commencement of proceedings under this Act; (b) requiring the further advance of money or credit; or (c) preventing a lessor of aircraft objects under an agreement with the company from taking possession of the aircraft objects (i) if, after proceedings commence under this Act, the company defaults in protecting or maintaining the aircraft objects in accordance with the agreement, (ii) 60 days after the day on which proceedings commence under this Act unless, during that period, the company (A) remedied the default of every other obligation under the agreement, other than a default constituted by the commencement of proceedings under this Act or the breach of a provision in the agreement relating to the company’s financial condition, (B) agreed to perform the obligations under the agreement, other than an obligation not to become insolvent or an obligation relating to the company’s financial condition, until the proceedings under this Act end, and (C) agreed to perform all of the obligations arising under the agreement after the proceedings under this Act end, or (iii) if, during the period that begins on the expiry of the 60-day period and ends on the day on which proceedings under this Act end, the company defaults in performing an obligation under the agreement, other than an obligation not to become insolvent or an obligation relating to the company’s financial condition. C. 36 Provisions of section override agreement (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to this section is of no force or effect. Powers of court (6) On application by a party to an agreement or by a public utility, the court may declare that this section does not apply — or applies only to the extent declared by the court — if the applicant satisfies the court that the operation of this section would likely cause the applicant significant financial hardship. Eligible financial contracts Amend (7) Subsection (1) (a) does not apply in respect of an eligible financial contract within the meaning of subsection 11.05(3); and (b) does not prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act or the by-laws or rules of that Association. 78. Section 36 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Restriction on disposition of business assets 36. (1) A debtor company in respect of which an order has been made under this Act may not sell or otherwise dispose of assets outside the ordinary course of business unless authorized to do so by a court. Despite any requirement for shareholder approval, including one under federal or provincial law, the court may authorize the sale or disposition even if shareholder approval was not obtained. Notice to creditors (2) A company that applies to the court for an authorization is to give notice of the application to the secured creditors who are likely to be affected by the proposed sale or disposition. 2007 Factors to be considered Modific (3) In deciding whether to grant the authorization, the court is to consider, among other things, (a) whether the process leading to the proposed sale or disposition was reasonable in the circumstances; (b) whether the monitor approved the process leading to the proposed sale or disposition; (c) whether the monitor filed with the court a report stating that in their opinion the sale or disposition would be more beneficial to the creditors than a sale or disposition under a bankruptcy; (d) the extent to which the creditors were consulted; (e) the effects of the proposed sale or disposition on the creditors and other interested parties; and (f) whether the consideration to be received for the assets is reasonable and fair, taking into account their market value. Additional factors — related persons (4) If the proposed sale or disposition is to a person who is related to the company, the court may, after considering the factors referred to in subsection (3), grant the authorization only if it is satisfied that (a) good faith efforts were made to sell or otherwise dispose of the assets to persons who are not related to the company; and (b) the consideration to be received is superior to the consideration that would be received under any other offer made in accordance with the process leading to the proposed sale or disposition. Related persons (5) For the purpose of subsection (4), a person who is related to the company includes (a) a director or officer of the company; (b) a person who has or has had, directly or indirectly, control in fact of the company; and (c) a person who is related to a person described in paragraph (a) or (b). C. 36 Assets may be disposed of free and clear (6) The court may authorize a sale or disposition free and clear of any security, charge or other restriction and, if it does, it shall also order that other assets of the company or the proceeds of the sale or disposition be subject to a security, charge or other restriction in favour of the creditor whose security, charge or other restriction is to be affected by the order. Restriction — employers (7) The court may grant the authorization only if the court is satisfied that the company can and will make the payments that would have been required under paragraphs 6(4)(a) and (5)(a) if the court had sanctioned the compromise or arrangement. Amend PREFERENCES AND TRANSFERS AT UNDERVALUE Application of sections 38 and 95 to 101 of the Bankruptcy and Insolvency Act 36.1 (1) Sections 38 and 95 to 101 of the Bankruptcy and Insolvency Act apply, with any modifications that the circumstances require, in respect of a compromise or arrangement unless the compromise or arrangement provides otherwise. Interpretation (2) For the purposes of subsection (1), a reference in sections 38 and 95 to 101 of the Bankruptcy and Insolvency Act (a) to “date of the bankruptcy” is to be read as a reference to “day on which proceedings commence under this Act”; (b) to “trustee” is to be read as a reference to “monitor”; and (c) to “bankrupt”, “insolvent person” or “debtor” is to be read as a reference to “debtor company”. 79. Subsection 39(1) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Statutory Crown securities 39. (1) In relation to proceedings under this Act in respect of a debtor company, a security provided for in federal or provincial legislation for the sole or principal purpose of securing a claim of Her Majesty in right of Canada or a province or a workers’ compensation body is valid in relation to claims against the company only if, before the day on which proceedings commence, the security is registered under a Modific system of registration of securities that is available not only to Her Majesty in right of Canada or a province or a workers’ compensation body, but also to any other creditor who holds a security, and that is open to the public for information or the making of searches. 80. Section 52 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (2): Forms of cooperation (3) For the purpose of this section, cooperation may be provided by any appropriate means, including (a) the appointment of a person to act at the direction of the court; (b) the communication of information by any means considered appropriate by the court; (c) the coordination of the administration and supervision of the debtor company’s assets and affairs; (d) the approval or implementation by courts of agreements concerning the coordination of proceedings; and (e) the coordination of concurrent proceedings regarding the same debtor company. 81. Subsection 61(2) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Public policy exception (2) Nothing in this Part prevents the court from refusing to do something that would be contrary to public policy. 82. The portion of section 62 of the Act before paragraph (a), as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: Regulations 62. The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations 64 2005, c. 47, s. 1 C. 36 Amend WAGE EARNER PROTECTION PROGRAM ACT 83. Section 2 of the Wage Earner Protection Program Act is amended by adding the following after subsection (4): Related persons (5) Despite subsection 4(5) of the Bankruptcy and Insolvency Act, (a) for the purposes of paragraph 6(d), an individual is considered to deal at arm’s length with a related person if the Minister is satisfied that, having regard to the circumstances — including the terms and conditions of the individual’s employment with the former employer, their remuneration and the duration, nature and importance of the work performed for the former employer — it is reasonable to conclude that the individual would have entered into a substantially similar contract of employment with the former employer if they had been dealing with each other at arm’s length; and (b) for the purposes of subsection 21(4), individuals who are related to each other are, in the absence of evidence to the contrary, deemed not to deal with each other at arm’s length while so related. 84. Paragraph 5(a) of the Act is replaced by the following: (a) the individual’s employment terminated in the circumstances prescribed by regulation; 85. Section 6 of the Act is replaced by the following: Exceptions 6. An individual is not eligible to receive a payment in respect of any wages earned during a period in which the individual (a) was an officer or director of the former employer; (b) had a controlling interest within the meaning of the regulations in the business of the former employer; (c) occupied a managerial position within the meaning of the regulations with the former employer; or (d) was not dealing at arm’s length with Modific (i) an officer or director of the former employer, (ii) a person who had a controlling interest within the meaning of the regulations in the business of the former employer, or (iii) an individual who occupied a managerial position within the meaning of the regulations with the former employer. 86. (1) Subsection 7(1) of the Act is replaced by the following: Amount of payment 7. (1) The amount that may be paid under this Act to an individual is the amount owing to the individual for wages earned during the six months immediately before the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer, as the case may be, less any amount prescribed by regulation. In the case of a former employer who is both bankrupt and subject to a receivership, the amount owing is the greater of the amount determined in respect of the bankruptcy and the amount determined in respect of the receivership. (2) The portion of subsection 7(2) of the Act before paragraph (a) is replaced by the following: Maximum (2) The maximum amount that may be paid to an individual is the greater of the following amounts, less any amount prescribed by regulation: (3) The portion of subsection 7(2) of the English version of the Act after paragraph (b) is repealed. (4) Subsection 7(3) of the French version of the Act is replaced by the following : Affectation des prestations (3) Sauf disposition réglementaire contraire, les prestations versées au titre de la présente loi ne sont affectées à l’indemnité de vacances qu’après affectation à tous les autres éléments du salaire. 87. Sections 8 to 14 of the Act are replaced by the following: C. 36 Application 8. To receive a payment, an individual is to apply to the Minister in the manner and during the period provided for in the regulations. Minister’s determination of eligibility 9. If the Minister determines that the applicant is eligible to receive a payment, the Minister shall make the payment. Notification 10. The Minister is to inform the applicant of their eligibility or ineligibility to receive a payment. Amend REVIEW BY MINISTER Request for review 11. An applicant who is informed under section 10 may request a review of their eligibility or ineligibility, as the case may be. Review 12. The Minister may confirm, vary or rescind a determination of eligibility made under section 9. If the Minister varies the determination, the Minister shall make any payment resulting from the variation. Review is final 13. Subject to the right of appeal under section 14, the Minister’s confirmation, variation or rescission, as the case may be, is final and may not be questioned or reviewed in any court. APPEAL TO ADJUDICATOR Appeal on question of law or jurisdiction 14. The applicant may appeal the decision made by the Minister under section 12 to an adjudicator only on a question of law or jurisdiction. 88. Sections 16 and 17 of the Act are replaced by the following: Appeal on the record 16. The appeal is to be an appeal on the record and no new evidence is admissible. Adjudicator’s decision 17. The adjudicator may confirm, vary or rescind the decision made by the Minister under section 12. If the adjudicator varies the decision, the Minister shall make any payment resulting from the variation. 89. Sections 19 to 22 of the Act are replaced by the following: Modific No review by certiorari, etc. 19. No order may be made to review, prohibit or restrain and no process entered or proceeding taken to question, review, prohibit or restrain in any court — whether by way of injunction, certiorari, prohibition, quo warranto or otherwise — an action of an adjudicator under this Act. Decision is final 20. The adjudicator’s decision is final and may not be questioned or reviewed in any court. ADMINISTRATION DUTIES OF TRUSTEES AND RECEIVERS General duties 21. (1) For the purposes of this Act, a trustee or a receiver, as the case may be, shall (a) identify each individual who is owed wages that were earned during the six months immediately before the date of the bankruptcy or the first day on which there was a receiver in relation to the individual’s employer, as the case may be; (b) determine the amount of wages owing to each individual in respect of those six months; (c) inform each individual other than one who is in a class prescribed by regulation of the existence of the program established by section 4 and of the conditions under which payments may be made under this Act; (d) provide the Minister and each individual other than one who is in a class prescribed by regulation with the information prescribed by regulation in relation to the individual and with the amount of wages owing to the individual in respect of those six months; and (e) inform the Minister of when the trustee is discharged or the receiver completes their duties, as the case may be. Compliance with directions (2) A trustee or receiver shall comply with any directions of the Minister relating to the administration of this Act. Duty to assist (3) A person, other than one described in subsection (4), who has or has access to information described in paragraph (1)(d) shall, on request, provide it to the trustee or the receiver, as the case may be. C. 36 Duty to assist — payroll contractors (4) In the case of a person who is dealing at arm’s length with and providing payroll services to a bankrupt or insolvent person, they shall provide a description of the information that they do not have access to, an estimate of the cost of providing the information that they have and an estimate of the cost of providing the information that they only have access to. Fees and expenses 22. (1) The trustee’s or receiver’s fees and expenses, in relation to the performance of their duties under this Act, are to be paid out of the estate of the bankrupt employer or the property of the insolvent employer, as the case may be. Minister to pay fees and expenses (2) The Minister shall, in the circumstances prescribed by regulation, pay the fees or expenses that are prescribed by regulation. Amend 90. Section 29 of the Act is replaced by the following: Social Insurance Number 29. No person may knowingly use, communicate or allow to be communicated a Social Insurance Number that was obtained for a purpose related to an application for a payment under this Act except for the purpose of the administration or enforcement of this Act or the Income Tax Act. 91. Sections 32 and 33 of the Act are replaced by the following: Determination of overpayment 32. (1) If the Minister determines that an individual received a payment in an amount greater than the amount that they were eligible to receive, the Minister shall send them a notice (a) informing them of the determination; and (b) specifying the amount that they were not eligible to receive. Debt due to Her Majesty (2) The amount specified in the notice constitutes a debt due to Her Majesty in right of Canada and may be recovered by the Minister of National Revenue. Modific Certificate of default (3) The amount of any debt referred to in subsection (2) that remains unpaid 30 days after the day on which the notice is sent may be certified by the Minister, and registration of the certificate in the Federal Court has the same effect as a judgment of that Court for the amount specified in the certificate and all related registration costs. Garnishment 33. If the Minister is of the opinion that a person is or is about to become liable to pay an amount to an individual who is indebted to Her Majesty under section 32, the Minister may, by written notice, order the person to pay to the Receiver General on account of the individual’s liability all or part of the amount otherwise payable to the individual. 92. Section 34 of the English version of the Act is replaced by the following: No payment or partial payment 34. If the Minister determines that an individual did not receive all or part of a payment that they were eligible to receive, the Minister shall make a payment to them in an amount equal to the amount that they did not receive. 93. Sections 36 to 39 of the Act are replaced by the following: Subrogation 36. (1) If a payment is made under this Act to an individual in respect of unpaid wages, Her Majesty in right of Canada is, to the extent of the amount of the payment, subrogated to any rights the individual may have in respect of the unpaid wages against (a) the bankrupt or insolvent employer; and (b) if the bankrupt or insolvent employer is a corporation, a director of the corporation. Maintaining an action (2) For the purposes of subsection (1), Her Majesty in right of Canada may maintain an action in the name of the individual or Her Majesty in right of Canada. Amount not assignable 37. An amount that is payable under this Act is not capable of being assigned, charged, attached, anticipated or given as security and any transaction appearing to do so is void or, in Quebec, null. C. 36 Amend OFFENCES AND PENALTIES Offences 38. (1) Every person commits an offence who (a) makes a false or misleading entry, or omits to enter a material particular, in any record or book of account that contains information that supports an application under this Act; (b) in relation to an application under this Act, makes a representation that the person knows to be false or misleading; (c) in relation to an application under this Act, makes a declaration that the person knows to be false or misleading because of the nondisclosure of facts; (d) being required under this Act to provide information, does not provide it or makes a representation that the person knows to be false or misleading; (e) obtains a payment under this Act by false pretence; (f) being the payee of any cheque issued as a payment under this Act, knowingly negotiates or attempts to negotiate it knowing that the person is not entitled to the payment or any part of the payment; or (g) participates in, consents to or acquiesces in an act or omission mentioned in any of paragraphs (a) to (f). Trustees and receivers (2) Every person who fails to comply with any of the requirements of subsection 21(1), (3) or (4) commits an offence. Limitation of prosecutions (3) A prosecution for an offence under subsection (1) or (2) may be commenced at any time within six years after the day on which the subject matter of the prosecution arose. Due diligence (4) No person may be convicted of an offence under subsection (2) if the person establishes that they exercised due diligence to prevent the commission of the offence. Obstruction 39. (1) Every person commits an offence who delays or obstructs a person in the exercise of their powers or the performance of their duties under this Act. 2007 Limitation of prosecutions Modific (2) A prosecution for an offence under subsection (1) may be commenced at any time within two years after the day on which the subject matter of the prosecution arose. 94. Section 41 of the Act is replaced by the following: Regulations 41. The Governor in Council may make regulations generally for carrying out the purposes of this Act, including regulations (a) prescribing amounts for the purposes of subsection 2(1); (b) prescribing the circumstances in which employment terminated for the purposes of paragraph 5(a); (c) defining “controlling interest” and “managerial position” for the purposes of section 6; (d) prescribing amounts for the purposes of subsections 7(1) and (2); (e) respecting the allocation of payments to the different components of wages for the purposes of subsection 7(3); (f) respecting the period during which and the manner in which applications for payments are to be made under section 8; (g) respecting the period during which and the manner in which a review may be requested under section 11 or an appeal may be made under section 14; (h) prescribing the classes of individuals that the trustee or receiver is not required to inform under paragraph 21(1)(c) or to whom they are not required to provide information under paragraph 21(1)(d); (i) prescribing the information that is to be provided by trustees and receivers to the Minister and to individuals for the purposes of paragraph 21(1)(d) and the period during which and the manner in which that information is to be provided; (j) respecting the period during which and the manner in which the information referred to in paragraph 21(1)(c) and subsections 21(3) and (4) is to be provided; and C. 36 Amend (k) prescribing fees and expenses for the purposes of subsection 22(2) and the circumstances in which they are to be paid. 2005, c. 47 CHAPTER 47 OF THE STATUTES OF CANADA, 2005 95. Subsection 20(3) of chapter 47 of the Statutes of Canada, 2005 is repealed. 96. Subsection 30(2) of the Act is repealed. 97. Subsection 31(3) of the Act is repealed. 98. Section 37 of the Act is repealed. 99. Subsection 39(2) of the Act is amended by adding the following after the enacted subsection (1.6): Payment — equity claims (1.7) No proposal that provides for the payment of an equity claim is to be approved by the court unless the proposal provides that all claims that are not equity claims are to be paid in full before the equity claim is to be paid. 100. Section 103 of the Act is replaced by the following: 103. Section 170.1 of the Act is replaced by the following: Mediation required — paragraphs 173(1)(m) and (n) 170.1 (1) If the discharge of a bankrupt individual is opposed by a creditor or the trustee solely on grounds referred to in either one or both of paragraphs 173(1)(m) and (n), the trustee shall send an application for mediation, in the prescribed form, to the official receiver within five days after the day on which the bankrupt would have been automatically discharged had the opposition not been filed or within any further time after that day that the official receiver may allow. Mediation procedure (2) A mediation is to be in accordance with prescribed procedures. Court hearing (3) If the issues submitted to mediation are not resolved by the mediation or the bankrupt failed to comply with conditions that were established as a result of the mediation, the trustee shall without delay apply to the court for Modific an appointment for the hearing of the matter — and the provisions of this Part relating to applications to the court in relation to the discharge of a bankrupt apply, with any modifications that the circumstances require, in respect of an application to the court under this subsection — which hearing is to be held (a) within 30 days after the day on which the appointment is made; or (b) at a later time that is fixed by the court. Certificate of discharge (4) If the bankrupt complies with the conditions that were established as a result of the mediation, the trustee shall without delay (a) issue to the bankrupt a certificate of discharge in the prescribed form releasing the bankrupt from their debts other than those referred to in subsection 178(1); and (b) send a copy of the certificate of discharge to the Superintendent. File (5) Documents contained in a file on the mediation of a matter form part of the records referred to in subsection 11.1(2). 101. Subsection 104(3) of the Act is repealed. 102. Section 106 of the Act is repealed. 103. Section 116 of the Act is repealed. 104. Subsection 120(2) of the Act is repealed. 105. Subsection 124(3) of the Act is amended by adding the following in alphabetical order to the enacted definitions: “equity claim” « réclamation relative à des capitaux propres » “equity claim” means a claim that is in respect of an equity interest, including a claim for, among others, (a) a dividend or similar payment, (b) a return of capital, (c) a redemption or retraction obligation, C. 36 Amend (d) a monetary loss resulting from the ownership, purchase or sale of an equity interest or from the rescission, or, in Quebec, the annulment, of a purchase or sale of an equity interest, or (e) contribution or indemnity in respect of a claim referred to in any of paragraphs (a) to (d); “equity interest” « intérêt relatif à des capitaux propres » “equity interest” means (a) in the case of a company other than an income trust, a share in the company — or a warrant or option or another right to acquire a share in the company — other than one that is derived from a convertible debt, and (b) in the case of an income trust, a unit in the income trust — or a warrant or option or another right to acquire a unit in the income trust — other than one that is derived from a convertible debt; 106. Section 126 of the Act is replaced by the following: 126. Section 6 of the Act is replaced by the following: Compromises to be sanctioned by court 6. (1) If a majority in number representing two thirds in value of the creditors, or the class of creditors, as the case may be — other than, unless the court orders otherwise, a class of creditors having equity claims, — present and voting either in person or by proxy at the meeting or meetings of creditors respectively held under sections 4 and 5, or either of those sections, agree to any compromise or arrangement either as proposed or as altered or modified at the meeting or meetings, the compromise or arrangement may be sanctioned by the court and, if so sanctioned, is binding (a) on all the creditors or the class of creditors, as the case may be, and on any trustee for that class of creditors, whether secured or unsecured, as the case may be, and on the company; and (b) in the case of a company that has made an authorized assignment or against which a bankruptcy order has been made under the Modific Bankruptcy and Insolvency Act or is in the course of being wound up under the Windingup and Restructuring Act, on the trustee in bankruptcy or liquidator and contributories of the company. Court may order amendment (2) If a court sanctions a compromise or arrangement, it may order that the debtor’s constating instrument be amended in accordance with the compromise or arrangement to reflect any change that may lawfully be made under federal or provincial law. Restriction — certain Crown claims (3) Unless Her Majesty agrees otherwise, the court may sanction a compromise or arrangement only if the compromise or arrangement provides for the payment in full to Her Majesty in right of Canada or a province, within six months after court sanction of the compromise or arrangement, of all amounts that were outstanding at the time of the application for an order under section 11 or 11.02 and that are of a kind that could be subject to a demand under (a) subsection 224(1.2) of the Income Tax Act; (b) any provision of the Canada Pension Plan or the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, or an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, and of any related interest, penalties or other amounts; or (c) any provision of provincial legislation that has a purpose similar to subsection 224(1.2) of the Income Tax Act, or that refers to that subsection, to the extent that it provides for the collection of a sum, and of any related interest, penalties or other amounts, and the sum C. 36 Amend (i) has been withheld or deducted by a person from a payment to another person and is in respect of a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, or (ii) is of the same nature as a contribution under the Canada Pension Plan if the province is a “province providing a comprehensive pension plan” as defined in subsection 3(1) of the Canada Pension Plan and the provincial legislation establishes a “provincial pension plan” as defined in that subsection. Restriction — default of remittance to Crown (4) If an order contains a provision authorized by section 11.09, no compromise or arrangement is to be sanctioned by the court if, at the time the court hears the application for sanction, Her Majesty in right of Canada or a province satisfies the court that the company is in default on any remittance of an amount referred to in subsection (3) that became due after the time of the application for an order under section 11.02. Restriction — employees, etc. (5) The court may sanction a compromise or an arrangement only if (a) the compromise or arrangement provides for payment to the employees and former employees of the company, immediately after the court’s sanction, of (i) amounts at least equal to the amounts that they would have been qualified to receive under paragraph 136(1)(d) of the Bankruptcy and Insolvency Act if the company had become bankrupt on the day on which proceedings commenced under this Act, and (ii) wages, salaries, commissions or compensation for services rendered after proceedings commence under this Act and before the court sanctions the compromise or arrangement, together with, in the case of travelling salespersons, disbursements Modific properly incurred by them in and about the company’s business during the same period; and (b) the court is satisfied that the company can and will make the payments as required under paragraph (a). Restriction — pension plan (6) If the company participates in a prescribed pension plan for the benefit of its employees, the court may sanction a compromise or an arrangement in respect of the company only if (a) the compromise or arrangement provides for payment of the following amounts that are unpaid to the fund established for the purpose of the pension plan: (i) an amount equal to the sum of all amounts that were deducted from the employees’ remuneration for payment to the fund, (ii) if the prescribed pension plan is regulated by an Act of Parliament, (A) an amount equal to the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, that was required to be paid by the employer to the fund, and (B) an amount equal to the sum of all amounts that were required to be paid by the employer to the fund under a defined contribution provision, within the meaning of subsection 2(1) of the Pension Benefits Standards Act, 1985, and (iii) in the case of any other prescribed pension plan, (A) an amount equal to the amount that would be the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, that the employer would be required to pay to the fund if the prescribed plan were regulated by an Act of Parliament, and (B) an amount equal to the sum of all amounts that would have been required to be paid by the employer to the fund under a defined contribution provision, C. 36 Amend within the meaning of subsection 2(1) of the Pension Benefits Standards Act, 1985, if the prescribed plan were regulated by an Act of Parliament; and (b) the court is satisfied that the company can and will make the payments as required under paragraph (a). Non-application of subsection (6) (7) Despite subsection (6), the court may sanction a compromise or arrangement that does not allow for the payment of the amounts referred to in that subsection if it is satisfied that the relevant parties have entered into an agreement, approved by the relevant pension regulator, respecting the payment of those amounts. Payment — equity claims (8) No compromise or arrangement that provides for the payment of an equity claim is to be sanctioned by the court unless it provides that all claims that are not equity claims are to be paid in full before the equity claim is to be paid. 107. Sections 132 to 134 of the Act are replaced by the following: Wage Earner Protection Program Act 132. The Wage Earner Protection Program Act, as enacted by section 1 of this Act, applies in respect of wages owing by an employer only if (a) the employer becomes bankrupt on or after the day on which that section comes into force; or (b) all or part of the employer’s property comes into the possession or under the control of a receiver on or after the day on which that section comes into force. Bankruptcy and Insolvency Act 133. (1) An amendment to the Bankruptcy and Insolvency Act that is enacted by any of sections 2 to 5 and 7 to 106, subsection 107(1) and sections 108 to 123 of this Act applies only to a person who, on or after the day on which the amendment comes into force, is described in one of the following paragraphs: (a) the person becomes bankrupt; (b) the person files a notice of intention; Modific (c) the person files a proposal without having filed a notice of intention; (d) a proposal is made in respect of the person without the person having filed a notice of intention; (e) an interim receiver is appointed in respect of the person’s property and all or part of the person’s property comes into the possession or under the control of the interim receiver; or (f) all or part of the person’s property comes into the possession or under the control of a receiver. Subsection 107(2) Companies’ Creditors Arrangement Act (2) The amendment to the Bankruptcy and Insolvency Act that is enacted by subsection 107(2) of this Act applies only to a person who is an undischarged bankrupt on the day on which it comes into force or who becomes bankrupt on or after the day on which it comes into force. 134. An amendment to the Companies’ Creditors Arrangement Act that is enacted by any of sections 124 to 131 of this Act applies only to a debtor company in respect of whom proceedings commence under that Act on or after the day on which the amendment comes into force. 108. Sections 137 to 139 of the Act are replaced by the following: 137. Paragraph 23(2)(b) of the Canada Pension Plan is replaced by the following: (b) subsection 224(1.2) of the Income Tax Act shall apply to employer’s contributions, employee’s contributions, and related interest, penalties or other amounts, subject to sub80 C. 36 Amend sections 69(1) and 69.1(1) of the Bankruptcy and Insolvency Act and section 11.09 of the Companies’ Creditors Arrangement Act. EMPLOYMENT INSURANCE ACT 138. Paragraph 99(b) of the Employment Insurance Act is replaced by the following: (b) subsection 224(1.2) of the Income Tax Act shall apply to employer’s premiums, employee’s premiums, and related interest, penalties or other amounts, subject to subsections 69(1) and 69.1(1) of the Bankruptcy and Insolvency Act and section 11.09 of the Companies’ Creditors Arrangement Act. INCOME TAX ACT 139. The portion of subsection 224(1.2) of the Income Tax Act before paragraph (a) is replaced by the following: Garnishment (1.2) Notwithstanding any other provision of this Act, the Bankruptcy and Insolvency Act, any other enactment of Canada, any enactment of a province or any law, but subject to subsections 69(1) and 69.1(1) of the Bankruptcy and Insolvency Act and section 11.09 of the Companies’ Creditors Arrangement Act, if the Minister has knowledge or suspects that a particular person is, or will become within one year, liable to make a payment 109. Section 141 of the Act is replaced by the following: Order in council 141. Sections 1 to 131 and 136 to 139 come into force on a day or days to be fixed by order of the Governor in Council. TRANSITIONAL PROVISIONS Bankruptcy and Insolvency Act 110. An amendment to the Bankruptcy and Insolvency Act that is enacted by any of subsections 1(1) and (5) to (7), sections 3 and 6, subsection 9(3), sections 12 and 13, subsections 14(2) and (3), 15(2) and (3), 16(2) and (3) and 17(2), sections 19 to 22, 25, 31, 34, 35, 37, 42, 44, 46 to 48 and 50, Modific subsection 51(1), sections 55 to 57 and subsection 58(2) of this Act applies only to a person who, on or after the day on which the amendment comes into force, is described in one of the following paragraphs: (a) the person becomes bankrupt; (b) the person files a notice of intention; (c) the person files a proposal without having filed a notice of intention; (d) a proposal is made in respect of the person without the person having filed a notice of intention; (e) an interim receiver is appointed in respect of the person’s property and all or part of the person’s property comes into the possession or under the control of the interim receiver; or (f) all or part of the person’s property comes into the possession or under the control of a receiver. Companies’ Creditors Arrangement Act 111. The amendment to the Companies’ Creditors Arrangement Act that is enacted by section 67 of this Act applies only to a debtor company in respect of whom proceedings commence under that Act on or after the day on which the amendment comes into force. COORDINATING AMENDMENTS Bill C-52 112. (1) Subsections (2) to (25) apply if Bill C-52, introduced in the 1st session of the 39th Parliament and entitled the Budget Implementation Act, 2007 (the “other Act”), receives royal assent. C. 36 Amend (2) If subsection 94(1) of the other Act comes into force before section 25 of this Act, then section 25 of this Act is repealed. (3) If subsection 94(1) of the other Act comes into force on the same day as section 25 of this Act, then section 25 of this Act is deemed to have come into force before subsection 94(1) of the other Act. (4) On the later of the day on which subsection 94(1) of the other Act comes into force and the day on which section 26 of this Act comes into force — or, if those days are the same day, then on that day — paragraph 65.11(10)(a) of the Bankruptcy and Insolvency Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, as that section 44 is amended by that section 26, is replaced by the following: (a) an eligible financial contract; (5) If section 26 of this Act comes into force before section 95 of the other Act, then section 95 of the other Act is deemed never to have had its effects and is repealed. (6) If section 95 of the other Act comes into force on the same day as section 26 of this Act, then section 95 of the other Act is deemed to have come into force before section 26 of this Act. (7) If section 96 of the other Act comes into force before section 31 of this Act, then section 31 of this Act is repealed. (8) If section 31 of this Act comes into force before section 96 of the other Act, then (a) section 96 of the other Act is deemed never to have had its effects and is repealed; and (b) subsections 66.34(8) and (9) of the Bankruptcy and Insolvency Act are replaced by the following: Permitted actions (8) Despite section 69.2, the following actions are permitted in respect of an eligible financial contract that is entered into before the filing of a consumer proposal and is terminated on or after that filing, but only in accordance with the provisions of that contract: Modific (a) the netting or setting off or compensation of obligations between the consumer debtor and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the consumer debtor to another party to the eligible financial contract, that other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of those net termination values. (9) If section 96 of the other Act and section 31 of this Act come into force on the same day, then section 31 of this Act is deemed to have come into force before section 96 of the other Act and subsection (8) applies. (10) If section 100 of the other Act comes into force before section 40 of this Act, then (a) section 40 of this Act is deemed never to have had its effects and is repealed; and (b) sections 84.1 and 84.2 of the Bankruptcy and Insolvency Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, as that section 68 is amended by that section 100, are replaced by the following: Assignment of agreements 84.1 (1) On application by a trustee and on notice to every party to an agreement, a court may make an order assigning the rights and obligations of a bankrupt under the agreement to any person who is specified by the court and agrees to the assignment. 84 Individuals C. 36 Amend (2) In the case of an individual, (a) they may not make an application under subsection (1) unless they are carrying on a business; and (b) only rights and obligations in relation to the business may be assigned. Exceptions (3) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the date of the bankruptcy; (b) an eligible financial contract; or (c) a collective agreement. Factors to be considered (4) In deciding whether to make the order, the court is to consider, among other things, (a) whether the person to whom the rights and obligations are to be assigned is able to perform the obligations; and (b) whether it is appropriate to assign the rights and obligations to that person. Restriction (5) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the person’s bankruptcy, insolvency or failure to perform a nonmonetary obligation — will be remedied on or before the day fixed by the court. Copy of order (6) The applicant is to send a copy of the order to every party to the agreement. Certain rights limited 84.2 (1) No person may terminate or amend — or claim an accelerated payment or forfeiture of the term under — any agreement, including a security agreement, with a bankrupt individual by reason only of the individual’s bankruptcy or insolvency. Lease (2) If the agreement referred to in subsection (1) is a lease, the lessor may not terminate or amend, or claim an accelerated payment or forfeiture of the term under, the lease by reason only of the bankruptcy or insolvency or of the fact that the bankrupt has not paid rent in respect of any period before the time of the bankruptcy. 2007 Public utilities Certain acts not prevented Modific (3) No public utility may discontinue service to a bankrupt individual by reason only of the individual’s bankruptcy or insolvency or of the fact that the bankrupt individual has not paid for services rendered or material provided before the time of the bankruptcy. (4) Nothing in this section is to be construed as (a) prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the time of the bankruptcy; or (b) requiring the further advance of money or credit. Provisions of section override agreement (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to this section is of no force or effect. Powers of court (6) On application by a party to an agreement or by a public utility, the court may declare that this section does not apply — or applies only to the extent declared by the court — if the applicant satisfies the court that the operation of this section would likely cause the applicant significant financial hardship. Eligible financial contracts (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract: C. 36 Amend (a) the netting or setting off or compensation of obligations between the individual bankrupt and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the individual bankrupt with a claim provable in bankruptcy in respect of those net termination values. (11) If section 40 of this Act comes into force before section 100 of the other Act, then (a) section 100 of the other Act is deemed never to have had its effects and is repealed; (b) subsection 84.1(3) of the Bankruptcy and Insolvency Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, as that section 68 is amended by that section 40, is replaced by the following: Exceptions (3) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the date of the bankruptcy; (b) an eligible financial contract; or (c) a collective agreement. (c) subsection 84.2(7) of the Bankruptcy and Insolvency Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, as that section 68 is amended by that section 40, is replaced by the following: 2007 Eligible financial contracts Modific (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the individual bankrupt and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the individual bankrupt with a claim provable in bankruptcy in respect of those net termination values. (12) If section 100 of the other Act and section 40 of this Act come into force on the same day, then section 100 of the other Act is deemed to have come into force before section 40 of this Act and subsection (10) applies. C. 36 Amend (13) If subsection (10) or (11) applies, then section 99 of the other Act is deemed never to have had its effects and is repealed. (14) On the later of the day on which section 102 of the other Act comes into force and the day on which section 42 of this Act comes into force — or, if those days are the same day, then on that day — subsection 95(2.1) of the Bankruptcy and Insolvency Act is replaced by the following: Exception (2.1) Subsection (2) does not apply, and the parties are deemed to be dealing with each other at arm’s length, in respect of the following: (a) a margin deposit made by a clearing member with a clearing house; or (b) a transfer, charge or payment made in connection with financial collateral and in accordance with the provisions of an eligible financial contract. (15) If section 107 of the other Act comes into force before section 63 of this Act, then section 63 of this Act is deemed never to have had its effects and is repealed. (16) If section 107 of the other Act and section 63 of this Act come into force on the same day, then section 63 of this Act is deemed to have come into force before section 107 of the other Act. (17) If section 109 of the other Act comes into force before section 65 of this Act, then subsection 11.3(2) of the Companies’ Creditors Arrangement Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, as that section 128 is amended by that section 65, is replaced by the following: Exceptions (2) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the day on which proceedings commence under this Act; (b) an eligible financial contract; or Modific (c) a collective agreement. (18) If section 65 of this Act comes into force before section 109 of the other Act, then (a) section 109 of the other Act is deemed never to have had its effects and is repealed; and (b) subsection 11.3(2) of the Companies’ Creditors Arrangement Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, as that section 128 is amended by that section 65, is replaced by the following: Exceptions (2) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the day on which proceedings commence under this Act; (b) an eligible financial contract; or (c) a collective agreement. (19) If section 109 of the other Act and section 65 of this Act come into force on the same day, then section 109 of the other Act is deemed to have come into force before section 65 of this Act and subsection (17) applies. (20) If section 110 of the other Act comes into force before section 76 of this Act, then paragraph 32(9)(a) of the Companies’ Creditors Arrangement Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, as that section 131 is amended by that section 76, is replaced by the following: (a) an eligible financial contract; (21) If section 76 of this Act comes into force before section 110 of the other Act, then (a) section 110 of the other Act is deemed never to have had its effects and is repealed; and (b) paragraph 32(9)(a) of the Companies’ Creditors Arrangement Act, as enacted by section 131 of chapter 47 of the Statutes of C. 36 Amend Canada, 2005, as that section 131 is amended by that section 76, is replaced by the following: (a) an eligible financial contract; (22) If section 110 of the other Act and section 76 of this Act come into force on the same day, then section 110 of the other Act is deemed to have come into force before section 76 of this Act and subsection (20) applies. (23) If section 111 of the other Act comes into force before section 77 of this Act, then subsection 34(7) of the Companies’ Creditors Arrangement Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, as that section 131 is amended by that section 77, is replaced by the following: Eligible financial contracts (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for a company in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) The following actions are permitted in respect of an eligible financial contract that is entered into before proceedings under this Act are commenced in respect of the company and is terminated on or after that day, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the company and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and Modific (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Restriction (9) No order may be made under this Act if the order would have the effect of staying or restraining the actions permitted under subsection (8). Net termination values (10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim against the company in respect of those net termination values. Priority (11) No order may be made under this Act if the order would have the effect of subordinating financial collateral. (24) If section 77 of this Act comes into force before section 111 of the other Act, then (a) section 111 of the other Act is deemed never to have had its effects and is repealed; and (b) subsection 34(7) of the Companies’ Creditors Arrangement Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, as that section 131 is amended by that section 77, is replaced by the following: Eligible financial contracts (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for a company in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) The following actions are permitted in respect of an eligible financial contract that is entered into before proceedings under this Act are commenced in respect of the company and is terminated on or after that day, but only in accordance with the provisions of that contract: C. 36 Amend (a) the netting or setting off or compensation of obligations between the company and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Restriction (9) No order may be made under this Act if the order would have the effect of staying or restraining the actions permitted under subsection (8). Net termination values (10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim against the company in respect of those net termination values. Priority (11) No order may be made under this Act if the order would have the effect of subordinating financial collateral. (25) If section 111 of the other Act and section 77 of this Act come into force on the same day, then section 111 of the other Act is deemed to have come into force before section 77 of this Act and subsection (23) applies. COMING INTO FORCE Order in council 113. Subsections 1(1) and (5) to (7), sections 3 and 6, subsection 9(3), sections 12 and 13, subsections 14(2) and (3), 15(2) and (3), 16(2) and (3) and 17(2), sections 19 to 22, 25, 31, 34, 35, 37, 42, 44, 46 to 48 and 50, subsection 51(1), sections 55 to 57, subsection 58(2) and section 67 come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 22 An Act to amend certain Acts in relation to DNA identification ASSENTED TO 22nd JUNE, 2007 BILL C-18 SUMMARY This enactment amends the Criminal Code, the DNA Identification Act and the National Defence Act to facilitate the implementation of An Act to amend the Criminal Code, the DNA Identification Act and the National Defence Act, chapter 25 of the Statutes of Canada, 2005. The enactment makes certain technical changes to those Acts. It also (a) specifies that the provisions in section 487.051 of the Criminal Code relating to orders for the taking of samples of bodily substances for forensic DNA analysis apply to persons who are sentenced or are discharged under section 730 of, or are found not criminally responsible on account of mental disorder for, designated offences committed at any time, including before June 30, 2000, and makes similar amendments to the National Defence Act; (b) allows an order to be made under section 487.051 of the Criminal Code at a hearing whose date is set within 90 days after the day on which a person is sentenced, discharged under section 730 or found not criminally responsible on account of mental disorder, and makes similar amendments to the National Defence Act; (c) adds attempted murder and conspiracy to commit murder or to cause another person to be murdered to the offences covered by section 487.055 of the Criminal Code; (d) permits an application to be made under section 487.055 of the Criminal Code when a person is still serving a sentence of imprisonment for one of the specified offences, rather than requiring that they be serving a sentence of imprisonment of two years or more for that offence; (e) in certain circumstances, allows a court to require a person who wishes to participate in a hearing relating to an order or authorization under the Criminal Code for the taking of samples of bodily substances for forensic DNA analysis to appear by closed-circuit television or a similar means of communication; (f) allows samples of bodily substances to be taken under the Criminal Code and the National Defence Act at the place, day and time set by an order or a summons or as soon as feasible afterwards; (g) specifies that it is an offence under the Criminal Code and the National Defence Act to fail to comply with such an order or summons; (h) requires the Commissioner of the Royal Canadian Mounted Police to destroy the bodily substances collected under an order or authorization and the information transmitted with them if, in the opinion of the Attorney General or the Director of Military Prosecutions, as the case may be, the offence to which the order or authorization relates is not a designated offence; (i) enables the Commissioner to communicate internationally the information that may be communicated within Canada under subsection 6(1) of the DNA Identification Act; and Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca (j) allows the Commissioner to communicate information for the purpose of the investigation of criminal offences, and allows the subsequent communication of that information for the purpose of the investigation and prosecution of criminal offences. 55-56 ELIZABETH II —————— CHAPTER 22 An Act to amend certain Acts in relation to DNA identification [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: INTERPRETATION Definition of “other Act” 2005, c. 25 1. In this Act, “other Act” means An Act to amend the Criminal Code, the DNA Identification Act and the National Defence Act, chapter 25 of the Statutes of Canada, 2005. AMENDMENTS TO THE OTHER ACT 2. (1) Subsection 1(5.1) of the other Act is repealed. (2) Subsection 1(6.1) of the other Act is repealed. 3. Section 4 of the other Act is replaced by the following: 1998, c. 37, s. 17; 2000, c. 10, s. 14; 2002, c. 1, s. 177 4. Sections 487.052 and 487.053 of the Act are replaced by the following: Timing of order 487.053 (1) The court may make an order under section 487.051 authorizing the taking of samples of bodily substances when it imposes a sentence on a person, finds the person not criminally responsible on account of mental disorder or directs that they be discharged under section 730. Hearing (2) If the court does not consider the matter at that time, it C. 22 DNA Iden (a) shall, within 90 days after the day on which it imposes the sentence, makes the finding or directs that the person be discharged, set a date for a hearing to do so; (b) retains jurisdiction over the matter; and (c) may require the person to appear by closed-circuit television or any other means that allows the court and the person to engage in simultaneous visual and oral communication, as long as the person is given the opportunity to communicate privately with counsel if they are represented by counsel. 4. Section 7 of the other Act is repealed. 5. Section 25 of the other Act is replaced by the following: 2000, c. 10, s. 1 25. Sections 196.15 and 196.16 of the Act are replaced by the following: Timing of order 196.16 (1) The court martial may make an order under section 196.14 authorizing the taking of samples of bodily substances either when it imposes a sentence on a person or finds them not responsible on account of mental disorder or at a later date if it adjourns the proceedings after it imposes the sentence or makes the finding. Hearing by new court martial (2) If the court martial does not consider the matter at that time, (a) the Chief Military Judge shall cause the Court Martial Administrator to convene a court martial to do so; (b) the Court Martial Administrator shall, within 90 days after the day on which the sentence was imposed or the person was found not responsible on account of mental disorder, convene the court martial; and (c) for greater certainty, the person who may be made subject to the order continues to be liable to be dealt with under the Code of Service Discipline for the purpose of the hearing. Failure to appear 196.161 (1) If a person fails to appear at the place, day and time set out in an order made under subsection 196.14(4) or 196.24(4), a 2006-2007 Identification par les e military judge may issue a warrant in the prescribed form for their arrest to allow samples of bodily substances to be taken. Warrant in force (2) The warrant may be executed anywhere in or outside Canada by a peace officer who has jurisdiction in that place or over the person. The warrant remains in force until it is executed. 6. Section 30.1 of the other Act is repealed. R.S., c. C-46 CRIMINAL CODE 2000, c. 10, s. 13 7. Subsection 487.03(2) of the Criminal Code is repealed. 1998, c. 37, s. 15(1) 8. (1) Paragraph (b) of the definition “forensic DNA analysis” in section 487.04 of the Act is replaced by the following: (b) in relation to a bodily substance that is provided voluntarily in the course of an investigation of a designated offence or is taken from a person under an order made under section 487.051 or an authorization granted under section 487.055 or 487.091, or to a bodily substance referred to in paragraph 487.05(1)(b), means forensic DNA analysis of the bodily substance; (2) Paragraph (a) of the definition “primary designated offence” in section 487.04 of the Act, as enacted by subsection 1(4) of the other Act, is amended by striking out the word “and” at the end of subparagraph (xii) and by replacing subparagraph (xiii) with the following: (xiii) subsection 431.2(2) (explosive or other lethal device), (xiv) section 467.11 (participation in activities of criminal organization), (xv) section 467.12 (commission of offence for criminal organization), and (xvi) section 467.13 (instructing commission of offence for criminal organization), C. 22 DNA Iden (3) Paragraphs (a) and (b) of the definition “secondary designated offence” in section 487.04 of the Act, as enacted by subsection 1(7) of the other Act, are replaced by the following: (a) an offence under this Act that may be prosecuted by indictment — or, for section 487.051 to apply, is prosecuted by indictment — for which the maximum punishment is imprisonment for five years or more, (b) an offence under any of the following provisions of the Controlled Drugs and Substances Act that may be prosecuted by indictment — or, for section 487.051 to apply, is prosecuted by indictment — for which the maximum punishment is imprisonment for five years or more: (i) section 5 (trafficking in substance and possession for purpose of trafficking), (ii) section 6 (importing and exporting), and (iii) section 7 (production of substance), (4) Subparagraph (c)(i) of the definition “secondary designated offence” in section 487.04 of the Act, as enacted by subsection 1(7) of the other Act, is replaced by the following: (i) section 145 (escape and being at large without excuse), (i.1) section 146 (permitting or assisting escape), (i.2) section 147 (rescue or permitting escape), (i.3) section 148 (assisting prisoner of war to escape), (i.4) subsection 160(3) (bestiality in presence of or by child), (5) Paragraph (e) of the definition “secondary designated offence” in section 487.04 of the Act, as enacted by subsection 1(7) of the other Act, is replaced by the following: 2006-2007 Identification par les e (e) an attempt to commit or, other than for the purposes of subsection 487.05(1), a conspiracy to commit (i) an offence referred to in paragraph (a) or (b) — which, for section 487.051 to apply, is prosecuted by indictment, or (ii) an offence referred to in paragraph (c) or (d); 9. Section 487.051 of the Act, as enacted by section 3 of the other Act, is replaced by the following: Order — primary designated offences 487.051 (1) The court shall make an order in Form 5.03 authorizing the taking of the number of samples of bodily substances that is reasonably required for the purpose of forensic DNA analysis from a person who is convicted, discharged under section 730 or found guilty under the Youth Criminal Justice Act or the Young Offenders Act, of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of paragraph (a.1) of the definition “primary designated offence” in section 487.04 when the person is sentenced or discharged. Order — primary designated offences (2) The court shall make such an order in Form 5.03 in relation to a person who is convicted, discharged under section 730 or found guilty under the Youth Criminal Justice Act or the Young Offenders Act, of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of paragraph (a) or any of paragraphs (b) to (d) of the definition “primary designated offence” in section 487.04 when the person is sentenced or discharged. However, the court is not required to make the order if it is satisfied that the person has established that the impact of such an order on their privacy and security of the person would be grossly disproportionate to the public interest in the protection of society and the proper administration of justice, to be achieved through the early detection, arrest and conviction of offenders. C. 22 Order — persons found not criminally responsible and secondary designated offences (3) The court may, on application by the prosecutor and if it is satisfied that it is in the best interests of the administration of justice to do so, make such an order in Form 5.04 in relation to DNA Iden (a) a person who is found not criminally responsible on account of mental disorder for an offence committed at any time, including before June 30, 2000, if that offence is a designated offence when the finding is made; or (b) a person who is convicted, discharged under section 730 or found guilty under the Youth Criminal Justice Act or the Young Offenders Act, of an offence committed at any time, including before June 30, 2000, if that offence is a secondary designated offence when the person is sentenced or discharged. In deciding whether to make the order, the court shall consider the person’s criminal record, whether they were previously found not criminally responsible on account of mental disorder for a designated offence, the nature of the offence, the circumstances surrounding its commission and the impact such an order would have on the person’s privacy and security of the person and shall give reasons for its decision. Order to offender (4) When the court makes an order authorizing the taking of samples of bodily substances, it may make an order in Form 5.041 to require the person to report at the place, day and time set out in the order and submit to the taking of the samples. 1998, c. 37, s. 17 10. Section 487.054 of the Act is replaced by the following: Appeal 487.054 The offender or the prosecutor may appeal from a decision of the court under any of subsections 487.051(1) to (3). 2005, c. 25, s. 5(1) 11. (1) Paragraphs 487.055(1)(d) and (e) of the Act are replaced by the following: 2006-2007 Identification par les e (c.1) had been convicted of attempted murder or conspiracy to commit murder or to cause another person to be murdered and, on the date of the application, is serving a sentence of imprisonment for that offence; (d) had been convicted of a sexual offence within the meaning of subsection (3) and, on the date of the application, is serving a sentence of imprisonment for that offence; or (e) had been convicted of manslaughter and, on the date of the application, is serving a sentence of imprisonment for that offence. (2) Section 487.055 of the Act is amended by adding the following after subsection (3): Manner of appearance (3.01) The court may require a person who is given notice of an application under subsection (1) and who wishes to appear at the hearing to appear by closed-circuit television or any other means that allows the court and the person to engage in simultaneous visual and oral communication, as long as the person is given the opportunity to communicate privately with counsel if they are represented by counsel. 1998, c. 37, s. 17 (3) Subsection 487.055(4) of the Act is replaced by the following: Order (3.11) If the court authorizes the taking of samples of bodily substances from a person who is on conditional release and who has appeared at the hearing, it shall make an order in Form 5.041 to require the person to report at the place, day and time set out in the order and submit to the taking of the samples. Summons (4) However, if a person who is on conditional release has not appeared at the hearing, a summons in Form 5.061 setting out the information referred to in paragraphs 487.07(1)(b) to (d) shall be directed to them requiring them to report at the place, day and time set out in the summons and submit to the taking of the samples. 1998, c. 37, s. 17 (4) Subsections 487.055(7) to (10) of the Act are repealed. 12. The Act is amended by adding the following after section 487.055: C. 22 Failure to appear 487.0551 (1) If a person fails to appear at the place, day and time set out in an order made under subsection 487.051(4) or 487.055(3.11) or in a summons referred to in subsection 487.055(4) or 487.091(3), a justice of the peace may issue a warrant for their arrest in Form 5.062 to allow samples of bodily substances to be taken. Execution of warrant (2) The warrant may be executed anywhere in Canada by a peace officer who has jurisdiction in that place or over the person. The warrant remains in force until it is executed. Failure to comply with order or summons 487.0552 (1) Every person who, without reasonable excuse, fails to comply with an order made under subsection 487.051(4) or 487.055(3.11) of this Act or under subsection 196.14(4) or 196.24(4) of the National Defence Act, or with a summons referred to in subsection 487.055(4) or 487.091(3) of this Act, is guilty of DNA Iden (a) an indictable offence and liable to imprisonment for a term of not more than two years; or (b) an offence punishable on summary conviction. For greater certainty (2) For greater certainty, a lawful command that prevents a person from complying with an order or summons is a reasonable excuse if, at the time, the person is subject to the Code of Service Discipline within the meaning of subsection 2(1) of the National Defence Act. 13. (1) Subsection 487.056(1) of the Act, as enacted by section 6 of the other Act, is replaced by the following: When collection to take place 487.056 (1) Samples of bodily substances shall be taken as authorized under section 487.051 (a) at the place, day and time set out in an order made under subsection 487.051(4) or as soon as feasible afterwards; or 2006-2007 Identification par les e (b) in any other case, on the day on which the order authorizing the taking of the samples is made or as soon as feasible afterwards. 1998, c. 37, s. 17; 2000, c. 10, s. 16(1) (2) Subsections 487.056(2) and (3) of the Act are replaced by the following: When collection to take place (2) Samples of bodily substances shall be taken as authorized under section 487.055 or 487.091 (a) at the place, day and time set out in an order made under subsection 487.055(3.11) or a summons referred to in subsection 487.055(4) or 487.091(3) or as soon as feasible afterwards; or (b) in any other case, as soon as feasible after the authorization is granted. When collection to take place (3) If a person fails to appear as required by an order made under subsection 487.051(4) or 487.055(3.11) or a summons referred to in subsection 487.055(4) or 487.091(3), samples of bodily substances shall be taken (a) when the person is arrested under a warrant issued under subsection 487.0551(1) or as soon as feasible afterwards; or (b) as soon as feasible after the person appears at the place set out in the order or summons if no warrant is issued. Appeal (4) Subsections (1) to (3) apply even if the order or authorization to take the samples of bodily substances is appealed. Collection of samples (5) A peace officer who is authorized under section 487.051, 487.055 or 487.091 to take samples of bodily substances may cause the samples to be taken in any place in Canada in which the person who is subject to the order or authorization is located. Who collects samples (6) The samples shall be taken by a peace officer who has jurisdiction over the person or in the place in which the samples are taken — or a person acting under their direction — who is able, by virtue of training or experience, to take them. C. 22 2000, c. 10, s. 17 14. (1) Subsection 487.057(1) of the Act is replaced by the following: Report of peace officer 487.057 (1) A peace officer who takes samples of bodily substances from a person or who causes a person who is not a peace officer to take samples under their direction shall, as soon as feasible after the samples are taken, make a written report in Form 5.07 and cause the report to be filed with DNA Iden (a) the provincial court judge who issued the warrant under section 487.05 or granted the authorization under section 487.055 or 487.091 or another judge of that provincial court; or (b) the court that made the order under section 487.051. (2) Section 487.057 of the Act is amended by adding the following after subsection (2): Copy of report (3) A peace officer who takes the samples or causes the samples to be taken under their direction at the request of another peace officer shall send a copy of the report to the other peace officer unless that other peace officer had jurisdiction to take the samples. 2000, c. 10, s. 18 15. Section 487.058 of the Act is replaced by the following: No criminal or civil liability 487.058 No peace officer, and no person acting under a peace officer’s direction, incurs any criminal or civil liability for anything necessarily done with reasonable care and skill in the taking of samples of bodily substances from a person under a warrant issued under section 487.05, an order made under section 487.051 or an authorization granted under section 487.055 or 487.091. 2000, c. 10, s. 19(1) 16. (1) The portion of subsection 487.06(1) of the Act before paragraph (a) is replaced by the following: Investigative procedures 487.06 (1) A peace officer or a person acting under a peace officer’s direction is authorized by a warrant issued under section 487.05, an order made under section 487.051 or 2006-2007 Identification par les e an authorization granted under section 487.055 or 487.091 to take samples of bodily substances by any of the following means: 2000, c. 10, s. 19(2) (2) Subsection 487.06(3) of the Act is replaced by the following: Fingerprints (3) A peace officer who is authorized to take samples of bodily substances from a person by an order made under section 487.051 or an authorization granted under section 487.055 or 487.091, or a person acting under their direction, may take fingerprints from the person for the purpose of the DNA Identification Act. 2000, c. 10, s. 20(1) 17. The portion of subsection 487.07(1) of the Act before paragraph (a) is replaced by the following: Duty to inform 487.07 (1) Before taking samples of bodily substances from a person, or causing samples to be taken under their direction, in execution of a warrant issued under section 487.05 or an order made under section 487.051 or under an authorization granted under section 487.055 or 487.091, a peace officer shall inform the person of 18. (1) Subsection 487.071(1) of the Act, as enacted by section 8 of the other Act, is replaced by the following: Verification 487.071 (1) Before taking samples of bodily substances from a person under an order made under section 487.051 or an authorization granted under section 487.055 or 487.091, a peace officer, or a person acting under their direction, shall verify whether the convicted offenders index of the national DNA data bank, established under the DNA Identification Act, contains the person’s DNA profile. (2) Paragraph 487.071(2)(b) of the English version of the Act, as enacted by section 8 of the other Act, is replaced by the following: (b) transmit a copy of the order or authorization containing that confirmation and any other information prescribed by regulations C. 22 DNA Iden made under the DNA Identification Act to the Commissioner of the Royal Canadian Mounted Police. 19. Subsection 487.08(1.1) of the Act, as enacted by subsection 9(1) of the other Act, is replaced by the following: Use of bodily substances — order, authorization (1.1) No person shall use bodily substances that are taken in execution of an order made under section 487.051 of this Act or section 196.14 of the National Defence Act, or under an authorization granted under section 487.055 or 487.091 of this Act or section 196.24 of the National Defence Act, except to transmit them to the Commissioner of the Royal Canadian Mounted Police for the purpose of forensic DNA analysis in accordance with the DNA Identification Act. 20. (1) Paragraph 487.091(1)(a) of the Act, as enacted by section 10 of the other Act, is replaced by the following: (a) a DNA profile cannot be derived from the bodily substances that were taken from that person under an order made under section 487.051 or an authorization granted under section 487.055; or (2) Paragraph 487.091(1)(b) of the English version of the Act, as enacted by section 10 of the other Act, is replaced by the following: (b) the information or bodily substances required by regulations made under the DNA Identification Act were not transmitted in accordance with the requirements of the regulations or were lost. (3) Subsection 487.091(2) of the English version of the Act, as enacted by section 10 of the other Act, is replaced by the following: Reasons (2) The application shall state the reasons why a DNA profile cannot be derived from the bodily substances or why the information or bodily substances were not transmitted in accordance with the regulations or were lost. 2000, c. 10, s. 23 (4) Subsection 487.091(3) of the Act is replaced by the following: 2006-2007 Persons not in custody Identification par les e (3) If the court authorizes the taking of samples of bodily substances from a person who is not in custody, a summons in Form 5.061 setting out the information referred to in paragraphs 487.07(1)(b) to (d) shall be directed to the person requiring them to report at the place, day and time set out in the summons and submit to the taking of the samples. Subsections 487.055(5) and (6) apply, with any modifications that the circumstances require. 21. (1) Subsection 487.0911(1) of the Act, as enacted by section 11 of the other Act, is replaced by the following: Review by Attorney General 487.0911 (1) On receipt of a notice from the Commissioner of the Royal Canadian Mounted Police under subsection 5.2(1) of the DNA Identification Act that an order made under section 487.051 or an authorization granted under section 487.091 appears to be defective, the Attorney General shall review the order or authorization and the court record. (2) The portion of subsection 487.0911(2) of the English version of the Act before paragraph (a), as enacted by section 11 of the other Act, is replaced by the following: Clerical error (2) If the Attorney General is of the opinion that the defect is due to a clerical error, the Attorney General shall (3) Subsection 487.0911(3) of the Act, as enacted by section 11 of the other Act, is replaced by the following: Substantive defect (3) If the Attorney General is of the opinion that the offence referred to in the order or authorization is not a designated offence, the Attorney General shall inform the Commissioner of that opinion. R.S., c. 27 (1st Supp.), s. 149 22. Subsection 703(2) of the Act is replaced by the following: Warrant effective in a province (2) Despite any other provision of this Act but subject to subsections 487.0551(2) and 705(3), a warrant of arrest or committal that is issued by a justice or provincial court judge may be executed anywhere in the province in which it is issued. C. 22 DNA Iden 23. Forms 5.03 to 5.06 in Part XXVIII of the Act, as enacted by section 12 of the other Act, are replaced by the following: FORM 5.03 (Subsections 487.051(1) and (2)) ORDER AUTHORIZING THE TAKING OF BODILY SUBSTANCES FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) To the peace officers in (territorial division): Whereas (name of offender) has been convicted under the Criminal Code, discharged under section 730 of that Act or, in the case of a young person, found guilty under the Young Offenders Act, chapter Y-1 of the Revised Statutes of Canada, 1985, or the Youth Criminal Justice Act of (offence), which, on the day on which the offender was sentenced or discharged, was a primary designated offence within the meaning of section 487.04 of the Criminal Code; Therefore, you are authorized to take or cause to be taken from (name of offender) the number of samples of bodily substances that is reasonably required for forensic DNA analysis, provided that the person taking the samples is able, by virtue of training or experience, to take them by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code and that, if the person taking the samples is not a peace officer, they take them under the direction of a peace officer. This order is subject to the following terms and conditions that I consider advisable to ensure that the taking of the samples is reasonable in the circumstances: Dated this ................ day of ................ , A.D. ........ , at ................ . ............................................ (Signature of judge of the court) 2006-2007 Identification par les e FORM 5.04 (Subsection 487.051(3)) ORDER AUTHORIZING THE TAKING OF BODILY SUBSTANCES FOR FORENSIC DNA ANALYSIS Canada Province of ................. (territorial division) To the peace officers in (territorial division): Whereas (name of offender), in this order called the “offender”, (a) has been found not criminally responsible on account of mental disorder for (offence), which, on the day on which the finding was made, was a primary designated offence within the meaning of section 487.04 of the Criminal Code, or (b) has been convicted under the Criminal Code, discharged under section 730 of that Act or, in the case of a young person, found guilty under the Young Offenders Act, chapter Y-1 of the Revised Statutes of Canada, 1985, or the Youth Criminal Justice Act, of, or has been found not criminally responsible on account of mental disorder for, (offence), which, on the day on which the offender was sentenced or discharged or the finding was made, was one of the following secondary designated offences within the meaning of section 487.04 of the Criminal Code (check applicable box): [] (i) an offence under the Criminal Code for which the maximum punishment is imprisonment for five years or more and that was prosecuted by indictment, [] (ii) an offence under any of sections 5 to 7 of the Controlled Drugs and Substances Act for which the maximum punishment is imprisonment for five years or more and that was prosecuted by indictment, C. 22 DNA Iden [] (iii) an offence under any of sections 145 to 148, subsection 160(3), sections 170, 173, 252, 264, 264.1, 266 and 270, paragraph 348(1)(e) and sections 349 and 423 of the Criminal Code, [] (iv) an offence under section 433 or 434 of the Criminal Code as that section read from time to time before July 1, 1990, or [] (v) an attempt or a conspiracy to commit an offence referred to in subparagraph (i) or (ii) that was prosecuted by indictment (or, if applicable, an attempt or a conspiracy to commit an offence referred to in subparagraph (iii) or (iv)); Whereas I have considered the offender’s criminal record, the nature of the offence, the circumstances surrounding its commission, whether the offender was previously found not criminally responsible on account of mental disorder for a designated offence, and the impact that this order would have on the offender’s privacy and security of the person; And whereas I am satisfied that it is in the best interests of the administration of justice to make this order; Therefore, you are authorized to take or cause to be taken from (name of offender) the number of samples of bodily substances that is reasonably required for forensic DNA analysis, provided that the person taking the samples is able, by virtue of training or experience, to take them by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code and that, if the person taking the samples is not a peace officer, they take them under the direction of a peace officer. This order is subject to the following terms and conditions that I consider advisable to ensure that the taking of the samples is reasonable in the circumstances: 2006-2007 Identification par les e Dated this ................ day of ................, A.D. ........ , at ................ . ........................................ (Signature of judge of the court) FORM 5.041 (Subsections 487.051(4) and 487.055(3.11)) ORDER TO A PERSON TO HAVE BODILY SUBSTANCES TAKEN FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) To A.B., of ................ , Whereas an order has been made under section 487.051, or an authorization has been granted under section 487.055, of the Criminal Code, to take from you the number of samples of bodily substances that is reasonably required for forensic DNA analysis; This is therefore to command you, in Her Majesty’s name, to appear on ................ , the ................ day of ................ , A.D. ........ , at ............ o’clock, at ................ , for the purpose of the taking of bodily substances by means of the investigative procedures set out in subsection 487.06(1) of the Criminal Code. You are warned that failure to appear in accordance with this order may result in a warrant being issued for your arrest under subsection 487.0551(1) of the Criminal Code. You are also warned that failure to appear, without reasonable excuse, is an offence under subsection 487.0552(1) of that Act. Subsection 487.0551(1) of the Criminal Code states as follows: 487.0551 (1) If a person fails to appear at the place, day and time set out in an order made under subsection 487.051(4) or 487.055(3.11) or in a summons referred to in subsection 487.055(4) or 487.091(3), a justice of the peace may issue a warrant for their arrest in Form 5.062 to allow samples of bodily substances to be taken. C. 22 DNA Iden Subsection 487.0552(1) of the Criminal Code states as follows: 487.0552 (1) Every person who, without reasonable excuse, fails to comply with an order made under subsection 487.051(4) or 487.055(3.11) of this Act or under subsection 196.14(4) or 196.24(4) of the National Defence Act, or with a summons referred to in subsection 487.055(4) or 487.091(3) of this Act, is guilty of (a) an indictable offence and liable to imprisonment for a term of not more than two years; or (b) an offence punishable on summary conviction. Dated this ................ day of ................ , A.D. ........ , at ................ . ........................................... (Signature of judge of the court) FORM 5.05 (Subsection 487.055(1)) APPLICATION FOR AN AUTHORIZATION TO TAKE BODILY SUBSTANCES FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) I (name of peace officer), (occupation), of .......... in (territorial division), apply for an authorization to take bodily substances for forensic DNA analysis. A certificate referred to in paragraph 667(1)(a) of the Criminal Code is filed with this application. Whereas (name of offender), before June 30, 2000, (a) had been declared a dangerous offender under Part XXIV of the Criminal Code, 2006-2007 Identification par les e (b) had been declared a dangerous offender or a dangerous sexual offender under Part XXI of the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, as it read from time to time before January 1, 1988, (c) had been convicted of murder, (c.1) had been convicted of attempted murder or conspiracy to commit murder or to cause another person to be murdered and is currently serving a sentence of imprisonment for that offence, (d) had been convicted of a sexual offence within the meaning of subsection 487.055(3) of the Criminal Code and is currently serving a sentence of imprisonment for that offence, or (e) had been convicted of manslaughter and is currently serving a sentence of imprisonment for that offence; Therefore, I request that an authorization be granted under subsection 487.055(1) of the Criminal Code to take from (name of offender) the number of samples of bodily substances that is reasonably required for forensic DNA analysis, provided that the person taking the samples is able, by virtue of training or experience, to take them by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code and that, if the person taking the samples is not a peace officer, they take them under the direction of a peace officer. Dated this ................ day of ................ , A.D. ...... , at ............... . ......................................... (Signature of applicant) FORM 5.06 (Subsection 487.055(1)) AUTHORIZATION TO TAKE BODILY SUBSTANCES FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) C. 22 DNA Iden To the peace officers in (territorial division): Whereas (name of peace officer), a peace officer in (territorial division), has applied for an authorization to take the number of samples of bodily substances from (name of offender) that is reasonably required for forensic DNA analysis by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code; Whereas (name of offender), before June 30, 2000, (a) had been declared a dangerous offender under Part XXIV of the Criminal Code, (b) had been declared a dangerous offender or a dangerous sexual offender under Part XXI of the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, as it read from time to time before January 1, 1988, (c) had been convicted of murder, (c.1) had been convicted of attempted murder or conspiracy to commit murder or to cause another person to be murdered and, on the date of the application, was serving a sentence of imprisonment for that offence, (d) had been convicted of a sexual offence within the meaning of subsection 487.055(3) of the Criminal Code and, on the date of the application, was serving a sentence of imprisonment for that offence, or (e) had been convicted of manslaughter and, on the date of the application, was serving a sentence of imprisonment for that offence; And whereas I have considered the offender’s criminal record, the nature of the offence, the circumstances surrounding its commission and the impact that this authorization would have on the offender’s privacy and security of the person; Therefore, you are authorized to take those samples or cause them to be taken from (name of offender), provided that the person taking the samples is able, by virtue of training or experience, to take them by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code and that, if the 2006-2007 Identification par les e person taking the samples is not a peace officer, they take them under the direction of a peace officer. This authorization is subject to the following terms and conditions that I consider advisable to ensure that the taking of the samples is reasonable in the circumstances: Dated this ................ day of ................ , A.D., at ................ . ........................................ (Signature of provincial court judge) FORM 5.061 (Subsections 487.055(4) and 487.091(3)) SUMMONS TO A PERSON TO HAVE BODILY SUBSTANCES TAKEN FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) To A.B., of ................ , Whereas an authorization has been granted under section 487.055 or 487.091 of the Criminal Code to take from you the number of samples of bodily substances that is reasonably required for forensic DNA analysis; This is therefore to command you, in Her Majesty’s name, to appear on ................ , the ................ day of ................ , A.D. ........ , at ............ o’clock, at ................ , for the purpose of the taking of bodily substances by means of the investigative procedures set out in subsection 487.06(1) of the Criminal Code. A peace officer, or a person who is acting under a peace officer’s direction, who takes the samples of bodily substances may use as much force as necessary to do so. You are warned that failure to appear in accordance with this summons may result in a warrant being issued for your arrest under subsection 487.0551(1) of the Criminal Code. You are also warned that failure to appear, without reasonable excuse, is an offence under subsection 487.0552(1) of that Act. C. 22 DNA Iden Subsection 487.0551(1) of the Criminal Code states as follows: 487.0551 (1) If a person fails to appear at the place, day and time set out in an order made under subsection 487.051(4) or 487.055(3.11) or in a summons referred to in subsection 487.055(4) or 487.091(3), a justice of the peace may issue a warrant for their arrest in Form 5.062 to allow samples of bodily substances to be taken. Subsection 487.0552(1) of the Criminal Code states as follows: 487.0552 (1) Every person who, without reasonable excuse, fails to comply with an order made under subsection 487.051(4) or 487.055(3.11) of this Act or under subsection 196.14(4) or 196.24(4) of the National Defence Act, or with a summons referred to in subsection 487.055(4) or 487.091(3) of this Act, is guilty of (a) an indictable offence and liable to imprisonment for a term of not more than two years; or (b) an offence punishable on summary conviction. Dated this ................ day of ................ , A.D. ........ , at ................ . ........................................... (Signature of judge of the court) FORM 5.062 (Subsection 487.0551(1)) WARRANT FOR ARREST Canada Province of ................ (territorial division) To the peace officers in (territorial division): This warrant is issued for the arrest of A.B., of ................, (occupation), in this warrant called the “offender”. 2006-2007 Identification par les e Whereas the offender failed to appear at the place, day and time set out in an order made under subsection 487.051(4) or 487.055(3.11), or in a summons referred to in subsection 487.055(4) or 487.091(3), of the Criminal Code to submit to the taking of samples of bodily substances; This is, therefore, to command you, in Her Majesty’s name, to arrest the offender without delay in order to allow the samples of bodily substances to be taken. Dated this ................ day of ................ A.D. ........, at ................ . ........................................ A Justice of the Peace in and for ............................. 1998, c. 37, s. 24 24. Form 5.07 in Part XXVIII of the Act is replaced by the following: FORM 5.07 (Subsection 487.057(1)) REPORT TO A PROVINCIAL COURT JUDGE OR THE COURT Canada Province of ................ (territorial division) [ ] To (name of judge), a judge of the provincial court who issued a warrant under section 487.05 or granted an authorization under section 487.055 or 487.091 of the Criminal Code or to another judge of that court: [ ] To the court that made an order under section 487.051 of the Criminal Code: I (name of peace officer), declare that (state here whether the samples were taken under a warrant issued under section 487.05, an order made under section 487.051 or an authorization granted under section 487.055 or 487.091 of the Criminal Code). C. 22 DNA Iden I have (state here whether you took the samples yourself or caused them to be taken under your direction) from (name of offender) the number of samples of bodily substances that I believe is reasonably required for forensic DNA analysis, in accordance with (state whether the samples were taken under a warrant issued or an authorization granted by the judge or another judge of the court or an order made by the court). The samples were taken on the ... day of ..........., A.D. ......, at .......... o’clock. I (or state the name of the person who took the samples) took the following samples from (name of offender) in accordance with subsection 487.06(1) of the Criminal Code and was able, by virtue of training or experience, to do so (check applicable box): [] individual hairs, including the root sheath [] epithelial cells taken by swabbing the lips, tongue or inside cheeks of the mouth [] blood taken by pricking the skin surface with a sterile lancet Any terms or conditions in the (warrant, order or authorization) have been complied with. Dated this ................ day of ................ A.D. ........, at ................ . ........................................ (Signature of peace officer) 25. Forms 5.08 and 5.09 in Part XXVIII of the Act, as enacted by section 13 of the other Act, are replaced by the following: 2006-2007 Identification par les e FORM 5.08 (Subsection 487.091(1)) APPLICATION FOR AN AUTHORIZATION TO TAKE ADDITIONAL SAMPLES OF BODILY SUBSTANCES FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) I (name of peace officer), (occupation), of .......... in (territorial division), apply for an authorization to take additional samples of bodily substances for forensic DNA analysis. Whereas samples of bodily substances were taken from (name of offender) for the purpose of forensic DNA analysis under an order made under section 487.051, or an authorization granted under section 487.055, of the Criminal Code (attach a copy of the order or authorization); And whereas on (day/month/year) it was determined that (a) a DNA profile could not be derived from the samples for the following reasons: (b) the information or bodily substances required by regulations made under the DNA Identification Act were not transmitted in accordance with the requirements of the regulations or were lost for the following reasons: Therefore, I request that an authorization be granted under subsection 487.091(1) of the Criminal Code to take from (name of offender) the number of additional samples of bodily substances that is reasonably required for forensic DNA analysis, provided that the person taking the samples is able, by virtue of training or experience, to take them by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code and that, if the person taking the samples is not a peace officer, they take them under the direction of a peace officer. C. 22 DNA Iden Dated this .... day of ........ , A.D. ........ , at ............... . ......................................... (Signature of applicant) FORM 5.09 (Subsection 487.091(1)) AUTHORIZATION TO TAKE ADDITIONAL SAMPLES OF BODILY SUBSTANCES FOR FORENSIC DNA ANALYSIS Canada Province of ................ (territorial division) To the peace officers in (territorial division): Whereas samples of bodily substances were taken from (name of offender) for the purpose of forensic DNA analysis under an order made under section 487.051 or an authorization granted under section 487.055, of the Criminal Code; Whereas on (day/month/year) it was determined that (a) a DNA profile could not be derived from the samples for the following reasons: (b) the information or bodily substances required by regulations made under the DNA Identification Act were not transmitted in accordance with the requirements of the regulations or were lost for the following reasons: And whereas (name of peace officer), a peace officer in (territorial division), has applied for an authorization to take the number of additional samples of bodily substances from (name of offender) that is reasonably required for forensic DNA analysis by means of the investigative procedures described in subsection 487.06(1) of the Criminal Code; Therefore, you are authorized to take those additional samples, or cause them to be taken, from (name of offender), provided that the person taking the samples is able, by virtue of training or experience, to take them by means of the investigative procedures described in sub2006-2007 Identification par les e section 487.06(1) of the Criminal Code and that, if the person taking the samples is not a peace officer, they take them under the direction of a peace officer. This authorization is subject to the following terms and conditions that I consider advisable to ensure that the taking of the samples is reasonable in the circumstances: Dated this ................ day of ................ , A.D. ........ , at ................ . ........................................ (Signature of provincial court judge) 2000, c. 10, s. 24 1998, c. 37 26. Form 28.1 in Part XXVIII of the Act is repealed. DNA IDENTIFICATION ACT 27. The definition “order” in section 2 of the DNA Identification Act, as enacted by subsection 14(2) of the other Act, is replaced by the following: “order” « ordonnance » “order” means an order made under section 487.051 of the Criminal Code or section 196.14 of the National Defence Act. 28. Subsection 5(4) of the Act, as enacted by section 15 of the other Act, is replaced by the following: Convicted offenders index (4) The convicted offenders index shall contain DNA profiles derived from bodily substances that are taken under orders and authorizations. 2005, c. 25, s. 16 29. Subsection 5.1(3) of the Act is replaced by the following: Retention of order or authorization (3) The Commissioner shall retain the copy of the order or authorization transmitted under subsection 487.071(2) of the Criminal Code or subsection 196.22(2) of the National Defence Act. 2005, c. 25, s. 16 30. Subsection 5.2(3) of the Act is replaced by the following: C. 22 Substantive defect (3) If the Attorney General or the Director of Military Prosecutions, as the case may be, informs the Commissioner that the offence referred to in the order or authorization is not a designated offence, the Commissioner shall, without delay, destroy the bodily substances collected under the order or authorization and the information transmitted with it. 2005, c. 25, s. 17(1) 31. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following: Communication of information 6. (1) The Commissioner shall compare any DNA profile that is entered in the convicted offenders index or the crime scene index with those DNA profiles that are already contained in the data bank and may then, for the purpose of the investigation of a criminal offence, communicate the following information to any Canadian law enforcement agency or laboratory that the Commissioner considers appropriate: 2005, c. 25, s. 17(1) (2) Paragraph 6(1)(b) of the English version of the Act is replaced by the following: DNA Iden (b) if the DNA profile is already contained in the data bank, the information contained in the data bank in relation to that DNA profile; 2005, c. 25, s. 17(1) (3) Paragraph 6(1)(d) of the Act is replaced by the following: (d) if a law enforcement agency or laboratory advises the Commissioner that their comparison of a DNA profile communicated under paragraph (c) with one that is connected to the commission of a criminal offence has not excluded the former as a possible match, the information contained in the data bank in relation to that profile. 2005, c. 25, s. 17(2) (4) Subsection 6(3) of the Act is replaced by the following: Foreign law enforcement agencies (3) On receipt of a DNA profile from the government of a foreign state, an international organization established by the governments of states or an institution of such a government or international organization, the Commissioner may compare the profile with those in the DNA data bank to determine whether it is 2006-2007 Identification par les e already contained in the data bank and may then communicate to the government, organization or institution (a) the information referred to in any of paragraphs (1)(a) to (c) in the circumstances referred to in that paragraph; and (b) the information contained in the data bank in relation to a DNA profile communicated to the government, organization or institution in the circumstances set out in paragraph (1)(c) if the government, organization or institution advises the Commissioner that their comparison of that DNA profile with one that is connected to the commission of a criminal offence has not excluded the former as a possible match. 2005, c. 25, s. 17(3) (5) Subsection 6(6.1) of the Act is replaced by the following: Subsequent communication (6.1) Information that is communicated under subsection (1) may be communicated subsequently to a person to whom the communication is necessary for the purpose of the investigation or prosecution of a criminal offence. 32. Subsection 9(2) of the Act, as enacted by section 18 of the other Act, is replaced by the following: Information to be permanently removed (2) Access to information in the convicted offenders index shall be permanently removed (a) without delay after every order or authorization for the collection of bodily substances from the person to whom the information relates is finally set aside; (b) without delay after the person is finally acquitted of every designated offence in connection with which an order was made or an authorization was granted; or (c) one year after the day on which the person is discharged absolutely, or three years after the day on which they are discharged conditionally, of a designated offence under section 730 of the Criminal Code if they are not subject to an order or authorization that relates to another designated offence and are C. 22 DNA Iden neither convicted of, nor found not criminally responsible on account of mental disorder for, a designated offence during that period. 33. Subsection 10(7) of the Act, as enacted by subsection 20(3) of the other Act, is replaced by the following: Mandatory destruction in certain cases (7) The Commissioner shall destroy the stored bodily substances of a person (a) without delay after every order or authorization for the collection of bodily substances from the person is finally set aside; (b) without delay after the person is finally acquitted of every designated offence in connection with which an order was made or an authorization was granted; or (c) one year after the day on which the person is discharged absolutely, or three years after the day on which they are discharged conditionally, of a designated offence under section 730 of the Criminal Code if they are not subject to an order or authorization that relates to another designated offence and are neither convicted of, nor found not criminally responsible on account of mental disorder for, a designated offence during that period. R.S., c. N-5 NATIONAL DEFENCE ACT 34. The National Defence Act is amended by adding the following after section 119: Offence in Relation to DNA Identification Failure to comply with order or summons 119.1 (1) Every person who, without reasonable excuse, fails to comply with an order made under subsection 196.14(4) or 196.24(4) of this Act or subsection 487.051(4) or 487.055(3.11) of the Criminal Code, or with a summons referred to in subsection 487.055(4) or 487.091(3) of the Criminal Code, is guilty of an offence and on conviction is liable to imprisonment for less than two years or to less punishment. 2006-2007 Identification par les e For greater certainty (2) For greater certainty, a lawful command that prevents a person from complying with an order or summons is a reasonable excuse. 2000, c. 10, s. 1 35. Paragraph (b) of the definition “forensic DNA analysis” in section 196.11 of the Act is replaced by the following: (b) in relation to a bodily substance that is provided voluntarily in the course of an investigation of a designated offence or is taken from a person in execution of an order made under section 196.14 or under an authorization granted under section 196.24, or to a bodily substance referred to in paragraph 196.12(1)(b), means forensic DNA analysis of the bodily substance. 36. Section 196.14 of the Act, as enacted by section 24 of the other Act, is replaced by the following: Order — primary designated offences 196.14 (1) A court martial shall make an order in the prescribed form authorizing the taking of the number of samples of bodily substances that is reasonably required for the purpose of forensic DNA analysis from a person who is found guilty of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of paragraph (a.1) of the definition “primary designated offence” in section 196.11 when the person is sentenced. Order — primary designated offences (2) A court martial shall make such an order in the prescribed form in relation to a person who is found guilty of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of paragraph (a) or (b) of the definition “primary designated offence” in section 196.11 when the person is sentenced. However, the court martial is not required to make the order if it is satisfied that the person has established that the impact of such an order on their privacy and security of the person would be grossly disproportionate to the public interest in the protection of society and the proper administration of military justice, to be achieved through the early detection, arrest and conviction of offenders. C. 22 Order — persons found not responsible and secondary designated offences (3) A court martial may, on application by the prosecutor and if it is satisfied that it is in the best interests of the administration of military justice to do so, make such an order in the prescribed form in relation to DNA Iden (a) a person who is found not responsible on account of mental disorder for an offence committed at any time, including before June 30, 2000, if that offence is a designated offence when the finding is made; or (b) a person who is offence committed at before June 30, 2000, secondary designated person is sentenced. found guilty of an any time, including if that offence is a offence when the In deciding whether to make the order, the court martial shall consider the nature of the offence and the circumstances surrounding its commission, any previous convictions by a service tribunal or civil court, any previous finding of not responsible on account of mental disorder for a designated offence and the impact such an order would have on the person’s privacy and security of the person and shall give reasons for the decision. Order to offender (4) When a court martial makes an order authorizing the taking of samples of bodily substances, it may make an order in the prescribed form to require the person to report at the place, day and time set out in the order and submit to the taking of the samples. 37. (1) Subsection 196.17(1) of the Act, as enacted by subsection 26(1) of the other Act, is replaced by the following: When collection to take place 196.17 (1) Samples of bodily substances shall be taken as authorized under section 196.14 (a) at the place, day and time set out in an order made under subsection 196.14(4) or as soon as feasible afterwards; or (b) in any other case, on the day on which the order authorizing the taking of the samples is made or as soon as feasible afterwards. 2006-2007 When collection to take place Identification par les e (1.1) Samples of bodily substances shall be taken as authorized under section 196.24 (a) at the place, day and time set out in an order made under subsection 196.24(4) or as soon as feasible afterwards; or (b) in any other case, as soon as feasible after the authorization is granted. When collection to take place (1.2) If a person fails to appear as required by an order made under subsection 196.14(4) or 196.24(4), samples of bodily substances shall be taken (a) when the person is arrested under a warrant issued under subsection 196.161(1) or as soon as feasible afterwards; or (b) as soon as feasible after the person appears at the place set out in the order if no warrant is issued. Appeal (1.3) Subsections (1) to (1.2) apply even if the order or authorization to take the samples of bodily substances is appealed. 2000, c. 10, s. 1 (2) Subsection 196.17(2) of the Act is repealed. (3) Subsections 196.17(3) to (5) of the Act, as enacted by subsection 26(2) of the other Act, are replaced by the following: Collection of samples (2) A peace officer who is authorized under section 196.14 or 196.24 to take samples of bodily substances may cause the samples to be taken in any place in or outside Canada in which the person who is subject to the order or authorization is located. Who collects samples (3) The samples shall be taken by a peace officer who has jurisdiction over the person or in the place in which the samples are taken — or a person acting under their direction — who is able, by virtue of training or experience, to take them. 2000, c. 10, s. 1 38. (1) Subsection 196.18(1) of the Act is replaced by the following: Report of peace officer 196.18 (1) A peace officer who takes samples of bodily substances from a person or who causes a person who is not a peace officer to take samples under their direction shall, as soon C. 22 DNA Iden as feasible after the samples are taken, make a written report in the prescribed form and cause the report to be filed with (a) the military judge who issued the warrant under section 196.12 or 196.13 or who granted the authorization under section 196.24, or another military judge; or (b) the Court Martial Administrator, in the case of an order made by a court martial under section 196.14. (2) Section 196.18 of the Act is amended by adding the following after subsection (2): Copy of report (2.1) The peace officer who takes the samples or causes the samples to be taken under their direction at the request of another peace officer shall send a copy of the report to the other peace officer unless that other peace officer had jurisdiction to take the samples. 2000, c. 10, s. 1 39. Section 196.19 of the Act is replaced by the following: No criminal or civil liability 196.19 No peace officer, and no person acting under a peace officer’s direction, incurs any disciplinary, criminal or civil liability for anything necessarily done with reasonable care and skill in the taking of samples of bodily substances in execution of a warrant issued under section 196.12 or 196.13 or an order made under section 196.14 or under an authorization granted under section 196.24. 2000, c. 10, s. 1 40. (1) The portion of subsection 196.2(1) of the Act before paragraph (a) is replaced by the following: Investigative procedures 196.2 (1) A peace officer, or a person acting under a peace officer’s direction, is authorized by a warrant issued under section 196.12 or 196.13, an order made under section 196.14 or an authorization granted under section 196.24 to take samples of bodily substances by any of the following means: 2000, c. 10, s. 1 (2) Subsections 196.2(2) and (3) of the Act are replaced by the following: 2006-2007 Identification par les e Terms and conditions (2) The warrant or order shall include any terms and conditions that the military judge or court martial considers advisable to ensure that the taking of the samples is reasonable in the circumstances. Fingerprints (3) A peace officer who is authorized to take samples of bodily substances from a person by an order made under section 196.14 or an authorization granted under section 196.24, or a person acting under their direction, may take fingerprints from the person for the purpose of the DNA Identification Act. 2000, c. 10, s. 1 41. The portion of subsection 196.21(1) of the Act before paragraph (a) is replaced by the following: Duty to inform 196.21 (1) Before taking samples of bodily substances from a person, or causing samples to be taken under their direction, in execution of a warrant issued under section 196.12 or 196.13 or an order made under section 196.14 or under an authorization granted under section 196.24, a peace officer shall inform the person of 42. Section 196.22 of the Act, as enacted by section 27 of the other Act, is replaced by the following: Verification 196.22 (1) Before taking samples of bodily substances from a person under an order made under section 196.14 or an authorization granted under section 196.24, a peace officer, or a person acting under their direction, shall verify whether the convicted offenders index of the national DNA data bank, established under the DNA Identification Act, contains the person’s DNA profile. DNA profile in data bank (2) If the person’s DNA profile is in the convicted offenders index of the national DNA data bank, the peace officer or person acting under their direction shall not take any bodily substances from the person but shall (a) confirm in writing on the order or authorization that they have been advised that the person’s DNA profile is in the national DNA data bank; and C. 22 DNA Iden (b) transmit a copy of the order or authorization containing that confirmation and any other information prescribed by regulations made under the DNA Identification Act to the Commissioner. DNA profile not in data bank (3) If the person’s DNA profile is not in the convicted offenders index of the national DNA data bank, the peace officer or person acting under their direction shall execute the order or authorization and transmit to the Commissioner (a) any bodily substances taken; and (b) a copy of the order or authorization and any other information prescribed by regulations made under the DNA Identification Act. 43. (1) Paragraph 196.24(1)(a) of the Act, as enacted by section 28 of the other Act, is replaced by the following: (a) a DNA profile cannot be derived from the bodily substances that were taken from that person under an order made under section 196.14; or (2) Paragraph 196.24(1)(b) of the English version of the Act, as enacted by section 28 of the other Act, is replaced by the following: (b) the information or bodily substances required by regulations made under the DNA Identification Act were not transmitted in accordance with the requirements of the regulations or were lost. (3) Subsection 196.24(2) of the English version of the Act, as enacted by section 28 of the other Act, is replaced by the following: Reasons (2) The application shall state the reasons why a DNA profile cannot be derived from the bodily substances or why the information or bodily substances were not transmitted in accordance with the regulations or were lost. 2006-2007 Identification par les e 2000, c. 10, s. 1 (4) Subsection 196.24(3) of the Act is replaced by the following: For greater certainty (3) For greater certainty, the person who may be made subject to the authorization continues to be liable to be dealt with under the Code of Service Discipline for that purpose. Persons not in custody (4) If the military judge authorizes the taking of samples of bodily substances from a person who is not in custody, an order in the prescribed form shall be directed to the person requiring them to report at the place, day and time set out in the order and submit to the taking of the samples. 44. (1) Subsection 196.241(1) of the Act, as enacted by section 29 of the other Act, is replaced by the following: Review by Director of Military Prosecutions 196.241 (1) On receipt of a notice from the Commissioner under subsection 5.2(1) of the DNA Identification Act that an order made under section 196.14 or an authorization granted under section 196.24 appears to be defective, the Director of Military Prosecutions shall review the order or authorization and the court record. (2) The portion of subsection 196.241(2) of the English version of the Act before paragraph (a), as enacted by section 29 of the other Act, is replaced by the following: Clerical error (2) If the Director of Military Prosecutions is of the opinion that the defect is due to a clerical error, the Director shall (3) Subsection 196.241(3) of the Act, as enacted by section 29 of the other Act, is replaced by the following: Substantive defect (3) If the Director of Military Prosecutions is of the opinion that the offence referred to in the order or authorization is not a designated offence, the Director shall inform the Commissioner of that opinion. 2000, c. 10, s. 2 45. Paragraph 230(f) of the Act is replaced by the following: (f) the legality of a decision made under any of subsections 196.14(1) to (3). C. 22 2000, c. 10, s. 3 46. Paragraph 230.1(g) of the Act is replaced by the following: DNA Iden (g) the legality of a decision made under any of subsections 196.14(1) to (3). COORDINATING AMENDMENTS 2005, c. 25 47. (1) On the day on which subsections 1(2) to (5) of the other Act come into force, paragraphs (a) and (a.1) of the definition “primary designated offence” in section 487.04 of the Criminal Code are renumbered respectively as paragraphs (a.1) and (a) of that definition and are repositioned accordingly. (2) On the later of the day on which section 3 of the other Act comes into force and the day on which subsection (1) produces its effects — or, if those days are the same day, then on that day — subsections 487.051(1) and (2) of the Criminal Code are replaced by the following: Order — primary designated offences 487.051 (1) The court shall make an order in Form 5.03 authorizing the taking of the number of samples of bodily substances that is reasonably required for the purpose of forensic DNA analysis from a person who is convicted, discharged under section 730 or found guilty under the Youth Criminal Justice Act or the Young Offenders Act, of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of paragraph (a) of the definition “primary designated offence” in section 487.04 when the person is sentenced or discharged. Order — primary designated offences (2) The court shall make such an order in Form 5.03 in relation to a person who is convicted, discharged under section 730 or found guilty under the Youth Criminal Justice Act or the Young Offenders Act, of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of any of paragraphs (a.1) to (d) of the definition “primary designated offence” in section 487.04 when the person is sentenced or discharged. However, the court is not required to make the order if it is satisfied 2006-2007 Identification par les e that the person has established that the impact of such an order on their privacy and security of the person would be grossly disproportionate to the public interest in the protection of society and the proper administration of justice, to be achieved through the early detection, arrest and conviction of offenders. 2005, c. 25 48. (1) On the day on which subsection 23(1) of the other Act comes into force, paragraphs (a) and (a.1) of the definition “primary designated offence” in section 196.11 of the National Defence Act are replaced by the following: (a) an offence within the meaning of paragraph (a) of the definition “primary designated offence” in section 487.04 of the Criminal Code that is punishable under section 130; (a.1) an offence within the meaning of any of paragraphs (a.1) to (c.1) of the definition “primary designated offence” in section 487.04 of the Criminal Code that is punishable under section 130; and (2) On the later of the day on which section 24 of the other Act comes into force and the day on which subsection (1) produces its effects — or, if those days are the same day, then on that day — subsections 196.14(1) and (2) of the National Defence Act are replaced by the following: Order — primary designated offences 196.14 (1) A court martial shall make an order in the prescribed form authorizing the taking of the number of samples of bodily substances that is reasonably required for the purpose of forensic DNA analysis from a person who is found guilty of an offence committed at any time, including before June 30, 2000, if that offence is a primary designated offence within the meaning of paragraph (a) of the definition “primary designated offence” in section 196.11 when the person is sentenced. Order — primary designated offences (2) A court martial shall make such an order in the prescribed form in relation to a person who is found guilty of an offence committed at any time, including before June 30, 2000, if that C. 22 DNA Iden offence is a primary designated offence within the meaning of paragraph (a.1) or (b) of the definition “primary designated offence” in section 196.11 when the person is sentenced. However, the court martial is not required to make the order if it is satisfied that the person has established that the impact of such an order on their privacy and security of the person would be grossly disproportionate to the public interest in the protection of society and the proper administration of military justice, to be achieved through the early detection, arrest and conviction of offenders. Bill S-3 49. If Bill S-3, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the National Defence Act, the Criminal Code, the Sex Offender Information Registration Act and the Criminal Records Act, receives royal assent, then, on the later of the day on which section 2 of that Act comes into force and the day on which section 34 of this Act comes into force — or, if those days are the same day, then on that day — section 119.1 of the National Defence Act, as enacted by that section 34, is renumbered as section 119.2. If necessary, that section 119.2 and the heading before it are repositioned accordingly. Bill C-7 50. Paragraphs (a) to (c) apply as follows if Bill C-7, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the National Defence Act (“C-7”), receives royal assent: (a) if sections 57 and 58 of C-7 come into force before section 36 of this Act, section 126 of C-7 is repealed; (b) if section 36 of this Act comes into force before sections 57 and 58 of C-7, sections 57, 58 and 126 of C-7 are repealed; and (c) if section 36 of this Act comes into force on the same day as sections 57 and 58 of C-7, sections 57 and 58 of C-7 are deemed to have come into force before section 36 of this Act and paragraph (a) applies. 2006-2007 Bill C-10 Identification par les e 51. If Bill C-10, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the Criminal Code (minimum penalties for offences involving firearms) and to make a consequential amendment to another Act (“C-10”), receives royal assent and if subsection 47(1) of this Act produces its effects before the coming into force of section 26 of C-10, then section 26 of C-10, as enacted by subsection 30(1) of C-10, is replaced by the following: 26. Subparagraph (a)(v) of the definition “primary designated offence” in section 487.04 of the Act is replaced by the following: (v) section 244 (discharging firearm with intent), COMING INTO FORCE Order in council 52. Section 7, subsection 8(1), section 10, subsections 11(2) to (4), section 12, subsection 13(2), sections 14 to 17, subsection 20(4), sections 22, 24, 26, 29, 30, 34 and 35, subsection 37(2), sections 38 to 41, subsection 43(4) and sections 45 and 46 of this Act come into force on a day to be fixed by order of the Governor in Council as long as that day is the same day as that fixed for the coming into force of section 1 of the other Act. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 20 An Act to amend the Criminal Code (luring a child) ASSENTED TO 22nd JUNE, 2007 BILL C-277 SUMMARY This enactment amends the Criminal Code to increase from five years to ten years the maximum punishment for an offence under section 172.1 (luring a child). It also specifies that, in the case of a summary conviction for this offence, the maximun punishment is eighteen months. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 20 An Act to amend the Criminal Code (luring a child) [Assented to 22nd June, 2007] R.S., c. C-46 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Paragraphs 172.1(2)(a) and (b) of the Criminal Code are replaced by the following: (a) an indictable offence and liable to imprisonment for a term of not more than ten years; or (b) an offence punishable on summary conviction and liable to imprisonment for a term not exceeding eighteen months. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 21 An Act to amend the Canada Elections Act and the Public Service Employment Act ASSENTED TO 22nd JUNE, 2007 BILL C-31 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Elections Act and the Public Service Employment Act”. SUMMARY This enactment amends the Canada Elections Act to improve the integrity of the electoral process by reducing the opportunity for electoral fraud or error. It requires that electors, before voting, provide one piece of government-issued photo identification showing their name and address or two pieces of identification authorized by the Chief Electoral Officer showing their name and address, or take an oath and be vouched for by another elector. It also amends the Canada Elections Act to, among other things, make operational changes to improve the accuracy of the National Register of Electors, facilitate voting and enhance communications with the electorate. It amends the Public Service Employment Act to permit the Public Service Commission to make regulations to extend the maximum term of employment of casual workers. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 21 An Act to amend the Canada Elections Act and the Public Service Employment Act [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2000, c. 9 CANADA ELECTIONS ACT 1. The definitions “list of electors” and “polling day” in subsection 2(1) of the Canada Elections Act are replaced by the following: “list of electors” « liste électorale » “list of electors” means the list showing the surname, given names, civic address and mailing address of every elector in a polling division and the identifier that is assigned to the elector by the Chief Electoral Officer. “polling day” « jour du scrutin » “polling day”, in relation to an election, means the date fixed under paragraph 57(1.2)(c) for voting at the election. 2. Subsection 17(1) of the Act is replaced by the following: Power to adapt Act 17. (1) During an election period or within 30 days after it, if an emergency, an unusual or unforeseen circumstance or an error makes it necessary, the Chief Electoral Officer may adapt any provision of this Act and, in particular, may extend the time for doing any act, subject to subsection (2), or may increase the number of election officers or polling stations. 3. The Act is amended by adding the following after section 43: C. 21 Right of access 43.1 (1) No person who is in control of an apartment building, condominium building or other multiple-residence building or a gated community may prevent an election officer or a member of the staff of a returning officer from obtaining access to the building or gated community, as the case may be, between 9:00 a.m. and 9:00 p.m., to perform his or her duties under this Act. Exception (2) Subsection (1) does not apply in respect of a person who is in control of a multipleresidence building whose residents’ physical or emotional well-being may be harmed as a result of permitting the activities referred to in that subsection. Canada E 4. Section 44 of the Act is amended by adding the following after subsection (2): Identifier (2.1) The Register of Electors must also contain, for each elector, a unique, randomly generated identifier that is assigned by the Chief Electoral Officer. 5. Subsections 45(1) to (3) of the Act are replaced by the following: Members and registered parties 45. (1) By November 15 in each year, the Chief Electoral Officer shall send to the member for each electoral district and, on request, to each registered party that endorsed a candidate in the electoral district in the last election, a copy in electronic form — taken from the Register of Electors — of the lists of electors for the electoral district. Contents of lists of electors (2) The lists of electors shall set out each elector’s surname, given names, civic address and mailing address, and the identifier that is assigned to the elector by the Chief Electoral Officer and shall be arranged in the form established by the Chief Electoral Officer according to the civic addresses of the electors or, if that is not appropriate, in alphabetical order by their surnames. Exception (3) This section does not apply if November 15 falls during an election period or if the vote at a general election was held during the six months before that date. 2006-2007 Loi électorale 6. Section 46 of the Act is amended by adding the following after subsection (1): Retention of certain information (1.1) The Chief Electoral Officer may retain information collected under paragraph (1)(b), but not included in the Register of Electors, for the purpose of correlating information subsequently collected with information already contained in the Register of Electors. 7. The Act is amended by adding the following after section 46: Citizenship information 46.1 For the purpose of assisting the Chief Electoral Officer in updating the Register of Electors, the Minister of National Revenue may, on a return of income referred to in subsection 150(1) of the Income Tax Act, request that an individual who is filing a return of income under paragraph 150(1)(d) of that Act indicate in the return whether he or she is a Canadian citizen. Information in respect of deceased individuals 46.2 For the purpose of updating the Register of Electors, the Minister of National Revenue shall, at the request of the Chief Electoral Officer, provide the name, date of birth and address of any individual to whom paragraph 150(1)(b) of the Income Tax Act applies if that individual has, in his or her last return of income filed under paragraph 150(1)(d) of that Act, authorized that Minister to provide his or her name, date of birth and address to the Chief Electoral Officer for the Register of Electors. 8. The Act is amended by adding the following after section 47: Other duties 47.1 Between election periods, a returning officer shall perform any duties related to the updating of the Register of Electors that are requested by the Chief Electoral Officer. 9. Subsections 55(1) to (3) of the Act are replaced by the following: Provincial bodies 55. (1) The Chief Electoral Officer may enter into an agreement with any body responsible under provincial law for establishing a list of electors, governing the giving of information contained in the Register of Electors, or the C. 21 Canada E giving of information referred to in subsection 44(2) or (2.1) that the Chief Electoral Officer intends to include in the Register of Electors, if that information is needed for establishing such a list. Conditions (2) The Chief Electoral Officer shall include in the agreement conditions regarding the use and protection of personal information given under the agreement. 10. (1) Paragraph 56(b) of the Act is replaced by the following: (b) knowingly make a false or misleading statement, orally or in writing, relating to another person’s qualification as an elector, to the surname, given names, sex, civic address or mailing address of that person, or to the identifier assigned to that person by the Chief Electoral Officer, for the purpose of having that person’s name deleted from the Register of Electors; (2) Section 56 of the Act is amended by striking out the word “or” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) knowingly use personal information that is obtained from the Register of Electors except as follows: (i) to enable registered parties, members or candidates to communicate with electors in accordance with section 110, (ii) for the purpose of a federal election or referendum, or (iii) in accordance with the conditions included in an agreement made under section 55, in the case of information that is transmitted in accordance with the agreement; or (f) knowingly use other personal information that is transmitted in accordance with an agreement made under section 55 except in accordance with the conditions included in the agreement. 11. (1) Subsection 81(1) of the Act is replaced by the following: 2006-2007 Canvassing, etc., in residential areas Loi électorale 81. (1) No person who is in control of an apartment building, condominium building or other multiple-residence building or a gated community may prevent a candidate or his or her representative from (a) in the case of an apartment building, condominium building or gated community, canvassing, between 9:00 a.m. and 9:00 p.m., at the doors to the apartments, units or houses, as the case may be; or (b) in the case of a multiple-residence building, campaigning, between 9:00 a.m. and 9:00 p.m., in a common area in the multiple residence. (2) Subsection 81(2) of the French version of the Act is replaced by the following: Exception (2) Le paragraphe (1) ne s’applique pas au responsable d’un immeuble à logements multiples si le fait de permettre les activités de campagne visées à ce paragraphe peut mettre en danger la santé physique ou affective des résidants de l’immeuble. 12. The Act is amended by adding the following after section 81: Campaigning in public places 81.1 (1) No person who is in control of a building, land, street or any other place, any part of which is open without charge to members of the public, whether on a continuous, periodic or occasional basis — including any commercial, business, cultural, historical, educational, religious, governmental, entertainment or recreational place — may prevent a candidate or his or her representative from campaigning in or on that part when it is open without charge to members of the public. Exception (2) Subsection (1) does not apply in respect of a place if campaigning in or on it would be incompatible with the function and purpose of the place or inconsistent with public safety. 13. Subsection 93(2) of the Act is replaced by the following: Distribution of preliminary lists (1.1) The Chief Electoral Officer shall distribute, to each registered party or eligible party that requests it, one copy in electronic form of C. 21 Canada E the preliminary lists of electors for an electoral district in respect of which a writ has been issued. Form of preliminary list of electors (2) A preliminary list of electors shall contain only the name and address of each elector in the electoral district and the identifier that is assigned to the elector by the Chief Electoral Officer and shall be arranged according to the civic addresses of the electors or, if that is not appropriate, in alphabetical order by their names. 14. (1) The portion of subsection 95(2) of the French version of the Act before paragraph (a) is replaced by the following: Teneur de l’avis (2) L’avis de confirmation d’inscription, en la forme établie par le directeur général des élections, indique : (2) Subsection 95(2) of the Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the fact that proof of an elector’s identity and residence will be required before the elector is allowed to vote. 15. The Act is amended by adding the following after section 99: Information in Register of Electors 99.1 The Chief Electoral Officer may, for the purpose of section 99, provide to the returning officer and assistant returning officer information contained in the Register of Electors. 16. (1) Subsection 101(1) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c): (d) the elector, or another elector who lives at the same residence as the elector, at their residence and in the presence of the revising agents completes the prescribed registration form and takes the prescribed oath. (2) Section 101 of the Act is amended by adding the following after subsection (1): 2006-2007 Addition of elector’s name Loi électorale (1.1) The returning officer or assistant returning officer may also add to the preliminary list of electors the name of any elector whose name is added to the Register of Electors after that list has been prepared. 17. The Act is amended by adding the following after section 104: UPDATED PRELIMINARY LISTS OF ELECTORS Distribution of lists 104.1 Each returning officer shall, on the 19th day before polling day, distribute to each candidate in the electoral district who requests it, one copy in electronic form of the most current preliminary lists of electors for that electoral district. 18. Subsections 107(2) and (3) of the Act are replaced by the following: Transmittal of list (2) Each returning officer shall deliver to each deputy returning officer the revised list of electors or official list of electors, as the case may be, that the deputy returning officer needs to conduct the vote in his or her respective advance polling station or polling station. The list shall indicate each elector’s sex and date of birth. Transmittal to candidates (3) Each returning officer shall deliver to each candidate a printed copy and a copy in electronic form of a version of the revised lists of electors and the official lists of electors that does not indicate an elector’s sex or date of birth. 19. Subsection 110(3) of the Act is replaced by the following: Candidates (3) A candidate who receives a copy of the preliminary lists of electors under section 94 or 104.1, or a copy of the revised lists of electors or the official lists of electors under subsection 107(3), may use the lists for communicating with his or her electors during an election period, including using them for soliciting contributions and campaigning. 2004, c. 24, s. 2 20. Paragraph 117(2)(c) of the Act is replaced by the following: (c) no later than 48 hours after the close of nominations, the party is a registered party. C. 21 Canada E 21. Sections 143 to 145 of the Act are replaced by the following: Elector to declare name, etc. 143. (1) Each elector, on arriving at the polling station, shall give his or her name and address to the deputy returning officer and the poll clerk, and, on request, to a candidate or his or her representative. Proof of identity and residence (2) If the poll clerk determines that the elector’s name and address appear on the list of electors or that the elector is allowed to vote under section 146, 147, 148 or 149, then, subject to subsection (3), the elector shall provide to the deputy returning officer and the poll clerk the following proof of his or her identity and residence: (a) one piece of identification issued by a Canadian government, whether federal, provincial or local, or an agency of that government, that contains a photograph of the elector and his or her name and address; or (b) two pieces of identification authorized by the Chief Electoral Officer each of which establish the elector’s name and at least one of which establishes the elector’s address. Clarification (2.1) For greater certainty, the Chief Electoral Officer may authorize as a piece of identification for the purposes of paragraph (2)(b) any document, regardless of who issued it. Person registered as an Indian (2.2) For the purposes of paragraph (2)(b), a document issued by the Government of Canada that certifies that a person is registered as an Indian under the Indian Act constitutes an authorized piece of identification. Oath (3) An elector may instead prove his or her identity and residence by taking the prescribed oath if he or she is accompanied by an elector whose name appears on the list of electors for the same polling division and who (a) provides to the deputy returning officer and the poll clerk the piece or pieces of identification referred to in paragraph (2)(a) or (b), respectively; and (b) vouches for him or her on oath in the prescribed form. 2006-2007 Loi électorale Voting (4) If the deputy returning officer is satisfied that an elector’s identity and residence have been proven in accordance with subsection (2) or (3), the elector’s name shall be crossed off the list and, subject to section 144, the elector shall be immediately allowed to vote. Prohibition — vouching for more than one elector (5) No elector shall vouch for more than one elector at an election. Prohibition — vouchee acting as voucher (6) An elector who has been vouched for at an election may not vouch for another elector at that election. Publication (7) The Chief Electoral Officer shall publish each year, and within three days after the issue of a writ, in a manner that he or she considers appropriate, a notice setting out the types of identification that are authorized for the purpose of paragraph (2)(b). The first annual notice shall be published no later than six months after the coming into force of this subsection. Requirement before administering oath 143.1 If a person decides to prove his or her identity and residence by taking the prescribed oath, the person who administers the oath shall, before doing so, orally advise the oath taker of the qualifications for electors and the penalty that may be imposed under this Act on a person who is convicted of voting or attempting to vote at an election knowing that he or she is not qualified as an elector. Proof of qualification as elector 144. A deputy returning officer, poll clerk, candidate or candidate’s representative who has reasonable doubts concerning whether a person intending to vote is qualified as an elector may request that the person take the prescribed oath, and the person shall not be allowed to vote unless he or she takes that oath. Proof of identity, etc., or oath not required 144.1 Once an elector has been given a ballot, no person shall require the elector to prove his or her identity and residence in accordance with subsection 143(2) or (3). 22. Sections 146 to 148 of the Act are replaced by the following: Name and address corresponding closely to another 146. If a name and address in the list of electors correspond so closely with the name and address of a person who demands a ballot as C. 21 Canada E to suggest that it is intended to refer to that person, the person shall not be allowed to vote unless he or she takes the prescribed oath. Person in whose name another has voted 147. If a person asks for a ballot at a polling station after someone else has voted under that person’s name, the person shall not be allowed to vote unless he or she takes the prescribed oath. Name inadvertently crossed off list 148. If an elector claims that his or her name has been crossed off in error from an official list of electors under subsection 176(2) or (3), the elector shall not be allowed to vote unless the returning officer verifies that the elector’s name was crossed off in error or the elector takes the oath referred to in section 147. Failure to prove identity or residence 148.1 (1) An elector who fails to prove his or her identity and residence in accordance with subsection 143(2) or (3) or to take an oath otherwise required by this Act shall not receive a ballot or be allowed to vote. When elector refuses to take improper oath (2) If an elector refuses to take an oath because he or she is not required to do so under this Act, the elector may appeal to the returning officer. If, after consultation with the deputy returning officer or the poll clerk of the polling station, the returning officer decides that the elector is not required to take the oath, and if the elector is entitled to vote in the polling division, the returning officer shall direct that he or she be allowed to do so. 23. (1) The portion of section 149 of the English version of the Act before paragraph (b) is replaced by the following: Elector not allowed to vote 149. An elector whose name does not appear on the official list of electors in his or her polling station shall not be allowed to vote unless (a) the elector gives the deputy returning officer a transfer certificate described in section 158 or 159 and, for a certificate described in subsection 158(2), fulfils the conditions described in subsection 158(3); (2) Paragraph 149(b) of the Act is replaced by the following: 2006-2007 Loi électorale (b) the deputy returning officer ascertains with the returning officer that the elector is listed on the preliminary list of electors or was registered during the revision period; or (3) Paragraph 149(c) of the English version of the Act is replaced by the following: (c) the elector gives the deputy returning officer a registration certificate described in subsection 161(4). 24. Section 158 of the Act is amended by adding the following after subsection (3): Transfer certificate for elector whose polling station has moved (4) If an elector’s polling station moves to another location after the notice of confirmation of registration has been sent, an elector who attends at the polling station set out in the notice is entitled on request to receive a transfer certificate to vote at that polling station. 2000, c. 12, par. 40(2)(e) 25. Subsection 159(2) of the Act is replaced by the following: Application requirements (2) The application shall be in the prescribed form and shall be personally delivered to the returning officer or assistant returning officer for the elector’s electoral district by the elector, his or her friend, spouse, common-law partner or relative, or a relative of his or her spouse or common-law partner. 26. (1) Subsection 161(1) of the Act is replaced by the following: Registration in person 161. (1) An elector whose name is not on the list of electors may register in person on polling day if the elector (a) provides as proof of his or her identity and residence the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively; or (b) proves his or her identity and residence by taking the prescribed oath, and is accompanied by an elector whose name appears on the list of electors for the same polling division and who C. 21 Canada E (i) provides the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, and (ii) vouches for him or her on oath in the prescribed form. (2) Subsection 161(6) of the Act is replaced by the following: Prohibition — vouching for more than one elector (6) No elector shall vouch for more than one elector at an election. Prohibition — vouchee acting as voucher (7) An elector who has been vouched for at an election may not vouch for another elector at that election. 27. The Act is amended by adding the following after section 161: Requirement before administering oath 161.1 If a person decides to prove his or her identity and residence by taking the prescribed oath, the person who administers the oath shall, before doing so, orally advise the oath taker of the qualifications for electors. 28. Paragraphs 162(f) to (i) of the Act are replaced by the following: (f) indicate, if applicable, on the prescribed form that the elector has taken an oath and the type of oath; (g) indicate, if applicable, on the prescribed form that the elector refused to comply with a legal requirement to provide the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, or to take an oath; (h) indicate, if applicable, on the prescribed form that the elector has been allowed to vote under subsection 148.1(2); (i) indicate, if applicable, on the prescribed form that an elector has voted in the circumstances described in section 147, that the prescribed oath has been taken or that any other oath that was required to be taken was taken, note any objection that was made on behalf of any of the candidates and indicate the candidate’s name; 2006-2007 Loi électorale (i.1) on request, and at intervals of no less than 30 minutes, provide to a candidate’s representative, on the prescribed form and as directed by the Chief Electoral Officer, the identity of every elector who has exercised his or her right to vote on polling day, excluding that of electors who registered on that day; (i.2) on request, after the close of the advance polling station, provide to a candidate’s representative, on the prescribed form and as directed by the Chief Electoral Officer, the identity of every elector who has exercised his or her right to vote on that day excluding that of electors who registered on that day; and 29. Subsection 168(1) of the Act is replaced by the following: Establishment of advance polling districts 168. (1) Each returning officer shall, as directed by the Chief Electoral Officer, establish in his or her electoral district advance polling districts that consist of one or more polling divisions. 30. (1) Subsection 169(2) of the Act is replaced by the following: Conditions (2) An elector shall not be registered unless he or she (a) provides as proof of his or her identity and residence the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively; or (b) proves his or her identity and residence by taking the prescribed oath, and is accompanied by an elector whose name appears on the list of electors for the same polling division and who (i) provides the piece or pieces of identification referred to in paragraph 143(2)(a) or (b), respectively, and (ii) vouches for him or her on oath in the prescribed form. (2) Section 169 of the Act is amended by adding the following after subsection (4): C. 21 Prohibition — vouching for more than one elector (5) No elector shall vouch for more than one elector at an election. Prohibition — vouchee acting as voucher (6) An elector who has been vouched for at an election may not vouch for another elector at that election. Canada E 31. The Act is amended by adding the following after section 169: Requirement before administering oath 169.1 If a person chooses to prove his or her identity and residence by taking the prescribed oath, the person who administers the oath shall, before doing so, orally advise the oath taker of the qualifications for electors. 32. Paragraph 173(2)(a) of the Act is replaced by the following: (a) the deputy returning officer has ascertained with the returning officer that the elector is listed on the preliminary list of electors or was registered during the revision period; or 33. Paragraph 174(1)(a) of the Act is replaced by the following: (a) the elector fails to prove his or her identity and residence in accordance with subsection 143(2) or (3) or to take an oath otherwise required by this Act; or 34. (1) Subsection 442(1) of the Act is replaced by the following: Estimated expenses 442. (1) On November 15 in each year, the Chief Electoral Officer shall calculate the maximum amount referred to in section 440 for each electoral district, based on the lists of electors in the Register of Electors, as if an election were then to be held. (2) Section 442 of the Act is amended by adding the following after subsection (3): Exception (4) This section does not apply if November 15 falls during an election period or if the vote at a general election was held during the six months before that date. 2006-2007 Loi électorale 2003, c. 19, s. 50 35. Section 466 of the Act is replaced by the following: Audit fee 466. On receipt of the documents referred to in subsection 451(1) and, if applicable, those referred to in subsection 455(1), including the auditor’s report, and a copy of the auditor’s invoice for that report, the Chief Electoral Officer shall provide the Receiver General with a certificate that sets out the greater of (a) the amount of the expenses incurred for the audit, up to a maximum of the lesser of 3% of the candidate’s election expenses and $1,500, and (b) $250. 36. Subsection 484(2) of the Act is replaced by the following: Offences requiring intent — summary conviction (2) Every person is guilty of an offence who (a) being a returning officer, wilfully contravenes subsection 24(3) (failure to take promptly any necessary election proceedings); or (b) contravenes subsection 43.1(1) (refusal to give access to building or gated community). 37. Subsection 486(2) of the Act is replaced by the following: Offences requiring intent — summary conviction (2) Every person who contravenes subsection 81(1) (refusal to give access to building or gated community) or subsection 81.1(1) (refusal to give access to place open to the public) is guilty of an offence. 37.1 Subsection 487(1) of the Act is replaced by the following: 487. (1) Every person is guilty of an offence who contravenes (a) paragraph 111(b) or (c) (applying improperly to be included on list of electors); or (b) paragraph 111(f) (unauthorized use of personal information contained in list of electors). C. 21 Canada E 38. (1) Paragraphs 489(2)(a) and (a.1) of the Act are renumbered as 489(2)(a.2) and (a.3), respectively. (2) Subsection 489(2) of the Act is amended by adding the following before paragraph (a.2): (a) contravenes subsection 143(5) (vouching for more than one elector); (a.1) contravenes subsection 143(6) (vouchee acting as voucher); (3) Subsection 489(2) of the Act is amended by adding the following after paragraph (a.3): (a.4) contravenes subsection 161(7) (vouchee acting as voucher); (4) Subsection 489(2) of the Act is amended by striking out the word “or” at the end of paragraph (b) and by adding the following after paragraph (c): (d) contravenes subsection 169(5) (vouching for more than one elector); or (e) contravenes subsection 169(6) (vouchee acting as voucher). 2003, c. 19, s. 58(7) 39. (1) Paragraph 497(1)(z.1) of the Act is replaced by the following: (z.1) being a registered agent or financial agent, contravenes section 476 (improper or unauthorized transfer of funds); (2) Paragraph 497(3)(s) of the English version of the Act is replaced by the following: (s) being a candidate, wilfully contravenes subsection 451(5) (failure to send electoral campaign return declaration); 2003, c. 19, s. 58(16) (3) Paragraph 497(3)(x) of the Act is replaced by the following: (x) being a registered agent or financial agent, knowingly contravenes section 476 (unauthorized or improper transfer of funds); 39.1 (1) Subsection 500(2) of the Act is replaced by the following: 2006-2007 Loi électorale (2) Every person who is guilty of an offence under any of subsection 485(1), paragraph 487(1)(a), subsections 488(1), 489(2) and 491(2), section 493 and subsection 495(2) is liable on summary conviction to a fine of not more than $1,000 or to imprisonment for a term of not more than three months, or to both. (2) Section 500 of the Act is amended by adding the following after subsection (3): (3.1) Every person who is guilty of an offence under paragraph 487(1)(b) is liable on summary conviction to a fine of not more than $5,000 or to imprisonment for a term of not more than one year, or to both. 2003, c. 22, ss. 12 and 13 PUBLIC SERVICE EMPLOYMENT ACT 40. The Public Service Employment Act is amended by adding the following after section 50: 50.1 Despite subsection 50(2), the maximum period of employment of casual workers appointed in the Office of the Chief Electoral Officer for the purposes of an election under the Canada Elections Act or a referendum held under the Referendum Act is 165 working days in one calendar year. COMING INTO FORCE Coming into force 42. (1) Despite subsection 554(1) of the Canada Elections Act, sections 3, 6, 8 and 9, subsection 10(2), sections 11, 12, 14 to 16, 20 to 27, 28(f), (g), (h) and (i), 29 to 33 and 35 to 39 come into force two months after the day on which this Act receives royal assent unless, before that day, the Chief Electoral Officer publishes a notice in the Canada Gazette that the necessary preparations have been made for the bringing into operation of the provisions set out in the notice and that they may come into force on the day set out in the notice. C. 21 Coming into force (2) The amendment to the definition “list of electors” in subsection 2(1) of the Canada Elections Act, as enacted by section 1, sections 4, 5 and 7, subsection 10(1) and sections 13, 17 to 19 and 34 come into force 10 months after the day on which this Act receives royal assent unless, before that day, the Chief Electoral Officer publishes a notice in the Canada Gazette that the necessary preparations have been made for the bringing into operation of the provisions set out in the notice and that they may come into force on the day set out in the notice. Canada E (3) Paragraphs 162(i.1) and (i.2) of the Canada Elections Act, as enacted by section 28, come into force six months after the day on which this Act receives royal assent unless, before that day, the Chief Electoral Officer publishes a notice in the Canada Gazette that the necessary preparations have been made for the bringing into operation of the provisions set out in the notice and that they may come into force on the day set out in the notice. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Thirty-ninth Parliament, 56 Elizabeth II, 2007 STATUTES OF CANADA 2007 CHAPTER 35 An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 and to implement certain provisions of the economic statement tabled in Parliament on October 30, 2007 ASSENTED TO 14th DECEMBER, 2007 BILL C-28 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 and to implement certain provisions of the economic statement tabled in Parliament on October 30, 2007”. SUMMARY Part 1 implements goods and services tax and harmonized sales tax (GST/ HST) measures proposed in the March 19, 2007 Budget but not included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007. Specifically, the Excise Tax Act is amended to (a) increase the percentage of available input tax credits for GST/HST paid on meal expenses of truck drivers from 50% to 80% over five years beginning with expenses incurred on or after March 19, 2007; (b) increase the GST/HST annual filing threshold from $500,000 in taxable supplies to $1,500,000 and the annual remittance threshold from $1,500 to $3,000, both effective for fiscal years that begin after 2007; (c) increase the GST/HST 48-hour travellers’ exemption from $200 to $400 effective in respect of travellers returning to Canada on or after March 20, 2007; and (d) implement changes to the rules governing self-assessment under Division IV of Part IX of the Excise Tax Act to ensure that GST/HST applies appropriately in respect of intangible personal property acquired on a zero-rated basis and consumed in furthering domestic activities, applicable to supplies made after March 19, 2007. Part 2 amends the non-GST portion of the Excise Tax Act to implement measures announced in the March 19, 2007 Budget. Specifically, the excise tax exemptions for renewable fuels, including ethanol and bio-diesel, are repealed, effective April 1, 2008. Part 3 implements income tax measures proposed in the March 19, 2007 Budget but not included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007. In particular, it (a) introduces a new Working Income Tax Benefit; (b) eliminates income tax on elementary and secondary school scholarships; Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca (c) eliminates capital gains tax on donations of publicly-listed securities to private foundations; (d) enhances the child fitness tax credit; (e) expands the scope of the public transit tax credit; (f) increases the lifetime capital gains exemption to $750,000; (g) increases the deductible percentage of meal expenses for long-haul truck drivers; (h) provides tax relief in respect of the 2010 Winter Olympic and Paralympic Games; (i) allows for phased-retirement options for pension plans; (j) extends the mineral exploration tax credit; (k) enhances tax benefits for donations of medicine to the developing world; (l) streamlines the process for prescribed stock exchanges; (m) introduces an investment tax credit for child care spaces; (n) introduces a new withholding tax exemption with respect to certain cross-border interest payments; (o) prevents double deductions of interest expense on borrowed money used to finance foreign affiliates (the Anti-Tax-Haven Initiative); (p) eases tax remittance and filing requirements for small business; (q) introduces a mechanism to accommodate functional currency reporting; (r) provides certain tobacco processors that do not manufacture tobacco products with relief from the Tobacco Manufacturers’ Surtax; and (s) provides authority for regulations requiring the disclosure by publicly traded trusts and partnerships of information enabling investment managers to prepare the tax information slips that they are required to issue to investors on a timely basis. Part 4 implements the disability savings measures proposed in the March 19, 2007 Budget. The measures are intended to support long-term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions. Part 4 contains amendments to the Income Tax Act to allow for the creation of registered disability savings plans. It also enacts the Canada Disability Savings Act. That Act provides for the payment of Canada Disability Savings Grants in relation to contributions made to those plans. The amount of grant is increased for persons of lower and middle income. It also provides for the payment of Canada Disability Savings Bonds in respect of persons of low income. Part 5 implements measures that provide for payments to be made to provinces as a financial incentive for them to eliminate taxes on capital under certain circumstances. Part 6 enacts the Bank for International Settlements (Immunity) Act. Part 7 amends the Pension Benefits Standards Act, 1985 to permit phased retirement arrangements in federally regulated pension plans by allowing an employer to simultaneously pay a partial pension to an employee and provide further pension benefit accruals to the employee. These amendments are consistent with amendments to the Income Tax Regulations to permit phased retirement. Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of Canada’s contribution to the Advance Market Commitment. Part 9 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to regulate traffic, tolls and tariffs in relation to oil and gas pipelines regulated under that Act. Part 10 amends the Farm Income Protection Act to allow financial institutions to hold contributions under a net income stabilization account program. Part 11 amends the Federal-Provincial Fiscal Arrangements Act to provide for an additional fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador. This Part also specifies the time and manner in which the calculation of fiscal equalization payments will be made and it amends that Act’s regulation-making authority. In addition, this Part makes consequential amendments to other Acts. Part 12 amends the Canada Education Savings Act to clarify the authority of the Minister of Human Resources and Social Development to collect, on behalf of the Canada Revenue Agency, any information that the Canada Revenue Agency requires for purposes of administering the registered education savings plan tax provisions. Part 13 authorizes payments to be made out of the Consolidated Revenue Fund to an entity, designated by the Minister of Finance, to facilitate publicprivate partnership projects. Part 14 implements tax measures proposed in the October 30, 2007 Economic Statement. With respect to income tax measures, it (a) reduces the general corporate income tax rate; (b) accelerates the tax reduction for small businesses; (c) reduces the lowest personal income tax rate, which automatically reduces the rate used to calculate non-refundable tax credits and the alternative minimum tax; and (d) increases the basic personal amount and the amount upon which the spouse or common-law partner and wholly dependent relative credits are calculated. Part 14 also amends the Excise Tax Act to implement, effective January 1, 2008, the reduction in the goods and services tax (GST) and the federal component of the harmonized sales tax (HST) from 6% to 5%. That Act is amended to provide transitional rules for determining the GST/HST rate applicable to transactions that straddle the January 1, 2008, implementation date, including transitional rebates in respect of the sale of residential complexes where transfer of ownership and possession both take place on or after January 1, 2008, pursuant to a written agreement entered into on or before October 30, 2007. The Excise Act, 2001 is also amended to increase excise duties on tobacco products to offset the impact of the GST/HST rate reduction. The Air Travellers Security Charge Act is also amended to ensure that rates for domestic and transborder air travel reflect the impact of the GST/HST rate reduction. Those amendments generally apply as of January 1, 2008. TABLE OF PROVISIONS AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON MARCH 19, 2007 AND TO IMPLEMENT CERTAIN PROVISIONS OF THE ECONOMIC STATEMENT TABLED IN PARLIAMENT ON OCTOBER 30, 2007 SHORT TITLE Budget and Economic Statement Implementation Act, 2007 1. PART 1 AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX 2-7. Excise Tax Act PART 2 AMENDMENT RELATING TO EXCISE TAX ON RENEWABLE FUELS 8. Excise Tax Act PART 3 AMENDMENTS RELATING TO INCOME TAX INCOME TAX ACT 9-68. Amendments INCOME TAX APPLICATION RULES 69. Amendment INCOME TAX CONVENTIONS INTERPRETATION ACT 70. Amendment INCOME TAX REGULATIONS 71-89. Amendments CANADA PENSION PLAN REGULATIONS 90. Amendment i INSURABLE EARNINGS AND COLLECTION OF PREMIUMS REGULATIONS 91. Amendment COORDINATING AMENDMENTS 92-100. Bill C-10 PART 4 DISABILITY SAVINGS AMENDMENTS RELATING TO INCOME TAX Income Tax Act 101-124. Amendments 125-127. Amendments Income Tax Regulations Consequential Amendments 128. Employment Insurance Act 129. Old Age Security Act Coordinating Amendments 130-134. Bill C-10 Application 135. Application CANADA DISABILITY SAVINGS ACT Enactment of Act 136. Enactment of Act AN ACT TO ENCOURAGE SAVINGS FOR PERSONS WITH DISABILITIES SHORT TITLE 1. Canada Disability Savings Act INTERPRETATION 2. Definitions PURPOSE 3. Purpose MINISTER 4. Designation of Minister ii 5. Informing Canadians PAYMENTS 6. Canada Disability Savings Grants 7. Canada Disability Savings Bonds 8. Payment 9. Interest 10. Payments out of CRF 11. Waiver GENERAL 12. Debt due to Her Majesty 13. Deduction and set-off by the Minister 14. Limitation or prescription period 15. Collection of information 16. Notification by Minister of National Revenue 17. Regulations Consequential Amendment to the Children’s Special Allowances Act 137. Amendment 138. Order in council Coming into Force PART 5 INCENTIVE FOR PROVINCES TO ELIMINATE TAXES ON CAPITAL 139. Federal-Provincial Fiscal Arrangements Act PART 6 BANK FOR INTERNATIONAL SETTLEMENTS (IMMUNITY) ACT 140. Enactment of Act AN ACT TO PROVIDE IMMUNITY TO THE BANK FOR INTERNATIONAL SETTLEMENTS FROM GOVERNMENT MEASURES AND FROM CIVIL JUDICIAL PROCESS 1. Bank for International Settlements (Immunity) Act 2. Immunity — government measures 3. Immunity — judicial process iv 4. Non-application of sections 2 and 3 PART 7 PHASED RETIREMENT — AMENDMENTS OTHER THAN THOSE CONCERNING INCOME TAX PENSION BENEFITS STANDARDS ACT, 1985 141-142. Amendments COMING INTO FORCE 143. Order in Council PART 8 ADVANCE MARKET COMMITMENT 144. Payments PART 9 OIL AND GAS OPERATIONS IN CANADA CANADA OIL AND GAS OPERATIONS ACT 145-150. Amendments CONSEQUENTIAL AMENDMENTS 151. Canada Petroleum Resources Act 152-153. National Energy Board Act PART 10 AMENDMENTS TO THE FARM INCOME PROTECTION ACT 154-160. Amendments PART 11 FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 161-168. Amendments AMENDMENTS TO THE BUDGET IMPLEMENTATION ACT, 2007 169-171. Amendments CONSEQUENTIAL AMENDMENT TO THE CANADANEWFOUNDLAND ATLANTIC ACCORD IMPLEMENTATION ACT 172. Amendment v TRANSITIONAL PROVISIONS 173. Calculation re fiscal year 2008-2009 174. Effect of election by Newfoundland and Labrador — fiscal year 2007-2008 175. Newfoundland and Labrador COMING INTO FORCE PART 12 AMENDMENTS TO THE CANADA EDUCATION SAVINGS ACT 176-177. Amendments PART 13 PUBLIC-PRIVATE PARTNERSHIPS 178. Payments PART 14 TAX AMENDMENTS TO IMPLEMENT THE 2007 ECONOMIC STATEMENT AMENDMENTS RELATING TO INCOME TAX 179-182. Income Tax Act AMENDMENTS TO IMPLEMENT THE GST/HST RATE REDUCTION 183-195. Excise Tax Act RELATED AMENDMENTS AS A RESULT OF THE GST/HST RATE REDUCTION Air Travellers Security Charge Act 196. Amendments Excise Act, 2001 197-208. 209. Amendments Application 56 ELIZABETH II —————— CHAPTER 35 An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 and to implement certain provisions of the economic statement tabled in Parliament on October 30, 2007 [Assented to 14th December, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Budget and Economic Statement Implementation Act, 2007. PART 1 AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/ HARMONIZED SALES TAX R.S., c. E-15 EXCISE TAX ACT 2. (1) Section 217 of the Excise Tax Act is amended by adding the following after paragraph (c): (c.1) a taxable supply made in Canada of intangible personal property that is a zerorated supply only because it is included in section 10 or 10.1 of Part V of Schedule VI, other than (i) a supply that is made to a consumer of the property, or (ii) a supply of intangible personal property that is acquired for consumption, use or supply exclusively in the course of commercial activities of the recipient of the supply or activities that are engaged in C. 35 Budget and Economic State exclusively outside Canada by the recipient of the supply and that are not part of a business or adventure or concern in the nature of trade engaged in by that recipient in Canada, (2) Subsection (1) applies to supplies made after March 19, 2007. 2001, c. 15, s. 8(1) 3. (1) Paragraph 218.1(1)(d) of the Act is replaced by the following: (d) every person who is the recipient of a supply that is included in any of paragraphs 217(c.1), (d) or (e) and that is made in a particular participating province (2) Subsection (1) applies to supplies made after March 19, 2007. 2000, c. 30, s. 64(1) 4. (1) Paragraph 236(1)(b) of the Act is replaced by the following: (b) one or both of the following situations apply: (i) subsection 67.1(1) of the Income Tax Act applies, or would apply, if the person were a taxpayer under that Act, to all of the composite amount or that part of it that is, for the purposes of that Act, an amount (other than an amount to which subsection 67.1(1.1) of that Act applies) paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment and section 67.1 of that Act deems the composite amount or that part to be 50% of a particular amount, (ii) subsection 67.1(1.1) of that Act applies, or would apply, if the person were a taxpayer under that Act, to all of the composite amount or that part of it that is, for the purposes of that Act, an amount paid or payable in respect of the consumption of food or beverages by a long-haul truck driver during the driver’s eligible travel period (as those terms are defined in section 67.1 of that Act), and section 67.1 of that Act deems the composite amount or that part to be a percentage of a specified particular amount, and Exécution du budget et de l’ 2000, c. 30, s. 64(1) (2) The formula and its descriptions in subsection 236(1) of the Act are replaced by the following: [50% × (A/B) × C] + [40% × (D/B) × C] where A is (i) in the case where subparagraph (b)(i) applies, the particular amount, and (ii) in any other case, zero, B is the composite amount, C is the input tax credit, and D is (i) in the case where subparagraph (b)(ii) applies, the specified particular amount, and (ii) in any other case, zero. (3) The formula in subsection 236(1) of the Act, as enacted by subsection (2), is replaced by the following: [50% × (A/B) × C] + [35% × (D/B) × C] (4) The formula in subsection 236(1) of the Act, as enacted by subsection (3), is replaced by the following: [50% × (A/B) × C] + [30% × (D/B) × C] (5) The formula in subsection 236(1) of the Act, as enacted by subsection (4), is replaced by the following: [50% × (A/B) × C] + [25% × (D/B) × C] (6) The formula in subsection 236(1) of the Act, as enacted by subsection (5), is replaced by the following: [50% × (A/B) × C] + [20% × (D/B) × C] (7) Subsection (1) applies to C. 35 Budget and Economic State (a) amounts in respect of a supply of food, beverages or entertainment if tax under Part IX of the Act in respect of the supply becomes payable, or is paid without having become payable, after March 19, 2007 and no allowance or reimbursement is paid in respect of the supply; and (b) amounts paid after March 19, 2007 as an allowance or reimbursement in respect of a supply of food, beverages or entertainment. (8) Subsection (2) applies to (a) amounts in respect of a supply of food, beverages or entertainment if tax under Part IX of the Act in respect of the supply becomes payable, or is paid without having become payable, after March 19, 2007 and before 2008 and no allowance or reimbursement is paid in respect of the supply; and (b) amounts paid after March 19, 2007 and before 2008 as an allowance or reimbursement in respect of a supply of food, beverages or entertainment. (9) Subsection (3) applies to (a) amounts in respect of a supply of food, beverages or entertainment if tax under Part IX of the Act in respect of the supply becomes payable, or is paid without having become payable, in 2008 and no allowance or reimbursement is paid in respect of the supply; and (b) amounts paid in 2008 as an allowance or reimbursement in respect of a supply of food, beverages or entertainment. (10) Subsection (4) applies to (a) amounts in respect of a supply of food, beverages or entertainment if tax under Part IX of the Act in respect of the supply Exécution du budget et de l’ becomes payable, or is paid without having become payable, in 2009 and no allowance or reimbursement is paid in respect of the supply; and (b) amounts paid in 2009 as an allowance or reimbursement in respect of a supply of food, beverages or entertainment. (11) Subsection (5) applies to (a) amounts in respect of a supply of food, beverages or entertainment if tax under Part IX of the Act in respect of the supply becomes payable, or is paid without having become payable, in 2010 and no allowance or reimbursement is paid in respect of the supply; and (b) amounts paid in 2010 as an allowance or reimbursement in respect of a supply of food, beverages or entertainment. (12) Subsection (6) applies to (a) amounts in respect of a supply of food, beverages or entertainment if tax under Part IX of the Act in respect of the supply becomes payable, or is paid without having become payable, after 2010 and no allowance or reimbursement is paid in respect of the supply; and (b) amounts paid after 2010 as an allowance or reimbursement in respect of a supply of food, beverages or entertainment. 1993, c. 27, s. 98(3) 5. (1) Subsection 237(3) of the Act is replaced by the following: Minimum instalment base (3) For the purposes of subsection (1), if a registrant’s instalment base for a reporting period is less than $3,000, it is deemed to be nil. (2) Subsection (1) applies to reporting periods beginning after 2007. C. 35 1997, c. 10, s. 57(1) 6. (1) Subsection 248(1) of the Act is replaced by the following: Election for fiscal years 248. (1) A registrant that is a charity on the first day of a fiscal year of the registrant or whose threshold amount for a fiscal year does not exceed $1,500,000 may make an election to have reporting periods that are fiscal years of the registrant, to take effect on the first day of that fiscal year. 1997, c. 10, s. 57(2) (2) Paragraphs 248(2)(b) and (c) of the Act are replaced by the following: Budget and Economic State (b) if the person is not a charity and the threshold amount of the person for the second or third fiscal quarter of the person in a fiscal year of the person exceeds $1,500,000, the beginning of the first fiscal quarter of the person for which the threshold amount exceeds that amount, and (c) if the person is not a charity and the threshold amount of the person for a fiscal year of the person exceeds $1,500,000, the beginning of that fiscal year. (3) Subsections (1) and (2) apply to fiscal years beginning after 2007. 7. (1) Schedule VII to the Act is amended by adding the following after section 1.1: 1.2 For the purposes of section 1, subsection 140(2) of the Customs Tariff does not apply in respect of the reference to heading 98.04. (2) Subsection (1) is deemed to have come into force on January 1, 1998. PART 2 AMENDMENT RELATING TO EXCISE TAX ON RENEWABLE FUELS R.S., c. E-15 1993, c. 25, s. 56; 2003, c. 15, ss. 61(1) and 62(1) EXCISE TAX ACT 8. (1) Sections 23.4 and 23.5 of the Excise Tax Act are repealed. Exécution du budget et de l’ (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2008. PART 3 AMENDMENTS RELATING TO INCOME TAX R.S., c. 1 (5th Supp.) INCOME TAX ACT 9. (1) Paragraph (a) of the description of B in subsection 12(10.2) of the Income Tax Act is replaced by the following: (a) the total of all amounts each of which is (i) deemed by subsection (10.4) or 104(5.1) or (14.1) to have been paid out of the taxpayer’s NISA Fund No. 2 before the particular time, or (ii) deemed by subsection 70(5.4) or 73(5) to have been paid out of another person’s NISA Fund No. 2 on being transferred to the taxpayer’s NISA Fund No. 2 before the particular time, (2) Section 12 of the Act is amended by adding the following after subsection (10.3): Acquisition of control — corporate NISA Fund No. 2 (10.4) For the purpose of subsection (10.2), if at any time there is an acquisition of control of a corporation, the balance of the corporation’s NISA Fund No. 2, if any, at that time is deemed to be paid out to the corporation immediately before that time. (3) Subsections (1) and (2) apply to the balance in a NISA Fund No. 2 to the extent that that balance consists of contributions made to the fund, and amounts earned on those contributions, in the 2008 and subsequent taxation years. 10. (1) The portion of subsection 17(8) of the Act before paragraph (a) is replaced by the following: C. 35 Exception (8) Subsection (1) does not apply to a corporation resident in Canada for a taxation year of the corporation in respect of an amount owing to the corporation by a non-resident person if the non-resident person is a controlled foreign affiliate of the corporation throughout the period in the year during which the amount is owing to the extent that it is established that the amount owing Budget and Economic State (2) Section 17 of the Act is amended by adding the following after subsection (8): Borrowed money (8.1) Subsection (8.2) applies in respect of money (referred to in this subsection and in subsection (8.2) as “new borrowings”) that a controlled foreign affiliate of a particular corporation resident in Canada has borrowed from the particular corporation to the extent that the affiliate has used the new borrowings (a) to repay money (referred to in this subsection and in subsection (8.2) as “previous borrowings”) previously borrowed from any person or partnership, if (i) the previous borrowings became owing after the last time at which the affiliate became a controlled foreign affiliate of the particular corporation, and (ii) the previous borrowings were, at all times after they became owing, used for a purpose described in subparagraph (8)(a)(i) or (ii); or (b) to pay an amount owing (referred to in this subsection and in subsection (8.2) as the “unpaid purchase price”) by the affiliate for property previously acquired from any person or partnership, if (i) the property was acquired, and the unpaid purchase price became owing, by the affiliate after the last time at which it became a controlled foreign affiliate of the particular corporation, (ii) the unpaid purchase price is in respect of the property, and (iii) throughout the period that began when the unpaid purchase price became owing by the affiliate and ended when the Exécution du budget et de l’ unpaid purchase price was so paid, the property had been used principally to earn income described in clause (8)(a)(i)(A) or (B). Deemed use (8.2) To the extent that this subsection applies in respect of new borrowings, the new borrowings are, for the purpose of subsection (8), deemed to have been used for the purpose for which the proceeds from the previous borrowings were used or were deemed by this subsection to have been used, or to acquire the property in respect of which the unpaid purchase price was payable, as the case may be. (3) The definition “controlled foreign affiliate” in subsection 17(15) of the Act is replaced by the following: “controlled foreign affiliate” « société étrangère affiliée contrôlée » “controlled foreign affiliate”, at any time, of a taxpayer resident in Canada, means a corporation that would, at that time, be a controlled foreign affiliate of the taxpayer within the meaning assigned by the definition “controlled foreign affiliate” in subsection 95(1) if the word “or” were added at the end of paragraph (a) of that definition and (a) subparagraph (b)(ii) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with the taxpayer,”; and (b) subparagraph (b)(iv) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with any relevant Canadian shareholder;”. (4) Subsections (1) and (2) apply to taxation years that begin after February 23, 1998 and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of the taxpayer’s tax, interest and penalties payable under the Act for any taxation year that begins after February 23, 1998 and ends C. 35 Budget and Economic State before October 2, 2007 shall be made that is necessary to take subsections (1) and (2) into account. (5) Subsection (3) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after February 23, 1998, except that, in applying the definition “controlled foreign affiliate”, in subsection 17(15) of the Act, as enacted by subsection (3), (a) for taxation years, of a foreign affiliate of a taxpayer, that begin after 2002 and on or before February 27, 2004, that definition is to be read as follows: “controlled foreign affiliate” has the meaning that would be assigned by the definition “controlled foreign affiliate” in subsection 95(1) for taxation years, of a foreign affiliate of a taxpayer, that begin after 2002 and on or before February 27, 2004, if the word “or” were added at the end of paragraph (a) of that definition and (a) subparagraph (b)(ii) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with the taxpayer,”; and (b) subparagraph (b)(iv) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with any relevant Canadian shareholder;”. (b) for taxation years, of a foreign affiliate of a taxpayer, that begin after February 23, 1998 and before 2003, that definition is to be read as follows: “controlled foreign affiliate” has the meaning that would be assigned by the definition “controlled foreign affiliate” in subsection 95(1) for taxation years, of a foreign affiliate of a taxpayer, that begin after February 23, 1998 and before 2003, if subparagraph (b)(iii) of that definition were read as “each share of the capital stock of a corporation that is owned at that time by the taxpayer and each share of the capital Exécution du budget et de l’ stock of a corporation that is owned at that time by any person resident in Canada with whom the taxpayer does not deal at arm’s length.”. 11. (1) Subsection 18(9) of the Act is amended by striking out the word “and” at the end of paragraph (d), by adding the word “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) for the purpose of the definition “eligible child care space expenditure” in subsection 127(9), the portion of an expenditure (other than for the acquisition of depreciable property) that is made or incurred by a taxpayer in a taxation year and that would, but for paragraph (a), have been deductible under this Act in computing the taxpayer’s income for the year, is deemed (i) not to be made or incurred by the taxpayer in the year, and (ii) to be made or incurred by the taxpayer in the subsequent taxation year to which the expenditure can reasonably be considered to relate. (2) Subsection (1) applies to expenses incurred on or after March 19, 2007. 12. (1) The Act is amended by adding the following after section 18.1: Definitions “aggregate double-dip income” « revenu total résultant d’un cumul de déductions » “double-dip exempt earnings amount” « montant des gains exonérés résultant d’un cumul de déductions » 18.2 (1) The following definitions apply in this section. “aggregate double-dip income”, of a particular corporation for a taxation year in respect of an inter-affiliate loan, means the total of the double-dip exempt earnings amount and the double-dip taxable earnings amount of the particular corporation for the taxation year in respect of the inter-affiliate loan. “double-dip exempt earnings amount”, of a particular corporation for a taxation year in respect of an inter-affiliate loan owing to a foreign affiliate (referred to in this definition as the “earning foreign affiliate”) of the particular corporation or of a corporation that does not C. 35 Budget and Economic State deal at arm’s length with the particular corporation, means the total of all amounts each of which is the amount, in respect of a share (referred to in this definition as the “specified share”) of the capital stock of a particular foreign affiliate of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, determined by the formula A × [B - (C × D)] where A is the participating percentage of the specified share in respect of the earning foreign affiliate at the end of a taxation year of the earning foreign affiliate that ends in the taxation year of the particular corporation; B is the amount of the re-characterized exempt earnings income of the earning foreign affiliate in respect of the inter-affiliate loan for the taxation year of the earning foreign affiliate; C is the foreign accrual tax applicable to the amount determined under the description of B; and D is the relevant tax factor of the particular corporation for the taxation year of the particular corporation. “double-dip taxable earnings amount” « montant des gains imposables résultant d’un cumul de déductions » “double-dip taxable earnings amount” of a particular corporation for a taxation year in respect of an inter-affiliate loan owing to a foreign affiliate (referred to in this definition as the “earning foreign affiliate”), of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, means the total of all amounts each of which is the amount, in respect of a share (referred to in this definition as the “specified share”) of the capital stock of a particular foreign affiliate of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, determined by the formula A × [B - (C × D)] where Exécution du budget et de l’ A is the participating percentage of the specified share in respect of the earning foreign affiliate at the end of a taxation year of the earning foreign affiliate that ends in the taxation year of the particular corporation; B is the amount of the re-characterized taxable earnings income of the earning foreign affiliate in respect of the inter-affiliate loan for the taxation year of the earning foreign affiliate; C is the foreign accrual tax applicable to the amount determined under the description of B; and D is the relevant tax factor of the particular corporation for the taxation year of the particular corporation. “foreign accrual tax” « impôt étranger accumulé » “foreign accrual tax” applicable to an amount of re-characterized income of a foreign affiliate (referred to in this definition as the “earning foreign affiliate”), of a particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, for a taxation year in respect of an inter-affiliate loan owing to the earning foreign affiliate means the total of (a) the amount equal to that portion of any foreign income or profit taxes that was paid by the earning foreign affiliate or any other foreign affiliate, of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, that can reasonably be regarded as applicable to the re-characterized income, and (b) the amount that would, if the re-characterized income were an amount included in computing the particular corporation’s income under subsection 91(1) in respect of the earning foreign affiliate, be prescribed in respect of the earning foreign affiliate to be foreign accrual tax that is applicable to the recharacterized income for the purpose of the definition “foreign accrual tax” in subsection 95(1). “inter-affiliate loan” « prêt entre sociétés affiliées » “inter-affiliate loan” in respect of a particular corporation for a taxation year means a debt that is owing to a foreign affiliate of the particular corporation or of a corporation that does not C. 35 Budget and Economic State deal at arm’s length with the particular corporation or to a partnership of which such a foreign affiliate is a member, if the income that the foreign affiliate derives in a taxation year from the interest paid or payable in respect of the debt is re-characterized income of the foreign affiliate for the taxation year. “participating percentage” « pourcentage de participation » “re-characterized income” « revenu redéfini » “re-characterized exempt earnings income” « montant des gains exonérés redéfinis » “participating percentage” of a share (referred to in this definition as the “specified share”) of the capital stock of a particular foreign affiliate of a particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, held by the particular corporation at the end of a particular taxation year of a nonresident corporation (referred to in this definition as the “earning foreign affiliate”) that ends in the particular corporation’s taxation year, which earning foreign affiliate was, at the end of the particular taxation year, a foreign affiliate of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, means the percentage that would, if the earning foreign affiliate were a controlled foreign affiliate of the particular corporation, be determined under subparagraph (b)(i) or (ii) of the definition “participating percentage” in subsection 95(1) in respect of the specified share in respect of the earning foreign affiliate at the end of the particular taxation year. “re-characterized income” of a foreign affiliate of a corporation for a taxation year in respect of a debt owing to the foreign affiliate means the total of the re-characterized exempt earnings income and the re-characterized taxable earnings income of the foreign affiliate for the taxation year from the debt. “re-characterized exempt earnings income” of a foreign affiliate of a corporation for a taxation year in respect of a debt owing to the foreign affiliate means that portion of the income of the foreign affiliate for the taxation year from the debt that is included (a) under subparagraph 95(2)(a)(ii) in computing the income from an active business of the foreign affiliate for the taxation year, or that would be so included if the income were income from property; and Exécution du budget et de l’ (b) in computing the amount prescribed to be the exempt earnings of the foreign affiliate for the taxation year. “re-characterized taxable earnings income” « montant des gains imposables redéfinis » “re-characterized taxable earnings income” of a foreign affiliate of a corporation for a taxation year in respect of a debt owing to the foreign affiliate means that portion of the income of the foreign affiliate for the taxation year from the debt that is included (a) under subparagraph 95(2)(a)(ii) in computing the income from an active business of the foreign affiliate for the taxation year, or that would be so included if the income were income from property; and (b) in computing the amount prescribed to be the taxable earnings of the foreign affiliate for the taxation year. “taxable earnings base adjustment” « montant de rajustement des gains imposables » “taxable earnings base adjustment” of a particular corporation for a taxation year in respect of a share (referred to in this definition as the “specified share”) of a particular foreign affiliate of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation and in respect of an interaffiliate loan owing to a foreign affiliate of the particular corporation or of a corporation that does not deal at arm’s length with the particular corporation, means the amount determined by the formula A × B/C where A is the amount of interest deduction denied under subsection (2) in respect of the particular corporation in respect of interest relating to the inter-affiliate loan for the taxation year; B is the amount determined to be the doubledip taxable earnings amount of the particular corporation in respect of the inter-affiliate loan that can be attributed to the specified share for the taxation year; and C is the aggregate double-dip income of the particular corporation in respect of the interaffiliate loan for the taxation year. C. 35 Double-dip interest not deductible (2) Notwithstanding any other provision of this Act, in computing the income of a corporation for a taxation year, no amount may be deducted in respect of the corporation’s specified financing expense in respect of an inter-affiliate loan for the taxation year, except to the extent that that specified financing expense exceeds the corporation’s aggregate double-dip income for the taxation year in respect of that inter-affiliate loan. Specified financing expense (3) A particular corporation’s specified financing expense in respect of an inter-affiliate loan for a taxation year, is the amount, if any, by which Budget and Economic State (a) the total of all amounts of interest paid or payable in the taxation year by the particular corporation on, and other costs referred to in paragraph 20(1)(e) deductible in computing the particular corporation’s income for the taxation year in respect of, (i) borrowed money, to the extent that it is reasonable to consider that the borrowed money is used, in that taxation year, directly or indirectly, for the purpose of funding, in whole or in part, the interaffiliate loan, and (ii) an amount payable for property where it is reasonable to consider that the property, or property substituted for it (or, where the property or property substituted for it is a share of the capital stock of a corporation, property of the corporation or of a person related to the corporation, or property substituted for such property) is used, directly or indirectly, for the purpose of funding, in whole or in part, the interaffiliate loan, exceeds Exécution du budget et de l’ (b) if the particular corporation has subsequently loaned the property referred to in paragraph (a), the total of all amounts that are, in respect of that subsequent loan, included in computing the income of the particular corporation for the taxation year and that relate to the period or periods of use referred to in that paragraph. Aggregate double-dip income — related parties (4) Subsection (5) applies to a corporation (referred to in this subsection and subsections (5) to (7) as the “debtor corporation”) and another corporation in respect of a particular taxation year of the debtor corporation and an inter-affiliate loan if (a) the debtor corporation’s specified financing expense for the particular taxation year in respect of the inter-affiliate loan exceeds the debtor corporation’s aggregate double-dip income for the particular taxation year in respect of the inter-affiliate loan; (b) the other corporation’s aggregate doubledip income for a taxation year in respect of the inter-affiliate loan exceeds the other corporation’s specified financing expense for that taxation year in respect of the interaffiliate loan; (c) the other corporation’s taxation year referred to in paragraph (b) ends in the particular taxation year; and (d) at the end of the particular taxation year, the other corporation and the debtor corporation are related. Deemed effects (5) If this subsection applies to a debtor corporation and another corporation in respect of a particular taxation year of the debtor corporation and an inter-affiliate loan, (a) the lesser of the excess determined under paragraph (4)(b) in respect of the other corporation and the excess determined under paragraph (4)(a) in respect of the debtor corporation is deemed to be included in the aggregate double-dip income of the debtor corporation in respect of the inter-affiliate loan and not to be included in the aggregate double-dip income of the other corporation; C. 35 Budget and Economic State (b) this subsection shall not apply to any other corporation in respect of the amount determined under paragraph (a); and (c) for the purpose of determining the taxable earnings base adjustment of the other corporation, the amount determined under paragraph (a) is deemed to be (i) an amount of interest deduction denied to it under subsection (2) in respect of interest relating to the inter-affiliate loan for its taxation year referred to in paragraph 4(b), and (ii) an amount that is included in the aggregate double-dip income in respect of the inter-affiliate loan for its taxation year referred to in paragraph 4(b). Allocation by debtor corporation (6) If subsections (4) and (5) apply to more than one other corporation in respect of a debtor corporation and an inter-affiliate loan, the debtor corporation may allocate the excess double-dip incomes of the other corporations against the specified financing expense of the debtor corporation. Allocation by Minister (7) If a debtor corporation is entitled to make an allocation under subsection (6) but fails to do so, or does so in a manner that allows an excess to remain under subparagraph (4)(a) in respect of the debtor corporation and an excess to remain under subparagraph (4)(b) in respect of one or more other corporations, the Minister may allocate the excess double-dip incomes of the other corporations against the specified financing expense of the debtor corporation. Inter-affiliate loans — exceptions (8) A debt that would, at any time, otherwise be an inter-affiliate loan in respect of a corporation for a taxation year of a particular foreign affiliate is not an inter-affiliate loan at that time, if (a) it is the case that (i) another foreign affiliate, of the corporation or a corporation that does not deal at arm’s length with the corporation, owes the debt, Exécution du budget et de l’ (ii) the particular foreign affiliate and the other foreign affiliate are, at the end of their taxation years that include that time, resident in the same country, and (iii) the particular foreign affiliate and the other foreign affiliate determine their income, for income tax purposes under the income tax laws of that country, on a consolidated or combined basis; or (b) it is the case that (i) the corporation is a taxpayer described in paragraph 95(2)(l)(iv), (ii) the particular foreign affiliate holds the debt, and the other foreign affiliate owes the debt, in the ordinary course of businesses that are described in subparagraph (a)(i) of the definition “investment business” in subsection 95(1) and conducted principally with persons with which those affiliates deal at arm’s length, and (iii) the terms and conditions of the debt are substantially the same as the terms and conditions of similar debt entered into between persons dealing at arm’s length. Partnership rules (9) If a partnership that holds, directly or indirectly, a share of the capital stock of a specified corporation in respect of the partnership has borrowed money or become liable for an amount payable (in this subsection referred to as the “partnership indebtedness”) the interest in respect of which is deductible under paragraph 20(1)(c), (a) there shall be added to the income of each corporation or partnership that is a member of the partnership, an amount equal to the member’s specified proportion of the interest and other borrowing costs referred to in paragraph 20(1)(e) that are deductible in computing the partnership’s income in respect of that member’s specified proportion of the partnership indebtedness; (b) for the purpose of this section and paragraphs 20(1)(c) and (e), an amount equal to the amount added to the member’s income by paragraph (a) shall be deemed to be an C. 35 Budget and Economic State amount of interest or other borrowing cost, as the case may be, that is deductible by the member; and (c) the member shall be deemed to have incurred its specified proportion of the partnership indebtedness and to use the proceeds or property acquired in respect of that indebtedness in the same manner as the partnership. Interpretation (10) For the purpose of subsection (9), (a) a specified corporation in respect of a partnership means a corporation that is, for the purpose of section 95, (i) a foreign affiliate of a member of the partnership, (ii) a foreign affiliate of a person with whom the partnership does not deal at arm’s length, or (iii) a foreign affiliate of a person that does not deal at arm’s length with a member of the partnership; and (b) the specified proportion of a member of a partnership for a fiscal period of the partnership means the proportion that the member’s share of the total income or loss of the partnership for the partnership’s fiscal period is of the partnership’s total income or loss for that period and, for the purpose of this definition, where that income or loss for a period is nil, that proportion shall be computed as if the partnership had income for that period in the amount of $1,000,000. (2) Subsection (1) applies in respect of interest and other borrowing costs paid or payable in respect of a period or periods that begin after 2011. 13. (1) The portion of paragraph (e) of the definition “Canadian newspaper” in subsection 19(5) of the Act before clause (iii)(C) is replaced by the following: (e) a corporation Exécution du budget et de l’ (i) that is incorporated under the laws of Canada or a province, (ii) of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and (iii) that, if it is a corporation having share capital, is (A) a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or (B) a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada, and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that (2) Subsection (1) applies on and after the day on which this Act is assented to. 14. (1) Subsection 20(1) of the Act is amended by adding the following after paragraph (nn): 22 Recapture of investment tax credits — child care space amount C. 35 Budget and Economic State (nn.1) total of all amounts (other than an amount in respect of a disposition of a depreciable property) added because of subsection 127(27.1) or (28.1) to the taxpayer’s tax otherwise payable under this Part for any preceding taxation year; (2) Subsection 20(3) of the Act is replaced by the following: Borrowed money (3) For greater certainty, if a taxpayer uses borrowed money to repay money previously borrowed, or to pay an amount payable for property described in subparagraph (1)(c)(ii) previously acquired (which previously borrowed money or amount payable in respect of previously acquired property is, in this subsection, referred to as the “previous indebtedness”), subject to subsection 20.1(6), for the purposes of paragraphs (1)(c), (e) and (e.1), section 18.2, subsections 20.1(1) and (2), section 21 and subparagraph 95(2)(a)(ii), and for the purpose of paragraph 20(1)(k) of the Income Tax Act, Chapter 148 of the Revised Statutes of Canada, 1952, the borrowed money is deemed to be used for the purpose for which the previous indebtedness was used or incurred, or was deemed by this subsection to have been used or incurred. (3) Subsection (1) applies on and after March 19, 2007. (4) Subsection (2) applies in respect of interest paid or payable in respect of a period or periods that begin after 2011. 15. (1) Subparagraph 38(a.1)(i) of the Act is replaced by the following: (i) the disposition is the making of a gift to a qualified donee of a share, debt obligation or right listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)) or a prescribed debt obligation, or Exécution du budget et de l’ (2) Subsection (1) applies in respect of gifts made on or after March 19, 2007, except that, in its application before the day on which this Act is assented to, the reference to “designated stock exchange” in subparagraph 38(a.1)(i) of the Act, as enacted by subsection (1), shall be read as a reference to “prescribed stock exchange”. 16. (1) Paragraph 53(1)(e) of the Act is amended by striking out the word “and” at the end of subparagraph (xii), by adding the word “and” at the end of subparagraph (xiii) and by adding the following after subparagraph (xiii): (xiv) the total of all amounts each of which is the amount of the taxpayer’s taxable earnings base adjustment (within the meaning assigned by subsection 18.2(1)) in respect of an interest in the partnership for a taxation year that ended before that time; (2) Paragraph 53(2)(c) of the Act is amended by striking out the word “and” at the end of subparagraph (xi), by adding the word “and” at the end of subparagraph (xii) and by adding the following after subparagraph (xii): (xiii) the lesser of (A) the total of all amounts each of which is the amount of a dividend that is included in computing the income of the taxpayer under section 93.1 in respect of the partnership for a taxation year that ended before that time, and (B) the total of all amounts each of which is (I) an amount deducted by the taxpayer under subsection 91(5.2) for a taxation year that ended before that time in respect of a dividend included in computing the amount determined under clause (A), or (II) twice the amount deducted by the taxpayer under subsection 91(5.3) for a taxation year that ended before that time in respect of the disposition of a C. 35 Budget and Economic State share on which a dividend included in computing the amount determined under clause (A) was paid; (3) Subsections (1) and (2) apply after 2011. 17. (1) Paragraph 56(3)(a) of the Act is replaced by the following: (a) the total of all amounts each of which is the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of a scholarship, fellowship or bursary received in connection with the taxpayer’s enrolment (i) in an educational program in respect of which an amount may be deducted under subsection 118.6(2) in computing the taxpayer’s tax payable under this Part for the taxation year, for the immediately preceding taxation year or for the following taxation year, or (ii) in an elementary or secondary school educational program, (2) Subsection (1) applies to the 2007 and subsequent taxation years. 18. (1) Subsection 60(x) of the Act is replaced by the following: Repayment under Canada Education Savings Act (x) the total of all amounts each of which is an amount paid by the taxpayer in the year as a repayment, under the Canada Education Savings Act or under a designated provincial program (as defined in subsection 146.1(1)), of an amount that was included because of subsection 146.1(7) in computing the taxpayer’s income for the year or a preceding taxation year; and (2) Subsection (1) applies to the 2007 and subsequent taxation years. Exécution du budget et de l’ 19. (1) Paragraphs (h) and (i) of the definition “principal-business corporation” in subsection 66(15) of the Act are replaced by the following: (h) the generation of energy using property described in Class 43.1 or 43.2 of Schedule II to the regulations, or any combination thereof, and (i) the development of projects for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in each project would be the capital cost of property described in Class 43.1 or 43.2 of Schedule II to the regulations or any combination thereof, (2) Subsection (1) applies on and after February 23, 2005. 20. (1) The portion of subsection 67.1(1) of the Act before paragraph (a) is replaced by the following: Expenses for food, etc. 67.1 (1) Subject to subsection (1.1), for the purposes of this Act, other than sections 62, 63, 118.01 and 118.2, an amount paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment is deemed to be 50 per cent of the lesser of (2) Section 67.1 of the Act is amended by adding the following after subsection (1): Expenses for food and beverages of long-haul truck drivers (1.1) An amount paid or payable by a longhaul truck driver in respect of the consumption of food or beverages by the driver during an eligible travel period of the driver is deemed to be the amount determined by multiplying the specified percentage in respect of the amount so paid or payable by the lesser of (a) the amount so paid or payable, and (b) a reasonable amount in the circumstances. (3) Section 67.1 of the Act is amended by adding the following after subsection (4): C. 35 Definitions (5) The following definitions apply for the purpose of this section. “eligible travel period” « période de déplacement admissible » “eligible travel period” in respect of a long-haul truck driver is a period during which the driver is away from the municipality or metropolitan area where the specified place in respect of the driver is located for a period of at least 24 continuous hours for the purpose of driving a long-haul truck that transports goods to, or from, a location that is beyond a radius of 160 kilometres from the specified place. “long-haul truck” « grand routier » “long-haul truck driver” « conducteur de grand routier » “specified percentage” « pourcentage déterminé » Budget and Economic State “long-haul truck” means a truck or a tractor that is designed for hauling freight and that has a gross vehicle weight rating (as that term is defined in subsection 2(1) of the Motor Vehicle Safety Regulations) that exceeds 11 788 kilograms. “long-haul truck driver” means an individual whose principal business or principal duty of employment is driving a long-haul truck that transports goods. “specified percentage” in respect of an amount paid or payable is (a) 60 per cent, if the amount is paid or becomes payable on or after March 19, 2007 and before 2008; (b) 65 per cent, if the amount is paid or becomes payable in 2008; (c) 70 per cent, if the amount is paid or becomes payable in 2009; (d) 75 per cent, if the amount is paid or becomes payable in 2010; and (e) 80 per cent, if the amount is paid or becomes payable after 2010. “specified place” « endroit déterminé » “specified place” means, in the case of an employee, the employer’s establishment to which the employee ordinarily reports to work is located and, in the case of an individual whose principal business is to drive a long-haul truck to transport goods, the place where the individual resides. (4) Subsections (1) to (3) apply to amounts that are paid, or become payable, on or after March 19, 2007. Exécution du budget et de l’ 21. (1) Paragraph (b) of the definition “excluded security” in subsection 80(1) of the Act is replaced by the following: (b) a share issued by the corporation to the person under the terms of the debt, where the debt was a bond, debenture or note listed on a designated stock exchange in Canada and the terms for the conversion to the share were not established or substantially modified after the later of February 22, 1994 and the time that the bond, debenture or note was issued; (2) Subsection (1) applies on and after the day on which this Act is assented to. 22. (1) Paragraph 85(1.1)(i) of the Act is replaced by the following: (i) a NISA Fund No. 2, if that property is owned by an individual. (2) Subsection (1) applies to the balance in a NISA Fund No. 2 to the extent that that blance consists of contributions made to the fund, and amounts earned on those contributions, in the 2008 and subsequent taxation years. 23. (1) Paragraph (a) of the definition “public corporation” in subsection 89(1) of the Act is replaced by the following: (a) a corporation that is resident in Canada at the particular time if at that time a class of shares of the capital stock of the corporation is listed on a designated stock exchange in Canada, (2) Subsection (1) applies on and after the day on which this Act is assented to. 24. (1) Section 91 of the Act is amended by adding the following after subsection (5): Deduction of dividend by shareholder (5.1) Where in a taxation year a corporation resident in Canada receives a dividend on a share of the capital stock of a corporation that C. 35 Budget and Economic State was at any time a foreign affiliate of the corporation and subsection (5) does not apply in respect of that dividend, there may be deducted, in respect of such portion of the dividend as is prescribed to have been paid out of the taxable surplus of the affiliate, in computing the corporation’s income for the year, the lesser of (a) the amount, if any, by which that portion of the dividend exceeds the amount, if any, deductible in respect of the dividend under paragraph 113(1)(b), and (b) the amount, if any, by which (i) the total of all amounts required under subparagraph 92(1)(a)(ii) to be added in computing the adjusted cost base to the taxpayer of the share before the dividend was so received by the corporation exceeds (ii) the total of all amounts required under paragraph 92(1)(b) to be deducted in computing the adjusted cost base to the taxpayer of the share before the dividend was so received by the taxpayer. Deduction of dividend by member of partnership (5.2) Where in a taxation year a corporation is deemed under section 93.1 to have received a dividend from a foreign affiliate, there may be deducted, in respect of such portion of the dividend as is prescribed to have been paid out of the taxable surplus of the affiliate, in computing the corporation’s income for the year, the lesser of (a) the amount, if any, by which that portion of the dividend exceeds the amount, if any, deductible in respect of the dividend under paragraph 113(1)(b), and (b) the amount, if any, by which (i) the total of all amounts required under subparagraph 53(1)(e)(xiv) to be added in computing the adjusted cost base to the taxpayer of the partnership interest that are reasonably attributable to a share in respect of which the dividend was paid exceeds Exécution du budget et de l’ (ii) the total of all amounts required under subparagraph 53(2)(c)(xiii) to be deducted in computing the adjusted cost base to the taxpayer of the partnership interest that are reasonably attributable to a share in respect of which the dividend was paid. Deduction of capital gain by member of partnership (5.3) Where in a taxation year a taxpayer is a member of a partnership, there may be deducted from the taxpayer’s income for the taxation year an amount equal to the lesser of (a) ½ the amount of the taxpayer’s specified proportion (within the meaning of paragraph 18.2(10)(b)) of any capital gain that is attributable to a disposition by the partnership of a share of the capital stock of a corporation, and (b) the amount, if any, by which (i) the total of all amounts required under subparagraph 53(1)(e)(xiv) to be added in computing the adjusted cost base to the taxpayer of its interest in the partnership that are reasonably attributable to the share exceeds (ii) the total of all amounts required under subparagraph 53(2)(c)(xiii) to be deducted in computing the adjusted cost base to the taxpayer of the partnership interest that are reasonably attributable to the share. (2) Subsection (1) applies after 2011. 25. (1) Subsection 92(1) of the Act is replaced by the following: Adjusted cost base of share of foreign affiliate 92. (1) In computing, at any time in a taxation year, the adjusted cost base to a taxpayer resident in Canada of any share owned by the taxpayer of the capital stock of a foreign affiliate of the taxpayer, (a) there shall be added in respect of that share C. 35 Budget and Economic State (i) any amount included in respect of that share under subsection 91(1) or (3) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been required to have been so included in computing the taxpayer’s income but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952), and (ii) the taxable earnings base adjustment (as defined in subsection 18.2(1)) of the taxpayer in respect of the share for the year or any preceding taxation year; and (b) there shall be deducted in respect of that share (i) any amount deducted by the taxpayer under subsection 91(2) or (4), and (ii) any dividend received by the taxpayer before that time, to the extent of the amount deducted by the taxpayer, in respect of the dividend, under subsection 91(5) or (5.1) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been deductible by the taxpayer but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada,1952). (2) Subsection (1) applies after 2011. 26. (1) The definitions “active business”, “controlled foreign affiliate”, “income from an active business” and “income from property” in subsection 95(1) of the Act are replaced by the following: “active business” « entreprise exploitée activement » Exécution du budget et de l’ “active business” of a foreign affiliate of a taxpayer means any business carried on by the foreign affiliate other than (a) an investment business carried on by the foreign affiliate, (b) a business that is deemed by subsection (2) to be a business other than an active business carried on by the foreign affiliate, or (c) a non-qualifying business of the foreign affiliate; “controlled foreign affiliate” « société étrangère affiliée contrôlée » “controlled foreign affiliate”, at any time, of a taxpayer resident in Canada, means (a) a foreign affiliate of the taxpayer that is, at that time, controlled by the taxpayer, or (b) a foreign affiliate of the taxpayer that would, at that time, be controlled by the taxpayer if the taxpayer owned (i) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the taxpayer, (ii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with the taxpayer, (iii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the persons (each of whom is referred to in this definition as a “relevant Canadian shareholder”), in any set of persons not exceeding four (which set of persons shall be determined without reference to the existence of or the absence of any relationship, connection or action in concert between those persons), who (A) are resident in Canada, (B) are not the taxpayer or a person described in subparagraph (ii), and (C) own, at that time, shares of the capital stock of the foreign affiliate, and C. 35 Budget and Economic State (iv) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with any relevant Canadian shareholder; “income from an active business” « revenu provenant d’une entreprise exploitée activement » “income from an active business” of a foreign affiliate of a taxpayer for a taxation year includes the foreign affiliate’s income for the taxation year that pertains to or is incident to that active business but does not include (a) the foreign affiliate’s income from property for the taxation year, (b) the foreign affiliate’s income for the taxation year from a business that is deemed by subsection (2) to be a business other than an active business of the foreign affiliate, or (c) the foreign affiliate’s income from a nonqualifying business of the foreign affiliate for the taxation year; “income from property” « revenu de biens » “income from property” of a foreign affiliate of a taxpayer for a taxation year includes the foreign affiliate’s income for the taxation year from an investment business and the foreign affiliate’s income for the taxation year from an adventure or concern in the nature of trade, but does not include (a) the foreign affiliate’s income for the taxation year from a business that is deemed by subsection (2) to be a business other than an active business of the foreign affiliate, or (b) the foreign affiliate’s income for the taxation year that pertains to or is incident to (i) an active business of the foreign affiliate, or (ii) a non-qualifying business of the foreign affiliate; Exécution du budget et de l’ (2) The portion of the definition “excluded property” in subsection 95(1) of the Act before paragraph (a) of that definition and paragraphs (a) to (c) of that definition are replaced by the following: “excluded property” « bien exclu » “excluded property”, at a particular time, of a foreign affiliate of a taxpayer means any property of the foreign affiliate that is (a) used or held by the foreign affiliate principally for the purpose of gaining or producing income from an active business carried on by it, (b) shares of the capital stock of another foreign affiliate of the taxpayer where all or substantially all of the fair market value of the property of the other foreign affiliate is attributable to property, of that other foreign affiliate, that is excluded property, (c) property all or substantially all of the income from which is, or would be, if there were income from the property, income from an active business (which, for this purpose, includes income that would be deemed to be income from an active business by paragraph (2)(a) if that paragraph were read without reference to subparagraph (v)), or (c.1) property arising under or as a result of an agreement that (i) provides for the purchase, sale or exchange of currency, and (ii) either (A) can reasonably be considered to have been made by the affiliate to reduce its risk, with respect to an amount that was receivable under an agreement that relates to the sale of excluded property or with respect to an amount that was receivable and was a property described in paragraph (c), of fluctuations in the value of the currency in which the amount receivable was denominated, or (B) can reasonably be considered to have been made by the affiliate to reduce its risk, with respect to any of C. 35 Budget and Economic State the following amounts, of fluctuations in the value of the currency in which that amount was denominated: (I) an amount that was payable under an agreement that relates to the purchase of property that (at all times between the time of the acquisition of the property and the particular time) is excluded property of the affiliate, (II) an amount of indebtedness, to the extent that the proceeds derived from the issuance or incurring of the indebtedness can reasonably be considered to have been used to acquire property that (at all times between the time of the acquisition of that property and the particular time) is excluded property of the affiliate, or (III) an amount of indebtedness, to the extent that the proceeds derived from the issuance or incurring of the indebtedness can reasonably be considered to have been used to repay the outstanding balance of 1. an amount that, immediately before the time of that repayment, is described by subclause (I), 2. an amount of indebtedness of the affiliate that, immediately before the time of that repayment, is described by subclause (II), or 3. an amount of indebtedness of the affiliate that, immediately before the time of that repayment, is described by this subclause, (3) The portion of the description of A in the definition “foreign accrual property income” in subsection 95(1) of the Act before paragraph (a) is replaced by the following: A is the amount that would, if section 80 did not apply to the affiliate for the year or a preceding taxation year, be the total of all amounts, each of which is the affiliate’s income for the year from property, the affiliate’s income for the year from a business other than an active business or Exécution du budget et de l’ the affiliate’s income for the year from a non-qualifying business of the affiliate, in each case that amount being determined as if each amount described in clause (2)(a)(ii)(D) that was paid or payable, directly or indirectly, by the affiliate to another foreign affiliate of the taxpayer or of a person with whom the taxpayer does not deal at arm’s length were nil where an amount in respect of the income derived by the other foreign affiliate from that amount that was paid or payable to it by the affiliate was added in computing its income from an active business, other than (4) The description of D in the definition “foreign accrual property income” in subsection 95(1) of the Act is replaced by the following: D is the total of all amounts, each of which is the affiliate’s loss for the year from property, the affiliate’s loss for the year from a business other than an active business of the affiliate or the affiliate’s loss for the year from a non-qualifying business of the affiliate, in each case that amount being determined as if there were not included in the affiliate’s income any amount described in any of paragraphs (a) to (d) of the description of A and as if each amount described in clause (2)(a)(ii)(D) that was paid or payable, directly or indirectly, by the affiliate to another foreign affiliate of the taxpayer or of a person with whom the taxpayer does not deal at arm’s length were nil where an amount in respect of the income derived by the other foreign affiliate from that amount that was paid or payable to it by the affiliate was added in computing its income from an active business, (5) The description of E in the definition “foreign accrual property income” in subsection 95(1) of the Act is replaced by the following: C. 35 Budget and Economic State E is the amount of the affiliate’s allowable capital losses for the year from dispositions of property (other than excluded property) that can reasonably be considered to have accrued after its 1975 taxation year, (6) The portion of the definition “investment business” in subsection 95(1) of the Act before paragraph (a) is replaced by the following: “investment business” « entreprise de placement » “investment business” of a foreign affiliate of a taxpayer means a business carried on by the foreign affiliate in a taxation year (other than a business deemed by subsection (2) to be a business other than an active business carried on by the foreign affiliate and other than a nonqualifying business of the foreign affiliate) the principal purpose of which is to derive income from property (including interest, dividends, rents, royalties or any similar returns or substitutes for such interest, dividends, rents, royalties or returns), income from the insurance or reinsurance of risks, income from the factoring of trade accounts receivable, or profits from the disposition of investment property, unless it is established by the taxpayer or the foreign affiliate that, throughout the period in the taxation year during which the business was carried on by the foreign affiliate, (7) Subparagraph (a)(i) of the definition “investment business” in subsection 95(1) of the Act is replaced by the following: (i) a business carried on by it as a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities, the activities of which are regulated under the laws (A) of each country in which the business is carried on through a permanent establishment (as defined by regulation) in that country and of the country under whose laws the affiliate is governed and any of exists, was Exécution du budget et de l’ (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, (B) of the country in which the business is principally carried on, or (C) if the affiliate is related to a nonresident corporation, of the country under whose laws that non-resident corporation is governed and any of exists, was (unless that non-resident corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, or (8) The definition “investment business” in subsection 95(1) of the Act is amended by striking out the word “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) either (i) the affiliate (otherwise than as a member of a partnership) carries on the business (the affiliate being, in respect of those times, in that period of the year, that it so carries on the business, referred to in paragraph (c) as the “operator”), or (ii) the affiliate carries on the business as a qualifying member of a partnership (the partnership being, in respect of those times, in that period of the year, that the affiliate so carries on the business, referred to in paragraph (c) as the “operator”), and (c) the operator employs (i) more than five employees full time in the active conduct of the business, or (ii) the equivalent of more than five employees full time in the active conduct of the business taking into consideration only (A) the services provided by employees of the operator, and C. 35 Budget and Economic State (B) the services provided outside Canada to the operator by any one or more persons each of whom is, during the time at which the services were performed by the person, an employee of (I) a corporation related to the affiliate (otherwise than because of a right referred to in paragraph 251(5)(b)), (II) in the case where the operator is the affiliate, 1. a corporation (referred to in this subparagraph as a “providing shareholder”) that is a qualifying shareholder of the affiliate, 2. a designated corporation in respect of the affiliate, or 3. a designated partnership in respect of the affiliate, and (III) in the case where the operator is the partnership described in subparagraph (b)(ii), 1. any person (referred to in this subparagraph as a “providing member”) who is a qualifying member of that partnership, 2. a designated corporation in respect of the affiliate, or 3. a designated partnership in respect of the affiliate, if the corporations referred to in subclause (B)(I) and the designated corporations, designated partnerships, providing shareholders or providing members referred to in subclauses (B)(II) and (III) receive compensation from the operator for the services provided to the operator by those employees the value of which is not less than the cost to those corporations, partnerships, shareholders or members of the compensation paid or accruing to the benefit of those employees that performed the services during the time at which the services were performed by those employees; Exécution du budget et de l’ (9) Subsection 95(1) of the Act is amended by adding the following in alphabetical order: “eligible trust” « fiducie admissible » “eligible trust”, at any time, means a trust, other than a trust (a) created or maintained for charitable purposes, (b) governed by an employee benefit plan, (c) described in paragraph (a.1) of the definition “trust” in subsection 108(1), (d) governed by a salary deferral arrangement, (e) operated for the purpose of administering or providing superannuation, pension, retirement or employee benefits, or (f) where the amount of income or capital that any entity may receive directly from the trust at any time as a beneficiary under the trust depends on the exercise by any entity of, or the failure by any entity to exercise, a discretionary power; “entity” « entité » “exempt trust” « fiducie exonérée » “entity” includes an association, a corporation, a fund, a natural person, a joint venture, an organization, a partnership, a syndicate and a trust; “exempt trust”, at a particular time in respect of a taxpayer resident in Canada, means a trust that, at that time, is a trust under which the interest of each beneficiary under the trust is, at all times that the interest exists during the trust’s taxation year that includes the particular time, a specified fixed interest of the beneficiary in the trust, if at the particular time (a) the trust is an eligible trust, (b) there are at least 150 beneficiaries each of whom holds a specified fixed interest, in the trust, that has a fair market value of at least $500, and (c) the total of all amounts each of which is the fair market value of an interest as a beneficiary under the trust held by a specified C. 35 Budget and Economic State purchaser in respect of the taxpayer is not more than 10% of the total fair market value of all interests as a beneficiary under the trust; “income from a non-qualifying business” « revenu provenant d’une entreprise non admissible » “income from a non-qualifying business” of a foreign affiliate of a taxpayer resident in Canada for a taxation year includes the foreign affiliate’s income for the taxation year that pertains to or is incident to that non-qualifying business, but does not include (a) the foreign affiliate’s income from property for the taxation year, or (b) the foreign affiliate’s income for the taxation year from a business that is deemed by subsection (2) to be a business other than an active business of the foreign affiliate; “non-qualifying business” « entreprise non admissible » “non-qualifying business” of a foreign affiliate of a taxpayer at any time means a business carried on by the foreign affiliate through a permanent establishment in a jurisdiction that, at the end of the foreign affiliate’s taxation year that includes that time, is a non-qualifying country, other than (a) an investment business of the foreign affiliate, or (b) a business that is deemed by subsection (2) to be a business other than an active business of the foreign affiliate; “non-qualifying country” « pays non admissible » “non-qualifying country” at any time means a country or other jurisdiction with which (a) Canada neither has a tax treaty at that time nor has, before that time, signed an agreement that will, on coming into effect, be a tax treaty, (b) Canada does not have a comprehensive tax information exchange agreement that is in force and has effect at that time, and (c) Canada has, more than 60 months before that time, either (i) begun negotiations for a comprehensive tax information exchange agreement (unless that time is before 2014 and Canada was, on March 19, 2007, in the course of negotiating a comprehensive tax information exchange agreement with that jurisdiction), or Exécution du budget et de l’ (ii) sought, by written invitation, to enter into negotiations for a comprehensive tax information exchange agreement (unless that time is before 2014 and Canada was, on March 19, 2007, in the course of negotiating a comprehensive tax information exchange agreement with that jurisdiction); “specified fixed interest” « participation fixe désignée » “specified fixed interest”, at any time, of an entity in a trust, means an interest of the entity as a beneficiary under the trust if (a) the interest includes, at that time, rights of the entity as a beneficiary under the trust to receive, at or after that time and directly from the trust, income and capital of the trust, (b) the interest was issued by the trust, at or before that time, to an entity, in exchange for consideration and the fair market value, at the time at which the interest was issued, of that consideration was equal to the fair market value, at the time at which it was issued, of the interest, (c) the only manner in which any part of the interest may cease to be the entity’s is by way of a disposition (determined without reference to paragraph (i) of the definition “disposition” in subsection 248(1) and paragraph 248(8)(c)) by the entity of that part, and (d) no amount of income or capital of the trust that any entity may receive directly from the trust at any time as a beneficiary under the trust depends on the exercise by any entity of, or the failure by any entity to exercise, a discretionary power; “specified purchaser” « acheteur déterminé » “specified purchaser”, at any time, in respect of a particular taxpayer resident in Canada, means an entity that is, at that time, (a) the particular taxpayer, (b) an entity resident in Canada with which the particular taxpayer does not deal at arm’s length, (c) a foreign affiliate of an entity described in any of paragraphs (a) and (b) and (d) to (f), C. 35 Budget and Economic State (d) a trust (other than an exempt trust) in which an entity described in any of paragraphs (a) to (c) and (e) and (f) is beneficially interested, (e) a partnership of which an entity described in any of paragraphs (a) to (d) and (f) is a member, or (f) an entity (other than an entity described in any of paragraphs (a) to (e)) with which an entity described in any of paragraphs (a) to (e) does not deal at arm’s length; (10) Paragraph 95(2)(a) of the Act is replaced by the following: (a) in computing the income or loss from an active business for a taxation year of a particular foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout the year or that is a controlled foreign affiliate of the taxpayer throughout the year, there shall be included any income or loss of the particular foreign affiliate for the year from sources in a country other than Canada that would otherwise be income or loss from property of the particular foreign affiliate for the year to the extent that (i) the income or loss Exécution du budget et de l’ (A) is derived by the particular foreign affiliate from activities that can reasonably be considered to be directly related to active business activities carried on in a country other than Canada by (I) another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year, or (II) a life insurance corporation that is resident in Canada throughout the year and that is 1. the taxpayer, 2. a person who controls the taxpayer, 3. a person controlled by the taxpayer, or 4. a person controlled by a person who controls the taxpayer, and (B) would be included in computing the amount prescribed to be the earnings or loss, from an active business carried on in a country other than Canada, of (I) that other foreign affiliate referred to in subclause (A)(I) if the income were earned by it, or (II) the life insurance corporation referred to in subclause (A)(II) if that life insurance corporation were a foreign affiliate of the taxpayer and the income were earned by it, (ii) the income or loss is derived from amounts that were paid or payable, directly or indirectly, to the particular foreign affiliate or a partnership of which the particular foreign affiliate was a member (A) by a life insurance corporation that is resident in Canada and that is the taxpayer, a person who controls the taxpayer, a person controlled by the taxpayer or a person controlled by a person who controls the taxpayer, to the extent that those amounts that were paid or payable were for expenditures that are deductible in a taxation year of the life C. 35 Budget and Economic State insurance corporation by the life insurance corporation in computing its income or loss for a taxation year from carrying on its life insurance business outside Canada and are not deductible in computing its income or loss for a taxation year from carrying on its life insurance business in Canada, (B) by (I) another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year, to the extent that those amounts that were paid or payable are for expenditures that were deductible by that other foreign affiliate in computing the amounts prescribed to be its earnings or loss for a taxation year from an active business (other than an active business carried on in Canada), or (II) a partnership of which another foreign affiliate of the taxpayer (in respect of which other foreign affiliate the taxpayer has a qualifying interest throughout the year) is a qualifying member throughout each period, in the fiscal period of the partnership that ends in the year, in which that other foreign affiliate was a member of the partnership, to the extent that those amounts that were paid or payable are for expenditures that are deductible by the partnership in computing that other foreign affiliate’s share of any income or loss of the partnership, for a fiscal period, that is included in computing the amounts prescribed to be that other foreign affiliate’s earnings or loss for a taxation year from an active business (other than an active business carried on in Canada), (C) by a partnership of which the particular foreign affiliate is a qualifying member throughout each period, in the fiscal period of the partnership that ends in the year, in which the particular Exécution du budget et de l’ foreign affiliate was a member of the partnership, to the extent that those amounts that were paid or payable are for expenditures that are deductible by the partnership in computing the particular foreign affiliate’s share of any income or loss of the partnership, for a fiscal period, that is included in computing the amounts prescribed to be the particular foreign affiliate’s earnings or loss for a taxation year from an active business (other than an active business carried on in Canada), or (D) by another foreign affiliate (referred to in this clause as the “second affiliate”) of the taxpayer — in respect of which the taxpayer has a qualifying interest throughout the year — to the extent that the amounts are paid or payable by the second affiliate, in respect of any particular period in the year, (I) under a legal obligation to pay interest on borrowed money used for the purpose of earning income from property, or (II) on an amount payable for property acquired for the purpose of gaining or producing income from property where (III) the property is, throughout the particular period, excluded property of the second affiliate that is shares of the capital stock of a corporation (referred to in this clause as the “third affiliate”) which is, throughout the particular period, a foreign affiliate (other than the particular foreign affiliate) of the taxpayer in respect of which the taxpayer has a qualifying interest, (IV) the second affiliate and the third affiliate are resident in the same country for each of their taxation years (each of which taxation years is referred to in subclause (V) as a C. 35 Budget and Economic State “relevant taxation year” of the second affiliate or of the third affiliate, as the case may be) that end in the year, and (V) in respect of each of the second affiliate and the third affiliate for each relevant taxation year of that affiliate, either 1. that affiliate is subject to income taxation in that country in that relevant taxation year, or 2. the members or shareholders of that affiliate (which, for the purpose of this sub-subclause, includes a person that has, directly or indirectly, an interest, or for civil law a right, in a share of the capital stock of, or in an equity interest in, the affiliate) at the end of that relevant taxation year are subject to income taxation in that country on, in aggregate, all or substantially all of the income of that affiliate for that relevant taxation year in their taxation years in which that relevant taxation year ends, (iii) the income or loss is derived by the particular foreign affiliate from the factoring of trade accounts receivable acquired by the particular foreign affiliate, or a partnership of which the particular foreign affiliate was a member, from another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year to the extent that the accounts receivable arose in the course of an active business carried on in a country other than Canada by that other foreign affiliate, (iv) the income or loss is derived by the particular foreign affiliate from loans or lending assets acquired by the particular foreign affiliate, or a partnership of which the particular foreign affiliate was a member, from another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year, to the extent that the loans or lending assets arose in the course of an Exécution du budget et de l’ active business carried on in a country other than Canada by that other foreign affiliate, (v) the income or loss is derived by the particular foreign affiliate from the disposition of excluded property that is not capital property, or (vi) the income or loss is derived by the particular foreign affiliate under or as a result of an agreement that provides for the purchase, sale or exchange of currency and that can reasonably be considered to have been made by the particular foreign affiliate to reduce (A) its risk — with respect to an amount that increases the amount required by this paragraph to be included in computing the particular foreign affiliate’s income for a taxation year from an active business or that decreases the amount required by this paragraph to be included in computing the particular foreign affiliate’s loss for a taxation year from an active business — of fluctuations in the value of the currency in which the amount was denominated, or (B) its risk — with respect to an amount that decreases the amount required by this paragraph to be included in computing the particular foreign affiliate’s income for a taxation year from an active business or that increases the amount required by this paragraph to be included in computing the particular foreign affiliate’s loss for a taxation year from an active business — of fluctuations in the value of the currency in which the amount was denominated; C. 35 Budget and Economic State (11) Subparagraphs 95(2)(a.1)(i) and (ii) of the Act are replaced by the following: (i) it is reasonable to conclude that the cost to any person of the property (other than property that is designated property) is relevant in computing the income from a business carried on by the taxpayer or by a person resident in Canada with whom the taxpayer does not deal at arm’s length or is relevant in computing the income from a business carried on in Canada by a nonresident person with whom the taxpayer does not deal at arm’s length, and (ii) the property was neither (A) manufactured, produced, grown, extracted or processed in the country (I) under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, and (II) in which the affiliate’s business is principally carried on, nor (B) an interest in real property, or a real right in an immovable, located in, or a foreign resource property in respect of, the country (I) under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, and (II) in which the affiliate’s business is principally carried on, (12) Paragraph 95(2)(b) of the Act is replaced by the following: (b) the provision, by a foreign affiliate of a taxpayer, of services or of an undertaking to provide services Exécution du budget et de l’ (i) is deemed to be a separate business, other than an active business, carried on by the affiliate, and any income from that business or that pertains to or is incident to that business is deemed to be income from a business other than an active business, to the extent that the amounts paid or payable in consideration for those services or for the undertaking to provide services (A) are deductible, or can reasonably be considered to relate to amounts that are deductible, in computing the income from a business carried on in Canada, by (I) any taxpayer of whom the affiliate is a foreign affiliate, or (II) another taxpayer who does not deal at arm’s length with 1. the affiliate, or 2. any taxpayer of whom the affiliate is a foreign affiliate, or (B) are deductible, or can reasonably be considered to relate to an amount that is deductible, in computing the foreign accrual property income of a foreign affiliate of (I) any taxpayer of whom the affiliate is a foreign affiliate, or (II) another taxpayer who does not deal at arm’s length with 1. the affiliate, or 2. any taxpayer of whom the affiliate is a foreign affiliate, and (ii) is deemed to be a separate business, other than an active business, carried on by the affiliate, and any income from that business or that pertains to or is incident to that business is deemed to be income from a business other than an active business, to the extent that the services are, or are to be, performed by (A) any taxpayer of whom the affiliate is a foreign affiliate, (B) another taxpayer who does not deal at arm’s length with C. 35 Budget and Economic State (I) the affiliate, or (II) any taxpayer of whom the affiliate is a foreign affiliate, (C) a partnership any member of which is a person described in clause (A) or (B), or (D) a partnership in which any person or partnership described in any of clauses (A) to (C) has, directly or indirectly, a partnership interest; (13) Paragraph 95(2)(g) of the Act is replaced by the following: (g) income earned, a loss incurred or a capital gain or capital loss realized, as the case may be, in a taxation year by a particular foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout the taxation year or a particular foreign affiliate of a taxpayer that is a controlled foreign affiliate of the taxpayer throughout the taxation year, because of a fluctuation in the value of the currency of a country other than Canada relative to the value of Canadian currency, is deemed to be nil if it is earned, incurred or realized in reference to any of the following sources: (i) a debt obligation that was owing to (A) another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year (which other foreign affiliate is referred to in this paragraph as a “qualified foreign affiliate”) by the particular affiliate, or (B) the particular affiliate by a qualified foreign affiliate, (ii) the redemption, cancellation or acquisition of a share of the capital stock of, or the reduction of the capital of, the particular affiliate or a qualified foreign affiliate (which particular affiliate or which qualified foreign affiliate is referred to in this subparagraph as the “issuing corporation”) by the issuing corporation, or Exécution du budget et de l’ (iii) the disposition to a qualified foreign affiliate of a share of the capital stock of another qualified foreign affiliate; (g.01) any income, loss, capital gain or capital loss, derived by a foreign affiliate of a taxpayer under or as a result of an agreement that provides for the purchase, sale or exchange of currency and that can reasonably be considered to have been made by the foreign affiliate to reduce its risk (with respect to any source, any particular income, gain or loss determined in reference to which is deemed by paragraph (g) to be nil) of fluctuations in the value of currency, is, to the extent of the absolute value of the particular income, gain or loss, deemed to be nil; (g.02) in applying subsection 39(2) for the purpose of this subdivision (other than sections 94 and 94.1), the gains and losses of a foreign affiliate of a taxpayer in respect of excluded property are to be computed in respect of the taxpayer separately from the gains and losses of the foreign affiliate in respect of property that is not excluded property; (g.03) if at any time a particular foreign affiliate referred to in paragraph (g) is a member of a partnership or a qualified foreign affiliate referred to in that paragraph is a member of a partnership, (i) in applying this paragraph, where a debt obligation is owing at that time by a debtor to the partnership of which the particular foreign affiliate is a member, the debt obligation is deemed to be owing at that time by the debtor to the particular foreign affiliate in the proportion that the particular foreign affiliate shared in any income earned, loss incurred or capital gain or capital loss realized by the partnership in respect of the debt obligation, (ii) in applying this paragraph, where a debt obligation is owing at that time to a creditor by the partnership of which the particular foreign affiliate is a member, the debt obligation is deemed to be owing at that time to the creditor by the particular foreign affiliate in the proportion that the C. 35 Budget and Economic State particular foreign affiliate shared in any income earned, loss incurred or capital gain or capital loss realized by the partnership in respect of the debt obligation, (iii) in applying paragraph (g) and this paragraph, where a debt obligation is owing at that time by a debtor to the partnership of which the qualified foreign affiliate is a member, the debt obligation is deemed to be owing at that time by the debtor to the qualified foreign affiliate in the proportion that the qualified foreign affiliate shared in any income earned, loss incurred or capital gain or capital loss realized by the partnership in respect of the debt obligation, (iv) in applying paragraph (g) and this paragraph, where a debt obligation is owing at that time to a creditor by the partnership of which the qualified foreign affiliate is a member, the debt obligation is deemed to be owing at that time to the creditor by the qualified foreign affiliate in the proportion that the qualified foreign affiliate shared in any income earned, loss incurred or capital gain or capital loss realized by the partnership in respect of the debt obligation, and (v) in computing the particular foreign affiliate’s income or loss from a partnership, any income earned, loss incurred or capital gain or capital loss realized, as the case may be, by the partnership — in respect of the portion of a debt obligation owing to or owing by the partnership that is deemed by any of subparagraphs (i) to (iv) to be a debt obligation owing to or owing by the particular foreign affiliate (referred to in this subparagraph as the “allocated debt obligation”) — because of a fluctuation in the value of the currency of a country other than Canada relative to the value of Canadian currency, that is attributable to the allocated debt obligation is deemed to be nil to the extent that paragraph (g) would, if the rules in subparagraphs (i) to (iv) were applied, have applied to the particular foreign affiliate, to deem to be nil the income Exécution du budget et de l’ earned, loss incurred or capital gain or capital loss realized, as the case may be, by the particular foreign affiliate in respect of the allocated debt obligation, because of a fluctuation in the value of the currency of a country other than Canada relative to the value of Canadian currency; (14) Paragraph 95(2)(i) of the Act is replaced by the following: (i) any income, gain or loss of a foreign affiliate of a taxpayer or of a partnership of which a foreign affiliate of a taxpayer is a member (which foreign affiliate or partnership is referred to in this paragraph as the “debtor”), for a taxation year or fiscal period of the debtor, as the case may be, is deemed to be income, a gain or a loss, as the case may be, from the disposition of an excluded property of the debtor, if the income, gain or loss is (i) derived from the settlement or extinguishment of a debt of the debtor all or substantially all of the proceeds from which (A) were used to acquire property, if at all times after the time at which the debt became debt of the debtor and before the time of that settlement or extinguishment, the property (or property substituted for the property) was property of the debtor and was, or would if the debtor were a foreign affiliate of the taxpayer be, excluded property of the debtor, (B) were used at all times to earn income from an active business carried on by the debtor, or (C) were used by the debtor for a combination of the uses described in clause (A) or (B), (ii) derived from the settlement or extinguishment of a debt of the debtor all or substantially all of the proceeds from C. 35 Budget and Economic State which were used to settle or extinguish a debt referred to in subparagraph (i) or in this subparagraph, or (iii) derived under or as a result of an agreement that provides for the purchase, sale or exchange of currency and that can reasonably be considered to have been made by the debtor to reduce its risk, with respect to a debt referred to in subparagraph (i) or (ii), of fluctuations in the value of the currency in which the debt was denominated; (15) Subparagraph 95(2)(l)(iii) of the Act is replaced by the following: (iii) the business is carried on by the affiliate as a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities, the activities of which are regulated under the laws (A) of each country in which the business is carried on through a permanent establishment (as defined by regulation) in that country and of the country under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, (B) of the country in which the business is principally carried on, or (C) if the affiliate is related to a nonresident corporation, of the country under whose laws that non-resident corporation is governed and any of exists, was (unless that non-resident corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, and Exécution du budget et de l’ (16) Subsection 95(2) of the Act is amended by striking out the word “and” at the end of paragraph (l) and by adding the following after paragraph (m): (n) in applying paragraphs (a) and (g) and subsections (2.2) and (2.21), in applying paragraph (b) of the description of A in the formula in the definition “foreign accrual property income” in subsection (1) and in applying paragraph (d) of the definition “exempt earnings”, and paragraph (c) of the definition “exempt loss”, in subsection 5907(1) of the Regulations, a non-resident corporation is deemed to be, at any time, a foreign affiliate of a particular corporation resident in Canada, and a foreign affiliate of the particular corporation in respect of which the particular corporation has a qualifying interest, if at that time (i) the non-resident corporation is a foreign affiliate of another corporation that is resident in Canada and that is related (otherwise than because of a right referred to in paragraph 251(5)(b)) to the particular corporation, and (ii) that other corporation has a qualifying interest in respect of the non-resident corporation; (o) a particular person is a qualifying member of a partnership at a particular time if, at that time, the particular person is a member of the partnership and (i) throughout the period, in the fiscal period of the partnership that includes the particular time, during which the member was a member of the partnership, the particular person is, on a regular, continuous and substantial basis (A) actively engaged in those activities, of the principal business of the partnership carried on in that fiscal period by the partnership, that are other than activities connected with the provision of or the acquisition of funds required for the operation of that principal business, or C. 35 Budget and Economic State (B) actively engaged in those activities, of a particular business carried on in that fiscal period by the particular person (otherwise than as a member of a partnership) that is similar to the principal business carried on in that fiscal period by the partnership, that are other than activities connected with the provision of or the acquisition of funds required for the operation of the particular business, or (ii) throughout the period, in the fiscal period of the partnership that includes the particular time, during which the particular person was a member of the partnership (A) the total of the fair market value of all partnership interests in the partnership owned by the particular person was equal to or greater than 1% of the total of the fair market value of all partnership interests in the partnership owned by all members of the partnership, and (B) the total of the fair market value of all partnership interests in the partnership owned by the particular person or persons (other than trusts) related to the particular person was equal to or greater than 10% of the total of the fair market value of all partnership interests in the partnership owned by all members of the partnership; (p) a particular person is a qualifying shareholder of a corporation at any time if throughout the period, in the taxation year of the corporation that includes that time, during which the particular person was a shareholder of the corporation (i) the particular person owned 1% or more of the issued and outstanding shares (having full voting rights under all circumstances) of the capital stock of the corporation, (ii) the particular person, or the particular person and persons (other than trusts) related to the particular person, owned 10% or more of the issued and outstanding Exécution du budget et de l’ shares (having full voting rights under all circumstances) of the capital stock of the corporation, (iii) the total of the fair market value of all the issued and outstanding shares of the capital stock of the corporation owned by the particular person is 1% or more of the total fair market value of all the issued and outstanding shares of the capital stock of the corporation, and (iv) the total of the fair market value of all the issued and outstanding shares of the capital stock of the corporation owned by the particular person or by persons (other than trusts) related to the particular person is 10% or more of the total fair market value of all the issued and outstanding shares of the capital stock of the corporation; (q) in applying paragraphs (o) and (p), (i) where interests in any partnership or shares of the capital stock of any corporation (which interests or shares are referred to in this subparagraph as “equity interests”) are, at any time, property of a particular partnership or are deemed under this paragraph to be, at any time, property of the particular partnership, the equity interests are deemed to be owned at that time by each member of the particular partnership in a proportion equal to the proportion of the equity interests that (A) the fair market value, at that time, of the member’s partnership interest in the particular partnership is of (B) the fair market value, at that time, of all members’ partnership interests in the particular partnership, and (ii) where interests in a partnership or shares of the capital stock of a corporation (which interests or shares are referred to in this subparagraph as “equity interests”) are, at any time, property of a non-discretionary trust (within the meaning assigned by subsection 17(15)) or are deemed under this paragraph to be, at any time, property C. 35 Budget and Economic State of such a non-discretionary trust, the equity interests are deemed to be owned at that time by each beneficiary under that trust in a proportion equal to that proportion of the equity interests that (A) the fair market value, at that time, of the beneficiary’s beneficial interest in the trust is of (B) the fair market value, at that time, of all beneficial interests in the trust; (r) in applying paragraph (a) and in applying paragraph (d) of the definition “exempt earnings”, and paragraph (c) of the definition “exempt loss”, in subsection 5907(1) of the Regulations, a partnership is deemed to be, at any time, a partnership of which a foreign affiliate — of a particular corporation resident in Canada and in respect of which foreign affiliate the particular corporation has a qualifying interest — is a qualifying member, if at that time (i) a particular foreign affiliate — of another corporation that is resident in Canada and that is related (otherwise than because of a right referred to in paragraph 251(5)(b)) to the particular corporation — is a member of the partnership, (ii) that other corporation has a qualifying interest in respect of the particular foreign affiliate, and (iii) the particular foreign affiliate is a qualifying member of the partnership; (s) in applying the definition “investment business” in subsection (1), a particular corporation is, at any time, a designated corporation in respect of a foreign affiliate of a taxpayer, if at that time (i) a qualifying shareholder of the foreign affiliate or a person related to such a qualifying shareholder is a qualifying shareholder of the particular corporation, (ii) the particular corporation (A) is controlled by a qualifying shareholder of the foreign affiliate, or Exécution du budget et de l’ (B) would be controlled by a particular qualifying shareholder of the foreign affiliate if the particular qualifying shareholder of the foreign affiliate owned each share of the capital stock of the particular corporation that is owned by a qualifying shareholder of the foreign affiliate or by a person related to a qualifying shareholder of the foreign affiliate, and (iii) the total of all amounts each of which is the fair market value of a share of the capital stock of the particular corporation owned by a qualifying shareholder of the foreign affiliate or by a person related to a qualifying shareholder of the foreign affiliate is greater than 50% of the total fair market value of all the issued and outstanding shares of the capital stock of the particular corporation; (t) in applying the definition “investment business” in subsection (1) in respect of a business carried on by a foreign affiliate of a taxpayer in a taxation year, a particular partnership is, at any time, a designated partnership in respect of the foreign affiliate of the taxpayer, if at that time (i) the foreign affiliate or a person related to the foreign affiliate is a qualifying member of the particular partnership, and (ii) the total of all amounts — each of which is the fair market value of a partnership interest in the particular partnership held by the foreign affiliate, by a person related to the foreign affiliate or (where the foreign affiliate carries on, at that time, the business as a qualifying member of another partnership) by a qualifying member of the other partnership — is greater than 50% of the total fair market value of all partnership interests in the particular partnership owned by all members of the particular partnership; (u) if any entity is (or is deemed by this paragraph to be) a member of a particular partnership that is a member of another partnership, C. 35 Budget and Economic State (i) the entity is deemed to be a member of the other partnership for the purpose of (A) subparagraph (ii), (B) applying the reference, in paragraph (a), to “a member” of a partnership, (C) paragraphs (a.1) to (b), (g.03) and (o), and (D) paragraphs (b) and (c) of the definition “investment business” in subsection (1), and (ii) in applying paragraph (g.03), the entity is deemed to have, directly, rights to the income or capital of the other partnership, to the extent of the entity’s direct and indirect rights to that income or capital; (v) in applying paragraph (p), (i) where shares of the capital stock of any corporation (referred to in this paragraph as the “issuing corporation”) are, at any time, owned by a corporation (referred to in this paragraph as the “holding corporation”) or are deemed under this paragraph to be, at any time, owned by a corporation (referred to in this paragraph as the “holding corporation”), those shares are deemed to be owned at that time by each shareholder of the holding corporation in a proportion equal to the proportion of those shares that (A) the fair market value, at that time, of the shares of the capital stock of the issuing corporation that are owned by the shareholder is of (B) the fair market value, at that time, of all the issued and outstanding shares of the capital stock of the issuing corporation, and (ii) a person who is deemed by subparagraph (i) to own, at any time, shares of the capital stock of a corporation is deemed to be, at that time, a shareholder of the corporation; (w) where a foreign affiliate of a corporation resident in Canada carries on an active business in more than one country, Exécution du budget et de l’ (i) where the business is carried on in a country other than Canada, it is deemed to carry on that business in that country only to the extent that the profit or loss from that business can reasonably be attributed to a permanent establishment situated in that country, and (ii) where the business is carried on in Canada, it is deemed to carry on that business in Canada only to the extent that the income from the active business is subject to tax under this Part; (x) the loss from an active business, from a non-qualifying business or from property (as the case may be) of a foreign affiliate of a taxpayer resident in Canada for a taxation year is the amount of that loss, if any, that is computed by applying the provisions in this subdivision with respect to the computation of income from the active business, from the non-qualifying business or from property (as the case may be) of the foreign affiliate for the taxation year with any modifications that the circumstances require; (y) in determining — for the purpose of paragraph (a) and for the purpose of applying subsections (2.2) and (2.21) for the purpose of applying that paragraph — whether a nonresident corporation is, at any time, a foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest, where interests in any partnership or shares of the capital stock of any corporation (which interests or shares are referred to in this paragraph as “equity interests”) are, at that time, property of a particular partnership or are deemed under this paragraph to be, at any time, property of the particular partnership, the equity interests are deemed to be owned at that time by each member of the particular partnership in a proportion equal to the proportion of the equity interests that (i) the fair market value, at that time, of the member’s partnership interest in the particular partnership is of C. 35 Budget and Economic State (ii) the fair market value, at that time, of all members’ partnership interests in the particular partnership; and (z) where a particular foreign affiliate of a taxpayer — in respect of which the taxpayer has a qualifying interest or that is a controlled foreign affiliate of the taxpayer — is a member of a partnership, the particular foreign affiliate’s foreign accrual property income or loss in respect of the taxpayer for a taxation year shall not include any income or loss of the partnership to the extent that the income or loss (i) is attributable to the foreign accrual property income or loss of a foreign affiliate of the partnership that is also a foreign affiliate of the taxpayer (referred to in this paragraph as the “second foreign affiliate”) in respect of which the taxpayer has a qualifying interest or that is a controlled foreign affiliate of the taxpayer, and (ii) is, because of paragraph (a) as applied in respect of the taxpayer, included in computing the income or loss from an active business of the second foreign affiliate for a taxation year. (17) Section 95 of the Act is amended by adding the following after subsection (2): Rules for the definition “controlled foreign affiliate” (2.01) In applying paragraph (b) of the definition “controlled foreign affiliate” in subsection (1) and in applying this subsection, (a) shares of the capital stock of a corporation that are at any time owned by, or that are deemed by this subsection to be at any time owned by, another corporation are deemed to be, at that time, owned by, or property of, as the case may be, each shareholder of the other corporation in the proportion that Exécution du budget et de l’ (i) the fair market value at that time of the shares of the capital stock of the other corporation that, at that time, are owned by, or are property of, the shareholder is of (ii) the fair market value at that time of all the issued and outstanding shares of the capital stock of the other corporation; (b) shares of the capital stock of a corporation that are, or are deemed by this subsection to be, at any time, property of a partnership, are deemed to be, at that time, owned by, or property of, as the case may be, each member of the partnership in the proportion that (i) the fair market value at that time of the member’s partnership interest in the partnership is of (ii) the fair market value at that time of all partnership interests in the partnership; (c) shares of the capital stock of a corporation that are at any time owned by, or that are deemed by this subsection to be at any time owned by, a non-discretionary trust (within the meaning assigned by subsection 17(15)) other than an exempt trust (within the meaning assigned by subsection (1)) are deemed to be, at that time, owned by, or property of, as the case may be, each beneficiary of the trust in the proportion that (i) the fair market value at that time of the beneficiary’s beneficial interest in the trust is of (ii) the fair market value at that time of all beneficial interests in the trust; and (d) all of the shares of the capital stock of a corporation that are at any time owned by, or that are deemed by this subsection to be at any time owned by, a particular trust (other than an exempt trust within the meaning assigned by subsection (1) or a non-discretionary trust within the meaning assigned by subsection 17(15)) are deemed to be, at that time, owned by, or property of, as the case may be, C. 35 Budget and Economic State (i) each beneficiary of the particular trust at that time, and (ii) each settlor (within the meaning assigned by subsection 17(15)) in respect of the particular trust at that time. Rule against double-counting (2.02) In applying the assumption in paragraph (b) of the definition “controlled foreign affiliate” in subsection (1) in respect of a taxpayer resident in Canada to determine whether a foreign affiliate of the taxpayer is at any time a controlled foreign affiliate of the taxpayer, nothing in that paragraph or in subsection (2.01) is to be read or construed as requiring an interest, or for civil law a right, in a share of the capital stock of the foreign affiliate of the taxpayer owned at that time by the taxpayer to be taken into account more than once. (18) Paragraph 95(2.1)(c) of the Act is replaced by the following: (c) the affiliate entered into the agreements in the course of a business carried on by the affiliate, if (i) the business is carried on by the affiliate principally in a country (other than Canada) and principally with persons with whom the affiliate deals at arm’s length, and (ii) the business activities of the affiliate are regulated in that country; and (19) Subsection 95(2.2) of the Act is replaced by the following: Rule re subsection (2) (2.2) For the purpose of subsection (2), other than paragraph (2)(f), a non-resident corporation that is not a foreign affiliate of a taxpayer in Exécution du budget et de l’ respect of which the taxpayer had a qualifying interest throughout a particular taxation year is deemed to be a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout that particular taxation year if (a) a person or partnership has, in that particular taxation year, acquired or disposed of shares of the capital stock of that nonresident corporation or of any other corporation and, because of that acquisition or disposition, that non-resident corporation becomes or ceases to be a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest, and (b) at the beginning of that particular taxation year or at the end of that particular taxation year, the non-resident corporation is a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest. Rule re subsection (2.2) (2.21) Subsection (2.2) does not apply for the purpose of paragraph (2)(a) in respect of any income or loss referred to in that paragraph, of a particular foreign affiliate of the taxpayer, to the extent that that income or loss can reasonably be considered to have been realized or to have accrued before the earlier of (a) the time at which the particular affiliate became, as determined without reference to subsection (2.2), a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest, and (b) the time at which the particular affiliate became, as determined without reference to subsection (2.2), a foreign affiliate of another person resident in Canada in respect of which the other person resident in Canada had a qualifying interest, where (i) the taxpayer is a corporation, (ii) the taxpayer did not exist at the beginning of the taxation year, (iii) the particular affiliate became a foreign affiliate of the taxpayer in the taxation year because of a disposition, in the taxation year, of shares of the capital stock of the particular affiliate to the taxpayer by the other person resident in Canada, and C. 35 Budget and Economic State (iv) the other person resident in Canada was, immediately before that disposition, related to the taxpayer. (20) Paragraph 95(2.3)(b) of the Act is replaced by the following: (b) the sale or exchange was made by the affiliate in the course of a business conducted principally with persons with whom the affiliate deals at arm’s length, if (i) the business is principally carried on in the country (other than Canada) under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, or (ii) the affiliate is a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities and the activities of the business are regulated (A) under the laws of the country under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, and under the laws of each country in which the business is carried on through a permanent establishment (as defined by regulation) in that country, (B) under the laws of the country (other than Canada) in which the business is principally carried on, or (C) if the affiliate is related to a corporation, under the laws of the country under the laws of which that related corporation is governed and any of exists, was (unless that related corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is princi2007 Exécution du budget et de l’ pally carried on and all of those countries are members of the European Union; and (21) Paragraph 95(2.4)(a) of the Act is replaced by the following: (a) the income is derived by the affiliate in the course of a business conducted principally with persons with whom the affiliate deals at arm’s length carried on by it as a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities, the activities of which are regulated under the laws (i) of the country under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued and of each country in which the business is carried on through a permanent establishment (as defined by regulation) in that country, (ii) of the country in which the business is principally carried on, or (iii) if the affiliate is related to a corporation, of the country under the laws of which that related corporation is governed and any of exists, was (unless that related corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, and (22) Section 95 of the Act is amended by adding the following after subsection (2.4): Application of paragraph (2)(a.3) (2.41) Paragraph (2)(a.3) does not apply to a foreign affiliate of a taxpayer resident in Canada in respect of the foreign affiliate’s income for a taxation year derived, directly or indirectly, from indebtedness of persons resident in Canada or from indebtedness in respect of businesses carried on in Canada (referred to in this subsection as the “Canadian indebtedness”) if C. 35 Budget and Economic State (a) the taxpayer is, at the end of the foreign affiliate’s taxation year (i) a life insurance corporation resident in Canada, the business activities of which are subject by law to the supervision of the Superintendent of Financial Institutions or a similar authority of a province, or (ii) a corporation resident in Canada that is a subsidiary controlled corporation of a corporation described in subparagraph (i); (b) the Canadian indebtedness is used or held by the foreign affiliate, throughout the period in the taxation year that that Canadian indebtedness was used or held by the foreign affiliate, in the course of carrying on a business (referred to in this subsection as the “foreign life insurance business”) that is a life insurance business carried on outside Canada (other than a business deemed by paragraph (2)(a.2) to be a separate business other than an active business), the activities of which are regulated (i) under the laws of the country under whose laws the foreign affiliate is governed and any of exists, was (unless the foreign affiliate was continued in any jurisdiction) formed or organized, or was last continued, and (ii) under the laws of the country, if any, in which the business is principally carried on; (c) more than 90% of the gross premium revenue of the foreign affiliate for the taxation year in respect of the foreign life insurance business was derived from the insurance or reinsurance of risks (net of reinsurance ceded) in respect of persons (i) that were non-resident at the time at which the policies in respect of those risks were issued or effected, and (ii) that were at that time dealing at arm’s length with the foreign affiliate, the taxpayer and all persons that were related at that time to the foreign affiliate or the taxpayer; and Exécution du budget et de l’ (d) it is reasonable to conclude that the foreign affiliate used or held the Canadian indebtedness (i) to fund a liability or reserve of the foreign life insurance business, or (ii) as capital that can reasonably be considered to have been required for the foreign life insurance business. Exception re paragraph (2)(a.3) (2.42) If, at any time in a taxation year of a foreign affiliate of a taxpayer referred to in paragraph (2)(a.3), a life insurance corporation resident in Canada is the taxpayer referred to in paragraph (2)(a.3) or is a person who controls, or is controlled by, such a taxpayer, a particular indebtedness or a particular lease obligation of the life insurance corporation is, for the purposes of that paragraph, deemed, at that time, not to be an indebtedness or a lease obligation of a person resident in Canada, to the extent of the portion of the particular indebtedness or lease obligation that can reasonably be considered to have been issued by the life insurance corporation to the foreign affiliate (a) in respect of the life insurance corporation’s life insurance business carried on outside Canada; and (b) not in respect of (i) the life insurance corporation’s life insurance business carried on in Canada, or (ii) any other use. (23) The definition “indebtedness” in subsection 95(2.5) of the Act is replaced by the following: “indebtedness” « dette » “indebtedness” does not include obligations of a particular person under agreements with nonresident corporations providing for the purchase, sale or exchange of currency where C. 35 Budget and Economic State (a) the agreements are swap agreements, forward purchase or sale agreements, forward rate agreements, futures agreements, options or rights agreements, or similar agreements, (b) the particular person is a bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities resident in Canada, the business activities of which are subject by law to the supervision of a regulating authority in Canada such as the Superintendent of Financial Institutions or a similar authority of a province, (c) the agreements are entered into by the non-resident corporation in the course of a business conducted principally with persons with whom the non-resident corporation deals at arm’s length, if (i) the business is principally carried on in the country (other than Canada) under whose laws the non-resident corporation is governed and any of exists, was (unless the non-resident corporation was continued in any jurisdiction) formed or organized, or was last continued, or (ii) the non-resident corporation is a foreign affiliate of the particular person, or of a person related to the particular person, and (A) the non-resident corporation is a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities, and (B) the activities of the business are regulated (I) under the laws of the country under whose laws the non-resident corporation is governed and any of exists, was (unless the non-resident corporation was continued in any jurisdiction) formed or organized, or was last continued and under the laws of each country in which the business is carried on through a permanent establishment (as defined by regulation) in that country, Exécution du budget et de l’ (II) under the laws of the country (other than Canada) in which the business is principally carried, or (III) if the affiliate is related to a corporation, under the laws of the country under the laws of which a corporation related to the non-resident corporation is governed and any of exists, was (unless that related corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, and (d) the terms and conditions of such agreements are substantially the same as the terms and conditions of similar agreements made by persons dealings at arm’s length; (24) Subsection 95(3) of the Act is amended by striking out the word “or” at the end of paragraph (a) and by adding the following after paragraph (b): (c) the transmission of electronic signals or electricity along a transmission system located outside Canada; or (d) the manufacturing or processing outside Canada, in accordance with the taxpayer’s specifications and under a contract between the taxpayer and the affiliate, of tangible property, or for civil law corporeal property, that is owned by the taxpayer if the property resulting from the manufacturing or processing is used or held by the taxpayer in the ordinary course of the taxpayer’s business carried on in Canada. (25) Section 95 of the Act is amended by adding the following after subsection (3): Designated property — subparagraph (2)(a.1)(i) (3.1) Designated property referred to in subparagraph (2)(a.1)(i) is property that is described in the portion of paragraph (2)(a.1) that is before subparagraph (i) that is C. 35 Budget and Economic State (a) property that was sold to non-resident persons other than the affiliate, or sold to the affiliate for sale to non-resident persons, and (i) that (A) was — in the course of carrying on a business in Canada — manufactured, produced, grown, extracted or processed in Canada by the taxpayer, or by a person with whom the taxpayer does not deal at arm’s length, or (B) was — in the course of a business carried on by a foreign affiliate of the taxpayer outside Canada — manufactured or processed from tangible property, or for civil law corporeal property, that, at the time of the manufacturing or processing, was owned by the taxpayer or by a person related to the taxpayer and used or held by the owner in the course of carrying on a business in Canada, if the manufacturing or processing was in accordance with the specifications of the owner of that tangible or corporeal property and under a contract between that owner and that foreign affiliate, (ii) that was acquired, in the course of carrying on a business in Canada, by a purchaser from a vendor, if (A) the purchaser is the taxpayer or is a person resident in Canada with whom the taxpayer does not deal at arm’s length, and (B) the vendor is a person (I) with whom the taxpayer deals at arm’s length, (II) who is not a foreign affiliate of the taxpayer, and (III) who is not a foreign affiliate of a person resident in Canada with whom the taxpayer does not deal at arm’s length, or (iii) that was acquired by a purchaser from a vendor, if Exécution du budget et de l’ (A) the purchaser is the taxpayer or is a person resident in Canada with whom the taxpayer does not deal at arm’s length, (B) the vendor is a foreign affiliate of (I) the taxpayer, or (II) a person resident in Canada with whom the taxpayer does not deal at arm’s length, and (C) that property was manufactured, produced, grown, extracted or processed in the country (I) under whose laws the vendor is governed and any of exists, was (unless the vendor was continued in any jurisdiction) formed or organized, or was last continued, and (II) in which the vendor’s business is principally carried on; or (b) property that is an interest in real property, or a real right in an immovable, located in, or a foreign resource property in respect of, the country (i) under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, and (ii) in which the affiliate’s business is principally carried on. (26) The definitions “active business”, “income from an active business” and “income from property” in subsection 95(1) of the Act, as enacted by subsection (1), subsections (3), (4), and (6), the definitions “income from a non-qualifying business”, “non-qualifying business” and “non-qualifying country” in subsection 95(1) of the Act, as enacted by subsection (9), and paragraphs 95(2)(w) and (x) of the Act, as enacted by subsection C. 35 Budget and Economic State (16), apply in respect of taxation years, of a foreign affiliate of a taxpayer, that begin after 2008. (27) The definition “controlled foreign affiliate” in subsection 95(1) of the Act, as enacted by subsection (1), applies to taxation years, of a foreign affiliate of a taxpayer, that begin after 1995, except that (a) for taxation years, of a foreign affiliate of a taxpayer, that begin after 2002 and on or before February 27, 2004, the definition “controlled foreign affiliate” in subsection 95(1) of the Act, as enacted by subsection (1), is to be read as follows: “controlled foreign affiliate”, at any time, of a taxpayer resident in Canada, means (a) a foreign affiliate of the taxpayer that is, at that time, controlled (i) by the taxpayer, (ii) by the taxpayer and not more than four other persons resident in Canada, or (iii) by not more than four persons resident in Canada, other than the taxpayer, or (b) a foreign affiliate of the taxpayer that would, at that time, be controlled by the taxpayer if the taxpayer owned (i) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the taxpayer, (ii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with the taxpayer, (iii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the persons (each of whom is referred to in this definition as a “relevant Canadian shareholder”), in any set of persons not exceeding four (which set of persons shall be determined without reference to the existence of or the absence of any relationship, connection or action in concert between those persons), who (A) are resident in Canada, Exécution du budget et de l’ (B) are not the taxpayer or a person described in subparagraph (ii), and (C) own, at that time, shares of the capital stock of the foreign affiliate, and (iv) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with any relevant Canadian shareholder; (b) for taxation years, of a foreign affiliate of a taxpayer, that begin after 1995 and before 2003, the definition “controlled foreign affiliate” in subsection 95(1) of the Act, as enacted by subsection (1), is to be read as follows: “controlled foreign affiliate”, at any time of a taxpayer resident in Canada, means a foreign affiliate of the taxpayer that (a) is, at that time, controlled (i) by the taxpayer, (ii) by the taxpayer and not more than four other persons resident in Canada, or (iii) by not more than four persons resident in Canada, other than the taxpayer, or (b) would, at that time, be controlled by the taxpayer if the taxpayer owned (i) each share of the capital stock of a corporation that is owned at that time by the taxpayer and each share of the capital stock of a corporation that is owned at that time by any of not more than four other persons resident in Canada, (ii) each share of the capital stock of a corporation that is owned at that time by any of not more than four persons resident in Canada (other than the taxpayer), and (iii) each share of the capital stock of a corporation that is owned at that time by the taxpayer and each share of the capital stock of a corporation that is owned at that time by any person with whom the taxpayer does not deal at arm’s length; C. 35 Budget and Economic State (28) Subject to subsection (46), subsections (2) and (14) apply to taxation years, of a foreign affiliate of a taxpayer, that begin after December 20, 2002, except that paragraph 95(2)(i) of the Act, as enacted by subsection (14), shall, in respect of settlements and extinguishments of debt held by a foreign affiliate of the taxpayer that occur in those taxation years and before October 2, 2007, be read as follows: (i) any gain or loss determined in accordance with subsection 39(2) of a foreign affiliate of a taxpayer is deemed to be a gain or loss, as the case may be, from the disposition of an excluded property if the gain or loss is (i) derived from the settlement or extinguishment of a debt all or substantially all of the proceeds from which were used at all times to acquire excluded property or to earn income from an active business or for a combination of those uses, or (ii) derived under or as a result of an agreement that provides for the purchase, sale or exchange of currency and that can reasonably be considered to have been made by the affiliate to reduce its risk, with respect to a debt referred to in subparagraph (i), of fluctuations in the value of the currency in which the debt was denominated; (29) Subsection (5) applies in respect of taxation years, of a foreign affiliate of a taxpayer, that end on or after December 20, 2002. (30) Subject to subsection (46), subsections (7), (15), (18) and (20) to (23) apply to taxation years, of a foreign affiliate of a taxpayer, that begin after 1999. (31) Subject to subsection (46), subsection (8) applies to taxation years, of a foreign affiliate of a taxpayer, that end after 1999. Exécution du budget et de l’ (32) Subject to subsection (45), subsection (11) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after December 20, 2002. (33) The definition “entity” in subsection 95(1) of the Act, as enacted by subsection (9), applies in respect of taxation years, of a foreign affiliate of a taxpayer, that begin after 1994. (34) The definitions “eligible trust”, “exempt trust”, “specified fixed interest” and “specified purchaser” in subsection 95(1) of the Act, as enacted by subsection (9), apply after February 27, 2004, except that, after February 27, 2004 and before October 2, 2007, the definition “specified purchaser” in subsection 95(1) of the Act, as enacted by subsection (9), shall be read as follows: “specified purchaser”, at any time in respect of a particular taxpayer resident in Canada, means a person or partnership that is, at that time, (a) the particular taxpayer; (b) a taxpayer resident in Canada with which the particular taxpayer does not deal at arm’s length; (c) a foreign affiliate of a person described in paragraph (a) or (b); (d) a non-resident person with which a person described in any of paragraphs (a) to (c) does not deal at arm’s length; (e) a trust (other than an exempt trust) in which a person or partnership described in any of paragraphs (a) to (d) and (f) is beneficially interested; and (f) a partnership of which a person or partnership described in any of paragraphs (a) to (e) is a member. C. 35 Budget and Economic State (35) Subject to subsection (46), subsection (10) and paragraph 95(2)(z) of the Act, as enacted by subsection (16), apply to taxation years, of a foreign affiliate of a taxpayer, that end after 1999. However, (a) subject to paragraph (b), paragraph 95(2)(a) of the Act, as enacted by subsection (10), shall, for taxation years, of a foreign affiliate of a taxpayer, that end after 1999 and begin before 2009, be read as follows: (a) in computing the income or loss from an active business for a taxation year of a particular foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout the year or that is a controlled foreign affiliate of the taxpayer throughout the year, there shall be included any income or loss of the particular foreign affiliate for that year from sources in a country other than Canada that would otherwise be income or loss from property of the particular foreign affiliate for the year to the extent that (i) the income or loss (A) is derived by the particular foreign affiliate from activities that can reasonably be considered to be directly related to active business activities carried on in a country other than Canada by (I) another corporation 1. that is a non-resident corporation to which the particular foreign affiliate and the taxpayer are related throughout the year, or 2. that is a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year, or (II) a life insurance corporation that is resident in Canada throughout the year and that is 1. the taxpayer, 2. a person who controls the taxpayer, Exécution du budget et de l’ 3. a person controlled by the taxpayer, or 4. a person controlled by a person who controls the taxpayer, and (B) would be included in computing the amount prescribed to be the earnings or loss, from an active business carried on in a country other than Canada, of (I) the non-resident corporation referred to in sub-subclause (A)(I)1 or the life insurance corporation referred to in subclause (A)(II), if that nonresident corporation or that life insurance corporation were a foreign affiliate of the taxpayer and the income were earned by it, or (II) the foreign affiliate referred to in sub-subclause (A)(I)2, if the income were earned by it, (ii) the income or loss is derived from amounts that were paid or payable, directly or indirectly, to the particular foreign affiliate or a partnership of which the particular foreign affiliate was a member (A) by (I) a non-resident corporation to which the particular foreign affiliate and the taxpayer are related throughout the year, or (II) a partnership of which a nonresident corporation to which the particular foreign affiliate and the taxpayer are related throughout the year is a qualifying member throughout each period, in the fiscal period of the partnership that ends in the year, in which that non-resident corporation was a member of the partnership to the extent that those amounts that were paid or payable are for expenditures that would, if the non-resident corporation or the partnership were a foreign affiliate of the taxpayer, be deductible by it in computing the amounts prescribed to be its earnings C. 35 Budget and Economic State or loss for a taxation year from an active business (other than an active business carried on in Canada), (B) by (I) another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year, or (II) a partnership of which another foreign affiliate of the taxpayer — in respect of which other foreign affiliate the taxpayer has a qualifying interest throughout the year or to which other foreign affiliate the particular foreign affiliate and the taxpayer are related throughout the year — is a qualifying member throughout each period, in the fiscal period of the partnership that ends in the year, in which that other foreign affiliate was a member of the partnership to the extent that those amounts that were paid or payable are for expenditures that were deductible by the other foreign affiliate or would (if the partnership were a foreign affiliate of the taxpayer) be deductible by the partnership in computing the amounts prescribed to be its earnings or loss for a taxation year from an active business (other than an active business carried on in Canada), (C) by a partnership of which the particular foreign affiliate is a qualifying member throughout each period, in the fiscal period of the partnership that ends in the year, in which the particular foreign affiliate was a member of the partnership, to the extent that those amounts that were paid or payable were for expenditures that would, if the partnership were a foreign affiliate of the taxpayer, be deductible in computing the amounts prescribed to be its earnings or loss for a taxation year from an active business (other than an active business carried on in Canada), Exécution du budget et de l’ (D) by another foreign affiliate (referred to in this clause as the “second affiliate”) of the taxpayer — in respect of which the taxpayer has a qualifying interest throughout the year or to which the particular foreign affiliate and the taxpayer are related throughout the year — to the extent that the amounts are paid or payable by the second affiliate, in respect of any particular period in the year, (I) under a legal obligation to pay interest on borrowed money used for the purpose of earning income from property, or (II) on an amount payable for property acquired for the purpose of gaining or producing income from property where (III) the property is, throughout the particular period, excluded property of the second affiliate that is shares of the capital stock of a corporation (referred to in this clause as the “third affiliate”) which is, throughout the particular period, a foreign affiliate (other than the particular foreign affiliate) of the taxpayer in respect of which the taxpayer has a qualifying interest or to which the particular foreign affiliate and the taxpayer are related, (IV) the second affiliate and the third affiliate are resident in the same country for each of their taxation years (each of which taxation years is referred to in subclause (V) as a “relevant taxation year” of the second affiliate or of the third affiliate, as the case may be) that end in the year, and (V) in respect of each of the second affiliate and the third affiliate for each relevant taxation year of that affiliate, either C. 35 Budget and Economic State 1. that affiliate is subject to income taxation in that country in that relevant taxation year, or 2. the members or shareholders of that affiliate (which, for the purpose of this sub-subclause, includes a person that has, directly or indirectly, an interest, or for civil law a right, in a share of the capital stock of, or in an equity interest in, the affiliate) at the end of that relevant taxation year are subject to income taxation in that country on, in aggregate, all or substantially all of the income of that affiliate for that relevant taxation year in their taxation years in which that relevant taxation year ends, or (E) by a life insurance corporation that is resident in Canada and that is the taxpayer, a person who controls the taxpayer, a person controlled by the taxpayer or a person controlled by a person who controls the taxpayer, to the extent that those amounts that were paid or payable were for expenditures that are deductible by the life insurance corporation in computing its income or loss for a taxation year from carrying on its life insurance business outside Canada and are not deductible in computing its income or loss for a taxation year from carrying on its life insurance business in Canada, (iii) the income or loss is derived by the particular foreign affiliate from the factoring of trade accounts receivable acquired by the particular foreign affiliate, or a partnership of which the particular foreign affiliate was a member, from a non-resident corporation to which the particular foreign affiliate and the taxpayer are related throughout the year to the extent that the accounts receivable arose in the course of an active business carried on in a country other than Canada by the non-resident corporation, Exécution du budget et de l’ (iv) the income or loss is derived by the particular foreign affiliate from loans or lending assets acquired by the particular foreign affiliate, or a partnership of which the particular foreign affiliate was a member, from a non-resident corporation to which the particular foreign affiliate and the taxpayer are related throughout the year to the extent that the loans or lending assets arose in the course of an active business carried on in a country other than Canada by the non-resident corporation, (v) the income or loss is derived by the particular foreign affiliate from the disposition of excluded property that is not capital property, or (vi) the income or loss is derived by the particular foreign affiliate under or as a result of an agreement that provides for the purchase, sale or exchange of currency and that can reasonably be considered to have been made by the particular foreign affiliate to reduce (A) its risk — with respect to an amount that increases the amount required by this paragraph to be included in computing the particular foreign affiliate’s income for a taxation year from an active business or that decreases the amount required by this paragraph to be included in computing the particular foreign affiliate’s loss for a taxation year from an active business — of fluctuations in the value of the currency in which the amount was denominated, or (B) its risk — with respect to an amount that decreases the amount required by this paragraph to be included in computing the particular foreign affiliate’s income for a taxation year from an active business or that increases the amount required by this paragraph to be included in computing the particular foreign affiliate’s loss for a taxation year from an active business — of fluctuations in the value of the currency in which the amount was denominated; C. 35 Budget and Economic State (b) if a taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, (i) subclauses 95(2)(a)(ii)(D)(III) to (V) of the Act, as enacted by subsection (10), as required to be read by paragraph (a), also apply to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994 and end before 2000, except that the references in those subclauses, as those subclauses apply to those taxation years of a foreign affiliate of a taxpayer, to “particular foreign affiliate” shall be read as references to “particular affiliate”; and (ii) where the taxpayer has not validly made the election provided by subsection (46), clauses 95(2)(a)(ii)(A) to (C) and (E) of the Act, as enacted by subsection (10), as required to be read by paragraph (a), also apply to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994 and end before 2000, except that the references in those clauses 95(2)(a)(ii)(A) to (C), as those clauses apply to those taxation years of a foreign affiliate of a taxpayer, to “particular foreign affiliate” shall be read as references to “particular affiliate” and (A) subclause (II) of that clause 95(2)(a)(ii)(A) shall be read as follows: (II) a partnership of which a nonresident corporation to which the particular affiliate and the taxpayer are related throughout the year is a member and of which that nonresident corporation is not a specified member at any time in a fiscal period of the partnership that ends in the year (B) subclause (II) of that clause 95(2)(a)(ii)(B) shall be read as follows: Exécution du budget et de l’ (II) a partnership of which another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year is a member and of which that other foreign affiliate is not a specified member at any time in a fiscal period of the partnership that ends in the year (C) that clause 95(2)(a)(ii)(C) shall be read as follows: (C) by a partnership of which the particular affiliate is a member and of which the particular affiliate is not a specified member at any time in a fiscal period of the partnership that ends in the year, to the extent that those amounts that were paid or payable were for expenditures that would be, if the partnership were a foreign affiliate of the taxpayer, deductible in a taxation year in computing the amounts prescribed to its earnings or loss from an active business carried on by it outside Canada, (36) Subsection (12) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after December 20, 2002, except that, C. 35 Budget and Economic State in applying paragraph 95(2)(b) of the Act, as enacted by subsection (12), to taxation years, of a foreign affiliate of the taxpayer, that begin after December 20, 2002 and before February 28, 2004, that paragraph shall be read as follows: (b) the provision, by a foreign affiliate of a taxpayer, of services or of an undertaking to provide services is deemed to be a separate business, other than an active business, carried on by the affiliate, and any income from that business or that pertains to or is incident to that business is deemed to be income from a business other than an active business, if (i) the amount paid or payable in consideration for those services or for the undertaking to provide those services (A) is deductible, or can reasonably be considered to relate to an amount that is deductible, in computing the income from a business carried on in Canada, by (I) any taxpayer of whom the affiliate is a controlled foreign affiliate, or (II) another person who is related to any taxpayer of whom the affiliate is a controlled foreign affiliate, or (B) is deductible, or can reasonably be considered to relate to an amount that is deductible, in computing the foreign accrual property income of a controlled foreign affiliate of (I) any taxpayer of whom the affiliate is a controlled foreign affiliate, or (II) another person who is related to any taxpayer of whom the affiliate is a controlled foreign affiliate, or (ii) the services are, or are to be, performed by (A) any taxpayer of whom the affiliate is a controlled foreign affiliate and who is an individual resident in Canada, or Exécution du budget et de l’ (B) another person who is related to any taxpayer of whom the affiliate is a controlled foreign affiliate and who is an individual resident in Canada; (37) Subject to subsection (46), paragraphs 95(2)(g) to (g.03) of the Act, as enacted by subsection (13), apply to taxation years, of a foreign affiliate of a taxpayer, that begin after December 20, 2002, except that, for taxation years, of a foreign affiliate of a taxpayer, that begin after December 20, 2002 and before 2009, paragraph 95(2)(g) of the Act, as enacted by subsection (13), shall be read as follows: (g) income earned, a loss incurred or a capital gain or capital loss realized, as the case may be, in a taxation year by a particular foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout the taxation year or that is a controlled foreign affiliate of the taxpayer throughout the taxation year, because of a fluctuation in the value of the currency of a country other than Canada relative to the value of Canadian currency, is deemed to be nil if it is earned, incurred or realized in reference to any of the following sources: (i) a debt obligation that was owing to (A) another foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the year or any other non-resident corporation to which the particular affiliate and the taxpayer are related throughout the year (which other foreign C. 35 Budget and Economic State affiliate or other non-resident corporation is referred to in this paragraph as a “qualified foreign corporation”), or (B) the particular affiliate by a qualified foreign corporation, (ii) the redemption, cancellation or acquisition of a share of the capital stock of, or the reduction of the capital of, the particular affiliate or a qualified foreign corporation (which particular affiliate or which qualified foreign affiliate is referred to in this subparagraph as the “issuing corporation”) by the issuing corporation, or (iii) the disposition to a qualified foreign corporation of a share of the capital stock of another qualified foreign corporation; (38) Subject to subsection (46), paragraphs 95(2)(n) and (p), (r) to (t), (v) and (y) of the Act, as enacted by subsection (16), apply to taxation years, of a foreign affiliate of a taxpayer, that end after 1999. However, if a taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, paragraph 95(2)(n) of the Act, as enacted by subsection (16), applies to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994. (39) Subject to subsection (46), paragraphs 95(2)(o) and (q) of the Act, as enacted by subsection (16), apply to taxation years that end after 1999. (40) Paragraph 95(2)(u) of the Act, as enacted by subsection (16), applies in respect of taxation years, of foreign affiliates of a taxpayer, that end after 1999. However, if a taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that Exécution du budget et de l’ includes the day on which this Act is assented to, paragraph 95(2)(u) of the Act, as enacted by subsection (16), applies in respect of taxation years, of all foreign affiliates of the taxpayer, that begin after 1994. (41) Subsection (17) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after February 27, 2004. (42) Subsection 95(2.2) of the Act, as enacted by subsection (19), applies to taxation years, of a foreign affiliate of a taxpayer, that end after 1999. However, (a) subsection 95(2.2) of the Act, as enacted by subsection (19), shall be read as follows for taxation years, of a foreign affiliate of a taxpayer, that end after 1999 and begin before 2009: (2.2) For the purpose of subsection (2), other than paragraph (2)(f), (a) a non-resident corporation that was not a foreign affiliate of a taxpayer in respect of which the taxpayer had a qualifying interest throughout a particular taxation year shall be deemed to be a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest throughout that year where (i) a person or partnership has, in that year, acquired or disposed of shares of the capital stock of that non-resident corporation or any other corporation and, because of that acquisition or disposition, that nonresident corporation became or ceased to be a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest, and (ii) at the beginning of that year or at the end of that year, the non-resident corporation was a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest; and C. 35 Budget and Economic State (b) a non-resident corporation that was not related to a taxpayer or to a taxpayer and a foreign affiliate of the taxpayer, as the case may be, throughout a particular taxation year is deemed to be related to the taxpayer or to the taxpayer and the foreign affiliate of the taxpayer throughout that year if (i) a person or partnership has, in that year, acquired or disposed of shares of the capital stock of the non-resident corporation or any other corporation and, because of that acquisition or disposition, the nonresident corporation became (or would have become, if paragraph 251(5)(b) did not apply to rights contained in the agreement under which the person acquired the shares), or ceased to be, a nonresident corporation that was related to the taxpayer or to the taxpayer and the foreign affiliate of the taxpayer, and (ii) at the beginning, or at the end, of that year, the non-resident corporation was related to the taxpayer or to the taxpayer and the foreign affiliate of the taxpayer. (b) if a taxpayer elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filingdue date for the taxpayer’s taxation year that includes the day on which this Act is assented to, subsection 95(2.2) of the Act, as enacted by subsection (19), also applies to taxation years, of all its foreign affiliates, that begin after 1994 and end before 2000, as though subsection 95(2.2) of the Act, as enacted by subsection (19), read as follows: (2.2) For the purpose of subsection (2), other than paragraph (2)(f), (a) a non-resident corporation that was not a foreign affiliate of a taxpayer in respect of which the taxpayer had a qualifying interest throughout a particular taxation year shall be deemed to be a foreign affiliate of a taxpayer in respect of which the taxpayer had a qualifying interest throughout that year where Exécution du budget et de l’ (i) a person has, in that year, acquired or disposed of shares of the capital stock of that non-resident corporation or any other corporation and, because of that acquisition or disposition, that non-resident corporation became or ceased to be a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest, and (ii) at the beginning of that year or at the end of that year, the non-resident corporation was a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest; and (b) a non-resident corporation that was not related to a taxpayer or to a taxpayer and a foreign affiliate of the taxpayer, as the case may be, throughout a particular taxation year is deemed to be related to the taxpayer or to the taxpayer and the foreign affiliate of the taxpayer throughout that year if (i) a person has, in that year, acquired or disposed of shares of the capital stock of the non-resident corporation or any other corporation and, because of that acquisition or disposition, the non-resident corporation became (or would have become, if paragraph 251(5)(b) did not apply to rights contained in the agreement under which the person acquired the shares), or ceased to be, a non-resident corporation that was related to the taxpayer or to the taxpayer and the foreign affiliate of the taxpayer, and (ii) at the beginning, or at the end, of that year, the non-resident corporation was related to the taxpayer or to the taxpayer and the foreign affiliate of the taxpayer. (43) Subsection 95(2.21) of the Act, as enacted by subsection (19), applies to taxation years, of a foreign affiliate of a taxpayer, that end after 1999. However, (a) for taxation years, of a foreign affiliate of a taxpayer, that end after 1999 and begin before 2009, subsection 95(2.21) of the Act, as enacted by subsection (19), is to be read as follows: C. 35 Budget and Economic State (2.21) Subsection (2.2) does not apply for the purpose of paragraph (2)(a) in respect of any income or loss referred to in that paragraph, of a particular foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout the taxation year of the particular affiliate or to which the taxpayer is related throughout the taxation year, to the extent that that income or loss can reasonably be considered to have been realized or to have accrued (a) before the earlier of (i) the time at which the particular affiliate became, as determined without reference to subsection (2.2), a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest or to which the taxpayer is related, and (ii) the time at which the particular affiliate became, as determined without reference to subsection (2.2), a foreign affiliate of another person resident in Canada in respect of which the other person resident in Canada had a qualifying interest or to which the other person resident in Canada is related, where (A) the taxpayer is a corporation, (B) the taxpayer did not exist at the beginning of the taxation year, (C) the particular affiliate became a foreign affiliate of the taxpayer in the taxation year because of a disposition, in the taxation year, of shares of the capital stock of the particular affiliate to the taxpayer by the other person resident in Canada, and (D) the other person resident in Canada was, immediately before that disposition, related to the taxpayer; or (b) before the earlier of (i) the time at which a non-resident corporation (other than the particular affiliate), or a foreign affiliate of the Exécution du budget et de l’ taxpayer (other than the particular affiliate), referred to in paragraph (2.2)(a) became, as determined without reference to subsection (2.2), (A) a foreign affiliate of the taxpayer in respect of which the taxpayer had a qualifying interest, or (B) related to the taxpayer and to the particular affiliate, and (ii) the time at which a non-resident corporation (other than the particular affiliate), or a foreign affiliate of the taxpayer (other than the particular affiliate), referred to in paragraph (2.2)(a) became, as determined without reference to subsection (2.2), a foreign affiliate, of another person resident in Canada, in respect of which the other person resident in Canada had a qualifying interest (or became, as determined without reference to subsection (2.2), related to the other person resident in Canada and to the particular affiliate), where (A) the taxpayer is a corporation, (B) the taxpayer did not exist at the beginning of the taxation year, (C) the particular affiliate became a foreign affiliate of the taxpayer in the taxation year because of a disposition, in the taxation year, of shares of the capital stock of the particular affiliate to the taxpayer by the other person resident in Canada, and (D) the other person resident in Canada was, immediately before that disposition, related to the taxpayer. (b) if a taxpayer makes a valid election under paragraph (42)(b) in respect of all its foreign affiliates, subsection 95(2.21) of the Act, as enacted by subsection (19), being read in the manner described in paragraph (a), also applies to taxation years, of all its foreign affiliates, that begin after 1994 and end before 2000. C. 35 Budget and Economic State (44) Subject to subsection (46), subsection (24) applies to the 2001 and subsequent taxation years of a foreign affiliate of a taxpayer. However, if a taxpayer elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, that subsection applies to taxation years, of all its foreign affiliates, that begin after 1994. (45) Subsection (25) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after December 20, 2002. However, if a taxpayer elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, subsections (11) and (25) apply to taxation years, of all its foreign affiliates, that begin after 1994. (46) If a taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filingdue date for the taxpayer’s taxation year that includes the day on which this Act is assented to, (a) paragraphs (a), (c) and (c.1) of the definition “excluded property” in subsection 95(1) of the Act, as enacted by subsection (2), subsection (8), paragraphs 95(2)(g.01) and (g.02) of the Act, as enacted by subsection (13), paragraph 95(2)(i) of the Act, as enacted by subsection (14), paragraphs 95(2)(o) to (t) and (z) of the Act, as enacted by subsection (16), subsections (18) and (22) and paragraph 95(3)(d) of the Act, as enacted by subsection (24), apply to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994; Exécution du budget et de l’ (b) subparagraph 95(2)(a)(i) of the Act, as enacted by subsection (10), read in the manner described in paragraph (35)(a) but read without reference to sub-subclause 95(2)(a)(i)(A)(I)2 of the Act, subclause 95(2)(a)(i)(B)(II) of the Act and the word “or” at the end of subclause 95(2)(a)(i)(B)(I) of the Act, also applies to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994 and end before 2000; (c) clauses 95(2)(a)(ii)(A) to (C) and (E) of the Act and subparagraphs 95(2)(a)(v) and (vi) of the Act, all as enacted by subsection (10), read in the manner described in paragraph (35)(a), also apply to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994 and end before 2000, except that the references to “income or loss” in that subparagraph 95(2)(a)(v) and that portion of subparagraph 95(2)(a)(vi) before clause (A) of that subparagraph 95(2)(a)(vi), as those subparagraphs apply to those taxation years of a foreign affiliate of the taxpayer, shall be replaced by a reference to “income”; (d) paragraph 95(2)(g) of the Act, as enacted by subsection (13), being read in the manner described in subsection (37), also applies to taxation years, of all foreign affiliates of the taxpayer, that begin after 1994 and before December 21, 2002; and (e) paragraph 95(2)(i) of the Act, as enacted by subsection (14), as required by subsection (28) to be read, in respect of settlements and extinguishments of debt held by a foreign affiliate of the taxpayer that occur before October 2, 2007 in taxation years, of the foreign affiliate of the taxpayer, that begin after December 20, 2002, also applies in respect of settlements and extinguishments of debt held by a foreign affiliate of the taxpayer that occur in taxation years, of the foreign affiliate of the taxpayer, that begin after 1994 and before December 21, 2002. C. 35 Budget and Economic State (47) If a taxpayer has made what would, but for this subsection, be a valid election under subsection (46) and the taxpayer has, on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day that is the third anniversary of the day on which this Act is assented to, filed with the Minister of National Revenue a notice in writing to revoke the election, the election is deemed, otherwise than for the purpose of this subsection, never to have been made. (48) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest and penalties payable under the Act for any taxation year shall be made that is necessary to take an election referred to in any of subsections (35), (38), (40), (42) and (44) to (46), or a revocation referred to in subsection (47), into account. 27. (1) Section 104 of the Act is amended by adding the following after subsection (21.2): Beneficiaries’ taxable capital gain — QFP taxable capital gain (21.21) If clause (21.2)(b)(ii)(A) applies to deem, for the purpose of section 110.6, the beneficiary to have a taxable capital gain (referred to in this subsection as the “QFP taxable capital gain”) from a disposition of capital property that is qualified farm property of the beneficiary, for the beneficiary’s taxation year that includes March 19, 2007 and in which the designation year of the trust ends, for the purpose of subsection 110.6(2.3), the beneficiary is, where the trust complies with the requirements of subsection (21.24), deemed to have a taxable capital gain from the disposition of qualified farm property of the beneficiary on or after March 19, 2007 equal to the amount determined by the formula A × B/C where A is the amount of the QFP taxable capital gain; B is, where the designation year of the trust includes March 19, 2007, the amount that would be determined in respect of the trust for the designation year under paragraph Exécution du budget et de l’ 3(b) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified farm property of the trust that were disposed of by the trust on or after March 19, 2007; and C is, where the designation year of the trust includes March 19, 2007, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified farm property. Beneficiaries’ taxable capital gain — QSBC taxable capital gain (21.22) If clause (21.2)(b)(ii)(B) applies to deem, for the purpose of section 110.6, the beneficiary to have a taxable capital gain (referred to in this subsection as the “QSBC taxable capital gain”) from a disposition of capital property that is a qualified small business corporation share of the beneficiary, for the beneficiary’s taxation year in which the designation year of the trust ends, for the purpose of subsection 110.6(2.3), the beneficiary, where the trust complies with requirements of subsection (21.24), is deemed to have a taxable capital gain from the disposition of a qualified small business corporation share of the beneficiary on or after March 19, 2007 equal to the amount determined by the formula A × B/C where A is the amount of the QSBC taxable capital gain; B is, where the designation year of the trust includes March 19, 2007, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified small business corporation shares of the trust that were disposed of by the trust on or after March 19, 2007; and C is, where the designation year of the trust includes March 19, 2007, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital C. 35 Budget and Economic State losses if the only properties referred to in paragraph 3(b) were qualified small business corporation shares of the trust. Beneficiaries’ taxable capital gain — QFFP taxable capital gain (21.23) If clause (21.2)(b)(ii)(C) applies to deem, for the purpose of section 110.6, the beneficiary to have a taxable capital gain (referred to in this subsection as the “QFFP taxable capital gain”), from a disposition of capital property that is qualified fishing property of the beneficiary, for the beneficiary’s taxation year in which the designation year of the trust ends, for the purpose of subsection 110.6(2.3), the beneficiary, where the trust complies with requirements of subsection (21.24), is deemed to have a taxable capital gain from the disposition of qualified fishing property on or after March 19, 2007 equal to the amount determined by the formula A × B/C where A is the amount of the QFFP taxable capital gain; B is, where the designation year of the trust includes March 19, 2007, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified fishing property that were disposed of by the trust on or after March 19, 2007; and C is, where the designation year of the trust includes March 19, 2007, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified fishing property of the trust. Trusts to designate amounts (21.24) A trust shall determine and designate, in its return of income under this part for a designation year of the trust, the following amounts in respect of a beneficiary: Exécution du budget et de l’ (a) the amount that is, under subsection (21.21), determined to be the beneficiary’s taxable capital gain from the disposition, on or after March 19, 2007, of qualified farm property of the beneficiary, (b) the amount that is, under subsection (21.22), determined to be the beneficiary’s taxable capital gain from the disposition, on or after March 19, 2007, of qualified small business corporation share of the beneficiary, and (c) the amount that is, under subsection (21.23), determined to be the beneficiary’s taxable capital gain from the disposition, on or after March 19, 2007, of qualified fishing property of the beneficiary. (2) Subsection (1) applies to taxation years of trusts that end on or after March 19, 2007. 28. (1) Subparagraph 108(2)(b)(vi) of the Act is replaced by the following: (vi) where the trust would not be a unit trust at the particular time if this paragraph were read without reference to this subparagraph and subparagraph (iii) were read without reference to clause (F), the units of the trust are listed at any time in the current year or in the following taxation year on a designated stock exchange in Canada, or (2) Subsection (1) applies on and after the day on which this Act is assented to. 29. (1) The portion of paragraph 110(1)(d.01) of the Act before subparagraph (i) is replaced by the following: (d.01) subject to subsection (2.1), if the taxpayer disposes of a security acquired in the year by the taxpayer under an agreement referred to in subsection 7(1) by making a gift of the security to a qualified donee, an amount in respect of the disposition of the security equal to 1/2 of the lesser of the benefit deemed by paragraph 7(1)(a) to have been received by the taxpayer in the year in respect of the acquisition of the security and the amount that would have been that benefit C. 35 Budget and Economic State had the value of the security at the time of its acquisition by the taxpayer been equal to the value of the security at the time of the disposition, if (2) Subsection (1) applies in respect of gifts made on or after March 19, 2007. 30. (1) Subsection 110.1(1) of the Act is amended by adding the following after paragraph (a): Gifts of medicine (a.1) the total of all amounts in respect of property that is the subject of an eligible medical gift made by the corporation in the taxation year or in any of the five preceding taxation years, each of which is the lesser of (i) the cost to the corporation of the property, and (ii) 50% of the amount, if any, by which the corporation’s proceeds of disposition of the property in respect of the gift exceeds the cost to the corporation of the property. (2) Section 110.1 of the Act is amended by adding the following after subsection (7): Eligible medical gift (8) For the purpose of paragraph (1)(a.1), a gift referred to in paragraph (1)(a) is an eligible medical gift of a corporation if (a) the corporation has directed the donee to apply the gift to charitable activities outside of Canada; (b) in the case of a gift made on or before October 2, 2007, the property that is the subject of the gift is medicine; (c) in the case of a gift made after October 2, 2007, the property that is the subject of the gift is a medicine that qualifies as a drug, within the meaning of the Food and Drugs Act, and the drug (i) meets the requirements of that Act, or would meet those requirements if that Act were read without reference to its subsection 37(1), and Exécution du budget et de l’ (ii) is not a food, cosmetic or device (as those terms are defined in that Act), a natural health product (as defined in the Natural Health Products Regulations) or a veterinary drug; (d) the property was, immediately before the making of the gift, described in an inventory in respect of a business of the corporation; and (e) the donee is a registered charity that has received a disbursement under a program of the Canadian International Development Agency. (3) Subsections (1) and (2) apply in respect of gifts of property made after March 18, 2007. 31. (1) The formula in paragraph 110.6(2)(a) of the Act is replaced by the following: [$375,000 - (A + B + C + D)] × E (2) Section 110.6 of the Act is amended by adding the following after subsection (2.2): Additional capital gains deduction — taxation year that includes March 19, 2007 (2.3) In computing the taxable income of an individual (other than a trust) for the individual’s taxation year that includes March 19, 2007 (referred to in this subsection as the “transition year”), there may be deducted, where that individual was resident in Canada throughout the transition year and that individual disposed of in the transition year, and on or after March 19, 2007, a qualified small business corporation share of the individual, a qualified farm property of the individual, or a qualified fishing property of the individual, such amount as the individual may claim not exceeding the least of (a) $125,000, (b) the amount, if any, by which the individual’s cumulative gains limit at the end of the transition year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2), (2.1) or (2.2) in computing the individual’s taxable income for the transition year, C. 35 Budget and Economic State (c) the amount, if any, by which the individual’s annual gains limit for the transition year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2), (2.1) or (2.2) in computing the individual’s taxable income for the transition year, and (d) the amount that would be determined in respect of the individual for the transition year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified small business corporation shares of the individual, qualified farm properties of the individual, and qualified fishing properties of the individual, disposed of by the individual on or after March 19, 2007. (3) Subsection 110.6(4) of the Act is replaced by the following: Maximum capital gains deduction (4) Notwithstanding subsections (2), (2.1) and (2.2), the total amount that may be deducted under this section in computing an individual’s income for a taxation year shall not exceed the total of the amount determined by the formula in paragraph 2(a) and the amount that may be deducted under subsection (2.3), in respect of the individual for the year. (4) The portion of subsection 110.6(5) of the Act before paragraph (a) is replaced by the following: Deemed resident in Canada (5) For the purposes of subsections (2) to (2.3), an individual is deemed to have been resident in Canada throughout a particular taxation year if (5) The portion of subsection 110.6(6) of the Act before paragraph (a) is replaced by the following: Failure to report capital gain (6) Notwithstanding subsections (2) to (2.3), no amount may be deducted under this section in respect of a capital gain of an individual for a particular taxation year in computing the individual’s taxable income for the particular taxation year, if Exécution du budget et de l’ (6) The portion of subsection 110.6(7) of the Act before paragraph (b) is replaced by the following: Deduction not permitted (7) Notwithstanding subsections (2) to (2.3), no amount may be deducted under this section in computing an individual’s taxable income for a taxation year in respect of a capital gain of the individual for the taxation year if the capital gain is from a disposition of property which disposition is part of a series of transactions or events (a) that includes a dividend received by a corporation to which dividend subsection 55(2) does not apply but would apply if this Act were read without reference to paragraph 55(3)(b); or (7) Subsection 110.6(8) of the Act is replaced by the following: Deduction not permitted (8) Notwithstanding subsections (2) to (2.3), where an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share) or that dividends paid on such a share in the taxation year or in any preceding taxation year were less than 90% of the average annual rate of return on that share for that year, no amount in respect of that capital gain shall be deducted under this section in computing the individual’s taxable income for the year. (8) Section 110.6 of the Act is amended by adding the following after subsection (30): Conditions for the application of subsection (32) (31) Subsection (32) applies to an individual for a taxation year that begins after March 19, 2007 if (a) in the taxation year the individual has a taxable capital gain from the disposition, before March 19, 2007, of a qualified small business corporation share of the individual, a qualified farm property of the individual or a qualified fishing property of the individual; and C. 35 Budget and Economic State (b) the total of all amounts each of which is an amount of a taxable capital gain of the individual described in paragraph (a) exceeds the amount that would be determined under paragraph (2)(a) in respect of the individual for the taxation year were the reference to “$375,000” in that paragraph read as a reference to “$250,000” (the amount of which excess is referred to in subsection (32) as the “denied excess”). Deduction denied (32) Notwithstanding subsections (2) to (2.3), if this subsection applies to an individual for a taxation year, no amount may be deducted under this section for the taxation year by the individual in respect of the individual’s taxable capital gains for the year described in paragraph (31)(a) to the extent of the denied excess. (9) Subsection (1) applies to taxation years that begin after March 19, 2007. (10) Subsections (2) to (5), (7) and (8) apply to taxation years that end on or after March 19, 2007. (11) Subsection (6) applies to taxation years that end after May 1, 2006, except that for taxation years that end before March 19, 2007, the portion of subsection 110.6(7) of the Act before paragraph (a), as amended by subsection (5), shall be read as follows: (7) Notwithstanding subsections (2) to (2.2), no amount may be deducted under this section in computing an individual’s taxable income for a taxation year in respect of a capital gain of the individual for the taxation year, if the capital gain is from a disposition of property which disposition is part of a series of transactions or events 32. Section 115 of the Act is amended by adding the following after subsection (2.2): Non-resident persons — 2010 Olympic and Paralympic Winter Games (2.3) Notwithstanding subsection (1), no amount is to be included in computing the taxable income earned in Canada for any taxation year of a non-resident person, in Exécution du budget et de l’ respect of any amount paid or payable to that person in respect of activities performed in Canada by that person in connection with the 2010 Olympic Winter Games or the 2010 Paralympic Winter Games, after 2009 and before April 2010, if that person is (a) an athlete who represents a country other than Canada; (b) a member of an officially registered support staff associated with a team from a country other than Canada; (c) a person who serves as a games official; (d) the International Olympic Committee; (e) the International Paralympic Committee; (f) an international sports federation that is a member of the General Association of International Sports Federations; (g) an accredited foreign media organization; or (h) an individual, other than a trust, who is an employee, an officer or a member of a person described in any one or more of paragraphs (a) to (g), or who provides services under contract with one or more persons described in those paragraphs. 33. (1) Paragraph 116(6)(b) of the Act is amended by replacing “prescribed stock exchange” with “recognized stock exchange”. (2) Subsection (1) applies on and after the day on which this Act is assented to. 34. (1) Section 117 of the Act is amended by adding the following after subsection 117(2): Tax payable — WITB advance payment (2.1) The tax payable under this Part on the individual’s taxable income for a taxation year, as computed under subsection (2), is deemed to be the total of the amount otherwise computed under that subsection and, except for the purposes of sections 118 to 118.9, 120.2, 121, 122.3 and subdivision c, the total of all amounts received by the individual in respect of the taxation year under subsection 122.7(7). C. 35 Budget and Economic State (2) Subsection (1) applies to the 2008 and subsequent taxation years. 35. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following: Annual adjustment 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amounts of $500 and $1,000 referred to in the description of A, and the amounts of $9,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $250 referred to in the description of C, and the amounts of $12,833 and $21,167 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of (2) Subsection (1) applies to the 2008 and subsequent taxation years. 36. (1) Subparagraph (b.1)(ii) of the description of B in subsection 118(1) of the Act is replaced by the following: Exécution du budget et de l’ (ii) except where subparagraph (i) applies, the individual may deduct an amount under paragraph (b) in respect of the individual’s child who is under the age of 18 years at the end of the taxation year, or could deduct such an amount in respect of that child if paragraph 118(4)(a) did not apply to the individual for the taxation year and if the child had no income for the year, $2,000 for each such child. (2) Section 118 of the Act is amended by adding the following after subsection (5): Where subsection (5) does not apply (5.1) Where, if this Act were read without reference to this subsection, solely because of the application of subsection (5), no individual is entitled to a deduction under paragraph (b) or (b.1) of the description of B in subsection (1) for a taxation year in respect of a child, subsection (5) shall not apply in respect of that child for that taxation year. (3) Subsections (1) and (2) apply to the 2007 and subsequent taxation years. 37. (1) Paragraph (b) of the definition “eligible public transit pass” in subsection 118.02(1) of the Act is replaced by the following: (b) identifying the right of an individual who is the holder or owner of the document to use public commuter transit services of that qualified Canadian transit organization (i) on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days, or (ii) on an unlimited number of occasions during an uninterrupted period of at least five consecutive days, if the combination of that document and one or more other such documents gives the right to the individual to use those public commuter transit services on at least 20 days in a 28day period. (2) Subsection 118.02(1) of the Act is amended by adding the following in alphabetical order: 108 “eligible electronic payment card” « carte de paiement électronique admissible » C. 35 Budget and Economic State “eligible electronic payment card” means an electronic payment card that is (a) used by an individual for at least 32 oneway trips, between the place of origin of the trip and its termination, during an uninterrupted period not exceeding 31 days, and (b) issued by or on behalf of a qualified Canadian transit organization, which organization records and receipts the cost and usage of the electronic payment card and identifies the right, of the individual who is the holder or owner of such a card, to use public commuter transit services of that qualified Canadian transit organization. (3) The description of C in subsection 118.02(2) of the Act is replaced by the following: C is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year by the individual or by a person who is in the taxation year a qualifying relation of the individual, and (4) Subsection 118.02(3) of the Act is replaced by the following: Apportionment of credit (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an eligible public transit pass or of an eligible electronic payment card, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that eligible public transit pass or eligible electronic payment card if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. (5) Subsections (1) to (4) apply to the 2007 and subsequent taxation years. 38. (1) The definitions “qualifying child” and “qualifying entity” in subsection 118.03(1) of the Act are replaced by the following: 2007 “qualifying child” « enfant admissible » Exécution du budget et de l’ “qualifying child” of an individual for a taxation year means a child of the individual who is, at the beginning of the taxation year, (a) under 16 years of age; or (b) in the case where an amount is deductible under section 118.3 in computing any person’s tax payable under this Part for the taxation year in respect of that child, under 18 years of age. “qualifying entity” « entité admissible » “qualifying entity” means a person or partnership that offers one or more prescribed programs of physical activity. (2) The portion of the definition “eligible fitness expense” in subsection 118.03(1) of the Act before paragraph (a) is replaced by the following: “eligible fitness expense” « dépense admissible pour activités physiques » “eligible fitness expense” in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a person that is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in a prescribed program of physical activity and, for the purposes of this section, that cost (3) Section 118.03 of the Act is amended by adding the following after subsection (2): Child fitness tax credit — child with disability (2.1) For the purpose of computing the tax payable under this Part by an individual for a taxation year there may be deducted in respect of a qualifying child of the individual an amount equal to $500 multiplied by the appropriate percentage for the taxation year if (a) the amount referred to in the description of B in subsection (2) is $100 or more; and (b) an amount is deductible in respect of the qualifying child under section 118.3 in computing any person’s tax payable under this Part for the taxation year. C. 35 Budget and Economic State (4) Subsections (1) to (3) apply to the 2007 and subsequent taxation years. 39. (1) Section 118.1 of the Act is amended by adding the following after subsection (14): Exchange of beneficial interest in trust (14.1) Where a donee disposes of a beneficial interest in a trust that is a non-qualifying security of an individual in circumstances where paragraph (13)(c) would, but for this subsection, apply in respect of the disposition, and in respect of which the donee receives no consideration other than other non-qualifying securities of the individual, for the purpose of subsection (13) the gift referred to in that subsection is to be read as a reference to a gift of those other non-qualifying securities. (2) Subparagraph 118.1(16)(c)(ii) of the Act is replaced by the following: (ii) the individual or any person or partnership with which the individual does not deal at arm’s length uses property of the donee under an agreement that was made or modified after the time that is 60 months before the particular time, and the property was not used in the carrying on of the donee’s charitable activities, (3) Paragraphs 118.1(18)(b) and (c) of the Act are replaced by the following: (b) a share (other than a share listed on a designated stock exchange) of the capital stock of a corporation with which the individual or the estate or, where the individual is a trust, a person affiliated with the trust, does not deal at arm’s length immediately after that time; (b.1) a beneficial interest of the individual or the estate in a trust that (i) immediately after that time is affiliated with the individual or the estate, or (ii) holds, immediately after that time, a non-qualifying security of the individual or estate, or held, at or before that time, a share described in paragraph (b) that is, after that time, held by the donee; or Exécution du budget et de l’ (c) any other security (other than a security listed on a designated stock exchange) issued by the individual or the estate or by any person or partnership with which the individual or the estate does not deal at arm’s length (or, in the case where the person is a trust, with which the individual or estate is affiliated) immediately after that time. (4) Subsections (1) to (3) apply in respect of gifts made on or after March 19, 2007, except that in applying subsection 118.1(18) of the Act, as amended by subsection (3), before the day on which this Act is assented to, the references to “designated stock exchange” in that subsection 118.1(18) shall be read as references to “prescribed stock exchange”. 40. (1) Clause (a)(ii)(A) of the definition “tax otherwise payable under this Part” in subsection 120(4) of the Act is replaced by the following: (A) subsection 117(2.1), section 119, subsection 120.4(2) and sections 126, 127, 127.4 and 127.41, and (2) Subsection (1) applies to the 2008 and subsequent taxation years. 41. (1) Paragraph (d) of the definition “real estate investment trust” in subsection 122.1(1) of the Act is replaced by the following: (d) at no time in the taxation year is the total fair market value of all properties held by the trust, each of which is a real or immovable property situated in Canada, cash, or a property described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3), less than 75% of the equity value of the trust at that time. (2) Subsection (1) applies after 2007. 42. (1) The Act is amended by adding the following after section 122.64: C. 35 Budget and Economic State Subdivision a.2 Working Income Tax Benefit Definitions 122.7 (1) The following definitions apply in this section. “adjusted net income” « revenu net rajusté » “adjusted net income” of an individual for a taxation year means the amount that would be the individual’s income for the taxation year if (a) this Act were read without reference to paragraph 81(1)(a) and subsection 81(4); (b) in computing that income, no amount were included under paragraph 56(1)(q.1) or subsection 56(6), or in respect of any gain from a disposition of property to which section 79 applies; and (c) in computing that income, no amount were deductible under paragraph 60(y) or (z). “cohabiting spouse or common-law partner” « conjoint visé » “designated educational institution” « établissement d’enseignement agréé » “eligible dependant” « personne à charge admissible » “cohabiting spouse or common-law partner” of an individual at any time has the meaning assigned by section 122.6. “designated educational institution” has the meaning assigned by subsection 118.6(1). “eligible dependant” of an individual for a taxation year means a child of the individual who, at the end of the year, (a) resided with the individual; (b) was under the age of 19 years; and (c) was not an eligible individual. “eligible individual” « particulier admissible » “eligible individual” for a taxation year means an individual (other than an ineligible individual) who was resident in Canada throughout the taxation year and who was, at the end of the taxation year, (a) 19 years of age or older; (b) the cohabiting spouse or common-law partner of another individual; or (c) the parent of a child with whom the individual resides. 2007 “eligible spouse” « conjoint admissible » “ineligible individual” « particulier non admissible » Exécution du budget et de l’ “eligible spouse” of an eligible individual for a taxation year means an individual (other than an ineligible individual) who was resident in Canada throughout the taxation year and who was, at the end of the taxation year, the cohabiting spouse or common-law partner of the eligible individual. “ineligible individual” for a taxation year means an individual (a) who is described in paragraph 149(1)(a) or (b) at any time in the taxation year; (b) who, except where the individual has an eligible dependant for the taxation year, was enrolled as a full-time student at a designated educational institution for a total of more than 13 weeks in the taxation year; or (c) who was confined to a prison or similar institution for a period of at least 90 days during the taxation year. “return of income” « déclaration de revenu » “working income” « revenu de travail » “return of income” filed by an individual for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the individual had tax payable under this Part for the taxation year. “working income” of an individual for a taxation year means the total of (a) the total of all amounts each of which would, if this Act were read without reference to section 8, paragraph 81(1)(a) and subsection 81(4), be the individual’s income for the taxation year from an office or employment; (b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of paragraph 56(1)(n) or (o) in computing the individual’s income for the taxation years; and (c) the total of all amounts each of which would, if this Act were read without reference to paragraph 81(1)(a), be the individual’s income for the taxation year from a business carried on by the individual otherwise than as a specified member of a partnership. C. 35 Deemed payment on account of tax (2) Subject to subsections (4) and (5), an eligible individual for a taxation year who files a return of income for the taxation year and who makes a claim under this subsection, is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula Budget and Economic State A-B where A is (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $500 and 20% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $1,000 and 20% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse of the individual, for the taxation year, exceeds $3,000; and B is (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $9,500, or (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if appliExécution du budget et de l’ cable, of the eligible spouse of the individual, for the taxation year, exceeds $14,500. Deemed payment on account of tax — disability supplement (3) An eligible individual for a taxation year who files a return of income for the taxation year and who may deduct an amount under subsection 118.3(1) in computing tax payable under this Part for the taxation year is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula C-D where C is the lesser of $250 and 20% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,750, and D is (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $12,833, (b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $21,167, or (c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7.5% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $21,167. C. 35 Eligible spouse deemed not to be an eligible individual (4) An eligible spouse of an eligible individual for a taxation year is deemed, for the purpose of subsection (2), not to be an eligible individual for the taxation year if the eligible spouse made a joint application described in subsection (6) with the eligible individual and the eligible individual received an amount under subsection (7) in respect of the taxation year. Amount deemed to be nil (5) If an eligible individual had an eligible spouse for a taxation year and both the eligible individual and the eligible spouse make a claim for the taxation year under subsection (2), the amount deemed to have been paid under that subsection by each of them on account of tax payable under this Part for the taxation year, is nil. Application for advance payment (6) Subsection (7) applies to an individual for a taxation year if, Budget and Economic State (a) at any time after January 1 and before September 1 of the taxation year, the individual makes an application (or in the case of an individual who has, at that time, a cohabiting spouse or common-law partner, the two of them make a joint application designating the individual for the purpose of subsection (7)), to the Minister in prescribed form, containing prescribed information; and (b) where the individual and a cohabiting spouse or common-law partner have made a joint application referred to in paragraph (a) (i) the individual’s working income for the taxation year can reasonably be expected to be greater than the working income of the individual’s cohabiting spouse or commonlaw partner for the taxation year, or (ii) the individual can reasonably be expected to be deemed by subsection (3) to have paid an amount on account of tax payable under this Part for the taxation year. Advance payment (7) Subject to subsection (8), the Minister may pay to an individual before the end of January of the year following a taxation year, one or more amounts that, in total, do not exceed one-half of the total of the amounts that the Minister estimates will be deemed to be paid by the individual under subsection (2) or (3) at Exécution du budget et de l’ the end of the taxation year, and any amount paid by the Minister under this subsection is deemed to have been received by the individual in respect of the taxation year. Limitation — advance payment (8) No payment shall be made under subsection (7) to an individual in respect of a taxation year (a) if the total amount that the Minister may pay under that subsection is less than $100; or (b) before the day on which the individual has filed a return of income for a preceding taxation year in respect of which the individual received a payment under that subsection. Notification to Minister (9) If, in a taxation year, an individual makes an application described in subsection (6), the individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs (a) the individual ceases to be resident in Canada in the taxation year; (b) the individual ceases, before the end of the taxation year, to be a cohabiting spouse or common-law partner of another person with whom the individual made the application; (c) the individual enrols as a full-time student at a designated educational institution in the taxation year; or (d) the individual is confined to a prison or similar institution in the taxation year. Special rule re eligible dependant (10) For the purpose of applying subsections (2) and (3), an individual (referred to in this subsection as the “child”) is deemed not to be an eligible dependant of an eligible individual for a taxation year if the child is an eligible dependant of another eligible individual for the taxation year and both eligible individuals identified the child as an eligible dependant for the purpose of claiming or computing an amount under this section for the taxation year. Effect of bankruptcy (11) For the purpose of this subdivision, if an individual becomes bankrupt in a particular calendar year C. 35 Budget and Economic State (a) notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and (b) the individual’s working income and adjusted net income for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s working income and adjusted net income for the taxation year that begins on January 1 of the particular calendar year. Special rules in the event of death (12) For the purpose of this subdivision, if an individual dies after June 30 of a calendar year (a) the individual is deemed to be resident in Canada from the time of death until the end of the year and to reside at the same place in Canada as the place where the individual resided immediately before death; (b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year; (c) the individual is deemed to be the cohabiting spouse or common-law partner of another individual (referred to in this paragraph as the “surviving spouse”) at the end of the year if, (i) immediately before death, the individual was the cohabiting spouse or commonlaw partner of the surviving spouse, and (ii) the surviving spouse is not the cohabiting spouse or common-law partner of another individual at the end of the year; and (d) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual. Modification for purposes of provincial program 122.71 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an Exécution du budget et de l’ individual under those subsections, be replaced by amounts determined in accordance with the agreement. (2) Subsection (1) applies to the 2007 and subsequent taxation years except that (a) for the 2007 taxation year, paragraphs (b) and (c) of the definition “adjusted net income” in subsection 122.7(1) of the Act, as enacted by subsection (1), shall be read as follows: (b) in computing that income, no amount were included under subsection 56(6), as a beneficiary of a registered disability savings plan or in respect of any gain from a disposition of property to which section 79 applies; and (c) in computing that income, no amount were deductible under paragraph 60(y). (b) subsections 122.7(6) to (8) of the Act, as enacted by subsection (1), apply to the 2008 and subsequent taxation years. 43. (1) The portion of paragraph 127(5)(a) of the Act before clause (ii)(B) is replaced by the following: (a) the total of (i) the taxpayer’s investment tax credit at the end of the year in respect of property acquired before the end of the year, of the taxpayer’s apprenticeship expenditure for the year or a preceding taxation year, of the taxpayer’s child care space amount for the year or a preceding taxation year, of the taxpayer’s flow-through mining expenditure for the year or a preceding taxation year, of the taxpayer’s pre-production mining expenditure for the year or a preceding taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the year or at the end of a preceding taxation year, and (ii) the lesser of C. 35 Budget and Economic State (A) the taxpayer’s investment tax credit at the end of the year in respect of property acquired in a subsequent taxation year, of the taxpayer’s apprenticeship expenditure for a subsequent taxation year, of the taxpayer’s child care space amount for a subsequent taxation year, of the taxpayer’s flowthrough mining expenditure for a subsequent taxation year, of the taxpayer’s pre-production mining expenditure for a subsequent taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the subsequent taxation year to the extent that an investment tax credit was not deductible under this subsection for the subsequent taxation year, and (2) Subsection 127(7) of the Act is replaced by the following: Investment tax credit of testamentary trust (7) If, in a particular taxation year of a taxpayer who is a beneficiary under a testamentary trust or under an inter vivos trust that is deemed to be in existence by section 143, an amount is determined in respect of the trust under paragraph (a), (a.1), (a.4), (a.5), (b) or (e.1) of the definition “investment tax credit” in subsection (9) for its taxation year that ends in that particular taxation year, the trust may, in its return of income for its taxation year that ends in that particular taxation year, designate the portion of that amount that can, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be attributable to the taxpayer and was not designated by the trust in respect of any other beneficiary of the trust, and that portion shall be added in computing the investment tax credit of the taxpayer at the end of that particular taxation year and shall be deducted in computing the investment tax credit of the trust at the end of its taxation year that ends in that particular taxation year. Exécution du budget et de l’ (3) The portion of subsection 127(8) of the Act before paragraph (a) is replaced by the following: Investment tax credit of partnership (8) Subject to subsections (28) and (28.1), where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined in respect of the partnership, for its taxation year that ends in the particular taxation year, under paragraph (a), (a.1), (a.4), (a.5), (b) or (e.1) of the definition “investment tax credit” in subsection (9), if (4) Subparagraph 127(8.2)(b)(i) of the Act is amended by striking out the word “or” at the end of clause (A.1) and by adding the following after clause (A.1): (A.2) an amount that would be the child care space amount in respect of a property of the partnership if the reference to “$10,000” in paragraph (a) of the definition “child care space amount” in subsection (9) were read as a reference to “$40,000” and paragraph (b) of that definition were read without reference to “25% of”, or (5) Paragraph 127(8.31)(a) of the Act is replaced by the following: (a) the total of all amounts each of which is an amount that would, if the partnership were a person and its fiscal period were its taxation year, be determined in respect of the partnership under paragraph (a), (a.1), (a.4), (a.5), (b) or (e.1) of the definition “investment tax credit” in subsection (9) for a taxation year that is the fiscal period, (6) Subsection 127(8.31) of the Act is amended by adding the word “and” at the end of subparagraph (b)(i), by striking out the word “and” at the end of subparagraph (b)(ii), and by repealing subparagraph (b)(iii). (7) The definition “eligible apprentice” in subsection 127(9) of the Act is replaced by the following; 122 “eligible apprentice” « apprenti admissible » C. 35 Budget and Economic State “eligible apprentice” means an individual who is employed in Canada in a trade prescribed in respect of a province or in respect of Canada, during the first twenty-four months of the individual’s apprenticeship contract registered with the province or Canada, as the case may be, under an apprenticeship program designed to certify or license individuals in the trade; (8) Paragraph (a) of the definition “flowthrough mining expenditure” in subsection 127(9) of the Act is replaced by the following: (a) that is a Canadian exploration expense incurred by a corporation after March 2007 and before 2009 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2009) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1), (9) Paragraphs (c) and (d) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act are replaced by the following: (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2007 and before April 2008, and (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2007 and before April 2008; Exécution du budget et de l’ (10) The definition “investment tax credit” in subsection 127(9) of the Act is amended by adding the following after paragraph (a.4): (a.5) the child care space amount of the taxpayer for the taxation year, (11) Paragraph (e.1) of the definition “investment tax credit” in subsection 127(9) of the Act is amended by striking out the word “or” at the end of subparagraph (iv), by striking out the word “and” at the end of subparagraph (v) and by adding the following after subparagraph (v): (vi) the amount of eligible salary and wages payable by the taxpayer to an eligible apprentice under paragraph (11.1)(c.4), to the extent that that reduction had the effect of reducing the amount of an apprenticeship expenditure of the taxpayer, or (vii) the amount of an eligible child care space expenditure of the taxpayer under paragraph (11.1)(c.5), to the extent that that reduction had the effect of reducing the amount of a child care space amount of the taxpayer, and (12) Paragraph (f.1) of the definition “specified percentage” in subsection 127(9) is replaced by the following: (f.1) in respect of the repayment of government assistance, non-government assistance or a contract payment that reduced (i) a qualified expenditure incurred by the taxpayer under any of subsections (18) to (20), 20%, (ii) the amount of eligible salary and wages payable (by the taxpayer) to an eligible apprentice under paragraph (11.1)(c.4), 10%, or (iii) the amount of the taxpayer’s eligible child care space expenditure under paragraph (11.1)(c.5), 25%; C. 35 Budget and Economic State (13) Subsection 127(9) of the Act is amended by adding the following definitions in alphabetical order: “child care space amount” « somme relative à une place en garderie » “child care space amount” of a taxpayer for a taxation year is, if the provision of child care spaces is ancillary to one or more businesses of the taxpayer that are carried on in Canada in the taxation year and that do not otherwise include the provision of child care spaces, the lesser of (a) the amount obtained when $10,000 is multiplied by the number of new child care spaces created by the taxpayer during the taxation year in a licensed child care facility for the benefit of children of the taxpayer’s employees, or of a combination of children of the taxpayer’s employees and other children; and (b) 25% of the taxpayer’s eligible child care space expenditure for the taxation year; “eligible child care space expenditure” « dépense admissible relative à une place en garderie » “eligible child care space expenditure” of a taxpayer for a taxation year is the total of all amounts each of which is an amount (a) that is incurred by the taxpayer in the taxation year for the sole purpose of the creation of one or more new child care spaces in a licensed child care facility operated for the benefit of children of the taxpayer’s employees, or of a combination of children of the taxpayer’s employees and other children, and (b) that is (i) incurred by the taxpayer to acquire depreciable property of a prescribed class (other than a specified property) for use in the child care facility, or (ii) incurred by the taxpayer to make a specified child care start-up expenditure in respect of the child care facility; “specified child care start-up expenditure” « dépense de démarrage déterminée pour la garde d’enfants » “specified child care start-up expenditure” of a taxpayer in respect of a child care facility is an expenditure incurred by the taxpayer (other than to acquire a depreciable property) that is (a) a landscaping cost incurred to create, at the child care facility, an outdoor play area for children, Exécution du budget et de l’ (b) an architectural fee for designing the child care facility or a fee for advice on planning, designing and establishing the child care facility, (c) a cost of construction permits in respect of the child care facility, (d) an initial licensing or regulatory fee in respect of the child care facility, including fees for mandatory inspections, (e) a cost of educational materials for children, or (f) a similar amount incurred for the sole purpose of the initial establishment of the child care facility; “specified property” « bien déterminé » “specified property” in respect of a taxpayer means any property that is (a) a motor vehicle or any other motorized vehicle, or (b) a property that is, or is located in, or attached to, a residence (i) of the taxpayer, (ii) an employee of the taxpayer, (iii) a person who holds an interest in the taxpayer, or (iv) a person related to a person referred to in any of subparagraphs (i) to (iii); (14) Paragraph 127(11.1)(c.4) of the Act is replaced by the following: (c.4) the amount of a taxpayer’s eligible salary and wages for a taxation year is deemed to be the amount of the taxpayer’s eligible salary and wages for the year otherwise determined less the amount of any government assistance or non-government assistance in respect of the eligible salary and wages for the year that, at the time of the filing of the taxpayer’s return of C. 35 Budget and Economic State income for the year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive; (c.5) the amount of a taxpayer’s eligible child care space expenditure for a taxation year is deemed to be the amount of the taxpayer’s eligible child care space expenditure for the taxation year otherwise determined less the amount of any government assistance or non-government assistance in respect of the eligible child care space expenditure for the taxation year that, at the time of the filing of the taxpayer’s return of income for the taxation year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive; and (15) Subsection 127(11.2) of the Act is replaced by the following: Time of expenditure and acquisition (11.2) In applying subsections (5), (7) and (8), paragraphs (a), (a.1) and (a.5) of the definition “investment tax credit” in subsection (9) and section 127.1, (a) certified property, qualified property and first term shared-use-equipment are deemed not to have been acquired, and (b) expenditures incurred to acquire property described in subparagraph 37(1)(b)(i) or included in an eligible child care expenditure are deemed not to have been incurred by a taxpayer before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and 13(28)(d), and subparagraph (27.12)(b)(i). (16) Section 127 of the Act is amended by adding the following after subsection (27): Recapture of investment tax credit — child care space amount (27.1) There shall be added to a taxpayer’s tax otherwise payable under this Part for a particular taxation year, the total of all amounts each of which is an amount determined under subsection (27.12) in respect of a disposition by the taxpayer in the particular taxation year of a property a percentage of the cost of which can reasonably be considered to have been included Exécution du budget et de l’ in the child care space amount of the taxpayer for a taxation year, if the property was acquired in respect of a child care space that was created at a time that is less than 60 months before the disposition. Disposition (27.11) For the purpose of subsection (27.1), (a) if a particular child care space, in respect of which any amount is included in the child care space amount of a taxpayer or a partnership for a taxation year or a fiscal period, ceases at any particular time to be available, the child care space is, except where the child care space has been disposed of by the taxpayer or the partnership before the particular time, deemed to be a property (i) disposed of by the taxpayer or the partnership, as the case maybe, at the particular time, (ii) a percentage of the cost of which can reasonably be considered to be included in the child care space amount of the taxpayer or the partnership, as the case may be, for a taxation year or a fiscal period, and (iii) acquired in respect of a child care space that was created at the time the child care space was created, (b) child care spaces that cease to be available are deemed to so cease in reverse chronological order to their creation, and (c) a property acquired by a taxpayer or a partnership in respect of a child care space is deemed to be disposed of by the taxpayer or the partnership, as the case maybe, in a disposition described in clause (27.12)(b)(ii)(B) if the property is leased by the taxpayer or the partnership to a lessee for any purpose or is converted to a use by the taxpayer or the partnership other than to a use for the child care space. Amount of recapture (27.12) For the purposes of subsection (27.1) and (27.11), the amount determined under this subsection in respect of a disposition of a property by a taxpayer or a partnership is, C. 35 Budget and Economic State (a) where the property disposed of is a child care space, the amount that can reasonably be considered to have been included under paragraph (a.5) of the definition “investment tax credit” in subsection (9) in respect of the taxpayer or partnership in respect of the child care space, and (b) in any other case, the lesser of, (i) the amount that can reasonably be considered to have been included under paragraph (a.5) of the definition “investment tax credit” in subsection (9) in respect of the taxpayer or partnership in respect of the cost of the property, and (ii) 25% of (A) if the property, or a part of the property, is disposed of to a person who deals at arm’s length with the taxpayer or the partnership, the proceeds of disposition of the property, or of the part of the property, and (B) in any other case, the fair market value of the property or of the part of the property, at the time of the disposition. (17) Section 127 of the Act is amended by adding the following after subsection (28): Recapture of partnership’s investment tax credits — child care property (28.1) For the purpose of computing the amount determined under subsection (8) in respect of a partnership at the end of a particular fiscal period of the partnership, there shall be deducted the total of all amounts, each of which is an amount determined under subsection (27.12) in respect of a disposition by the partnership in the particular fiscal period of a property a percentage of the cost of which can reasonably be considered to have been included in the child care space amount of the partnership for a fiscal period, if the property was acquired in respect of a child care space that was created at a time that is less than 60 months before the disposition. Exécution du budget et de l’ (18) Subsection 127(30) of the Act is replaced by the following: Addition to tax (30) Where a taxpayer is a member of a partnership at the end of a fiscal period of the partnership, there shall be added to the taxpayer’s tax otherwise payable under this Part for the taxpayer’s taxation year in which that fiscal period ends the amount that can reasonably be considered to be the taxpayer’s share of the amount, if any, by which (a) the total of (i) the total of all amounts each of which is the lesser of the amounts described in paragraphs (28)(d) and (e) in respect of the partnership in respect of the fiscal period, (ii) the total of all amounts each of which is the lesser of the amounts described in paragraphs (35)(c) and (d) in respect of the partnership in respect of the fiscal period, and (iii) the total of all amounts each of which is an amount required by subsection (28.1) to be deducted in computing the amount determined in respect of the partnership in respect of the fiscal period under subsection (8), exceeds (b) the amount that would be determined in respect of the partnership under subsection (8) if that subsection were read without reference to subsections (28), (28.1), and (35). (19) Subsections (1) to (5) and (15) to (18) apply on and after March 19, 2007. (20) Subsection (6) applies to the 2007 and subsequent taxation years. (21) Subsection (7) applies to taxation years ending on or after May 2, 2006. (22) Subsections (8) and (9) apply to expenses renounced under agreements made after March 2007. C. 35 Budget and Economic State (23) Subsections (10) and (13) apply to expenditures incurred on and after March 19, 2007. (24) Subsections (11), (12) and (14) apply to taxation years that end on or after May 2, 2006, except that subparagraph (e.1) (vii) of the definition “investment tax credit” in subsection 127(9) of the Act, as enacted by subsection (11), subparagraph (f.1)(iii) of the definition “specified percentage” in subsection 127(9) of the Act, as enacted by subsection (12), and paragraph 127(11.1)(c.5) of the Act, as enacted by subsection (14), apply to taxation years that end on or after March 19, 2007. 44. (1) The portion of subsection 141(5) of the Act before paragraph (a) is replaced by the following: Exclusion from taxable Canadian property (5) For the purpose of paragraph (d) of the definition “taxable Canadian property” in subsection 248(1), a share of the capital stock of a corporation is deemed to be listed at any time on a designated stock exchange if (2) Subsection (1) applies on and after the day on which this Act is assented to. 45. (1) The definition “contribution” in subsection 146.1(1) of the Act is replaced by the following: “contribution” « cotisation » “contribution”, into an education savings plan, does not include an amount paid into the plan under the Canada Education Savings Act or under a designated provincial program; (2) Paragraph (c.1) of the definition “trust” in subsection 146.1(1) of the Act is replaced by the following: (c.1) the repayment of amounts (and the payment of amounts related to that repayment) under the Canada Education Savings Act or under a designated provincial program, Exécution du budget et de l’ (3) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order: “designated provincial program” « programme provincial désigné » “designated provincial program” means (a) a program administered pursuant to an agreement entered into under section 12 of the Canada Education Savings Act, or (b) a prescribed program; (4) Subsections (1) to (3) apply to the 2007 and subsequent taxation years. 46. (1) The portion of subsection 149.1(1) of the Act before the definition “capital gains pool” is replaced by the following: Definitions 149.1 (1) In this section and section 149.2, (2) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order: “divestment obligation percentage” « pourcentage de dessaisissement » “divestment obligation percentage” of a private foundation for a particular taxation year, in respect of a class of shares of the capital stock of a corporation, is the percentage, if any, greater than 0%, determined by the formula A+B-C where A is the percentage determined under this definition in respect of the private foundation in respect of the class for the preceding taxation year, B is the total of all percentages, each of which is the portion of a net increase in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(5), and C is the total of all percentages, each of which is the portion of a net decrease in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding C. 35 Budget and Economic State taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(7); “entrusted shares percentage” « pourcentage d’actions visées par une stipulation » “entrusted shares percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, at any particular time means the percentage of the issued and outstanding shares of that class that are held at the particular time by the private foundation that are shares that were acquired by the private foundation by way of a gift that was subject to a trust or direction that the shares are to be held by the private foundation for a period ending not earlier than the particular time, if the gift was made (a) before March 19, 2007, (b) on or after March 19, 2007 and before March 19, 2012 (i) under the terms of a will that was executed by a taxpayer before March 19, 2007 and not amended, by codicil or otherwise, on or after March 19, 2007, and (ii) in circumstances where no other will of the taxpayer was executed or amended on or after March 19, 2007, or (c) on or after March 19, 2007, under the terms of a testamentary or inter vivos trust created before March 19, 2007, and not amended on or after March 19, 2007; “excess corporate holdings percentage” « pourcentage de participation excédentaire » “excess corporate holdings percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, at any time means (a) if the private foundation is not, at that time, a registered charity, 0%, (b) if the private foundation holds, at that time, an insignificant interest in respect of the class, 0%, and (c) in any other case, the number of percentage points, if any, by which the total corporate holdings percentage of the private foundation in respect of the class, at that time, exceeds the greater of 20% and the entrusted shares percentage, at that time, of the private foundation in respect of the class; Exécution du budget et de l’ 2007 “material transaction” « opération importante » “material transaction” of a private foundation, in respect of a class of shares of the capital stock of a corporation, means a transaction or a series of transactions or events in shares of the class, in respect of which the total fair market value of the shares of the class that are acquired or disposed of by the private foundation or any relevant person in respect of the private foundation as part of the transaction or series (determined at the time of the transaction, or at the end of the series, as the case may be) exceeds the lesser of (a) $100,000, and (b) 0.5% of the total fair market value of all of the issued and outstanding shares of the class; “original corporate holdings percentage” « pourcentage de participation initiale » “relevant person” « personne intéressée » “original corporate holdings percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, means the total corporate holdings percentage of the private foundation, in respect of that class, held on March 18, 2007; “relevant person” in respect of a private foundation means a person who, at any time in respect of which the expression is relevant, deals not at arm’s length with the private foundation (determined as if subsection 251(2) were applied as if the private foundation were a corporation), but does not include (a) a person who at that time is considered to deal not at arm’s length with the private foundation solely because of a right referred to in paragraph 251(5)(b), or (b) an individual (i) who at that time has attained the age of 18 years and lives separate and apart from any other individual (referred to in this definition as a “controlling individual”) who would, if the private foundation were a corporation, control, or be a member of a related group that controls, the private foundation, and (ii) in respect of whom the Minister is satisfied, upon review of an application by the private foundation, that the individual would, if subsection 251(1) were read C. 35 Budget and Economic State without reference to its paragraphs (a) and (b), at that time, deal at arm’s length with all controlling individuals; “total corporate holdings percentage” « pourcentage de participation totale » “total corporate holdings percentage” of a private foundation, in respect of a class of shares of the capital stock of a corporation, at any particular time means the percentage of the issued and outstanding shares of that class that are held at that time by the private foundation, or by a relevant person in respect of the private foundation who holds a material interest in respect of that class; (3) Paragraph 149.1(4)(c) of the Act is replaced by the following: (c) has, in respect of a class of shares of the capital stock of a corporation, a divestment obligation percentage at the end of any taxation year; (4) The portion of paragraph 149.1(12)(a) of the Act after subparagraph (ii) is replaced by the following: but, for the purpose of paragraph (3)(c), a charitable foundation is deemed not to have acquired control of a corporation if it has not purchased or otherwise acquired for consideration more than 5% of the issued shares of any class of the capital stock of that corporation; (5) Subsection 149.1(15) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) if, at any time during a taxation year of a private foundation that is a registered charity, the private foundation holds more than an insignificant interest in respect of a class of shares of the capital stock of a corporation, the Minister shall make available to the public in such manner as the Minister deems appropriate, (i) the name of the corporation, and Exécution du budget et de l’ (ii) in respect of each class of shares of the corporation, that portion of the total corporate holdings percentage of the private foundation in respect of the class that is attributable to (A) holdings of shares of that class by the private foundation, and (B) the total of all holdings of shares of that class by relevant persons in respect of the private foundation. (6) Subsections (1) and (2) apply on and after March 19, 2007. (7) Subsections (3) to (5) apply to taxation years, of foundations, that begin after March 18, 2007, except that subsections (3) and (4) do not apply to a taxation year of a private foundation if subsection 149.2(8) of the Act, as enacted by clause 47(1), applies to the private foundation in respect of any class of shares of the capital stock of a corporation. 47. (1) The Act is amended by adding the following after section 149.1: Material and insignificant interests 149.2 (1) In this section and section 149.1, (a) a person has, at any time, a material interest in respect of a class of shares of the capital stock of a corporation if, at that time, (i) the percentage of the shares of that class held by the person exceeds 0.5% of all the issued and outstanding shares of that class, or (ii) the fair market value of the shares so held exceeds $100,000; and (b) a private foundation has, at any time, an insignificant interest in respect of a class of shares of the capital stock of a corporation if, at that time, the percentage of shares of that class held by the private foundation does not exceed 2% of all the issued and outstanding shares of that class. C. 35 Material transaction — anti-avoidance (2) If a private foundation or a relevant person in respect of the private foundation has engaged in one or more transactions or series of transactions or events, a purpose of which may reasonably be considered to be to avoid the application of the definition “material transaction”, each of those transactions or series of transactions or events is deemed to be a material transaction. Net increase in excess corporate holdings percentage (3) The net increase in the excess corporate holdings percentage of a private foundation for a taxation year, in respect of a class of shares of the capital stock of a corporation, is the number of percentage points, if any, determined by the formula Budget and Economic State A-B where A is the excess corporate holdings percentage of the private foundation at the end of the taxation year, in respect of the class, and B is (a) 0%, if (i) at the beginning of the taxation year the private foundation was not both a private foundation and a registered charity, or (ii) the private foundation was both a registered charity and a private foundation on March 18, 2007 and the taxation year is the first taxation year of the private foundation that begins after that date; and (b) in any other case, the excess corporate holdings percentage of the private foundation in respect of the class at the end of its preceding taxation year. Net decrease in excess corporate holdings percentage (4) The net decrease in the excess corporate holdings percentage of a private foundation for a taxation year, in respect of a class of shares of the capital stock of a corporation, is the number of percentage points, if any, by which the percentage determined for B in the formula in Exécution du budget et de l’ subsection (3) for the taxation year exceeds the percentage determined for A in that formula for the taxation year. Allocation of net increase in excess corporate holdings percentage (5) For the purpose of the description of B in the definition “divestment obligation percentage” in subsection 149.1(1), the net increase in the excess corporate holdings percentage of a private foundation in respect of a class of shares of the capital stock of a corporation, for a taxation year (in this subsection referred to as the “current year”) is to be allocated in the following order: (a) first to the divestment obligation percentage of the private foundation in respect of that class for the current year, to the extent that the private foundation has in the current year acquired for consideration shares of that class; (b) then to the divestment obligation percentage of the private foundation in respect of that class for its fifth subsequent taxation year, to the extent of the lesser of (i) that portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a), and (ii) the percentage of the issued and outstanding shares of that class that were acquired by the private foundation in the current year by way of bequest; (c) then to the divestment obligation percentage of the private foundation in respect of that class for its second subsequent taxation year, to the extent of the lesser of (i) that portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a) or (b), and (ii) the total of (A) the percentage of the issued and outstanding shares of that class that were acquired by the private foundation in the C. 35 Budget and Economic State current year by way of gift, other than from a relevant person or by way of bequest, and (B) the portion of the net increase in the excess corporate holdings percentage of the private foundation that is attributable to the redemption, acquisition or cancellation of any of the issued and outstanding shares of that class in the current year by the corporation; and (d) then to the divestment obligation percentage of the private foundation in respect of that class for its subsequent taxation year, to the extent of that portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a), (b) or (c). Minister’s discretion (6) Notwithstanding subsection (5), on application by a private foundation, the Minister may, if the Minister believes it would be just and equitable to do so, reallocate any portion of the net increase in the excess corporate holdings percentage of the private foundation in respect of a class of shares of the capital stock of a corporation for a taxation year, that would otherwise be allocated under subsection (5) to the private foundation’s divestment obligation percentage in respect of that class for a particular taxation year, to the private foundation’s divestment obligation percentage in respect of that class for any of the ten taxation years subsequent to the particular taxation year. Allocation of net decrease in excess corporate holdings percentage (7) For the purpose of the description of C in the definition “divestment obligation percentage” in subsection 149.1(1), the net decrease in the excess corporate holdings percentage of a private foundation in respect of a class of shares of the capital stock of a corporation for a taxation year (in this subsection referred to as the “current year”) is to be allocated in the following order: Exécution du budget et de l’ (a) first, to the divestment obligation percentage of the private foundation in respect of that class for the current year, to the extent of that divestment obligation percentage; and (b) then to the divestment obligation percentage of the private foundation in respect of that class for a subsequent taxation year of the private foundation (referred to in this paragraph as the “subject year”), to the extent of the lesser of (i) that portion of the net decrease in the excess corporate holdings percentage of the private foundation in respect of that class for the current year that is not allocated under paragraph (a), or under this paragraph, to the divestment obligation percentage of the private foundation in respect of that class for a taxation year of the private foundation that precedes the subject year, and (ii) the amount of the divestment obligation percentage of the private foundation in respect of that class for the subject year, calculated as at the end of the current year and without reference to this subsection. Transitional rule (8) If the original corporate holdings percentage of a private foundation in respect of a class of shares of the capital stock of a corporation exceeds 20%, for the purpose of applying the definition “excess corporate holdings percentage” in subsection 149.1(1) to (a) the first taxation year of the private foundation that begins after March 18, 2007, the reference to 20% in that definition in respect of that class is to be read as the original corporate holdings percentage of the private foundation in respect of that class; (b) taxation years of the private foundation that are after the taxation year referred to in paragraph (a) and that begin before March 19, 2012, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of C. 35 Budget and Economic State (A) the total corporate holdings percentage of the private foundation in respect of the class at the end of the immediately preceding taxation year, and (B) the original corporate holdings percentage in respect of that class; (c) taxation years of the private foundation that begin after March 18, 2012 and before March 19, 2017, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of (A) the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and (B) the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 20%; (d) taxation years of the private foundation that begin after March 18, 2017 and before March 19, 2022, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of (A) the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and (B) the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 40%; and (e) taxation years of the private foundation that begin after March 18, 2022 and before March 19, 2027, the reference to 20% in that definition in respect of that class is to be read as the greater of (i) 20%, and (ii) the lesser of Exécution du budget et de l’ (A) the total corporate holdings percentage of the private foundation in respect of the class at the end of the preceding taxation year, and (B) the number of percentage points, if any, by which the private foundation’s original corporate holdings percentage in respect of that class exceeds 60%. (2) Subsection (1) applies to taxation years, of private foundations, that begin on or after March 19, 2007. 48. (1) Paragraph 152(1)(b) of the Act is replaced by the following: (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 125.4(3), 125.5(3), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (2) Paragraph 152(4.2)(b) of the Act is replaced by the following: (b) redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year. C. 35 Budget and Economic State (3) Subsections (1) and (2) apply to the 2007 and subsequent taxation years. 49. (1) Paragraph 153(1)(a) of the Act is replaced by the following: (a) salary, wages or other remuneration, other than amounts described in subsection 115(2.3) or 212(5.1), (2) Paragraph 153(1)(g) of the Act is replaced by the following: (g) fees, commissions or other amounts for services, other than amounts described in subsection 115(2.3) or 212(5.1), 50. (1) Paragraphs (a) and (b) of the definition “instalment threshold” in subsection 156.1(1) of the Act are replaced by the following: (a) in the case of an individual resident in the Province of Quebec at the end of the year, $1,800, and (b) in any other case, $3,000; (2) Subsection (1) applies to the 2008 and subsequent taxation years and, for the purpose of applying subsection 156.1(2) of the Act in respect of the 2008 and 2009 taxation years, to the 2006 and 2007 taxation years. 51. (1) The portion of subsection 157(1) of the Act before subparagraph (a)(ii) is replaced by the following: Payment by corporation 157. (1) Subject to subsections (1.1) and (1.5), every corporation shall, in respect of each of its taxation years, pay to the Receiver General (a) either (i) on or before the last day of each month in the year, an amount equal to 1/12 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the year, (2) Paragraph 157(1)(b) of the Act is replaced by the following: Exécution du budget et de l’ (b) the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the year on or before its balance-due day for the year. (3) Section 157 of the Act is amended by adding the following after subsection (1): Special case (1.1) A small-CCPC may, in respect of each of its taxation years, pay to the Receiver General (a) one of the following: (i) on or before the last day of each threemonth period in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/4 of the total of the amounts estimated by it to be the taxes payable by it under this Part and Part VI.1 for the taxation year, (ii) on or before the last day of each threemonth period in the taxation year (or if the period that remains in a taxation year after the end of the last such three-month period is less than three months, on or before the last day of that remaining period), an amount equal to 1/4 of its first instalment base for the taxation year, or (iii) on or before the last day (A) of the first period in the taxation year not exceeding three months, an amount equal to 1/4 of its second instalment base for the taxation year, and (B) of each of the following threemonth periods in the taxation year (or if the period that remains in a taxation year after the end of the last such threemonth period is less than three months, on or before the last day of that remaining period), an amount equal to 1/3 of the amount remaining after deducting the amount computed pursuant to clause (A) from its first instalment base for the taxation year; and C. 35 Budget and Economic State (b) the remainder of the taxes payable by it under this Part and Part VI.1 for the taxation year on or before its balance-due day for the taxation year. Small-CCPC (1.2) For the purpose of subsection (1.1), a small-CCPC, at a particular time during a taxation year, is a Canadian-controlled private corporation (a) for which the amount determined under subsection (1.3) for the taxation year, or for the preceding taxation year, does not exceed $400,000; (b) for which the amount determined under subsection (1.4) for the taxation year, or for the preceding taxation year, does not exceed $10 million; (c) in respect of which an amount is deducted under section 125 of the Act in computing the corporation’s tax payable for the taxation year or for the preceding taxation year; and (d) that has throughout the 12-month period that ends at the time its last remittance under this section is due, (i) remitted, on or before the day on or before which the amounts were required to be remitted, all amounts that were required to be remitted under subsection 153(1), under Part IX of the Excise Tax Act, under subsection 82(1) of the Employment Insurance Act or under subsection 21(1) of the Canada Pension Plan; and (ii) filed, on or before the day on or before which the returns were required to be filed, all returns that were required to be filed under this Act or under Part IX of the Excise Tax Act. Taxable income — smallCCPC (1.3) The amount determined under this subsection in respect of a corporation for a particular taxation year is Exécution du budget et de l’ (a) if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation’s taxable income for the particular taxation year; or (b) if the corporation is associated with another corporation in the particular taxation year, the amount that is the total of all amounts each of which is the taxable income of the corporation for the particular taxation year or the taxable income of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year. Taxable capital — smallCCPC (1.4) The amount determined under this subsection in respect of a corporation for a particular taxation year is (a) if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2) for the particular taxation year; or (b) if the corporation is associated with another corporation in the particular taxation year, the amount that is the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2) of the corporation for the particular taxation year or the taxable capital employed in Canada (within the meaning assigned by section 181.2) of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year. No longer a small-CCPC (1.5) Notwithstanding subsection (1), where a corporation, that has remitted amounts in accordance with subsection (1.1), ceases at any particular time in a taxation year to be eligible to remit in accordance with subsection (1.1), the corporation shall pay to the Receiver General, the following amounts for the taxation year, (a) on or before the last day of each month, in the taxation year, that ends after the particular time, either C. 35 Budget and Economic State (i) the amount determined by the formula (A - B)/C where A is the total of the amounts estimated by the corporation to be the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year, B is the total of all payments payable by the corporation in the taxation year in accordance with subsection (1.1), and C is the number of months that end in the taxation year and after the particular time, or (ii) the total of (A) the amount determined by the formula (A - B)/C where A is the corporation’s first instalment base for the taxation year, B is the total of all payments payable by the corporation in the taxation year in accordance with subsection (1.1), and C is the number of months that end in the taxation year and after the particular time; and (B) the amount obtained when the estimated tax payable by the corporation, if any, under Part VI and XIII.1 for the taxation year is divided by the number of months that end in the taxation year and after the particular time; and (b) the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year on or before its balancedue date for the taxation year. (4) Subsection 157(2.1) of the Act is replaced by the following: $3,000 threshold (2.1) A corporation may, instead of paying the instalments required for a taxation year by paragraph (1)(a) or by subsection (1.1), pay to Exécution du budget et de l’ the Receiver General, under paragraph (1)(b), the total of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year, if (a) the total of the taxes payable under this Part and Parts VI, VI.1 and XIII.1 by the corporation for the taxation year (determined before taking into consideration the specified future tax consequences for the year) is equal to or less than $3,000; or (b) the corporation’s first instalment base for the year is equal to or less than $3,000. (5) The portion of subsection 157(3) of the Act before paragraph (a) is replaced by the following: Reduced instalments (3) Notwithstanding subsection (1) and (1.5), the amount payable under subsection (1) or (1.5) for a taxation year by a corporation to the Receiver General on or before the last day of any month in the yearis deemed to be the amount, if any, by which (6) Section 157 of the Act is amended by adding the following after subsection (3): Amount of payment — three-month period (3.1) Notwithstanding subsection (1.1), the amount payable under subsection (1.1) for a taxation year by a corporation to the Receiver General on or before the last day of any period in the yearis deemed to be the amount, if any, by which (a) the amount so payable as determined under that subsection for the period exceeds the total of (b) 1/4 of the corporation’s dividend refund (within the meaning assigned by subsection 129(1)) for the taxation year, and (c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the taxation year. (7) Subsections (1) to (6) apply to taxation years that begin after 2007. C. 35 Budget and Economic State 52. (1) Subsection 161(4.1) of the Act is replaced by the following: Limitation — corporations (4.1) For the purposes of subsection (2) and section 163.1, where a corporation is required to pay a part or instalment of tax for a taxation year computed by reference to a method described in subsection 157(1), (1.1) or (1.5), as the case may be, the corporation is deemed to have been liable to pay on or before each day on or before which subparagraph 157(1)(a)(i), (ii) or (iii), subparagraph 157(1.1)(a)(i), (ii) or (iii), or subparagraph 157(1.5)(a)(i) or (ii), as the case may be, requires a part or instalment to be made equal to the amount, if any, by which (a) the part or instalment due on that day computed in accordance with whichever allowable method in the circumstances gives rise to the least total amount of such parts or instalments of tax for the year, computed by reference to (i) the total of the taxes payable under this Part and Parts VI, VI.1 and XIII.1 by the corporation for the year, determined before taking into consideration the specified future tax consequences for the year, (ii) its first instalment base for the year, or (iii) its second instalment base and its first instalment base for the year, exceeds (b) the amount, if any, determined under any of paragraphs 157(3)(b) to (e) or under paragraph 157(3.1)(b) or (c), as the case may be, in respect of that instalment. (2) Subsections (1) applies to taxation years that begin after 2007. 53. (1) Subsection 163(2) of the Act is amended by adding the following after paragraph (c.2): (c.3) the amount, if any, by which (i) the total of all amounts each of which is an amount that would be deemed by subsection 122.7(2) or (3) to be a payment on account of the person’s tax payable under this Part or another person’s tax Exécution du budget et de l’ payable under this Part for the year if those amounts were calculated by reference to the information provided in the return exceeds (ii) the total of all amounts each of which is an amount that is deemed by subsection 122.7(2) or (3) to be a payment on account of the person’s tax payable under this Part and, where applicable, the other person’s tax payable under this Part for the year, (2) Subsection (1) applies to the 2007 and subsequent taxation years. 54. (1) The definition “tobacco manufacturing” in subsection 182(2) of the Act is replaced by the following: “tobacco manufacturing” « fabrication du tabac » “tobacco manufacturing” means any activity, other than an exempt activity, relating to the manufacture or processing in Canada of tobacco or tobacco products in or into any form that is, or would after any further activity become, suitable for smoking; (2) Subsection 182(2) of the Act is amended by adding the following in alphabetical order: “exempt activity” « activité exclue » “exempt activity”, of a particular corporation, means (a) farming; or (b) processing leaf tobacco, if (i) that processing is done by, and is the principal business of, the particular corporation, (ii) the particular corporation does not manufacture any tobacco product, and (iii) the particular corporation is not related to any other corporation that carries on tobacco manufacturing (determined, in respect of the other corporation, as if the particular corporation did not exist and the C. 35 Budget and Economic State definition “tobacco manufacturing” were read without reference to the words “in Canada”); (3) Subsections (1) and (2) apply to taxation years that end after 2006. 55. (1) Subparagraph 186.1(b)(vii) of the Act is replaced by the following: (vii) a registered securities dealer that was throughout the year a member, or a participating organization, of a designated stock exchange in Canada. (2) Subsection (1) applies after April 2, 2000, except that, in its application before the day on which this Act is assented to, the reference to “designated stock exchange” in subparagraph 186.1(b)(vii) of the Act, as amended by subsection (1), shall be read as a reference to “prescribed stock exchange”. 56. Section 188.1 of the Act is amended by adding the following after subsection (3): Penalty for excess corporate holdings (3.1) A private foundation is liable to a penalty under this Part for a taxation year, in respect of a class of shares of the capital stock of a corporation, equal to (a) 5% of the amount, if any, determined by multiplying the divestment obligation percentage of the private foundation for the taxation year in respect of the class by the total fair market value of all of the issued and outstanding shares of the class, except if the private foundation is liable for the taxation year under paragraph (b) for a penalty in respect of the class; or (b) 10% of the amount, if any, determined by multiplying the divestment obligation percentage of the private foundation for the taxation year in respect of the class by the total fair market value of all of the issued and outstanding shares of the class, if (i) the private foundation has failed to disclose, in its return required under subsection 149.1(14) for the taxation year, Exécution du budget et de l’ (A) a material transaction, in the taxation year, of the private foundation in respect of the class, (B) a material interest held at the end of the taxation year by a relevant person in respect of the private foundation, or (C) the total corporate holdings percentage of the private foundation in respect of the class at the end of the taxation year, unless at no time in the taxation year the private foundation held greater than an insignificant interest in respect of the class, or (ii) the Minister has, less than five years before the end of the taxation year, assessed a liability under paragraph (a) or this paragraph for a preceding taxation year of the private foundation in respect of any divestment obligation percentage. Avoidance of divestiture (3.2) If, at the end of a taxation year, a private foundation would — but for a transaction or series of transactions entered into by the private foundation or a relevant person in respect of the private foundation (in this subsection referred to as the “holder”) a result of which is that the holder holds, directly or indirectly, an interest (or for civil law, a right), in a corporation other than shares — have a divestment obligation percentage for that taxation year in respect of the private foundation’s holdings of a class of shares of the capital stock of the corporation, and it can reasonably be considered that a purpose of the transaction or series is to avoid that divestment obligation percentage by substituting shares of the class for that interest or right, for the purposes of applying this section, subsection 149.1(1) and section 149.2, (a) each of those interests or rights is deemed to have been converted, immediately after the time it was first held, directly or indirectly by the holder, into that number of shares of that class that would, if those shares were shares of the class that were issued by the corporation, have a fair market value equal to the fair market value of the interest or right at that time; C. 35 Budget and Economic State (b) each such share is deemed to be a share that is issued by the corporation and outstanding and to continue to be held by the holder until such time as the holder no longer holds the interest or right; and (c) each such share is deemed to have a fair market value, at any particular time, equal to the fair market value, at the particular time, of a share of the class issued by the corporation. 57. (1) Paragraph (b) of the definition “qualified investment” in section 204 of the Act is replaced by the following: (b) debt obligations described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3), (2) Subparagraphs (c)(i) and (ii) of the definition “qualified investment” in section 204 of the Act are replaced by the following: (i) a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada, (ii) a corporation the shares of which are listed on a designated stock exchange outside Canada, or (3) Paragraph (d) of the definition “qualified investment” in section 204 of the Act is replaced by the following: (d) securities (other than futures contracts or other derivative instruments in respect of which the holder’s risk of loss may exceed the holder’s cost) that are listed on a designated stock exchange, (4) Subsection (1) applies after 2007. (5) Subsections (2) and (3) apply on and after the day on which this Act is assented to. 58. (1) Subsection 207.1(5) of the Act is replaced by the following: Exécution du budget et de l’ 2007 Tax payable in respect of agreement to acquire shares (5) Where at any time a taxpayer whose taxable income is exempt from tax under Part I makes an agreement (otherwise than as a consequence of the acquisition or writing by it of an option listed on a designated stock exchange) to acquire a share of the capital stock of a corporation (otherwise than from the corporation) at a price that may differ from the fair market value of the share at the time the share may be acquired, the taxpayer shall, in respect of each month during which the taxpayer is a party to the agreement, pay a tax under this Part equal to the total of all amounts each of which is the amount, if any, by which the amount of a dividend paid on the share at a time in the month at which the taxpayer is a party to the agreement exceeds the amount, if any, of the dividend that is received by the taxpayer. (2) Subsection (1) applies on and after the day on which this Act is assented to. 59. (1) Subparagraph 212(1)(b)(vii) of the Act is amended by striking out the word “or” at the end of clause (E), by adding the word “or” at the end of clause (F) and by adding the following after clause (F): (G) in the event that a change to this Act or to a tax treaty has the effect of relieving the non-resident person from liability for tax under this Part in respect of the interest; (2) Paragraph 212(1)(b) of the Act is replaced by the following: (b) interest that (i) is not fully exempt interest, and is paid or payable to a person with whom the payer is not dealing at arm’s length, or (ii) is participating debt interest; (3) Subsection 212(3) of the Act is replaced by the following: Interest — definitions (3) The following definitions apply for the purpose of paragraph (1)(b). C. 35 “fully exempt interest” « intérêts entièrement exonérés » “fully exempt interest” means Budget and Economic State (a) interest that is paid or payable on a bond, debenture, note, mortgage, hypothecary claim or similar debt obligation (i) of, or guaranteed (otherwise than by being insured by the Canada Deposit Insurance Corporation) by, the Government of Canada, (ii) of the government of a province, (iii) of an agent of a province, (iv) of a municipality in Canada or a municipal or public body performing a function of government in Canada, (v) of a corporation, commission or association to which any of paragraphs 149(1)(d) to (d.6) applies, or (vi) of an educational institution or a hospital if repayment of the principal amount of the obligation and payment of the interest is to be made, or is guaranteed, assured or otherwise specifically provided for or secured by the government of a province; (b) interest that is paid or payable on a mortgage, hypothecary claim or similar debt obligation secured by, or on an agreement for sale or similar obligation with respect to, real property situated outside Canada or an interest in any such real property, or to immovables situated outside Canada or a real right in any such immovable, except to the extent that the interest payable on the obligation is deductible in computing the income of the payer under Part I from a business carried on by the payer in Canada or from property other than real or immovable property situated outside Canada; (c) interest that is paid or payable to a prescribed international organization or agency; or (d) an amount paid or payable or credited under a securities lending arrangement that is deemed by subparagraph 260(8)(a)(i) to be a payment made by a borrower to a lender of interest, if Exécution du budget et de l’ (i) the securities lending arrangement was entered into by the borrower in the course of carrying on a business outside Canada, and (ii) the security that is transferred or lent to the borrower under the securities lending arrangement is described in paragraph (b) or (c) of the definition “qualified security” in subsection 260(1) and issued by a nonresident issuer. “participating debt interest” « intérêts sur des créances participatives » “participating debt interest” means interest (other than interest described in any of paragraphs (b) to (d) of the definition “fully exempt interest”) that is paid or payable on an obligation, other than a prescribed obligation, all or any portion of which interest is contingent or dependent on the use of or production from property in Canada or is computed by reference to revenue, profit, cash flow, commodity price or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares of the capital stock of a corporation. (4) Subsection 212(14) of the Act is repealed. (5) Section 212 of the Act is amended by adding the following after subsection (17): Payments to the International Olympic Committee and the International Paralympic Committee (17.1) Notwithstanding subsections (1) and (2), (a) the International Olympic Committee is not taxable under this Part on any amount paid or credited to it, after 2005 and before 2011, in respect of the 2010 Olympic Winter Games, and (b) the International Paralympic Committee is not taxable under this Part on any amount paid or credited to it, after 2005 and before 2011, in respect of the 2010 Paralympic Winter Games. (6) Subsections 212(18) and (19) of the Act are replaced by the following: Undertaking (18) Every person who in a taxation year is a prescribed financial institution or a person resident in Canada who is a registered securities C. 35 Budget and Economic State dealer shall on demand from the Minister, served personally or by registered letter, file within such reasonable time as may be stipulated in the demand, an undertaking in prescribed form relating to the avoidance of payment of tax under this Part. Tax on registered securities dealers (19) Every taxpayer who is a registered securities dealer resident in Canada shall pay a tax under this Part equal to the amount determined by the formula 1/365 × .25 × (A - B) × C where A is the total of all amounts each of which is the amount of money provided before the end of a day to the taxpayer (and not returned or repaid before the end of the day) by or on behalf of a non-resident person as collateral or as consideration for a security that was lent or transferred under a designated securities lending arrangement, B is the total of (a) all amounts each of which is the amount of money provided before the end of the day by or on behalf of the taxpayer (and not returned or repaid before the end of the day) to a non-resident person as collateral or as consideration for a security that is described in paragraph (a) of the definition “fully exempt interest” in subsection (3), or that is an obligation of the government of any country, province, state, municipality or other political subdivision, and that was lent or transferred under a securities lending arrangement, and (b) the greater of (i) 10 times the greatest amount determined, under the laws of the province or provinces in which the taxpayer is a registered securities dealer, to be the capital employed by the taxpayer at the end of the day, and (ii) 20 times the greatest amount of capital required, under the laws of the province or provinces in which the Exécution du budget et de l’ taxpayer is a registered securities dealer, to be maintained by the taxpayer as a margin in respect of securities described in paragraph (a) of the definition “fully exempt interest” in subsection (3), or that is an obligation of the government of any country, province, state, municipality or other political subdivision, at the end of the day, and C is the prescribed rate of interest in effect for the day, and shall remit that amount to the Receiver General on or before the 15th day of the month after the month in which the day occurs. Designated SLA (20) For the purpose of subsection (19), a designated securities lending arrangement is a securities lending arrangement (a) under which (i) the lender is a prescribed financial institution or a registered securities dealer resident in Canada, (ii) the particular security lent or transferred is an obligation described in paragraph (a) of the definition “fully exempt interest” in subsection (3) or an obligation of the government of any country, province, state, municipality or other political subdivision, (iii) the amount of money provided to the lender at any time during the term of the arrangement either as collateral or as consideration for the particular security does not exceed 110% of the fair market value at that time of the particular security; and (b) that was neither intended, nor made as a part of a series of securities lending arrangements, loans or other transactions that was intended, to be in effect for more than 270 days. C. 35 Budget and Economic State (7) Subsection (1) applies to obligations entered into on or after March 19, 2007. (8) Subsections (2) to (4) and (6) apply after 2007. 60. (1) Paragraph 214(8)(a) of the Act is replaced by the following: (a) that is described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3), or on which the interest would have been exempt under subparagraph 212(1)(b)(iii) or (vii) as they applied to the 2007 taxation year; (2) Subsection 214(11) of the Act is repealed. (3) Subsections (1) and (2) apply after 2007. 61. (1) Section 220 of the Act is amended by adding the following after subsection (3.2): Joint election — pension income split (3.201) On application by a taxpayer, the Minister may extend the time for making an election, or grant permission to amend or revoke an election, under section 60.03 if (a) the application is made on or before the day that is three calendar years after the taxpayer’s filing-due date for the taxation year to which the election applies; and (b) the taxpayer is resident in Canada (i) if the taxpayer is deceased at the time of the application, at the time that is immediately before the taxpayer’s death, or (ii) in any other case, at the time of the application. (2) The portion of subsection 220(3.5) of the Act before paragraph (a) is replaced by the following: 2007 Penalty for late filed, amended or revoked elections Exécution du budget et de l’ (3.5) Where, on application by a taxpayer or a partnership, the Minister extends the time for making an election or grants permission to amend or revoke an election (other than an extension or permission under subsection (3.201)), the taxpayer or the partnership, as the case may be, is liable to a penalty equal to the lesser of (3) Subsections (1) and (2) applies to the 2007 and subsequent taxation years. 62. (1) Subsection 221(1) of the Act is amended by adding the following after paragraph (d.1): (d.2) requiring any class of persons to make information available to the public for the purpose of making information returns respecting any class of information required in connection with assessments under this Act; (2) Subsection (1) applies to information in respect of taxation years of taxpayers and fiscal periods of partnerships that end on or after July 4, 2007. 63. The portion of subsection 231.2(1) of the Act before paragraph (a) is replaced by the following: Requirement to provide documents or information 231.2 (1) Notwithstanding any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of this Act (including the collection of any amount payable under this Act by any person), of a comprehensive tax information exchange agreement between Canada and another country or jurisdiction that is in force and has effect or, for greater certainty, of a tax treaty with another country, by notice served personally or by registered or certified mail, require that any person provide, within such reasonable time as stipulated in the notice, 64. (1) Subparagraph 241(4)(e)(xii) of the Act is replaced by the following: C. 35 Budget and Economic State (xii) a provision contained in a tax treaty with another country or in a comprehensive tax information exchange agreement between Canada and another country or jurisdiction that is in force and has effect; (2) Subsection 241(4) of the Act is amended by striking out the word “or” at the end of paragraph (o), by adding the word “or” at the end of paragraph (p) and by adding the following after paragraph (p): (q) provide taxpayer information to an official of the government of a province solely for the use in the management or administration by that government of a program relating to earning supplementation or income support. 65. (1) The definition “NISA Fund No. 2” in subsection 248(1) of the Act is replaced by the following: “NISA Fund No. 2” « second fonds du compte de stabilisation du revenu net » “NISA Fund No. 2” means the portion of a taxpayer’s net income stabilization account (a) that is described in paragraph 8(2)(b) of the Farm Income Protection Act, and (b) that can reasonably be considered to be attributable to a program that allows the funds in the account to accumulate; (2) Subsection 248(1) of the Act is amended by adding the following definitions in alphabetical order: “designated stock exchange” « bourse de valeurs désignée » “designated stock exchange” means a stock exchange, or that part of a stock exchange, for which a designation by the Minister of Finance under section 262 is in effect; “functional currency” « monnaie fonctionnelle » “functional currency” of a taxpayer for a particular taxation year has the meaning assigned by section 261; “recognized stock exchange” « bourse de valeurs reconnue » “recognized stock exchange” means (a) a designated stock exchange, and Exécution du budget et de l’ (b) any other stock exchange, if that other stock exchange is located in Canada or in a country that is a member of the Organisation for Economic Co-operation and Development and that has a tax treaty with Canada; (3) Subsection 248(29) of the Act is repealed. (4) Subsection (1) applies to the 2008 and subsequent taxation years. (5) The definitions “designated stock exchange” and “recognized stock exchange” in subsection 248(1) of the Act, as enacted by subsection (2), and subsection (3) apply on and after the day on which this Act is assented to. (6) The definition “functional currency” in subsection 248(1) of the Act, as enacted by subsection (2), applies in respect of taxation years that begin on or after the day on which this Act is assented to. 66. (1) Paragraph (a) of the definition “qualified security” in subsection 260(1) of the Act is replaced by the following: (a) a share of a class of the capital stock of a corporation that is listed on a stock exchange or of a class of the capital stock of a corporation that is a public corporation by reason of the designation of the class by the corporation in an election made under subparagraph (b)(i) of the definition “public corporation” in subsection 89(1) or by the Minister in a notice to the corporation under subparagraph (b)(ii) of that definition, (2) Paragraph 260(8)(a) of the Act is amended by adding the word “and” at the end of subparagraph (i) and by replacing subparagraphs (ii) and (iii) with the following: (ii) the security is deemed to be a security described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3) if the security is described in paragraph (c) of the definition “qualified security” in subsection (1), and C. 35 Budget and Economic State (3) Section 260 of the Act is amended by adding the following after subsection (9): Non-arm’s length compensation payment (10) For the purpose of Part XIII, where the lender under a securities lending arrangement is not dealing at arm’s length with either the borrower under the arrangement or the issuer of the security that is transferred or lent under the arrangement, or both, and subsection (8) deems an amount to be a payment of interest by a person to the lender in respect of that security, the lender is deemed, in respect of that payment, not to be dealing at arm’s length with that person. (4) Subsection (1) applies on and after the day on which this Act is assented to. (5) Subsections (2) and (3) apply after 2007. 67. (1) The Act is amended by adding the following after section 260: Definitions “Canadian currency year” « année de déclaration en monnaie canadienne » “Canadian tax results” « résultats fiscaux canadiens » 261. (1) The definitions in this subsection apply in this section. “Canadian currency year” of a taxpayer means a taxation year of the taxpayer in respect of which subsection (4) did not apply to the taxpayer. “Canadian tax results” of a taxpayer for a particular taxation year of the taxpayer means (a) the amount of the income of the taxpayer for the particular taxation year; (b) the amount of the taxable income of the taxpayer for the particular taxation year; (c) the amount (other than an amount payable on behalf of another person under subsection 153(1) or section 215) of tax or other amount payable under this Act by the taxpayer in respect of the particular taxation year; (d) the amount (other than an amount refundable on behalf of another person in respect of amounts payable on behalf of that person under subsection 153(1) or section Exécution du budget et de l’ 215) of tax or other amount refundable under this Act to the taxpayer in respect of the particular taxation year; and (e) any amount that is relevant in determining the amounts described in respect of the taxpayer under paragraphs (a) to (d). “consolidated financial statements” « états financiers consolidés » “currency exchange rate” « taux de change monétaire » “consolidated financial statements” of a taxpayer for a taxation year means the financial statements of the taxpayer that are prepared in accordance with generally accepted accounting principles that are applicable to that taxation year. “currency exchange rate” on a particular day means, in respect of a conversion of an amount determined in a particular currency into an amount determined in another currency, the average, for the 12 month period ending on the particular day, (a) where the particular currency is Canadian currency, of the rate of exchange (calculated by reference to the rate of exchange quoted by the Bank of Canada at noon on each business day in the period) for the exchange of the Canadian dollar for a unit of the other currency or such rate or rates of exchange acceptable to the Minister; (b) where the other currency is Canadian currency, of the rate of exchange (calculated by reference to the rate of exchange quoted by the Bank of Canada at noon on each business day in the period) for the exchange of a unit of the particular currency for the Canadian dollar or such rate or rates of exchange acceptable to the Minister; or (c) where neither the particular currency nor the other currency is Canadian currency, of the rate of exchange (calculated by reference to the rates of exchange quoted by the Bank of Canada at noon on each business day in the period for the exchange of the Canadian dollar for a unit of each of those currencies) for the exchange of a unit of the particular currency for a unit of the other currency or such rate or rates of exchange acceptable to the Minister. 164 “functional currency” « monnaie fonctionnelle » C. 35 Budget and Economic State “functional currency” of a taxpayer for a particular taxation year of the taxpayer means the currency of a country other than Canada if that currency is (a) a qualifying currency; (b) the currency that is, more often than any other currency, used in the conduct of the taxpayer’s principal business activities in the particular taxation year; and (c) the currency in which the financial results of the taxpayer for the particular taxation year are computed in the taxpayer’s consolidated financial statements and legal-entity financial statements for the particular taxation year. “functional currency year” « année de déclaration en monnaie fonctionnelle » “generally accepted accounting principles” « principes comptables généralement reconnus » “initial functional currency year” « année initiale de déclaration en monnaie fonctionnelle » “initial reversionary year” « année initiale de déclaration en monnaie canadienne » “functional currency year” of a taxpayer means a taxation year of the taxpayer in respect of which subsection (4) applies to the taxpayer. “generally accepted accounting principles” means the accounting principles established or recommended by the Accounting Standards Board of Canada or such other accounting principles as are determined to be acceptable by the Minister. “initial functional currency year” of a taxpayer means a functional currency year of the taxpayer if the particular taxation year of the taxpayer ending immediately before the beginning of that functional currency year of the taxpayer was a Canadian currency year of the taxpayer. “initial reversionary year” of a taxpayer means the first taxation year of the taxpayer that begins immediately after the last functional currency year of the taxpayer. “last Canadian currency year” « dernière année de déclaration en monnaie canadienne » “last Canadian currency year” of a taxpayer means the last taxation year of the taxpayer that ends before the beginning of the initial functional currency year of the taxpayer. “last functional currency year” « dernière année de déclaration en monnaie fonctionnelle » “last functional currency year” of a taxpayer means a functional currency year of the taxpayer if the particular taxation year of the Exécution du budget et de l’ taxpayer beginning immediately after the end of that functional currency year is a Canadian currency year of the taxpayer. “legal-entity financial statements” « états financiers individuels » “qualifying currency” « monnaie admissible » “legal-entity financial statements” of a taxpayer for a taxation year means the financial statements of the taxpayer that would be prepared for that taxation year in accordance with generally accepted accounting principles that are applicable to that taxation year if those generally accepted accounting principles did not require consolidation. “qualifying currency” of a taxpayer for a taxation year means each of (a) the currency of the United States of America; (b) the currency of the European Monetary Union; (c) the currency of the United Kingdom; and (d) a prescribed currency. “reversionary exchange rate” « taux de change canadien » “tax credit” « crédit d’impôt » “transitional exchange rate” « taux de change transitoire » Canadian currency requirement “reversionary exchange rate” of a taxpayer for a functional currency year of the taxpayer means the average, for the 12-month period ending on the last day of the functional currency year of the taxpayer, of the rate of exchange (quoted by the Bank of Canada at noon on each business day in the period) for the exchange of a unit of the functional currency of the taxpayer for the functional currency year for the Canadian dollar. “tax credit” means an amount deductible in computing a taxpayer’s tax payable, or deemed to have been paid on account of a taxpayer’s tax payable, under any Part of this Act for a taxation year. “transitional exchange rate” of a taxpayer means the average, for the 12-month period ending on the last day of the last Canadian currency year of the taxpayer, of the rate of exchange (calculated by reference to the rate of exchange quoted by the Bank of Canada at noon on each business day in the period) for the exchange of the Canadian dollar for a unit of the functional currency of the taxpayer for the initial functional currency year of the taxpayer. (2) Subject to subsections (3) to (10), C. 35 Budget and Economic State (a) the Canadian tax results of a taxpayer for a particular taxation year are to be determined using Canadian currency; and (b) subject to subsection 79(7), paragraphs 80(2)(k) and 142.7(8)(b), if a particular amount that is relevant in computing the taxpayer’s Canadian tax results for the particular taxation year is an amount expressed in a currency other than Canadian currency, that amount is to be converted to an amount expressed in Canadian currency using the rate of exchange quoted by the Bank of Canada at noon on the day on which that amount first arose for the exchange of a unit of that other currency for a unit of Canadian currency or such other rate of exchange as is acceptable to the Minister. Application of subsection (4) (3) Subsection (4) applies to a taxpayer in respect of a particular taxation year of the taxpayer if (a) the taxpayer is, throughout the particular taxation year, a corporation (other than an investment corporation, a mortgage investment corporation or a mutual fund corporation) resident in Canada; (b) the taxpayer has elected that subsection (4) apply to the taxpayer in respect of the particular taxation year, or a preceding taxation year, and each subsequent taxation year of the taxpayer and has filed that election with the Minister in prescribed form and manner on or before the taxpayer’s filing due date (i) for the taxation year immediately preceding the first taxation year in respect of which the election was made, or (ii) where there was not a taxation year immediately preceding the first taxation year in respect of which the election was made, for the first taxation year in respect of which the election was made; (c) there is a functional currency of the taxpayer for the particular taxation year; (d) where the taxpayer’s taxation year immediately preceding the particular taxation year was a functional currency year of the taxpayer, the functional currency of the Exécution du budget et de l’ taxpayer for that preceding taxation year is the same as the functional currency of the taxpayer for the particular taxation year; and (e) where the taxpayer’s taxation year immediately preceding the particular taxation year was a Canadian currency year of the taxpayer, no preceding taxation year of the taxpayer was a functional currency year of the taxpayer. Functional currency reporting (4) If, because of subsection (3), this subsection applies to a taxpayer for a particular taxation year of the taxpayer, (a) the taxpayer’s Canadian tax results for the particular taxation year are to be determined using the taxpayer’s functional currency for the particular taxation year; (b) each reference in the Act or the regulations to a particular amount expressed in Canadian dollars is to be read as a reference to a particular amount expressed in the taxpayer’s functional currency for the particular taxation year determined by applying the currency exchange rate in respect of the conversion of Canadian currency into that functional currency as of the first day of the particular taxation year; (c) subject to subsection 79(7), paragraphs 80(2)(k) and 142.7(8)(b), if a particular amount that is relevant in computing the taxpayer’s Canadian tax results for the particular taxation year is an amount expressed in a currency other than the taxpayer’s functional currency for the particular taxation year, that amount is to be converted to an amount expressed in the taxpayer’s functional currency for the particular taxation year by using the rates of exchange quoted by the Bank of Canada at noon on the day that the particular amount first arose for the exchange of the Canadian dollar for a unit of each of those currencies or such other rate of exchange as is acceptable to the Minister; (d) each reference in subsection 79(7), paragraph 80(2)(k) and subsections 80.01(11) and 80.1(8) to “Canadian currency” is to be read as a reference to “the taxpayer’s functional currency”; C. 35 Budget and Economic State (e) the reference in subsection 39(2) to “the value of the currency or currencies of one or more countries other than Canada relative to Canadian currency, a taxpayer has made a gain or sustained a loss in a taxation year” is to be read as reference to “the value of the currency or currencies of one or more countries (other than the taxpayer’s functional currency for the taxation year) relative to a taxpayer’s functional currency for a taxation year, the taxpayer has made a gain or sustained a loss in the taxation year” and the references in that subsection to “currency of a country other than Canada” shall be read as references to “currency other than the taxpayer’s functional currency for the taxation year”; (f) the definition “foreign currency” in subsection 248(1) is, in respect of the taxpayer, to be, at any time in the particular taxation year, read as: “foreign currency” in respect of a taxpayer, at any time in a particular taxation year, means a currency other than the taxpayer’s functional currency for the particular taxation year; (g) where a taxation year of a foreign affiliate of the taxpayer ends in the particular taxation year of the taxpayer, the references in section 95 and in regulations made for the purposes of that section (other than subsection 5907(6) of the Regulations) to “Canadian currency” shall be read, in respect of the foreign affiliate, as a reference to “the taxpayer’s functional currency for the particular taxation year ”. Converting Canadian currency amounts (5) In applying this Act to a taxpayer for a particular functional currency year of the taxpayer (a) subject to subparagraph (10)(b)(iii), in determining the amount (expressed in the taxpayer’s functional currency for the particular functional currency year) that may be Exécution du budget et de l’ deducted, or relevant in determining the amount that may be deducted, under subsection 37(1) or 66(4), section 110.1 or 111 or subsection 126(2), 127(5), 129(1), 181.1(4) or 190.1(3) in the particular functional currency year, each amount (determined in Canadian currency) that is relevant to the determination and that was determined for a taxation year of the taxpayer that preceded the initial functional currency year of the taxpayer, is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (b) in determining, at any time in the particular functional currency year, the cost (expressed in the taxpayer’s functional currency for the particular functional currency year) to the taxpayer of a property that was acquired by the taxpayer before the beginning of the taxpayer’s initial functional currency year, the cost (determined in Canadian currency) to the taxpayer of the property at the end of the last Canadian currency year of the taxpayer is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (c) in determining, at any time in the particular functional currency year, the adjusted cost base (expressed in the taxpayer’s functional currency for the particular functional currency year) to the taxpayer of a capital property that was acquired by the taxpayer before the beginning of the taxpayer’s initial functional currency year, each amount (determined in Canadian currency) that was required by section 53 to be added or deducted in computing, at any time before the beginning of the initial functional currency year of the taxpayer, the adjusted cost base of the property to the taxpayer is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (d) in determining, at any time in the particular functional currency year, the amount (expressed in the taxpayer’s functional currency for the particular functional C. 35 Budget and Economic State currency year) of the taxpayer’s undepreciated capital cost of depreciable property of a prescribed class, cumulative eligible capital in respect of a business, cumulative Canadian exploration expense (within the meaning assigned by subsection 66.1(6)), cumulative Canadian development expense (within the meaning assigned by subsection 66.2(5)), cumulative foreign resource expense in respect of a country other than Canada (within the meaning assigned by subsection 66.21(1)) and cumulative Canadian oil and gas property expense (within the meaning assigned by subsection 66.4(5)), (each of which is referred to in this paragraph as a “pool amount”) each amount (determined in Canadian currency) that was added to or deducted from a particular pool amount of the taxpayer in respect of a taxation year of the taxpayer preceding the initial functional currency year of the taxpayer is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (e) in determining any amount (expressed in the taxpayer’s functional currency for the particular functional currency year) that has been deducted or claimed as a reserve in computing the income of the taxpayer for its last Canadian currency year, that amount (determined in Canadian currency) deducted or claimed as a reserve is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (f) in determining the amount (expressed in the taxpayer’s functional currency for the particular functional currency year) of any outlay or expense referred to in subsection 18(9) that was made or incurred by the taxpayer and the amount that was deducted in respect of that outlay or expense in respect of a taxation year preceding the initial functional currency year of the taxpayer, such amounts of outlay or expense or deductions (determined in Canadian currency for those years) are to be converted to the taxpayer’s func2007 Exécution du budget et de l’ tional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (g) in determining, at any time in the particular functional currency year, the amount (expressed in the taxpayer’s functional currency for the particular functional currency year) of the taxpayer’s paid-up capital in respect of any class of shares of its capital stock, any amount (determined in Canadian currency) added or deducted in computing the taxpayer’s paid-up capital in respect of the class in a taxation year preceding the initial functional currency year of the taxpayer is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; (h) where the taxpayer issued a debt obligation in a taxation year of the taxpayer preceding the initial functional currency year of the taxpayer, in determining the amount (expressed in the taxpayer’s functional currency for the particular functional currency year) for which the obligation was issued, the principal amount (expressed in the taxpayer’s functional currency for the particular functional currency year) of the obligation, any amount (expressed in the taxpayer’s functional currency for the particular functional currency year) paid in satisfaction of the principal amount of the obligation in a taxation year of the taxpayer preceding the initial functional currency year of the taxpayer, and the amount (determined in the taxpayer’s functional currency for the particular functional currency year) of any gain or loss attributable to the fluctuation in the values of currencies, (i) where the obligation was issued in the taxpayer’s functional currency for the particular functional currency year, the amount (determined in the taxpayer’s functional currency for the particular functional currency year) for which the obligation was issued, the principal amount (determined in the taxpayer’s functional currency for the particular functional currency year) of the obligation and the C. 35 Budget and Economic State amounts (determined in the taxpayer’s functional currency for the particular functional currency year) paid in satisfaction of the principal amount of the obligation, in a taxation year of the taxpayer preceding the initial functional currency year of the taxpayer are those amounts determined in those years in the taxpayer’s functional currency for the particular functional currency year, (ii) where the obligation was issued in Canadian currency, the amount for which the obligation was issued (determined in Canadian currency), the principal amount (determined in Canadian currency) of the obligation and the amounts (determined in Canadian currency) paid in satisfaction of the principal amount of the obligation, in a taxation year preceding the initial functional currency year are to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer, and (iii) where the obligation was issued in a currency (referred to in this subparagraph as the “third currency”) other than Canadian currency or the taxpayer’s functional currency for the particular functional currency year, the amount (determined in the third currency) for which the obligation was issued, the principal amount (determined in the third currency) of the obligation and the amounts (determined in the third currency) paid in satisfaction of the principal amount of the obligation in a taxation year of the taxpayer preceding the initial functional currency year of the taxpayer, are to be converted to the taxpayer’s functional currency for the particular functional currency year using the currency exchange rate in respect of a conversion of an amount determined in the third currency into an amount determined in the taxpayer’s functional currency for the particular functional currency year on the last day of the last Canadian currency year of the taxpayer; Exécution du budget et de l’ (i) in determining the amount (expressed in the taxpayer’s functional currency for the particular functional currency year) of tax payable under Part I for a Canadian currency year for the purpose of determining the taxpayer’s first instalment base or second instalment base for the taxpayer’s initial functional currency year, the amount (determined in Canadian currency) of tax payable is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer; and (j) any amount (expressed in Canadian currency), other than an amount referred to in paragraphs (a) to (i), determined under the provisions of this Act in or in respect of a taxation year preceding the initial functional currency year of the taxpayer that is relevant in determining the Canadian tax results (expressed in the taxpayer’s functional currency for the particular functional currency year) of the taxpayer for the particular functional currency year is to be converted to the taxpayer’s functional currency for the particular functional currency year using the transitional exchange rate of the taxpayer. Deferred amounts relating to debt (6) In applying this Act to a taxpayer for a particular functional currency year of the taxpayer (a) where, at any time in the particular functional currency year, the taxpayer has made a particular payment (expressed in the taxpayer’s functional currency for the particular functional currency year) on account of the principal amount (expressed in the taxpayer’s functional currency for the particular functional currency year) of a debt obligation that was issued by the taxpayer in a Canadian currency year of the taxpayer that ended before the beginning of the initial functional currency year of the taxpayer (i) the taxpayer is deemed to have a capital gain under paragraph 39(2)(a) or income, as the case may be, attributable to the fluctuation in the values of currencies in C. 35 Budget and Economic State respect of the particular payment for the particular functional currency year equal to the amount determined by the formula A × B/C where A is the amount determined by the formula D×E where D is the amount (expressed in Canadian currency), if any, that would have been determined to be the taxpayer’s capital gain under paragraph 39(2)(a) or income, as the case may be, if the principal amount of the debt obligation outstanding (determined in Canadian currency), immediately before the end of the last Canadian currency year of the taxpayer, had been settled by a payment by the taxpayer to the holder of the obligation of an amount equal to that outstanding principal amount at that time, and E is the transitional exchange rate of the taxpayer, B is the amount of the particular payment (expressed in the taxpayer’s functional currency for the particular functional currency year), and C is the principal amount of the debt obligation outstanding (determined in the taxpayer’s functional currency for the particular functional currency year) at the beginning of the initial functional currency year of the taxpayer, (ii) the taxpayer is deemed to have a capital loss under paragraph 39(2)(b) or a loss, as the case may be, attributable to the fluctuation in the values of currencies in respect of the particular payment for the particular functional currency year equal to the amount determined by the formula F × G/H Exécution du budget et de l’ 2007 where F is the amount determined by the formula I×J where I is the amount (expressed in Canadian currency), if any, that would have been determined to be the taxpayer’s capital loss under paragraph 39(2)(b) or loss, as the case may be, if the principal amount of the debt obligation outstanding (determined in Canadian currency), immediately before the end of the last Canadian currency year of the taxpayer, had been settled by a payment by the taxpayer to the holder of the obligation of an amount equal to that outstanding principal amount at that time, and J is the transitional exchange rate of the taxpayer, G is the amount of the particular payment (expressed in the taxpayer’s functional currency for the particular functional currency year), and H is the principal amount of the debt obligation outstanding (determined in the taxpayer’s functional currency for the particular functional currency year) at the beginning of the initial functional currency year of the taxpayer, and (iii) where a debt obligation is denominated in a currency other than the taxpayer’s functional currency for the particular functional currency year, any amount determined under element B in the formula in subparagraph (i) or element G in the formula in subparagraph (ii) is to be determined with reference to the relative value of that currency and the taxpayer’s functional currency for the particular functional currency year at the beginning of the initial functional currency year of the taxpayer, and C. 35 Budget and Economic State (b) notwithstanding paragraph 80(2)(k), where an obligation of the taxpayer was issued in a taxation year of the taxpayer preceding the initial functional currency year of the taxpayer in a currency other than the taxpayer’s functional currency for the particular functional currency year, a forgiven amount arising at any time in the particular functional currency year in respect of the obligation is to be determined by reference to the currency exchange rate on the last day of the taxpayer’s last Canadian currency year in respect of a conversion of an amount determined in the other currency into an amount determined in the taxpayer’s functional currency for the particular functional currency year. Amounts payable or refundable in respect of a functional currency year (7) Notwithstanding subsection (4), (a) if, at any particular time, an amount (determined in the taxpayer’s functional currency for the particular functional currency year) first becomes payable under this Act by a taxpayer to the Receiver General in respect of a particular functional currency year of the taxpayer, (i) that amount (determined in the taxpayer’s functional currency for the particular functional currency year) is to be converted to Canadian currency using the currency exchange rate on the earlier of the day the amount is so paid and the day that includes the particular time in respect of a conversion of an amount determined in the taxpayer’s functional currency for the particular functional currency year into an amount determined in Canadian currency, and (ii) the amount so determined in Canadian currency under subparagraph (i) is to be paid to the Receiver General in Canadian currency; and (b) if, at any particular time, an amount (determined in a taxpayer’s functional currency for the particular functional currency year) first becomes payable under this Act to the taxpayer by the Minister, for a particular functional currency year of the taxpayer, or is Exécution du budget et de l’ deemed to be paid on account of an amount payable by the taxpayer under the Act for that particular functional currency year, (i) that amount (determined in the taxpayer’s functional currency for the particular functional currency year) is to be converted to Canadian currency using the currency exchange rate on the day that includes the particular time in respect of the conversion of an amount determined in the taxpayer’s functional currency for the particular functional currency year into an amount determined in Canadian currency, and (ii) the amount so determined in Canadian currency under subparagraph (i) is to be paid to the taxpayer by the Minister or is deemed to have been paid to the taxpayer by the Minister, as the case may be, in Canadian currency. Application of subsection (9) (8) Subsection (9) applies to a taxpayer for a particular Canadian currency year that begins after the last functional currency year of the taxpayer. Converting functional currency amounts (9) Where, because of subsection (8), this subsection applies to a taxpayer for a particular Canadian currency year of the taxpayer, in applying this Act to the taxpayer for that particular Canadian currency year, the following rules apply: (a) subject to subparagraph (10)(a)(iii), in determining the amount (expressed in Canadian currency) that may be deducted, or relevant in determining the amount that may be deducted, under subsection 37(1) or 66(4), section 110.1 or 111 or subsection 126(2), 127(5), 129(1), 181.1(4) or 190.1(3) in the particular Canadian currency year, (i) each amount (determined in the taxpayer’s functional currency for the functional currency year of the taxpayer) that is relevant to the determination and that was first required to be determined in a functional currency year of the taxpayer that preceded the particular Canadian currency year, is to be converted to C. 35 Budget and Economic State Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) each amount (determined in Canadian currency) that is relevant to the determination and that was first required to be determined in a Canadian currency year of the taxpayer preceding the particular Canadian currency year is the amount that was so determined in Canadian currency in that Canadian currency year; (b) in determining, at any time in the particular Canadian currency year, the cost (expressed in Canadian currency) to the taxpayer of a property, (i) where the property was acquired by the taxpayer in a functional currency year of the taxpayer preceding the particular Canadian currency year, the cost (determined in the taxpayer’s functional currency for the functional currency year) to the taxpayer of the property is to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) where the property was acquired by the taxpayer in a Canadian currency year of the taxpayer preceding the particular Canadian currency year, the cost (determined in Canadian currency) to the taxpayer of the property is the cost so determined in Canadian currency in that Canadian currency year; (c) in determining, at any time in the particular Canadian currency year, the adjusted cost base (expressed in Canadian currency) to the taxpayer of a capital property (i) each amount (determined in the taxpayer’s functional currency for the functional currency year) that is required by section 53 to be added or deducted in computing the adjusted cost base of the property to the taxpayer and was first required by that section to be added or deducted at any time in a functional currency year of the taxpayer preceding the particular Canadian currency year is to Exécution du budget et de l’ be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) each amount (determined in Canadian currency) that is required by section 53 to be added or deducted in computing the adjusted cost base of the property to the taxpayer and was first required by that section to be added or deducted at any time in a Canadian currency year of the taxpayer preceding the particular Canadian currency year is the amount that was so determined in Canadian currency in that Canadian currency year; (d) in determining, at any time in the particular Canadian currency year, the amount (expressed in Canadian currency) of the taxpayer’s undepreciated capital cost of depreciable property of a prescribed class, cumulative eligible capital in respect of a business, cumulative Canadian exploration expense (within the meaning assigned by subsection 66.1(6)), cumulative Canadian development expense (within the meaning assigned by subsection 66.2(5)), cumulative foreign resource expense in respect of a country other than Canada (within the meaning assigned by subsection 66.21(1)) and cumulative Canadian oil and gas property expense (within the meaning assigned by subsection 66.4(5)), (each of which is referred to in this paragraph as a “pool amount”), (i) each amount (determined in the taxpayer’s functional currency for the functional currency year) that is required to be added to or deducted from a particular pool amount of the taxpayer and was first required to be added or deducted in respect of a functional currency year of the taxpayer preceding the particular Canadian currency year is to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and C. 35 Budget and Economic State (ii) each amount (determined in Canadian currency) that is required to be added to or deducted from a particular pool amount of the taxpayer and was first required to be added or deducted in respect of a Canadian currency year of the taxpayer preceding the particular Canadian currency year is the amount that was so determined in Canadian currency in that Canadian currency year; (e) in determining any amount (expressed in Canadian currency) that has been deducted or claimed as a reserve in computing the income of the taxpayer for its last functional currency year preceding the particular Canadian currency year, that amount (determined in the taxpayer’s functional currency for the last functional currency year) deducted or claimed as a reserve for that last functional currency year is to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that last functional currency year; (f) in determining the amount (expressed in Canadian currency) of any outlay or expense referred to in subsection 18(9) that was made or incurred by the taxpayer and the amount that was deducted by the taxpayer in respect of that outlay or expense in respect of a taxation year of the taxpayer preceding the particular Canadian currency year, (i) such of those amounts (determined in the taxpayer’s functional currency for the functional currency year) that were first made or incurred or deducted by the taxpayer in or in respect of a functional currency year of the taxpayer preceding the particular Canadian currency year are to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) such of those amounts (determined in Canadian currency) that were first made or incurred or deducted by the taxpayer in or in respect of a Canadian currency year of the taxpayer preceding the particular Ca2007 Exécution du budget et de l’ nadian currency year are the amounts that were so determined in Canadian currency in that Canadian currency year; (g) in determining, at any time in the particular Canadian currency year, the amount (expressed in Canadian currency) of the taxpayer’s paid-up capital in respect of any class of shares of its capital stock, (i) any amount (determined in the taxpayer’s functional currency for the functional currency year) that was first added or deducted in computing the taxpayer’s paidup capital in respect of the class in a functional currency year of the taxpayer preceding the particular Canadian currency year is to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) any amount (determined in Canadian currency) that was first added or deducted in computing the taxpayer’s paid-up capital in respect of the class in a Canadian currency year of the taxpayer preceding the particular Canadian currency year is the amount that was so determined in Canadian currency in that Canadian currency year; (h) where an obligation was issued in a taxation year of the taxpayer preceding the initial reversionary year of the taxpayer, in determining, at any time in the particular Canadian currency year, the amount (expressed in Canadian currency) for which an obligation was issued, the principal amount (expressed in Canadian currency) of the obligation, the amounts (expressed in Canadian currency) paid in satisfaction of the principal amount of the obligation, and the amount (determined in Canadian currency), if any, of any gain or loss attributable to the fluctuation in the value of the Canadian currency relative to the value of the currency in which the obligation was issued, (i) subject to paragraph (i), where the obligation was issued in a currency other than Canadian currency, C. 35 Budget and Economic State (A) the amount (determined in the currency in which the obligation was issued) for which the obligation was issued and the principal amount (determined in the currency in which the obligation was issued) of the obligation are (I) where the taxation year of the taxpayer in which the obligation was issued was a Canadian currency year of the taxpayer, the amounts (determined in Canadian currency) that were so determined in Canadian currency in that Canadian currency year, or (II) where the taxation year of the taxpayer in which the obligation was issued was a functional currency year of the taxpayer, the amounts determined by converting those amounts (determined in the taxpayer’s functional currency for the functional currency year) to Canadian currency by using the reversionary exchange rate of the taxpayer for that functional currency year, and (B) the amounts (determined in the currency in which the obligation was issued) paid at any time in a taxation year of the taxpayer preceding the initial reversionary year of the taxpayer in satisfaction of the principal amount of the obligation are (I) where the taxation year of the taxpayer in which an amount was paid was a Canadian currency year of the taxpayer, the amount (determined in Canadian currency) that was so determined in Canadian currency in that Canadian currency year, or (II) where the taxation year of the taxpayer in which an amount was paid was a functional currency year of the taxpayer, the amount determined by converting that amount (determined in the taxpayer’s functional currency for the functional currency year) to Ca2007 Exécution du budget et de l’ nadian currency by using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) where the obligation was issued in Canadian currency, the amount (determined in Canadian currency) for which the obligation was issued, the principal amount (determined in Canadian currency) of the obligation and the amounts (determined in Canadian currency) paid, in a taxation year of the taxpayer preceding the initial reversionary year of the taxpayer, in satisfaction of the principal amount of the obligation, are the amounts so determined in Canadian currency in those preceding years; (i) where an obligation was issued in a currency other than Canadian currency in a taxation year of the taxpayer preceding the initial reversionary year of the taxpayer, in determining, in respect of subsection 79(7) or paragraph 80(2)(k) or 142.7(8)(b), the amount (expressed in Canadian currency) for which the obligation was issued, the principal amount (determined in Canadian currency) of the obligation, and the amounts (determined in Canadian currency) paid in satisfaction of the principal amount of the obligation, at any time in the particular Canadian currency year, those amounts are to be determined as if subsections (1) to (7) had not applied to the taxpayer for any preceding taxation year; (j) where the particular Canadian currency year is the initial reversionary year of the taxpayer, for the purpose of determining the taxpayer’s first instalment base or second instalment base in the particular Canadian currency year, the amount (determined in the taxpayer’s functional currency for the functional currency year) of tax payable by the taxpayer under Part I for the last functional currency year of the taxpayer is to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that last functional currency year; and C. 35 Budget and Economic State (k) in determining any amount (determined in Canadian currency and referred to in this paragraph as the “specified amount”), at any time in the particular Canadian currency year, other than an amount referred to in paragraphs (a) to (j), that is relevant in determining the Canadian tax results of the taxpayer for the particular Canadian currency year (i) any amount (determined in the taxpayer’s functional currency for the functional currency year) that is relevant in determining the specified amount and was first determined in or in respect of a functional currency year of the taxpayer preceding the particular Canadian currency year, is to be converted to Canadian currency using the reversionary exchange rate of the taxpayer for that functional currency year, and (ii) any amount (determined in Canadian currency) that is relevant in determining the specified amount and was first determined in or in respect of a Canadian currency year of the taxpayer preceding the particular Canadian currency year is the amount that was so determined in Canadian currency in that Canadian currency year. Functional currency and Canadian currency amounts carried back (10) In determining an amount that a taxpayer may claim under section 111 or subsection 126(2), 127(5), 181.1(4) or 190.1(3), for a particular taxation year of the taxpayer, the following rules apply: (a) if the particular taxation year is a Canadian currency year of the taxpayer, the amount that may be claimed (determined in Canadian currency) is to be determined, (i) by converting each amount (determined in the taxpayer’s functional currency for the particular functional currency year) of a loss incurred, tax credit arising and ex2007 Exécution du budget et de l’ penditure made in or in respect of a particular functional currency year of the taxpayer that ends after the particular taxation year to Canadian currency using the currency exchange rate in respect of the conversion of an amount determined in the taxpayer’s functional currency for the particular functional currency year into an amount determined in Canadian currency on the last day of that particular functional currency year, (ii) as if each amount (determined in Canadian currency) of a loss incurred, tax credit arising, expenditure made and deduction claimed in or in respect of a Canadian currency year of the taxpayer were the amount of that loss incurred, tax credit arising, expenditure made and deduction claimed in Canadian currency in or in respect of that Canadian currency year of the taxpayer, and (iii) by converting each amount (determined in the taxpayer’s functional currency for the particular functional currency year) claimed in or in respect of a particular functional currency year of the taxpayer preceding the initial reversionary year of the taxpayer (in respect of an amount of loss incurred, tax credit arising or expenditure made by a taxpayer in or in respect of a Canadian currency year) to Canadian currency using the currency exchange rate on the last day of the Canadian currency year of the taxpayer in or in respect of which the amount claimed arose in respect of the conversion of an amount determined in the taxpayer’s functional currency for the particular functional currency year to an amount determined in Canadian currency; and (b) if the particular taxation year is a functional currency year of the taxpayer, the amount that may be claimed (determined in the taxpayer’s functional currency for the particular taxation year) is to be determined, (i) by converting each amount (determined in Canadian currency) of a loss incurred, tax credit arising and expenditure made in C. 35 Budget and Economic State or in respect of a particular Canadian currency year of the taxpayer that ends after the particular taxation year to the taxpayer’s functional currency for the particular taxation year using the currency exchange rate in respect of the conversion of an amount determined in Canadian currency into an amount determined in the taxpayer’s functional currency for the particular taxation year on the last day of that particular Canadian currency year, (ii) as if each amount (determined in the taxpayer’s functional currency for the particular taxation year) of a loss incurred, tax credit arising, expenditure made and deduction claimed in or in respect of a functional currency year of the taxpayer were the amount of that loss incurred, tax credit arising, expenditure made and deduction claimed in the taxpayer’s functional currency for the particular taxation year, and (iii) by converting each amount (determined in Canadian currency) claimed in or in respect of a particular Canadian currency year of the taxpayer preceding the initial functional currency year of the taxpayer (in respect of an amount of loss incurred, tax credit arising or expenditure made by a taxpayer in or in respect of a functional currency year of the taxpayer) to the taxpayer’s functional currency for the particular taxation year using the currency exchange rate on the last day of the functional currency year of the taxpayer in or in respect of which the amount claimed arose in respect of the conversion of an amount determined in Canadian currency to an amount determined in the taxpayer’s functional currency for the particular taxation year. Exécution du budget et de l’ Subsection 88(1) wind-ups — effect on subsidiary (11) Subsection (12) applies to a corporation (referred to in this subsection and subsection (12) as the “subsidiary”) that has been wound up into another corporation (referred to in this subsection as the “parent”) if (a) subsection 88(1) applied to the subsidiary and the parent in respect of the winding-up of the subsidiary; (b) the taxation year of the subsidiary (referred to in this subsection and subsection (12) as the “distribution year of the subsidiary”) in which any portion of a property (such portion of the property referred to in this subsection as the “distributed property”) of the subsidiary was distributed to the parent, or any portion of an obligation (such portion of the obligation referred to in this subsection as the “assumed obligation”) of the subsidiary was assumed by the parent, on the winding-up of the subsidiary would, were this section read without reference to this subsection, be a functional currency year of the subsidiary; and (c) either (i) where the taxation year of the parent (referred to in this paragraph as the “acquisition year of the parent”) in which the subsidiary distributed the distributed property to the parent, or the assumed obligation of the subsidiary was assumed by the parent, on the winding-up of the subsidiary was a functional currency year of the parent, the functional currency for the acquisition year of the parent was not the functional currency of the subsidiary for the distribution year of the subsidiary, or (ii) the acquisition year of the parent was not a functional currency year of the parent. Taxation year of subsidiary (12) Where, because of subsection (11), this subsection applies to the subsidiary, for the purposes of this section C. 35 Budget and Economic State (a) the last taxation year of the subsidiary that ends before the beginning of the distribution year of the subsidiary is deemed to be the last functional currency year of the subsidiary; and (b) subsection (4) is deemed not to apply to the subsidiary for each taxation year of the subsidiary commencing after the end of the last functional currency year of the subsidiary described in paragraph (a). Amalgamations — effect on predecessor corporations (13) Subsection (14) applies to a corporation (referred to in this subsection and subsection (14) as the “specified predecessor”) that has merged with one or more other corporations to form one corporate entity (referred to in this subsection as the “new corporation”) if (a) the merger was an amalgamation (within the meaning assigned by subsection 87(1)); (b) the taxation year of the specified predecessor (referred to in this subsection and subsection (14) as the “last taxation year of the specified predecessor”) that ended immediately before the amalgamation would, were this section read without reference to subsection (14), be a functional currency year of the specified predecessor; and (c) either (i) where the taxation year of the new corporation (referred to in this paragraph as the “first taxation year of the new corporation”) that began at the time of the amalgamation was a functional currency year of the new corporation, the functional currency of the new corporation for the first taxation year of the new corporation was not the functional currency of the specified predecessor for the last taxation year of the specified predecessor, or (ii) the first taxation year of the new corporation was not a functional currency year of the new corporation. Taxation year of specified predecessor (14) Where, because of subsection (13), this subsection applies to the specified predecessor, for the purposes of this section Exécution du budget et de l’ (a) the taxation year of the specified predecessor that ends immediately before the beginning of the last taxation year of the specified predecessor is deemed to be the last functional currency year of the specified predecessor; and (b) subsection (4) is deemed not to apply to the specified predecessor corporation for each taxation year of the specified predecessor commencing after the end of the last functional currency year of the specified predecessor described in paragraph (a). Deemed continuation on winding-up or amalgamation (15) For the purpose of this section, (a) subject to subsection (16), where there has been a winding-up of a taxpayer (referred to in this subsection and subsection (16) as the “subsidiary”) into another taxpayer (referred to in this subsection and subsection (16) as the “parent”) to which subsection 88(1) has applied, the parent is deemed to be the same corporation as and a continuation of the subsidiary; and (b) subject to subsection (17), where there has been an amalgamation (within the meaning assigned by subsection 87(1)) of two or more corporations (each such taxpayer referred to in this subsection and subsection (17) as a “predecessor”) to form one corporate entity (referred to in this subsection and subsection (17) as the “new corporation”) the new corporation is deemed to be the same corporation as and a continuation of each such predecessor corporation. Exception to deemed continuation — winding-up (16) Where the parent would not, in a taxation year of the parent ending after the time the subsidiary was wound up, satisfy the requirements of paragraph (3)(e) because the last functional currency year of the subsidiary referred to in subsection (12) in respect of the winding-up is, because of paragraph (15)(a), the last functional currency year of the parent, paragraph (15)(a) shall not apply, for the purposes of paragraph (3)(e), to the parent in respect of the subsidiary if the total of all amounts each of which is the cost amount, at the end of the taxation year of the parent in which the property of the subsidiary was distributed to the parent in the course of winding-up, to the C. 35 Budget and Economic State parent of a property that was distributed to the parent on the winding-up (or property substituted for such property) is less than 50% of the total of all amounts each of which is the cost amount, at the end of that taxation year, to the parent of a property of the parent. Exception to deemed continuation — amalgamation (17) Where the new corporation would not, in a taxation year of the new corporation commencing on or after the time of the amalgamation, satisfy the requirements of paragraph (3)(e) because the last functional currency year of the predecessor referred to in subsection (14) in respect of the amalgamation is, because of paragraph (15)(b) the last functional currency year of the new corporation, paragraph (15)(b) shall not apply, for the purposes of paragraph (3)(e), to the new corporation in respect of the predecessor if the total of all amounts each of which is the cost amount, at the end of the taxation year of the new corporation that began at the time of the amalgamation, to the new corporation of a property that, immediately before the amalgamation, was a property of the predecessor (or property substituted for such property) is less than 50% of the total of all amounts each of which is the cost amount, at the end of that taxation year of the new corporation, to the new corporation of a property of the new corporation. Anti-avoidance (18) Where, at any time, all or substantially all of the property (referred to in this subsection as the “transferred property”) of a business (referred to in this subsection as the “transferred business”) of a taxpayer has been disposed of by the taxpayer (referred to in this subsection as the “transferor”) and acquired, either directly or indirectly by a corporation resident in Canada (referred to in this subsection as the “transferee”) that, immediately after the acquisition, was related to the taxpayer, and a taxation year of the transferor beginning before that time was a functional currency year of the transferor, for the purposes of this section, the transferee is deemed to be the same corporation as and a continuation of the transferor if the total of all amounts each of which is the cost amount, at the end of the taxation year of the transferee in which the transferred business was transferred, to the transferee of a property that was a Exécution du budget et de l’ transferred property (or property substituted for such property) is greater than 50% of the total of all amounts each of which is the cost amount, at the end of that taxation year of the transferree, to the transferree of a property of the transferree. Authority to designate stock exchange 262. (1) The Minister of Finance may designate a stock exchange, or a part of a stock exchange, for the purposes of this Act. Revocation of designation (2) The Minister of Finance may revoke the designation of a stock exchange, or a part of a stock exchange, designated under subsection (1). Timing (3) A designation under subsection (1) or a revocation under subsection (2) shall specify the time at and after which it is in effect, which time may, for greater certainty, precede the time at which the designation or revocation is made. Publication (4) The Minister of Finance shall cause to be published, by posting on the Internet website of the Department of Finance or by any other means that the Minister of Finance considers appropriate, the names of those stock exchanges, or parts of stock exchanges, as the case may be, that are or at any time were designated under subsection (1). Transition (5) The Minister of Finance is deemed to have designated under subsection (1) each stock exchange and each part of a stock exchange that was, immediately before the day on which this section came into force, a prescribed stock exchange, with effect on and after that day. (2) The definition “Canadian tax results” in subsection 261(1), and subsection 261(2), of the Act, as enacted by subsection (1), apply for all taxation years. (3) Subsection 261(1) (other than the definition “Canadian tax results”), and subsections 261(3) to (18), of the Act, as enacted by subsection (1), apply in respect of taxation years that begin on or after the day on which this Act is assented to. C. 35 Budget and Economic State (4) Subsection 261(10) of the Act, as enacted by subsection (1), applies on and after the day on which this Act is assented to. (5) Section 262 of the Act, as enacted by subsection (1), applies on and after the day on which this Act is assented to. 68. (1) The Act is amended by replacing “prescribed stock exchange” with “designated stock exchange” in the following provisions: (a) the portion of paragraph 187.3(2)(d) before subparagraph (i); and (b) paragraph (d.1) of the definition “term preferred share” in subsection 248(1). (2) The Act is amended by replacing “prescribed stock exchange” with “designated stock exchange” in the following provisions: (a) subparagraphs 7(9)(d)(i) and (ii); (b) subparagraph 13(27)(f)(i); (c) subparagraph 48.1(1)(a)(ii); (d) subparagraphs 86.1(2)(c)(ii) and (d)(ii); (e) subsection 87(4.3) and paragraphs 87(9)(a.2) and (10)(e); (f) subsection 110.1(6); (g) paragraph 112(2.21)(c); (h) clauses (a)(i)(A) and (B) of the definition “qualified investment” in subsection 115.2(1); (i) paragraph 118.1(18)(a); (j) subparagraphs (a)(i) and (ii) and clauses (c)(ii)(A) and (B) of the definition “split income” in subsection 120.4(1); (k) paragraph (c) of the definition “Canadian-controlled private corporation” in subsection 125(7); (l) subsection 137(4.1); Exécution du budget et de l’ (m) paragraph (b) of the definition “nonqualified investment” in subsection 149.1(1); (n) subsection 207.5(2); (o) paragraph (a) of the definition “Canadian property mutual fund investment” in subsection 218.3(1); (p) paragraph (d) of the definition “grandfathered share” in subsection 248(1); and (q) paragraphs (d) to (f) of the definition “taxable Canadian property” in subsection 248(1). (3) Subsections (1) and (2) apply on and after the day on which this Act is assented to. R.S., c. 2 (5th Supp.) INCOME TAX APPLICATION RULES 69. (1) Subsection 10(5) of the Income Tax Application Rules is repealed. (2) Subsection (1) applies after 2007. R.S., c. I-4 INCOME TAX CONVENTIONS INTERPRETATION ACT 70. (1) The Income Tax Conventions Interpretation Act is amended by adding the following after section 4.1: Stock exchanges 4.2 Notwithstanding the provisions of a convention or the Act giving the convention the force of law in Canada, each reference in a convention to a stock exchange that is prescribed under, or for the purposes of, the Income Tax Act shall be read as a reference to a designated stock exchange, as defined in the Income Tax Act. (2) Subsection (1) applies on and after the day on which this Act is assented to. 194 C.R.C., c. 945 C. 35 Budget and Economic State INCOME TAX REGULATIONS 71. (1) Paragraphs 108(1.12)(a) and (b) of the Income Tax Regulations are replaced by the following: (a) the average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000, (b) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, under subsection 21(1) of the Canada Pension Plan, under subsection 82(1) of the Employment Insurance Actor under Part IX of the Excise Tax Act, and (2) Subsection (1) applies in respect of amounts required to be deducted or withheld after 2007. 72. (1) The Regulations are amended by adding the following after section 204: INTERPRETATION 204.1 (1) The following definitions apply in this section. “public investment trust”, at any time, means a public trust all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the trust that is (a) units of public trusts; (b) partnership interests in public partnerships (as defined in subsection 229.1(1)); (c) shares of the capital stock of public corporations; or (d) any combination of properties referred to in paragraphs (a) to (c). (fiducie de placement ouverte) Exécution du budget et de l’ “public trust”, at any time, means a mutual fund trust the units of which are, at that time, listed on a designated stock exchange in Canada. (fiducie ouverte) REQUIRED INFORMATION DISCLOSURE (2) A trust that is, at any time in a taxation year of the trust, a public trust shall, within the time required by subsection (3), (a) make public, in prescribed form, information in respect of the trust for the taxation year by posting that prescribed form, in a manner that is accessible to the general public, on the Internet website of CDS Innovations Inc.; and (b) notify the Minister in writing as to when the posting of the prescribed form, as required by paragraph (a), has been made. REQUIRED DISCLOSURE TIME (3) The time required for a public trust to satisfy the requirements of subsection (2) in respect of the public trust for a taxation year of the public trust is (a) subject to paragraph (b), on or before the day that is 60 days after the end of the taxation year; and (b) where the public trust is, at any time in the taxation year, a public investment trust, on or before the day that is 67 days after the end of the calendar year in which the taxation year ends. (2) Subsection (1) applies to information in respect of taxation years that end on or after July 4, 2007. 73. (1) The Regulations are amended by adding the following after section 229: DEFINITIONS 229.1 (1) The definitions in this subsection apply in this section. C. 35 Budget and Economic State “public investment partnership”, at any time, means a public partnership all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the partnership that is (a) units of public trusts (as defined in subsection 204.1(1)); (b) partnership interests in public partnerships; (c) shares of the capital stock of public corporations; or (d) any combination of properties referred to in paragraphs (a) to (c). (société de personnes de placement ouverte) “public partnership”, at any time, means a partnership the partnership interests in which are, at that time, listed on a designated stock exchange in Canada if, at that time, the partnership carries on a business in Canada or is a Canadian partnership. (société de personnes ouverte) REQUIRED INFORMATION DISCLOSURE (2) Every member of a partnership that is, at any time in a fiscal period of the partnership, a public partnership shall, within the time required by subsection (3), (a) make public, in prescribed form, information in respect of the public partnership for the fiscal period by posting the prescribed form, in a manner that is accessible to the general public, on the Internet website of CDS Innovations Inc.; and (b) notify the Minister in writing as to when the posting of the prescribed form, as required by paragraph (a), has been made. Exécution du budget et de l’ REQUIRED DISCLOSURE TIME (3) The time required for the members of a public partnership to satisfy the requirements of subsection (2) in respect of the public partnership for a fiscal period of the public partnership is (a) subject to paragraph (b), on or before the day that is the earlier of (i) 60 days after the end of the calendar year in which the fiscal period ends, and (ii) four months after the end of the fiscal period; and (b) where the public partnership is, at any time in the fiscal period, a public investment partnership, on or before the day that is 67 days after the end of the calendar year in which the fiscal period ends. OBLIGATION FULFILLED BY ONE PARTNER DEEMED FULFILLED BY ALL (4) Every member of a partnership that is required to satisfy the requirements of subsection (2) in respect of the partnership for a fiscal period of the partnership will be deemed to have satisfied those requirements if a particular member of the partnership, who has authority to act for the partnership, has satisfied those requirements in respect of the partnership for the fiscal period. (2) Subsection (1) applies to information in respect of fiscal periods that end on or after July 4, 2007. 74. (1) Section 3201 of the Regulations is amended (a) by replacing “the Australian Stock Exchange” in paragraph (a) with “the Australian Securities Exchange”; (b) by replacing “the Brussels Stock Exchange” in paragraph (b) with “Euronext Brussels”; (c) by replacing “the Paris Stock Exchange” in paragraph (c) with “Euronext Paris”; C. 35 Budget and Economic State (d) by replacing “the Amsterdam Stock Exchange” in paragraph (i) with “Euronext Amsterdam”; (e) by replacing “the Zurich Stock Exchange” in paragraph (m) with “the SWX Swiss Exchange”; (f) by replacing “the Cincinnati Stock Exchange” in subparagraph (o)(v) with “the National Stock Exchange”; (g) by repealing subparagraph (o)(vi); (h) by replacing “the Midwest Stock Exchange” in subparagraph (o)(vii) with “the Chicago Stock Exchange”; (i) by replacing “the Pacific Stock Exchange” in subparagraph (o)(x) with “NYSE Arca”; and (j) by replacing subparagraphs (o)(xi) and (xii) with the following: (xi) the Philadelphia Stock Exchange; (2) Sections 3200 and 3201 of the Regulations are repealed. (3) Paragraphs (1)(a) to (d), (f) to (h) and (j) are deemed to have come into force on the day immediately before the day on which this Act is assented to. (4) Paragraph (1)(e) is deemed to have come into force on January 1, 2007. (5) Paragraph (1)(i) is deemed to have come into force on April 1, 2006. (6) Subsection (2) comes into force on the day on which this Act is assented to. 75. (1) The definition “prescribed stock exchange” in section 3700 of the Regulations is repealed. (2) Subsection (1) comes into force on the day on which this Act is assented to. 76. (1) Subparagraphs 3702(1)(b)(i) and (ii) of the Regulations are amended by replacing “prescribed stock exchange” with “designated stock exchange”. (2) Subsection (1) comes into force on the day on which this Act is assented to. Exécution du budget et de l’ 77. (1) Subparagraph 4800(2)(a)(i) and paragraph 4800(3)(a) of the Regulations are amended by replacing “stock exchange in Canada prescribed for the purposes of section 89 of the Act” with “designated stock exchange in Canada”. (2) Subsection (1) comes into force on the day on which this Act is assented to. 78. (1) The portion of subsection 6201(5) of the Regulations before paragraph (a) is replaced by the following: (5) For the purpose of paragraph (f) of the definition “term preferred share” in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it unless (2) The portion of subsection 6201(5.1) of the Regulations before paragraph (a) is replaced by the following: (5.1) For the purpose of the definition “taxable RFI share” in subsection 248(1) of the Act, a share of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time with respect to another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it unless (3) Subsections (1) and (2) apply to dividends received in taxation years that begin after October 1994, except that in its application before the day on which this Act is assented to, the references to “a designated stock exchange in Canada” in subsections 6201(5) and (5.1) of the Regula200 C. 35 Budget and Economic State tions, as enacted by subsections (1) and (2), shall be read as a reference to “a stock exchange referred to in section 3200”. 79. (1) Paragraph 7303.1(1)(a) of the Regulations is replaced by the following: (a) the Yukon Territory, the Northwest Territories or Nunavut; (2) Paragraph 7303.1(2)(a) of the Regulations is amended by striking out the word “or” at the end of subparagraph (i), by adding the word “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) north of 55°13′N latitude and east of 123°16′W longitude; (3) Subsection (1) applies after March 31, 1999. (4) Subsection (2) applies to the 2007 and subsequent taxation years. 80. (1) The Regulations are amended by adding the following after section 7309: 7310. For the purpose of the definition “eligible apprentice” in subsection 127(9) of the Act, a prescribed trade in respect of a province means, at all times in a taxation year, a trade that is, at any time in that taxation year, a Red Seal trade for the province under the Interprovincial Standards Red Seal Program. (2) Subsection (1) applies to taxation years ending on or after May 2, 2006, except that in its application to taxation years ending before October 2007, section 7310 of the Regulations, as enacted by subsection (1), is to be read as follows: 7310. For the purpose of the definition “eligible apprentice” in subsection 127(9) of the Act, a prescribed trade in respect of a province means, at all times in a taxation year, a trade that is, on September 30, 2007, a Red Seal trade for the province under the Interprovincial Standards Red Seal Program. Exécution du budget et de l’ 81. (1) Clause 8303(5)(f.1)(ii)(C) of the Regulations is replaced by the following: (C) the plan is not a designated plan, (2) Subparagraph 8303(5)(f.2)(iv) of the Regulations is replaced by the following: (iv) the plan is not a designated plan, (3) Subsections (1) and (2) apply to past service events that occur after 2007. 82. (1) Subsection 8500(1) of the Regulations is amended by adding the following in alphabetical order: “designated plan” has the meaning assigned by section 8515; (régime désigné) (2) Subsection 8500(2) of the Regulations is replaced by the following: (2) All words and expressions used in this Part that are defined in subsection 147.1(1) of the Act or in Part LXXXIII have the meanings assigned in those provisions. (3) Subsections (1) and (2) apply after 2007. 83. (1) The portion of paragraph 8503(3)(a) of the Regulations before subparagraph (i) is replaced by the following: ELIGIBLE SERVICE (a) the only lifetime retirement benefits provided under the provision to a member (other than additional lifetime retirement benefits provided to a member because the member is totally and permanently disabled at the time the member’s retirement benefits commence to be paid) are lifetime retirement benefits provided in respect of one or more of the following periods (other than the portion of a period that is after the calendar year in which the member attains 71 years of age), namely, C. 35 Budget and Economic State (2) Subsection 8503(9) of the Regulations is amended by striking out the word “and” at the end of paragraph (e), by adding the word “and” at the end of paragraph (f) and by adding the following after paragraph (f): (g) the provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring in the period in which the member’s benefits are suspended as if the member’s benefits had not previously commenced to be paid. (3) Section 8503 of the Regulations is amended by adding the following after subsection (15): DEFINITIONS (16) The following definitions apply in this subsection and in subsections (17) to (23). “qualifying period” of a member under a defined benefit provision of a pension plan means a period throughout which the member is employed by an employer who participates in the plan but does not include any period that is before the day that is the first day, on or after the later of the following days, in respect of which retirement benefits are provided under the provision to the member: (a) the day on which retirement benefits first commenced to be paid to the member under the provision; and (b) the member’s specified eligibility day under the provision. (période admissible) “specified eligibility day” of a member under a defined benefit provision of a pension plan means the earlier of (a) the later of (i) the day on which the member attains 55 years of age, and Exécution du budget et de l’ (ii) the day on which the member attains the earliest age at which payment of the member’s lifetime retirement benefits may commence under the terms of the provision without a reduction computed by reference to the member’s age, duration of service, or both (and without any other similar reduction), otherwise than because of the member being totally and permanently disabled; and (b) the day on which the member attains 60 years of age. (date d’admissibilité) BRIDGING BENEFITS PAYABLE ON A STAND-ALONE BASIS (17) The condition in subparagraph (2)(b)(i) that bridging benefits be payable to a member under a defined benefit provision of a pension plan for a period beginning no earlier than the time lifetime retirement benefits commence to be paid under the provision to the member does not apply where the following conditions are satisfied: (a) the bridging benefits do not commence to be paid before the member’s specified eligibility day under the provision; (b) the plan provides that bridging benefits are payable under the provision to the member only for calendar months (i) at any time in which the member is employed by an employer who participates in the plan, or (ii) that begin on or after the time the member’s lifetime retirement benefits under the provision commence to be paid; (c) the member was not, at any time before the time at which the bridging benefits commence to be paid, connected with an employer who participates in the plan; and (d) the plan is not a designated plan. C. 35 Budget and Economic State RULES OF APPLICATION (18) Where bridging benefits under a defined benefit provision of a pension plan commence to be paid to a member in circumstances to which subsection (17) applies, the following rules apply: (a) if the member dies before lifetime retirement benefits under the provision commence to be paid to the member, subsections (2) and (6) apply in respect of benefits provided under the provision on the death of the member as if the bridging benefits had not commenced to be paid before the member’s death; and (b) the provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring before lifetime retirement benefits under the provision commence to be paid to the member as if the bridging benefits had not commenced to be paid. BENEFIT ACCRUALS AFTER PENSION COMMENCEMENT (19) Paragraph (3)(b) does not apply to retirement benefits (in this subsection and in subsections (20) and (21) referred to as “additional benefits”) provided under a defined benefit provision of a pension plan to a member of the plan if the following conditions are satisfied: (a) the additional benefits are provided in respect of all or part of a qualifying period of the member under the provision; (b) the amount of retirement benefits payable to the member under the provision for each whole calendar month in the qualifying period does not exceed 5% of the amount (expressed on an annualized basis) of retirement benefits that have accrued under the provision to the member to the beginning of the month, determined without a reduction computed by reference to the member’s age, Exécution du budget et de l’ duration of service, or both, and without any other similar reduction (except that, if the plan limits the amount of pensionable service of a member or prohibits the provision of benefits in respect of periods after a member attains a specific age or combination of age and pensionable service, this condition does not apply to any calendar month in respect of which no benefits can be provided to the member because of the limit or prohibition, as the case may be); (c) no part of the additional benefits are provided as a consequence of a past service event, unless the benefits are provided in circumstances to which subsection 8306(1) would apply if no qualifying transfers were made in connection with the past service event; (d) the member was not, at any time before the additional benefits become provided, connected with an employer who participates in the plan; and (e) the plan is not a designated plan. REDETERMINATION OF BENEFITS (20) Where the amount of retirement benefits payable under a defined benefit provision of a pension plan to a member is redetermined to include additional benefits provided to the member in respect of a qualifying period of the member under the provision, the conditions in paragraph (2)(b) and section 8504 apply in respect of benefits payable under the provision to the member after the redetermination as if the member’s retirement benefits had first commenced to be paid at the time of the redetermination. RULES OF APPLICATION (21) Where additional benefits are provided under a defined benefit provision of a pension plan to a member in respect of a qualifying period of the member under the provision, the following rules apply: C. 35 Budget and Economic State (a) if the qualifying period ends as a consequence of the member’s death, subsections (2) and (6) apply in respect of benefits provided under the provision on the death of the member as if the member’s retirement benefits had not commenced to be paid before the member’s death; and (b) the provisions in paragraph (2)(m), Part LXXXIII and subsection 8517(4) that depend on whether the member’s retirement benefits have commenced to be paid apply to past service events, commutations and transfers occurring in the qualifying period as if the member’s retirement benefits had not commenced to be paid. ANTI-AVOIDANCE (22) Subsections (20) and (21) do not apply where it is reasonable to consider that one of the main reasons for the provision of additional benefits to the member is to obtain the benefit of any of those subsections. CROSS-PLAN RULES (23) Where a member is provided with benefits under two or more associated defined benefit provisions, the determination of whether the conditions in subsections (17) and (19) are satisfied in respect of benefits payable or provided to the member under a particular associated provision shall be made on the basis of the following assumptions: (a) benefits payable to the member under each of the other associated provisions were payable under the particular associated provision; (b) if, before the member’s specified eligibility day (determined without reference to this paragraph) under the particular associated provision, the member had commenced to receive retirement benefits under another associated provision on or after the member’s specified eligibility day under that provision, the member’s specified eligibility day under Exécution du budget et de l’ the particular associated provision were the member’s specified eligibility day under that other associated provision; and (c) if one or more of the other associated provisions is in a designated plan, the plan that includes the particular provision were also a designated plan. ASSOCIATED DEFINED BENEFIT PROVISIONS (24) For the purpose of subsection (23), a defined benefit provision is associated with another defined benefit provision (other than a provision that is not in a registered pension plan) if (a) the provisions are in the same pension plan; or (b) the provisions are in separate pension plans and (i) there is an employer who participates in both plans, or (ii) an employer who participates in one of the plans does not deal at arm’s length with an employer who participates in the other plan. SUBSECTION (24) NOT APPLICABLE (25) A particular defined benefit provision of a pension plan is not associated with a defined benefit provision of another pension plan if it is unreasonable to expect the benefits under the particular provision to be coordinated with the benefits under the other provision and the Minister has agreed not to treat the particular provision as being associated with the other provision. (4) Subsections (1) to (3) apply to benefits that are provided or payable after 2007. 84. (1) The portion of subsection 8504(2) of the Regulations before paragraph (a) is replaced by the following: C. 35 Budget and Economic State (2) For the purposes of subsection (1) and paragraph 8505(3)(d), the highest average compensation of a member of a pension plan for the purpose of a defined benefit provision of the plan, indexed to the calendar year (in this subsection referred to as the “year of commencement”) in which the member’s lifetime retirement benefits under the provision commence to be paid, is, (2) Subsection (1) applies to the 2008 and subsequent calendar years. 85. (1) Paragraph 8507(3)(a) of the Regulations is amended by striking out the word “and” at the end of subparagraph (v) and by adding the following after subparagraph (vi): (vii) no part of the period is after the earlier of (A) the time at which bridging benefits commence to be paid to the individual in circumstances to which subsection 8503(17) applied, and (B) the earliest day in respect of which benefits have been provided to the individual in circumstances to which subsection 8503(19) applied; and (2) Subsection (1) applies to the 2008 and subsequent calendar years. 86. (1) Paragraph 8514(2)(a) of the Regulations is replaced by the following: (a) a debt obligation described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3) of the Act; (2) Paragraphs 8514(2)(b) and (c) of the Regulations are amended by replacing “stock exchange referred to in section 3200 or 3201” in those paragraphs with “designated stock exchange”. (3) Subsection (1) applies after 2007. (4) Subsection (2) comes into force on the day on which this Act is assented to. 87. (1) Paragraph 8516(2)(d) of the Regulations is replaced by the following: Exécution du budget et de l’ (d) at the time the contribution is made, the plan is not a designated plan. (2) Paragraph 8516(3)(d) of the Regulations is replaced by the following: (d) at the time the contribution is made, the plan is not a designated plan. (3) Paragraph 8516(4)(e) of the Regulations is replaced by the following: (e) at the time the contribution is made, the plan is not a designated plan. (4) Subsections (1) to (3) apply after 2007. 88. (1) The Regulations are amended by adding the following after Part XCIII: PART XCIV PRESCRIBED PROGRAMS OF PHYSICAL ACTIVITY INTERPRETATION 9400. (1) The following definitions apply in this Part. “physical activity” means a supervised activity suitable for children (other than an activity where a child rides on or in a motorized vehicle as an essential component of the activity) that (a) in the case of a qualifying child in respect of whom an amount is deductible under section 118.3 of the Act in computing any person’s income for the taxation year, results in movement and in an observable expenditure of energy in a recreational context; and (b) in the case of any other child, contributes to cardio-respiratory endurance and to one or more of the following: (i) muscular strength, (ii) muscular endurance, (iii) flexibility, and (iv) balance. (activité physique) “qualifying child” has the meaning assigned by subsection 118.03(1) of the Act. (enfant admissible) C. 35 Budget and Economic State PRESCRIBED PROGRAM OF PHYSICAL ACTIVITY (2) For the purpose of the definition “eligible fitness expense” in subsection 118.03(1) of the Act, a prescribed program of physical activity is (a) a weekly program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks in which all or substantially all of the activities include a significant amount of physical activity; (b) a program, that is not part of a school’s curriculum, of a duration of five or more consecutive days of which more than 50% of the daily activities include a significant amount of physical activity; (c) a program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered to children by a club, association or similar organization (in this section referred to as an “organization”) in circumstances where a participant in the program may select amongst a variety of activities if (i) more than 50% of those activities offered to children by the organization are activities that include a significant amount of physical activity, or (ii) more than 50% of the time scheduled for activities offered to children in the program is scheduled for activities that include a significant amount of physical activity; or (d) a membership in an organization, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks if more than 50% of all the activities offered to children by the organization include a significant amount of physical activity. Exécution du budget et de l’ MIXED-USE FACILITY (3) For the purpose of the definition “eligible fitness expense” in subsection 118.03(1) of the Act, a prescribed program of physical activity is that portion of a program, which program does not meet the requirements of paragraph (2)(c) and is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered to children by an organization in circumstances where a participant in the program may select amongst a variety of activities (a) that is the percentage of those activities offered to children by the organization that are activities that include a significant amount of physical activity; or (b) that is the percentage of the time scheduled for activities in the program that is scheduled for activities that include a significant amount of physical activity. MEMBERSHIP (4) For the purpose of the definition “eligible fitness expense” in subsection 118.03(1) of the Act, a prescribed program of physical activity is that portion of a membership in an organization, which membership does not meet the requirements of paragraph (2)(d) and is not part of a school’s curriculum, of a duration of eight or more consecutive weeks that is the percentage of all the activities offered to children by the organization that are activities that include a significant amount of physical activity. HORSEBACK RIDING (5) For the purpose of the definition “physical activity” in subsection (1), horseback riding is deemed to be an activity that contributes to cardio-respiratory endurance and to one or more of muscular strength, muscular endurance, flexibility and balance. C. 35 Budget and Economic State (2) Subsection (1) applies after 2006. 89. (1) The Regulations are amended by replacing “stock exchange referred to in section 3200” with “designated stock exchange in Canada” in the following provisions: (a) subparagraph 4900(1)(i)(i); (b) the portion of subparagraph 4900(1)(i)(ii) after clause (C); (c) the portion of 6201(1) before paragraph (a); (d) the portion of subsection 6201(2) before paragraph (a); and (e) the portion of subsection 6201(4) before paragraph (a). (2) Subsection (1) comes into force on the day on which this Act is assented to. C.R.C., c. 385 CANADA PENSION PLAN REGULATIONS SOR/97-472, s. 1(2) 90. (1) Paragraphs 8(1.12)(a) and (b) of the Canada Pension Plan Regulations are replaced by the following: (a) the average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000; (b) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 21(1) of the Act, under subsection 82(1) of the Employment Insurance Act, under Part IX of the Excise Tax Act or under subsection 153(1) of the Income Tax Act; and (2) Subsection (1) applies in respect of amounts required to be deducted or withheld after 2007. 2007 SOR/97-33 SOR/97-472, s. 2(2) Exécution du budget et de l’ INSURABLE EARNINGS AND COLLECTION OF PREMIUMS REGULATIONS 91. (1) Paragraphs 4(3.1)(a) and (b) of the Insurable Earnings and Collection of Premiums Regulations are replaced by the following: (a) the average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000; (b) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 82(1) of the Act, under subsection 21(1) of the Canada Pension Plan, under Part IX of the Excise Tax Act, or under subsection 153(1) of the Income Tax Act; and (2) Subsection (1) applies in respect of amounts required to be deducted or withheld after 2007. COORDINATING AMENDMENTS Bill C-10 92. Sections 93 to 100 apply if Bill C-10, introduced in the 2nd session of the 39th Parliament and entitled the Income Tax Amendments Act, 2006 (referred to in those sections as the “other Act”), receives royal assent. 93. (1) If this Act receives royal assent before the other Act receives royal assent, section 4 of the other Act is repealed. (2) The definition “controlled foreign affiliate” in subsection 17(15) of the Income Tax Act, as enacted by subsection 10(3) of this Act, is replaced by the following: “controlled foreign affiliate” « société étrangère affiliée contrôlée » “controlled foreign affiliate”, at any time, of a taxpayer resident in Canada, means a corporation that would, at that time, be a controlled foreign affiliate of the taxpayer within the meaning assigned by the definition “controlled C. 35 Budget and Economic State foreign affiliate” in subsection 95(1) if the word “or” were added at the end of paragraph (a) of that definition and (a) subparagraph (b)(ii) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with the taxpayer,”; (b) subparagraph (b)(iv) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with any relevant Canadian shareholder;”; and (c) that definition were read without reference to its paragraph (c). (3) Subsection (2) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after February 23, 1998, except that, in applying the definition “controlled foreign affiliate” in subsection 17(15) of the Income Tax Act, as enacted by subsection (2), (a) for taxation years, of a foreign affiliate of a taxpayer, that begin after 2002 and on or before February 27, 2004, that definition is to be read as follows: “controlled foreign affiliate” has the meaning that would be assigned by the definition “controlled foreign affiliate” in subsection 95(1) for taxation years, of a foreign affiliate of a taxpayer, that begin after 2002 and on or before February 27, 2004, if the word “or” were added at the end of paragraph (a) of that definition and (a) subparagraph (b)(ii) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with the taxpayer,”; (b) subparagraph (b)(iv) of that definition were read as “all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons resident in Canada who do not deal at arm’s length with any relevant Canadian shareholder;”; and Exécution du budget et de l’ (c) that definition were read without reference to its paragraph (c). (b) for taxation years, of a foreign affiliate of a taxpayer, that begin after February 23, 1998 and before 2003, that definition is to be read as follows: “controlled foreign affiliate” has the meaning that would be assigned by the definition “controlled foreign affiliate” in subsection 95(1) for taxation years, of a foreign affiliate of a taxpayer, that begin after February 23, 1998 and before 2003, if subparagraph (b)(iii) of that definition were read as “each share of the capital stock of a corporation that is owned at that time by the taxpayer and each share of the capital stock of a corporation that is owned at that time by any person resident in Canada with whom the taxpayer does not deal at arm’s length.”. 94. (1) If this Act receives royal assent before the other Act receives royal assent, subsection 19(2) of the other Act is repealed. (2) The definition “controlled foreign affiliate” in subsection 95(1) of the Income Tax Act, as enacted by subsection 26(1) of this Act, is replaced by the following: “controlled foreign affiliate” « société étrangère affiliée contrôlée » “controlled foreign affiliate”, at any time, of a taxpayer resident in Canada, means (a) a foreign affiliate of the taxpayer that is, at that time, controlled by the taxpayer, (b) a foreign affiliate of the taxpayer that would, at that time, be controlled by the taxpayer if the taxpayer owned (i) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the taxpayer, (ii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with the taxpayer, (iii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the persons (each of whom is C. 35 Budget and Economic State referred to in this definition as a “relevant Canadian shareholder”), in any set of persons not exceeding four (which set of persons shall be determined without reference to the existence of or the absence of any relationship, connection or action in concert between those persons), who (A) are resident in Canada, (B) are not the taxpayer or a person described in subparagraph (ii), and (C) own, at that time, shares of the capital stock of the foreign affiliate, and (iv) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with any relevant Canadian shareholder, or (c) a foreign affiliate of the taxpayer that is, at that time, a controlled foreign affiliate of the taxpayer because of paragraph 94.1(2)(h); (3) Subsection (2) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after 1995, except that (a) for taxation years, of a foreign affiliate of a taxpayer, that begin after 2002 and on or before February 27, 2004, the definition “controlled foreign affiliate” in subsection 95(1) of the Income Tax Act, as enacted by subsection (2), is to be read as follows: “controlled foreign affiliate”, at any time, of a taxpayer resident in Canada, means (a) a foreign affiliate of the taxpayer that is, at that time, controlled (i) by the taxpayer, (ii) by the taxpayer and not more than four other persons resident in Canada, or (iii) by not more than four persons resident in Canada, other than the taxpayer, (b) a foreign affiliate of the taxpayer that would, at that time, be controlled by the taxpayer if the taxpayer owned (i) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the taxpayer, Exécution du budget et de l’ (ii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with the taxpayer, (iii) all of the shares of the capital stock of the foreign affiliate that are owned at that time by the persons (each of whom is referred to in this definition as a “relevant Canadian shareholder”), in any set of persons not exceeding four (which set of persons shall be determined without reference to the existence of or the absence of any relationship, connection or action in concert between those persons), who (A) are resident in Canada, (B) are not the taxpayer or a person described in subparagraph (ii), and (C) own, at that time, shares of the capital stock of the foreign affiliate, and (iv) all of the shares of the capital stock of the foreign affiliate that are owned at that time by persons who do not deal at arm’s length with any relevant Canadian shareholder, or (c) a foreign affiliate of the taxpayer that is, at that time, a controlled foreign affiliate of the taxpayer because of paragraph 94.1(2)(h); (b) for taxation years, of a foreign affiliate of a taxpayer, that begin after 1995 and before 2003, the definition “controlled foreign affiliate” in subsection 95(1) of the Income Tax Act, as enacted by subsection (2), is to be read as follows: “controlled foreign affiliate”, at any time of a taxpayer resident in Canada, means a foreign affiliate of the taxpayer that (a) is, at that time, controlled (i) by the taxpayer, (ii) by the taxpayer and not more than four other persons resident in Canada, or (iii) by not more than four persons resident in Canada, other than the taxpayer, or (b) would, at that time, be controlled by the taxpayer if the taxpayer owned C. 35 Budget and Economic State (i) each share of the capital stock of a corporation that is owned at that time by the taxpayer and each share of the capital stock of a corporation that is owned at that time by any of not more than four other persons resident in Canada, (ii) each share of the capital stock of a corporation that is owned at that time by any of not more than four persons resident in Canada (other than the taxpayer), and (iii) each share of the capital stock of a corporation that is owned at that time by the taxpayer and each share of the capital stock of a corporation that is owned at that time by any person with whom the taxpayer does not deal at arm’s length. 95. (1) Paragraph 95(2)(g.02) of the Act, as enacted by subsection 26(13) of this Act, is replaced by the following: (g.02) in applying subsection 39(2) for the purpose of this subdivision (other than sections 94 to 94.4), the gains and losses of a foreign affiliate of a taxpayer in respect of excluded property are to be computed in respect of the taxpayer separately from the gains and losses of the foreign affiliate in respect of property that is not excluded property; (2) Subsection (1) applies to taxation years, of a foreign affiliate of a taxpayer, that begin after 2002. 96. Paragraph 110.1(1)(a.1) of the Act, as enacted by subsection 30(1) of this Act, is replaced by the following: Exécution du budget et de l’ 2007 Gifts of medicine (a.1) the total of all amounts each of which is an amount, in respect of property that is the subject of an eligible medical gift made by the corporation in the taxation year or in any of the 5 preceding taxation years, determined by the formula A × B/C where A is the lesser of (a) the cost to the corporation of the property, and (b) 50 per cent of the amount, if any, by which the corporation’s proceeds of disposition of the property in respect of the gift exceeds the cost to the corporation of the property; B is the eligible amount of the gift; and C is the corporation’s proceeds of disposition of the property in respect of the gift. 97. (1) Subsections 179(1) to (3), (10), (16) to (19), (24) and (27) of the other Act and subsections 59(2), (3), (6) and (8) of this Act apply as though the other Act had received royal assent before this Act received royal assent. (2) Subsection 268(1) of the other Act is repealed. (3) If subsection 194(8) of the other Act comes into force, then, on the day on which this Act is assented to, the portion of paragraph (d) of the definition “fully exempt interest” in subsection 212(3) of the Income Tax Act before subparagraph (i), as enacted by subsection 59(3) of this Act, is replaced by the following: (d) an amount paid or payable or credited under a securities lending arrangement that is deemed by subparagraph 260(8)(c)(i) to be a payment made by a borrower to a lender of interest, if 98. (1) If the other Act receives royal assent before this Act receives royal assent, section 63 and subsection 64(1) of this Act are repealed. C. 35 Budget and Economic State (2) On the later of the day on which the other Act receives royal assent and the day on which this Act receives royal assent, paragraph (b) of the definition “listed international agreement” in subsection 248(1) of the Income Tax Act, as enacted by subsection 187(11) of the other Act, is replaced by the following: (b) a comprehensive tax information exchange agreement between Canada and another country or jurisdiction; 99. (1) The definition “qualified trust unit” in subsection 260(1) of the Act, as enacted by subsection 194(5) of the other Act, is replaced by the following: “qualified trust unit” « unité de fiducie déterminée » “qualified trust unit” means a unit of a mutual fund trust that is listed on a stock exchange; (2) If the other Act receives royal assent before subsection 66(2) of this Act comes into force, that subsection 66(2) is repealed and the words “Subsections (2) and (3) apply” in subsection 66(5) of this Act are replaced by “Subsection (3) applies”. (3) Subparagraph 260(8)(c)(ii) of the Income Tax Act, as enacted by subsection 194(8) of the other Act, is replaced by the following: (ii) is, to the extent of the amount of the interest, if any, paid in respect of the security, deemed, if the security is described in paragraph (c) of the definition “qualified security” in subsection (1), to have been payable on a security described in paragraph (a) of the definition “fully exempt interest” in subsection 212(3); and (4) On the first day on which both subsection 260(10) of the Income Tax Act, as enacted by subsection 194(9) of the other Act, and subsection 260(10) of the Income Tax Act, as enacted by subsection 66(3) of this Act, are in force, subsection 260(10) of the Income Tax Act, as enacted by subsection 66(3) of this Act, is renumbered as subsection 260(9.1) and is repositioned accordingly if required. Exécution du budget et de l’ 100. (1) If the other Act receives royal assent before this Act receives royal assent, paragraph 68(2)(d) of this Act is repealed. (2) Sections 17, 18, 69 and 87 of the other Act and section 68 of this Act apply as though the other Act had received royal assent before this Act received royal assent, and, on the day on which this Act is assented to, the references to “prescribed stock exchange” in the following provisions of the Income Tax Act, as enacted by those sections of the other Act, are replaced by references to “designated stock exchange”: (a) paragraphs (b) and (c) of the definition “qualified person” in subsection 55(1), and subsection 55(6); (b) the definitions “arm’s length transfer” and “excluded property” in subsection 94(1); (c) the definitions “arm’s length interest” and “exempt interest” in subsection 94.1(1); and (d) the definitions “readily obtainable fair market value” and “trading day” in subsection 94.2(1), and paragraph 94.2(2)(b). PART 4 DISABILITY SAVINGS AMENDMENTS RELATING TO INCOME TAX R.S., c. 1 (5th Supp.) Income Tax Act 101. Paragraph 4(3)(a) of the Income Tax Act is replaced by the following: (a) subject to paragraph (b), all deductions permitted in computing a taxpayer’s income for a taxation year for the purposes of this Part, except any deduction permitted by any of paragraphs 60(b) to (o), (p), (r) and (v) to (z), shall apply either wholly or in part to a particular source or to sources in a particular place; and C. 35 Budget and Economic State 102. Subsection 18(11) of the Act is amended by striking out the word “or” at the end of paragraph (g), by adding the word “or” at the end of paragraph (h) and by adding the following after paragraph (h): (i) making a contribution to a registered disability savings plan, 103. Clause 40(2)(g)(iv)(A) of the Act is replaced by the following: (A) a trust governed by a deferred profit sharing plan, an employees profit sharing plan, a registered disability savings plan or a registered retirement income fund under which the taxpayer is a beneficiary or immediately after the disposition becomes a beneficiary, or 104. Subsection 56(1) of the Act is amended by adding the following after paragraph (q): Registered disability savings plan payments (q.1) amounts in respect of a registered disability savings plan required by section 146.4 to be included in computing the taxpayer’s income for the year; 105. Section 60 of the Act is amended by striking out the word “and’’ at the end of paragraph (x), by adding the word “and” at the end of paragraph (y) and by adding the following after paragraph (y): Repayment under the Canada Disability Savings Act (z) the total of all amounts each of which is an amount paid in the taxation year as a repayment, under the Canada Disability Savings Act, of an amount that was included because of section 146.4 in computing the taxpayer’s income for the taxation year or a preceding taxation year. 106. Subsection 74.5(12) of the Act is amended by striking out the word “or” at the end of paragraph (a.1) and by adding the following after that paragraph: (a.2) as a payment of a contribution under a registered disability savings plan; or Exécution du budget et de l’ 107. Paragraph 75(3)(a) of the Act is replaced by the following: (a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a retirement compensation arrangement; 108. The portion of subsection 87(10) of the Act after paragraph (f) is replaced by the following: the new share is deemed, for the purposes of subsection 116(6), the definitions “qualified investment” in subsections 146(1), 146.1(1), 146.3(1), in section 204 and in subsection 205(1), and the definition “taxable Canadian property” in subsection 248(1), to be listed on the exchange until the earliest time at which it is so redeemed, acquired or cancelled. 109. Paragraph 107.4(1)(j) of the Act is replaced by the following: (j) if the contributor is an amateur athlete trust, a cemetery care trust, an employee trust, an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (as defined by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the particular trust is the same type of trust. 110. Paragraph (a) of the definition “trust” in subsection 108(1) of the Act is replaced by the following: C. 35 Budget and Economic State (a) an amateur athlete trust, an employee trust, a trust described in paragraph 149(1)(o.4) or a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a foreign retirement arrangement, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan or a registered supplementary unemployment benefit plan, 111. The definition “adjusted income” in subsection 122.5(1) of the Act is replaced by the following: “adjusted income” « revenu rajusté » “adjusted income”, of an individual for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s qualified relation, if any, in relation to the specified month, both calculated as if no amount were included under paragraph 56(1)(q.1) or subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and as if no amount were deductible under paragraph 60(y) or (z) in computing that income. 112. The definition “adjusted income” in section 122.6 of the Act is replaced by the following: “adjusted income” « revenu modifié » “adjusted income”, of an individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year if no amount were included under paragraph 56(1)(q.1) or subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(y) or (z) in computing that income; Exécution du budget et de l’ 113. Paragraph (a) of the definition “excluded right or interest” in subsection 128.1(10) of the Act is amended by adding the following after subparagraph (iii): (iii.1) a registered disability savings plan, 114. Paragraph 132.2(1)(k) of the Act is replaced by the following: (k) where a share to which paragraph (j) applies would, but for this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3, section 204 or subsection 205(1) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the transfer time and the time at which it is disposed of in accordance with paragraph (j); 115. The Act is amended by adding the following after section 146.3: Registered Disability Savings Plan Definitions “assistance holdback amount” « montant de retenue » “contribution” « cotisation » “disability assistance payment” « paiement d’aide à l’invalidité » “disability savings plan” « régime d’épargneinvalidité » 146.4 (1) The following definitions apply in this section. “assistance holdback amount”, in relation to a disability savings plan, has the meaning assigned under the Canada Disability Savings Act. “contribution” to a disability savings plan does not include (other than for the purpose of paragraph (b) of the definition “disability savings plan”) an amount paid into the plan under the Canada Disability Savings Act or a prescribed payment. “disability assistance payment”, in relation to a disability savings plan of a beneficiary, means any payment made from the plan to the beneficiary or to the beneficiary’s estate. “disability savings plan” of a beneficiary means an arrangement (a) between (i) a corporation (in this section referred to as the “issuer”) C. 35 Budget and Economic State (A) that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, and (B) with which the specified Minister has entered into an agreement that applies to the arrangement for the purposes of the Canada Disability Savings Act, and (ii) one or more of the following: (A) the beneficiary, (B) an entity that, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary, and (C) a legal parent of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary; (b) under which one or more contributions are to be made in trust to the issuer to be invested, used or otherwise applied by the issuer for the purpose of making payments from the arrangement to the beneficiary; and (c) that is entered into in a taxation year in respect of which the beneficiary is a DTCeligible individual. “DTC-eligible individual” « particulier admissible au CIPH » “holder” « titulaire » “DTC-eligible individual”, in respect of a taxation year, means an individual in respect of whom an amount is deductible, or would if this Act were read without reference to paragraph 118.3(1)(c) be deductible, under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year. “holder” of a disability savings plan at any time means each of the following: (a) an entity that has, at that time, rights as an entity with whom the issuer entered into the plan; Exécution du budget et de l’ (b) an entity that has, at that time, rights as a successor or assignee of an entity described in paragraph (a) or in this paragraph; and (c) the beneficiary if, at that time, the beneficiary is not an entity described in paragraph (a) or (b) and has rights under the plan to make decisions (either alone or with other holders of the plan) concerning the plan, except where the only such right is a right to direct that disability assistance payments be made as provided for in subparagraph (4)(n)(iii)). “lifetime disability assistance payments” « paiements viagers pour invalidité » “lifetime disability assistance payments” under a disability savings plan of a beneficiary means disability assistance payments that are identified under the terms of the plan as lifetime disability assistance payments and that, after they begin to be paid, are payable at least annually until the earlier of the day on which the beneficiary dies and the day on which the plan is terminated. “plan trust” « fiducie de régime » “plan trust”, in relation to a disability savings plan, means the trust governed by the plan. “qualifying person” « responsable » “qualifying person”, in relation to a beneficiary of a disability savings plan, at any time, means (a) if the beneficiary has not, at or before that time, attained the age of majority, an entity that is, at that time, (i) a legal parent of the beneficiary, (ii) a guardian, tutor, curator or other individual who is legally authorized to act on behalf of the beneficiary, or (iii) a public department, agency or institution that is legally authorized to act on behalf of the beneficiary, and (b) if the beneficiary has, at or before that time, attained the age of majority and is not, at that time, contractually competent to enter into a disability savings plan, an entity that is, at that time, an entity described in subparagraph (a)(ii) or (iii). “registered disability savings plan” « régime enregistré d’épargneinvalidité » “registered disability savings plan” means a disability savings plan that satisfies the conditions in subsection (2), but does not include a plan to which subsection (3) or (10) applies. C. 35 “specified Minister” « ministre responsable » “specified Minister” means the minister designated under section 4 of the Canada Disability Savings Act. Budget and Economic State “specified year” « année déterminée » “specified year” for a disability savings plan of a beneficiary means the particular calendar year in which a medical doctor licensed to practice under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor, the beneficiary is not likely to survive more than five years, and each of the five calendar years following the particular calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan. Registered status (2) The conditions that must be satisfied for a disability savings plan of a beneficiary to be a registered disability savings plan are as follows: (a) before the plan is entered into, the issuer of the plan has received written notification from the Minister that, in the Minister’s opinion, a plan whose terms are identical to the plan would, if entered into by entities eligible to enter into a disability savings plan, comply with the conditions in subsection (4); (b) at or before the time the plan is entered into, the issuer of the plan has been provided with the Social Insurance Number of the beneficiary and the Social Insurance Number or business number, as the case may be, of each entity with which the issuer has entered into the plan; and (c) at the time the plan is entered into, the beneficiary is resident in Canada, except that this condition does not apply if, at that time, the beneficiary is the beneficiary under another registered disability savings plan. 2007 Registered status nullified Exécution du budget et de l’ (3) A disability savings plan is deemed never to have been a registered disability savings plan if (a) the issuer of the plan has not, on or before the day that is 60 days after the particular day on which the plan was entered into, provided notification of the plan’s existence in prescribed form containing prescribed information to the specified Minister; or (b) the beneficiary was, on the particular day, the beneficiary under another registered disability savings plan and that other plan has not been terminated on or before the day that is 120 days after the particular day or any later day that the specified Minister considers reasonable in the circumstances. Plan conditions (4) The conditions referred to in paragraph (2)(a) are as follows: (a) the plan stipulates (i) that it is to be operated exclusively for the benefit of the beneficiary under the plan, (ii) that the designation of the beneficiary under the plan is irrevocable, and (iii) that no right of the beneficiary to receive payments from the plan is capable, either in whole or in part, of surrender or assignment; (b) the plan allows an entity to acquire rights as a successor or assignee of a holder of the plan only if the entity is (i) the beneficiary, (ii) the beneficiary’s estate, (iii) a holder of the plan at the time the rights are acquired, (iv) a qualifying person in relation to the beneficiary at the time the rights are acquired, or (v) an individual who is a legal parent of the beneficiary and was previously a holder of the plan; (c) the plan provides that, where an entity (other than a legal parent of the beneficiary) that is a holder of the plan ceases to be a C. 35 Budget and Economic State qualifying person in relation to the beneficiary at any time, the entity ceases at that time to be a holder of the plan; (d) the plan provides for there to be at least one holder of the plan at all times that the plan is in existence and may provide for the beneficiary (or the beneficiary’s estate, as the case may be) to automatically acquire rights as a successor or assignee of a holder in order to ensure compliance with this requirement; (e) the plan provides that, where an entity becomes a holder of the plan after the plan is entered into, the entity is prohibited (except to the extent otherwise permitted by the Minister or the specified Minister) from exercising their rights as a holder of the plan until the issuer has been advised of the entity having become a holder of the plan and been provided with the entity’s Social Insurance Number or business number, as the case may be; (f) the plan prohibits contributions from being made to the plan at any time if (i) the beneficiary is not a DTC-eligible individual in respect of the taxation year that includes that time, or (ii) the beneficiary died before that time; (g) the plan prohibits a contribution from being made to the plan (other than as a transfer in accordance with subsection (8)) at any time if (i) the beneficiary attained the age of 59 years before the calendar year that includes that time, (ii) the beneficiary is not resident in Canada at that time, or (iii) the total of the contribution and all other contributions made (other than as a transfer in accordance with subsection (8)) at or before that time to the plan or to any other registered disability savings plan of the beneficiary would exceed $200,000; (h) the plan prohibits contributions to the plan by any entity that is not a holder of the plan, except with the written consent of a holder of the plan; Exécution du budget et de l’ (i) the plan provides that no payments may be made from the plan other than (i) disability assistance payments, (ii) a transfer in accordance with subsection (8), and (iii) repayments under the Canada Disability Savings Act; (j) the plan prohibits a disability assistance payment from being made if it would result in the fair market value of the property held by the plan trust immediately after the payment being less than the assistance holdback amount in relation to the plan; (k) the plan provides for lifetime disability assistance payments to begin to be paid no later than the end of the particular calendar year in which the beneficiary attains the age of 60 years or, if the plan is established in or after the particular year, in the calendar year following the calendar year in which the plan is established; (l) the plan provides that the total amount of lifetime disability assistance payments made in any calendar year (other than a specified year for the plan) shall not exceed the amount determined by the formula A/(B + 3 - C) + D where A is the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definition “qualified investment” in subsection 205(1)), B is the greater of 80 and the age in whole years of the beneficiary at the beginning of the calendar year, C is the age in whole years of the beneficiary at the beginning of the calendar year, and D is the total of all amounts each of which is C. 35 Budget and Economic State (i) a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definition “qualified investment” in subsection 205(1)) that is paid to the plan trust in the calendar year, or (ii) if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year; (m) the plan stipulates whether or not disability assistance payments that are not lifetime disability assistance payments are to be permitted under the plan; (n) the plan provides that when the total of all amounts paid under the Canada Disability Savings Act before the beginning of a calendar year to any registered disability savings plan of the beneficiary exceeds the total of all contributions made (other than as a transfer in accordance with subsection (8)) before the beginning of the calendar year to any registered disability savings plan of the beneficiary, (i) if the calendar year is not a specified year for the plan, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not exceed the amount determined by the formula set out in paragraph (l) in respect of the plan for the calendar year, except that, in calculating that total amount, any payment made following a transfer in the calendar year from another plan in accordance with subsection (8) is to be disregarded if it is made (A) to satisfy an undertaking described in paragraph (8)(d), or Exécution du budget et de l’ (B) in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, (ii) if the beneficiary attained the age of 59 years before the calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not be less than the amount determined by the formula set out in paragraph (l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan trust), and (iii) if the beneficiary attained the age of 27 years, but not the age of 59 years, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph (i) and paragraph (j), one or more disability assistance payments be made from the plan to the beneficiary in the calendar year; (o) the plan provides that, at the direction of the holders of the plan, the issuer shall transfer all of the property held by the plan trust (or an amount equal to its value) to another registered disability savings plan of the beneficiary, together with all information in its possession that may reasonably be considered necessary for compliance, in respect of the other plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and (p) the plan provides for any amounts remaining in the plan (after taking into consideration any repayments under the Canada Disability Savings Act) to be paid to the beneficiary or the beneficiary’s estate, as the case may be, and for the plan to be terminated, by the end of the calendar year following the earlier of (i) the calendar year in which the beneficiary dies, and (ii) the taxation year in respect of which the beneficiary ceases to be a DTC-eligible individual. C. 35 Trust not taxable (5) No tax is payable under this Part by a trust on the taxable income of the trust for a taxation year if, throughout the period in the year during which the trust was in existence, the trust was governed by a registered disability savings plan, except that Budget and Economic State (a) tax is payable under this Part by the trust on its taxable income for the year if the trust has borrowed money (i) in the year, or (ii) in a preceding taxation year and has not repaid it before the beginning of the year; and (b) if the trust is not otherwise taxable under paragraph (a) on its taxable income for the year and, at any time in the year, it carries on one or more businesses or holds one or more properties that are not qualified investments (as defined in subsection 205(1)) for the trust, tax is payable under this Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or losses other than from dispositions of those properties, and for this purpose, (i) “income” includes dividends described in section 83, and (ii) paragraphs 38(a) and (b) are to be read as if the fraction set out in each of those paragraphs were replaced by the word “all”. Taxation of disability assistance payments (6) Where a disability assistance payment is made from a registered disability savings plan of a beneficiary, the amount, if any, by which the amount of the payment exceeds the nontaxable portion of the payment shall be included, Exécution du budget et de l’ (a) if the beneficiary is alive at the time the payment is made, in computing the beneficiary’s income for the beneficiary’s taxation year in which the payment is made; and (b) in any other case, in computing the income of the beneficiary’s estate for the estate’s taxation year in which the payment is made. Non-taxable portion of disability assistance payment (7) The non-taxable portion of a disability assistance payment made at a particular time from a registered disability savings plan of a beneficiary is the lesser of the amount of the disability assistance payment and the amount determined by the formula A × B/C where A is the amount of the disability assistance payment; B is the amount, if any, by which (a) the total of all amounts each of which is the amount of a contribution made before the particular time to any registered disability savings plan of the beneficiary (other than as a transfer in accordance with subsection (8)) exceeds (b) the total of all amounts each of which is the non-taxable portion of a disability assistance payment made before the particular time from any registered disability savings plan of the beneficiary; and C is the amount by which the fair market value of the property held by the plan trust immediately before the payment exceeds the assistance holdback amount in relation to the plan. Transfer of funds (8) An amount is transferred from a registered disability savings plan (in this subsection referred to as the “prior plan”) of a beneficiary in accordance with this subsection if C. 35 Budget and Economic State (a) the amount is transferred directly to another registered disability savings plan (in this subsection referred to as the “new plan”) of the beneficiary; (b) the prior plan is terminated immediately after the transfer; (c) the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and (d) where the beneficiary attained the age of 59 years before the calendar year in which the transfer occurs, the issuer of the new plan undertakes to make (in addition to any other disability assistance payments that would otherwise have been made from the new plan in the year) one or more disability assistance payments from the plan in the year, the total of which is equal to the amount, if any, by which (i) the total amount of disability assistance payments that would have been required to be made from the prior plan in the year if the transfer had not occurred exceeds (ii) the total amount of disability assistance payments made from the prior plan in the year. No income inclusion on transfer (9) An amount transferred in accordance with subsection (8) is not, solely because of that transfer, to be included in computing the income of any taxpayer. Noncompliance — cessation of registered status (10) Where, at any particular time, a registered disability savings plan is non-compliant as described in subsection (11), (a) the plan ceases, as of the particular time, to be a registered disability savings plan (other than for the purposes of applying, as of the particular time, this subsection and subsection (11)); Exécution du budget et de l’ (b) a disability assistance payment is deemed to have been made from the plan at the time (in this subsection referred to as the “relevant time”) immediately before the particular time to the beneficiary under the plan (or, if the beneficiary is deceased at the relevant time, to the beneficiary’s estate), the amount of which payment is equal to the amount, if any, by which (i) the fair market value of the property held by the plan trust at the relevant time exceeds (ii) the assistance holdback amount in relation to the plan; and (c) if the plan is non-compliant because of a payment that is not in accordance with paragraph (4)(j), a disability assistance payment is deemed to have been made from the plan at the relevant time (in addition to the payment deemed by paragraph (b) to have been made) to the beneficiary under the plan (or, if the beneficiary is deceased at the relevant time, to the beneficiary’s estate) (i) the amount of which payment is equal to the amount by which the lesser of (A) the assistance holdback amount in relation to the plan, and (B) the fair market value of the property held by the plan trust at the relevant time exceeds (C) the fair market value of the property held by the plan trust immediately after the particular time, and (ii) the non-taxable portion of which is deemed to be nil. Non-compliance (11) A registered disability savings plan is non-compliant (a) at any time that the plan fails to comply with a condition in subsection (4); (b) at any time that there is a failure to administer the plan in accordance with its terms (other than those terms which the plan is required by subparagraph (4)(a)(i) to stipulate); and C. 35 Budget and Economic State (c) at any time that a person fails to comply with a condition or an obligation imposed, with respect to the plan, under the Canada Disability Savings Act, and the specified Minister has notified the Minister that, in the specified Minister’s opinion, it is appropriate that the plan be considered to be noncompliant because of the failure. Non-application of subsection (11) (12) Where a registered disability savings plan would otherwise be non-compliant at a particular time because of a failure described in paragraph (11)(a) or (b), (a) the Minister may waive the application of the relevant paragraph with respect to the failure, if it is just and equitable to do so; (b) the Minister may deem the failure to have occurred at a later time; (c) if the failure consists of the making of a contribution that is prohibited under any of paragraphs (4)(f) to (h), an amount equal to the amount of the contribution has been withdrawn from the plan within such period as is specified by the Minister and the Minister has approved the application of this paragraph with respect to the failure, (i) the contribution is deemed never to have been made, and (ii) the withdrawal is deemed not to be a disability assistance payment and not to be in contravention of the condition in paragraph (4)(i); or (d) if the failure consists of the plan not being terminated as required under paragraph (4)(p) and was due either to the issuer not being aware of the beneficiary having died or having ceased to be a DTC-eligible individual or to some uncertainty as to the beneficiary having ceased to be a DTC-eligible individual, the Minister may specify a later date by which it is reasonable to assume that the plan can be terminated in an orderly manner and, for the purposes of paragraphs (11)(a) and (b), paragraph (4)(p) and the plan terms are to be read as though they required the plan to be terminated by that date. 2007 Obligations of issuer Exécution du budget et de l’ (13) The issuer of a registered disability savings plan shall, (a) where an entity becomes a holder of the plan after the plan is entered into, so notify the specified Minister in prescribed form containing prescribed information on or before the day that is 60 days after the later of (i) the day on which the issuer is advised of the entity having become a holder of the plan, and (ii) the day on which the issuer is provided with the new holder’s Social Insurance Number or business number, as the case may be; (b) not amend the plan before having received notification from the Minister that, in the Minister’s opinion, a plan whose terms are identical to the amended plan would, if entered into by entities eligible to enter into a disability savings plan, comply with the conditions in subsection (4); (c) where the issuer becomes aware that the plan is, or is likely to become, non-compliant (determined without reference to paragraph (11)(c) and subsection (12)), notify the Minister and the specified Minister of this fact on or before the day that is 30 days after the day on which the issuer becomes so aware; and (d) exercise the care, diligence and skill of a reasonably prudent person to minimize the possibility that a holder of the plan may become liable to pay tax under Part XI in connection with the plan. 116. Subsection 149(1) of the Act is amended by adding the following after paragraph (u): Trusts under registered disability savings plans (u.1) a trust governed by a registered disability savings plan to the extent provided by section 146.4; 117. Subsection 153(1) of the Act is amended by adding the following after paragraph (h): (i) a payment from a registered disability savings plan, C. 35 Budget and Economic State 118. The Act is amended by adding the following after section 160.2: Joint and several liability — registered disability savings plan 160.21 (1) Where, in computing income for a taxation year, a taxpayer is required to include an amount in respect of a disability assistance payment (as defined in subsection 146.4(1)) that is deemed by subsection 146.4(10) to have been made at any particular time from a registered disability savings plan, the taxpayer and each holder (as defined in subsection 146.4(1)) of the plan immediately after the particular time are jointly and severally, or solidarily, liable to pay the part of the taxpayer’s tax under this Part for that taxation year that is equal to the amount, if any, determined by the formula A-B where A is the amount of the taxpayer’s tax under this Part for that taxation year; and B is the amount that would be the taxpayer’s tax under this Part for that taxation year if no disability assistance payment were deemed by subsection 146.4(10) to have been paid from the plan at the particular time. No limitation on liability (2) Subsection (1) limits neither (a) the liability of the taxpayer referred to in that subsection under any other provision of this Act, nor (b) the liability of any holder referred to in that subsection for the interest that the holder is liable to pay under this Act on an assessment in respect of the amount that the holder is liable to pay because of that subsection. Rules applicable — registered disability savings plans (3) Where a holder (as defined in subsection 146.4(1)) of a registered disability savings plan has, because of subsection (1), become jointly and severally, or solidarily, liable with a taxpayer in respect of part or all of a liability of the taxpayer under this Act, the following rules apply: Exécution du budget et de l’ (a) a payment by the holder on account of the holder’s liability shall to the extent of the payment discharge the holder’s liability, but (b) a payment by the taxpayer on account of the taxpayer’s liability only discharges the holder’s liability to the extent that the payment operates to reduce the taxpayer’s liability to an amount less than the amount in respect of which the holder was, by subsection (1), made liable. Assessment (4) The Minister may at any time assess a taxpayer in respect of any amount payable because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part. 119. The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following: “adjusted income” « revenu modifié » “adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if no amount were included under paragraph 56(1)(q.1) or subsection 56(6) or in respect of a gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(w), (y) or (z) in computing that income; 120. The Act is amended by adding the following after section 204.94: PART XI TAXES IN RESPECT OF REGISTERED DISABILITY SAVINGS PLANS Definitions “advantage” « avantage » 205. (1) The following definitions apply in this Part. “advantage”, in relation to a registered disability savings plan, means any benefit or loan that is conditional in any way on the existence of the plan other than C. 35 Budget and Economic State (a) a disability assistance payment; (b) a contribution made by, or with the written consent of, a holder of the plan; (c) a transfer in accordance with subsection 146.4(8); (d) an amount paid under the Canada Disability Savings Act; (e) a benefit derived from the provision of administrative or investment services in respect of the plan; or (f) a loan (i) made in the ordinary course of the lender’s ordinary business of lending money if, at the time the loan was made, bona fide arrangements were made for repayment of the loan within a reasonable time, and (ii) whose sole purpose was to enable a person to make a contribution to the plan. “allowable refund” « remboursement admissible » “benefit” « bénéfice » “qualified investment” « placement admissible » “allowable refund” of a person for a calendar year means the total of all amounts each of which is a refund to which the person is entitled under subsection 206.1(4) for the year. “benefit”, in relation to a registered disability savings plan, includes any payment or allocation of an amount to the plan that is represented to be a return on investment in respect of property held by the plan trust, but which cannot reasonably be considered, having regard to all the circumstances, to be on terms and conditions that would apply to a similar transaction in an open market between parties dealing with each other at arm’s length and acting prudently, knowledgeably and willingly. “qualified investment” for a trust governed by a registered disability savings plan means (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered disability savings plan” and if that definition Exécution du budget et de l’ were read without reference to the words “with the exception of excluded property in relation to the trust”; (b) a contract for an annuity issued by a licensed annuities provider where (i) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, and (ii) the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract; (c) a contract for an annuity issued by a licensed annuities provider where (i) annual or more frequent periodic payments are or may be made under the contract to the holder of the contract, (ii) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, (iii) neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the plan, (iv) the day on which the periodic payments began or are to begin is not later than the end of the later of (A) the year in which the beneficiary under the plan attains the age of 60 years, and (B) the year following the year in which the contract was acquired by the trust, (v) the periodic payments are payable for the life of the beneficiary under the plan and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years, C. 35 Budget and Economic State (vi) the periodic payments (A) are equal, or (B) are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and (vii) the contract requires that, in the event the plan must be terminated in accordance with paragraph 146.4(4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; and (d) a prescribed investment. Definitions in subsection 146.4(1) (2) The definitions in subsection 146.4(1) apply in this Part. Tax payable where inadequate consideration 206. (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, a trust governed by the plan (a) disposes of property for consideration less than the fair market value of the property at the time of the disposition, or for no consideration; or (b) acquires property for consideration greater than the fair market value of the property at the time of the acquisition. Amount of tax payable (2) The amount of tax payable in respect of each disposition or acquisition described in subsection (1) is (a) the amount by which the fair market value differs from the consideration; or (b) if there is no consideration, the amount of the fair market value. Exécution du budget et de l’ Liability for tax (3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax. Payment of amount collected to RDSP (4) Where a tax has been imposed under subsection (1) in connection with a registered disability savings plan of a beneficiary, the Minister may pay all or part of any amount collected in respect of the tax to a trust governed by a registered disability savings plan of the beneficiary (referred to in this subsection as the “current plan”) if (a) it is just and equitable to do so having regard to all circumstances; and (b) the Minister is satisfied that neither the beneficiary nor any existing holder of the current plan was involved in the transaction that gave rise to the tax. Deemed not to be a contribution (5) A payment under subsection (4) is deemed not to be a contribution to a registered disability savings plan for the purposes of section 146.4. Tax payable on non-qualified investment 206.1 (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, (a) the trust governed by the plan acquires property that is not a qualified investment for the trust; or (b) property held by the trust governed by the plan ceases to be a qualified investment for the trust. Amount of tax payable (2) The amount of tax payable, (a) in respect of each property described in paragraph (1)(a), is 50% of the fair market value of the property at the time it was acquired by the trust; and (b) in respect of each property described in paragraph (1)(b), is 50% of the fair market value of the property at the time immediately before the time it ceased to be a qualified investment for the trust. C. 35 Liability for tax (3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax. Refund of tax on disposition of non-qualified investment (4) Where in a calendar year a trust governed by a registered disability savings plan disposes of a property in respect of which a tax is imposed under subsection (1), the person or persons who are liable to pay the tax are entitled to a refund for the year of an amount equal to Budget and Economic State (a) except where paragraph (b) applies, the lesser of (i) the amount of the tax so imposed, and (ii) the proceeds of disposition of the property; and (b) nil, (i) if it is reasonable to expect that any of those persons knew or ought to have known at the time the property was acquired by the trust that it was not, or would cease to be, a qualified investment for the trust, or (ii) if the property is not disposed of by the trust before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances. Apportionment of refund (5) Where more than one person is entitled to a refund under subsection (4) for a calendar year in respect of the disposition of a property, the total of all amounts so refundable shall not exceed the amount that would be so refundable for the year to any one of those persons in respect of that disposition if that person were the only person entitled to a refund for the year under that subsection in respect of the disposition. If the persons cannot agree as to what portion of the refund each can so claim, the Minister may fix the portions. Deemed disposition and reacquisition (6) For the purposes of this Act, where at any time property held by a plan trust in respect of which a tax was imposed under subsection (1) subsequently becomes a qualified investment for the trust, the trust is deemed to have Exécution du budget et de l’ disposed of the property at that time for proceeds of disposition equal to its fair market value at that time and to have reacquired it immediately after that time at a cost equal to that fair market value. Tax payable where advantage extended 206.2 (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, an advantage in relation to the plan is extended to a person who is, or who does not deal at arm’s length with, a beneficiary under, or a holder of, the plan. Amount of tax payable (2) The amount of tax payable in respect of an advantage described in subsection (1) is (a) in the case of a benefit, the fair market value of the benefit; and (b) in the case of a loan, the amount of the loan. Liability for tax (3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax. If, however, the advantage is extended by the issuer of the plan or by a person not dealing at arm’s length with the issuer, the issuer is liable to pay the tax and not the holders. Tax payable on use of property as security 206.3 (1) Every issuer of a registered disability savings plan shall pay a tax under this Part for a calendar year if, in the year, with the consent or knowledge of the issuer, a trust governed by the plan uses or permits to be used any property held by the trust as security for indebtedness of any kind. Amount of tax payable (2) The amount of tax payable in respect of each property described in subsection (1) is equal to the fair market value of the property at the time the property commenced to be used as security. Waiver of liability 206.4 If a person would otherwise be liable to pay a tax under this Part for a calendar year, the Minister may waive or cancel all or part of the liability where it is just and equitable to do so having regard to all the circumstances, including C. 35 Budget and Economic State (a) whether the tax arose as a consequence of reasonable error; and (b) the extent to which the transaction which gave rise to the tax also gave rise to another tax under this Part. Return and payment of tax 207. (1) Every person who is liable to pay tax under this Part for a calendar year shall within 90 days after the end of the year (a) file with the Minister a return for the year under this Part in prescribed form and containing prescribed information including (i) an estimate of the amount of tax payable under this Part by the person for the year, and (ii) an estimate of the amount of any refund to which the person is entitled under this Part for the year; and (b) pay to the Receiver General the amount, if any, by which the amount of the person’s tax payable under this Part for the year exceeds the person’s allowable refund for the year. Refund (2) Where a person has filed a return under this Part for a calendar year within three years after the end of the year, the Minister (a) may, on mailing the notice of assessment for the year, refund without application any allowable refund of the person for the year, to the extent that it was not applied against the person’s tax payable under paragraph (1)(b); and (b) shall, with all due dispatch, make the refund referred to in paragraph (a) after mailing the notice of assessment if an application for it has been made in writing by the person within three years after the mailing of an original notice of assessment for the year. 2007 Multiple holders Exécution du budget et de l’ (3) Where two or more holders of a registered disability savings plan are jointly and severally, or solidarily, liable with each other to pay a tax under this Part for a calendar year in connection with the plan, (a) a payment by any of the holders on account of that tax liability shall to the extent of the payment discharge the joint liability; and (b) a return filed by one of the holders as required by this Part for the year is deemed to have been filed by each other holder in respect of the joint liability to which the return relates. Provisions applicable to Part (4) Subsections 150(2) and (3), sections 152 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require. 121. Subsection 212(1) of the Act is amended by adding the following after paragraph (r): Registered disability savings plan (r.1) an amount that would, if the nonresident person had been resident in Canada throughout the taxation year in which the amount was paid, be required by paragraph 56(1)(q.1) to be included in computing the non-resident person’s income for the taxation year; 122. Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.4): (vii.5) to an official solely for the purposes of the administration and enforcement of the Canada Disability Savings Act, 123. (1) Subparagraph (f)(vi) of the definition “disposition” in subsection 248(1) of the Act is replaced by the following: (vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust C. 35 Budget and Economic State described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the transferee is the same type of trust, and (2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: “registered disability savings plan” « régime enregistré d’épargneinvalidité » “registered disability savings plan” has the same meaning as in subsection 146.4(1); 124. Section 253.1 of the Act is replaced by the following: Investments in limited partnerships 253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b), 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership. C.R.C., c. 945 Income Tax Regulations 125. Subsection 221(2) of the Income Tax Regulations is replaced by the following: (2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204 or 205 of the Act, the reporting Exécution du budget et de l’ person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form. 126. (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following: 4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, paragraph (h) of the definition “qualified investment” in section 204 of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is (2) Paragraph 4900(1)(c) of the Regulations is replaced by the following: (c) a share of the capital stock of a mortgage investment corporation that does not hold as part of its property at any time during the calendar year in which the particular time occurs any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the governing plan of the plan trust; (3) Subparagraph 4900(1)(e)(ii) of the Regulations is replaced by the following: (ii) the issuer is not a connected person under the governing plan of the plan trust; (4) The portion of paragraph 4900(1)(g) of the Regulations before subparagraph (i) is replaced by the following: (g) a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a C. 35 Budget and Economic State person who is a connected person under the governing plan of the plan trust, as a result of the ownership by (5) The po rtion of sub parag raph 4900(1)(h)(iii) of the Regulations before clause (A) is replaced by the following: (iii) that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by (6) Paragraph 4900(1)(i.2) of the Regulations is replaced by the following: (i.2) indebtedness of a Canadian corporation (other than a corporation that is a connected person under the governing plan of the plan trust) represented by a bankers’ acceptance; (7) Subparagraph 4900(1)(j)(ii) of the Regulations is replaced by the following: (ii) the debtor (and any partnership that does not deal at arm’s length with the debtor) is not a connected person under the governing plan of the plan trust; (8) The portion of paragraph 4900(1)(q) of the Regulations before subparagraph (i) is replaced by the following: (q) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) where (9) The portion of paragraph 4900(1)(r) of the Regulations before subparagraph (i) is replaced by the following: (r) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) if Exécution du budget et de l’ (10) Subsection 4900(5) of the Regulations is replaced by the following: (5) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered education savings plan or a trust governed by a registered disability savings plan at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year. 127. (1) The definition “governing plan” in subsection 4901(2) of the Regulations is replaced by the following: “governing plan” means a registered retirement savings plan, a registered education savings plan, a registered retirement income fund, a registered disability savings plan, a deferred profit sharing plan or a revoked plan; (régime d’encadrement) (2) Subsection 4901(2) of the Regulations is amended by adding the following in alphabetical order: “connected person”, in relation to a governing plan of a plan trust, means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arms’s length with that person; (personne rattachée) Consequential Amendments 1996, c. 23 2006, c. 4, s. 172 Employment Insurance Act 128. The definition “income” in section 144 of the Employment Insurance Act is replaced by the following: 254 “income” « revenu » C. 35 Budget and Economic State “income” of a person for a period means the amount that would be their income for the period determined under the Income Tax Act if no amount were (a) deductible under paragraphs 60(v.1), (w), (y) and (z) of that Act, (b) included in respect of a gain from a disposition of property to which section 79 of that Act applies, or (c) included under paragraph 56(1)(q.1) or subsection 56(6) of that Act; R.S., c. O-9 2006, c. 4, s. 180 Old Age Security Act 129. Paragraph (e) of the definition “income” in section 2 of the Old Age Security Act is replaced by the following: (e) there shall be deducted from the person’s income for the year any amount included under paragraph 56(1)(q.1) or subsection 56(6) of the Income Tax Act and there shall be included in the person’s income for the year any amount that may be deducted under paragraph 60(y) or (z) of that Act; Coordinating Amendments Bill C-10 130. Sections 131 to 134 apply if Bill C-10, introduced in the 2nd session of the 39th Parliament and entitled the Income Tax Amendments Act, 2006 (referred to in those sections as the “other Act”), receives royal assent. 131. (1) If section 101 of this Act comes into force before section 47 of the other Act, then paragraph 4(3)(a) of the Income Tax Act is replaced by the following: (a) subject to paragraph (b), all deductions permitted in computing a taxpayer’s income for a taxation year for the purposes of this Part, except any deduction permitted by any of paragraphs 60(b) to (o), (p), (r) and (v) to (z), shall apply either wholly or in part to a particular source or to sources in a particular place; and Exécution du budget et de l’ (2) If section 101 of this Act comes into force on the same day as section 47 of the other Act, then that section 47 is deemed to have come into force before that section 101. (3) The replacement of paragraph 4(3)(a) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2007 and subsequent taxation years. 132. (1) If subsection 25 of the other Act comes into force before section 109 of this Act, then paragraph 107.4(1)(j) of the Income Tax Act is replaced by the following: (j) if the contributor is an amateur athlete trust, a cemetery care trust, an employee trust, an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (as defined by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the particular trust is the same type of trust; and (2) If section 25 of the other Act comes into force on the same day as section 109 of this Act, then that section 109 is deemed to have come into force before that section 25. (3) The replacement of paragraph 107.4(1)(j) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2008 and subsequent taxation years. 133. (1) If subsection 130(1) of the other Act comes into force before section 114 of this Act, then (a) that section 114 is deemed never to have come into force and is repealed; and (b) paragraph 132.2(3)(h) of the Income Tax Act is replaced by the following: C. 35 Budget and Economic State (h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g); (2) If section 114 of this Act comes into force before subsection 130(1) of the other Act, then paragraph 132.2(3)(h) of the Income Tax Act is replaced by the following: (h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g); (3) If subsection 130(1) of the other Act comes into force on the same day as section 114 of this Act, then that subsection 130(1) is deemed to have come into force before that section 114 and subsection (1) applies as a consequence. (4) The replacement of paragraph 132.2(3)(h) of the Income Tax Act by the operation of paragraph (1)(b) or subsection (2) or (3) applies in respect of the 2008 and subsequent taxation years. 134. (1) On the first day on which both subsection 191(1) of the other Act and section 124 of this Act are in force, section 253.1 of the Income Tax Act is replaced by the following: 2007 Investments in limited partnerships Exécution du budget et de l’ 253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b), 146.1(2.1)(c), 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership. (2) The replacement of section 253.1 of the Income Tax Act by the operation of subsection (1) applies in respect of the 2008 and subsequent taxation years. Application 135. Sections 101 to 129 apply to the 2008 and subsequent taxation years, except that section 101 also applies to the 2007 taxation year. CANADA DISABILITY SAVINGS ACT Enactment of Act Enactment of Act 136. The Canada Disability Savings Act is enacted as follows: An Act to encourage savings for persons with disabilities SHORT TITLE Short title 1. This Act may be cited as the Canada Disability Savings Act. INTERPRETATION Definitions “Canada Disability Savings Bond” « bon canadien pour l’épargneinvalidité » 2. (1) The following definitions apply in this Act. “Canada Disability Savings Bond” means the bond payable or paid under section 7. 258 “Canada Disability Savings Grant” « subvention canadienne pour l’épargneinvalidité » “child tax benefit” « prestation fiscale pour enfants » “contribution” « cotisation » C. 35 Budget and Economic State “Canada Disability Savings Grant” means the grant payable or paid under section 6. “child tax benefit” means a deemed overpayment under Subdivision a.1 of Division E of Part 1 of the Income Tax Act. “contribution” means any amount paid into the registered disability savings plan of a beneficiary in accordance with section 146.4 of the Income Tax Act but does not include (a) an amount transferred under subsection 146.4(8) of that Act; (b) any prescribed payment referred to in the definition “contribution” in subsection 146.4(1) of that Act; or (c) an amount paid into the plan under this Act. “family income” « revenu familial » “family income” means the income determined by the Minister in accordance with the definition “adjusted income” in section 122.6 of the Income Tax Act by using the information provided by the Minister of National Revenue for that purpose. Income Tax Act expressions (2) Unless a contrary intention appears, in this Act (a) the expressions “adjusted income”, “eligible individual” and “qualified dependant” have the same meanings as in section 122.6 of the Income Tax Act; (b) the expressions “holder”, “issuer” and “registered disability savings plan” have the same meanings as in section 146.4 of that Act; and (c) any other expression has the same meaning as in that Act. PURPOSE Purpose 3. The purpose of this Act is to encourage long term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions. Exécution du budget et de l’ MINISTER Designation of Minister 4. The Governor in Council may, by order, designate a minister of the Crown to be “the Minister” for the purposes of this Act. Informing Canadians 5. The Minister may take any measures that the Minister considers appropriate to make known to Canadians the existence of Canada Disability Savings Grants and Canada Disability Savings Bonds. PAYMENTS Canada Disability Savings Grants 6. (1) Subject to this Act and the regulations, on application, the Minister may, in respect of any contribution made to a registered disability savings plan of a beneficiary, pay a Canada Disability Savings Grant into the plan. The grant is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan. Amount of grant (2) The amount of a Canada Disability Savings Grant that may be paid for a particular year is equal to (a) 300% of the part of the total contributions made in the particular year that is less than or equal to $500, and 200% of the part of those contributions that is more than $500 but less than or equal to $1,500, if the beneficiary is (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to $74,357, (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to $74,357, or (iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or C. 35 Budget and Economic State (b) 100% of the total contributions made in the particular year, up to a maximum of $1,000, in any other case. Family income (3) For the purposes of subparagraph (2)(a)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year. No determination for January (4) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraph (2)(a)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established. Beneficiary born in December (5) In applying subsection (4) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”. Indexing (6) The amount of $74,357 referred to in paragraph (2)(a) is to be adjusted, as set out in section 117.1 of the Income Tax Act, for each year after 2007. Lifetime cap (7) Not more than $70,000 in Canada Disability Savings Grants may be paid in respect of a beneficiary during their lifetime. Canada Disability Savings Bonds 7. (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary. The bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan. Amount of bond (2) The amount of a Canada Disability Savings Bond that may be paid for a particular year is Exécution du budget et de l’ (a) $1,000, if the beneficiary is (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to $20,883, (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to $20,883, or (iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or (b) the amount determined by the formula set out in subsection (4), if the beneficiary is (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than $20,883 but less than $37,178, or (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is more than $20,883 but less than $37,178. Family income (3) For the purposes of subparagraphs (2)(a)(i) and (b)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year. Formula (4) For the purposes of paragraph (2)(b), the formula is as follows: $1,000 - [$1,000 × (A - B) / (C - B)] where A is, as the case may be, the family income referred to in subparagraph (2)(b)(i) or the adjusted income referred to in subparagraph (2)(b)(ii); C. 35 Budget and Economic State B is $20,883; and C is $37,178. Rounding of amounts (5) If an amount calculated under subsection (4) contains a fraction of a cent, the amount is to be rounded to the nearest whole cent or, if the amount is equidistant from two whole cents, to the higher of them. No determination for January (6) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraphs (2)(a)(ii) and (b)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established. Beneficiary born in December (7) In applying subsection (6) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”. Indexing (8) The amounts of $20,883 and $37,178 referred to in subsections (2) and (4) are to be adjusted, as set out in section 117.1 of the Income Tax Act, for each year after 2007. Lifetime cap (9) Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime. Payment 8. Neither a Canada Disability Savings Grant nor a Canada Disability Savings Bond may be paid unless (a) the Minister is provided with, as the case may be, (i) the Social Insurance Number of the beneficiary, (ii) the Social Insurance Number of the eligible individual referred to in subparagraph 6(2)(a)(ii) or 7(2)(a)(ii) or (b)(ii), and (iii) the business number of the department, agency or institution that maintains the beneficiary in respect of whom a Exécution du budget et de l’ special allowance is payable under the Children’s Special Allowances Act for a month in the particular year; and (b) the beneficiary is resident in Canada, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made. Interest 9. The Minister may, in prescribed circumstances, pay interest, calculated as prescribed, in respect of Canada Disability Savings Grants or Canada Disability Savings Bonds. Payments out of CRF 10. All amounts payable by the Minister under this Act shall be paid out of the Consolidated Revenue Fund. Waiver 11. On application made by the holder or the beneficiary, to avoid undue hardship, the Minister may, in prescribed circumstances, waive any of the prescribed requirements of this Act or the regulations that relate to the payment of any amount or the repayment of any amount or earnings generated by that amount. The application must be in the form and manner approved by the Minister. GENERAL Debt due to Her Majesty 12. (1) An amount required to be repaid under this Act, the regulations or an agreement entered into under this Act constitutes a debt due to Her Majesty in right of Canada as of the date on which the Minister issues a written notice to the person responsible for the debt indicating the amount that is due. Recovery of payments and interest (2) Debts due to Her Majesty in right of Canada under this Act are recoverable, including in the Federal Court or any other court of competent jurisdiction, by the Minister of National Revenue. C. 35 Deduction and set-off (3) Despite subsection 14(1), debts due to Her Majesty in right of Canada under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable by Her Majesty in right of Canada to the person responsible for the debt, other than an amount payable under section 122.61 of the Income Tax Act. Deduction and set-off by the Minister 13. Despite subsections 12(2) and 14(1), an amount required to be repaid by a person under this Act, the regulations or an agreement entered into under this Act may be recovered by the Minister at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable under this Act to the person. Limitation or prescription period 14. (1) Subject to this section, no action or proceedings shall be taken to recover debts due to Her Majesty in right of Canada under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the Minister issues the notice referred to in subsection 12(1). Acknowledgement of liability (2) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4), the time during which the limitation or prescription period has run before the acknowledgement does not count in the calculation of that period. Acknowledgement after expiry of limitation or prescription period (3) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (2) and (5), be brought within six years after the date of the acknowledgement. Types of acknowledgements Budget and Economic State (4) An acknowledgement of liability means (a) a written promise to pay the money owing, signed by the person or his or her agent or other representative; Exécution du budget et de l’ (b) a written acknowledgement of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; (c) a part payment by the person or his or her agent or other representative of any money owing; or (d) any acknowledgement of the money owing made by the person, his or her agent or other representative or the trustee or director in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. Limitation or prescription period suspended (5) The running of a limitation or prescription period is suspended during (a) the period beginning on the day on which the Minister receives an application under section 11 and ending on the day on which the Minister issues a decision; (b) the period beginning on the day on which the Minister of National Revenue receives an application concerning subsection 146.4(12) of the Income Tax Act and ending on the day on which that Minister makes a decision; (c) the period beginning on the day on which an application for judicial review, with respect to a decision of the Minister to issue a notice under subsection 12(1), is filed and ending on the day on which the final decision is rendered; and (d) any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover debts due to Her Majesty in right of Canada under this Act. Enforcement proceedings (6) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. Collection of information 15. If the Minister considers it advisable, the Minister may, subject to conditions agreed on by the Minister and the Minister of National C. 35 Budget and Economic State Revenue, collect any prescribed information for the administration of section 146.4 and Part XI of the Income Tax Act. Notification by Minister of National Revenue 16. When the Minister of National Revenue considers that a registered disability savings plan is no longer registered by virtue of the application of paragraph 146.4(10)(a) of the Income Tax Act, the Minister of National Revenue shall as soon as possible notify the Minister in writing. Regulations 17. The Governor in Council may make regulations for carrying out the purpose and provisions of this Act and, without limiting the generality of the foregoing, may make regulations (a) establishing requirements that must be met by a registered disability savings plan and by persons in respect of the plan before a Canada Disability Savings Grant or a Canada Disability Savings Bond may be paid in respect of the plan; (b) establishing the manner of determining the amount of a Canada Disability Savings Grant that may be paid in respect of contributions made to registered disability savings plans or the amount of a Canada Disability Savings Bond that may be paid into those plans; (c) specifying terms and conditions to be included in agreements entered into between an issuer of a registered disability savings plan and the Minister; (d) governing the repayment of any amount paid under this Act or earnings generated by those amounts including providing for the circumstances under which an amount or earnings must be repaid and the manner of calculating such an amount or earnings; (e) specifying the circumstances in which the Minister may pay interest on Canada Disability Savings Grants or Canada Disability Savings Bonds as well as the manner of calculating interest; (f) specifying the requirements of this Act or the regulations relating to the payment of any amount or the repayment of any amount or Exécution du budget et de l’ earnings generated by that amount that may be waived by the Minister to avoid undue hardship; (g) specifying the circumstances in which the Minister may waive the requirements provided under paragraph (f); (h) specifying information that the Minister may collect under section 15; and (i) requiring issuers to keep any record, book or other document containing any information relevant to the administration or enforcement of this Act or the regulations, and respecting where, how and how long it is to be kept. 1992, c. 48 (Sch.) Consequential Amendment to the Children’s Special Allowances Act 2004, c. 26, s. 18 137. Subsection 10(2) of the Children’s Special Allowances Act is replaced by the following: Release of information (2) Any information obtained by or on behalf of the Minister in the course of the administration or enforcement of this Act or the regulations or the carrying out of an agreement entered into under section 11 may be communicated to any person if it can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, the Income Tax Act, the Canada Disability Savings Act or the Canada Education Savings Act or a program administered under an agreement entered into under section 12 of the Canada Education Savings Act. Coming into Force Order in council 138. The provisions of the Canada Disability Savings Act, as enacted by section 136, and section 137 come into force on a day or days to be fixed by order of the Governor in Council. C. 35 Budget and Economic State PART 5 INCENTIVE FOR PROVINCES TO ELIMINATE TAXES ON CAPITAL R.S., c. F-8; 1995, c. 17, s. 45(1) FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 139. The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 8.7: PART IV TRANSFER PAYMENTS WITH RESPECT TO THE ELIMINATION OF PROVINCIAL CAPITAL TAXES Definition of “capital tax” 9. In this Part, “capital tax” means a tax that is imposed on one or more of the following: (a) an element of shareholders’ equity in a corporation such as share capital or retained earnings; (b) a form of long-term indebtedness owed by a corporation; or (c) any other element of capital that the Minister considers appropriate. It does not include (d) a tax imposed under Part VI.1 of the Taxation Act, R.S.Q., c. I-3; (e) a tax imposed under section 74.1 of the Corporations Tax Act, R.S.O. 1990, c. C-40; or (f) any tax that the Minister does not consider to be sufficiently similar to a tax imposed under Part I.3 or VI of the Income Tax Act. Incentive to eliminate capital taxes 10. (1) As an incentive for a province to eliminate capital taxes imposed by the province, the province is eligible to receive a payment under this Part if (a) before January 2, 2011, it eliminates a capital tax that is imposed under a law of the province that was in force on March 18, 2007; and Exécution du budget et de l’ (b) any legislation that is required to give effect to the elimination is enacted after March 18, 2007 and before January 2, 2011. Meaning of elimination (2) For the purposes of this Part, a capital tax is considered to be eliminated if (a) under the law of the province, the tax ceases before January 2, 2011 to be imposed on all corporations, except that the tax may continue to be imposed on any corporation that is exempt from tax under any of paragraphs 149(1)(d) to (d.4) of the Income Tax Act on all of its taxable income; or (b) in the case where the tax is imposed only on financial institutions, the law under which the tax is imposed is amended, before January 2, 2011, to replace the tax with a new capital tax imposed only on financial institutions that meets the following criteria: (i) no financial institution becomes subject to the new capital tax that was not subject to the replaced tax, (ii) every financial institution on which the new capital tax is imposed must be permitted to reduce the amount of the new capital tax payable by it for a taxation year by the amount of income tax payable by it to the province for the year and, if the amount of income tax so payable exceeds the amount of the new capital tax so payable, the financial institution must be permitted to apply the amount of the excess to reduce capital tax payable by it in other taxation years in a manner satisfactory to the Minister, and (iii) the Minister is satisfied that the total amount of revenue that would be raised by the new capital tax from financial institutions if there were no reduction for income tax payable is intended to be broadly commensurate with the total amount of revenue raised from those financial institutions by the province’s income tax. C. 35 Separate capital tax (3) If a province imposes a capital tax that applies to financial institutions as well as corporations that are not financial institutions, the capital tax is deemed to be two separate capital taxes for the purposes of this Part. Amount of payment 11. (1) The amount that a province may be eligible to receive, in respect of a period fixed by the Minister, is equal to 17% of the estimated foregone revenue for that period. Preliminary payment (2) A province is eligible to receive a preliminary payment for a period if the province has provided information in accordance with section 12.01 such that the Minister is able to make a preliminary determination of the estimated foregone revenue for that period. The Minister shall try to make a preliminary payment to the province on or before the last day of the period if the Minister receives the information in a timely manner. Final determination (3) After finalized information that is consistent with a province’s public accounts becomes available so as to enable the Minister to make a final determination of the amount under subsection (1) in respect of a period, the Minister shall do so and reconcile the final determination with any preliminary payment paid to the province. If the amount of the final determination is greater than the preliminary payment, the Minister shall, without delay, pay the difference to the province. However, if the amount of the final determination is less than the preliminary payment, the difference may be deducted from any amount payable to the province under this Act or be recovered from the province as a debt due to Her Majesty in right of Canada. Program time limit (4) For the purposes of determining the amount of a payment under this Part, a period shall not include a day that is before March 19, 2007 or after January 1, 2011. Budget and Economic State Exécution du budget et de l’ 2007 Consolidated Revenue Fund (5) The Minister may pay to a province, out of the Consolidated Revenue Fund, any amount that the province is eligible to receive under this Part. Estimated foregone revenue 12. (1) Except where subsection (2) applies, the estimated foregone revenue for a province in respect of a period is the amount, as determined by the Minister, by which (a) the estimated base revenue, determined as the estimated amount of revenue in respect of a specific capital tax that the province would have received in respect of the period from corporations that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date, exceeds (b) the estimated actual revenue, determined as the estimated amount of revenue in respect of the capital tax that the province receives in respect of the period from corporations that are subject to tax under Part I of the Income Tax Act. Estimated foregone revenue — capital tax on financial institutions (2) In the case of a capital tax that has been eliminated as described in paragraph 10(2)(b), the estimated foregone revenue for a province in respect of a period is the amount determined by the Minister to be the estimated amount of revenue in respect of the capital tax that the province would have received in respect of the period from financial institutions that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date. Provision of information 12.01 (1) No payment may be made to a province under this Part unless the province provides to the Minister all of the information that the Minister considers necessary for the determination of the amount of that payment in accordance with this Part. C. 35 Certification by Minister of province (2) All information provided by a province shall be of the best quality that is available at the time it is provided and shall be certified as such by an appropriate minister of the provincial government. Budget and Economic State PART 6 BANK FOR INTERNATIONAL SETTLEMENTS (IMMUNITY) ACT Enactment of Act 140. The Bank for International Settlements (Immunity) Act is enacted as follows: An Act to provide immunity to the Bank for International Settlements from government measures and from civil judicial process Short title 1. This Act may be cited as the Bank for International Settlements (Immunity) Act. Immunity — government measures 2. The Bank for International Settlements, its property and any property entrusted to it are exempt from the measures referred to in Article 1 of the Protocol regarding the immunities of the Bank for International Settlements that was ratified by Canada on January 20, 1938. Immunity — judicial process 3. (1) The Bank is immune from the jurisdiction of any court in respect of a civil proceeding. Immunity — property (2) The Bank’s property and any property entrusted to it are immune, in respect of any civil proceeding, from attachment and execution. Binding on Her Majesty (3) Subsections (1) and (2) are binding on Her Majesty in right of Canada. Non-application of sections 2 and 3 4. For reasons of national security or for the purposes of the conduct of Canada’s international affairs or the implementation of Canada’s international obligations, the Governor in Council may determine that, to the extent specified by the Governor in Council, (a) the Bank, its property and any property entrusted to it are not exempt under section 2; (b) the Bank is not immune under subsection 3(1); and Exécution du budget et de l’ (c) the Bank’s property and any property entrusted to it are not immune under subsection 3(2). PART 7 PHASED RETIREMENT — AMENDMENTS OTHER THAN THOSE CONCERNING INCOME TAX R.S., c. 32 (2nd Supp.) PENSION BENEFITS STANDARDS ACT, 1985 141. The Pension Benefits Standards Act, 1985 is amended by adding the following after section 16: PHASED RETIREMENT BENEFIT Definitions “phased retirement benefit” « prestation de retraite progressive » “phased retirement period” « période de retraite progressive » 16.1 (1) The following definitions apply in this section. “phased retirement benefit” means a pension benefit that is equal to a portion of the immediate pension benefit to which a person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2). “phased retirement period” means the period in respect of which the phased retirement benefit is to be paid. Phased retirement benefit (2) A pension plan may provide for the payment of a phased retirement benefit. Conditions (3) A phased retirement benefit is only to be paid to a person if (a) the person enters into a written agreement with an employer who contributes to the pension plan from which the phased retirement benefit is to be paid, or with a prescribed administrator, that evidences their consent to its payment; (b) in the case of a person who was receiving a joint and survivor pension benefit prior to the phased retirement period, the person’s spouse or common-law partner who would receive that joint and survivor pension benefit C. 35 Budget and Economic State on the death of the person consents in writing to the cessation of the payment of the joint and survivor pension benefit; (c) the employer provides a copy of the agreement referred to in paragraph (a) to the administrator of the pension plan from which the phased retirement benefit is to be paid; (d) the person accrues a pension benefit during the phased retirement period under circumstances to which subsection 8503(19) of the Income Tax Regulations applies; and (e) the pension plan from which the phased retirement benefit is to be paid has not been terminated. Rules — during phased retirement period (4) During a phased retirement period (a) the person is deemed to be a member; (b) subsection 2(3) does not apply and the person is deemed not to be receiving an immediate pension benefit; (c) the administrator of the pension plan from which the phased retirement benefit is to be paid shall not pay the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2); (d) paragraph 18(1)(b) and subsections 36(1) and (4) do not apply to an agreement or arrangement that may be entered into for the payment of the phased retirement benefit; (e) section 21 does not apply to the calculation of the phased retirement benefit; (f) section 22 does not apply to the phased retirement benefit; and (g) in the case of a person who, prior to the phased retirement period, was receiving an immediate pension benefit from the pension plan from which the phased retirement benefit is to be paid, the administrator of that pension plan shall not pay the immediate pension benefit and an election that was made under subsection 22(5) is void unless it was made under provincial property law within the meaning of subsection 25(1). Rules — after phased retirement period Exécution du budget et de l’ (5) At the end of a phased retirement period (a) the pension benefit accrued during the phased retirement period is to be treated as vested without regard to conditions as to age, period of membership in the pension plan or period of employment; (b) the immediate pension benefit to which the person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2) is, unless otherwise prescribed, to be calculated without regard to the amount of the phased retirement benefit received; (c) an election under subsection 22(5) that is void under paragraph (4)(g) remains void; (d) subsection 26(2) applies as if it contained no reference to “but before the commencement of payment of a pension benefit”; and (e) in the case of a phased retirement period that ends as a result of the death of a person, (i) the person is deemed to have retired for purposes of the survivor benefit, (ii) the person is deemed to have been entitled to the joint and survivor pension benefit payable pursuant to section 22, without regard to subsection 22(5), in respect of the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2), and (iii) subsections 23(5) to (7) apply. 142. Section 39 of the Act is amended by adding the following after paragraph (k): (k.1) respecting phased retirement benefits; COMING INTO FORCE Order in council 143. This Part comes into force on a day to be fixed by order of the Governor in Council. C. 35 Budget and Economic State PART 8 ADVANCE MARKET COMMITMENT Payments 144. (1) In respect of fiscal years beginning on or after April 1, 2008 and for the purpose of Canada’s contribution to the Advance Market Commitment, payments not exceeding in the aggregate the Canadian dollar equivalent of US$200 million — less the C$115 million that was paid under the authority of paragraph (b) of Order in Council P.C. 2007-368, which order was dated March 22, 2007 and made under section 3 of An Act to authorize the Minister of Finance to make certain payments, being chapter 36 of the Statutes of Canada, 2005 — may, on the requisition of the Minister for International Cooperation, be made out of the Consolidated Revenue Fund to international organizations in order to increase the availability of a vaccine for pneumococcal disease. Agreements (2) The Minister for International Cooperation may, subject to any terms or conditions that are established by the Governor in Council on the recommendation of the Minister for International Cooperation and the Minister of Finance, enter into agreements with international organizations for the purpose of the contribution referred to in subsection (1). Exchange rate (3) The rate of exchange that is to be used in order to determine the Canadian dollar equivalent of a payment that is made under subsection (1) is the rate that is determined, by the entity providing foreign banking services to the Receiver General, on the day on which the payment is made. PART 9 OIL AND GAS OPERATIONS IN CANADA R.S., c. O-7; 1992, c. 35, s. 2 CANADA OIL AND GAS OPERATIONS ACT 145. The definition “pipeline” in section 2 of the Canada Oil and Gas Operations Act is replaced by the following: 2007 “pipeline” « pipeline » Exécution du budget et de l’ “pipeline” means any pipe or any system or arrangement of pipes by which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas is conveyed from any well-head or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of the oil, gas or substance and, without restricting the generality of the foregoing, includes offshore installations or vessels, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a distribution system for the distribution of gas to ultimate consumers; 146. Section 2.1 of the Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d): (e) economically efficient infrastructures. 147. The Act is amended by adding the following after section 4: Limitations on pipelines 4.01 (1) A holder of an authorization under paragraph 5(1)(b) to construct or operate a pipeline shall not, without the leave of the National Energy Board, (a) sell, transfer or lease to any person its pipeline, in whole or in part; (b) purchase or lease any pipeline from any person; (c) enter into an agreement for amalgamation with any person; or (d) abandon the operation of a pipeline. C. 35 Definition of “pipeline” (2) For the purposes of paragraph (1)(b), “pipeline” includes a pipeline as defined in section 2 or any other pipeline. Exception (3) Despite paragraph (1)(a), leave shall only be required if the holder sells, transfers or leases any part of its pipeline that is capable of being operated for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas. 1994, c. 10, s. 5 148. Subsection 5.3(1) of the Act is replaced by the following: Board guidelines and interpretation notes 5.3 (1) The National Energy Board may issue and publish, in any manner the Board considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 5, 5.1 or 13.02 or any regulations made under section 13.17 or 14. Budget and Economic State 149. The Act is amended by adding the following after section 5.3: JURISDICTION AND POWERS OF THE NATIONAL ENERGY BOARD Jurisdiction 5.31 (1) The National Energy Board has full and exclusive jurisdiction to inquire into, hear and determine any matter (a) if it appears to the National Energy Board that any person failed to do any act, matter or thing required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5, or that any person has done or is doing any act, matter or thing contrary to or in contravention of this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5; or (b) if it appears to the National Energy Board that the circumstances may require the Board, in the public interest, to make any order or give any direction, leave, sanction or approval that by law it is authorized to make or give, or with respect to any act, matter or thing that is prohibited, sanctioned or required to be done by this Act, any regulation, Exécution du budget et de l’ order or direction made under this Act, or an operating licence or authorization issued under section 5. Of its own motion (2) The National Energy Board may, of its own motion, inquire into, hear and determine any matter or thing that under this Act it may inquire into, hear and determine. Matters of law and fact (3) For the purposes of this Act, the National Energy Board has full jurisdiction to hear and determine all matters, whether of law or of fact. Mandatory orders 5.32 The National Energy Board may (a) order and require any person to do, without delay, or within or at any specified time and in any manner set by the Board, any act, matter or thing that the person is or may be required to do under this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 5; and (b) prohibit the doing or continuing of any act, matter or thing that is contrary to this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 5. Committee’s decisions and orders 5.33 Sections 5.31 and 5.32 do not apply to any act, matter or thing required by or contrary to any decision or order of the Committee. Confidentiality 5.34 In any proceedings with respect to Part 0.1, the National Energy Board may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed in the proceedings if the Board is satisfied that (a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the proceedings, or could reasonably be expected to prejudice the person’s competitive position; or (b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the National Energy Board and C. 35 Budget and Economic State (i) the information has been consistently treated as confidential information by a person directly affected by the proceedings, and (ii) the Board considers that the person’s interest in confidentiality outweighs the public interest in disclosure of the proceedings. Confidentiality — security 5.35 In respect of any order, or in any proceedings, of the National Energy Board with respect to Part 0.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of information that is contained in the order or is likely to be disclosed in the proceedings if the Board is satisfied that (a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, buildings, structures or systems, including computer or communication systems, or methods employed to protect them; and (b) the need to prevent disclosure of the information outweighs the public interest in disclosure of orders and proceedings of the National Energy Board. Conditional orders, etc. 5.36 (1) Without limiting the generality of any provision of this Act that authorizes the National Energy Board to impose terms and conditions in respect of any operating licence or authorization issued under section 5 or any of its orders, the Board may direct in any operating licence, authorization or order that it or any portion or provision of it shall come into force at a future time or on the happening of any contingency, event or condition specified in the operating licence, authorization or order or on the performance to the satisfaction of the Board of any conditions or requirements that the Board may impose in the operating licence, authorization or order, and the Board may direct that the whole or any portion of the operating licence, authorization or order shall have force for a limited time or until the happening of a specified event. 2007 Interim orders Exécution du budget et de l’ (2) The National Energy Board may, instead of making an order final in the first instance, make an interim order, and may reserve its decision pending further proceedings in connection with any matter. DOCUMENTS Documents 5.37 (1) A holder of an authorization to construct or operate a pipeline issued under paragraph 5(1)(b) shall keep, in a form and manner determined by the National Energy Board, any documents, including any records or books of account, that the Board requires and that contain information that is determined by the Board to be necessary for the administration of this Act and any regulations made under it. Production and inspection (2) The holder shall produce those documents to the National Energy Board, or make them available to the Board or its designated representative, for inspection or copying at a time and under conditions set by the Board. 150. The Act is amended by adding the following after section 13: PART 0.1 TRAFFIC, TOLLS AND TARIFFS INTERPRETATION Definitions “holder” « titulaire » “tariff” « tarif » “toll” « droit » 13.01 The following definitions apply in this Part. “holder” means a holder of an authorization to construct or operate a pipeline issued under paragraph 5(1)(b). “tariff” means a schedule of tolls, terms and conditions, classifications, practices or rules and regulations applicable to the provision of a service by a holder and includes rules respecting the calculation of tolls. “toll” includes any rate, charge or allowance charged or made (a) for the shipment, transportation, transmission, care, handling or delivery of oil, gas or any substance, including water, incidental C. 35 Budget and Economic State to the drilling for or production of oil or gas that is transmitted through a pipeline, or for storage or demurrage or the like; (b) for the provision of a pipeline when the pipeline is available and ready to provide for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and (c) in respect of the purchase and sale of gas that is the property of a holder and that is transmitted by the holder through its pipeline, from which is subtracted the cost to the holder of the gas at the point where it enters the pipeline. POWERS OF BOARD Regulation of traffic, etc. 13.02 The National Energy Board may make orders with respect to all matters relating to traffic, tolls or tariffs. FILING OF TARIFF Tolls to be filed 13.03 (1) A holder shall not charge any tolls except tolls that are (a) specified in a tariff that has been filed with the National Energy Board and is in effect; or (b) approved by an order of the Board. Tariff — gas (2) If gas transmitted by a holder through its pipeline is the property of the holder, the holder shall file with the National Energy Board true copies of all the contracts it makes for the sale of the gas, at the time they are made, and any amendments to those contracts made from time to time, and the true copies constitute, for the purposes of this Part, a tariff under subsection (1). Commencement of tariff 13.04 If a holder files a tariff with the National Energy Board and the holder proposes to charge a toll referred to in paragraph (b) of the definition “toll” in section 13.01, the Board may establish the day on which the tariff is to come into effect and the holder shall not begin charging the toll before that day. Exécution du budget et de l’ JUST AND REASONABLE TOLLS Tolls to be just and reasonable 13.05 All tolls shall be just and reasonable and shall always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate. National Energy Board determinations 13.06 The National Energy Board may determine, as questions of fact, whether or not traffic is or has been carried out under substantially similar circumstances and conditions referred to in section 13.05, whether in any case a holder has or has not complied with the provisions of that section, and whether there has, in any case, been unjust discrimination as set out in section 13.1. Interim tolls 13.07 If the National Energy Board has made an interim order authorizing a holder to charge tolls until a specified time or the happening of a specified event, the Board may, in any subsequent order, direct the holder (a) to refund, in a manner satisfactory to the Board, any part of the tolls charged by the holder under the interim order that is in excess of the tolls determined by the Board to be just and reasonable, together with interest on the amount so refunded; or (b) to recover in its tolls, in a manner satisfactory to the Board, the amount by which the tolls determined by the Board to be just and reasonable exceed the tolls charged by the holder under the interim order, together with interest on the amount so recovered. DISALLOWANCE OF TARIFF Disallowance of tariff 13.08 The National Energy Board may disallow any tariff or any portion of any tariff that it considers to be contrary to any of the provisions of this Act or any order of the Board and may require a holder, within a time fixed by the Board, to substitute for it a tariff satisfactory to the Board or may establish other tariffs in lieu of the tariff or the portion so disallowed. C. 35 Suspension of tariff 13.09 The National Energy Board may suspend any tariff or any portion of any tariff before or after the tariff goes into effect. Budget and Economic State DISCRIMINATION No unjust discrimination 13.1 A holder shall not make any unjust discrimination in tolls, service or facilities against any person or locality. Burden of proof 13.11 If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder. No rebates, etc. 13.12 (1) No holder or shipper or an officer or employee, or an agent or mandatary, of a holder or shipper shall (a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination whereby a person obtains transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by a holder at a rate less than that named in the tariffs then in force; or (b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that named in the tariffs then in force. Prosecution (2) No prosecution shall be instituted for an offence under this section without leave of the National Energy Board. CONTRACTS LIMITING LIABILITIES Contracts limiting liability 13.13 (1) Except as provided in this section, no contract, condition or notice made or given by a holder impairing, restricting or limiting its liability in respect of the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included Exécution du budget et de l’ as a term or condition of its tariffs as filed or has been first authorized or approved by order of the National Energy Board. National Energy Board may determine limits (2) The National Energy Board may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section. Terms and conditions (3) The National Energy Board may establish the terms and conditions under which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas may be transmitted by a holder. TRANSMISSION OF OIL OR GAS Duty of holder of an operating licence or authorization under subsection 5(1) 13.14 (1) Subject to any exemptions or conditions that the National Energy Board may establish, a holder operating a pipeline for the transmission of oil shall, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil and any other substance, including water, incidental to the drilling for or production of oil offered for transmission by means of its pipeline. Orders for transmission of commodities (2) The National Energy Board may, by order, on any terms and conditions that it may specify in the order, require a holder operating a pipeline for the transmission of gas to receive, transport and deliver, according to its powers, gas and any other substance, including water, incidental to the drilling for or production of gas offered for transmission by means of its pipeline. Extension of facilities (3) If the National Energy Board finds that no undue burden will be placed on the holder by requiring the holder to do so and if it considers it necessary or desirable to do so in the public interest, the Board may require a holder operating a pipeline for the transmission of oil or gas to provide adequate and suitable facilities for (a) the receipt, transmission and delivery of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas offered for transmission by means of its pipeline; C. 35 Budget and Economic State (b) the storage of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and (c) the junction of its pipeline with other facilities for the transmission of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas. TRANSMISSION AND SALE OF GAS Extension of services of gas pipeline companies 13.15 (1) If the National Energy Board considers it necessary or desirable to do so in the public interest, it may direct a holder operating a pipeline for the transmission of gas to extend or improve its transmission facilities to provide facilities for the junction of its pipeline with any facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public, and for those purposes to construct branch lines to communities immediately adjacent to its pipeline, if the Board finds that to do so will not place an undue burden on the holder. Limitation on extension (2) Subsection (1) does not empower the National Energy Board to compel a holder to sell gas to additional customers if to do so would impair its ability to render adequate service to its existing customers. Holder’s powers 13.16 A holder may, for the purposes of its undertaking and subject to the provisions of this Act, transmit oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by pipeline and regulate the time and manner in which it shall be transmitted and the tolls to be charged for the transmission. REGULATIONS Regulations 13.17 The Governor in Council may make regulations for the purposes of this Part, designating as oil or gas any substance resulting from the processing or refining of hydrocarbons or coal if that substance (a) is asphalt or a lubricant; or Exécution du budget et de l’ (b) is a suitable source of energy by itself or when it is combined or used in association with something else. CONSEQUENTIAL AMENDMENTS R.S., c. 36 (2nd Supp.) Canada Petroleum Resources Act 1994, c. 10, s. 18 151. Subsection 101(2) of the Canada Petroleum Resources Act is replaced by the following: Privileged information or documentation (2) Subject to this section, information or documentation is privileged if it is provided for the purposes of this Act or the Canada Oil and Gas Operations Act, other than Part 0.1 of that Act, or any regulation made under either Act, or for the purposes of Part II.1 of the National Energy Board Act, whether or not the information or documentation is required to be provided. R.S., c. N-7 National Energy Board Act 152. Section 18 of the English version of the National Energy Board Act is replaced by the following: General or particular orders 18. Where the Board may make or issue any order or direction or prescribe any terms or conditions or do any other thing in relation to any person, the Board may do so, either generally or in any particular case or class of cases. 153. Paragraph 25(b) of the Act is replaced by the following: (b) a document purporting to be certified by the Secretary, or by any other person authorized by the Board to certify documents for the purposes of this section, and sealed with the seal of the Board stating that a valid and subsisting document of authorization has or has not been issued by the Board to a person or persons named in the certified document, is evidence of the facts stated in it, without proof of the signature or official character of the person appearing to have signed the document and without further proof. C. 35 Budget and Economic State PART 10 1991, c. 22 AMENDMENTS TO THE FARM INCOME PROTECTION ACT 154. (1) The definition “agreement” in section 2 of the Farm Income Protection Act is replaced by the following: “agreement” « accord » “agreement”, unless the context indicates otherwise, means an agreement entered into under subsection 4(1); (2) Section 2 of the Act is amended by adding the following in alphabetical order: “financial institution” « institution financière » “financial institution” has the same meaning as in section 2 of the Bank Act; 155. Paragraph 8(2)(b) of the Act is replaced by the following: (b) Fund No. 2, to which shall be credited all amounts paid in respect of that producer by Canada or a province. 156. The heading “CAISSES ET COMPTE” before section 13 of the French version of the Act is replaced by the following: CAISSES ET COMPTES 157. The heading before section 15 of the Act is replaced by the following: NET INCOME STABILIZATION ACCOUNT IN THE ACCOUNTS OF CANADA 158. Subsection 15(1) of the Act is replaced by the following: Establishment 15. (1) If an agreement that provides for the establishment and administration by the Government of Canada of a net income stabilization account program in respect of an agricultural product or class of agricultural products indicates that the accounts of producers participating in the program are to be in the accounts of Canada, there shall be established in the accounts of Canada a Net Income Stabilization Account. Exécution du budget et de l’ 159. The Act is amended by adding the following after section 15: NET INCOME STABILIZATION ACCOUNTS IN FINANCIAL INSTITUTIONS Agreement with financial institutions 15.1 (1) If an agreement that provides for the establishment of a net income stabilization account program in respect of an agricultural product or class of agricultural products indicates that the accounts of producers participating in the program are to be in financial institutions, the Minister may enter into an agreement with one or more financial institutions to provide for their holding of Net Income Stabilization Accounts of producers participating in the program. Contents — terms and conditions (2) An agreement with a financial institution must set the terms and conditions required for the holding of Net Income Stabilization Accounts including, but not limited to, the prescribed terms and conditions and the following terms and conditions: (a) the financial institution may hold only one Net Income Stabilization Account in respect of any particular producer; and (b) the financial institution may permit withdrawals to be made from a Net Income Stabilization Account only as provided for in the agreement. Contents — additional provisions (3) In addition to the terms and conditions required by subsection (2), an agreement with a financial institution must provide for (a) the nature of the investments that may be held in a Net Income Stabilization Account; (b) the account transactions that the financial institution must perform in accordance with the agreement; (c) the information that must be submitted to the Minister by the financial institution in the periods specified in the agreement; (d) the Minister’s right of access to and right to audit any records held by the financial institution that contain information relating to the Net Income Stabilization Accounts held by it and the manner in which those rights are to be exercised; C. 35 Budget and Economic State (e) the penalties that may be imposed if the financial institution does not comply with the agreement; (f) the terms and conditions respecting the amendment, termination or expiry of the agreement; and (g) the manner of transferring Net Income Stabilization Accounts held by the financial institution on the termination or expiry of the agreement. Limit of one Account (4) A particular producer may hold only one Net Income Stabilization Account at financial institutions at any time in respect of the program to which the Account relates. Payments to Her Majesty (5) A financial institution that holds a Net Income Stabilization Account of a particular producer shall, on the direction of the Minister, pay from the Account to Her Majesty in right of Canada or in right of a province (a) any amount that is owing by the producer in respect of amounts paid into the Account in excess of the producer’s entitlement under the program to which the Account relates or any other program established under this Act; (b) any administrative fees or penalties under the program to which the Account relates or any other program in respect of which amounts were paid into the Account; or (c) all or part of any other amount that is owing by the producer to Her Majesty. No assignments, etc. (6) Except for the purposes of the Agricultural Marketing Programs Act, an amount in a Net Income Stabilization Account of a producer may not be assigned or given as security, and any transaction that purports to do so is void to that extent. Exemption from attachment, etc. (7) An amount in a Net Income Stabilization Account of a producer is exempt from attachment, seizure and execution, except in the case of a producer who has the status of a bankrupt, or if the attachment, seizure or execution is for the purpose of satisfying the provisions of an agreement or court order relating to separation or divorce that provides for the division of the Account into separate Net Income Stabilization Accounts. Exécution du budget et de l’ 160. Subsection 16(1) of the French version of the Act is replaced by the following: Ouverture 16. (1) Est ouvert parmi les comptes du Canada un compte intitulé « caisse d’assurancerevenu » — appelé la caisse au présent article — dans le cas où l’accord prévoit que le fédéral administrera un régime d’assurance-revenu pour un produit agricole ou une catégorie de produits agricoles. PART 11 FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS R.S., c. F-8; 1995, c. 17, s. 45(1) AMENDMENTS TO THE FEDERALPROVINCIAL FISCAL ARRANGEMENTS ACT 2007, c. 29, s. 62 161. The description of D in the definition “total per capita fiscal capacity” in subsection 3.5(1) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following: D is, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act; 162. Section 3.7 of the Act is amended by adding the following after subsection (3): Deemed election — Nova Scotia (3.1) Nova Scotia is deemed, on the day on which this subsection comes into force, to have made the election under subsection (3) in respect of the fiscal year beginning on April 1, 2008. 163. The Act is amended by adding the following after section 3.7: Additional fiscal equalization payment 3.71 (1) If a province makes the election under subsection 3.7(3), an additional fiscal equalization payment for the period referred to in subsection (3) may be paid to that province equal to the amount by which (a) the aggregate of the following amounts: C. 35 Budget and Economic State (i) the aggregate of the fiscal equalization amounts computed under section 3.72 for that province for all fiscal years in the period, (ii) the aggregate of the amounts that would be paid to that province for all fiscal years in the period in accordance with sections 7 to 14 and 21 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year, and (iii) subject to subsection (2), the aggregate of the amounts, with respect to Newfoundland and Labrador, that would be paid to that province for all fiscal years in the period under Part V of the CanadaNewfoundland Atlantic Accord Implementation Act, as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year, and computed in accordance with subsection 174(3) of the Budget and Economic Statement Implementation Act, 2007 if the conditions described in that subsection are met, is greater than (b) the aggregate of the following amounts: (i) the aggregate of the fiscal equalization payments paid to that province for the period, (ii) the aggregate of the amounts paid to that province for the period in accordance with sections 7 to 14 and 21 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, and Exécution du budget et de l’ (iii) the aggregate of the amounts, with respect to Newfoundland and Labrador, paid to that province for the period under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act. Deeming (2) For each fiscal year for which subsection 3.72(4) applies to Newfoundland and Labrador by reason of paragraph 3.72(6)(a), the amount that would be paid to that province under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act is deemed to be zero for the purpose of subparagraph (1)(a)(iii). Definition of “period” (3) For the purpose of subsection (1), “period” means the period beginning on April 1 of the first fiscal year in respect of which the province makes the election under subsection 3.7(3) and ending on the earlier of (a) in the case of (i) Nova Scotia, March 31 of the fiscal year preceding the first fiscal year with respect to which it does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act, and (ii) Newfoundland and Labrador, March 31 of the fiscal year preceding the first fiscal year with respect to which it does not meet the conditions under paragraphs 26(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 28 of that Act, and (b) March 31, 2020. Fiscal equalization amount 3.72 (1) For the purpose of this section and section 3.71, the fiscal equalization amount for a province for a fiscal year is the average of (a) the greater of zero and the amount determined by the formula (A - B) × C C. 35 Budget and Economic State where A is the per capita equalization standard for that fiscal year, B is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, and C is the average annual population of that province for that fiscal year, and (b) the amount determined by the formula D × [(E - F) × G] / H where D is (a) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and (b) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035, E is the five-province per capita equalization standard for that fiscal year determined under subsection (3), F is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, G is the average annual population of that province for that fiscal year, and H is the aggregate of the amount for each of the provinces determined by the formula (I - J) × K where I is the five-province per capita equalization standard for that fiscal year determined under subsection (3), J is the aggregate of the average annual per capita yield in the province for each revenue source for that fiscal year, and K is the average annual population of the province for that fiscal year. Exécution du budget et de l’ Clarification — paragraph (1)(a) (2) For the purposes of paragraph (1)(a), the Minister shall determine the per capita equalization standard for a fiscal year by computing the fiscal equalization amount for each province for that fiscal year in the manner described in that paragraph and shall, in making that determination, ensure that (a) the amount determined by the following formula would be the same with respect to every province for which a fiscal equalization amount is greater than zero: A + (B / C) where A is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, B is the fiscal equalization amount for that province for that fiscal year, and C is the average annual population of that province for that fiscal year; and (b) the aggregate of the fiscal equalization amounts for all provinces for which the fiscal equalization amount is greater than zero for that fiscal year would be equal to (i) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and (ii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035. Clarification — paragraph (1)(b) (3) For the purposes of paragraph (1)(b), (a) the five-province per capita equalization standard for a fiscal year is the amount determined by the formula (A + B + C + D + E ) / F where C. 35 Budget and Economic State A is the product of the average annual population of Ontario for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Ontario for that fiscal year, B is the product of the average annual population of Quebec for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Quebec for that fiscal year, C is the product of the average annual population of Manitoba for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Manitoba for that fiscal year, D is the product of the average annual population of British Columbia for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of British Columbia for that fiscal year, E is the product of the average annual population of Saskatchewan for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Saskatchewan for that fiscal year, and F is the aggregate of the average annual population for that fiscal year of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan; (b) if, for a province, the value determined for F in paragraph (1)(b) is greater than the value determined for E in that paragraph, the difference between those values in relation to that province is deemed to be zero; and (c) if, for a province, the value determined for J in the description of H in paragraph (1)(b) is greater than the value determined for I in that description, the difference between those values in relation to that province is deemed to be zero. Adjustment of revenue to be equalized (4) Subject to subsections (5) and (6), if, for a fiscal year, the fiscal equalization amount for a province determined under subsection (1) is Exécution du budget et de l’ greater than zero and that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years. Nova Scotia (5) For the purpose of calculating the additional fiscal equalization payment that may be paid to Nova Scotia under subsection 3.71(1), (a) subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(3) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); and (b) subsection (4) applies to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years for which that province makes the election under subsection 3.9(5). Newfoundland and Labrador (6) For the purpose of calculating the additional fiscal equalization payment that may be paid to Newfoundland and Labrador under subsection 3.71(1), (a) subsection (4) applies to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(3) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); and C. 35 Budget and Economic State (b) subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection 3.9(1) only for those fiscal years for which that province makes the election under subsection 3.9(5). 164. (1) Subsection 3.9(1) of the Act is amended by adding the following in alphabetical order: “average annual revenue base” « assiette annuelle moyenne » “average annual revenue base” means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula (A + B + C) / 3 where A is the revenue base for the fiscal year that is one year prior to that fiscal year; B is the revenue base for the fiscal year that is two years prior to that fiscal year; and C is the revenue base for the fiscal year that is three years prior to that fiscal year. “national average rate of tax” « taux d’imposition national moyen » “national average rate of tax” means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces. “revenue base” « assiette » “revenue base” means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. “revenue source” « source de revenu » “revenue source” means any of the following sources from which provincial revenues are or may be derived: (a) personal income taxes; (b) corporation income taxes, and revenues derived from government business enterprises that are not included in any other paragraph of this definition; (c) taxes on capital of corporations; Exécution du budget et de l’ (d) general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes; (e) tobacco taxes; (f) motive fuel taxes derived from the sale of gasoline; (g) motive fuel taxes derived from the sale of diesel fuel; (h) non-commercial motor vehicle licensing revenues; (i) commercial motor vehicle licensing revenues; (j) alcoholic beverage revenues; (k) hospital and medical care insurance premiums; (l) forestry revenues; (m) conventional new oil revenues; (n) conventional old oil revenues; (o) heavy oil revenues; (p) mined oil revenues; (q) light and medium third tier oil revenues; (r) heavy third tier oil revenues; (s) revenues from domestically sold natural gas and exported natural gas; (t) sales of Crown leases and reservations on oil and natural gas lands; (u) oil and gas revenues other than those described in paragraphs (m) to (t); (v) mining revenues; (w) water power rentals; (x) insurance premium taxes; (y) payroll taxes; (z) provincial and local government property taxes; (z.1) race track taxes; (z.2) revenues from lottery ticket sales; (z.3) revenues, other than those described in paragraphs (z.1) and (z.2), from games of chance; C. 35 Budget and Economic State (z.4) miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government revenues from sales of goods and services, and miscellaneous local government taxes and revenues; and (z.5) revenues of the Government of Canada from any of the sources referred to in this definition that are shared by Canada with the provinces. “revenue to be equalized” « revenu sujet à péréquation » “revenue to be equalized” means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations. 2007, c. 29, s. 62 (2) Subsections 3.9(2) to (7) of the Act are replaced by the following: Deduction in computing revenue to be equalized (2) In computing the revenue to be equalized from personal incomes taxes — referred to in paragraph (a) of the definition “revenue source” in subsection (1) — for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act. Municipal property taxes and miscellaneous revenues and taxes Exécution du budget et de l’ (3) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year from the revenue sources referred to in paragraphs (a) and (b), the following are deemed to be revenues derived by that province for that fiscal year from those revenue sources: (a) in the case of the part of the revenue source referred to in paragraph (z) of the definition “revenue source” in subsection (1) that consists of local government property taxes, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to levy property taxes for the financial year of each such local authority ending in that fiscal year; and (b) in the case of the part of the revenue source referred to in paragraph (z.4) of the definition “revenue source” in subsection (1) that consists of local government revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year. Adjustment of revenue to be equalized (4) Subject to subsection (5), if, for a fiscal year, a province would be entitled to receive a fiscal equalization payment under section 3.6, computed as if that section applied to that province, and if that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise C. 35 Budget and Economic State determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years. Election (5) In order for subsection (4) to apply to Nova Scotia or to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” in subsection (1), Nova Scotia or Newfoundland and Labrador, as the case may be, shall make an election at the prescribed time and in the prescribed manner. Validity of election (6) An election under subsection (5) by Nova Scotia or Newfoundland and Labrador in respect of a fiscal year is not valid if it has made an election under subsection 3.7(3) for that fiscal year or any previous fiscal year or if it makes an election under subsection 3.7(3) for that fiscal year. Effect of election under subsection (5) (7) Despite any provision of the CanadaNewfoundland Atlantic Accord Implementation Act, if Newfoundland and Labrador makes the election described in subsection (5) for a fiscal year, the fiscal equalization offset payment that may otherwise be payable to the province under that Act is, for that fiscal year, zero. 2007, c. 29, s. 62 165. Sections 3.91 to 3.93 of the Act are replaced by the following: Time of calculation — ss. 3.2 to 3.4 3.91 (1) At a time determined by the Minister, no later than three months before the beginning of a fiscal year, the Minister shall calculate (a) the fiscal equalization payment that may be paid to a province under sections 3.2 to 3.4 for that fiscal year on the basis that the province makes an election under subsection 3.2(2) for that fiscal year; and (b) the fiscal equalization payment that may be paid to the province under those sections for that fiscal year on the basis that the province does not make an election under that subsection for that fiscal year. Deeming (2) Subsection (1) applies to Nova Scotia and Newfoundland and Labrador as if sections 3.2 to 3.4 applied to each of those provinces. 2007 Time of calculation — s. 3.6 Exécution du budget et de l’ (3) At a time determined by the Minister, no later than three months before the end of a fiscal year, the Minister shall calculate (a) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that both make an election under subsection 3.9(5) for that fiscal year; (b) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that only Nova Scotia makes an election under subsection 3.9(5) for that fiscal year; (c) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that only Newfoundland and Labrador makes an election under subsection 3.9(5) for that fiscal year; and (d) the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that neither makes an election under subsection 3.9(5) for that fiscal year. Cessation (4) Subsection (3) ceases to apply in respect of Nova Scotia or Newfoundland and Labrador if section 3.6 ceases to apply in respect of that province. Time of calculation — s. 3.72 (5) The fiscal equalization amounts referred to in section 3.72 for a fiscal year shall be calculated no later than three months before the end of the fiscal year. Underpayment 3.92 If the Minister determines that the Minister has underpaid any amounts payable to a province under this Part, the Minister may, within the prescribed time and in the prescribed manner, pay that province an amount equal to the underpayment. Overpayment 3.93 If the Minister determines that the Minister has overpaid any amounts paid to a province under this Part, the Minister may recover the amount of that overpayment C. 35 Budget and Economic State (a) within the prescribed time and in the prescribed manner, from any amount payable under this Act to that province; or (b) from that province as a debt due to Her Majesty in right of Canada. 166. The Act is amended by adding the following after section 3.95: Day of election 3.96 An election under this Part is deemed to have been made on the day on which the election is received by the Minister. Deeming — final computation 3.97 For the purpose of the Canada-Newfoundland Atlantic Accord Implementation Act and the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, the final computation of the amount of the fiscal equalization payment for a fiscal year is deemed to have been made on March 31 of that fiscal year. 2007, c. 29, s. 62 167. Sections 4.4 and 4.5 of the Act are replaced by the following: Underpayment 4.4 If the Minister determines that the Minister has underpaid any amounts payable to a territory under this Part, the Minister may, within the prescribed time and in the prescribed manner, pay that territory an amount equal to the underpayment. Overpayment 4.5 If the Minister determines that the Minister has overpaid any amounts paid to a territory under this Part, the Minister may recover the amount of that overpayment (a) within the prescribed time and in the prescribed manner, from any amount payable under this Act to that territory; or (b) from that territory as a debt due to Her Majesty in right of Canada. 1997, c. 10, s. 264(1); 2007, c. 29, s. 73 168. Paragraphs 40(a.2) to (b) of the Act are replaced by the following: (a.2) providing for the provincial or territorial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in each paragraph of the definition “revenue source” in subsections 3.5(1), 3.9(1) and 4(1); Exécution du budget et de l’ (a.3) amending the definition “revenue source” in subsection 3.9(1) by dividing a revenue source set out in a paragraph of that definition into two or more separate revenue sources; (b) respecting the calculation and payment to a province of advances on account of any amount that may become payable to the province under this Act, an administration agreement, a reciprocal taxation agreement or a sales tax harmonization agreement and the adjustment, by way of reduction or set off, of other payments to the province because of those advances; (b.1) respecting the recovery of overpayments; 2007, c. 29 AMENDMENTS TO THE BUDGET IMPLEMENTATION ACT, 2007 169. Section 78 of the Budget Implementation Act, 2007 is repealed. 170. Section 83 of the Act and the heading before it are repealed. 171. Section 84 of the Act is replaced by the following: Newfoundland and Labrador 84. (1) Sections 79 and 82 come into force, or are deemed to have come into force, on April 1 of the first fiscal year in respect of which Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act. Notice (2) The Minister of Finance shall publish in the Canada Gazette the date on which sections 79 and 82 come into force. Nova Scotia (3) Section 81 comes into force, or is deemed to have come into force, on April 1, 2008. 1987, c. 3 2004, c. 22, s. 6 CONSEQUENTIAL AMENDMENT TO THE CANADA-NEWFOUNDLAND ATLANTIC ACCORD IMPLEMENTATION ACT 172. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following: C. 35 Calculation 220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of Budget and Economic State (a) the amount, if any, by which (i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, is less than (ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent, (iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or (iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent of the aggregate of (v) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year immediately preceding the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Exécution du budget et de l’ Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, as if (A) in the case where the province makes the election under subsection 3.2(2) of that Act for the fiscal year, the province made the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, or (B) in the case where the province does not make the election under subsection 3.2(2) of that Act for the fiscal year, the province did not make the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, and (vi) the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and (b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year immediately preceding the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year, as that paragraph read for that fiscal year, is greater than (ii) the aggregate of (A) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, as if C. 35 Budget and Economic State (I) in the case where the province makes the election under subsection 3.2(2) of that Act for the fiscal year, the province made the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, or (II) in the case where the province does not make the election under subsection 3.2(2) of that Act for the fiscal year, the province did not make the election under subsection 3.2(2) of that Act for the fiscal year immediately preceding the fiscal year, and (B) the amount computed in accordance with paragraph (a) for the fiscal year. TRANSITIONAL PROVISIONS Calculation re fiscal year 2008-2009 173. If section 165 of this Act comes into force after a calculation has already been made under section 3.91 of the FederalProvincial Fiscal Arrangements Act of the fiscal equalization payment that may be paid to a province under section 3.6 of that Act for the fiscal year beginning on April 1, 2008, the Minister of Finance may, under section 3.91 of that Act, as enacted by section 165 of this Act, recalculate the fiscal equalization payment that may be paid to the province under section 3.6 of the Federal-Provincial Fiscal Arrangements Act for that fiscal year. Effect of election by Newfoundland and Labrador — fiscal year 2007-2008 174. (1) For the fiscal year that begins on April 1, 2007, if Newfoundland and Labrador makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, (a) section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act shall be read as follows: 220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of (a) the amount, if any, by which Exécution du budget et de l’ (i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, is less than (ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent, (iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or (iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and (b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which C. 35 Budget and Economic State (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year is greater than (ii) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year. (b) a reference to “average” in section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act, except within the expression “national average per capita fiscal capacity”, shall be considered to mean a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%; and (c) the definition “fiscal equalization payment” in section 18 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows: “fiscal equalization payment” means (a) for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and Exécution du budget et de l’ (b) for the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula A + B + (C / F) where A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act. Effect of election by Nova Scotia — fiscal year 2007-2008 (2) For the fiscal year that begins on April 1, 2007, if Nova Scotia makes the election under subsection 3.7(1) of the Federal-Provincal Fiscal Arrangements Act, the definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows: “fiscal equalization payment” means (a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and (b) for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula A + B + (C / F) where A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act. C. 35 Effect of election by Newfoundland and Labrador — fiscal year 2008-2009 (3) For the fiscal year that begins on April 1, 2008, if Newfoundland and Labrador does not make the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act and made, in respect of the preceding fiscal year, the election under subsection 3.7(1) of that Act, Budget and Economic State (a) the portion of paragraph 220(a) of the Canada-Newfoundland Atlantic Accord Implementation Act after subparagraph (iv) shall be read as follows: of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under section 3.1 of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and (b) subparagraph 220(b)(i) of that Act shall be read as follows: (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under section 3.1 of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year Exécution du budget et de l’ COMING INTO FORCE Newfoundland and Labrador 175. (1) Section 172 comes into force, or is deemed to have come into force, on April 1 of the first fiscal year in respect of which Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act. Notice (2) The Minister of Finance shall publish in the Canada Gazette the date on which section 172 comes into force. PART 12 2004, c. 26 AMENDMENTS TO THE CANADA EDUCATION SAVINGS ACT 176. The Canada Education Savings Act is amended by adding the following after section 12: Collection of information 12.1 If the Minister considers it advisable, the Minister may, subject to conditions agreed on by the Minister and the Minister of National Revenue, collect the Social Insurance Number of any registered education savings plan subscriber as well as any prescribed information, for the administration of section 146.1 and Parts X.4 and X.5 of the Income Tax Act. 177. Section 13 of the Act is amended by striking out the word “and” at the end of paragraph (j), by adding the word “and” at the end of paragraph (k) and by adding the following after paragraph (k): (l) specifying information that the Minister may collect under section 12.1. PART 13 PRIVATE-PUBLIC PARTNERSHIPS Payments 178. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, a sum not exceeding five million dollars, to an entity designated by the Minister of Finance, to facilitate publicprivate partnership projects in respect of that entity’s operating and capital expenditures for each of fiscal years 2007-2008 and 20082009. C. 35 Budget and Economic State PART 14 TAX AMENDMENTS TO IMPLEMENT THE 2007 ECONOMIC STATEMENT AMENDMENTS RELATING TO INCOME TAX R.S., c. 1 (5th Supp.) Income Tax Act 179. (1) Paragraph 117(2)(a) of the Income Tax Act is replaced by the following: (a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $36,378; (2) Subsection (1) applies to the 2007 and subsequent taxation years. 180. (1) Paragraphs 118(3.1)(c) to (f) of the Act are replaced by the following: (c) for the 2007 and 2008 taxation years, to be replaced by $9,600; (d) for the 2009 taxation year, to be replaced by $10,100; and (e) for each of the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under this subsection in respect of the amount for the immediately preceding taxation year. (2) Paragraphs 118(3.2)(c) to (f) of the Act are replaced by the following: (c) for the 2007 and 2008 taxation years, to be replaced by $9,600; (d) for the 2009 taxation year, to be replaced by $10,100; and (e) for each of the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection Exécution du budget et de l’ 117.1(3)) to the amount determined under this subsection in respect of the amount for the immediately preceding taxation year. (3) Subsections (1) and (2) apply to the 2007 and subsequent taxation years. 181. (1) Paragraphs (b) to (e) of the definition “general rate reduction percentage” in subsection 123.4(1) of the Act are replaced by the following: (b) that proportion of 8.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year, (c) that proportion of 9% that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year, (d) that proportion of 10% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year, (e) that proportion of 11.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and (f) that proportion of 13% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year. (2) Subsection (1) applies to the 2008 and subsequent taxation years. 182. (1) Paragraphs 125(1.1)(b) and (c) of the Act are replaced by the following: (b) that proportion of 17% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year. (2) Subsection (1) applies to the 2008 and subsequent taxation years. C. 35 Budget and Economic State AMENDMENTS TO IMPLEMENT THE GST/HST RATE REDUCTION R.S., c. E-15 2006, c. 4, s. 2(1) Excise Tax Act 183. (1) The description of G in paragraph (a) of the definition “basic tax content” in subsection 123(1) of the Excise Tax Act is amended by striking out the word “and” at the end of clause (A) and by replacing clause (B) with the following: (B) 6%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and (C) 5%, in any other case, 2006, c. 4, s. 2(2) (2) The description of P in paragraph (b) of the definition “basic tax content” in subsection 123(1) of the Act is amended by striking out the word “and” at the end of clause (A) and by replacing clause (B) with the following: (B) 6%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and (C) 5%, in any other case, (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 3(1) 184. (1) Subsection 165(1) of the Act is replaced by the following: 2007 Imposition of goods and services tax Exécution du budget et de l’ 165. (1) Subject to this Part, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply. (2) Subsection (1) applies (a) to any supply (other than a supply deemed under section 191 of the Act to have been made) made on or after January 1, 2008; (b) for the purposes of calculating tax in respect of any supply (other than a supply by way of sale of real property) made before January 1, 2008, but only in respect of the portion of the tax that (i) becomes payable on or after January 1, 2008, without having been paid before that day, or (ii) is paid on or after January 1, 2008, without having become payable; (c) for the purposes of calculating tax in respect of any supply (other than a supply deemed under Part IX of the Act to have been made) by way of sale of real property made before January 1, 2008, if ownership and possession of the property are transferred on or after January 1, 2008, to the recipient under the agreement for the supply, unless the supply is a supply of a residential complex pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before October 30, 2007; (d) for the purposes of determining, under section 181.1 of the Act, tax or an input tax credit in respect of a supply of property or a service in respect of which tax became payable on or after January 1, 2008; (e) for the purposes of the description of A in clause 184.1(2)(d)(i)(A) of the Act in respect of a person acting as a surety under a performance bond in respect of a contract for a particular taxable supply of construction services if a contract payment (within the meaning of paragraph 184.1(2)(a) of the Act) becomes due or is C. 35 Budget and Economic State paid without having become due to the person on or after January 1, 2008, by reason of the person carrying on the particular construction; (f) to any supply by way of sale of a residential complex, which is a single unit residential complex (as defined in subsection 123(1) of the Act) or a residential condominium unit, deemed under subsection 191(1) of the Act to have been made on or after January 1, 2008, unless the supply is deemed to have been made as a consequence of the builder giving possession of the complex to a person under an agreement, entered into on or before October 30, 2007, for the supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated; (g) to any supply by way of sale of a residential condominium unit deemed under subsection 191(2) of the Act to have been made on or after January 1, 2008, unless possession of the unit was given to the particular person referred to in that subsection before January 1, 2008; (h) to any supply by way of sale of a residential complex deemed under subsection 191(3) of the Act to have been made on or after January 1, 2008, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the complex to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex and (i) the agreement was entered into on or before October 30, 2007, or (ii) another agreement for the supply by way of sale of the building or part of it forming part of the complex was entered into by the builder and another person (A) on or before May 2, 2006, and that other agreement was not terminated before July 1, 2006, or Exécution du budget et de l’ (B) on or before October 30, 2007, and that other agreement was not terminated before January 1, 2008; (i) to any supply by way of sale of an addition to a residential complex deemed under subsection 191(4) of the Act to have been made on or after January 1, 2008, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the addition to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex and (i) the agreement was entered into on or before October 30, 2007, or (ii) another agreement for the supply by way of sale of the building or part of it forming part of the addition was entered into by the builder and another person (A) on or before May 2, 2006, and that other agreement was not terminated before July 1, 2006, or (B) on or before October 30, 2007, and that other agreement was not terminated before January 1, 2008; (j) for the purposes of calculating tax on the cost to another person of supplying property or a service to a financial institution under paragraph (c) of the description of A in subsection 225.2(2) of the Act for a reporting period of the financial institution that ends on or after January 1, 2008; (k) for the purposes of the description of E in subsection 225.2(2) of the Act in determining the net tax of a financial institution for a reporting period that ends on or after January 1, 2008; (l) for the purposes of the description of A in subsection 253(1) and subparagraphs 253(2)(a)(ii) and (c)(ii) of the Act in determining the amount of a rebate payable under subsection 253(1) of the Act for a calendar year after 2007; C. 35 Budget and Economic State (m) for the purposes of subparagraphs (i) and (ii) of the description of C in subsection 21.3(2) of the Streamlined Accounting (GST/HST) Regulations in determining, pursuant to that subsection, an amount of tax that became payable, or was paid without having become payable, by a registrant during reporting periods ending after 2007, except that for the reporting period of the registrant that includes January 1, 2008, the formula and the descriptions of A, B, C and D in that subsection shall be read as follows: (A × B) + (C × D) where A is (a) if tax under subsection 165(2) or section 212.1 of the Act was payable in respect of the supply or importation, 14/114, and (b) in any other case, 6/106, B is the total of all amounts each of which is (a) the consideration that became due, or was paid without having become due, by the registrant during that period but before January 1, 2008, in respect of the supply of the property or service to the registrant, (b) the tax under Division II or III that became payable, or was paid without having become payable, by the registrant during that period but before January 1, 2008, in respect of the supply or importation of the property or service, (c) in the case of tangible personal property that was imported by the registrant, the amount of a tax or duty imposed in respect of the property under the Act (other than Part IX), the Customs Act, the Special Import Measures Act or any other law relating to customs, that became due or was paid without having become due, by the registrant during that period but before January 1, 2008, Exécution du budget et de l’ (d) the amount of a tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that became due, or was paid without having become due, by the registrant during that period but before January 1, 2008, in respect of the property or service, other than tax imposed under an Act of a legislature of a province to the extent that the tax is recoverable by the registrant under that Act, (e) a reasonable gratuity paid by the registrant during that period but before January 1, 2008, in connection with the supply, or (f) interest, a penalty or other amount paid by the registrant during that period but before January 1, 2008, if the amount was charged to the registrant by the supplier because an amount of consideration, or an amount of a tax, duty or fee referred to in paragraph (c) or (d), that was payable in respect of the supply or importation was overdue, C is (a) if tax under subsection 165(2) or section 212.1 of the Act was payable in respect of the supply or importation, 13/113, and (b) in any other case, 5/105, and D is the total of all amounts each of which is (a) the consideration that became due, or was paid without having become due, by the registrant during that period but on or after January 1, 2008, in respect of the supply of the property or service to the registrant, (b) the tax under Division II or III that became payable, or was paid without having become payable, by the registrant during that period but on or after January 1, 2008, in respect of the supply or importation of the property or service, (c) in the case of tangible personal property that was imported by the registrant, the amount of a tax or duty imposed C. 35 Budget and Economic State in respect of the property under the Act (other than Part IX), the Customs Act, the Special Import Measures Act or any other law relating to customs, that became due, or was paid without having become due, by the registrant during that period but on or after January 1, 2008, (d) the amount of a tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that became due, or was paid without having become due, by the registrant during that period but on or after January 1, 2008, in respect of the property or service, other than tax imposed under an Act of a legislature of a province to the extent that the tax is recoverable by the registrant under that Act, (e) a reasonable gratuity paid by the registrant during that period but on or after January 1, 2008, in connection with the supply, or (f) interest, a penalty or other amount paid by the registrant during that period but on or after January 1, 2008, if the amount was charged to the registrant by the supplier because an amount of consideration, or an amount of a tax, duty or fee referred to in paragraph (c) or (d), that was payable in respect of the supply or importation was overdue. (n) for the purposes of subparagraphs (i) and (ii) of the description of C in paragraph 21.3(4)(b) of the Streamlined Accounting (GST/HST) Regulations in determining an amount excluded under subsection 21.3(4) of those Regulations from the determination of an input tax credit in respect of a passenger vehicle for which tax on the acquisition or importation first became payable or was first paid without having become payable after 2007; and (o) for the purposes of determining or calculating any of the following amounts if none of paragraphs (a) to (n) applies: Exécution du budget et de l’ (i) tax on or after January 1, 2008, (ii) tax that is not payable but would have been payable on or after January 1, 2008, in the absence of certain circumstances described in the Act, and (iii) an amount or a number, at any time on or after January 1, 2008, by or in accordance with an algebraic formula that makes reference to the rate set out in subsection 165(1) of the Act. (3) Despite paragraph (2)(e) and for the purposes of the description of A in clause 184.1(2)(d)(i)(A) of the Act in determining the total amount of all input tax credits in respect of direct inputs (within the meaning of paragraph 184.1(2)(c) of the Act), where a surety is carrying on a particular construction of real property situated in Canada as full or partial satisfaction of the surety’s obligation under a bond, a contract payment (within the meaning of paragraph 184.1(2)(a) of the Act), other than a contract payment that is not in respect of the particular construction, becomes due or is paid without having become due before January 1, 2008, and another contract payment (within the meaning of paragraph 184.1(2)(a) of the Act), other than a contract payment that is not in respect of the particular construction, becomes due on or after that day, without having been paid before that day, or is paid C. 35 Budget and Economic State without having become due on or after that day, clause 184.1(2)(d)(i)(A) of the Act shall be read as follows: (A) the amount determined by the formula (A × B) + (C × D) + (E × F) where A is (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of 7% and the rate of tax for that participating province, and (II) in any other case, 7%, B is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due before July 1, 2006, or are paid, without having become due, to the surety before that day, C is (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of 6% and the rate of tax for the participating province, and (II) in any other case, 6%, D is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due on or after July 1, 2006, and before January 1, 2008, without having been paid before July 1, 2006, or are paid, without having become due, to the surety on or after that day and before January 1, 2008, E is (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participatExécution du budget et de l’ ing province, the total of 5% and the rate of tax for the participating province, and (II) in any other case, 5%, and F is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due on or after January 1, 2008, without having been paid before that day, or are paid, without having become due, to the surety on or after that day 2006, c. 4, s. 4(1) 185. (1) The description of A in clause 173(1)(d)(vi)(B) of the Act is replaced by the following: A is (I) where 1. the benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in a participating province, or 2. the benefit amount is required under subsection 15(1) of that Act to be included in computing the individual’s income and the individual is resident in a participating province at the end of the year, the total of 4% and the tax rate for the participating province, and (II) in any other case, 4%, (2) Subsection (1) applies to the 2008 and subsequent taxation years of an individual. C. 35 2006, c. 4, s. 19(1) 186. (1) Section 212 of the Act is replaced by the following: Imposition of goods and services tax 212. Subject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 5% on the value of the goods. Budget and Economic State (2) Subsection (1) applies to goods imported into Canada, or released (as defined in the Customs Act), on or after January 1, 2008. 2006, c. 4, s. 20(1) 187. (1) Section 218 of the Act is replaced by the following: Imposition of goods and services tax 218. Subject to this Part, every recipient of an imported taxable supply shall pay to Her Majesty in right of Canada tax calculated at the rate of 5% on the value of the consideration for the imported taxable supply. (2) Subsection (1) applies (a) to any imported taxable supply made on or after January 1, 2008; (b) for the purposes of calculating tax in respect of any imported taxable supply made before January 1, 2008, but only in respect of consideration that becomes due on or after that day without having been paid before that day or that is paid, without having become due, on or after January 1, 2008; and (c) if neither paragraph (a) nor (b) applies, for the purposes of determining or calculating tax that is not payable but would have been payable on or after January 1, 2008, in the absence of certain circumstances described in the Act. 2006, c. 4, s. 24(1) 188. (1) Paragraph 254(2)(h) of the Act is replaced by the following: (h) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and Exécution du budget et de l’ 2007 2006, c. 4, s. 24(2) (2) The description of A in paragraph 254(2)(i) of the Act is replaced by the following: A is the lesser of $6,300 and 36% of the total tax paid by the particular individual, and (3) Subsections (1) and (2) apply to any rebate in respect of a supply by way of sale of a residential complex in respect of which ownership is transferred on or after January 1, 2008, to the particular individual referred to in section 254 of the Act, unless the tax payable under subsection 165(1) of the Act in respect of the supply of the complex applied at the rate of 6% or 7%. 2006, c. 4, s. 25(1) 189. (1) Paragraph 254.1(2)(c) of the Act is replaced by the following: (c) the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement, is less than $472,500, 2006, c. 4, s. 25(2) (2) Paragraphs 254.1(2)(h) and (i) of the Act are replaced by the following: (h) if the fair market value referred to in paragraph (c) is not more than $367,500, an amount equal to 1.71% of the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable by the particular individual to the builder for the supply by way of sale to the particular individual of the building or part of a building referred to in paragraph (a) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and (i) if the fair market value referred to in paragraph (c) is more than $367,500 but less than $472,500, the amount determined by the formula A × [($472,500 - B)/$105,000] where C. 35 Budget and Economic State A is the lesser of $6,300 and 1.71% of the total consideration, and B is the fair market value referred to in paragraph (c). 2006, c. 4, s. 25(3) (3) Paragraph 254.1(2.1)(a) of the Act is replaced by the following: (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement for the supply of the complex to the particular individual, were less than $472,500, (4) Subsections (1) to (3) apply in respect of a supply, to a particular individual referred to in section 254.1 of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if possession of the unit is given to the particular individual on or after January 1, 2008, unless the builder is deemed under section 191 of the Act to have paid tax under subsection 165(1) of the Act calculated at the rate of 6% or 7% in respect of the supply referred to in paragraph 254.1(2)(d) of the Act. 2006, c. 4, s. 26(1) 190. (1) Paragraph 255(2)(d) of the Act is replaced by the following: (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500, 2006, c. 4, s. 26(2) (2) Paragraphs 255(2)(g) and (h) of the Act are replaced by the following: (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and Exécution du budget et de l’ (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula A × [($472,500 - B)/$105,000] where A is the lesser of $6,300 and 1.71% of the total consideration, and B is the total consideration. 2006, c. 4, s. 26(3) (3) Paragraph 255(2.1)(c) of the Act is replaced by the following: (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $472,500, (4) Subsections (1) to (3) apply for the purpose of determining a rebate in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the individual is acquiring the share for the purpose of using a residential unit in a residential complex as the primary place of residence of the individual, or a relation (as defined in subsection 255(1) of the Act) of the individual, and the rebate application is filed on or after January 1, 2008, unless the corporation paid tax under subsection 165(1) of the Act in respect of the supply of the complex to the corporation calculated at the rate of 6% or 7%. 2006, c. 4, s. 27(1) 191. (1) Subparagraphs (i) and (ii) of the description of A in subsection 256(2) of the Act are replaced by the following: (i) if all or substantially all of that tax was paid at the rate of 5%, $6,300, (ii) if all or substantially all of that tax was paid at the rate of 6%, $7,560, and C. 35 Budget and Economic State (iii) in any other case, the lesser of $8,750 and the amount determined by the formula (C × $2,520) + (D × $1,260) + $6,300 where C is the extent (expressed as a percentage) to which that tax was paid at the rate of 7%, and D is the extent (expressed as a percentage) to which that tax was paid at the rate of 6%, and (2) Subsection (1) applies to any rebate in respect of a residential complex for which an application is filed with the Minister of National Revenue on or after January 1, 2008. 2006, c. 4, s. 28(1) 192. (1) The portion of the description of A in subsection 256.2(3) of the Act before the formula is replaced by the following: A is the lesser of $6,300 and the amount determined by the formula 2006, c. 4, s. 28(2) (2) The portion of the description of A in subsection 256.2(4) of the Act before the formula is replaced by the following: A is the lesser of $6,300 and the amount determined by the formula 2006, c. 4, s. 28(3) (3) The portion of the description of A in subsection 256.2(5) of the Act before the formula is replaced by the following: A is the lesser of $6,300 and the amount determined by the formula (4) Subsection (1) applies to (a) a taxable supply to a recipient from another person of a residential complex or an interest in a residential complex, in respect of which ownership and possession under the agreement for the supply are transferred on or after January 1, 2008, Exécution du budget et de l’ unless the agreement for the supply is evidenced in writing and was entered into on or before October 30, 2007; and (b) a deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) by a builder if the tax in respect of the deemed purchase of a complex or an addition to a complex is deemed to have been paid on or after January 1, 2008. (5) Subsection (2) applies to a supply of a building or part of it forming part of a residential complex and a supply of land, described in subparagraphs 256.2(4)(a)(i) and (ii) of the Act, that result in a person being deemed under section 191 of the Act to have made and received a taxable supply by way of sale of the complex or of an addition to it on or after January 1, 2008, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the complex or the addition to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex or the addition and (a) the agreement was entered into on or before October 30, 2007; (b) another agreement was entered into by the builder and another person on or before May 2, 2006, and that other agreement was not terminated before July 1, 2006, and was for the supply by way of sale of the building or part of it forming part of (i) in the case of a deemed supply of a complex, the complex, or (ii) in the case of a deemed supply of an addition, the addition; or (c) another agreement was entered into by the builder and another person on or before October 30, 2007, and that other agreement was not terminated before January 1, 2008, and was for the supply by way of sale of the building or part of it forming part of C. 35 Budget and Economic State (i) in the case of a deemed supply of a complex, the complex, or (ii) in the case of a deemed supply of an addition, the addition. (6) Subsection (3) applies to (a) a taxable supply by way of sale to a recipient from another person of a residential complex, or an interest in a residential complex, in respect of which ownership and possession under the agreement for the supply are transferred on or after January 1, 2008, unless the agreement is evidenced in writing and was entered into on or before October 30, 2007; and (b) a deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) by a builder if the tax in respect of the deemed purchase of a complex or an addition to a complex is deemed to have been paid on or after January 1, 2008. 2006, c. 4, s. 29(1) 193. (1) The description of C in subsection 256.6(1) of the Act is replaced by the following: C is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b), (2) Subsection (1) is deemed to have come into force on July 1, 2006. 194. (1) The Act is amended by adding the following after section 256.6: Transitional rebate — 2008 rate reduction 256.7 (1) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, Exécution du budget et de l’ (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.3(1), in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(1), equal to 1% of the value of the consideration for the supply. Transitional rebate — 2008 rate reduction (2) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(2), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the consideration payable for the supply to the particular person of the complex, and B is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex. C. 35 Transitional rebate — 2008 rate reduction (3) If a particular person, other than a cooperative housing corporation, Budget and Economic State (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection or under subsection 256.3(3), in respect of that tax, the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(3), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the consideration payable for the supply to the particular person of the complex, and B is (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and (ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex. Transitional rebate — 2008 rate reduction (4) If a cooperative housing corporation (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another Exécution du budget et de l’ person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, section 256.2, subsection 256.3(4) or section 259 in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the corporation, in addition to the rebate payable under subsection 256.3(4), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the consideration payable for the supply, and B is (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex, (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex, (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and C. 35 Budget and Economic State (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and (iii) in any other case, zero. Transitional rebate — 2008 rate reduction (5) If a particular individual (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular individual, in addition to the rebate payable under subsection 256.3(5), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in Exécution du budget et de l’ respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 7%, and B is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex. Group of individuals (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5). Application for rebate (7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person. Transitional rebate where section 254.1 applies — 2008 rate reduction 256.71 (1) If (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and C. 35 Budget and Economic State (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), (e) pay a rebate to the particular person, in addition to the rebate payable under subsection 256.4(1), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where A is the amount determined by the formula C × (100/D) where C is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and D is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and B is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4) or 256.4(1), in respect of the tax referred to in paragraph (c), pay a rebate to Exécution du budget et de l’ the builder, in addition to the rebate payable under subsection 256.4(1), equal to the amount determined by the formula (E - F) × [0.01 - ((G/(E - F))/7)] where E is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c), F is the amount determined for A under paragraph (e), and G is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4). Transitional rebate where section 254.1 does not apply — 2008 rate reduction (2) If (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), C. 35 Budget and Economic State (e) pay a rebate to the particular person, in addition to the rebate payable under subsection 256.4(2), equal to the amount determined by the formula A/B where A is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and B is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.4(2), in respect of the tax referred to in paragraph (c), pay a rebate to the builder, in addition to the rebate payable under subsection 256.4(2), equal to the amount determined by the formula 0.01 × [C - (D × (100/E))] where C is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c), D is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideraExécution du budget et de l’ tion that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and E is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107. Group of individuals (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1). Application for rebate (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person; and (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder. Transitional rebate for purchaser — 2008 rate reduction 256.72 (1) Where (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and C. 35 Budget and Economic State (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after January 1, 2008, (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession (i) of the residential unit to the particular person under the agreement, or (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after January 1, 2008, it is the case that the builder and (i) the particular person entered into the agreement on or before May 2, 2006, or (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before July 1, 2006, the Minister shall, subject to subsection (3), (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person, in addition to the rebate payable under subsection 256.5(1), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] Exécution du budget et de l’ 2007 where A is the amount determined by the formula C × (100/D) where C is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and D is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and B is the amount of the rebate under subsection 254.1 that the particular person is entitled to claim in respect of the complex, and (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person, in addition to the rebate payable under subsection 256.5(1), equal to the amount determined by the formula E/F where E is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the C. 35 Budget and Economic State land attributable to the complex or as consideration for the supply of an option to purchase that land, and F is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107. Group of individuals (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph. Application for rebate (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person. Transitional rebate for builder — 2008 rate reduction 256.73 (1) If (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or a supply of such a lease by way of assignment, and Exécution du budget et de l’ (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, (b) the builder is deemed under subsection 191(3) or (4) to have made and received on or after January 1, 2008, a supply of the complex or the addition as a consequence of giving possession (i) of the residential unit to the particular person under the agreement, or (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, (c) the builder and (i) the particular person entered into the agreement on or before May 2, 2006, or (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (b)) and that agreement was not terminated before July 1, 2006, (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 7%, and (e) the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4) or 256.6(1), in respect of the tax referred to in paragraph (d), the Minister shall, subject to subsection (2), pay a rebate to the builder, in addition to the rebate payable under subsection 256.6(1), equal to the amount determined by the formula A × [0.01 - ((B/A)/7)] where C. 35 Budget and Economic State A is the amount determined by the formula C - [D × (100/E)] where C is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b), D is (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and E is (i) if the complex is situated in a participating province, 115, and (ii) in any other case, 107, and B is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition. Exécution du budget et de l’ Application for rebate (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) is deemed to have been paid by the builder. Transitional rebate — 2008 rate reduction 256.74 (1) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to 1% of the value of the consideration for the supply. Transitional rebate — 2008 rate reduction (2) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, C. 35 Budget and Economic State (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the consideration payable for the supply to the particular person of the complex, and B is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex. Transitional rebate — 2008 rate reduction (3) If a particular person, other than a cooperative housing corporation, (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection, in respect of that tax, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the consideration payable for the supply to the particular person of the complex, and Exécution du budget et de l’ 2007 B is (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and (ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex. Transitional rebate — 2008 rate reduction (4) If a cooperative housing corporation (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after January 1, 2008, (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under section 256.2 or 259, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the corporation equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the consideration payable for the supply, and B is (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex, (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 C. 35 Budget and Economic State that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex, (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and (iii) in any other case, zero. Transitional rebate — 2008 rate reduction (5) If a particular individual (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after January 1, 2008, Exécution du budget et de l’ (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular individual equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 6%, and B is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex. Group of individuals (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5). Application for rebate (7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person. Transitional rebate where section 254.1 applies — 2008 rate reduction 256.75 (1) If (a) under an agreement, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of C. 35 Budget and Economic State (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), (e) pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the amount determined by the formula C × (100/D) where C is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and D is Exécution du budget et de l’ (i) if the complex is situated in a participating province, 114, and (ii) in any other case, 106, and B is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula (E - F) × [0.01 - ((G/(E - F))/6)] where E is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c), F is the amount determined for A under paragraph (e), and G is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4). Transitional rebate where section 254.1 does not apply — 2008 rate reduction (2) If (a) under an agreement, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, C. 35 Budget and Economic State (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), (e) pay a rebate to the particular person equal to the amount determined by the formula A/B where A is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and B is (i) if the complex is situated in a participating province, 114, and (ii) in any other case, 106, and (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula 0.01 × [C - (D × (100/E))] where Exécution du budget et de l’ C is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c), D is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and E is (i) if the complex is situated in a participating province, 114, and (ii) in any other case, 106. Group of individuals (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1). Application for rebate (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person; and C. 35 Budget and Economic State (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder. Transitional rebate for purchaser — 2008 rate reduction 256.76 (1) Where (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after January 1, 2008, (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession (i) of the residential unit to the particular person under the agreement, or (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after January 1, 2008, it is the case that the builder and (i) the particular person entered into the agreement after May 2, 2006, but on or before October 30, 2007, or Exécution du budget et de l’ (ii) a person, other than the particular person, after May 2, 2006, but on or before October 30, 2007, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before January 1, 2008, the Minister shall, subject to subsection (3), (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the amount determined by the formula C × (100/D) where C is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and D is (i) if the complex is situated in a participating province, 114, and (ii) in any other case, 106, and B is the amount of the rebate under section 254.1 that the particular person is entitled to claim in respect of the complex, and C. 35 Budget and Economic State (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula E/F where E is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and F is (i) if the complex is situated in a participating province, 114, and (ii) in any other case, 106. Group of individuals (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph. Application for rebate (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application Exécution du budget et de l’ for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person. Transitional rebate for builder — 2008 rate reduction 256.77 (1) If (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of (i) an exempt supply by way of lease of the land forming part of the complex or a supply of such a lease by way of assignment, and (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, (b) the builder is deemed under subsection 191(3) or (4) to have made and received on or after January 1, 2008, a supply of the complex or the addition as a consequence of giving possession (i) of the residential unit to the particular person under the agreement, or (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, (c) the builder and (i) the particular person entered into the agreement after May 2, 2006, but on or before October 30, 2007, or (ii) a person, other than the particular person, after May 2, 2006, but on or before October 30, 2007, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (b)) and that agreement was not terminated before January 1, 2008, C. 35 Budget and Economic State (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 6%, and (e) the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (d), the Minister shall, subject to subsection (2), pay a rebate to the builder equal to the amount determined by the formula A × [0.01 - ((B/A)/6)] where A is the amount determined by the formula C - [D × (100/E)] where C is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b), D is (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and E is Exécution du budget et de l’ (i) if the complex is situated in a participating province, 114, and (ii) in any other case, 106, and B is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition. Application for rebate (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) is deemed to have been paid by the builder. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 195. (1) The Act is amended by adding the following after section 274.1: Variation of agreement — 2008 rate reduction 274.11 If (a) at any time before January 1, 2008, a supplier and a recipient enter into an agreement for a taxable supply of property or a service, (b) the supplier and the recipient at a later time either directly or indirectly (i) vary or alter the agreement for the supply, or (ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a), C. 35 Budget and Economic State (c) the supplier, the recipient and, where applicable, the other persons are not dealing with each other at arm’s length at the time the agreement is entered into or at the later time, (d) tax under subsection 165(1) or section 218 in respect of the supply referred to in paragraph (a) would have been calculated at the rate of 6% or 7%, as the case may be, on all or part of the value of the consideration for the supply attributable to the property or service in the absence of the variation, alteration or termination of the agreement, (e) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements would, in the absence of this section, be calculated at the rate of 5% on any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax, in respect of the supply referred to in paragraph (a), was initially calculated at the rate of 6% or 7%, as the case may be, and (f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to benefit in any manner from the rate change, the following rule applies (g) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate at which tax would have been calculated under paragraph (d) on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service. (2) Subsection (1) applies to any agreement varied, altered, terminated or entered into on or after October 30, 2007. Exécution du budget et de l’ RELATED AMENDMENTS AS A RESULT OF THE GST/HST RATE REDUCTION 2002, c. 9, s. 5 2006, c. 4, s. 33(1) Air Travellers Security Charge Act 196. (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following: (a) $4.67 for each chargeable emplanement included in the service, to a maximum of $9.33, if 2006, c. 4, s. 33(2) (2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following: (b) $4.90 for each chargeable emplanement included in the service, to a maximum of $9.80, if 2006, c. 4, s. 33(3) (3) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following: (d) $8.34 for each chargeable emplanement included in the service, to a maximum of $16.68, if 2006, c. 4, s. 33(4) (4) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following: (b) $8.34 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $16.68, if (5) Subsections (1) to (4) apply in respect of any air transportation service that includes a chargeable emplanement on or after January 1, 2008 and for which any consideration is paid or becomes payable on or after that day. 2002, c. 22 Excise Act, 2001 Amendments to the Act 2006, c. 4, s. 34(1) 197. (1) The portion of the definition “taxed tobacco” in section 58.1 of the Excise Act, 2001 before paragraph (a) is replaced by the following: C. 35 “taxed tobacco” « tabac imposé » “taxed tobacco” of a person means cigarettes, tobacco sticks, loose tobacco and cigars, in respect of which duty has been imposed under section 42 before January 1, 2008 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1 or in section 4 of that Schedule, as those provisions read on December 31, 2007, and that, at the beginning of January 1, 2008, Budget and Economic State (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 34(1) 198. (1) Paragraphs 58.2(a) to (d) of the Act are replaced by the following: (a) 0.295 cent per cigarette; (b) 0.275 cent per tobacco stick; (c) 0.195 cent per gram of loose tobacco; and (d) 0.19 cent per cigar. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 34(1) 199. (1) Section 58.3 of the Act is replaced by the following: Exemption for small retail inventory 58.3 Tax under this Part in respect of the inventory of all taxed tobacco of a person that is held at the beginning of January 1, 2008 at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer units. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 34(1) 200. (1) Subsection 58.5(1) of the Act is replaced by the following: Returns 58.5 (1) Every person liable to pay tax under this Part shall, on or before February 29, 2008, file a return with the Minister in the prescribed form and manner. (2) Subsection (1) applies to tax that a person is required to pay under section 58.2 of the Act after December 31, 2007. Exécution du budget et de l’ 2006, c. 4, s. 34(1) 201. (1) Subsection 58.6(1) of the Act is replaced by the following: Payment 58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before February 29, 2008. (2) Subsection (1) applies to tax that a person is required to pay under section 58.2 of the Act after December 31, 2007. 2006, c. 4, s. 35(1) 202. (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following: (i) $0.17 multiplied by the number of cigarettes to which the offence relates, (ii) $0.127 multiplied by the number of tobacco sticks to which the offence relates, (iii) $0.116 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and (iv) $0.29 multiplied by the number of cigars to which the offence relates, and 2006, c. 4, s. 35(2) (2) Subparagraphs 216(3)(a)(i) to (iv) of the Act are replaced by the following: (i) $0.255 multiplied by the number of cigarettes to which the offence relates, (ii) $0.19 multiplied by the number of tobacco sticks to which the offence relates, (iii) $0.174 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and (iv) $0.67 multiplied by the number of cigars to which the offence relates, and (3) Subsections (1) and (2) come into force on the later of January 1, 2008 and the day on which this Act is assented to. C. 35 2006, c. 4, s. 36(1) 203. (1) Paragraphs 240(a) to (c) of the Act are replaced by the following: Budget and Economic State (a) $0.361448 per cigarette that was removed in contravention of that subsection, (b) $0.2105 per tobacco stick that was removed in contravention of that subsection, and (c) $207.704 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection. (2) Subsection (1) comes into force on the later of January 1, 2008 and the day on which this Act is assented to. 2006, c. 4, s. 37(1) 204. (1) Paragraph 1(b) of Schedule 1 to the Act is replaced by the following: (b) $0.425 for each five cigarettes or fraction of five cigarettes contained in any package, in any other case. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 38(1) 205. (1) Paragraph 2(b) of Schedule 1 to the Act is replaced by the following: (b) $0.06325 per stick, in any other case. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 39(1) 206. (1) Paragraph 3(b) of Schedule 1 to the Act is replaced by the following: (b) $57.85 per kilogram, in any other case. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 40(1) 207. (1) Section 4 of Schedule 1 to the Act is replaced by the following: 4. Cigars: $18.50 per 1,000 cigars. (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008. 2006, c. 4, s. 41(1) 208. (1) Paragraph (a) of Schedule 2 to the Act is replaced by the following: Exécution du budget et de l’ (a) $0.067 per cigar, and 2006, c. 4, s. 41(2) (2) The portion of paragraph (b) of Schedule 2 to the Act before subparagraph (i) is replaced by the following: (b) 67%, computed on (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on January 1, 2008. Application 209. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though sections 204 to 208 had come into force on January 1, 2008. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 19 An Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts ASSENTED TO 22nd JUNE, 2007 BILL C-11 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts”. SUMMARY This enactment amends the Canada Transportation Act. Certain amendments apply to all modes of transportation, including amendments that clarify the national transportation policy and the operation of the Competition Act in the transportation sector, change the number of members of the Canadian Transportation Agency, create a mediation process for transportation matters, modify requirements regarding the provision of information to the Minister of Transport and modify and extend provisions regarding mergers and acquisitions of air transportation undertakings to all transportation undertakings. It amends the Act with respect to the air transportation sector, in particular, in relation to complaints processes, the advertising of prices for air services and the disclosure of terms and conditions of carriage. The enactment also makes several amendments with respect to the railway transportation sector. It creates a mechanism for dealing with complaints concerning noise and vibration resulting from the construction or operation of railways and provisions for dealing with the transfer and discontinuance of operation of railway lines. It also establishes a mechanism for resolving disputes between public passenger service providers and railway companies regarding the use of railway company equipment and facilities. The enactment also amends the Railway Safety Act to create provisions for the appointment of police constables with respect to railway companies and procedures for dealing with complaints concerning them. In addition, it contains transitional provisions and consequential amendments. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 19 An Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1996, c. 10 CANADA TRANSPORTATION ACT 1. Subsection 4(2) of the Canada Transportation Act is replaced by the following: Competition Act International agreements respecting air services (2) Subject to subsection (3), nothing in or done under the authority of this Act, other than Division IV of Part III, affects the operation of the Competition Act. (3) In the event of any inconsistency or conflict between an international agreement or convention respecting air services to which Canada is a party and the Competition Act, the provisions of the agreement or convention prevail to the extent of the inconsistency or conflict. 2. Section 5 of the Act is replaced by the following: Declaration 5. It is declared that a competitive, economic and efficient national transportation system that meets the highest practicable safety and security standards and contributes to a sustainable environment and makes the best use of all modes of transportation at the lowest total cost is essential to serve the needs of its users, C. 19 Canada Transportatio advance the well-being of Canadians and enable competitiveness and economic growth in both urban and rural areas throughout Canada. Those objectives are most likely to be achieved when (a) competition and market forces, both within and among the various modes of transportation, are the prime agents in providing viable and effective transportation services; (b) regulation and strategic public intervention are used to achieve economic, safety, security, environmental or social outcomes that cannot be achieved satisfactorily by competition and market forces and do not unduly favour, or reduce the inherent advantages of, any particular mode of transportation; (c) rates and conditions do not constitute an undue obstacle to the movement of traffic within Canada or to the export of goods from Canada; (d) the transportation system is accessible without undue obstacle to the mobility of persons, including persons with disabilities; and (e) governments and the private sector work together for an integrated transportation system. 2001, c. 27, s. 221 3. Subsection 7(2) of the Act is replaced by the following: Composition of Agency (2) The Agency shall consist of not more than five members appointed by the Governor in Council, and such temporary members as are appointed under subsection 9(1), each of whom must, on appointment or reappointment and while serving as a member, be a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act. 4. Subsection 8(3) of the Act is replaced by the following: Continuation in office (3) If a member appointed under subsection 7(2) ceases to hold office, the Chairperson may authorize the member to continue to hear any 2006-2007 Transports au Canada matter that was before the member on the expiry of the member’s term of office and that member is deemed to be a member of the Agency, but that person’s status as a member does not preclude the appointment of up to five members under subsection 7(2) or up to three temporary members under subsection 9(1). 5. Subsection 18(2) of the Act is replaced by the following: Residence of members (2) The members shall reside in the National Capital Region described in the schedule to the National Capital Act or within any distance of it that the Governor in Council determines. 2002, c. 8, s. 122 6. Subsection 33(1) of the Act is replaced by the following: Enforcement of decision or order 33. (1) A decision or order of the Agency may be made an order of the Federal Court or of any superior court and is enforceable in the same manner as such an order. 7. The Act is amended by adding the following after section 36: Mediation Request by parties 36.1 (1) If there is a dispute concerning a matter within the Agency’s jurisdiction, all the parties to the dispute may, by agreement, make a request to the Agency for mediation. On receipt of the request, the Agency shall refer the dispute for mediation. Appointment of mediator (2) When a dispute is referred for mediation, the Chairperson shall appoint one or two persons to mediate the dispute. Mediator not to act in other proceedings (3) A person who is appointed to mediate a dispute may not act in any other proceedings before the Agency in relation to that matter. Confidentiality of mediation (4) All matters relating to the mediation of a dispute shall be kept confidential, unless the parties to the dispute otherwise agree, and information provided by a party for the purposes of mediation shall not be used for any other purpose without the consent of that party. C. 19 Time limit for completion of mediation (5) Unless the parties to a dispute otherwise agree, the mediation of the dispute shall be completed within 30 days after the dispute is referred for mediation. Effect of mediation on proceedings Canada Transportatio (6) The mediation has the effect of (a) staying for the period of the mediation any proceedings before the Agency in so far as they relate to a matter that is the subject of the mediation; and (b) extending the time within which the Agency may make a decision or determination under this Act with regard to those proceedings by the period of the mediation. Filing of mediation agreement (7) An agreement that is reached as a result of mediation may be filed with the Agency and, after filing, is enforceable as if it were an order of the Agency. Mediation or Arbitration Request by all parties 36.2 (1) If section 36.1 does not apply, the Agency may mediate or arbitrate a dispute relating to any railway matter covered under Part III or Part IV, or to the application of any rate or charge for the movement of goods by railways or for the provision of incidental services, if requested to do so by all parties to the dispute. Reimbursement of costs (2) The parties are jointly and severally, or solidarily, liable to reimburse the Agency its costs arising from the mediation or arbitration. Mediator not to act in other proceedings (3) The person who acts as mediator or arbitrator may not act in any other proceedings before the Agency in relation to any matter that was at issue in the mediation or arbitration. 8. (1) The portion of subsection 50(1) of the Act before paragraph (a) is replaced by the following: Regulations re information 50. (1) The Governor in Council may make regulations requiring any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament to provide information, other than personal information as defined 2006-2007 Transports au Canada in section 3 of the Privacy Act, to the Minister, when and in the form and manner that the regulations may specify, for the purposes of (2) Paragraph 50(1)(b) of the Act is replaced by the following: (b) reporting under section 52; (3) Paragraph 50(1)(d) of the Act is replaced by the following: (d) any safety, security or subsidy program; (4) Section 50 of the Act is amended by adding the following after subsection (1): Persons referred to (1.1) The persons for the purposes of subsection (1) are (a) carriers; (b) owners or operators of (i) transportation undertakings, (ii) transportation works, infrastructure, facilities or assets, and (iii) grain handling undertakings; (c) providers of services in relation to transportation, including (i) the Canadian Air Transport Security Authority, (ii) NAV CANADA, a corporation incorporated on May 26, 1995 under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and (iii) Pilotage Authorities named in the schedule to the Pilotage Act; (d) intermediaries involved in transportation movements who are specified in the regulations; and (e) any other person or class of persons specified in the regulations. 9. The Act is amended by adding the following after section 50: C. 19 Information already provided 50.1 For the purposes of subsection 50(1), if any information referred to in that subsection has already been provided to a department or agency of the Government of Canada, the Minister may request that department or agency to provide the information to the Minister. 2000, c. 16, s. 2 10. (1) Subsection 51(2) of the Act is replaced by the following: Administrative use of information (2) Subsection (1) does not apply so as to prohibit Canada Transportatio (a) the communication of information to the Agency or to a minister of the Crown in right of Canada, the agent of any such minister or an officer or employee of, or adviser to, Her Majesty in right of Canada for the purposes of the administration of this Act or any other Act of Parliament or for the purposes of the development of policies; (b) the communication of information to persons referred to in paragraph 50(1.1)(c) that is necessary for them to carry out their duties and functions; (c) the reporting of information in an aggregated form that prevents information obtained from an identifiable person from being related to that person; (d) the communication of information by the Minister for the purpose of monitoring the grain transportation and handling system; or (e) the communication of information that is available to, or ascertainable by, the public. Terms and conditions (2.1) The Minister may, with the approval of the Governor in Council, make regulations respecting the terms and conditions for the communication of information referred to in subsection (2). (2) Section 51 of the Act is amended by adding the following after subsection (3): Requirement for other persons to maintain confidentiality (4) Any person who receives information from the Minister that is confidential under this Act shall not knowingly disclose that information and shall take the measures necessary to maintain its confidentiality. 2006-2007 Transports au Canada 11. (1) Subsection 52(1) of the Act is replaced by the following: Industry overview 52. (1) Each year before the end of May, the Minister shall, using the most current information available, prepare and lay before both Houses of Parliament a report providing a brief overview of the state of transportation in Canada. (2) Subsection 52(2) of the Act is replaced by the following: Industry review (2) Every five years, the report referred to in subsection (1) shall be expanded to a comprehensive review of the state of transportation in Canada which shall include (a) the financial performance of each mode of transportation and its contribution to the Canadian economy; (b) the extent to which carriers and modes of transportation were provided resources, facilities and services at public expense; (c) the extent to which carriers and modes of transportation received compensation, indirectly and directly, for the resources, facilities and services that were required to be provided as an imposed public duty; (c.1) the long term outlook and trends in transportation in Canada; and (d) any other transportation matters that the Minister considers appropriate. 12. (1) Subsections 53(1) and (2) of the Act are replaced by the following: Statutory review 53. (1) The Minister shall, no later than eight years after the day this subsection comes into force, appoint one or more persons to carry out a comprehensive review of the operation of this Act and any other Act of Parliament for which the Minister is responsible that pertains to the economic regulation of a mode of transportation or to transportation activities under the legislative authority of Parliament. C. 19 Objective of review (2) The person or persons conducting the review shall assess whether the legislation referred to in subsection (1) provides Canadians with a transportation system that is consistent with the national transportation policy set out in section 5 and, if necessary or desirable, may recommend amendments to Canada Transportatio (a) the national transportation policy; and (b) the legislation referred to in subsection (1). (2) Subsection 53(5) of the Act is replaced by the following: Report (5) The review shall be completed and a report of the review submitted to the Minister within 18 months after the appointment referred to in subsection (1). 13. The Act is amended by adding the following after section 53: REVIEW OF MERGERS AND ACQUISITIONS Notice 53.1 (1) Every person who is required to notify the Commissioner of Competition under subsection 114(1) of the Competition Act of a proposed transaction that involves a transportation undertaking shall, at the same time as the Commissioner is notified and, in any event, not later than the date by which the person is required to notify the Commissioner, (a) give notice of the proposed transaction to the Minister; and (b) in the case of a proposed transaction that involves an air transportation undertaking, also give notice of the transaction to the Agency. Information (2) A notice given to the Minister or to the Agency shall, subject to the regulations, contain the information required under subsection 114(1) of the Competition Act. The notice shall also contain any information with respect to the public interest as it relates to national transportation that is required under any guidelines that shall be issued and published by the Minister. After receipt of a notice, the Minister may require the person who has given the notice to provide further information. 2006-2007 Transports au Canada Guidelines (2.1) The guidelines referred to in subsection (2) shall be elaborated in consultation with the Competition Bureau and shall include factors that may be considered to determine whether a proposed transaction raises issues with respect to the public interest as it relates to national transportation. Not statutory instruments (3) The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act. No public interest issues (4) If the Minister is of the opinion that the proposed transaction does not raise issues with respect to the public interest as it relates to national transportation, the Minister shall, within 42 days after a person gives notice under subsection (1), give notice of the opinion to that person, in which case sections 53.2 and 53.3 do not apply in respect of that transaction. Public interest issues (5) If the Minister is of the opinion that the proposed transaction raises issues with respect to the public interest as it relates to national transportation, the Minister may direct the Agency to examine those issues under section 49 or appoint and direct any person to examine those issues under section 7.1 of the Department of Transport Act. Report (6) The Agency or person, as the case may be, shall report to the Minister within 150 days after being directed under subsection (5), or within any longer period that the Minister may allow. Prohibition 53.2 (1) No person shall complete a proposed transaction referred to in subsection 53.1(1) unless the transaction is approved by the Governor in Council and, in the case of a transaction that involves an air transportation undertaking, the Agency determines that the transaction would result in an undertaking that is Canadian as defined in subsection 55(1). Commissioner’s report (2) The Commissioner of Competition shall within 150 days after the Commissioner is notified of the proposed transaction under subsection 114(1) of the Competition Act, or within any longer period that the Minister may allow, report to the Minister and the parties to C. 19 Canada Transportatio the transaction on any concerns regarding potential prevention or lessening of competition that may occur as a result of the transaction. Report to be made public (3) The report shall be made public immediately after its receipt by the Minister. Concerns relating to public interest and competition (4) After receipt of the Commissioner’s report and any report given under subsection 53.1(6), but before the Minister makes a recommendation for the purposes of subsection (7), the Minister shall (a) consult with the Commissioner regarding any overlap between any concerns that the Minister has in respect of the proposed transaction with regard to the public interest as it relates to national transportation and any concerns in respect of the transaction that are raised in the Commissioner’s report; and (b) request the parties to the transaction to address (i) with the Minister any concerns that the Minister has in respect of the transaction with regard to the public interest as it relates to national transportation, and (ii) with the Commissioner any concerns that the Commissioner has regarding potential prevention or lessening of competition that may occur as a result of the transaction. Measures to address concerns (5) The parties to the transaction shall (a) after conferring with the Minister regarding concerns referred to in subparagraph (4)(b)(i), inform the Minister of any measures they are prepared to undertake to address those concerns; and (b) after conferring with the Commissioner regarding concerns identified under subparagraph (4)(b)(ii), inform the Commissioner of any measures they are prepared to undertake to address those concerns. The parties may propose revisions to the transaction. Preconditions to recommendation (6) Before making a recommendation for the purposes of subsection (7), the Minister shall obtain the Commissioner’s assessment of the adequacy of any undertaking proposed by the 2006-2007 Transports au Canada parties to address the concerns that have been identified under subparagraph (4)(b)(ii) and the effects of any proposed revisions to the transaction on those concerns. Approval of Governor in Council (7) If the Governor in Council is satisfied that it is in the public interest to approve the proposed transaction, taking into account any revisions to it proposed by the parties and any measures they are prepared to undertake, the Governor in Council may, on the recommendation of the Minister, approve the transaction and specify any terms and conditions that the Governor in Council considers appropriate. The Governor in Council shall indicate those terms and conditions that relate to potential prevention or lessening of competition and those that relate to the public interest as it relates to national transportation. Variation of terms and conditions (8) On application by a person who is subject to terms and conditions specified under subsection (7), the Governor in Council may, on the recommendation of the Minister, vary or rescind the terms and conditions. If the terms and conditions to be varied or rescinded affect competition, the Minister shall consult with the Commissioner before making the recommendation. Commissioner’s representations (9) If the Minister directs the Agency under section 49 to inquire into any matter or thing to assist the Minister in making a recommendation under subsection (7) or (8), the Agency shall give notice of the inquiry to the Commissioner and allow the Commissioner to make representations to the Agency. Compliance with terms and conditions (10) Every person who is subject to terms and conditions shall comply with them. Canadian 53.3 The Agency shall determine whether a proposed transaction referred to in subsection 53.1(1) that involves an air transportation undertaking would result in an undertaking that is Canadian as defined in subsection 55(1). Order of divestiture — application by Minister 53.4 (1) If a person contravenes subsection 53.2(1) or (10) with respect to a term or condition that relates to the public interest as it relates to national transportation, a superior C. 19 Canada Transportatio court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application. Order of divestiture — application by Commissioner (2) If a person contravenes subsection 53.2(10) with respect to a term or condition that relates to potential prevention or lessening of competition, a superior court may, on application by the Commissioner, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Commissioner shall notify the Minister before making an application. Regulations 53.5 The Governor in Council may, on the recommendation of the Minister, make regulations (a) specifying information required in a notice under subsection 53.1(1); and (b) exempting classes of transactions from the application of sections 53.1 to 53.3. Offence — subsection 53.1(1) 53.6 (1) Every person who contravenes subsection 53.1(1) is guilty of an offence and is liable (a) on conviction on indictment, to a fine not exceeding $50,000; or (b) on summary conviction, to a fine not exceeding $25,000. Offence — subsection 53.2(1) or (10) (2) Every person who contravenes subsection 53.2(1) or (10) is guilty of an indictable offence and is liable to imprisonment for a term not exceeding five years or to a fine not exceeding $10,000,000, or to both. Continuing offence (3) If an offence under subsection 53.2(10) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued. Officers, etc., of corporations (4) If a corporation commits an offence under subsection (1) or (2), any officer, director or agent or mandatary of the corporation who 2006-2007 Transports au Canada directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. Sections 174 and 175 do not apply (5) Sections 174 and 175 do not apply in respect of an offence committed under subsection (1) or (2). 14. (1) Subsection 56(1) of the Act is replaced by the following: Non-application of Part 56. (1) This Part does not apply to a person that uses an aircraft on behalf of the Canadian Armed Forces or any other armed forces cooperating with the Canadian Armed Forces. (2) Section 56 of the Act is amended by adding the following after subsection (2): Emergency service exclusion (3) This Part does not apply to the provision of an air service if the federal government or a provincial or a municipal government declares an emergency under federal or provincial law, and that government directly or indirectly requests that the air service be provided to respond to the emergency. Public interest (4) The Minister may, by order, prohibit the provision of an air service under subsection (3) or require the discontinuance of that air service if, in the opinion of the Minister, it is in the public interest to do so. Not a statutory instrument (5) The order is not a statutory instrument within the meaning of the Statutory Instruments Act. 2000, c. 15, s. 2 15. The heading before section 56.1 and sections 56.1 to 56.7 of the Act are repealed. 16. Section 59 of the Act is replaced by the following: Prohibition re sale 59. No person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under this Part, a person holds a licence issued under this Part in respect of that service and that licence is not suspended. C. 19 2000, c. 15, s. 3 17. Subsection 64(1.2) of the Act is replaced by the following: Discussion with elected officials (1.2) A licensee shall, as soon as practicable, provide an opportunity for elected officials of the municipal or local government of the community of the point or points, as the case may be, to meet and discuss with the licensee the impact of the proposed discontinuance or reduction. Canada Transportatio 18. Paragraph 65(a) of the Act is replaced by the following: (a) for such a period, not exceeding 120 days after the date of the finding by the Agency, as the Agency deems appropriate; and 2000, c. 15, s. 4 19. (1) Subsection 66(2) of the French version of the Act is replaced by the following: Gamme de prix insuffisante (2) S’il conclut, sur dépôt d’une plainte, qu’un licencié, y compris les licenciés de son groupe, est la seule personne à offrir un service intérieur entre deux points, d’une part, et que celui-ci offre une gamme de prix ou de taux insuffisante à l’égard de ce service, d’autre part, l’Office peut, par ordonnance, enjoindre au licencié, pour la période qu’il estime indiquée dans les circonstances, de publier et d’appliquer à l’égard de ce service un ou plusieurs prix ou taux supplémentaires qu’il estime indiqués dans les circonstances. 2000, c. 15, s. 4 (2) The portion of subsection 66(3) of the Act before paragraph (a) is replaced by the following: Relevant information (3) When making a finding under subsection (1) or (2) that a fare, cargo rate or increase in a fare or cargo rate published or offered in respect of a domestic service between two points is unreasonable or that a licensee is offering an inadequate range of fares or cargo rates in respect of a domestic service between two 2006-2007 Transports au Canada points, the Agency may take into consideration any information or factor that it considers relevant, including 2000, c. 15, s. 4 (3) Paragraph 66(3)(b) of the Act is replaced by the following: (b) fares or cargo rates applicable to similar domestic services offered by the licensee and one or more other licensees, including terms and conditions related to the fares or cargo rates, the number of seats available at those fares and the cargo capacity and cargo container types available at those rates; 2000, c. 15, s. 4 (4) Paragraph 66(3)(c) of the Act is replaced by the following: (c) any other information provided by the licensee, including information that the licensee is required to provide under section 83. 2000, c. 15, s. 4 (5) Subsection 66(4) of the Act is replaced by the following: Alternative domestic services (4) The Agency may find that a licensee is the only person providing a domestic service between two points if every alternative domestic service between those points is, in the Agency’s opinion, unreasonable, taking into consideration the number of stops, the number of seats offered, the frequency of service, the flight connections and the total travel time and, more specifically, in the case of cargo, the cargo capacity and cargo container types available. Alternative service (4.1) The Agency shall not make an order under subsection (1) or (2) in respect of a licensee found by the Agency to be the only person providing a domestic service between two points if, in the Agency’s opinion, there exists another domestic service that is not between the two points but is a reasonable alternative taking into consideration the convenience of access to the service, the number of stops, the number of seats offered, the frequency of service, the flight connections and the total travel time and, more specifically, in the case of cargo, the cargo capacity and cargo container types available. C. 19 2000, c. 15, s. 4 (6) Subsections 66(6) and (7) of the Act are repealed. Canada Transportatio 20. Paragraph 67(1)(a) of the Act is replaced by the following: (a) display in a prominent place at the business offices of the licensee a sign indicating that the tariffs for the domestic service offered by the licensee, including the terms and conditions of carriage, are available for public inspection at the business offices of the licensee, and allow the public to make such inspections; (a.1) publish the terms and conditions of carriage on any Internet site used by the licensee for selling the domestic service offered by the licensee; 2000, c. 15, s. 6 21. The portion of section 67.1 of the Act before paragraph (a) is replaced by the following: Fares or rates not set out in tariff 67.1 If, on complaint in writing to the Agency by any person, the Agency finds that, contrary to subsection 67(3), the holder of a domestic licence has applied a fare, rate, charge or term or condition of carriage applicable to the domestic service it offers that is not set out in its tariffs, the Agency may order the licensee to 2000, c. 15, s. 6 22. Subsection 67.2(1) of the French version of the Act is replaced by the following: Conditions déraisonnables 67.2 (1) S’il conclut, sur dépôt d’une plainte, que le titulaire d’une licence intérieure a appliqué pour un de ses services intérieurs des conditions de transport déraisonnables ou injustement discriminatoires, l’Office peut suspendre ou annuler ces conditions et leur en substituer de nouvelles. 2000, c. 15, s. 7 23. Subsection 68(1) of the Act is replaced by the following: Non-application of fares, etc. 68. (1) Sections 66 to 67.2 do not apply in respect of fares, rates or charges applicable to a domestic service provided for under a contract between a holder of a domestic licence and another person whereby the parties to the contract agree to keep its provisions confidential. 2006-2007 Non-application of terms and conditions Transports au Canada (1.1) Sections 66 to 67.2 do not apply in respect of terms and conditions of carriage applicable to a domestic service provided for under a contract referred to in subsection (1) to which an employer is a party and that relates to travel by its employees. 24. The Act is amended by adding the following after section 75: ISSUANCE OF INTERNATIONAL CHARTER PERMITS Issuance, amendment and cancellation of permits 75.1 The issuance of a permit for the operation of an international charter to a licensee and the amendment or cancellation of the permit shall be made in accordance with regulations made under paragraph 86(1)(e). 2000, c. 15, s. 7.1 25. Section 85.1 of the Act and the heading before it are replaced by the following: AIR TRAVEL COMPLAINTS Review and mediation 85.1 (1) If a person has made a complaint under any provision of this Part, the Agency, or a person authorized to act on the Agency’s behalf, shall review and may attempt to resolve the complaint and may, if appropriate, mediate or arrange for mediation of the complaint. Report (2) The Agency or a person authorized to act on the Agency’s behalf shall report to the parties outlining their positions regarding the complaint and any resolution of the complaint. Complaint not resolved (3) If the complaint is not resolved under this section to the complainant’s satisfaction, the complainant may request the Agency to deal with the complaint in accordance with the provisions of this Part under which the complaint has been made. Further proceedings (4) A member of the Agency or any person authorized to act on the Agency’s behalf who has been involved in attempting to resolve or mediate the complaint under this section may not act in any further proceedings before the Agency in respect of the complaint. Extension of time (5) The period of 120 days referred to in subsection 29(1) shall be extended by the period taken by the Agency or any person authorized to C. 19 Canada Transportatio act on the Agency’s behalf to review and attempt to resolve or mediate the complaint under this section. Part of annual report (6) The Agency shall, as part of its annual report, indicate the number and nature of the complaints filed under this Part, the names of the carriers against whom the complaints were made, the manner complaints were dealt with and the systemic trends observed. 2000, c. 15, s. 8 26. (1) Paragraph 86(1)(h) of the Act is amended by striking out the word “and” at the end of subparagraph (ii) and by replacing subparagraph (iii) with the following: (iii) authorizing the Agency to direct a licensee or carrier to take corrective measures that the Agency considers appropriate and to pay compensation for any expense incurred by a person adversely affected by the licensee’s or carrier’s failure to apply the fares, rates, charges or terms or conditions of carriage applicable to the service it offers that were set out in its tariffs, and (iv) requiring a licensee or carrier to display the terms and conditions of carriage for its international service on its Internet site, if the site is used for selling the international service of the licensee or carrier; (2) Paragraph 86(1)(j) of the Act is replaced by the following: (j) requiring licensees to include in contracts or arrangements with travel wholesalers, tour operators, charterers or other persons associated with the provision of air services to the public, or to make those contracts and arrangements subject to, terms and conditions specified or referred to in the regulations; (3) Subsection 86(3) of the Act is repealed. 27. The Act is amended by adding the following after section 86: 2006-2007 Transports au Canada Advertising regulations 86.1 (1) The Agency shall make regulations respecting advertising in all media, including on the Internet, of prices for air services within, or originating in, Canada. Contents of regulations (2) Without limiting the generality of subsection (1), regulations shall be made under that subsection requiring a carrier who advertises a price for an air service to include in the price all costs to the carrier of providing the service and to indicate in the advertisement all fees, charges and taxes collected by the carrier on behalf of another person in respect of the service, so as to enable a purchaser of the service to readily determine the total amount to be paid for the service. Regulations may prescribe (3) Without limiting the generality of subsection (1), the regulations may prescribe what are costs, fees, charges and taxes for the purposes of subsection (2). Regulations and orders 86.2 A regulation or order made under this Part may be conditional or unconditional or qualified or unqualified and may be general or restricted to a specific area, person or thing or group or class of persons or things. 28. Section 87 of the Act is amended by adding the following in alphabetical order: “metropolitan area” « région métropolitaine » “metropolitan area” means any area that is classified by Statistics Canada in its most recent census of Canada as a census metropolitan area; “public passenger service provider” « société de transport publique » “public passenger service provider” means VIA Rail Canada Inc., a passenger rail service provider designated by the Minister or an urban transit authority; “urban transit authority” « administration de transport de banlieue » “urban transit authority” means an entity owned or controlled by the federal government or a provincial, municipal or district government that provides commuter services. 29. The Act is amended by adding the following after section 95: C. 19 Canada Transportatio Noise and Vibration Obligation 95.1 When constructing or operating a railway, a railway company shall cause only such noise and vibration as is reasonable, taking into account (a) its obligations under sections 113 and 114, if applicable; (b) its operational requirements; and (c) the area where the construction or operation takes place. Guidelines 95.2 (1) The Agency shall issue, and publish in any manner that it considers appropriate, guidelines with respect to (a) the elements that the Agency will use to determine whether a railway company is complying with section 95.1; and (b) the collaborative resolution of noise and vibration complaints relating to the construction or operation of railways. Consultations (2) The Agency must consult with interested parties, including municipal governments, before issuing any guidelines. Not statutory instruments (3) The guidelines are not statutory instruments within the meaning of the Statutory Instruments Act. Complaints and investigations 95.3 (1) On receipt of a complaint made by any person that a railway company is not complying with section 95.1, the Agency may order the railway company to undertake any changes in its railway construction or operation that the Agency considers reasonable to ensure compliance with that section. Restriction (2) If the Agency has published guidelines under paragraph 95.2(1)(b), it must first satisfy itself that the collaborative measures set out in the guidelines have been exhausted in respect of the noise or vibration complained of before it conducts any investigation or hearing in respect of the complaint. Public passenger service providers 95.4 Sections 95.1 to 95.3 apply, with any modifications that are necessary, to public passenger service providers. 2006-2007 1999, c. 31, ss. 37(E) and 38(E) Transports au Canada 30. Section 104 of the Act and the heading before it are replaced by the following: Security Deposit of mortgage, hypothec or security agreement 104. (1) The following may, in accordance with the regulations, be deposited by any person in the office of the Registrar General of Canada or in any other place that the Governor in Council may, by order, specify: (a) a mortgage or hypothec issued by a railway company; (b) a security agreement entered into by a railway company; (c) an assignment or other document affecting a document referred to in paragraph (a) or (b); or (d) a copy of any document referred to in any of paragraphs (a) to (c) or a summary of any such document made in accordance with regulations made under section 105.1. Effect of deposit (2) Once the deposit is made, the mortgage or hypothec, security agreement, assignment or other document need not be deposited, registered or filed under any other law or statute respecting real or personal property, and the deposited document is valid against all persons. 31. (1) Subsections 105(1) and (2) of the Act are replaced by the following: Deposit of documents 105. (1) A document, or a copy or summary of a document, evidencing any of the following transactions may, in accordance with the regulations, be deposited by any person in the office of the Registrar General of Canada or in any other place that the Governor in Council may, by order, specify: (a) a lease, sale, conditional sale, instalment sale, mortgage, hypothec, bailment, leasing, deposit or security agreement relating to rolling stock or any accessories or appurtenances relating to rolling stock; and (b) an amendment, assignment or discharge of a document mentioned in paragraph (a). (2) Subsection 105(4) of the Act is repealed. C. 19 Canada Transportatio 32. The Act is amended by adding the following after section 105: Regulations Regulations 105.1 The Governor in Council may make regulations respecting (a) the depositing of copies of documents under sections 104 and 105; (b) the form and content of summaries to be deposited under those sections; and (c) the effects, in Canada, of the deposit, registration or filing in other countries of documents evidencing any transaction referred to in paragraph 105(1)(a) or of documents evidencing amendments, assignments or discharges of those documents. 33. Subsections 106(5) and (6) of the Act are replaced by the following: Limitation (5) No order of the Federal Court or any other court restraining action against the railway company affects any right or remedy of a person in respect of, including the right to take possession of, the rolling stock, or any accessories or appurtenances relating to the rolling stock, of the company as a creditor under a security agreement, mortgage or hypothec or as a bailor, depositary, lessor or vendor under a conditional sale or an instalment sale, whether as trustee or otherwise, unless (a) within 60 days after filing the scheme of arrangement, or any extended period to which the person may agree, the railway company agrees to perform all its obligations under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be; (b) any event that occurred before or after the scheme was filed and that constitutes a default under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be, is cured before the later of (i) 30 days after the event, and 2006-2007 Transports au Canada (ii) the end of the period referred to in paragraph (a); and (c) any event that occurred on or after the expiry of the period referred to in paragraph (a) and that constitutes a default under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be, is cured in accordance with that instrument or act. Extension of 60-day period (6) An extension of the 60-day period under paragraph (5)(a) does not prejudice the right to take possession of, or any other right or remedy in respect of, the rolling stock or the accessories or appurtenances relating to the rolling stock. 34. (1) Subsection 108(2) of the Act is repealed. (2) Subsection 108(5) of the Act is repealed. 2000, c. 16, s. 5(2) 35. Subsection 141(3) of the Act is replaced by the following: Notification of changes (2.1) Whenever the railway company makes a change to the plan, it shall notify the following of the change within 10 days after the change: (a) the Minister; (b) the Agency; (c) the minister responsible for transportation matters in the government of each province through which the railway line passes; (d) the chairperson of every urban transit authority through whose territory the railway line passes; and (e) the clerk or other senior administrative officer of every municipal or district government through which the railway line passes. When sale, etc., permitted (3) Subject to section 144.1, a railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation. 36. Subsections 143(3) and (4) of the Act are replaced by the following: C. 19 Disclosure of agreement with public passenger service provider (3) The advertisement must also disclose the existence of any agreement between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line. Canada Transportatio 37. Subsection 144(2) of the Act is repealed. 38. The Act is amended by adding the following after section 144: Rights and obligations under passenger service agreements continued 144.1 (1) If a railway line, or a railway company’s operating interest in a railway line, is sold, leased or otherwise transferred under subsection 141(3) or as the result of an advertisement under subsection 143(1) and, before the day such advertisement was made, an agreement was in force between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line, the rights and obligations of the railway company under the agreement in respect of the operation of that service on that line vest, as of the day the transfer takes place, in the person or entity to which the railway line, or the operating interest, is transferred, unless the public passenger service provider indicates otherwise before that day. Declaration that line is for general advantage of Canada (2) Whenever a railway company’s rights and obligations under an agreement with VIA Rail Canada Inc. are vested in another person or entity by subsection (1), the portion of the railway line to which the agreement relates is hereby declared, as of the day the transfer takes place, to be a work for the general advantage of Canada. Duration of declaration (3) The declaration referred to in subsection (2) ceases to have effect if (a) VIA Rail Canada Inc. ceases to operate a passenger rail service on the portion of railway line to which the declaration relates; or (b) the operation of the railway line is discontinued. 39. (1) The portion of subsection 145(1) of the Act before paragraph (a) is replaced by the following: 2006-2007 Offer to governments Transports au Canada 145. (1) The railway company shall offer to transfer all of its interest in the railway line to the governments and urban transit authorities mentioned in this section for not more than its net salvage value to be used for any purpose if (2) Subsection 145(2) of the Act is replaced by the following: Which governments receive offer (2) After the requirement to make the offer arises, the railway company shall send it simultaneously (a) to the Minister if the railway line passes through (i) more than one province or outside Canada, (ii) land that is or was a reserve, as defined in subsection 2(1) of the Indian Act, (iii) land that is the subject of an agreement entered into by the railway company and the Minister for the settlement of aboriginal land claims, or (iv) a metropolitan area; (b) to the minister responsible for transportation matters in the government of each province through which the railway line passes; (c) to the chairperson of every urban transit authority through whose territory the railway line passes; and (d) to the clerk or other senior administrative officer of every municipal or district government through whose territory the railway line passes. (3) The portion of subsection 145(3) of the Act before paragraph (a) is replaced by the following: Time limits for acceptance (3) Subject to subsection 146.3(3), after the offer is received C. 19 Canada Transportatio (4) Subsection 145(3) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following: (b.1) by an urban transit authority, it may accept it within an additional 30 days after the end of the period or periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and (c) by a municipal or district government, it may accept it within an additional 30 days after the end of the period or periods for acceptance under paragraphs (a), (b) and (b.1), if it is not accepted under those paragraphs. (5) Subsections 145(4) and (5) of the Act are replaced by the following: Communication and notice of acceptance (4) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company must notify the other governments and urban transit authorities of the acceptance. Net salvage value (5) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government or urban transit authority or the railway company, determine the net salvage value. 40. Section 146 of the Act is replaced by the following: Discontinuation 146. (1) If a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest in it is not entered into through that process, the railway company may discontinue operating the line on providing notice of the discontinuance to the Agency. After providing the notice, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by any public passenger service provider over the railway line. 2006-2007 Transports au Canada No obligation (2) If the railway line, or any interest of the railway company in it, is sold, leased or otherwise transferred by an agreement entered into through the process set out in sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by any public passenger service provider over the railway line as and from that date. 2000, c. 16, s. 8 41. Section 146.1 of the French version of the Act is replaced by the following: Indemnisation 146.1 La compagnie de chemin de fer qui cesse d’exploiter un embranchement tributaire du transport du grain mentionné à l’annexe I, ou une partie d’un tel embranchement, passant dans une municipalité fait à celle-ci trois versements annuels à compter de la date où elle avise l’Office en application du paragraphe 146(1). Chaque versement est égal au produit de 10 000 $ et du nombre de milles de l’embranchement ou de la partie d’embranchement situés dans le territoire de la municipalité. 42. The Act is amended by adding the following after section 146.1: List of metropolitan sidings and spurs to be dismantled 146.2 (1) A railway company shall prepare and keep up to date a list of its sidings and spurs that it plans to dismantle and that are located in metropolitan areas or within the territory served by any urban transit authority, except for sidings and spurs located on a railway right-of-way that will continue to be used for railway operations subsequent to their dismantlement. Publication of list and notification of changes (2) The railway company shall publish the list on its Internet site and, whenever it makes a change to the list, it shall notify the following of the change within 10 days after the change: (a) the Minister; (b) the Agency; C. 19 Canada Transportatio (c) the minister responsible for transportation matters in the government of the province in which the siding or spur that is the subject of the change is located; (d) the chairperson of the urban transit authority in whose territory the siding or spur that is the subject of the change is located; and (e) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur that is the subject of the change is located. Limitation (3) A railway company shall not take steps to dismantle a siding or a spur until at least 12 months have elapsed since the siding or spur was added to the list. Offer to governments (4) Before dismantling a siding or a spur that has been on the list for at least 12 months, a railway company shall send simultaneously to each of the following an offer to transfer all of its interest in the siding or spur for not more than its net salvage value: (a) the Minister; (b) the minister responsible for transportation matters in the government of the province in which the siding or spur is located; (c) the chairperson of the urban transit authority in whose territory the siding or spur is located; and (d) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur is located. Time limits for acceptance (5) Subject to subsection 146.3(3), after the offer is received (a) by the Minister, the Government of Canada may accept it within 30 days; (b) by the provincial minister, the government of the province may accept it within an additional 30 days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph; (c) by the chairperson of an urban transit authority, that authority may accept it within an additional 30 days after the end of the 2006-2007 Transports au Canada periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and (d) by the clerk or other senior administrative officer of a municipal or district government, that government may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a), (b) and (c), if it is not accepted under those paragraphs. Communication and notice of acceptance (6) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company shall notify the other governments and urban transit authorities of the acceptance. Net salvage value (7) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government, the urban transit authority or the railway company, determine the net salvage value. Dismantling permitted (8) If the offer is not accepted, the railway company may dismantle the siding or spur on providing notice to the Agency. Determination of net salvage value before expiry of time to accept offer 146.3 (1) A person to whom a railway line is offered under section 145, or to whom a siding or spur is offered under section 146.2, may apply to the Agency for a determination of the net salvage value of the railway line, siding or spur, as the case may be, at any time before the expiry of the period available to the person to accept the offer. Notification of application (2) The applicant shall without delay provide a copy of the application to the railway company, and the railway company shall without delay notify every other person to whom the offer was made and whose time to accept the offer has not expired that an application for a determination of the net salvage value was made. Effect of application (3) If an application is made under subsection (1), the time available to the applicant to accept the offer expires on the day that is 30 C. 19 Canada Transportatio days after the day the Agency notifies the applicant of its determination of the net salvage value and the 30-day period for each other person to accept the offer is calculated on the expiry of the period available to the applicant to accept the offer. Costs (4) The applicant shall reimburse the Agency’s costs associated with the application. Railway rights of way 146.4 Sections 146.2 and 146.3 apply, with any modifications that are necessary, to railway rights-of-way, that are located in metropolitan areas or within the territory served by any urban transit authority and in respect of which the sidings and spurs have been dismantled, that a railway company plans to sell, lease or otherwise transfer. Passenger railway stations 146.5 Sections 146.2 and 146.3 apply, with any modifications that are necessary, to passenger railway stations in Canada that a railway company plans to sell, lease or otherwise transfer or dismantle. 2000, c. 16, s. 10 43. (1) Paragraph 151(4)(c) of the Act is replaced by the following: (c) the Agency shall make adjustments to the index to reflect the costs incurred by the prescribed railway companies for the purpose of obtaining cars as a result of the sale, lease or other disposal or withdrawal from service of government hopper cars and the costs incurred by the prescribed railway companies for the maintenance of cars that have been so obtained. (2) Section 151 of the Act is amended by adding the following after subsection (5): Making of adjustments (6) Despite subsection (5), the Agency shall make the adjustments referred to in paragraph (4)(c) at any time that it considers appropriate and determine the date when the adjusted index takes effect. 44. The Act is amended by adding the following after section 152: 2006-2007 Transports au Canada DIVISION VI.1 PUBLIC PASSENGER SERVICE PROVIDERS Dispute Resolution Application 152.1 (1) Whenever a public passenger service provider and a railway company are unable to agree in respect of any matter raised in the context of the negotiation of any agreement concerning the use of the railway company’s railway, land, equipment, facilities or services by the public passenger service provider or concerning the conditions, or the amount to be paid, for that use, the public passenger service provider may, after reasonable efforts to resolve the matter have been made, apply to the Agency to decide the matter. Application (2) Whenever a public passenger service provider and a railway company are unable to agree in respect of any matter raised in the context of the implementation of any matter previously decided by the Agency, either the public passenger service provider or the railway company may, after reasonable efforts to resolve the matter have been made, apply to the Agency to decide the matter. Amount to be fixed 152.2 (1) If, pursuant to an application made under subsection 152.1(1), the Agency fixes the amount to be paid by the public passenger service provider for the use of any of the railway company’s railway, land, equipment, facilities or services, that amount must reflect the cost associated with the public passenger service provider’s use of that railway, land or equipment or those facilities or services. Factors (2) In determining that amount, the Agency must take into consideration, among other things, (a) the variable costs incurred by the railway company as a result of the public passenger service provider’s use of the railway company’s railway, land, equipment, facilities or services, including, but not limited to, its variable costs incurred to maintain safe operations and to avoid congestion and undue delay; (b) the railway company’s cost of capital, based on a rate set by the Agency, applied to the net book value of the assets to be used by C. 19 Canada Transportatio the public passenger service provider, less any amount to be paid by the public passenger service provider in respect of those assets; (c) the cost of any improvements made by the railway company in relation to the public passenger service provider’s use of the railway company’s railway, land, equipment, facilities or services; (d) a reasonable contribution towards the railway company’s constant costs; and (e) the value of any benefits that would accrue to the railway company from any investment made by the public passenger service provider. Duration of decision 152.3 Any decision of the Agency in respect of an application made under subsection 152.1(1) is binding on the parties for a period of five years after the day on which the decision is made, or for any other period agreed to by the parties that is specified in the decision. Agreements Providing copies 152.4 (1) A railway company or a public passenger service provider must provide to any person who requests it (a) a copy of any agreement entered into on or after the day on which this section comes into force concerning the use of the railway company’s railway, land, equipment, facilities or services; and (b) subject to subsection (2), a copy of any agreement entered into before the day on which this section comes into force concerning the use of the railway company’s railway, land, equipment, facilities or services. Exclusion (2) The Agency may, on application by a railway company or a public passenger service provider, exclude an agreement, or any specified portion of an agreement, from the application of paragraph (1)(b) on the grounds that harm would likely result to the applicant if the agreement, or the specified portion, were to be disclosed. 2006-2007 Transports au Canada 45. The Act is amended by adding the following after section 157: Agreements 46. Subsection 157.1(1) of the Act is replaced by the following: Agreements to apply transportation law to provincial railways 157.1 (1) The Minister may enter into an agreement with a provincial minister responsible for transportation matters providing for the administration, in relation to persons who operate railways within the legislative authority of the province, of any law respecting: (a) railway safety, accident investigation and railway crossings; or (b) railway noise or the regulation of the rates and conditions of service of railway companies to the extent that those matters are governed by this Act. 47. Section 158 of the Act and the heading before it are replaced by the following: Agreements made with provincial authorities 158. The Minister may enter into an agreement with a provincial authority to authorize the provincial authority to regulate the construction, operation and safety of a railway as well as the rates and conditions of service in the same manner and to the same extent as it may regulate a railway within its jurisdiction. 48. The Act is amended by adding the following after the heading “ADMINISTRATIVE MONETARY PENALTIES” before section 177: Definition of “Tribunal” 176.1 For the purposes of sections 180.1 to 180.7, “Tribunal” means the Transportation Appeal Tribunal of Canada established by subsection 2(1) of the Transportation Appeal Tribunal of Canada Act. 49. (1) The portion of section 177 of the Act before paragraph (a) is replaced by the following: 34 Regulations by Agency C. 19 Canada Transportatio 177. (1) The Agency may, by regulation, (2) Paragraph 177(1)(b) of the French version of the Act is replaced by the following: b) prévoir le montant maximal — plafonné, dans le cas des personnes physiques, à 5 000 $ et, dans le cas des personnes morales, à 25 000 $ — de la sanction applicable à chaque contravention à un texte ainsi désigné. (3) Section 177 of the Act is amended by adding the following after subsection (1): Regulations by Minister (2) The Minister may, by regulation, (a) designate as a provision or requirement the contravention of which may be proceeded with as a violation in accordance with sections 179 and 180 any provision of section 51 or of any regulation made under section 50 or 51, or any requirement of any of those provisions; and (b) prescribe the maximum amount payable for each violation, but the amount shall not exceed (i) $5,000, in the case of an individual, and (ii) $25,000, in the case of a corporation. 50. (1) The portion of subsection 178(1) of the Act before paragraph (a) is replaced by the following: Notices of violation 178. (1) The Agency, in respect of a violation referred to in subsection 177(1), or the Minister, in respect of a violation referred to in subsection 177(2), may (2) Subsection 178(3) of the French version of the Act is replaced by the following: Certificat (3) Chaque agent reçoit un certificat établi en la forme fixée par l’Office ou le ministre, selon le cas, et attestant sa qualité, qu’il présente sur demande à la personne à qui il veut demander des renseignements. 2006-2007 Transports au Canada 51. Subsection 179(1) of the French version of the Act is replaced by the following: Violation 179. (1) Toute contravention à un texte désigné au titre de l’article 177 constitue une violation pour laquelle le contrevenant s’expose à la sanction établie conformément à cet article. 2001, c. 29, s. 52 52. Section 180 of the Act is replaced by the following: Issuance of notice of violation 180. If a person designated as an enforcement officer under paragraph 178(1)(a) believes that a person has committed a violation, the enforcement officer may issue and serve on the person a notice of violation that names the person, identifies the violation and sets out (a) the penalty, established in accordance with the regulations made under section 177, for the violation that the person is liable to pay; and (b) the particulars concerning the time for paying and the manner of paying the penalty. Option 180.1 A person who has been served with a notice of violation must either pay the amount of the penalty specified in the notice or file with the Tribunal a written request for a review of the facts of the alleged contravention or of the amount of the penalty. Payment of specified amount precludes further proceedings 180.2 If a person who is served with a notice of violation pays the amount specified in the notice in accordance with the particulars set out in it, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the contravention by that person of the designated provision and no further proceedings under this Part shall be taken against the person in respect of that contravention. Request for review of determination 180.3 (1) A person who is served with a notice of violation and who wishes to have the facts of the alleged contravention or the amount of the penalty reviewed shall, on or before the date specified in the notice or within any further time that the Tribunal on application may allow, file a written request for a review with the Tribunal at the address set out in the notice. C. 19 Time and place for review (2) On receipt of a request filed under subsection (1), the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person who filed the request of the time and place in writing. Review procedure (3) The member of the Tribunal assigned to conduct the review shall provide the Minister and the person who filed the request with an opportunity consistent with procedural fairness and natural justice to present evidence and make representations. Burden of proof (4) The burden of establishing that a person has contravened a designated provision is on the Minister. Person not compelled to testify (5) A person who is alleged to have contravened a designated provision is not required, and shall not be compelled, to give any evidence or testimony in the matter. Certificate 180.4 If a person neither pays the amount of the penalty in accordance with the particulars set out in the notice of violation nor files a request for a review under subsection 180.3(1), the person is deemed to have committed the contravention alleged in the notice, and the Minister may obtain from the Tribunal a certificate in the form that may be established by the Governor in Council that indicates the amount of the penalty specified in the notice. Determination by Tribunal member 180.5 If, at the conclusion of a review under section 180.3, the member of the Tribunal who conducts the review determines that Canada Transportatio (a) the person has not contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and, subject to section 180.6, no further proceedings under this Part shall be taken against the person in respect of the alleged contravention; or (b) the person has contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and, subject to any regulations made under section 177, of the amount determined by the member of the 2006-2007 Transports au Canada Tribunal to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time that the member of the Tribunal may allow, the member of the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person. Right of appeal 180.6 (1) The Minister or a person affected by a determination made under section 180.5 may, within 30 days after the determination, appeal it to the Tribunal. Loss of right of appeal (2) A party that does not appear at a review hearing is not entitled to appeal a determination, unless they establish that there was sufficient reason to justify their absence. Disposition of appeal (3) The appeal panel of the Tribunal assigned to hear the appeal may dispose of the appeal by dismissing it or allowing it and, in allowing the appeal, the panel may substitute its decision for the determination appealed against. Certificate (4) If the appeal panel finds that a person has contravened the designated provision, the panel shall without delay inform the person of the finding and, subject to any regulations made under section 177, of the amount determined by the panel to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time allowed by the Tribunal, the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person. Registration of certificate 180.7 (1) If the time limit for the payment of an amount determined by the Minister in a notice of violation has expired, the time limit for the request for a review has expired, the time limit for an appeal has expired, or an appeal has been disposed of, on production in any superior court, a certificate issued under section 180.4, paragraph 180.5(b) or subsection 180.6(4) shall be registered in the court. When it is registered, a certificate has the same force and effect, and proceedings may be taken in connection with it, C. 19 Canada Transportatio as if it were a judgment in that court obtained by Her Majesty in right of Canada against the person named in the certificate for a debt of the amount set out in the certificate. Recovery of costs and charges (2) All reasonable costs and charges attendant on the registration of the certificate are recoverable in like manner as if they had been certified and the certificate had been registered under subsection (1). Amounts received deemed public moneys (3) An amount received by the Minister or the Tribunal under this section is deemed to be public money within the meaning of the Financial Administration Act. References to “Minister” 180.8 (1) In the case of a violation referred to in subsection 177(1), every reference to the “Minister” in sections 180.3 to 180.7 shall be read as a reference to the Agency or to a person designated by the Agency. Delegation by Minister (2) In the case of a violation referred to in subsection 177(2), the Minister may delegate to the Agency any power, duty or function conferred on the Minister under this Part. R.S., c. 32 (4th Supp.) RAILWAY SAFETY ACT 2002, c. 8, s. 168 53. Subsection 34(1) of the Railway Safety Act is replaced by the following: Enforcement through court 34. (1) An order or emergency directive made by the Minister may be made an order of the Federal Court or of any superior court, and shall be enforced in the same manner as an order of the court. 54. The Act is amended by adding the following after section 43: PART IV.1 POLICE CONSTABLES Appointment 44. (1) A judge of a superior court may appoint a person as a police constable for the enforcement of Part III of the Canada Transportation Act and for the enforcement of the laws of Canada or a province in so far as their enforcement relates to the protection of property 2006-2007 Transports au Canada owned, possessed or administered by a railway company and the protection of persons and property on that property. Limitation (2) The appointment may only be made on the application of a railway company that owns, possesses or administers property located within the judge’s jurisdiction. Jurisdiction (3) The police constable has jurisdiction on property under the administration of the railway company and in any place within 500 m of property that the railway company owns, possesses or administers. Power to take persons before a court (4) The police constable may take a person charged with an offence under Part III of the Canada Transportation Act, or any law referred to in subsection (1), before a court that has jurisdiction in such cases over any area where property owned, possessed or administered by the railway company is located, whether or not the person was arrested, or the offence occurred or is alleged to have occurred, within that area. Court’s jurisdiction (5) The court must deal with the person as though the person had been arrested, and the offence had occurred, within the area of the court’s jurisdiction, but the court may not deal with the person if the offence is alleged to have occurred outside the province in which the court is sitting. Dismissal or discharge of police constable (6) A superior court judge referred to in subsection (1) or the railway company may dismiss or discharge the police constable and the dismissal or discharge terminates the powers, duties and privileges conferred on the constable by this section. Procedures for dealing with complaints 44.1 (1) If one or more police constables are appointed with respect to a railway company, the railway company must (a) establish procedures for dealing with complaints concerning police constables; (b) designate one or more persons to be responsible for implementing the procedures; and (c) designate one or more persons to receive and deal with the complaints. C. 19 Procedures to be filed with Minister (2) The railway company must file with the Minister a copy of its procedures for dealing with complaints and must implement any recommendations made by the Minister, including recommendations concerning how the procedures are to be made public. Canada Transportatio TRANSITIONAL PROVISIONS Agreements entered into prior to the coming into force of section 44 55. (1) Section 152.1 of the Canada Transportation Act, as enacted by section 44 of this Act, does not apply in respect of agreements entered into before the day on which section 44 of this Act comes into force. Exception (2) Despite subsection (1), in the case of an agreement between VIA Rail Canada Inc. and a railway company that was entered into before the day on which section 44 of this Act comes into force, Via Rail Canada Inc. may apply to the Canadian Transportation Agency to decide any matter respecting the priority to be given to the trains of any of the parties to the agreement. In making its decision, the Agency shall have regard to the public interest and to the operational requirements of the parties to the agreement. Section 152.2 of the Canada Transportation Act, as enacted by section 44 of this Act, applies, with any modifications that are necessary, if the Agency, as part of its decision, fixes an amount to be paid by Via Rail Canada Inc. In the event of any inconsistency between the Agency’s decision and the provisions of the agreement, the Agency’s decision prevails to the extent of the inconsistency. Members continued 56. (1) Despite sections 3 to 5 of this Act, the members of the Canadian Transportation Agency, including its Chairperson and ViceChairperson, who hold office on the coming into force of those sections continue to hold office according to the conditions of their appointments, until the expiry of their respective terms. Temporary limitation on appointment of new members (2) Despite section 3 of this Act, the Governor in Council may not appoint or reappoint members of the Canadian Transportation Agency under subsection 7(2) or subsection 8(2), respectively, of the Canada 2006-2007 Transports au Canada Transportation Act until the number of members of the Agency, other than the Chairperson and the Vice-Chairperson, is less than three. Exception for appointment of Chairperson and ViceChairperson (3) Despite subsection (2) and section 3 of this Act, the Governor in Council may appoint or reappoint members of the Canadian Transportation Agency to be designated as the Chairperson or the Vice-Chairperson of the Agency under subsection 7(3) of the Canada Transportation Act. Adjustment to the volumerelated composite price index 57. Despite subsection 151(5) of the Canada Transportation Act, the Canadian Transportation Agency shall, once only, on request of the Minister of Transport and on the date set by the Agency, adjust the volume-related composite price index to reflect costs incurred by the prescribed railway companies, as defined in section 147 of that Act, for the maintenance of hopper cars used for the movement of grain, as defined in section 147 of that Act. Police constables appointed under section 158 of the Canada Transportation Act 58. Every police constable appointed under section 158 of the Canada Transportation Act who holds office on the day on which section 54 of this Act comes into force is deemed to have been appointed under section 44 of the Railway Safety Act, as enacted by section 54 of this Act. CONSEQUENTIAL AMENDMENTS R.S., c. 35 (4th Supp.) AIR CANADA PUBLIC PARTICIPATION ACT 2000, c. 15, s. 19 59. (1) Subsections 10.1(1) and (2) of the Air Canada Public Participation Act are replaced by the following: Deemed approval 10.1 (1) The proposed acquisition described in a letter dated December 21, 1999 from 853350 Alberta Ltd. and Air Canada to the Minister of Transport is deemed to be a transaction that has been approved by the Governor in Council under subsection 53.2(7) of the Canada Transportation Act on the day on which that subsection comes into force. C. 19 Deemed terms and conditions (2) The undertakings provided by 853350 Alberta Ltd. and Air Canada to the Minister of Transport in the letter referred to in subsection (1) are deemed to be terms and conditions specified in an approval by the Governor in Council under subsection 53.2(7) of the Canada Transportation Act that relate to national transportation concerns, and the undertakings provided by 853350 Alberta Ltd. and Air Canada to the Commissioner of Competition that are set out in Annex A to a letter from the Commissioner dated December 21, 1999 in respect of the acquisition referred to in that subsection are deemed to be terms and conditions of an approval under subsection 53.2(7) of the Canada Transportation Act that relate to potential prevention or lessening of competition. 2000, c. 15, s. 19 (2) The portion of subsection 10.1(4) of the French version of the Act before paragraph (a) is replaced by the following: Cessation d’effet des engagements (4) Le gouverneur en conseil peut, par décret, déclarer que la société 853350 Alberta Ltd. et Air Canada ne sont pas assujetties aux conditions mentionnées au paragraphe (2) si les engagements cessent d’avoir effet et ne reprennent pas effet dans les circonstances prévues : Canada Transportatio R.S., c. L-2 CANADA LABOUR CODE 1998, c. 10, s. 182 60. The definition “private constable” in subsection 3(1) of the Canada Labour Code is replaced by the following: “private constable” « agent de police privé » R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19 “private constable” means a person appointed as a police constable under Part IV.1 of the Railway Safety Act; COMPETITION ACT 2000, c. 15, s. 12 61. Subsections 29.1(3) to (5) of the Competition Act are replaced by the following: Contents of request (3) Requests under this section must be in writing and must (a) specify the information referred to in any of paragraphs (2)(a) to (f) that is required; and 2006-2007 Transports au Canada (b) state that the Minister of Transport requires the information for the purposes of section 53.1 or 53.2 of the Canada Transportation Act and identify the transaction being considered under that section. Restriction (4) The information communicated under subsection (1) may be used only for the purposes of section 53.1 or 53.2, as the case may be, of the Canada Transportation Act. Confidentiality (5) No person who performs or has performed duties or functions in the administration or enforcement of the Canada Transportation Act shall communicate or allow to be communicated to any other person any information communicated under subsection (1), except to persons who perform duties or functions under section 53.1 or 53.2 of that Act. 2000, c. 15, s. 14 62. Paragraph 94(c) of the Act is replaced by the following: (c) a merger or proposed merger approved under subsection 53.2(7) of the Canada Transportation Act and in respect of which the Minister of Transport has certified to the Commissioner the names of the parties. COORDINATING AMENDMENT Bill C-6 63. (1) Subsections (2) and (3) apply if Bill C-6, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the Aeronautics Act and to make consequential amendments to other Acts (referred to in this section as the “other Act”), receives royal assent. (2) If section 52 of this Act comes into force before section 44 of the other Act, then section 44 of the other Act and the heading before it are repealed. (3) If section 52 of this Act comes into force on the same day as section 44 of the other Act, then section 44 of the other Act is deemed to have come into force before section 52 of this Act. C. 19 Canada Transportatio COMING INTO FORCE Order in council — section 27 64. Section 27 comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Thirty-ninth Parliament, 56 Elizabeth II, 2007 STATUTES OF CANADA 2007 CHAPTER 31 An Act to permit the resumption and continuation of the operation of the National Research Universal Reactor at Chalk River ASSENTED TO 12th DECEMBER, 2007 BILL C-38 SUMMARY This enactment permits Atomic Energy of Canada Limited to resume and continue the operation of the National Research Universal Reactor at Chalk River in Ontario for a period of 120 days despite certain conditions of its licence under the Nuclear Safety and Control Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 56 ELIZABETH II —————— CHAPTER 31 An Act to permit the resumption and continuation of the operation of the National Research Universal Reactor at Chalk River [Assented to 12th December, 2007] Preamble Whereas Atomic Energy of Canada Limited is the operator of the National Research Universal Reactor at Chalk River, a reactor that is the major producer of medical isotopes in Canada; Whereas that reactor has been shut down for maintenance purposes and Atomic Energy of Canada Limited is prohibited from resuming the operation of the reactor until conditions of its licence relating to earthquake-proof backup units have been complied with; And whereas the shutdown has created a serious shortage of medical isotopes in Canada and around the world and is putting the health of Canadians at risk; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Permission to resume and continue operation 1. (1) Atomic Energy of Canada Limited may resume and continue the operation of the National Research Universal Reactor at Chalk River in Ontario for a period of 120 days after the coming into force of this Act despite any conditions of its licence under the Nuclear Safety and Control Act relating to the installation of seismically qualified motor starters on the heavy water pumps and the connection to the emergency power supply. C. 31 Safety considerations (2) Atomic Energy of Canada Limited may resume and continue the operation of the National Research Universal Reactor at Chalk River only if it is satisfied that it is safe to do so. Authority of the Canadian Nuclear Safety Commission 2. For greater certainty, nothing in this Act derogates from the authority of the Canadian Nuclear Safety Commission in respect of Atomic Energy of Canada Limited, except for the specific licence conditions mentioned in subsection 1(1). National Research Univers Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 25 An Act respecting the protection of marks related to the Olympic Games and the Paralympic Games and protection against certain misleading business associations and making a related amendment to the Trade-marks Act ASSENTED TO 22nd JUNE, 2007 BILL C-47 SUMMARY This enactment provides for the protection of Olympic and Paralympic marks and protection against certain misleading business associations between a business and the Olympic Games, the Paralympic Games or certain committees associated with those Games. This enactment also makes a related amendment to the Trade-marks Act to preclude the registration of a trade-mark whose adoption is prohibited by this enactment. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT RESPECTING THE PROTECTION OF MARKS RELATED TO THE OLYMPIC GAMES AND THE PARALYMPIC GAMES AND PROTECTION AGAINST CERTAIN MISLEADING BUSINESS ASSOCIATIONS AND MAKING A RELATED AMENDMENT TO THE TRADE-MARKS ACT 1. Olympic and Paralympic Marks Act 2. Interpretation 3. Prohibited marks 4. Prohibited acts 5. Remedies 6. Interim or interlocutory injunction 7. Limitation period 8. Detention and disposition of imported wares 9. Exportation of wares 10. Jurisdiction of Federal Court 11. Effect of public notice 12. Regulations AMENDMENT TO THIS ACT 13. Schedules 2 and 3 RELATED AMENDMENT 14. Trade-marks Act 15. Order in council COMING INTO FORCE SCHEDULES 1-3 55-56 ELIZABETH II —————— CHAPTER 25 An Act respecting the protection of marks related to the Olympic Games and the Paralympic Games and protection against certain misleading business associations and making a related amendment to the Trade-marks Act [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title 1. This Act may be cited as the Olympic and Paralympic Marks Act. Interpretation 2. (1) The following definitions apply in this Act. “COC” « COC » “court” « tribunal » “CPC” « CPC » “Olympic or Paralympic mark” « marque olympique ou paralympique » “organizing committee” « comité d’organisation » “COC” means the Canadian Olympic Committee, a corporation incorporated under Part II of The Companies Act, 1934, chapter 33 of the Statutes of Canada, 1934. “court” means the Federal Court or the superior court of a province. “CPC” means the Canadian Paralympic Committee, a corporation incorporated under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970. “Olympic or Paralympic mark” means, subject to subsection (3), a mark set out in Schedule 1 or 2. “organizing committee” means any organization that is recognized, by the COC and a city in Canada elected to host an Olympic Games or C. 25 Olympic and Pa Paralympic Games, as being responsible for the planning, organizing, financing and staging of those Games. Words and expressions (2) Unless the context otherwise requires, words and expressions used in this Act have the same meaning as in the Trade-marks Act. Schedule 2 marks (3) A mark set out in column 1 of Schedule 2 is considered not to be an Olympic or Paralympic mark after the corresponding expiry date set out in column 2. Prohibited marks 3. (1) No person shall adopt or use in connection with a business, as a trade-mark or otherwise, an Olympic or Paralympic mark or a mark that so nearly resembles an Olympic or Paralympic mark as to be likely to be mistaken for it. Prohibited marks — translations (2) No person shall use in connection with a business, as a trade-mark or otherwise, a mark that is a translation in any language of an Olympic or Paralympic mark. Exception (3) Subsections (1) and (2) do not apply to an organizing committee, the COC or the CPC. Excepted uses (4) Nothing in subsection (1) or (2) prevents (a) the adoption, use or registration, as a trade-mark or otherwise, of a mark described in subsection (1) or (2) if the person has obtained the written consent of an organizing committee during any period prescribed by regulation or of the COC or the CPC during any other period, and acts in accordance with that consent; (b) the use of a trade-mark by an owner or licensee of the trade-mark if an owner or licensee of the trade-mark used it before March 2, 2007 and the use subsequent to that date is in association with (i) the same wares or services as those for which the trade-mark was used before that date, (ii) the wares or services in respect of which it is registered under the Trademarks Act, or 2006-2007 Marques olympique (iii) any other wares or services of the same general class as that for which it is registered or was, before that date, used; (c) the use of a trade-mark by an owner or licensee of the trade-mark if an owner or licensee of the trade-mark used it before the day of publication in Part I of the Canada Gazette of an order that, by adding a mark to Schedule 1 or 2, prohibits the use of the trademark and the use subsequent to that day is in association with (i) the same wares or services as those for which the trade-mark was used before that date, (ii) the wares or services in respect of which it is registered under the Trademarks Act, or (iii) any other wares or services of the same general class as that for which it is registered or was, before that date, used; (d) the use by Her Majesty, a university or a public authority, or a person authorized by Her Majesty, the university or the public authority, of a badge, crest, emblem or other mark in respect of which Her Majesty, the university or the public authority, as the case may be, has requested that the Registrar give public notice under paragraph 9(1)(n) of the Trade-marks Act, if the notice is given before March 2, 2007; (e) the use by Her Majesty, a university or a public authority, or a person authorized by Her Majesty, the university or the public authority, of a badge, crest, emblem or other mark in respect of which Her Majesty, the university or the public authority, as the case may be, has requested that the Registrar give public notice under paragraph 9(1)(n) of the Trade-marks Act, if the notice is given before the day of publication in Part I of the Canada Gazette of an order that, by adding a mark to Schedule 1 or 2, prohibits the use of the badge, crest, emblem or other mark; (f) the use of a protected geographical indication identifying a wine or spirit, if the wine or spirit originates in the territory indicated by the indication; C. 25 Olympic and Pa (g) the use by a person of their address, the geographical name of their place of business, an accurate indication of the origin of their wares or services, or an accurate description of their wares or services to the extent that the description is necessary to explain those wares or services to the public; (h) the use by an individual of their name; or (i) the use by an individual who has been selected by the COC or the CPC to compete, or has competed, in an Olympic Games or Paralympic Games, or another person with that individual’s consent, of the mark “Olympian”, “Olympic”, “Olympien” or “Olympique”, or “Paralympian”, “Paralympic”, “Paralympien” or “Paralympique”, as the case may be, in reference to the individual’s participation in, or selection for, those Games. Clarification (5) For greater certainty, the use of an Olympic or Paralympic mark or a translation of it in any language in the publication or broadcasting of a news report relating to Olympic Games or Paralympic Games, including by means of electronic media, or for the purposes of criticism or parody relating to Olympic Games or Paralympic Games, is not a use in connection with a business. Clarification (6) For greater certainty, the inclusion of an Olympic or Paralympic mark or a translation of it in any language in an artistic work, within the meaning of the Copyright Act, by the author of 2006-2007 Marques olympique that work, is not in itself a use in connection with a business if the work is not reproduced on a commercial scale. Prohibited acts 4. (1) No person shall, during any period prescribed by regulation, in association with a trade-mark or other mark, promote or otherwise direct public attention to their business, wares or services in a manner that misleads or is likely to mislead the public into believing that (a) the person’s business, wares or services are approved, authorized or endorsed by an organizing committee, the COC or the CPC; or (b) a business association exists between the person’s business and the Olympic Games, the Paralympic Games, an organizing committee, the COC or the CPC. Use of expressions set out in Schedule 3 (2) In determining whether a person has acted contrary to subsection (1), the court shall take into account any evidence that the person has used, in any language, (a) a combination of expressions set out in Part 1 of Schedule 3; or (b) the combination of an expression set out in Part 1 of Schedule 3 with an expression set out in Part 2 of that Schedule. Proximity to mark (3) The placement of an advertisement in proximity to published material — including material published electronically — that contains an Olympic or Paralympic mark or a translation of it in any language is not in itself an act contrary to subsection (1). Remedies 5. (1) If a court finds, on application, that an act has been done contrary to section 3 or 4, it may make any order that it considers appropriate in the circumstances, including an order providing for relief by way of injunction and the recovery of damages or profits, for punitive damages, for the publication of a corrective advertisement and for the destruction, exportation or other disposition (a) of any offending wares, packages, labels and advertising material; and C. 25 Olympic and Pa (b) of any dies used to apply to those wares, packages, labels or advertising material a mark whose adoption or use is prohibited under section 3. Application to court (2) An application referred to in subsection (1) may be made (a) during any period prescribed by regulation, only by (i) an organizing committee, or (ii) the COC or the CPC, or a person who uses an Olympic or Paralympic mark with the written consent referred to in paragraph 3(4)(a), if the COC, the CPC or the person, as the case may be, has obtained during that period an organizing committee’s written authorization to make the application, or has made a written request during that period to an organizing committee for its authorization to which the committee has not responded, in writing, within 10 days after receipt of the request; or (b) during any other period, only by (i) the COC or the CPC, or (ii) an organizing committee, or a person who uses an Olympic or Paralympic mark with the written consent referred to in paragraph 3(4)(a), if the committee or person, as the case may be, has obtained during that period the COC’s or the CPC’s written authorization to make the application, or has made a written request during that period to the COC or the CPC for its authorization to which the COC or the CPC, as the case may be, has not responded, in writing, within 10 days after receipt of the request. No unreasonable refusal (3) The authorization may not be unreasonably refused. Interim or interlocutory injunction 6. If an interim or interlocutory injunction is sought during any period prescribed by regulation in respect of an act that is claimed to be contrary to section 3 or 4, an applicant is not required to prove that they will suffer irreparable harm. 2006-2007 Limitation period Detention and disposition of imported wares Marques olympique 7. No remedy may be awarded in respect of an act contrary to section 3 or 4 that was committed more than three years before the commencement of an action under subsection 5(1). 8. (1) A court may, on application, (a) if it considers that any wares to which an Olympic or Paralympic mark has been applied are about to be imported into Canada or have been imported into Canada but have not yet been released, within the meaning of the Customs Act, and that their distribution in Canada would be a use of the mark as a trademark that is contrary to section 3, make an order (i) directing the Minister of Public Safety and Emergency Preparedness to take reasonable measures, on the basis of information reasonably required by that Minister and provided by the applicant, to detain the wares, (ii) directing that Minister to notify the applicant and the owner or importer of the wares, without delay after detaining them, of the detention and the reasons for it, and (iii) providing for any other matters that the court considers appropriate; and (b) if it finds that the distribution in Canada of wares detained in accordance with an order made under paragraph (a) would be a use of the mark as a trade-mark that is contrary to section 3, make any order that it considers appropriate in the circumstances, including an order that the wares be destroyed or exported or that they be delivered up to the applicant as the applicant’s property absolutely. Application to court (2) An application referred to in subsection (1) may be made (a) during any period prescribed by regulation, only by (i) an organizing committee, or (ii) the COC or the CPC, if it has obtained during that period an organizing committee’s written authorization to make the application, or has made a written request C. 25 Olympic and Pa during that period to an organizing committee for its authorization to which the committee has not responded, in writing, within 10 days after receipt of the request; or (b) during any other period, only by (i) the COC or the CPC, or (ii) an organizing committee, if the committee has obtained during that period the COC’s or the CPC’s written authorization to make the application, or has made a written request during that period to the COC or the CPC for its authorization to which the COC or the CPC, as the case may be, has not responded, in writing, within 10 days after receipt of the request. No unreasonable refusal (3) The authorization may not be unreasonably refused. Application for detention order (4) An application for an order under paragraph (1)(a) may be made either on notice or ex parte. In all cases, notice of such an application must be given to the Minister of Public Safety and Emergency Preparedness. Security (5) Before making an order under paragraph (1)(a), the court may require the applicant to furnish security, in an amount fixed by the court, (a) to cover duties, within the meaning of the Customs Act, and storage and handling charges, and any other amount that may become chargeable against the wares; and (b) to answer any damages that may by reason of the order be sustained by the owner, importer or consignee of the wares. Application for directions (6) The Minister of Public Safety and Emergency Preparedness may apply to the court for directions in implementing an order made under paragraph (1)(a). Permission to inspect (7) The Minister of Public Safety and Emergency Preparedness may give the applicant or importer of the wares detained in accordance with an order made under paragraph (1)(a) an opportunity to inspect them for the purpose of 2006-2007 Marques olympique substantiating, in the case of the applicant, or refuting, in the case of the importer, the applicant’s claim. Release of wares (8) Unless an order made under paragraph (1)(a) provides otherwise, the Minister of Public Safety and Emergency Preparedness shall, subject to the Customs Act and to any other Act of Parliament that prohibits, controls or regulates the importation or exportation of goods, release, within the meaning of the Customs Act, the wares detained in accordance with the order without further notice to the applicant if, two weeks after the applicant has been notified under subparagraph (1)(a)(ii), that Minister has not been notified that an action has been commenced for an order under paragraph (1)(b). Exportation of wares 9. A court shall not make an order under subsection 5(1) or paragraph 8(1)(b) for the exportation of wares bearing an Olympic or Paralympic mark unless it includes, as a condition of the order, a requirement that the mark be removed from the wares before they are exported. Jurisdiction of Federal Court 10. The Federal Court has jurisdiction to entertain any action or proceeding for the enforcement of any of the provisions of this Act or of any right or remedy conferred or provided by this Act. Effect of public notice 11. For greater certainty, public notice by the Registrar of the adoption and use of a badge, crest, emblem or other mark in accordance with a request made under paragraph 9(1)(n) of the Trade-marks Act has no legal effect if, at the time of the request, the requester was prohibited under section 3 from adopting or using it. Regulations 12. (1) The Governor in Council may, by regulation, on the recommendation of the Minister of Industry, prescribe periods for the purposes of paragraph 3(4)(a), subsection 4(1), paragraph 5(2)(a), section 6 and paragraph 8(2)(a). Orders (2) The Governor in Council may, by order, on the recommendation of the Minister of Industry, C. 25 Olympic and Pa (a) amend Schedule 1 by adding or deleting any mark relating to Olympic Games or Paralympic Games, other than those that are referred to in paragraph (b); (b) amend Schedule 2 by adding to or deleting from that Schedule, in column 1, any mark relating to Olympic Games or Paralympic Games hosted by Canada, and, in respect of any such mark, adding to or deleting from that Schedule, in column 2, the corresponding expiry date; and (c) amend Schedule 3 by adding any expression that in the opinion of the Governor in Council may be relevant in determining whether an act has been done contrary to section 4, or by deleting any expression set out in that Schedule. AMENDMENT TO THIS ACT Schedules 2 and 3 13. All the items in Schedules 2 and 3 are repealed. RELATED AMENDMENT R.S., c. T-13 TRADE-MARKS ACT 14. Subsection 12(1) of the Trade-marks Act is amended by striking out the word “and” at the end of paragraph (g), by adding the word “and” at the end of paragraph (h) and by adding the following after paragraph (h): (i) subject to subsection 3(3) and paragraph 3(4)(a) of the Olympic and Paralympic Marks Act, a mark the adoption of which is prohibited by subsection 3(1) of that Act. COMING INTO FORCE Order in council 15. (1) The provisions of this Act, other than section 13, come into force on a day or days to be fixed by order of the Governor in Council. Section 13 (2) Section 13 comes into force on December 31, 2010. 2006-2007 Marques olympiques et pa SCHEDULE 1 (Subsection 2(1) and paragraphs 3(4)(c) and (e) and 12(2)(a)) MARKS C. 25 Olympic and Paralympi 2006-2007 Marques olympiques et pa SCHEDULE 2 (Subsections 2(1) and (3), paragraphs 3(4)(c) and (e) and 12(2)(b) and section 13) MARKS C. 25 Olympic and Paralympi 2006-2007 Marques olympiques et pa SCHEDULE 3 (Subsection 4(2), paragraph 12(2)(c) and section 13) EXPRESSIONS Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 24 An Act to amend the Citizenship Act (adoption) ASSENTED TO 22nd JUNE, 2007 BILL C-14 SUMMARY This enactment amends the Citizenship Act to reduce the distinctions in eligibility for citizenship between adopted foreign children and children born abroad of Canadian parents. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 24 An Act to amend the Citizenship Act (adoption) [Assented to 22nd June, 2007] R.S., c. C-29 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Subsection 3(1) of the Citizenship Act is amended by adding the following after paragraph (c): (c.1) the person has been granted citizenship under section 5.1; 2. The Act is amended by adding the following after section 5: Adoptees — minors 5.1 (1) Subject to subsection (3), the Minister shall on application grant citizenship to a person who was adopted by a citizen after February 14, 1977 while the person was a minor child if the adoption (a) was in the best interests of the child; (b) created a genuine relationship of parent and child; (c) was in accordance with the laws of the place where the adoption took place and the laws of the country of residence of the adopting citizen; and (d) was not entered into primarily for the purpose of acquiring a status or privilege in relation to immigration or citizenship. C. 24 Adoptees — adults (2) Subject to subsection (3), the Minister shall on application grant citizenship to a person who was adopted by a citizen after February 14, 1977 while the person was at least 18 years of age if Citizenship (a) there was a genuine relationship of parent and child between the person and the adoptive parent before the person attained the age of 18 years and at the time of the adoption; and (b) the adoption meets the requirements set out in paragraphs (1)(c) and (d). Quebec adoptions (3) The Minister shall on application grant citizenship to a person in respect of whose adoption — by a citizen who is subject to Quebec law governing adoptions — a decision was made abroad after February 14, 1977 if (a) the Quebec authority responsible for international adoptions advises, in writing, that in its opinion the adoption meets the requirements of Quebec law governing adoptions; and (b) the adoption was not entered into primarily for the purpose of acquiring a status or privilege in relation to immigration or citizenship. 3. Section 27 of the Act is amended by adding the following after paragraph (d): (d.1) providing for the factors to be considered in determining whether the requirements set out in section 5.1 are met; 3.1 The Act is amended by adding the following after section 27: Laying of proposed regulations 27.1 (1) The Minister shall cause a copy of each regulation proposed to be made under paragraph 27(d.1) to be laid before each House of Parliament, and each House shall refer the proposed regulation to the appropriate Committee of that House. Exception (2) No proposed regulation that has been laid under subsection (1) need again be laid under that subsection, whether or not it has been altered. 2006-2007 Making of regulations Coming into force Citoyenneté (3) The Governor in Council may make the regulation at any time after the proposed regulation has been laid before each House of Parliament under subsection (1). 4. This Act comes into force on the earlier of (a) a day to be fixed by order of the Governor in Council, and (b) six months after the day on which this Act receives royal assent. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 30 An Act to ensure Canada meets its global climate change obligations under the Kyoto Protocol ASSENTED TO 22nd JUNE, 2007 BILL C-288 SUMMARY The purpose of this enactment is to ensure that Canada meets its global climate change obligations under the Kyoto Protocol. It requires the Minister of the Environment to establish an annual Climate Change Plan and to make regulations respecting climate change. It also requires the National Round Table on the Environment and the Economy to advise the Minister — to the extent that it is within its purpose — on the effectiveness of the plans, and requires the Commissioner of the Environment and Sustainable Development to submit to the Speaker of the House of Commons a report of the progress in the implementation of the plans. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 30 An Act to ensure Canada meets its global climate change obligations under the Kyoto Protocol [Assented to 22nd June, 2007] Preamble Recognizing that Canadians have a deep pride in their natural environment, and in being responsible stewards of their land, Canada is committed to the principle of environmentally sustainable development, a healthy economy and a healthy society depend on a healthy environment, Canadians want to take responsibility for their environmental problems, and not pass those problems on to future generations, global climate change is one of the most serious threats facing humanity and Canada, and poses significant risks to our environment, economy, society and human health, the national science academies of Canada, Brazil, China, France, Germany, India, Italy, Japan, Russia, the United Kingdom and the United States declared the following in June 2005: “The scientific understanding of climate change is now sufficiently clear to justify nations taking prompt action. It is vital that all nations identify cost-effective steps that they can take now, to contribute to substantial and long-term reduction in net global greenhouse gas emissions.”, climate change is a global problem that crosses national borders, C. 30 Kyoto Protocol Canada has a clear responsibility to take action on climate change, given that our per capita greenhouse gas emissions and wealth are among the highest in the world, and that some of the most severe impacts of climate change are already unfolding in Canada, particularly in the Arctic, the objective of the United Nations Framework Convention on Climate Change (UNFCCC) is “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”, Canada has ratified the UNFCCC, which entered into force in 1994, the Kyoto Protocol requires that Canada reduce its average annual greenhouse gas emissions during the period 2008-2012 to six per cent below their level in 1990, Canada ratified the Kyoto Protocol in 2002 following a majority vote in Parliament, and the Protocol entered into force in 2005, this legislation is intended to meet, in part, Canada’s obligations under the UNFCCC and the Kyoto Protocol, and the problem of climate change requires immediate action by all governments in Canada as well as by corporations and individual Canadians, NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada enacts as follows: 2006-2007 Mise en oeuvre du P SHORT TITLE Short title 1. This Act may be cited as the Kyoto Protocol Implementation Act. INTERPRETATION Definitions 2. The definitions in this section apply in this Act. “Climate Change Plan” « Plan sur les changements climatiques » “Climate Change Plan” means a plan that meets the conditions set out in section 5. “greenhouse gas” « gaz à effet de serre » “Kyoto Protocol” « Protocole de Kyoto » “Minister” « ministre » “greenhouse gas” means one of the greenhouse gases listed in Annex A to the Kyoto Protocol. “Kyoto Protocol” means the Kyoto Protocol to the United Nations Framework Convention on Climate Change, agreed to on December 11, 1997 at Kyoto, Japan, and ratified by Canada on December 17, 2002, as amended from time to time, to the extent that the amendment is binding on Canada. “Minister” means the Minister of the Environment. PURPOSE Purpose 3. The purpose of this Act is to ensure that Canada takes effective and timely action to meet its obligations under the Kyoto Protocol and help address the problem of global climate change. HER MAJESTY Binding on Her Majesty 4. This Act is binding on Her Majesty in Right of Canada. CLIMATE CHANGE PLAN Climate Change Plan 5. (1) Within 60 days after this Act comes into force and not later than May 31 of every year thereafter until 2013, the Minister shall prepare a Climate Change Plan that includes C. 30 Kyoto Protocol (a) a description of the measures to be taken to ensure that Canada meets its obligations under Article 3, paragraph 1, of the Kyoto Protocol, including measures respecting (i) regulated emission limits and performance standards, (ii) market-based mechanisms such as emissions trading or offsets, (iii) spending or fiscal measures or incentives, (iii.1) a just transition for workers affected by greenhouse gas emission reductions, and (iv) cooperative measures or agreements with provinces, territories or other governments; (b) for each measure referred to in paragraph (a), (i) the date on which it will come into effect, and (ii) the amount of greenhouse gas emission reductions that have resulted or are expected to result for each year up to and including 2012, compared to the levels in the most recently available emission inventory for Canada; (c) the projected greenhouse gas emission level in Canada for each year from 2008 to 2012, taking into account the measures referred to in paragraph (a), and a comparison of those levels with Canada’s obligations under Article 3, paragraph 1, of the Kyoto Protocol; (d) an equitable distribution of greenhouse gas emission reduction levels among the sectors of the economy that contribute to greenhouse gas emissions; (e) a report describing the implementation of the Climate Change Plan for the previous calendar year; and (f) a statement indicating whether each measure proposed in the Climate Change Plan for the previous calendar year has been implemented by the date projected in the Plan 2006-2007 Mise en oeuvre du P and, if not, an explanation of the reason why the measure was not implemented and how that failure has been or will be redressed. Provinces Publication (2) A Climate Change Plan shall respect provincial jurisdiction and take into account the relative greenhouse gas emission levels of provinces. (3) The Minister shall publish (a) within 2 days after the expiry of each period referred to in subsection (1), a Climate Change Plan in any manner the Minister considers appropriate, with an indication that persons may submit comments about the Plan to the Minister within 30 days of the Plan’s publication; and (b) within 10 days after the expiry of each period referred to in subsection (1), a notice of the publication of the Plan in the Canada Gazette. Tabling (4) The Minister shall table each Climate Change Plan in each House of Parliament by the day set out in subsection (1) or on any of the first three days on which that House is sitting after that day. Committee (5) A Climate Change Plan that is laid before the House of Commons is deemed to be referred to the standing committee of the House that normally considers matters relating to the environment or to any other committee that that House may designate for the purposes of this section. REGULATIONS Regulations 6. (1) The Governor in Council may make regulations (a) limiting the amount of greenhouse gases that may be released into the environment; (a.1) within the limits of federal constitutional authority, limiting the amount of greenhouse gases that may be released in each province by applying to each province Article 3, paragraphs 1, 3, 4, 7, 8, and 10 to 12, of the Kyoto Protocol, with any modifications that the circumstances require; C. 30 Kyoto Protocol (b) establishing performance standards designed to limit greenhouse gas emissions; (c) respecting the use or production of any equipment, technology, fuel, vehicle or process in order to limit greenhouse gas emissions; (d) respecting permits or approvals for the release of any greenhouse gas; (e) respecting trading in greenhouse gas emission reductions, removals, permits, credits, or other units; (f) respecting monitoring, inspections, investigations, reporting, enforcement, penalties or other matters to promote compliance with regulations made under this Act; (g) designating the contravention of a provision or class of provisions of the regulations by a person or class of persons as an offence punishable by indictment or on summary conviction and prescribing, for a person or class of persons, the amount of the fine and imprisonment for the offence; and (h) respecting any other matter that is necessary to carry out the purposes of this Act. Measures province considers appropriate (2) Despite paragraph (1)(a.1), and for greater certainty, each province may take any measure that it considers appropriate to limit greenhouse gas emissions. Obligation to implement Kyoto Protocol 7. (1) Within 180 days after this Act comes into force, the Governor in Council shall ensure that Canada fully meets its obligations under Article 3, paragraph 1, of the Kyoto Protocol by making, amending or repealing the necessary regulations under this or any other Act. Obligation to maintain implementation of Kyoto Protocol (2) At all times after the period referred to in subsection (1), the Governor in Council shall ensure that Canada fully meets its obligations under Article 3, paragraph 1, of the Kyoto 2006-2007 Mise en oeuvre du P Protocol by making, amending or repealing the necessary regulations under this or any other Act. Other governmental measures (3) In ensuring that Canada fully meets its obligations under Article 3, paragraph 1, of the Kyoto Protocol, pursuant to subsections (1) and (2), the Governor in Council may take into account any reductions in greenhouse gas emissions that are reasonably expected to result from the implementation of other governmental measures, including spending and federalprovincial agreements. Consultation for proposed regulations 8. At least 60 days before making a regulation under this Act or, with respect to subsections 7(1) and (2), any other Act, the Governor in Council shall publish the proposed regulation in the Canada Gazette for consultation purposes with statements: (a) setting out the greenhouse gas emission reductions that are reasonably expected to result from the regulation for every year it will be in force, up to and including 2012; and (b) indicating that persons may submit comments to the Minister within 30 days after the publication of the regulation. EXPECTED REDUCTIONS Minister’s statement 9. (1) Within 120 days after this Act comes into force, the Minister shall prepare a statement setting out the greenhouse gas emission reductions that are reasonably expected to result for each year up to and including 2012 from (a) each regulation made or to be made to ensure that Canada fully meets its obligations under Article 3, paragraph 1, of the Kyoto Protocol, pursuant to subsections 7(1) and (2); and (b) each measure referred to in subsection 7(3). Minister (2) The Minister shall C. 30 Kyoto Protocol (a) publish the statement in the Canada Gazette and in any other manner that the Minister considers appropriate within 10 days of the period set out in subsection (1); and (b) table the statement in each House of Parliament by the day set out in subsection (1) or on any of the first three days on which that House is sitting after that day. REPORT National Round Table on the Environment and the Economy 10. (1) Within 60 days after the Minister publishes a Climate Change Plan under subsection 5(3), or within 30 days after the Minister publishes a statement under subsection 9(2), the National Round Table on the Environment and the Economy established by section 3 of the National Round Table on the Environment and the Economy Act shall perform the following with respect to the Plan or statement: (a) undertake research and gather information and analyses on the Plan or statement in the context of sustainable development; and (b) advise the Minister on issues that are within its purpose, as set out in section 4 of the National Round Table on the Environment and the Economy Act, including the following, to the extent that they are within that purpose: (i) the likelihood that each of the proposed measures or regulations will achieve the emission reductions projected in the Plan or statement, (ii) the likelihood that the proposed measures or regulations will enable Canada to meet its obligations under Article 3, paragraph 1, of the Kyoto Protocol, and (iii) any other matters that the Round Table considers relevant. Minister (2) The Minister shall (a) within three days after receiving the advice referred to in paragraph (1)(b): 2006-2007 Mise en oeuvre du P (i) publish it in any manner that the Minister considers appropriate, and (ii) submit it to the Speakers of the Senate and the House of Commons and the Speakers shall table it in their respective Houses on any of the first three days on which that House is sitting after the day on which the Speaker receives the advice; and (b) within 10 days after receiving the advice, publish a notice in the Canada Gazette setting out how the advice was published and how a copy of the publication may be obtained. Commissioner of the Environment and Sustainable Development 10.1 (1) At least once every two years after this Act comes into force, up to and including 2012, the Commissioner of the Environment and Sustainable Development shall prepare a report that includes (a) an analysis of Canada’s progress in implementing the Climate Change Plans; (b) an analysis of Canada’s progress in meeting its obligations under Article 3, paragraph 1, of the Kyoto Protocol; and (c) any observations and recommendations on any matter that the Commissioner considers relevant. Publication of report (2) The Commissioner shall publish the report in any manner the Commissioner considers appropriate within the period referred to in subsection (1). Report to the House of Commons (3) The Commissioner shall submit the report to the Speaker of the House of Commons on or before the day it is published, and the Speaker shall table the report in the House on any of the first three days on which that House is sitting after the Speaker receives it. OFFENCES AND PENALTIES Offences 11. (1) Every person who contravenes a regulation made under this Act is guilty of an offence punishable by indictment or on summary conviction, as prescribed by the regulations, and liable to a fine or to imprisonment as prescribed by the regulations. C. 30 Subsequent offence (2) If a person is convicted of an offence a subsequent time, the amount of the fine for the subsequent offence may, despite the regulations, be double the amount set out in the regulations. Continuing offence (3) A person who commits or continues an offence on more than one day is liable to be convicted for a separate offence for each day on which the offence is committed or continued. Additional fine (4) If a person is convicted of an offence and the court is satisfied that monetary benefits accrued to the person as a result of the commission of the offence, the court may order the person to pay an additional fine in an amount equal to the court’s estimation of the amount of the monetary benefits, which additional fine may exceed the maximum amount of any fine that may otherwise be imposed under the regulations. Officers, etc., of corporations (5) If a corporation commits an offence, any officer, director, agent or mandatory of the corporation who directed, authorized, assented to, or acquiesced or participated in, the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted. Offences by employees or agents (6) In any prosecution for an offence, the accused may be convicted of the offence if it is established that it was committed by an employee, agent or mandatory of the accused, whether or not the employee, agent or mandatory has been prosecuted for the offence. Kyoto Protocol Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 18 An Act to amend the Excise Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act and to make related amendments to other Acts ASSENTED TO 22nd JUNE, 2007 BILL C-40 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Excise Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act and to make related amendments to other Acts”. SUMMARY Part 1 of this enactment mainly implements proposed measures relating to the Goods and Services Tax and Harmonized Sales Tax (GST/HST). Part 2 contains measures relating to the Excise Act, 2001 and other Acts with respect to the taxation of tobacco, spirits and wine. Finally, Part 3 contains measures relating to the Air Travellers Security Charge. The GST/HST measures, contained in Part 1 of this enactment, are principally aimed at improving the operation and fairness of the GST/HST in the affected areas and ensuring that the legislation accords with the policy intent. In some cases, adjustments have been made to the legislation as originally proposed in response to representations from the tax and business communities. The principal GST/HST measures are as follows: (1) Health: confirms the GST/HST exemption for speech-language pathology services; exempts health-related services rendered in the practise of the profession of social work; zero-rates sales and importations of a blood substitute known as plasma expander; restores the zero-rated status of a group of drugs, collectively known as Benzodiazepines; broadens the specially equipped vehicle GST/HST rebate so that this rebate applies to motor vehicles that have been used subsequent to being specially equipped for use by individuals with disabilities. (2) Charities: ensures that the exemption of supplies by charities of real property under short-term leases and licences extends to any goods supplied together with such real property. (3) Business Arrangements: provides transitional GST/HST relief on the initial asset transfer by a foreign bank that restructures its Canadian subsidiary into a Canadian branch; removes technical impediments that hinder the use of existing group relief provisions under the GST/HST; simplifies compliance by excluding beverage container deposits that are refundable to the consumer from the GST/HST base; permits an agent to claim a GST/HST deduction for bad debts, and to claim adjustments or refunds of tax, in respect of sales made on behalf of a principal where the agent collects and reports tax; extends the existing agent rules under the GST/HST legislation to persons acting only as Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca billing agents for vendors; better accommodates special import arrangements between businesses in certain situations where goods are supplied outside Canada to a Canadian customer; ensures that GST/HST group relief rules cannot be used to exempt from GST/HST otherwise taxable clearing services that are provided by a group member to a closely related financial institution who will then re-supply those services on an exempt basis to a third-party purchaser outside the group; clarifies the treatment of the right to use certain types of amusement or entertainment devices, such as the playing of a game, when it is provided through the operation of a mechanical coin-operated device that can accept only a single coin of twenty-five cents or less as the total consideration for the supply; confirms the policy intent and Canada Revenue Agency’s existing practice that no GST/HST or provincial sales taxes on a passenger vehicle are included in calculating the maximum allowable value for input tax credit purposes. (4) Governments: ensures that a small supplier division of a municipality is treated in the same manner as a municipality that is a small supplier; exempts a supply of a right to file or retrieve a document or information stored in an electronic official registry. (5) HST-related Rules: as announced by the Government of Nova Scotia, limits the availability of the current Nova Scotia HST New Housing Rebate to first-time homebuyers and reduces the maximum rebate available to $1,500; includes in the Act the draft Specified Motor Vehicle (GST/HST) Regulations, which prescribe the value of a specified motor vehicle for the purposes of calculating the 8% provincial component of the HST in circumstances where the vehicle is brought into a participating province and prescribe the manner in which that tax is required to be paid. (6) Administration: adds a discretionary power for the Minister of National Revenue to accept late-filed applications for the GST New Housing Rebate and the Nova Scotia HST New Housing Rebate for owner-built homes, where exceptional circumstances have prevented an applicant from meeting the normal filing deadline; adds a discretionary power for the Minister of National Revenue to accept late-filed elections between closely related financial institutions for adjustments that they are required to make for the provincial component of the HST; permits the Minister of National Revenue to exchange GST/HST information with foreign governments that are signatories to the Convention on Mutual Administrative Assistance in Tax Matters; adds a discretionary power under the Act for the Chief Statistician of Canada to provide statistical information concerning business activities to the provinces similar to an existing provision in the Income Tax Act. The measures contained in Part 2 of this enactment amend the Excise Act, 2001 to implement minor refinements that will improve the operation of the Act and more accurately reflect current industry and administrative practices. They also implement related and consequential amendments to the Access to Information Act, the Customs Act, the Customs Tariff and the Excise Tax Act. The principal measures related to the Excise Act, 2001 are as follows: (1) Tobacco: extends the requirement to identify the origin of tobacco products to all products, including those for sale at duty-free shops or for export, consistent with the Framework Convention on Tobacco Control, an international treaty on tobacco control; clarifies that cigarettes, tobacco sticks, fine-cut tobacco or cigars, but not packaged raw leaf tobacco, may be supplied to the export market or the domestic duty-free market. (2) Alcohol: authorizes private laboratories, provincial liquor boards and vintners to possess a still or similar equipment and produce spirits for the purpose of analysing substances containing ethyl alcohol without holding a spirits licence; defers the payment of duty by small vintners selling wine on consignment in retail stores operated by an association of vintners until the wine is sold. (3) Administration: permits the Minister of National Revenue to exchange excise duty information with foreign governments that are signatories to the Convention on Mutual Administrative Assistance in Tax Matters; adds a discretionary power under the Act for the Chief Statistician of Canada to provide statistical information concerning business activities to the provinces similar to an existing provision in the Income Tax Act. The measures pertaining to the Air Travellers Security Charge (ATSC), contained in Part 3 of this enactment, include previously announced relief provisions, as well as technical changes to the Air Travellers Security Charge Act. The principal measures related to the ATSC are as follows: (1) Relief: relieves, in particular circumstances, the ATSC in respect of air travel sold by resellers or donated by air carriers. (2) Administration: provides authority for the Governor in Council to add, delete or vary by regulation the schedule of listed airports. TABLE OF PROVISIONS AN ACT TO AMEND THE EXCISE TAX ACT, THE EXCISE ACT, 2001 AND THE AIR TRAVELLERS SECURITY CHARGE ACT AND TO MAKE RELATED AMENDMENTS TO OTHER ACTS SHORT TITLE 1. Sales Tax Amendments Act, 2006 PART 1 AMENDMENTS TO THE EXCISE TAX ACT AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/ HARMONIZED SALES TAX 2-63. Amendments AMENDMENTS IN RESPECT OF EXCISE TAXES 64-66. Amendments PART 2 AMENDMENTS IN RESPECT OF EXCISE DUTY ON ALCOHOL AND TOBACCO PRODUCTS 67-133. 134. Excise Act, 2001 Access to Information Act 135-141. Customs Act 142. Customs Tariff 143. Excise Tax Act PART 3 AMENDMENTS TO THE AIR TRAVELLERS SECURITY CHARGE ACT 144-156. Amendments PART 4 COORDINATING AMENDMENT 157. Bill C-28 55-56 ELIZABETH II —————— CHAPTER 18 An Act to amend the Excise Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act and to make related amendments to other Acts [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Sales Tax Amendments Act, 2006. PART 1 R.S., c. E-15 AMENDMENTS TO THE EXCISE TAX ACT AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX 1990, c. 45, s. 12(1) 2. (1) The definition “closely related group” in subsection 123(1) of the Excise Tax Act is replaced by the following: “closely related group” « groupe étroitement lié » “closely related group” means a group of corporations, each member of which is a registrant resident in Canada and is closely related, within the meaning assigned by section 128, to each other member of the group, and for the purposes of this definition, (a) a non-resident insurer that has a permanent establishment in Canada is deemed to be resident in Canada, and (b) credit unions and members of a mutual insurance group are deemed to be registrants; C. 18 1990, c. 45, s. 12(1) (2) The definition “logement en copropriété” in subsection 123(1) of the French version of the Act is replaced by the following: « logement en copropriété » “residential condominium unit” « logement en copropriété » Immeuble d’habitation qui est, ou est destiné à être, un espace délimité dans un bâtiment et désigné ou décrit comme étant une unité distincte sur le plan ou la description enregistrés afférents, ou sur un plan ou une description analogues enregistrés en conformité avec les lois d’une province, ainsi que tous droits et intérêts fonciers afférents à la propriété de l’unité. 1997, c. 10, s. 150(6) (3) Subparagraph (iii) of the description of A in paragraph (a) of the definition “basic tax content” in subsection 123(1) of the Act is replaced by the following: Sales Ta (iii) the tax under section 165 that would have been payable by the person, in respect of the last acquisition of the property by the person or in respect of improvements to the property acquired by the person after the property was last acquired or imported by the person, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the property or improvements were acquired by the person for consumption, use or supply exclusively in commercial activities, 1997, c. 10, s. 150(6) (4) Subparagraph (iv) of the description of J in paragraph (b) of the definition “basic tax content” in subsection 123(1) of the Act is replaced by the following: (iv) the tax under section 165 that would have been payable by the person, in respect of improvements to the property acquired by the person after the property was brought into the participating province, in the absence of subsection 153(4), section 167, 2006-2007 Taxe de ve section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the improvements were acquired by the person for consumption, use or supply exclusively in commercial activities, or 1990, c. 45, s. 12(1) “qualifying subsidiary” « filiale déterminée » (5) The portion of the definition “qualifying subsidiary” in subsection 123(1) of the Act before paragraph (b) is replaced by the following: “qualifying subsidiary” of a particular corporation means another corporation not less than 90% of the value and number of the issued and outstanding shares of the capital stock of which, having full voting rights under all circumstances, are owned by the particular corporation, and includes (a) a corporation that is a qualifying subsidiary of a qualifying subsidiary of the particular corporation, (6) Subsection 123(1) of the Act is amended by adding the following in alphabetical order: “listed international agreement” « accord international désigné » “Superintendent” « surintendant » “listed international agreement” means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time; “Superintendent” means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act; (7) Subsections (1) and (5) are deemed to have come into force on November 17, 2005. (8) Subsection (2) is deemed to have come into force on January 1, 2000. (9) Subsections (3) and (4) and the definition “Superintendant” in subsection 123(1) of the Act, as enacted by subsection (6), are deemed to have come into force on June 28, 1999. C. 18 1990, c. 45, s. 12(1) 3. (1) The portion of subsection 128(1) of the Act before subparagraph (a)(i) is replaced by the following: Closely related corporation 128. (1) For the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that time Sales Ta (a) not less than 90% of the value and number of the issued and outstanding shares of the capital stock of the other corporation, having full voting rights under all circumstances, are owned by 1990, c. 45, s. 12(1) (2) The portion of subsection 128(1) of the Act after paragraph (b) is repealed. 1990, c. 45, s. 12(1); 1993, c. 27, s. 12(2) (3) Subsections 128(2) and (3) of the Act are replaced by the following: Corporations closely related to the same corporation (2) If under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part. Investment funds (3) For the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation. (4) Subsections (1) to (3) are deemed to have come into force on November 17, 2005. 1993, c. 27, s. 13(1) 4. (1) Subsection 129.1(1) of the Act is replaced by the following: Supply by small supplier division 129.1 (1) If a public service body makes a taxable supply through a branch or division of the body and the consideration or a part of the consideration for the supply becomes due to the body at a time when the branch or division is a small supplier division or is paid to the body at such a time without having become due, the consideration or the part of the consideration, as the case may be, shall not be included in calculating the tax payable in respect of the supply or in determining a threshold amount of the body under section 249 and that supply is, for the purposes of this Part, deemed not to have been made by a registrant, except if the supply is 2006-2007 Taxe de ve (a) a supply by way of sale of real property; (b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or (c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person. (2) Subsection (1) applies to any supply for which consideration becomes due after November 27, 2006 or for which consideration is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before November 28, 2006. 1997, c. 10, s. 12(1) Exceptions 5. (1) Subsection 150(2) of the Act is replaced by the following: (2) Subsection (1) does not apply to (a) property held or services rendered by a member of a closely related group as a participant in a joint venture with another person while an election under section 273 made jointly by the member and the other person is in effect; (b) an imported taxable supply, as defined in section 217; or (c) a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association if the recipient (in this paragraph referred to as the “related purchaser”) is acquiring all or part of those services for the purpose of making a supply of exempt services to (i) an unrelated party, or (ii) a supplier that is a member of a closely related group of which the related purchaser is a member and that acquires all or part of the exempt services for the purpose C. 18 Sales Ta of making a supply of exempt services to an unrelated party or to a supplier described by this subparagraph. Definitions “exempt services” « services exonérés » “unrelated party” « tiers non lié » (2.1) The following definitions apply in subsection (2). “exempt services” means services prescribed by section 3 of the Financial Services (GST/HST) Regulations. “unrelated party”, in respect of a supply of services, means a person that is not a member of a closely related group of which the supplier is a member and that is acquiring the services for the purpose of making a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association. (2) Subject to subsection (3), subsection (1) is deemed to have come into force on September 14, 2001. (3) Paragraph 150(2)(c) of the Act, as enacted by subsection (1), does not apply to (a) services provided before September 14, 2001; or (b) any supply of services to a related purchaser (within the meaning of that paragraph) if the agreement for the supply of all or part of those services to the unrelated party (as defined in subsection 150(2.1) of the Act, as enacted by subsection (1)) was entered into before September 14, 2001. (4) For the purposes of Part IX of the Act, if the supply, referred to in paragraph 150(2)(c) of the Act, as enacted by subsection (1), made to the related purchaser (within the meaning of that paragraph) includes the provision of services during a period beginning before September 14, 2001 and ending on or after that day, 2006-2007 Taxe de ve (a) the provision of the services (in this subsection referred to as the “excluded services”) that are provided during the part of the period that is before September 14, 2001 and the provision of the services (in this subsection referred to as the “affected services”) that are provided during the remainder of the period are deemed to be a separate supply; (b) the consideration for the supply of the excluded services is deemed to be equal to the portion of the total consideration for the services provided in the period that can reasonably be attributed to the excluded services; and (c) the consideration for the supply of the affected services is deemed to be equal to the portion of that total consideration that can reasonably be attributed to the affected services. 2000, c. 30, s. 25(1) “qualifying group” « groupe admissible » 6. (1) The definitions “qualifying group” and “specified member” in subsection 156(1) of the Act are replaced by the following: “qualifying group” means (a) a group of corporations, each member of which is closely related, within the meaning assigned by section 128, to each other member of the group; or (b) a group of Canadian partnerships, or of Canadian partnerships and corporations, each member of which is closely related, within the meaning of this section, to each other member of the group. “specified member” « membre déterminé » “specified member” of a qualifying group means (a) a qualifying member of the group; or (b) a temporary member of the group during the course of the reorganization referred to in paragraph (f) of the definition “temporary member”. (2) Subsection 156(1) of the Act is amended by adding the following in alphabetical order: C. 18 “distribution” « attribution » “distribution” has the meaning assigned by subsection 55(1) of the Income Tax Act. “qualifying member” « membre admissible » Sales Ta “qualifying member” of a qualifying group means a registrant that is a corporation resident in Canada or a Canadian partnership and that meets the following conditions: (a) the registrant is a member of the group; (b) the registrant is not a party to an election under subsection 150(1); and (c) the registrant last manufactured, produced, acquired or imported all or substantially all of its property (other than financial instruments) for consumption, use or supply exclusively in the course of commercial activities of the registrant or, if the registrant has no property (other than financial instruments), all or substantially all of the supplies made by the registrant are taxable supplies. “temporary member” « membre temporaire » “temporary member” of a qualifying group means a corporation (a) that is a registrant; (b) that is resident in Canada; (c) that is a member of the qualifying group; (d) that is not a qualifying member of the qualifying group; (e) that is not a party to an election under subsection 150(1); (f) that receives a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act from the distributing corporation referred to in that subparagraph that is a qualifying member of the qualifying group; (g) that, before receiving the supply, does not carry on any business or have any property (other than financial instruments); and (h) the shares of which are transferred on the distribution. 2000, c. 30, s. 25(1) (3) The portion of subsection 156(1.1) of the Act before subparagraph (a)(i) is replaced by the following: 2006-2007 Closely related persons Taxe de ve (1.1) For the purposes of this section, a particular Canadian partnership and another person that is a Canadian partnership or a corporation are closely related to each other at any time if, at that time, (a) in the case where the other person is a Canadian partnership, 2000, c. 30, s. 25(1) (4) Clause 156(1.1)(a)(i)(B) of the Act is replaced by the following: (B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, or 2000, c. 30, s. 25(1) (5) Clause 156(1.1)(a)(ii)(A) of the Act is replaced by the following: (A) owns at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of a corporation that is a member of a qualifying group of which the other person is a member, or 2000, c. 30, s. 25(1) (6) The portion of paragraph 156(1.1)(b) of the English version of the Act before subparagraph (i) is replaced by the following: (b) in the case where the other person is a corporation, 2000, c. 30, s. 25(1) (7) Clause 156(1.1)(b)(i)(B) of the Act is replaced by the following: (B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, or 2000, c. 30, s. 25(1) (8) The po rtion of sub parag raph 156(1.1)(b)(ii) of the Act before clause (A) is replaced by the following: C. 18 Sales Ta (ii) not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of a corporation are owned by 2000, c. 30, s. 25(1) (9) Clause 156(1.1)(b)(iii)(B) of the Act is replaced by the following: (B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the other person is a member, or 2000, c. 30, s. 25(1) (10) Subsection 156(1.2) of the Act is replaced by the following: Persons closely related to the same person (1.2) If, under subsection (1.1), two persons are closely related to the same corporation or partnership, or would be so related if each member of that partnership were resident in Canada, the two persons are closely related to each other for the purposes of this section. 2000, c. 30, s. 25(1) (11) Subsection 156(2) of the Act is replaced by the following: Election for nil consideration (2) For the purposes of this Part, if a specified member of a qualifying group elects jointly with another specified member of the group, every taxable supply made between them at a time when the election is in effect is deemed to have been made for no consideration. Non-application (2.1) Subsection (2) does not apply to (a) a supply by way of sale of real property; (b) a supply of property, or of a service, that is not acquired by the recipient for consumption, use or supply exclusively in the course of commercial activities of the recipient; or (c) a supply that is not a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act, if the recipient of the supply is a temporary member. 2006-2007 Taxe de ve (12) Subsections (1) to (10) are deemed to have come into force on November 17, 2005. (13) Subsection (11) applies to any supply made after November 16, 2005. 7. (1) Section 165 of the Act, as it read immediately before April 1, 1997, is amended by adding the following after subsection (3.1): Supply of right to use device (3.2) For the purpose of subsection (3.1), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device. (2) Subsection 165(3.2) of the Act, as enacted by subsection (1), is repealed. (3) Subsection 165(3.2) of the Act, as enacted by subsection (1), applies to supplies made after April 23, 1996. (4) Subsection (2) is deemed to have come into force on April 1, 1997. 8. (1) Section 165.1 of the Act is amended by adding the following after subsection (2): Supply of right to use device (3) For the purpose of subsection (2), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device. (2) Subsection (1) is deemed to have come into force on April 1, 1997. 9. (1) The Act is amended by adding the following after section 167.1: Definitions “authorized foreign bank” « banque étrangère autorisée » 167.11 (1) The following definitions apply in this section. “authorized foreign bank” has the meaning assigned by section 2 of the Bank Act. C. 18 “foreign bank branch” « succursale de banque étrangère » “foreign bank branch” means a branch as defined in paragraph (b) of the definition “branch” in section 2 of the Bank Act. “qualifying supply” « fourniture admissible » Sales Ta “qualifying supply” means a supply of property or a service that is made in Canada under an agreement for the supply (other than an agreement between a supplier that is a registrant and a recipient that is not a registrant at the time the agreement is entered into) and (a) that is made by a corporation resident in Canada related to the recipient; (b) that is made after June 27, 1999, and before (i) if the Superintendent makes an order under subsection 534(1) of the Bank Act in respect of the recipient after the particular day on which the Act enacting this section receives royal assent but before the day that is one year after the particular day, the day that is one year after the day on which the Superintendent makes the order, and (ii) in any other case, the day that is one year after the particular day referred to in subparagraph (i); and (c) that is received by a recipient that (i) is a non-resident person, (ii) is, or has filed an application with the Superintendent for an order under subsection 524(1) of the Bank Act to become, an authorized foreign bank, and (iii) acquired the property or service for consumption, use or supply by the recipient for the purpose of the establishment and commencement of business in Canada by the recipient as an authorized foreign bank at a foreign bank branch of the authorized foreign bank. Supply of assets (2) For the purposes of this Part, if a supplier and a recipient of a qualifying supply make a joint election in accordance with subsection (7) in respect of the qualifying supply, (a) the supplier is deemed to have made, and the recipient is deemed to have received, a separate supply of each property and service 2006-2007 Taxe de ve that is supplied under the agreement for the qualifying supply for consideration equal to that part of the consideration for the qualifying supply that can reasonably be attributed to that property or service; (b) any part of the consideration for the qualifying supply attributed to goodwill is deemed to be attributed to a taxable supply of intangible personal property unless section 167.1 applies to the qualifying supply; and (c) subsections (3) to (6) apply to the supply of each property and service that is supplied under the agreement for the qualifying supply. Effect of election (3) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made at any time, (a) no tax is payable in respect of a supply of any property or service made under the agreement for the qualifying supply other than (i) a taxable supply of a service that is to be rendered by the supplier, (ii) a taxable supply of a service unless paragraph 167(1)(a) applies to the qualifying supply, (iii) a taxable supply of property by way of lease, licence or similar arrangement, (iv) if the recipient is not a registrant, a taxable supply by way of sale of real property, (v) a taxable supply of property or a service, if the property or service was previously supplied under an agreement for a qualifying supply and, by reason of this subsection, no tax was payable in respect of that previous supply of property or service, and C. 18 Sales Ta (vi) a taxable supply of intangible personal property (other than capital property) if the percentage determined by the following formula is greater than 10%: A-B where A is the extent (expressed as a percentage of the total use of the property by the supplier) to which the supplier used the property in commercial activities immediately before that time, and B is the extent (expressed as a percentage of the total use of the property by the recipient) to which the recipient used the property in commercial activities immediately after that time; (b) if, in the absence of this subsection, tax would have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient; (c) if, despite this subsection, tax would not have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities; and (d) if the recipient acquires under the agreement for the qualifying supply property of the supplier that was used by the supplier immediately before that time otherwise than as capital property of the supplier and, in the absence of this paragraph, tax would have been payable by the recipient in respect of the supply of the property, the recipient is deemed to have acquired the property for 2006-2007 Taxe de ve consumption, use or supply in the course of commercial activities and otherwise than as capital property of the recipient. Basic tax content (4) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply and, under the agreement for the qualifying supply, the supplier makes a supply of property that is, immediately before the time the qualifying supply is made, capital property of the supplier and, by reason of subsection (3), no tax is payable in respect of the supply of the property, the basic tax content of the property of the recipient at any time shall be determined by applying the following rules: (a) if the last acquisition of the property by the recipient is the acquisition by the recipient at the time the qualifying supply is made, any reference in paragraphs (a) and (b) of the definition “basic tax content” in subsection 123(1) to the last acquisition or importation of the property by the person shall be read as a reference to the last acquisition or importation of the property by the supplier and not the acquisition by the recipient at the time the qualifying supply is made; (b) if the last supply to the recipient of the property is the supply to the recipient at the time the qualifying supply is made, the reference in paragraph (a) of the definition “basic tax content” in subsection 123(1) to the last supply of the property to the person shall be read as a reference to the last supply of the property to the supplier and not the supply to the recipient at the time the qualifying supply is made; and (c) if, at any particular time on or after the last acquisition or importation of the property by the supplier and before the time the qualifying supply is made, the property is acquired, imported or brought into a participating province or an improvement to the property is acquired, imported or brought into a participating province, any reference in paragraphs (a) and (b) of the definition “basic tax content” in subsection 123(1) to C. 18 Sales Ta (i) any acquisition, importation or bringing into a participating province of the property at that particular time or any acquisition, importation or bringing into a participating province of an improvement to the property at that particular time (in this paragraph referred to as the “actions”) by the person shall be read as a reference to actions by the supplier and not actions by the recipient, (ii) any tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the person in respect of those actions at that particular time shall be read as a reference to tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the supplier and not by the recipient, (iii) the person in respect of those actions at that particular time, or in respect of a particular status of the person at that particular time, shall be read as a reference to the supplier and not to the recipient, (iv) any tax that the person was exempt from paying in respect of those actions at that particular time shall be read as a reference to tax that the supplier, and not the recipient, was exempt from paying, (v) the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that an amount of tax became payable, or would have become payable by the person while the person was a selected listed financial institution, shall be read as a reference to the supplier’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the supplier’s taxation year that includes the time that an amount of tax became payable, or would have become payable while the supplier was a selected listed financial institution, and 2006-2007 Taxe de ve (vi) all amounts that the person was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions at that particular time shall be read as a reference to all amounts that the supplier, and not the recipient, was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions. Adjustment to net tax (5) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made before November 17, 2005 under an agreement for the qualifying supply and tax is paid by the recipient in respect of property or a service supplied under the agreement for the qualifying supply despite no tax being payable in respect of that supply as a result of subsection (3), the tax is deemed, except for the purposes of subsection (4) and despite subsection (3), to have been payable by the recipient in respect of the supply of the property or service and, in determining the net tax for the particular reporting period of the recipient in which the election is filed with the Minister, the recipient may deduct in determining the net tax of the recipient for the particular reporting period the total of all amounts each of which is an amount determined by the formula A-B where A is the amount of tax paid, despite no tax being payable as a result of subsection (3), by the recipient in respect of the supply of the property or service made under the agreement for the qualifying supply; and B is the total of (a) all amounts each of which is an input tax credit that the recipient was entitled to claim in respect of the property or service supplied under the agreement for the qualifying supply, C. 18 Sales Ta (b) all amounts each of which is an amount (other than an amount determined under this subsection) that may be deducted by the recipient under this Part in determining the net tax of the recipient for a reporting period in respect of the property or service supplied under the agreement for the qualifying supply, and (c) all amounts (other than amounts referred to in paragraphs (a) and (b)) in respect of the tax paid that may be otherwise recovered by way of rebate, refund, remission or otherwise by the recipient in respect of the property or service supplied under the agreement for the qualifying supply. Limitation period where election (6) If a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply, section 298 applies to any assessment, reassessment or additional assessment of an amount payable by the recipient in respect of a supply of property or a service made under the agreement for the qualifying supply, but the Minister has until the day that is four years after the later of the day on which the election under subsection (2) is filed with the Minister and the day on which the qualifying supply is made, to make any assessment, reassessment or additional assessment solely for the purpose of taking into account any tax, net tax or any other amount payable by the recipient or remittable by the supplier in respect of a supply of property or a service made under the agreement for the qualifying supply. Validity of election (7) A joint election referred to in subsection (2) made by a supplier and a recipient in respect of a qualifying supply is valid only if (a) the recipient files the election with the Minister in prescribed form containing prescribed information not later than the particular day that is the latest of (i) if the recipient is 2006-2007 Taxe de ve (A) a registrant at the time the qualifying supply is made, the day on or before which the return under Division V is required to be filed for the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply, or (B) not a registrant at the time the qualifying supply is made, the day that is one month after the end of the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply, (ii) the day that is one year after the day on which the Act enacting this section receives royal assent, and (iii) the day that the Minister may determine on application of the recipient; (b) the qualifying supply is made on or before the day that is one year after the day on which the recipient received for the first time a qualifying supply in respect of which an election under subsection (2) has been made; and (c) on or before the day on which the election referred to in subsection (2) is filed in respect of the qualifying supply, the recipient has not made an election under subsection 167(1.1) in respect of the qualifying supply. (2) Subsection (1) is deemed to have come into force on June 28, 1999. 1997, c. 10, ss. 25(1) and 169(1)(F) Acquisition of used returnable containers 10. (1) The portion of subsection 176(1) of the Act before paragraph (b) is replaced by the following: 176. (1) Subject to this Division, if (a) a registrant is the recipient of a supply made in Canada by way of sale of used tangible personal property (other than a returnable container as defined in subsection 226(1)) that is a usual covering or container C. 18 Sales Ta of a class of coverings or containers in which property (other than property the supply of which is a zero-rated supply) is delivered, 1997, c. 10, s. 25(1) (2) The portion of paragraph 176(1)(d) of the Act before subparagraph (i) is replaced by the following: (d) the registrant pays consideration for the supply that is not less than the total of (3) Subsections (1) and (2) apply to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due. 1997, c. 10, s. 26(1) 11. (1) Paragraphs 177(1.1)(a) and (b) of the Act are replaced by the following: (a) the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purposes of (i) determining the net tax of the registrant and of the person, and (ii) applying sections 222 and 232; (b) the registrant and the person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence of (i) the tax becoming collectible, (ii) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to the supply, 2006-2007 Taxe de ve (iii) the registrant claiming, in respect of the supply, an amount as a deduction under section 231 or 232 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled, (iv) a failure to pay as and when required under this Part the amount of any underpayment of net tax by the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to a claim referred to in subparagraph (iii), (v) a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under subsection 231(1), or (vi) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to an amount required under subsection 231(3) to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph (v); and (c) the threshold amounts of the registrant and of the person under subsections 249(1) and (2) shall be determined as if any consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person. (2) Section 177 of the Act is amended by adding the following after subsection (1.1): Billing agent (1.11) If a registrant acts as agent of a supplier in charging and collecting consideration and tax payable in respect of a supply made by the supplier but the registrant does not act as C. 18 Sales Ta agent in making the supply, the registrant is deemed to have acted as agent of the supplier in making the supply for the purposes of (a) subsection (1.1); and (b) if an election under subsection (1.1) is made in respect of the supply, any other provision that refers to a supply in respect of which an election under that subsection has been made. Joint revocation (1.12) A registrant and a supplier who have jointly made an election under subsection (1.1) may, in prescribed form containing prescribed information, jointly revoke the election with respect to any supply made on or after the effective date specified in the revocation, and the election is thereby deemed, for the purposes of this Part, not to have been made with respect to that supply. (3) Paragraphs 177(1.1)(a) and (c) of the Act, as enacted by subsection (1), and subsection 177(1.11) of the Act, as enacted by subsection (2), apply to supplies made after December 20, 2002. (4) Paragraph 177(1.1)(b) of the Act, as enacted by subsection (1), applies to supplies made after April 23, 1996 in respect of which an election under subsection 177(1.1) of the Act is made at any time, except that, with respect to any supply made before December 21, 2002 in respect of which an election under that subsection was made before December 21, 2002, (a) subparagraph 177(1.1)(b)(ii) of the Act, as enacted by subsection (1), shall be read as follows: (ii) a failure to account for or remit the tax, and (b) the reference in subparagraph 177(1.1)(b)(iii) of the Act, as enacted by subsection (1), to “section 231 or 232” shall be read as a reference to “section 231”. 2006-2007 Taxe de ve (5) Subsection 177(1.12) of the Act, as enacted by subsection (2), is deemed to have come into force on December 20, 2002. 2000, c. 30, s. 32(1) 12. (1) Paragraph 178.7(1)(b) of the French version of the Act is replaced by the following: b) l’acquéreur du service est un organisme du secteur public ou une commission ou autre organisme établi par un gouvernement ou une municipalité. (2) Subsection (1) is deemed to have come into force on February 24, 1998 and applies to reporting periods beginning after that day. 13. (1) The Act is amended by adding the following after section 178.7: IMPORT ARRANGEMENTS Definition of “specified supply” 178.8 (1) In this section, “specified supply” means a supply of goods that (a) are, at any time after the supply is made, imported; or (b) have been imported in circumstances in which section 144 deems the supply to have been made outside Canada. Deemed importer of goods (2) Subject to subsections (4) and (7), if a recipient of a specified supply of goods made outside Canada does not, at any time before the release of the goods, supply the goods outside Canada and the recipient or any other person imported the goods for consumption, use or supply by the recipient (in this section referred to as the “constructive importer”), the constructive importer is deemed to have so imported the goods, and any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the constructive importer and not by or on behalf of any other person. Agreement to treat supply as made in Canada (3) If a registrant makes a specified supply of goods outside Canada that is a taxable supply, the recipient of the supply is the constructive importer of the goods and an amount is, in the C. 18 Sales Ta absence of subsection (2), paid or payable by or on behalf of the registrant as or on account of tax on the goods under Division III in respect of the importation, the registrant and the recipient may at any time agree, in prescribed form containing prescribed information, to have subsection (4) apply in respect of the supply and importation. Effect of agreement (4) If a registrant and the constructive importer of goods have entered into an agreement under subsection (3) in respect of the supply and importation of the goods and the constructive importer has not entered into an agreement under subsection (5) in respect of any amount paid as or on account of tax on the goods under Division III in respect of the importation, (a) the supply is deemed to have been made in Canada (i) in the case of a constructive importer who is an individual to whom the goods are shipped to a destination in Canada by another person, at the address to which the goods are sent by mail or courier by the shipper or at the destination that is specified in the contract for carriage of the goods or at which the shipper has directed a common carrier or consignee retained on behalf of the constructive importer to transfer physical possession of the goods, and (ii) in any other case, at the place at which the goods are released; (b) except if subsection 155(1) applies, the consideration for the supply is deemed to be equal to the amount otherwise determined for the purposes of this Part plus any amount (in this paragraph referred to as “additional consideration”) not otherwise included in that consideration that the constructive importer at a particular time pays or is required to pay to the registrant in respect of duties or taxes payable on the goods under this Act (other than this Part), the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act or any other law relating to customs and, 2006-2007 Taxe de ve despite section 168, the tax in respect of the supply that is calculated on the additional consideration becomes payable at the particular time; (c) the registrant is deemed to have imported the goods for the purpose of supply in the course of commercial activities of the registrant; and (d) any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the registrant and not by or on behalf of any other person. Agreement regarding rebates, abatements and refunds (5) If the constructive importer of goods is deemed under subsection (2) to be the person by whom the goods are imported but another person (in this section referred to as the “specified importer”) was identified, for the purposes of the Customs Act, as the importer of the goods when the goods were accounted for under section 32 of that Act and, in the absence of subsection (2), paid an amount as or on account of tax on the goods under Division III, the constructive importer and the specified importer may agree in writing to have subsection (7) apply in respect of that amount. Restriction (6) Subsection (5) does not apply to any amount in respect of which, because of section 263.01, the constructive importer of goods would not be entitled to a rebate referred to in that section if the constructive importer paid the amount as or on account of tax on the goods under Division III. Effect of agreement (7) If a constructive importer of goods and a specified importer have entered into an agreement under subsection (5) to have this subsection apply in respect of an amount paid as or on account of tax on the goods under Division III and the constructive importer has not entered into an agreement under subsection (3) with the supplier of the goods in respect of the importation, C. 18 Sales Ta (a) subsections 215.1(2) and (3) and 216(6) and (7) apply as if the specified importer and not the constructive importer were the person by whom the goods were imported and the amount was paid, but only if, within a reasonable time after any rebate under subsection 215.1(2) or 216(6) in respect of the amount is granted or any abatement or refund is, because of subsection 215.1(3) or 216(7), granted in respect of the amount, the specified importer issues to the constructive importer a note (in this subsection referred to as a “tax adjustment note”), in prescribed form containing prescribed information, indicating the amount of the rebate, abatement or refund; (b) in applying subsection 215.1(2) or (3) in respect of the amount in accordance with paragraph (a), that subsection shall be read without reference to subparagraphs (a)(i) and (ii), and paragraph (c), of that subsection; and (c) if the constructive importer receives a tax adjustment note indicating the amount of a rebate, abatement or refund, (i) the amount that is rebated, abated or refunded is deemed to have been payable as tax and to have been recovered by the constructive importer and, except for the purposes of section 232, the tax adjustment note is deemed to be a credit note referred to in that section received by the constructive importer for the amount of the rebate, abatement or refund, (ii) the amount of the rebate, abatement or refund shall be added in determining the net tax of the constructive importer for the reporting period in which the tax adjustment note is received, to the extent that the amount has been included in determining an input tax credit claimed by the constructive importer in a return filed for that or a preceding reporting period or the constructive importer is or was entitled to be compensated under a warranty for loss suffered because of any of the circumstances that gave rise to the rebate, abatement or refund by receiving a supply 2006-2007 Taxe de ve of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, and (iii) if the amount rebated, abated or refunded has been included in determining a rebate under Division VI paid to, or applied to a liability of, the constructive importer before the particular day on which the tax adjustment note is received and the rebate so paid or applied exceeds the rebate under that Division to which the constructive importer would have been entitled if the amount rebated, abated or refunded had not been paid, the constructive importer shall pay to the Receiver General under section 264 the excess as if it were an excess amount of the rebate under that Division paid to the constructive importer (A) if the constructive importer is a registrant, on the day on or before which the constructive importer’s return for the reporting period that includes the particular day is required to be filed, and (B) in any other case, on the last day of the calendar month immediately following the calendar month that includes the particular day. Application (8) Subject to subsection (9), subsections (2) to (7) apply for the purposes of this Part other than (a) Division III except subsections 215.1(2) and (3) and 216(6) and (7); (b) sections 220.07, 236.3 and 273.1; (c) Schedule VII; and (d) the Non-Taxable Imported Goods (GST/ HST) Regulations and the Value of Imported Goods (GST/HST) Regulations. C. 18 Application (9) Subsections (2) to (7) do not apply in respect of goods imported in circumstances in which subsection 169(2) applies or in which section 180 deems a person to have paid tax in respect of a supply of property equal to the tax under Division III in respect of the importation of goods. Limitation period where retroactive agreement (10) If a registrant and a constructive importer enter into an agreement under subsection (3) in respect of a previous importation of goods, the Minister has, despite section 298, until the day that is four years after the day on which the agreement under subsection (3) is entered into to make any assessment, reassessment or additional assessment for the purpose of taking into account an amount payable or remittable by the registrant or the constructive importer as a result of the application of subsection (4). Sales Ta (2) Subsection (1) applies to goods imported on or after October 3, 2003 and to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day. 1997, c. 10, s. 183(1) 14. (1) Paragraph (b) of the description of A in subsection 193(1) of the Act is replaced by the following: (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular taxable supply, and (2) Subsection (1) is deemed to have come into force on June 28, 1999. 1997, c. 10, s. 191(1) 15. (1) The description of A in paragraph 201(b) of the Act is replaced by the following: A is the tax that would be payable by the registrant in respect of the vehicle if the registrant acquired the vehicle at the particular time (i) where the registrant is bringing the vehicle into a participating province at the particular time, in that province, and 2006-2007 Taxe de ve (ii) in any other case, in Canada for consideration equal to the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B, (2) Subsection (1) applies to any passenger vehicle that is acquired, imported or brought into a participating province after November 27, 2006 and to any passenger vehicle acquired, imported or brought into a participating province on or before that day unless an input tax credit in respect of the acquisition, importation or bringing in, as the case may be, (a) was claimed pursuant to section 201 of the Act in a return filed under Division V of Part IX of the Act on or before that day; and (b) was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales taxes. 1990, c. 45, s. 12(1) 16. (1) Subsection 202(1) of the Act is replaced by the following: Improvement to passenger vehicle 202. (1) If the consideration paid or payable by a registrant for an improvement to a passenger vehicle of the registrant increases the cost to the registrant of the vehicle to an amount that exceeds the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B, the tax calculated on that C. 18 Sales Ta excess shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant. (2) Subsection (1) applies to any improvement to a passenger vehicle that is acquired, imported or brought into a participating province after November 27, 2006 and to any improvement to a passenger vehicle acquired, imported or brought into a participating province on or before that day unless an input tax credit in respect of the acquisition, importation or bringing in, as the case may be, (a) was claimed pursuant to section 202 of the Act in a return filed under Division V of Part IX of the Act on or before that day; and (b) was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales taxes. 17. (1) Section 205 of the Act is amended by adding the following after subsection (4): Acquisition of asset (4.1) Despite section 197, subsection 193(1) applies to the supplier of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), and subsections 206(4) and (5) apply to the recipient of the supply of capital personal property, with any modifications that the circumstances require, as if the property were real property if (a) the supplier and the recipient are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply; (b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in commercial activities of the recipient; and (c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to 2006-2007 Taxe de ve the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient but not exclusively in commercial activities of the recipient. (2) Section 205 of the Act is amended by adding the following after subsection (5): Acquisition of asset (5.1) Despite section 197, subsection 206(2) applies to the recipient of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), with any modifications that the circumstances require, as if the property were real property if (a) the supplier and the recipient of the capital personal property are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply; (b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; and (c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient in commercial activities of the recipient. (3) Subsections (1) and (2) are deemed to have come into force on June 28, 1999. 1993, c. 27, s. 81(1); 1997, c. 10, s. 41(3); 2000, c. 30, s. 44(2); 2005, c. 38, s. 105(2) and subpar. 145(2)(g)(v) 18. (1) Subsection 215.1(3) of the Act is replaced by the following: C. 18 Abatement or refund of tax as if it were duty (3) Subject to section 263, sections 73, 74 and 76 of the Customs Act apply, with any modifications that the circumstances require, to an amount paid by a person as tax under this Division as though the amount were duties paid under that Act, where Sales Ta (a) the amount was paid as tax on goods that were imported (i) for consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, or (ii) for consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision d of Division V; (b) if the goods had been subject to duties paid under that Act, an abatement or refund of the whole or part of the duties could have been granted under section 73, 74 or 76 of that Act because of circumstances (i) described in paragraph 73(a) or (b), any of paragraphs 74(1)(a) to (c) or subsection 76(1) of that Act, or (ii) in which an error was made in the determination under subsection 58(2) of that Act of the value of the goods and the determination has not been the subject of a decision under any of sections 59 to 61 of that Act; (c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII; and (d) within two years after the day on which the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount. 2006-2007 Taxe de ve (2) Subsection (1) is deemed to have come into force on January 1, 1998, except that, in applying subsection 215.1(3) of the Act, as enacted by subsection (1), in determining rebates under that subsection before October 20, 2000, paragraph 215.1(3)(c) shall be read as follows: (c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts that are goods included in section 5 of Schedule VII; and 1993, c. 27, s. 82(1); 2005, c. 38, s. 106 19. (1) Subsections 216(4) to (6) of the Act are replaced by the following: Appeals of determination of tax status (4) In applying the Customs Act to a determination of the tax status of goods, the references in that Act to the “Canadian International Trade Tribunal” and to the “Secretary of the Canadian International Trade Tribunal” shall be read as references to the “Tax Court of Canada” and to the “Registrar of the Tax Court of Canada”, respectively. Application of Part IX and Tax Court of Canada Act (5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the President of the Canada Border Services Agency made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the President were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the President is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision. C. 18 Rebate resulting from appraisal or re-appraisal (6) If, because of an appraisal, a re-appraisal or a further re-appraisal of the value of goods or a determination of the tax status of goods, it is determined that the amount that was paid as tax under this Division on the goods exceeds the amount of tax that is required under this Division to be paid on the goods and a refund of the excess would be given under paragraph 59(3)(b) or 65(1)(b) of the Customs Act if the tax under this Division on the goods were a customs duty on the goods levied under the Customs Tariff, a rebate of the excess shall, subject to section 263, be paid to the person who paid the excess, and the provisions of the Customs Act that relate to the payment of such refunds and interest on such refunds apply, with any modifications that the circumstances require, as if the rebate of the excess were a refund of duty. Sales Ta (2) Subsection (1) is deemed to have come into force on January 1, 1998, except that, before December 12, 2005, subsection 216(5) of the Act, as enacted by subsection (1), shall be read as follows: Application of Part IX and Tax Court of Canada Act (5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the Commissioner made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the Commissioner were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the Commissioner is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision. 20. (1) Section 217 of the Act is amended by adding the following after paragraph (b.1): (b.11) a particular taxable supply (other than a zero-rated supply) of property by way of lease, licence or similar arrangement that is 2006-2007 Taxe de ve deemed under subsection 143(1) to be made outside Canada to a recipient (in this paragraph referred to as the “lessee”) who is resident in Canada, if (i) a previous supply of the property to the lessee was made by way of lease, licence or similar arrangement (in this paragraph referred to as the “first lease”) that was deemed under subsection 178.8(4) to be made in Canada, (ii) the agreement for the particular taxable supply is an agreement (in this subparagraph referred to as a “subsequent lease”) that results from the assignment of, or that succeeds, upon the renewal or variation of, the first lease or a subsequent lease, and (iii) the lessee is not a registrant who is acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the lessee; (2) Subsection (1) applies to any supply of property referred to in paragraph 217(b.11) of the Act as a particular taxable supply if the recipient of that supply previously received a supply of the property by way of lease, licence or similar arrangement that was deemed under subsection 178.8(4) of the Act to be made in Canada. 1997, c. 10, s. 204(1) 21. (1) Section 220.01 of the Act is replaced by the following: Definitions 220.01 The following definitions apply in this Division. “provincial authority” « autorité provinciale » “specified provincial tax” « taxe provinciale déterminée » “provincial authority” means any department or agency of a province that is empowered under the laws of that province to collect, at the time when a specified motor vehicle is registered in the province, any specified provincial tax imposed in respect of the specified motor vehicle. “specified provincial tax” means (a) in the case of a vehicle registered in the province of Nova Scotia, the tax imposed under Part IIA of the Revenue Act, S.N.S. 1995-96, c. 17, as amended from time to time; C. 18 Sales Ta (b) in the case of a vehicle registered in the province of New Brunswick, the tax imposed under Part V of the Harmonized Sales Tax Act, S.N.B. 1997, c. H-1.01, as amended from time to time; and (c) in the case of a vehicle registered in the province of Newfoundland and Labrador, the tax imposed under the Retail Sales Tax Act, R.S.N.L. 1990, c. R-15, as amended from time to time. “specified value” « valeur déterminée » “tangible personal property” « bien meuble corporel » “specified value”, in respect of a specified motor vehicle that a person is required to register under the laws of a participating province relating to the registration of motor vehicles, means the value that would be attributed to the specified motor vehicle by the provincial authority for that province for the purpose of calculating the specified provincial tax payable if, at the time of registration, that tax were payable in respect of the specified motor vehicle. “tangible personal property” includes a mobile home that is not affixed to land and a floating home. (2) Subsection (1) is deemed to have come into force on April 1, 1997. 1997, c. 10, s. 204(1) 22. (1) Paragraph (a) of the description of B in subsection 220.05(1) of the Act is replaced by the following: (a) where the property is a specified motor vehicle that the person is required to register under the laws of the particular participating province relating to the registration of motor vehicles, the specified value, (2) Subsection (1) is deemed to have come into force on April 1, 1997. 1997, c. 10, s. 204(1) 23. (1) Paragraph 220.07(3)(a) of the Act is replaced by the following: (a) in the case of a specified motor vehicle that a person is required to register under the laws of the province relating to the registration of motor vehicles, the specified value; 2006-2007 Taxe de ve (2) Subsection (1) is deemed to have come into force on April 1, 1997. 1997, c. 10, s. 204(1) 24. (1) Subsection 220.09(2) of the Act is replaced by the following: Exception (2) Despite subsection (1), if the tax under section 220.05, 220.06 or 220.07 is payable to Her Majesty in right of Canada by a person in respect of a specified motor vehicle that the person is required to register under the laws of a participating province relating to the registration of motor vehicles, the person shall pay the tax to the provincial authority in its capacity as agent of Her Majesty in right of Canada at the earlier of the time at which the person registers the vehicle and the time at or before which the person is required to register it, and (a) if the person is a registrant, the person is not required to report the tax in a return; and (b) if the person is not a registrant, the person is not required to file a return in respect of the tax. (2) Subsection (1) is deemed to have come into force on April 1, 1997. 2000, c. 30, s. 49(1) 25. (1) Paragraph 221.1(2)(a) of the Act is replaced by the following: (a) that at least 90% of the total of all consideration for supplies to the person of items of inventory acquired in Canada by the person in the 12-month period commencing immediately after the particular day will be attributable to supplies that would be included in section 1 of that Part if it were read without reference to paragraph (e) of that section; and (2) Subsection (1) is deemed to have come into force on January 1, 2001. 1997, c. 10, s. 45(1) 26. (1) Paragraph (c) of the description of A in subsection 225.1(2) of the Act is replaced by the following: (c) the total of all amounts each of which is an amount in respect of supplies of real property or capital property made by way of sale by or to the charity that is required C. 18 Sales Ta under subsection 231(3) or 232(3) to be added in determining the net tax for the particular reporting period, and 2000, c. 30, s. 53(7) (2) Paragraph (b.1) of the description of B in subsection 225.1(2) of the Act is repealed. (3) Subsection (1) applies for the purpose of determining the net tax of a charity for reporting periods beginning after 1996. (4) Subsection (2) applies for the purpose of determining the net tax of a charity for reporting periods beginning after the last reporting period of the charity that ends within four years after the reporting period of the charity that includes July 15, 2002. 1997, c. 10, s. 208(1) 27. (1) Paragraph 225.2(5)(c) of the Act is replaced by the following: (c) be filed by the financial institution with the Minister in prescribed manner on or before (i) the day on or before which a return under Division V for the reporting period of the financial institution in which the election is to become effective is required to be filed, or (ii) any later day that the Minister may allow. (2) Subsection (1) is deemed to have come into force on October 3, 2003. 1993, c. 27, s. 89(1) 28. (1) The portion of subsection 226(2) of the Act before paragraph (a) is replaced by the following: Separate supply of beverage and container (2) For the purposes of this section, if a person supplies a beverage in a returnable container in circumstances in which the person typically does not unseal the container, 1993, c. 27, s. 89(1); 1997, c. 10, s. 209 (2) Section 226 of the Act, as amended by subsection (1), is replaced by the following: Definitions 226. (1) The following definitions apply in this section. 2006-2007 “applicable legislated amount” « montant obligatoire applicable » Taxe de ve “applicable legislated amount” in a province for a returnable container of a particular class means (a) except if paragraph (b) applies, the legislated consumers’ refund in the province for a returnable container of that class; or (b) if, under an Act of the legislature of the province in respect of recycling, a legislated consumers’ refund for a returnable container of that class is specified and another amount (in this paragraph referred to as the “recycler’s reimbursement”) is specified as the amount to be paid, otherwise than specifically in respect of the handling of the container, for a used and empty returnable container of that class when supplied by a person who, on acquiring it used and empty, paid an amount as the legislated consumers’ refund for the container, but no amount is specified as the amount, or the minimum amount, to be charged by a distributor in respect of the supply of a filled and sealed returnable container of that class, the recycler’s reimbursement. “consumers’ recycler” « récupérateur » “distributor” « distributeur » “legislated consumers’ refund” « remboursement obligatoire aux consommateurs » “recycler” « recycleur » “consumers’ recycler”, in respect of a returnable container of a particular class in a province, means a person who, in the ordinary course of their business, acquires in the province used and empty returnable containers of that class from consumers for consideration. “distributor” of a returnable container of a particular class in a province means a person who supplies beverages in filled and sealed returnable containers of that class in the province and charges a returnable container charge in respect of the returnable containers. “legislated consumers’ refund” in a province for a returnable container of a particular class means the amount, or the minimum amount, that, under an Act of the legislature of the province in respect of recycling, must be paid in certain circumstances for a used and empty returnable container of that class to a person of a class that includes consumers. “recycler” of returnable containers of a particular class in a province means C. 18 Sales Ta (a) a person who, in the ordinary course of their business, acquires used and empty returnable containers of that class (or the material resulting from their compaction) in the province for consideration; or (b) a person who, in the ordinary course of their business, pays consideration to a person referred to in paragraph (a) in compensation for that person acquiring used and empty returnable containers of that class and paying consideration for those containers. “recycling” « recyclage » “recycling”, in respect of a province, means (a) the return, redemption, reuse, destruction or disposal of (i) returnable containers in the province, or (ii) returnable containers in the province and other goods; or (b) the control or prevention of waste or the protection of the environment. “refund” « montant remboursé » “refund”, at any time in a province, means (a) in relation to a returnable container of a particular class that is supplied used and empty, or that is filled with a beverage that is supplied, at that time in the province, (i) the greatest of (A) if there is an applicable legislated amount in the province for returnable containers of that class, that amount, (B) if the supplier is a consumers’ recycler who, in the ordinary course of their business, sells the beverage in returnable containers of that class in the province and the usual returnable container charge that is charged by the supplier when so selling the beverage is not less than the amount (in this clause referred to as the “usual refund”) that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, the usual refund, (C) if the supplier is a consumers’ recycler who does not, in the ordinary course of their business, sell the bev2006-2007 Taxe de ve erage in returnable containers of that class in the province, the amount that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, and (D) if, at that time, (I) in accordance with established industry practice, suppliers charge a common amount as the usual returnable container charge when selling the beverage in returnable containers of that class in the province, and (II) it is not exceptional for the usual amount paid to consumers by consumers’ recyclers as consideration for supplies in the province of used and empty returnable containers of that class to vary among consumers’ recyclers, the greatest of those usual amounts paid to consumers not exceeding the usual returnable container charge, and (ii) if none of clauses (i)(A) to (D) applies, the portion of the amount that is, at that time, the consideration paid, in the greatest number of cases, by consumers’ recyclers for supplies in the province of used and empty returnable containers of that class from consumers that does not exceed the amount that is, at that time, the returnable container charge charged in the greatest number of cases by suppliers when selling the beverage in returnable containers of that class in the province; and (b) in relation to a returnable container of a particular class in respect of which a supply is made at that time in the province of a service to which subsection (7) applies, (i) if the supplier is a consumers’ recycler, the amount that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, and C. 18 Sales Ta (ii) in any other case, the amount that is, at that time, the consideration paid, in the greatest number of cases, by consumers’ recyclers for supplies in the province of used and empty returnable containers of that class from consumers. “returnable container” « contenant consigné » “returnable container” in a province means a beverage container of a class of containers that (a) are ordinarily acquired by consumers; (b) when acquired by consumers, are ordinarily filled and sealed; and (c) are ordinarily supplied in the province used and empty by consumers for consideration. “returnable container charge” « droit sur contenant consigné » “returnable container charge”, at any time, means (a) in relation to a returnable container of a particular class containing a beverage that is supplied at that time in a province, the total of all amounts, each of which is charged by the supplier (i) as an amount in respect of recycling in the province, (ii) for the purpose of recovering an amount equivalent to the amount referred to in subparagraph (i) that was charged to the supplier, or (iii) for the purpose of recovering an amount equivalent to the amount that was charged to the supplier by another supplier for the purpose referred to in subparagraph (ii) or for the purpose referred to in this subparagraph; (b) in relation to a filled and sealed returnable container containing a beverage that is held by a person at that time for consumption, use or supply in a province, (i) if the beverage is held at that time by the person for the purpose of making a supply in the province of the beverage in the container, the amount that the person can reasonably expect will be determined under paragraph (a) in respect of the container when the beverage is so supplied, and 2006-2007 Taxe de ve (ii) in any other case, the amount in respect of the container that would reasonably be expected to be determined under paragraph (a) if the beverage were supplied at that time to the person in the province; and (c) in relation to a returnable container of a particular class in respect of which a recycler of returnable containers of that class makes at that time a supply in a province of a service in respect of recycling to a distributor, or a recycler, of returnable containers of that class, (i) if an Act of the legislature of the province in respect of recycling specifies an amount, or a minimum amount, that must be collected from, or paid by, a recipient in certain circumstances for the supply of a beverage in a returnable container of that class, that amount, and (ii) in any other case, the amount in respect of the container that would reasonably be expected to be determined under paragraph (a) if the container were filled and sealed and contained a beverage that was being supplied at that time in the province. “specified beverage retailer” « vendeur au détail déterminé » “specified beverage retailer”, in respect of a returnable container of a particular class, means a registrant (a) who, in the ordinary course of the registrant’s business, makes supplies (in this definition referred to as “specified supplies”) of beverages in returnable containers of that class to consumers in circumstances in which the registrant typically does not unseal the containers; and (b) whose circumstance is not that all or substantially all of the supplies of used and empty returnable containers of that class that are gathered by the registrant at establishments at which the registrant makes specified supplies are of containers that the registrant acquired used and empty for consideration. C. 18 Taxable supply of beverage in returnable container (2) Subject to subsection (3), for the purposes of this Part, if a supplier makes a particular taxable supply (other than a zerorated supply) in a province of a beverage in a filled and sealed returnable container of a particular class in circumstances in which the supplier typically does not unseal the container, and the supplier charges the recipient a returnable container charge in respect of the container, Sales Ta (a) the consideration for the particular supply is deemed to be equal to the amount determined by the formula A-B where A is the consideration for the particular supply as otherwise determined for the purposes of this Part, and B is the returnable container charge; (b) if the returnable container charge exceeds the refund for the container, the supplier is deemed to have made to the recipient, at the time at which the consideration for the particular supply becomes due or would, in the absence of section 156, have become due, a taxable supply in the province of a service 2006-2007 Taxe de ve in respect of the container for consideration, separate from the consideration for the beverage, that becomes due at that time and that is, subject to that section, equal to (i) except if subparagraph (ii) applies, the amount by which the returnable container charge exceeds the refund for the container, or (ii) if an Act of the legislature of the province is prescribed for the purposes of this paragraph, (A) if that province is a participating province and that Act, or regulations made under it, specify an amount in respect of a returnable container of that class that must be equal to or not less than the total (in this clause referred to as the “tax-included charge”) of the returnable container charge to be charged in respect of the particular supply or a previous supply of the beverage in the container and any applicable tax under this Part, the amount determined by the formula A × [100/(100 + B)] where A is the amount by which the taxincluded charge exceeds the refund for the container, and B is the total of the rate of tax under subsection 165(1) and the tax rate for the province, and (B) in any other case, the amount determined in prescribed manner; and (c) the recipient is deemed to have acquired that service for the same purpose as that for which the recipient acquired the beverage. Exception for specified beverage retailer (3) Subsection (2) does not apply to a supply by a registrant of a beverage in a returnable container in respect of which the registrant is a specified beverage retailer if the registrant elects C. 18 Sales Ta not to deduct the amount of the returnable container charge in respect of the container in determining the consideration for the supply for the purposes of this Part. Supply of used container (4) If a person makes a particular supply in a province of a used and empty returnable container (or the material resulting from its compaction), (a) the value of the consideration for the particular supply is deemed, for the purposes of this Part other than this section, to be nil; and (b) if the consideration exceeds the refund for the container, the supplier is deemed, for the purposes of this Part, to have made to the recipient, at the time at which the consideration for the particular supply becomes due or would, in the absence of section 156, have become due, a taxable supply in the province of a service in respect of the container for consideration, that is separate from the consideration for the particular supply, equal to the excess amount. Exception (5) Subsection (4) does not apply (a) for the purposes of section 5 of Part V.1 of Schedule V or section 10 of Part VI of that Schedule; or (b) to a supply made in a province of a used and empty returnable container of a particular class (or the material resulting from its compaction) if the usual business practice of the recipient is to pay consideration for supplies in the province of used and empty returnable containers of that class (or the material resulting from their compaction) that is determined based on the value of the material from which the containers are made or is otherwise determined based neither on the amount of the refund for the returnable containers nor on the amount of the returnable container charge in respect of filled and sealed returnable containers of that class containing beverages that are supplied in the province. 2006-2007 Supply of recycling service to distributor Taxe de ve (6) For the purposes of this Part (other than section 5 of Part V.1 of Schedule V and section 10 of Part VI of that Schedule), if (a) a recycler of returnable containers of a particular class makes a particular taxable supply in a province of a service in respect of the recycling of returnable containers of that class to a distributor of returnable containers of that class who is not a recycler who supplies such services to other distributors of returnable containers of that class, (b) the recycler does not supply the containers to the distributor, and (c) the consideration for the particular supply is based in whole or in part on the amount in that province of the returnable container charge in respect of returnable containers of that class or on an amount that a consumer could reasonably expect to receive for a used and empty returnable container of that class, the value of the consideration for the particular supply is deemed to be equal to the amount determined by the formula A-B where A is the consideration for the particular supply as otherwise determined for the purposes of this Part; and B is the total of all amounts each of which is the returnable container charge in that province for a returnable container in respect of which that consideration is paid or payable. Supply between recyclers (7) For the purposes of this Part, if a recycler of returnable containers of a particular class makes a particular taxable supply in a province of a service in respect of the recycling of returnable containers of that class to another recycler of returnable containers of that class without supplying the containers to the other recycler and the consideration for the particular supply is based in whole or in part on the C. 18 Sales Ta amount in that province of the refund, or the returnable container charge, in respect of returnable containers of that class, the value of the consideration for the particular supply is deemed to be equal to the amount determined by the formula A-B where A is the consideration for the particular supply as otherwise determined for the purposes of this Part; and B is the total of all amounts each of which is the refund in that province for a returnable container in respect of which that consideration is paid or payable. Special rules in the case of prescribed provincial Act (8) Subject to subsection (9), if a registrant acquires, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a beverage in a returnable container for the purpose of making in that province a taxable supply of the beverage in the container in circumstances in which the registrant will charge a returnable container charge in respect of the container and be required to collect tax in respect of the supply, (a) if a supply of a service in respect of the container is deemed under that paragraph to have been made to the registrant, the tax in respect of the supply of the service shall not be included in determining an input tax credit of the registrant; and (b) if the registrant makes a supply in that province of the beverage in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container, neither the consideration for the supply of that service nor any tax in respect of that supply shall be included in determining the net tax of the registrant. Non-application of special rules (9) If a registrant is deemed under paragraph (2)(b) to have received or made at any time a supply in a province of a service in respect of a returnable container of a particular class con2006-2007 Taxe de ve taining a particular beverage, paragraph (8)(a) or (b), as the case may be, does not apply in respect of the supply if (a) the usual business practice of the registrant at that time is to charge, when making supplies in the province of the particular beverage contained in returnable containers of that class, a returnable container charge that is not equal to the returnable container charge that the registrant pays in respect of returnable containers of that class containing the particular beverage when supplies of the beverage are made to the registrant in the province; or (b) the registrant is a specified beverage retailer in respect of the container and elects under subsection (3) not to deduct the amount of the returnable container charge charged by the registrant in determining the consideration for the supply by the registrant of the particular beverage in the returnable container. Change in practice — beginning to apply special rules (10) If, after changing their usual business practice with respect to supplies of a particular beverage in returnable containers of a particular class from the practice described in subsection (9), a registrant makes, at a particular time, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a supply of the particular beverage in a returnable container of that class in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container and that supply of the beverage is the first supply by the registrant of the particular beverage in a returnable container of that class in respect of which paragraph (8)(b) applies since the change in practice, the registrant is deemed, for the purposes of this Part, (a) to have made, at the particular time, a taxable supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage (i) that was, immediately before the particular time, held by the registrant for the purpose of making a taxable supply of the particular beverage in the province in circumstances in which the registrant C. 18 Sales Ta would be deemed under paragraph (2)(b) to have made a supply of a service in respect of the container, and (ii) that was last supplied to the registrant in the province in circumstances in which the registrant was deemed under that paragraph to have received a supply of a service in respect of which the registrant was entitled to claim an input tax credit or would have been so entitled if tax would, in the absence of section 156 or 167, have been payable in respect of that supply of the service; and (b) to have collected, at the particular time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been made by the registrant equal to the tax that was payable or would, in the absence of section 156 or 167, have been payable by the registrant in respect of the supply to the registrant of the service referred to in subparagraph (a)(ii) in respect of that container. Change in practice — ceasing to apply special rules (11) If, after changing their usual business practice with respect to supplies of a particular beverage in returnable containers of a particular class to the practice described in subsection (9), a registrant makes, at a particular time, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a supply of the particular beverage in a returnable container of that class in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container and the supply is the first supply by the registrant of the particular beverage in a returnable container of that class in respect of which paragraph (8)(b) would have applied but for the change in practice, the registrant is deemed, for the purposes of this Part, (a) to have received, at the particular time, for use exclusively in a commercial activity of the registrant, a taxable supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage 2006-2007 Taxe de ve (i) that was, immediately before the particular time, held by the registrant for the purpose of making a taxable supply of the particular beverage in the province in circumstances in which the registrant would be deemed under paragraph (2)(b) to have made a supply of a service in respect of the container, and (ii) that was last supplied to the registrant in the province in circumstances in which the registrant was deemed under that paragraph to have received a supply of a service in respect of which, owing solely to paragraph (8)(a), the registrant was not entitled to claim an input tax credit or would not have been so entitled if tax would, in the absence of section 156 or 167, have been payable in respect of that supply of the service; and (b) to have paid, at the particular time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been received by the registrant equal to the tax that was or would, in the absence of section 156 or 167, have been payable by the registrant in respect of the supply to the registrant of the service referred to in subparagraph (a)(ii) in respect of that container. Ceasing to be registrant while special rules apply (12) If a person who makes supplies of a particular beverage in filled and sealed returnable containers of a particular class in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies ceases at any time to be a registrant, the person is deemed, for the purposes of this Part, (a) to have received, immediately before that time, a supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage that was held by the person immediately before that time and in respect of which paragraph (8)(b) would have applied if the particular beverage in the container had been supplied by the person immediately before that time in circumstances in which the person would C. 18 Sales Ta have been deemed under paragraph (2)(b) to have made a supply of a service in respect of the container; and (b) to have paid, immediately before that time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been received by the person equal to the tax that was payable or would, in the absence of section 156 or 167, have been payable by the person in respect of the supply to the person of the service that was deemed under paragraph (2)(b) to have been made to the person when the person acquired the particular beverage. Supplies under s. 167 Deemed tax collected where s. 156 or 167 applies (13) For the purposes of this Part, if a registrant makes a taxable supply of a beverage in a filled and sealed returnable container under an agreement for the supply of a business or part of a business in circumstances in which subsection 167(1.1) applies to the supply and the registrant is deemed under subsection (2) to have made a supply of a service in respect of the container, the supply of the service is deemed to have been made under the agreement and not to be a service referred to in subparagraph 167(1.1)(a)(i). (14) For the purposes of this Part, if (a) a supplier makes a supply in a province of a beverage in a filled and sealed returnable container to a registrant and is deemed under paragraph (2)(b) to have made at any time a supply to the registrant of a service in respect of the container, (b) because of section 156 or 167, no tax is payable in respect of the supplies to the registrant of the beverage and of the service, (c) by reason only of paragraph (8)(a), the registrant would not have been entitled to claim an input tax credit in respect of the tax that would, in the absence of section 156 or 167, have been payable in respect of the supply of the service, and 2006-2007 Taxe de ve (d) paragraph (8)(b) does not apply in respect of the supplies to the registrant of the beverage and the service in determining the net tax of the supplier, the registrant is deemed to have made, at that time, a particular taxable supply in the province of a service in respect of the container for consideration equal to the amount that would, without reference to section 156, be the value of the consideration for the supply of the service that is deemed under paragraph (2)(b) to have been made to the registrant in respect of the container and the registrant is deemed to have collected at that time tax in respect of the particular supply calculated on that consideration. Deemed tax paid where s. 156 or 167 applies (15) For the purposes of this Part, if (a) a supplier makes a supply in a province of a beverage in a filled and sealed returnable container to a registrant and is deemed under paragraph (2)(b) to have made at any time a supply to the registrant of a service in respect of the container, (b) because of section 156 or 167, no tax is payable in respect of the supplies to the registrant of the beverage and of the service, (c) paragraph (8)(a) would not have applied to the registrant in respect of the tax that would, in the absence of section 156 or 167, have been payable in respect of the supply of the service, and (d) paragraph (8)(b) applies in respect of the supplies by the supplier to the registrant of the beverage and the service in determining the net tax of the supplier, the registrant is deemed to have received, at that time, a particular taxable supply in the province of a service in respect of the container for consideration equal to the amount that would, without reference to section 156, be the value of the consideration for the supply of the service that is deemed under paragraph (2)(b) to have been made to the registrant in respect of the container, the registrant is deemed to have paid, at that time, tax in respect of the particular supply calculated on that consideration and the C. 18 Sales Ta registrant is deemed to have acquired that service for the same purpose as that for which the registrant acquired the beverage. Fair market value of beverage in filled and sealed container (16) For the purposes of this Part, if a beverage in a filled and sealed returnable container in respect of which there is a returnable container charge is held at any time by a person for consumption, use or supply in a province in the course of commercial activities of the person, the fair market value of the beverage at that time is deemed not to include the amount that would be determined as the refund for the container if the beverage were supplied in the province by the person at that time in the filled and sealed container. Basic tax content of beverage in filled and sealed container (17) The basic tax content at any time of a beverage in a filled and sealed returnable container that is held at that time by a person shall be determined as if the tax payable, if any, in respect of the last supply of a service in respect of the container that was deemed under subsection (2) or (15) to have been made to the person, and the tax payable, if any, in respect of the last supply of a service in respect of the container that was deemed under subsection (14) to have been made by the person, were additional tax payable by the person in respect of the last acquisition of the beverage by the person. Addition to net tax (18) If (a) a registrant makes a supply in a province of a beverage in a returnable container of a particular class in respect of which the registrant is a specified beverage retailer, (b) paragraph (2)(a) applies in determining, for the purposes of this Part, the consideration for the supply, and (c) the registrant makes at any time a supply in the province of that container used and empty for consideration without having acquired it used and empty for consideration, 2006-2007 Taxe de ve the registrant shall, in determining the net tax of the registrant for the reporting period that includes that time, add the amount determined by the formula A×B where A is (i) if the province is a participating province, the total of the rate of tax under subsection 165(1) and the tax rate for the province, and (ii) in any other case, the rate of tax under subsection 165(1); and B is the refund for a returnable container of that class in the province. (3) Subsection (1) applies to any supply of a beverage in a returnable container made after 1995 and before May 2002, unless (a) the supplier included, in determining their net tax, a particular amount as or on account of tax that was calculated on the total amount (excluding any tax prescribed for the purposes of section 154 of the Act or any gratuity) paid or payable by the recipient in respect of the beverage and the container and, before February 8, 2002, the Minister of National Revenue received an application for a rebate under subsection 261(1) of the Act of the portion of the particular amount attributed to the container; or (b) the supplier included, in determining their net tax as reported in a return under Division V of Part IX of the Act received by the Minister of National Revenue before February 8, 2002, an amount as or on account of tax in respect of the supply of the beverage and the container that was calculated on an amount less than the total amount (excluding any tax prescribed for the purposes of section 154 of the Act or C. 18 Sales Ta any gratuity) paid or payable by the recipient in respect of the beverage and the container. (4) Subsection (2) is deemed to have come into force on May 1, 2002 and applies to supplies for which consideration becomes due on or after that day or is paid on or after that day without having become due, except that (a) for the purposes of applying sections 176 and 226.1 of the Act to supplies of returnable containers for which consideration becomes due on or before July 15, 2002 or is paid on or before that day without having become due, section 226 of the Act shall be read as if subsection (2) had not come into force; and (b) subsections 226(4), (6) and (7) of the Act, as enacted by subsection (2), do not apply to supplies for which consideration (determined without reference to those subsections) is paid or becomes due on or before July 15, 2002. 29. (1) The Act is amended by adding the following after section 226: Non-application of exemption 226.01 Section 5.1 of Part V.1 of Schedule V and section 6 of Part VI of that Schedule do not apply to a supply of a used and empty returnable container (as defined in section 226) or to a supply of the material resulting from its compaction. (2) Section 226.01 of the Act, as enacted by subsection (1), is repealed. (3) Subsection (1) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due. (4) Subsection (2) applies to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due. 2006-2007 Taxe de ve 2000, c. 30, s. 55(1) 30. (1) The portion of subsection 226.1(1) of the French version of the Act before paragraph (a) is replaced by the following: Déduction pour organisme de bienfaisance 226.1 (1) Un organisme de bienfaisance peut déduire un montant dans le calcul de sa taxe nette pour sa période de déclaration au cours de laquelle la fourniture donnée visée à l’alinéa a) est effectuée ou pour une période de déclaration postérieure si les conditions suivantes sont réunies : 2000, c. 30, s. 55(1) (2) The portion of subsection 226.1(1) of the English version of the Act after paragraph (e) and before the formula is replaced by the following: the charity may, in determining the net tax for its reporting period in which the particular supply is made or for a subsequent reporting period, deduct the amount determined by the formula 2000, c. 30, s. 55(1) (3) Section 226.1 of the Act, as amended by subsections (1) and (2), is repealed. (4) Subsections (1) and (2) apply to any supply of a container made to a charity after March 1998. (5) Subsection (3) applies to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due. 1997, c. 10, s. 50(1) 31. (1) Subsection 231(1) of the Act is replaced by the following: Bad debt — deduction from net tax 231. (1) If a supplier has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the supplier was dealing at arm’s length, it is established that all or a part of the total of the consideration and tax payable in respect of the supply has become a bad debt and the supplier at any time writes off the bad debt in the supplier’s books of account, the reporting entity for the supply may, in determining the reporting entity’s net tax for the reporting period that C. 18 Sales Ta includes that time or for a subsequent reporting period, deduct the amount determined by the formula A × B/C where A is the tax in respect of the supply; B is the total of the consideration, tax and applicable provincial tax remaining unpaid in respect of the supply that was written off at that time as a bad debt; and C is the total of the consideration, tax and applicable provincial tax in respect of the supply. Reporting and remittance conditions (1.1) A reporting entity is not entitled to deduct an amount under subsection (1) in respect of a supply unless (a) the tax collectible in respect of the supply is included in determining the amount of net tax reported in the reporting entity’s return under this Division for the reporting period in which the tax became collectible; and (b) all net tax remittable, if any, as reported in that return is remitted. 1997, c. 10, s. 50(1); 2000, c. 30, ss. 58(2) and (3) (2) Subsections 231(3) and (4) of the Act are replaced by the following: Recovery of bad debt (3) If all or part of a bad debt in respect of which a person has made a deduction under this section is recovered at any time, the person shall, in determining the person’s net tax for the reporting period that includes that time, add the amount determined by the formula A × B/C where A is the amount of the bad debt recovered at that time; B is the tax in respect of the supply to which the bad debt relates; and C is the total of the consideration, tax and applicable provincial tax in respect of the supply. 2006-2007 Taxe de ve Limitation period (4) A person may not claim a deduction under this section in respect of a bad debt relating to a supply unless the deduction is claimed in a return under this Division filed within four years after the day on or before which a return of the person was required to be filed for the reporting period in which the supplier has written off the bad debt in its books of account. Definitions (5) The following definitions apply in this section. “applicable provincial tax” « taxe provinciale applicable » “reporting entity” « déclarant » “applicable provincial tax”, in respect of a supply, means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply that is a prescribed tax, duty or fee for the purposes of section 154. “reporting entity” for a supply means (a) if an election has been made under subsection 177(1.1) in respect of the supply, the person who is required, under that subsection, to include the tax collectible in respect of the supply in determining the person’s net tax; and (b) in any other case, the supplier. (3) Subsection (1) applies to supplies made after April 23, 1996. (4) Subsections 231(3) and (4) of the Act, as enacted by subsection (2), apply to bad debts relating to supplies made after April 23, 1996 except that the reference to “supplier” in subsection 231(4) of the Act, as enacted by subsection (2), shall be read as a reference to “person” in its application to a deduction claimed by a person under subsection 231(2) of the Act as that subsection read in relation to an account receivable transferred to the person before 2000. C. 18 Sales Ta (5) Subsection 231(5) of the Act, as enacted by subsection (2), is deemed to have come into force on April 24, 1996. (6) Despite subsection 231(4) of the Act, as enacted by subsection (2), if a supplier and a registrant acting as an agent of the supplier have jointly made an election under subsection 177(1.1) of the Act in respect of a supply made before December 20, 2002 and the supplier wrote off a bad debt relating to the supply in the supplier’s books of account at any time before December 21, 2002, the registrant may claim a deduction under subsection 231(1) of the Act, as enacted by subsection (1), in respect of the bad debt written off at that time in a return of the registrant under Division V of Part IX of the Act that is filed with the Minister of National Revenue on or before the later of the day that is one year after December 20, 2002 and the day that is four years after the day on or before which the registrant’s return under that Division for the registrant’s reporting period in which the bad debt was written off is required to be filed. 2000, c. 30, s. 63(2) 32. (1) The portion of subsection 235(1) of the Act before the formula is replaced by the following: Net tax where passenger vehicle leased 235. (1) If, in a taxation year of a registrant, tax becomes payable, or is paid without having become payable, by the registrant in respect of supplies of a passenger vehicle made under a lease and (a) the total of the consideration for the supplies that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and that Act were read without reference to section 67.3, exceeds (b) the amount in respect of that consideration that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and the formulae in paragraphs 7307(1)(b) 2006-2007 Taxe de ve and (3)(b) of the Income Tax Regulations were read without reference to the description of B, there shall be added in determining the net tax for the appropriate reporting period of the registrant an amount determined by the formula (2) Subsection (1) applies in respect of reporting periods that end after November 27, 2006 and in respect of any reporting period that ends on or before that day unless (a) an amount was added pursuant to section 235 of the Act in determining the net tax for the reporting period; (b) the amount was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales taxes; and (c) the return for the reporting period was filed under Division V of Part IX of the Act on or before that day. 33. (1) Subsection 240(3) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a). (2) Subsection 240(3) of the Act is amended by striking out the word “or” at the end of paragraph (d), by adding the word “or” at the end of paragraph (e), as enacted by subsection (1), and by adding the following after paragraph (e): C. 18 Sales Ta (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition. (3) Subsection (1) is deemed to have come into force on June 28, 1999. (4) Subsection (2) is deemed to have come into force on November 17, 2005. 1997, c. 10, s. 59(2) 34. (1) The portion of subsection 252.1(2) of the French version of the Act after paragraph (a) is replaced by the following: b) le logement, l’emplacement ou le voyage est acquis par la personne à une fin autre que sa fourniture dans le cours normal de toute entreprise de la personne qui consiste à effectuer de telles fournitures; c) le logement ou l’emplacement est mis à la disposition d’un particulier non-résident. Le montant remboursable est égal à la taxe payée par la personne relativement au logement ou à l’emplacement. 1993, c. 27, s. 107(1); 1997, c. 10, s. 59(3) (2) The portion of subsection 252.1(3) of the French version of the Act after paragraph (a) is replaced by the following: b) le logement, l’emplacement ou le voyage est acquis par la personne pour fourniture dans le cours normal de son entreprise qui consiste à effectuer de telles fournitures; c) le logement, l’emplacement ou le voyage est fourni à une autre personne non-résidente, et la contrepartie de cette fourniture est versée à l’étranger, là où le fournisseur, ou son mandataire, mène ses affaires; d) le logement ou l’emplacement est mis à la disposition d’un particulier non-résident. Le montant remboursable est égal à la taxe payée par la personne relativement au logement ou à l’emplacement. 1993, c. 27, s. 107(1); 2000, c. 30, ss. 68(11) and (12) (3) The portion of subsection 252.1(8) of the French version of the Act after paragraph (a) is replaced by the following: b) l’inscrit verse à l’acquéreur, ou porte à son crédit, un montant au titre d’un remboursement, prévu aux paragraphes (2) ou (3), qui 2006-2007 Taxe de ve pourrait être versé à l’acquéreur relativement au logement ou à l’emplacement s’il payait la taxe afférente et remplissait les conditions énoncées à l’article 252.2; c) le montant versé à la personne, ou porté à son crédit, est égal au montant suivant : (i) dans le cas d’une fourniture de voyage organisé, le montant qui serait calculé selon l’alinéa (5)b) relativement à la fourniture, (ii) dans le cas d’une fourniture de logement provisoire, ou d’emplacement de camping, non compris dans un voyage organisé, la taxe payée par l’acquéreur relativement à la fourniture; d) dans le cas d’un remboursement prévu au paragraphe (2) : (i) soit la contrepartie de la fourniture est versée à l’étranger, là où l’inscrit, ou son mandataire, mène ses affaires, (ii) soit, si le logement ou l’emplacement est fourni dans le cadre d’un voyage organisé qui comprend des biens ou des services autres que les repas, les biens ou les services livrés ou rendus par la personne qui le fournit et relativement au logement ou à l’emplacement, un acompte d’au moins 20 % de la contrepartie du voyage organisé est versé : (A) par l’acquéreur à l’inscrit au moins quatorze jours avant le premier jour où un logement provisoire, ou un emplacement de camping, compris dans le voyage est mis à la disposition d’un particulier aux termes de la convention portant sur la fourniture du voyage, (B) au moyen d’une carte de crédit ou de paiement émise par une institution non-résidente — banque, association coopérative de crédit, compagnie de fiducie ou institution semblable — ou au moyen d’un chèque, d’une traite ou autre lettre de change tiré sur un compte à l’étranger auprès d’une telle institution. C. 18 Sales Ta Pour sa part, l’acquéreur n’a pas droit à un montant remboursable ou à une remise de taxe relativement au logement ou à l’emplacement. (4) Subsections (1) to (3) apply for the purpose of determining rebates under section 252.1 of the Act (a) in respect of short-term accommodation, or camping accommodation, that is not included in a tour package if the accommodation is first made available after June 1998 under the agreement for the supply; and (b) in respect of short-term accommodation, or camping accommodation, that is included in a tour package, if the first night in Canada, for which short-term accommodation or camping accommodation included in the tour package is made available to a non-resident individual, is after June 1998. 1997, c. 10, s. 60(2) 35. (1) Subparagraph 252.2(g)(ii) of the French version of the Act is replaced by the following: (ii) dans les autres cas, 75 $ pour chaque particulier à la disposition duquel un de ces logements ou emplacements est mis. (2) Subsection (1) applies for the purpose of determining any rebate under section 252 or 252.1 of the Act the application of which is or would have been, in the absence of subsection 334(1) of the Act, received by the Minister of National Revenue after June 1998. 1993, c. 27, s. 107(1); 2000, c. 30, s. 70(4) 36. (1) Subsection 252.4(4) of the French version of the Act is replaced by the following: Remboursement par le fournisseur (4) L’exploitant d’un centre de congrès ou le fournisseur d’un logement provisoire ou d’un emplacement de camping peut demander la déduction prévue au paragraphe 234(2) au titre du montant visé à l’alinéa b) et versé à une personne — organisateur d’un congrès étranger qui n’est pas inscrit aux termes de la sous2006-2007 Taxe de ve section d de la section V ou promoteur d’un tel congrès —, ou porté à son crédit, si les conditions suivantes sont réunies : a) la personne est l’acquéreur d’une des fournitures suivantes : (i) la fourniture taxable du centre congrès, ou des fournitures liées congrès, effectuées par l’exploitant centre qui n’est pas l’organisateur congrès, de au du du (ii) la fourniture taxable, effectuée par un inscrit autre que l’organisateur du congrès, du logement provisoire ou de l’emplacement de camping que la personne acquiert exclusivement pour fourniture dans le cadre du congrès; b) l’exploitant du centre de congrès ou le fournisseur du logement ou de l’emplacement verse à la personne, ou porte à son crédit, un montant au titre du remboursement que la personne pourrait obtenir en vertu des paragraphes (1) ou (3) relativement à la fourniture du centre, du logement ou de l’emplacement en payant la taxe afférente et en demandant le remboursement en conformité avec ces paragraphes. Pour sa part, la personne n’a pas droit à un remboursement ou à une remise de la taxe à laquelle le montant se rapporte. (2) Subsection (1) applies to supplies, referred to in subsection 252.4(4) of the Act, as enacted by subsection (1), to a person of property or a service that is acquired by the person for supply in connection with a convention, if the convention begins after June 1998 and all of the supplies of admissions to the convention are made after February 24, 1998. 1997, c. 10, s. 221(3) 37. (1) Subsection 254(2.1) of the Act is replaced by the following: Owner-occupant of a residential unit (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and C. 18 Sales Ta (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit. Relevant transfer date Rebate in Nova Scotia (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a residential complex that is supplied to the particular individual referred to in that subsection is the earlier of the day on which ownership of the complex is transferred to the particular individual and the day on which possession of the complex is transferred to the particular individual under the agreement for the supply. (2.1) If (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, for use, in Nova Scotia, as the primary place of residence of the particular individual or of a relation of the particular individual, or the particular individual would be so entitled if the total consideration (within the meaning of paragraph (2)(c)) in respect of the complex were less than $450,000, (b) it is the case that (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or 2006-2007 Taxe de ve (ii) on the last day on which any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and (c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation, the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and the amount determined by the formula A×B where A is 18.75%; and B is the total of all tax under subsection 165(2) payable in respect of the supply of the complex to the particular individual and in respect of any other supply to the particular individual of an interest in the complex. (2) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a residential complex if (a) the agreement of purchase and sale of the complex is entered into by the individual after 2001; (b) the complex is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 254(1) of the Act), after C. 18 Sales Ta (i) 2002, in the case of a residential condominium unit, and (ii) June 2002, in any other case; or (c) under the agreement of purchase and sale of the complex entered into by the individual, ownership and possession of the complex are transferred to the individual after (i) 2002, in the case of a residential condominium unit, and (ii) June 2002, in any other case. 2000, c. 30, s. 72(3); 2006, c. 4, s. 25(3) 38. (1) Subsection 254.1(2.1) of the Act is replaced by the following: Owner-occupant of a residential unit (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit. Relevant transfer date Rebate in Nova Scotia (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a complex supplied to the particular individual referred to in that subsection is the day on which possession of the complex is transferred to the particular individual. (2.1) If (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual 2006-2007 Taxe de ve under the agreement for the supply of the complex to the particular individual, were less than $481,500, (b) it is the case that (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and (c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation, the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration (within the meaning of paragraph (2)(h)) in respect of the complex. (2) Paragraph 254.1(2.1)(a) of the Act, as amended by subsection (1), is replaced by the following: C. 18 Sales Ta (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement for the supply of the complex to the particular individual, were less than $477,000, (3) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a building or part of a building in which a residential unit forming part of a residential complex is situated if (a) the agreement under which the building or part is supplied by way of sale to the individual is entered into by the individual after 2001; (b) the complex is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 254.1(1) of the Act), after (i) 2002, in the case of a residential condominium unit, and (ii) June 2002, in any other case; or (c) under the agreement under which the building or part is supplied by way of sale to the individual, possession of the complex is transferred to the individual after (i) 2002, in the case of a residential condominium unit, and (ii) June 2002, in any other case. (4) Subsection (2) applies in respect of a supply, to a particular individual referred to in section 254.1 of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if possession of the unit is given to the particular individual on or after July 1, 2006, unless the builder is deemed under section 191 of the Act to have paid tax under 2006-2007 Taxe de ve subsection 165(1) of the Act calculated at the rate of 7% in respect of the supply referred to in paragraph 254.1(2)(d) of the Act. 2000, c. 30, s. 73(1); 2006, c. 4, s. 26(3) 39. (1) Subsection 255(2.1) of the Act is replaced by the following: Owner-occupant of a residential unit (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit. Relevant transfer date Rebate in Nova Scotia (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a share of the capital stock of a cooperative housing corporation that is supplied to the particular individual referred to in that subsection is the day on which ownership of the share is transferred to the particular individual. (2.1) If (a) a particular individual has acquired a share of the capital stock of a cooperative housing corporation for the purpose of using a residential unit in a residential complex of the corporation that is situated in Nova Scotia as the primary place of residence of the particular individual or of a relation of the particular individual, (b) the corporation has paid tax under subsection 165(2) in respect of a taxable supply to the corporation of the complex, (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to C. 18 Sales Ta the particular individual of the share or an interest in the corporation, complex or unit, were less than $481,500, (d) it is the case that (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and (e) if, at the time referred to in paragraph (2)(c), the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (d)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation, the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration. (2) Paragraph 255(2.1)(c) of the Act, as enacted by subsection (1), is replaced by the following: 2006-2007 Taxe de ve (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $477,000, (3) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a share of the capital stock of a cooperative housing corporation if (a) the agreement of purchase and sale of the share is entered into by the individual after 2001; (b) the residential unit in respect of which the individual acquires the share at the time referred to in paragraph 255(2)(c) of the Act is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 255(1) of the Act), after June 2002; or (c) ownership of the share is transferred to the individual after June 2002. (4) Subsection (2) applies for the purpose of determining a rebate in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the individual is acquiring the share for the purpose of using a residential complex as the primary place of residence of the individual, or a relation (as defined in subsection 255(1) of the Act) of the individual, and the rebate application is filed on or after July 1, 2006, unless the corporation paid tax under subsection 165(1) of the Act in respect of the supply of the complex to the corporation calculated at the rate of 7%. 1997, c. 10, s. 224(4) 40. (1) Subsection 256(2.1) of the Act is replaced by the following: C. 18 Owner-occupant of a residential unit (2.02) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and Sales Ta (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit. Relevant completion date Rebate in Nova Scotia (2.03) For the purpose of subsection (2.1), the relevant completion date of a residential complex that the particular individual referred to in that subsection has constructed or has engaged another person to construct is the day on which that construction is substantially completed. (2.1) If (a) a particular individual is entitled to a rebate under subsection (2) in respect of a residential complex that the particular individual has constructed or has engaged another person to construct and that is for use, in Nova Scotia, as the primary place of residence of the particular individual or a relation of the particular individual, or the particular individual would be so entitled if the fair market value of the complex, at the time the construction of the complex is substantially completed, were less than $450,000, (b) the particular individual has paid all of the tax payable by the particular individual in respect of the supply by way of sale to the particular individual of the land that forms part of the complex or an interest in the land or in respect of the supply to, importation by, or bringing into Nova Scotia by, the particular individual of any improvement to the land or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.07 is referred to in 2006-2007 Taxe de ve this subsection as the “total tax in respect of the province paid by the particular individual”), (c) it is the case that (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant completion date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant completion date and that ends on the relevant completion date, or (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and (d) if the particular individual has constructed or has engaged another person to construct the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (c)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation, the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual. 1990, c. 45, s. 12(1); 1997, c. 10, ss. 66(3) and 224(5) (2) Subsection 256(3) of the Act is replaced by the following: C. 18 Application for rebate (3) A rebate under this section in respect of a residential complex shall not be paid to an individual unless the individual files an application for the rebate on or before Sales Ta (a) the day (in this subsection referred to as the “due date”) that is two years after the earliest of (i) the day that is two years after the day on which the complex is first occupied as described in subparagraph (2)(d)(i), (ii) the day on which ownership is transferred as described in subparagraph (2)(d)(ii), and (iii) the day on which construction or substantial renovation of the complex is substantially completed; or (b) any day after the due date that the Minister may allow. (3) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a residential complex that the individual has constructed or engaged another person to construct if (a) the building permit for that construction is issued after 2001; or (b) the complex is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 256(1) of the Act), after June 2002. (4) Subsection (2) is deemed to have come into force on December 20, 2002. 1997, c. 10, s. 226(1) 41. (1) Paragraph 257(1)(b) of the Act is replaced by the following: (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular supply. (2) Subsection (1) is deemed to have come into force on June 28, 1999. 2000, c. 30, s. 75(1) 42. (1) Subsection 258.1(1) of the Act is replaced by the following: 2006-2007 Taxe de ve Definition of “qualifying motor vehicle” 258.1 (1) In this section, “qualifying motor vehicle” means a motor vehicle that is equipped with a device designed exclusively to assist in placing a wheelchair in the vehicle without having to collapse the wheelchair or with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability. 2000, c. 30, s. 75(1) (2) Subsection 258.1(6) of the Act is amended by adding the word “and” at the end of paragraph (c) and by repealing paragraph (d). (3) Subsections (1) and (2) are deemed to have come into force on April 4, 1998. Despite subsections 258.1(2) and (6) of the Act, a person has until the day that is four years after November 27, 2006 to file an application for a rebate under those subsections with the Minister of National Revenue in respect of tax that became payable before November 27, 2006 in respect of the supply, importation or bringing into a participating province of a qualifying motor vehicle other than (a) a qualifying motor vehicle that was never used as capital property or held otherwise than for supply in the ordinary course of business at any time after it was equipped with a device described in subsection 258.1(1) of the Act and before it was acquired by the person; and (b) in the case of subsection 258.1(6) of the Act, a qualifying motor vehicle that was not used by any person after it was acquired by the recipient and before it was imported or brought into the participating province except to the extent reasonably necessary to deliver the vehicle to a supplier of a service performed on it or to import or bring it into the participating province, as the case may be. (4) The application referred to in subsection (3) may, despite subsection 262(2) of the Act, be the second application of a person for the rebate if, before November 27, 2006, the C. 18 Sales Ta person had made an application for the rebate and that application has been assessed. 2000, c. 30, s. 75(1) 43. (1) Paragraph 258.2(b) of the Act is replaced by the following: (b) the person imports the vehicle or brings it into the participating province, as the case may be, after the modification service is performed, and (2) Subsection (1) is deemed to have come into force on April 4, 1998 and, despite section 258.2 of the Act, a person has until the day that is four years after November 27, 2006 to file an application for a rebate under that section with the Minister of National Revenue in respect of a vehicle that had a modification service performed on it and that has been imported or brought into a participating province before November 27, 2006 other than a vehicle that, after the modification service was performed and before the importation or bringing into the participating province, was not used by any person, except to the extent reasonably necessary to deliver the vehicle to a supplier of a service that is to be performed on it or to import it or bring it into the participating province, as the case may be. (3) The application referred to in subsection (2) may, despite subsection 262(2) of the Act, be the second application of a person for the rebate if, before November 27, 2006, the person had made an application for the rebate and that application has been assessed. 1997, c. 10, s. 227(1) 44. (1) Subparagraph (a)(i) of the definition “non-creditable tax charged” in subsection 259(1) of the Act is replaced by the following: (i) tax in respect of the supply, importation or bringing into a participating province of the property or service that became payable by the person during the period or that was paid by the person during the period without having become payable (other than tax deemed to have been paid by the 2006-2007 Taxe de ve person or in respect of which the person is, by reason only of section 226, not entitled to claim an input tax credit), 2005, c. 30, s. 22(6) (2) The portion of subsection 259(4.2) of the French version of the Act before paragraph (a) is replaced by the following: Exclusions (4.2) Lorsqu’il s’agit de calculer le montant remboursable à une personne, pour le calcul du montant prévu aux alinéas (3)a) ou (4)a), ou à l’alinéa (4.1)a) si le pourcentage provincial établi pour le calcul est de 0% et que la personne est un organisme déterminé de services publics visé soit à l’un des alinéas a) à e) de la définition de « organisme déterminé de services publics » au paragraphe (1), soit aux alinéas f) ou g) de cette définition si la personne réside à Terre-Neuve-et-Labrador, la taxe prévue au paragraphe 165(2), aux articles 212.1 ou 218.1 ou à la section IV.1 qui est payable par la personne, ou réputée avoir été payée ou perçue par elle, n’est pas incluse : (3) Subsection (1) is deemed to have come into force on May 1, 2002. (4) Subsection (2) applies for the purpose of determining a rebate under section 259 of the Act of a person for claim periods ending on or after January 1, 2005, except that the rebate shall be determined as if that subsection had not come into force for the purpose of determining a rebate of a person for the claim period that includes that day in respect of (a) an amount of tax that became payable by the person before that day; (b) an amount that is deemed to have been paid or collected by the person before that day; or (c) an amount that is required to be added in determining the person’s net tax (i) as a result of a branch or division of the person becoming a small supplier division before that day, or (ii) as a result of the person ceasing before that day to be a registrant. C. 18 Sales Ta 45. (1) The Act is amended by adding the following after section 263.1: Rebates in respect of beverages in returnable containers 263.2 For the purposes of sections 252, 260 and 261.1, if a person is the recipient of a supply of a beverage in a filled and sealed returnable container or of a used and empty returnable container (or the material resulting from its compaction) and the supplier is deemed under paragraph 226(2)(b) or (4)(b) to have made to the person a taxable supply of a service in respect of the returnable container, tax paid in respect of the supply of the service is deemed to have been paid in respect of the supply of the beverage, empty returnable container or material, as the case may be. (2) Subsection (1) is deemed to have come into force on May 1, 2002. 46. (1) Subsection 281.1 of the Act, as enacted by subsection 149(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiving or cancelling interest 281.1 (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel interest payable by the person under section 280 on an amount that is required to be remitted or paid by the person under this Part in respect of the reporting period. (2) The portion of subsection 281.1(2) of the Act before paragraph (a), as enacted by subsection 149(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiving or cancelling penalties (2) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel all or any portion of any (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on April 1, 2007. 2006-2007 Taxe de ve 2000, c. 30, s. 85 47. The portion of subsection 289(1) of the Act before paragraph (a) is replaced by the following: Requirement to provide documents or information 289. (1) Despite any other provision of this Part, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or this Part, including the collection of any amount payable or remittable under this Part by any person, by notice served personally or by registered or certified mail, require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with 1993, c. 27, s. 128(3) 48. (1) Subparagraph 295(5)(d)(v) of the Act is replaced by the following: (v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis, (2) Subsection 295(5) of the Act is amended by striking out the word “or” at the end of paragraph (k), by adding the word “or” at the end of paragraph (l) and by adding the following after paragraph (l): (m) provide confidential information to any person solely for the purpose of enabling the Chief Statistician, within the meaning assigned by section 2 of the Statistics Act, to provide to a statistical agency of a province data concerning business activities carried on in the province, if the information is used by the statistical agency of the province solely for research and analysis and that statistical agency is authorized under the law of the province to collect the same or similar information on its own behalf in respect of such activities. (3) Subsection 295(5) of the Act is amended by striking out the word “or” at the end of paragraph (l), by adding the word C. 18 Sales Ta “or” at the end of paragraph (m), as enacted by subsection (2), and by adding the following after paragraph (m): (n) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a listed international agreement. (4) Subsection (2) applies after this Act receives royal assent to information relating to fiscal years that end after 2003 and, for the purpose of subsection 17(2) of the Statistics Act, if the information was collected before this Act receives royal assent, the information is deemed to have been collected at the time at which it is provided to a statistical agency of a province pursuant to paragraph 295(5)(m) of the Act, as enacted by subsection (2). 2000, c. 30, s. 90 49. Subsection 303(4) of the French version of the Act is replaced by the following: Demande non conforme (4) Le ministre peut recevoir la demande qui n’a pas été livrée ou postée à la personne ou à l’endroit indiqué au paragraphe (3). 1990, c. 45, s. 12(1); 1999, c. 17, par. 155(h) 50. Subsection 308(2) of the Act is repealed. 2001, c. 17, s. 262 51. Paragraph 328(2)(a) of the Act is replaced by the following: (a) to whom confidential information has been provided for a particular purpose under paragraph 295(5)(b), (c), (g), (k), (l), (m) or (n), or 2001, c. 15, s. 23(1) 52. (1) The portion of the definition “practitioner” in section 1 of Part II of Schedule V to Act before paragraph (b) is replaced by the following: “practitioner”, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speechlanguage pathology, occupational therapy, psychological or dietetic services, means a person who 2006-2007 Taxe de ve (a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology or dietetics, as the case may be, 1993, c. 27, s. 153(1) (2) Subparagraph (c)(i) of the definition “établissement de santé” in section 1 of Part II of Schedule V to the French version of the Act is replaced by the following: (i) des soins infirmiers et personnels sous la direction ou la surveillance d’un personnel de soins infirmiers et médicaux compétent ou d’autres soins personnels et de surveillance (sauf les services ménagers propres à la tenue de l’intérieur domestique) selon les besoins des résidents, (3) Paragraph (c) of the definition “établissement de santé” in section 1 of Part II of Schedule V to the French version of the Act is amended by adding the following after subparagraph (ii): (iii) les repas et le logement. (4) Subsection (1) applies to any supply made after 2000. (5) Subsections (2) and (3) are deemed to have come into force on December 17, 1990. 2001, c. 15, s. 24(1) 53. (1) Paragraph 7(h) of Part II of Schedule V to the Act is replaced by the following: (h) speech-language pathology services; (2) Subsection (1) applies to supplies made after 2000. 54. (1) Part II of Schedule V to the Act is amended by adding the following after section 7.1: 7.2 A supply of a service rendered in the practise of the profession of social work where (a) the service is rendered to an individual within a professional-client relationship between the supplier and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural or mental disorder or disability of the individual or of another person to whom the C. 18 Sales Ta individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and (b) either (i) if the supplier is required to be licensed or otherwise certified to practise the profession of social work in the province in which the service is supplied, the supplier is so licensed or certified, or (ii) if the supplier is not required to be licensed or otherwise certified to practise that profession in that province, the supplier has the qualifications equivalent to those necessary to be licensed or certified to practise that profession in a province in which such a requirement exists. (2) Subsection (1) applies to any supply made after October 3, 2003. (3) If a person is, or would be in the absence of subsection 261(3) of the Act, entitled to a rebate under section 261 of the Act in respect of an amount that was paid before the day on which this Act receives royal assent (in this subsection and subsection (4) referred to as the “assent date”) as tax in respect of a supply described in section 7.2 of Part II of Schedule V to the Act, as enacted by subsection (1), but not described in any other section of any Part of that Schedule, the person may, despite subsection 261(3) of the Act, file an application for the rebate before the later of the day that is one year after the assent date and the day that is two years after the day on which the amount was paid. (4) If a person is, or would be in the absence of the two-year period referred to in subsection 232(1) of the Act, entitled to adjust, refund or credit, in accordance with section 232 of the Act, an amount that was charged or collected before the assent date as or on account of tax in respect of a supply described in section 7.2 of Part II of Schedule V to the Act, as enacted by subsection (1), but 2006-2007 Taxe de ve not described in any other section of any Part of that Schedule, the person may, despite the two-year period referred to in subsection 232(1) of the Act, adjust the amount under paragraph 232(1)(a) of the Act, or refund or credit the amount under paragraph 232(1)(b) of the Act, before the later of the day that is one year after the assent date and the day that is two years after the day on which the amount was charged or collected. 1997, c. 10, s. 102(1) 55. (1) Paragraph 1(d) of Part V.1 of Schedule V to the Act is replaced by the following: (d) tangible personal property (other than property supplied by way of lease, licence or similar arrangement in conjunction with an exempt supply by the charity of real property by way of lease, licence or similar arrangement) that was acquired, manufactured or produced by the charity for the purpose of making a supply of the property and was neither donated to the charity nor used by another person before its acquisition by the charity, or any service supplied by the charity in respect of such property, other than such property or such a service supplied by the charity under a contract for catering; (2) Subsection (1) applies to any supply for which consideration becomes due after 1996 or is paid after 1996 without having become due, but does not apply to a supply in respect of which tax under Part IX of the Act was charged or collected on or before October 3, 2003. (3) For the purposes of Part IX of the Act, if, because of the application of paragraph 1(d) of Part V.1 of Schedule V to the Act, as enacted by subsection (1), a charity is considered to have ceased at any time to use capital property of the charity primarily in commercial activities of the charity and is deemed under subsection 200(2) of the Act to have made, immediately before that time, a supply of the property and to have collected tax in respect of that supply, and that C. 18 Sales Ta cessation would not be considered to have occurred at that time if subsection (1) were not enacted, (a) the charity is not required to include that tax in determining its net tax for any reporting period; and (b) for the purpose of determining the basic tax content (as defined in subsection 123(1) of the Act) of the property, the charity is deemed to have been entitled to recover an amount equal to that tax as a rebate of tax included in the description of A in that definition. 1990, c. 45, s. 18; 1993, c. 27, s. 172(1); 1997, c. 10, s. 114(1) 56. (1) Paragraphs 20(a) to (e) of Part VI of Schedule V to the Act are replaced by the following: (a) a supply of (i) a service of registering, or processing an application to register, any property in a property registration system, (ii) a service of filing, or processing an application to file, any document in a property registration system, or (iii) a right to have access to, or to use, a property registration system to register, or make application to register, any property in it or to file, or make application to file, any document in it, (b) a supply of (i) a service of filing, or processing an application to file, a document in the registration system of a court or in accordance with legislative requirements, (ii) a right to have access to, or to use, the registration system of a court, or any other registration system in which documents are filed in accordance with legislative requirements, for the purpose of filing a document in that registration system, 2006-2007 Taxe de ve (iii) a service of issuing or providing, or processing an application to issue or provide, a document from the registration system of a court or other similar tribunal, or (iv) a right to have access to, or to use, the registration system of a court or other similar tribunal to issue or obtain a document from that registration system, (c) a supply (other than of a right or service supplied in respect of the importation of alcoholic beverages) of (i) a licence, permit, quota or similar right, (ii) a service of processing an application for a licence, permit, quota or similar right, or (iii) a right to have access to, or to use, a filing or registration system to make application for a licence, permit, quota or similar right, (d) a supply of any document, a service of providing information, or a right to have access to, or to use, a filing or registration system to obtain any document or information that indicates (i) the vital statistics, residency, citizenship or right to vote of any person, (ii) the registration of any person for any service provided by a government or municipality or by a board, commission or other body established by a government or municipality, or (iii) any other status of any person, (e) a supply of any document, a service of providing information, or a right to have access to, or to use, a filing or registration system to obtain any document or information, in respect of (i) the title to, or any right or estate in, property, (ii) any encumbrance or assessment in respect of property, or (iii) the zoning of real property, C. 18 1990, c. 45, s. 18 (2) Paragraph 20(l) of Part VI of Schedule V to the Act is replaced by the following: Sales Ta (l) a supply of a right to enter, to have access to or to use property of the government, municipality or other body other than a right, referred to in any of paragraphs (a) to (e), to have access to, or to use, a filing or registration system. (3) Subsections (1) and (2) are deemed to have come into force on December 17, 1990, except that (a) paragraphs 20(a), (b), (d) and (e) of Part VI of Schedule V to the Act, as enacted by subsection (1), and paragraph 20(l) of that Part, as enacted by subsection (2), do not apply to any supply in respect of which the supplier, on or before November 27, 2006, charged or collected an amount as or on account of tax under Part IX of the Act; (b) paragraph 20(c) of Part VI of Schedule V to the Act, as enacted by subsection (1), does not apply to any supply (i) that is a supply of a right to have access to, or to use, a filing or registration system in respect of which the supplier, on or before November 27, 2006, charged or collected an amount as or on account of tax under Part IX of the Act, or (ii) that is a supply of a service, made on or before November 27, 2006, 2006-2007 Taxe de ve (A) in respect of which the supplier did not, on or before that day, charge or collect any amount as or on account of tax under Part IX of the Act, or (B) in respect of which the supplier charged or collected, on or before that day, an amount as or on account of tax and in respect of which supply an amount (other than an amount deemed under paragraph 296(5)(a) of the Act to have been claimed as a result of an assessment made after that day) was claimed (I) in an application under subsection 261(1) of the Act received by the Minister of National Revenue on or before that day, or (II) as a deduction, in respect of any adjustment, refund or credit under subsection 232(1) of the Act, in a return under Division V of Part IX of the Act received by the Minister before that day; and (c) in relation to supplies for which consideration becomes due before 1997, or is paid before 1997 without having become due, paragraph 20(e) of Part VI of Schedule V to the Act, as enacted by subsection (1), shall be read as follows: (e) a supply of any document, a service of providing information, or a right to have access to, or to use, a filing or registration system to obtain any document or information, in respect of (i) the title to, or any right or estate in, property, or (ii) any encumbrance in respect of property, C. 18 1990, c. 45, s. 18 57. (1) The portion of section 2 of Part I of Schedule VI to the Act before paragraph (a) is replaced by the following: Sales Ta 2. A supply of any of the following drugs or substances: (2) Section 2 of Part I of Schedule VI to the Act is amended by adding the following after paragraph (d): (d.1) a drug included in Schedule 1 to the Benzodiazepines and Other Targeted Substances Regulations, 1990, c. 45, s. 18 (3) Section 2 of Part I of Schedule VI to the Act is amended by striking out the word “and” at the end of paragraph (e), by adding the word “and” at the end of paragraph (f) and by replacing the portion after paragraph (f) with the following: (g) plasma expander, but not including a supply of a drug or substance when it is labelled or supplied for agricultural or veterinary use only. (4) Subsections (1) and (3) apply to supply made after April 12, 2001 and to supply for which consideration becomes after that day or is paid after that without having become due. any any due day (5) Subsection (2) is deemed to have come into force on September 1, 2000 except that it does not apply (a) to any supply made after August 2000 and on or before November 27, 2006 if, on or before that day, the supplier collected any amount as or on account of tax under Part IX of the Act in respect of the supply; (b) for the purposes of section 6 of Schedule VII to the Act, to drugs imported after August 2000 and on or before November 27, 2006 if, on or before that day, any amount was paid as or on account of tax under Part IX of the Act in respect of the importation; or 2006-2007 Taxe de ve (c) for the purposes of section 15 of Part I of Schedule X to the Act, to drugs brought into a participating province after August 2000 and on or before November 27, 2006 if, on or before that day, any amount was paid as or on account of tax under Part IX of the Act in respect of the bringing into the province. 58. (1) Part IV of Schedule VI to the Act is amended by adding the following after section 3: 3.1 A supply of grain or seeds, or of mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis, if (a) in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food; (b) in the case of viable grain or seeds, they are included in the definition “industrial hemp” in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act; and (c) the supply is made in accordance with that Act, if applicable. (2) Subsection (1) applies to any supply for which consideration becomes due after April 12, 2001 or is paid after that day without having become due. 1994, c. 9, s. 34(1) 59. (1) Section 6 of Schedule VII to the Act is replaced by the following: 6. Goods the supply of which is included in any of Parts I to IV and VIII of Schedule VI, other than section 3.1 of Part IV of that Schedule. (2) Subsection (1) applies to goods imported after April 12, 2001. 2001, c. 15, s. 32(1) 60. (1) Section 8.3 of Schedule VII to the Act is repealed. (2) Subsection (1) is deemed to have come into force on November 17, 2005. C. 18 Sales Ta 61. (1) Schedule VII to the Act is amended by adding the following after section 11: 12. Imported grain or seeds, or imported mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis, if (a) in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food; (b) in the case of viable grain or seeds, they are included in the definition “industrial hemp” in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act; and (c) the importation is in accordance with that Act, if applicable. (2) Subsection (1) applies to grain or seeds and mature stalks imported after April 12, 2001. 1997, c. 10, s. 254 62. (1) Section 22 of Part I of Schedule X to the Act is replaced by the following: 22. Property (other than a specified motor vehicle) that is brought into a participating province by a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant. (2) Subsection (1) applies to property brought into a participating province after April 2002. Replacement of “(GST)” with “(GST/HST)” 63. (1) The Act is amended by replacing “(GST)” with “(GST/HST)” in the following provisions: (a) paragraph 195.2(1)(b); (b) subsection 195.2(2); 2006-2007 Taxe de ve (c) paragraph 220.07(2)(a); (d) subsection 225.1(10); (e) subsection 227(4.2); (f) subsection 227(6); and (g) section 1 of Part II of Schedule X. Replacement of “(GST)” with “(GST/HST)” (2) The English version of the Act is amended by replacing “(GST)” with “(GST/ HST)” in the following provisions: (a) paragraph 352(9)(c); (b) subparagraph 352(10)(c)(i); and (c) subparagraph 354(2)(c)(i). Replacement of “(TPS)” with “(TPS/TVH)” (3) The French version of the Act is amended by replacing “(TPS)” with the term “(TPS/TVH)” in the following provisions: (a) paragraph 352(9)(a); (b) subparagraph 352(10)(a)(i); and (c) subparagraph 354(2)(a)(i). (4) Subsections (1) to (3) are deemed to have come into force on April 1, 1997. AMENDMENTS IN RESPECT OF EXCISE TAXES 64. Subsection 2(1) of the Excise Tax Act is amended by adding the following in alphabetical order: “listed international agreement” « accord international désigné » “listed international agreement” means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time. 65. (1) Subsection 88(1) of the Act, as enacted by subsection 134(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiver or cancellation of interest or penalty 88. (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest C. 18 Sales Ta or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period. (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007. R.S., c. 7 (2nd Supp.), s. 46(1) 66. Subsection 99(1) of the Act is replaced by the following: Provision of documents may be required 99. (1) Subject to section 102.1, the Minister may, for any purpose related to the administration or enforcement of this Act, or of a listed international agreement, by a notice served personally or by registered or certified mail, require that any person provide any book, record, writing or other document or any information or further information within any reasonable time that may be stipulated in the notice. PART 2 AMENDMENTS IN RESPECT OF EXCISE DUTY ON ALCOHOL AND TOBACCO PRODUCTS 2002, c. 22 EXCISE ACT, 2001 67. (1) The definition “tobacco dealer” in section 2 of the Excise Act, 2001 is replaced by the following: “tobacco dealer” « commerçant de tabac » “tobacco dealer” means a person, other than a tobacco licensee, who purchases for resale, sells or offers to sell raw leaf tobacco on which duty is not imposed under this Act. (2) Paragraphs (f) and (g) of the definition “spirits” in section 2 of the Act are replaced by the following: (f) fusel oil or other refuse produced as a result of the distillation process; (g) an approved formulation; or (h) any product containing or manufactured from a material or substance referred to in paragraphs (b) to (g) that is not consumable as a beverage. 2006-2007 Taxe de ve (3) The portion of the definition “marquer” in section 2 of the French version of the Act before paragraph (a) is replaced by the following: « marquer » “mark” « marquer » Apposer, en la forme et selon les modalités prévues par règlement, une mention portant : (4) Section 2 of the Act is amended by adding the following in alphabetical order: “listed international agreement” « accord international désigné » “restricted formulation” « préparation assujettie à des restrictions » “listed international agreement” means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time. “restricted formulation” means an approved formulation on which the Minister has imposed the condition or restriction under section 143 that the formulation can only be used by a licensed user or be exported. (5) Subsections (1) to (3) and the definition “restricted formulation” in section 2 of the Act, as enacted by subsection (4), are deemed to have come into force on April 1, 2003. 68. (1) Paragraph 14(1)(c) of the Act is replaced by the following: (c) a user’s licence, authorizing the person to use bulk alcohol, non-duty-paid packaged alcohol or a restricted formulation; (2) Subsection 14(3) of the Act is replaced by the following: Production excluded (3) A person is not entitled to a licence under paragraph (1)(a) by reason only of (a) having been deemed to have produced spirits under section 131.2; or (b) having produced spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol. C. 18 Issuance of a wine licence (4) Subject to the regulations, on application by a person who is the holder of a spirits licence and a user’s licence, the Minister may issue to the person a wine licence, authorizing the person to fortify wine. Sales Ta (3) Subsections (1) and (2) are deemed to have come into force on April 1, 2003. 69. (1) Section 17 of the Act is replaced by the following: Alcohol registration 17. Subject to the regulations, on application, the Minister may issue an alcohol registration to a person authorizing the person to store or transport bulk alcohol, specially denatured alcohol or a restricted formulation. (2) Subsection (1) is deemed to have come into force on April 1, 2003. 70. (1) Subsection 19(1) of the Act is replaced by the following: Issuance of licence 19. (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person who is not a retailer of alcohol authorizing the person to possess in their excise warehouse non-duty-paid packaged alcohol or manufactured tobacco or cigars that are not stamped. (2) Subsection (1) is deemed to have come into force on April 1, 2003. 71. (1) Subsection 20(1) of the Act is replaced by the following: Issuance of licence 20. (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative manufactured tobacco or cigars manufactured by the licensee. (2) Subsection (1) is deemed to have come into force on April 1, 2003. 72. (1) Section 21 of the Act is replaced by the following: 2006-2007 Return of tobacco Taxe de ve 21. (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars manufactured by the tobacco licensee, (a) the person shall immediately return the tobacco or cigars of that licensee that are stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and (b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized. Cancellation (2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars. (2) Subsection (1) is deemed to have come into force on April 1, 2003. 73. (1) The Act is amended by adding the following after section 24: Licences and registrations not statutory instruments 24.1 For greater certainty, a licence or registration issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act. (2) Subsection (1) is deemed to have come into force on April 1, 2003. 74. (1) Subsection 25(3) of the Act is replaced by the following: Exception — manufacturing for personal use (3) An individual who is not a tobacco licensee may manufacture manufactured tobacco or cigars (a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the tobacco or cigars are for their personal use; or (b) from raw leaf tobacco grown on land on which the individual resides, if (i) the tobacco or cigars are for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and C. 18 Sales Ta (ii) the quantity of tobacco or cigars manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 75. (1) Paragraph 28(2)(a) of the Act is replaced by the following: (a) raw leaf tobacco for (i) return to a licensed tobacco dealer or a tobacco grower, (ii) delivery to another tobacco licensee, or (iii) export; or (2) Subsection (1) is deemed to have come into force on July 1, 2003. 76. (1) The Act is amended by adding the following after section 28: Unlawful removal from premises of tobacco dealer 28.1 (1) No person shall remove raw leaf tobacco from the premises of a licensed tobacco dealer. Exception (2) Subsection (1) does not apply to a licensed tobacco dealer who removes from their premises raw leaf tobacco for (a) return to a tobacco grower; (b) delivery to a tobacco licensee or to another licensed tobacco dealer; or (c) export. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 77. (1) Paragraphs 30(2)(a) to (c) of the Act are replaced by the following: (a) a person who is a tobacco licensee or a licensed tobacco dealer; or (b) the possession of raw leaf tobacco (i) in a customs bonded warehouse or a sufferance warehouse by the licensee of that warehouse, 2006-2007 Taxe de ve (ii) by a body established under provincial law for the marketing of raw leaf tobacco grown in the province, or (iii) by a prescribed person who is transporting the tobacco under prescribed circumstances and conditions. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 78. (1) Subparagraph 31(a)(ii) of the Act is replaced by the following: (ii) for delivery to or return from a tobacco licensee or a licensed tobacco dealer, or (2) Subsection (1) is deemed to have come into force on July 1, 2003. 79. (1) Paragraph 32(2)(a) of the Act is replaced by the following: (a) a tobacco licensee at the place of manufacture of the product; (a.1) in the case of manufactured tobacco or cigars, a tobacco licensee who manufactured the tobacco or cigars, at their excise warehouse; (2) Paragraphs 32(2)(c) to (e) of the Act are replaced by the following: (c) in the case of manufactured tobacco or cigars, a special excise warehouse licensee at the special excise warehouse of the licensee, if the licensee is permitted under this Act to distribute the tobacco or cigars; (d) in the case of an imported tobacco product, a prescribed person who is transporting the product under prescribed circumstances and conditions; (d.1) in the case of manufactured tobacco or cigars manufactured in Canada, a prescribed person who is transporting the tobacco or cigars under prescribed circumstances and conditions; (e) in the case of an imported tobacco product, a sufferance warehouse licensee in their sufferance warehouse; C. 18 Sales Ta (e.1) in the case of imported manufactured tobacco or cigars, a customs bonded warehouse licensee in their customs bonded warehouse; (3) Paragraph 32(2)(h) of the Act is replaced by the following: (h) in the case of manufactured tobacco or cigars, an accredited representative for their personal or official use; (4) Paragraph 32(2)(k) of the Act is replaced by the following: (k) in the case of manufactured tobacco or cigars, an individual who has manufactured the tobacco or cigars in accordance with subsection 25(3). (5) Paragraph 32(3)(a) of the Act is replaced by the following: (a) a tobacco licensee sells or offers to sell manufactured tobacco or cigars that are exported by the licensee in accordance with this Act; (6) Subparagraphs 32(3)(b)(i) and (ii) of the Act are replaced by the following: (i) manufactured tobacco or cigars to a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars, (ii) manufactured tobacco or cigars to an accredited representative for their personal or official use, (7) Paragraph 32(3)(c) of the Act is replaced by the following: (c) a special excise warehouse licensee sells or offers to sell manufactured tobacco or cigars to an accredited representative for their personal or official use, if the licensee is permitted under this Act to distribute the tobacco or cigars; (8) Subparagraphs 32(3)(d)(i) and (ii) of the Act are replaced by the following: (i) imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act, 2006-2007 Taxe de ve (ii) imported manufactured tobacco or cigars to an accredited representative for their personal or official use or to a duty free shop, or (9) Paragraph 32(3)(g) of the Act is replaced by the following: (g) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act; (10) The portion of paragraph 32(3)(h) of the Act before subparagraph (i) is replaced by the following: (h) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars (11) Subsections (1) to (10) are deemed to have come into force on July 1, 2003. 80. (1) Paragraph 35(2)(b) of the Act is replaced by the following: (b) manufactured tobacco or cigars that a tobacco licensee is authorized to import under subsection 41(2); (2) Paragraph 35(2)(d) of the Act is replaced by the following: (d) raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer. (3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003. 81. (1) Section 37 of the Act is replaced by the following: Unstamped products to be warehoused 37. If manufactured tobacco or cigars manufactured in Canada are not stamped by a tobacco licensee, the tobacco licensee shall immediately enter the tobacco or cigars into the licensee’s excise warehouse. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 82. (1) Subsections 38(1) to (4) of the Act are replaced by the following: C. 18 No warehousing of tobacco without markings 38. (1) Subject to subsections (3) and (4), no person shall enter into an excise warehouse a container of manufactured tobacco or cigars unless the container has printed on it or affixed to it tobacco markings and other prescribed information. No delivery of imported tobacco without markings (2) Subject to subsection (3), no person shall deliver a container of imported manufactured tobacco or cigars that does not have printed on it or affixed to it tobacco markings and other prescribed information to Sales Ta (a) a duty free shop for sale or offer for sale in accordance with the Customs Act; (b) an accredited representative; or (c) a customs bonded warehouse. Exception for prescribed manufactured tobacco (3) A container of manufactured tobacco does not require tobacco markings to be printed on or affixed to it if the brand of the tobacco is not commonly sold in Canada and is prescribed. Exception for prescribed cigarettes (4) A container of cigarettes does not require tobacco markings to be printed on or affixed to it if the cigarettes are of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada and (a) cigarettes of the particular type or formulation exported under that brand are prescribed cigarettes; and (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 83. (1) Subsection 41(2) of the Act is replaced by the following: Importation for re-working or destruction (2) The Minister may authorize a tobacco licensee to import any manufactured tobacco or cigars manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1). 2006-2007 Taxe de ve (2) Subsection (1) is deemed to have come into force on July 1, 2003. 84. (1) Section 46 of the Act is replaced by the following: Duty relieved — raw leaf tobacco 46. The duty imposed under section 42 is relieved on raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 85. (1) Subsection 50(3) of the Act is replaced by the following: Prohibition on removal (3) No person shall remove from an excise warehouse or a special excise warehouse manufactured tobacco or cigars manufactured in Canada. (2) Subsection 50(10) of the Act is replaced by the following: Removal from warehouse for re-working or destruction (10) Subject to the regulations, manufactured tobacco or cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 41. (3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003. 86. (1) Subsection 51(1) of the Act is replaced by the following: Removal of imported tobacco 51. (1) No person shall remove imported manufactured tobacco or cigars from an excise warehouse. (2) The portion of subsection 51(2) of the Act before paragraph (a) is replaced by the following: Exception (2) Subject to the regulations, imported manufactured tobacco or cigars may be removed from an excise warehouse (3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003. 87. (1) Section 52 of the Act is replaced by the following: Restriction — special excise warehouse 52. No special excise warehouse licensee shall store manufactured tobacco or cigars that are manufactured in Canada in their special C. 18 Sales Ta excise warehouse for any purpose other than the sale and distribution of the tobacco or cigars to an accredited representative for the personal or official use of the representative. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 88. (1) The Act is amended by adding the following after section 59: Importations involving a provincial authority 59.1 If alcohol is imported under circumstances in which subsection 3(1) of the Importation of Intoxicating Liquors Act applies, the alcohol is deemed, for the purposes of this Act and subsection 21.2(3) of the Customs Tariff, to have been imported by the person who would have been the importer in the absence of that subsection 3(1) and not by Her Majesty in right of a province or a liquor authority. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 89. (1) Subsection 60(2) of the Act is replaced by the following: Exception (2) Subsection (1) does not apply to (a) the packaging of spirits from a marked special container by a purchaser at a bottleyour-own premises; or (b) the production of spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 90. (1) Section 61 of the Act is amended by striking out the word “or” at the end of paragraph (a), by adding the word “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) possesses the still or equipment solely for the purpose of producing spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 2006-2007 Taxe de ve 91. (1) The Act is amended by adding the following after section 62: Prohibition — fortification of wine 62.1 Except as permitted under section 130, no person shall use bulk spirits to fortify bulk wine. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 92. (1) The portion of section 66 of the Act before paragraph (a) is replaced by the following: Application — in-transit and transhipped alcohol 66. Sections 67 to 72, 75, 76, 80, 85, 88, 97 to 100 and 102 do not apply to imported alcohol or specially denatured alcohol that is, in accordance with the Customs Act, the Customs Tariff and the regulations made under those Acts, (2) Subsection (1) is deemed to have come into force on July 1, 2003. 93. (1) Subsection 70(2) of the Act is amended by adding the following after paragraph (c): (c.1) in the case of bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol, to a person who, having produced those spirits, possesses them during the period of analysis; (2) Subsection (1) is deemed to have come into force on July 1, 2003. 94. (1) Paragraph 73(d) of the Act is replaced by the following: (d) use it in accordance with section 130, 131 or 131.1; (2) Subsection (1) is deemed to have come into force on July 1, 2003. 95. (1) Sections 74 and 75 of the Act are replaced by the following: Disposal of bulk spirits 74. A person who possesses bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol shall, imme106 C. 18 Sales Ta diately after the analysis is complete, destroy or dispose of the spirits in a manner approved by the Minister. Importation — bulk spirits 75. (1) No person shall import bulk spirits other than a spirits licensee, a licensed user or, if the spirits are in a special container, an excise warehouse licensee in accordance with section 80. Importation — bulk wine (2) No person shall import bulk wine other than a wine licensee, a licensed user or, if the wine is in a special container, an excise warehouse licensee in accordance with section 85. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 96. (1) Subsection 88(2) of the Act is amended by striking out the word “and” at the end of paragraph (g) and by adding the following after paragraph (h): (i) that is wine referred to in paragraph 135(2)(b) may be possessed by any person; and (j) that is wine produced or packaged by a wine licensee and removed from the excise warehouse of the licensee and that is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine may be possessed by the licensee or those individuals at those premises. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 97. (1) The Act is amended by adding the following after section 93: RESTRICTED FORMULATIONS Restriction — licensed user 93.1 A licensed user shall not use or dispose of a restricted formulation other than in accordance with the conditions or restrictions imposed by the Minister under section 143. 2006-2007 Prohibition — possession of restricted formulation Taxe de ve 93.2 No person other than a licensed user or an alcohol registrant shall possess a restricted formulation. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 98. (1) The Act is amended by adding the following after section 117: Responsibility for wine ceases 117.1 If bulk spirits are produced from bulk wine, the wine licensee or licensed user who was responsible for the wine before it was used to produce the spirits ceases to be responsible for the wine at the time the spirits are produced. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 99. (1) Section 131 of the Act is replaced by the following: Blending wine with spirits 131. A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits. Producing spirits from wine 131.1 A licensed user who is also a spirits licensee may use bulk wine to produce spirits. Deemed production of spirits — blending wine 131.2 (1) If wine is blended with bulk spirits and the resulting product is spirits, (a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved; and (b) the resulting spirits are deemed to be produced at the time of the blending. Deemed production of spirits — other blending (2) If a material or substance, other than spirits or wine, containing absolute ethyl alcohol is blended with bulk spirits or wine and the resulting product is spirits, (a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the material or substance is relieved; and (b) the resulting spirits are deemed to be produced at the time of the blending. C. 18 Sales Ta (2) Subsection (1) is deemed to have come into force on July 1, 2003. 100. (1) Paragraph 135(2)(b) of the Act is replaced by the following: (b) produced by a wine licensee and packaged by or on behalf of the licensee during a fiscal month in a particular fiscal year of the licensee if (i) the total sales by the licensee of products that are subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the fiscal year ending immediately before the particular fiscal year did not exceed $50,000, and (ii) the total sales by the licensee of those products during the particular fiscal year before the fiscal month did not exceed $50,000. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 101. (1) Section 136 of the Act is replaced by the following: Duty payable on removal from warehouse 136. (1) Subject to subsection (2), if packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee. Removals for consignment sales (2) If a small wine licensee removes packaged wine that the licensee produced or packaged from the excise warehouse of the licensee for delivery and sale on a consignment basis at a retail store operated on behalf of two or more small wine licensees and that is not located on the premises of a wine licensee, the wine is deemed to be removed from the warehouse for entry into the duty-paid market at the time the wine is sold. 2006-2007 Meaning of “small wine licensee” Taxe de ve (3) In this section, a wine licensee is a small wine licensee during a fiscal year of the licensee if, in the previous fiscal year, the total amount of wine sold by the licensee did not exceed 60,000 litres. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 102. (1) Subsection 138(1) of the Act is amended by adding the following after paragraph (a): (a.1) in the case of packaged wine described by subsection 136(2), as being in a store described by that subsection; (2) Subsection (1) is deemed to have come into force on July 1, 2003. 103. (1) Subsection 145(2) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in the case of wine, taken for use by an excise warehouse licensee if that licensee is also the wine licensee who produced or packaged the wine and the wine is provided free of charge to individuals for consumption as a sample at the premises where the licensee produces or packages wine. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 104. (1) Section 147 of the Act is amended by adding the following after subsection (3): Duty not payable — wine samples (4) Duty is not payable on non-duty-paid packaged wine, other than wine contained in a marked special container, that is removed from the excise warehouse of the wine licensee who produced or packaged the wine if the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine. (2) Subsection (1) is deemed to have come into force on July 1, 2003. C. 18 Sales Ta 105. (1) Paragraph 151(2)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (vii) and by replacing subparagraph (viii) with the following: (viii) in the case of packaged wine described in subsection 136(2), delivery to a store described in that subsection, or (ix) export; (2) Subsection 151(2) of the Act is amended by adding the following after paragraph (a): (a.1) non-duty-paid packaged wine, other than wine in a marked special container, if the warehouse is the excise warehouse of the wine licensee who produced or packaged the wine and the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine; (3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003. 106. (1) The Act is amended by adding the following after section 153: Return of nonduty-paid wine 153.1 If non-duty-paid packaged wine that has been removed from an excise warehouse under subparagraph 151(2)(a)(viii) is returned to that warehouse under prescribed conditions, the wine may, if it had not been entered into the duty-paid market, be entered into the warehouse as non-duty-paid packaged wine. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 107. (1) Subsection 160(1) of the Act is renumbered as section 160 and subsection 160(2) of the Act is repealed. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 108. (1) Section 173 of the Act, as enacted by subsection 116(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiving or reducing interest 173. The Minister may, on or before the particular day that is 10 calendar years after the day an amount was required to be paid by a 2006-2007 Taxe de ve person under this Act, or on application by the person on or before the particular day, waive or reduce any interest on the amount payable by the person under section 170. (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007. 109. Paragraph 177(a) of the Act is replaced by the following: (a) the amount has previously been refunded, remitted or paid to that person, or applied against an amount owed by the person to Her Majesty, under this or any other Act of Parliament; or 110. (1) The Act is amended by adding the following after section 181: Destroyed imported manufactured tobacco 181.1 The Minister may refund to a duty free shop licensee the special duty under section 53 that was paid on imported manufactured tobacco that is destroyed by the licensee in accordance with the Customs Act if the licensee applies for the refund within two years after the tobacco is destroyed. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 111. (1) Subsection 188(6) of the Act, as enacted by subsection 117(5) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Limitation on refunding overpayments (6) An overpayment of duty payable for a fiscal month of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with (a) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act; or (b) the Minister of Public Safety and Emergency Preparedness under the Customs Act. C. 18 Sales Ta (2) Subparagraph 188(7)(b)(ii) of the Act, as enacted by subsection 117(6) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: (ii) the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with (A) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act, or (B) the Minister of Public Safety and Emergency Preparedness under the Customs Act. (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on April 1, 2007. 112. (1) Subsection 189(4) of the Act, as enacted by subsection 118(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Restriction (4) A refund shall not be paid until the person has filed with the Minister or the Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act. (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007. 2006-2007 Taxe de ve 113. (1) Subsection 196(4) of the French version of the Act is replaced by the following: Demande non conforme (4) Le ministre peut recevoir la demande qui n’a pas été faite en conformité avec le paragraphe (3). (2) Subparagraph 196(7)(b)(i) of the Act is replaced by the following: (i) within the time limited under this Act for objecting, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to object to the assessment, 114. Subparagraph 197(6)(b)(i) of the Act is replaced by the following: (i) within the time limited under this Act for objecting, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to object to the assessment, 115. Subparagraph 199(5)(b)(i) of the Act is replaced by the following: (i) within the time limited under section 198 for appealing, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to appeal, 116. The portion of subsection 208(1) of the Act before paragraph (a) is replaced by the following: Requirement to provide records or information 208. (1) Despite any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or of this Act, by notice served personally or by registered or certified mail, require any person to provide the Minister, within any reasonable time that is stipulated in the notice, with 117. (1) Subparagraph 211(6)(e)(v) of the Act is replaced by the following: C. 18 Sales Ta (v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a person, solely for the purpose of enabling the department or agency to obtain statistical data for research and analysis, (2) Subsection 211(6) of the Act is amended by striking out the word “or” at the end of paragraph (j) and by adding the following after paragraph (k): (l) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a listed international agreement; or (m) provide confidential information to any person solely for the purpose of enabling the Chief Statistician, within the meaning assigned by section 2 of the Statistics Act, to provide to a statistical agency of a province data concerning business activities carried on in the province, if the information is used by the statistical agency solely for research and analysis and the statistical agency is authorized under the law of the province to collect the same or similar information on its own behalf in respect of such activities. 118. (1) The portion of subsection 217(1) of the Act before paragraph (a) is replaced by the following: Punishment for certain alcohol offences 217. (1) Every person who contravenes section 63 or 73, subsection 78(1) or 83(1) or section 90, 93.1, 93.2 or 96 is guilty of an offence and liable (2) Subparagraph 217(2)(a)(iii) of the Act is replaced by the following: (iii) $10 multiplied by the number of litres of specially denatured alcohol or a restricted formulation to which the offence relates, and (3) Subparagraph 217(3)(a)(iii) of the Act is replaced by the following: 2006-2007 Taxe de ve (iii) $20 multiplied by the number of litres of specially denatured alcohol or a restricted formulation to which the offence relates, and 119. The portion of subsection 218(1) of the Act before paragraph (a) is replaced by the following: Punishment for more serious alcohol offences 218. (1) Every person who contravenes any of sections 67, 69 to 72, 75 or 88 or subsection 101(1) or (2) is guilty of an offence and liable 120. Paragraph 221(2)(a) of the Act is replaced by the following: (a) to whom confidential information has been provided for a purpose pursuant to paragraph 211(6)(b), (d), (h), (l) or (m), or 121. Section 234 of the Act is replaced by the following: Contravention of section 38, 40, 41, 49, 61, 62.1, 99, 149 or 151 234. Every person who contravenes section 38, 40, 41, 49, 61, 62.1, 99, 149 or 151 is liable to a penalty of not more than $25,000. 122. Subsection 236(1) of the Act is replaced by the following: Diversion of black stock tobacco 236. (1) Every tobacco licensee or customs bonded warehouse licensee is liable to a penalty if manufactured tobacco on which duty was imposed under section 42 at a rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1 is (a) in the case of a tobacco licensee, (i) delivered by the licensee other than to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, or (ii) exported by the licensee other than for delivery to a foreign duty free shop or as foreign ships’ stores; or (b) in the case of a customs bonded warehouse licensee, delivered by the licensee other than to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations. C. 18 Sales Ta 123. Subsection 237(1) of the Act is replaced by the following: Diversion of non-duty-paid alcohol 237. (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose. 2006, c. 4, s. 47(1) 124. Section 243 of the Act is replaced by the following: Contravention of section 73, 74 or 90 243. (1) Unless section 239, 241, 242 or 243.1 or subsection (2) applies, every person who contravenes section 73, 74 or 90 is liable to a penalty equal to (a) if the contravention relates to spirits, 200% of the duty that was imposed on the spirits; or (b) if the contravention relates to wine, $1.24 per litre of that wine. Contravention of section 73 or 90 by licensed user (2) Every licensed user who exports, gives possession of or takes for use alcohol in contravention of section 73 or 90 is liable to a penalty equal to (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or (b) if the contravention relates to wine, $0.62 per litre of that wine. Contravention of section 76, 89 or 91 243.1 Every person who contravenes section 76, 89 or 91 is liable to a penalty equal to (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or (b) if the contravention relates to wine, $0.62 per litre of that wine. 125. The Act is amended by adding the following after section 247: 2006-2007 Unauthorized possession, etc., of restricted formulation Taxe de ve 247.1 Every person who contravenes section 93.1 or 93.2 is liable to a penalty of $10 per litre of restricted formulation to which the contravention relates. 126. (1) Section 255.1 of the Act, as enacted by subsection 121(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiving or reducing failure to file penalty 255.1 The Minister may, on or before the day that is 10 calendar years after the end of a fiscal month of a person, or on application by the person on or before that day, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the fiscal month. (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007. 127. (1) Section 264 of the Act is replaced by the following: Certain things not to be returned 264. Despite this Act, any alcohol, specially denatured alcohol, restricted formulation, raw leaf tobacco or tobacco product that is seized under section 260 must not be returned to the person from whom it was seized or any other person unless it was seized in error. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 128. (1) Subsection 266(2) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) a seized restricted formulation only to a licensed user. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 129. The definition “common-law partner” in subsection 297(6) of the Act is replaced by the following: 118 “common-law partner” « conjoint de fait » C. 18 Sales Ta “common-law partner” of an individual at any time means a person who is the common-law partner of the individual at that time for the purposes of the Income Tax Act. 130. (1) Paragraph 304(1)(n) of the Act is replaced by the following: (n) respecting the sale under section 266 of alcohol, tobacco products, raw leaf tobacco, specially denatured alcohol or restricted formulations seized under section 260; (2) Section 304 of the Act is amended by adding the following after subsection (2): Incorporation by reference (3) For greater certainty, a regulation made under this Act may incorporate by reference any material, regardless of its source and either as it exists on a particular date or as amended from time to time. (3) Subsection (2) is deemed to have come into force on July 1, 2003. 131. (1) The Act is amended by adding the following after section 315: Transitional application of Distillery Regulations 315.1 (1) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 7, 8, 9, 12 and 15 of the Distillery Regulations, C.R.C., c. 569, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require. Transitional application of Distillery Departmental Regulations (2) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 13 and 14 of the Distillery Departmental Regulations, C.R.C., c. 570, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 2006-2007 Taxe de ve 132. (1) The Act is amended by adding the following after section 316: Refund for reworked or destroyed tobacco product 316.1 If duty imposed under the Excise Act and tax imposed under section 23 of the Excise Tax Act on a tobacco product manufactured in Canada had become payable before the implementation date and a tobacco licensee under this Act who was, before that day, licensed under those Acts to manufacture the product re-works or destroys, on or after that day, the product in a manner authorized by the Minister, section 181 applies as though that duty and tax were duty paid under this Act. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 133. (1) The Act is amended by adding the following after section 317: Imported tobacco delivered to duty free shop before implementation date 317.1 If, on the implementation date, imported manufactured tobacco on which tax under section 23.12 of the Excise Tax Act was paid is possessed by a duty free shop licensee and no application for a refund of the tax has been made under that Act, this Act applies in respect of the tobacco as though the tax were special duty under section 53. (2) Subsection (1) is deemed to have come into force on July 1, 2003. R.S., c. A-1 ACCESS TO INFORMATION ACT 134. (1) Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Excise Act, 2001 Loi de 2001 sur l’accise and a corresponding reference to “section 211”. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 120 R.S., c. 1 (2nd Supp.) C. 18 Sales Ta CUSTOMS ACT 135. (1) Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order: “licensed user” « utilisateur agréé » “restricted formulation” « préparation assujettie à des restrictions » “licensed user” has the same meaning as in section 2 of the Excise Act, 2001; “restricted formulation” has the same meaning as in section 2 of the Excise Act, 2001; (2) Subsection (1) is deemed to have come into force on July 1, 2003. 2001, c. 25, s. 58(1) 136. (1) Subsection 97.25(3) of the Act is replaced by the following: Sale of detained goods (3) Subject to the regulations, the Minister, on giving 30 days’ notice in writing to the debtor at the debtor’s latest known address, may direct that any good imported or reported for exportation by or on behalf of the debtor, or any conveyance, that has been detained be sold (a) if the good is spirits or specially denatured alcohol, to a spirits licensee; (b) if the good is wine, to a wine licensee; (c) if the good is raw leaf tobacco or a tobacco product, to a tobacco licensee; (d) if the good is a restricted formulation, to a licensed user; or (e) in any other case, by public auction or public tender or by the Minister of Public Works and Government Services under the Surplus Crown Assets Act. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 2002, c. 22, s. 338 137. (1) Subsection 117(2) of the Act is replaced by the following: 2006-2007 No return of certain goods Taxe de ve (2) Despite subsection (1), if spirits, wine, specially denatured alcohol, restricted formulations, raw leaf tobacco or tobacco products are seized under this Act, they shall not be returned to the person from whom they were seized or any other person unless they were seized in error. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 138. (1) Subsection 119.1(1.1) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) a restricted formulation may only be to a licensed user. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 2002, c. 22, s. 340 139. (1) The portion of subsection 142(1) of the Act before paragraph (a) is replaced by the following: Disposal of things abandoned or forfeit 142. (1) Unless the thing is spirits, specially denatured alcohol, a restricted formulation, wine, raw leaf tobacco or a tobacco product, anything that has been abandoned to Her Majesty in right of Canada under this Act and anything the forfeiture of which is final under this Act shall (2) Subsection (1) is deemed to have come into force on July 1, 2003. 2002, c. 22, s. 341 140. (1) Section 142.1 of the Act is replaced by the following: Dealing with abandoned or forfeited alcohol, etc. 142.1 (1) If spirits, specially denatured alcohol, a restricted formulation, wine, raw leaf tobacco or a tobacco product is abandoned or finally forfeited under this Act, the Minister may sell, destroy or otherwise deal with it. Restriction (2) Subject to the regulations, the sale under subsection (1) of (a) spirits or specially denatured alcohol may only be to a spirits licensee; (b) wine may only be to a wine licensee; C. 18 Sales Ta (c) raw leaf tobacco or a tobacco product may only be to a tobacco licensee; and (d) a restricted formulation may only be to a licensed user. (2) Subsection (1) is deemed to have come into force on July 1, 2003. 141. Subsection 164(1) of the Act is amended by adding the following after paragraph (h.1): (h.2) respecting the sale of alcohol, a tobacco product, raw leaf tobacco, specially denatured alcohol or a restricted formulation detained, seized, abandoned or forfeited under this Act; 1997, c. 36 CUSTOMS TARIFF 2002, c. 22, s. 346 142. (1) The definitions ““beer” or “malt liquor”” and “wine” in section 21 of the Customs Tariff are replaced by the following: “beer” or “malt liquor” « bière » ou « liqueur de malt » “beer” or “malt liquor” means beer or malt liquor, within the meaning of section 4 of the Excise Act, of tariff item No. 2202.90.10 or heading 22.03, that is classified under that heading or tariff item or with the container in which it is imported. “wine” « vin » “wine” means wine, as defined in section 2 of the Excise Act, 2001, of heading 22.04, 22.05 or 22.06, other than of tariff item No. 2204.10.90, 2204.21.32, 2204.21.49, 2204.29.32, 2204.29.49, 2204.30.90, 2205.10.30, 2205.90.30, 2206.00.19, 2206.00.22, 2206.00.39, 2206.00.49, 2206.00.72 or 2206.00.93, that is classified under that heading or with the container in which it is imported. (2) Section 21 of the French version of the Act is amended by adding the following in alphabetical order: « utilisateur agréé » “licensed user” « utilisateur agréé » S’entend au sens de l’article 2 de la Loi de 2001 sur l’accise. (3) Subsection (2) is deemed to have come into force on July 1, 2003. 2006-2007 Taxe de ve R.S., c. E-15 EXCISE TAX ACT 1990, c. 45, s. 12(1) 143. (1) Paragraph 215(1)(b) of the Excise Tax Act is replaced by the following: (b) the amount of all duties and taxes, if any, payable on the goods under the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act, this Act (other than this Part) or any other law relating to customs. (2) Subsection (1) is deemed to have come into force on July 1, 2003. PART 3 2002, c. 9, s. 5 AMENDMENTS TO THE AIR TRAVELLERS SECURITY CHARGE ACT 144. (1) The definition “listed airport” in section 2 of the Air Travellers Security Charge Act is replaced by the following: “listed airport” « aéroport désigné » “listed airport” means an airport listed in the schedule. (2) Section 2 of the Act is amended by adding the following in alphabetical order: “registered charity” « organisme de bienfaisance enregistré » “registered charity” has the same meaning as in subsection 248(1) of the Income Tax Act. (3) Subsection (2) is deemed to have come into force on April 1, 2002. 145. (1) Section 11 of the Act is amended by adding the following after subsection (1): Exceptions (1.1) No charge is payable in respect of an air transportation service that is acquired (a) by a person for the purpose of re-selling the service, if the person sells the service to another person before April 1, 2002 and makes full and final payment to the air carrier in respect of the service before May 1, 2002; or C. 18 Sales Ta (b) by a registered charity from an air carrier for no consideration, if the service is donated by the charity to an individual for no consideration and in pursuit of its charitable purposes. (2) Subsection (1) is deemed to have come into force on April 1, 2002. 146. (1) Subsection 30(1) of the Act, as enacted by subsection 102(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiving or reducing interest 30. (1) The Minister may, on or before the day that is 10 calendar years after the end of a fiscal month of a person, or on application by the person on or before that day, waive or reduce any interest payable by the person under this Act on an amount that is required to be paid by the person under this Act in respect of the fiscal month. (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007. 147. (1) Subsection 44(3) of the Act is replaced by the following: How application made (3) An application must be made by delivering or mailing, to the Chief of Appeals in a Tax Services Office of the Agency, the application accompanied by a copy of the notice of objection. (2) Subsection 44(4) of the French version of the Act is replaced by the following: Demande non conforme (4) Le ministre peut recevoir la demande qui n’a pas été faite en conformité avec le paragraphe (3). (3) Subparagraph 44(7)(b)(i) of the Act is replaced by the following: (i) within the time limited under this Act for objecting, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to object to the assessment, 2006-2007 Taxe de ve 148. Subparagraph 45(6)(b)(i) of the Act is replaced by the following: (i) within the time limited under this Act for objecting, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to object to the assessment, 149. Subparagraph 47(5)(b)(i) of the Act is replaced by the following: (i) within the time limited under section 46 for appealing, the person (A) was unable to act or to give a mandate to act in their name, or (B) had a bona fide intention to appeal, 150. (1) Subsection 52(6) of the Act is replaced by the following: Appeal (6) If a question set out in an application is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination. (2) Subsection (1) is deemed to have come into force on July 2, 2003. 151. (1) Subsection 55(1) of the Act, as enacted by subsection 107(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following: Waiving or cancelling penalties 55. (1) The Minister may, on or before the day that is 10 calendar years after the end of a fiscal month of a person, or on application by the person on or before that day, waive or cancel any penalty payable by the person under section 53 in respect of the fiscal month. C. 18 Sales Ta (2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007. 152. Section 84 of the Act is amended by adding the following after subsection (1): Amendments to the schedule (1.1) The Governor in Council may, by regulation, amend the schedule by adding, deleting or varying the reference to an airport. 153. The schedule to the Act is amended by replacing the reference “(Section 2)” after the heading “SCHEDULE” with the reference “(Section 2 and subsection 84(1.1))”. 154. (1) The schedule to the Act is amended by striking out the following under the heading “Quebec”: La Grande-3 La Grande-4 (2) Subsection (1) is deemed to have come into force on December 23, 2004. 155. The schedule to the Act is amended by adding the following in alphabetical order under the heading “Quebec”: Rivière-Rouge (Mont Tremblant International) 156. The schedule to the Act is amended by adding the following in alphabetical order under the heading “Alberta”: Red Deer Regional PART 4 COORDINATING AMENDMENT Bill C-28 157. (1) If Bill C-28, introduced in the 1st session of the 39th Parliament and entitled the Budget Implementation Act, 2006, No. 2, receives royal assent and section 57 of that Act comes into force, then paragraph 88(2)(i) of the Excise Act, 2001, as enacted by subsection 96(1) of this Act, is replaced by the following: (i) that is wine referred to in paragraph 135(2)(a) or (b) may be possessed by any person; and 2006-2007 Taxe de ve (2) Subsection (1) applies to wine packaged after June 2006. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 26 An Act to amend the Geneva Conventions Act, An Act to incorporate the Canadian Red Cross Society and the Trade-marks Act ASSENTED TO 22nd JUNE, 2007 BILL C-61 SUMMARY This enactment amends the Geneva Conventions Act, An Act to incorporate the Canadian Red Cross Society and the Trade-marks Act to implement the Protocol set out in the schedule. It also amends An Act to incorporate the Canadian Red Cross Society to provide the same protection for the Red Crescent emblem as that Act provides for the Red Cross emblem, and to add a short title to that Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 26 An Act to amend the Geneva Conventions Act, An Act to incorporate the Canadian Red Cross Society and the Trade-marks Act [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. G-3 GENEVA CONVENTIONS ACT 1. Section 2 of the Geneva Conventions Act is amended by adding the following after subsection (2): Protocol approved (3) The Protocol additional to the Geneva Conventions of 12 August 1949, and relating to the adoption of an additional distinctive emblem, which Protocol is set out in Schedule VII, is approved. 2. Section 3 of the Act is amended by adding the following after subsection (1): Third Protocol emblem (1.1) For the purposes of subsection (1), the distinctive emblems mentioned in Article 85, paragraph 3(f) of Schedule V are deemed to include the third Protocol emblem, referred to in Article 2, paragraph 2 of Schedule VII. 3. The Act is amended by adding, after Schedule VI, the Schedule VII set out in the schedule to this Act. 2 1909, c. 68 C. 26 Geneva Conventions, Canadian Re AN ACT TO INCORPORATE THE CANADIAN RED CROSS SOCIETY 1922, c. 13, s. 2 4. Section 4 of An Act to incorporate the Canadian Red Cross Society is replaced by the following: Fraudulent representation 4. (1) No person shall fraudulently represent himself or herself to be a member or representative of, or agent for, the Society for the purposes of soliciting, collecting or receiving money or material. Unlawful use of name, emblem, badge, etc. (2) No person shall wear, use or display for the purposes of his or her trade or business, for the purpose of inducing the belief that he or she is a member or representative of, or agent for, the Society or for any other purposes whatsoever, without the Society’s written authorization, any of the following: (a) the heraldic emblem of the Red Cross on a white ground, or the words “Red Cross” or “Geneva Cross”; (b) the emblem of the Red Crescent on a white ground, referred to in Article 38 of Schedule I to the Geneva Conventions Act, or the words “Red Crescent”; (c) the third Protocol emblem — commonly known as the “Red Crystal” — referred to in Article 2, paragraph 2 of Schedule VII to the Geneva Conventions Act and composed of a red frame in the shape of a square on edge on a white ground, or the words “Red Crystal”; or (d) any other word, mark, device or thing likely to be mistaken for anything mentioned in paragraphs (a) to (c). Penalty (3) Every person who contravenes subsection (1) or (2) is guilty of an offence, and is liable on summary conviction to a fine of not less than $100 but not more than $500, or imprisonment for a term not exceeding one year, or both, for each offence, and any goods, wares or merchandise on which, or in connection with which, any of the emblems or words mentioned in paragraphs (2)(a) to (c) or any coloured imitation of them were used are liable to forfeiture to Her Majesty in right of Canada. The proceeds of the fine so collected shall be paid to the Society. 2006-2007 Exception Conventions de Genève, Canadian Red (4) No person contravenes subsection (2) by wearing, using or displaying the emblem or words referred to in paragraph (2)(b) or (c), or any other word, mark, device or thing likely to be mistaken for them, if the person has done so lawfully since before the coming into force of this subsection. 5. The Act is amended by adding the following after section 9: Short title R.S., c. T-13 10. This Act may be cited as the Canadian Red Cross Society Act. TRADE-MARKS ACT 6. Subsection 9(1) of the Trade-marks Act is amended by adding the following after paragraph (g): (g.1) the third Protocol emblem — commonly known as the “Red Crystal” — referred to in Article 2, paragraph 2 of Schedule VII to the Geneva Conventions Act and composed of a red frame in the shape of a square on edge on a white ground, adopted for the same purpose as specified in paragraph (f); COMING INTO FORCE Order in council 7. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. C. 26 Geneva Conventions, Canadian Red Cro SCHEDULE (Section 3) SCHEDULE VII (Subsection 2(3)) PROTOCOL III PROTOCOL ADDITIONAL TO THE GENEVA CONVENTIONS OF 12 AUGUST 1949, AND RELATING TO THE ADOPTION OF AN ADDITIONAL DISTINCTIVE EMBLEM (PROTOCOL III) PREAMBLE The High Contracting Parties, Reaffirming the provisions of the Geneva Conventions of 12 August 1949 (in particular Articles 26, 38, 42 and 44 of the First Geneva Convention) and, where applicable, their Additional Protocols of 8 June 1977 (in particular Articles 18 and 38 of Additional Protocol I and Article 12 of Additional Protocol II), concerning the use of distinctive emblems, Desiring to supplement the aforementioned provisions so as to enhance their protective value and universal character, Noting that this Protocol is without prejudice to the recognized right of High Contracting Parties to continue to use the emblems they are using in conformity with their obligations under the Geneva Conventions and, where applicable, the Protocols additional thereto, Recalling that the obligation to respect persons and objects protected by the Geneva Conventions and the Protocols additional thereto derives from their protected status under international law and is not dependent on use of the distinctive emblems, signs or signals, Stressing that the distinctive emblems are not intended to have any religious, ethnic, racial, regional or political significance, Emphasizing the importance of ensuring full respect for the obligations relating to the distinctive emblems recognized in the Geneva Conventions, and, where applicable, the Protocols additional thereto, Recalling that Article 44 of the First Geneva Convention makes the distinction between the protective use and the indicative use of the distinctive emblems, Recalling further that National Societies undertaking activities on the territory of another State must ensure that the emblems they intend to use within the framework of such activities may be used in the country where the activity takes place and in the country or countries of transit, Recognizing the difficulties that certain States and National Societies may have with the use of the existing distinctive emblems, Noting the determination of the International Committee of the Red Cross, the International Federation of Red Cross and Red Crescent Societies and the International Red Cross and Red Crescent Movement to retain their current names and emblems, Have agreed on the following: 2006-2007 Article 1 — Conventions de Genève, Canadian Red C Ann Respect for and scope of application of this Protocol 1. The High Contracting Parties undertake to respect and to ensure respect for this Protocol in all circumstances. 2. This Protocol reaffirms and supplements the provisions of the four Geneva Conventions of 12 August 1949 (“the Geneva Conventions”) and, where applicable, of their two Additional Protocols of 8 June 1977 (“the 1977 Additional Protocols”) relating to the distinctive emblems, namely the red cross, the red crescent and the red lion and sun, and shall apply in the same situations as those referred to in these provisions. Article 2 — Distinctive emblems 1. This Protocol recognizes an additional distinctive emblem in addition to, and for the same purposes as, the distinctive emblems of the Geneva Conventions. The distinctive emblems shall enjoy equal status. 2. This additional distinctive emblem, composed of a red frame in the shape of a square on edge on a white ground, shall conform to the illustration in the Annex to this Protocol. This distinctive emblem is referred to in this Protocol as the “third Protocol emblem”. 3. The conditions for use of and respect for the third Protocol emblem are identical to those for the distinctive emblems established by the Geneva Conventions and, where applicable, the 1977 Additional Protocols. 4. The medical services and religious personnel of armed forces of High Contracting Parties may, without prejudice to their current emblems, make temporary use of any distinctive emblem referred to in paragraph 1 of this Article where this may enhance protection. Article 3 — Indicative use of the third Protocol emblem 1. National Societies of those High Contracting Parties which decide to use the third Protocol emblem may, in using the emblem in conformity with relevant national legislation, choose to incorporate within it, for indicative purposes: (a) a distinctive emblem recognized by the Geneva Conventions or a combination of these emblems; or (b) another emblem which has been in effective use by a High Contracting Party and was the subject of a communication to the other High Contracting Parties and the International Committee of the Red Cross through the depositary prior to the adoption of this Protocol. Incorporation shall conform to the illustration in the Annex to this Protocol. 2. A National Society which chooses to incorporate within the third Protocol emblem another emblem in accordance with paragraph 1 above, may, in conformity with national legislation, use the designation of that emblem and display it within its national territory. C. 26 Geneva Conventions, Canadian Red Cro 3. National Societies may, in accordance with national legislation and in exceptional circumstances and to facilitate their work, make temporary use of the distinctive emblem referred to in Article 2 of this Protocol. 4. This Article does not affect the legal status of the distinctive emblems recognized in the Geneva Conventions and in this Protocol, nor does it affect the legal status of any particular emblem when incorporated for indicative purposes in accordance with paragraph 1 of this Article. Article 4 — International Committee of the Red Cross and International Federation of Red Cross and Red Crescent Societies The International Committee of the Red Cross and the International Federation of Red Cross and Red Crescent Societies, and their duly authorized personnel, may use, in exceptional circumstances and to facilitate their work, the distinctive emblem referred to in Article 2 of this Protocol. Article 5 — Missions under United Nations auspices The medical services and religious personnel participating in operations under the auspices of the United Nations may, with the agreement of participating States, use one of the distinctive emblems mentioned in Articles 1 and 2. Article 6 — Prevention and repression of misuse 1. The provisions of the Geneva Conventions and, where applicable, the 1977 Additional Protocols, governing prevention and repression of misuse of the distinctive emblems shall apply equally to the third Protocol emblem. In particular, the High Contracting Parties shall take measures necessary for the prevention and repression, at all times, of any misuse of the distinctive emblems mentioned in Articles 1 and 2 and their designations, including the perfidious use and the use of any sign or designation constituting an imitation thereof. 2. Notwithstanding paragraph 1 above, High Contracting Parties may permit prior users of the third Protocol emblem, or of any sign constituting an imitation thereof, to continue such use, provided that the said use shall not be such as would appear, in time of armed conflict, to confer the protection of the Geneva Conventions and, where applicable, the 1977 Additional Protocols, and provided that the rights to such use were acquired before the adoption of this Protocol. Article 7 — Dissemination The High Contracting Parties undertake, in time of peace as in time of armed conflict, to disseminate this Protocol as widely as possible in their respective countries and, in particular, to include the study thereof in their programmes of military instruction and to encourage the study thereof by the civilian population, so that this instrument may become known to the armed forces and to the civilian population. Conventions de Genève, Canadian Red C Ann 2006-2007 Article 8 — Signature This Protocol shall be open for signature by the Parties to the Geneva Conventions on the day of its adoption and will remain open for a period of twelve months. Article 9 — Ratification This Protocol shall be ratified as soon as possible. The instruments of ratification shall be deposited with the Swiss Federal Council, depositary of the Geneva Conventions and the 1977 Additional Protocols. Article 10 — Accession This Protocol shall be open for accession by any Party to the Geneva Conventions which has not signed it. The instruments of accession shall be deposited with the depositary. Article 11 — Entry into force 1. This Protocol shall enter into force six months after two instruments of ratification or accession have been deposited. 2. For each Party to the Geneva Conventions thereafter ratifying or acceding to this Protocol, it shall enter into force six months after the deposit by such Party of its instrument of ratification or accession. Article 12 — Treaty relations upon entry into force of this Protocol 1. When the Parties to the Geneva Conventions are also Parties to this Protocol, the Conventions shall apply as supplemented by this Protocol. 2. When one of the Parties to the conflict is not bound by this Protocol, the Parties to the Protocol shall remain bound by it in their mutual relations. They shall furthermore be bound by this Protocol in relation to each of the Parties which are not bound by it, if the latter accepts and applies the provisions thereof. Article 13 — Amendment 1. Any High Contracting Party may propose amendments to this Protocol. The text of any proposed amendment shall be communicated to the depositary, which shall decide, after consultation with all the High Contracting Parties, the International Committee of the Red Cross and the International Federation of Red Cross and Red Crescent Societies, whether a conference should be convened to consider the proposed amendment. 2. The depositary shall invite to that conference all the High Contracting Parties as well as the Parties to the Geneva Conventions, whether or not they are signatories of this Protocol. Article 14 — Denunciation 1. In case a High Contracting Party should denounce this Protocol, the denunciation shall only take effect one year after receipt of the instrument of denunciation. If, however, on the expiry of that year the denouncing Party is engaged in a situation of armed conflict or occupation, the denunciation shall not take effect before the end of the armed conflict or occupation. C. 26 Geneva Conventions, Canadian Red Cro 2. The denunciation shall be notified in writing to the depositary, which shall transmit it to all the High Contracting Parties. 3. The denunciation shall have effect only in respect of the denouncing Party. 4. Any denunciation under paragraph 1 shall not affect the obligations already incurred, by reason of the armed conflict or occupation, under this Protocol by such denouncing Party in respect of any act committed before this denunciation becomes effective. Article 15 — Notifications The depositary shall inform the High Contracting Parties as well as the Parties to the Geneva Conventions, whether or not they are signatories of this Protocol, of: (a) signatures affixed to this Protocol and the deposit of instruments of ratification and accession under Articles 8, 9 and 10; (b) the date of entry into force of this Protocol under Article 11 within ten days of said entry into force; (c) communications received under Article 13; (d) denunciations under Article 14. Article 16 — Registration 1. After its entry into force, this Protocol shall be transmitted by the depositary to the Secretariat of the United Nations for registration and publication, in accordance with Article 102 of the Charter of the United Nations. 2. The depositary shall also inform the Secretariat of the United Nations of all ratifications, accessions and denunciations received by it with respect to this Protocol. Article 17 — Authentic texts The original of this Protocol, of which the Arabic, Chinese, English, French, Russian and Spanish texts are equally authentic, shall be deposited with the depositary, which shall transmit certified true copies thereof to all the Parties to the Geneva Conventions. ANNEX THIRD PROTOCOL EMBLEM (Article 2, paragraph 2, and Article 3, paragraph 1 of the Protocol) Article 1 — Distinctive emblem 2006-2007 Conventions de Genève, Canadian Red C Ann Article 2 — Indicative use of the third Protocol emblem Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Thirty-ninth Parliament, 56 Elizabeth II, 2007 STATUTES OF CANADA 2007 CHAPTER 32 An Act to amend the Canada-United States Tax Convention Act, 1984 ASSENTED TO 14th DECEMBER, 2007 BILL S-2 SUMMARY This enactment amends the Canada-United States Tax Convention Act, 1984 to implement a Protocol that amends the Convention between Canada and the United States of America with Respect to Taxes on Income and on Capital and adds Annexes A and B to it. The major change contained in the Protocol is the elimination of all withholding tax on cross-border payments of interest. The elimination is immediate for arm’s length payments of interest and phased in over three years for non-arm’s length payments. Other changes to the Convention include new rules for the treatment of “limited liability companies” (LLCs), pensions, stock options, corporate continuances and taxpayers who change residence from one country to the other. Annex A to the Convention clarifies the interpretation of a number of provisions of the Convention. Annex B to the Convention provides for a binding arbitration procedure. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 56 ELIZABETH II —————— CHAPTER 32 An Act to amend the Canada-United States Tax Convention Act, 1984 [Assented to 14th December, 2007] 1984, c. 20 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1997, c. 38, s. 34 1. Section 2 of the Canada-United States Tax Convention Act, 1984 is replaced by the following: Definition of “Convention” 2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of the United States set out in Schedule I, as amended by the Protocols set out in Schedules II, III, IV, V and VI. 2. Section 4 of the Act is replaced by the following: Notification 4. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination. 3. Schedule I to the Act is amended by adding at the end of that Schedule the Annexes A and B to the Convention set out in the Schedule 1 to this Act. 4. The Act is amended by adding, after Schedule V, the Schedule VI set out in the Schedule 2 to this Act. Notification 5. The Minister of Finance shall cause a notice of the day on which the agreements and the Protocol that are set out in Schedules C. 32 Canada-United States 1 and 2 to this Act enter into force to be published in the Canada Gazette within 60 days after their entry into force. Convention Canada-États-Unis en m SCHEDULE 1 (Section 3) ANNEX A Note No. JLAB-0111 September 21, 2007 Excellency, I have the honor to refer to the Protocol (the “Protocol”) done today between Canada and the United States of America amending the Convention with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995, and 29 July 1997 (the “Convention”), and to propose on behalf of the Government of Canada the following: In respect of any case where the competent authorities have endeavored but are unable to reach a complete agreement under Article XXVI (Mutual Agreement Procedure) of the Convention regarding the application of one or more of the following Articles of the Convention: IV (Residence) (but only insofar as it relates to the residence of a natural person), V (Permanent Establishment), VII (Business Profits), IX (Related Persons), and XII (Royalties) (but only (i) insofar as Article XII might apply in transactions involving related persons to whom Article IX might apply, or (ii) to an allocation of amounts between royalties that are taxable under paragraph 2 thereof and royalties that are exempt under paragraph 3 thereof), binding arbitration shall be used to determine such application, unless the competent authorities agree that the particular case is not suitable for determination by arbitration. In addition, the competent authorities may, on an ad hoc basis, agree that binding arbitration shall be used in respect of any other matter to which Article XXVI applies. If an arbitration proceeding (the “Proceeding”) under paragraph 6 of Article XXVI commences, the following rules and procedures shall apply: 1. The Proceeding shall be conducted in the manner prescribed by, and subject to the requirements of, paragraphs 6 and 7 of Article XXVI and these rules and procedures, as modified or supplemented by any other rules and procedures agreed upon by the competent authorities pursuant to paragraph 17 below. 2. The determination reached by an arbitration board in the Proceeding shall be limited to a determination regarding the amount of income, expense or tax reportable to the Contracting States. 3. Notwithstanding the initiation of the Proceeding, the competent authorities may reach a mutual agreement to resolve a case and terminate the Proceeding. Correspondingly, a concerned person may withdraw a request for the competent authorities to engage in the Mutual Agreement Procedure (and thereby terminate the Proceeding) at any time. 4. The requirements of subparagraph 7(d) of Article XXVI shall be met when the competent authorities have each received from each concerned person a notarized statement agreeing that the concerned person and each person acting on the concerned person’s behalf, shall not disclose to any other person any information received C. 32 Canada-United States Tax Co during the course of the Proceeding from either Contracting State or the arbitration board, other than the determination of the Proceeding. A concerned person that has the legal authority to bind any other concerned person(s) on this matter may do so in a comprehensive notarized statement. 5. Each Contracting State shall have 60 days from the date on which the Proceeding begins to send a written communication to the other Contracting State appointing one member of the arbitration board. Within 60 days of the date on which the second such communication is sent, the two members appointed by the Contracting States shall appoint a third member, who shall serve as chair of the board. If either Contracting State fails to appoint a member, or if the members appointed by the Contracting States fail to agree upon the third member in the manner prescribed by this paragraph, a Contracting State shall ask the highest ranking member of the Secretariat at the Centre for Tax Policy and Administration of the Organisation for Economic Co-operation and Development (OECD) who is not a citizen of either Contracting State, to appoint the remaining member(s) by written notice to both Contracting States within 60 days of the date of such failure. The competent authorities shall develop a non-exclusive list of individuals with familiarity in international tax matters who may potentially serve as the chair of the board. 6. The arbitration board may adopt any procedures necessary for the conduct of its business, provided that the procedures are not inconsistent with any provision of Article XXVI or this note. 7. Each of the Contracting States shall be permitted to submit, within 60 days of the appointment of the chair of the arbitration board, a proposed resolution describing the proposed disposition of the specific monetary amounts of income, expense or taxation at issue in the case, and a supporting position paper, for consideration by the arbitration board. Copies of the proposed resolution and supporting position paper shall be provided by the board to the other Contracting State on the date on which the later of the submissions is submitted to the board. In the event that only one Contracting State submits a proposed resolution within the allotted time, then that proposed resolution shall be deemed to be the determination of the board in that case and the Proceeding shall be terminated. Each of the Contracting States may, if it so desires, submit a reply submission to the board within 120 days of the appointment of its chair, to address any points raised by the proposed resolution or position paper submitted by the other Contracting State. Additional information may be submitted to the arbitration board only at its request, and copies of the board’s request and the Contracting State’s response shall be provided to the other Contracting State on the date on which the request or the response is submitted. Except for logistical matters such as those identified in paragraphs 12, 14 and 15 below, all communications from the Contracting States to the arbitration board, and vice versa, shall take place only through written communications between the designated competent authorities and the chair of the board. Convention Canada-États-Unis en m 8. The arbitration board shall deliver a determination in writing to the Contracting States within six months of the appointment of its chair. The board shall adopt as its determination one of the proposed resolutions submitted by the Contracting States. 9. In making its determination, the arbitration board shall apply, as necessary: (1) the provisions of the Convention as amended; (2) any agreed commentaries or explanations of the Contracting States concerning the Convention as amended; (3) the laws of the Contracting States to the extent they are not inconsistent with each other; and (4) any OECD Commentary, Guidelines or Reports regarding relevant analogous portions of the OECD Model Tax Convention. 10. The determination of the arbitration board in a particular case shall be binding on the Contracting States. The determination of the board shall not state a rationale. It shall have no precedential value. 11. As provided in subparagraph 7(e) of Article XXVI, the determination of an arbitration board shall constitute a resolution by mutual agreement under this Article. Each concerned person must, within 30 days of receiving the determination of the board from the competent authority to which the case was first presented, advise that competent authority whether that concerned person accepts the determination of the board. If any concerned person fails to so advise the relevant competent authority within this time frame, the determination of the board shall be considered not to have been accepted in that case. Where the determination of the board is not accepted, the case may not subsequently be the subject of a Proceeding. 12. Any meeting(s) of the arbitration board shall be in facilities provided by the Contracting State whose competent authority initiated the mutual agreement proceedings in the case. 13. The treatment of any associated interest or penalties shall be determined by applicable domestic law of the Contracting State(s) concerned. 14. No information relating to the Proceeding (including the board’s determination) may be disclosed by the members of the arbitration board or their staffs or by either competent authority, except as permitted by the Convention and the domestic laws of the Contracting States. In addition, all material prepared in the course of, or relating to, the Proceeding shall be considered to be information exchanged between the Contracting States. The Contracting States shall ensure that all members of the arbitration board and their staffs sign and send to each Contracting State notarized statements, prior to their acting in the arbitration proceeding, in which they agree to abide by and be subject to the confidentiality and nondisclosure provisions of Articles XXVI and XXVII of the Convention and the applicable domestic laws of the Contracting States. In the event those provisions conflict, the most restrictive condition shall apply. 15. The fees and expenses of members of the arbitration board shall be set in accordance with the International Centre for Settlement of Investment Disputes (ICSID) Schedule of Fees for arbitrators, as in effect on the date on which the arbitration proceedings begin, and shall be borne equally by the Contracting C. 32 Canada-United States Tax Co States. Any fees for language translation shall also be borne equally by the Contracting States. Meeting facilities, related resources, financial management, other logistical support, and general administrative coordination of the Proceeding shall be provided, at its own cost, by the Contracting State whose competent authority initiated the mutual agreement proceedings in the case. Any other costs shall be borne by the Contracting State that incurs them. 16. For purposes of paragraphs 6 and 7 of Article XXVI and this note, each competent authority shall confirm in writing to the other competent authority and to the concerned person(s) the date of its receipt of the information necessary to undertake substantive consideration for a mutual agreement. Such information shall be: (a) in the United States, the information required to be submitted to the U.S. competent authority under Revenue Procedure 200654, section 4.05 (or any applicable analogous provisions) and, for cases initially submitted as a request for an Advance Pricing Agreement, the information required to be submitted to the Internal Revenue Service under Revenue Procedure 2006-9, section 4 (or any applicable analogous provisions), and (b) in Canada, the information required to be submitted to Canadian competent authority under Information Circular 71-17 (or any applicable successor publication). However, this information shall not be considered received until both competent authorities have received copies of all materials submitted to either Contracting State by the concerned person(s) in connection with the mutual agreement procedure. 17. The competent authorities of the Contracting States may modify or supplement the above rules and procedures as necessary to more effectively implement the intent of paragraph 6 of Article XXVI to eliminate double taxation. If the above proposal is acceptable to your Government, I further propose that this Note, which is authentic in English and in French, and your reply Note reflecting such acceptance shall constitute an agreement between our two Governments which shall enter into force on the date of entry into force of the Protocol and shall be annexed to the Convention as Annex A thereto and shall therefore be an integral part of the Convention. Please accept, Excellency, the assurance of my highest consideration. Maxime Bernier Minister of Foreign Affairs Diplomatic Note No. 1015 Excellency, I have the honor to acknowledge receipt of your Note No. JLAB0111 dated September 21, 2007, which states in its entirety as follows: Excellency, Convention Canada-États-Unis en m I have the honor to refer to the Protocol (the “Protocol”) done today between Canada and the United States of America amending the Convention with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995, and 29 July 1997 (the “Convention”), and to propose on behalf of the Government of Canada the following: In respect of any case where the competent authorities have endeavored but are unable to reach a complete agreement under Article XXVI (Mutual Agreement Procedure) of the Convention regarding the application of one or more of the following Articles of the Convention: IV (Residence) (but only insofar as it relates to the residence of a natural person), V (Permanent Establishment), VII (Business Profits), IX (Related Persons), and XII (Royalties) (but only (i) insofar as Article XII might apply in transactions involving related persons to whom Article IX might apply, or (ii) to an allocation of amounts between royalties that are taxable under paragraph 2 thereof and royalties that are exempt under paragraph 3 thereof), binding arbitration shall be used to determine such application, unless the competent authorities agree that the particular case is not suitable for determination by arbitration. In addition, the competent authorities may, on an ad hoc basis, agree that binding arbitration shall be used in respect of any other matter to which Article XXVI applies. If an arbitration proceeding (the “Proceeding”) under paragraph 6 of Article XXVI commences, the following rules and procedures shall apply: 1. The Proceeding shall be conducted in the manner prescribed by, and subject to the requirements of, paragraphs 6 and 7 of Article XXVI and these rules and procedures, as modified or supplemented by any other rules and procedures agreed upon by the competent authorities pursuant to paragraph 17 below. 2. The determination reached by an arbitration board in the Proceeding shall be limited to a determination regarding the amount of income, expense or tax reportable to the Contracting States. 3. Notwithstanding the initiation of the Proceeding, the competent authorities may reach a mutual agreement to resolve a case and terminate the Proceeding. Correspondingly, a concerned person may withdraw a request for the competent authorities to engage in the Mutual Agreement Procedure (and thereby terminate the Proceeding) at any time. 4. The requirements of subparagraph 7(d) of Article XXVI shall be met when the competent authorities have each received from each concerned person a notarized statement agreeing that the concerned person and each person acting on the concerned person’s behalf, shall not disclose to any other person any information received during the course of the Proceeding from either Contracting State or the arbitration board, other than the determination of the Proceeding. A concerned person that has the legal authority to bind any other concerned person(s) on this matter may do so in a comprehensive notarized statement. 5. Each Contracting State shall have 60 days from the date on which the Proceeding begins to send a written communication to the other Contracting State appointing one member of the arbitration C. 32 Canada-United States Tax Co board. Within 60 days of the date on which the second such communication is sent, the two members appointed by the Contracting States shall appoint a third member, who shall serve as chair of the board. If either Contracting State fails to appoint a member, or if the members appointed by the Contracting States fail to agree upon the third member in the manner prescribed by this paragraph, a Contracting State shall ask the highest ranking member of the Secretariat at the Centre for Tax Policy and Administration of the Organisation for Economic Co-operation and Development (OECD) who is not a citizen of either Contracting State, to appoint the remaining member(s) by written notice to both Contracting States within 60 days of the date of such failure. The competent authorities shall develop a non-exclusive list of individuals with familiarity in international tax matters who may potentially serve as the chair of the board. 6. The arbitration board may adopt any procedures necessary for the conduct of its business, provided that the procedures are not inconsistent with any provision of Article XXVI or this note. 7. Each of the Contracting States shall be permitted to submit, within 60 days of the appointment of the chair of the arbitration board, a proposed resolution describing the proposed disposition of the specific monetary amounts of income, expense or taxation at issue in the case, and a supporting position paper, for consideration by the arbitration board. Copies of the proposed resolution and supporting position paper shall be provided by the board to the other Contracting State on the date on which the later of the submissions is submitted to the board. In the event that only one Contracting State submits a proposed resolution within the allotted time, then that proposed resolution shall be deemed to be the determination of the board in that case and the Proceeding shall be terminated. Each of the Contracting States may, if it so desires, submit a reply submission to the board within 120 days of the appointment of its chair, to address any points raised by the proposed resolution or position paper submitted by the other Contracting State. Additional information may be submitted to the arbitration board only at its request, and copies of the board’s request and the Contracting State’s response shall be provided to the other Contracting State on the date on which the request or the response is submitted. Except for logistical matters such as those identified in paragraphs 12, 14 and 15 below, all communications from the Contracting States to the arbitration board, and vice versa, shall take place only through written communications between the designated competent authorities and the chair of the board. 8. The arbitration board shall deliver a determination in writing to the Contracting States within six months of the appointment of its chair. The board shall adopt as its determination one of the proposed resolutions submitted by the Contracting States. 9. In making its determination, the arbitration board shall apply, as necessary: (1) the provisions of the Convention as amended; (2) any agreed commentaries or explanations of the Contracting States concerning the Convention as amended; (3) the laws of the Contracting States to the extent they are not inconsistent with each Convention Canada-États-Unis en m other; and (4) any OECD Commentary, Guidelines or Reports regarding relevant analogous portions of the OECD Model Tax Convention. 10. The determination of the arbitration board in a particular case shall be binding on the Contracting States. The determination of the board shall not state a rationale. It shall have no precedential value. 11. As provided in subparagraph 7(e) of Article XXVI, the determination of an arbitration board shall constitute a resolution by mutual agreement under this Article. Each concerned person must, within 30 days of receiving the determination of the board from the competent authority to which the case was first presented, advise that competent authority whether that concerned person accepts the determination of the board. If any concerned person fails to so advise the relevant competent authority within this time frame, the determination of the board shall be considered not to have been accepted in that case. Where the determination of the board is not accepted, the case may not subsequently be the subject of a Proceeding. 12. Any meeting(s) of the arbitration board shall be in facilities provided by the Contracting State whose competent authority initiated the mutual agreement proceedings in the case. 13. The treatment of any associated interest or penalties shall be determined by applicable domestic law of the Contracting State(s) concerned. 14. No information relating to the Proceeding (including the board’s determination) may be disclosed by the members of the arbitration board or their staffs or by either competent authority, except as permitted by the Convention and the domestic laws of the Contracting States. In addition, all material prepared in the course of, or relating to, the Proceeding shall be considered to be information exchanged between the Contracting States. The Contracting States shall ensure that all members of the arbitration board and their staffs sign and send to each Contracting State notarized statements, prior to their acting in the arbitration proceeding, in which they agree to abide by and be subject to the confidentiality and nondisclosure provisions of Articles XXVI and XXVII of the Convention and the applicable domestic laws of the Contracting States. In the event those provisions conflict, the most restrictive condition shall apply. 15. The fees and expenses of members of the arbitration board shall be set in accordance with the International Centre for Settlement of Investment Disputes (ICSID) Schedule of Fees for arbitrators, as in effect on the date on which the arbitration proceedings begin, and shall be borne equally by the Contracting States. Any fees for language translation shall also be borne equally by the Contracting States. Meeting facilities, related resources, financial management, other logistical support, and general administrative coordination of the Proceeding shall be provided, at its own cost, by the Contracting State whose competent authority initiated the mutual agreement proceedings in the case. Any other costs shall be borne by the Contracting State that incurs them. C. 32 Canada-United States Tax Co 16. For purposes of paragraphs 6 and 7 of Article XXVI and this note, each competent authority shall confirm in writing to the other competent authority and to the concerned person(s) the date of its receipt of the information necessary to undertake substantive consideration for a mutual agreement. Such information shall be: (a) in the United States, the information required to be submitted to the U.S. competent authority under Revenue Procedure 200654, section 4.05 (or any applicable analogous provisions) and, for cases initially submitted as a request for an Advance Pricing Agreement, the information required to be submitted to the Internal Revenue Service under Revenue Procedure 2006-9, section 4 (or any applicable analogous provisions), and (b) in Canada, the information required to be submitted to Canadian competent authority under Information Circular 71-17 (or any applicable successor publication). However, this information shall not be considered received until both competent authorities have received copies of all materials submitted to either Contracting State by the concerned person(s) in connection with the mutual agreement procedure. 17. The competent authorities of the Contracting States may modify or supplement the above rules and procedures as necessary to more effectively implement the intent of paragraph 6 of Article XXVI to eliminate double taxation. If the above proposal is acceptable to your Government, I further propose that this Note, which is authentic in English and in French, and your reply Note reflecting such acceptance shall constitute an agreement between our two Governments which shall enter into force on the date of entry into force of the Protocol and shall be annexed to the Convention as Annex A thereto and shall therefore be an integral part of the Convention. Please accept, Excellency, the assurance of my highest consideration. I am pleased to inform you that the Government of the United States of America accepts the proposal set forth in your Note. The Government of the United States of America further agrees that your Note, which is authentic in English and in French, together with this reply, shall constitute an Agreement between the United States of America and Canada, which shall enter into force on the date of entry into force of the Protocol amending the Convention between the United States of America and Canada with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995, and 29 July 1997 (the “Convention”), and shall be annexed to the Convention as Annex A thereto, and shall therefore be an integral part of the Convention. Accept, Excellency, the renewed assurances of my highest consideration. Embassy of the United States of America Ottawa, September 21, 2007 Terry Breese ANNEX B Note No. JLAB-0112 Convention Canada-États-Unis en m September 21, 2007 Excellency, I have the honor to refer to the Protocol (the “Protocol”) done today between Canada and the United States of America amending the Convention with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995, and 29 July 1997 (the “Convention”). In the course of the negotiations leading to the conclusion of the Protocol done today, the negotiators developed and agreed upon a common understanding and interpretation of certain provisions of the Convention. These understandings and interpretations are intended to give guidance both to the taxpayers and to the tax authorities of our two countries in interpreting various provisions contained in the Convention. I, therefore, have the further honor to propose on behalf of the Government of Canada the following understandings and interpretations: 1. Meaning of undefined terms For purposes of paragraph 2 of Article III (General Definitions) of the Convention, it is understood that, as regards the application at any time of the Convention, and any protocols thereto by a Contracting State, any term not defined therein shall, unless the context otherwise requires or the competent authorities otherwise agree to a common meaning pursuant to Article XXVI (Mutual Agreement Procedure), have the meaning which it has at that time under the law of that State for the purposes of the taxes to which the Convention, and any protocols thereto apply, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. 2. Meaning of connected projects For the purposes of applying subparagraph (b) of paragraph 9 of Article V (Permanent Establishment) of the Convention, it is understood that projects shall be considered to be connected if they constitute a coherent whole, commercially and geographically. 3. Definition of the term “dividends” It is understood that distributions from Canadian income trusts and royalty trusts that are treated as dividends under the taxation laws of Canada shall be considered dividends for the purposes of Article X (Dividends) of the Convention. 4. Deletion of Article XIV (Independent Personal Services) It is understood that the deletion of Article XIV (Independent Personal Services) of the Convention confirms the negotiators’ shared understanding that no practical distinction can be made between a “fixed base” and a “permanent establishment”, and that independent personal services of a resident of a Contracting State, to the extent that such resident is found to have a permanent establishment in the other Contracting State with respect to those services, shall be subject to the provisions of Article VII (Business Profits). C. 32 Canada-United States Tax Co 5. Former permanent establishments and fixed bases It is understood that the modifications of paragraph 2 of Article VII (Business Profits), paragraph 4 of Article X (Dividends), paragraph 3 of Article XI (Interest) and paragraph 5 of Article XII (Royalties) of the Convention to refer to business having formerly been carried on through a permanent establishment confirm the negotiators’ shared understanding of the meaning of the existing provisions, and thus are clarifying only. 6. Stock options For purposes of applying Article XV (Income from Employment) and Article XXIV (Elimination of Double Taxation) of the Convention to income of an individual in connection with the exercise or other disposal (including a deemed exercise or disposal) of an option that was granted to the individual as an employee of a corporation or mutual fund trust to acquire shares or units (“securities”) of the employer (which is considered, for the purposes of this Note, to include any related entity) in respect of services rendered or to be rendered by such individual, or in connection with the disposal (including a deemed disposal) of a security acquired under such an option, the following principles shall apply: (a) Subject to subparagraph 6(b) of this Note, the individual shall be deemed to have derived, in respect of employment exercised in a Contracting State, the same proportion of such income that the number of days in the period that begins on the day the option was granted, and that ends on the day the option was exercised or disposed of, on which the individual’s principal place of employment for the employer was situated in that Contracting State is of the total number of days in the period on which the individual was employed by the employer; and (b) Notwithstanding subparagraph 6(a) of this Note, if the competent authorities of both Contracting States agree that the terms of the option were such that the grant of the option will be appropriately treated as transfer of ownership of the securities (e.g., because the options were in-the-money or not subject to a substantial vesting period), then they may agree to attribute income accordingly. 7. Taxes imposed by reason of death It is understood that, (a) Where a share or option in respect of a share is property situated in the United States for the purposes of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention, any employment income in respect of the share or option shall be, for the purpose of clause 6(a)(ii) of that Article, income from property situated in the United States; (b) Where property situated in the United States for the purposes of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention is held by an entity that is a resident of Canada and that is described in subparagraph 1(b) of Article IV (Residence) of the Convention, any income out of or under the entity in respect of the property shall be, for the purpose of subparagraph 6(a)(ii) of Article XXIX B (Taxes Imposed by Reason of Death), income from property situated in the United States; and Convention Canada-États-Unis en m (c) Where a tax is imposed in Canada by reason of death in respect of an entity that is a resident of Canada and that is described in subparagraph 1(b) of Article IV (Residence) of the Convention, that tax shall be, for the purpose of paragraph 7 of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention, imposed in respect of property situated in Canada. 8. Royalties — information in connection with franchise agreement It is understood that the reference in subparagraph 3(c) of Article XII (Royalties) of the Convention to information provided in connection with a franchise agreement shall generally refer only to information that governs or otherwise deals with the operation (whether by the payer or by another person) of the franchise, and not to other information concerning industrial, commercial or scientific experience that is held for resale or license. 9. With reference to Article VII (Business Profits) It is understood that the business profits to be attributed to a permanent establishment shall include only the profits derived from the assets used, risks assumed and activities performed by the permanent establishment. The principles of the OECD Transfer Pricing Guidelines shall apply for purposes of determining the profits attributable to a permanent establishment, taking into account the different economic and legal circumstances of a single entity. Accordingly, any of the methods described therein as acceptable methods for determining an arm’s length result may be used to determine the income of a permanent establishment so long as those methods are applied in accordance with the Guidelines. In particular, in determining the amount of attributable profits, the permanent establishment shall be treated as having the same amount of capital that it would need to support its activities if it were a distinct and separate enterprise engaged in the same or similar activities. With respect to financial institutions other than insurance companies, a Contracting State may determine the amount of capital to be attributed to a permanent establishment by allocating the institution’s total equity between its various offices on the basis of the proportion of the financial institution’s risk-weighted assets attributable to each of them. In the case of an insurance company, there shall be attributed to a permanent establishment not only premiums earned through the permanent establishment, but that portion of the insurance company’s overall investment income from reserves and surplus that supports the risks assumed by the permanent establishment. 10. Qualifying retirement plans For purposes of paragraph 15 of Article XVIII (Pensions and Annuities) of the Convention, it is understood that (a) In the case of Canada, the term “qualifying retirement plan” shall include the following and any identical or substantially similar plan that is established pursuant to legislation introduced after the date of signature of the Protocol: registered pension plans under section 147.1 of the Income Tax Act, registered retirement savings plans under section 146 that are part of a group arrangement described in subsection 204.2(1.32), deferred profit sharing plans under section 147, and any registered retirement C. 32 Canada-United States Tax Co savings plan under section 146 or registered retirement income fund under section 146.3 that is funded exclusively by rollover contributions from one or more of the preceding plans; and (b) In the case of the United States, the term “qualifying retirement plan” shall include the following and any identical or substantially similar plan that is established pursuant to legislation introduced after the date of signature of the Protocol: qualified plans under section 401(a) of the Internal Revenue Code (including section 401(k) arrangements), individual retirement plans that are part of a simplified employee pension plan that satisfies section 408(k), section 408(p) simple retirement accounts, section 403(a) qualified annuity plans, section 403(b) plans, section 457(g) trusts providing benefits under section 457(b) plans, the Thrift Savings Fund (section 7701(j)), and any individual retirement account under section 408(a) that is funded exclusively by rollover contributions from one or more of the preceding plans. 11. Former long-term residents The term “long-term resident” shall mean any individual who is a lawful permanent resident of the United States in eight or more taxable years during the preceding 15 taxable years. In determining whether the threshold in the preceding sentence is met, there shall not count any year in which the individual is treated as a resident of Canada under the Convention, or as a resident of any country other than the United States under the provisions of any other U.S. tax treaty, and, in either case, the individual does not waive the benefits of such treaty applicable to residents of the other country. 12. Special source rules relating to former citizens and long-term residents For purposes of subparagraph 2(b) of Article XXIX (Miscellaneous Rules) of the Convention, “income deemed under the domestic law of the United States to arise from such sources” shall consist of gains from the sale or exchange of stock of a U.S. company or debt obligations of a U.S. person, the United States, a State, or a political subdivision thereof, or the District of Columbia, gains from property (other than stock or debt obligations) located in the United States, and, in certain cases, income or gain derived from the sale of stock of a non-U.S. company or a disposition of property contributed to such non-U.S. company where such company would be a controlled foreign corporation with respect to the person if such person had continued to be a U.S. person. In addition, an individual who exchanges property that gives rise or would give rise to U.S.-source income for property that gives rise to foreign-source income shall be treated as if he or she had sold the property that would give rise to U.S.-source income for its fair market value, and any consequent gain shall be deemed to be income from sources within the United States. Convention Canada-États-Unis en m 13. Exchange of Information It is understood that the standards and practices described in Article XXVII (Exchange of Information) of the Convention are to be in no respect less effective than those described in the Model Agreement on Exchange of Information on Tax Matters developed by the OECD Global Forum Working Group on Effective Exchange of Information. 14. Limitation on Benefits The United States and Canada are part of the same regional free trade area and, as a result, the Convention reflects the fact that publicly traded companies resident in one country may be traded on a stock exchange of the other country. Nevertheless, the Contracting States agree that in making future amendments to the Convention, they shall consult on possible modifications to subparagraph 2(c) of Article XXIX A (Limitation on Benefits) of the Convention (including, modifications necessary to discourage corporate inversion transactions). If the above proposal is acceptable to your Government, I further propose that this Note, which is authentic in English and in French, and your reply Note reflecting such acceptance shall constitute an agreement between our two Governments which shall enter into force on the date of entry into force of the Protocol and shall be annexed to the Convention as Annex B thereto and shall therefore be an integral part of the Convention. Please accept, Excellency, the assurance of my highest consideration. Maxime Bernier Minister of Foreign Affairs Diplomatic Note No. 1014 Excellency, I have the honor to acknowledge receipt of your Note No. JLAB0112 dated September 21, 2007, which states in its entirety as follows: Excellency, I have the honor to refer to the Protocol (the “Protocol”) done today between Canada and the United States of America amending the Convention with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995, and 29 July 1997 (the “Convention”). In the course of the negotiations leading to the conclusion of the Protocol done today, the negotiators developed and agreed upon a common understanding and interpretation of certain provisions of the Convention. These understandings and interpretations are intended to give guidance both to the taxpayers and to the tax authorities of our two countries in interpreting various provisions contained in the Convention. C. 32 Canada-United States Tax Co I, therefore, have the further honor to propose on behalf of the Government of Canada the following understandings and interpretations: 1. Meaning of undefined terms For purposes of paragraph 2 of Article III (General Definitions) of the Convention, it is understood that, as regards the application at any time of the Convention, and any protocols thereto by a Contracting State, any term not defined therein shall, unless the context otherwise requires or the competent authorities otherwise agree to a common meaning pursuant to Article XXVI (Mutual Agreement Procedure), have the meaning which it has at that time under the law of that State for the purposes of the taxes to which the Convention, and any protocols thereto apply, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State 2. Meaning of connected projects For the purposes of applying subparagraph (b) of paragraph 9 of Article V (Permanent Establishment) of the Convention, it is understood that projects shall be considered to be connected if they constitute a coherent whole, commercially and geographically. 3. Definition of the term “dividends” It is understood that distributions from Canadian income trusts and royalty trusts that are treated as dividends under the taxation laws of Canada shall be considered dividends for the purposes of Article X (Dividends) of the Convention. 4. Deletion of Article XIV (Independent Personal Services) It is understood that the deletion of Article XIV (Independent Personal Services) of the Convention confirms the negotiators’ shared understanding that no practical distinction can be made between a “fixed base” and a “permanent establishment”, and that independent personal services of a resident of a Contracting State, to the extent that such resident is found to have a permanent establishment in the other Contracting State with respect to those services, shall be subject to the provisions of Article VII (Business Profits). 5. Former permanent establishments and fixed bases It is understood that the modifications of paragraph 2 of Article VII (Business Profits), paragraph 4 of Article X (Dividends), paragraph 3 of Article XI (Interest) and paragraph 5 of Article XII (Royalties) of the Convention to refer to business having formerly been carried on through a permanent establishment confirm the negotiators’ shared understanding of the meaning of the existing provisions, and thus are clarifying only. 6. Stock options For purposes of applying Article XV (Income from Employment) and Article XXIV (Elimination of Double Taxation) of the Convention to income of an individual in connection with the exercise or other disposal (including a deemed exercise or disposal) of an option that was granted to the individual as an employee of a corporation or mutual fund trust to acquire shares or units (“securities”) of the employer (which is considered, for the purposes Convention Canada-États-Unis en m of this Note, to include any related entity) in respect of services rendered or to be rendered by such individual, or in connection with the disposal (including a deemed disposal) of a security acquired under such an option, the following principles shall apply: (a) Subject to subparagraph 6(b) of this Note, the individual shall be deemed to have derived, in respect of employment exercised in a Contracting State, the same proportion of such income that the number of days in the period that begins on the day the option was granted, and that ends on the day the option was exercised or disposed of, on which the individual’s principal place of employment for the employer was situated in that Contracting State is of the total number of days in the period on which the individual was employed by the employer; and (b) Notwithstanding subparagraph 6(a) of this Note, if the competent authorities of both Contracting States agree that the terms of the option were such that the grant of the option will be appropriately treated as transfer of ownership of the securities (e.g., because the options were in-the-money or not subject to a substantial vesting period), then they may agree to attribute income accordingly. 7. Taxes imposed by reason of death It is understood that, (a) Where a share or option in respect of a share is property situated in the United States for the purposes of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention, any employment income in respect of the share or option shall be, for the purpose of clause 6(a)(ii) of that Article, income from property situated in the United States; (b) Where property situated in the United States for the purposes of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention is held by an entity that is a resident of Canada and that is described in subparagraph 1(b) of Article IV (Residence) of the Convention, any income out of or under the entity in respect of the property shall be, for the purpose of subparagraph 6(a)(ii) of Article XXIX B (Taxes Imposed by Reason of Death), income from property situated in the United States; and (c) Where a tax is imposed in Canada by reason of death in respect of an entity that is a resident of Canada and that is described in subparagraph 1(b) of Article IV (Residence) of the Convention, that tax shall be, for the purpose of paragraph 7 of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention, imposed in respect of property situated in Canada. 8. Royalties — information in connection with franchise agreement It is understood that the reference in subparagraph 3(c) of Article XII (Royalties) of the Convention to information provided in connection with a franchise agreement shall generally refer only to information that governs or otherwise deals with the operation (whether by the payer or by another person) of the franchise, and not to other information concerning industrial, commercial or scientific experience that is held for resale or license. C. 32 Canada-United States Tax Co 9. With reference to Article VII (Business Profits) It is understood that the business profits to be attributed to a permanent establishment shall include only the profits derived from the assets used, risks assumed and activities performed by the permanent establishment. The principles of the OECD Transfer Pricing Guidelines shall apply for purposes of determining the profits attributable to a permanent establishment, taking into account the different economic and legal circumstances of a single entity. Accordingly, any of the methods described therein as acceptable methods for determining an arm’s length result may be used to determine the income of a permanent establishment so long as those methods are applied in accordance with the Guidelines. In particular, in determining the amount of attributable profits, the permanent establishment shall be treated as having the same amount of capital that it would need to support its activities if it were a distinct and separate enterprise engaged in the same or similar activities. With respect to financial institutions other than insurance companies, a Contracting State may determine the amount of capital to be attributed to a permanent establishment by allocating the institution’s total equity between its various offices on the basis of the proportion of the financial institution’s risk-weighted assets attributable to each of them. In the case of an insurance company, there shall be attributed to a permanent establishment not only premiums earned through the permanent establishment, but that portion of the insurance company’s overall investment income from reserves and surplus that supports the risks assumed by the permanent establishment. 10. Qualifying retirement plans For purposes of paragraph 15 of Article XVIII (Pensions and Annuities) of the Convention, it is understood that (a) In the case of Canada, the term “qualifying retirement plan” shall include the following and any identical or substantially similar plan that is established pursuant to legislation introduced after the date of signature of the Protocol: registered pension plans under section 147.1 of the Income Tax Act, registered retirement savings plans under section 146 that are part of a group arrangement described in subsection 204.2(1.32), deferred profit sharing plans under section 147, and any registered retirement savings plan under section 146 or registered retirement income fund under section 146.3 that is funded exclusively by rollover contributions from one or more of the preceding plans; and (b) In the case of the United States, the term “qualifying retirement plan” shall include the following and any identical or substantially similar plan that is established pursuant to legislation introduced after the date of signature of the Protocol: qualified plans under section 401(a) of the Internal Revenue Code (including section 401(k) arrangements), individual retirement plans that are part of a simplified employee pension plan that satisfies section 408(k), section 408(p) simple retirement accounts, section 403(a) qualified annuity plans, section 403(b) plans, section 457(g) trusts providing benefits under section 457(b) plans, the Thrift Savings Fund (section 7701(j)), and any individual retirement account under section 408(a) that is funded exclusively by rollover contributions from one or more of the preceding plans. Convention Canada-États-Unis en m 11. Former long-term residents The term “long-term resident” shall mean any individual who is a lawful permanent resident of the United States in eight or more taxable years during the preceding 15 taxable years. In determining whether the threshold in the preceding sentence is met, there shall not count any year in which the individual is treated as a resident of Canada under the Convention, or as a resident of any country other than the United States under the provisions of any other U.S. tax treaty, and, in either case, the individual does not waive the benefits of such treaty applicable to residents of the other country. 12. Special source rules relating to former citizens and long-term residents For purposes of subparagraph 2(b) of Article XXIX (Miscellaneous Rules) of the Convention, “income deemed under the domestic law of the United States to arise from such sources” shall consist of gains from the sale or exchange of stock of a U.S. company or debt obligations of a U.S. person, the United States, a State, or a political subdivision thereof, or the District of Columbia, gains from property (other than stock or debt obligations) located in the United States, and, in certain cases, income or gain derived from the sale of stock of a non-U.S. company or a disposition of property contributed to such non-U.S. company where such company would be a controlled foreign corporation with respect to the person if such person had continued to be a U.S. person. In addition, an individual who exchanges property that gives rise or would give rise to U.S.-source income for property that gives rise to foreign-source income shall be treated as if he or she had sold the property that would give rise to U.S.-source income for its fair market value, and any consequent gain shall be deemed to be income from sources within the United States. 13. Exchange of Information It is understood that the standards and practices described in Article XXVII (Exchange of Information) of the Convention are to be in no respect less effective than those described in the Model Agreement on Exchange of Information on Tax Matters developed by the OECD Global Forum Working Group on Effective Exchange of Information. 14. Limitation on Benefits The United States and Canada are part of the same regional free trade area and, as a result, the Convention reflects the fact that publicly traded companies resident in one country may be traded on a stock exchange of the other country. Nevertheless, the Contracting States agree that in making future amendments to the Convention, they shall consult on possible modifications to subparagraph 2(c) of Article XXIX A (Limitation on Benefits) of the Convention (including, modifications necessary to discourage corporate inversion transactions). C. 32 Canada-United States Tax Co If the above proposal is acceptable to your Government, I further propose that this Note, which is authentic in English and in French, and your reply Note reflecting such acceptance shall constitute an agreement between our two Governments which shall enter into force on the date of entry into force of the Protocol and shall be annexed to the Convention as Annex B thereto and shall therefore be an integral part of the Convention. Please accept, Excellency, the assurance of my highest consideration. I am pleased to inform you that the Government of the United States of America accepts the proposal set forth in your Note. The Government of the United States of America further agrees that your Note, which is authentic in English and in French, together with this reply, shall constitute an Agreement between the United States of America and Canada, which shall enter into force on the date of entry into force of the Protocol amending the Convention between the United States of America and Canada with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995, and 29 July 1997 (the “Convention”), and shall be annexed to the Convention as Annex B thereto, and shall therefore be an integral part of the Convention. Accept, Excellency, the renewed assurances of my highest consideration. Embassy of the United States of America Ottawa, September 21, 2007 Terry Breese Convention Canada-États-Unis en m SCHEDULE 2 (Section 4) SCHEDULE VI (Section 2) PROTOCOL AMENDING THE CONVENTION BETWEEN CANADA AND THE UNITED STATES OF AMERICA WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL DONE AT WASHINGTON ON 26 SEPTEMBER 1980, AS AMENDED BY THE PROTOCOLS DONE ON 14 JUNE 1983, 28 MARCH 1984, 17 MARCH 1995 AND 29 JULY 1997 Canada and the United States of America, hereinafter referred to as the “Contracting States”, Desiring to conclude a Protocol amending the Convention between Canada and the United States of America with Respect to Taxes on Income and on Capital done at Washington on 26 September 1980, as amended by the Protocols done on 14 June 1983, 28 March 1984, 17 March 1995 and 29 July 1997 (hereinafter referred to as the “Convention”), Have agreed as follows: ARTICLE 1 Paragraph 1 of Article III (General Definitions) of the Convention shall be amended by deleting the word “and” at the end of subparagraph (i), by replacing the period at the end of subparagraph (j) with “; and”, and by adding the following subparagraph: (k) The term “national” of a Contracting State means: (i) Any individual possessing the citizenship or nationality of that State; and (ii) Any legal person, partnership or association deriving its status as such from the laws in force in that State. ARTICLE 2 1. Paragraph 3 of Article IV (Residence) of the Convention shall be deleted and replaced by the following: 3. Where by reason of the provisions of paragraph 1, a company is a resident of both Contracting States, then (a) If it is created under the laws in force in a Contracting State, but not under the laws in force in the other Contracting State, it shall be deemed to be a resident only of the first-mentioned State; and (b) In any other case, the competent authorities of the Contracting States shall endeavor to settle the question of residency by mutual agreement and determine the mode of application of this Convention to the company. In the absence of such agreement, the company shall not be considered a resident of either Contracting State for purposes of claiming any benefits under this Convention. 2. Article IV (Residence) of the Convention shall be amended by adding the following after paragraph 5: 6. An amount of income, profit or gain shall be considered to be derived by a person who is a resident of a Contracting State where: C. 32 Canada-United States Tax Co (a) The person is considered under the taxation law of that State to have derived the amount through an entity (other than an entity that is a resident of the other Contracting State); and (b) By reason of the entity being treated as fiscally transparent under the laws of the first-mentioned State, the treatment of the amount under the taxation law of that State is the same as its treatment would be if that amount had been derived directly by that person 7. An amount of income, profit or gain shall be considered not to be paid to or derived by a person who is a resident of a Contracting State where: (a) The person is considered under the taxation law of the other Contracting State to have derived the amount through an entity that is not a resident of the first-mentioned State, but by reason of the entity not being treated as fiscally transparent under the laws of that State, the treatment of the amount under the taxation law of that State is not the same as its treatment would be if that amount had been derived directly by that person; or (b) The person is considered under the taxation law of the other Contracting State to have received the amount from an entity that is a resident of that other State, but by reason of the entity being treated as fiscally transparent under the laws of the first-mentioned State, the treatment of the amount under the taxation law of that State is not the same as its treatment would be if that entity were not treated as fiscally transparent under the laws of that State. ARTICLE 3 1. The first sentence of paragraph 6 of Article V (Permanent Establishment) of the Convention shall be amended by deleting the word “and” preceding the first reference to paragraph 5, inserting a comma, and adding the words “and 9,” following that reference to paragraph 5. 2. Paragraph 9 of Article V (Permanent Establishment) of the Convention shall be deleted and replaced by the following two paragraphs: 9. Subject to paragraph 3, where an enterprise of a Contracting State provides services in the other Contracting State, if that enterprise is found not to have a permanent establishment in that other State by virtue of the preceding paragraphs of this Article, that enterprise shall be deemed to provide those services through a permanent establishment in that other State if and only if: (a) Those services are performed in that other State by an individual who is present in that other State for a period or periods aggregating 183 days or more in any twelve-month period, and, during that period or periods, more than 50 percent of the gross active business revenues of the enterprise consists of income derived from the services performed in that other State by that individual; or (b) The services are provided in that other State for an aggregate of 183 days or more in any twelve-month period with respect to the same or connected project for customers who are either residents of that other State or who maintain a permanent establishment in that other State and the services are provided in respect of that permanent establishment. Convention Canada-États-Unis en m 10. For the purposes of this Convention, the provisions of this Article shall be applied in determining whether any person has a permanent establishment in any State. ARTICLE 4 Paragraph 2 of Article VII (Business Profits) of the Convention shall be deleted and replaced by the following: 2. Subject to the provisions of paragraph 3, where a resident of a Contracting State carries on, or has carried on, business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the business profits which it might be expected to make if it were a distinct and separate person engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the resident and with any other person related to the resident (within the meaning of paragraph 2 of Article IX (Related Persons)). ARTICLE 5 1. Subparagraph 2(a) of Article X (Dividends) of the Convention shall be deleted and replaced by the following: (a) 5 percent of the gross amount of the dividends if the beneficial owner is a company which owns at least 10 percent of the voting stock of the company paying the dividends (for this purpose, a company that is a resident of a Contracting State shall be considered to own the voting stock owned by an entity that is considered fiscally transparent under the laws of that State and that is not a resident of the Contracting State of which the company paying the dividends is a resident, in proportion to the company’s ownership interest in that entity); 2. Paragraph 3 of Article X (Dividends) of the Convention shall be deleted and replaced by the following: 3. For the purposes of this Article, the term “dividends” means income from shares or other rights, not being debt-claims, participating in profits, as well as income that is subjected to the same taxation treatment as income from shares under the laws of the State of which the payer is a resident. 3. Paragraph 4 of Article X (Dividends) of the Convention shall be deleted and replaced by the following: 4. The provisions of paragraph 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on, or has carried on, business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected to such permanent establishment. In such case, the provisions of Article VII (Business Profits) shall apply. 4. Paragraph 5 of Article X (Dividends) of the Convention shall be amended by deleting the words “or a fixed base” following the words “effectively connected with a permanent establishment”. 5. Subparagraph 7(c) of Article X (Dividends) of the Convention shall be deleted and replaced by the following: C. 32 Canada-United States Tax Co (c) Subparagraph 2(a) shall not apply to dividends paid by a resident of the United States that is a Real Estate Investment Trust (REIT), and subparagraph 2(b) shall apply only if: (i) The beneficial owner of the dividends is an individual holding an interest of not more than 10 percent in the REIT; (ii) The dividends are paid with respect to a class of stock that is publicly traded and the beneficial owner of the dividends is a person holding an interest of not more than 5 percent in any class of the REIT’s stock; or (iii) The beneficial owner of the dividends is a person holding an interest of not more than 10 percent in the REIT and the REIT is diversified. Otherwise, the rate of tax applicable under the domestic law of the United States shall apply. Where an estate or testamentary trust acquired its interest in a REIT as a consequence of an individual’s death, for purposes of this subparagraph the estate or trust shall for the five-year period following the death be deemed with respect to that interest to be an individual. ARTICLE 6 Article XI (Interest) of the Convention shall be deleted and replaced by the following: Article XI Interest 1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed only in that other State. 2. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums or prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation laws of the Contracting State in which the income arises. However, the term “interest” does not include income dealt with in Article X (Dividends). 3. The provisions of paragraph 1 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on, or has carried on, business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article VII (Business Profits) shall apply. 4. For the purposes of this Article, interest shall be deemed to arise in a Contracting State when the payer is that State itself, or a political subdivision, local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a State other than that of which he is a resident a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then Convention Canada-États-Unis en m such interest shall be deemed to arise in the State in which the permanent establishment is situated and not in the State of which the payer is a resident. 5. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. 6. Notwithstanding the provisions of paragraph 1: (a) Interest arising in the United States that is contingent interest of a type that does not qualify as portfolio interest under United States law may be taxed by the United States but, if the beneficial owner of the interest is a resident of Canada, the gross amount of the interest may be taxed at a rate not exceeding the rate prescribed in subparagraph (b) of paragraph 2 of Article X (Dividends); (b) Interest arising in Canada that is determined with reference to receipts, sales, income, profits or other cash flow of the debtor or a related person, to any change in the value of any property of the debtor or a related person or to any dividend, partnership distribution or similar payment made by the debtor to a related person may be taxed by Canada, and according to the laws of Canada, but if the beneficial owner is a resident of the United States, the gross amount of the interest may be taxed at a rate not exceeding the rate prescribed in subparagraph (b) of paragraph 2 of Article X (Dividends); and (c) Interest that is an excess inclusion with respect to a residual interest in a real estate mortgage investment conduit may be taxed by each State in accordance with its domestic law. 7. Where a resident of a Contracting State pays interest to a person other than a resident of the other Contracting State, that other State may not impose any tax on such interest except insofar as it arises in that other State or insofar as the debt-claim in respect of which the interest is paid is effectively connected with a permanent establishment situated in that other State. ARTICLE 7 1. Paragraph 5 of Article XII (Royalties) of the Convention shall be deleted and replaced by the following: 5. The provisions of paragraphs 2 and 3 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on, or has carried on, business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected to such permanent establishment. In such case the provisions of Article VII (Business Profits) shall apply. 2. Subparagraph 6(a) of Article XII (Royalties) of the Convention shall be deleted and replaced by the following: C. 32 Canada-United States Tax Co (a) Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a State a permanent establishment in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated and not in any other State of which the payer is a resident; and 3. Paragraph 8 of Article XII (Royalties) of the Convention shall be amended by deleting the words “or a fixed base” following the words “effectively connected with a permanent establishment”. ARTICLE 8 1. Paragraph 2 of Article XIII (Gains) of the Convention shall be deleted and replaced by the following: 2. Gains from the alienation of personal property forming part of the business property of a permanent establishment which a resident of a Contracting State has or had (within the twelve-month period preceding the date of alienation) in the other Contracting State, including such gains from the alienation of such a permanent establishment, may be taxed in that other State. 2. Paragraph 5 of Article XIII (Gains) of the Convention shall be deleted and replaced by the following: 5. The provisions of paragraph 4 shall not affect the right of a Contracting State to levy, according to its domestic law, a tax on gains from the alienation of any property derived by an individual who is a resident of the other Contracting State if: (a) The individual was a resident of the first-mentioned State: (i) For at least 120 months during any period of 20 consecutive years preceding the alienation of the property; and (ii) At any time during the 10 years immediately preceding the alienation of the property; and (b) The property (or property for which such property was substituted in an alienation the gain on which was not recognized for the purposes of taxation in the first-mentioned State): (i) Was owned by the individual at the time the individual ceased to be a resident of the first-mentioned State; and (ii) Was not a property that the individual was treated as having alienated by reason of ceasing to be a resident of the firstmentioned State and becoming a resident of the other Contracting State. 3. Paragraph 7 of Article XIII (Gains) of the Convention shall be deleted and replaced by the following: 7. Where at any time an individual is treated for the purposes of taxation by a Contracting State as having alienated a property and is taxed in that State by reason thereof, the individual may elect to be treated for the purposes of taxation in the other Contracting State, in the year that includes that time and all subsequent years, as if the individual had, immediately before that time, sold and repurchased the property for an amount equal to its fair market value at that time. Convention Canada-États-Unis en m 4. Subparagraph 9(c) of Article XIII (Gains) of the Convention shall be amended by deleting the words “or pertained to a fixed base” following the words “permanent establishment”. ARTICLE 9 Article XIV (Independent Personal Services) of the Convention shall be deleted and the succeeding Articles shall not be renumbered. ARTICLE 10 1. The title of Article XV (Dependent Personal Services) of the Convention shall be deleted and replaced by “Income from Employment”. 2. Paragraphs 1 and 2 of renamed Article XV (Income from Employment) of the Convention shall be deleted and replaced by the following: 1. Subject to the provisions of Articles XVIII (Pensions and Annuities) and XIX (Government Service), salaries, wages and other remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (a) Such remuneration does not exceed ten thousand dollars ($10,000) in the currency of that other State; or (b) The recipient is present in that other State for a period or periods not exceeding in the aggregate 183 days in any twelvemonth period commencing or ending in the fiscal year concerned, and the remuneration is not paid by, or on behalf of, a person who is a resident of that other State and is not borne by a permanent establishment in that other State. ARTICLE 11 1. Paragraph 1 of Article XVI (Artistes and Athletes) shall be amended by deleting the words “XIV (Independent Personal Services)” following the words “Notwithstanding the provisions of Articles” and replacing them with the words “VII (Business Profits)” and by deleting the words “XV (Dependent Personal Services)” and replacing them with the words “XV (Income from Employment)”. 2. Paragraph 2 of Article XVI (Artistes and Athletes) shall be amended by deleting the words “XIV (Independent Personal Services)” following the words “notwithstanding the provisions of Articles VII (Business Profits),” and by deleting the words “XV (Dependent Personal Services)” and replacing them with the words “XV (Income from Employment)”. C. 32 Canada-United States Tax Co 3. Paragraph 4 of Article XVI (Artistes and Athletes) shall be amended by deleting the words “XIV (Independent Personal Services)” following the words “Notwithstanding the provisions of Articles” and replacing them with the words “VII (Business Profits)” and by deleting the words “(Dependent Personal Services)” in both places they appear in the paragraph and replacing them with the words “(Income from Employment)”. ARTICLE 12 Article XVII (Withholding of Taxes in Respect of Personal Services) of the Convention shall be deleted and the succeeding Articles shall not be renumbered. ARTICLE 13 1. Paragraphs 3 and 4 of Article XVIII (Pensions and Annuities) of the Convention shall be deleted and replaced by the following: 3. For the purposes of this Convention: (a) The term “pensions” includes any payment under a superannuation, pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances and amounts paid under a sickness, accident or disability plan, but does not include payments under an income-averaging annuity contract or, except for the purposes of Article XIX (Government Service), any benefit referred to in paragraph 5; and (b) The term “pensions” also includes a Roth IRA, within the meaning of section 408A of the Internal Revenue Code, or a plan or arrangement created pursuant to legislation enacted by a Contracting State after September 21, 2007 that the competent authorities have agreed is similar thereto. Notwithstanding the provisions of the preceding sentence, from such time that contributions have been made to the Roth IRA or similar plan or arrangement, by or for the benefit of a resident of the other Contracting State (other than rollover contributions from a Roth IRA or similar plan or arrangement described in the previous sentence that is a pension within the meaning of this subparagraph), to the extent of accretions from such time, such Roth IRA or similar plan or arrangement shall cease to be considered a pension for purposes of the provisions of this Article. 4. For the purposes of this Convention: (a) The term “annuity” means a stated sum paid periodically at stated times during life or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered), but does not include a payment that is not a periodic payment or any annuity the cost of which was deductible for the purposes of taxation in the Contracting State in which it was acquired; and (b) An annuity or other amount paid in respect of a life insurance or annuity contract (including a withdrawal in respect of the cash value thereof) shall be deemed to arise in a Contracting State if the person paying the annuity or other amount (in this subparagraph referred to as the “payer”) is a resident of that State. However, if the payer, whether a resident of a Contracting State or not, has in a State other than that of which the payer is a resident a permanent establishment in connection with which the obligation giving rise Convention Canada-États-Unis en m to the annuity or other amount was incurred, and the annuity or other amount is borne by the permanent establishment, then the annuity or other amount shall be deemed to arise in the State in which the permanent establishment is situated and not in the State of which the payer is a resident. 2. Paragraph 7 of Article XVIII (Pensions and Annuities) of the Convention shall be deleted and replaced by the following: 7. A natural person who is a citizen or resident of a Contracting State and a beneficiary of a trust, company, organization or other arrangement that is a resident of the other Contracting State, generally exempt from income taxation in that other State and operated exclusively to provide pension or employee benefits may elect to defer taxation in the first-mentioned State, subject to rules established by the competent authority of that State, with respect to any income accrued in the plan but not distributed by the plan, until such time as and to the extent that a distribution is made from the plan or any plan substituted therefor. 3. Article XVIII (Pensions and Annuities) of the Convention shall be amended by adding the following paragraphs: 8. Contributions made to, or benefits accrued under, a qualifying retirement plan in a Contracting State by or on behalf of an individual shall be deductible or excludible in computing the individual’s taxable income in the other Contracting State, and contributions made to the plan by the individual’s employer shall be allowed as a deduction in computing the employer’s profits in that other State, where: (a) The individual performs services as an employee in that other State the remuneration from which is taxable in that other State; (b) The individual was participating in the plan (or another similar plan for which this plan was substituted) immediately before the individual began performing the services in that other State; (c) The individual was not a resident of that other State immediately before the individual began performing the services in that other State; (d) The individual has performed services in that other State for the same employer (or a related employer) for no more than 60 of the 120 months preceding the individual’s current taxation year; (e) The contributions and benefits are attributable to the services performed by the individual in that other State, and are made or accrued during the period in which the individual performs those services; and (f) With respect to contributions and benefits that are attributable to services performed during a period in the individual’s current taxation year, no contributions in respect of the period are made by or on behalf of the individual to, and no services performed in that other State during the period are otherwise taken into account for purposes of determining the individual’s entitlement to benefits under, any plan that would be a qualifying retirement plan in that other State if paragraph 15 of this Article were read without reference to subparagraphs (b) and (c) of that paragraph. C. 32 Canada-United States Tax Co This paragraph shall apply only to the extent that the contributions or benefits would qualify for tax relief in the first-mentioned State if the individual was a resident of and performed the services in that State. 9. For the purposes of United States taxation, the benefits granted under paragraph 8 to a citizen of the United States shall not exceed the benefits that would be allowed by the United States to its residents for contributions to, or benefits otherwise accrued under, a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. 10. Contributions made to, or benefits accrued under, a qualifying retirement plan in a Contracting State by or on behalf of an individual who is a resident of the other Contracting State shall be deductible or excludible in computing the individual’s taxable income in that other State, where: (a) The individual performs services as an employee in the firstmentioned state the remuneration from which is taxable in that State and is borne by an employer who is a resident of that State or by a permanent establishment which the employer has in that State; and (b) The contributions and benefits are attributable to those services and are made or accrued during the period in which the individual performs those services. This paragraph shall apply only to the extent that the contributions or benefits qualify for tax relief in the first-mentioned State 11. For the purposes of Canadian taxation, the amount of contributions otherwise allowed as a deduction under paragraph 10 to an individual for a taxation year shall not exceed the individual’s deduction limit under the law of Canada for the year for contributions to registered retirement savings plans remaining after taking into account the amount of contributions to registered retirement savings plans deducted by the individual under the law of Canada for the year. The amount deducted by an individual under paragraph 10 for a taxation year shall be taken into account in computing the individual’s deduction limit under the law of Canada for subsequent taxation years for contributions to registered retirement savings plans. 12. For the purposes of United States taxation, the benefits granted under paragraph 10 shall not exceed the benefits that would be allowed by the United States to its residents for contributions to, or benefits otherwise accrued under, a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. For purposes of determining an individual’s eligibility to participate in and receive tax benefits with respect to a pension or retirement plan or other retirement arrangement established in and recognized for tax purposes by the United States, contributions made to, or benefits accrued under, a Convention Canada-États-Unis en m qualifying retirement plan in Canada by or on behalf of the individual shall be treated as contributions or benefits under a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. 13. Contributions made to, or benefits accrued under, a qualifying retirement plan in Canada by or on behalf of a citizen of the United States who is a resident of Canada shall be deductible or excludible in computing the citizen’s taxable income in the United States, where: (a) The citizen performs services as an employee in Canada the remuneration from which is taxable in Canada and is borne by an employer who is a resident of Canada or by a permanent establishment which the employer has in Canada; and (b) The contributions and benefits are attributable to those services and are made or accrued during the period in which the citizen performs those services. This paragraph shall apply only to the extent that the contributions or benefits qualify for tax relief in Canada. 14. The benefits granted under paragraph 13 shall not exceed the benefits that would be allowed by the United States to its residents for contributions to, or benefits otherwise accrued under, a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. For purposes of determining an individual’s eligibility to participate in and receive tax benefits with respect to a pension or retirement plan or other retirement arrangement established in and recognized for tax purposes by the United States, contributions made to, or benefits accrued under, a qualifying retirement plan in Canada by or on behalf of the individual shall be treated as contributions or benefits under a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. 15. For purposes of paragraphs 8 to 14, a qualifying retirement plan in a Contracting State means a trust, company, organization or other arrangement: (a) That is a resident of that State, generally exempt from income taxation in that State and operated primarily to provide pension or retirement benefits; (b) That is not an individual arrangement in respect of which the individual’s employer has no involvement; and (c) Which the competent authority of the other Contracting State agrees generally corresponds to a pension or retirement plan established in and recognized for tax purposes by that other State. C. 32 Canada-United States Tax Co 16. For purposes of this Article, a distribution from a pension or retirement plan that is reasonably attributable to a contribution or benefit for which a benefit was allowed pursuant to paragraph 8, 10 or 13 shall be deemed to arise in the Contracting State in which the plan is established. 17. Paragraphs 8 to 16 apply, with such modifications as the circumstances require, as though the relationship between a partnership that carries on a business, and an individual who is a member of the partnership, were that of employer and employee. ARTICLE 14 Article XIX (Government Service) of the Convention shall be amended by deleting the words “XIV (Independent Personal Services)” and replacing them with the words “VII (Business Profits)” and by deleting the words “XV (Dependent Personal Services) and replacing them with the words “XV (Income from Employment)”. ARTICLE 15 Article XX (Students) of the Convention shall be deleted and replaced by the following: Payments received by an individual who is a student, apprentice, or business trainee, and is, or was immediately before visiting a Contracting State, a resident of the other Contracting State, and who is present in the first-mentioned State for the purpose of the individual’s full-time education or full-time training, shall not be taxed in that State, provided that such payments arise outside that State, and are for the purpose of the maintenance, education or training of the individual. The provisions of this Article shall apply to an apprentice or business trainee only for a period of time not exceeding one year from the date the individual first arrives in the first-mentioned State for the purpose of the individual’s training. ARTICLE 16 1. Paragraphs 4, 5 and 6 of Article XXI (Exempt Organizations) of the Convention shall be renumbered as paragraphs 5, 6 and 7 respectively. 2. Paragraphs 1 through 3 of Article XXI (Exempt Organizations) of the Convention shall be deleted and replaced by the following four paragraphs: 1. Subject to the provisions of paragraph 4, income derived by a religious, scientific, literary, educational or charitable organization shall be exempt from tax in a Contracting State if it is resident in the other Contracting State, but only to the extent that such income is exempt from tax in that other State. 2. Subject to the provisions of paragraph 4, income referred to in Articles X (Dividends) and XI (Interest) derived by a trust, company, organization or other arrangement that is a resident of a Contracting State, generally exempt from income taxation in a taxable year in that State and operated exclusively to administer or provide pension, retirement or employee benefits shall be exempt from income taxation in that taxable year in the other Contracting State. Convention Canada-États-Unis en m 3. Subject to the provisions of paragraph 4, income referred to in Articles X (Dividends) and XI (Interest) derived by a trust, company, organization or other arrangement that is a resident of a Contracting State, generally exempt from income taxation in a taxable year in that State and operated exclusively to earn income for the benefit of one or more of the following: (a) An organization referred to in paragraph 1; or (b) A trust, company, organization or other arrangement referred to in paragraph 2; shall be exempt from income taxation in that taxable year in the other Contracting State. 4. The provisions of paragraphs 1, 2 and 3 shall not apply with respect to the income of a trust, company, organization or other arrangement from carrying on a trade or business or from a related person other than a person referred to in paragraphs 1, 2 or 3. ARTICLE 17 Article XXII (Other Income) of the Convention shall be amended by adding the following paragraph: 4. Notwithstanding the provisions of paragraph 1, compensation derived by a resident of a Contracting State in respect of the provision of a guarantee of indebtedness shall be taxable only in that State, unless such compensation is business profits attributable to a permanent establishment situated in the other Contracting State, in which case the provisions of Article VII (Business Profits) shall apply. ARTICLE 18 Paragraph 2 of Article XXIII (Capital) of the Convention shall be amended by deleting the phrase “, or by personal property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services,”. ARTICLE 19 Subparagraph 2(b) of Article XXIV (Elimination of Double Taxation) of the Convention shall be deleted and replaced with the following: (b) In the case of a company which is a resident of Canada owning at least 10 percent of the voting stock of a company which is a resident of the United States from which it receives dividends in any taxable year, Canada shall allow as a credit against the Canadian tax on income the appropriate amount of income tax paid or accrued to the United States by the second company with respect to the profits out of which the dividends are paid. ARTICLE 20 1. Paragraph 1 of Article XXV (Non-Discrimination) of the Convention shall be deleted and replaced by the following: 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith that is more burdensome than the taxation and connected requirements to which nationals of that other State in the same C. 32 Canada-United States Tax Co circumstances, particularly with respect to taxation on worldwide income, are or may be subjected. This provision shall also apply to individuals who are not residents of one or both of the Contracting States. 2. Paragraph 2 of Article XXV (Non-Discrimination) of the Convention shall be deleted, and paragraphs 3 to 10 of Article XXV shall be renumbered accordingly. 3. Renumbered paragraph 3 of Article XXV (Non-Discrimination) of the Convention shall be amended by deleting the words “Article XV (Dependent Personal Services)” and replacing them with the words “Article XV (Income from Employment)”. ARTICLE 21 1. Paragraph 6 of Article XXVI (Mutual Agreement Procedure) of the Convention shall be deleted and replaced by the following: 6. Where, pursuant to a mutual agreement procedure under this Article, the competent authorities have endeavored but are unable to reach a complete agreement in a case, the case shall be resolved through arbitration conducted in the manner prescribed by, and subject to, the requirements of paragraph 7 and any rules or procedures agreed upon by the Contracting States by notes to be exchanged through diplomatic channels, if: (a) Tax returns have been filed with at least one of the Contracting States with respect to the taxable years at issue in the case; (b) The case: (i) Is a case that: (A) Involves the application of one or more Articles that the competent authorities have agreed in an exchange of notes shall be the subject of arbitration; and (B) Is not a particular case that the competent authorities agree, before the date on which arbitration proceedings would otherwise have begun, is not suitable for determination by arbitration; or (ii) Is a particular case that the competent authorities agree is suitable for determination by arbitration; and (c) All concerned persons agree according to the provisions of subparagraph 7(d). 7. For the purposes of paragraph 6 and this paragraph, the following rules and definitions shall apply: (a) The term “concerned person” means the presenter of a case to a competent authority for consideration under this Article and all other persons, if any, whose tax liability to either Contracting State may be directly affected by a mutual agreement arising from that consideration; (b) The “commencement date” for a case is the earliest date on which the information necessary to undertake substantive consideration for a mutual agreement has been received by both competent authorities; (c) Arbitration proceedings in a case shall begin on the later of: Convention Canada-États-Unis en m (i) Two years after the commencement date of that case, unless both competent authorities have previously agreed to a different date, and (ii) The earliest date upon which the agreement required by subparagraph (d) has been received by both competent authorities; (d) The concerned person(s), and their authorized representatives or agents, must agree prior to the beginning of arbitration proceedings not to disclose to any other person any information received during the course of the arbitration proceeding from either Contracting State or the arbitration board, other than the determination of such board; (e) Unless a concerned person does not accept the determination of an arbitration board, the determination shall constitute a resolution by mutual agreement under this Article and shall be binding on both Contracting States with respect to that case; and (f) For purposes of an arbitration proceeding under paragraph 6 and this paragraph, the members of the arbitration board and their staffs shall be considered “persons or authorities” to whom information may be disclosed under Article XXVII (Exchange of Information) of this Convention. ARTICLE 22 1. Subparagraph 8(a) of Article XXVI A (Assistance in Collection) of the Convention shall be deleted and replaced by the following: (a) Where the taxpayer is an individual, the revenue claim relates either to a taxable period in which the taxpayer was a citizen of the requested State or, if the taxpayer became a citizen of the requested State at any time before November 9, 1995 and is such a citizen at the time the applicant State applies for collection of the claim, to a taxable period that ended before November 9, 1995; and 2. Paragraph 9 of Article XXVI A (Assistance in Collection) of the Convention shall be deleted and replaced by the following: 9. Notwithstanding the provisions of Article II (Taxes Covered), the provisions of this Article shall apply to all categories of taxes collected, and to contributions to social security and employment insurance premiums levied, by or on behalf of the Government of a Contracting State. ARTICLE 23 Article XXVII (Exchange of Information) of the Convention shall be deleted and replaced by the following: Article XXVII Exchange of Information 1. The competent authorities of the Contracting States shall exchange such information as may be relevant for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes to which this Convention applies insofar as the taxation thereunder is not contrary to this Convention. The exchange of information is not restricted by Article I (Personal Scope). Any information received by a Contracting State C. 32 Canada-United States Tax Co shall be treated as secret in the same manner as information obtained under the taxation laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the administration and enforcement in respect of, or the determination of appeals in relation to the taxes to which this Convention applies or, notwithstanding paragraph 4, in relation to taxes imposed by a political subdivision or local authority of a Contracting State that are substantially similar to the taxes covered by this Convention under Article II (Taxes Covered). Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The competent authorities may release to an arbitration board established pursuant to paragraph 6 of Article XXVI (Mutual Agreement Procedure) such information as is necessary for carrying out the arbitration procedure; the members of the arbitration board shall be subject to the limitations on disclosure described in this Article. 2. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information because it has no domestic interest in such information. 3. In no case shall the provisions of paragraph 1 and 2 be construed so as to impose on a Contracting State the obligation: (a) To carry out administrative measures at variance with the laws and administrative practice of that State or of the other Contracting State; (b) To supply information which is not obtainable under the laws or in the normal course of the administration of that State or of the other Contracting State; or (c) To supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). 4. For the purposes of this Article, this Convention shall apply, notwithstanding the provisions of Article II (Taxes Covered): (a) To all taxes imposed by a Contracting State; and (b) To other taxes to which any other provision of this Convention applies, but only to the extent that the information may be relevant for the purposes of the application of that provision. Convention Canada-États-Unis en m 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. 6. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under this Article in the form of depositions of witnesses and authenticated copies of unedited original documents (including books, papers, statements, records, accounts, and writings). 7. The requested State shall allow representatives of the requesting State to enter the requested State to interview individuals and examine books and records with the consent of the persons subject to examination. ARTICLE 24 1. Paragraph 2 of Article XXIX (Miscellaneous Rules) of the Convention shall be deleted and replaced by the following: 2. (a) Except to the extent provided in paragraph 3, this Convention shall not affect the taxation by a Contracting State of its residents (as determined under Article IV (Residence)) and, in the case of the United States, its citizens and companies electing to be treated as domestic corporations. (b) Notwithstanding the other provisions of this Convention, a former citizen or former long-term resident of the United States, may, for the period of ten years following the loss of such status, be taxed in accordance with the laws of the United States with respect to income from sources within the United States (including income deemed under the domestic law of the United States to arise from such sources). 2. Subparagraph 3(a) of Article XXIX (Miscellaneous Rules) shall be deleted and replaced by the following: (a) Under paragraphs 3 and 4 of Article IX (Related Persons), paragraphs 6 and 7 of Article XIII (Gains), paragraphs 1, 3, 4, 5, 6 (b), 7, 8, 10 and 13 of Article XVIII (Pensions and Annuities), paragraph 5 of Article XXIX (Miscellaneous Rules), paragraphs 1, 5, and 6 of Article XXIX B (Taxes Imposed by Reason of Death), paragraphs 2, 3, 4, and 7 of Article XXIX B (Taxes Imposed by Reason of Death) as applied to estates of persons other than former citizens referred to in paragraph 2 of this Article, paragraphs 3 and 5 of Article XXX (Entry into Force), and Articles XIX (Government Service), XXI (Exempt Organizations), XXIV (Elimination of Double Taxation), XXV (NonDiscrimination) and XXVI (Mutual Agreement Procedure); ARTICLE 25 Article XXIX A (Limitation on Benefits) of the Convention shall be deleted and replaced by the following: C. 32 Canada-United States Tax Co Article XXIX A Limitation on Benefits 1. For the purposes of the application of this Convention by a Contracting State, (a) a qualifying person shall be entitled to all of the benefits of this Convention; and (b) except as provided in paragraphs 3, 4 and 6, a person that is not a qualifying person shall not be entitled to any benefits of this Convention. 2. For the purposes of this Article, a qualifying person is a resident of a Contracting State that is: (a) a natural person; (b) a Contracting State or a political subdivision or local authority thereof, or any agency or instrumentality of any such State, subdivision or authority; (c) a company or trust whose principal class of shares or units (and any disproportionate class of shares or units) is primarily and regularly traded on one or more recognized stock exchanges; (d) a company, if five or fewer persons each of which is a company or trust referred to in subparagraph (c) own directly or indirectly more than 50 percent of the aggregate vote and value of the shares and more than 50 percent of the vote and value of each disproportionate class of shares (in neither case including debt substitute shares), provided that each company or trust in the chain of ownership is a qualifying person; (e) (i) a company, 50 percent or more of the aggregate vote and value of the shares of which and 50 percent or more of the vote and value of each disproportionate class of shares (in neither case including debt substitute shares) of which is not owned, directly or indirectly, by persons other than qualifying persons; or (ii) a trust, 50 percent or more of the beneficial interest in which and 50 percent or more of each disproportionate interest in which, is not owned, directly or indirectly, by persons other than qualifying persons; where the amount of the expenses deductible from gross income (as determined in the State of residence of the company or trust) that are paid or payable by the company or trust, as the case may be, for its preceding fiscal period (or, in the case of its first fiscal period, that period) directly or indirectly, to persons that are not qualifying persons is less than 50 percent of its gross income for that period; (f) an estate; (g) a not-for-profit organization, provided that more than half of the beneficiaries, members or participants of the organization are qualifying persons; (h) a trust, company, organization or other arrangement described in paragraph 2 of Article XXI (Exempt Organizations) and established for the purpose of providing benefits primarily to individuals who are qualifying persons, or persons who were qualifying persons within the five preceding years; or Convention Canada-États-Unis en m (i) a trust, company, organization or other arrangement described in paragraph 3 of Article XXI (Exempt Organizations) provided that the beneficiaries of the trust, company, organization or other arrangement are described in subparagraph (g) or (h). 3. Where a person is a resident of a Contracting State and is not a qualifying person, and that person, or a person related thereto, is engaged in the active conduct of a trade or business in that State (other than the business of making or managing investments, unless those activities are carried on with customers in the ordinary course of business by a bank, an insurance company, a registered securities dealer or a deposit-taking financial institution), the benefits of this Convention shall apply to that resident person with respect to income derived from the other Contracting State in connection with or incidental to that trade or business (including any such income derived directly or indirectly by that resident person through one or more other persons that are residents of that other State), but only if that trade or business is substantial in relation to the activity carried on in that other State giving rise to the income in respect of which benefits provided under this Convention by that other State are claimed. 4. A company that is a resident of a Contracting State shall also be entitled to the benefits of Articles X (Dividends), XI (Interest) and XII (Royalties) if: (a) Its shares that represent more than 90 percent of the aggregate vote and value of all of its shares and at least 50 percent of the vote and value of any disproportionate class of shares (in neither case including debt substitute shares) are owned, directly or indirectly, by persons each of whom is a qualifying person or a person who: (i) Is a resident of a country with which the other Contracting State has a comprehensive income tax convention and is entitled to all of the benefits provided by that other State under that convention; (ii) Would qualify for benefits under paragraphs 2 or 3 if that person were a resident of the first-mentioned State (and, for the purposes of paragraph 3, if the business it carried on in the country of which it is a resident were carried on by it in the first-mentioned State); and (iii) Would be entitled to a rate of tax in the other Contracting State under the convention between that person’s country of residence and that other State, in respect of the particular class of income for which benefits are being claimed under this Convention, that is at least as low as the rate applicable under this Convention; and (b) The amount of the expenses deductible from gross income (as determined in the company’s State of residence) that are paid or payable by the company for its preceding fiscal period (or, in the C. 32 Canada-United States Tax Co case of its first fiscal period, that period) directly or indirectly to persons that are not qualifying persons is less than 50 percent of the company’s gross income for that period. 5. For the purposes of this Article, (a) The term “debt substitute share” means: (i) A share described in paragraph (e) of the definition “term preferred share” in the Income Tax Act, as it may be amended from time to time without changing the general principle thereof; and (ii) Such other type of share as may be agreed upon by the competent authorities of the Contracting States. (b) The term “disproportionate class of shares” means any class of shares of a company resident in one of the Contracting States that entitles the shareholder to disproportionately higher participation, through dividends, redemption payments or otherwise, in the earnings generated in the other State by particular assets or activities of the company; (c) The term “disproportionate interest in a trust” means any interest in a trust resident in one of the Contracting States that entitles the interest holder to disproportionately higher participation in, or claim to, the earnings generated in the other State by particular assets or activities of the trust; (d) The term “not-for-profit organization” of a Contracting State means an entity created or established in that State and that is, by reason of its not-for-profit status, generally exempt from income taxation in that State, and includes a private foundation, charity, trade union, trade association or similar organization; (e) The term “principal class of shares” of a company means the ordinary or common shares of the company, provided that such class of shares represents the majority of the voting power and value of the company. If no single class of ordinary or common shares represents the majority of the aggregate voting power and value of the company, the “principal class of shares” are those classes that in the aggregate represent a majority of the aggregate voting power and value of the company; and (f) The term “recognized stock exchange” means: (i) The NASDAQ System owned by the National Association of Securities Dealers, Inc. and any stock exchange registered with the Securities and Exchange Commission as a national securities exchange for purposes of the Securities Exchange Act of 1934; (ii) Canadian stock exchanges that are “prescribed stock exchanges” or “designated stock exchanges” under the Income Tax Act; and (iii) Any other stock exchange agreed upon by the Contracting States in an exchange of notes or by the competent authorities of the Contracting States. Convention Canada-États-Unis en m 6. Where a person that is a resident of a Contracting State is not entitled under the preceding provisions of this Article to the benefits provided under this Convention by the other Contracting State, the competent authority of that other State shall, upon that person’s request, determine on the basis of all factors including the history, structure, ownership and operations of that person whether: (a) Its creation and existence did not have as a principal purpose the obtaining of benefits under this Convention that would not otherwise be available; or (b) It would not be appropriate, having regard to the purpose of this Article, to deny the benefits of this Convention to that person. The person shall be granted the benefits of this Convention by that other State where the competent authority determines that subparagraph (a) or (b) applies. 7. It is understood that this Article shall not be construed as restricting in any manner the right of a Contracting State to deny benefits under this Convention where it can reasonably be concluded that to do otherwise would result in an abuse of the provisions of this Convention. ARTICLE 26 1. Paragraph 1 of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention shall be deleted and replaced by the following: 1. Where the property of an individual who is a resident of a Contracting State passes by reason of the individual’s death to an organization that is referred to in paragraph 1 of Article XXI (Exempt Organizations) and that is a resident of the other Contracting State, (a) If the individual is a resident of the United States and the organization is a resident of Canada, the tax consequences in the United States arising out of the passing of the property shall apply as if the organization were a resident of the United States; and (b) If the individual is a resident of Canada and the organization is a resident of the United States, the tax consequences in Canada arising out of the passing of the property shall apply as if the individual had disposed of the property for proceeds equal to an amount elected on behalf of the individual for this purpose (in a manner specified by the competent authority of Canada), which amount shall be no less than the individual’s cost of the property as determined for purposes of Canadian tax and no greater than the fair market value of the property. 2. Paragraph 5 of Article XXIX B (Taxes Imposed by Reason of Death) of the Convention shall be deleted and replaced by the following: 5. Where an individual was a resident of the United States immediately before the individual’s death, for the purposes of subsections 70 (5.2) and (6) of the Income Tax Act, both the individual and the individual’s spouse shall be deemed to have been resident in Canada immediately before the individual’s death. Where a trust that would be a trust described in subsection 70(6) of that Act, if its trustees that were residents or citizens of the United States or C. 32 Canada-United States Tax Co domestic corporations under the law of the United States were residents of Canada, requests the competent authority of Canada to do so, the competent authority may agree, subject to terms and conditions satisfactory to such competent authority, to treat the trust for the purposes of that Act as being resident in Canada for such time and with respect to such property as may be stipulated in the agreement. ARTICLE 27 1. This Protocol shall be subject to ratification in accordance with the applicable procedures in the United States and Canada. The Contracting States shall notify each other in writing, through diplomatic channels, when their respective applicable procedures have been satisfied. 2. This Protocol shall enter into force on the date of the later of the notifications referred to in paragraph 1, or January 1, 2008, whichever is later. The provisions of this Protocol shall have effect: (a) In respect of taxes withheld at source, for amounts paid or credited on or after the first day of the second month that begins after the date on which this Protocol enters into force; (b) In respect of other taxes, for taxable years that begin after (or, if the later of the notifications referred to in paragraph 1 is dated in 2007, taxable years that begin in and after) the calendar year in which this Protocol enters into force. 3. Notwithstanding paragraph 2, (a) Paragraph 1 of Article 2 of this Protocol shall have effect with respect to corporate continuations effected after September 17, 2000; (b) New paragraph 7 of Article IV (Residence) of the Convention as added by Article 2 of this Protocol shall have effect as of the first day of the third calendar year that ends after this Protocol enters into force; (c) Article 3 of this Protocol shall have effect as of the third taxable year that ends after this Protocol enters into force, but in no event shall it apply to include, in the determination of whether an enterprise is deemed to provide services through a permanent establishment under paragraph 9 of Article V (Permanent Establishment) of the Convention, any days of presence, services rendered, or gross active business revenues that occur or arise prior to January 1, 2010; (d) In applying Article 6 of this Protocol to interest paid or credited during the first two calendar years that end after entry into force of this Protocol, paragraph 1 of Article XI (Interest) of the Convention shall be read as follows: 1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed only in that other State. However, if the interest is not exempt under paragraph 3 of Article XI (Interest) as it read on January 1, 2007, and the payer of the interest and the beneficial owner of the interest are related, or would be deemed to be related if the Convention Canada-États-Unis en m provisions of paragraph 2 of Article IX (Related Persons) applied for this purpose, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but the tax so charged shall not exceed the following percentage of the gross amount of the interest: (a) If the interest is paid or credited during the first calendar year that ends after entry into force of this paragraph, 7 percent; and (b) If the interest is paid or credited during the second calendar year that ends after entry into force of this paragraph, 4 percent; (e) Paragraphs 2 and 3 of Article 8 of this Protocol shall have effect with respect to alienations of property that occur (including, for greater certainty, those that are deemed under the law of a Contracting State to occur) after September 17, 2000; (f) Article 21 of this Protocol shall have effect with respect to (i) Cases that are under consideration by the competent authorities as of the date on which this Protocol enters into force; and (ii) Cases that come under such consideration after that time, and the commencement date for a case described in subparagraph (f)(i) shall be the date on which the Protocol enters into force; and (g) Article 22 of this Protocol shall have effect for revenue claims finally determined by an applicant State after November 9, 1985. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Protocol. DONE in duplicate at Chelsea this twenty-first day of September 2007 in the English and French languages, each text being equally authentic. FOR THE GOVERNMENT OF CANADA: James M. Flaherty FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA Henry M. Paulson, Jr. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 8 An Act to provide for the resumption and continuation of railway operations ASSENTED TO 18th APRIL, 2007 BILL C-46 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to provide for the resumption and continuation of railway operations”. SUMMARY This enactment provides for the resumption and continuation of railway operations and imposes a final offer selection process to resolve matters remaining in dispute between the parties. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO PROVIDE FOR THE RESUMPTION AND CONTINUATION OR RAILWAY OPERATIONS SHORT TITLE 1. Railway Continuation Act, 2007 INTERPRETATION 2. Definitions 3. Resumption or continuation of railway operations RAILWAY OPERATIONS OBLIGATIONS 4. Obligations of employer 5. Obligations of union EXTENSION OF EACH COLLECTIVE AGREEMENT 6. Extension of each collective agreement 7. Strikes and lockouts prohibited FINAL OFFER SELECTION 8. Appointment of arbitrator 9. Powers of arbitrator 10. Obligation to provide final offer 11. Duties of arbitrator 12. Proceedings prohibited 13. New collective agreements not precluded NEW COLLECTIVE AGREEMENTS 14. New collective agreements COSTS 15. Costs AMENDMENT OF NEW COLLECTIVE AGREEMENTS 16. Amendments i ENFORCEMENT 17. Individuals 18. No imprisonment 19. Recovery of fines 20. Presumption 21. Coming into force COMING INTO FORCE 55-56 ELIZABETH II —————— CHAPTER 8 An Act to provide for the resumption and continuation of railway operations [Assented to 18th April, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Railway Continuation Act, 2007. INTERPRETATION Definitions “arbitrator” « arbitre » “collective agreement” « convention collective » 2. (1) The following definitions apply in this Act. “arbitrator” means the arbitrator appointed under section 8. “collective agreement” means each of the collective agreements 4.16, 4.2 and 4.3 between the employer and the union that expired on December 31, 2006 and the BC Rail agreement referred to in the protocol signed by representatives of the employer and the union on February 24, 2007, and includes any related arrangements between the employer and the union concerning terms and conditions of employment or benefits related to employment. “employee” « employé » “employee” means a person employed by the employer and bound by a collective agreement. “employer” « employeur » “employer” means the Canadian National Railway Company. “Minister” « ministre » “Minister” means the Minister of Labour. 2 “union” « syndicat » Words and expressions C. 8 Railway Conti “union” means the United Transportation Union, or any other trade union certified by the Canada Industrial Relations Board to represent the employees. (2) Unless otherwise provided, words and expressions used in this Act have the same meaning as in Part I of the Canada Labour Code. RAILWAY OPERATIONS Resumption or continuation of railway operations 3. On the coming into force of this Act, (a) the employer shall resume without delay, or continue, as the case may be, operation of railway and subsidiary services; and (b) every employee shall, when so required, resume without delay, or continue, as the case may be, the duties of that employee’s employment. OBLIGATIONS Obligations of employer 4. Neither the employer nor any officer or representative of the employer shall (a) in any manner impede any employee from complying with paragraph 3(b); or (b) discharge or in any other manner discipline, or authorize or direct the discharge or discipline of, any employee by reason of that employee’s having been on strike before the coming into force of this Act. Obligations of union 5. The union and each officer and representative of the union shall (a) without delay on the coming into force of this Act, give notice to the employees that, by reason of that coming into force, operation of railway and subsidiary services are to be resumed or continued, as the case may be, and that the employees, when so required, are to resume without delay, or continue, as the case may be, the duties of their employment; (b) take all reasonable steps to ensure that employees comply with paragraph 3(b); and (c) refrain from any conduct that may encourage employees not to comply with paragraph 3(b). 2006-2007 Maintien des service EXTENSION OF EACH COLLECTIVE AGREEMENT Extension of each collective agreement 6. (1) The term of each collective agreement is extended to include the period beginning on January 1, 2007 and ending on the day on which new collective agreements between the employer and the union come into effect. Collective agreement binding for extended term (2) Each collective agreement, as extended by subsection (1), is effective and binding on the parties to it during the period for which it is extended despite anything in the collective agreement or in Part I of the Canada Labour Code. That Part applies in respect of the collective agreement, as extended, as if that period were the term of the collective agreement. Strikes and lockouts prohibited 7. During the term of each collective agreement, as extended by subsection 6(1), (a) the employer shall not declare or cause a lockout against the union; (b) no officer or representative of the union shall declare or authorize a strike against the employer; and (c) no employee shall participate in a strike against the employer. FINAL OFFER SELECTION Appointment of arbitrator 8. The Minister shall appoint as arbitrator for final offer selection a person that the Minister considers appropriate. Powers of arbitrator 9. The arbitrator has, with any modifications that the circumstances require, all the powers and duties of an arbitrator under sections 60 and 61 of the Canada Labour Code. Obligation to provide final offer 10. (1) Within the time and in the manner that the arbitrator may specify, the employer and the union shall each submit to the arbitrator (a) a list of the matters on which the employer and the union were in agreement as of a date specified by the arbitrator and proposed contractual language that would give effect to those matters; (b) a list of the matters remaining in dispute on that date; and C. 8 Railway Conti (c) a final offer in respect of the matters referred to in paragraph (b). Contractual language (2) The final offer must be submitted with proposed contractual language that can be incorporated into the new collective agreements. Duties of arbitrator 11. (1) Subject to section 13, within 90 days after being appointed, or within any greater period that may be specified by the Minister, the arbitrator shall (a) determine the matters on which the employer and the union were in agreement as of the date specified for the purposes of paragraph 10(1)(a); (b) determine the matters remaining in dispute on that date; (c) select, in order to resolve the matters remaining in dispute, either the final offer submitted by the employer or the final offer submitted by the union; (d) make a decision in respect of the resolution of the matters referred to in this subsection and send a copy of the decision to the employer and the union; and (e) forward a copy of the decision to the Minister. Where no final offer submitted (2) If either the employer or the union fails to provide the arbitrator with a final offer in accordance with paragraph 10(1)(c), the arbitrator shall select the final offer provided by the other party. Contractual language (3) The arbitrator’s decision shall be drafted in such manner as to constitute new collective agreements between the employer and the union and, to the extent that it is possible, incorporate the contractual language referred to in paragraph 10(1)(a) and the final offer selected by the arbitrator. Proceedings prohibited 12. No order may be made, no process may be entered into and no proceeding may be taken in court (a) to question the appointment of the arbitrator; or (b) to review, prohibit or restrain any proceeding or decision of the arbitrator. 2006-2007 New collective agreements not precluded Maintien des service 13. Nothing in this Act precludes the employer and the union from entering into new collective agreements at any time before the arbitrator makes a decision and, if they do so, the arbitrator’s duties under this Act cease as of the day on which the new collective agreements are entered into. NEW COLLECTIVE AGREEMENTS New collective agreements 14. (1) The arbitrator’s decision constitutes new collective agreements between the employer and the union effective as of the day on which it is made despite anything in Part I of the Canada Labour Code. That Part applies in respect of the new collective agreements as if they had been entered into under that Part. Coming into effect of provisions (2) The new collective agreements may provide that any of their provisions are effective and binding on a day that is before or after the day on which the new collective agreements become effective and binding. COSTS Costs 15. All costs incurred by Her Majesty in right of Canada relating to the appointment of the arbitrator and the exercise of the arbitrator’s duties under this Act are debts due to Her Majesty in right of Canada and may be recovered as such, in equal parts from the employer and the union, in any court of competent jurisdiction. AMENDMENT OF NEW COLLECTIVE AGREEMENTS Amendments 16. Nothing in this Act shall be construed so as to limit or restrict the rights of the parties to agree to amend any provision of the new collective agreements referred to in section 14, other than a provision relating to their term, and to give effect to the amendment. ENFORCEMENT Individuals 17. (1) An individual who contravenes any provision of this Act is guilty of an offence punishable on summary conviction and is liable, for each day or part of a day during which the offence continues, to a fine of C. 8 Railway Conti (a) not more than $50,000 if the individual was acting in the capacity of an officer or representative of the employer or the union when the offence was committed; or (b) not more than $1,000 in any other case. Employer or union (2) If the employer or the union contravenes any provision of this Act, it is guilty of an offence punishable on summary conviction and is liable, for each day or part of a day during which the offence continues, to a fine of not more than $100,000. No imprisonment 18. Despite subsection 787(2) of the Criminal Code, a term of imprisonment may not be imposed in default of payment of a fine that is imposed under section 17. Recovery of fines 19. If a person is convicted of an offence under section 17 and the fine that is imposed is not paid when required, the prosecutor may, by filing the conviction, enter as a judgment the amount of the fine and costs, if any, in a superior court of the province in which the trial was held, and the judgment is enforceable against the person in the same manner as if it were a judgment rendered against the person in that court in civil proceedings. Presumption 20. For the purposes of this Act, the union is deemed to be a person. COMING INTO FORCE Coming into force 21. This Act comes into force on the expiry of the twenty-fourth hour after the time at which it is assented to. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 9 An Act to amend the Criminal Code (criminal interest rate) ASSENTED TO 3rd MAY, 2007 BILL C-26 SUMMARY This enactment amends the Criminal Code by exempting persons from the application of section 347 of that Act in respect of agreements for small, shortterm loans. The exemption applies to persons who are licensed or otherwise authorized to enter into such agreements by designated provinces that have legislative measures that protect recipients of payday loans and that specify a limit on the total cost of those loans. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 9 An Act to amend the Criminal Code (criminal interest rate) [Assented to 3rd May, 2007] R.S., c. C-46 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Subsection 347(1) of the Criminal Code is replaced by the following: Criminal interest rate 347. (1) Despite any other Act of Parliament, every one who enters into an agreement or arrangement to receive interest at a criminal rate, or receives a payment or partial payment of interest at a criminal rate, is (a) guilty of an indictable offence and liable to imprisonment for a term not exceeding five years; or (b) guilty of an offence punishable on summary conviction and liable to a fine not exceeding $25,000 or to imprisonment for a term not exceeding six months or to both. 2. The Act is amended by adding the following after section 347: Definitions “interest” « intérêts » “payday loan” « prêt sur salaire » 347.1 (1) The following definitions apply in subsection (2). “interest” has the same meaning as in subsection 347(2). “payday loan” means an advancement of money in exchange for a post-dated cheque, a preauthorized debit or a future payment of a similar nature but not for any guarantee, suretyship, overdraft protection or security on property and not through a margin loan, pawnbroking, a line of credit or a credit card. C. 9 Non-application (2) Section 347 and section 2 of the Interest Act do not apply to a person, other than a financial institution within the meaning of paragraphs (a) to (d) of the definition “financial institution” in section 2 of the Bank Act, in respect of a payday loan agreement entered into by the person to receive interest, or in respect of interest received by that person under the agreement, if Criminal Code (crim (a) the amount of money advanced under the agreement is $1,500 or less and the term of the agreement is 62 days or less; (b) the person is licensed or otherwise specifically authorized under the laws of a province to enter into the agreement; and (c) the province is designated under subsection (3). Designation of province (3) The Governor in Council shall, by order and at the request of the lieutenant governor in council of a province, designate the province for the purposes of this section if the province has legislative measures that protect recipients of payday loans and that provide for limits on the total cost of borrowing under the agreements. Revocation (4) The Governor in Council shall, by order, revoke the designation made under subsection (3) if requested to do so by the lieutenant governor in council of the province or if the legislative measures described in that subsection are no longer in force in that province. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Thirty-ninth Parliament, 56 Elizabeth II, 2007 STATUTES OF CANADA 2007 CHAPTER 33 An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the CanadaNova Scotia Offshore Petroleum Resources Accord Implementation Act ASSENTED TO 14th DECEMBER, 2007 BILL C-15 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act”. SUMMARY This enactment provides a legal regime to facilitate the exploitation of the Donkin coal block and to regulate employment in or in connection with the operation of any mine that is wholly or partly at the Donkin coal block. It gives the Governor in Council the authority to incorporate Nova Scotia laws into federal law by regulation, and gives Nova Scotia the power to enforce those laws. It further governs the royalties from the exploitation of the portion of the Donkin coal block in frontier lands, including providing for payment of the amount of the royalties to Nova Scotia after the royalties have been paid to the Receiver General. It also makes a consequential amendment to the CanadaNova Scotia Offshore Petroleum Resources Accord Implementation Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT RESPECTING THE EXPLOITATION OF THE DONKIN COAL BLOCK AND EMPLOYMENT IN OR IN CONNECTION WITH THE OPERATION OF A MINE THAT IS WHOLLY OR PARTLY AT THE DONKIN COAL BLOCK, AND TO MAKE A CONSEQUENTIAL AMENDMENT TO THE CANADA-NOVA SCOTIA OFFSHORE PETROLEUM RESOURCES ACCORD IMPLEMENTATION ACT SHORT TITLE 1. Donkin Coal Block Development Opportunity Act INTERPRETATION 2. Definitions 3. Interpretation PURPOSE 4. Purpose HER MAJESTY 5. Binding on Her Majesty APPLICATION 6. Application 7. Non-application of certain Acts DELEGATION 8. Minister may delegate 9. Royalties 10. Remittance to Receiver General 11. Debts due to Her Majesty ROYALTIES AGREEMENT 12. Agreement concerning royalties, etc. 13. Recommendation of Minister of Labour REGULATIONS i 14. User Fees Act does not apply 15. Administration and enforcement CONSEQUENTIAL AMENDMENT TO THE CANADA-NOVA SCOTIA OFFSHORE PETROLEUM RESOURCES ACCORD IMPLEMENTATION ACT 16. Amendment SCHEDULE 56 ELIZABETH II —————— CHAPTER 33 An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act [Assented to 14th December, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Donkin Coal Block Development Opportunity Act. INTERPRETATION Definitions 2. The following definitions apply in this Act. “Donkin coal block” « réserve de charbon Donkin » “Donkin coal block” means the coal and coalbed methane deposits located in the area described in the schedule. “exploitation” « exploitation » “frontier lands” « terres domaniales » “exploitation” includes the exploration, development and reclamation of a coal block, as well as the operation of a mine that is wholly or partly at the coal block. “frontier lands” means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources, and that are situated in (a) the Northwest Territories, Nunavut or Sable Island; or C. 33 Donkin Coal Block Dev (b) submarine areas, not within a province, in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada. However, it does not include the adjoining area, as defined in section 2 of the Yukon Act. “Minister” « ministre » “operation” « exploitation » “Province” « province » Interpretation “Minister” means the Minister of Natural Resources. “operation” includes the development, construction and abandonment of a mine, as well as exploration for a mine. “Province” means Nova Scotia. 3. For greater certainty, this Act shall not be interpreted as providing a basis for any claim by or on behalf of any province in respect of any interest in or legislative jurisdiction over any frontier lands, or any living or non-living resources of any frontier lands, or as limiting the application of any federal law that is not specifically limited under this Act. PURPOSE Purpose 4. The purpose of this Act is to provide a legal regime within a cooperative framework to facilitate the exploitation of the Donkin coal block and to regulate employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block. HER MAJESTY Binding on Her Majesty 5. This Act is binding on Her Majesty in right of Canada and of the Province. APPLICATION Application 6. This Act applies to the exploitation of the Donkin coal block and to employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block. Non-application of certain Acts 7. Except as otherwise provided in the regulations, the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act Réserve de ch and the Federal Real Property and Federal Immovables Act, and all regulations made under those Acts, do not apply to the Donkin coal block. DELEGATION Minister may delegate 8. Subject to section 15, the Minister may delegate to any person any power, function or duty that the Minister considers necessary for the administration of the exploitation of the Donkin coal block. ROYALTIES Royalties 9. There is hereby reserved to Her Majesty in right of Canada the royalties on coal and coalbed methane from the portions of the Donkin coal block that lie in frontier lands, as well as related interest and penalties. Remittance to Receiver General 10. (1) The Province shall remit to the Receiver General, in accordance with the terms of any agreement referred to in section 12, all royalties, interest and penalties reserved to Her Majesty in right of Canada under section 9. Remittance to Province (2) Her Majesty in right of Canada shall, in accordance with the terms of such an agreement, remit to Her Majesty in right of the Province an amount equal to each amount remitted to the Receiver General under subsection (1). Debts due to Her Majesty 11. All royalties, interest and penalties payable under subsection 10(1) are debts due to Her Majesty in right of Canada and are recoverable as such from the Province. AGREEMENT Agreement concerning royalties, etc. 12. The Minister may, with the approval of the Governor in Council, enter on behalf of Her Majesty in right of Canada into an agreement with the government of the Province with respect to the collection and administration of the royalties, interest and penalties referred to in section 9 on behalf of the Government of Canada, and to the remittance of those amounts by the Government of Canada to the Province. C. 33 Donkin Coal Block Dev REGULATIONS Recommendation of Minister of Labour 13. (1) The Governor in Council may, on the recommendation of the Minister of Labour, make regulations respecting employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, including regulations (a) excluding, in whole or in part, from the application of any of the provisions of the Canada Labour Code any employment, or any class or classes of employment, in or in connection with the operation of such a mine; and (b) governing industrial relations, occupational health and safety and labour standards in relation to employment that is subject to a regulation made under paragraph (a). Recommendation of Minister (2) The Governor in Council may, on the recommendation of the Minister, make regulations respecting all other matters relating to the exploitation of the Donkin coal block, including regulations (a) amending the schedule to provide for any change that is necessary to the description of the area in which the Donkin coal block is located; (b) respecting the application, in whole or in part, of any of the Acts referred to in section 7 and the regulations made under those Acts; and (c) respecting royalties, interest and penalties that are referred to in section 9. Incorporation by reference (3) The regulations referred to in subsections (1) and (2) may incorporate by reference in whole or in part any Act of the Province or instrument made under such an Act, as amended from time to time, with any adaptations that the Governor in Council considers necessary. Joint recommendation (4) The Governor in Council may, on the recommendation of both the Minister and the Minister of Labour, by regulation provide that any Act of the Province or instrument made under such an Act relating to the prosecution of provincial offences applies, in whole or in part, as amended from time to time and with any Réserve de ch adaptations that the Governor in Council considers necessary, to prosecutions for offences under this Act. User Fees Act does not apply 14. For greater certainty, the User Fees Act does not apply in respect of any fees fixed under a provision that is incorporated into the regulations by reference. Administration and enforcement 15. (1) A regulation incorporating — and, as necessary, adapting — any Act of the Province or instrument made under such an Act shall, after consultation with the appropriate provincial minister, be administered and enforced by the person or authority that is responsible for the administration and enforcement of the incorporated Act or instrument. Not agent of Her Majesty in right of Canada (2) Persons and authorities referred to in subsection (1) are not agents of Her Majesty in right of Canada. Offence and penalty (3) Every person who contravenes a regulation by contravening a provision that is incorporated — and, as necessary, adapted — by the regulation is guilty of an offence against this Act and liable to the same punishment as is imposed by or under an Act of the Province for the contravention of that provision. Procedure (4) The prosecution of an offence described in subsection (3) shall be conducted by the Attorney General of the Province or his or her lawful deputy. 1988, c. 28 CONSEQUENTIAL AMENDMENT TO THE CANADA-NOVA SCOTIA OFFSHORE PETROLEUM RESOURCES ACCORD IMPLEMENTATION ACT 16. The definition “gas” in section 2 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act is replaced by the following: “gas” « gaz » “gas” means natural gas and includes all substances, other than oil, that are produced in association with natural gas, but does not include coal-bed methane associated with the development or operation of a coal mine; C. 33 Donkin Coal Block Developm SCHEDULE (Section 2 and paragraph 13(2)(a)) AREA OF THE DONKIN COAL BLOCK ALL that certain lot, piece or parcel of land and land covered by water, in the vicinity of Donkin, Cape Breton County, Province of Nova Scotia, and as more particularly described as follows: BEGINNING at Latitude 46°10′50″N and Longitude 59°41′15″ W; THENCE due North along the western most boundaries of tracts 57, 64, 81, 88, and 105, claim reference map 11 J 4 D as defined in Section 2(ao), the Mineral Resources Act, S.N.S. 1990, c.18, and more particularly described in Section 6, the Mineral Resources Regulations, N.S.R. 222/2004, a distance of 5 miles to Latitude 46°15′00″N and Longitude 59°41′15″W; THENCE due West along the southern most boundaries of tracts 10, 11, and 12, claim reference map 11 J 5 A, a distance of 3 miles to Latitude 46°15′00″N and Longitude 59°45′00″W; THENCE due North along the western most boundaries of tracts 12 and 13, claim reference map 11 J 5 A, a distance of 2 miles to Latitude 46°16′40″N and Longitude 59°45′00″W; THENCE due West along the southern most boundaries of tracts 25, 26, 27, 28, 29, 30, 31, 32, and 33, claim reference map 11 J 5 B, a distance of 9 miles to Latitude 46°16′40″N and Longitude 59°56′15″W; THENCE due South along the eastern most boundaries of tracts 15 and 10, claim reference map 11 J 5 B and tracts 106, 87, and 82, claim reference map 11 J 4 C, a distance of 5 miles to Latitude 46°12′30″N and Longitude 59°56′15″W; THENCE due West along the southern most boundary of tract 82, claim reference map 11 J 4 C, a distance of 1 mile to Latitude 46°12′30″N and Longitude 59°57′30″W; THENCE due South along the eastern most boundary of tracts 62 and 59, claim reference map 11 J 4 C, a distance of 2 miles to Latitude 46°10′50″N and Longitude 59°57′30″W; THENCE due East along the northern most boundary of tract 39 and claim N, tract 40, claim reference map 11 J 4 C, a distance of 1.25 miles to Latitude 46°10′50″N and Longitude 59°55′56.25″W; THENCE due North along the western most boundary of claims C, F, L, and O, tract 57, claim reference map 11 J 4 C, a distance of 1 mile to Latitude 46°11′40″N and Longitude 59°55′56.25″W; THENCE due East along the northern most boundary of claims O, P, and Q, tract 57, and northern most boundary of tracts 56, 55, and 54, claim reference map 11 J 4 C, a distance of 3.75 miles to Latitude 46°11′40″N and Longitude 59°51′15″W; THENCE due South along the eastern most boundaries of tracts 54 and 43, claim reference map 11 J 4 C, a distance of 2 miles to Latitude 46°10′00″N and Longitude 59°51′15″W; THENCE due East along the northern most boundaries of tracts 29 and 28, claim reference map 11 J 4 C, a distance of 2 miles to Latitude 46°10′00″N and Longitude 59°48′45″W; Réserve de charbon THENCE due North along the western most boundary of tract 46, claim reference map 11 J 4 C, a distance of 1 mile to Latitude 46°10′50″N and Longitude 59°48′45″W; THENCE due East along the northern most boundaries of tracts 46, 47, and 48, claim reference map 11 J 4 C, and tracts 37, 38, and 39, claim reference map 11 J 4 D, a distance of 6 miles to Latitude 46°10′50″N and Longitude 59°41′15″W. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 27 An Act to amend the Quarantine Act ASSENTED TO 22nd JUNE, 2007 BILL C-42 SUMMARY This enactment amends the obligations set out in section 34 of the Quarantine Act that apply to the operators of certain conveyances arriving in or departing from Canada. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 27 An Act to amend the Quarantine Act [Assented to 22nd June, 2007] 2005, c. 20 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Section 34 of the Quarantine Act is replaced by the following: Application 34. (1) This section applies to the operator of any of the following conveyances: (a) a conveyance that is used in the business of carrying persons or cargo; and (b) a prescribed conveyance. Operator to inform quarantine officer before arrival (2) As soon as possible before a conveyance arrives at its destination in Canada, the operator shall inform a quarantine officer or cause a quarantine officer to be informed of any reasonable grounds to suspect that (a) any person, cargo or other thing on board the conveyance could cause the spreading of a communicable disease listed in the schedule; (b) a person on board the conveyance has died; or (c) any prescribed circumstances exist. Operator to inform quarantine officer before departure (3) As soon as possible before a conveyance departs from Canada through a departure point, the operator shall inform a quarantine officer or cause a quarantine officer to be informed of any circumstance referred to in paragraphs (2)(a) to (c) that exists. C. 27 Exception (4) No operator contravenes subsection (2) if it is not reasonably possible for the operator to inform a quarantine officer or cause a quarantine officer to be informed before the conveyance’s arrival at its destination in Canada, as long as the operator does so on the conveyance’s arrival at that destination. Quara 2. Section 63 of the Act is replaced by the following: Ministerial regulations 63. The Minister may make regulations amending the schedule by adding, deleting or amending the name of any communicable disease. 3. Section 71 of the Act is replaced by the following: Contravention 71. Every person who contravenes subsection 6(2), 8(1) or 34(2) or (3), section 36 or 38, subsection 42(1), section 45 or 50, subsection 54(3), section 58 or 59 or subsection 73(2) or the regulations is guilty of an offence and liable on summary conviction to a fine of not more than $750,000 or to imprisonment for a term of not more than six months, or to both. 4. The schedule to the Act is amended by replacing the section references after the heading “SCHEDULE” with the following: (Section 2, subsections 15(2) and 34(2) and sections 45 and 63) Coming into force 5. Despite section 84 of the Quarantine Act, section 34 of that Act, as enacted by section 1 of this Act, comes into force on the day on which this Act receives royal assent. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 16 An Act to amend the Income Tax Act (sports and recreation programs) ASSENTED TO 22nd JUNE, 2007 BILL C-294 SUMMARY This enactment amends the Income Tax Act to exclude certain allowances in respect of board and lodging from the computation of a taxpayer’s income from an office or employment if those allowances are paid to the taxpayer by a registered charity or a non-profit organization in connection with its operation of a sports team or recreation program for persons under 21 years of age of which the taxpayer is a registered member or participant. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 16 An Act to amend the Income Tax Act (sports and recreation programs) [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c.1 (5th Supp.) INCOME TAX ACT 1. Paragraph 6(1)(b) of the Income Tax Act is amended by adding the following after subparagraph (v): (v.1) allowances for board and lodging of the taxpayer, to a maximum total of $300 for each month of the year, if (A) the taxpayer is, in that month, a registered participant with, or member of, a sports team or recreation program of the employer in respect of which membership or participation is restricted to persons under 21 years of age, (B) the allowance is in respect of the taxpayer’s participation or membership and is not attributable to services of the taxpayer as a coach, instructor trainer, referee, administrator or other similar occupation, (C) the employer is a registered charity or a non-profit organization described in paragraph 149(1)(l), and (D) the allowance is reasonably attributable to the cost to the taxpayer of living away from the place where the employee would, but for the employment, ordinarily reside, C. 16 Income Tax (sports and 2. The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following: Annual adjustment (indexing) 117.1 (1) Each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsections 118(2) and 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of 3. Sections 1 and 2 apply to taxation years that end after the day on which this Act is assented to. COORDINATING AMENDMENT Bill C-28 4. If Bill C-28, introduced in the 1st session of the 39th Parliament and entitled Budget Implementation Act, 2006, No. 2 (in this section referred to as the “other Act”), receives royal assent, then, on the later of the day on which section 19 of the other Act comes into force and the day on which section 2 of this Act comes into force, the portion of subsection 117.1(1) of the Income Tax Act before paragraph (a) is replaced by the following: Annual adjustment (indexing) 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s) and each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 2006-2007 Impôt sur le revenu (progra 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 5 An Act to amend the National Defence Act, the Criminal Code, the Sex Offender Information Registration Act and the Criminal Records Act ASSENTED TO 29th MARCH, 2007 BILL S-3 SUMMARY This enactment amends the National Defence Act to create a scheme that requires offenders who have committed service offences of a sexual nature to provide information for registration in a national database under the Sex Offender Information Registration Act. The new scheme parallels the one in the Criminal Code, and that Act, the Sex Offender Information Registration Act and the Criminal Records Act are amended accordingly. The amendments to the National Defence Act also establish mechanisms to accommodate military operational requirements when necessary. The enactment creates a new offence under the National Defence Act for failure to comply with an order or obligation to provide information to a designated registration centre. It also makes certain amendments to the Criminal Code and the Sex Offender Information Registration Act to enhance the administration and enforcement of the current registration scheme for sex offender information. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 5 An Act to amend the National Defence Act, the Criminal Code, the Sex Offender Information Registration Act and the Criminal Records Act [Assented to 29th March, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. N-5 NATIONAL DEFENCE ACT 1. Subsection 2(1) of the National Defence Act is amended by adding the following in alphabetical order: “finding of not responsible on account of mental disorder” « verdict de nonresponsabilité pour cause de troubles mentaux » “Provost Marshal” « prévôt » “finding of not responsible on account of mental disorder” means a finding made under subsection 202.14(1); “Provost Marshal” means the Canadian Forces Provost Marshal; 2. The Act is amended by adding the following after section 119: Offence in Relation to the Sex Offender Information Registration Act Failure to comply with order or obligation 119.1 (1) Every person who, without reasonable excuse, fails to comply with an order made under section 227.01 of this Act or section 490.012 of the Criminal Code, or with an obligation under section 227.06 of this Act or section 490.019 of the Criminal Code, is guilty C. 5 National Defence, Criminal Code, Sex Offen Reco of an offence and on conviction is liable to imprisonment for less than two years or to less punishment. Reasonable excuse (2) For greater certainty, a lawful command that prevents a person from complying with an order or obligation is a reasonable excuse. 1991, c. 43, s. 18 3. Subsection 202.14(1) of the Act is replaced by the following: Finding of not responsible on account of mental disorder 202.14 (1) If a court martial finds that an accused person committed the act or made the omission that forms the basis of the offence charged but was suffering at the time from a mental disorder so as to be exempt from responsibility, the court martial shall make a finding that the accused person committed the act or made the omission but is not responsible on account of mental disorder. 4. The Act is amended by adding the following after section 226: DIVISION 8.1 SEX OFFENDER INFORMATION Interpretation Definitions 227. The following definitions apply in this Division. “crime of a sexual nature” « crime de nature sexuelle » “crime of a sexual nature” means a crime referred to in subsection 3(2) of the Sex Offender Information Registration Act. “database” « banque de données » “database” has the same meaning as in subsection 3(1) of the Sex Offender Information Registration Act. “designated offence” « infraction désignée » “designated offence” means (a) an offence within the meaning of paragraph (a), (c), (c.1) or (d) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code that is punishable under section 130 of this Act; (b) an offence within the meaning of paragraph (b) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code that is punishable under section 130 of this Act; 2006-2007 Défense nationale, Code criminel, Renseign judic (c) an attempt or conspiracy to commit an offence referred to in paragraph (a); or (d) an attempt or conspiracy to commit an offence referred to in paragraph (b). “finding of not responsible on account of mental disorder” « verdict de nonresponsabilité pour cause de troubles mentaux » “finding of not responsible on account of mental disorder” includes a verdict of not criminally responsible on account of mental disorder within the meaning of subsection 672.1(1) of the Criminal Code. “officer, or noncommissioned member, of the primary reserve” « officier ou militaire du rang de la première réserve » “officer, or non-commissioned member, of the primary reserve” means an officer, or noncommissioned member, of the reserve force (a) who is required, whether on active service or not, to perform military or any other form of duty or training; (b) whose primary duty is not the supervision, administration and training of cadet organizations referred to in section 46; and (c) who is required to undergo annual training. “pardon” « réhabilitation » “pardon” means a pardon granted by any authority under law, other than a free pardon granted under Her Majesty’s royal prerogative of mercy or under section 748 of the Criminal Code, that has not ceased to have effect or been revoked. “prescribed form” « formulaire réglementaire » “prescribed form” means a form prescribed in the regulations made by the Governor in Council. “registration centre” « bureau d’inscription » “registration centre” has the same meaning as in subsection 3(1) of the Sex Offender Information Registration Act. “Review Board” « commission d’examen » “Review Board” means the Review Board established or designated for a province under subsection 672.38(1) of the Criminal Code. Order to Comply with the Sex Offender Information Registration Act Order 227.01 (1) As soon as possible after a court martial imposes a sentence on a person for an offence referred to in paragraph (a) or (c) of the definition “designated offence” in section 227 C. 5 National Defence, Criminal Code, Sex Offen Reco or finds the person not responsible on account of mental disorder for such an offence, it shall, on application of the prosecutor, make an order in the prescribed form requiring the person to comply with the Sex Offender Information Registration Act for the applicable period specified in section 227.02. Order (2) As soon as possible after a court martial imposes a sentence on a person for an offence referred to in paragraph (b) or (d) of the definition “designated offence” in section 227, it shall, on application of the prosecutor, make an order in the prescribed form requiring the person to comply with the Sex Offender Information Registration Act for the applicable period specified in section 227.02, if the prosecutor establishes beyond a reasonable doubt that the person committed the offence with the intent to commit an offence referred to in paragraph (a) or (c) of that definition. Order (3) As soon as possible after a court martial imposes a sentence on a person for a designated offence in connection with which an order may be made under subsection (1) or (2) or finds the person not responsible on account of mental disorder for such an offence, it shall, on application of the prosecutor, make an order in the prescribed form requiring the person to comply with the Sex Offender Information Registration Act for the applicable period specified in section 227.02, if the prosecutor establishes that (a) the person was, before or after the coming into force of the Sex Offender Information Registration Act, previously convicted of, or found not responsible on account of mental disorder for, an offence referred to in paragraph (a) or (c) of the definition “designated offence” in section 227 of this Act or in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code; 2006-2007 Défense nationale, Code criminel, Renseign judic (b) the person has not been served with a notice under section 227.08 of this Act or section 490.021 of the Criminal Code in connection with the previous offence; and (c) no order was made under subsection (1) or under subsection 490.012(1) of the Criminal Code in connection with the previous offence. Interpretation (4) For the purpose of paragraph (3)(a), a previous conviction includes a conviction for an offence (a) for which a person is given an adult sentence within the meaning of subsection 2(1) of the Youth Criminal Justice Act; or (b) that is made in ordinary court within the meaning of subsection 2(1) of the Young Offenders Act, chapter Y-1 of the Revised Statutes of Canada, 1985. Exception (5) The court martial is not required to make an order under this section if it is satisfied that the person has established that, if the order were made, the impact on them, including on their privacy or liberty, would be grossly disproportionate to the public interest in protecting society through the effective investigation of crimes of a sexual nature, to be achieved by the registration of information relating to sex offenders under the Sex Offender Information Registration Act. Reasons for decision (6) The court martial shall give reasons for its decision. Date order begins 227.02 (1) An order made under section 227.01 begins on the day on which it is made. Duration of order (2) An order made under subsection 227.01(1) or (2) (a) ends 10 years after it was made if the maximum term of imprisonment for the offence in connection with which it was made is five years or less; (b) ends 20 years after it was made if the maximum term of imprisonment for the offence is 10 or 14 years; and C. 5 National Defence, Criminal Code, Sex Offen Reco (c) applies for life if the maximum term of imprisonment for the offence is life. Duration of order (3) An order made under subsection 227.01(1) or (2) applies for life if the person is, or was at any time, subject to an obligation under section 227.06 of this Act or section 490.019 of the Criminal Code. Duration of order (4) An order made under subsection 227.01(1) or (2) applies for life if the person is, or was at any time, subject to an order made previously under section 227.01 of this Act or section 490.012 of the Criminal Code. Duration of order (5) An order made under subsection 227.01(3) applies for life. Application for termination order 227.03 (1) A person who is subject to an order may apply for a termination order (a) if five years have elapsed since the order was made, in the case of an order referred to in paragraph 227.02(2)(a); (b) if 10 years have elapsed since the order was made, in the case of an order referred to in paragraph 227.02(2)(b); or (c) if 20 years have elapsed since the order was made, in the case of an order referred to in paragraph 227.02(2)(c) or subsection 227.02(3) or (5). Multiple orders (2) A person who is subject to more than one order made under section 227.01 may apply for a termination order if 20 years have elapsed since the most recent order was made. Pardon (3) Despite subsections (1) and (2), a person may apply for a termination order once they receive a pardon. Scope of application (4) The application shall be in relation to every order that is in effect. If a person is subject to an obligation under section 227.06 of this Act 2006-2007 Défense nationale, Code criminel, Renseign judic or section 490.019 of the Criminal Code, the application shall also be in relation to that obligation. Re-application (5) A person whose application is refused may re-apply if five years have elapsed since they made the previous application. They may also re-apply once they receive a pardon. However, they may not re-apply under this subsection if an order is made with respect to them under section 227.01 of this Act or section 490.012 of the Criminal Code after the previous application was made. Jurisdiction (6) The application shall be made to the Chief Military Judge if the applicant is subject to the Code of Service Discipline or is an officer, or non-commissioned member, of the primary reserve at the time. In any other case, the application shall be made to a court under section 490.015 of the Criminal Code. Court martial (7) On receipt of the application, the Chief Military Judge shall cause the Court Martial Administrator to convene a court martial to try the issue. Termination order 227.04 (1) The court martial shall make a termination order if it is satisfied that the person has established that the impact on them of continuing the order or orders and any obligation, including on their privacy or liberty, would be grossly disproportionate to the public interest in protecting society through the effective investigation of crimes of a sexual nature, to be achieved by the registration of information relating to sex offenders under the Sex Offender Information Registration Act. Reasons for decision (2) The court martial shall give reasons for the decision. Notice to Provost Marshal (3) If the court martial makes a termination order, it shall cause the Provost Marshal to be notified of the decision. Requirements relating to notice 227.05 (1) When a court martial makes an order under section 227.01, it shall cause (a) the order to be read by or to the person who is subject to it; C. 5 National Defence, Criminal Code, Sex Offen Reco (b) a copy of the order to be given to that person; (c) that person to be informed of sections 4 to 7.1 of the Sex Offender Information Registration Act, section 119.1 of this Act and sections 490.031 and 490.0311 of the Criminal Code; and (d) a copy of the order to be sent to (i) the Review Board that is responsible for making a disposition with respect to that person, if applicable, (ii) the person in charge of the place in which the person who is subject to the order is to serve the custodial portion of a sentence or is to be detained in custody as part of a disposition under Division 7 of this Part, if applicable, and (iii) the Provost Marshal. Notice on disposition by Review Board (2) A Review Board shall cause a copy of the order to be given to the person who is subject to the order when it directs, (a) in the exercise of the powers and performance of the duties assigned to it under paragraph 672.54(a) of the Criminal Code, that the person be discharged absolutely; or (b) in the exercise of the powers and performance of the duties assigned to it under paragraph 672.54(b) of the Criminal Code, that the person be discharged subject to conditions, unless the conditions restrict the person’s liberty in a manner and to an extent that prevent them from complying with sections 4, 4.1, 4.3 and 6 of the Sex Offender Information Registration Act. Notice before release (3) The person in charge of the place in which the person who is subject to the order is serving the custodial portion of a sentence, or is detained in custody, before their release or discharge shall give them a copy of the order not earlier than 10 days before their release or discharge. Défense nationale, Code criminel, Renseign judic 2006-2007 Notice and Obligation to Comply with the Sex Offender Information Registration Act Obligation to comply 227.06 A person who is served with a notice in the prescribed form shall comply with the Sex Offender Information Registration Act for the applicable period specified in section 227.09 of this Act unless an exemption order is made under subsection 227.1(4) of this Act or subsection 490.023(2) of the Criminal Code. Persons who may be served 227.07 (1) The Provost Marshal may serve a person with a notice if, on the day on which this section comes into force, they are subject to a sentence for an offence referred to in paragraph (a) or (c) of the definition “designated offence” in section 227 or have not been discharged absolutely or unconditionally released from custody under Division 7 of this Part in connection with such an offence. (2) A notice shall not be served on a person Exception if (a) they may be served with a notice under section 490.021 of the Criminal Code; (b) they have been finally acquitted of, or have received a free pardon granted under Her Majesty’s royal prerogative of mercy or under section 748 of the Criminal Code for, every offence in connection with which the notice may be served on them; or (c) an application has been made for an order under subsection 227.01(3) of this Act or subsection 490.012(3) of the Criminal Code in relation to any offence in connection with which the notice may be served on them. Period for and method of service 227.08 (1) The notice shall be personally served within one year after the day on which section 227.07 comes into force. Exception (2) If a person is unlawfully at large or is in breach of any terms of their sentence or their discharge or release under Division 7 of this Part, or of any conditions set under this Part, that relate to residence, the notice may be served by registered mail at their last known address. National Defence, Criminal Code, Sex Offen Reco C. 5 Proof of service (3) An affidavit of the person who served the notice, sworn before a commissioner or other person authorized to take affidavits, is evidence of the service and the notice if it sets out that (a) the person who served the notice has charge of the appropriate records and has knowledge of the facts in the particular case; (b) the notice was personally served on, or mailed to, the person to whom it was directed on a named day; and (c) the person who served the notice identifies a true copy of the notice as an exhibit attached to the affidavit. Requirements relating to notice (4) The person who served the notice shall send a copy of the affidavit and the notice to the Provost Marshal without delay. Date obligation begins 227.09 (1) The obligation under section 227.06 begins (a) either one year after the day on which the person is served with the notice, or when an exemption order is refused under subsection 227.1(4) of this Act or subsection 490.023(2) of the Criminal Code, whichever is later; or (b) when an exemption order is quashed. Date obligation ends (2) The obligation ends when an exemption order is made on an appeal from a decision made under subsection 227.1(4) of this Act or subsection 490.023(2) of the Criminal Code. Duration of obligation (3) If subsection (2) does not apply earlier, the obligation (a) ends 10 years after the person was sentenced, or found not responsible on account of mental disorder, for the offence listed in the notice if the maximum term of imprisonment for the offence is five years or less; (b) ends 20 years after the person was sentenced, or found not responsible on account of mental disorder, for the offence listed in the notice if the maximum term of imprisonment for the offence is 10 or 14 years; 2006-2007 Défense nationale, Code criminel, Renseign judic (c) applies for life if the maximum term of imprisonment for the offence listed in the notice is life; or (d) applies for life if, at any time, the person was convicted of, or found not responsible on account of mental disorder for, more than one offence that is referred to in paragraph (a) or (c) of the definition “designated offence” in section 227 of this Act or in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code and if more than one of those offences is listed in the notice. Application for exemption order 227.1 (1) A person who is not subject to an order under section 227.01 of this Act or section 490.012 of the Criminal Code may apply for an order exempting them from the obligation within one year after they are served with a notice under section 227.08. Jurisdiction (2) The application shall be made to the Chief Military Judge if the applicant is subject to the Code of Service Discipline or is an officer, or non-commissioned member, of the primary reserve at the time. In any other case, the application shall be made to a court under section 490.023 of the Criminal Code. Court martial (3) On receipt of the application, the Chief Military Judge shall cause the Court Martial Administrator to convene a court martial to try the issue. Exemption order (4) The court martial shall make an exemption order if it is satisfied that the person has established that the impact of the obligation on them, including on their privacy or liberty, would be grossly disproportionate to the public interest in protecting society through the effective investigation of crimes of a sexual nature, to be achieved by the registration of information relating to sex offenders under the Sex Offender Information Registration Act. Reasons for decision (5) The court martial shall give reasons for the decision. National Defence, Criminal Code, Sex Offen Reco C. 5 Removal of information from database (6) If the court martial makes an exemption order, it shall also make an order requiring the permanent removal from the database of all information that relates to the person. Requirements relating to notice 227.11 If the court martial refuses to make an exemption order or if the Court Martial Appeal Court dismisses an appeal from such a decision or quashes an exemption order, it shall cause the Provost Marshal to be notified of the decision and shall cause the person who applied for the order to be informed of sections 4 to 7.1 of the Sex Offender Information Registration Act, section 119.1 of this Act and sections 490.031 and 490.0311 of the Criminal Code. Application for termination order 227.12 (1) A person who is subject to an obligation under section 227.06 and is not subject to an order under section 227.01 of this Act or section 490.012 of the Criminal Code may apply for a termination order. Time for application (2) A person may apply for a termination order if the following period has elapsed since they were sentenced, or found not responsible on account of mental disorder, for an offence referred to in paragraph (a) or (c) of the definition “designated offence” in section 227: (a) five years if the maximum term of imprisonment for the offence is five years or less; (b) 10 years if the maximum term of imprisonment for the offence is 10 or 14 years; or (c) 20 years if the maximum term of imprisonment for the offence is life. More than one offence (3) If more than one offence is listed in the notice served under section 227.08, the person may apply for a termination order if 20 years have elapsed since they were sentenced, or found not responsible on account of mental disorder, for the most recent offence referred to in paragraph (a) or (c) of the definition “designated offence” in section 227 of this Act or in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code. 2006-2007 Défense nationale, Code criminel, Renseign judic Pardon (4) Despite subsections (2) and (3), a person may apply for a termination order once they receive a pardon. Re-application (5) A person whose application is refused may re-apply if five years have elapsed since they made the previous application. They may also re-apply once they receive a pardon. However, they may not re-apply under this subsection if an order is made with respect to them under section 227.01 of this Act or section 490.012 of the Criminal Code after the previous application was made. Jurisdiction (6) The application shall be made to the Chief Military Judge if the applicant is subject to the Code of Service Discipline or is an officer, or non-commissioned member, of the primary reserve at the time. In any other case, the application shall be made to a court under section 490.026 of the Criminal Code. Court martial (7) On receipt of the application, the Chief Military Judge shall cause the Court Martial Administrator to convene a court martial to try the issue. Termination order 227.13 (1) The court martial shall make an order terminating the obligation if it is satisfied that the person has established that the impact on them of continuing the obligation, including on their privacy or liberty, would be grossly disproportionate to the public interest in protecting society through the effective investigation of crimes of a sexual nature, to be achieved by the registration of information relating to sex offenders under the Sex Offender Information Registration Act. Reasons for decision (2) The court martial shall give reasons for the decision. Requirements relating to notice (3) If the court martial makes a termination order, it shall cause the Provost Marshal to be notified of the decision. Deemed application 227.14 If a person is eligible to apply for both an exemption order under section 227.1 and a termination order under section 227.12 within one year after they are served with a notice under section 227.08, an application within that period for one order is deemed to be an application for both. C. 5 National Defence, Criminal Code, Sex Offen Reco Suspension of Time Limits, Proceedings and Obligations Determination — inability to act for operational reasons 227.15 (1) The Chief of the Defence Staff may determine that a person who is subject to the Code of Service Discipline, or who is an officer, or non-commissioned member, of the primary reserve, is, for operational reasons, unable to (a) apply for an exemption order under section 227.1 of this Act or section 490.023 of the Criminal Code within the required period; (b) appeal the legality of a decision made under section 227.01 or subsection 227.04(1), 227.1(4) or 227.13(1) of this Act, or appeal a decision made under section 490.012 or subsection 490.016(1), 490.023(2) or 490.027(1) of the Criminal Code, within the required period; (c) participate in a proceeding relating to an exemption order referred to in paragraph (a) or in an appeal proceeding referred to in paragraph (b); or (d) comply with section 4, 4.1, 4.3 or 6 of the Sex Offender Information Registration Act within the required period. Effects of determination (2) If the Chief of the Defence Staff makes a determination, the following rules apply: (a) in the case of a determination under paragraph (1)(a), the running of the period during which the person may apply for an exemption order is suspended from the day on which the operational reasons first apply until 45 days after the day on which they cease to apply; (b) in the case of a determination under paragraph (1)(b), the running of the period during which the person may appeal the legality of a decision, or a decision, is suspended from the day on which the operational reasons first apply until 45 days after the day on which they cease to apply; (c) in the case of a determination under paragraph (1)(c), 2006-2007 Défense nationale, Code criminel, Renseign judic (i) any proceeding relating to an exemption order is suspended from the day on which the operational reasons first apply until 45 days after the day on which they cease to apply, or (ii) an application may be made to appeal the legality of a decision, or a decision, after the day on which the operational reasons first apply, but any appeal proceeding is suspended from the day on which the operational reasons first apply until 45 days after the day on which they cease to apply; and (d) in the case of a determination under paragraph (1)(d), the person’s obligation to comply with the relevant section of the Sex Offender Information Registration Act is suspended from the day on which the operational reasons first apply until 15 days after the day on which they cease to apply. Factors for consideration (2.1) The Chief of the Defence Staff may make a determination only if he or she is of the opinion that the operational reasons clearly outweigh in importance the public interest in applying the provisions of the Act that, but for the determination, would apply in the circumstances. Notice to Minister (2.2) The Chief of the Defence Staff shall notify the Minister before making a determination. Review of operational reasons (2.3) Every 15 days after a determination is made, the Chief of the Defence Staff shall consider whether the operational reasons cease to apply. Notice (3) The Chief of the Defence Staff shall notify the Minister without delay that a determination has been made under this section. Notice (4) The Chief of the Defence Staff shall notify the Provost Marshal without delay of the determination, the date on which the operational reasons first apply and the date on which they cease to apply, and the Provost Marshal shall notify the person without delay. Notice (5) The Provost Marshal shall notify the following persons without delay of a determination made under paragraph (1)(b) or (c), the effect of the determination, the date on which C. 5 National Defence, Criminal Code, Sex Offen Reco the suspension of the time limit or proceeding first applies and the date on which it ceases to apply: (a) the Minister or counsel instructed by the Minister if the decision in relation to which an appeal may be brought was made under this Act, or the Minister or counsel instructed by the Minister and the Court Martial Administrator if the proceeding was commenced under this Act; or (b) the attorney general of a province or the minister of justice of a territory if the decision in relation to which an appeal may be brought was made, or the proceeding was commenced, in that jurisdiction under the Criminal Code. Determination — information relating to an operation 227.16 (1) The Chief of the Defence Staff may determine that the communication, under section 6 of the Sex Offender Information Registration Act, of information that relates to an operation could jeopardize national security, international relations or the security of an operation that is within a class of operations designated by a regulation made under paragraph 227.2(b). Notice (2) The Chief of the Defence Staff shall notify the Minister without delay that a determination has been made under this section. Notice (3) The Chief of the Defence Staff shall notify the Provost Marshal without delay of the determination, and the Provost Marshal shall notify without delay any participant in the operation who is required to comply with section 6 of the Sex Offender Information Registration Act. Effect of determination (4) A participant in the operation is exempted from the requirement under section 6 of the Sex Offender Information Registration Act to provide the information relating to the operation. Statutory Instruments Act 227.17 The Statutory Instruments Act does not apply to a determination made by the Chief of the Defence Staff under subsection 227.15(1) or 227.16(1). 2006-2007 Annual Report Défense nationale, Code criminel, Renseign judic 227.171 (1) The Chief of the Defence Staff shall, within 30 days after the end of each year, submit a report to the Minister on the operation of sections 227.15 and 227.16 for that year that includes (a) the number of determinations made under each of paragraphs 227.15(a) to (d) and the duration of the suspension resulting from each determination; and (b) the number of determinations made under subsection 227.16(1) and the number of persons exempted under subsection 227.16(4) as a result of each determination. Tabling in Parliament (2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report. Disclosure of Information Disclosure by Commissioner 227.18 (1) At the request of the Provost Marshal, the Commissioner of the Royal Canadian Mounted Police shall disclose information that is registered in the database, or the fact that information is registered in the database, to the Provost Marshal if the disclosure is necessary to enable the Provost Marshal to determine (a) whether a person may be served with a notice under section 227.08; (b) for the purpose of a proceeding for an order under section 227.01, a termination order under subsection 227.04(1) or 227.13(1) or an exemption order under subsection 227.1(4), or for the purpose of an appeal respecting the legality of a decision made under any of those provisions, whether a person who is subject to the Code of Service Discipline, or who is an officer, or non-commissioned member, of the primary reserve, is, or was at any time, required to comply with an order made under section 227.01 of this Act or section 490.012 of the Criminal Code or with an obligation under section 227.06 of this Act or section 490.019 of the Criminal Code; C. 5 National Defence, Criminal Code, Sex Offen Reco (c) for the purpose of enabling compliance with the Sex Offender Information Registration Act, whether a person who is subject to the Code of Service Discipline, or who is an officer, or non-commissioned member, of the primary reserve, is required to comply with an order made under section 227.01 of this Act or section 490.012 of the Criminal Code or with an obligation under section 227.06 of this Act or section 490.019 of the Criminal Code; or (d) whether a person who is subject to the Code of Service Discipline, or who is an officer, or non-commissioned member, of the primary reserve, may be the subject of a determination under subsection 227.15(1) or 227.16(1). Disclosure by Provost Marshal (2) The Provost Marshal shall disclose the information (a) to a prosecutor if the disclosure is necessary for the purpose of a proceeding for an order under section 227.01, a termination order under subsection 227.04(1) or 227.13(1) or an exemption order under subsection 227.1(4); (b) to the Minister or counsel instructed by the Minister if the disclosure is necessary for the purpose of an appeal respecting the legality of a decision made in a proceeding referred to in paragraph (a); (c) to a person’s commanding officer if the disclosure is necessary to enable the person to comply with the Sex Offender Information Registration Act; or (d) to the Chief of the Defence Staff if the disclosure is necessary for the purpose of a determination under subsection 227.15(1) or 227.16(1). Disclosure in proceedings (3) The prosecutor or the Minister or counsel instructed by the Minister may, if the information is relevant to the proceeding or appeal referred to in paragraph (2)(a) or (b), disclose it to the presiding judge, court or court martial. Disclosure by Commissioner 227.19 (1) If a person, in connection with a proceeding or an appeal other than one referred to in paragraph 227.18(2)(a) or (b), discloses the 2006-2007 Défense nationale, Code criminel, Renseign judic fact that information relating to them is registered in the database, the Provost Marshal shall request that the Commissioner of the Royal Canadian Mounted Police disclose all of the information relating to the person that is registered in the database. The Commissioner shall disclose the information to the Provost Marshal without delay. Disclosure by Provost Marshal (2) The Provost Marshal shall disclose the information (a) to the officer who has jurisdiction to try the person and to a person who provides legal advice to the officer with respect to the proceeding, in the case of a summary trial; or (b) to the prosecutor or to the Minister or counsel instructed by the Minister in any other case. Disclosure in proceedings (3) The officer who has jurisdiction to try the person may, if the officer is unable to preside over the summary trial, disclose the information to another officer who has jurisdiction to try the person and to a person who provides legal advice to that officer with respect to the summary trial. Disclosure in proceedings (4) The officer who presides over the summary trial may disclose the information to a review authority and to a person who provides legal advice to the review authority with respect to a review of a finding of guilty made or a punishment imposed in the summary trial, if the information is relevant to the review. Disclosure in proceedings (5) The prosecutor or the Minister or counsel instructed by the Minister may disclose the information to the presiding judge, court or court martial in the proceeding or appeal or in any subsequent appeal, or to a review authority and to a person who provides legal advice to the review authority with respect to a review of a finding of guilty made or a punishment imposed in the proceeding or appeal, if the information is relevant to the proceeding, appeal or review. Disclosure in proceedings (6) A review authority may disclose the information to another review authority and to a person who provides legal advice to the other review authority with respect to a review by that review authority of a finding of guilty made or punishment imposed in a proceeding or appeal C. 5 National Defence, Criminal Code, Sex Offen Reco referred to in subsection (1) or in any subsequent appeal, if the information is relevant to the review. Authorizations, Designations and Regulations Regulations by Governor in Council 227.2 The Governor in Council may make regulations (a) respecting the means by which designated classes of persons who are subject to the Code of Service Discipline and officers, or non-commissioned members, of the primary reserve are required to report under section 4, 4.1 or 4.3, or to provide notification under section 6, of the Sex Offender Information Registration Act to registration centres designated under paragraph (e); (b) designating classes of operations in respect of which a determination may be made under subsection 227.16(1); (c) authorizing persons or classes of persons in or outside Canada to collect information under the Sex Offender Information Registration Act that relates to persons who are subject to the Code of Service Discipline and to officers, or non-commissioned members, of the primary reserve; (d) authorizing persons or classes of persons in or outside Canada to register information under the Sex Offender Information Registration Act that relates to persons who are subject to the Code of Service Discipline and to officers, or non-commissioned members, of the primary reserve; and (e) designating places or classes of places in or outside Canada as registration centres for the purposes of the Sex Offender Information Registration Act and the area, or classes of persons who are subject to the Code of Service Discipline and officers, or noncommissioned members, of the primary reserve, served by each registration centre. 2006-2007 Authorization Défense nationale, Code criminel, Renseign judic 227.21 The Chief of the Defence Staff, the Provost Marshal, the Chief Military Judge or a commanding officer may authorize a person to communicate or disclose information, or give notice, under this Division on their behalf. 5. Section 230 of the Act is amended by striking out the word “or” at the end of paragraph (e), by adding the word “or” at the end of paragraph (f) and by adding the following after paragraph (f): (g) the legality of a decision made under section 227.01. 6. Section 230.1 of the Act is amended by striking out the word “or” at the end of paragraph (f.1), by adding the word “or” at the end of paragraph (g) and by adding the following after paragraph (g): (h) the legality of a decision made under section 227.01. 7. The Act is amended by adding the following after section 230.1: Appeal from order 230.2 Subject to subsection 232(3), a person who applied for an exemption order under section 227.1 or a termination order under section 227.03 or 227.12 and the Minister or counsel instructed by the Minister have the right to appeal to the Court Martial Appeal Court in respect of the legality of the decision made by the court martial. 1991, c. 43, s. 22; 1998, c. 35, par. 92(l) 8. Subsection 232(3) of the French version of the Act is replaced by the following: Délai d’appel (3) L’appel interjeté ou la demande d’autorisation d’appel présentée aux termes de la présente section ne sont recevables que si, dans les trente jours suivant la date à laquelle la cour martiale met fin à ses délibérations, l’avis d’appel est transmis au greffe de la Cour d’appel de la cour martiale ou, dans les circonstances prévues par un règlement du gouverneur en conseil, à toute personne désignée par ce règlement. C. 5 National Defence, Criminal Code, Sex Offen Reco 9. The Act is amended by adding the following after section 240.4: Appeal against order or decision 240.5 (1) On the hearing of an appeal respecting the legality of a decision made under section 227.01 or subsection 227.04(1), 227.1(4) or 227.13(1), the Court Martial Appeal Court, or another court hearing the appeal, may dismiss the appeal, allow it and order a new hearing, quash the order or make an order that may be made under that provision. Requirements relating to notice (2) If the Court Martial Appeal Court or other court makes an order that may be made under section 227.01, it shall cause the requirements set out in section 227.05 to be fulfilled. Requirements relating to notice (3) If the Court Martial Appeal Court or other court makes an order that may be made under subsection 227.04(1) or 227.13(1), it shall cause the Provost Marshal to be notified of the decision. Removal of information from database (4) If the Court Martial Appeal Court or other court makes an exemption order that may be made under subsection 227.1(4), it shall also make the order referred to in subsection 227.1(6). 1998, c. 35, s. 82 10. The definition “Provost Marshal” in section 250 of the Act is repealed. R.S., c. C-46 CRIMINAL CODE 2004, c. 10, s. 20 11. (1) The definition “verdict of not criminally responsible on account of mental disorder” in subsection 490.011(1) of the Criminal Code is replaced by the following: “verdict of not criminally responsible on account of mental disorder” « verdict de nonresponsabilité » “verdict of not criminally responsible on account of mental disorder” means a verdict of not criminally responsible on account of mental disorder within the meaning of subsection 672.1(1) or a finding of not responsible on account of mental disorder within the meaning of subsection 2(1) of the National Defence Act, as the case may be. 2004, c. 10, s. 20 (2) Subparagraph (c)(v) of the definition “designated offence” in subsection 490.011(1) of the Act is replaced by the following: 2006-2007 Défense nationale, Code criminel, Renseign judic (v) subsection 246(1) (assault with intent) if the intent is to commit an offence referred to in any of subparagraphs (i) to (iv); (3) The definition “designated offence” in subsection 490.011(1) of the Act is amended by adding the following after paragraph (c): (c.1) an offence under any of the following provisions of the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, as enacted by section 19 of An Act to amend the Criminal Code in relation to sexual offences and other offences against the person and to amend certain other Acts in relation thereto or in consequence thereof, chapter 125 of the Statutes of Canada, 198081-82-83: (i) section 246.1 (sexual assault), (ii) section 246.2 (sexual assault with a weapon, threats to a third party or causing bodily harm), and (iii) section 246.3 (aggravated sexual assault); 2004, c. 10, s. 20 (4) Paragraph (e) of the definition “designated offence” in subsection 490.011(1) of the Act is replaced by the following: (e) an attempt or conspiracy to commit an offence referred to in any of paragraphs (a), (c), (c.1) and (d); or 2004, c. 10, s. 20 12. The heading before section 490.012 of the Act is replaced by the following: Order to Comply with the Sex Offender Information Registration Act 2004, c. 10, s. 20 13. Subsections 490.012(1) to (3) of the Act are replaced by the following: Order 490.012 (1) As soon as possible after a court imposes a sentence on a person for an offence referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) or renders a verdict of not criminally responsible on account of mental disorder for such an offence, it shall, on C. 5 National Defence, Criminal Code, Sex Offen Reco application of the prosecutor, make an order in Form 52 requiring the person to comply with the Sex Offender Information Registration Act for the applicable period specified in section 490.013. Order (2) As soon as possible after a court imposes a sentence on a person for an offence referred to in paragraph (b) or (f) of the definition “designated offence” in subsection 490.011(1), it shall, on application of the prosecutor, make an order in Form 52 requiring the person to comply with the Sex Offender Information Registration Act for the applicable period specified in section 490.013, if the prosecutor establishes beyond a reasonable doubt that the person committed the offence with the intent to commit an offence referred to in paragraph (a), (c), (c.1), (d) or (e) of that definition. Order (3) As soon as possible after a court imposes a sentence on a person for a designated offence in connection with which an order may be made under subsection (1) or (2) or renders a verdict of not criminally responsible on account of mental disorder for such an offence, it shall, on application of the prosecutor, make an order in Form 52 requiring the person to comply with the Sex Offender Information Registration Act for the applicable period specified in section 490.013, if the prosecutor establishes that (a) the person was, before or after the coming into force of that Act, previously convicted of, or found not criminally responsible on account of mental disorder for, an offence referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of this Act or in paragraph (a) or (c) of the definition “designated offence” in section 227 of the National Defence Act; (b) the person has not been served with a notice under section 490.021 of this Act or section 227.08 of the National Defence Act in connection with the previous offence; and 2006-2007 Défense nationale, Code criminel, Renseign judic (c) no order was made under subsection (1) or under subsection 227.01(1) of the National Defence Act in connection with the previous offence. 2004, c. 10, s. 20 14. (1) Paragraphs 490.013(2)(a) to (c) of the English version of the Act are replaced by the following: (a) ends 10 years after it was made if the offence in connection with which it was made was prosecuted summarily or if the maximum term of imprisonment for the offence is two or five years; (b) ends 20 years after it was made if the maximum term of imprisonment for the offence is 10 or 14 years; and (c) applies for life if the maximum term of imprisonment for the offence is life. 2004, c. 10, s. 20 (2) Subsections 490.013(3) and (4) of the Act are replaced by the following: Duration of order (3) An order made under subsection 490.012(1) or (2) applies for life if the person is, or was at any time, subject to an obligation under section 490.019 of this Act or section 227.06 of the National Defence Act. Duration of order (4) An order made under subsection 490.012(1) or (2) applies for life if the person is, or was at any time, subject to an order made previously under section 490.012 of this Act or section 227.01 of the National Defence Act. 2004, c. 10, s. 20 (3) Subsection 490.013(5) of the English version of the Act is replaced by the following: Duration of order (5) An order made under subsection 490.012(3) applies for life. 2004, c. 10, s. 20 15. Section 490.015 of the Act is replaced by the following: Application for termination order 490.015 (1) A person who is subject to an order may apply for a termination order (a) if five years have elapsed since the order was made, in the case of an order referred to in paragraph 490.013(2)(a); (b) if 10 years have elapsed since the order was made, in the case of an order referred to in paragraph 490.013(2)(b); or C. 5 National Defence, Criminal Code, Sex Offen Reco (c) if 20 years have elapsed since the order was made, in the case of an order referred to in paragraph 490.013(2)(c) or subsection 490.013(3) or (5). Multiple orders (2) A person who is subject to more than one order made under section 490.012 of this Act, or under that section and section 227.01 of the National Defence Act, may apply for a termination order if 20 years have elapsed since the most recent order was made. Pardon (3) Despite subsections (1) and (2), a person may apply for a termination order once they receive a pardon. Scope of application (4) The application shall be in relation to every order that is in effect. If a person is subject to an obligation under section 490.019 of this Act or section 227.06 of the National Defence Act, the application shall also be in relation to that obligation. Re-application (5) A person whose application is refused may re-apply if five years have elapsed since they made the previous application. They may also re-apply once they receive a pardon. However, they may not re-apply under this subsection if an order is made with respect to them under section 490.012 of this Act or section 227.01 of the National Defence Act after the previous application was made. Jurisdiction (6) The application shall be made to (a) a superior court of criminal jurisdiction if (i) one or more of the orders to which it relates were made by such a court under section 490.012, or (ii) one or more of the orders to which it relates were made under section 227.01 of the National Defence Act and the Chief Military Judge does not have jurisdiction to receive the application under subsection 227.03(6) of that Act; or (b) a court of criminal jurisdiction, in any other case in which the application relates to one or more orders made under section 490.012. 2006-2007 Défense nationale, Code criminel, Renseign judic 2004, c. 10, s. 20 16. (1) Subsection 490.016(1) of the Act is replaced by the following: Termination order 490.016 (1) The court shall make a termination order if it is satisfied that the person has established that the impact on them of continuing the order or orders and any obligation, including on their privacy or liberty, would be grossly disproportionate to the public interest in protecting society through the effective investigation of crimes of a sexual nature, to be achieved by the registration of information relating to sex offenders under the Sex Offender Information Registration Act. (2) Section 490.016 of the Act is amended by adding the following after subsection (2): Requirements relating to notice (3) If the court makes a termination order, it shall cause the Attorney General of the province or the minister of justice of the territory to be notified of the decision. 17. Section 490.017 of the Act is renumbered as subsection 490.017(1) and is amended by adding the following: Requirements relating to notice (2) If the appeal court makes an order that may be made under subsection 490.016(1), it shall cause the Attorney General of the province or the minister of justice of the territory in which the application for the order was made to be notified of the decision. 2004, c. 10, s. 20 18. (1) Paragraph 490.018(1)(c) of the Act is replaced by the following: (c) that person to be informed of sections 4 to 7.1 of the Sex Offender Information Registration Act, sections 490.031 and 490.0311 of this Act and section 119.1 of the National Defence Act; and 2004, c. 10, s. 20 (2) Paragraph 490.018(3)(b) of the Act is replaced by the following: C. 5 National Defence, Criminal Code, Sex Offen Reco (b) under paragraph 672.54(b), that the person be discharged subject to conditions, unless the conditions restrict the person’s liberty in a manner and to an extent that prevent them from complying with sections 4, 4.1, 4.3 and 6 of the Sex Offender Information Registration Act. 2004, c. 10, s. 20 19. The heading before section 490.019 of the Act is replaced by the following: Notice and Obligation to Comply with the Sex Offender Information Registration Act 2004, c. 10, s. 20 20. (1) The portion of subsection 490.02(1) of the Act before paragraph (a) is replaced by the following: Persons who may be served 490.02 (1) The Attorney General of a province or minister of justice of a territory may serve a person with a notice only if the person was convicted of, or found not criminally responsible on account of mental disorder for, an offence referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) and 2004, c. 10, s. 20 (2) Paragraphs 490.02(2)(a) and (b) of the Act are replaced by the following: (a) if they have been finally acquitted of, or have received a free pardon granted under Her Majesty’s royal prerogative of mercy or under section 748 for, every offence in connection with which a notice may be served on them under section 490.021 of this Act or section 227.08 of the National Defence Act; (b) if an application has been made for an order under subsection 490.012(3) of this Act or subsection 227.01(3) of the National Defence Act in relation to any offence in connection with which a notice may be served on them under section 490.021 of this Act or section 227.08 of the National Defence Act; or 2004, c. 10, s. 20 (3) Paragraph 490.02(2)(c) of the English version of the Act is replaced by the following: 2006-2007 Défense nationale, Code criminel, Renseign judic (c) who is referred to in paragraph (1)(b) if they have provided proof of a pardon in accordance with subsection 9(1) of the Ontario Act. 2004, c. 10, s. 20 21. (1) Subsection 490.021(1) of the French version of the Act is replaced by the following: Signification 490.021 (1) L’avis est signifié à personne dans l’année qui suit la date d’entrée en vigueur de la Loi sur l’enregistrement de renseignements sur les délinquants sexuels. 2004, c. 10, s. 20 (2) Subsection 490.021(2) of the Act is replaced by the following: Exception (2) If a person referred to in paragraph 490.02(1)(a) is unlawfully at large or is in breach of any terms of their sentence or discharge, or of any conditions set under this Act or under Part III of the National Defence Act, that relate to residence, the notice may be served by registered mail at their last known address. 2004, c. 10, s. 20 22. (1) Paragraphs 490.022(1)(a) and (b) of the English version of the Act are replaced by the following: (a) either one year after the day on which the person is served with the notice or when an exemption order is refused under subsection 490.023(2), whichever is later; or (b) when an exemption order is quashed. 2004, c. 10, s. 20 (2) Paragraphs 490.022(3)(a) and (b) of the Act are replaced by the following: (a) ends 10 years after the person was sentenced, or found not criminally responsible on account of mental disorder, for the offence listed in the notice if the offence was prosecuted summarily or if the maximum term of imprisonment for the offence is two or five years; (b) ends 20 years after the person was sentenced, or found not criminally responsible on account of mental disorder, for the offence listed in the notice if the maximum term of imprisonment for the offence is 10 or 14 years; National Defence, Criminal Code, Sex Offen Reco C. 5 2004, c. 10, s. 20 (3) Paragraph 490.022(3)(c) of the English version of the Act is replaced by the following: (c) applies for life if the maximum term of imprisonment for the offence listed in the notice is life; or 2004, c. 10, s. 20 (4) Paragraph 490.022(3)(d) of the Act is replaced by the following: (d) applies for life if, at any time, the person was convicted of, or found not criminally responsible on account of mental disorder for, more than one offence that is referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of this Act or in paragraph (a) or (c) of the definition “designated offence” in section 227 of the National Defence Act and if more than one of those offences is listed in the notice. 2004, c. 10, s. 20 23. Subsection 490.023(1) of the Act is replaced by the following: Application for exemption order 490.023 (1) A person who is not subject to an order under section 490.012 of this Act or section 227.01 of the National Defence Act may apply for an order exempting them from the obligation within one year after they are served with a notice under section 490.021 of this Act or section 227.08 of the National Defence Act. Jurisdiction (1.1) The application shall be made to a court of criminal jurisdiction if (a) it relates to an obligation under section 490.019 of this Act; or (b) it relates to an obligation under section 227.06 of the National Defence Act and the Chief Military Judge does not have jurisdiction to receive the application under subsection 227.1(2) of that Act. 2004, c. 10, s. 20 24. Sections 490.025 and 490.026 of the Act are replaced by the following: Requirements relating to notice 490.025 If a court refuses to make an exemption order or an appeal court dismisses an appeal from such a decision or quashes an exemption order, it shall cause the Attorney 2006-2007 Défense nationale, Code criminel, Renseign judic General of the province or the minister of justice of the territory in which the application for the order was made to be notified of the decision, and shall cause the person who applied for the order to be informed of sections 4 to 7.1 of the Sex Offender Information Registration Act, sections 490.031 and 490.0311 of this Act and section 119.1 of the National Defence Act. Application for termination order 490.026 (1) A person who is subject to an obligation under section 490.019 and is not subject to an order under section 490.012 of this Act or section 227.01 of the National Defence Act may apply for a termination order. Time for application (2) A person may apply for a termination order if the following period has elapsed since they were sentenced, or found not criminally responsible on account of mental disorder, for an offence referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of this Act or in paragraph (a) or (c) of the definition “designated offence” in section 227 of the National Defence Act: (a) five years if the offence was prosecuted summarily or if the maximum term of imprisonment for the offence is two or five years; (b) 10 years if the maximum term of imprisonment for the offence is 10 or 14 years; or (c) 20 years if the maximum term of imprisonment for the offence is life. More than one offence (3) If more than one offence is listed in the notice served under section 490.021, the person may apply for a termination order if 20 years have elapsed since they were sentenced, or found not criminally responsible on account of mental disorder, for the most recent offence referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of this Act or in paragraph (a) or (c) of the definition “designated offence” in section 227 of the National Defence Act. National Defence, Criminal Code, Sex Offen Reco C. 5 Pardon (4) Despite subsections (2) and (3), a person may apply for a termination order once they receive a pardon. Re-application (5) A person whose application is refused may re-apply if five years have elapsed since they made the previous application. They may also re-apply once they receive a pardon. However, they may not re-apply under this subsection if an order is made with respect to them under section 490.012 of this Act or section 227.01 of the National Defence Act after the previous application was made. Jurisdiction (6) The application shall be made to a court of criminal jurisdiction if (a) it relates to an obligation under section 490.019 of this Act; or (b) it relates to an obligation under section 227.06 of the National Defence Act and the Chief Military Judge does not have jurisdiction to receive the application under subsection 227.12(6) of that Act. 2004, c. 10, s. 20 25. (1) Subsection 490.027(1) of the English version of the Act is replaced by the following: Termination order 490.027 (1) The court shall make an order terminating the obligation if it is satisfied that the person has established that the impact on them of continuing the obligation, including on their privacy or liberty, would be grossly disproportionate to the public interest in protecting society through the effective investigation of crimes of a sexual nature, to be achieved by the registration of information relating to sex offenders under the Sex Offender Information Registration Act. (2) Section 490.027 of the Act is amended by adding the following after subsection (2): Requirements relating to notice (3) If the court makes a termination order, it shall cause the Attorney General of the province or the minister of justice of the territory to be notified of the decision. 2004, c. 10, s. 20 26. Sections 490.028 and 490.029 of the Act are replaced by the following: 2006-2007 Défense nationale, Code criminel, Renseign judic Deemed application 490.028 If a person is eligible to apply for both an exemption order under section 490.023 and a termination order under section 490.026 within one year after they are served with a notice under section 490.021 of this Act or section 227.08 of the National Defence Act, an application within that period for one order is deemed to be an application for both. Appeal 490.029 (1) The Attorney General or the person who applied for a termination order may appeal from a decision of the court made under subsection 490.027(1) on any ground of appeal that raises a question of law or of mixed law and fact. The appeal court may dismiss the appeal, or allow it and order a new hearing, quash the termination order or make an order that may be made under that subsection. Requirements relating to notice (2) If the appeal court makes an order that may be made under subsection 490.027(1), it shall cause the Attorney General of the province or the minister of justice of the territory in which the application for the order was made to be notified of the decision. 2004, c. 10, s. 20 27. (1) Paragraphs 490.03(1)(a) and (b) of the Act are replaced by the following: (a) to the prosecutor if the disclosure is necessary for the purpose of a proceeding for an order under section 490.012; or (b) to the Attorney General if the disclosure is necessary for the purpose of a proceeding for a termination order under subsection 490.016(1) or 490.027(1) or an exemption order under subsection 490.023(2), or for the purpose of an appeal from a decision made in a proceeding under any of those subsections or in a proceeding for an order under section 490.012. 2004, c. 10, s. 20 (2) Subsections 490.03(2) to (4) of the Act are replaced by the following: Disclosure in connection with proceedings (2) If a person, in connection with a proceeding or an appeal other than one referred to in subsection (1), discloses the fact that information relating to them is registered in the database, the Commissioner shall, on request, disclose to the prosecutor or the Attorney General all of the information relating to the person that is registered in the database. National Defence, Criminal Code, Sex Offen Reco C. 5 Disclosure in proceedings (3) The prosecutor or the Attorney General may, if the information is relevant to the proceeding, appeal or any subsequent appeal, disclose it to the presiding court. 2004, c. 10, s. 20 28. (1) The portion of section 490.031 of the Act before paragraph (a) is replaced by the following: Offence 490.031 (1) Every person who, without reasonable excuse, fails to comply with an order made under section 490.012 of this Act or section 227.01 of the National Defence Act, or with an obligation under section 490.019 of this Act or section 227.06 of the National Defence Act, is guilty of an offence and liable (2) Section 490.031 of the Act is amended by adding the following after subsection (1): Reasonable excuse (2) For greater certainty, a lawful command that prevents a person from complying with an order or obligation is a reasonable excuse if, at the time, the person is subject to the Code of Service Discipline within the meaning of subsection 2(1) of the National Defence Act. 29. The Act is amended by adding the following after section 490.031: Offence 490.0311 Every person who knowingly provides false or misleading information under subsection 5(1) or 6(1) of the Sex Offender Information Registration Act is guilty of an offence and liable (a) in the case of a first offence, on summary conviction, to a fine of not more than $10,000 or to imprisonment for a term of not more than six months, or to both; and (b) in the case of a second or subsequent offence, (i) on conviction on indictment, to a fine of not more than $10,000 or to imprisonment for a term of not more than two years, or to both, or 2006-2007 Défense nationale, Code criminel, Renseign judic (ii) on summary conviction, to a fine of not more than $10,000 or to imprisonment for a term of not more than six months, or to both. 2004, c. 10, s. 21 30. (1) The paragraph before section 1 of Form 52 in Part XXVIII of the French version of the Act is replaced by the following: Vous avez été déclaré coupable d’avoir ............... (décrire chaque infraction), infraction(s) désignée(s) au sens du paragraphe 490.011(1) du Code criminel, en violation de ............. (citer la disposition du Code criminel relative à chaque infraction désignée) ou un verdict de non-responsabilité a été rendu à votre égard. 2004, c. 10, s. 21 (2) Sections 1 and 2 of Form 52 in Part XXVIII of the Act are replaced by the following: 1. You must report for the first time to the registration centre referred to in section 7.1 of the Sex Offender Information Registration Act, whenever required under subsection 4(1) of that Act. 2. You must subsequently report to the registration centre referred to in section 7.1 of the Sex Offender Information Registration Act, whenever required under section 4.1 or 4.3 of that Act, for a period of ...... years after this order is made (or if paragraph 490.013(2)(c) or any of subsections 490.013(3) to (5) of the Criminal Code applies, for life). 2004, c. 10, s. 21 (3) Section 5 of Form 52 in Part XXVIII of the Act is replaced by the following: 5. If you believe that the information registered in the database contains an error or omission, you may ask a person who collects information at the registration centre referred to in section 7.1 of the Sex Offender Information Registration Act or, if applicable, the Canadian Forces Provost Marshal, to correct the information. National Defence, Criminal Code, Sex Offen Reco C. 5 2004, c. 10, s. 21 31. (1) The paragraph before section 1 of Form 53 in Part XXVIII of the Act is replaced by the following: Because, on ....... (insert date(s)), you were convicted of, or found not criminally responsible on account of mental disorder for, ......... (insert description of offence(s)), one or more offences referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code or in paragraph (a) or (c) of the definition “designated offence” in section 227 of the National Defence Act, under ....... (insert the applicable offence provision(s)), this is provided to give you notice that you are required to comply with the Sex Offender Information Registration Act. 2004, c. 10, s. 21 (2) Sections 1 and 2 of Form 53 in Part XXVIII of the Act are replaced by the following: 1. You must report for the first time to the registration centre referred to in section 7.1 of the Sex Offender Information Registration Act, whenever required under subsection 4(2) of that Act. 2. You must subsequently report to the registration centre referred to in section 7.1 of the Sex Offender Information Registration Act, whenever required under section 4.1 or 4.3 of that Act, for a period of ....... years after you were sentenced, or found not criminally responsible on account of mental disorder, for the offence (or if paragraph 490.022(3)(c) or (d) of the Criminal Code applies, for life) or for any shorter period set out in subsection 490.022(2) of the Criminal Code. 2004, c. 10, s. 21 (3) Section 5 of Form 53 in Part XXVIII of the Act is replaced by the following: 5. If you believe that the information registered in the database contains an error or omission, you may ask a person who collects information at the registration centre referred to in section 7.1 of the Sex Offender Information 2006-2007 Défense nationale, Code criminel, Renseign judic Registration Act or, if applicable, the Canadian Forces Provost Marshal, to correct the information. 2004, c. 10 SEX OFFENDER INFORMATION REGISTRATION ACT 32. (1) The definitions “order”, “person who collects information”, “person who registers information”, “registration centre” and “sex offender” in subsection 3(1) of the Sex Offender Information Registration Act are replaced by the following: “order” « ordonnance » “order” means an order under section 490.012 of the Criminal Code or section 227.01 of the National Defence Act. “person who collects information” « préposé à la collecte » “person who collects information” means a person who is authorized to collect information under paragraph 18(1)(b) or subsection 19(1) of this Act or paragraph 227.2(c) of the National Defence Act. “person who registers information” « préposé à l’enregistrement » “person who registers information” means a person who is authorized to register information under paragraph 18(1)(c) or subsection 19(1) of this Act or paragraph 227.2(d) of the National Defence Act. “registration centre” « bureau d’inscription » “sex offender” « délinquant sexuel » “registration centre” means a place that is designated as a registration centre under paragraph 18(1)(d) or subsection 19(1) of this Act or paragraph 227.2(e) of the National Defence Act. “sex offender” means a person who is subject to one or more orders or to an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act. (2) Subsection 3(1) of the Act is amended by adding the following in alphabetical order: “finding of not criminally responsible on account of mental disorder” « verdict de nonresponsabilité » “finding of not criminally responsible on account of mental disorder” means a verdict of not criminally responsible on account of mental disorder within the meaning of subsection 672.1(1) of the Criminal Code or a finding of C. 5 National Defence, Criminal Code, Sex Offen Reco not responsible on account of mental disorder within the meaning of subsection 2(1) of the National Defence Act, as the case may be. 33. (1) Subsection 4(1) of the Act is repealed. (2) The portion of subsection 4(2) of the Act before paragraph (a) is replaced by the following: First obligation to report 4. (1) A person who is subject to an order shall report to a registration centre referred to in section 7.1 within 15 days after (3) Paragraph 4(1)(b) of the French version of the Act is replaced by the following: b) sa libération inconditionnelle ou sous conditions au titre de la partie XX.1 du Code criminel en cas de verdict de non-responsabilité à l’égard de l’infraction en cause; (4) Subsection 4(1) of the Act is amended by adding the following after paragraph (b): (b.1) they receive an absolute or conditional discharge or are released from custody under Division 7 of Part III of the National Defence Act, if they are found not criminally responsible on account of mental disorder for the offence in connection with which the order is made; (b.2) the imprisonment or detention to which they are sentenced for the offence in connection with which the order is made is suspended under section 215 or 216 of the National Defence Act; (5) The portion of subsection 4(3) of the Act before paragraph (a) is replaced by the following: First obligation to report (2) A person who is subject to an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act shall report to a registration centre referred to in section 7.1 of this Act (6) Paragraph 4(2)(b) of the Act is amended by adding the following after subparagraph (i): 2006-2007 Défense nationale, Code criminel, Renseign judic (i.1) they receive an absolute or conditional discharge or are released from custody under Division 7 of Part III of the National Defence Act, (i.2) an imprisonment or a detention to which they are sentenced is suspended under section 215 or 216 of the National Defence Act, (7) Section 4 of the Act is amended by adding the following after subsection (2): Means of reporting (3) If a sex offender is required to report to a registration centre designated under this Act, they shall report in person. If they are required to report to a registration centre designated under the National Defence Act, they shall report in person unless regulations are made under paragraph 227.2(a) of that Act, in which case they shall report in accordance with those regulations. 34. (1) Section 4.1 of the Act is renumbered as subsection 4.1(1). (2) The portion of subsection 4.1(1) of the Act before paragraph (a) is replaced by the following: Subsequent obligation to report 4.1 (1) A sex offender shall subsequently report to the registration centre referred to in section 7.1, (3) Section 4.1 of the Act is amended by adding the following after subsection (1): Means of reporting (2) If a sex offender is required to report to a registration centre designated under this Act, they shall report in person or in accordance with regulations made under paragraph 18(1)(a) or subsection 19(1). If they are required to report to a registration centre designated under the National Defence Act, they shall report in person unless regulations are made under paragraph 227.2(a) of that Act, in which case they shall report in accordance with those regulations. 35. Subsection 4.2(1) of the Act is replaced by the following: National Defence, Criminal Code, Sex Offen Reco C. 5 Obligation and order 4.2 (1) If a person who is subject to an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act becomes subject to an order, they shall report on the reporting dates established under the order only. 36. (1) Section 4.3 of the Act is renumbered as subsection 4.3(1). (2) Subsection 4.3(1) of the French version of the Act is replaced by the following: Séjour hors du Canada 4.3 (1) Le délinquant sexuel qui est à l’étranger au moment où il est tenu de comparaître en application de l’article 4.1 comparaît au bureau d’inscription au plus tard quinze jours après son retour. (3) Section 4.3 of the Act is amended by adding the following after subsection (1): Canadian Forces (2) Subsection (1) does not apply to a sex offender who is required to report to a registration centre designated under the National Defence Act while they are outside Canada. 37. (1) The portion of subsection 5(1) of the French version of the Act before paragraph (a) is replaced by the following: Obligation de fournir des renseignements 5. (1) Lorsqu’il comparaît au bureau d’inscription, le délinquant sexuel fournit les renseignements suivants au préposé à la collecte : (2) Subsection 5(1) of the Act is amended by adding the following after paragraph (d): (d.1) if applicable, their status as an officer or a non-commissioned member of the Canadian Forces within the meaning of subsection 2(1) of the National Defence Act and the address and telephone number of their unit within the meaning of that subsection; (3) Subsection 5(2) of the Act is replaced by the following: Additional information (2) When a sex offender reports to a registration centre, the person who collects the information from them may ask them when and 2006-2007 Défense nationale, Code criminel, Renseign judic where they were convicted of, or found not criminally responsible on account of mental disorder for, an offence in connection with which an order was made or, if they are subject to an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act, an offence referred to in paragraph (a), (c), (c.1), (d) or (e) of the definition “designated offence” in subsection 490.011(1) of the Criminal Code or in paragraph (a) or (c) of the definition “designated offence” in section 227 of the National Defence Act. 38. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following: Notification of absence 6. (1) A sex offender shall notify a person who collects information at the registration centre referred to in section 7.1 (2) Subsection 6(2) of the Act is replaced by the following: Means of notification (2) If a sex offender is required to provide notification to a registration centre designated under this Act, they shall provide the notification by registered mail or in accordance with regulations made under paragraph 18(1)(a) or subsection 19(1). If they are required to provide notification to a registration centre designated under the National Defence Act, they shall provide the notification by registered mail unless regulations are made under paragraph 227.2(a) of that Act, in which case they shall provide the notification in accordance with those regulations. 39. The Act is amended by adding the following after section 7: Registration centre 7.1 For the purposes of sections 4, 4.1, 4.3 and 6, the registration centre is one that is designated under paragraph 18(1)(d) or subsection 19(1) that serves the area of the province in which the sex offender’s main residence is located, unless a registration centre designated under paragraph 227.2(e) of the National Defence Act serves a class of persons of which the sex offender is a member or the area in which the unit of the Canadian Forces in which the sex offender is serving is located. C. 5 National Defence, Criminal Code, Sex Offen Reco 40. (1) Subsection 8(2) of the Act is repealed and subsection 8(1) is renumbered as section 8. (2) Subparagraph 8(a)(v) of the French version of the Act is replaced by the following: (v) les lieu et date de la déclaration de culpabilité ou du verdict de non-responsabilité pour chacune des infractions, 41. The Act is amended by adding the following after section 8: Registration of information 8.1 (1) When the Attorney General of a province or the minister of justice of a territory receives a copy of an affidavit of service and a notice sent in accordance with subsection 490.021(6) of the Criminal Code, a person who registers information for the Attorney General or the minister of justice shall register without delay in the database only the following information relating to the person who was served with the notice: (a) their given name and surname; (b) the number that identifies a record of fingerprints collected from them under the Identification of Criminals Act, if such a record exists; (c) the date on which the notice was served; (d) every offence listed in the notice; (e) when and where the offence or offences were committed; (f) when and where the person was convicted of, or found not criminally responsible on account of mental disorder for, the offence or offences; (g) the age and gender of every victim of the offence or offences, and the victim’s relationship to the person; (h) the expected duration of the person’s obligation under section 490.019 of the Criminal Code; and (i) in the case of a person referred to in paragraph 490.02(1)(b) of the Criminal Code, the date, if any, on which the person last 2006-2007 Défense nationale, Code criminel, Renseign judic reported under the Ontario Act and the duration of their obligation to comply with section 3 of that Act. Registration of information (2) When the Attorney General of a province or the minister of justice of a territory receives a notice referred to in subsection 490.016(3), 490.017(2), 490.027(3) or 490.029(2) of the Criminal Code, a person who registers information for the Attorney General or the minister of justice shall register without delay in the database the fact that a termination order was made. Registration of information (3) A person who registers information for the Attorney General of a province or the minister of justice of a territory may register in the database the fact that a person has applied in that jurisdiction for an exemption order under section 490.023 of the Criminal Code. Registration of information (4) When the Attorney General of a province or the minister of justice of a territory receives a notice referred to in section 490.025 of the Criminal Code, a person who registers information for the Attorney General or the minister of justice shall register without delay in the database the fact that the court refused to make an exemption order under subsection 490.023(2) of that Act or that the appeal court dismissed an appeal from such a decision or quashed an exemption order. Registration of information (5) A person who registers information for the Attorney General of a province or the minister of justice of a territory may register in the database the date on which the custodial portion of a sex offender’s sentence or detention in custody begins and the date of their release or discharge if (a) the sex offender was prosecuted in that jurisdiction for the offence to which the sentence or detention relates; and (b) the offence was not prosecuted under the National Defence Act. Confidentiality and copy of information (6) A person who registers information under this section shall (a) ensure that the registration of the information is done in a manner and in circumstances that ensure its confidentiality; and C. 5 National Defence, Criminal Code, Sex Offen Reco (b) once the information is registered, on request, send the sex offender or the person served with a notice under section 490.021 of the Criminal Code a copy of all of the information relating to them that is registered in the database, by registered mail, free of charge and without delay. Registration of information — Canadian Forces 8.2 (1) When the Canadian Forces Provost Marshal receives a copy of an order sent in accordance with subparagraph 227.05(1)(d)(iii) of the National Defence Act, a person who registers information for the Provost Marshal shall register without delay in the database only the following information relating to the person who is subject to the order: (a) their given name and surname; (b) the number that identifies a record of fingerprints collected from them under the Identification of Criminals Act, if such a record exists; (c) every offence to which the order relates; (d) when and where the offence or offences were committed; (e) when and where the person was convicted of, or found not criminally responsible on account of mental disorder for, the offence or offences; (f) the age and gender of every victim of the offence or offences, and the victim’s relationship to the person; and (g) the date and duration of the order. Registration of information — Canadian Forces (2) When the Canadian Forces Provost Marshal receives a copy of an affidavit of service and a notice sent in accordance with subsection 227.08(4) of the National Defence Act, a person who registers information for the Provost Marshal shall register without delay in the database only the following information relating to the person who was served with the notice: (a) their given name and surname; 2006-2007 Défense nationale, Code criminel, Renseign judic (b) the number that identifies a record of fingerprints collected from them under the Identification of Criminals Act, if such a record exists; (c) the date on which the notice was served; (d) every offence listed in the notice; (e) when and where the offence or offences were committed; (f) when and where the person was convicted of, or found not criminally responsible on account of mental disorder for, the offence or offences; (g) the age and gender of every victim of the offence or offences, and the victim’s relationship to the person; and (h) the expected duration of the person’s obligation under section 227.06 of the National Defence Act. Registration of information — Canadian Forces (3) When the Canadian Forces Provost Marshal receives a notice referred to in subsection 227.04(3), 227.13(3) or 240.5(3) of the National Defence Act, a person who registers information for the Provost Marshal shall register without delay in the database the fact that a termination order was made. Registration of information — Canadian Forces (4) A person who registers information for the Canadian Forces Provost Marshal may register in the database the fact that a person has applied for an exemption order under section 227.1 of the National Defence Act. Registration of information — Canadian Forces (5) When the Canadian Forces Provost Marshal receives a notice referred to in section 227.11 of the National Defence Act, a person who registers information for the Provost Marshal shall register without delay in the database the fact that a court martial refused to make an exemption order under subsection 227.1(4) of that Act or that the Court Martial Appeal Court dismissed an appeal from such a decision or quashed an exemption order. Registration of information — Canadian Forces (6) A person who registers information for the Canadian Forces Provost Marshal may register in the database the date on which the custodial portion of a sex offender’s sentence or C. 5 National Defence, Criminal Code, Sex Offen Reco detention in custody begins and the date of their release or discharge, if the sex offender was prosecuted under the National Defence Act for the offence to which the sentence or detention relates. Registration of information — Canadian Forces (7) A person who registers information for the Canadian Forces Provost Marshal shall register without delay in the database (a) the fact that a person is the subject of a determination under subsection 227.15(1) of the National Defence Act, the effect of the determination on the person, the date on which the suspension of the time limit, proceeding or obligation first applies and the date on which it ceases to apply; (b) the fact that a person is the subject of a determination under subsection 227.16(1) of the National Defence Act and the date on which the determination was made; and (c) the fact that a person has become, or has ceased to be, subject to a regulation made under paragraph 227.2(a) or (e) of the National Defence Act. Confidentiality and copy of information (8) A person who registers information under this section shall (a) ensure that the registration of the information is done in a manner and in circumstances that ensure its confidentiality; and (b) once the information is registered under any of subsections (2) to (7), on request, send the sex offender or the person served with a notice under section 227.08 of the National Defence Act a copy of all of the information relating to them that is registered in the database, by registered mail, free of charge and without delay. 42. Paragraphs 10(a) and (b) of the Act are replaced by the following: (a) shall, subject to paragraph (b) and any regulations made under paragraph 19(3)(c), register without delay in the database only the information collected under sections 5 and 6, 2006-2007 Défense nationale, Code criminel, Renseign judic the date on which the sex offender reported or provided notification to the registration centre and the province of registration; (b) may register at any time in the database the number that identifies a record of fingerprints collected from a sex offender under the Identification of Criminals Act, if such a record exists; and 43. (1) The portion of section 11 of the French version of the Act before paragraph (a) is replaced by the following: Copie des renseignements 11. Il incombe au préposé à la collecte au bureau d’inscription, sans frais pour le délinquant sexuel : (2) Paragraph 11(a) of the Act is replaced by the following: (a) either give a copy of the information collected under section 5, dated and signed by the person who collected it, to the sex offender when they report to the registration centre in person and provide information under this Act, or send it to the sex offender by mail or another means agreed to by the sex offender, without delay after it is collected, if they report other than in person; 44. (1) Subsection 12(1) of the Act is replaced by the following: Request for correction of information 12. (1) Subject to subsection (2), a sex offender or a person served with a notice under section 490.021 of the Criminal Code or section 227.08 of the National Defence Act may, at any time, ask a person who collects information at the registration centre referred to in section 7.1 to correct any information relating to them that is registered in the database and that they believe contains an error or omission. Request for correction of information (2) The request shall be made to the Canadian Forces Provost Marshal if the information is registered in the database under section 8.2. C. 5 National Defence, Criminal Code, Sex Offen Reco (2) The portion of subsection 12(2) of the Act before paragraph (a) is replaced by the following: Correction or notation (3) The person to whom the request is made shall, without delay, ensure that 45. Section 13 of the Act is replaced by the following: Authorization for research 13. (1) The Commissioner of the Royal Canadian Mounted Police may authorize a person to consult information that is registered in the database, compare the information with other information or, by electronic means, combine the information with, or link it to, any other information contained in a computer system within the meaning of subsection 342.1(2) of the Criminal Code, for research or statistical purposes. Conditions (2) The Commissioner shall not provide the authorization unless the Commissioner (a) is satisfied that those purposes cannot reasonably be accomplished without consulting the information or without comparing or combining the information with, or linking it to, the other information, as the case may be; and (b) obtains from the person a written undertaking that no subsequent disclosure of the information or of any information resulting from the comparison or combination of the information with, or the linking of the information to, other information will be made, or be allowed to be made, in a form that could reasonably be expected to identify any individual to whom it relates. 46. Subsections 15(2) and (3) of the Act are replaced by the following: Permanent removal and destruction of information (2) Despite any other Act of Parliament, all information that is collected under this Act, or registered in the database, in connection with an order shall be destroyed and permanently removed from the database if (a) the person who is subject to the order is finally acquitted of every offence in connection with which the order was made or receives a free pardon granted under Her 2006-2007 Défense nationale, Code criminel, Renseign judic Majesty’s royal prerogative of mercy or under section 748 of the Criminal Code for every such offence; or (b) the sentence for every offence in connection with which the order was made ceases to have force and effect under subsection 249.11(2) of the National Defence Act. Permanent removal and destruction of information (3) Despite any other Act of Parliament, all information that is collected under this Act, or registered in the database, in connection with an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act shall be destroyed and permanently removed from the database if (a) the person who is subject to the obligation is finally acquitted of every offence to which it relates or receives a free pardon granted under Her Majesty’s royal prerogative of mercy or under section 748 of the Criminal Code for every such offence; (b) the sentence for every offence to which the obligation relates ceases to have force and effect under subsection 249.11(2) of the National Defence Act; or (c) the person who is subject to the obligation is granted an exemption order under subsection 490.023(2) of the Criminal Code or subsection 227.1(4) of the National Defence Act or on an appeal from a decision made under that subsection. 47. (1) Paragraph 16(2)(b) of the Act is replaced by the following: (b) a person who collects information at a registration centre designated under this Act in the province in which a sex offender’s main residence is located who consults the information to verify compliance by the sex offender with an order or orders or with an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act; (b.1) a person who collects information at a registration centre designated under the National Defence Act who consults the information to verify compliance by a sex offender who is subject to the Code of Service C. 5 National Defence, Criminal Code, Sex Offen Reco Discipline, or who is an officer, or noncommissioned member, of the primary reserve as defined in section 227 of the National Defence Act, with an order or orders or with an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act; (2) Paragraph 16(2)(c) of the English version of the Act is replaced by the following: (c) a person who collects or registers information who consults the information in order to exercise the functions or perform the duties assigned to them under this Act; (3) Paragraph 16(2)(e) of the Act is replaced by the following: (e) the Commissioner of the Royal Canadian Mounted Police or a person authorized by the Commissioner who consults information that is collected under this Act or registered in the database in order to perform the duties of the Commissioner under this Act, under subsection 490.03(1) or (2) of the Criminal Code or under subsection 227.18(1) or 227.19(1) of the National Defence Act; or (4) Subsection 16(3) of the Act is replaced by the following: Unauthorized comparison of information (3) No person shall compare any information that is collected under this Act or registered in the database with any other information unless (a) they compare information that was consulted in accordance with paragraph (2)(a) with other information for the purpose of investigating a specific crime that there are reasonable grounds to suspect is of a sexual nature; (b) they compare information that was consulted in accordance with paragraph (2)(b) or (b.1) with other information to verify compliance by the sex offender with one or more orders or with an obligation under section 490.019 of the Criminal Code or section 227.06 of the National Defence Act, or to investigate an offence under section 490.031 or 490.0311 of the Criminal Code, an offence under either of those provisions that is 2006-2007 Défense nationale, Code criminel, Renseign judic punishable under section 130 of the National Defence Act, or an offence under section 119.1 of the National Defence Act; or (c) they compare the information in accordance with an authorization under section 13. Unauthorized combination or linking of information (3.1) No person shall, by electronic means, combine any information that is collected under this Act or registered in the database with, or link it to, any other information contained in a computer system within the meaning of subsection 342.1(2) of the Criminal Code unless (a) they combine the information that is registered in the database with, or link it to, information contained in the sex offender registry established under the Ontario Act, for the purpose of registering information under section 8, 8.1 or 10; or (b) they combine or link information in accordance with an authorization under section 13. (5) The portion of subsection 16(4) of the French version of the Act before paragraph (a) is replaced by the following: Communication interdite (4) Il est interdit à quiconque de communiquer ou laisser communiquer les renseignements recueillis au titre de la présente loi ou enregistrés dans la banque de données, ou le fait que des renseignements ont été recueillis ou enregistrés à l’égard d’une personne, à moins que la communication : (6) Paragraphs 16(4)(a) to (g) of the Act are replaced by the following: (a) unless the disclosure is to the sex offender, or the person served with a notice under section 490.021 of the Criminal Code or section 227.08 of the National Defence Act, to whom the information relates; (b) unless the disclosure is expressly authorized under this Act, the Criminal Code or the National Defence Act; (c) unless the disclosure is to a member or an employee of, or a person retained by, a police service and is necessary C. 5 National Defence, Criminal Code, Sex Offen Reco (i) to enable them to investigate an offence under section 17 or to lay a charge for such an offence, (ii) to enable them to investigate a specific crime that there are reasonable grounds to suspect is of a sexual nature, an offence under section 119.1 of the National Defence Act, an offence under section 490.031 or 490.0311 of the Criminal Code or an offence under either of those provisions that is punishable under section 130 of the National Defence Act, or to lay a charge for such an offence, or (iii) to enable them to investigate a criminal offence or a service offence within the meaning of subsection 2(1) of the National Defence Act or to lay a charge for such an offence, as long as the investigation or charge results from an investigation referred to in subparagraph (ii); (d) unless the disclosure is to a prosecutor and is necessary to enable the prosecutor to determine whether a charge for an offence resulting from an investigation referred to in paragraph (c) should be laid; (e) unless the disclosure is to a person who is responsible under the National Defence Act for laying, referring or preferring a charge for a service offence and to a person who provides legal advice with respect to the charge, and the disclosure is necessary to enable them to determine whether a charge for a service offence resulting from an investigation referred to in paragraph (c) should be laid, referred or preferred; (f) unless the disclosure is to a prosecutor, judge or justice in a proceeding relating to an application for a search warrant in connection with an investigation referred to in paragraph (c), and the information is relevant to the application; (g) unless the disclosure is to a person who is authorized under the National Defence Act to issue a search warrant in connection with the investigation of a service offence and to a person who provides legal advice with respect to the issuance of the search warrant, 2006-2007 Défense nationale, Code criminel, Renseign judic and the information is relevant to an application for a search warrant in connection with an investigation referred to in paragraph (c); (h) unless the information disclosed is relevant to the proceeding, appeal or review and the disclosure is (i) to a prosecutor in connection with a proceeding that results from an investigation referred to in paragraph (c) and that is before a court of criminal jurisdiction or superior court of criminal jurisdiction within the meaning of section 2 of the Criminal Code or a service tribunal within the meaning of subsection 2(1) of the National Defence Act, (ii) to the Attorney General within the meaning of section 2 of the Criminal Code, or the Minister of National Defence or counsel instructed by the Minister, in connection with an appeal of a decision made in such a proceeding, (iii) to the court or service tribunal presiding over the proceeding or appeal and, in the case of a summary trial under the National Defence Act, to a person who provides legal advice to the presiding officer, or (iv) to a review authority under section 249 of the National Defence Act and to a person who provides legal advice to the review authority in connection with its review of a finding of guilty made or punishment imposed in the proceeding or appeal; (i) unless the disclosure to the person is necessary to assist an investigation of any act or omission referred to in subsection 7(4.1) of the Criminal Code by a police service in the state where the act or omission was committed; (j) unless the disclosure is to an employee of, or a person retained by, a person referred to in any of paragraphs (d) to (i) who is authorized by that person to receive information disclosed under that paragraph on their behalf; or C. 5 National Defence, Criminal Code, Sex Offen Reco (k) unless the disclosure is by a person who is authorized under section 13 to consult information that is registered in the database or to compare or combine that information with, or link it to, other information, the disclosure is for research or statistical purposes and it is not made, or allowed to be made, in a form that could reasonably be expected to identify any individual to whom it relates. (7) Subsection 16(5) of the Act is replaced by the following: Unauthorized use (5) No person shall use any information that is collected under this Act or registered in the database, or allow it to be used, for a purpose other than that for which it is consulted, compared, combined, linked or disclosed, as the case may be, under this section. 48. Subsection 17(1) of the Act is repealed and subsection 17(2) is renumbered as section 17. 49. Paragraph 18(1)(a) of the Act is replaced by the following: (a) respecting the means by which designated classes of persons may report under section 4.1 or 4.3, or provide notification under section 6, to registration centres designated under paragraph (d); R.S., c. C-47 2004, c. 10, s. 23 CRIMINAL RECORDS ACT 50. Paragraph 5(b) of the Criminal Records Act is replaced by the following: (b) unless the pardon is subsequently revoked or ceases to have effect, requires the judicial record of the conviction to be kept separate and apart from other criminal records and removes any disqualification or obligation to which the person so convicted is, by reason of the conviction, subject by virtue of the provisions of any Act of Parliament, other than section 109, 110, 161, 259, 490.012 or 490.019 of the Criminal Code or subsection 147.1(1) or section 227.01 or 227.06 of the National Defence Act, or of a regulation made under an Act of Parliament. 2006-2007 Défense nationale, Code criminel, Renseign judic COORDINATING AMENDMENTS 2004, c. 10 51. If section 32 of this Act comes into force on or before December 15, 2006, then, on the day on which that section 32 comes into force (a) section 21.1 of the Sex Offender Information Registration Act and the heading before it are repealed; and (b) the Sex Offender Information Registration Act is amended by adding the following after section 19: REVIEW AND REPORT TO PARLIAMENT Review 19.1 (1) Two years after this Act comes into force, a committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established for the purpose shall undertake a comprehensive review of sections 1 to 19 of this Act, sections 490.011 to 490.032 of the Criminal Code, sections 119.1 and 227 to 227.21, paragraphs 230(g) and 230.1 (h), section 230.2, subsection 232(3) and section 240.5 of the National Defence Act, and of the operation of those provisions. Report (2) The committee shall submit a report on the review to Parliament, including a statement of any changes that it recommends, within six months after it undertakes the review or within any further time authorized by the Senate, the House of Commons or both Houses of Parliament, as the case may be. 2005, c. 25 52. (1) If section 3 of this Act comes into force before section 30 of An Act to amend the Criminal Code, the DNA Identification Act and the National Defence Act, chapter 25 of the Statutes of Canada, 2005 (the “other Act”), then, on the day on which that section 30 comes into force, subsection 202.14(1) of the French version of the National Defence Act, as enacted by that section 30, is replaced by the following: Verdict de nonresponsabilité pour cause de troubles mentaux 202.14 (1) La cour martiale qui conclut que l’accusé a commis l’acte ou l’omission qui a donné lieu à l’accusation et que l’accusé était C. 5 National Defence, Criminal Code, Sex Offen Reco atteint, au moment de la perpétration de l’acte ou de l’omission, de troubles mentaux de nature à ne pas engager sa responsabilité doit rendre un verdict portant que l’accusé a commis l’acte ou l’omission mais n’est pas responsable pour cause de troubles mentaux. (2) If section 3 of this Act comes into force on the same day as section 30 of the other Act, then section 30 of the other Act is deemed to have come into force before section 3 of this Act. COMING INTO FORCE Order in council 53. This Act, other than sections 51 and 52, comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 17 An Act to amend the First Nations Land Management Act ASSENTED TO 22nd JUNE, 2007 BILL S-6 SUMMARY This enactment amends the First Nations Land Management Act to incorporate, to the extent provided for by the Framework Agreement on First Nation Land Management, the concepts and terminology of the civil law of the Province of Quebec. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 17 An Act to amend the First Nations Land Management Act [Assented to 22nd June, 2007] 1999, c. 24 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. (1) The definition “intérêts” in subsection 2(1) of the French version of the First Nations Land Management Act is repealed. (2) The definitions “first nation land” and “licence” in subsection 2(1) of the Act are replaced by the following: “first nation land” « terres de la première nation » “licence” « permis » “first nation land” means reserve land to which a land code applies and includes all the interests or rights in, and resources of, the land that are within the legislative authority of Parliament. “licence”, in relation to first nation land, means (a) in Canada elsewhere than in Quebec, any right of use or occupation of the land other than an interest in that land; (b) in Quebec, any right to use or occupy the land other than a right as defined in this subsection. (3) The definition “interest” in subsection 2(1) of the English version of the Act is replaced by the following: 2 “interest” « intérêt » C. 17 First Nations La “interest”, in relation to first nation land in Canada elsewhere than in Quebec, means any estate, right or interest of any nature in or to the land, but does not include title to the land. (4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “right” « droit » “right”, in relation to first nation land in Quebec, means any right of any nature in or to that land, including the rights of a lessee, but does not include title to the land. (5) Subsection 2(1) of the French version of the Act is amended by adding the following in alphabetical order: « intérêt » “interest” « intérêt » S’agissant des terres de la première nation situées au Canada mais ailleurs qu’au Québec, tout domaine, droit ou autre intérêt portant sur celles-ci; est cependant exclu le titre de propriété. 2. (1) Paragraphs 6(1)(b) and (c) of the Act are replaced by the following: (b) the general rules and procedures applicable to the use and occupancy of first nation land, including use and occupancy under (i) licences and leases, and (ii) interests or rights in first nation land held pursuant to allotments under subsection 20(1) of the Indian Act or pursuant to the custom of the first nation; (c) the procedures that apply to the transfer, by testamentary disposition or succession, of any interest or right in first nation land; (2) Paragraph 6(1)(f) of the Act is replaced by the following: (f) a community consultation process for the development of general rules and procedures respecting, in cases of breakdown of marriage, the use, occupation and possession of first nation land and the division of interests or rights in first nation land; (3) Paragraphs 6(1)(i) and (j) of the Act are replaced by the following: 2006-2007 Gestion des terres de (i) the establishment or identification of a forum for the resolution of disputes in relation to interests or rights in first nation land; (j) the general rules and procedures that apply in respect of the granting or expropriation by the first nation of interests or rights in first nation land; (4) Paragraph 6(3)(b) of the Act is replaced by the following: (b) a description of the interests or rights and licences that have been granted by Her Majesty in or in relation to that land, and the date and other terms of the transfer to the first nation of Her Majesty’s rights and obligations as grantor of those interests or rights and licences; 3. Subsection 7(2) of the Act is replaced by the following: Condition (2) A portion of a reserve may not be excluded from a land code if the exclusion would have the effect of placing the administration of a lease, other interest or a right in that land in more than one land management regime. 4. Subsection 10(4) of the Act is replaced by the following: Third parties (4) If other persons have an interest or right in the land that is to be subject to the proposed land code, the council shall, within a reasonable time before the vote, take appropriate measures to inform those persons of the proposed land code, this Act and the date of the vote. 5. Section 16 of the Act is replaced by the following: Effect 16. (1) After the coming into force of a land code, no interest or right in or licence in relation to first nation land may be acquired or granted except in accordance with the land code of the first nation. Interests or rights of third parties (2) Subject to subsections (3) and (4), interests or rights in and licences in relation to first nation land that exist on the coming into force of a land code continue in accordance with their terms and conditions. C. 17 Transfer of rights of Her Majesty (3) On the coming into force of the land code of a first nation, the rights and obligations of Her Majesty as grantor in respect of the interests or rights and the licences described in the first nation’s individual agreement are transferred to the first nation in accordance with that agreement. Interests and rights of first nation members (4) Interests or rights in first nation land held on the coming into force of a land code by first nation members pursuant to allotments under subsection 20(1) of the Indian Act or pursuant to the custom of the first nation are subject to the provisions of the land code governing the transfer and lease of interests or rights in first nation land and sharing in natural resource revenues. First Nations La 6. Subsection 17(1) of the Act is replaced by the following: Obligation of first nation 17. (1) A first nation shall, in accordance with the Framework Agreement and following the community consultation process provided for in its land code, establish general rules and procedures, in cases of breakdown of marriage, respecting the use, occupation and possession of first nation land and the division of interests or rights in first nation land. 7. (1) Paragraph 18(1)(b) of the Act is replaced by the following: (b) grant interests or rights in and licences in relation to that land; (2) Paragraph 18(2)(a) of the Act is replaced by the following: (a) acquire and hold property; 8. (1) Paragraph 20(1)(a) of the Act is replaced by the following: (a) interests or rights in and licences in relation to first nation land; (2) Paragraph 20(2)(b) of the Act is replaced by the following: 2006-2007 Gestion des terres de (b) subject to section 5, the creation, acquisition and granting of interests or rights in and licences in relation to first nation land and prohibitions in relation thereto; 9. (1) The portion of subsection 25(3) of the Act before paragraph (b) is replaced by the following: Regulations (3) The Governor in Council may, on the recommendation of the Minister and in accordance with the Framework Agreement, make regulations respecting the administration of the First Nation Land Register, the registration of interests or rights in it and the recording of any other matter, including but not limited to regulations respecting (a) the effects of registering interests or rights, including priorities; (2) Paragraph 25(3)(b) of the English version of the Act is replaced by the following: (b) the payment of fees for the registration of interests or rights and for any other service in relation to the Register; 10. Subsection 26(2) of the Act is replaced by the following: Expropriation (2) Interests or rights in first nation land may not be expropriated except by Her Majesty or a first nation in accordance with the Framework Agreement and this Act. 11. (1) Subsections 28(1) and (2) of the Act are replaced by the following: Expropriation by a first nation 28. (1) A first nation may, in accordance with the general rules and procedures contained in its land code, expropriate any interest or right in its first nation land that, in the opinion of its council, is necessary for community works or other first nation community purposes. Exception (2) An interest or right in first nation land obtained under section 35 of the Indian Act or held by Her Majesty is not subject to expropriation by a first nation. C. 17 First Nations La (2) Subsection 28(3) of the English version of the Act is replaced by the following: Effective date (3) An expropriation takes effect from the day on which a notice of expropriation is registered in the First Nation Land Register or the thirtieth day after the day on which the notice is served on the person whose interest or right is expropriated, whichever is the earlier. (3) Subsections 28(4) and (5) of the Act are replaced by the following: Effect of expropriation (4) An expropriated interest becomes the property of the first nation free of any previous claim or encumbrance. In Quebec, a first nation becomes the holder of an expropriated right free of any previous right, charge or claim. Compensation (5) A first nation shall pay fair compensation to the holder of an expropriated interest or right and, in determining that compensation, the first nation shall apply the rules set out in the Expropriation Act, with such modifications as the circumstances require. 12. (1) Subsection 29(1) of the Act is replaced by the following: Expropriation by Her Majesty 29. (1) An interest or right in first nation land may be expropriated by Her Majesty for the use of a federal department or agency and with the consent and by order of the Governor in Council. (2) Paragraphs 29(3)(b) and (c) of the Act are replaced by the following: (b) reasonable efforts have been made to acquire the interest or right through agreement with the first nation; (c) the most limited interest or right necessary is expropriated for the shortest time possible; and 13. (1) The portion of section 30 of the Act before paragraph (a) is replaced by the following: 2006-2007 Partial expropriation Gestion des terres de 30. If less than the full interest of a first nation, or less than the entire right of a first nation, in first nation land is expropriated by Her Majesty, (2) Paragraph 30(a) of the English version of the Act is replaced by the following: (a) the land in which an interest or right is expropriated continues to be first nation land and subject to the provisions of the land code and first nation laws that are not inconsistent with the expropriation; and 14. (1) The portion of subsection 31(1) of the Act before paragraph (a) is replaced by the following: Compensation 31. (1) Where an interest or right in first nation land is expropriated by Her Majesty, compensation shall be provided to the first nation consisting of (2) Subsection 31(2) of the English version of the Act is replaced by the following: Land of a lesser area (2) Land provided to a first nation as compensation may be of an area that is less than the area of the land in which an interest or right has been expropriated if the total area of the land comprised in a reserve of the first nation is not less following the expropriation than at the coming into force of its land code. (3) Paragraph 31(3)(a) of the Act is replaced by the following: (a) the market value of the expropriated interest or right or of the land in which an interest or right has been expropriated; (4) Paragraph 31(3)(d) of the Act is replaced by the following: (d) any reduction in the value of any interest or right in first nation land that is not expropriated; (5) Subsection 31(6) of the Act is replaced by the following: C. 17 Limit (6) Any claim or encumbrance in respect of an interest expropriated by Her Majesty may only be made or discharged against the compensation paid under this section. In Quebec, any right, charge or claim in respect of a right expropriated by Her Majesty may only be made or discharged against the compensation paid under this section. First Nations La 15. (1) Subsections 32(1) and (2) of the Act are replaced by the following: Restitution 32. (1) An interest or right in first nation land expropriated by Her Majesty that is no longer required for the purpose for which it was expropriated shall revert to the first nation and, if the full interest or the entire right of the first nation was expropriated, it shall be returned to the first nation in accordance with terms and conditions negotiated by the first nation and the expropriating department or agency. Improvements (2) When an interest or right reverts or is returned to a first nation, the minister responsible for the expropriating department or agency shall determine the disposition of any improvements made to the land. (2) Subsection 32(3) of the English version of the Act is replaced by the following: Dispute (3) If the first nation and the expropriating department or agency cannot agree on the terms and conditions of the return of the full interest or of the entire right, the first nation or the department or agency may, in accordance with the Framework Agreement, refer the matter to an arbitrator. 16. Section 33 of the Act is replaced by the following: Expropriation Act 33. Without limiting the generality of section 37, in the event of any inconsistency or conflict between this Act and the Expropriation Act in relation to the expropriation of interests or rights in first nation land by Her Majesty, this Act prevails to the extent of the inconsistency or conflict. 17. Subsections 38(2) and (3) of the Act are replaced by the following: 2006-2007 Gestion des terres de Leasehold interests or leases (2) Subsection 89(1.1) of the Indian Act continues to apply to leasehold interests or leases in any first nation land that was designated land on the coming into force of a first nation’s land code. Application (3) A land code may extend the application of subsection 89(1.1) of the Indian Act, or any portion of it, to other leasehold interests or leases in first nation land. 18. Paragraph 39(1)(b) of the Act is replaced by the following: (b) applies in respect of an interest or right in first nation land that is granted to Her Majesty for the exploitation of oil and gas pursuant to a land code. Coming into force 19. This Act comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 15 An Act to provide for emergency management and to amend and repeal certain Acts ASSENTED TO 22nd JUNE, 2007 BILL C-12 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to provide for emergency management and to amend and repeal certain Acts”. SUMMARY This enactment provides for a national emergency management system that strengthens Canada’s capacity to protect Canadians. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO PROVIDE FOR EMERGENCY MANAGEMENT AND TO AMEND AND REPEAL CERTAIN ACTS SHORT TITLE 1. Emergency Management Act INTERPRETATION 2. Definitions 3. Ministerial responsibilities — general 4. Responsibilities — Canada 5. Responsibilities — United States MINISTER’S RESPONSIBILITIES MINISTERS’ RESPONSIBILITIES 6. Ministers’ responsibilities 7. Orders or regulations ORDERS OR REGULATIONS RELATED AMENDMENTS 8-10. Access to Information Act 11. Department of Public Safety and Emergency Preparedness Act COORDINATING AMENDMENT 12. Bill C-2 13. Emergency Preparedness Act REPEAL COMING INTO FORCE 14. Order in council 55-56 ELIZABETH II —————— CHAPTER 15 An Act to provide for emergency management and to amend and repeal certain Acts [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Emergency Management Act. INTERPRETATION Definitions “emergency management” « gestion » “emergency management plan” « plan de gestion des urgences » 2. The following definitions apply in this Act. “emergency management” means the prevention and mitigation of, preparedness for, response to and recovery from emergencies. “emergency management plan” means a program, arrangement or other measure (a) for dealing with an emergency by the civil population; or (b) for dealing with a civil emergency by the Canadian Forces in accordance with the National Defence Act. “government institution” « institution fédérale » “Minister” « ministre » “government institution” means any department, branch, office, board, agency, commission, corporation or other body for the administration or affairs of which a minister of the Crown is accountable to Parliament. “Minister” means the Minister of Public Safety and Emergency Preparedness. 2 “provincial emergency” « urgence provinciale » C. 15 Emergency M “provincial emergency” means an emergency occurring in a province if the province or a local authority in the province has the primary responsibility for dealing with the emergency. MINISTER’S RESPONSIBILITIES Ministerial responsibilities — general 3. The Minister is responsible for exercising leadership relating to emergency management in Canada by coordinating, among government institutions and in cooperation with the provinces and other entities, emergency management activities. Responsibilities — Canada 4. (1) The Minister’s responsibilities under section 3 include (a) establishing policies, programs and other measures respecting the preparation, maintenance, testing and implementation by a government institution of emergency management plans; (b) providing advice to government institutions respecting the preparation, maintenance, testing and implementation of emergency management plans; (c) analysing and evaluating emergency management plans prepared by government institutions; (d) monitoring potential, imminent and actual emergencies and advising other ministers accordingly; (e) coordinating the Government of Canada’s response to an emergency; (f) coordinating the activities of government institutions relating to emergency management with those of the provinces — and supporting the emergency management activities of the provinces — and through the provinces, those of local authorities; (g) establishing arrangements with each province whereby any consultation with its lieutenant governor in council with respect to a declaration of an emergency under an Act of Parliament may be carried out effectively; (h) coordinating the provision of assistance to a province in respect of a provincial emergency, other than the provision of financial assistance and the calling out of 2006-2007 Gestion de the Canadian Forces for service in aid of the civil power under Part VI of the National Defence Act; (i) providing assistance other than financial assistance to a province if the province requests it; (j) providing financial assistance to a province if (i) a provincial emergency in the province has been declared to be of concern to the federal government under section 7, (ii) the Minister is authorized under that section to provide the assistance, and (iii) the province has requested the assistance; (k) participating, in accordance with Canada’s foreign relations policies, in international emergency management activities; (l) establishing the necessary arrangements for the continuity of constitutional government in the event of an emergency; (m) establishing policies and programs respecting emergency management; (n) conducting exercises and providing education and training related to emergency management; (o) promoting a common approach to emergency management, including the adoption of standards and best practices; (p) conducting research related to emergency management; (q) promoting public awareness of matters related to emergency management; and (r) facilitating the authorized sharing of information in order to enhance emergency management. C. 15 Other responsibilities (2) The Minister has any other responsibilities in relation to emergency management that the Governor in Council may specify. Responsibilities — United States 5. In consultation with the Minister of Foreign Affairs, the Minister may develop joint emergency management plans with the relevant United States’ authorities and, in accordance with those plans, coordinate Canada’s response to emergencies in the United States and provide assistance in response to those emergencies. Emergency M MINISTERS’ RESPONSIBILITIES Ministers’ responsibilities 6. (1) The emergency management responsibilities of each minister accountable to Parliament for a government institution are to identify the risks that are within or related to his or her area of responsibility — including those related to critical infrastructure — and to do the following in accordance with the policies, programs and other measures established by the Minister: (a) prepare emergency management plans in respect of those risks; (b) maintain, test and implement those plans; and (c) conduct exercises and training in relation to those plans. Contents of emergency management plans (2) Each minister shall include in an emergency management plan (a) any programs, arrangements or other measures to assist provincial governments and, through the provincial governments, local authorities; (b) any federal-provincial regional plans; (c) any programs, arrangements or other measures to provide for the continuity of the operations of the government institution in the event of an emergency; and (d) in the case of war or other armed conflict, the programs, arrangements or other measures that (i) support the overall defence effort, (ii) support the Canadian Forces and the armed forces of Canada’s allies in the conduct of military operations, 2006-2007 Gestion de (iii) contribute to meeting Canada’s military and civil wartime obligations to its allies, and (iv) mitigate the effects of foreign armed conflict on Canada. Provincial emergencies (3) A government institution may not respond to a provincial emergency unless the government of the province requests assistance or there is an agreement with the province that requires or permits the assistance. ORDERS OR REGULATIONS Orders or regulations 7. The Governor in Council may on the recommendation of the Minister make orders or regulations (a) respecting the preparation, maintenance, testing and implementation of emergency management plans; (b) respecting the use of federal civil resources in response to civil emergencies; (c) declaring a provincial emergency to be of concern to the federal government; and (d) authorizing the Minister to provide financial assistance to a province under paragraph 4(1)(j). RELATED AMENDMENTS R.S., c. A-1 ACCESS TO INFORMATION ACT 8. (1) Subsection 20(1) of the Access to Information Act is amended by adding the following after paragraph (b): (b.1) information that is supplied in confidence to a government institution by a third party for the preparation, maintenance, testing or implementation by the government institution of emergency management plans within the meaning of section 2 of the Emergency Management Act and that concerns the vulnerability of the third party’s buildings or other structures, its networks or systems, including its computer or communications networks or systems, or the methods used to protect any of those buildings, structures, networks or systems; C. 15 Emergency M (2) Subsection 20(6) of the Act is replaced by the following: Disclosure authorized if in public interest (6) The head of a government institution may disclose all or part of a record requested under this Act that contains information described in any of paragraphs (1)(b) to (d) if (a) the disclosure would be in the public interest as it relates to public health, public safety or protection of the environment; and (b) the public interest in disclosure clearly outweighs in importance any financial loss or gain to a third party, any prejudice to the security of its structures, networks or systems, any prejudice to its competitive position or any interference with its contractual or other negotiations. 9. Subsection 27(1) of the Act is replaced by the following: Notice to third parties 27. (1) If the head of a government institution intends to disclose a record requested under this Act that contains or that the head has reason to believe might contain trade secrets of a third party, information described in paragraph 20(1)(b) or (b.1) that was supplied by a third party, or information the disclosure of which the head can reasonably foresee might effect a result described in paragraph 20(1)(c) or (d) in respect of a third party, the head shall make every reasonable effort to give the third party written notice of the request and of the head’s intention to disclose within 30 days after the request is received. 10. The portion of subsection 35(2) of the Act after paragraph (b) is replaced by the following: (c) a third party if (i) the Information Commissioner intends to recommend the disclosure under subsection 37(1) of all or part of a record that contains — or that the Information Commissioner has reason to believe might contain — trade secrets of the third party, information described in paragraph 20(1)(b) or (b.1) that was supplied by the third party or information the disclosure of which the Information Commissioner can 2006-2007 Gestion de reasonably foresee might effect a result described in paragraph 20(1)(c) or (d) in respect of the third party, and (ii) the third party can reasonably be located. However no one is entitled as of right to be present during, to have access to or to comment on representations made to the Information Commissioner by any other person. 2005, c. 10 DEPARTMENT OF PUBLIC SAFETY AND EMERGENCY PREPAREDNESS ACT 11. Subsection 4(2) of the Department of Public Safety and Emergency Preparedness Act is replaced by the following: National leadership (2) The Minister is responsible for exercising leadership at the national level relating to public safety and emergency preparedness. COORDINATING AMENDMENT Bill C-2 12. If Bill C-2, introduced in the 1st session of the 39th Parliament and entitled the Federal Accountability Act, receives royal assent, then, on the later of the day on which section 154 of that Act comes into force and the day on which section 1 of this Act comes into force — or, if those days are the same day, then on that day — paragraph 35(2)(c) of the French version of the Access to Information Act is replaced by the following: c) un tiers, s’il est possible de le joindre sans difficultés, dans le cas où le Commissaire à l’information a l’intention de recommander, aux termes du paragraphe 37(1), la communication de tout ou partie d’un document qui contient ou est, selon lui, susceptible de contenir des secrets industriels du tiers, des renseignements visés aux alinéas 20(1)b) ou b.1) qui ont été fournis par le tiers ou des renseignements dont la communication risquerait, selon lui, d’entraîner pour le tiers les conséquences visées aux alinéas 29(1)c) ou d). C. 15 Emergency M REPEAL Repeal 13. The Emergency Preparedness Act, chapter 6 of the 4th Supplement to the Revised Statutes of Canada, 1985, is repealed. COMING INTO FORCE Order in council 14. This Act other than section 12 comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 29 An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 ASSENTED TO 22nd JUNE, 2007 BILL C-52 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007”. SUMMARY Part 1 implements income tax measures proposed or referenced in Budget 2007 to (a) introduce a tax on distributions from certain publicly traded income trusts and limited partnerships, effective beginning with the 2007 taxation year; (b) reduce the general corporate income tax rate by one half of a percentage point, effective January 1, 2011; (c) increase the age credit amount by $1,000 from $4,066 to $5,066, effective January 1, 2006; (d) permit income splitting for pensioners, effective beginning in 2007; (e) introduce a new child tax credit of $2,000 multiplied by the appropriate percentage for a taxation year, effective beginning in 2007; (f) increase the spousal and other amounts to equal the basic personal amount, effective beginning in 2007; (g) increase the age limit for maturing registered retirement savings plans, registered pension plans and deferred profit sharing plans to 71 years of age, effective beginning in 2007; (h) expand the types of investments eligible for registered retirement savings plans and other deferred income plans, effective March 19, 2007; and (i) increase the contribution limits for registered education savings plans and expand eligible payments for part-time studies, effective beginning in 2007. Part 1 also amends the Canada Education Savings Act to increase the maximum annual grant payable on contributions made to a registered education savings plan after 2006. Part 2 amends the Excise Tax Act to clarify the legislative authority that allows the Canada Revenue Agency to pay refunds of excise tax directly to end-users, where fuel subject to excise has been used in tax-exempt circumstances. It also amends that Act to repeal the excise tax on heavy vehicles and to implement the Green Levy on vehicles with fuel consumption of 13 litres or more per 100 kilometres. It also provides an authority for the Canada Revenue Agency to pay a refund of the Green Levy for vans equipped for wheelchair access. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca Part 3 implements goods and services tax/harmonized sales tax (GST/HST) measures proposed or referenced in Budget 2007. It amends the Excise Tax Act to exempt midwifery services from the GST/HST and to zero-rate certain supplies of intangible personal property made to non-GST/HST registered nonresidents. It also amends that Act to repeal the GST/HST Visitor Rebate Program and to implement a new Foreign Convention and Tour Incentive Program, which provides rebates of tax in respect of certain property and services used in the course of conventions held in Canada and the accommodation portion of tour packages for non-residents, and establishes new information requirements in the case where rebates are credited by the vendor. Part 4 implements other measures relating to taxation. It amends the Customs Tariff to increase the duty-free exemption for returning Canadian residents, from $200 to $400, for absences from Canada of not less than 48 hours. It amends the Federal-Provincial Fiscal Arrangements Act to clarify that when a federal corporation listed in Schedule I to that Act pays provincial taxes or fees, wholly-owned subsidiaries of that corporation also pay provincial taxes or fees. It also authorizes the Minister of Finance to make payments totaling $400 million out of the Consolidated Revenue Fund to the Province of Ontario to assist the province in the transition to a single corporate tax administration. This last measure is consequential to the October 6, 2006 Canada-Ontario Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax. Part 5 enacts the Tax-back Guarantee Act, which legislates the Government’s commitment to dedicate all effective interest savings from federal debt reduction each year to ongoing personal income tax reductions. That Part also commits the Minister of Finance to report publicly at least once a year on personal income tax relief provided under the Guarantee to Canadians. Part 6 amends the Federal-Provincial Fiscal Arrangements Act to set out the amounts of the fiscal equalization payments to the provinces and the territorial formula financing payments to the territories for the fiscal year beginning on April 1, 2007 and to provide for the method by which those amounts will be calculated for subsequent fiscal years. It also authorizes certain deductions from those amounts that would otherwise be payable under that Act. In addition, it makes consequential amendments to other Acts. Part 6 also amends that Act to provide increased funding for the Canada Social Transfer beginning on April 1, 2007, and to provide for the method by which the Canada Social Transfer and the Canada Health Transfer amounts will be calculated for subsequent fiscal years, including per capita cash allocations. It also provides for transition protection. Part 7 amends the Financial Administration Act to modernize Crown borrowing authorities. Part 8 amends the Canada Mortgage and Housing Corporation Act to permit the Minister of Finance to lend money to the Canada Mortgage and Housing Corporation. Part 9 amends the Bankruptcy and Insolvency Act, the Canada Deposit Insurance Corporation Act, the Companies’ Creditors Arrangement Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act to allow the Governor in Council to prescribe the meaning of “eligible financial contract”. Those Acts are also amended to provide that, after an insolvency event occurs, a party to an eligible financial contract can deal with supporting collateral in accordance with the terms of the contract despite any stay of proceedings or court order to the contrary. This Part also includes amendments to the Bankruptcy and Insolvency Act and the Winding-up and Restructuring Act to provide that collateral transactions executed in accordance with the terms of an eligible financial contract are not void only because they occurred in the prescribed pre-insolvency or winding-up period. Part 10 authorizes payments to provinces and territories. Part 11 authorizes payments to certain entities. Part 12 extends the sunset provisions of financial institutions statutes by six months from April 24, 2007 to October 24, 2007. Part 13 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with the power to authorize another minister, to whom he or she has delegated powers under that Act, to subdelegate those powers to the chief executive of the relevant department. That Act is also amended with respect to the application of section 9 to certain departments. Part 14 amends the Financial Consumer Agency of Canada Act to allow the Minister of Finance to provide funding to the Agency for activities related to financial education. TABLE OF PROVISIONS AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON MARCH 19, 2007 SHORT TITLE Budget Implementation Act, 2007 1. PART 1 AMENDMENTS RELATED TO INCOME TAX INCOME TAX ACT 2-29. Amendments INCOME TAX REGULATIONS 30-36. Amendments CANADA EDUCATION SAVINGS ACT 37. Amendments CANADA EDUCATION SAVINGS REGULATIONS 38. Amendments COORDINATING AMENDMENTS 39-42. Bill C-33 PART 2 AMENDMENTS TO THE EXCISE TAX ACT (OTHER THAN WITH RESPECT TO THE GOODS AND SERVICES TAX/ HARMONIZED SALES TAX) 43-44. Amendments PART 3 AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX EXCISE TAX ACT 45-52. Amendments i COORDINATING AMENDMENTS 53. Bill C-40 PART 4 OTHER MEASURES RELATING TO TAXATION CUSTOMS TARIFF 54. Amendments FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 55-56. Amendments 57. Coming into force 58. Payment of $250,000,000 59. Payment of $150,000,000 PAYMENTS TO ONTARIO PART 5 TAX-BACK GUARANTEE ACT 60. Enactment of Act 1. Tax-back Guarantee Act 2. Direction to provide personal tax relief 3. Meaning of “federal debt” 4. Imputed interest savings 5. Effective interest rate 6. Public announcement PART 6 FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 61-74. Amendments TRANSITIONAL PROVISIONS 75. Amounts paid before coming into force (Part I) 76. Amounts paid before coming into force (Part I.1) 77. Amounts paid before coming into force (Part V.1) CONSEQUENTIAL AMENDMENTS 78-80. Canada-Newfoundland Atlantic Accord Implementation Act ii 81-82. Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act 83. Transitional Provisions 84. Newfoundland and Labrador and Nova Scotia COMING INTO FORCE PART 7 AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT FINANCIAL ADMINISTRATION ACT 85-88. Amendments COMING INTO FORCE 89. Order in council PART 8 AMENDMENTS TO THE CANADA MORTGAGE AND HOUSING CORPORATION ACT 90. Amendments PART 9 AMENDMENTS RELATING TO ELIGIBLE FINANCIAL CONTRACTS BANKRUPTCY AND INSOLVENCY ACT 91-102. Amendments CANADA DEPOSIT INSURANCE CORPORATION ACT 103. Amendments COMPANIES’ CREDITORS ARRANGEMENT ACT 104-109. Amendments PAYMENT CLEARING AND SETTLEMENT ACT 110-112. Amendments WINDING-UP AND RESTRUCTURING ACT 113-116. Amendments TRANSITIONAL PROVISIONS 117. Bankruptcy and Insolvency Act 118. Canada Deposit Insurance Corporation Act iv 119. Companies’ Creditors Arrangement Act 120. Payment Clearing and Settlement Act 121. Winding Up and Restructuring Act COORDINATING AMENDMENTS 122. An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts COMING INTO FORCE 123. Order in council PART 10 PAYMENTS TO PROVINCES AND TERRITORIES PAYMENT TO BRITISH COLUMBIA 124. Maximum payment of $30,000,000 CLEAN AIR AND CLIMATE CHANGE TRUST FUND 125. Maximum payment of $1,519,000,000 TRANSITIONAL PAYMENTS 126. Payment of $614,100,000 HUMAN PAPILLOMAVIRUS IMMUNIZATION 127. Maximum payment of $300,000,000 PATIENT WAIT TIMES GUARANTEE 128. Maximum payment of $612,000,000 CHILD CARE SPACES 129. Maximum payment of $250,000,000 PAYMENT TO YUKON 130. Payment of $3,500,000 131. Payment of $54,400,000 PAYMENT TO NORTHWEST TERRITORIES v PART 11 PAYMENTS TO CERTAIN ENTITIES NATURE CONSERVANCY OF CANADA 132. Maximum payment of $225,000,000 CANADA HEALTH INFOWAY INC. 133. Maximum payment of $400,000,000 134. Maximum payment of $96,000,000 CANARIE INC. GENOME CANADA 135. Maximum payment of $100,000,000 AID TO AFGHANISTAN 136. Afghanistan Reconstruction Trust Fund — $90,000,000 137. UN Mine Action Service — $20,000,000 138. UN Office on Drugs and Crime — $13,000,000 139. Counter Narcotics Trust Fund — $2,000,000 140. Law and Order Trust Fund for Afghanistan — $10,000,000 RICK HANSEN MAN IN MOTION FOUNDATION 141. Maximum payment of $30,000,000 THE PERIMETER INSTITUTE FOR THEORETICAL PHYSICS 142. Maximum payment of $50,000,000 CANADA FOUNDATION FOR SUSTAINABLE DEVELOPMENT TECHNOLOGY 143. Maximum payment of $200,000,000 PART 12 AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS BANK ACT 144-145. Amendments COOPERATIVE CREDIT ASSOCIATIONS ACT 146. Amendment v INSURANCE COMPANIES ACT 147-148. Amendments TRUST AND LOAN COMPANIES ACT 149. Amendment 150. Bill C-37 COORDINATING AMENDMENTS PART 13 AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT 151-153. Amendments PART 14 AMENDMENT TO THE FINANCIAL CONSUMER AGENCY OF CANADA ACT 154. Amendment 55-56 ELIZABETH II —————— CHAPTER 29 An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 [Assented to 22nd June, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Budget Implementation Act, 2007. PART 1 AMENDMENTS RELATED TO INCOME TAX R.S., c. 1 (5th Supp.) INCOME TAX ACT 2. (1) Subparagraph 53(2)(h)(i.1) of the Income Tax Act is amended by striking out the word “or” at the end of clause (A) and by adding the following after that clause: (A.1) that was deemed by subsection 104(16) to be a dividend received by the taxpayer, or (2) Subsection (1) is deemed to have come into force on October 31, 2006. 3. (1) Subsection 56(1) of the Act is amended by adding the following after paragraph (a.1): Pension income reallocation (a.2) where the taxpayer is a pension transferee (as defined in subsection 60.03(1)), any amount that is a split-pension amount (as defined in that subsection) in respect of the pension transferee for the taxation year; C. 29 Budget Implem (2) Subsection (1) applies to the 2007 and subsequent taxation years. 4. (1) Section 60 of the Act is amended by adding the following after paragraph (b): Pension income reallocation (c) where the taxpayer is a pensioner (as defined in subsection 60.03(1)), any amount that is a split-pension amount (as defined in that subsection) in respect of the pensioner for the taxation year; (2) Subsection (1) applies to the 2007 and subsequent taxation years. 5. (1) The Act is amended by adding the following after section 60.02: Definitions 60.03 (1) The following definitions apply in this section. “eligible pension income” « revenu de pension déterminé » “eligible pension income” has the same meaning as in subsection 118(7). “joint election” « choix conjoint » “joint election” in respect of a pensioner and a pension transferee for a taxation year means an election made jointly in prescribed form by the pensioner and the pension transferee and filed with the Minister with both the pensioner’s and the pension transferee’s returns of income for the taxation year in respect of which the election is made, on or before their respective filing-due dates for the taxation year. “pensioner” « pensionné » “pensioner” for a taxation year means an individual who (a) receives eligible pension income in the taxation year; and (b) is resident in Canada, (i) if the individual dies in the taxation year, at the time that is immediately before the individual’s death, or (ii) in any other case, at the end of the calendar year in which the taxation year ends. “pension income” « revenu de pension » “pension income” has the meaning assigned by section 118. Exécution du b 2006-2007 “pension transferee” « cessionnaire » “pension transferee” for a taxation year means an individual who (a) is resident in Canada, (i) if the individual dies in the taxation year, at the time that is immediately before the individual’s death, or (ii) in any other case, at the end of the calendar year in which the taxation year ends; and (b) at any time in the taxation year is married to, or in a common-law partnership with, a pensioner and is not, by reason of the breakdown of their marriage or commonlaw partnership, living separate and apart from the pensioner at the end of the taxation year and for a period of at least 90 days commencing in the taxation year. “qualified pension income” « revenu de pension admissible » “split-pension amount” « montant de pension fractionné » “qualified pension income” has the meaning assigned by section 118. “split-pension amount” for a taxation year is the amount elected by a pensioner and a pension transferee in a joint election for the taxation year not exceeding the amount determined by the formula 0.5A × B/C where A is the eligible pension income of the pensioner for the taxation year; B is the number of months in the pensioner’s taxation year at any time during which the pensioner was married to, or was in a common-law partnership with, the pension transferee; and C is the number of months in the pensioner’s taxation year. Effect of pension income split (2) For the purpose of subsection 118(3), if a pensioner and a pension transferee have made a joint election in a taxation year, C. 29 Budget Implem (a) the pensioner is deemed not to have received the portion of the pensioner’s pension income or qualified pension income, as the case may be, for the taxation year that is equal to the amount of the pensioner’s split-pension amount for that taxation year; and (b) the pension transferee is deemed to have received the split-pension amount (i) as pension income, to the extent that the split-pension amount was pension income to the pensioner, and (ii) as qualified pension income, to the extent that the split-pension amount was qualified pension income to the pensioner. Limitation (3) A pensioner may file only one joint election for a particular taxation year. False declaration (4) A joint election is invalid if the Minister establishes that a pensioner or a pension transferee has knowingly or under circumstances amounting to gross negligence made a false declaration in the joint election. (2) Subsection (1) applies to the 2007 and subsequent taxation years. 6. (1) The definition “eligible dividend” in subsection 89(1) of the Act is replaced by the following: “eligible dividend” « dividende déterminé » “eligible dividend” means (a) a taxable dividend that is received by a person resident in Canada, paid after 2005 by a corporation resident in Canada and designated, as provided under subsection (14), to be an eligible dividend, and (b) in respect of a person resident in Canada, an amount that is deemed by subsection 96(1.11) or 104(16) to be a taxable dividend that is received by the person; (2) Subsection (1) is deemed to have come into force on October 31, 2006. 7. (1) Section 96 of the Act is amended by adding the following after subsection (1.1): 2006-2007 Deemed dividend of SIFT partnership Exécution du b (1.11) If a SIFT partnership is liable to tax for a taxation year under Part IX.1, (a) paragraph (1)(f) is to be read as if the expression “the amount of the income of the partnership for a taxation year from any source or from sources in a particular place” were read as “the amount, if any, by which the income of the partnership for a taxation year from any source or from sources in a particular place exceeds, in respect of each such source, the portion of the partnership’s taxable non-portfolio earnings for the taxation year that is applicable to that source”; and (b) the partnership is deemed to have received a dividend in the taxation year from a taxable Canadian corporation equal to the amount by which the partnership’s taxable non-portfolio earnings for the taxation year exceeds the tax payable by the partnership for the taxation year under Part IX.1. (2) Subsection (1) is deemed to have come into force on October 31, 2006. 8. (1) The portion of subparagraph 104(6)(b)(i) of the Act before clause (A) is replaced by the following: (i) such part (in this section referred to as the trust’s “adjusted distributions amount” for the taxation year) of the amount that, but for (2) Paragraph 104(6)(b) of the Act is amended by striking out the word “and” at the end of subparagraph (ii.1), by adding the word “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii): C. 29 Budget Implem (iv) where the trust is a SIFT trust for the taxation year, the amount, if any, by which (A) its adjusted distributions amount for the taxation year exceeds (B) the amount, if any, by which (I) the amount that would, if this Act were read without reference to this subsection, be its income for the taxation year exceeds (II) its non-portfolio earnings for the taxation year. (3) Section 104 of the Act is amended by adding the following after subsection (15): SIFT deemed dividend (16) If an amount (in this subsection and section 122 referred to as the trust’s “nondeductible distributions amount” for the taxation year) is determined under subparagraph (6)(b)(iv) in respect of a SIFT trust for a taxation year (a) each beneficiary under the SIFT trust to whom at any time in the taxation year an amount became payable by the trust is deemed to have received at that time a taxable dividend that was paid at that time by a taxable Canadian corporation; (b) the amount of a dividend described in paragraph (a) as having been received by a beneficiary at any time in a taxation year is equal to the amount determined by the formula A/B × C where A is the amount that became payable at that time by the SIFT trust to the beneficiary, B is the total of all amounts, each of which became payable in the taxation year by the SIFT trust to a beneficiary under the SIFT trust, and Exécution du b 2006-2007 C is the SIFT trust’s non-deductible distributions amount for the taxation year; (c) the amount of a dividend described in paragraph (a) in respect of a beneficiary under the SIFT trust is deemed for the purpose of subsection (13) not to be an amount payable to the beneficiary; and (d) for the purposes of applying Part XIII in respect of each dividend described in paragraph (a), the SIFT trust is deemed to be a corporation resident in Canada that paid the dividend. (4) Subsection 104(24) of the Act is replaced by the following: Amount payable (24) For the purposes of subsections (6), (7), (13), (16) and (20) and subparagraph 53(2)(h)(i.1), an amount is deemed not to have become payable to a beneficiary in a taxation year unless it was paid in the year to the beneficiary or the beneficiary was entitled in the year to enforce payment of it. (5) Subsections (1) to (4) are deemed to have come into force on October 31, 2006. 9. (1) Paragraph (a) of the description of B in subsection 118(1) of the Act is replaced by the following: Married or common-law partnership status (a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of (i) $7,131, and (ii) the amount determined by the formula $6,055 - C where C is the income of the individual’s spouse or common-law partner for the year or, where the individual and the individual’s spouse or common-law partner are living separate and apart at the end C. 29 Budget Implem of the year because of a breakdown of their marriage or common-law partnership, the spouse’s income for the year while married to, or in a common-law partnership with, the individual and not so separated, (2) The portion of paragraph 118(1)(b) of the French version of the Act before subparagraph (i) is replaced by the following: Crédit équivalent pour personne entièrement à charge b) le total de 7 131 $ et de la somme obtenue par la formule suivante : 6 055 $ - D où : D représente le revenu d’une personne à charge pour l’année, si le particulier ne demande pas de déduction pour l’année par l’effet de l’alinéa a) et si, à un moment de l’année : (3) Subparagraph (b)(iv) of the description of B in subsection 118(1) of the English version of the Act is replaced by the following: (iv) the amount determined by the formula $6,055 - D where D is the dependent person’s income for the year, (4) The description of B in subsection 118(1) of the Act is amended by adding the following after paragraph (b): Child amount (b.1) where (i) a child of the individual ordinarily resides throughout the taxation year with the individual together with another parent of the child, $2,000 for each such child who is under the age of 18 years at the end of the taxation year, or (ii) except where subparagraph (i) applies, the individual may deduct an amount under paragraph (b) in respect of the individual’s child who is under the age of 18 years at the end of the taxation year, or could Exécution du b 2006-2007 deduct such an amount in respect of that child if paragraph 118(4)(a) did not apply to the individual for the taxation year, $2,000 for each such child, (5) The formula in subsection 118(2) of the Act is replaced by the following: A × ($5,066 - B) (6) The description of B in subsection 118(3) of the Act is replaced by the following: B is the lesser of $2,000 and the eligible pension income of the individual for the taxation year. (7) Paragraphs 118(3.2)(c) to (e) of the Act are replaced by the following: (c) for the 2007 taxation year, to be replaced by $8,929; (d) for the 2008 taxation year, to be replaced by the amount that is the total of $200 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c); (e) for the 2009 taxation year, to be replaced by the amount that is the greater of (i) the total of $600 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and (ii) $10,000; and (8) Subsection 118(3.3) of the Act is repealed. (9) Paragraph 118(4)(b) of the Act is replaced by the following: (b) not more than one individual is entitled to a deduction under subsection (1) because of paragraph (b) or (b.1) of the description of B in that subsection for a taxation year in C. 29 Budget Implem respect of the same person or the same domestic establishment and where two or more individuals otherwise entitled to such a deduction fail to agree as to the individual by whom the deduction may be made, no such deduction for the year shall be allowed to either or any of them; (10) The portion of subsection 118(7) of the Act before the definition “pension income” is replaced by the following: Definitions (7) Subject to subsections (8) and (8.1), for the purposes of this subsection and subsection (3), (11) Subsection 118(7) of the Act is amended by adding the following in alphabetical order: “eligible pension income” « revenu de pension déterminé » “eligible pension income” of an individual for a taxation year means (a) if the individual has attained the age of 65 years before the end of the taxation year, the pension income received by the individual in the taxation year, and (b) if the individual has not attained the age of 65 years before the end of the taxation year, the qualified pension income received by the individual in the taxation year; (12) The portion of subsection 118(8) of the Act before paragraph (a) is replaced by the following: Interpretation (8) For the purposes of subsection (7), “pension income” and “qualified pension income” received by an individual in a taxation year do not include any amount that is (13) Paragraph 118(8)(d) of the Act is replaced by the following: (d) the amount, if any, by which (i) an amount required to be included in computing the individual’s income for the year exceeds (ii) the amount, if any, by which the amount referred to in subparagraph (i) exceeds the total of all amounts deducted 2006-2007 Exécution du b (other than under paragraph 60(c)) by the individual for the year in respect of that amount; (14) Subsection 118(8) of the Act is amended by adding the word “or” at the end of paragraph (e) and by adding the following after that paragraph: (f) a payment (other than a payment under the Judges Act or the Lieutenant Governors Superannuation Act) received out of or under an unfunded supplemental plan or arrangement, being a plan or arrangement where (i) the payment was in respect of services rendered to an employer by the individual or the individual’s spouse or common-law partner or former spouse or common-law partner as an employee, and (ii) the plan or arrangement would have been a retirement compensation arrangement or an employee benefit plan had the employer made a contribution in respect of the payment to a trust governed by the plan or arrangement. (15) Subsection 118(9) of the Act is replaced by the following: Bridging benefits (8.1) For the purposes of subsection (7), a payment in respect of a life annuity under a superannuation or pension plan is deemed to include a payment in respect of bridging benefits, being benefits payable under a registered pension plan on a periodic basis and not less frequently than annually to an individual where (a) the individual or the individual’s spouse or common-law partner or former spouse or common-law partner was a member (as defined in subsection 147.1(1)) of the registered pension plan; (b) the benefits are payable for a period ending no later than the end of the month following the month in which the member C. 29 Budget Implem attains 65 years of age or would have attained that age if the member had survived to that day; and (c) the amount (expressed on an annualized basis) of the benefits payable to the individual for a calendar year does not exceed the total of the maximum amount of benefits payable for that year under Part I of the Old Age Security Act and the maximum amount of benefits (other than disability, death or survivor benefits) payable for that year under either the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act. Rounding (9) If an amount determined under any of paragraphs (3.1)(a) to (f) and (3.2)(a) to (f) is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the greater multiple. Child tax credit (9.1) For greater certainty, in the case of a child who in a taxation year is born, adopted or dies, the reference to “throughout the taxation year” in subparagraph 118(1)(b.1)(i) is to be read as a reference to “throughout the portion of the taxation year that is after the child’s birth or adoption or before the child’s death”. (16) Subsections (1) to (4) and (6) to (15) apply to the 2007 and subsequent taxation years. (17) Subsection (5) applies to the 2006 and subsequent taxation years. 10. (1) The description of B in section 118.8 of the Act is replaced by the following: B is the total of all amounts each of which is deductible under subsection 118(1), because of paragraph (b.1) of the description of B in that subsection, or subsection 118(2) or (3) or 118.3(1) in computing the spouse’s or common-law partner’s tax payable under this Part for the year; and (2) Subsection (1) applies to the 2007 and subsequent taxation years. Exécution du b 2006-2007 11. (1) Subsection 120(3) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in the case of a SIFT trust, the amount, if any, by which its income for the year determined without reference to this paragraph exceeds its taxable SIFT trust distributions (as defined in subsection 122(3)) for the year. (2) Subsection (1) is deemed to have come into force on October 31, 2006. 12. (1) Subsection 122(1) of the Act is replaced by the following: Tax payable by inter vivos trust 122. (1) Notwithstanding section 117, the tax payable under this Part for a taxation year by an inter vivos trust is the total of (a) 29% of its amount taxable for the taxation year, and (b) if the trust is a SIFT trust for the taxation year, the positive or negative amount determined by the formula A×B where A is the positive or negative decimal fraction determined by the formula C+D-E where C is the net corporate income tax rate in respect of the SIFT trust for the taxation year, D is the provincial SIFT tax factor for the taxation year, and E is the decimal fraction equivalent of the percentage rate of tax provided in paragraph (a) for the taxation year, and B is the SIFT trust’s taxable SIFT trust distributions for the taxation year. C. 29 Budget Implem (2) Section 122 of the Act is amended by adding the following after subsection (2): Definitions “non-deductible distributions amount” « montant de distribution non déductible » “taxable SIFT trust distributions” « montant de distribution imposable » (3) The following definitions apply in this section. “non-deductible distributions amount” for a taxation year has the meaning assigned by subsection 104(16). “taxable SIFT trust distributions”, of a SIFT trust for a taxation year, means the lesser of (a) its amount taxable for the taxation year, and (b) the amount determined by the formula A/(1 - (B + C)) where A is its non-deductible distributions amount for the taxation year, B is the net corporate income tax rate in respect of the SIFT trust for the taxation year, and C is the provincial SIFT tax factor for the taxation year. (3) Subsections (1) and (2) are deemed to have come into force on October 31, 2006. 13. (1) The Act is amended by adding the following after section 122: Definitions “entity” « entité » “equity value” « valeur des capitaux propres » 122.1 (1) The following definitions apply in this section and in sections 104 and 122. “entity” means a corporation, trust or partnership. “equity value”, of an entity at any time, means the total fair market value at that time of (a) if the entity is a corporation, all of the issued and outstanding shares of the capital stock of the corporation; (b) if the entity is a trust, all of the income or capital interests in the trust; or Exécution du b 2006-2007 (c) if the entity is a partnership, all of the interests in the partnership. “investment” « placement » “investment”, in a trust or partnership, means (a) a property that is a security of the trust or partnership; or (b) a right which may reasonably be considered to replicate a return on, or the value of, a security of the trust or partnership. “non-portfolio earnings” « gains hors portefeuille » “non-portfolio earnings”, of a SIFT trust for a taxation year, means the total of (a) the amount, if any, by which (i) the total of all amounts each of which is the SIFT trust’s income for the taxation year from a business carried on by it in Canada or from a non-portfolio property, other than income that is a taxable dividend received by the SIFT trust, exceeds (ii) the total of all amounts each of which is the SIFT trust’s loss for the taxation year from a business carried on by it in Canada or from a non-portfolio property, and (b) the amount, if any, by which (i) the total of (A) all taxable capital gains of the SIFT trust from dispositions of non-portfolio properties during the taxation year, and (B) one-half of the total of all amounts each of which is deemed under subsection 131(1) to be a capital gain of the SIFT trust for the taxation year in respect of a non-portfolio property of the SIFT trust for the taxation year exceeds (ii) the total of the allowable capital losses of the SIFT trust for the taxation year from dispositions of non-portfolio properties during the taxation year. “non-portfolio property” « bien hors portefeuille » “non-portfolio property” of a trust or partnership for a taxation year means a property, held by the trust or partnership at any time in the taxation year, that is C. 29 Budget Implem (a) a security of a subject entity, if at that time the trust or partnership holds (i) securities of the subject entity that have a total fair market value that is greater than 10% of the equity value of the subject entity, or (ii) securities of the subject entity that, together with all of the securities that the trust or partnership holds of entities affiliated with the subject entity, have a total fair market value that is greater than 50% of the equity value of the trust or partnership; (b) a Canadian real, immovable or resource property, if at any time in the taxation year the total fair market value of all properties held by the trust or partnership that are Canadian real, immovable or resource properties is greater than 50% of the equity value of the trust or partnership; or (c) a property that the trust or partnership, or a person or partnership with whom the trust or partnership does not deal at arm’s length, uses at that time in the course of carrying on a business in Canada. “public market” « marché public » “public market” includes any trading system or other organized facility on which securities that are qualified for public distribution are listed or traded, but does not include a facility that is operated solely to carry out the issuance of a security or its redemption, acquisition or cancellation by its issuer. “qualified REIT property” « bien admissible de FPI » “qualified REIT property” of a trust means a property, held by the trust, that is (a) a real or immovable property situated in Canada; (b) a security of a subject entity, if the entity derives all or substantially all of its revenues from maintaining, improving, leasing or managing real or immovable properties that are capital properties of the trust or of an entity of which the trust holds a share or an interest, including real or immovable properties that the trust, or an entity of which the trust holds a share or an interest, holds together with one or more other persons or partnerships; Exécution du b 2006-2007 (c) a security of a subject entity, if the entity holds no property other than (i) legal title to real or immovable property of the trust (including real or immovable property that the trust holds together with one or more other persons or partnerships), and (ii) property described in paragraph (d); or (d) ancillary to the earning by the trust of the amounts described in subparagraphs (b)(i) and (iii) of the definition “real estate investment trust”. “real estate investment trust” « fiducie de placement immobilier » “real estate investment trust”, for a taxation year, means a trust that is resident in Canada throughout the taxation year, if (a) the trust at no time in the taxation year holds any non-portfolio property other than qualified REIT properties; (b) not less than 95% of the trust’s revenues for the taxation year are derived from one or more of the following: (i) rent from real or immovable properties, (ii) interest, (iii) capital gains from dispositions of real or immovable properties, (iv) dividends, and (v) royalties; (c) not less than 75% of the trust’s revenues for the taxation year are derived from one or more of the following: (i) rent from real or immovable properties, to the extent that it is derived from real or immovable properties situated in Canada, (ii) interest from mortgages, or hypothecs, on real or immovable properties situated in Canada, and (iii) capital gains from dispositions of real or immovable properties situated in Canada; and (d) at no time in the taxation year is the total fair market value of all properties held by the trust, each of which is a real or immovable property situated in Canada, cash, or a prop18 C. 29 Budget Implem erty described in clause 212(1)(b)(ii)(C), less than 75% of the equity value of the trust at that time. “real or immovable property” « bien immeuble ou réel » “real or immovable property”, of a taxpayer, (a) includes (i) a security held by the taxpayer, if the security is a security of a trust that satisfies (or of any other entity that would, if it were a trust, satisfy) the conditions set out in paragraphs (a) to (d) of the definition “real estate investment trust”, or (ii) an interest in real property or a real right in immovables (other than a right to a rental or royalty described in paragraph (d) or (e) of the definition “Canadian resource property” in subsection 66(15)); but (b) does not include any depreciable property, other than (i) a property included, otherwise than by an election permitted by regulation, in Class 1, 3 or 31 of Schedule II to the Income Tax Regulations, (ii) a property ancillary to the ownership or utilization of a property described in subparagraph (i), or (iii) a lease in, or a leasehold interest in respect of, land or property described in subparagraph (i). “rent from real or immovable properties” « loyer de biens immeubles ou réels » “rent from real or immovable properties” (a) includes (i) rent or similar payments for the use of, or right to use, real or immovable properties, (ii) payment for services ancillary to the rental of real or immovable properties and customarily supplied or rendered in connection with the rental of real or immovable properties; but (b) does not include (i) payment for services supplied or rendered, other than those described in subparagraph (a)(ii), to the tenants of such properties, Exécution du b 2006-2007 (ii) fees for managing or operating such properties, (iii) payment for the occupation of, use of, or right to use a room in a hotel or other similar lodging facility, or (iv) rent based on profits. “security” « titre » “security” of a particular entity means any right, whether absolute or contingent, conferred by the particular entity or by an entity that is affiliated with the particular entity, to receive, either immediately or in the future, an amount that can reasonably be regarded as all or any part of the capital, of the revenue or of the income of the particular entity, or as interest paid or payable by the particular entity, and for greater certainty includes (a) a liability of the particular entity; (b) if the particular entity is a corporation, (i) a share of the capital stock of the corporation, and (ii) a right to control in any manner whatever the voting rights of a share of the capital stock of the corporation; (c) if the particular entity is a trust, an income or a capital interest in the trust; (d) if the particular entity is a partnership, an interest as a member of the partnership; and (e) a right to, or to acquire, anything described in this paragraph and any of paragraphs (a) to (d). “SIFT trust” « fiducie intermédiaire de placement déterminée » “SIFT trust”, being a specified investment flowthrough trust, for a taxation year means a trust (other than a trust that is a real estate investment trust for the taxation year) that meets the following conditions at any time during the taxation year: (a) the trust is resident in Canada; (b) investments in the trust are listed or traded on a stock exchange or other public market; and (c) the trust holds one or more non-portfolio properties. C. 29 “subject entity” « entité déterminée » “subject entity” means a person or partnership that is Budget Implem (a) a corporation resident in Canada; (b) a trust resident in Canada; (c) a Canadian resident partnership; or (d) a non-resident person, or a partnership that is not described in paragraph (c), the principal source of income of which is one or any combination of sources in Canada. Application of definition “SIFT trust” (2) The definition “SIFT trust” applies to a trust for a taxation year of the trust that ends after 2006, except that if the trust would have been a SIFT trust on October 31, 2006 had that definition been in force and applied to the trust as of that date, that definition does not apply to the trust for a taxation year of the trust that ends before the earlier of (a) 2011, and (b) the first day after December 15, 2006 on which the trust exceeds normal growth as determined by reference to the normal growth guidelines issued by the Department of Finance on December 15, 2006, as amended from time to time, unless that excess arose as a result of a prescribed transaction. Exécution du b 2006-2007 (2) Subsection (1) is deemed to have come into force on October 31, 2006. 14. The definition “general rate reduction percentage” in subsection 123.4(1) of the Act is amended by striking out the word “and” at the end of paragraph (c) and by replacing paragraph (d) with the following: (d) that proportion of 9% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year, and (e) that proportion of 9.5% that the number of days in the taxation year that are after 2010 is of the number of days in the taxation year. 15. (1) Section 126 of the Act is amended by adding the following after subsection (7): Deemed dividend — partnership (8) If an amount is deemed by subsection 96(1.11) to be a taxable dividend received by a person in a taxation year of the person in respect of a partnership, and it is reasonable to consider that all or part of the amount (in this subsection referred to as the “foreign-source portion”) is attributable to income of the partnership from a source in a country other than Canada, the person is deemed for the purposes of this section to have an amount of income from that source for that taxation year equal to the amount determined by the formula A × B/C where A is the total amount included under subsection 82(1) in computing the income of the person in respect of the taxable dividend for that taxation year; B is the foreign-source portion; and C is the amount of the taxable dividend deemed to be received by the person. (2) Subsection (1) is deemed to have come into force on October 31, 2006. C. 29 Budget Implem 16. (1) Paragraph 132(7)(a) of the Act is replaced by the following: (a) at that time, all or substantially all of its property consisted of property other than property that would be taxable Canadian property if the definition “taxable Canadian property” in subsection 248(1) were read without reference to paragraph (b) of that definition; or (2) Subsection (1) is deemed to have come into force on January 1, 2004. 17. (1) Paragraphs (a) and (b) of the definition “qualified investment” in subsection 146(1) of the Act are replaced by the following: (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered retirement savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”, (2) Subparagraph (c.2)(iv) of the definition “qualified investment” in subsection 146(1) of the Act is replaced by the following: (iv) the day on which the periodic payments began or are to begin (in this paragraph referred to as the “start date”) is not later than the end of the year in which the RRSP annuitant attains 72 years of age, (3) Paragraph 146(2)(b.4) of the Act is replaced by the following: (b.4) the plan does not provide for maturity after the end of the year in which the annuitant attains 71 years of age; (4) Subsections 146(13.2) and (13.3) of the Act are repealed. (5) Subsection (1) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment. Exécution du b 2006-2007 (6) Subsections (2) to (4) apply after 2006, except that subsection (4) does not apply to retirement savings plans under which the annuitant attained 69 years of age before 2007. 18. (1) The definition “RESP annual limit” in subsection 146.1(1) of the Act is repealed. (2) Paragraphs (a) and (b) of the definition “qualified investment” in subsection 146.1(1) of the Act are replaced by the following: (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered education savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”, (3) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order: “specified educational program” « programme de formation déterminé » “specified educational program” means a program at a post-secondary school level of not less than three consecutive weeks duration that requires each student taking the program to spend not less than 12 hours per month on courses in the program; (4) Subparagraphs 146.1(2)(g.1)(i) and (ii) of the Act are replaced by the following: (i) either (A) the individual is, at that time, enrolled as a student in a qualifying educational program at a post-secondary educational institution, or (B) the individual has, before that time, attained the age of 16 years and is, at that time, enrolled as a student in a specified educational program at a postsecondary educational institution, and (ii) either C. 29 Budget Implem (A) the individual satisfies, at that time, the condition set out in clause (i)(A), and (I) has satisfied that condition throughout at least 13 consecutive weeks in the 12-month period that ends at that time, or (II) the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 12-month period that ends at that time does not exceed $5,000 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual, or (B) the individual satisfies, at that time, the condition set out in clause (i)(B) and the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 13-week period that ends at that time does not exceed $2,500 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual; (5) Paragraph 146.1(2)(k) of the Act is repealed. (6) Subsections (1) and (5) apply to contributions made after 2006. (7) Subsection (2) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment. (8) Subsections (3) and (4) apply to the 2007 and subsequent taxation years. 19. (1) The definition “retirement income fund” in subsection 146.3(1) of the Act is replaced by the following: 2006-2007 “retirement income fund” « fonds de revenu de retraite » Exécution du b “retirement income fund” means an arrangement between a carrier and an annuitant under which, in consideration for the transfer to the carrier of property, the carrier undertakes to pay amounts to the annuitant (and, where the annuitant so elects, to the annuitant’s spouse or common-law partner after the annuitant’s death), the total of which is, in each year in which the minimum amount under the arrangement for the year is greater than nil, not less than the minimum amount under the arrangement for that year, but the amount of any such payment does not exceed the value of the property held in connection with the arrangement immediately before the time of the payment. (2) The portion of the definition “minimum amount” in subsection 146.3(1) of the Act before the formula is replaced by the following: “minimum amount” « minimum » “minimum amount” under a retirement income fund for a year means, for the year in which the fund was entered into, a nil amount, and, for any other year, the amount determined by the formula (3) Paragraphs (a) and (b) of the definition “qualified investment” in subsection 146.3(1) of the Act are replaced by the following: (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered retirement income fund” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”, (4) Subsections (1) and (2) apply after 2006, except that (a) in applying subsection (2) in 2007 (other than for the purposes of subsection 146.3(5.1) of the Act, regulations made under subsection 153(1) of the Act and the C. 29 Budget Implem definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act), the portion of the definition “minimum amount” in subsection 146.3(1) of the Act before the formula, as enacted by subsection (2), shall be read as follows: “minimum amount” under a retirement income fund for a year means, for the year in which the fund was entered into (and for 2007, if the individual who was the annuitant under the fund on January 1, 2007 attained 69 or 70 years of age in 2006), a nil amount, and, for any other year, the amount determined by the formula” (b) in applying subsection (2) in 2008 (other than for the purposes of subsection 146.3(5.1) of the Act, regulations made under subsection 153(1) of the Act and the definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act), the portion of the definition “minimum amount” in subsection 146.3(1) of the Act before the formula, as enacted by subsection (2), shall be read as follows: “minimum amount” under a retirement income fund for a year means, for the year in which the fund was entered into (and for 2008, if the individual who was the annuitant under the fund on January 1, 2008 attained 70 years of age in 2007), a nil amount, and, for any other year, the amount determined by the formula” (5) Subsection (3) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment. (6) For the purpose of applying clause 60(l)(v)(B.2) of the Act for the 2007 and 2008 taxation years, an eligible amount of a taxpayer for a taxation year in respect of a 2006-2007 Exécution du b registered retirement income fund (within the meaning assigned by subsection 146.3(6.11) of the Act) is deemed to include (a) if the taxation year is 2007, the taxpayer was the annuitant under the fund on January 1, 2007 and the taxpayer attained 69 or 70 years of age in 2006, the lesser of (i) the total amounts included because of subsection 146.3(5) of the Act in computing the income of the taxpayer for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or a registered retirement savings plan), and (ii) the amount that would, but for paragraph (4)(a), be the minimum amount under the fund for 2007; and (b) if the taxation year is 2008, the taxpayer was the annuitant under the fund on January 1, 2008 and the taxpayer attained 70 years of age in 2007, the lesser of (i) the total amounts included because of subsection 146.3(5) of the Act in computing the income of the taxpayer for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or a registered retirement savings plan), and (ii) the amount that would, but for paragraph (4)(b), be the minimum amount under the fund for 2008. 20. (1) Subparagraph 147(2)(k)(i) of the French version of the Act is replaced by the following: (i) la fin de l’année dans laquelle le bénéficiaire atteint 71 ans, (2) Subparagraph 147(2)(k)(iii) of the English version of the Act is replaced by the following: C. 29 Budget Implem (iii) the end of the year in which the beneficiary attains 71 years of age, and (3) Clause 147(2)(k)(iv)(A) of the French version of the Act is replaced by the following: (A) dont le service doit commencer au plus tard à la fin de l’année dans laquelle le bénéficiaire atteint 71 ans, (4) Clause 147(2)(k)(vi)(A) of the English version of the Act is replaced by the following: (A) payment of the annuity is to begin not later than the end of the year in which the beneficiary attains 71 years of age, and (5) Section 147 of the Act is amended by adding the following after subsection (10.4): Amended contract (10.5) Where an amendment is made to an annuity contract to which subparagraph (2)(k)(vi) applies, the sole effect of which is to defer annuity commencement to no later than the end of the calendar year in which the individual in respect of whom the contract was purchased attains 71 years of age, the annuity contract is deemed not to have been disposed of by the individual. (6) Subsection 147(10.6) of the Act is repealed. (7) Subsections (1) to (6) apply after 2006, except that subsection (6) does not apply to annuities under which the annuitant attained 69 years of age before 2007. 21. (1) Subparagraph 147.4(2)(a)(i) of the Act is replaced by the following: (i) defer annuity commencement to no later than the end of the calendar year in which the individual in respect of whom the contract was purchased attains 71 years of age, or (2) Subsection 147.4(4) of the Act is repealed. 2006-2007 Exécution du b (3) Subsections (1) and (2) apply after 2006, except that subsection (2) does not apply to annuities under which the annuitant attained 69 years of age before 2007. 22. (1) Section 153 of the Act is amended by adding the following after subsection (1.2): Split-pension amount (1.3) A joint election made or expected to be made under section 60.03 is not to be considered a basis on which the Minister may determine a lesser amount under subsection (1.1). Deemed withholding (2) If a pensioner and a pension transferee (as those terms are defined in section 60.03) make a joint election under section 60.03 in respect of a split-pension amount (as defined in that section) for a taxation year, the portion of the amount deducted or withheld under subsection (1) that may be reasonably considered to be in respect of the split-pension amount is deemed to have been deducted or withheld on account of the pension transferee’s tax for the taxation year under this Part and not on account of the pensioner’s tax for the taxation year under this Part. (2) Subsection (1) applies to the 2007 and subsequent taxation years. 23. (1) Section 160 of the Act is amended by adding the following after subsection (1.2): Joint liability — tax on splitpension income (1.3) Where a pensioner and a pension transferee (as those terms are defined in section 60.03) make a joint election under section 60.03 in respect of a split-pension amount (as defined in that section) for a taxation year, they are jointly and severally, or solidarily, liable for the tax payable by the pension transferee under this Part for the taxation year to the extent that that tax payable is greater than it would have been if no amount were required to be added because of paragraph 56(1)(a.2) in computing the income of the pension transferee under this Part for the taxation year. (2) Subsection (1) applies to the 2007 and subsequent taxation years. C. 29 Budget Implem 24. (1) The Act is amended by adding the following after section 196: PART IX.1 TAX ON SIFT PARTNERSHIPS Definitions “non-portfolio earnings” « gains hors portefeuille » 197. (1) The following definitions apply in this Part and in section 96. “non-portfolio earnings”, of a SIFT partnership for a taxation year, means the total of (a) the amount, if any, by which (i) the total of all amounts each of which is the SIFT partnership’s income for the taxation year from a business carried on by it in Canada or from a non-portfolio property, other than income that is a taxable dividend received by the SIFT partnership, exceeds (ii) the total of all amounts each of which is the SIFT partnership’s loss for the taxation year from a business carried on by it in Canada or from a non-portfolio property, and (b) the amount, if any, by which all taxable capital gains of the SIFT partnership from dispositions of non-portfolio properties during the taxation year exceeds the total of the allowable capital losses of the SIFT partnership for the taxation year from dispositions of non-portfolio properties during the taxation year. “SIFT partnership” « société de personnes intermédiaire de placement déterminée » “SIFT partnership”, being a specified investment flow-through partnership, for any taxation year, means a partnership that meets the following conditions at any time during the taxation year: (a) the partnership is a Canadian resident partnership; (b) investments (as defined in subsection 122.1(1)) in the partnership are listed or traded on a stock exchange or other public market; and Exécution du b 2006-2007 (c) the partnership holds one or more nonportfolio properties. “taxable nonportfolio earnings” « gains hors portefeuille imposables » “taxable non-portfolio earnings” of a SIFT partnership, for a taxation year, means the lesser of (a) the amount that would, if the SIFT partnership were a taxpayer for the purposes of Part I and if subsection 96(1) were read without reference to its paragraph (d), be its income for the taxation year as determined under section 3; and (b) its non-portfolio earnings for the taxation year. Tax on partnership income (2) Every partnership that is a SIFT partnership for a taxation year is liable to a tax under this Part equal to the amount determined by the formula A × (B + C) where A is the taxable non-portfolio earnings of the SIFT partnership for the taxation year; B is the net corporate income tax rate in respect of the SIFT partnership for the taxation year; and C is the provincial SIFT tax factor for the taxation year. Ordering (3) This Part and section 122.1 are to be applied as if this Act were read without reference to subsection 96(1.11). Partnership to file return (4) Every member of a partnership that is liable to pay tax under this Part for a taxation year shall — on or before the day on or before which the partnership return is required to be filed for the year under section 229 of the Income Tax Regulations — file with the Minister a return for the taxation year under this Part in prescribed form containing an estimate of the tax payable by the partnership under this Part for the taxation year. C. 29 Authority to file return (5) For the purposes of subsection (4), if, in respect of a taxation year of a partnership, a particular member of the partnership has authority to act for the partnership, Budget Implem (a) if the particular member has filed a return as required by this Part for a taxation year, each other person who was a member of the partnership during the taxation year is deemed to have filed the return; and (b) a return that has been filed by any other member of the partnership for the taxation year is not valid and is deemed not to have been filed by any member of the partnership. Provisions applicable to Part (6) Subsection 150(2), sections 152, 156, 156.1, 158, 159 and 161 to 167 and Division J of Part I apply to this Part, with any modifications that the circumstances require, and for greater certainty, (a) a notice of assessment referred to in subsection 152(2) in respect of tax payable under this Part is valid notwithstanding that a partnership is not a person; and (b) notwithstanding subsection 152(4), the Minister may at any time make an assessment or reassessment of tax payable under this Part or Part I to give effect to a determination made by the Minister under subsection 152(1.4), including the assessment or reassessment of Part I tax payable in respect of the disposition of an interest in a SIFT partnership by a member of the partnership. Payment (7) Every SIFT partnership shall pay to the Receiver General, on or before its SIFT partnership balance-due day for each taxation year, its tax payable under this Part for the taxation year. Exécution du b 2006-2007 Application of definition “SIFT partnership” (8) The definition “SIFT partnership” applies to a partnership for a taxation year of the partnership that ends after 2006, except that if the partnership would have been a SIFT partnership on October 31, 2006 had that definition been in force and applied to the partnership as of that date, that definition does not apply to the partnership for a taxation year of the partnership that ends before the earlier of (a) 2011, and (b) the first day after December 15, 2006 on which the partnership exceeds normal growth as determined by reference to the normal growth guidelines issued by the Department of Finance on December 15, 2006, as amended from time to time, unless that excess arose as a result of a prescribed transaction. (2) Subsection (1) is deemed to have come into force on October 31, 2006. 25. (1) Paragraph 198(6)(d) of the Act is replaced by the following: (d) the cash surrender value of the policy (exclusive of accumulated dividends) is or will be, at or before the end of the year in which the insured person attains 71 years of age, if all premiums under the policy are paid, not less than the maximum total amount (exclusive of accumulated dividends) payable by the insurer under the policy, and (2) Subsection (1) applies after 2006. 26. (1) The portion of the definition “qualified investment” in section 204 of the Act before paragraph (a) is replaced by the following: “qualified investment” « placement admissible » “qualified investment” for a trust governed by a deferred profit sharing plan or revoked plan means, with the exception of excluded property in relation to the trust, (2) Paragraphs (b) to (d) of the definition “qualified investment” in section 204 of the Act are replaced by the following: C. 29 Budget Implem (b) debt obligations described in clause 212(1)(b)(ii)(C), (c) debt obligations issued by (i) a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a prescribed stock exchange in Canada, (ii) a corporation the shares of which are listed on a prescribed stock exchange outside Canada, or (iii) an authorized foreign bank and payable at a branch in Canada of the bank, (c.1) debt obligations that, at the time of acquisition by the trust, met the following criteria, namely, (i) the debt obligations had an investment grade rating with a prescribed credit rating agency, and (ii) either (A) the debt obligations were issued as part of a single issue of debt of at least $25 million, or (B) in the case of debt obligations that are issued on a continuous basis, the issuer of the debt obligations had issued and outstanding debt of that type of at least $25 million, (d) securities (other than futures contracts or other derivative instruments in respect of which the holder’s risk of loss may exceed the holder’s cost) that are listed on a prescribed stock exchange, (3) The definition “qualified investment” in section 204 of the Act is amended by adding the word “and” at the end of paragraph (g) and by replacing paragraphs (h) and (i) with the following: (h) prescribed investments; (4) Section 204 of the Act is amended by adding the following in alphabetical order: Exécution du b 2006-2007 “debt obligation” « titre de créance » “excluded property” « bien exclu » “debt obligation” means a bond, debenture, note or similar obligation; “excluded property”, in relation to a trust governed by a deferred profit sharing plan or revoked plan, means a debt obligation or bankers’ acceptance issued by (a) an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries under the plan, or (b) a corporation with whom that employer does not deal at arm’s length; (5) Subsections (1) to (4) apply in determining whether a property is, at any time after March 18, 2007, a qualified investment. 27. (1) The definitions “excess amount” and “RESP lifetime limit” in subsection 204.9(1) of the Act are replaced by the following: “excess amount” « excédent » “excess amount” for a year at any time in respect of an individual means (a) for years before 2007, the amount, if any, by which the total of all contributions made after February 20, 1990 in the year and before that time into all registered education savings plans by or on behalf of all subscribers in respect of the individual exceeds the lesser of (i) the RESP annual limit for the year, and (ii) the amount, if any, by which the RESP lifetime limit for the year exceeds the total of all contributions made into registered education savings plans by or on behalf of all subscribers in respect of the individual in all preceding years; and (b) for years after 2006, the amount, if any, by which the total of all contributions made in the year and before that time into all registered education savings plans by or on behalf of all subscribers in respect of the individual exceeds the amount, if any, by which (i) the RESP lifetime limit for the year exceeds C. 29 Budget Implem (ii) the total of all contributions made into registered education savings plans by or on behalf of all subscribers in respect of the individual in all preceding years. “RESP lifetime limit” « plafond cumulatif de REEE » “RESP lifetime limit” for a year means (a) for 1990 to 1995, $31,500; (b) for 1996 to 2006, $42,000; and (c) for 2007 and subsequent years, $50,000. (2) Subsection (1) applies for the purpose of determining tax under Part X.4 of the Act for months that are after 2006. 28. (1) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: “Canadian real, immovable or resource property” « bien canadien immeuble, réel ou minier » “Canadian real, immovable or resource property” means (a) a property that would, if this Act were read without reference to the definition “real or immovable property” in subsection 122.1(1), be a real or immovable property situated in Canada, (b) a Canadian resource property, (c) a timber resource property, (d) a share of the capital stock of a corporation, an income or a capital interest in a trust or an interest in a partnership, if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or (e) any right to or interest in — or, for civil law, any right to or in — any property described in any of paragraphs (a) to (d); Exécution du b 2006-2007 “Canadian resident partnership” « société de personnes résidant au Canada » “Canadian resident partnership” means a partnership that, at any time in respect of which the expression is relevant, (a) is a Canadian partnership, (b) would, if it were a corporation, be resident in Canada (including, for greater certainty, a partnership that has its central management and control in Canada), or (c) was formed under the laws of a province; “net corporate income tax rate” « taux net d’imposition du revenu des sociétés » “net corporate income tax rate” in respect of a SIFT trust or SIFT partnership for a taxation year means the amount, expressed as a decimal fraction, by which (a) the percentage rate of tax provided under paragraph 123(1)(a) for the taxation year exceeds (b) the total of (i) the percentage that would, if the SIFT trust or SIFT partnership were a corporation, be its general rate reduction percentage, within the meaning assigned by subsection 123.4(1), for the taxation year, and (ii) the percentage deduction from tax provided under subsection 124(1) for the taxation year; “non-portfolio property” « bien hors portefeuille » “non-portfolio property” has the same meaning as in subsection 122.1(1); “provincial SIFT tax factor” « facteur fiscal provincial » “provincial SIFT tax factor” for a taxation year means the decimal fraction 0.13; “public market” « marché public » “public market” has the same meaning as in subsection 122.1(1); “SIFT partnership” « société de personnes intermédiaire de placement déterminée » “SIFT partnership” has the meaning assigned by section 197; 38 “SIFT partnership balance-due day” « date d’échéance du solde » “SIFT trust” « fiducie intermédiaire de placement déterminée » C. 29 Budget Implem “SIFT partnership balance-due day”, in respect of a taxation year of a SIFT partnership, means the day on or before which the partnership is required to file a return for the taxation year under section 229 of the Income Tax Regulations; “SIFT trust” has the meaning assigned by section 122.1; (2) Subsection (1) is deemed to have come into force on October 31, 2006. 29. (1) Paragraph 249(1)(a) of the Act is replaced by the following: (a) in the case of a corporation or Canadian resident partnership, a fiscal period, and (2) Subsection (1) is deemed to have come into force on October 31, 2006. C.R.C., c. 945 INCOME TAX REGULATIONS 30. (1) The portion of subsection 229(1) of the Income Tax Regulations before paragraph (a) is replaced by the following: 229. (1) Every member of a partnership that carries on a business in Canada, or that is a Canadian partnership or a SIFT partnership, at any time in a fiscal period of the partnership shall make for that period an information return in prescribed form containing the following information: (2) Subsection (1) is deemed to have come into force on October 31, 2006. 31. (1) Part XXVI of the Regulations is amended by adding the following after section 2607: SIFT TRUSTS 2608. For the purposes of this Part, if the individual is a SIFT trust, a reference to income earned in a taxation year shall be read as a reference to the amount that would, if this Part were read without reference to this section, be Exécution du b 2006-2007 the amount, if any, by which its income for the taxation year exceeds its taxable SIFT trust distributions for the taxation year. (2) Subsection (1) is deemed to have come into force on October 31, 2006. 32. (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following: 4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act and paragraph (h) of the definition “qualified investment” in section 204 of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is (2) Paragraph 4900(1)(d.1) of the Regulations is repealed. (3) Paragraph 4900(1)(e.01) of the Regulations is repealed. (4) Paragraphs 4900(1)(m) to (n.1) of the Regulations are repealed. (5) Paragraphs 4900(1)(p) and (p.1) of the Regulations are repealed. (6) Subsection 4900(2) of the Regulations is replaced by the following: (2) For the purposes of paragraph (c.1) of the definition “qualified investment” in section 204 of the Act, each of the following is a prescribed credit rating agency: (a) A.M. Best Company, Inc.; (b) Dominion Bond Rating Service Limited; (c) Fitch, Inc.; (d) Moody’s Investors Service, Inc.; and (e) the Standard and Poor’s Division of the McGraw-Hill Companies, Inc. (7) Subsection 4900(3) of the Regulations is replaced by the following: C. 29 Budget Implem (3) For the purpose of paragraph (h) of the definition “qualified investment” in section 204 of the Act, a contract with a licensed annuities provider for an annuity payable to an employee who is a beneficiary under a deferred profit sharing plan beginning not later than the end of the year in which the employee attains 71 years of age, the guaranteed term of which, if any, does not exceed 15 years, is prescribed as a qualified investment for a trust governed by such a plan or revoked plan. (8) The portion of subsection 4900(7) of the Regulations before paragraph (a) is replaced by the following: (7) Subject to subsection (11), for the purposes of paragraph (h) of the definition “qualified investment” in section 204 of the Act, a property is prescribed as a qualified investment for a trust governed by a deferred profit sharing plan or revoked plan at any time if at that time the property is an interest (9) Subsections (1) to (6) and (8) apply in determining whether a property is, at any time after March 18, 2007, a qualified investment. (10) Subsection (7) applies after 2006 except that, for the period before March 19, 2007, the reference in subsection 4900(3) of the Regulations, as enacted by subsection (7), to “paragraph (h)” shall be read as a reference to “paragraph (i)”. 33. (1) Paragraph 8308.3(1)(c) of the Regulations is replaced by the following: (c) a plan or arrangement that does not provide in any circumstances for payments to be made to or for the benefit of the individual after the later of the last day of the calendar year in which the individual attains 71 years of age and the day that is 5 years after the day of termination of the individual’s employment with the employer; (2) Subsection (1) applies after 2006. 34. (1) Subparagraph 8502(e)(i) of the Regulations is replaced by the following: Exécution du b 2006-2007 (i) requires that the retirement benefits of a member under each benefit provision of the plan begin to be paid not later than the end of the calendar year in which the member attains 71 years of age except that, (A) in the case of benefits provided under a defined benefit provision, the benefits may begin to be paid at any later time that is acceptable to the Minister, if the amount of benefits (expressed on an annualized basis) payable does not exceed the amount of benefits that would be payable if payment of the benefits began at the end of the calendar year in which the member attains 71 years of age, and (B) in the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.1), the benefits may begin to be paid not later than the end of the calendar year in which the member attains 72 years of age, and (2) Subsection (1) applies after 2006. 35. (1) Clause 8503(2)(f)(iii)(B) of the Regulations is replaced by the following: (B) the end of the calendar year in which the beneficiary attains 71 years of age, (2) Section 8503 of the Regulations is amended by adding the following after subsection (11): Special Rules for Member Aged 70 or 71 in 2007 (11.1) Where (a) a member of a registered pension plan attained 69 years of age in 2005 or 2006, (b) the member’s retirement benefits under a defined benefit provision of the plan commenced to be paid to the member in the year in which the member attained 69 years of age, C. 29 Budget Implem (c) the member’s retirement benefits are suspended as of any particular time in 2007, and (d) the member was employed with a participating employer from the time the member’s retirement benefits commenced to be paid to the particular time, the following rules apply: (e) subsections (9) and (11) shall apply with respect to the member as though the member became an employee of the participating employer at the particular time, and (f) for the purpose of subsection (10), retirement benefits paid under the provision to the member before the particular time shall be disregarded. (3) Subsections (1) and (2) apply after 2006. 36. (1) Subparagraph 8506(1)(e)(iii) of the Regulations is replaced by the following: (iii) the retirement benefits are payable to the beneficiary beginning no later than on the later of one year after the day of death of the member and the end of the calendar year in which the beneficiary attains 71 years of age; (2) The portion of paragraph 8506(2)(c.1) of the Regulations before subparagraph (i) is replaced by the following: (c.1) no contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 71 years of age, other than an amount that is transferred for the benefit of the member to the provision (3) Paragraph 8506(7)(b) of the Regulations is replaced by the following: (b) that individual had not attained 71 years of age at the end of the preceding calendar year. (4) Subsections (1) to (3) apply after 2006. Exécution du b 2006-2007 2004, c. 26 CANADA EDUCATION SAVINGS ACT 37. (1) Subparagraph 5(2)(b)(i) of the Canada Education Savings Act is replaced by the following: (i) $1,000, unless the particular year is any of 1998 to 2006, in which case, $800, and (2) Paragraph 5(3)(b) of the Act is replaced by the following: (b) in any other case, determined by the formula $400A + $500B - C where A is the number of years after 1997 and before 2007 in which the beneficiary was alive, other than a year throughout which the beneficiary was (i) an ineligible beneficiary in accordance with the regulations, or (ii) not resident in Canada, B is the number of years after 2006 in which the beneficiary was alive, up to and including the particular year, other than a year throughout which the beneficiary was (i) an ineligible beneficiary in accordance with the regulations, or (ii) not resident in Canada, and C is the total of all CES grants paid before that time — other than those amounts paid under subsection (4) — in respect of contributions made in a preceding year in respect of the beneficiary. SOR/2005-151 CANADA EDUCATION SAVINGS REGULATIONS 38. Paragraph 4(1)(d) of the Canada Education Savings Regulations is replaced by the following: C. 29 Budget Implem (d) the total of the contribution and all other contributions to RESPs made, or deemed to have been made for the purpose of Part X.4 of the Income Tax Act, in respect of the beneficiary does not exceed the RESP lifetime limit (as defined in subsection 204.9(1) of the Income Tax Act) for the year in which the contribution is made; COORDINATING AMENDMENTS Bill C-33 39. Sections 40 to 42 apply if Bill C-33 (in those sections referred to as the “other Act”), introduced in the 1st session of the 39th Parliament and entitled Income Tax Amendments Act, 2006, receives royal assent. 40. (1) Subsection 104(24) of the Act, having been amended by subsection 8(4) of this Act and 23(8) of the other Act, is replaced by the following: Amount payable (24) For the purposes of subparagraph 53(2)(h)(i.1), paragraph (c) of the definition “specified charity” in subsection 94(1), subsection 94(8) and subsections (6), (7), (7.01), (13), (16) and (20), an amount is deemed not to have become payable to a beneficiary in a taxation year unless it was paid in the year to the beneficiary or the beneficiary was entitled in the year to enforce payment of it. (2) Subsection (1) applies in respect of taxation years of a trust that begin after 2006. 41. If the other Act is assented to on the same day as or after the day on which this Act is assented to, subsections 106(1) and (3) of the other Act are deemed to have come into force before subsections 9(1) and (16) of this Act. 42. (1) Subsection 249(1) of the Act, having been amended by subsection 188(1) of the other Act and subsection 29(1) of this Act, is replaced by the following: Exécution du b 2006-2007 Definition of “taxation year” 249. (1) Except as expressly otherwise provided in this Act, a “taxation year” is (a) in the case of a corporation, a fiscal period; (b) in the case of an individual (other than a testamentary trust), a calendar year; (c) in the case of a testamentary trust, the period for which the accounts of the trust are made up for purposes of assessment under this Act; and (d) in the case of a Canadian resident partnership, a fiscal period. (2) Subsection (1) is deemed to have come into force on October 31, 2006. PART 2 R.S., c. E-15 AMENDMENTS TO THE EXCISE TAX ACT (OTHER THAN WITH RESPECT TO THE GOODS AND SERVICES TAX/ HARMONIZED SALES TAX) R.S., c. 7 (2nd Supp.), s. 34(1) 43. (1) Section 68 of the Excise Tax Act is replaced by the following: Payment where error 68. (1) If a person, otherwise than pursuant to an assessment, has paid any moneys in error in respect of any goods, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account as taxes, penalties, interest or other sums under this Act, an amount equal to the amount of the moneys shall, subject to this Part, be paid to the person if the person applies for the payment of the amount within two years after the payment of the moneys. Exception (2) Subsection (1) does not apply if an application for a payment in respect of the goods can be made by any person under section 68.01. Payment for endusers — diesel fuel 68.01 (1) If tax under this Act has been paid in respect of diesel fuel, the Minister may pay an amount equal to the amount of that tax (a) in the case where a vendor delivers the diesel fuel to a purchaser C. 29 Budget Implem (i) to the vendor, if the vendor applies for the payment, the purchaser certifies that the diesel fuel is for use exclusively as heating oil and the vendor reasonably believes that the purchaser will use it exclusively as heating oil, (ii) to the purchaser, if the purchaser applies for the payment, the purchaser uses the diesel fuel as heating oil and no application in respect of the diesel fuel can be made by the vendor under subparagraph (i); or (b) to a purchaser who applies for the payment and who uses the diesel fuel to generate electricity, except if the electricity so generated is used primarily in the operation of a vehicle. Payment for endusers — fuel used as ships’ stores (2) If tax under this Act has been paid in respect of fuel and no application is made in respect of the fuel by any person under section 68.17 or 70, the Minister may pay an amount equal to the amount of that tax to a purchaser who applies for the payment and who uses the fuel as ships’ stores. Timing of application (3) No payment shall be made under this section unless (a) the vendor described in subparagraph (1)(a)(i) applies for it within two years after the vendor sells the diesel fuel to the purchaser described in paragraph (1)(a); or (b) the purchaser described in subparagraph (1)(a)(ii), paragraph (1)(b) or subsection (2) applies for it within two years after the purchase. Conditions (4) The Minister is not required to make a payment under this section unless the Minister is satisfied that all the conditions for the payment have been met. Deemed tax payable (5) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment. 2006-2007 Payment to endusers — specially equipped van Exécution du b 68.02 (1) If tax under this Act has been paid in respect of a van to which section 6 of Schedule I applies, the Minister may pay an amount equal to the amount of the tax paid at the rate set out in that section (a) if the van was manufactured or produced in Canada, to a person who is the first final consumer of the van if, at the time of the acquisition of the van by the person or within six months after that time, the van has been equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair; or (b) if the van was imported, to a person who is the first final consumer of the van after the importation if, at the time of importation, the van was equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair. Timing of application (2) No payment in respect of a van shall be made under this section unless the person to whom the payment can be made applies for it within two years after the person acquires the van. Deemed tax payable (3) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment. (2) Sections 68 and 68.01 of the Act, as enacted by subsection (1), are deemed to have come into force on September 3, 1985 except that, before March 20, 2007, (a) subsection 68(2) of the Act, as enacted by subsection (1), shall be read as follows: (2) Subsection (1) does not apply if an application for a payment in respect of the goods is made by any person under section 68.01. C. 29 Budget Implem (b) subparagraph 68.01(1)(a)(ii) of the Act, as enacted by subsection (1), shall be read as follows: (ii) to the purchaser, if the purchaser applies for the payment, the purchaser uses the diesel fuel as heating oil and no application in respect of the diesel fuel is made by the vendor under subparagraph (i); or (3) Section 68.02 of the Act, as enacted by subsection (1), applies in respect of each van to which section 6 of Schedule I to the Act, as enacted by section 44 of this Act, applies. (4) If, before this Act is assented to, an application under section 68 of the Act has been made by a person who could have made an application under section 68.01 of the Act had that section been in force at that time, the application made under section 68 of the Act is deemed to have been made under subsection 68.01(1) or (2) of the Act, as the case may be. 44. (1) Section 6 of Schedule I to the Act is replaced by the following: 6. (1) Automobiles (including station wagons, vans and sport utility vehicles) designed primarily for use as passenger vehicles but not including pickup trucks, vans equipped to accommodate 10 or more passengers, ambulances and hearses, at the following rates: (a) $1,000, in the case of an automobile that has a weighted fuel consumption rating of 13 litres or more per 100 kilometres but less than 14 litres per 100 kilometres; (b) $2,000, in the case of an automobile that has a weighted fuel consumption rating of 14 litres or more per 100 kilometres but less than 15 litres per 100 kilometres; (c) $3,000, in the case of an automobile that has a weighted fuel consumption rating of 15 litres or more per 100 kilometres but less than 16 litres per 100 kilometres; and (d) $4,000, in the case of an automobile that has a weighted fuel consumption rating of 16 litres or more per 100 kilometres. Exécution du b 2006-2007 (2) For the purposes of subsection (1), the weighted fuel consumption rating of an automobile shall be the amount determined by the formula 0.55A + 0.45B where A is the city fuel consumption rating (based on the number of litres of fuel, other than E85, per 100 kilometres) for automobiles of the same model with the same attributes as the automobile, as determined by reference to data published by the Government of Canada under the EnerGuide mark, or, if no rating can be so determined that would apply to the automobile, by reference to the best available data, which may include the city fuel consumption rating for the most similar model and attributes; and B is the highway fuel consumption rating (based on the number of litres of fuel, other than E85, per 100 kilometres) for automobiles of the same model with the same attributes as the automobile, as determined by reference to data published by the Government of Canada under the EnerGuide mark, or, if no rating can be so determined that would apply to the automobile, by reference to the best available data, which may include the highway fuel consumption rating for the most similar model and attributes. (2) Subsection (1) applies to each automobile delivered by a manufacturer or producer to a purchaser after March 19, 2007, and each automobile imported into Canada after that day unless the automobile had been put into service before March 20, 2007, but does not apply to an automobile for C. 29 Budget Implem which an agreement in writing has been entered into before March 20, 2007 between a person in the business of selling vehicles to consumers and a final consumer, and for which possession is taken by the final consumer before October 2007. PART 3 AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/ HARMONIZED SALES TAX R.S., c. E-15 EXCISE TAX ACT 45. (1) Section 234 of the Excise Tax Act is amended by adding the following after subsection (2): Late filing of information and adjustment for failure to file (2.1) If a registrant is required to file prescribed information in accordance with subsection 252.1(10) or 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate, (a) in the case where the registrant files the information on a day (in this subsection referred to as the “filing day”) that is after the day on or before which the registrant is required to file its return under Division V for the reporting period in which the registrant claimed the deduction under subsection (2) in respect of the amount paid or credited and before the particular day that is the earlier of (i) the day that is four years after the day on or before which the registrant was required under section 238 to file a return for the period, and (ii) the day stipulated by the Minister in a demand to file the information, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.1(10) or 252.4(5) and ending on the filing day; and Exécution du b 2006-2007 (b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.1(10) or 252.4(5) and ending on the day on or before which the registrant is required under section 238 to file a return for the reporting period of the registrant that includes the particular day. (2) Subsection (1) applies in respect of any amount claimed as a deduction under subsection 234(2) of the Act in respect of an amount that is paid to, or credited in favour of, a person after March 2007 and that relates to a supply for which tax under Part IX of the Act becomes payable after March 2007. 1993, c. 27, s. 107(1); 1997, c. 10, s. 58(1) 46. (1) The portion of subsection 252(1) of the Act before paragraph (c) is replaced by the following: Non-resident rebate in respect of exported goods 252. (1) If a non-resident person is the recipient of a supply of tangible personal property acquired by the person for use primarily outside Canada, the person is not a consumer of the property, the property is not (a) excisable goods, or (2) Subsection (1) applies to any supply of property in respect of which tax under Part IX of the Act becomes payable after March 2007. 1997, c. 10, s. 59(2); 2000, c. 30, s. 68(2) 47. (1) Subsection 252.1(2) of the Act is replaced by the following: 52 Accommodation rebate for tour packages C. 29 Budget Implem (2) If (a) a non-resident person is the recipient of a supply made by a registrant of a tour package that includes short-term accommodation or camping accommodation, (b) the tour package is acquired by the person otherwise than for supply in the ordinary course of a business of the person of making such supplies, and (c) the accommodation is made available to a non-resident individual, the Minister shall, subject to subsection (8) and section 252.2, pay a rebate to the person equal to the tax paid by the person in respect of the accommodation. 1993, c. 27, s. 107(1); 1997, c. 10, s. 59(3) (2) The portion of subsection 252.1(3) of the Act after paragraph (a) is replaced by the following: (b) if the supply is a supply of a tour package, the tour package is acquired by the person for supply in the ordinary course of a business of the person of making supplies of tour packages, (b.1) if the supply is a supply of accommodation, the accommodation is acquired by the person in the ordinary course of a business of the person for the purpose of making a supply (in this subsection referred to as the “subsequent supply”) of a tour package that includes the accommodation, (c) a supply of the tour package or the subsequent supply is made to another nonresident person and payment of the consideration for the supply of the tour package or the subsequent supply, as the case may be, is made at a place outside Canada at which the supplier, or an agent of the supplier, is conducting business, and (d) the accommodation is made available to a non-resident individual, the Minister shall, subject to subsection (8) and section 252.2, pay a rebate to the particular person equal to the tax paid by the particular person in respect of the accommodation. Exécution du b 2006-2007 2000, c. 30, s. 68(4) (3) Subsection 252.1(4) of the Act is repealed. 1993, c. 27, s. 107(1); 1997, c. 10, s. 59(6)F; 2000, c. 30, s. 68(7) (4) The descriptions of A and B in paragraph 252.1(5)(a) of the Act are replaced by the following: A is the total number of nights for which short-term accommodation included in that tour package is made available in Canada under the agreement for the supply, and B is the total number of nights for which camping accommodation included in that tour package is made available in Canada under the agreement for the supply; and 2000, c. 30, s. 68(8) (5) The description of C in paragraph 252.1(5)(b) of the Act is replaced by the following: C is the total number of nights for which short-term accommodation, or camping accommodation, included in that tour package is made available in Canada under the agreement for the supply of that tour package, 2000, c. 30, s. 68(9) (6) Subsection 252.1(6) of the Act is repealed. 1993, c. 27, s. 107(1); 2000, c. 30, s. 68(10) (7) The portion of subsection 252.1(8) of the Act before paragraph (b) is replaced by the following: Rebate paid by registrant (8) If (a) a registrant makes a supply of a tour package that includes short-term accommodation or camping accommodation to a nonresident recipient who either is an individual or is acquiring the tour package for use in the course of a business of the recipient or for supply in the ordinary course of a business of the recipient of making supplies of tour packages, C. 29 1993, c. 27, s. 107(1); 2000, c. 30, s. 68(11) (8) Paragraph 252.1(8)(c) of the Act is replaced by the following: Budget Implem (c) the amount paid or credited is equal to the amount that would be determined in respect of the supply under paragraph (5)(b), and 1993, c. 27, s. 107(1) (9) The po rtion of sub parag raph 252.1(8)(d)(ii) of the Act before clause (A) is replaced by the following: (ii) if the supply of the tour package includes the short-term accommodation or camping accommodation and also includes other property or services (other than meals or property or services that are provided or rendered by the person who provides the accommodation and in connection with it), a deposit of at least 20% of the total consideration for the tour package is paid (10) Section 252.1 of the Act is amended by adding the following after subsection (9): Filing of information (10) If, in accordance with subsection (8), a registrant (a) pays to, or credits in favour of, a person an amount on account of a rebate, and (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited, the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed. (11) Subsections (1) to (9) apply in respect of any supply of short-term accommodation, camping accommodation or a tour package that includes short-term accommodation or camping accommodation, for which accommodation is first made available after March 2007, unless 2006-2007 Exécution du b (a) the accommodation is not included in a tour package, is first made available before April 2009 and is supplied under an agreement in writing entered into before September 25, 2006; or (b) the accommodation is included in a tour package, the first night of accommodation in Canada included in the tour package is made available before April 2009 and the tour package is supplied under an agreement in writing entered into before September 25, 2006. (12) Subsection (10) applies in respect of any supply of a tour package (a) for which tax under Part IX of the Act becomes payable after March 2007; and (b) for which the supplier claimed an amount as a deduction under subsection 234(2) of the Act in respect of an amount that the supplier paid to, or credited in favour of, a non-resident person after March 2007. 2000, c. 30, s. 69(2) 48. (1) Section 252.2 of the Act is amended by adding the word “and” at the end of paragraph (e) and by repealing paragraph (f). (2) Subsection (1) applies for the purpose of determining any rebate under section 252 or 252.1 of the Act, unless the rebate is in respect of short-term accommodation, or camping accommodation, not included in a tour package and the rebate is determined in accordance with the formula in subsection 252.1(4) of the Act. 1993, c. 27, s. 107(1) 49. (1) Paragraph 252.4(1)(a) of the French version of the Act is replaced by the following: a) la fourniture de biens ou de services relatifs au congrès, effectué par un inscrit qui est l’organisateur du congrès; C. 29 2000, c. 30, s. 70(3) (2) Paragraphs 252.4(3)(a) and (b) of the Act are replaced by the following: Budget Implem (a) the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering, and (b) 50% of the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering. (3) Section 252.4 of the Act is amended by adding the following after subsection (4): Filing of information (5) If, in accordance with subsection (2) or (4), a registrant (a) pays to, or credits in favour of, a person an amount on account of a rebate, and (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited, the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed. (4) Subsections (1) and (2) apply in respect of the supply, importation or bringing into a participating province of property or services in relation to, or in connection with, a convention that begins after March 2007, except that those subsections do not apply in respect of a supply of property or services in relation to, or in connection with, a convention that begins before April 2009 if the Exécution du b 2006-2007 supply is made under an agreement in writing entered into before September 25, 2006. (5) Subsection (3) applies in respect of any supply relating to a foreign convention (a) for which tax under Part IX of the Act becomes payable after March 2007; and (b) for which the supplier claimed an amount as a deduction under subsection 234(2) of the Act in respect of an amount that the supplier paid to, or credited in favour of, a person after March 2007. 2001, c. 15, s. 23(1) 50. (1) The portion of the definition “practitioner” in section 1 of Part II of Schedule V to the Act before paragraph (b) is replaced by the following: “practitioner”, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speechlanguage pathology, occupational therapy, psychological, midwifery or dietetic services, means a person who (a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, midwifery or dietetics, as the case may be, (2) Subsection (1) applies to supplies made after December 28, 2006. 51. (1) Section 7 of Part II of Schedule V to the Act is amended by striking out the word “and” at the end of paragraph (i), by adding the word “and” at the end of paragraph (j) and by adding the following after paragraph (j): (k) midwifery services. (2) Subsection (1) applies to supplies made after December 28, 2006. C. 29 Budget Implem 52. (1) Part V of Schedule VI to the Act is amended by adding the following after section 10: 10.1 A supply of intangible personal property made to a non-resident person who is not registered under Subdivision d of Division V of Part IX of the Act at the time the supply is made, but not including (a) a supply made to an individual unless the individual is outside Canada at that time; (b) a supply of intangible personal property that relates to (i) real property situated in Canada, (ii) tangible personal property ordinarily situated in Canada, or (iii) a service the supply of which is made in Canada and is not a zero-rated supply described by any section of this Part or Part VII or IX; (c) a supply that is the making available of a telecommunications facility that is intangible personal property for use in providing a service described in paragraph (a) of the definition “telecommunication service” in subsection 123(1) of the Act; (d) a supply of intangible personal property that may only be used in Canada; or (e) a prescribed supply. (2) Subsection (1) is deemed to have come into force on December 17, 1990 except that section 10.1 of Part V of Schedule VI to the Act, as enacted by subsection (1), does not apply to any supply in respect of which the supplier, before March 20, 2007, charged or collected any amount as or on account of tax under Part IX of the Act. (3) For the purposes of applying section 10.1 of Part V of Schedule VI to the Act, as enacted by subsection (1), the definitions “telecommunication service” and “telecomExécution du b 2006-2007 munications facility” in subsection 123(1) of the Act are deemed to have come into force on December 17, 1990. (4) If an amount was taken into account in assessing the net tax of a person under section 296 of the Act for a reporting period of the person as tax that became collectible by the person in respect of a supply made by the person before March 20, 2007 and, by reason of the application of section 10.1 of Part V of Schedule VI to the Act, as enacted by subsection (1), no tax was collectible by the person in respect of the supply, (a) the person shall be entitled until the day that is two years after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that no tax was collectible by the person in respect of the supply; and (b) on receipt of a request under paragraph (a), the Minister shall with all due dispatch (i) consider the request, and (ii) under section 296 of the Act and despite section 298 of the Act, assess, reassess or make an additional assessment of the net tax of the person for any reporting period of the person and of any interest, penalty or other obligation of the person, but only to the extent that the assessment, reassessment or additional assessment may reasonably be regarded as relating to the supply. COORDINATING AMENDMENTS Bill C-40 53. If Bill C-40, introduced in the 1st session of the 39th Parliament and entitled the Sales Tax Amendments Act, 2006 (the “other Act”), receives royal assent and the day of that assent is later than or the same day as the day on which this Act receives royal assent, then C. 29 Budget Implem (a) subsections 34(1) and (4) of the other Act are deemed to have come into force on the day before the day on which subsection 47(1) of this Act comes into force; (b) subsections 34(2) and (4) of the other Act are deemed to have come into force on the day before the day on which subsection 47(2) of this Act comes into force; (c) subsections 34(3) and (4) of the other Act are deemed to have come into force on the day before the day on which subsection 47(8) of this Act comes into force; (d) subsections 34(3) and (4) of the other Act are deemed to have come into force on the day before the day on which subsection 47(9) of this Act comes into force; and (e) subsections 52(1) and (4) of the other Act are deemed to have come into force on the day before the day on which subsection 50(1) of this Act comes into force. PART 4 OTHER MEASURES RELATING TO TAXATION 1997, c. 36 CUSTOMS TARIFF 54. (1) The Description of Goods of tariff item No. 9804.10.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by replacing the reference to “two hundred dollars” with a reference to “four hundred dollars”. (2) Subsection (1) is deemed to have come into force on March 20, 2007. R.S., c. F-8; 1995, c. 17, s. 45(1) FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 55. Section 34 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following: Payments in respect of provincial tax or fee imposed by participating province 34. Where, in respect of any transaction, matter or thing, a provincial tax or fee is imposed or levied under a law of a participating province and the provincial tax or fee would be payable by a corporation included in Schedule I if that law were applicable to the corporation, Exécution du b 2006-2007 the corporation shall, in respect of any such transaction, matter or thing, pay the provincial tax or fee so imposed or levied as and when it would be required to do so if that law were applicable to it. 56. Schedule I to the Act is amended by adding the following at the end of that Schedule: Any corporation that is a wholly-owned subsidiary, as defined in subsection 83(1) of the Financial Administration Act, of a corporation listed in this Schedule. Toute personne morale qui est la filiale à cent pour cent, au sens du paragraphe 83(1) de la Loi sur la gestion des finances publiques, d’une personne morale figurant à la présente annexe. Coming into force 57. Sections 55 and 56 are deemed to have come into force on July 1, 2000. PAYMENTS TO ONTARIO Payment of $250,000,000 58. For the fiscal year beginning on April 1, 2007, from and out of the Consolidated Revenue Fund, there may be paid, on the requisition of the Minister of Finance, an amount of $250,000,000 to the Province of Ontario, to assist the province in the transition to a single corporate tax administration. Payment of $150,000,000 59. For the fiscal year beginning on April 1, 2008, from and out of the Consolidated Revenue Fund, there may be paid, on the requisition of the Minister of Finance, an amount of $150,000,000 to the Province of Ontario, to assist the province in the transition to a single corporate tax administration. PART 5 TAX-BACK GUARANTEE ACT Enactment of Act 60. The Tax-back Guarantee Act is enacted as follows: C. 29 Budget Implem An Act to dedicate to personal tax relief imputed interest savings resulting from reductions of federal debt Short title 1. This Act may be cited as the Tax-back Guarantee Act. Direction to provide personal tax relief 2. The Government of Canada shall apply any imputed interest savings resulting from reductions of federal debt to measures that provide tax relief for individuals. Meaning of “federal debt” 3. In this Act, “federal debt” means the accumulated deficit as stated in the Public Accounts prepared in accordance with sections 63 and 64 of the Financial Administration Act in respect of a fiscal year. Imputed interest savings 4. The imputed interest savings in respect of a fiscal year of the Government of Canada is the amount determined by the Minister of Finance to be the product of multiplying the total amount by which federal debt was reduced in the year by the effective interest rate for the year. Effective interest rate 5. The effective interest rate for a fiscal year is the ratio of the amount of public debt charges related to unmatured debt (as stated in the Public Accounts for the year) to the average amount of unmatured debt for the year (determined by dividing by two the sum of the amount of unmatured debt at the beginning of the year and the amount of unmatured debt at the end of the year, as those amounts are stated in the Public Accounts for the year). Public announcement 6. At least once every fiscal year, the Minister of Finance shall report, by way of a statement tabled in the House of Commons or other public announcement, (a) the finalized determination of the imputed interest savings in respect of the previous fiscal year; and (b) an accounting of the measures to which those savings have been applied in accordance with section 2. Exécution du b 2006-2007 PART 6 R.S., c. F-8; 1995, c. 17, s. 45(1) FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT AMENDMENTS TO ACT 2002, c. 7, s. 170 61. Subsection 2(2) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following: Definition of “province” (2) In Parts I, I.1 and II, “province” does not include Yukon, the Northwest Territories or Nunavut. 1999, c. 11, s. 2(7); 2004, c. 22, s. 3(1); 2005, c. 7, s. 1(1); 2006, c. 4, ss. 182 to 188 62. Parts I and I.1 of the Act are replaced by the following: PART I FISCAL EQUALIZATION PAYMENTS FISCAL EQUALIZATION PAYMENTS TO PROVINCES Fiscal equalization payment 3. Subject to the other provisions of this Act, there may be paid to a province a fiscal equalization payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014. Fiscal year 20072008 3.1 The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2007 is equal to, (a) for Ontario, $0; (b) for Quebec, $7,160,352,000; (c) for Nova Scotia, $1,307,982,000; (d) for New Brunswick, $1,476,523,000; (e) for Manitoba, $1,825,796,000; (f) for British Columbia, $0; (g) for Prince Edward Island, $293,958,000; (h) for Saskatchewan, $226,146,000; (i) for Alberta, $0; and (j) for Newfoundland and Labrador, $477,374,000. C. 29 General rule 3.2 (1) Subject to the other provisions of this Part, the fiscal equalization payment that may be paid to a province for a fiscal year beginning after March 31, 2008 is the amount, as determined by the Minister, equal to the greater of Budget Implem (a) the amount determined by the formula (A + B) × C where A is the aggregate of the amounts obtained by subtracting, for each revenue source except the one referred to in paragraph (e) of the definition “revenue source” in subsection 3.5(1), the average annual per capita yield in that province for the revenue source for that fiscal year from the average annual per capita national yield for the revenue source for that fiscal year, B is 50% of the amount obtained by subtracting, for the revenue source referred to in paragraph (e) of the definition “revenue source” in subsection 3.5(1), the average annual per capita revenue to be equalized for that province for that fiscal year from the average annual per capita national revenue to be equalized for that fiscal year, and C is the average annual population of that province for that fiscal year, and (b) the amount determined by the formula A×C where A and C have the same meaning as in paragraph (a). Province may elect otherwise (2) Despite subsection (1), a province may elect, at the prescribed time and in the prescribed manner, that the fiscal equalization payment that may be paid to that province for a fiscal year be equal to the amount determined by the formula set out in paragraph (1)(a). Exécution du b 2006-2007 Negative amount (3) For the purposes of this Part, if the amount of a fiscal equalization payment computed in accordance with subsection (1) or (2) is negative, that amount is considered to be zero. Transitional payments — British Columbia 3.3 The Minister may pay to British Columbia a transitional fiscal equalization payment, for any fiscal year in the period beginning on April 1, 2008 and ending on March 31, 2010, that is equal to the amount by which (a) the amount of the fiscal equalization payment that would be computed for that province for that fiscal year in accordance with subsection 3.2(1) — or subsection 3.2(2) if the election described in that subsection is made — if, in computing the amount of that payment, that province’s revenue base in respect of the revenue source referred to in paragraph (d) of the definition “revenue source” in subsection 3.5(1) were determined in the manner set out in the regulations made for the purposes of this section is greater than (b) the amount of the fiscal equalization payment that is computed for that province for that fiscal year in accordance with subsection 3.2(1) or subsection 3.2(2), as the case may be. Maximum fiscal equalization payment 3.4 (1) The fiscal equalization payment that may be paid to a province for a fiscal year shall be reduced if the amount that may be paid to that province for that fiscal year in accordance with section 3.2 — or, in the case of British Columbia, the aggregate of the amounts that may be paid to that province for that fiscal year in accordance with sections 3.2 and 3.3 — would, if paid, result in that province having, in that fiscal year, a total per capita fiscal capacity that is greater than the per capita fiscal capacity of any province that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined by the formula set out in paragraph 3.2(1)(a). C. 29 Computation of reduction (2) The reduction of the fiscal equalization payment with respect to a province under subsection (1) is equal to the amount determined by the formula Budget Implem (A - B) × C where A is the total per capita fiscal capacity of that province in that fiscal year; B is the per capita fiscal capacity of the province that has the lowest per capita fiscal capacity in that fiscal year and that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined by the formula set out in paragraph 3.2(1)(a); and C is the average annual population of that province for that fiscal year. Definition of “per capita fiscal capacity” (3) For the purposes of this section, “per capita fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula A+B where A and B have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1). Interpretation 3.5 (1) The following definitions apply in this section and in sections 3 to 3.4. “average annual per capita national revenue to be equalized” « revenu national annuel moyen sujet à péréquation par habitant » “average annual per capita national revenue to be equalized” means, for a fiscal year for a revenue source, the amount determined by the formula (A/2 + B/4 + C/4) / D where A is the national revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year; B is the national revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year; Exécution du b 2006-2007 C is the national revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and D is the aggregate of the average annual population of all provinces for that fiscal year. “average annual per capita national yield” « rendement national annuel moyen par habitant » “average annual per capita national yield” means, for a revenue source for a fiscal year, the amount determined by the formula (A/2 + B/4 + C/4) / D where A is the national yield for that revenue source for the fiscal year that is two years prior to that fiscal year; B is the national yield for that revenue source for the fiscal year that is three years prior to that fiscal year; C is the national yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and D is the aggregate of the average annual population of all provinces for that fiscal year. “average annual per capita revenue to be equalized” « revenu annuel moyen sujet à péréquation par habitant » “average annual per capita revenue to be equalized” means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula (A/2 + B/4 + C/4) / D where A is the revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year; B is the revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year; C is the revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and D is the average annual population of that province for that fiscal year. C. 29 “average annual per capita yield” « rendement annuel moyen par habitant » “average annual per capita yield” means, in respect of a province for a revenue source for a fiscal year, an amount determined by the formula Budget Implem (A/2 + B/4 + C/4) / D where A is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year; B is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year; C is the yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and D is the average annual population of that province for that fiscal year. “average annual population” « population annuelle moyenne » “average annual population” means, in respect of a province for a fiscal year, the amount determined by the formula A/2 + B/4 + C/4 where A is the population of that province for the fiscal year that is two years prior to that fiscal year; B is the population of that province for the fiscal year that is three years prior to that fiscal year; and C is the population of that province for the fiscal year that is four years prior to that fiscal year. “national average rate of tax” « taux d’imposition national moyen » “national revenue to be equalized” « revenu national sujet à péréquation » “national average rate of tax” means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces. “national revenue to be equalized” means, in respect of a revenue source for a fiscal year, the amount equal to the aggregate of the revenue to be equalized for that revenue source for that fiscal year for all provinces. Exécution du b 2006-2007 “national yield” « rendement national » “national yield” means, for a revenue source for a fiscal year, the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by the aggregate revenue base of all provinces in respect of that revenue source for that fiscal year. “revenue base” « assiette » “revenue base” means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. “revenue source” « source de revenu » “revenue source” means any of the following sources from which provincial revenues are or may be derived: (a) revenues relating to personal income; (b) revenues relating to business income; (c) revenues relating to consumption; (d) revenues derived from property taxes and miscellaneous revenues; and (e) revenues derived from natural resources. “revenue to be equalized” « revenu sujet à péréquation » “revenue to be equalized” means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations. “total per capita fiscal capacity” « capacité fiscale totale par habitant » “total per capita fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula A + B + [(C + D + E) / F] where A is the aggregate of that province’s average annual per capita yield for each revenue source, except the one referred to in paragraph (e) of the definition “revenue source”, for that fiscal year; B is that province’s average annual per capita revenue to be equalized, for the revenue source referred to in paragraph (e) of the definition “revenue source”, for that fiscal year; C. 29 Budget Implem C is any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined in accordance with section 3.2 — or, in the case of British Columbia, sections 3.2 and 3.3 — without regard to section 3.4; D is, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under the Canada-Newfoundland Atlantic Accord Implementation Act; E is, with respect to Nova Scotia or Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year in accordance with sections 7, 8, 10 to 14, 21, 22, and 24 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act; and F is the average annual population of that province for that fiscal year. “yield” « rendement » Deduction in computing revenue to be equalized “yield” means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base for that revenue source for that fiscal year. (2) In computing the revenue to be equalized from the revenue source described in paragraph (a) of the definition “revenue source” in subsection (1) for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been Exécution du b 2006-2007 derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act. Municipal property taxes and miscellaneous revenues and taxes (3) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year, in the case of the part of the revenue source referred to in paragraph (d) of the definition “revenue source” in subsection (1) that consists of local government property taxes and revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year is deemed to be revenue derived by that province from that revenue source for that fiscal year. NOVA SCOTIA AND NEWFOUNDLAND AND LABRADOR Computation of fiscal equalization payments 3.6 (1) The fiscal equalization payment that may be paid to Nova Scotia and the fiscal equalization payment that may be paid to Newfoundland and Labrador, for each fiscal year beginning after March 31, 2008, is the amount, as determined by the Minister, equal to the amount determined by the formula (A - B) × C where A is the per capita equalization standard for that fiscal year; B is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year; and C is the average annual population of that province for that fiscal year. Per capita equalization standard (2) For the purposes of subsection (1), the Minister shall determine the per capita equalization standard for a fiscal year as if, for that fiscal year, the amount of the fiscal equalization payment that may be paid to all provinces were C. 29 Budget Implem computed in the manner described in that subsection and shall, in making that determination, ensure that (a) the amount determined by the following formula would be the same with respect to every province that would receive a fiscal equalization payment: A + (B / C) where A is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, B is the amount of the fiscal equalization payment that would be received by that province for that fiscal year, and C is the average annual population of that province for that fiscal year; and (b) the aggregate of the fiscal equalization payments that may be paid to the provinces for that fiscal year would be equal to, (i) for the fiscal year beginning on April 1, 2005, $10,900,000,000, (ii) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and (iii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035. Election for fiscal year 20072008 3.7 (1) The Minister of Finance of Nova Scotia or of Newfoundland and Labrador, as the case may be, may elect, for the fiscal year beginning on April 1, 2007, that the fiscal equalization payment that may be paid to that province be equal to $1,464,528,000 for Nova Scotia and $520,510,000 or $732,462,000 for Newfoundland and Labrador, rather than the amount set out under section 3.1. The election must be communicated to the Minister in writing on or before March 1, 2008. 2006-2007 Exécution du b Effect — election by Newfoundland and Labrador (2) If Newfoundland and Labrador elects to receive, under subsection (1), $520,510,000, that province is considered to have made the election under subsection 3.2(2). Election for subsequent fiscal years (3) For any fiscal year beginning after March 31, 2008, Nova Scotia or Newfoundland and Labrador, as the case may be, may elect, at the prescribed time and in the prescribed manner, that the amount of the fiscal equalization payment that may be paid to that province be determined under sections 3.2 and 3.4, rather than under subsection 3.6(1). Effect of election (4) As soon as a province makes the election under subsection (3), section 3.6 ceases to apply to that province. Fiscal year 20122013 and later 3.8 (1) For a fiscal year beginning after March 31, 2012, the fiscal equalization payment that may be paid to Nova Scotia or Newfoundland and Labrador, as the case may be, shall be determined under sections 3.2 and 3.4 and not subsection 3.6(1) if, for that fiscal year, (a) in the case of Nova Scotia, the province does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act; and (b) in the case of Newfoundland and Labrador, the province does not meet the conditions under paragraphs 26(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 28 of that Act. Effect for subsequent fiscal years (2) As soon as, under subsection (1), the fiscal equalization payment that may be paid for a fiscal year to Nova Scotia or to Newfoundland and Labrador, as the case may be, is to be determined under sections 3.2 and 3.4, section 3.6 ceases to apply to that province. Interpretation 3.9 (1) The following definitions apply in this section and in sections 3.6 to 3.8. C. 29 “average annual per capita yield” « rendement annual moyen par habitant » “average annual per capita yield” means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula Budget Implem (A + B + C) / (D + E + F) where A is the yield for that revenue source for the fiscal year that is one year prior to that fiscal year; B is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year; C is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year; D is the population of that province for the fiscal year that is one year prior to that fiscal year; E is the population of that province for the fiscal year that is two years prior to that fiscal year; and F is the population of that province for the fiscal year that is three years prior to that fiscal year. “average annual population” « population annuelle moyenne » “average annual population” means, in respect of a province for a fiscal year, the amount determined by the formula (A + B + C) / 3 where A is the population of that province for the fiscal year that is one year prior to that fiscal year; B is the population of that province for the fiscal year that is two years prior to that fiscal year; and C is the population of that province for the fiscal year that is three years prior to that fiscal year. “yield” « rendement » “yield” means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue Exécution du b 2006-2007 source for that fiscal year by that province’s revenue base in respect of that revenue source for that fiscal year. Terminology (2) For the purposes of this section and sections 3.6 to 3.8, the following expressions have the same meaning as in subsection 4(2) of this Act as it read on March 13, 2004: (a) “national average rate of tax”; (b) “revenue base”; (c) “revenue source”; and (d) “revenue to be equalized”. Deduction in computing revenue to be equalized (3) In computing the revenue to be equalized from personal incomes taxes — referred to in paragraph (a) of the definition “revenue source” referred to in subsection (2) — for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act. Municipal property taxes and miscellaneous revenues and taxes (4) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year from the revenue sources referred to in paragraphs (a) and (b), the following are deemed to be revenues derived by that province for that fiscal year from those revenue sources: (a) in the case of the part of the revenue source referred to in paragraph (z) of the definition “revenue source” referred to in subsection (2) that consists of local government property taxes, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province C. 29 Budget Implem that has power to levy property taxes for the financial year of each such local authority ending in that fiscal year; and (b) in the case of the part of the revenue source referred to in paragraph (z.4) of the definition “revenue source” referred to in subsection (2) that consists of local government revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year. Adjustment of revenue to be equalized (5) Subject to subsection (6), if, for a fiscal year, a province would be entitled to receive a fiscal equalization payment under section 3.6, computed as if that section applied to that province, and if that province has seventy per cent or more of the revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for that fiscal year. Election (6) In order for subsection (5) to apply to Nova Scotia or to Newfoundland and Labrador, in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” referred to in subsection (2), Nova Scotia or Newfoundland and Labrador, as the case may be, shall make an election at the prescribed time and in the prescribed manner. Effect of election under subsection (6) (7) Despite any provision of the CanadaNewfoundland Atlantic Accord Implementation Act, if Newfoundland and Labrador makes the election described in subsection (6) for a fiscal year, the fiscal equalization offset payment that may otherwise be payable to the province under that Act is, for that fiscal year, zero. Exécution du b 2006-2007 GENERAL Time of calculation 3.91 The fiscal equalization payment that may be paid to a province for a fiscal year shall be calculated, at a time determined by the Minister, no later than three months before that fiscal year begins. Underpayment 3.92 If the Minister determines that the Minister has underpaid any amounts payable to a province under this Part, the Minister may pay that province an amount equal to the underpayment. Overpayment 3.93 If the Minister determines that the Minister has overpaid any amounts paid to a province for a fiscal year under this Part, the Minister may recover the amount of that overpayment from (a) any amount payable under this Act to that province, in that fiscal year or as soon as possible after the end of that fiscal year; or (b) that province as a debt due to Her Majesty in right of Canada. Time and manner of payments 3.94 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, any amounts authorized to be paid by this Part at the times and in the manner that the Minister considers appropriate. Recovery 3.95 If the Minister has made a payment to a province under subsection 4.2(1) of this Act as it read on the day before the day on which this section comes into force, the Minister shall, in the prescribed amounts, reduce the fiscal equalization payments to that province for the fiscal years in the period beginning on April 1, 2007 and ending on March 31, 2016. If, on March 31, 2016, the total amount of that payment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to that province pursuant to this Act or any other Act of Parliament. C. 29 Budget Implem PART I.1 TERRITORIAL FINANCING INTERPRETATION Definitions “eligible revenues” « revenus admissibles » “fiscal capacity” « capacité fiscale » 4. (1) The following definitions apply in this Part. “eligible revenues” means, in respect of a territory for a fiscal year, the amount equal to the product obtained by multiplying the fiscal capacity of that territory for that fiscal year by 0.70. “fiscal capacity” means, in respect of a territory for a fiscal year, the amount determined by the formula (A + B + C) / 3 + D where A is the aggregate of the yields in that territory for each revenue source for the fiscal year that is two years prior to that fiscal year; B is the aggregate of the yields in that territory for each revenue source for the fiscal year that is three years prior to that fiscal year; C is the aggregate of the yields in that territory for each revenue source for the fiscal year that is four years prior to that fiscal year; and D is the revenue block for that fiscal year. “gross expenditure base” « base des dépenses brutes » “gross expenditure base” means, (a) for the fiscal year beginning on April 1, 2006, an amount equal to (i) $593,265,276 in respect of Yukon, (ii) $922,797,073 in respect of the Northwest Territories, and (iii) $931,390,618 in respect of Nunavut; and (b) in respect of a territory, for each subsequent fiscal year, an amount determined by the formula (A × B) + C where A is the amount determined to be the gross expenditure base for that territory for the fiscal year preceding that fiscal year, Exécution du b 2006-2007 B is the population adjusted gross expenditure escalator for that territory for that fiscal year, and C is the gross expenditure base adjustment determined under paragraph 4.2(a) for that territory for that fiscal year. “national average rate of tax” « taux d’imposition national moyen » “population adjusted gross expenditure escalator” « facteur de majoration des dépenses brutes rajustées en fonction de la population » “national average rate of tax” means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces and territories by the revenue base in respect of that revenue source for that fiscal year for all provinces and territories. “population adjusted gross expenditure escalator” means, in respect of a territory for a fiscal year, a factor equal to the product obtained by multiplying (a) the population adjustment factor for that territory for the fiscal year that is two years prior to that fiscal year by (b) the provincial local government expenditure index for the fiscal year that is two years prior to that fiscal year. “population adjustment factor” « facteur de rajustement en fonction de la population » “population adjustment factor” means, in respect of a territory for a fiscal year, the measure of the population growth of that territory relative to the population growth of Canada and may be defined more particularly by the regulations. “provincial local government expenditure index” « indice provincial des dépenses des administrations locales » “provincial local government expenditure index” means, for a fiscal year, the measure of changes in provincial and territorial government spending on programs and services and may be defined more particularly by the regulations. “revenue base” « assiette » “revenue base” means, in respect of a revenue source for a territory for a fiscal year, the measure of the relative capacity of that territory to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. C. 29 “revenue block” « bloc de revenus » “revenue block” means, Budget Implem (a) for the fiscal year beginning on April 1, 2006, an amount equal to (i) $54,530,841 in respect of Yukon, (ii) $107,538,446 in respect of the Northwest Territories, and (iii) $89,338,774 in respect of Nunavut; and (b) in respect of a territory, for each subsequent fiscal year, the amount equal to the product obtained by multiplying the amount of the revenue block for the previous fiscal year for that territory by 1.02. “revenue source” « source de revenu » “revenue source” means any of the following sources from which territorial revenues are or may be derived: (a) revenues derived from personal income; (b) revenues derived from corporate income and government business enterprises; (c) revenues derived from tobacco; (d) revenues derived from motive fuel taxes from the sale of gasoline; (e) revenues derived from motive fuel taxes from the sale of diesel fuel; (f) revenues derived from the sale of alcoholic beverages; and (g) revenues derived from payroll taxes. “revenue to be equalized” « revenu sujet à péréquation » “superannuation adjustment” « montant de l’indexation des pensions » “revenue to be equalized”, in respect of a revenue source for a territory for a fiscal year, means the revenue, as determined by the Minister, derived by that territory for that fiscal year from that revenue source and may be defined more particularly by the regulations. “superannuation adjustment” means, (a) for the fiscal year beginning on April 1, 2006, an amount equal to (i) $12,471,453 with respect to Yukon, (ii) $18,340,573 with respect to the Northwest Territories, and (iii) $11,108,311 with respect to Nunavut; and 2006-2007 Exécution du b (b) in respect of a territory, for each subsequent fiscal year, the amount determined by the Minister of Public Works and Government Services to be equal to, with respect to the fiscal year that is two years prior to that fiscal year, the difference between the amount of the superannuation contribution that is payable by that territory under the Public Service Superannuation Act and the amount that would be payable by that territory under that Act as it read on June 16, 1999. “yield” « rendement » “yield” means, in respect of a territory for a revenue source for a fiscal year, an amount equal to the aggregate of (a) the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that territory’s revenue base in respect of that revenue source for that fiscal year, and (b) the yield adjustment determined under paragraph 4.2(b) for that fiscal year. Determination of gross expenditure base (2) For the purposes of the definition “gross expenditure base” in subsection (1), the amount determined to be the gross expenditure base in respect of a territory for any preceding fiscal year may be recalculated by the Minister at any time to take into account changes to the prescribed data relating to the population adjusted gross expenditure escalator. TERRITORIAL FORMULA FINANCING PAYMENTS Territorial formula financing payments 4.1 (1) Subject to the other provisions of this Act, there may be paid to a territory a territorial formula financing payment not exceeding the C. 29 Budget Implem amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014. Fiscal year 20072008 (2) The territorial formula financing payment that may be paid to a territory for the fiscal year beginning on April 1, 2007 is equal to, (a) for Yukon, $540,095,000; ( b ) f o r t h e N o r t h w e s t Te r r i t o r i e s , $788,350,000; and (c) for Nunavut, $892,852,000. Subsequent fiscal years (3) Subject to the other provisions of this Part, the territorial formula financing payment that may be paid to a territory for a fiscal year beginning after March 31, 2008 is equal to the amount, as determined by the Minister, by which (a) the aggregate of the gross expenditure base and the superannuation adjustment for that territory for that fiscal year is greater than (b) the eligible revenues for that territory for that fiscal year. GENERAL Powers of the Minister 4.2 The Minister may determine, in respect of a territory for a fiscal year, (a) the amount of the gross expenditure base adjustment, in order to reflect (i) a transfer of responsibilities between Canada and the government of a territory or the government of a territory and an aboriginal government, (ii) the signing of land claims, comprehensive land claims or self-government agreements with aboriginal governments, and (iii) personal income tax room sharing agreements between the government of Yukon and an aboriginal government in Yukon; and (b) the amount of the yield adjustment, in order to reflect 2006-2007 Exécution du b (i) personal income tax room sharing agreements between the government of Yukon and an aboriginal government in Yukon, (ii) federal statutory limitations on territorial revenue raising capacity, and (iii) any fiscal capacity adjustments made, in respect of the Northwest Territories, for the fiscal years in the period beginning on April 1, 2004 and ending on March 31, 2006. Time of calculation 4.3 The territorial formula financing payment payable to a territory for a fiscal year shall be calculated, at a time determined by the Minister, no later than three months before that fiscal year begins. Underpayment 4.4 If the Minister determines that the Minister has underpaid any amounts payable to a territory under this Part, the Minister may pay that territory an amount equal to the underpayment. Overpayment 4.5 If the Minister determines that the Minister has overpaid any amounts paid to a territory for a fiscal year under this Part, the Minister may recover the amount of that overpayment from (a) any amount payable under this Act to that territory, in that fiscal year or as soon as possible after the end of that fiscal year; or (b) that territory as a debt due to Her Majesty in right of Canada. Time and manner of payments 4.6 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, any amounts authorized to be paid by this Part at the times and in the manner that the Minister considers appropriate. Recovery — Yukon 4.7 The Minister may recover, from any amount payable under this Part to Yukon, the amount, as determined by the Minister, that is computed under sections 7.5 and 7.7 of the Canada-Yukon Oil and Gas Accord, signed on May 28, 1993, and under section 7.27 of the C. 29 Budget Implem Yukon Northern Affairs Program Devolution Transfer Agreement, signed on October 29, 2001. 63. Part IV of the Act is repealed. R.S., c. 46 (4th Supp.), s. 5(1); 1999, c. 11, s. 4; 1999, c. 31, s. 236 2003, c. 15, s. 8 64. Subsection 24.1(2) of the Act is replaced by the following: Meaning of “total equalized tax transfer” (2) In subsection (1), “total equalized tax transfer” means the total equalized tax transfer as determined in accordance with section 24.7. 2003, c. 15, s. 8 65. The description of M in section 24.2 of the Act is replaced by the following: M is the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with section 24.7 by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.1(1)(a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)(a)(i) and 24.4(1)(a)(i). 66. The Act is amended by adding the following after section 24.2: Provincial share — fiscal year 2014-2015 and later 24.21 Any cash contribution in the nature of contributions referred to in paragraph 24.1(1)(a) that is provided to a province under this Act for any fiscal year beginning after March 31, 2014 is to be determined by multiplying the total of such cash contributions to be provided to all the provinces for that fiscal year by the quotient obtained by dividing (a) the population of that province for that fiscal year by Exécution du b 2006-2007 (b) the total of the population of all provinces for that fiscal year. 2003, c. 15, s. 8 67. Paragraph 24.3(1)(c) of the Act is replaced by the following: (c) promoting any shared principles and objectives, including public reporting, that are developed under subsection (2) with respect to the operation of social programs. 2003, c. 15, s. 8 68. (1) Paragraph 24.4(1)(a) of the Act is amended by striking out the word “and” at the end of subparagraph (iv) and by replacing subparagraph (v) with the following: (v) $9.487 billion for the fiscal year beginning on April 1, 2007, (vi) $10.537 billion for the fiscal year beginning on April 1, 2008, and (vii) the product obtained by multiplying the cash contribution for the immediately preceding fiscal year by 1.03, rounded to the nearest thousand, for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014. 2003, c. 15, s. 8 (2) Subsection 24.4(2) of the Act is replaced by the following: Meaning of “total equalized tax transfer” (2) In subsection (1), “total equalized tax transfer” means the total equalized tax transfer as determined in accordance with section 24.7. 2003, c. 15, s. 8 69. (1) The portion of section 24.5 of the Act before the description of K is replaced by the following: Provincial share: fiscal year 20062007 and earlier 24.5 The cash contribution established under any of subparagraphs 24.4(1)(a)(i) to (iv) that may be provided to a province for the fiscal year mentioned in that subparagraph is the amount determined by the formula F × (K/L) - M where F is the total of the amounts established under subparagraphs 24.4(1)(a)(i) to (iv) and paragraph 24.4(1)(b) for the fiscal year; C. 29 2003, c. 15, s. 8 (2) The description of M in section 24.5 of the Act is replaced by the following: Budget Implem M is the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with section 24.7 by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.4(1)(a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)(a)(i) and 24.4(1)(a)(i). 70. The Act is amended by adding the following after section 24.5: Provincial share — fiscal year 2007-2008 and later 24.51 The cash contribution established under any of subparagraphs 24.4(1)(a)(v) to (vii) that may be provided to a province for the fiscal year mentioned in that subparagraph is the amount determined by multiplying the amount established under that subparagraph for that fiscal year by the quotient obtained by dividing (a) the population of the province for that fiscal year by (b) the total of the population of all provinces for that fiscal year. 2003, c. 15, s. 8 71. (1) The portion of subsection 24.7(1) of the Act before paragraph (a) is replaced by the following: Total equalized tax transfer — fiscal years 2004-2005 to 2006-2007 24.7 (1) The total equalized tax transfer applicable to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2007 is the aggregate of 2005, c. 7, s. 4(1) (2) The po rtion of sub parag raph 24.7(1)(b)(ii) of the Act before clause (A) is replaced by the following: (ii) the amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, if the method of 2006-2007 Exécution du b calculation of fiscal equalization payments as set out in Part I, excluding subsection 4(6) of this Act, as that Part read on May 13, 2004, were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, except that 2005, c. 7, s. 4(2) (3) Paragraph 24.7(1.1)(a) of the Act is replaced by the following: (a) for each fiscal year in the period beginning on April 1, 2005 and ending on March 31, 2007, the equalization payment shall be the equalization payment that would be payable to the province for the fiscal year under Part I, as that Part read on March 28, 2007; and 2005, c. 7, s. 4(2) (4) Subparagraph 24.7(1.1)(b)(i) of the Act is replaced by the following: (i) in the case of a province that receives an additional fiscal equalization payment under subsection 4(3), as it read on March 28, 2007, the estimate that was made by the Minister on February 23, 2004 in respect of the fiscal year in accordance with section 8 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, and 2003, c. 15, s. 4(2) (5) Subparagraph 24.7(1.1)(b)(ii) of the English version of the Act is replaced by the following: (ii) in the case of a province that does not receive an additional fiscal equalization payment under subsection 4(3), as it read on March 28, 2007, the final computation in respect of the fiscal year. (6) Section 24.7 of the Act is amended by adding the following after subsection (1.1): Total equalized tax transfer — fiscal year 20072008 and later (1.2) The total equalized tax transfer applicable to a province for each fiscal year beginning after March 31, 2007 is the aggregate of C. 29 Budget Implem (a) the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year, and (b) the amount equal to the lesser of (i) the equalization payment payable to that province for that fiscal year under Part I, and (ii) an amount of equalization equal to the greater of (A) the product obtained by multiplying (I) the aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition “revenue source” in subsection 3.5(1), the per capita yield for that province for that fiscal year from the per capita national yield for that fiscal year by (II) the population of that province for that fiscal year, and (B) zero. Revenue sources (1.3) For the purposes of the calculation under subparagraph (1.2)(b)(ii), the relevant revenue bases, per capita yield and per capita national yield are to be determined in the prescribed manner. 2003, c. 15, s. 8 (7) The portion of subsection 24.7(2) of the Act before paragraph (a) is replaced by the following: Federal income tax reduction (2) For the purposes of subsections (1) and (1.2), the amount represented by the federal income tax reduction in a province in respect of the Canada Health Transfer and the Canada Social Transfer for a fiscal year is an amount equal to the aggregate of 72. The Act is amended by adding the following after section 24.7: Exécution du b 2006-2007 TRANSITION PROTECTION Prevention of transfer declines — Canada Health Transfer 24.701 (1) The Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2007 equal to the amount by which (a) the cash contribution established under paragraph 24.1(1)(a) to be provided to that province for the fiscal year beginning on April 1, 2007 as calculated under this Act, as it read on March 28, 2007 exceeds (b) the cash contribution established under paragraph 24.1(1)(a) to be provided to that province for each of those fiscal years as calculated under this Act as it reads on the day on which this subsection comes into force. Prevention of transfer declines — Canada Social Transfer (2) The Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2007 equal to the amount by which (a) the cash contribution established under paragraph 24.4(1)(a) to be provided to that province for the fiscal year beginning on April 1, 2007 as calculated under this Act, as it read on March 28, 2007 exceeds (b) the cash contribution established under paragraph 24.4(1)(a) to be provided to that province for each of those fiscal years as calculated under this Act as it reads on the day on which this subsection comes into force. 73. Section 40 of the Act is amended by adding the following before paragraph (b): (a) respecting the determination of amounts that are to be computed under Part I or I.1; (a.1) respecting the information that must be prepared and submitted by the Chief Statistician of Canada for the purposes of Parts I and I.1; C. 29 Budget Implem (a.2) providing for the provincial or territorial revenues that constitute, or are deemed to constitute, the revenues referred to in each paragraph of the definition “revenue source” in subsections 3.5(1) and 4(1); (a.3) providing for the provincial revenues that constitute, or are deemed to constitute, the revenues referred to in each paragraph of the definition “revenue source” in subsection 4(2) of this Act as it read on March 13, 2004; (a.4) defining, for the purposes of sections 3.6 to 3.9, the expressions “national average rate of tax”, “revenue base” and “revenue to be equalized”; 74. The Act is amended by adding the following after section 40: SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006 Recovery 40.1 (1) Despite any other provision of this Act, if, in any fiscal year, the costs referred to in paragraphs 99(1)(a) and (b) of the Softwood Lumber Products Export Charge Act, 2006 exceed the revenues, less any refunds, derived by Her Majesty in right of Canada from the charges imposed under sections 10 and 15 of that Act, then the amount of that excess may be recovered from any payments payable to provinces under this Act. Restriction (2) Despite subsection (1), the amount that may be recovered under that subsection with respect to a province for a fiscal year shall not exceed the difference between the aggregate of the amounts paid to that province under section 99 of the Softwood Lumber Products Export Charge Act, 2006 in prior fiscal years and the aggregate of the amounts that have been previously recovered under this section with respect to that province for those prior fiscal years. TRANSITIONAL PROVISIONS Amounts paid before coming into force (Part I) 75. For the fiscal year beginning on April 1, 2007, the fiscal equalization payment that may be paid to a province under Part I of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, shall be adjusted by deducting all the amounts of Exécution du b 2006-2007 fiscal equalization payments paid to that province for that fiscal year before the day on which this Act receives royal assent. Amounts paid before coming into force (Part I.1) 76. For the fiscal year beginning on April 1, 2007, the territorial formula financing payment that may be paid to a territory under Part I.1 of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, shall be adjusted by deducting all the amounts of the territorial formula financing payments paid to that territory for that fiscal year before the day on which this Act receives royal assent. Amounts paid before coming into force (Part V.1) 77. For the fiscal year beginning on April 1, 2007, the Canada Health Transfer and Canada Social Transfer payments that may be paid to a province under Part V.1 of the Federal-Provincial Fiscal Arrangements Act, as amended by sections 64 to 72 of this Act, shall be adjusted by deducting all of the Canada Health Transfer and Canada Social Transfer payments paid to that province for that fiscal year before the day on which this Act receives royal assent. CONSEQUENTIAL AMENDMENTS 1987, c. 3 Canada-Newfoundland Atlantic Accord Implementation Act 2004, c. 22, s. 6 78. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following: Calculation 220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of (a) the amount, if any, by which (i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the C. 29 Budget Implem Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, is less than (ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent, (iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or (iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year, and (b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined Exécution du b 2006-2007 in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year is greater than (ii) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year. 79. The Act is amended by adding the following after section 220: Definition of “average” 220.1 For the purposes of section 220, “average”, except within the expression “national average per capita fiscal capacity”, means a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%. 80. Subsection 222(1) of the Act is replaced by the following: Final determination 222. (1) The final determination, for any fiscal year, of the fiscal equalization offset payment for the Province, the per capita fiscal capacity for the Province and the national average per capita fiscal capacity shall be determined by the Federal Minister at the same time that the final computation of the amount, if any, of the fiscal equalization payment that is payable to a province is made for the fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act. C. 29 2005, c. 30, s. 85 Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act Budget Implem 81. The definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act is replaced by the following: “fiscal equalization payment” « paiement de péréquation » “fiscal equalization payment” means (a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and (b) for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula A + B + (C / F) where A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act. 82. The definition “fiscal equalization payment” in section 18 of the Act is replaced by the following: “fiscal equalization payment” « paiement de péréquation » “fiscal equalization payment” means (a) for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and (b) for the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year Exécution du b 2006-2007 under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula A + B + (C / F) where A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act. Transitional Provisions Effect of election by Newfoundland and Labrador — fiscal year 20072008 83. (1) For the fiscal year that begins on April 1, 2007, if Newfoundland and Labrador makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, (a) section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act shall be read as follows: Calculation 220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of (a) the amount, if any, by which (i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, is less than (ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per C. 29 Budget Implem cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent, (iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or (iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and (b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year is greater than (ii) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the Exécution du b 2006-2007 amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year. (b) a reference to “average” in section 220 of that Act, except within the expression “national average per capita fiscal capacity”, shall be considered to mean a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%; and (c) the definition “fiscal equalization payment” in section 18 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows: “fiscal equalization payment” « paiement de péréquation » “fiscal equalization payment” means (a) for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and (b) for the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula A + B + (C / F) where A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act. C. 29 Effect of election by Nova Scotia — fiscal year 2007-2008 (2) For the fiscal year that begins on April 1, 2007, if Nova Scotia makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, the definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows: “fiscal equalization payment” « paiement de péréquation » Budget Implem “fiscal equalization payment” means (a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and (b) for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula A + B + (C / F) where A, B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act. Effect of election by Newfoundland and Labrador — fiscal year 20082009 (3) For the fiscal year that begins on April 1, 2008, if Newfoundland and Labrador does not make the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, and made, in respect of the preceding fiscal year, the election under subsection 3.7(1) of that Act, as enacted by that section 62, (a) the portion of paragraph 220(a) of the Canada-Newfoundland Atlantic Accord Implementation Act after subparagraph (iv) shall be read as follows: 2006-2007 Exécution du b of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and (b) subparagraph 220(b)(i) of that Act shall be read as follows: (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year Effect of election by Newfoundland and Labrador — fiscal year 20082009 and subsequent fiscal years (4) For the first fiscal year that begins after the coming into force of section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act, as enacted by section 78 of this Act, (a) the portion of paragraph 220(a) of that Act after subparagraph (iv) shall be read as follows: C. 29 Budget Implem of the aggregate of the fiscal equalization payment that may be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and (b) subparagraph 220(b)(i) of that Act shall be read as follows: (i) the aggregate of the fiscal equalization payment that may be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year Non-application (5) If Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, for the fiscal year beginning on April 1, 2008 and that province had made the election under subsection 3.7(1) of that Act, as enacted by that section 62, for the preceding fiscal year, subsection (4) does not apply. COMING INTO FORCE Newfoundland and Labrador 84. (1) Sections 78, 79 and 82 come into force on a day to be fixed by order of the Governor in Council, but the day that is fixed must not be before the day on which NewExécution du b 2006-2007 foundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act. Nova Scotia (2) Section 81 comes into force on a day to be fixed by order of the Governor in Council, but the day that is fixed must not be before the day on which Nova Scotia makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act. PART 7 AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT R.S., c. F-11 FINANCIAL ADMINISTRATION ACT 85. The Financial Administration Act is amended by adding the following after section 43: Power to borrow 43.1 The Governor in Council may authorize the Minister to borrow money on behalf of Her Majesty in right of Canada. 1999, c. 26, s. 22 86. Sections 46.1 and 47 of the Act are repealed. 1999, c. 26, s. 23 87. Section 49 of the Act is replaced by the following: Report on debt management 49. (1) After the Public Accounts are tabled in the House of Commons, the Minister shall cause to be tabled in each House of Parliament, within the first 30 days on which that House is sitting after the Public Accounts are tabled in the House of Commons, a report on the activities of the Minister in relation to the following: (a) the money borrowed under section 43.1 in the fiscal year to which the Public Accounts relate; and (b) the management of the public debt in the fiscal year to which the Public Accounts relate. Report next fiscal year (2) In every fiscal year, the Minister shall cause to be tabled in each House of Parliament a report on the Minister’s plans in relation to the following: C. 29 Budget Implem (a) the money to be borrowed under section 43.1 in the next fiscal year and the purposes for which the moneys will be borrowed; and (b) the management of the public debt in the next fiscal year. 88. Section 54 of the Act is replaced by the following: Borrowed money and interest 54. The repayment of all money borrowed and interest on that money, including the principal of and interest on all securities issued by or on behalf of Her Majesty with the authority of Parliament, is a charge on and payable out of the Consolidated Revenue Fund. COMING INTO FORCE Order in council 89. This Part comes into force on a day to be fixed by order of the Governor in Council. PART 8 R.S., c. C-7 AMENDMENTS TO THE CANADA MORTGAGE AND HOUSING CORPORATION ACT 1992, c. 32, s. 1 90. (1) Subsection 21(1) of the Canada Mortgage and Housing Corporation Act is replaced by the following: Loans to the Corporation 21. (1) At the request of the Corporation, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Corporation on any terms and conditions that that Minister may fix. 1992, c. 32, s. 1 (2) The portion of subsection 21(2) of the French version of the Act before paragraph (a) is replaced by the following: Autres prêts (2) La Société peut contracter des emprunts auprès de personnes autres que Sa Majesté, la présente loi l’autorisant à emprunter ainsi des sommes de façon que le total de ses dettes à ce chapitre n’excède pas le total des montants suivants : Exécution du b 2006-2007 PART 9 AMENDMENTS RELATING TO ELIGIBLE FINANCIAL CONTRACTS R.S., c. B-3; 1992, c. 27, s. 2 BANKRUPTCY AND INSOLVENCY ACT 91. (1) Section 2 of the Bankruptcy and Insolvency Act is amended by adding the following in alphabetical order: “eligible financial contract” « contrat financier admissible » “eligible financial contract” means (a) a currency or interest rate swap agreement, (b) a basis swap agreement, (c) a spot, future, forward or other foreign exchange agreement, (d) a cap, collar or floor transaction, (e) a commodity swap, (f) a forward rate agreement, (g) a repurchase or reverse repurchase agreement, (h) a spot, future, forward or other commodity contract, (i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities, (j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i), (k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j), (l) any master agreement in respect of a master agreement referred to in paragraph (k), (m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or (n) any agreement of a kind prescribed; “financial collateral” « garantie financière » “financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in C. 29 Budget Implem respect of an eligible financial contract or that is subject to a title transfer credit support agreement: (a) cash or cash equivalents, including negotiable instruments and demand deposits, (b) securities, a securities account, a securities entitlement or a right to acquire securities, or (c) a futures agreement or a futures account; “net termination value” « valeurs nettes dues à la date de résiliation » “net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions; “title transfer credit support agreement” « accord de transfert de titres pour obtention de crédit » “title transfer credit support agreement” means an agreement under which an insolvent person or a bankrupt has provided title to property for the purpose of securing the payment or performance of an obligation of the insolvent person or bankrupt in respect of an eligible financial contract; (2) The definition “eligible financial contract” in section 2 of the Act, as enacted by subsection (1), is replaced by the following: “eligible financial contract” « contrat financier admissible » “eligible financial contract” means an agreement of a prescribed kind; 1992, c. 27, s. 30; 1997, c. 12, s. 41(2) 92. (1) Subsection 65.1(8) of the Act is repealed. 1997, c. 12, s. 41(3) (2) Subsection 65.1(9) of the Act is replaced by the following: Permitted actions (9) Despite subsections 69(1) and 69.1(1), the following actions are permitted in respect of an eligible financial contract that is entered into before the filing, in respect of an insolvent person of a notice of intention or, where no 2006-2007 Exécution du b notice of intention is filed, a proposal, and that is terminated on or after that filing, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the insolvent person and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (9) are owed by the insolvent person to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the insolvent person with a claim provable in bankruptcy in respect of those net termination values. 93. Paragraph 65.11(2)(a) of the Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (a) an eligible financial contract; 94. Section 66.34 of the Act is amended by adding the following after subsection (6): Eligible financial contracts (7) Subsection (1) does not apply in respect of an eligible financial contract. Permitted actions (8) Despite section 69.2, the following actions are permitted in respect of an eligible financial contract that is entered into before the filing of a consumer proposal and is terminated on or after that filing, but only in accordance with the provisions of that contract: C. 29 Budget Implem (a) the netting or setting off or compensation of obligations between the consumer debtor and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the consumer debtor to another party to the eligible financial contract, that other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of those net termination values. 95. Section 69.2 of the Act is amended by adding the following after subsection (4): Exception (5) No order may be made under subsection (4) if the order would have the effect of preventing a secured creditor from realizing or otherwise dealing with financial collateral. 96. Section 69.3 of the Act is amended by adding the following after subsection (2): Exception (2.1) No order may be made under subsection (2) if the order would have the effect of preventing a secured creditor from realizing or otherwise dealing with financial collateral. 97. Paragraph 84.1(3)(a) of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (a) under an eligible financial contract; 2006-2007 Exécution du b 98. Section 84.2 of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (6): Eligible financial contracts (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the individual bankrupt and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the individual bankrupt with a claim provable in bankruptcy in respect of those net termination values. C. 29 Budget Implem 99. The Act is amended by adding the following after section 87: PRIORITY OF FINANCIAL COLLATERAL Priority 88. In relation to a bankruptcy or proposal, no order may be made under this Act if the order would have the effect of subordinating financial collateral. 1997, c. 12, s. 78(2) 100. Subsection 95(2.1) of the Act is replaced by the following: Exception (2.1) Subsection (2) does not apply in respect of the following: (a) a margin deposit made by a clearing member with a clearing house; or (b) a transfer, charge or payment made in connection with financial collateral and in accordance with the provisions of an eligible financial contract. 1997, c. 12, s. 118(1) 101. The definition “eligible financial contract” in section 253 of the Act is repealed. 2004, c. 25, s. 98(E) 102. Subsection 254(4) of the Act is replaced by the following: Termination, netting or setting off or compensation (4) Nothing in this Part affects the rights of a party to a contract, including an eligible financial contract, with respect to termination, netting or setting off or compensation. R.S., c. C-3 CANADA DEPOSIT INSURANCE CORPORATION ACT 1996, c. 6, s. 41 103. (1) Subsections 39.15(7) and (8) of the Canada Deposit Insurance Corporation Act are replaced by the following: Financial contracts (7) Nothing in subsection (1) or (2) prevents the following actions from being taken in accordance with the provisions of an eligible financial contract: (a) the termination of the contract; (b) the netting or setting off or compensation of an amount payable under or in connection with the contract; or (c) any dealing with financial collateral including Exécution du b 2006-2007 (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Regulations (8) The Governor in Council may make regulations prescribing (a) kinds of services for the purposes of subparagraph (5)(c)(xiii); and (b) kinds of agreements for the purposes of the definition “eligible financial contract” in subsection (9). Definitions “eligible financial contract” « contrat financier admissible » (9) The following definitions apply in subsections (7) and (8). “eligible financial contract” means (a) a currency or interest rate swap agreement; (b) a basis swap agreement; (c) a spot, future, forward or other foreign exchange agreement; (d) a cap, collar or floor transaction; (e) a commodity swap; (f) a forward rate agreement; (g) a repurchase or reverse repurchase agreement; (h) a spot, future, forward or other commodity contract; (i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities; (j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i); (k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j); (l) any master agreement in respect of a master agreement referred to in paragraph (k); C. 29 Budget Implem (m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l); and (n) any agreement of a kind prescribed by the regulations. “financial collateral” « garantie financière » “financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement: (a) cash or cash equivalents, including negotiable instruments and demand deposits; (b) securities, a securities account, a securities entitlement or a right to acquire securities; or (c) a futures agreement or a futures account. “title transfer credit support agreement” « accord de transfert de titres pour obtention de crédit » “title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract. (2) The definition “eligible financial contract” in subsection 39.15(9) of the Act, as enacted by subsection (1), is replaced by the following: “eligible financial contract” « contrat financier admissible » R.S., c. C-36 “eligible financial contract” means an agreement of a prescribed kind; COMPANIES’ CREDITORS ARRANGEMENT ACT 104. (1) Section 2 of the Companies’ Creditors Arrangement Act is amended by adding the following in alphabetical order: Exécution du b 2006-2007 “eligible financial contract” « contrat financier admissible » “eligible financial contract” means (a) a currency or interest rate swap agreement, (b) a basis swap agreement, (c) a spot, future, forward or other foreign exchange agreement, (d) a cap, collar or floor transaction, (e) a commodity swap, (f) a forward rate agreement, (g) a repurchase or reverse repurchase agreement, (h) a spot, future, forward or other commodity contract, (i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities, (j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i), (k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j), (l) any master agreement in respect of a master agreement referred to in paragraph (k), (m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or (n) any agreement of a kind prescribed; “financial collateral” « garantie financière » “financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement: (a) cash or cash equivalents, including negotiable instruments and demand deposits, (b) securities, a securities account, a securities entitlement or a right to acquire securities, or (c) a futures agreement or a futures account; C. 29 “net termination value” « valeurs nettes dues à la date de résiliation » “net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions; “title transfer credit support agreement” « accord de transfert de titres pour obtention de crédit » “title transfer credit support agreement” means an agreement under which a debtor company has provided title to property for the purpose of securing the payment or performance of an obligation of the debtor company in respect of an eligible financial contract; Budget Implem (2) The definition “eligible financial contract” in section 2 of the Act, as enacted by subsection (1), is replaced by the following: “eligible financial contract” « contrat financier admissible » “eligible financial contract” means an agreement of a prescribed kind; 105. Section 11.05 of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is repealed. 1997, c. 12, s. 124 106. (1) Subsection 11.1(1) of the Act is repealed. 1997, c. 12, s. 124 (2) Subsection 11.1(3) of the Act is replaced by the following: Permitted actions (3) The following actions are permitted in respect of an eligible financial contract that is entered into before proceedings under this Act are commenced in respect of the company and is terminated on or after that day, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the company and the other parties to the eligible financial contract; and Exécution du b 2006-2007 (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Restriction (4) No order may be made under this Act if the order would have the effect of staying or restraining the actions permitted under subsection (3). Net termination values (5) If net termination values determined in accordance with an eligible financial contract referred to in subsection (3) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim against the company in respect of those net termination values. Priority (6) No order may be made under this Act if the order would have the effect of subordinating financial collateral. 107. Paragraph 11.3(3)(a) of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (a) under an eligible financial contract; 108. Paragraph 32(2)(a) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following: (a) an eligible financial contract; 109. Section 34 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (6): 114 Eligible financial contracts C. 29 Budget Implem (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for a company in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) The following actions are permitted in respect of an eligible financial contract that is entered into before proceedings under this Act are commenced in respect of the company and is terminated on or after that day, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the company and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Restriction (9) No order may be made under this Act if the order would have the effect of staying or restraining the actions permitted under subsection (8). Net termination values (10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim against the company in respect of those net termination values. Priority (11) No order may be made under this Act if the order would have the effect of subordinating financial collateral. 2006-2007 1996, c. 6 (Sch.) Exécution du b PAYMENT CLEARING AND SETTLEMENT ACT 110. Section 2 of the Payment Clearing and Settlement Act is amended by adding the following in alphabetical order: “eligible financial contract” « contrat financier admissible » “eligible financial contract” has the same meaning as in subsection 22.1(2) of the Winding-up and Restructuring Act; 111. (1) Section 13 of the Act is amended by adding the following after subsection (1): Eligible financial contract (1.1) If a netting agreement referred to in subsection (1) is an eligible financial contract, the financial institution or the Bank may also, in accordance with the provisions of that agreement, deal with financial collateral including (a) selling or foreclosing or, in the Province of Quebec, surrendering financial collateral; and (b) setting off or compensating financial collateral or applying the proceeds or value of financial collateral. 1999, c. 28, s. 133(2) “netting agreement” « accord de compensation » (2) The definition “netting agreement” in subsection 13(2) of the Act is replaced by the following: “netting agreement” means an agreement between two or more financial institutions or between the Bank and one or more financial institutions that is (a) an eligible financial contract, or (b) an agreement that provides for the netting or set-off or compensation of present or future obligations to make payments against the present or future rights to receive payments. (3) The definition “net termination value” in subsection 13(2) of the English version of the Act is replaced by the following: C. 29 “net termination value” « reliquat net » “net termination value” means the net amount obtained after setting off or compensating or otherwise netting the obligations between the parties to a netting agreement in accordance with its provisions; Budget Implem (4) Subsection 13(2) of the Act is amended by adding the following in alphabetical order: “financial collateral” « garantie financière » “financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement: (a) cash or cash equivalents, including negotiable instruments and demand deposits, (b) securities, a securities account, a securities entitlement or a right to acquire securities, or (c) a futures agreement or a futures account; “title transfer credit support agreement” « accord de transfert de titres pour obtention de crédit » “title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract; 2002, c. 14, s. 1 112. (1) The definition “netting agreement” in subsection 13.1(3) of the Act is replaced by the following: “netting agreement” « accord de compensation » “netting agreement” means an agreement between a securities and derivatives clearing house and a clearing member that is (a) an eligible financial contract; or (b) an agreement that provides for the netting or setting off or compensation of present or future obligations to make payments or deliveries against present or future rights to receive payments or take deliveries. 2002, c. 14, s. 1 (2) The definition “net termination value” in subsection 13.1(3) of the English version of the Act is replaced by the following: 2006-2007 Exécution du b “net termination value” « reliquat net » “net termination value” means the net amount obtained after setting off or compensating or otherwise netting the obligations between a securities and derivatives clearing house and a clearing member in accordance with the netting agreement. R.S., c. W-11; 1996, c. 6, s. 134 WINDING-UP AND RESTRUCTURING ACT 1996, c. 6, s. 142 113. (1) Subsection 22.1(1) of the Winding-up and Restructuring Act is replaced by the following: Permitted actions 22.1 (1) Nothing in this Act or an order made under this Act prevents or prohibits the following actions from being taken in accordance with the provisions of an eligible financial contract: (a) the termination of the contract; (b) the netting or setting off or compensation of obligations between a company in respect of which winding-up proceedings under this Act are commenced and another party to the contract; and (c) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (1.01) If the net termination values determined in accordance with the eligible financial contract referred to in subsection (1) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim provable against the company in respect of the net termination values. 1996, c. 6, s. 142 (2) The definition “eligible financial contract” in subsection 22.1(2) of the Act is replaced by the following: 118 “eligible financial contract” « contrat financier admissible » C. 29 Budget Implem “eligible financial contract” means an agreement of a prescribed kind; (3) Subsection 22.1(2) of the Act is amended by adding the following in alphabetical order: “financial collateral” « garantie financière » “financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement: (a) cash or cash equivalents, including negotiable instruments and demand deposits, (b) securities, a securities account, a securities entitlement or a right to acquire securities, or (c) a futures agreement or a futures account; “title transfer credit support agreement” « accord de transfert de titres pour obtention de crédit » “title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract; 1996, c. 6, s. 142 (4) Subsection 22.1(3) of the Act is replaced by the following: Regulations (3) The Governor in Council may make regulations prescribing kinds of agreements for the purposes of the definition “eligible financial contract” in subsection (2). 114. Section 100 of the Act is amended by adding the following after subsection (2): Exception (3) The presumption referred to in subsection (2) does not apply to a sale, deposit, pledge or transfer of financial collateral made in accordance with the provisions of an eligible financial contract. 115. Section 101 of the Act is amended by adding the following after subsection (2): 2006-2007 Exception Exécution du b (3) Subsection (1) does not apply to a payment made in connection with financial collateral in accordance with the provisions of an eligible financial contract. 116. The Act is amended by adding the following after section 101: Definitions 101.1 In subsections 100(3) and 101(3), “eligible financial contract” and “financial collateral” have the same meanings as in subsection 22.1(2). TRANSITIONAL PROVISIONS Bankruptcy and Insolvency Act 117. An amendment to the Bankruptcy and Insolvency Act made by any of sections 91, 92, 94 to 96 and 99 to 101 of this Act applies only to a person who, on or after the day on which the amendment comes into force, is described in one of the following paragraphs: (a) the person becomes bankrupt; (b) the person files a notice of intention; (c) the person files a proposal without having filed a notice of intention; or (d) a proposal is made in respect of the person without the person having filed a notice of intention. Canada Deposit Insurance Corporation Act 118. The amendment to the Canada Deposit Insurance Corporation Act made by section 103 of this Act applies only to a federal member institution in respect of which an order under subsection 39.13(1) of that Act is made on or after the day on which the amendment comes into force. Companies’ Creditors Arrangement Act 119. An amendment to the Companies’ Creditors Arrangement Act made by section 104 or 106 of this Act applies only to a debtor company in respect of which proceedings under that Act are commenced on or after the day on which the amendment comes into force. Payment Clearing and Settlement Act 120. An amendment to the Payment Clearing and Settlement Act made by any of sections 110 to 112 of this Act applies only C. 29 Budget Implem to a party to a netting agreement who, on or after the day on which the amendment comes into force, (a) is a person described in any of paragraphs 117(a) to (d); (b) is a person described in section 118; (c) is a person in respect of whom proceedings have been commenced under the Companies’ Creditors Arrangement Act; (d) is a person in respect of whom winding up proceedings have been commenced under the Winding-up and Restructuring Act; or (e) is a person subject to an order of a court made pursuant to an administration of a reorganization, arrangement or receivership involving insolvency. Winding Up and Restructuring Act 121. An amendment to the Winding-up and Restructuring Act made by any of sections 113 to 116 of this Act applies only to companies in respect of which winding up proceedings under that Act are commenced on or after the day on which the amendment comes into force. COORDINATING AMENDMENTS 2005, c. 47 122. (1) In this section, “other Act” means An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts, being chapter 47 of the Statutes of Canada, 2005. (2) If subsection 124(1) of the other Act comes into force before section 104 of this Act, section 104 of this Act is replaced by the following: 104. (1) Subsection 2(1) of the Companies’ Creditors Arrangement Act is amended by adding the following in alphabetical order: Exécution du b 2006-2007 “eligible financial contract” « contrat financier admissible » “eligible financial contract” means (a) a currency or interest rate swap agreement, (b) a basis swap agreement, (c) a spot, future, forward or other foreign exchange agreement, (d) a cap, collar or floor transaction, (e) a commodity swap, (f) a forward rate agreement, (g) a repurchase or reverse repurchase agreement, (h) a spot, future, forward or other commodity contract, (i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities, (j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i), (k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j), (l) any master agreement in respect of a master agreement referred to in paragraph (k), (m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or (n) any agreement of a kind prescribed; “financial collateral” « garantie financière » “financial collateral” means any of the following that is subject to an interest, or in the province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement: (a) cash or cash equivalents, including negotiable instruments and demand deposits, (b) securities, a securities account, a securities entitlement or a right to acquire securities, or (c) a futures agreement or a futures account; C. 29 “net termination value” « valeurs nettes dues à la date de résiliation » “net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions; “title transfer credit support agreement” « accord de transfert de titres pour obtention de crédit » “title transfer credit support agreement” means an agreement under which a debtor company has provided title to property for the purpose of securing the payment or performance of an obligation of the debtor company in respect of an eligible financial contract; Budget Implem (2) The definition “eligible financial contract” in subsection 2(1) of the Act, as enacted by subsection (1), is replaced by the following: “eligible financial contract” « contrat financier admissible » “eligible financial contract” means an agreement of a prescribed kind; (3) If subsection 124(1) of the other Act comes into force on the same day as section 104 of this Act, section 104 of this Act is deemed to have come into force before subsection 124(1) of the other Act. (4) If section 128 of the other Act comes into force before section 106 of this Act, or if those provisions come into force on the same day, section 106 of this Act is repealed and is deemed never to have had effect. COMING INTO FORCE Order in council 123. Subsections 91(2), 103(2), 104(2) and 113(2) come into force on a day or days to be fixed by order of the Governor in Council. Exécution du b 2006-2007 PART 10 PAYMENTS TO PROVINCES AND TERRITORIES PAYMENT TO BRITISH COLUMBIA Maximum payment of $30,000,000 124. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, a sum not exceeding thirty million dollars to the Province of British Columbia to promote fair and equitable economic development, in an environmentally sustainable and ecologically integrated manner, of First Nations in the Spirit Bear Rainforest area of British Columbia and the Queen Charlotte Islands of British Columbia. CLEAN AIR AND CLIMATE CHANGE TRUST FUND Maximum payment of $1,519,000,000 125. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding one billion, five hundred and nineteen million dollars, to a trust established to provide provinces and territories with funding to support provincial and territorial projects that will result in reductions in greenhouse gas emissions and air pollutants. Territories may also use those funds to adapt to a changing climate. Provincial or territorial share (2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1). Payments out of C.R.F. (3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate. TRANSITIONAL PAYMENTS Maximum payment of $614,100,000 126. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding six hundred and fourteen million, one hundred thousand dollars, C. 29 Budget Implem to a trust established to provide the Province of Ontario with funding for post-secondary education and training and the Provinces of Manitoba and Saskatchewan with funding for training. Provincial share (2) The amount that may be provided to a province under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1) and allocated as follows: (a) a sum not exceeding five hundred and seventy-four million dollars to the Province of Ontario; (b) a sum not exceeding twenty-one million, seven hundred thousand dollars to the Province of Manitoba; and (c) a sum not exceeding eighteen million, four hundred thousand dollars to the Province of Saskatchewan. Payments out of C.R.F. (3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate. HUMAN PAPILLOMAVIRUS IMMUNIZATION Maximum payment of $300,000,000 127. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding three hundred million dollars, to a trust established to provide the provinces and territories with funding in support of human papillomavirus immunization. Provincial or territorial share (2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1). Payments out of C.R.F. (3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate. Exécution du b 2006-2007 PATIENT WAIT TIMES GUARANTEE Maximum payment of $612,000,000 128. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding six hundred and twelve million dollars, to a trust established to provide provinces and territories with funding in support of a patient wait times guarantee. Provincial or territorial share (2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1). Payments out of C.R.F. (3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate. CHILD CARE SPACES Maximum payment of $250,000,000 129. (1) The Minister of Finance may, for the fiscal year beginning on April 1, 2007, make direct payments, in an aggregate amount not exceeding two hundred and fifty million dollars to the provinces and territories for the purpose of supporting the creation of child care spaces. Provincial or territorial share (2) The amount that may be paid to a province or territory for the fiscal year referred to in subsection (1) is the amount determined by multiplying the amount set out in that subsection by the quotient obtained by dividing (a) the population of the province or territory for the fiscal year by (b) the total of the population of all provinces and territories for the fiscal year. Payments out of C.R.F. (3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate. C. 29 Budget Implem PAYMENT TO YUKON Payment of $3,500,000 130. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of three million, five hundred thousand dollars to Yukon. PAYMENT TO NORTHWEST TERRITORIES Payment of $54,400,000 131. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of fifty-four million, four hundred thousand dollars to the Northwest Territories. PART 11 PAYMENTS TO CERTAIN ENTITIES NATURE CONSERVANCY OF CANADA Maximum payment of $225,000,000 132. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of the Environment, a sum not exceeding two hundred and twenty-five million dollars to the Nature Conservancy of Canada for its use. CANADA HEALTH INFOWAY INC. Maximum payment of $400,000,000 133. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding four hundred million dollars to Canada Health Infoway Inc. for its use. CANARIE INC. Maximum payment of $96,000,000 134. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding ninety-six million dollars to CANARIE Inc. for its use. GENOME CANADA Maximum payment of $100,000,000 135. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding one hundred million dollars to Genome Canada for its use. Exécution du b 2006-2007 AID TO AFGHANISTAN Afghanistan Reconstruction Trust Fund — $90,000,000 136. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of International Cooperation, a sum not exceeding ninety million dollars to the World Bank for the Afghanistan Reconstruction Trust Fund in respect of development assistance for Afghanistan. UN Mine Action Service — $20,000,000 137. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of International Cooperation, a sum not exceeding twenty million dollars to the United Nations for use in UN Mine Action Service activities in Afghanistan. UN Office on Drugs and Crime — $13,000,000 138. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Foreign Affairs, a sum not exceeding thirteen million dollars to the United Nations Office on Drugs and Crime, in respect of counter-narcotics initiatives for Afghanistan. Counter Narcotics Trust Fund — $2,000,000 139. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Foreign Affairs, a sum not exceeding two million dollars to the United Nations Development Programme for the Counter Narcotics Trust Fund, in respect of counter-narcotics initiatives for Afghanistan. Law and Order Trust Fund for Afghanistan — $10,000,000 140. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Foreign Affairs, a sum not exceeding ten million dollars to the United Nations Development Programme for the Law and Order Trust Fund for Afghanistan, for use consistent with the purposes of that fund. RICK HANSEN MAN IN MOTION FOUNDATION Maximum payment of $30,000,000 141. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding thirty million dollars to the Rick Hansen Man in Motion Foundation for its use. C. 29 Budget Implem THE PERIMETER INSTITUTE FOR THEORETICAL PHYSICS Maximum payment of $50,000,000 142. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding fifty million dollars to The Perimeter Institute for Theoretical Physics for its use. CANADA FOUNDATION FOR SUSTAINABLE DEVELOPMENT TECHNOLOGY Maximum payment of $200,000,000 143. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of the Environment and the Minister of Natural Resources, a sum not exceeding two hundred million dollars to the Canada Foundation for Sustainable Development Technology for its use. PART 12 AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS 1991, c. 46 BANK ACT 2001, c. 9, s. 44; 2006, c. 4, s. 199 144. Section 21 of the Bank Act is replaced by the following: Sunset provision 21. (1) Subject to subsections (2) and (3), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after October 24, 2007. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which banks may continue to carry on business and authorized foreign banks may continue to carry on business in Canada. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, for 180 days after the first day of the first session of the next Parliament. 2006-2007 Exécution du b 2001, c. 9, s. 183; 2006, c. 4, s. 199.1 145. Section 670 of the Act is replaced by the following: Sunset provision 670. (1) Subject to subsections (2) and (3), bank holding companies shall not carry on business after October 24, 2007. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which bank holding companies may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), bank holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 1991, c. 48 COOPERATIVE CREDIT ASSOCIATIONS ACT 2001, c. 9, s. 254; 2006, c. 4, s. 200 146. Section 22 of the Cooperative Credit Associations Act is replaced by the following: Sunset provision 22. (1) Subject to subsections (2) and (3), associations shall not carry on business after October 24, 2007. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which associations may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), associations may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 1991, c. 47 INSURANCE COMPANIES ACT 2001, c. 9, s. 353; 2006, c. 4, s. 201 147. Section 21 of the Insurance Companies Act is replaced by the following: C. 29 Sunset provision 21. (1) Subject to subsections (2) and (3), companies and societies shall not carry on business, and foreign companies shall not carry on business in Canada, after October 24, 2007. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which companies and societies may continue to carry on business and foreign companies may continue to carry on business in Canada. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), companies and societies may continue to carry on business, and foreign companies may continue to carry on business in Canada, for 180 days after the first day of the first session of the next Parliament. 2001, c. 9, s. 465; 2006, c. 4, s. 201.1 148. Section 707 of the Act is replaced by the following: Sunset provision 707. (1) Subject to subsections (2) and (3), insurance holding companies shall not carry on business after October 24, 2007. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which insurance holding companies may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), insurance holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 1991, c. 45 TRUST AND LOAN COMPANIES ACT 2001, c. 9, s. 484; 2006, c. 4, s. 202 Budget Implem 149. Section 20 of the Trust and Loan Companies Act is replaced by the following: 2006-2007 Exécution du b Sunset provision 20. (1) Subject to subsections (2) and (3), companies shall not carry on business after October 24, 2007. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which companies may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament. COORDINATING AMENDMENTS Bill C-37 150. (1) Subsections (2) to (7) apply if Bill C-37, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the law governing financial institutions and to provide for related and consequential matters (the “other Act”), receives royal assent. (2) If section 4 of the other Act comes into force before section 144 of this Act, or if those provisions come into force on the same day, section 144 of this Act is repealed and is deemed never to have had effect. (3) If section 105 of the other Act comes into force before section 145 of this Act, or if those provisions come into force on the same day, section 145 of this Act is repealed and is deemed never to have had effect. (4) If section 138 of the other Act comes into force before section 146 of this Act, or if those provisions come into force on the same day, section 146 of this Act is repealed and is deemed never to have had effect. (5) If section 189 of the other Act comes into force before section 147 of this Act, or if those provisions come into force on the same day, section 147 of this Act is repealed and is deemed never to have had effect. C. 29 Budget Implem (6) If section 310 of the other Act comes into force before section 148 of this Act, or if those provisions come into force on the same day, section 148 of this Act is repealed and is deemed never to have had effect. (7) If section 338 of the other Act comes into force before section 149 of this Act, or if those provisions come into force on the same day, section 149 of this Act is repealed and is deemed never to have had effect. PART 13 1996, c. 16 AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT 151. Section 2 of the Department of Public Works and Government Services Act is amended by adding the following in alphabetical order: “appropriate minister” « ministre compétent » “appropriate minister” has the same meaning as in section 2 of the Financial Administration Act; 152. Section 8 of the Act is replaced by the following: Delegation 8. (1) The Minister may delegate any of the Minister’s powers, duties or functions under this Act to an appropriate minister for any period and under any terms and conditions that the Minister considers suitable. Delegation (2) The Minister may, with respect to a department over which the Minister does not preside but for which the Minister is the appropriate minister, delegate any of the Minister’s powers, duties or functions under this Act, for any period and under any terms and conditions that the Minister considers suitable, to the chief executive of that department. Subdelegation (3) The appropriate minister for a department may, subject to and in accordance with the delegation under subsection (1), subdelegate to the chief executive of that department, for any period and under any terms and conditions that the appropriate minister considers suitable, any of the powers, duties or functions that were delegated to the appropriate minister under that subsection. Exécution du b 2006-2007 Subdelegation Definition of “chief executive” (4) The chief executive of a department may, subject to and in accordance with the delegation under subsection (2) or the subdelegation under subsection (3), subdelegate to any person under his or her jurisdiction, for any period and under any terms and conditions that the chief executive considers suitable, any of the powers, duties or functions that were delegated or subdelegated to him or her under that subsection. (5) In this section, “chief executive” (a) with respect to a department named in Part I of Schedule VI to the Financial Administration Act, means its deputy minister; (b) with respect to a department named in Part II or III of that Schedule, means the person occupying the position set out opposite that name; and (c) with respect to a department that is not named in that Schedule, means the chief executive officer, deputy head or the person who occupies any other similar position, however called, in that department. 153. The Act is amended by adding the following after section 9: Exception 9.1 Section 9 does not apply to a department within the meaning of paragraph (c) of the definition “department” in section 2 of the Financial Administration Act. Exemption 9.2 The Minister may, by order, exempt the following from the application of section 9: (a) a department that is not named in Schedule VI to the Financial Administration Act; and (b) a department over which the Minister does not preside but for which the Minister is the appropriate minister. PART 14 2001, c. 9 AMENDMENT TO THE FINANCIAL CONSUMER AGENCY OF CANADA ACT 154. Section 13 of the Financial Consumer Agency of Canada Act is amended by adding the following after subsection (2): C. 29 Payment for activity (3) If the Commissioner carries on any activity in furtherance of an object described in paragraph 3(2)(d) or (e) on the recommendation of the Minister, the Minister may on terms and conditions approved by the Treasury Board, in any fiscal year, make a payment out of the Consolidated Revenue Fund to the Agency for the purposes of the activity. Budget Implem Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 7 An Act to amend the Hazardous Materials Information Review Act ASSENTED TO 29th MARCH, 2007 BILL S-2 SUMMARY This enactment amends the Hazardous Materials Information Review Act to (a) allow a claimant to make a declaration that information in respect of which an exemption is claimed is confidential business information and that information substantiating the claim is available and will be provided on request; (b) allow a claimant to give an undertaking to the Hazardous Materials Information Review Commission to bring a material safety data sheet or a label into compliance with the provisions of the Hazardous Products Act or of the Canada Labour Code; and (c) allow the limited participation of the Commission before an appeal board. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 7 An Act to amend the Hazardous Materials Information Review Act [Assented to 29th March, 2007] R.S., c. 24 (3rd Supp.), Part III Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Subsection 11(4) of the Hazardous Materials Information Review Act is replaced by the following: Contents of claim (4) A claim for exemption shall be accompanied by the material safety data sheet or label to which the claim relates and shall contain (a) the information in respect of which the exemption is claimed; (b) a declaration stating that the claimant believes that the information in respect of which the exemption is claimed is confidential business information that meets the criteria prescribed under paragraph 48(1)(a) and that information substantiating the claim — as specified in the regulations — is in the possession of, or is available to, the claimant and will be provided on request; (c) a summary of the information substantiating the claim; and (d) any other prescribed information. 2. Section 13 of the Act is amended by adding the following after subsection (1): C. 7 Substantiating information (1.1) The screening officer may, for the purpose of determining the matter referred to in paragraph (1)(a), ask the claimant to provide the information substantiating the claim for exemption in the following circumstances: Hazardous Materials (a) an affected party has made written representations with respect to the claim; (b) the information contained in the summary referred to in paragraph 11(4)(c) is to be verified; or (c) any other prescribed circumstances. 3. The Act is amended by adding the following after section 16: Undertaking 16.1 (1) If a screening officer determines under paragraph 13(1)(b) that a material safety data sheet or label to which a claim for exemption relates does not comply with the provisions of the Hazardous Products Act or the provisions of the Canada Labour Code, as the case may be, the screening officer may send an undertaking to the claimant setting out the measures that are required to be taken for the purpose of ensuring compliance with those provisions, except to the extent that they would require the claimant to disclose the information in respect of which the claim is made, in the manner and within the period specified in the undertaking. Agreement by claimant (2) If the claimant agrees with the measures set out in the undertaking, the claimant shall sign the undertaking and return it to the screening officer together with the amended material safety data sheet or label. Notice (3) On receipt of the signed undertaking, if the screening officer is satisfied, after reviewing the material safety data sheet or label, that the claimant has taken the measures set out in the undertaking in the manner and within the period specified in it, the screening officer shall send a notice to the claimant confirming their compliance with the undertaking. Deemed compliance (4) A claimant to whom the notice is sent is, for the purposes of the provisions of the Hazardous Products Act or the provisions of the Canada Labour Code, as the case may be, deemed to have complied with those provisions. 2006-2007 Contrôle des renseignements re 4. Subsection 17(1) of the Act is replaced by the following: Order re material safety data sheet 17. (1) If the screening officer does not receive the signed undertaking, or is not satisfied that the claimant has taken the measures set out in the undertaking in the manner and within the period specified in it, the screening officer shall order the claimant to comply with the provisions of the Hazardous Products Act or the provisions of the Canada Labour Code, as the case may be, except to the extent that they would require the claimant to disclose the information in respect of which the claim is made, in the manner and within the period specified in the order. 5. Subsections 18(1) and (2) of the Act are replaced by the following: Notice 18. (1) The Chief Screening Officer shall cause to be published in the Canada Gazette (a) in respect of each decision made under section 15 and each order made under section 16 or 17 (i) a notice containing prescribed information, and (ii) a notice containing any information that, in the opinion of a screening officer, should have been disclosed on any material safety data sheet or label reviewed by the screening officer; and (b) in respect of each undertaking for which a notice has been sent under subsection 16.1(3) (i) a notice containing prescribed information, and (ii) a notice containing any information that has been disclosed on any material safety data sheet or label in compliance with the undertaking. Copies (2) The Chief Screening Officer shall make copies of any notice published in the Canada Gazette under subsection (1) available to any person on request in writing. 6. Subsection 20(1) of the Act is replaced by the following: C. 7 Right of appeal 20. (1) A claimant or an affected party may appeal any decision or order made under section 15, 16 or 17, and an affected party may also appeal any undertaking in respect of which a notice has been published in the Canada Gazette. Procedure on appeal (1.1) An appeal shall be brought by filing with the Chief Appeals Officer, within the prescribed period, a statement of appeal setting out the grounds on which the appeal is made and any submissions in support of the appeal. 2001, c. 34, s. 51(F) 7. (1) Subparagraph 23(1)(b)(i) of the Act is replaced by the following: Hazardous Materials (i) the record of the screening officer in respect of the decision, order or undertaking being appealed, (2) Paragraph 23(1)(b) of the Act is amended by striking out the word “and” at the end of subparagraph (ii) and by adding the following after subparagraph (iii): (iv) any clarifications made by the Commission, in accordance with the regulations, in respect of the record referred to in subparagraph (i); and (3) The portion of subsection 23(2) of the Act before paragraph (a) is replaced by the following: Disposition of an appeal of a decision or order (2) An appeal board may dispose of an appeal of a decision or an order by (4) Section 23 of the Act is amended by adding the following after subsection (2): Disposition of appeal of an undertaking (3) An appeal board may dispose of an appeal of an undertaking by (a) dismissing the appeal; or (b) allowing the appeal and making any order that the appeal board considers appropriate. No retrospective effect (4) No order made under paragraph (3)(b) shall have retrospective effect. 2006-2007 Compliance with order Contrôle des renseignements re (5) A claimant to whom an order under paragraph (3)(b) is directed shall comply with the order in the manner and within the period specified in the order. 8. Subsection 48(1) of the Act is amended by adding the following after paragraph (b): (b.1) specifying the information that is required for the purpose of substantiating a claim for an exemption; (b.2) respecting the participation of the Commission in an appeal heard before an appeal board; Coming into force 9. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 6 An Act to amend the law governing financial institutions and to provide for related and consequential matters ASSENTED TO 29th MARCH, 2007 BILL C-37 SUMMARY This enactment amends a number of Acts governing financial institutions. It also amends legislation related to the regulation of financial institutions. Notable among the amendments are the following: (a) amendments to the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act, and the Trust and Loan Companies Act aimed at achieving three key objectives: (i) enhancing the interests of consumers, (ii) increasing legislative and regulatory efficiency, and (iii) adapting those Acts to new developments; (b) amendments to the Bills of Exchange Act to provide for the introduction of electronic cheque imaging; and (c) technical amendments to the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act, the Trust and Loan Companies Act, the Bank of Canada Act, the Bills of Exchange Act, the Canada Business Corporations Act, the Canada Deposit Insurance Corporation Act, the Canadian Payments Act, the Financial Consumer Agency of Canada Act, the Green Shield Canada Act, the Investment Canada Act, the National Housing Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO AMEND THE LAW GOVERNING FINANCIAL INSTITUTIONS AND TO PROVIDE FOR RELATED AND CONSEQUENTIAL MATTERS PART 1 BANK ACT 1-134. Amendments PART 2 COOPERATIVE CREDIT ASSOCIATIONS ACT 135-185. Amendments PART 3 INSURANCE COMPANIES ACT 186-336. Amendments PART 4 TRUST AND LOAN COMPANIES ACT 337-385. Amendments PART 5 AMENDMENTS TO OTHER ACTS 386-391. An Act to amend certain Acts in relation to financial institutions 392-397. Bank of Canada Act 398. Bills of Exchange Act 399-401. Canada Business Corporations Act 402-421. Canada Deposit Insurance Corporation Act 422-434. Canadian Payments Act 435-437. Financial Consumer Agency of Canada Act 438. Green Shield Canada Act 439. Investment Canada Act 440. National Housing Act 441-442. Payment Clearing and Settlement Act 443-449. Winding-up and Restructuring Act i PART 6 COORDINATING AMENDMENTS AND COMING INTO FORCE COORDINATING AMENDMENTS 450-451. 2005, c. 54 COMING INTO FORCE 452. Order in council 55-56 ELIZABETH II —————— CHAPTER 6 An Act to amend the law governing financial institutions and to provide for related and consequential matters [Assented to 29th March, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: PART 1 1991, c. 46 AMENDMENTS TO THE BANK ACT 1999, c. 28, s. 1(5) 1. The definitions “authorized foreign bank” and “Canadian entity” in section 2 of the Bank Act are replaced by the following: “authorized foreign bank” « banque étrangère autorisée » “Canadian entity” « entité canadienne » “authorized foreign bank” means a foreign bank that is the subject of an order under subsection 524(1); “Canadian entity” means an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province, or otherwise formed in Canada, and that carries on business in Canada; 2. Section 9 of the Act is amended by adding the following after subsection (4): Contravention (5) A person contravenes a provision of Part VII or Division 7 of Part XV if the person agrees to act jointly or in concert with one or more other persons in such a manner that a deemed single person contravenes the provision. C. 6 Financial I 3. Subsection 14(2) of the Act is amended by striking out the word “or” at the end of paragraph (f), by adding the word “or” at the end of paragraph (g) and by adding the following after paragraph (g): (h) a bank is continued, or amalgamated and continued, as a body corporate to which another Act of Parliament applies, 2001, c. 9, s. 44; 2006, c. 4, s. 199 4. Section 21 of the Act is replaced by the following: Sunset provision 21. (1) Subject to subsections (2) and (3), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after the day that is the fifth anniversary of the day on which this section comes into force. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which banks may continue to carry on business and authorized foreign banks may continue to carry on business in Canada. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the threemonth period before that anniversary or on any day within an extension under subsection (2), banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, for 180 days after the first day of the first session of the next Parliament. 5. Paragraph 39(1)(f) of the Act is replaced by the following: (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2001, c. 9, s. 50 Transferring to other federal Acts 6. Sections 39.1 and 39.2 of the Act are replaced by the following: 39.1 (1) A bank may (a) apply, with the approval in writing of the Minister, under the Canada Business Corporations Act for a certificate of continuance as a corporation under that Act; 2006-2007 Institutions (b) apply, with the approval in writing of the Minister, under the Canada Cooperatives Act for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act; (c) apply, under the Cooperative Credit Associations Act, for letters patent continuing the bank as an association under that Act, or amalgamating and continuing the bank as an association under that Act; (d) apply, under the Insurance Companies Act, for letters patent continuing the bank as a company (other than a mutual company) or an insurance holding company under that Act, or amalgamating and continuing the bank as a company (other than a mutual company) or an insurance holding company under that Act; or (e) apply, under the Trust and Loan Companies Act, for letters patent continuing the bank as a company under that Act, or amalgamating and continuing the bank as a company under that Act. Conditions for approval (2) The approval referred to in paragraph (1)(a) or (b) may be given only if the Minister is satisfied that (a) the bank has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the bank is situated, a notice of its intention to apply for the approval; (b) the application has been authorized by a special resolution; and (c) the bank does not hold deposits, other than deposits that are made by a person who controls the bank or by a person who has a significant interest in a class of shares of the bank and that are not insured by the Canada Deposit Insurance Corporation. Withdrawing application (3) If a special resolution authorizing the application for the certificate or letters patent so states, the directors of the bank may, without further approval of the shareholders, withdraw the application before it is acted on. C. 6 Restriction on other transfers (4) A bank may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1). Act ceases to apply 39.2 If a bank applies for a certificate or letters patent referred to in section 39.1 in accordance with that section and the certificate is given or the letters patent are issued, this Act ceases to apply to the bank as of the day the certificate or the letters patent take effect. 2001, c. 9, s. 52 7. Section 41 of the Act is replaced by the following: Affiliated bank 41. Despite section 40, a bank that is affiliated with another entity may, with the consent of that entity, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity. 2005, c. 54, s. 8(2) 8. Subsection 62(5) of the English version of the Act is replaced by the following: Material to Superintendent (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. Financial I 9. The Act is amended by adding the following after section 72: Exception — conditions before acquisition 72.1 (1) A bank may permit any of its subsidiaries to acquire shares of the bank through the issuance of those shares by the bank to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. Conditions after acquisition (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. 2006-2007 Non-compliance with conditions Institutions (3) If a bank permits any of its subsidiaries to acquire shares of the bank under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 16 and subsection 66(2), the bank must comply with the prescribed requirements. 10. Section 75 of the Act is amended by adding the following after subsection (4): Exception (4.1) Subsection (4) does not apply if (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 308(4); and (b) there is to be no return of capital to shareholders as a result of the reduction. 2001, c. 9, s. 61(1) 11. (1) Subsections 79(1) and (2) of the Act are replaced by the following: Declaration of dividend 79. (1) The directors of a bank may declare and a bank may pay a dividend by issuing fully paid shares of the bank or options or rights to acquire fully paid shares of the bank and, subject to subsection (4), the directors of a bank may declare and a bank may pay a dividend in money or property, and if a dividend is to be paid in money, the dividend may be paid in a currency other than the currency of Canada. Notice to Superintendent (2) The directors of a bank shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 2001, c. 9, s. 61(2) (2) Subsection 79(5) of the Act is repealed. 2001, c. 9, s. 69 12. Subsection 159(2) of the Act is replaced by the following: Residency requirement (2) At least one half of the directors of a bank that is a subsidiary of a foreign bank and a majority of the directors of any other bank must be, at the time of each director’s election or appointment, resident Canadians. C. 6 2001, c. 9, s. 82(2) 13. Subsection 217(3) of the Act is replaced by the following: Effective date of by-law (3) A by-law, or an amendment to or a repeal of a by-law, made under subsection (1) is not effective until it is confirmed or confirmed as amended by the shareholders under subsection (2) and, in the case of a by-law respecting a change to the name of the bank, approved by the Superintendent. Letters patent (4) If the name of a bank or the province in Canada in which the head office of the bank is situated is changed under this section, the Superintendent may issue letters patent to amend the bank’s incorporating instrument accordingly. Effect of letters patent (5) Letters patent issued under subsection (4) become effective on the day stated in the letters patent. Financial I 14. Section 225 of the Act is replaced by the following: Approval of agreement by Superintendent 225. An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 226(4) by the holders of any class or series of shares of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. 15. Paragraph 231(1)(f) of the Act is replaced by the following: (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 16. Section 233 of the Act is replaced by the following: Agreement to Superintendent 233. A sale agreement must be sent to the Superintendent before it is submitted to shareholders of the selling bank under subsection 234(1). 2005, c. 54, s. 52(1) 17. Section 245 of the Act is replaced by the following: 2006-2007 Institutions Requirement to maintain copies and process information in Canada 245. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a bank to maintain, in another country, copies of records referred to in section 238 or of its central securities register or for a bank to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a bank to do any of those activities in another country — the Superintendent shall direct the bank to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. Bank to comply (2) A bank shall without delay comply with any direction issued under subsection (1). 1991, c. 46, s. 577 18. Paragraph 300(a) of the Act is replaced by the following: (a) a trust company pursuant to subsection 57(2) of the Trust and Loan Companies Act; or 2001, c. 9, s. 98 19. (1) The portion of subsection 373(1) of the French version of the Act before paragraph (a) is replaced by the following: Restrictions à l’acquisition 373. (1) Sous réserve des autres dispositions de la présente partie, il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une banque ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas : 2001, c. 9, s. 98 (2) Subsection 373(2) of the Act is replaced by the following: Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of a bank, the entity is deemed to be acquiring a significant interest in that class of shares of the bank through an acquisition for which the approval of the Minister is required under subsection (1). C. 6 2001, c. 9, s. 98 20. Sections 377.1 and 378 of the Act are replaced by the following: Restriction on control 377.1 (1) No person shall, without the approval of the Minister, acquire control, within the meaning of paragraph 3(1)(d), of a bank with equity of less than eight billion dollars. Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a bank with equity of less than eight billion dollars, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the bank through an acquisition for which the approval of the Minister is required under subsection (1). Former Schedule I banks with equity of less than five billion dollars 378. (1) A bank that was named in Schedule I as that Schedule read immediately before October 24, 2001 and that had equity of less than five billion dollars on that day is deemed, for the purposes of sections 138, 156.09, 374, 376, 376.01, 376.1, 376.2, 377, 380 and 382, subsection 383(2), section 385 and subsection 396(2), to be a bank with equity of eight billion dollars or more. Application — amalgamation (2) If a bank to which subsection (1) applies is an applicant for letters patent of amalgamation and the letters patent are issued in respect of the application, the amalgamated bank is deemed to be a bank to which that subsection applies. Non-application of subsection (1) (3) Subsection (1) ceases to apply to a bank with equity of less than eight billion dollars if the Minister specifies that it no longer applies to the bank. 2001, c. 9, s. 98 21. Subsection 398(1) of the French version of the Act is replaced by the following: Accusé de réception 398. (1) Lorsque, à son avis, la demande faite dans le cadre de la présente partie est complète, le surintendant la transmet sans délai au ministre et adresse au demandeur un accusé de réception précisant la date où elle a été reçue. 1991, c. 46, s. 579 22. Section 402.1 of the Act is replaced by the following: Financial I Institutions 2006-2007 Permission to become another body corporate 402.1 If subsection 402(1) applies, the Minister may, on application by the bank, permit the bank to apply to be continued as a body corporate under any Act of Parliament referred to in subsection 39.1(1) instead of, or in addition to, issuing an order under subsection 402(1). 23. (1) Subsection 413(1) of the Act is amended by striking out the word “or” at the end of paragraph (a), by adding the word “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) the order approving the commencement and carrying on of business by the bank authorizes it to accept deposits solely in accordance with subsection (3). 1997, c. 15, s. 43 (2) Subsection 413(3) of the Act is replaced by the following: Deposits that fall below $150,000 (3) A bank referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the bank receives the authorization referred to in that paragraph, A/B ≤ 0.01 where A is the sum of all amounts each of which is the sum of all the deposits held by the bank at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and B is the sum of all amounts each of which is the sum of all deposits held by the bank at the end of a day in those preceding 30 days and payable in Canada. 1997, c. 15, s. 43; 2001, c. 9, s. 103(1) 24. Subsections 413.1(1) and (2) of the Act are replaced by the following: Notice before opening account or providing prescribed product 413.1 (1) Before a bank referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada a prescribed product that relates to a deposit, the bank shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product C. 6 Financial I (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and (b) any other information that may be prescribed. Other notice (2) A bank referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made, (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the bank are not insured by the Canada Deposit Insurance Corporation; and (b) include in its advertisements notices to inform the public that deposits with the bank are not insured by the Canada Deposit Insurance Corporation. 2001, c. 9, s. 104 25. (1) Subsection 413.2(1) of the Act is replaced by the following: Deposits less than $150,000 413.2 (1) Subject to the regulations, a bank referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. 2001, c. 9, s. 104 (2) Subsection 413.2(2) of the French version of the Act is replaced by the following: Définition de « dépôt » (2) Pour l’application du présent article, « dépôt » s’entend au sens du paragraphe 413(5). 2001, c. 9, s. 104 26. (1) Subsection 413.3(1) of the Act is replaced by the following: Shared premises 413.3 (1) Subject to the regulations, no bank referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, 2006-2007 Institutions within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank. 2001, c. 9, s. 104 (2) Subsections 413.3(3) and (4) of the Act are replaced by the following: Adjacent premises (3) Subject to the regulations, no bank referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank, unless the bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution. Regulations (4) The Governor in Council may make regulations (a) respecting the circumstances in which, and the conditions under which, a bank referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and (b) respecting the circumstances in which, and the conditions under which, a bank referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3). 27. Subsection 418(1) of the Act is replaced by the following: Restriction on residential mortgages 418. (1) A bank shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 1993, c. 28, s. 78 (Sch. III, s. 5); 2002, c. 7, s. 82(E) 28. (1) Subsections 427(4) to (6) of the Act are replaced by the following: C. 6 Notice of intention (4) Subject to the regulations, the following provisions apply where security on property is given to a bank under this section: Financial I (a) the rights and powers of the bank in respect of property covered by the security are void as against creditors of the person giving the security and as against subsequent purchasers or mortgagees in good faith of the property covered by the security unless a notice of intention was provided to the bank by the person giving the security and registered by the bank in the system of registration not more than three years immediately before the security was given; (b) the registration of a notice of intention may be cancelled by the registration of a certificate of release by the bank; and (c) any person may obtain information from the system of registration for the purpose of ascertaining whether a notice of intention or a certificate of release has been registered. (2) Section 427 of the Act is amended by adding the following after subsection (8): Regulations (9) The Governor in Council may make regulations (a) establishing a system of registration for the purpose of this section; (b) respecting the practice and procedure for the operation of the system of registration, including the registration of notices of intention and certificates of release and the obtaining of information from the system of registration; (c) respecting the form and content of notices of intention and certificates of release; (d) requiring the payment of fees relating to the system of registration, including fees to obtain information from the system of registration, and prescribing the amounts of those fees or the manner of calculating them; and (e) respecting any other matter necessary for the operation of the system of registration. Institutions 2006-2007 Transitional (10) Notices of intention and certificates of release registered in the system of registration as it existed immediately before the establishment of a system of registration under regulations made under paragraph (9)(a) are deemed to be registered in that system. 1999, c. 28, s. 23 29. Subsection 438(2) of the Act is replaced by the following: Provision of information (2) A bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the bank: (a) in the case of a deposit, (i) the name of the depositor in whose name the deposit is held, (ii) the recorded address of the depositor, (iii) the outstanding amount of the deposit, and (iv) the branch of the bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and (b) in the case of an instrument, (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted, (ii) the recorded address of that person, (iii) the name of the payee of the instrument, (iv) the amount and date of the instrument, (v) the name of the place where the instrument was payable, and (vi) the branch of the bank at which the instrument was issued, certified or accepted. Copies of signature cards and signing authorities (2.1) A bank shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with C. 6 Financial I respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada. 30. (1) Subsection 439(1) of the Act is replaced by the following: Notice of unpaid amount 439. (1) Subject to subsections (1.1) to (3), a bank shall send to each person to whom a deposit referred to in paragraph 438(1)(a) is payable, and to each person to whom or at whose request an instrument referred to in paragraph 438(1)(b) was issued, certified or accepted, a notice stating that the deposit or instrument remains unpaid. Where notice to be sent (1.1) The notice is to be sent to the person’s recorded address and, if the person has designated an information system for the receipt of electronic documents, to that designated information system. (2) The portion of subsection 439(2) of the Act before paragraph (a) is replaced by the following: When notice to be sent (2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period (3) Section 439 of the Act is amended by adding the following after subsection (2): Notification of transfer to the Bank of Canada (3) The notice to be sent during the month of January next following the end of the first nineyear period determined under paragraphs (2)(a) to (c), as the case may be, must also (a) indicate that in the month of January in the next year the unpaid amounts will be transferred to the Bank of Canada; and (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument. 31. The Act is amended by adding the following after section 448.2: Institutions 2006-2007 Registered Products Disclosure required concerning registered products 448.3 (1) Subject to subsection (2), a bank shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the bank provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service (a) information about all charges applicable to the registered product; (b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product; (c) information about the bank’s procedures relating to complaints about the application of any charge applicable to the registered product; and (d) any other information that may be prescribed. Regulations (2) The Governor in Council may make regulations specifying the circumstances under which a bank need not provide the information. Definition of “registered product” (3) In this section, “registered product” means a product that is defined to be a registered product by the regulations. 32. Section 455 of the Act is amended by adding the following after subsection (2): How procedures to be made available (3) A bank shall make its procedures established under paragraph (1)(a) available (a) in the form of a brochure, at its branches where products or services are offered in Canada; (b) on its websites through which products or services are offered in Canada; and (c) in written format to be sent to any person who requests them. C. 6 Information on contacting Agency (4) A bank shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). Financial I 33. The Act is amended by adding the following before section 458: Charges for prescribed products or services 457. A bank shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court. 34. The Act is amended by adding the following after section 458.1: Regulations respecting the holding of funds 458.2 The Governor in Council may make regulations respecting the maximum period during which a bank may hold funds in respect of specified classes of cheques or other instruments that are deposited into an account at a branch or prescribed point of service in Canada before permitting the customer in whose name the account is kept to access the funds. 2001, c. 9, s. 124(2) 35. Subsection 459.1(4.1) of the Act is replaced by the following: Disclosure (4.1) A bank shall disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada. 2001, c. 9, s. 125 36. Subsection 459.2(2) of the Act is replaced by the following: Pre-closure meeting (2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, 2006-2007 Institutions alternative service delivery by the bank and measures to help the branch’s customers adjust to the closing or cessation of activities. 2001, c. 9, s. 125 37. Subparagraph 459.4(a)(iv) of the Act is replaced by the following: (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 38. Subsection 464(1) of the Act is amended by adding the following in alphabetical order: “closed-end fund” « fonds d’investissement à capital fixe » “closed-end fund” means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are (a) fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction; (b) traded on an exchange or an over-thecounter market; and (c) liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. 39. Section 466 of the Act is amended by adding the following after subsection (5): Application of other provision (6) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a bank may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions set out in that other provision are met. C. 6 Timing of deemed acquisition (7) If a bank decides to exercise its right under subsection (6), the bank is deemed to be acquiring the control or the substantial investment under the other provision. 2001, c. 9, s. 127 40. (1) Paragraph 468(1)(j) of the French version of the Act is replaced by the following: Financial I j) une entité qui est constituée en personne morale ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations bancaires, l’activité d’une société coopérative de crédit, des opérations d’assurance, la prestation de services fiduciaires ou le commerce de valeurs mobilières. 2001, c. 9, s. 127 (2) Paragraph 468(2)(e) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity”, “mutual fund entity” or “real property brokerage entity” in subsection 464(1); and (3) Section 468 of the Act is amended by adding the following after subsection (3): Exception (3.1) Despite paragraph (3)(a), a bank may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and (iii) the provision of investment counselling services and portfolio management services. 2006-2007 2001, c. 9, s. 127 Institutions (4) Paragraph 468(5)(d) of the Act is replaced by the following: (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 410(1)(c); (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 410(1)(c.1); or 2001, c. 9, s. 127 (5) Paragraph 468(7)(a) of the Act is replaced by the following: (a) the bank is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the bank would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b); 2001, c. 9, s. 127 41. Subsections 471(4) and (5) of the Act are replaced by the following: Temporary investment (4) If a bank, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 468(5) if the bank had acquired the control, or acquired or increased the substantial investment, under section 468, the bank must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (5) If a bank, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity C. 6 Financial I for which the approval of the Superintendent would have been required under subsection 468(6) if the bank had acquired the control, or acquired or increased the substantial investment, under section 468, the Superintendent may, on application, permit the bank to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 42. Subsection 472(1) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) all or any of the ownership interests in any entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates. 43. (1) Section 482 of the Act is amended by adding the following after subsection (1): Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. 2001, c. 9, s. 127 (2) The portion of subsection 482(2) of the Act before paragraph (a) is replaced by the following: (2) Subsection (1) does not apply in respect Exception of 2001, c. 9, s. 127 (3) Subsection 482(2) of the Act is amended by striking out the word “or” at the end of paragraph (e) and by replacing paragraph (f) with the following: (f) assets acquired or transferred under a transaction or series of transactions by the bank with another financial institution as a result of the bank’s participation in one or more syndicated loans with that financial institution; 2006-2007 Institutions (g) assets purchased or sold under a sale agreement that is approved by the Minister under section 236; (h) shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 468(5) is required or the approval of the Superintendent under subsection 468(6) is required; (i) assets that are acquired or transferred under a transaction that has been approved by the Minister under subsection 678(1) of this Act or subsection 715(1) of the Insurance Companies Act; (j) assets, other than real property, acquired or disposed of under an arrangement that has been approved by the Superintendent under subsection 494(3); or (k) assets acquired or disposed of with the approval of the Superintendent under subsection 494(4). 2001, c. 9, s. 127 (4) Subsection 482(3) of the Act is repealed. 2001, c. 9, s. 127 (5) Paragraph 482(4)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the bank prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the bank if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 308(4), immediately before the transfer. 2001, c. 9, s. 127 (6) Subsection 482(6) of the Act is replaced by the following: Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has transferred during the 12month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the bank prepared before the transfer of the asset or, if the C. 6 Financial I value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the bank if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 308(4), immediately before the transfer of the asset. 44. Section 488 of the Act is amended by adding the following after subsection (3): Security of a related party (4) For the purposes of this Part, “security” of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time. 45. Section 494 of the Act is amended by adding the following after subsection (5): Approval under section 236 (6) A bank may acquire any assets from, or dispose of any assets to, a related party of the bank under a sale agreement that is approved by the Minister under section 236. 1997, c. 15, c. 70 46. Subsection 495(3) of the Act is replaced by the following: Exception (3) Despite subsection 489(2), a bank is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by an entity that is controlled by the bank and the business of which is limited to the activity referred to in paragraph 468(2)(c) and the transaction is on terms and conditions at least as favourable to the bank as market terms and conditions, as defined in subsection 501(2). 2001, c. 9, s. 129 47. (1) The description of B in subsection 495.3(1) of the Act is replaced by the following: B is the total value of all assets that the bank directly or indirectly acquired from, or directly or indirectly transferred to, that related party in the 12 months ending immediately before the acquisition or trans2006-2007 Institutions fer, other than assets acquired by or transferred to the bank under transactions permitted by section 490; and 2001, c. 9, s. 129 (2) Paragraph 495.3(3)(a) of the Act is replaced by the following: (a) the bank purchases or sells assets under a sale agreement that is approved by the Minister under section 236; or 2001, c. 9, s. 132 48. (1) The definitions “designated foreign bank”, “designation order” and “exemption order” in subsection 507(1) of the Act are repealed. 2001, c. 9, s. 132 (2) The definition “limited commercial entity” in subsection 507(1) of the Act is replaced by the following: “limited commercial entity” « entité à activités commerciales restreintes » 2001, c. 9, s. 132 “limited commercial entity” means a Canadian entity that a foreign bank or an entity associated with a foreign bank may control in accordance with subsection 522.09(1) or (2), or in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment in accordance with that subsection. (3) Paragraph (e) of the definition “financial services entity” in subsection 507(1) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 464(1); 2001, c. 9, s. 132 (4) Paragraph 507(15)(c) of the Act is replaced by the following: (c) has received the approval of the Minister under paragraph 522.22(1)(f); or 2001, c. 9, s. 132 (5) Paragraph 507(16)(c) of the Act is replaced by the following: (c) has received the approval of the Minister under paragraph 522.22(1)(f); or 2001, c. 9, s. 132 49. Sections 508 to 509.1 of the Act are replaced by the following: 24 Application C. 6 Financial I 508. (1) This Part applies to (a) a foreign bank that (i) is a bank according to the laws of the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business, (ii) engages in the business of providing financial services and employs, to identify or describe its business, a name that includes the word “bank”, “banque”, “banking” or “bancaire”, either alone or in combination with other words, or any word or words in any language other than English or French corresponding generally to any of those words, or (iii) is regulated as a bank or as a deposittaking institution according to the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business; and (b) an entity that is associated with a foreign bank and that is (i) a member of a material banking group, (ii) controlled by a foreign bank described in any of subparagraphs (a)(i) to (iii), or (iii) associated with a foreign bank described in any of subparagraphs (a)(i) to (iii) and that foreign bank or any entity controlled by that foreign bank is (A) engaging in or carrying on business in Canada, other than holding, managing or otherwise dealing with real property, (B) maintaining a branch in Canada, other than an office referred to in section 522, (C) establishing, maintaining or acquiring for use in Canada an automated banking machine, a remote service unit or a similar automated service, or, in Canada, accepting data from such a machine, unit or service other than in circumstances described in section 511 or 512, Institutions 2006-2007 (D) acquiring or holding control of, or a substantial investment in, a Canadian entity, or (E) acquiring or holding any share or ownership interest in a Canadian entity and (I) an entity associated with the foreign bank holds control of, or a substantial investment in, the Canadian entity, or (II) the foreign bank, an entity associated with the foreign bank and one or more other entities associated with the foreign bank would, if they were one person, hold control of, or a substantial investment in, the Canadian entity. Member of a material banking group (2) For the purposes of this section, an entity is a member of a material banking group if either of the following ratios, expressed as a percentage, is equal to or greater than the percentage prescribed for the purpose of this subsection: A/B or C/D where A is the sum of the total assets of all foreign banks described in any of subparagraphs (1)(a)(i) to (iii) with which the entity is associated, other than the total assets of foreign banks described in any of those subparagraphs whose assets are consolidated into the total assets of any foreign bank described in any of those subparagraphs with which the entity is associated; B is (a) if the entity is not controlled by any person, the total assets of the entity, or C. 6 Financial I (b) in any other case, the sum of the total assets of the entity and of all its affiliates, other than entities whose total assets are consolidated into the total assets of an affiliate of the entity; C is the sum of the total revenue of all foreign banks described in any of subparagraphs (1)(a)(i) to (iii) with which the entity is associated, other than the total revenue of foreign banks described in any of those subparagraphs whose revenue is consolidated into the total revenue of any foreign bank described in any of those subparagraphs with which the entity is associated; and D is (a) if the entity is not controlled by any person, the total revenue of the entity, or (b) in any other case, the sum of the total revenue of the entity and of all its affiliates, other than entities whose total revenue is consolidated into the total revenue of an affiliate of the entity. Exemption from material banking group status (3) Despite subsection (2), the Minister may, subject to any terms and conditions that he or she considers appropriate, exempt an entity from being a member of a material banking group if neither of the ratios determined in accordance with that subsection in relation to that entity exceeds the percentage prescribed for the purposes of this subsection. Subsections 507(4) to (7) do not apply (4) Subsections 507(4) to (7) do not apply with respect to the making of any determination relating to control or a substantial investment for the purposes of subparagraph (1)(b)(iii). Definitions (5) The following definitions apply in this section. “total assets” « actif total » “total assets”, in respect of an entity, means the total value of its assets 2006-2007 Institutions (a) as reported on a consolidated basis in its most recently completed financial statements that were prepared in accordance with generally accepted accounting principles in (i) the jurisdiction in which the entity was formed or incorporated, (ii) a jurisdiction in which it carries on business, or (iii) a country or territory that is a WTO Member as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act; or (b) if its most recently completed financial statements were not prepared in the manner described in paragraph (a), as would have been reported on a consolidated basis in its most recently completed financial statements had they been prepared in accordance with generally accepted accounting principles in Canada. “total revenue” « recettes d’exploitation totales » “total revenue”, in respect of an entity, means its total revenue (a) as reported on a consolidated basis in its most recently completed financial statements that were prepared in accordance with generally accepted accounting principles in (i) the jurisdiction in which the entity was formed or incorporated, (ii) a jurisdiction in which it carries on business, or (iii) a country or territory that is a WTO Member as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act; or (b) if its most recently completed financial statements were not prepared in the manner described in paragraph (a), as would have been reported on a consolidated basis in its most recently completed financial statements had they been prepared in accordance with generally accepted accounting principles in Canada. 50. Section 510 of the Act is amended by adding the following after subsection (3): 28 Non-application re federal institutions associated with a foreign bank C. 6 Financial I (4) Subsection (1) does not apply to (a) an entity referred to in any of paragraphs 468(1)(a) to (f) that is an entity associated with a foreign bank; or (b) a Canadian entity that an entity referred to in paragraph (a) controls, or in which such an entity has a substantial investment. Non-application re Canadian entity associated with a foreign bank (5) Paragraphs (1)(a) and (b) do not apply to a Canadian entity that is an entity associated with a foreign bank and that is held or acquired in accordance with this Part. 2001, c. 9, s. 132 51. Section 511 of the Act is replaced by the following: Exception re real property holding and management 510.1 Except as may be prescribed, paragraphs 510(1)(a) and (b) do not apply in respect of the holding or managing of, or otherwise dealing with, real property in Canada by a foreign bank or an entity associated with a foreign bank. Exception re accessing accounts 511. Nothing in paragraphs 510(1)(a) to (c) is to be construed as prohibiting a foreign bank or an entity associated with a foreign bank from providing its customers who are natural persons not ordinarily resident in Canada with access in Canada to their accounts located outside Canada through the use of automated banking machines located in Canada. 2001, c. 9, s. 132 52. Subsection 513(1) of the Act is replaced by the following: Exception re automated services 513. (1) A foreign bank, or an entity associated with a foreign bank, that has received the approval of the Minister under paragraph 522.22(1)(f) may (a) if it is a foreign securities dealer that has also received the approval of the Minister under paragraph 522.22(1)(i), engage in the activities referred to in paragraph 510(1)(c) so long as they relate to its business referred to in paragraph 522.18(1)(b); and (b) if it is a foreign cooperative credit society, engage in the activities referred to in paragraph 510(1)(c) so long as they relate to its business as a cooperative credit society 2006-2007 Institutions engaged in or carried on by it in accordance with provincial laws relating to cooperative credit societies. 2001, c. 9, s. 132 53. Sections 514 to 517 of the Act are replaced by the following: Change of status 516. (1) If an entity becomes a foreign bank, or an entity associated with a foreign bank, to which this Part applies and immediately before it became such a foreign bank or such an entity it maintained a branch or engaged in or carried on business in Canada that is not permitted by or under this Part, it may continue to maintain that branch or engage in or carry on that business for a period of six months after the day on which it became such a foreign bank or such an entity, or for any other shorter period that may be specified or approved by the Minister. Transitional (2) If a foreign bank or an entity associated with a foreign bank was permitted by section 516 or 517, as that section read immediately before the day on which this subsection came into force, to maintain a branch or engage in or carry on business in Canada that is not permitted by or under this Part, it may continue to maintain that branch or engage in or carry on that business for the period during which it could have done so under that section. Change of status 517. (1) If an entity becomes a foreign bank, or an entity associated with a foreign bank, to which this Part applies and immediately before it became such a foreign bank or such an entity it held control of, or a substantial investment in, a Canadian entity and that control or substantial investment is not permitted by or under this Part, it may continue to hold control of, or a substantial investment in, the Canadian entity for a period of six months after the day on which it became such a foreign bank or such an entity, or for any other shorter period that may be specified or approved by the Minister. Transitional (2) If a foreign bank or an entity associated with a foreign bank was permitted by section 516 or 517, as that section read immediately before the day on which this subsection came into force, to hold control of, or a substantial investment in, a Canadian entity and that holding is not permitted by or under this Part, C. 6 Financial I it may continue to hold control of, or the substantial investment in, the Canadian entity for the period during which it could have done so under that section. 2001, c. 9, s. 132 54. Section 517.1 of the English version of the Act is replaced by the following: Restriction 517.1 If an order has been made under subsection 973.1(1) in respect of a foreign bank or an entity associated with a foreign bank and section 516 or 517 applies to the foreign bank or entity, as the case may be, the period under section 516 or 517 may not extend beyond the expiry of the period referred to in the order made under subsection 973.1(1). 2001, c. 9, s. 132 55. Subsection 518(4) of the Act is replaced by the following: Exception (4) Despite subsection (1), a foreign bank, or an entity associated with a foreign bank, that has received the approval of the Minister under paragraph 522.22(1)(f) may guarantee any securities or accept any bills of exchange or depository bills in relation to its business permitted under paragraph 522.18(1)(a) or (b). 2001, c. 9, s. 132 56. Sections 519 and 520 of the Act are replaced by the following: Prohibited activities — nonbank affiliates 519. (1) Despite subsections 510(4) and (5), a non-bank affiliate of a foreign bank shall not, in Canada, (a) engage in the business of accepting deposit liabilities; (b) engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank, other than for (i) an authorized foreign bank, (ii) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society, or Institutions 2006-2007 (iii) an entity referred to in any of paragraphs 468(1)(a), (c), (d) and (h) or a trust or loan corporation referred to in paragraph 468(1)(g); or (c) represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit. Exception (2) Subsection (1) does not apply to a nonbank affiliate that is (a) a trust or loan corporation incorporated by or under an Act of Parliament or of the legislature of a province; (b) a Canadian entity referred to in paragraph 468(1)(d) or (h); or (c) a prescribed entity. Borrowing from the public — non-bank affiliates 519.1 (1) A non-bank affiliate of a foreign bank that carries on as part of its business the provision of financial services may borrow money in Canada from the public only if it discloses that (a) it is not a member institution of the Canada Deposit Insurance Corporation; (b) the liability incurred by it through the borrowing is not a deposit; and (c) it is not regulated as a financial institution in Canada. Manner of disclosure (2) The disclosure must be (a) in a prospectus, information circular or other offering document or a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or (b) in any other manner that may be prescribed. Exception for certain borrowing (3) Subsection (1) does not apply (a) to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or (b) except as may be provided in any regulations, to a borrowing C. 6 Financial I (i) from a person in an amount of $150,000 or more, or (ii) through the issue of instruments in denominations of $150,000 or more. Exception (4) Subsection (1) does not apply to a nonbank affiliate that is (a) a Canadian entity referred to in any of paragraphs 468(1)(b), (c) or (e) to (g); (b) an entity controlled by a bank holding company or an insurance holding company or in which a bank holding company or an insurance holding company has a substantial investment; (c) a financial institution referred to in paragraph (g) of the definition “financial institution” in section 2; or (d) a prescribed entity. Prohibition re deposits 520. (1) A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — shall not, as part of its business in Canada, (a) engage in the business of accepting deposit liabilities; (b) engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank; or (c) represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit. Exception (2) Subsection (1) does not apply to (a) a foreign bank that is an authorized foreign bank; or (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society. Exception (3) Paragraph (1)(b) does not apply to a foreign securities dealer that has received the approval of the Minister under paragraph Institutions 2006-2007 522.22(1)(f) or to a foreign insurance company — or to a prescribed entity — that engages in the business of acting as an agent for the acceptance of deposit liabilities for (a) an authorized foreign bank; (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society; or (c) an entity referred to in paragraph 468(1)(a), (c), (d) or (h) or a trust or loan corporation referred to in paragraph 468(1)(g). Borrowing from the public 520.1 (1) A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — may, as part of its business in Canada, borrow money in Canada from the public only if (a) it maintains a branch in Canada as permitted by section 522.05 or 522.19 or it engages in or carries on business in Canada as permitted by that section; and (b) it discloses that (i) it is not a member institution of the Canada Deposit Insurance Corporation, (ii) the liability incurred through the borrowing is not a deposit, and (iii) it is not regulated as a financial institution in Canada. (2) The disclosure must be Manner of disclosure (a) in a prospectus, information circular or other offering document or a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or (b) in any other manner that may be prescribed. Exception for certain borrowing (3) The disclosure is not required in respect of C. 6 Financial I (a) a borrowing of a prescribed class or type or a borrowing in prescribed circumstances or in a prescribed manner; or (b) except as may be provided in any regulations, a borrowing (i) from a person in an amount of $150,000 or more, or (ii) through the issue of instruments in denominations of $150,000 or more. Exception (4) Subsection (1) does not apply to (a) an authorized foreign bank; (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society; (c) a foreign insurance company; (d) a foreign securities dealer that has received the approval of the Minister under paragraph 522.22(1)(f); or (e) a prescribed entity. 2001, c. 9, s. 132 57. Section 522.02 of the Act is replaced by the following: Name of representative office 522.011 If the name under which a representative office of a foreign bank is or will be identifying itself in Canada is one referred to in any of paragraphs 530(1)(a) to (e), the Superintendent may, as the case may be, (a) refuse to grant the approval referred to in paragraph 522(a); (b) impose restrictions on the use of the name in Canada; or (c) direct the foreign bank to change the name. Cancellation of registration 522.02 The Superintendent may cancel the registration of a representative office of a foreign bank if (a) the foreign bank requests the Superintendent to cancel the registration; (b) the Superintendent is of the opinion that the representative office is not being operated, or the personnel of that office are not Institutions 2006-2007 conducting themselves, in accordance with the rules prescribed for the purposes of paragraph 522(a); or (c) the Superintendent is of the opinion that the foreign bank has failed to comply with a restriction imposed under paragraph 522.011(b) or a direction made under paragraph 522.011(c). 2001, c. 9, s. 132 58. Section 522.07 of the Act is replaced by the following: Investment in a financial institution 522.07 Subject to the requirements relating to approval set out in Division 5, a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity referred to in any of paragraphs 468(1)(a) to (i). 2001, c. 9, s. 132 59. (1) Subsection 522.08(1) of the Act is replaced by the following: Permitted investments 522.08 (1) Subject to subsection (2) and the requirements relating to approval set out in Division 5, a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity, other than an entity referred to in any of paragraphs 468(1)(a) to (i), whose business is limited to one or more of the following: (a) engaging in (i) any financial service activity that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d), or (ii) any other activity that a bank is permitted to engage in under section 410 or 411; (b) acquiring or holding shares of, or ownership interests in, entities that a foreign bank or an entity associated with a foreign bank is permitted to acquire or hold under this Division or Division 8 — other than limited commercial entities, except in prescribed circumstances; C. 6 Financial I (b.1) acquiring or holding shares of, or ownership interests in, entities incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province; (c) engaging in the provision of any services exclusively to any or all of the following, so long as the Canadian entity is also providing those services to the foreign bank or to any member of the foreign bank’s group, namely, (i) the foreign bank, (ii) any member of the foreign bank’s group, (iii) any entity that is primarily engaged in the business of providing financial services, (iv) any entity in which an entity referred to in subparagraph (iii) has a substantial investment and that is (A) an entity in which a bank is permitted to acquire a substantial investment under section 468, (B) an entity in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment under this section and section 522.07, or (C) a prescribed entity, or (v) any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed; (d) engaging in any activity that a bank is permitted to engage in — or in any other prescribed activity —, other than an activity referred to in paragraph (a) or (e), that relates to (i) the promotion, sale, delivery or distribution of a financial product or financial service that is provided by the foreign bank or by any member of the foreign bank’s group, or (ii) if a significant portion of the business of the Canadian entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a 2006-2007 Institutions financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services; (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity”, “mutual fund entity” or “real property brokerage entity” in subsection 464(1); and (f) engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed. 2001, c. 9, s. 132 (2) Paragraph 522.08(2)(d) of the Act is replaced by the following: (d) acquiring or holding control of, or a substantial investment in, another Canadian entity unless (i) in the case of a Canadian entity that is controlled by the foreign bank or the entity associated with a foreign bank, the foreign bank or the entity associated with a foreign bank itself would be permitted to acquire or hold control of, or a substantial investment in, the other Canadian entity under this section or section 522.07 or 522.1 or Division 8, or (ii) in the case of a Canadian entity that is not controlled by the foreign bank or the entity associated with a foreign bank, the foreign bank or the entity associated with a foreign bank itself would be permitted to acquire or hold control of, or a substantial investment in, the other Canadian entity under this section, section 522.07, any of paragraphs 522.1(a) or (c) to (e) or Division 8; or (3) Section 522.08 of the Act is amended by adding the following after subsection (2): Exception (2.1) Despite paragraph (2)(a), a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity C. 6 Financial I has been authorized under the laws of a province to act as a trustee of a trust and the entity is (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and (iii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 132 60. Section 522.09 of the Act is replaced by the following: Investment in a limited commercial entity — foreign bank 522.09 (1) Subject to the requirements relating to approval set out in Division 5, a foreign bank that has a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity if (a) the Canadian entity is not an entity referred to in any of paragraphs 468(1)(a) to (i); (b) the Canadian entity does not engage in more than the prescribed portion of — or if no portion is prescribed, 10 per cent of — the activities referred to in paragraphs 522.08(1)(a) to (f) or in any of paragraphs (a) to (h) of the definition “financial services entity” in subsection 507(1), determined in the prescribed manner; (c) the Canadian entity does not engage in any leasing activities; and (d) in the opinion of the Minister, the Canadian entity engages in or carries on business that is the same as, or similar, related or incidental to, the business outside Canada of the foreign bank or any entity associated with the foreign bank. 2006-2007 Investment in a limited commercial entity — entity associated with a foreign bank Institutions (2) Subject to the requirements relating to approval set out in Division 5, an entity that is associated with a foreign bank and that has a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity if (a) the Canadian entity is not an entity referred to in any of paragraphs 468(1)(a) to (i); (b) the Canadian entity does not engage in more than the prescribed portion of — or if no portion is prescribed, 10 per cent of — the activities referred to in paragraphs 522.08(1)(a) to (f) or in any of paragraphs (a) to (h) of the definition “financial services entity” in subsection 507(1), determined in the prescribed manner; (c) the Canadian entity does not engage in leasing activities; and (d) in the opinion of the Minister, the Canadian entity engages in or carries on business that is the same as, or similar, related or incidental to, the business outside Canada of the entity associated with the foreign bank, the foreign bank or any other entity associated with the foreign bank. Investment in holding body corporate — limited commercial entities (3) A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity whose business is limited to acquiring or holding shares of, or ownership interests in, limited commercial entities. 61. Section 522.1 of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) if it does so in accordance with regulations made under paragraph 522.23(a) concerning specialized financing. 2001, c. 9, s. 132 62. Subsection 522.11(2) of the Act is replaced by the following: C. 6 Indirect investments through federal institutions (2) If a foreign bank or an entity associated with a foreign bank acquires or holds control of, or a substantial investment in, a Canadian entity under subsection (1), none of the requirements relating to approval set out in Division 5 apply in respect of that acquisition or holding. 2001, c. 9, s. 132 63. (1) Subsection 522.14(1) of the Act is replaced by the following: Temporary investments 522.14 (1) Subject to sections 522.21 and 522.211, a foreign bank or an entity associated with a foreign bank may, by way of temporary investment, acquire or hold control of, or a substantial investment in, a Canadian entity if the foreign bank or the entity associated with a foreign bank has a financial establishment in Canada or would, by virtue of the temporary investment, have a financial establishment in Canada. 2001, c. 9, s. 132 (2) Subsection 522.14(4) of the Act is replaced by the following: Exception (4) If a foreign bank, or an entity associated with a foreign bank, acquires or holds, by way of a temporary investment, control of, or a substantial investment in, a Canadian entity for which the approval of the Minister would have been required under any of paragraphs 522.22(1)(a) to (e) if the foreign bank or the entity associated with a foreign bank had acquired the control or the substantial investment under section 522.07 or 522.08, the foreign bank or the entity associated with a foreign bank shall, within 90 days after acquiring control, or after acquiring the substantial investment, Financial I (a) apply to the Minister for approval to retain control of the Canadian entity or to continue to hold the substantial investment in the Canadian entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the Canadian entity or holds a substantial investment in the Canadian entity. 2006-2007 Institutions 2001, c. 9, s. 132 64. Section 522.18 of the Act is replaced by the following: Business of a cooperative credit society and dealing in securities 522.18 (1) Subject to the requirements relating to approval set out in Division 5, a foreign bank — or an entity associated with a foreign bank — (a) that is a foreign cooperative credit society may, in Canada, engage in or carry on the business of a cooperative credit society, so long as that business is engaged in or carried on in accordance with provincial laws relating to cooperative credit societies; or (b) that is a foreign securities dealer may, in Canada, engage in or carry on the business of dealing in securities, or the business of providing investment counselling services and portfolio management services, so long as that business is engaged in or carried on in accordance with provincial laws relating to securities dealing or investment counselling and portfolio management. Business of investment counselling services and portfolio management services (2) Subject to the requirements relating to approval set out in Division 5, an entity associated with a foreign bank incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province, that engages in or carries on, outside Canada, the business of providing investment counselling services and portfolio management services may engage in or carry on that business in Canada so long as that business in Canada is engaged in or carried on in accordance with provincial laws relating to investment counselling and portfolio management. 2001, c. 9, s. 132 65. The portion of subsection 522.19(1) of the Act before paragraph (a) is replaced by the following: Limited commercial branches 522.19 (1) Subject to the requirements relating to approval set out in Division 5, and subject to subsection (2), a foreign bank, or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province and that is associated with a foreign bank, that has a financial C. 6 Financial I establishment in Canada may maintain a branch in Canada or engage in or carry on business in Canada, so long as 2001, c. 9, s. 132 66. The headings before section 522.2 of the Act are replaced by the following: DIVISION 5 APPROVALS Application 2001, c. 9, s. 132 67. Section 522.21 of the Act is replaced by the following: Approval to Have a Financial Establishment in Canada No financial establishment without approval — foreign bank 522.21 (1) A foreign bank may not, without the prior written approval of the Minister, have a financial establishment in Canada. Exception (2) Subsection (1) does not apply if the foreign bank or any entity associated with the foreign bank (a) is an authorized foreign bank; (b) is a foreign insurance company; (c) controls or is a major owner of a Canadian entity referred to in any of paragraphs 468(1)(a) to (f); or (d) has already received the approval of the Minister to have a financial establishment in Canada. Deeming (3) A foreign bank that was the subject of a designation order under subsection 508(1) as that subsection read immediately before the coming into force of this subsection and whose designation order has not been revoked is deemed to have received the approval of the Minister to have a financial establishment in Canada. No financial establishment without approval — associated entity 522.211 (1) An entity that is associated with a foreign bank may not, without the prior written approval of the Minister, have a financial establishment in Canada. Institutions 2006-2007 Exception (2) Subsection (1) does not apply if the entity associated with a foreign bank, the foreign bank or any other entity associated with the foreign bank (a) is an authorized foreign bank; (b) is a foreign insurance company; (c) controls or is a major owner of a Canadian entity referred to in any of paragraphs 468(1)(a) to (f); or (d) has already received the approval of the Minister to have a financial establishment in Canada. Deeming (3) An entity associated with a foreign bank that was the subject of a designation order under subsection 508(1) as that subsection read immediately before the coming into force of this subsection and whose designation order has not been revoked is deemed to have received the approval of the Minister to have a financial establishment in Canada. Approvals in Respect of Investments and Activities 2001, c. 9, s. 132 68. (1) Subsection 522.22(1) of the Act is replaced by the following: Minister’s approval 522.22 (1) Subject to subsection (2) and the regulations, a foreign bank or an entity associated with a foreign bank may not, without the prior written approval of the Minister, (a) acquire control of a Canadian entity referred to in any of paragraphs 468(1)(g) to (i) from a person who is not a member of the foreign bank’s group; (b) acquire control of a Canadian entity whose business includes one or more of the activities referred to in paragraph 522.08(1)(a) and that engages, as part of its business, in any financial intermediary activity that exposes the Canadian entity to material market or credit risk — including a finance entity — if the control is acquired from an entity referred to in any of paragraphs 468(1)(a) to (f) that is not a member of the foreign bank’s group, but does not include C. 6 Financial I a Canadian entity whose activities are limited to the activities of one or more of the following entities: (i) a factoring entity as defined in the regulations, or (ii) a financial leasing entity; (c) acquire or hold control of, or a substantial investment in, a Canadian entity whose business includes one or more of the activities referred to in paragraph 522.08(1)(d); (d) acquire or hold control of, or a substantial investment in, a Canadian entity that engages in Canada in an activity described in paragraph 410(1)(c); (d.1) acquire or hold control of, or a substantial investment in, a Canadian entity that engages in an activity described in paragraph 410(1)(c.1); (e) acquire or hold control of, or a substantial investment in, a Canadian entity that engages in an activity prescribed for the purposes of paragraph 522.08(1)(f); (f) engage in or carry on a business permitted by paragraph 522.18(1)(a) or (b) or subsection 522.18(2); (g) acquire or hold control of, or a substantial investment in, a limited commercial entity; (h) maintain a branch or engage in or carry on a business permitted by section 522.19; or (i) engage in an activity referred to in paragraph 510(1)(c) in the circumstances described in paragraph 513(1)(a) or (2)(c). (2) Section 522.22 of the Act is amended by adding the following after subsection (4): Application (5) Subsection (1) applies regardless of whether or not the approval of the Minister is required under section 522.21 or 522.211. 2001, c. 9, s. 132 69. Section 522.23 of the Act is replaced by the following: 2006-2007 Regulations Institutions 522.23 The Governor in Council may make regulations for the purposes of this Part and, in particular, may make regulations (a) concerning specialized financing; (b) for the purposes of subsection 522.22(1) or (2), permitting the acquisition or holding of control or the acquisition or holding of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the foreign banks, entities associated with foreign banks or other entities in respect of which either of those subsections does not apply, including prescribing foreign banks, entities associated with foreign banks or other entities on the basis of the activities they engage in; (c) restricting the ownership by foreign banks, or entities associated with foreign banks, of shares in a body corporate or of ownership interests in an unincorporated entity under Division 3 or 4 and imposing terms and conditions applicable to foreign banks, or entities associated with foreign banks, that own such shares or interests; (d) in respect of sections 409 to 411, for the purposes of paragraph 522.08(1)(a), subsection 522.22(1) and section 522.24; (e) respecting the calculation referred to in subsection 508(2), including regulations respecting the classes of entities associated with a foreign bank, and the classes of foreign banks described in any of subparagraphs 508(1)(a)(i) to (iii) that are associated with a foreign bank, that are to be taken into account in that calculation; (f) defining any terms in subsection 508(2); (g) respecting exemptions under subsection 508(3); and (h) defining “factoring entity” for the purpose of paragraph 522.22(1)(b). 2001, c. 9, s. 132 70. Paragraph 522.25(3)(b) of the Act is replaced by the following: (b) under subsection 518(4) or 521(1.02), as it read immediately before October 24, 2001. C. 6 2001, c. 9, s. 132 71. Sections 522.26 and 522.27 of the Act are replaced by the following: Publication 522.26 The Superintendent must publish in the Canada Gazette a notice of every approval granted for the purpose of section 522.21 or 522.211 and of every revocation of any such approval. Obligation to provide information 522.27 A foreign bank or entity associated with a foreign bank shall, at the times and in the form specified by the Superintendent, provide the Superintendent with the information that he or she may require. 2001, c. 9, s. 132 72. Division 7 of Part XII of the Act is repealed. 2001, c. 9, s. 132 73. The definition “affected foreign bank” in subsection 522.29(1) of the Act is amended by adding the word “or” at the end of paragraph (a), by striking out the word “or” at the end of paragraph (b) and by repealing paragraph (c). Financial I 74. The Act is amended by adding the following after section 522.33: PART XII.01 NON-APPLICATION OF THE INVESTMENT CANADA ACT Investment Canada Act 522.34 (1) The Investment Canada Act does not apply in respect of any of the following, whether it occurs directly or indirectly: (a) the acquisition of control of a Canadian business, within the meaning of that Act, that is an entity referred to in any of paragraphs 468(1)(a) to (f) by a foreign bank or by an entity associated with a foreign bank; (b) the establishment of a new Canadian business, within the meaning of that Act, that is the insurance business in Canada of a foreign insurance company that is a foreign bank to which Part XII does not apply or that is an entity associated with a foreign bank to which that Part does not apply; (c) the acquisition of control of a Canadian business, within the meaning of that Act, by an entity referred to in any of paragraphs 2006-2007 Institutions 468(1)(a) to (f) that is controlled by a foreign bank or by an entity associated with a foreign bank; (d) the establishment of a new Canadian business, within the meaning of that Act, by a foreign bank to which Part XII applies, or by an entity associated with a foreign bank to which that Part applies, that has a financial establishment in Canada, or would have one by virtue of the establishment of the new Canadian business; and (e) the acquisition of control of a Canadian business, within the meaning of that Act, by a foreign bank to which Part XII applies, or by an entity associated with a foreign bank to which that Part applies, that has a financial establishment in Canada, or would have one by virtue of the acquisition. Definitions “entity associated with a foreign bank” « entité liée à une banque étrangère » “foreign insurance company” « société d’assurances étrangère » (2) The following definitions apply in subsection (1). “entity associated with a foreign bank” means an entity that is or is deemed to be associated with a foreign bank within the meaning of section 507. “foreign insurance company” means a foreign company as defined in subsection 2(1) of the Insurance Companies Act. Financial establishment in Canada (3) For the purpose of subsection (1), a foreign bank has a financial establishment in Canada if the foreign bank has or is deemed to have a financial establishment in Canada for the purpose of Part XII. Financial establishment in Canada (4) For the purpose of subsection (1), an entity associated with a foreign bank has a financial establishment in Canada if the entity has or is deemed to have a financial establishment in Canada for the purpose of Part XII. 2005, c. 54, s. 80 75. (1) Paragraph 528(1)(a) of the Act is repealed. (2) Section 528 of the Act is amended by adding the following after subsection (1): C. 6 Change of name (1.1) On application by an authorized foreign bank, the Superintendent may, by order, change the name under which it is permitted to carry on business in Canada or the province in which its principal office is situated as that name or province is set out in the order made under subsection 524(1) or in any other order made under this section. Transitional (3) Orders made under paragraph 528(1)(a) of the Act, as that paragraph read immediately before the coming into force of this section, that are in force immediately before that coming into force are deemed to be orders made under subsection 528(1.1) of the Act. 1999, c. 28, s. 35(1); 2001, c. 9, s. 136(1) 76. Paragraphs 529(1)(f) and (g) of the Act are replaced by the following: Financial I (f) in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), carry on business in Canada without having to deposit assets having a value of at least five million dollars, as required by subparagraphs 534(3)(a)(ii) and 582(1)(b)(i), if the authorized foreign bank continues to hold a substantial investment in (i) a bank that is a subsidiary of a foreign bank and the Minister has approved an application for letters patent dissolving the bank made by the subsidiary under section 344, or (ii) a company to which the Trust and Loan Companies Act applies and the Minister has approved an application for letters patent dissolving the company made under section 349 of that Act; or (g) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 1999, c. 28, s. 35(1) 77. (1) The portion of subsection 530(1) of the Act before paragraph (a) is replaced by the following: Prohibited names 530. (1) An order made under subsection 524(1) or 528(1.1) may not provide for the use of a name that is 2006-2007 Institutions 1999, c. 28, s. 35(1) (2) Subsection 530(2) of the Act is replaced by the following: Name otherwise prohibited (2) An order made under subsection 524(1) or 528(1.1) may provide for the use of a name that includes a word referred to in section 47 of the Trust and Loan Companies Act. 1999, c. 28, s. 35(1) 78. Section 531 of the Act is replaced by the following: Publication of name 531. An authorized foreign bank shall set out its name and, where applicable, any other permitted name, as set out in the order made under subsection 524(1) or 528(1.1), in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the authorized foreign bank. 1999, c. 28, s. 35(1) 79. Subsection 532(1) of the English version of the Act is replaced by the following: Directing change of name 532. (1) If through inadvertence or otherwise an order made under subsection 524(1) or 528(1.1) provides for the use of a name that is prohibited by section 530, the Superintendent may, by order, direct the authorized foreign bank to change the name without delay and the authorized foreign bank shall comply with that direction. 1999, c. 28, s. 35(1) 80. Subsection 533(1) of the Act is replaced by the following: Other name 533. (1) Subject to section 531 and subsection (2), an authorized foreign bank may carry on business in Canada under a name other than the name set out in the order made under subsection 524(1) or 528(1.1). 2005, c. 54, s. 81 81. Subsections 535(1) and (2) of the Act are replaced by the following: Principal office 535. (1) An authorized foreign bank shall at all times have a principal office in the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it. C. 6 Change of principal office (2) An authorized foreign bank may change the address of its principal office within the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it. 2001, c. 9, s. 139(2) 82. Paragraph 539(1)(b.3) of the Act is replaced by the following: Financial I (b.3) engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services; 1999, c. 28, s. 35(1) 83. Subparagraph 540(4)(a)(ii) of the Act is replaced by the following: (ii) a foreign bank described in any of subparagraphs 508(1)(a)(i) to (iii), 1999, c. 28, s. 35(1) 84. Paragraph 543(1)(b) of the Act is replaced by the following: (b) refer any person to any such financial institution or entity. 1999, c. 28, s. 35(1) 85. Subsections 545(4) and (5) of the Act are replaced by the following: Notice before opening account or providing prescribed product (4) Before an authorized foreign bank opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the authorized foreign bank shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product (a) a notice in writing that the deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and (b) any other information that may be prescribed. Other notice (5) An authorized foreign bank shall, in accordance with any regulations that may be made, (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Institutions 2006-2007 Canada, to inform the public that deposits with the authorized foreign bank are not insured by the Canada Deposit Insurance Corporation; and (b) include in its advertisements notices to inform the public that deposits with the authorized foreign bank are not insured by the Canada Deposit Insurance Corporation. 1999, c. 28, s. 35(1) 86. Subsection 551(1) of the Act is replaced by the following: Restriction on residential mortgages 551. (1) An authorized foreign bank shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance a loan for that purpose, if the amount of the loan, together with the amount outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 1999, c. 28, s. 35(1) 87. Subsection 557(2) of the Act is replaced by the following: Provision of information (2) An authorized foreign bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the authorized foreign bank: (a) in the case of a deposit, (i) the name of the depositor in whose name the deposit is held, (ii) the recorded address of the depositor, (iii) the outstanding amount of the deposit, and (iv) the branch of the authorized foreign bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and (b) in the case of an instrument, (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted, (ii) the recorded address of that person, C. 6 Financial I (iii) the name of the payee of the instrument, (iv) the amount and date of the instrument, (v) the name of the place where the instrument was payable, and (vi) the branch of the authorized foreign bank at which the instrument was issued, certified or accepted. Copies of signature cards and signing authorities (2.1) An authorized foreign bank shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada. 1999, c. 28, s. 35(1) 88. (1) Subsection 558(1) of the Act is replaced by the following: Notice of unpaid amount 558. (1) Subject to subsections (1.1) to (3), an authorized foreign bank shall send to each person to whom a deposit referred to in paragraph 557(1)(a) is payable, and to each person to whom or at whose request an instrument referred to in paragraph 557(1)(b) was issued, certified or accepted, a notice stating that the deposit or instrument remains unpaid. Where notice to be sent (1.1) The notice is to be sent to the person’s recorded address and, if the person has designated an information system for the receipt of electronic documents, to that designated information system. 1999, c. 28, s. 35(1) (2) The portion of subsection 558(2) of the Act before paragraph (a) is replaced by the following: When notice to be sent (2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period (3) Section 558 of the Act is amended by adding the following after subsection (2): Institutions 2006-2007 Notification of transfer to the Bank of Canada (3) The notice to be sent during the month of January next following the end of the first nineyear period determined under paragraphs (2)(a) to (c), as the case may be, must also (a) indicate that in the month of January in the next year the unpaid amounts will be transferred to the Bank of Canada; and (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument. 89. The Act is amended by adding the following after section 566: REGISTERED PRODUCTS Disclosure required concerning registered products 566.1 (1) Subject to subsection (2), an authorized foreign bank shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the authorized foreign bank provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service (a) information about all charges applicable to the registered product; (b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product; (c) information about the authorized foreign bank’s procedures relating to complaints about the application of any charge applicable to the registered product; and (d) any other information that may be prescribed. Regulations (2) The Governor in Council may make regulations specifying the circumstances under which an authorized foreign bank need not provide the information. Definition of “registered product” (3) In this section, “registered product” means a product that is defined to be a registered product by the regulations. C. 6 Financial I 90. Section 573 of the Act is amended by adding the following after subsection (2): How procedures to be made available (3) An authorized foreign bank shall make its procedures established under paragraph (1)(a) available (a) in the form of a brochure, at its branches where products or services are offered in Canada; (b) on its websites through which products or services are offered in Canada; and (c) in written format to be sent to any person who requests them. Information on contacting Agency (4) An authorized foreign bank shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). 91. The Act is amended by adding the following before section 575: Charges for prescribed products or services 574.1 An authorized foreign bank shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court. 2001, c. 9, s. 158(2) 92. Subsection 576.1(4.1) of the Act is replaced by the following: Disclosure (4.1) An authorized foreign bank shall disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada. 2001, c. 9, s. 159 93. Subparagraph 576.2(a)(iv) of the Act is replaced by the following: (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 2006-2007 1999, c. 28, s. 35(1) Institutions 94. (1) Subparagraph 585(3)(b)(iii) of the Act is replaced by the following: (iii) has been a liquidator, trustee in bankruptcy, receiver or receiver and manager of any affiliate of the authorized foreign bank within the two years immediately preceding the proposed appointment of the firm of accountants as auditor, other than an affiliate that is a subsidiary of the authorized foreign bank acquired under section 522.15. 1999, c. 28, s. 35(1) (2) Subsection 585(4) of the English version of the Act is replaced by the following: Notice of designation (4) Within 15 days after the appointment of a firm of accountants as auditor, the authorized foreign bank and the firm shall jointly designate a member of the firm who meets the qualifications described in paragraph (2)(a) to conduct an audit under subsection 592(1) on behalf of the firm and the authorized foreign bank shall without delay notify the Superintendent in writing of the designation. 1999, c. 28, s. 35(1) 95. Section 598 of the Act is replaced by the following: Application of sections 244 to 247 598. Sections 244 to 247 apply, with any modifications that the circumstances require, to an authorized foreign bank as if (a) the reference in subsection 245(1) to “records referred to in section 238” were a reference to “records referred to in subsection 597(1)”; and (b) the reference in paragraph 246(1)(a) to “records of the bank referred to in subsection 238(1)” were a reference to “records of the authorized foreign bank referred to in subsection 597(1)”. 1999, c. 28, s. 35(1) 96. Subsection 599(5) of the Act is replaced by the following: Order deemed to be revoked (5) An order made under subsection 524(1), 528(1) or (1.1) or 534(1) in respect of an authorized foreign bank is deemed to be revoked when the Superintendent authorizes the release of the assets of the authorized foreign bank under subsection (3). C. 6 1999, c. 28, s. 35(1) 97. Subsection 601(2) of the Act is repealed. 1999, c. 28, s. 35(1) 98. Sections 602 to 604 of the Act are repealed. 2001, c. 9, s. 164 99. Subsection 606(1) of the Act is replaced by the following: Confidential information 606. (1) Subject to section 609, all information regarding the business or affairs of an authorized foreign bank, or regarding a person dealing with an authorized foreign bank, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly. 1999, c. 28, s. 35(1) 100. Section 608 of the Act is repealed. 2001, c. 9, s. 170(2) 101. Paragraph 619(2)(g) of the Act is replaced by the following: Financial I (g) in the opinion of the Superintendent, any other state of affairs exists in respect of the authorized foreign bank that may be materially prejudicial to the interests of the authorized foreign bank’s depositors or creditors in respect of its business in Canada or to those of the owners of any assets under the authorized foreign bank’s administration in respect of its business in Canada, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the authorized foreign bank or its holding body corporate. 1999, c. 28, ss. 36 and 37 102. Sections 629 to 631 of the Act are repealed. 2001, c. 9, s. 174 103. Subsection 636(1) of the Act is replaced by the following: Confidential information 636. (1) Subject to section 639, all information regarding the business or affairs of a bank or a foreign bank, or regarding a person dealing with a bank or a foreign bank, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of 2006-2007 Institutions any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly. 1999, c. 28, s. 43 104. Section 638 of the Act is repealed. 2001, c. 9, s. 183; 2006, c. 4, s. 199.1 105. Section 670 of the Act is replaced by the following: Sunset provision 670. (1) Subject to subsections (2) and (3), bank holding companies shall not carry on business after the day that is the fifth anniversary of the day on which this section comes into force. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which bank holding companies may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the threemonth period before that anniversary or on any day within an extension under subsection (2), bank holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 2001, c. 9, s. 183 106. Paragraph 678(2)(a) of the Act is replaced by the following: (a) respecting applications referred to in subsection (1), including their form and the information to be contained in them, and authorizing the requesting of additional information in respect of such applications; 2001, c. 9, s. 183 107. Paragraph 688(1)(e) of the Act is replaced by the following: (e) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2001, c. 9, s. 183 108. Subsection 689(1) of the Act is replaced by the following: C. 6 Transferring to other Acts 689. (1) A bank holding company may apply to be continued only as a body corporate under any other Act of Parliament or any Act of the legislature of a province, and it may do so only with the approval in writing of the Minister. 2001, c. 9, s. 183 109. The portion of section 694 of the Act before paragraph (a) is replaced by the following: Affiliated bank holding company 694. Despite section 693 and subject to section 695, a bank holding company that is affiliated with another entity may, with the consent of that entity, 2005, c. 54, s. 86(2) 110. Subsection 706(5) of the English version of the Act is replaced by the following: Material to Superintendent (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. Financial I 111. The Act is amended by adding the following after section 716: Exception — conditions before acquisition 716.1 (1) A bank holding company may permit any of its subsidiaries to acquire shares of the bank holding company through the issuance of those shares by the bank holding company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. Conditions after acquisition (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. Non-compliance with conditions (3) If a bank holding company permits any of its subsidiaries to acquire shares of the bank holding company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, 2006-2007 Institutions despite section 665 and subsection 710(2), the bank holding company must comply with the prescribed requirements. 112. Section 718 of the Act is amended by adding the following after subsection (4): Exception (4.1) Subsection (4) does not apply if (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 308(4); and (b) there is to be no return of capital to shareholders as a result of the reduction. 2001, c. 9, s. 183 113. Subsection 722(2) of the Act is replaced by the following: Notice to Superintendent (2) The directors of a bank holding company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 2001, c. 9, s. 183 114. Subsection 749(2) of the Act is replaced by the following: Residency requirement (2) At least one half of the directors of a bank holding company that is a subsidiary of a foreign bank and a majority of the directors of any other bank holding company must be, at the time of each director’s election or appointment, resident Canadians. 2001, c. 9, s. 183 115. Section 805 of the Act is replaced by the following: Approval of agreement by Superintendent 805. An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 806(4) by the holders of any class or series of shares of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. 2001, c. 9, s. 183 116. Paragraph 812(1)(e) of the Act is replaced by the following: (e) maintain outside Canada any records or registers required by this Act to be maintained in Canada. C. 6 2001, c. 9, s. 183; 2005, c. 54, s. 122 117. Section 822 of the Act is replaced by the following: Requirement to maintain copies and process information in Canada 822. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a bank holding company to maintain, in another country, copies of records referred to in section 815 or of its central securities register or for a bank holding company to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a bank holding company to do any of those activities in another country — the Superintendent shall direct the bank holding company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. Bank holding company to comply (2) A bank holding company shall without delay comply with any direction issued under subsection (1). 2001, c. 9, s. 183 118. (1) The portion of subsection 875(1) of the French version of the Act before paragraph (a) is replaced by the following: Restrictions à l’acquisition 875. (1) Sous réserve de l’article 876, il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une société de portefeuille bancaire ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas : 2001, c. 9, s. 183 (2) Subsection 875(2) of the Act is replaced by the following: Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of a bank holding company, the entity is deemed to be acquiring a significant interest in that class of shares of the bank holding Financial I 2006-2007 Institutions company through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 183 119. Section 883 of the Act is replaced by the following: Restriction on control 883. (1) No person shall, without the approval of the Minister, acquire control, within the meaning of paragraph 3(1)(d), of a bank holding company with equity of less than eight billion dollars. Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a bank holding company with equity of less than eight billion dollars, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the bank holding company through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 183 120. Subsection 908(1) of the French version of the Act is replaced by the following: Accusé de réception 908. (1) Lorsque, à son avis, la demande faite dans le cadre de la présente section est complète, le surintendant la transmet sans délai au ministre et adresse au demandeur un accusé de réception précisant la date où elle a été reçue. 121. Section 928 of the Act is amended by adding the following after subsection (4): Application of other provision (5) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a bank holding company may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (6) If a bank holding company decides to exercise its right under subsection (5), the bank holding company is deemed to be acquiring the control or the substantial investment under the other provision. C. 6 2001, c. 9, s. 183 122. (1) Paragraph 930(1)(j) of the French version of the Act is replaced by the following: Financial I j) une entité qui est constituée en personne morale ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations bancaires, l’activité d’une société coopérative de crédit, des opérations d’assurance, la prestation de services fiduciaires ou le commerce de valeurs mobilières. 2001, c. 9, s. 183 (2) Paragraph 930(2)(e) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity”, “mutual fund entity” or “real property brokerage entity” in subsection 464(1); and (3) Section 930 of the Act is amended by adding the following after subsection (3): Exception (3.1) Despite paragraph (3)(a), a bank holding company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and (iii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 183 (4) Paragraph 930(5)(d) of the Act is replaced by the following: 2006-2007 Institutions (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 410(1)(c); (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 410(1)(c.1); or 2001, c. 9, s. 183 (5) Paragraph 930(7)(a) of the Act is replaced by the following: (a) the bank holding company is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the bank holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b); 2001, c. 9, s. 183 123. Subsections 933(3) and (4) of the Act are replaced by the following: Temporary investment (3) If a bank holding company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 930(5) if the bank holding company had acquired the control, or acquired or increased the substantial investment, under section 930, the bank holding company must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (4) If a bank holding company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, C. 6 Financial I an entity for which the approval of the Superintendent would have been required under subsection 930(6) if the bank holding company had acquired the control, or acquired or increased the substantial investment, under section 930, the Superintendent may, on application, permit the bank holding company to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 124. (1) Section 944 of the Act is amended by adding the following after subsection (1): Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. 2001, c. 9, s. 183 (2) The portion of subsection 944(2) of the Act before paragraph (a) is replaced by the following: (2) Subsection (1) does not apply in respect Exception of 2001, c. 9, s. 183 (3) Paragraph 944(2)(f) of the Act is replaced by the following: (f) assets acquired or transferred under a transaction or series of transactions by a subsidiary of the bank holding company with a financial institution as a result of the subsidiary’s participation in one or more syndicated loans with that financial institution. 2001, c. 9, s. 183 (4) Paragraph 944(4)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the bank holding company prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the bank holding company if the annual Institutions 2006-2007 statement had been prepared, in accordance with the accounting principles referred to in subsection 840(4), immediately before the transfer. 2001, c. 9, s. 183 (5) Subsection 944(6) of the Act is replaced by the following: Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the bank holding company or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the bank holding company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the bank holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 840(4), immediately before the transfer of the asset. 2001, c. 9, s. 183 125. Section 973 of the Act and the heading before it are replaced by the following: APPROVALS Definition of “approval” 973. In sections 973.01 to 973.06, “approval” includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent. Matters to take into account — Minister 973.01 (1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including (a) national security; and (b) Canada’s international relations and its international legal obligations. Matters to take into account — Superintendent (2) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential C. 6 Financial I considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account (a) national security; and (b) Canada’s international relations and its international legal obligations. Minister — terms, conditions and undertakings 973.02 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it. Superintendent — terms, conditions and undertakings (2) In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate. Revocation, suspension or amendment of approval — Minister 973.03 (1) The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including (a) national security; and (b) Canada’s international relations and its international legal obligations. Revocation, suspension or amendment of approval — Superintendent (2) The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and (a) national security; and (b) Canada’s international relations and its international legal obligations. 2006-2007 Institutions Representations (3) Before taking any action under this section, the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Effect of noncompliance on approval 973.04 (1) Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates. Non-compliance (2) In addition to any other action that may be taken under this Act, in the case of noncompliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may (a) revoke, suspend or amend the approval to which the term, condition or undertaking relates; or (b) apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit. Representations (3) Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Revocation, suspension or amendment (4) At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment. Multiple approval — other approvals 973.05 The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals. C. 6 Exemption in relation to notices of intention 973.06 The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate. 2001, c. 9, s. 183 126. (1) The portion of subsection 976(1) of the French version of the Act before paragraph (a) is replaced by the following: Demande d’approbation 976. (1) Doivent être accompagnées des renseignements, documents et éléments de preuve que peut exiger le surintendant les demandes suivantes qui lui sont présentées : 2001, c. 9, s. 183 (2) Paragraph 976(1)(c) of the Act is replaced by the following: Financial I (c) applications for exemptions under subsection 156.05(3); and 2001, c. 9, s. 183 (3) Subsection 976(2) of the French version of the Act is replaced by the following: Accusé de réception (2) Le surintendant adresse sans délai au demandeur un accusé de réception précisant la date où la demande a été reçue. 127. The Act is amended by adding the following after section 976: APPLICATIONS FOR CERTAIN APPROVALS Application for certain approvals 976.1 (1) An application for the prior written approval of the Minister in respect of any of the following provisions must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require: (a) paragraphs 410(1)(c) and (c.1); (b) paragraphs 468(5)(c), (d) and (d.1); (c) paragraphs 522.22(1)(c), (d) and (d.1); (d) paragraphs 539(1)(b.1) and (b.2); and (e) paragraphs 930(5)(c), (d) and (d.1). 2006-2007 Institutions Certification of receipt of application (2) If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister. Incomplete application (3) If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it. Notice of decision (4) Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant (a) a notice approving the application; or (b) if the Minister is not satisfied that the application should be approved, a notice to that effect. Extension of period (5) If the Minister is unable to complete the consideration of an application within the 30day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice. Deemed approval (6) If the Minister does not send the notice referred to in subsection (4) or, where applicable, subsection (5), within the required period, the Minister is deemed to have approved the application. 128. The Act is amended by adding the following after section 980: False or misleading information 980.1 Every person who knowingly provides false or misleading information in relation to any matter under this Act or the regulations is guilty of an offence. 2001, c. 9, s. 183 129. (1) Subsections 983(2) and (3) of the Act are replaced by the following: Unauthorized name (2) Subject to the regulations and subsections (4) to (5.1), (6) and (12), every entity, other than a bank, that acquires, adopts or retains a name that includes the word “bank”, “banker” or “banking”, either alone or in combination with other words, to indicate or describe a business in C. 6 Financial I Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence. Unauthorized use of word “bank”, “banker” or “banking” (2.1) Subject to the regulations and subsections (4) to (5.1), (6) and (12), every person, other than a bank, who uses the word “bank”, “banker” or “banking” to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence. Unauthorized use of name or identifying mark of bank or foreign bank (2.2) Subject to the regulations and subsections (4), (5), (5.2), (5.3) and (10) to (12), every person who uses the name or any identifying mark of a bank or a foreign bank to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence. Unauthorized statements regarding association with a bank, etc. (2.3) Subject to the regulations and subsections (4), (5.2) and (12), every person is guilty of an offence who, without being authorized to do so by this Act or any other Act of Parliament, makes any statement that a business is connected, associated or affiliated with a bank or a foreign bank. Unauthorized use of name or identifying mark of a bank holding company (3) Subject to the regulations and subsections (7) to (9.1) and (12), every entity that acquires, adopts or retains the name of a bank holding company and every person who uses the name or any identifying mark of a bank holding company to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence. 2001, c. 9, s. 183 (2) The portion of subsection 983(4) of the Act before paragraph (c) is replaced by the following: 2006-2007 Permitted use Institutions (4) No person commits an offence under any of subsections (2) to (2.3) if the activity referred to in that subsection is done (a) in a description of the corporate relationship between a bank and an entity controlled by the bank; (b) subject to the regulations, in a description of a corporate relationship between a bank and an entity affiliated with the bank; (b.1) in a description of the corporate relationship between a bank holding company and an entity controlled by the bank holding company; 2001, c. 9, s. 183 (3) Paragraphs 983(4)(f) to (h) of the Act are replaced by the following: (f) in a description of the corporate relationship between a bank or a bank holding company and a foreign bank that controls the bank or the bank holding company; (f.1) in a description of the corporate relationship between a bank or a bank holding company and an entity that is associated with a foreign bank and that controls the bank or the bank holding company; (g) subject to the regulations, in a description of the corporate relationship between a nonbank affiliate of a foreign bank, within the meaning of subsection 507(1), and a foreign bank that controls the non-bank affiliate, if the non-bank affiliate is not a bank holding company or an entity that is controlled by a bank holding company; (h) subject to the regulations, in a description of the corporate relationship between a nonbank affiliate of a foreign bank, within the meaning of subsection 507(1), and an entity that is associated with a foreign bank that controls the non-bank affiliate, if (i) the non-bank affiliate is not a bank holding company or an entity that is controlled by a bank holding company, and (ii) the entity is not a bank, a bank holding company, a foreign bank or an entity controlled by a bank or a bank holding company; C. 6 2001, c. 9, s. 183 (4) Subsections 983(5) and (5.1) of the Act are replaced by the following: Permitted use (5) No subsidiary of a bank commits an offence by reason only that it uses the name of the bank of which it is a subsidiary in its corporate name or a name under which it carries on business or by reason only that it uses any identifying mark of that bank in carrying on its business. Permitted use (5.1) No person commits an offence under subsection (2) or (2.1) if the activity referred to in that subsection is in relation to a business that is not engaged in financial activities, unless the business is carried out by a prescribed entity. Permitted use (5.2) No bank commits an offence under subsection (2.2) or (2.3) if it is affiliated with the bank or the foreign bank. Permitted use (5.3) Subject to the regulations, no entity affiliated with a bank commits an offence by reason only that the entity uses the name of the bank in the entity’s corporate name or in a name under which the entity carries on business or by reason only that it uses any identifying mark of the bank in carrying on its business, if the entity does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks. 2001, c. 9, s. 183 (5) Subsection 983(6) of the English version of the Act is replaced by the following: Permitted use (6) No financial institution that was controlled by a bank on June 25, 1999 and that had a name that included the word “bank”, “banker” or “banking” on that day commits an offence by reason only that it uses that word in its corporate name or in a name under which it carries on business if the financial institution is a subsidiary of a bank holding company that controls the bank. 2001, c. 9, s. 183 (6) Subsections 983(6.1) to (8.1) of the Act are replaced by the following: Financial I 2006-2007 Institutions Permitted use (7) No subsidiary of a bank holding company commits an offence by reason only that it uses the name of the bank holding company in the subsidiary’s corporate name or in a name under which it carries on business, or by reason only that it uses any identifying mark of the bank holding company in carrying on its business, so long as, if the subsidiary is not a bank or a subsidiary of a bank, it does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks. Permitted use (8) Subject to the regulations, no entity affiliated with a bank holding company commits an offence by reason only that the entity uses the name of the bank holding company in the entity’s corporate name or in a name under which the entity carries on business or by reason only that it uses any identifying mark of the bank holding company in carrying on its business, if the entity does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks. 2001, c. 9, s. 183 (7) Subsection 983(9) of the French version of the Act is replaced by the following: Utilisation autorisée (9) Ne commet pas une infraction la filiale d’une société de portefeuille bancaire du simple fait qu’elle utilise le nom de la société de portefeuille bancaire pour décrire les rapports qui l’unissent à elle. 2001, c. 9, s. 183 (8) Subsections 983(9.1) to (16) of the Act are replaced by the following: Permitted use (9.1) Subject to the regulations, no entity affiliated with a bank holding company commits an offence by reason only that the entity uses the name of the bank holding company in a description of the entity’s corporate relationship with the bank holding company. C. 6 Permitted use (10) Subject to the regulations, no Canadian entity that is an entity associated with a foreign bank commits an offence by reason only that it uses the name of the foreign bank in its corporate name or in a name under which it carries on business, or by reason only that it uses any identifying mark of the foreign bank in carrying on its business, if Financial I (a) it does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks; and (b) the foreign bank has consented to the use. Permitted use (11) Subject to the regulations, no foreign bank that carries on a business or activity referred to in section 510.1, 522.05, 522.18 or 522.19, and no entity incorporated or formed by or under the laws of a country other than Canada that carries on a business or activity referred to in any of those provisions and that is an entity associated with a foreign bank, commits an offence by reason only that it uses its name or any of its identifying marks if it does not use the word “bank”, “banker” or “banking”. Permitted use — consent (12) No person commits an offence under any of subsections (2) to (3) if the activity referred to in that subsection has been approved by the Superintendent and is in accordance with any terms and conditions that the Superintendent may impose and, if the activity involves the use of the name or any identifying mark of a bank, a bank holding company or a foreign bank, the bank, bank holding company or foreign bank has consented to the use. Words “bank”, “banker” or “banking” (13) For the purposes of this section, the word “bank”, “banker” or “banking” includes (a) any of those words in any language; and (b) any word or words, in any language, that are equivalent to any of those words. 2006-2007 Entity’s name Institutions (14) For the purposes of this section, other than subsection (1), an entity’s name includes (a) a name that is substantially similar to the entity’s name; and (b) the entity’s name in any language. Identifying marks (15) For the purposes of this section, an identifying mark of an entity includes (a) any logogram, insignia or logo of the entity; (b) the initials or any acronym of the entity; and (c) any mark that is substantially similar to any identifying mark of the entity. Definition of “foreign bank” (16) In this section, “foreign bank” means a foreign bank to which Part XII applies. Entity associated with a foreign bank (17) For the purposes of this section, an entity is associated with a foreign bank if the entity is or is deemed to be associated with the foreign bank within the meaning of section 507 and is an entity to which Part XII applies. Regulations (18) The Governor in Council may make regulations for the purposes of subsections (1) to (3), paragraphs (4)(b), (g) and (h) and subsections (5.3), (8) and (9.1) to (11). 2001, c. 9, s. 183 130. Subsection 989(2) of the Act is replaced by the following: Compliance or restraining order — authorized foreign bank (2) If an authorized foreign bank or any of its directors, officers, employees or agents does not comply with any provision of this Act or the regulations other than a consumer provision, or of an order made under subsection 524(1), 528(1) or (1.1) or 534(1) in respect of the authorized foreign bank, the Superintendent, any complainant or any creditor of the authorized foreign bank may, in addition to any other right that that person has, apply to a court for an order directing the authorized foreign bank, director, officer, employee or agent to comply with — or restraining the authorized foreign C. 6 Financial I bank, director, officer, employee or agent from acting in breach of — the provision and, on the application, the court may so order and make any further order that it thinks fit. 131. Schedules I and II to the French version of the Act are amended by replacing the expression “Siège social” with the expression “Siège”. 132. The Act is amended by replacing the expression “five billion dollars” with the expression “eight billion dollars” wherever it occurs in the following provisions: (a) subsection 138(1.1); (b) subsection 156.09(2); (c) subsection 168(3.1); (d) subsection 223(3); (e) section 374; (f) subsection 374.1(1); (g) subsection 375(1); (h) subsection 376(1); (i) subsection 376.01(1); (j) sections 376.1 and 376.2; (k) subsection 377(1); (l) section 380; (m) subsection 382(1); (n) subsection 383(2); (o) subsections 385(1) and (2); (p) section 385.1; (q) section 387; (r) subsection 393(1); (s) subsection 393.1(1); (t) subsection 394(1); (u) paragraph 396(2)(a); (v) subsection 727(2); (w) subsection 756(4); (x) subsection 803(3); (y) section 876; (z) subsection 877(1); Institutions 2006-2007 (z.1) subsection 878(1); (z.2) subsection 879(1); (z.3) subsection 879.1(1); (z.4) sections 880 and 881; (z.5) subsection 882(1); (z.6) section 884; (z.7) section 888; (z.8) subsection 890(1); (z.9) subsection 891(2); (z.10) subsection 893(1); (z.11) paragraph 893(2)(a); (z.12) section 894; (z.13) section 896; (z.14) subsection 902(1); (z.15) subsection 903(1); (z.16) subsection 904(1); and (z.17) paragraph 906(2)(a). 133. The Act is amended by replacing the expression “one billion dollars” with the expression “two billion dollars” wherever it occurs in the following provisions: (a) subsections 385(1) and (2); (b) section 387; (c) subsections 893(1) and (2); and (d) section 896. 134. The French version of the Act is amended by replacing the expression “qui exerce une” with the expression “dont l’activité commerciale comporte une” wherever it occurs in the following provisions: (a) paragraphs 468(4)(c) and (d); and (b) paragraphs 930(4)(c) and (d). C. 6 Financial I PART 2 1991, c. 48 AMENDMENTS TO THE COOPERATIVE CREDIT ASSOCIATIONS ACT 135. The definition “recorded address” in section 2 of the Cooperative Credit Associations Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) in relation to any other person in respect of a retail association, the latest postal address of the person according to the records of the branch concerned. 136. Section 10 of the Act is amended by adding the following after subsection (3): Contravention (4) A member contravenes section 52 if the member agrees to act jointly or in concert with one or more other members in such a manner that a deemed single member contravenes that section. 137. Section 11 of the Act is amended by adding the following after subsection (4): Contravention (5) A person contravenes a provision of Part VIII if the person agrees to act jointly or in concert with one or more other persons in such a manner that a deemed single person contravenes the provision. 2001, c. 9, s. 254; 2006, c. 4, s. 200 138. Section 22 of the Act is replaced by the following: 2006-2007 Institutions Sunset provision 22. (1) Subject to subsections (2) and (3), associations shall not carry on business after the day that is the fifth anniversary of the day on which this section comes into force. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which associations may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the threemonth period before that anniversary or on any day within an extension under subsection (2), associations may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 2001, c. 9, s. 256 139. Subparagraph 24(b)(ii) of the Act is replaced by the following: (ii) two local cooperative credit societies not all of which are incorporated under the laws of one province, or 2001, c. 9, s. 258 140. Section 31.6 of the Act is renumbered as subsection 31.6(1) and is amended by adding the following: Membership shares (2) When a body corporate is continued as an association, (a) its common shares are deemed to be membership shares to which are attached the rights, privileges and restrictions set out in this Act; (b) the holders of the common shares of the body corporate are deemed to be the members of the association; and (c) any agreement made before continuance under which the holders of any common shares of the body corporate have agreed to vote those shares in a manner provided in the agreement is of no effect. 2001, c. 9, s. 258 141. Paragraph 31.7(1)(e) of the Act is replaced by the following: C. 6 Financial I (e) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2001, c. 9, s. 259 Transferring to other federal Acts 142. Sections 32 to 34 of the Act are replaced by the following: 32. (1) An association may (a) apply, under the Bank Act, for letters patent continuing the association as a bank or a bank holding company under that Act, or amalgamating and continuing the company as a bank or a bank holding company under that Act; (b) apply, with the approval in writing of the Minister, under the Canada Business Corporations Act for a certificate of continuance as a corporation under that Act; (c) apply, with the approval in writing of the Minister, under the Canada Cooperatives Act for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act; (d) apply, under the Insurance Companies Act, for letters patent continuing the association as a company (other than a mutual company) or an insurance holding company under that Act, or amalgamating and continuing the association as a company (other than a mutual company) or an insurance holding company under that Act; or (e) apply, under the Trust and Loan Companies Act, for letters patent continuing the association as a company under that Act, or amalgamating and continuing the association as a company under that Act. Conditions for approval (2) The approval referred to in paragraph (1)(b) or (c) may be given only if the Minister is satisfied that (a) the association has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the association is situated, a notice of its intention to apply for the approval; 2006-2007 Institutions (b) the application has been authorized by a special resolution; and (c) the association does not hold deposits, other than deposits that are made by a member, a person who controls the association or a person who has a significant interest in a class of shares of the association and that are not insured by the Canada Deposit Insurance Corporation. Withdrawing application (3) If a special resolution authorizing the application for the certificate or letters patent so states, the directors of the association may, without further approval, withdraw the application before it is acted on. Restriction on other transfers (4) An association may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1). Act ceases to apply 33. If an association applies for a certificate or letters patent referred to in section 32 in accordance with that section and the certificate is given or the letters patent are issued, this Act ceases to apply to the association as of the day the certificate or the letters patent take effect. 2001, c. 9, ss. 260 and 261 143. Sections 36 and 37 of the Act are replaced by the following: Name 36. The name of an association shall include (a) the word “cooperative” or “coopérative”, along with another word or expression indicating the financial nature of the association; (b) the phrase “central credit union”, “credit union central” or “fédération de caisses populaires”; (c) any combination or derivative of words and phrases referred to in paragraphs (a) and (b); or (d) any word or phrase specified by the Minister. Affiliated entity 37. Despite section 35, an association that is affiliated with another entity may, with the consent of that entity, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity. C. 6 2001, c. 9, s. 265 144. Paragraph 50(1)(c) of the Act is replaced by the following: Financial I (c) two local cooperative credit societies not all of which are incorporated under the laws of one province; or 145. Paragraph 67(2)(a) of the English version of the Act is replaced by the following: (a) receive dividends declared on the membership shares; and 2005, c. 54, s. 146(2) 146. Subsection 71(5) of the English version of the Act is replaced by the following: Material to Superintendent (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. 147. The Act is amended by adding the following after section 80: Exception — conditions before acquisition 80.1 (1) An association may permit any of its subsidiaries to acquire shares of the association through the issuance of those shares by the association to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. Conditions after acquisition (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. Non-compliance with conditions (3) If an association permits any of its subsidiaries to acquire shares of the association under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 17 and subsection 75(2), the association must comply with the prescribed requirements. 148. Section 82 of the Act is amended by adding the following after subsection (4): 2006-2007 Exception Institutions (4.1) Subsection (4) does not apply if (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 292(4); and (b) there is to be no return of capital to members or shareholders as a result of the reduction. 2001, c. 9, s. 272(1) 149. (1) Subsections 86(1) and (2) of the Act are replaced by the following: Declaration of dividend 86. (1) The directors of an association may declare and an association may pay a dividend by issuing fully paid membership shares or options or rights to acquire membership shares to members or fully paid shares or options or rights to acquire fully paid shares to members or shareholders and, subject to subsection (4), the directors of an association may declare and an association may pay a dividend in money or property, and if a dividend is to be paid in money, the dividend may be paid in a currency other than the currency of Canada. Notice to Superintendent (2) The directors of an association shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 2001, c. 9, s. 272(2) (2) Subsection 86(5) of the Act is repealed. 2001, c. 9, s. 276 150. Subsection 169(2) of the Act is replaced by the following: Residency requirement (2) The majority of the directors of an association must be, at the time of each director’s election or appointment, resident Canadians. 2001, c. 9, s. 283(2) 151. Subsection 221(2) of the Act is replaced by the following: Effective date of by-law (2) A by-law respecting a change to the name of the association is not effective until it is approved by the Superintendent. C. 6 Letters patent (3) If the name of an association or the province in Canada in which the head office of the association is situated is changed under this section, the Superintendent may issue letters patent to amend the association’s incorporating instrument accordingly. Effect of letters patent (4) Letters patent issued under subsection (3) become effective on the day stated in the letters patent. Financial I 152. Section 228 of the Act is replaced by the following: Approval of agreement by Superintendent 228. An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 229(4) by the members and the holders of any class or series of shares of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. 153. Paragraph 233(3)(f) of the Act is replaced by the following: (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2001, c. 9, s. 289 154. Section 233.2 of the Act is replaced by the following: Agreement to Superintendent 233.2 A sale agreement must be sent to the Superintendent before it is submitted to members and shareholders of the selling association under subsection 233.3(1). 155. Paragraph 235(1)(d) of the English version of the Act is replaced by the following: (d) particulars of any authorizations, conditions and limitations established by the Superintendent under section 61 or subsection 62(1) that are from time to time applicable to the association; and 2005, c. 54, s. 189 156. Section 242 of the Act is replaced by the following: Requirement to maintain copies and process information in Canada 242. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for an association to maintain, in 2006-2007 Institutions another country, copies of records referred to in section 235 or of its central securities register or for an association to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for an association to do any of those activities in another country — the Superintendent shall direct the association to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. Association to comply (2) An association shall without delay comply with any direction issued under subsection (1). 1991, c. 48, par. 496(c) 157. Section 284 of the Act is replaced by the following: Trustee qualifications 284. A trustee, or at least one of the trustees if more than one is appointed, must be (a) a trust company pursuant to subsection 57(2) of the Trust and Loan Companies Act; or (b) a body corporate that is incorporated under the laws of a province and authorized to carry on business as a trustee. 158. (1) The portion of subsection 354(1) of the French version of the Act before paragraph (a) is replaced by the following: Restrictions à l’acquisition 354. (1) Il est interdit à une personne ou à l’entité qu’elle contrôle d’acquérir, sans l’agrément du ministre, des actions d’une association ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas : (2) Subsection 354(2) of the Act is replaced by the following: Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of an association, the entity is deemed to be acquiring a significant interest in that class of C. 6 Financial I shares of the association through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 298 159. Section 354.1 of the Act is replaced by the following: No acquisition of control without approval 354.1 (1) No person shall acquire control, within the meaning of paragraph 3(1)(e), of an association without the approval of the Minister. Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(e), an association, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the association through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 309 160. Section 378.1 of the Act is replaced by the following: Restriction on deposit taking 378.1 (1) A retail association shall not accept deposits in Canada unless (a) it is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act; (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or (c) the order approving the commencement and carrying on of business by the retail association authorizes it to accept deposits solely in accordance with subsection (2). Deposits that fall below $150,000 (2) A retail association referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after it receives the authorization referred to in that paragraph, A/B ≤ 0.01 where A is the sum of all amounts each of which is the sum of all the deposits held by it at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and 2006-2007 Institutions B is the sum of all amounts each of which is the sum of all deposits held by it at the end of a day in those preceding 30 days and payable in Canada. Exchange rate (3) For the purpose of subsection (2), the rate of exchange to be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada is to be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act. Definition of “deposit” (4) For the purpose of subsection (2), “deposit” has the meaning that would be given to it by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits. Regulations (5) The Governor in Council may make regulations (a) prescribing the deposits referred to in subsection (4); and (b) prescribing terms and conditions with respect to the acceptance of those deposits. Notice before opening account or providing prescribed product 378.2 (1) Before a retail association referred to in paragraph 378.1(1)(b) or (c) opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the retail association shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and C. 6 Financial I (b) any other information that may be prescribed. Other notice (2) A retail association referred to in paragraph 378.1(1)(b) or (c) shall, in accordance with any regulations that may be made, (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the association are not insured by the Canada Deposit Insurance Corporation; and (b) include in its advertisements notices to inform the public that deposits with the retail association are not insured by the Canada Deposit Insurance Corporation. Regulations (3) The Governor in Council may make regulations (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and (b) respecting notices for the purpose of subsection (2). Deposits less than $150,000 378.3 (1) Subject to the regulations, a retail association referred to in paragraph 378.1(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. Meaning of “deposit” (2) In this section, “deposit” has the meaning assigned to that term by subsection 378.1(4). Regulations (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a retail association referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. Shared premises 378.4 (1) Subject to the regulations, no retail association referred to in paragraph 378.1(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member 2006-2007 Institutions institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the retail association. Limitation (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the retail association and the member institution carry on business with the public and to which the public has access. Adjacent premises (3) Subject to the regulations, no retail a ss oc i at io n re fe r re d t o in pa r ag ra p h 378.1(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the retail association, unless the retail association clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution. Regulations (4) The Governor in Council may make regulations (a) respecting the circumstances in which, and the conditions under which, a retail association referred to in paragraph 378.1(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and (b) respecting the circumstances in which, and the conditions under which, a retail association referred to in paragraph 378.1(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3). 2001, c. 9, s. 311 161. Subsection 382.1(1) of the Act is replaced by the following: Restriction on residential mortgages 382.1 (1) A retail association shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim C. 6 Financial I against the property, would exceed 80 per cent of the value of the property at the time of the loan. 2001, c. 9, s. 311 162. Subsection 383(2) of the French version of the Act is replaced by the following: Ordonnance de modification (2) Le surintendant peut, par ordonnance, obliger l’association à modifier ces principes selon les modalités qu’il précise dans l’ordonnance. 2001, c. 9, s. 313 163. Subsection 385.03(2) of the Act is replaced by the following: Provision of information (2) A retail association shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the retail association: (a) in the case of a deposit, (i) the name of the depositor in whose name the deposit is held, (ii) the recorded address of the depositor, (iii) the outstanding amount of the deposit, and (iv) the branch of the association at which the last transaction took place in respect of the deposit, and the date of that last transaction; and (b) in the case of an instrument, (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted; (ii) the recorded address of that person; (iii) the name of the payee of the instrument; (iv) the amount and date of the instrument; (v) the name of the place where the instrument was payable; and (vi) the branch of the association at which the instrument was issued, certified or accepted. 2006-2007 Institutions Copies of signature cards and signing authorities (2.1) A retail association shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of any signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada. 2001, c. 9, s. 313 164. (1) Subsection 385.04(1) of the Act is replaced by the following: Notice of unpaid amount 385.04 (1) Subject to subsections (1.1) to (3), a retail association shall send to each person to whom a deposit referred to in paragraph 385.03(1)(a) is payable, and to each person to whom or at whose request an instrument referred to in paragraph 385.03(1)(b) was issued, certified or accepted, a notice stating that the deposit or instrument remains unpaid. Where notice to be sent (1.1) The notice is to be sent to the person’s recorded address and, if the person has designated an information system for the receipt of electronic documents, to that designated information system. 2001, c. 9, s. 313 (2) The portion of subsection 385.04(2) of the Act before paragraph (a) is replaced by the following: When notice to be sent (2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period (3) Section 385.04 of the Act is amended by adding the following after subsection (2): Notification of transfer to the Bank of Canada (3) The notice to be sent during the month of January next following the end of the first nineyear period determined under paragraphs (2)(a) to (c), as the case may be, must also (a) indicate that in the month of January in the next year the unpaid amounts will be transferred to the Bank of Canada; and C. 6 Financial I (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument. 165. The Act is amended by adding the following after section 385.13: REGISTERED PRODUCTS Disclosure required concerning registered products 385.131 (1) Subject to subsection (2), a retail association shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the retail association provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service (a) information about all charges applicable to the registered product; (b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product; (c) information about the retail association’s procedures relating to complaints about the application of any charge applicable to the registered product; and (d) any other information that may be prescribed. Regulations (2) The Governor in Council may make regulations specifying the circumstances under which a retail association need not provide the information. Definition of “registered product” (3) In this section, “registered product” means a product that is defined to be a registered product by the regulations. 166. Section 385.22 of the Act is amended by adding the following after subsection (2): How procedures to be made available (3) A retail association shall make its procedures established under paragraph (1)(a) available (a) in the form of a brochure, at its branches where products or services are offered in Canada; 2006-2007 Institutions (b) on its websites through which products or services are offered in Canada; and (c) in written format to be sent to any person who requests them. Information on contacting Agency (4) A retail association shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). 167. The Act is amended by adding the following before section 385.25: Charges for prescribed products or services 385.241 A retail association shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court. 168. The Act is amended by adding the following after section 385.25: Regulations respecting the holding of funds 385.251 The Governor in Council may make regulations respecting the maximum period during which a retail association may hold funds in respect of specified classes of cheques or other instruments that are deposited into an account at a branch or prescribed point of service in Canada before permitting the customer in whose name the account is kept to access the funds. 2001, c. 9, s. 313 169. (1) Subsection 385.27(1) of the French version of the Act is replaced by the following: Avis de fermeture de bureau 385.27 (1) Sous réserve des règlements pris en vertu du paragraphe (5), l’association membre qui a au Canada un bureau dans lequel elle ouvre des comptes de dépôt de détail et procède à la sortie de fonds pour ses clients par l’intermédiaire d’une personne physique donne un préavis — conforme à ces règlements — de la fermeture du bureau ou de la cessation de l’une ou l’autre de ces activités. 2001, c. 9, s. 313 (2) Subsection 385.27(2) of the Act is replaced by the following: Pre-closure meeting (2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the member association to C. 6 Financial I convene and hold a meeting between representatives of the member association, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, alternative service delivery by the member association and measures to help the branch’s customers adjust to the closing or cessation of activities. 2001, c. 9, s. 313 170. Subparagraph 385.28(a)(iv) of the Act is replaced by the following: (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 171. Subsection 386(1) of the Act is amended by adding the following in alphabetical order: “closed-end fund” « fonds d’investissement à capital fixe » “closed-end fund” means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are (a) fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction; (b) traded on an exchange or an over-thecounter market; and (c) liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. 172. Section 388 of the Act is amended by adding the following after subsection (5): Application of other provision (6) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, an association may continue to control the entity or hold the substantial investment in the entity as though it Institutions 2006-2007 had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (7) If an association decides to exercise its right under subsection (6), the association is deemed to be acquiring the control or the substantial investment under the other provision. 2001, c. 9, s. 314 173. (1) Paragraph 390(1)(h) of the French version of the Act is replaced by the following: h) une entité qui est constituée en personne morale ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations bancaires, l’activité d’une société coopérative de crédit, des opérations d’assurance, la prestation de services fiduciaires ou le commerce de valeurs mobilières. 2001, c. 9, s. 314 (2) Paragraph 390(2)(e) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity”, “mutual fund entity” or “real property brokerage entity” in subsection 386(1); and (3) Section 390 of the Act is amended by adding the following after subsection (3): Exception (3.1) Despite paragraph (3)(a), an association may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, C. 6 Financial I (ii) any activity that an association is permitted to engage in under subsection 376(2), and (iii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 314 (4) Paragraphs 390(4)(b) and (c) of the French version of the Act are replaced by the following: b) s’agissant d’une entité dont les activités commerciales comportent une activité visée à l’alinéa (2)a) et qui exerce, dans le cadre de ses activités commerciales, des activités d’intermédiaire financier comportant des risques importants de crédit ou de marché, notamment une entité s’occupant d’affacturage, une entité s’occupant de crédit-bail ou une entité s’occupant de financement, elle ne peut le faire que si : (i) soit elle la contrôle ou en acquiert de la sorte le contrôle, au sens de l’alinéa 3(1)e), (ii) soit elle est autorisée par règlement pris en vertu de l’alinéa 396a) à acquérir ou à augmenter l’intérêt; c) s’agissant d’une entité dont les activités commerciales comportent une activité visée à l’alinéa (2)b), y compris une entité s’occupant de financement spécial, elle ne peut le faire que si : (i) soit elle la contrôle ou en acquiert de la sorte le contrôle, au sens de l’alinéa 3(1)e), (ii) soit elle est autorisée par règlement pris en vertu de l’alinéa 396a) à acquérir ou à augmenter l’intérêt, (iii) soit, sous réserve des modalités éventuellement fixées par règlement, les activités de l’entité ne comportent pas l’acquisition ou la détention du contrôle d’une entité visée aux alinéas a) ou b) ou d’une entité qui n’est pas une entité admissible, ni d’actions ou de titres de participation dans celle-ci. 2001, c. 9, s. 314 (5) Paragraph 390(5)(d) of the Act is replaced by the following: 2006-2007 Institutions (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 376(1)(g); (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 376(1)(h); or 2001, c. 9, s. 314 (6) Paragraph 390(7)(a) of the Act is replaced by the following: (a) the association is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the association would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b); 2001, c. 9, s. 314 174. Subsections 393(4) and (5) of the Act are replaced by the following: Temporary investment (4) If an association, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 390(5) if the association had acquired the control, or acquired or increased the substantial investment, under section 390, the association must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (5) If an association, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection C. 6 Financial I 390(6) if the association had acquired the control, or acquired or increased the substantial investment, under section 390, the Superintendent may, on application, permit the association to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 175. Subsection 394(1) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) all or any of the ownership interests in any entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates. 176. (1) Section 406 of the Act is amended by adding the following after subsection (1): Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. 2001, c. 9, s. 314 (2) Subsections 406(2) to (4) of the Act are replaced by the following: Exception (2) Subsection (1) does not apply in respect of a transaction or series of transactions between an association and a member of the association. (3) Subsection (1) does not apply in respect Exception of (a) an asset that is a debt obligation referred to in subparagraphs (b)(i) to (vi) of the definition “commercial loan” in subsection 386(1); (b) assets acquired or transferred under a transaction or series of transactions by an association with another financial institution 2006-2007 Institutions as a result of the association’s participation in one or more syndicated loans with that financial institution; (c) assets purchased or sold under a sale agreement that is approved by the Minister under section 233.5; (d) shares of, or ownership interests in, an entity for which the approval of the Minister under Part VIII or subsection 390(5) is required or the approval of the Superintendent under subsection 390(6) is required; (e) assets, other than real property, acquired or disposed of under an arrangement that has been approved by the Superintendent under subsection 418(3); or (f) assets acquired or disposed of with the approval of the Superintendent under subsection 418(3.1). 2001, c. 9, s. 314 (3) Paragraph 406(5)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the association prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the association if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 292(4), immediately before the transfer. 2001, c. 9, s. 314 (4) Subsection 406(7) of the Act is replaced by the following: Total value of all assets (7) For the purposes of subsection (1), the total value of all assets that the association or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the association prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the association if the annual statement had been prepared, C. 6 Financial I in accordance with the accounting principles referred to in subsection 292(4), immediately before the transfer of the asset. 177. Section 412 of the Act is amended by adding the following after subsection (3): Security of a related party (4) For the purposes of this Part, “security” of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time. 178. Section 418 of the Act is amended by adding the following after subsection (4): Approval under section 233.5 (5) An association may acquire any assets from, or dispose of any assets to, a related party of the association under a sale agreement that is approved by the Minister under section 233.5. 1997, c. 15, s. 152 179. Subsection 419(3) of the Act is replaced by the following: Exception (3) Despite subsection 413(2), an association is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by an entity that is controlled by the association and the business of which is limited to the activity referred to in paragraph 390(2)(c) and the transaction is on terms and conditions at least as favourable to the association as market terms and conditions, as defined in subsection 425(2). 2001, c. 9, s. 324 180. Sections 431.1 to 431.3 of the Act are repealed. 2001, c. 9, s. 327 2001, c. 9, s. 337 181. Section 435.2 of the Act is repealed. 182. Section 459.2 of the Act and the heading before it are replaced by the following: Institutions 2006-2007 APPROVALS Definition of “approval” 459.2 In sections 459.3 to 459.8, “approval” includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent. Matters to take into account — Minister 459.3 (1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including (a) national security; and (b) Canada’s international relations and its international legal obligations. Matters to take into account — Superintendent (2) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account (a) national security; and (b) Canada’s international relations and its international legal obligations. Minister — terms, conditions and undertakings 459.4 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it. Superintendent — terms, conditions and undertakings (2) In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate. C. 6 Revocation, suspension or amendment of approval — Minister 459.5 (1) The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including Financial I (a) national security; and (b) Canada’s international relations and its international legal obligations. Revocation, suspension or amendment of approval — Superintendent (2) The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and (a) national security; and (b) Canada’s international relations and its international legal obligations. Representations (3) Before taking any action under this section, the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Effect of noncompliance on approval 459.6 (1) Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates. Non-compliance (2) In addition to any other action that may be taken under this Act, in the case of noncompliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may (a) revoke, suspend or amend the approval to which the term, condition or undertaking relates; or (b) apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit. 2006-2007 Institutions Representations (3) Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Revocation, suspension or amendment (4) At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment. Multiple approval — other approvals 459.7 The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals. Exemption in relation to notices of intention 459.8 The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate. 2001, c. 9, s. 338 183. Paragraph 461.1(1)(c) of the Act is replaced by the following: (c) applications for exemptions under subsection 166.05(3); and 184. The Act is amended by adding the following after section 461.1: APPLICATIONS FOR CERTAIN APPROVALS Application for certain approvals 461.2 (1) An application for the prior written approval of the Minister in respect of paragraph 376(1)(g) or (h) or 390(5)(c), (d) or (d.1) must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require. C. 6 Certification of receipt of application (2) If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister. Incomplete application (3) If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it. Notice of decision (4) Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant Financial I (a) a notice approving the application; or (b) if the Minister is not satisfied that the application should be approved, a notice to that effect. Extension of period (5) If the Minister is unable to complete the consideration of an application within the 30day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice. Deemed approval (6) If the Minister does not send the notice referred to in subsection (4) or, if applicable, subsection (5), within the required period, the Minister is deemed to have approved the application. 185. Section 465 of the Act is amended by adding the following after subsection (1): False or misleading information (1.1) Every person who knowingly provides false or misleading information in relation to any matter under this Act or the regulations is guilty of an offence. Institutions 2006-2007 PART 3 1991, c. 47 AMENDMENTS TO THE INSURANCE COMPANIES ACT 186. (1) The definitions “policy in Canada” and “policyholder in Canada” in subsection 2(1) of the Insurance Companies Act are repealed. 1997, c. 15, s. 165(1) “foreign company” « société étrangère » “life company” « société d’assurancevie » “policy” « police » “property and casualty company” « société d’assurances multirisques » (2) The definitions “foreign company”, “life company”, “policy” and “property and casualty company” in subsection 2(1) of the Act are replaced by the following: “foreign company” means an entity that is the subject of an order made under subsection 574(1); “life company” means a company or a provincial company that is permitted to insure risks falling within the class of life insurance, other than a company or a provincial company that is also permitted to insure risks falling within any other class of insurance other than accident and sickness insurance, credit protection insurance and other approved products insurance; “policy” means any written contract of insurance or reinsurance whether contained in one or more documents and, in the case of insurance in a fraternal benefit society, any contract of insurance whether evidenced by a written document or not and any certificate of membership relating in any way to insurance, and includes any annuity contract and any endowment insurance contract; “property and casualty company” means a company or a provincial company that is not a life company or a marine company; (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “marine company” « société d’assurance maritime » “marine company” means a company that is incorporated for the sole purpose of insuring risks within the class of marine insurance; C. 6 Financial I 187. Section 9 of the Act is amended by adding the following after subsection (4): Contravention (5) A person contravenes a provision of Part VII or Division 7 of Part XVII if the person agrees to act jointly or in concert with one or more other persons in such a manner that a deemed single person contravenes the provision. 188. Subsection 12(6) of the Act is replaced by the following: Endowments (6) The class of life insurance includes the issuance of endowment insurance the funds of which are to be paid at a fixed or determinable future time if the person whose life is insured is then alive or at the person’s death if the person dies before that time. 2001, c. 9, s. 353; 2006, c. 4, s. 201 189. Section 21 of the Act is replaced by the following: Sunset provision 21. (1) Subject to subsections (2) and (3), companies and societies shall not carry on business, and foreign companies shall not carry on business in Canada, after the day that is the fifth anniversary of the day on which this section comes into force. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which companies and societies may continue to carry on business and foreign companies may continue to carry on business in Canada. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the threemonth period before that anniversary or on any day within an extension under subsection (2), companies and societies may continue to carry on business, and foreign companies may continue to carry on business in Canada, for 180 days after the first day of the first session of the next Parliament. 190. Paragraph 38(1)(f) of the Act is replaced by the following: Institutions 2006-2007 (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2001, c. 9, s. 358 Transferring to other federal Acts 191. Section 39 of the Act is replaced by the following: 39. (1) A company or society may (a) apply, under the Bank Act, for letters patent continuing the company or society as a bank or a bank holding company under that Act, or amalgamating and continuing the company or society as a bank or a bank holding company under that Act; (b) apply, with the approval in writing of the Minister, under the Canada Business Corporations Act for a certificate of continuance as a corporation under that Act; (c) apply, with the approval in writing of the Minister, under the Canada Cooperatives Act for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act; (d) apply, under the Cooperative Credit Associations Act, for letters patent continuing the company or society as an association under that Act, or amalgamating and continuing the company or society as an association under that Act; or (e) apply, under the Trust and Loan Companies Act, for letters patent continuing the company or society as a company under that Act, or amalgamating and continuing the company or society as a company under of that Act. Transferring to other federal Acts — societies (2) A society may also, with the approval in writing of the Minister, apply under the Canada Corporations Act, for letters patent creating it as a corporation under Part II of that Act. Conditions for approval (3) The approval referred to in paragraph (1)(b) or (c) or subsection (2) may be given only if the Minister is satisfied that (a) the company or society has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in C. 6 Financial I general circulation at or near the place where the head office of the company or society is situated, a notice of its intention to apply for the approval; (b) the company or society has discharged, or provided for the discharge of, all its policy liabilities; (c) the company or society will not, unless it is an entity referred to in paragraph 47(2)(b) or (c), use the word “assurance”, “assurances” or “insurance” in its name after the certificate or letters patent are issued in respect of the company or society; and (d) the application has been authorized by a special resolution. Withdrawing application (4) If a special resolution authorizing the application for the certificate or letters patent so states, the directors of a company or society may, without further approval of the shareholders, policyholders entitled to vote or members, withdraw the application before it is acted on. Restriction on other transfers (5) A company or society may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1) or (2). Act ceases to apply 40. If a company or society applies for a certificate or letters patent referred to in section 39 in accordance with that section and the certificate is given or the letters patent are issued, this Act ceases to apply to the company or society as of the day the certificate or the letters patent take effect. 2001, c. 9, s. 360 192. Section 43 of the Act is replaced by the following: Affiliated company or society 43. Despite section 42, a company or society that is affiliated with another entity may, with the consent of that entity, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity. 193. Subsection 52(6) of the Act is replaced by the following: 2006-2007 Marine insurance Institutions (6) A company that is not a marine company may insure risks in the class of marine insurance without an order under subsection (1). 194. Section 54 of the Act is replaced by the following: No payments before order 54. Until an order approving the commencement and carrying on of business is made in respect of a company or society, the company or society shall not make any payment on account of incorporation or organization expenses out of moneys received from the paid-in capital of the company or society and interest on those moneys, except reasonable sums (a) for the remuneration of not more than two officers; (b) for the payment of costs related to the issue of shares; and (c) for the payment of clerical assistance, legal services, accounting services, office accommodation at one location, office expenses, advertising, stationery, postage and travel expenses. 2005, c. 54, s. 220(2) 195. Subsection 66(5) of the English version of the Act is replaced by the following: Material to Superintendent (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. 196. Subsection 75(2) of the Act is replaced by the following: Restrictions on purchase and redemption (2) A company shall not make any payment to purchase or redeem any shares issued by it if there are reasonable grounds for believing that the company is, or the payment would cause the company to be, in contravention of subsection 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3). 197. The Act is amended by adding the following after section 76: C. 6 Exception — conditions before acquisition 76.01 (1) A company may permit any of its subsidiaries to acquire shares of the company through the issuance of those shares by the company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. Conditions after acquisition (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. Non-compliance with conditions (3) If a company permits any of its subsidiaries to acquire shares of the company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 16 and subsection 70(2), the company must comply with the prescribed requirements. Financial I 198. (1) Subsection 79(2) of the Act is replaced by the following: Limitation (2) A company shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the company is, or the reduction would cause the company to be, in contravention of subsection 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3). (2) Section 79 of the Act is amended by adding the following after subsection (4): Exception (4.1) Subsection (4) does not apply if (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 331(4); and (b) there is to be no return of capital to shareholders or policyholders as a result of the reduction. 199. (1) Subsections 83(1) and (2) of the Act are replaced by the following: 2006-2007 Institutions Declaration of dividend 83. (1) The directors of a company may declare and a company may pay a dividend by issuing fully paid shares of the company or options or rights to acquire fully paid shares of the company and, subject to subsection (4), the directors of a company may declare and a company may pay a dividend in money or property, and, if a dividend is to be paid in money, the dividend may be paid in a currency other than the currency of Canada. Notice to Superintendent (2) The directors of a company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 2001, c. 9, s. 369 (2) Subsections 83(4) and (5) of the Act are replaced by the following: When dividend not to be declared (4) The directors of a company shall not declare and a company shall not pay a dividend if there are reasonable grounds for believing that the company is, or the payment would cause the company to be, in contravention of subsection 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3). 200. Clause 143(1)(c)(ii)(B) of the French version of the Act is replaced by the following: (B) soit le lieu du siège de la société pour un lieu dans une autre province, 2001, c. 9, s. 376 201. Subsection 167(2) of the Act is replaced by the following: Residency requirement (2) At least one half of the directors of a company that is a subsidiary of a foreign institution or of a prescribed holding body corporate of a foreign institution and a majority of the directors of any other company must be, at the time of each director’s election or appointment, resident Canadians. 202. Paragraph 229(2)(c) of the Act is replaced by the following: (c) there are no reasonable grounds for believing that the conversion would cause the company to be in contravention of subsection 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3); C. 6 Financial I 203. Paragraph 233(a) of the Act is replaced by the following: (a) the purchase or other acquisition of shares would not cause the company to be in contravention of subsection 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3); and 2001, c. 9, s. 388(2) 204. Subsection 238(3) of the Act is replaced by the following: Effective date of by-law (3) A by-law, or an amendment to or a repeal of a by-law, made under subsection (1) is not effective until it is confirmed or confirmed as amended by the shareholders and policyholders under subsection (2) and, in the case of a by-law respecting a change to the name of the company, approved by the Superintendent. Letters patent (4) If the name of a company or the province in Canada in which the head office of the company is situated is changed under this section, the Superintendent may issue letters patent to amend the company’s incorporating instrument accordingly. Effect of letters patent (5) Letters patent issued under subsection (4) become effective on the day stated in the letters patent. 1997, c. 15, s. 220(E) 205. Section 247 of the Act is replaced by the following: Approval of agreement by Superintendent 247. (1) An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 248(5) by the shareholders, policyholders or members of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. Report of independent actuary (2) An amalgamation agreement submitted to the Superintendent for approval must be accompanied by the report of an independent actuary on the agreement. 206. Paragraph 253(1)(f) of the Act is replaced by the following: (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. Institutions 2006-2007 1997, c. 15, s. 226(2)(E) 207. (1) Paragraphs 254(1)(a) to (c) of the Act are replaced by the following: (a) cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken under its policies; or (b) sell all or substantially all of its assets. 1997, c. 15, ss. 226(3), (4)(F), (5) and (6); 2001, c. 9, s. 393(2) (2) Subsections 254(2) to (3) of the Act are replaced by the following: Approval of the Minister (2) A company or society may, with the approval of the Minister, (a) cause itself to be reinsured, on an assumption basis, against all or substantially all of the risks undertaken under its policies, by one or more of the following entities: (i) a company or society, (ii) a foreign company that, in Canada, reinsures those risks, (iii) a body corporate incorporated or formed by or under the laws of a province, if the Superintendent has entered into satisfactory arrangements concerning the reinsurance with either or both of the body corporate and the appropriate official or public body responsible for the supervision of the body corporate, or (iv) an entity that is authorized to reinsure those risks, if the risks were undertaken outside Canada by the company or society; or (b) sell all or substantially all of its assets. Approval of the Superintendent (2.01) A company or society may, with the approval of the Superintendent, cause itself to be reinsured, on an assumption basis, against less than substantially all of the risks undertaken under its policies, by one or more of the following entities: (a) a company or society; (b) a foreign company that, in Canada, reinsures those risks; C. 6 Financial I (c) a body corporate incorporated or formed by or under the laws of a province, if the Superintendent has entered into satisfactory arrangements concerning the reinsurance with either or both of the body corporate and the appropriate official or public body responsible for the supervision of the body corporate; or (d) an entity that is authorized to reinsure those risks, if the risks were undertaken outside Canada by the company or society. Prescribed transactions (2.1) The approval of the Minister or Superintendent is not required for a prescribed transaction or a transaction in a prescribed class of transactions. Procedure (3) The company or society must, at least 30 days before it applies for the Minister’s or Superintendent’s approval, publish a notice in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the company or society is situated stating the day on or after which it will apply. 1997, c. 15, s. 226(7) (3) Subsection 254(5) of the Act is replaced by the following: Report of independent actuary (4.1) An application for approval under paragraph (2)(a) must, if the Superintendent so requires, be accompanied by the report of an independent actuary on the proposed reinsurance agreement. Inspection (5) If a company or society publishes a notice referred to in subsection (3), it must make the agreement for the transaction that the Minister or Superintendent is asked to approve available at its head office for the inspection of its shareholders, policyholders and members for at least 30 days after the publication of the notice and must provide a copy of the agreement to any shareholder, policyholder or member who requests one by writing to the head office of the company or society. 1997, c. 15, s. 226(7) (4) Subsection 254(6) of the English version of the Act is replaced by the following: 2006-2007 Institutions Superintendent may shorten periods (6) If the Superintendent is of the opinion that it is in the best interests of a group of policyholders affected by the transaction that the Minister or the Superintendent is asked to approve, the Superintendent may shorten the periods of 30 days referred to in subsections (3) and (5). 1997, c. 15, s. 227 208. Sections 255 and 256 of the Act are replaced by the following: Taking of effect of approval 255. A transaction referred to in subsection 254(2) or (2.01) has no effect until it has been approved by the Minister or the Superintendent, as the case may be. 1997, c. 15, s. 227 209. (1) Subsection 257(1) of the Act is replaced by the following: Shareholder and policyholder approval 257. (1) A company or society proposing to transfer all or substantially all of its policies, to cause itself to be reinsured, on an assumption basis, against all or substantially all of the risks undertaken under its policies, or to sell all or substantially all of its assets shall submit the proposal for approval to a meeting of the shareholders and policyholders who are entitled to vote, or to a meeting of members, and, subject to subsection (3), to the holders of each class or series of shares. Notice to Superintendent (1.1) A company or society proposing to transfer all or substantially all of its policies must give notice of the proposal to the Superintendent. Information (1.2) After receiving the notice, the Superintendent may direct the company or society to provide its shareholders, policyholders and members with any information that the Superintendent may require. 1997, c. 15, s. 227 (2) Subsection 257(7) of the Act is replaced by the following: Application to Minister (7) Except in the case of a transaction to transfer all or substantially all of a company’s or society’s policies, the company or society shall, within three months after the approval of the transaction in accordance with subsection (5), apply to the Minister for approval of the transaction, unless the transaction is abandoned in accordance with subsection (6). C. 6 1997, c. 15, s. 227 210. Section 258 of the Act is replaced by the following: Regulations 258. The Governor in Council may, for the purposes of section 254 or 257, make regulations respecting the circumstances in which companies or societies are deemed to be causing themselves to be reinsured, on an assumption basis, against risks undertaken under their policies. Financial I 211. Paragraph 261(1)(d) of the English version of the Act is replaced by the following: (d) particulars of any authorizations, conditions and limitations established by the Superintendent under subsection 58(1) or (2) or 59(1) that are from time to time applicable to the company; and 2005, c. 54, s. 267 212. Section 268 of the Act is replaced by the following: Requirement to maintain copies and process information in Canada 268. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a company to maintain, in another country, copies of records referred to in section 261 or of its central securities register or for a company to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a company to do any of those activities in another country — the Superintendent shall direct the company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. Company to comply (2) A company shall without delay comply with any direction issued under subsection (1). 1991, c. 47, par. 758(c) 213. Section 323 of the Act is replaced by the following: Trustee qualifications 323. A trustee, or at least one of the trustees if more than one is appointed, must be 2006-2007 Institutions (a) a trust company pursuant to subsection 57(2) of the Trust and Loan Companies Act; or (b) a body corporate that is incorporated by or under an Act of the legislature of a province and authorized to carry on business as a trustee. 214. Subsection 346(3) of the Act is replaced by the following: Reliance on actuary (3) An auditor of a company may, in conducting the examination referred to in subsection (1), use the valuation by the actuary of the company, or by any other actuary, of (a) the actuarial and other policy liabilities of the company as at the end of a financial year; and (b) the increase in the actuarial liabilities of the company for a financial year. Actuarial practices (4) A valuation by an actuary other than the actuary of the company may be used only if it was done in accordance with generally accepted actuarial practice and with any changes that may have been determined by the Superintendent and by following any additional directions that may have been made by the Superintendent. 215. (1) The portion of subsection 407(1) of the French version of the Act before paragraph (a) is replaced by the following: Restrictions à l’acquisition 407. (1) Il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une société ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas : (2) Subsection 407(2) of the Act is replaced by the following: Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of a company, the entity is deemed to be acquiring a significant interest in that class of shares of the company through an acquisition for which the approval of the Minister is required under subsection (1). C. 6 1997, c. 15, s. 242 216. Section 407.1 of the Act is replaced by the following: No acquisition of control without approval 407.1 (1) No person shall acquire control, within the meaning of paragraph 3(1)(d), of a company without the approval of the Minister. Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a company, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the company through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 416(2) 217. Subsection 441(1.1) of the English version of the Act is replaced by the following: Additional activities — life companies (1.1) A life company may engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services. 1997, c. 15, s. 248 218. Sections 445 and 446 of the Act are replaced by the following: No new composite companies 445. The Superintendent may not make or vary an order approving the commencement and carrying on of business by a company if the company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, credit protection insurance and other approved products insurance. Financial I 219. Section 448 of the Act is replaced by the following: Annuities and endowment insurance restricted to life companies 448. Property and casualty companies and marine companies shall not issue annuities or policies of endowment insurance. 1996, c. 6, s. 79 220. (1) Subsections 449(1) and (1.1) of the Act are replaced by the following: 2006-2007 Institutions Compensation association 449. (1) Every company that is insuring risks that fall within a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance. Designation limitation (1.1) A compensation association shall not be designated under subsection (1) unless, in the opinion of the Minister, it has the authority to levy an assessment on each of its members. (2) Paragraph 449(2)(c) of the Act is replaced by the following: (c) in respect of the insurance against the loss of, or damage to, property caused by fire, by lightning, by an explosion due to ignition, by smoke or by breakage of or leakage from a sprinkler, from other fire protection equipment or from another fire protection system by a company that is a member of the Fire Mutuals Guarantee Fund; or 221. Section 450 of the Act is replaced by the following: Segregated funds restricted to life companies 450. A property and casualty company, or a marine company, shall not issue policies — or accept or retain, on the direction of a policyholder or beneficiary, policy dividends or bonuses, or policy proceeds that are payable on the surrender or maturity of the policy or on the death of the person whose life is insured — if the liabilities of the company in respect of the policies or the amounts accepted or retained vary in amount depending on the market value of a fund consisting of a specified group of assets. 222. Section 453 of the Act is replaced by the following: Transfers from segregated funds 453. A company may return the current value of an amount transferred under section 452 to the account from which the amount was transferred. 1997, c. 15, s. 251 223. Section 461 of the Act is replaced by the following: Payments to shareholders from participating account 461. A company that has share capital may, from a participating account maintained pursuant to section 456, in a financial year and at any time within six months after the end of that financial year, make a payment to its share120 C. 6 Financial I holders, or transfer an amount to an account (other than a participating shareholder account as defined in section 83.01) from which a payment can be made to its shareholders, if (a) the aggregate of the amounts so paid or transferred in that financial year does not exceed the percentage of the portion of the profits of the participating account that is determined by the directors as the portion to be distributed for that financial year to the shareholders and participating policyholders, which percentage shall not exceed the number, expressed as a percentage, that is the aggregate of (i) 10 multiplied by the lesser of (A) the sum of the opening balances for that financial year of all participating accounts of the company, and (B) two hundred and fifty million dollars, (ii) 7.5 multiplied by the amount, if any, by which the lesser of (A) the sum of the opening balances for that financial year of all participating accounts of the company, and (B) five hundred million dollars exceeds two hundred and fifty million dollars, (iii) 5 multiplied by the amount, if any, by which the lesser of (A) the sum of the opening balances for that financial year of all participating accounts of the company, and (B) one billion dollars exceeds five hundred million dollars, and (iv) 2.5 multiplied by the amount, if any, by which the sum of the opening balances for that financial year of all participating accounts of the company exceeds one billion dollars, divided by the sum of the opening balances for that financial year of all the participating accounts; 2006-2007 Institutions (b) the company pays dividends or bonuses to its participating policyholders out of the profits of the participating account for that financial year in accordance with its dividend or bonus policy established pursuant to paragraph 165(2)(e); and (c) the payment to the shareholders, or the transfer to the account from which a payment can be made to the shareholders, would not, in the opinion of the actuary of the company, materially affect the company’s ability to continue to comply with its dividend or bonus policy or to maintain the levels or rates of dividends or bonuses paid to the company’s participating policyholders. 1997, c. 15, s. 252 224. (1) Paragraph 462(a) of the French version of the Act is replaced by the following: a) les sommes virées en vertu des articles 461 et 463; 1997, c. 15, s. 252 (2) Paragraph 462(c) of the Act is replaced by the following: (c) transfers, with the approval of the Superintendent, of amounts that can be reasonably attributed to sources not related to the participating policies in respect of which the account is or has been maintained, if the transfer would not, in the opinion of the actuary of the company, materially affect the company’s ability to continue to comply with its dividend or bonus policy, maintain the levels or rates of dividends or bonuses paid to the company’s participating policyholders or meet the company’s obligations under its participating policies; and 225. Subsection 464(3) of the Act is replaced by the following: When dividend not to be declared (3) The directors of a company shall not declare a dividend, bonus or other benefit to participating policyholders if there are reasonable grounds for believing that the company is, or the payment or other satisfaction would cause the company to be, in contravention of subsec122 C. 6 Financial I tion 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3). 226. Subsection 465(1) of the Act is replaced by the following: Regulations 465. (1) The Governor in Council may make regulations limiting the extent to which a company may cause itself to be reinsured against risks undertaken under its policies. 227. Subsection 469(1) of the Act is replaced by the following: Restriction on residential mortgages 469. (1) A company shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 1997, c. 15, s. 255; 2001, c. 9, s. 422 228. The heading before section 476 and sections 476 to 478 of the Act are replaced by the following: RESTRICTIONS SPECIFIC TO PROPERTY AND CASUALTY COMPANIES AND MARINE COMPANIES General restriction 476. A property and casualty company, or a marine company, shall not, and shall not permit its prescribed subsidiaries to, enter into any debt obligation, within the meaning assigned to that expression by the regulations, or issue any share, other than a common share, if as a result the aggregate of the total debt obligations of the company, determined in the prescribed manner, and the stated capital of the company would exceed the prescribed percentage of the total assets of the company. Restriction on guarantees 477. (1) A property and casualty company, or a marine company, shall not guarantee on behalf of any person the payment or repayment of any sum of money unless the person on whose behalf the company has undertaken to guarantee the payment or repayment is a subsidiary of the company and has an unqual2006-2007 Institutions ified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed. Saving (2) Subsection (1) does not prevent a property and casualty company, or a marine company, from insuring a risk falling within a class of insurance that is specified in the order of the Superintendent approving the commencement and carrying on of business by the company. Restriction on leasing 478. A property and casualty company, or a marine company, shall not engage in Canada in any financial leasing of personal property. 229. Section 484 of the English version of the Act is replaced by the following: Disclosing borrowing costs — advances 484. If regulations have been made respecting the manner in which the cost of borrowing is to be disclosed in respect of an advance on the security or against the cash surrender value of a policy, a company shall not make such an advance unless the cost of borrowing, as calculated and expressed in accordance with the regulations, has, in the prescribed manner, been disclosed by the company or otherwise as prescribed to the policyholder at or before the time when the advance is made. 2001, c. 9, s. 424(1) 230. (1) Subsection 486(1) of the French version of the Act is replaced by the following: Procédure d’examen des réclamations 486. (1) En ce qui concerne les réclamations, la société est tenue, d’une part, d’établir une procédure d’examen des réclamations de personnes qui lui ont demandé ou qui ont obtenu d’elle des produits ou services au Canada et, d’autre part, de désigner un dirigeant ou un employé pour la mise en oeuvre de cette procédure et un ou plusieurs autres pour le traitement des réclamations. (2) Section 486 of the Act is amended by adding the following after subsection (2): How procedures to be made available (3) A company shall make its procedures established under paragraph (1)(a) available (a) on its websites through which products or services are offered in Canada; and C. 6 Financial I (b) in written format to be sent to any person who requests them. Information on contacting Agency (4) A company shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). 2001, c. 9, s. 425 231. Subparagraph 489.2(a)(iv) of the Act is replaced by the following: (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 232. The Act is amended by adding the following after section 489.2: Provisions that do not apply 489.3 (1) Paragraphs 165(2)(f) and (g) and sections 479 to 489.2 do not apply in respect of a company if (a) the order approving the commencement and carrying on of business by the company restricts it to the reinsurance of risks within a class of insurance specified in the order; (b) it has provided the Commissioner with a declaration stating that it is not dealing with a prescribed group of consumers or carrying on any prescribed activity; and (c) after providing the declaration, it continues to not deal with that prescribed group. Notice if action taken that causes provisions to apply (2) The company must give notice to the Commissioner if it subsequently deals with the prescribed group referred to in the declaration. 233. Subsection 490(1) of the Act is amended by adding the following in alphabetical order: “closed-end fund” « fonds d’investissement à capital fixe » “closed-end fund” means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are (a) fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction; 2006-2007 Institutions (b) traded on an exchange or an over-thecounter market; and (c) liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. 234. Section 493 of the Act is amended by adding the following after subsection (5): Application of other provision (6) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a company may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (7) If a company decides to exercise its right under subsection (6), the company is deemed to be acquiring the control or the substantial investment under the other provision. 2001, c. 9, s. 426 235. (1) Paragraph 495(1)(j) of the French version of the Act is replaced by the following: j) une entité qui est constituée en personne morale ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations bancaires, l’activité d’une société coopérative de crédit, des opérations d’assurance, la prestation de services fiduciaires ou le commerce de valeurs mobilières. 2001, c. 9, s. 426 (2) Paragraph 495(2)(e) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 490(1); and C. 6 2001, c. 9, s. 426 (3) Subsection 495(4) of the Act is replaced by the following: Exception (3.1) Despite paragraph (3)(a), a life company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is Financial I (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a company is permitted to engage in under subsection 441(1.1), and (iii) the provision of investment counselling services and portfolio management services. Permitted investments — property and casualty companies and marine companies (4) Subject to subsections (5) to (8) and Part XI, a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), whose business is limited to one or more of the following: (a) engaging in any financial service activity or in any other activity that a property and casualty company, or a marine company, is permitted to engage in under subsection 440(2) or section 441 or 442, other than paragraph 441(1)(h); (b) acquiring or holding shares of, or ownership interests in, entities in which a property and casualty company, or a marine company, is permitted under this Part to hold or acquire; (c) engaging in the provision of any services exclusively to any or all of the following, so long as the entity is providing those services to the company or any member of the company’s group: (i) the company, 2006-2007 Institutions (ii) any member of the company’s group, (iii) any entity that is primarily engaged in the business of providing financial services, (iv) any permitted entity in which an entity referred to in subparagraph (iii) has a substantial investment, or (v) any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed; (d) engaging in any activity that a property and casualty company, or a marine company, is permitted to engage in, other than an activity referred to in paragraph (a) or (e), that relates to (i) the promotion, sale, delivery or distribution of a financial product or financial service that is provided by the company or any member of the company’s group, or (ii) if a significant portion of the business of the entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services; (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 490(1); and (f) engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed. 2001, c. 9, s. 426 (4) The portion of subsection 495(5) of the Act before paragraph (c) is replaced by the following: C. 6 Restriction — property and casualty companies and marine companies (5) A property and casualty company, or a marine company, may not acquire control of, or acquire or increase a substantial investment in, an entity whose business includes any activity referred to in any of paragraphs (4)(a) to (e) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include Financial I (a) activities that a company is not permitted to engage in under any of sections 466, 469 and 478; (b) dealing in securities, except as may be permitted under paragraph (4)(e) or as may be permitted to a company under paragraph 440(2)(b); (5) Section 495 of the Act is amended by adding the following after subsection (5): Exception (5.1) Despite paragraph (5)(a), a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, and (ii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 426 (6) Paragraph 495(7)(d) of the Act is replaced by the following: (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 441(1)(d); (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 441(1)(d.1); or 2006-2007 2001, c. 9, s. 426 Institutions (7) Paragraph 495(9)(a) of the Act is replaced by the following: (a) the company is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b) or (4)(b); 2001, c. 9, s. 426 236. Subsections 498(4) and (5) of the Act are replaced by the following: Temporary investment (4) If a company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 495(7) if the company had acquired the control, or acquired or increased the substantial investment, under section 495, the company must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (5) If a company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 495(8) if the company had acquired the control, or acquired or increased the substantial investment, under section 495, the Superintendent may, on application, permit the company to retain control of the entity or to continue to hold C. 6 Financial I the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 237. Subsection 499(1) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) all or any of the ownership interests in any entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates. 2001, c. 9, s. 426 238. Section 505 of the Act and the heading before it are replaced by the following: CONSUMER AND COMMERCIAL LENDING BY PROPERTY AND CASUALTY COMPANIES AND MARINE COMPANIES Lending limit — property and casualty companies and marine companies 505. A property and casualty company, or a marine company, shall not, and shall not permit its prescribed subsidiaries to, make or acquire a commercial loan or a loan to a natural person, or acquire control of a permitted entity that holds commercial loans or loans to natural persons, if the aggregate value of all such loans held by the company and its prescribed subsidiaries exceeds, or the making or acquisition of the loan or the acquisition of control of the permitted entity would cause the aggregate value of all such loans held by the company and its prescribed subsidiaries to exceed, the prescribed percentage of the total assets of the company. 2001, c. 9, s. 426 239. (1) Subsections 512(2) and (3) of the Act are replaced by the following: Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. Institutions 2006-2007 (2) Subsection (1) does not apply in respect Exception of (a) an asset that is a debt obligation referred to in subparagraphs (b)(i) to (v) of the definition “commercial loan” in subsection 490(1); (b) assets that are acquired or transferred under a transaction or series of transactions by a company with another financial institution as a result of the company’s participation in one or more syndicated loans with that financial institution; (c) assets that are acquired or transferred under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01); (d) shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 495(7) is required or the approval of the Superintendent under subsection 495(8) is required; (e) assets that are acquired or transferred under a transaction approved by the Minister under subsection 715(1) of this Act or subsection 678(1) of the Bank Act; (f) assets, other than real property, acquired or disposed of under an arrangement that has been approved by the Superintendent under subsection 527(3); or (g) assets acquired or disposed of with the approval of the Superintendent under subsection 527(4). 2001, c. 9, s. 426 (2) Paragraph 512(4)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the company prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer. C. 6 2001, c. 9, s. 426 (3) Subsection 512(6) of the Act is replaced by the following: Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the company or any of its subsidiaries has transferred during the 12month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer of the asset. 1996, c. 6, s. 82; 1997, c. 15, s. 275 240. Section 516 of the Act is repealed. Financial I 241. Paragraph 519(2)(a) of the Act is replaced by the following: (a) assets of a segregated fund maintained pursuant to section 451 if (i) all the policies in respect of which the fund is maintained are held by one person or all the amounts in respect of which it is maintained are retained on the direction of one person, or (ii) the assets of the fund reflect the securities upon which a generally recognized market index is based and the weighting of those securities in that index; 242. (1) Paragraph 520(1)(e) of the Act is replaced by the following: (e) causing the company to be reinsured by the related party against any risk undertaken by the company under its policies. (2) Section 520 of the Act is amended by adding the following after subsection (3): Security of a related party (4) For the purposes of this Part, “security” of a related party includes an option, transferable by delivery, to demand delivery of a Institutions 2006-2007 specified number or amount of shares of the related party at a fixed price within a specified time. 243. Section 523 of the Act is replaced by the following: Reinsurance 523. (1) A company may, subject to subsection (2) and to Division III of Part VI, cause itself to be reinsured by a related party of the company against any risk undertaken by the company under its policies. Restriction re related parties (2) Except with the approval of the Superintendent, a company may cause itself to be reinsured in respect of risks undertaken under its policies by a related party of the company only if the related party is (a) a company; or (b) a foreign company that, in Canada, reinsures those risks. Exception (3) The approval of the Superintendent under subsection (2) is not required if the reinsurance transaction was approved by the Minister or the Superintendent under subsection 254(2) or (2.01). 244. Section 524 of the French version of the Act is replaced by the following: Risques d’un apparenté 524. La société peut, sous réserve de la section III de la partie VI, réassurer les risques acceptés par un apparenté. 245. Section 527 of the Act is amended by adding the following after subsection (5): Approval under subsection 254(2) or (2.01) (6) A company or society may acquire any assets from, or dispose of any assets to, a related party of the company under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01). 1997, c. 15, s. 279 246. Subsection 528(3) of the Act is replaced by the following: Exception (3) Despite subsection 521(2), a company is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by an entity that is controlled by the company and the business of which is limited to the activity referred to in paragraph 495(2)(c) and the transaction is on C. 6 Financial I terms and conditions at least as favourable to the company as market terms and conditions, as defined in subsection 534(2). 2001, c. 9, s. 429 247. (1) The description of B in subsection 528.3(1) of the Act is replaced by the following: B is the total value of all assets that the company directly or indirectly acquired from, or directly or indirectly transferred to, that related party in the 12 months ending immediately before the acquisition or transfer, other than assets acquired by or transferred to the company under transactions permitted by section 522; and 2001, c. 9, s. 429 (2) The portion of subsection 528.3(3) of the Act before paragraph (b) is replaced by the following: Exception (3) The approval of the Superintendent under this section is not required if (a) the company acquires or transfers assets under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01); 1997, c. 15, s. 285 248. Subsection 542.03(4) of the Act is replaced by the following: Transfers from segregated funds (4) A society may return the current value of an amount transferred under subsection (3) to the account from which the amount was transferred. 1997, c. 15, s. 285 249. Subsection 542.04(1) of the Act is replaced by the following: Regulations 542.04 (1) The Governor in Council may make regulations limiting the extent to which a society may cause itself to be reinsured against risks undertaken under its policies. 1997, c. 15, s. 285 250. Section 542.05 of the Act is replaced by the following: Restriction on issuance of annuities and endowment insurance 542.05 A society may issue annuities or policies of endowment insurance only if it is authorized to insure risks within the class of life insurance. 1997, c. 15, s. 285 251. Subsection 542.06(1) of the Act is replaced by the following: 2006-2007 Residential mortgages restriction Institutions 542.06 (1) A society shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving the property, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 252. Section 552 of the Act is amended by adding the following after subsection (4): Application of other provision (5) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a society may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (6) If a society decides to exercise its right under subsection (5), the society is deemed to be acquiring the control or the substantial investment under the other provision. 2001, c. 9, s. 437 253. (1) Paragraph 554(1)(c) of the French version of the Act is replaced by the following: c) une entité qui est constituée ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations d’assurance. 2001, c. 9, s. 437 (2) Paragraph 554(2)(e) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 490(1); and (3) Section 554 of the Act is amended by adding the following after subsection (3): C. 6 Exception (3.1) Despite paragraph (3)(a), a society may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is Financial I (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a company is permitted to engage in under subsection 441(1.1), and (iii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 437 254. Subsection 557(4) of the Act is replaced by the following: Temporary investment (4) If a society, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 554(5) if the society had acquired the control, or acquired or increased the substantial investment, under section 554, the society must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. 255. (1) Section 569 of the Act is amended by adding the following after subsection (1): Institutions 2006-2007 Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. 2001, c. 9, s. 440 (2) The portion of subsection 569(2) of the Act before paragraph (a) is replaced by the following: (2) Subsection (1) does not apply in respect Exception of 2001, c. 9, s. 440 (3) The portion of subsection 569(3) of the Act before paragraph (b) is replaced by the following: Exception (3) The approval of the Superintendent under this section is not required if (a) the society sells or transfers assets under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01); 2001, c. 9, s. 440 (4) Paragraph 569(4)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the society prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the society if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer. 2001, c. 9, s. 440 (5) Subsection 569(6) of the Act is replaced by the following: Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the society or any of its subsidiaries has transferred during the 12month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the society prepared before the transfer of the asset or, if the value of any of those assets is not C. 6 Financial I reported in that annual statement, as it would be reported in the annual statement of the society if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer of the asset. 256. (1) The definitions “foreign life company” and “foreign property and casualty company” in section 571 of the Act are replaced by the following: “foreign life company” « société d’assurance-vie étrangère » “foreign property and casualty company” « société d’assurances multirisques étrangère » “foreign life company” means a foreign company that is authorized to insure risks that fall within the class of life insurance; “foreign property and casualty company” means a foreign company other than a foreign life company or a foreign marine company; (2) Section 571 of the Act is amended by adding the following in alphabetical order: “foreign entity” « entité étrangère » “foreign entity” means an entity incorporated or formed by or under the laws of a country other than Canada, and includes an association and an exchange; “foreign marine company” « société d’assurance maritime étrangère » “foreign marine company” means a foreign company that is authorized to solely insure risks within the class of marine insurance; 257. Section 572 of the Act is replaced by the following: Application — insurance business in Canada 572. This Part applies only in respect of the insurance business in Canada of a foreign entity. Exception 572.1 Despite section 572, this Part does not apply in respect of the insurance against injury to persons or loss of or damage to property, or liability for such injury, loss or damage, caused by nuclear energy, including ionizing radiation and contamination by radioactive substances, to Institutions 2006-2007 the extent that, in the opinion of the Superintendent, that insurance is not available within Canada. 258. The heading before section 573 of the Act is replaced by the following: INSURANCE OF RISKS 1997, c. 15, s. 300(F) 259. (1) Subsections 573(1) to (4) of the Act are replaced by the following: Restriction on insuring of risks unless authorized 573. (1) A foreign entity shall not insure in Canada a risk unless it is authorized by order made under subsection 574(1). Restriction to specified classes of insurance (2) A foreign company shall not insure in Canada a risk unless the risk falls within a class of insurance that is specified in the order made under subsection 574(1) in respect of the foreign company. Restriction on issuance of annuities or endowment insurance (3) Unless authorized to insure in Canada risks falling within the class of life insurance, a foreign company shall not issue annuities or policies of endowment insurance in Canada. Transitional (4) A certificate of registry issued to a foreign entity under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act, or any other authorization, that had not expired or been withdrawn before June 1, 1992 is deemed to be an order made under subsection 574(1) and the foreign entity remains subject to any and all other conditions and limitations contained in the certificate or other authorization. (2) Subsection 573(5) of the French version of the Act is replaced by the following: Maintien des branches d’assurance (5) La branche d’assurance énoncée dans le certificat d’enregistrement ou l’autre autorisation de fonctionnement visés au paragraphe (4) est réputée être énoncée dans l’agrément autorisant la société étrangère à garantir au Canada des risques. C. 6 1996, c. 6, s. 84; 1997, c. 15, s. 301; 1999, c. 28, s. 125 260. Sections 574 and 575 of the Act are replaced by the following: Application for order 574. (1) On application by a foreign entity, the Superintendent may, with the approval of the Minister but subject to the other provisions of this Part, make an order approving the insuring in Canada of risks by the foreign entity. Reciprocal treatment (2) If the application is made by a foreign entity that is not controlled by a WTO Member resident, the Minister shall not approve the making of an order under subsection (1) unless the Minister is satisfied that treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign entity principally carries on business, either directly or through a subsidiary. Prohibited names 575. (1) An order made under subsection 574(1) may not provide for the use of a name that Financial I (a) is prohibited by an Act of Parliament; (b) is, in the opinion of the Superintendent, deceptively misdescriptive; (c) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trademark, trade name or corporate name of a body corporate, except where (i) the trade-mark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and (ii) consent to the use of the trade-mark, trade name or corporate name is signified to the Superintendent in any manner that the Superintendent may require; (d) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified; or 2006-2007 Institutions (e) is reserved under section 45 for a company or society or proposed company or society. Affiliated entity (2) Despite subsection (1), an order made under subsection 574(1) may provide for the use of a name that is the same or substantially the same as that of an entity with which the foreign entity is affiliated, within the meaning of subsection 6(2), if that other entity consents to the use of the name. Representations to Superintendent (3) If the Superintendent does not make an order for one of the reasons specified in subsection (1), he or she must, by a notice in writing to that effect, give the foreign entity and any other interested party an opportunity to make representations. 1996, c. 6, s. 84 261. Subsection 576(2) of the Act is repealed. 1996, c. 6, s. 84 262. Subsection 577(1) of the Act is replaced by the following: Direction to change of name 577. (1) If through inadvertence or otherwise a foreign company is permitted by an order made under subsection 574(1) to insure risks under a name that is prohibited by section 575, the Superintendent may direct the foreign company to change the name without delay. 263. Section 578 of the Act is replaced by the following: French, English or foreign form of name 578. (1) The name under which a foreign company is authorized to insure risks, as set out in the order made under subsection 574(1), may be in an English form, a French form, an English form and a French form, a combined English and French form or a form combining words in a language other than English or French with one of the forms specified in this subsection. Other name (2) Subject to subsections (3) and (4), a foreign company may carry on its insurance business in Canada under a name other than the name set out in the order made under subsection 574(1) in respect of the foreign company. Direction to change name (3) If a foreign company carries on its insurance business in Canada under a name other than a name set out in the order made under subsection 574(1) in respect of the foreign C. 6 Financial I company, the Superintendent may direct the foreign company not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 575(1)(a) to (e). Publication of name (4) A foreign company shall set out, or cause to be set out, its name and, if different, the name under which it is authorized to insure risks, in legible characters in all contracts, premium notices, applications for policies, policies, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the foreign company. Publication of statement (5) A foreign company shall set out or cause to be set out in legible characters in all premium notices, applications for policies and policies that are issued or made by or on behalf of the foreign company a statement that the document was issued or made in the course of its insurance business in Canada. Continuation of registered names (6) The name of a foreign company, as set out in a certificate of registry referred to in subsection 573(4), or in any other authorization, is deemed to be set out in an order of the Superintendent made under subsection 574(1) in respect of the foreign company. 1997, c. 15, s. 302 264. Subsections 579(1) and (2) of the Act are replaced by the following: Application 579. (1) An application for an order under subsection 574(1) must be filed with the Superintendent, together with the information, material and evidence that the Superintendent may require, including (a) documents relating to the constitution of the foreign entity; (b) a power of attorney to the chief agent appointed under subsection (3), in the form that the Superintendent may require; (c) a statement, in the form that the Superintendent may require, of the financial condition of the foreign entity and of the business of insurance undertaken by the foreign entity, and any additional statements 2006-2007 Institutions or information that the Superintendent may require as to its solvency and its ability to meet all of its obligations; (d) evidence satisfactory to the Superintendent that the foreign entity is authorized under the laws of the country where it is incorporated or formed to insure risks within each class of insurance in Canada that that foreign entity has applied to insure; (e) in the case of a foreign fraternal benefit society, (i) a report of an actuary appointed by the foreign fraternal benefit society, in the form that the Superintendent may require, on the results of an actuarial valuation made by the actuary, as of the preceding December 31 or as of any later date specified by the Superintendent, of each of the benefit funds maintained by the foreign fraternal benefit society, having regard to the prospective liabilities of and contributions to each fund, and (ii) the opinion of the actuary that the assets of the foreign fraternal benefit society applicable to each fund, taken at the value accepted by the Superintendent, together with the premiums, dues and other contributions to be received after the date of the valuation from the members according to the scale in force at the date of the valuation, are sufficient to provide for the payment at maturity of all of the obligations of the fund without deduction or abatement; and (f) a copy of the resolution respecting the investment and lending policies, standards and procedures that the foreign entity is to establish and adhere to in accordance with subsection 615(1). Contents of power of attorney (2) A power of attorney referred to in paragraph (1)(b) must expressly authorize the chief agent to receive all notices under the laws of Canada from the Minister or the Superintendent. 2005, c. 54, s. 299 265. Sections 580 and 581 of the Act are replaced by the following: C. 6 Publishing notice of intention 580. Before filing an application referred to in subsection 579(1), a foreign entity must, at least once a week for four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where its chief agency is to be situated if it is granted an order under subsection 574(1). Conditions for order 581. (1) The Superintendent shall not make an order under subsection 574(1) in respect of a foreign entity until it has been shown to the satisfaction of the Superintendent that all relevant requirements of this Act have been complied with and that the foreign entity has Financial I (a) vested in trust assets having a prescribed value; (b) appointed an actuary under section 623 and an auditor under section 633; and (c) established its chief agency. Conditions of order (2) The order may contain any conditions or limitations that are consistent with this Act and that the Superintendent considers appropriate. 266. Section 582 of the English version of the Act is replaced by the following: Permissible securities 582. (1) The assets of a foreign entity to be vested in trust are to consist of unencumbered securities of or guaranteed by Canada or a province. Other permissible securities (2) The assets of a foreign entity to be vested in trust may also consist of other securities at the accepted value and on the conditions established by the Superintendent. 267. Section 583 of the Act is replaced by the following: Contents of order 583. An order made under subsection 574(1) in respect of a foreign company must set out (a) the name of the foreign company and, if different, the name under which it is authorized to insure risks; (b) the day on which the order becomes effective; 2006-2007 Institutions (c) the classes of insurance risks that the foreign company is authorized to insure; and (d) the conditions or limitations that are consistent with this Act that are considered appropriate by the Superintendent. 268. Subsection 584(1) of the Act is replaced by the following: Public notice 584. (1) On the making of an order under subsection 574(1) in respect of a foreign company, the foreign company must publish a notice of the making of the order in a newspaper in general circulation at or near the place where its chief agency is located. 2005, c. 54, s. 300 269. The portion of section 585 of the Act before paragraph (a) is replaced by the following: Publication of list 585. Unless the regulations provide otherwise, the Superintendent shall cause to be published quarterly in the Canada Gazette a list of 270. Subsection 586(1) of the Act is replaced by the following: Variations 586. (1) In respect of an order made under subsection 574(1) in respect of a foreign company, the Superintendent may at any time, by further order, (a) specify additional classes of insurance risks that the foreign company is authorized to insure; (b) make the order subject to conditions or limitations that are consistent with this Act and that are considered appropriate by the Superintendent; or (c) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject. Representations (2) Before making any such further order, the Superintendent must give the foreign company an opportunity to make representations regarding that further order. C. 6 1997, c. 15, s. 303; 1999, c. 1, s. 9; 2001, c. 9, s. 442; 2005, c. 54, s. 301 271. Sections 587 and 587.1 of the Act are replaced by the following: Change of chief agent 587. (1) A foreign company that changes its chief agent shall, without delay after doing so, file with the Superintendent a further power of attorney appointing the new chief agent. Change of address (2) A foreign company that changes the address of its chief agency shall, within 15 days after doing so, send a notice of the change of address to the Superintendent. Restricted transactions 587.1 (1) Except in accordance with this section or an order made under subsection 678.6(1), a foreign company shall not cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken under its policies. Approval of the Superintendent (2) A foreign company may, with the approval of the Superintendent, cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken under its policies, by one or more of the following entities: Financial I (a) a company or society; (b) another foreign company that, in Canada, reinsures those risks; or (c) a body corporate incorporated or formed by or under the laws of a province, if the Superintendent has entered into satisfactory arrangements concerning the reinsurance with either or both of the body corporate and the appropriate official or public body responsible for the supervision of the body corporate. Prescribed transactions (3) The approval of the Superintendent is not required for a prescribed transaction or a transaction in a prescribed class of transactions. Procedure (4) The foreign company must, at least 30 days before it applies for the Superintendent’s approval, publish a notice in the Canada Gazette and in a newspaper in general circulation at or near the place where its chief agency is situated stating the day on or after which it will apply. 2006-2007 Institutions Information (5) If a foreign company publishes a notice referred to in subsection (4), the Superintendent may direct the foreign company to provide its policyholders with any information that the Superintendent may require. Report of independent actuary (6) An application for approval must, if the Superintendent so requires, be accompanied by the report of an independent actuary on the proposed reinsurance agreement. Inspection (7) If a foreign company publishes a notice referred to in subsection (4), it must make the agreement for the transaction that the Superintendent is asked to approve available at its chief agency for the inspection of its policyholders for at least 30 days after the publication of the notice and must provide a copy of the agreement to any policyholder who requests one by writing to the chief agency. Superintendent may shorten periods (8) If the Superintendent is of the opinion that it is in the best interests of a group of policyholders affected by the transaction that the Superintendent is asked to approve, the Superintendent may shorten the periods of 30 days referred to in subsections (4) and (7). Regulations (9) The Governor in Council may make regulations respecting the circumstances in which foreign companies are deemed to be causing themselves to be reinsured, on an assumption basis, against risks undertaken under their policies. Approval by Superintendent 587.2 A transaction referred to in subsection 587.1(2) has no effect until it has been approved by the Superintendent. Notice to Superintendent 587.3 (1) A foreign company proposing to transfer all or substantially all of its policies must give notice of the proposal to the Superintendent. Information (2) After receiving the notice, the Superintendent may direct the foreign company to provide its policyholders with any information that the Superintendent may require. 1997, c. 15, s. 304 272. Sections 588 and 589 of the Act are replaced by the following: C. 6 Restriction to reinsurance 588. (1) A foreign company may reinsure, but shall not otherwise insure, a risk falling within a class of insurance specified in the order made under subsection 574(1) in respect of the foreign company if the order limits the foreign company to the reinsurance of those risks. Continuation of certificate conditions (2) A condition that limits a foreign company to the reinsurance of risks falling within a class of insurance and that is contained in a certificate of registry issued under the Foreign Insurance Companies Act or under Part VIII of the Canadian and British Insurance Companies Act, or in any other authorization, that had not expired or been withdrawn before June 1, 1992 is deemed to be a condition in an order made under subsection 574(1) in respect of the foreign company. No new foreign composite companies 589. The Superintendent may not make or vary an order made under subsection 574(1) in respect of a foreign company if the foreign company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, credit protection insurance and other approved products insurance. Financial I 273. Subsection 590(1) of the Act is replaced by the following: Saving for existing foreign composite companies 590. (1) Despite section 589, subsections 573(4) and 588(2) permit a foreign company to which was issued under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act a certificate of registry or other authorization specifying both risks falling within the class of life insurance and risks falling within some other class of insurance, other than accident and sickness insurance, accident insurance, personal accident insurance and sickness insurance, to insure those risks. 274. (1) Subsection 591(1) of the Act is replaced by the following: Institutions 2006-2007 Compensation association 591. (1) Every foreign company that is insuring risks that fall within a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance. 1997, c. 15, s. 305 (2) Paragraphs 591(2)(c) and (d) of the Act are replaced by the following: (c) in respect of the insuring in Canada of risks against the loss of, or damage to, property caused by fire, by lightning, by an explosion due to ignition, by smoke or by breakage of or leakage from a sprinkler, from other fire protection equipment or from another fire protection system by a foreign company that is a member of the Fire Mutuals Guarantee Fund; or (d) to a foreign company that is a foreign fraternal benefit society or an exchange. 275. Paragraph 592(a) of the Act is replaced by the following: (a) insure risks under policies, or 1996, c. 6, par. 167(1)(h); 1997, c. 15, s. 306 276. Sections 594 and 595 of the Act are replaced by the following: Claims against segregated funds 594. A claim against a segregated fund maintained as required by section 593 under a policy or for an amount in respect of which the fund is maintained has priority over any other claim against the assets of that fund, including the claims referred to in section 161 of the Winding-up and Restructuring Act, except to the extent that the payment of that other claim is secured by a security interest in or on a specific, identifiable asset of the segregated fund. C. 6 Restriction of claims 595. The liability of a foreign company under a policy or for an amount in respect of which a segregated fund is maintained pursuant to section 593 Financial I (a) does not, except to the extent that the assets of the fund are insufficient to satisfy a claim for any minimum amount that the foreign company agrees to pay under the policy or in respect of the amount, give rise to a claim against any assets in Canada of the foreign company, other than the assets of that fund, but (b) to the extent that the assets of the fund are insufficient to satisfy such a claim, gives rise to a claim against the assets in Canada of the foreign company, other than the assets of that fund, that has the priority referred to in subsection 161(2) of the Winding-up and Restructuring Act. 277. Subsection 596(1) of the Act is replaced by the following: Regulations 596. (1) The Governor in Council may make regulations limiting the extent to which foreign companies may cause themselves to be reinsured against risks undertaken under their policies. 278. Subsection 597(1) of the Act is replaced by the following: Restriction re related parties 597. (1) Except with the approval of the Superintendent, a foreign company may cause itself to be reinsured, in respect of risks undertaken under its policies, by a related party of the foreign company only if the related party is (a) a company; or (b) a foreign company that, in Canada, reinsures those risks. 279. Section 602 of the Act is replaced by the following: Disclosing borrowing costs — advances 602. If regulations have been made respecting the manner in which the cost of borrowing is to be disclosed in respect of an advance on the security or against the cash surrender value of a policy, a foreign company shall not make such Institutions 2006-2007 an advance unless the cost of borrowing, as calculated and expressed in accordance with the regulations, has, in the prescribed manner, been disclosed by the foreign company or otherwise as prescribed to the policyholder at or before the time when the advance is made. 2001, c. 9, s. 444(1) Procedures for dealing with complaints 280. (1) Subsection 604(1) of the Act is replaced by the following: 604. (1) A foreign company shall (a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the foreign company; (b) designate one of its officers or employees in Canada, or an agent in Canada, to be responsible for implementing those procedures; and (c) designate one or more of its officers or employees in Canada, or agents in Canada, to receive and deal with those complaints. (2) Section 604 of the Act is amended by adding the following after subsection (2): How procedures to be made available (3) A foreign company shall make its procedures established under paragraph (1)(a) available (a) on its websites through which products or services are offered in Canada; and (b) in written format to be sent to any person who requests them. Information on contacting Agency (4) A foreign company shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). 2001, c. 9, s. 444(1) 281. Section 604.1 of the Act is replaced by the following: Obligation to be member of complaints body 604.1 In any province, if there is no law of the province that makes a foreign company subject to the jurisdiction of an organization that deals with complaints made by persons having requested or received products or services in the province from a foreign company, the foreign company shall be a member of an organization C. 6 Financial I in Canada that is not controlled by it and that deals with those complaints that have not been resolved to the satisfaction of the persons under procedures established under paragraph 604(1)(a). 2001, c. 9, s. 444(1) 282. Subsection 605(1) of the Act is replaced by the following: Information on contacting Agency 605. (1) A foreign company shall, in the prescribed manner, provide a person in Canada requesting or receiving a product or service in Canada from it with prescribed information on how to contact the Agency if the person has a complaint about an arrangement referred to in subsection 601(3), a payment, credit or charge card referred to in subsection 601(2), the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy, or about any other obligation of the foreign company under a consumer provision. 2001, c. 9, s. 445 283. Subparagraph 607.1(a)(iv) of the Act is replaced by the following: (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 284. The Act is amended by adding the following after section 607.1: Provisions that do not apply 607.2 (1) Sections 598 to 607.1 do not apply in respect of a foreign company if (a) the order made under subsection 574(1) in respect of the foreign company restricts it to the reinsurance of risks within a class of insurance specified in the order; (b) the foreign company has provided the Commissioner with a declaration stating that it is not dealing with a prescribed group of consumers; and (c) after providing the declaration, the foreign company continues to not deal with that prescribed group. Institutions 2006-2007 Notice if action taken that causes provisions to apply (2) The foreign company must give notice to the Commissioner if it subsequently deals with the prescribed group referred to in the declaration. 285. The heading before section 608 of the Act is replaced by the following: ADEQUACY OF ASSETS 2001, c. 9, s. 446 286. (1) Subsection 608(1) of the Act is replaced by the following: Adequacy of assets and appropriate forms of liquidity 608. (1) A foreign company shall maintain in Canada an adequate margin of assets over liabilities in respect of its insurance business in Canada as shown in the records it is required to maintain under section 647, and adequate and appropriate forms of liquidity, and shall comply with any regulations in relation to an adequate margin of assets over liabilities and adequate and appropriate forms of liquidity. 2001, c. 9, s. 446 (2) Subsection 608(4) of the Act is replaced by the following: Directives (4) Even though a foreign company is complying with regulations made under paragraph 610(1)(a) or guidelines made under subsection (3), the Superintendent may, by order, direct the foreign company to increase the margin of its assets over its liabilities that it is required to maintain in Canada or to provide additional liquidity in the forms and the amounts that the Superintendent requires. 287. (1) Subsection 609(1) of the Act is replaced by the following: Adequacy of assets 609. (1) A foreign company shall, in relation to each class of insurance risks that it is permitted to insure, maintain in Canada, in accordance with the regulations, assets the total value of which shall be determined in accordance with the regulations. 1996, c. 6, s. 88 (2) Subsection 609(2) of the Act is replaced by the following: Directives (2) Even though a foreign company is complying with regulations made under paragraph 610(1)(b) or guidelines made under subsection (1.1), the Superintendent may, by order, direct the foreign company to increase the assets that it is required to maintain in Canada. C. 6 Financial I 288. The heading before section 610 of the Act is repealed. 289. The heading before section 611 of the Act is repealed. 290. (1) Paragraph 612(1)(d) of the Act is replaced by the following: (d) a loan made in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 1997, c. 15, s. 315 (2) Subsection 612(2) of the Act is replaced by the following: Exception (2) Despite paragraphs (1)(a) and (c), a foreign company may vest in trust a substantial investment in an entity that is primarily engaged in (a) holding, managing or otherwise dealing with real property; or (b) holding shares or ownership interests in entities that are primarily engaged in any of the activities referred to in paragraph (a). 291. Section 614 of the Act is replaced by the following: Non-application 614. (1) Sections 612 and 615 to 620 do not apply in respect of assets of a foreign company held in relation to a segregated fund maintained pursuant to section 593. Exclusion of liabilities of segregated funds (2) A reference in sections 615 to 619 and in regulations made under section 620 to the assets in Canada or the liabilities in Canada of a foreign company does not include liabilities of the foreign company for the policies and amounts in respect of which a segregated fund is maintained pursuant to section 593. 292. Sections 616 to 619 of the Act are replaced by the following: Institutions 2006-2007 Lending limit — foreign life companies 616. (1) The total accepted value of commercial loans vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes. Lending limit — foreign composite companies (2) The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes. Consumer and Commercial Lending by Foreign Property and Casualty Companies and Foreign Marine Companies Lending limit — foreign property and casualty companies and foreign marine companies 617. The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada. Real Property Limit on total property interest — foreign life companies 618. (1) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes. Limit on total property interest — foreign composite companies (2) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes. C. 6 Limit on total property interest — foreign property and casualty companies and foreign marine companies (3) The total accepted value of interests in real property vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada. Financial I Equities Limit on equity acquisitions — foreign life companies 619. (1) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes. Limit on equity acquisitions — foreign composite companies (2) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of insurance, other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes. Limit on equity acquisitions — foreign property and casualty companies and foreign marine companies (3) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada. 293. The portion of section 622 of the Act before paragraph (a) is replaced by the following: Exception 622. A foreign company may vest in trust an asset if the asset was acquired through a transaction described in any of sections 524 to 533 and 294. The heading before section 633 of the Act is replaced by the following: Institutions 2006-2007 Interpretation Definitions 632.1 In sections 634 to 643, the expressions “firm of accountants” and “member” have the meanings assigned to those expressions by section 336. Appointment 295. Subsection 634(3) of the English version of the Act is replaced by the following: Notice of designation (3) Within 15 days after the appointment of a firm of accountants as auditor of a foreign company, the foreign company and the firm of accountants shall jointly designate a member of the firm who meets the qualifications described in subsection (1) to conduct the audit of the foreign company on behalf of the firm and the foreign company shall without delay notify the Superintendent in writing of the designation. 296. Subsection 643(2) of the Act is replaced by the following: Special examination (2) In respect of the insurance business in Canada of a foreign company, the Superintendent may, in writing, require that the auditor of the foreign company make a particular examination relating to the adequacy of the procedures adopted by the foreign company for the safety of its creditors and policyholders, or any other examination that, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent on the examination. 297. (1) Paragraph 647(1)(c) of the Act is replaced by the following: (c) with respect to its insurance business in Canada, records showing, for each customer of, or claimant under a policy issued by, the foreign company, the amount owing to the foreign company and the nature of the liabilities of the foreign company to the customer or claimant. (2) Subsection 647(2) of the English version of the Act is replaced by the following: Standards for record keeping (2) The records described in paragraphs (1)(b) and (c) shall be kept in a manner that enables the chief agent of the foreign company C. 6 Financial I to provide the Superintendent with the information required by section 664 and with the annual return required by subsection 665(2). 1996, c. 6, s. 90 and par. 167(1)(h) 298. The heading before section 650 and sections 650 to 655 of the Act are replaced by the following: RELEASE OF ASSETS Application for release of assets in Canada 650. A foreign company that proposes to cease to insure in Canada risks may apply to the Superintendent for the release of its assets in Canada. Conditions of release 651. Except as otherwise provided in this Act, the Superintendent may, by order, authorize the release of the assets in Canada of a foreign company if the foreign company (a) has, in respect of its policies, (i) obtained their surrender, (ii) transferred them, (iii) caused itself to be reinsured, on an assumption basis, against the risks undertaken under them, or (iv) otherwise discharged its liabilities under them, or provided for their discharge in a manner satisfactory to the Superintendent; (b) has discharged all of its obligations, other than liabilities under its policies, or provided for them in a manner satisfactory to the Superintendent; and (c) has provided the Superintendent with proof of the publication, for four consecutive weeks, in the Canada Gazette and in at least one newspaper of general circulation at or near the place where the chief agency of the foreign company is situated, of a notice that it will apply to the Superintendent for the release of its assets in Canada on a day specified in the notice, which must be at least six weeks after the date of the notice, and calling on its creditors and policyholders opposing that release to file their opposition with the Superintendent on or before the day. 2006-2007 Institutions Release of assets to liquidator 652. Despite sections 650 and 651, the assets in Canada of a foreign company that is in liquidation may, on the order of any court having jurisdiction under the Winding-up and Restructuring Act, be released to the liquidator. Revocation of order 653. The Superintendent may revoke the order made under subsection 574(1) in respect of a foreign company if in the opinion of the Superintendent the foreign company is not insuring in Canada risks, or if the foreign company does not (a) provide information to the Superintendent as required by section 664; (b) provide the annual return to the Superintendent as required by section 665; (c) permit the examination authorized by section 648 or 674; or (d) provide any information in its possession or control that is requested for the purpose of any such examination. Deemed revocation 654. An order made under subsection 574(1) in respect of a foreign company is deemed to be revoked when an order is made under section 651 or 652 authorizing the release of its assets in Canada. 299. Subsection 665(3) of the Act is repealed. 2001, c. 9, s. 460(1) 300. Paragraph 678.1(1)(b) of the Act is replaced by the following: (b) that is the subject of a direction made under section 676 or an order made under subsection 515(3). 2001, c. 9, s. 461 301. Subparagraph 678.2(1)(b)(iii) of the Act is replaced by the following: (iii) an order made under subsection 515(3), 2001, c. 9, s. 461 302. Subparagraph 678.3(1)(a)(i) of the Act is replaced by the following: C. 6 Financial I (i) have been specified by the Superintendent by way of conditions or limitations in respect of the order made under subsection 574(1) in respect of the foreign company, or 2001, c. 9, s. 461 303. Subparagraph 678.4(1)(b)(iv) of the Act is replaced by the following: (iv) a condition or limitation in respect of the order made under subsection 574(1) in respect of the foreign company, or 2001, c. 9, s. 462 304. Subsection 678.5(1) of the Act is replaced by the following: Direction to transfer policies or to reinsure risks — society 678.5 (1) If the circumstances described in any of paragraphs 679(1.1)(a) to (e) or (g) exist in respect of a society, the Superintendent may, by order, subject to any terms and conditions the Superintendent may specify, direct it to transfer all or any portion of its policies to, or cause itself to be reinsured, against all or any portion of the risks undertaken under its policies, by any company, society, foreign company or body corporate incorporated or formed by or under the laws of a province that is authorized to transact the classes of insurance to be so transferred or reinsured. 2001, c. 9, s. 462 305. Subsection 678.6(1) of the Act is replaced by the following: Direction to transfer policies or to reinsure risks — foreign fraternal benefit society 678.6 (1) If the circumstances described in any of paragraphs 679(1.2)(a) to (d) or (f) exist in respect of a foreign fraternal benefit society, the Superintendent may, by order, subject to any terms and conditions the Superintendent may specify, direct it to transfer all or any portion of its policies in respect of its insurance business in Canada to, or cause itself to be reinsured, against all or any portion of the risks undertaken under those policies, by any company, society, foreign company or body corporate incorpo2006-2007 Institutions rated or formed by or under the laws of a province that is authorized to transact the classes of insurance to be so transferred or reinsured. 2001, c. 9, s. 463(2) 306. (1) Paragraph 679(1.1)(f) of the Act is replaced by the following: (f) the company, society or provincial company has failed to comply with an order of the Superintendent made under subsection 515(3) to increase its capital or with an order of the Superintendent made under subsection 678.5(1); or 1996, c. 6, s. 96 (2) Paragraph 679(1.2)(c) of the Act is replaced by the following: (c) its assets in Canada are not, in the opinion of the Superintendent, sufficient to give adequate protection to its policyholders and creditors in respect of its insurance business in Canada; 2001, c. 9, s. 463(4) (3) Paragraph 679(1.2)(f) of the Act is replaced by the following: (f) in the opinion of the Superintendent, any other state of affairs exists in respect of the foreign company that may be materially prejudicial to the interests of the foreign company’s policyholders or creditors in respect of its insurance business in Canada, or to the interests of the owners of any assets under the foreign company’s administration in Canada, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the foreign company or its holding body corporate. 1996, c. 6, s. 96 (4) Subsection 679(2) of the Act is replaced by the following: Objectives of Superintendent (2) If the Superintendent has, under subsection (1), control of the assets of a company, society, provincial company or foreign company referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the policyholders and creditors of the company, society or C. 6 Financial I provincial company or the policyholders and creditors in respect of the foreign company’s insurance business in Canada. 307. Paragraph 686(1)(b) of the Act is replaced by the following: (b) ascertain the portion of the expenses described in paragraph (a) that were incurred by the company, society, foreign company or provincial company in respect of its policies of accident and sickness insurance, its policies of life insurance and annuity and its other policies by multiplying those expenses by A/D, B/D and C/D, respectively, where A, B and C represent the total of the gross premium income of the company, society, foreign company or provincial company, as determined by the Superintendent, in respect of (i) its policies of accident and sickness insurance, (ii) its policies of life insurance and annuities, and (iii) its other policies, respectively, during the period referred to in the description of D, and D represents the total of the gross premium income of the company, society, foreign company or provincial company, as determined by the Superintendent, during the period of five calendar years preceding the first to occur of the calendar year in which the Superintendent took control of the company, society or provincial company, or in the case of a foreign company, the assets, and that in which a winding-up order was issued in respect of the company, society, foreign company or provincial company. 308. Section 687 of the Act is replaced by the following: Institutions 2006-2007 Assessment 687. As soon as possible after ascertaining the portions described in paragraph 686(1)(b), the Superintendent shall, subject to this section and to the extent and in the manner that the Governor in Council may prescribe, assess those portions against each company, society, foreign company and provincial company, other than the company, society, foreign company or provincial company in respect of which the expenses were incurred, in the following proportion: A/B where A represents the net premiums during the immediately preceding calendar year of the company, society, foreign company or provincial company from (i) policies of accident and sickness insurance, (ii) policies of life insurance and annuities, or (iii) other policies; and B represents the total net premiums during the immediately preceding calendar year of all companies, societies, foreign companies and provincial companies, other than the company, society, foreign company or provincial company in respect of which the expenses were incurred, from (i) policies of accident and sickness insurance, (ii) policies of life insurance and annuities, or (iii) other policies. 309. (1) The definition “special insurance” in subsection 688(2) of the Act is repealed. (2) The definitions “gross premium income” and “net premiums” in subsection 688(2) of the Act are replaced by the following: C. 6 “gross premium income” « produit brut » “gross premium income” of a company, society, foreign company or provincial company means its premium income from its insurance business in Canada calculated without reduction in respect of reinsurance premiums paid or payable; “net premiums” « primes nettes » “net premiums” of a company, society, foreign company or provincial company means its gross premium income less Financial I (a) premiums paid or payable in respect of the reinsurance of risks undertaken under its policies in respect of its insurance business in Canada, and (b) dividends paid or allowed by it to its policyholders in respect of its insurance business in Canada. 2001, c. 9, s. 465; 2006, c. 4, s. 201.1 310. Section 707 of the Act is replaced by the following: Sunset provision 707. (1) Subject to subsections (2) and (3), insurance holding companies shall not carry on business after the day that is the fifth anniversary of the day on which this section comes into force. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which insurance holding companies may continue to carry on business. No more than one order may be made under this subsection. Exception (3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the threemonth period before that anniversary or on any day within an extension under subsection (2), insurance holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 2001, c. 9, s. 465 311. Paragraph 725(1)(e) of the Act is replaced by the following: (e) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2006-2007 Institutions 2001, c. 9, s. 465 312. Subsection 726(1) of the Act is replaced by the following: Transferring to other Acts 726. (1) An insurance holding company may apply to be continued only as a body corporate under any other Act of Parliament or any Act of the legislature of a province, and it may do so only with the approval in writing of the Minister. 2001, c. 9, s. 465 313. The portion of section 731 of the Act before paragraph (a) is replaced by the following: Affiliated insurance holding company 731. Despite section 730 and subject to section 732, an insurance holding company that is affiliated with another entity may, with the consent of that entity, 2005, c. 54, s. 370(2) 314. Subsection 745(5) of the English version of the Act is replaced by the following: Material to Superintendent (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. 2001, c. 9, s. 465 315. Subsection 754(2) of the Act is replaced by the following: Restrictions on purchase and redemption (2) An insurance holding company shall not make any payment to purchase or redeem any shares issued by it if there are reasonable grounds for believing that it is, or the payment would cause it to be, in contravention of subsection 992(1), any regulation made under subsection 992(2) or any order made under subsection 992(3). 316. The Act is amended by adding the following after section 755: Exception — conditions before acquisition 755.1 (1) An insurance holding company may permit any of its subsidiaries to acquire shares of the insurance holding company through the issuance of those shares by the insurance holding company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. C. 6 Conditions after acquisition (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. Non-compliance with conditions (3) If an insurance holding company permits any of its subsidiaries to acquire shares of the insurance holding company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 702 and subsection 749(2), the insurance holding company must comply with the prescribed requirements. 2001, c. 9, s. 465 317. (1) Subsection 757(2) of the Act is replaced by the following: Limitation (2) An insurance holding company shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the insurance holding company is, or the reduction would cause the insurance holding company to be, in contravention of subsection 992(1), any regulation made under subsection 992(2) or any order made under subsection 992(3). Financial I (2) Section 757 of the Act is amended by adding the following after subsection (4): Exception (4.1) Subsection (4) does not apply if (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 331(4); and (b) there is to be no return of capital to shareholders as a result of the reduction. 2001, c. 9, s. 465 318. (1) Subsection 761(2) of the Act is replaced by the following: Notice to Superintendent (2) The directors of an insurance holding company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 2001, c. 9, s. 465 (2) Subsection 761(4) of the Act is replaced by the following: 2006-2007 Institutions When dividend not to be declared (4) The directors of an insurance holding company shall not declare and an insurance holding company shall not pay a dividend if there are reasonable grounds for believing that the insurance holding company is, or the payment would cause the insurance holding company to be, in contravention of subsection 992(1), any regulation made under subsection 992(2) or any order made under subsection 992(3). 2001, c. 9, s. 465 319. Subsection 796(2) of the Act is replaced by the following: Residency requirement (2) At least one half of the directors of an insurance holding company that is a subsidiary of a foreign institution and a majority of the directors of any other insurance holding company must be, at the time of each director’s election or appointment, resident Canadians. 2001, c. 9, s. 465 320. Section 859 of the Act is replaced by the following: Approval of agreement by Superintendent 859. An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 860(4) by the shareholders of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. 2001, c. 9, s. 465 321. Paragraph 866(1)(e) of the Act is replaced by the following: (e) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 2001, c. 9, s. 465; 2005, c. 54, s. 346 322. Section 876 of the Act is replaced by the following: Requirement to maintain copies and process information in Canada 876. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for an insurance holding company to maintain, in another country, copies of records referred to in section 869 or of its central securities register or for an insurance holding company to process, in another country, information or data relating to the preparation and maintenance of those records or of its C. 6 Financial I central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for an insurance holding company to do any of those activities in another country — the Superintendent shall direct the insurance holding company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. Insurance holding company (2) An insurance holding company shall without delay comply with any direction issued under subsection (1). 2001, c. 9, s. 465 323. (1) The portion of subsection 927(1) of the French version of the Act before paragraph (a) is replaced by the following: Restrictions à l’acquisition 927. (1) Il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une société de portefeuille d’assurances ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas : 2001, c. 9, s. 465 (2) Subsection 927(2) of the Act is replaced by the following: Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of an insurance holding company, the entity is deemed to be acquiring a significant interest in that class of shares of the insurance holding company through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 465 324. Section 932 of the Act is replaced by the following: No acquisition of control without approval 932. (1) No person shall acquire control, within the meaning of paragraph 3(1)(d), of an insurance holding company without the approval of the Minister. Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), an insurance holding company, the entity is deemed to be acquiring control, within 2006-2007 Institutions the meaning of that paragraph, of the insurance holding company through an acquisition for which the approval of the Minister is required under subsection (1). 325. Section 969 of the Act is amended by adding the following after subsection (4): Application of other provision (5) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, an insurance holding company may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (6) If an insurance holding company decides to exercise its right under subsection (5), the insurance holding company is deemed to be acquiring the control or the substantial investment under the other provision. 2001, c. 9, s. 465 326. (1) Paragraph 971(1)(j) of the French version of the Act is replaced by the following: j) une entité qui est constituée en personne morale ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations bancaires, l’activité d’une société coopérative de crédit, des opérations d’assurance, la prestation de services fiduciaires ou le commerce de valeurs mobilières. 2001, c. 9, s. 465 (2) Paragraph 971(2)(e) of the Act is replaced by the following: (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” as defined in subsection 490(1); and (3) Section 971 of the Act is amended by adding the following after subsection (3): C. 6 Exception (3.1) Despite paragraph (3)(a), an insurance holding company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is Financial I (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a company is permitted to engage in under subsection 441(1.1), and (iii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 465 (4) Paragraph 971(5)(d) of the Act is replaced by the following: (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 441(1)(d); (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 441(1)(d.1); or 2001, c. 9, s. 465 (5) Paragraph 971(7)(a) of the Act is replaced by the following: (a) the insurance holding company is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the insurance holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b); 2001, c. 9, s. 465 327. Subsections 974(3) and (4) of the Act are replaced by the following: 2006-2007 Temporary investment Institutions (3) If an insurance holding company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 971(5) if the insurance holding company had acquired the control, or acquired or increased the substantial investment, under section 971, the insurance holding company must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (4) If an insurance holding company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 971(6) if the insurance holding company had acquired the control, or acquired or increased the substantial investment, under section 971, the Superintendent may, on application, permit the insurance holding company to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 328. (1) Section 987 of the Act is amended by adding the following after subsection (1): Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. C. 6 2001, c. 9, s. 465 (2) The portion of subsection 987(2) of the Act before paragraph (a) is replaced by the following: Financial I (2) Subsection (1) does not apply in respect Exception of 2001, c. 9, s. 465 (3) Paragraph 987(2)(b) of the Act is replaced by the following: (b) assets acquired or transferred under a transaction or series of transactions by a subsidiary of the insurance holding company with a financial institution as a result of the subsidiary’s participation in one or more syndicated loans with that financial institution. 2001, c. 9, s. 465 (4) Paragraph 987(4)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the insurance holding company prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the insurance holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 887(4), immediately before the transfer. 2001, c. 9, s. 465 (5) Subsection 987(6) of the Act is replaced by the following: Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the insurance holding company or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the insurance holding company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the insurance holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 887(4), immediately before the transfer of the asset. Institutions 2006-2007 2001, c. 9, s. 465 329. Subsection 991(1) of the French version of the Act is replaced by the following: Obligation de communication 991. (1) L’entité ne s’occupant pas d’assurances dont une partie des activités commerciales consiste à fournir des services financiers ne peut contracter un emprunt au Canada auprès du public sans indiquer qu’elle n’est pas réglementée au Canada au même titre qu’une institution financière. 2001, c. 9, s. 465 330. Section 1016 of the Act and the heading before it are replaced by the following: APPROVALS Definition of “approval” 1016. In sections 1016.1 to 1016.6, “approval” includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent. Matters to take into account — Minister 1016.1 (1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including (a) national security; and (b) Canada’s international relations and its international legal obligations. Matters to take into account — Superintendent (2) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account (a) national security; and (b) Canada’s international relations and its international legal obligations. Minister — terms, conditions and undertakings 1016.2 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms C. 6 Financial I and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it. Superintendent — terms, conditions and undertakings (2) In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate. Revocation, suspension or amendment of approval — Minister 1016.3 (1) The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including (a) national security; and (b) Canada’s international relations and its international legal obligations. Revocation, suspension or amendment of approval — Superintendent (2) The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and (a) national security; and (b) Canada’s international relations and its international legal obligations. Representations (3) Before taking any action under this section, the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Effect of noncompliance on approval 1016.4 (1) Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates. 2006-2007 Non-compliance Institutions (2) In addition to any other action that may be taken under this Act, in the case of noncompliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may (a) revoke, suspend or amend the approval to which the term, condition or undertaking relates; or (b) apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit. Representations (3) Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Revocation, suspension or amendment (4) At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment. Multiple approval — other approvals 1016.5 The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals. Exemption in relation to notices of intention 1016.6 The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate. 2001, c. 9, s. 465 331. Paragraph 1019(1)(c) of the Act is replaced by the following: (c) applications for exemptions under subsection 164.04(3) or 789(3); and C. 6 Financial I 332. The Act is amended by adding the following after section 1019: APPLICATIONS FOR CERTAIN APPROVALS Application for certain approvals 1019.1 (1) An application for the prior written approval of the Minister in respect of any of the following provisions must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require: (a) paragraphs 441(1)(d), (d.1) and (h); (b) paragraphs 495(7)(c), (d) and (d.1); (c) paragraph 542(2)(a); (d) subsection 554(5), in relation to an entity that is engaging in any activity referred to in section 441; and (e) paragraphs 971(5)(c), (d) and (d.1). Certification of receipt of application (2) If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister. Incomplete application (3) If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it. Notice of decision (4) Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant (a) a notice approving the application; or (b) if the Minister is not satisfied that the application should be approved, a notice to that effect. Extension of period (5) If the Minister is unable to complete the consideration of an application within the 30day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice. 2006-2007 Deemed approval Institutions (6) If the Minister does not send the notice referred to in subsection (4) or, where applicable, subsection (5), within the required period, the Minister is deemed to have approved the application. 333. The Act is amended by adding the following after section 1023: False or misleading information 1023.1 Every person who knowingly provides false or misleading information in relation to any matter under this Act or the regulations is guilty of an offence. SOR/2006-157 334. (1) The definitions “fire insurance” and “loss of employment insurance” in the schedule to the Act are repealed. SOR/2006-157 (2) The definition “maritimes et fluviales” in the schedule to the French version of the Act is repealed. SOR/2006-157 (3) Subparagraph (b)(iii) of the definition “life insurance” in the schedule to the Act is replaced by the following: (iii) undertakes to provide an annuity — or what would be an annuity except that the periodic payments may be unequal in amount — for a term dependent solely or partly on the life of a person. (4) The schedule to the French version of the Act is amended by adding the following in alphabetical order: « maritime » “marine insurance” « maritime » Assurance de responsabilité pour blessures corporelles ou décès d’une personne ou pour perte ou dommage matériels, survenant soit au cours d’un voyage ou d’une expédition en mer ou sur une voie d’eau intérieure, soit à l’occasion d’un retard dans le cadre d’un tel voyage ou d’une telle expédition ou au cours d’un transport connexe qui ne se fait pas sur C. 6 Financial I l’eau, ou assurance contre toute perte ou dommage matériels subis dans l’un ou l’autre de ces cas. 335. The Act is amended by replacing the expression “one billion dollars” with the expression “two billion dollars” in the following provisions: (a) subsection 411(2); (b) subsection 416(1); (c) subsection 938(2); and (d) subsection 943(1). 336. The French version of the Act is amended by replacing the expression “qui exerce une” with the expression “dont l’activité commerciale comporte une” in the following provisions: (a) paragraphs 495(6)(b) and (c); (b) paragraph 554(4)(b); and (c) paragraphs 971(4)(b) and (c). PART 4 1991, c. 45 AMENDMENTS TO THE TRUST AND LOAN COMPANIES ACT 337. Section 9 of the Trust and Loan Companies Act is amended by adding the following after subsection (4): Contravention (5) A person contravenes a provision of Part VII if the person agrees to act jointly or in concert with one or more other persons in such a manner that a deemed single person contravenes the provision. 2001, c. 9, s. 484; 2006, c. 4, s. 202 338. Section 20 of the Act is replaced by the following: Sunset provision 20. (1) Subject to subsections (2) and (3), companies shall not carry on business after the day that is the fifth anniversary of the day on which this section comes into force. Extension (2) The Governor in Council may, by order, extend by up to six months the time during which companies may continue to carry on business. No more than one order may be made under this subsection. Institutions 2006-2007 Exception (3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the threemonth period before that anniversary or on any day within an extension under subsection (2), companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament. 339. Paragraph 37(1)(f) of the Act is replaced by the following: (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 1994, c. 24, s. 349(1)(q)(F); 2001, c. 9, s. 487 Transferring to other federal Acts 340. Sections 38 to 40 of the Act are replaced by the following: 38. (1) A company may (a) apply, under the Bank Act, for letters patent continuing the company as a bank or a bank holding company under that Act, or amalgamating and continuing the company as a bank or a bank holding company under that Act; (b) apply, with the approval in writing of the Minister, under the Canada Business Corporations Act, for a certificate of continuance as a corporation under that Act; (c) apply, with the approval in writing of the Minister, under the Canada Cooperatives Act, for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act; (d) apply, under the Cooperative Credit Associations Act, for letters patent continuing the company as an association under that Act, or amalgamating and continuing the company as an association under that Act; or (e) apply, under the Insurance Companies Act, for letters patent continuing the company as a company (other than a mutual company) or an insurance holding company under that Act, or amalgamating and continuing the company as a company (other than a mutual company) or an insurance holding company under that Act. C. 6 Conditions for approval (2) The approval referred to in paragraph (1)(b) or (c) may be given only if the Minister is satisfied that Financial I (a) the company has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the company is situated, a notice of its intention to apply for the approval; (b) the company is not carrying on any of the fiduciary activities referred to in section 412; (c) unless the company is a subsidiary of another company and it uses the name of the other company in its name as permitted by section 48, the company will not use the word “fiduciaire”, “fiduciary”, “fiducie”, “loan”, “loanco”, “prêt”, “trust” or “trustco” in its name after the certificate referred to in that paragraph is issued; (d) the company does not hold deposits, other than deposits that are made by a person who controls the company or by a person who has a significant interest in a class of shares of the company and that are not insured by the Canada Deposit Insurance Corporation; and (e) the application has been authorized by a special resolution. Withdrawing application (3) If a special resolution authorizing the application for the certificate or letters patent so states, the directors of the company may, without further approval of the shareholders, withdraw the application before it is acted on. Restriction on other transfers (4) A company may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1). 2006-2007 Institutions Act ceases to apply 39. If a company applies for a certificate or letters patent referred to in section 38 in accordance with that section and the certificate is given or the letters patent are issued, this Act ceases to apply to the company as of the day the certificate or the letters patent take effect. 2001, c. 9, s. 488 341. Section 43 of the Act is replaced by the following: Affiliated company 43. Despite section 41, a company that is affiliated with another entity may, with the consent of that entity, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity. 2005, c. 54, s. 373(2) 342. Subsection 65(5) of the English version of the Act is replaced by the following: Material to Superintendent (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. 343. The Act is amended by adding the following after section 75: Exception — conditions before acquisition 75.1 (1) A company may permit any of its subsidiaries to acquire shares of the company through the issuance of those shares by the company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. Conditions after acquisition (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. Non-compliance with conditions (3) If a company permits any of its subsidiaries to acquire shares of the company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 15 and subsection 69(2), the company must comply with the prescribed requirements. C. 6 Financial I 344. Section 78 of the Act is amended by adding the following after subsection (4): Exception (4.1) Subsection (4) does not apply if (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 313(4); and (b) there is to be no return of capital to shareholders as a result of the reduction. 2001, c. 9, s. 494(1) 345. (1) Subsections 82(1) and (2) of the Act are replaced by the following: Declaration of dividend 82. (1) The directors of a company may declare and a company may pay a dividend by issuing fully paid shares of the company or options or rights to acquire fully paid shares of the company and, subject to subsection (4), the directors of a company may declare and a company may pay a dividend in money or property, and where a dividend is to be paid in money, the dividend may be paid in a currency other than the currency of Canada. Notice to Superintendent (2) The directors of a company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 2001, c. 9, s. 494(2) (2) Subsection 82(5) of the Act is repealed. 2001, c. 9, s. 498 346. Subsection 163(2) of the Act is replaced by the following: Residency requirement (2) At least one half of the directors of a company that is a subsidiary of a foreign institution or of a prescribed holding body corporate of a foreign institution and a majority of the directors of any other company must be, at the time of each director’s election or appointment, resident Canadians. 2001, c. 9, s. 507(2) 347. Subsection 222(3) of the Act is replaced by the following: Effective date of by-law (3) A by-law, or an amendment to or a repeal of a by-law, made under subsection (1) is not effective until it is confirmed or confirmed as 2006-2007 Institutions amended by the shareholders under subsection (2) and, in the case of by-laws respecting a change to the name of the company, approved by the Superintendent. Letters patent (4) If the name of a company or the province in Canada in which the head office of the company is situated is changed under this section, the Superintendent may issue letters patent to amend the company’s incorporating instrument accordingly. Effect of letters patent (5) Letters patent issued under subsection (4) become effective on the day stated in the letters patent. 348. Section 230 of the Act is replaced by the following: Approval of agreement by Superintendent 230. An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 231(4) by the holders of any class or series of shares of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. 349. Paragraph 236(1)(f) of the Act is replaced by the following: (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada; and 350. Section 238 of the Act is replaced by the following: Agreement to Superintendent 238. A sale agreement must be submitted to the Superintendent before it is sent to shareholders of the selling company under subsection 239(1). 351. Paragraph 243(1)(d) of the English version of the Act is replaced by the following: (d) particulars of any authorizations, designations, conditions and limitations established by the Superintendent under subsection 57(1), (3) or (4) or 58(1) that are from time to time applicable to the company; and C. 6 Financial I 352. Subsection 245(3) of the English version of the Act is replaced by the following: Entitlement (3) A shareholder or creditor of a company or their personal representative — or if the company is a distributing company within the meaning of subsection 270(1), any person — is entitled to a basic list of shareholders of the company. 2005, c. 54, s. 417 353. Section 250 of the Act is replaced by the following: Requirement to maintain copies and process information in Canada 250. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a company to maintain, in another country, copies of records referred to in section 243 or of its central securities register or for a company to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a company to do any of those activities in another country — the Superintendent shall direct the company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. Company to comply (2) A company shall without delay comply with any direction issued under subsection (1). 354. (1) The portion of subsection 375(1) of the French version of the Act before paragraph (a) is replaced by the following: Restrictions à l’acquisition 375. (1) Il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une société ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas : (2) Subsection 375(2) of the Act is replaced by the following: Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of 2006-2007 Institutions shares of a company, the entity is deemed to be acquiring a significant interest in that class of shares of the company through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 519 355. Section 375.1 of the Act is replaced by the following: No acquisition of control without approval 375.1 (1) No person shall acquire control, within the meaning of paragraph 3(1)(d), of a company without the approval of the Minister. Amalgamation, etc., constitutes acquisition (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a company, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the company through an acquisition for which the approval of the Minister is required under subsection (1). 2001, c. 9, s. 521 356. Subsection 379(2) of the Act is replaced by the following: Determination of day (2) If the company has equity of two billion dollars or more on the day it comes into existence, the day referred to in subsection (1) is the day that is three years after that day and, in the case of any other company, the day referred to in subsection (1) is the day that is three years after the day of the first annual meeting of the shareholders of the company held after the equity of the company first reaches two billion dollars. 2001, c. 9, s. 524 357. Subsection 384(1) of the Act is replaced by the following: Acquisition of control permitted 384. (1) Subject to subsection (2) and sections 376 and 385, section 379 does not apply in respect of the company if a person acquires control of a company with equity of two billion dollars or more through the purchase or other acquisition of all or any number of the shares of the company by the person or by any entity controlled by the person. 358. Section 413 of the Act is replaced by the following: Restriction on deposit taking 413. (1) A company shall not accept deposits in Canada unless C. 6 Financial I (a) it is a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act; (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or (c) the order approving the commencement and carrying on of business in Canada by the company authorizes it to accept deposits solely in accordance with subsection (2). Deposits that fall below $150,000 (2) A company referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the company receives the authorization referred to in that paragraph, A/B ≤ 0.01 where A is the sum of all amounts each of which is the sum of all the deposits held by the company at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and B is the sum of all amounts each of which is the sum of all deposits held by the company at the end of a day in those preceding 30 days and payable in Canada. Exchange rate (3) For the purpose of subsection (2), the rate of exchange to be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada is to be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act. Definition of “deposit” (4) For the purpose of subsection (2), “deposit” has the meaning that would be given to that term by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits. Regulations (5) The Governor in Council may make regulations (a) prescribing the deposits referred to in subsection (4); and 2006-2007 Institutions (b) prescribing terms and conditions with respect to the acceptance of those deposits. Notice before opening account or providing prescribed product 413.1 (1) Before a company referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the company shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and (b) any other information that may be prescribed. Other notice (2) A company referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made, (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation; and (b) include in its advertisements notices to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation. Regulations (3) The Governor in Council may make regulations (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and (b) respecting notices for the purpose of subsection (2). Deposits less than $150,000 413.2 (1) Subject to the regulations, a company referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. C. 6 Definition of “deposit” (2) In this section, “deposit” has the meaning assigned by subsection 413(4). Regulations (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a company referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. Shared premises 413.3 (1) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the company. Limitation (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the company and the member institution carry on business with the public and to which the public has access. Adjacent premises (3) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the company, unless the company clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution. Regulations (4) The Governor in Council may make regulations Financial I (a) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and (b) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may Institutions 2006-2007 carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3). 359. Subsection 418(1) of the Act is replaced by the following: Restriction on residential mortgages 418. (1) A company shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 2001, c. 9, s. 534 360. Subsections 419(2) and (3) of the French version of the Act are replaced by the following: Ordonnace de modification (2) Le surintendant peut, par ordonnance, enjoindre à la société de modifier ces principes selon les modalités qu’il précise dans l’ordonnance. Obligation de se conformer (3) La société est tenue de se conformer à l’ordonnance visée au paragraphe (2) dans le délai que lui fixe le surintendant. 361. Subsection 424(2) of the Act is replaced by the following: Provision of information (2) A company shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the company: (a) in the case of a deposit, (i) the name of the depositor in whose name the deposit is held, (ii) the recorded address of the depositor, (iii) the outstanding amount of the deposit, and (iv) the branch of the company at which the last transaction took place in respect of the deposit, and the date of that last transaction; and (b) in the case of an instrument, C. 6 Financial I (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted, (ii) the recorded address of that person, (iii) the name of the payee of the instrument, (iv) the amount and date of the instrument, (v) the name of the place where the instrument was payable, and (vi) the branch of the company at which the instrument was issued, certified or accepted. Copies of signature cards and signing authorities (2.1) A company shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada. 362. Section 425 of the Act is replaced by the following: Notice of unpaid amount 425. (1) A company shall send to each person to whom a deposit referred to in paragraph 424(1)(a) is payable, and to each person to whom or at whose request an instrument referred to in paragraph 424(1)(b) was issued, certified or accepted, a notice stating that the deposit or instrument remains unpaid. Where notice to be sent (2) The notice is to be sent to the person’s recorded address and, if the person has designated an information system for the receipt of electronic documents, to that designated information system. When notice to be sent (3) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period (a) in the case of a deposit made for a fixed period, after the fixed period has terminated; Institutions 2006-2007 (b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and (c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid. Notification of transfer to the Bank of Canada (4) The notice to be sent during the month of January next following the end of the first nineyear period determined under paragraphs (3)(a) to (c), as the case may be, must also (a) indicate that in the month of January in the next year the unpaid amounts will be transferred to the Bank of Canada; and (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument. 363. The Act is amended by adding the following after section 434: Registered Products Disclosure required concerning registered products 434.1 (1) Subject to subsection (2), a company shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the company provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service (a) information about all charges applicable to the registered product; (b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product; (c) information about the company’s procedures relating to complaints about the application of any charge applicable to the registered product; and (d) any other information that may be prescribed. C. 6 Regulations (2) The Governor in Council may make regulations specifying the circumstances under which a company need not provide the information. Definition of “registered product” (3) In this section, “registered product” means a product that is defined to be a registered product by the regulations. Financial I 364. Section 441 of the Act is amended by adding the following after subsection (2): How procedures to be made available (3) A company shall make its procedures established under paragraph (1)(a) available (a) in the form of a brochure, at its branches where products or services are offered in Canada; (b) on its websites through which products or services are offered in Canada; and (c) in written format to be sent to any person who requests them. Information on contacting Agency (4) A company shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). 365. The Act is amended by adding the following before section 443: Charges for prescribed products or services 442.1 A company shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court. 366. The Act is amended by adding the following after section 443: Regulations respecting the holding of funds 443.1 The Governor in Council may make regulations respecting the maximum period during which a company may hold funds in respect of specified classes of cheques or other instruments that are deposited into an account at a branch or prescribed point of service in Canada before permitting the customer in whose name the account is kept to access the funds. 2001, c. 9, s. 548 367. (1) Subsection 444.1(1) of the French version of the Act is replaced by the following: 2006-2007 Institutions Avis de fermeture de bureau 444.1 (1) Sous réserve des règlements pris en vertu du paragraphe (5), la société membre qui a au Canada un bureau dans lequel elle ouvre des comptes de dépôt de détail et procède à la sortie de fonds pour ses clients par l’intermédiaire d’une personne physique donne un préavis — conforme à ces règlements — de la fermeture du bureau ou de la cessation de l’une ou l’autre de ces activités. 2001, c. 9, s. 548 (2) Subsection 444.1(2) of the Act is replaced by the following: Pre-closure meeting (2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the company to convene and hold a meeting between representatives of the company, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, alternative service delivery by the company and measures to help the branch’s customers adjust to the closing or cessation of activities. 2001, c. 9, s. 548 368. Subparagraph 444.3(a)(iv) of the Act is replaced by the following: (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 369. Subsection 449(1) of the Act is amended by adding the following in alphabetical order: “closed-end fund” « fonds d’investissement à capital fixe » “closed-end fund” means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are (a) fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction; (b) traded on an exchange or an over-thecounter market; and C. 6 Financial I (c) liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. 370. Section 451 of the Act is amended by adding the following after subsection (5): Application of other provision (6) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a company may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (7) If a company decides to exercise its right under subsection (6), the company is deemed to be acquiring the control or the substantial investment under the other provision. 2001, c. 9, s. 550 371. (1) The portion of subsection 453(1) of the Act before paragraph (a) is replaced by the following: Permitted investments 453. (1) Subject to subsections (4) to (6) and Part XI, a company may acquire control of, or acquire or increase a substantial investment in, 2001, c. 9, s. 550 (2) Paragraph 453(1)(j) of the French version of the Act is replaced by the following: j) une entité qui est constituée en personne morale ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations bancaires, l’activité d’une société coopérative de crédit, des opérations d’assurance, la prestation de services fiduciaires ou le commerce de valeurs mobilières. 2001, c. 9, s. 550 (3) Paragraph 453(2)(e) of the Act is replaced by the following: Institutions 2006-2007 (e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 449(1); and (4) Section 453 of the Act is amended by adding the following after subsection (3): Exception (3.1) Despite paragraph (3)(d), a company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is (a) a closed-end fund; (b) a mutual fund entity; or (c) an entity whose business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that a company is permitted to engage in under paragraph 410(1)(d.1), and (iii) the provision of investment counselling services and portfolio management services. 2001, c. 9, s. 550 (5) Paragraphs 453(4)(b) and (c) of the French version of the Act are replaced by the following: b) s’agissant d’une entité dont l’activité commerciale comporte une activité visée à l’alinéa (2)a) et qui exerce, dans le cadre de son activité commerciale, des activités d’intermédiaire financier comportant des risques importants de crédit ou de marché, notamment une entité s’occupant d’affacturage, une entité s’occupant de crédit-bail ou une entité s’occupant de financement, elle ne peut le faire que si : (i) soit elle la contrôle ou en acquiert de la sorte le contrôle, au sens de l’alinéa 3(1)d), (ii) soit elle est autorisée par règlement pris en vertu de l’alinéa 459a) à acquérir ou augmenter l’intérêt; C. 6 Financial I c) s’agissant d’une entité dont l’activité commerciale comporte une activité visée à l’alinéa (2)b), y compris une entité s’occupant de financement spécial, elle ne peut le faire que si : (i) soit elle la contrôle ou en acquiert de la sorte le contrôle, au sens de l’alinéa 3(1)d), (ii) soit elle est autorisée par règlement pris en vertu de l’alinéa 459a) à acquérir ou à augmenter l’intérêt, (iii) soit, sous réserve des modalités éventuellement fixées par règlement, les activités de l’entité ne comportent pas l’acquisition ou la détention du contrôle d’une entité visée aux alinéas a) ou b) ou d’une entité qui n’est pas une entité admissible, ni d’actions ou de titres de participation dans celle-ci. 2001, c. 9, s. 550 (6) Paragraph 453(5)(d) of the Act is replaced by the following: (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 410(1)(c); (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 410(1)(c.1); or 2001, c. 9, s. 550 (7) Paragraph 453(7)(a) of the Act is replaced by the following: (a) the company is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b); 2001, c. 9, s. 550 372. Subsections 456(4) and (5) of the Act are replaced by the following: Temporary investment (4) If a company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 453(5) if 2006-2007 Institutions the company had acquired the control, or acquired or increased the substantial investment, under section 453, the company must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (5) If a company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 453(6) if the company had acquired the control, or acquired or increased the substantial investment, under section 453, the Superintendent may, on application, permit the company to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 373. Subsection 457(1) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) all or any of the ownership interests in any entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates. 374. (1) Section 470 of the Act is amended by adding the following after subsection (1): Approval of series of transactions (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition C. 6 Financial I or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. 2001, c. 9, s. 550 (2) Subsections 470(2) and (3) of the Act are replaced by the following: (2) Subsection (1) does not apply in respect Exceptions of (a) an asset that is a debt obligation referred to in subparagraphs (b)(i) to (v) of the definition “commercial loan” in subsection 449(1); (b) assets acquired or transferred under a transaction or series of transactions by the company with another financial institution as a result of the company’s participation in one or more syndicated loans with that financial institution; (c) assets purchased or sold under a sale agreement that is approved by the Minister under section 241; (d) shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 453(5) is required or the approval of the Superintendent under subsection 453(6) is required; (e) assets that are acquired or transferred under a transaction that has been approved by the Minister under subsection 678(1) of the Bank Act or subsection 715(1) of the Insurance Companies Act; (f) assets, other than real property, acquired or disposed of under an arrangement that has been approved by the Superintendent under subsection 482(3); or (g) assets acquired or disposed of with the approval of the Superintendent under subsection 482(4). 2001, c. 9, s. 550 (3) Paragraph 470(4)(b) of the Act is replaced by the following: (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the company prepared 2006-2007 Institutions before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 313(4), immediately before the transfer. 2001, c. 9, s. 550 (4) Subsection 470(6) of the Act is replaced by the following: Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the company or any of its subsidiaries has transferred during the 12month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 313(4), immediately before the transfer of the asset. 375. Section 476 of the Act is amended by adding the following after subsection (3): Security of a related party (4) For the purposes of this Part, “security” of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time. 376. Section 482 of the Act is amended by adding the following after subsection (5): Approval under section 241 (6) A company may acquire any assets from, or dispose of any assets to, a related party of the company under a sale agreement that is approved by the Minister under section 241. 1997, c. 15, s. 400 377. Subsection 483(3) of the Act is replaced by the following: Exception (3) Despite subsection 477(2), a company is deemed not to have indirectly entered into a transaction in respect of which this Part applies C. 6 Financial I if the transaction is entered into by an entity that is controlled by the company and the business of which is limited to the activity referred to in 453(2)(c) and the transaction is on terms and conditions at least as favourable to the company as market terms and conditions, as defined in subsection 489(2). 2001, c. 9, s. 552 378. (1) The description of B in subsection 483.3(1) of the Act is replaced by the following: B is the total value of all assets that the company directly or indirectly acquired from, or directly or indirectly transferred to, that related party in the 12 months ending immediately before the acquisition or transfer, other than assets acquired by or transferred to the company under transactions permitted by section 478; and 2001, c. 9, s. 552 (2) Paragraph 483.3(3)(a) of the Act is replaced by the following: (a) the company purchases or sells assets under a sale agreement that is approved by the Minister under section 241; or 1993, c. 34, ss. 129 and 130 379. Sections 496 to 498 of the Act are repealed. 2001, c. 9, s. 557 380. Subsection 503(1) of the Act is replaced by the following: Confidential information 503. (1) Subject to section 504.1, all information regarding the business or affairs of a company, or regarding a person dealing with a company, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly. 1996, c. 6, s. 123 381. Section 504 of the Act is repealed. 2001, c. 9, s. 567 382. Section 527.2 of the Act and the heading before it are replaced by the following: Institutions 2006-2007 APPROVALS Definition of “approval” 527.2 In sections 527.3 to 527.8, “approval” includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent. Matters to take into account — Minister 527.3 (1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including (a) national security; and (b) Canada’s international relations and its international legal obligations. Matters to take into account — Superintendent (2) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account (a) national security; and (b) Canada’s international relations and its international legal obligations. Minister — terms, conditions and undertakings 527.4 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it. Superintendent — terms, conditions and undertakings (2) In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate. C. 6 Revocation, suspension or amendment of approval — Minister 527.5 (1) The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including Financial I (a) national security; and (b) Canada’s international relations and its international legal obligations. Revocation, suspension or amendment of approval — Superintendent (2) The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and (a) national security; and (b) Canada’s international relations and its international legal obligations. Representations (3) Before taking any action under this section, the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Effect of noncompliance on approval 527.6 (1) Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates. Non-compliance (2) In addition to any other action that may be taken under this Act, in the case of noncompliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may (a) revoke, suspend or amend the approval to which the term, condition or undertaking relates; or (b) apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit. 2006-2007 Institutions Representations (3) Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Revocation, suspension or amendment (4) At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment. Multiple approval — other approvals 527.7 The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals. Exemption in relation to notices of intention 527.8 The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate. 2001, c. 9, s. 568 383. Paragraph 529.1(1)(c) of the Act is replaced by the following: (c) applications for exemptions under subsection 160.05(3); and 384. The Act is amended by adding the following after section 529.1: APPLICATIONS FOR CERTAIN APPROVALS Application for certain approvals 529.2 (1) An application for the prior written approval of the Minister in respect of paragraph 410(1)(c) or (c.1) or 453(5)(c), (d) or (d.1) must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require. C. 6 Certification of receipt of application (2) If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister. Incomplete application (3) If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it. Notice of decision (4) Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant Financial I (a) a notice approving the application; or (b) if the Minister is not satisfied that the application should be approved, a notice to that effect. Extension of period (5) If the Minister is unable to complete the consideration of an application within the 30day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice. Deemed approval (6) If the Minister does not send the notice referred to in subsection (4) or, where applicable, subsection (5), within the required period, the Minister is deemed to have approved the application. 385. Section 533 of the Act is amended by adding the following after subsection (1): False or misleading information (1.1) Every person who knowingly provides false or misleading information in relation to any matter under this Act or the regulations is guilty of an offence. Institutions 2006-2007 PART 5 AMENDMENTS TO OTHER ACTS 2005, c. 54 AN ACT TO AMEND CERTAIN ACTS IN RELATION TO FINANCIAL INSTITUTIONS 386. Section 11 of An Act to amend certain Acts in relation to financial institutions is repealed. 387. Section 89 of the Act is repealed. 388. Section 149 of the Act is repealed. 389. Section 223 of the Act is repealed. 390. Section 310 of the Act is repealed. 391. Section 376 of the Act is repealed. R.S., c. B-2 BANK OF CANADA ACT 392. Subsection 6(4) of the Bank of Canada Act is amended by adding the word “or” at the end of paragraph (c), by striking out the word “or” at the end of paragraph (d) and by repealing paragraph (e). 393. Subsection 10(4) of the Act is amended by adding the word “or” at the end of paragraph (a), by striking out the word “or” at the end of paragraph (b) and by repealing paragraph (c). 1997, c. 15, s. 100 394. Subsections 22(1) to (1.2) of the Act are replaced by the following: Time limit for unpaid debts 22. (1) The Bank is not liable in respect of any unpaid debt in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution if (a) the amount paid to the Bank was less than $1,000; and (b) at least 40 years have gone by since the later of (i) the last time a transaction took place on the books of the federal financial institution in respect of the unpaid debt, and C. 6 Financial I (ii) the last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the unpaid debt. Time limit for instruments (1.1) The Bank is not liable in respect of any instrument in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution if (a) the amount paid to the Bank was less than $1,000; and (b) no payment has been made in respect of the instrument for at least 40 years after the day the instrument was issued or accepted. Time limit for liquidation claims (1.2) The Bank is not liable in respect of any claim against a liquidator in respect of the winding-up of a federal financial institution if (a) the amount of the claim has been paid to the Minister and by the Minister to the Bank under the relevant Act in respect of the federal financial institution; (b) the amount paid to the Bank was less than $1,000; and (c) at least 40 years have gone by since the later of (i) the last time a transaction took place on the books of the federal financial institution in respect of the subject-matter of the claim, and (ii) the last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the subject-matter of the claim. Limitation of Bank’s liability (1.3) The Bank is not liable in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1) or a claim referred to in subsection (1.2) if the amount paid to the Bank in respect of the debt, instrument or claim was $1,000 or more and at least 100 years have gone by since the payment was made to the Bank. Institutions 2006-2007 Application (1.4) For greater certainty, subsections (1) to (1.3) also apply in respect of amounts paid to the Bank before the coming into force of this subsection. 395. Section 27 of the English version of the Act and the heading before it are replaced by the following: RESERVE FUNDS Reserve fund 27. The Bank shall establish a reserve fund and, after making the provision that the Board thinks proper for bad and doubtful debts, depreciation in assets, pension funds and all other matters that are properly provided for by banks, the ascertained surplus available from the operations of the Bank during each financial year is to be applied by the Board as follows: (a) if the Bank’s reserve fund is less than the paid-up capital, one third of the surplus is to be allocated to the reserve fund, and the residue is to be paid to the Receiver General and form part of the Consolidated Revenue Fund; (b) if the reserve fund is not less than the paid-up capital, one fifth of the surplus is to be allocated to the reserve fund until the reserve fund reaches an amount five times the paid-up capital, and the residue is to be paid to the Receiver General and form part of the Consolidated Revenue Fund; and (c) if the times the surplus is and form Fund. reserve fund is not less than five paid-up capital, the whole of the to be paid to the Receiver General part of the Consolidated Revenue 396. The Act is amended by adding the following after section 27: Special reserve fund — unrealized valuation losses 27.1 (1) Despite section 27, the Bank may establish a special reserve fund and may, pursuant to a resolution passed by the Board, allocate to the fund out of the ascertained surplus available from the operations of the Bank during each financial year an amount to offset unrealized valuation losses due to changes in the fair value of the investment portfolio of the Bank. C. 6 Maximum (2) The amount that may be held in the fund shall not be more than $400,000,000 at any time. 2001, c. 9, s. 199 397. (1) Subsection 29(1) of the Act is replaced by the following: Weekly financial information 29. (1) The Bank shall, on a weekly basis, post on its websites financial information about its assets and liabilities. 2001, c. 9, s. 199 (2) Subsection 29(3) of the Act is replaced by the following: Publication of balance sheets (3) A copy of each balance sheet made under subsection (2) must be published in the issue of the Canada Gazette next following its transmission to the Minister. R.S., c. B-4 Financial I BILLS OF EXCHANGE ACT 398. The Bills of Exchange Act is amended by adding the following after section 163: OFFICIAL IMAGES AND ELECTRONIC PRESENTMENT Definitions “bank” « banque » 163.1 The following definitions apply in this section and sections 163.2 to 163.6. “bank” has the same meaning as in section 164. “eligible bill” « lettre admissible » “eligible bill” means a bill that is of a class specified by a by-law, a rule or a standard made under the Canadian Payments Act. “official image” « image officielle » “official image”, in respect of an eligible bill, means an image of that eligible bill created by or on behalf of a bank in accordance with bylaws, rules or standards made under the Canadian Payments Act, together with any data in relation to the eligible bill prepared in accordance with those by-laws, rules and standards, and includes a display, a printout, a copy or any other output of that image and that data created by or on behalf of a bank in accordance with those by-laws, rules and standards. 2006-2007 Institutions Status of official image 163.2 An official image of an eligible bill may be dealt with and used for all purposes as though it were the eligible bill. Electronic presentment 163.3 (1) Despite anything in this Act, a bank may present for payment an official image of an eligible bill electronically in accordance with by-laws, rules or standards made under the Canadian Payments Act and, if it does so, the requirements of this Act respecting the presentment for payment of the eligible bill are deemed to have been complied with. Discharge by payment (2) The eligible bill and its official image are discharged if payment in due course is made by or on behalf of the drawee after the electronic presentment for payment of the official image of the eligible bill. Presumption 163.4 (1) In the absence of evidence to the contrary, a document purporting to be an official image of an eligible bill is presumed to be an official image of the eligible bill. Admissibility (2) An official image of an eligible bill is admissible in evidence for all purposes for which the eligible bill would be admitted as evidence without proof that the official image was created by or on behalf of a bank in accordance with the by-laws, rules or standards made under the Canadian Payments Act. True copy of contents (3) In the absence of evidence to the contrary, an official image of an eligible bill is presumed to be a true and exact copy of the contents of the eligible bill. Effect of destruction 163.5 If an eligible bill is destroyed in accordance with by-laws, rules or standards made under the Canadian Payments Act and there is an official image of the bill, (a) a person’s rights and powers in relation to the eligible bill are not affected by reason only that the person does not possess it; (b) the destruction does not affect any person’s rights, powers, duties and liabilities in relation to the eligible bill; and C. 6 Financial I (c) the eligible bill is not considered to be lost or to have been materially altered or intentionally cancelled. Warranty 163.6 (1) A bank that creates or purports to create an official image of an eligible bill, or on whose behalf an official image of an eligible bill is created or purported to be created, warrants that the official image or the purported official image, as the case may be, was created in accordance with by-laws, rules or standards made under the Canadian Payments Act and that it accurately represents the eligible bill. Damages (2) Any person who has suffered damages as a result of a breach of the warranty has a cause of action for damages against the bank. R.S., c. C-44; 1994, c. 24, s. 1(F) CANADA BUSINESS CORPORATIONS ACT 1991, c. 47, s. 719(3) 399. Subsection 3(4) of the Canada Business Corporations Act is replaced by the following: Limitations on business that may be carried on (4) No corporation shall carry on the business of (a) a bank; (a.1) an association to which the Cooperative Credit Associations Act applies; (b) a company or society to which the Insurance Companies Act applies; or (c) a company to which the Trust and Loan Companies Act applies. 2001, c. 14, s. 92(1) 400. Subsection 188(2) of the Act is replaced by the following: Continuance — other federal Acts (2) A corporation that is authorized by the shareholders in accordance with this section may apply to the appropriate Minister for its continuance under the Bank Act, the Canada Cooperatives Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act. 2006-2007 Institutions 1994, c. 24, s. 32; 2001, c. 14, ss. 133(1) and (2)(E) 401. Subsections 268(2) to (7) of the Act are replaced by the following: Amendment of charter — special Act (2) In connection with a continuance under this Act, the shareholders of a body corporate incorporated or continued by or under a special Act of Parliament who are entitled to vote at annual meetings of shareholders may, despite the charter of the body corporate, (a) by special resolution, authorize the directors of the body corporate to apply under section 187 for a certificate of continuance; and (b) by the same resolution, make any amendment to the charter of the body corporate that a corporation incorporated under this Act may make to its articles. Amendment of charter — other Act (2.1) In connection with a continuance under this Act, the shareholders of a body corporate incorporated or continued by or under an Act of Parliament, other than this Act or a special Act, who are entitled to vote at annual meetings of shareholders may, subject to any other Act of Parliament or the charter of the body corporate, (a) by special resolution, authorize the directors of the body corporate to apply under section 187 for a certificate of continuance; and (b) by the same resolution, make any amendment to the charter of the body corporate that a corporation incorporated under this Act may make to its articles. Change of class rights (3) Despite subsections (2) and (2.1), the shareholders of a body corporate may not, by a special resolution under any of those subsections, make any change of the nature referred to in subsection 176(1) that affects a class or series of shares, unless (a) the charter of the body corporate otherwise provides in respect of an amendment of the nature referred to in paragraph 176(1)(a), (b) or (e); or C. 6 Financial I (b) the holders of the class or series of shares approve the change in accordance with section 176. Authorizing continuance (4) Subject to subsections (6) and (7), the directors of a body corporate incorporated or continued by or under a special Act of Parliament may, despite the charter of the body corporate, apply under section 187 for a certificate of continuance if the articles of continuance do not make any amendment to the charter of the body corporate other than an amendment required to conform to this Act. Authorizing continuance (4.1) Subject to subsections (6) and (7), the directors of a body corporate incorporated or continued by or under an Act of Parliament, other than this Act or a special Act, may, subject to any other Act of Parliament or the charter of the body corporate, apply under section 187 for a certificate of continuance if the articles of continuance do not make any amendment to the charter of the body corporate other than an amendment required to conform to this Act. Financial institutions (4.2) For the purposes of this section, every body corporate that is incorporated or continued under an Act of Parliament and to which the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act applies is deemed to be incorporated or continued by or under an Act of Parliament other than this Act or a special Act. No dissent (5) A shareholder is not entitled to dissent under section 190 in respect of an amendment made under subsection (2), (2.1), (3), (4) or (4.1). Discretionary continuance (6) The Governor in Council may, by order, require that a body corporate incorporated by or under an Act of Parliament to which Part I or II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, does not apply, apply for a certificate of continuance under section 187 within any period that may be prescribed except for the following: (a) a bank; 2006-2007 Institutions (a.1) an association to which the Cooperative Credit Associations Act applies; (b) a company or society to which the Insurance Companies Act applies; and (c) a company to which the Trust and Loan Companies Act applies. Discretionary continuance — Canada Corporations Act R.S., c. C-3 (7) A body corporate to which Part IV of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, applies, other than a body corporate that carries on a business referred to in any of paragraphs (6)(a.1) to (c), may apply for a certificate of continuance under section 187. CANADA DEPOSIT INSURANCE CORPORATION ACT 402. Subsection 6(3) of the Canada Deposit Insurance Corporation Act is amended by adding the word “or” at the end of paragraph (b), by striking out the word “or” at the end of paragraph (c) and by repealing paragraph (d). R.S., c. 18 (3rd Supp.), s. 52(1) 403. (1) Subsections 14(1) and (2) of the Act are replaced by the following: Obligation regarding insured amount 14. (1) As soon as possible after the Corporation is obliged to make payment in respect of a deposit insured by deposit insurance, it shall make available to the person that in its opinion appears to be entitled to be paid in respect of the deposit an amount of money equal to so much of the person’s deposit as is insured by the Corporation. How amount to be made available (1.1) The amount is to be made available by making a monetary payment to the person or a deposit to the credit of the person at another member institution, whether or not the person has an account at that institution. The Corporation may make the amount available in more than one instalment if, in its opinion, it is appropriate to do so. C. 6 Obligatory payment (2) The Corporation shall, in the manner described in subsection (1.1), make payment in respect of any deposit insured by deposit insurance if a winding-up order has been made in respect of the member institution that holds the deposit. R.S., c. 18 (3rd Supp.), s. 52(1) (2) The portion of subsection 14(2.1) of the Act before paragraph (a) is replaced by the following: Discretionary payment (2.1) The Corporation may, in the manner described in subsection (1.1), make payment in respect of any deposit insured by deposit insurance if R.S., c. 18 (3rd Supp.), s. 54; 2005, c. 30, s. 104(1) 404. Section 17 of the Act is replaced by the following: Insurance of federal institutions 17. (1) The Corporation shall, in the manner and to the extent provided in this Act and the by-laws, insure the deposits held by a federal institution in respect of which an order approving the commencement and carrying on of business has been made by the Superintendent unless Financial I (a) that order prohibits the institution from accepting deposits in Canada; (b) that order authorizes the institution to accept deposits in Canada solely in accordance with subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act; (c) the institution has been authorized under section 26.03 to accept deposits payable in Canada while no longer being a member institution; or (d) the institution’s policy of deposit insurance has been terminated under section 31 or cancelled under section 33. Effect of amendment to order (2) If the order approving the commencement and carrying on of business by a federal institution is at any time amended so as to not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively, 2006-2007 Institutions (a) on the day on which the amendment takes effect, any authorization under section 26.03 that permits the institution to accept deposits payable in Canada while no longer being a member institution is revoked; (b) on the day on which the amendment takes effect, any existing cancellation of the institution’s policy of deposit insurance under paragraph 33(1)(b) or subsection 33(2) is revoked; and (c) as of the day on which the amendment takes effect, the Corporation shall insure the deposits held by the institution under subsection (1). Exception (3) Subsection (2) does not apply in respect of a federal institution whose policy of deposit insurance has been terminated under section 31 or cancelled under paragraph 33(1)(a). Notice to Corporation (4) The Superintendent shall notify the Corporation of (a) every application to incorporate a federal institution, or to continue a corporation as a federal institution, in respect of which the Superintendent is likely to make an order approving the commencement and carrying on of business that does not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively; and (b) every application by a federal institution to have its order approving the commencement and carrying on of business amended so as to not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively. Insurance of provincial institutions 17.1 On the application of a provincial institution, the Corporation may insure the deposits held by the institution in the manner and to the extent provided in this Act and the by-laws, if (a) the Corporation approves the institution for deposit insurance; (b) the institution is authorized by the province of its incorporation to apply for deposit insurance; C. 6 Financial I (c) the institution agrees, in carrying on its business, not to exercise powers substantially different from the powers exercisable by a company to which the Trust and Loan Companies Act applies; and (d) the Corporation is satisfied that at all times the Corporation will have adequate access to information regarding the institution. Policy of deposit insurance 17.2 Every member institution is deemed to have obtained a policy of deposit insurance on the day on which it became a member institution. 1992, c. 26, s. 7 405. Subsections 18(3) and (4) of the Act are replaced by the following: Contents of policy (3) The policy of deposit insurance shall consist of the provisions that may be prescribed by the by-laws. Policies deemed to be amended (4) If a by-law respecting the content of the policy of deposit insurance is amended, or revoked and replaced, every policy of deposit insurance is deemed to be amended or replaced accordingly. 1996, c. 6, s. 27 406. Subsection 21(5) of the Act is replaced by the following: Calculation of deposits (5) For the purposes of this section, a member institution may use any method approved by the Corporation to determine or estimate the aggregate amount of its deposits that are considered to be insured by the Corporation. R.S., c. 18 (3rd Supp.), s. 58 407. Subsection 23(2) of the Act is replaced by the following: Payment of first premium (2) Despite subsection 22(2), the premium payable by a member institution under subsection (1) must be paid to the Corporation, without interest, within 30 days after the end of the month in which the member institution becomes a member institution. R.S., c. 18 (3rd Supp.), s. 59 408. Paragraph 25.1(1)(b) of the Act is replaced by the following: (b) giving the member institution an opportunity to make written representations, 2006-2007 1997, c. 15, s. 114 Institutions 409. The heading before section 26.01 of the Act is replaced by the following: FEDERAL INSTITUTIONS WITHOUT DEPOSIT INSURANCE 1997, c. 15, s. 114 410. Section 26.02 of the Act is replaced by the following: Application 26.02 If a federal member institution intends to accept deposits payable in Canada while no longer being a member institution, it must apply to the Corporation for an authorization to do so. The application must be in a form that is acceptable to the Corporation and must contain the information that the Corporation may require. 1997, c. 15, s. 114; 1999, c. 28, s. 102 411. Paragraphs 26.03(1)(b) to (e) of the Act are replaced by the following: (b) the sum of all the deposits held by the federal member institution that are less than $150,000 and payable in Canada is less than one per cent of the sum of all the deposits held by the institution that are payable in Canada; (c) the institution has informed all its depositors, in accordance with any rules that may be prescribed by the by-laws, (i) that the institution has applied to become authorized to accept deposits while no longer being a member institution, (ii) that after the institution receives that authorization, no deposit with the institution will be insured in whole or in part by the Corporation, and (iii) that the institution’s obligation to repay the deposit to the depositor will be assumed by a member institution if an option referred to in subparagraph (d)(i) or (ii) is not exercised; (d) in respect of each deposit that is held by the institution, the institution has (i) obtained from the depositor an acknowledgement in writing that the deposit will no longer be insured in whole or in C. 6 Financial I part by the Corporation after the institution receives authorization to accept deposits without being a member institution, (ii) at the request in writing of the depositor, paid to the depositor the principal amount of the deposit and interest determined in accordance with rules prescribed by the by-laws and has not charged any fee or penalty in connection with the payment, or (iii) obtained from a member institution an agreement in writing to assume the institution’s liability in relation to the deposit on the same terms and conditions; and (e) the institution has paid to the Corporation a fee determined in accordance with rules prescribed by the by-laws. 1997, c. 15, s. 114 412. (1) Subsection 26.04(1) of the Act is replaced by the following: Minister and Superintendent to be informed 26.04 (1) Before giving an authorization under subsection 26.03(1), the Corporation must inform the Minister and the Superintendent that it proposes to give the authorization. 1999, c. 28, s. 103 (2) Subsection 26.04(3) of the Act is replaced by the following: Authorization after 30 days (3) If the Minister does not issue that direction within those 30 days, the Corporation may then give the authorization under subsection 26.03(1). The giving of the authorization cancels the policy of deposit insurance of the federal member institution to which the authorization is given. Amendment of order (4) If the Corporation gives the authorization under subsection 26.03(1), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business accordingly. 1997, c. 15, s. 114 413. Section 26.06 of the Act is replaced by the following: 2006-2007 Institutions Deposits not insured 26.06 After a federal member institution has been given authorization under subsection 26.03(1), no deposit with the institution is insured in whole or in part by the Corporation. R.S., c. 18 (3rd Supp.), s. 62; 1996, c. 6, s. 41 414. (1) Subsection 31.1(1) of the English version of the Act is replaced by the following: Acceleration of termination of policy of deposit insurance 31.1 (1) Despite any other provision of this Act, if, at any time after a notice of termination has been given to a provincial member institution under subsection 31(1), the Corporation concludes that (a) the financial condition of the provincial member institution has deteriorated since the giving of the notice, and (b) the interests of depositors will be adversely affected by any further delay in terminating the provincial member institution’s policy of deposit insurance, the Corporation shall without delay send a notice by registered mail, or deliver a notice by hand, to the provincial member institution and to the appropriate provincial Minister, to the effect that the policy of deposit insurance of the institution will be terminated on the expiration of a period of five days after the receipt of the notice by the institution. R.S., c. 18 (3rd Supp.), s. 62 (2) Subsections 31.1(2) and (3) of the Act are replaced by the following: Revocation (2) The Board of Directors of the Corporation or one of its committees established for the purpose may, before the expiry of the period specified in the notice, revoke the notice if, after considering any written representations made by the provincial member institution, it is satisfied that it is appropriate to do so. R.S., c. 18 (3rd Supp.), s. 62; 1996, c. 6, s. 38 415. Section 33 of the Act is replaced by the following: Cancellation 33. (1) Subject to subsection (3), the policy of deposit insurance of a member institution may be cancelled by the Corporation if, in the opinion of the Corporation, the member institution C. 6 Financial I (a) is or is about to become insolvent; or (b) has ceased to accept deposits. Cancellation (2) If a member institution intends to cease to accept deposits, it must notify the Corporation and the institution’s policy of deposit insurance may, subject to subsection (3), be cancelled by the Corporation. No cancellation in certain cases (3) The Corporation shall notify the Minister and the Superintendent of the action it is proposing to take under subsection (1) or (2) and it shall not take the action if it is advised by the Minister that in the opinion of the Minister taking the action would not be in the public interest. 1996, c. 6, s. 39 416. (1) Subsection 34(1) of the Act is replaced by the following: Effect of termination or cancellation 34. (1) If the policy of deposit insurance of a member institution is terminated or cancelled by the Corporation, the deposits with the institution on the day the termination or cancellation takes effect, less any withdrawals from those deposits, continue to be insured under the terminated or cancelled policy of deposit insurance for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit. (2) Section 34 of the Act is amended by adding the following after subsection (4): Amendment of order (5) If the policy of deposit insurance of a federal member institution is cancelled by the Corporation under paragraph 33(1)(b) or subsection 33(2), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business to prohibit the institution from accepting deposits in Canada. 1996, c. 6, s. 40 417. Subsection 35(2) of the Act is replaced by the following: 2006-2007 Presumption Institutions (2) For the purposes of this section, the Corporation is deemed to be a creditor of a member institution despite the termination or cancellation of the institution’s policy of deposit insurance. 418. Section 36 of the Act is replaced by the following: Removal of references to deposit insurance 36. (1) If the policy of deposit insurance of a member institution is terminated or cancelled, the member institution shall notify its depositors of that fact and shall remove all references to deposit insurance under this Act from all forms of advertising by the institution. Public notice (2) The Corporation may, in the manner and through any news media that it considers appropriate, give public notice of the termination or cancellation of the policy of deposit insurance of a member institution if, in the opinion of the Corporation, the public interest requires that such notice be given. 419. Subsections 37(1) and (2) of the Act are replaced by the following: Provincial deposit insurance 37. (1) If under the law of any province the government of the province or an agent of that government guarantees or insures any of the deposits with a provincial institution operating within the province, the Corporation, subject to section 17.1 and any agreement entered into under subsection (3), may (a) insure some or all of the deposits with the institution; or (b) amend the institution’s policy of deposit insurance, to exclude from the policy any of the deposits with the institution. 420. Section 46 of the English version of the Act is replaced by the following: Insolvency and winding-up 46. No statute relating to the insolvency or winding-up of any corporation applies to the Corporation and in no case shall the affairs of the Corporation be wound up unless Parliament so provides. 421. The definitions “subordinated note” and “subordinated shareholder loan” in section 1 of the schedule to the Act are repealed. 222 R.S., c. C-21; 2001, c. 9, s. 218 C. 6 Financial I CANADIAN PAYMENTS ACT 422. (1) The definition “General Manager” in subsection 2(1) of the Canadian Payments Act is repealed. (2) The definition “président” in subsection 2(1) of the French version of the Act is repealed. (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “President” « président » “President” means the President of the Association appointed under section 16; (4) Subsection 2(1) of the French version of the Act is amended by adding the following in alphabetical order: « président du conseil » “Chairperson” « président du conseil » Le président du conseil visé à l’article 15. 2001, c. 9, s. 219(6) (5) Subsection 2(3) of the Act is replaced by the following: Not statutory instrument (3) Rules, statements of principle and standards made by the Board and orders made under a by-law are not statutory instruments for the purposes of the Statutory Instruments Act. 423. Section 4 of the Act is amended by adding the following after subsection (2): Commencement of membership (3) Membership in the Association commences (a) in the case of a bank and an authorized foreign bank, on the day on which an order is made under the Bank Act approving its commencement and carrying on of business; and (b) in the case of a person referred to in paragraph (1)(d), on the day on which the person’s application for membership in the Association is approved by the Board. Institutions 2006-2007 Suspension of membership rights (4) A suspension, imposed in accordance with the by-laws, of any of a member’s membership rights is not effective unless the Association has, in advance, sent the Minister a notice of the suspension. 2001, c. 9, s. 227(2) 424. (1) Subsection 9(1.1) of the Act is replaced by the following: Appointments by Minister (1.1) The Minister shall appoint three directors of the Association to hold office for a term of not more than three years. (2) Section 9 of the Act is amended by adding the following after subsection (1.2): Continuation in office (1.3) If, on the expiry of the term of office of a director appointed under subsection (1.1), no new director is appointed, the director whose term of office expired may continue in office until a director is appointed under that subsection. 425. The Act is amended by adding the following after section 9: Vacancy 10. A vacancy on the Board does not impair the right of the remaining directors to act. 426. Section 14 of the Act is replaced by the following: Canadian citizens 14. At least three quarters of the directors of the Association must be Canadian citizens ordinarily resident in Canada. 2001, c. 9, ss. 231 and 232(E) and par. 245(a)(E) 427. Section 15 of the French version of the Act and the heading before it are replaced by the following: PRÉSIDENT DU CONSEIL Président du conseil 15. (1) Le président du conseil, qui est l’administrateur nommé par la Banque du Canada, exerce les fonctions prévues par les règlements administratifs. Absence (2) En cas d’absence ou d’empêchement du président du conseil, l’administrateur suppléant nommé par la Banque du Canada en vertu du paragraphe 9(1) exerce ses fonctions et, notamment, préside les réunions du conseil. C. 6 Voix prépondérante (3) Le président du conseil ou, en cas d’absence ou d’empêchement, son suppléant a, lors d’une réunion du conseil, voix prépondérante en cas de partage des voix sur une question soumise au conseil. 2001, c. 9, par. 245(b)(E) and s. 246 428. Section 16 of the Act and the heading before it are replaced by the following: Financial I PRESIDENT President 16. (1) The directors shall appoint the President of the Association. Duties (2) The President is the chief executive of the Association and has, on behalf of the Board, the direction and management of the business of the Association with authority to act in all matters that are not by the by-laws or by resolution of the Board specifically reserved to be done by the Chairperson, the Board or the Executive Committee. Exercise of powers by officers and employees (3) Except as otherwise provided by the President, and subject to any terms and conditions that may be specified by the President, an officer or employee of the Association may exercise any power and perform any duty or function of the Association if the officer or employee is appointed to serve in a capacity appropriate to the exercise of the power or performance of the duty or function. 2001, c. 9, s. 233 429. (1) Paragraph 18(1)(g) of the Act is replaced by the following: (g) establishing penalties for any failure by members to comply with the by-laws, rules and orders made under the by-laws, including penalties that provide for the payment of interest or the making of restitution, and procedures in respect of the imposition of those penalties; (2) Subsection 18(1) of the Act is amended by striking out the word “and” at the end of paragraph (h) and by adding the following after paragraph (i): (j) limiting the liability of the Association, its members, its employees and other persons for any loss or damage suffered by a member as a result of anything done or omitted to be done 2006-2007 Institutions in good faith in the administration or discharge of any powers or duties that under a by-law or a rule are intended or authorized to be exercised or performed; and (k) respecting the nomination, selection and appointment of persons to be members of the Stakeholder Advisory Council. (3) Subsection 18(2) of the Act is replaced by the following: Approval (2) Subject to subsections (3) and (4), a bylaw is not effective until approved by the Minister and when so approved must be published in the Canada Gazette and copies of the by-law must be sent to every member by the President. (4) Subsections 18(3) and (4) of the French version of the Act are replaced by the following: Approbation des règlements administratifs imposant une amende (3) Avant d’être soumis à l’approbation du gouverneur en conseil, tout règlement administratif imposant une sanction doit d’abord être approuvé par les membres réunis en assemblée. Vote relatif à un règlement administratif imposant une amende (4) Chaque membre a droit, au cours du vote tenu aux fins d’approuver par voie de résolution un règlement administratif imposant une sanction, à une voix pour chaque dollar de la cotisation que les règlements administratifs lui imposent de verser. 430. (1) Subsection 19(1) of the Act is amended by adding the following after paragraph (b): (b.1) respecting the destruction of payment items; (2) Subsection 19(2) of the French version of the Act is replaced by the following: Pouvoirs du président du conseil (2) Aux assemblées du conseil ou du comité de direction, le président du conseil tranche de façon définitive toute question soulevée visant à savoir si une règle projetée est conforme aux règlements administratifs. 2001, c. 9, s. 234(2) (3) Subsection 19(3) of the Act is replaced by the following: C. 6 Rules to be available (3) The Association shall make a copy of every rule available to members in the manner determined by the President. Financial I 431. Subsections 20(2) and (3) of the French version of the Act are replaced by the following: Président du comité de direction (2) Le président du conseil est le président du comité de direction. Voix prépondérante (3) En cas de partage des voix à une assemblée du comité de direction, le président du comité a voix prépondérante. 2001, c. 9, s. 238 432. Subsection 21.2(6) of the French version of the Act is replaced by the following: Président du comité consultatif et vice-président (6) Le président du comité consultatif et son vice-président sont élus par les membres du comité consultatif, en leur sein, pour un mandat maximal de deux ans. 433. Section 24 of the French version of the Act is replaced by the following: Quorum 24. À une assemblée des membres convoquée en vue de nommer un vérificateur, ou d’examiner un règlement administratif imposant une sanction ou d’examiner un budget d’exploitation ou d’investissement, le quorum est atteint lorsque les membres présents réputés l’être en vertu du paragraphe 13(2) ou représentés sont, ensemble, tenus de payer plus de la moitié des cotisations payables pour l’exercice au cours duquel se tient cette assemblée en vertu des règlements administratifs applicables à cet exercice. 434. The Act is amended by adding the following after section 47: Delegation 48. The Minister may delegate any of the Minister’s powers, duties and functions under this Act to any Minister of State appointed under the Ministries and Ministers of State Act to assist the Minister. Institutions 2006-2007 FINANCIAL CONSUMER AGENCY OF CANADA ACT 2001, c. 9 435. Section 18 of the Financial Consumer Agency of Canada Act is amended by adding the following after subsection (3): (3.1) No assessment is to be made in respect Exception of (a) a company to which the Insurance Companies Act applies that was exempt from the application of paragraphs 165(2)(f) and (g) and sections 479 to 489.2 of that Act during the entire fiscal year to which the assessment relates; or (b) a foreign company to which that Act applies that was exempt from the application of sections 598 to 607.1 of that Act during the entire fiscal year to which the assessment relates. 436. Subsection 19(2) of the Act is replaced by the following: Maximum penalties (2) The maximum penalty for a violation is $50,000 in the case of a violation that is committed by a natural person, and $200,000 in the case of a violation that is committed by a financial institution. 437. Subsection 141(2) of the Act is repealed. 1992, c. 56 GREEN SHIELD CANADA ACT 1996, c. 6, s. 165(2) 438. (1) The portion of subsection 17(1) of the Green Shield Canada Act is replaced by the following: Application of the Insurance Companies Act 17. (1) Subject to any other provision of this Act, the following provisions of the Insurance Companies Act, together with any regulations made under or for the purposes of those provisions, apply to the Association, with any modifications that the circumstances require: 1996, c. 6, s. 165(2) (2) Paragraph 17(1)(d) of the Act is replaced by the following: C. 6 Financial I (d) section 53, paragraphs 54(a) and (c), subsections 56(1) and 58(2), paragraphs 59(1)(b) and (c), subsections 59(2) to (6), 60(1) and (2) and 61(1), paragraph 62(1)(a) and subsections 62(2) to (5) of Part IV; 2001, c. 9, s. 343(2) (3) Paragraph 17(1)(e) of the Act is replaced by the following: (e) sections 160 to 162, paragraphs 165(2)(a) to (e), (h) and (i), sections 166 and 167, subsection 168(1), sections 170 to 172, subsections 174(1) and (3) to (6), 174(7) (except the reference in it to subsection 173(4)) and 175(1) and (4), sections 177 and 189 to 194, subsection 195(1), sections 196, 202 and 203, subsections 204(1) and (2), paragraphs 204(3)(a) to (c), subsections 204(4) to (6), sections 205 and 206, paragraphs 207(a), (b), (c), (h) and (i), sections 208 to 215, paragraphs 216(2)(d) and (e), subsections 217(1) and (2), paragraphs 217(3)(a) and (c), sections 218 to 223, 244, 254, 255 and 260, subsections 261(1) and (2) and 262(1) to (6), sections 266 to 268, paragraphs 269(a) and (b), sections 270, 278, 279 and 330, subsections 331(1) and (2), paragraphs 331(3)(b) and (c), subsections 331(4) and (6), sections 332 to 357 and 359.1 to 380, paragraph 381(1)(a), subsection 381(2) and sections 382 to 406 of Part VI; 2001, c. 9, s. 343(3) (4) Paragraph 17(1)(f.1) of the Act is replaced by the following: (f.1) paragraphs 165(2)(f) and (g) of Part VI and sections 479 to 489, 489.2 and 489.3 of Part VIII; 2001, c. 9, s. 343(4) (5) Paragraph 17(1)(h) of the Act is replaced by the following: (h) sections 515 and 517 of Part X; and R.S., c. 28 (1st Supp.) 2001, c. 9, s. 589 INVESTMENT CANADA ACT 439. (1) Paragraph 10(1)(h) of the Investment Canada Act is replaced by the following: (h) any transaction to which Part XII.01 of the Bank Act applies; Institutions 2006-2007 1991, c. 47, s. 735 (2) Subparagraphs 10(1)(j)(ii) and (iii) of the Act are replaced by the following: (ii) a foreign entity that has been approved by order of the Superintendent of Financial Institutions under Part XIII of the Insurance Companies Act to insure in Canada risks, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act and the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under that Part, or (iii) a corporation incorporated in Canada, all the issued voting shares of which, other than the qualifying voting shares of directors, are owned by an insurance company described in subparagraph (i), a foreign entity described in subparagraph (ii) or by a corporation controlled directly or indirectly through the ownership of voting shares by such an insurance company or foreign entity, on the condition that, in the case of a foreign entity described in subparagraph (ii), the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under Part XIII of the Insurance Companies Act; and R.S., c. N-11 NATIONAL HOUSING ACT 440. The National Housing Act is amended by adding the following after section 17: Mortgage insurance 17.1 The Corporation may provide the liquidator of a company, society or foreign company within the meaning of subsection 2(1) of the Insurance Companies Act with services in relation to the company’s, society’s or foreign company’s mortgage insurance business, and it may acquire some or all of the company’s, C. 6 Financial I society’s or foreign company’s mortgage insurance policies or reinsure some or all of its mortgage insurance policies. 1996, c. 6, Sch. PAYMENT CLEARING AND SETTLEMENT ACT 441. Subsection 4(2) of the Payment Clearing and Settlement Act is replaced by the following: Revocation (2) The Governor of the Bank may revoke a designation if he or she is of the opinion that the designated clearing and settlement system may be operated in a manner that no longer poses a systemic risk and the Minister is of the opinion that revoking the designation is in the public interest. Notice (3) If a designation is made or revoked, the Governor of the Bank shall, in writing, so inform in advance the clearing and settlement system’s clearing house and shall cause a copy of the designation or revocation, as the case may be, to be published in the Canada Gazette. 2002, c. 14, s. 1 442. Paragraph (b) of the definition “securities and derivatives clearing house” in subsection 13.1(3) of the Act is replaced by the following: (b) the CDS Clearing and Depository Services Inc., a corporation incorporated under the Canada Business Corporations Act; or R.S., c. W-11; 1996, c. 6, s. 134 1996, c. 6, s. 135(2) “foreign insurance company” « société étrangère » 1992, c. 26, s. 19 WINDING-UP AND RESTRUCTURING ACT 443. The definition “foreign insurance company” in subsection 2(1) of the Winding-up and Restructuring Act is replaced by the following: “foreign insurance company” means an insurance company that is authorized under Part XIII of the Insurance Companies Act to insure in Canada risks; 444. Section 3 of the Act is amended by striking out the word “or” at the end of paragraph (h) and by replacing paragraph (i) with the following: 2006-2007 Institutions (i) if, in the case of a company that is a federal member institution, within the meaning assigned to that expression by the Canada Deposit Insurance Corporation Act, the shares and subordinated debt of which have been vested in the Canada Deposit Insurance Corporation by order of the Governor in Council under paragraph 39.13(1)(a) of that Act, a transaction or series of transactions referred to in subsection 39.2(1) of that Act is not, in the opinion of the Corporation, substantially completed on or before the date that is not later than (i) 60 days after the making of the order vesting the shares and subordinated debt of the federal member institution in the Corporation, or (ii) the expiration of any extension of that period; or (j) if, in the case of a company that is a federal member institution, within the meaning assigned to that expression by the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver by order of the Governor in Council under paragraph 39.13(1)(b) of that Act, a transaction or series of transactions referred to in subsection 39.2(2) of that Act is not, in the opinion of the Corporation, substantially completed on or before the date that is not later than (i) 60 days after the making of the order appointing the Corporation as receiver, or (ii) the expiration of any extension of that period. 1996, c. 6, s. 161 445. Paragraph 161(6)(b) of the Act is replaced by the following: (b) holders of policies of a class of insurance specified in the order of the Superintendent under Part XIII of the Insurance Companies Act, other than holders of a policy exempt from Part XIII by virtue of section 572.1 of that Act, and C. 6 1996, c. 6, s. 161 446. (1) Subsections 162(1) and (2) of the Act are replaced by the following: Transfer and reinsurance of policies by liquidator 162. (1) The liquidator may, with the approval of the court and without the consent of the policyholders, arrange for the transfer or reinsurance of Financial I (a) all or a portion of the policies of the company, in the case of a company other than a foreign company, or (b) all or a portion of the policies in respect of a foreign company’s insurance business in Canada in a company, society, foreign company or provincial company within the meaning of subsection 2(1) of the Insurance Companies Act or an insurance company incorporated by or under an Act of a legislature of a province and authorized under the laws of the province to issue policies of the class being transferred or reinsured, if the terms of the transfer or reinsurance are, in the opinion of the court having regard to the priorities set out in this Part, fair and equitable to (c) the policyholders whose policies are being transferred or reinsured, (d) the estate of the company as a whole, and 2006-2007 Institutions (e) the remaining policyholders of the company. Transfer and reinsurance of policies by liquidator (2) The liquidator may, with the approval of the court and without the consent of the policyholders, arrange for the transfer or reinsurance of all or a portion of the policies of the company, other than policies in respect of its insurance business in Canada, in any body corporate if the terms of the transfer or reinsurance are, in the opinion of the court, having regard to the priorities set out in this Part, fair and equitable to (a) the policyholders whose policies are being transferred or reinsured; (b) the estate of the company as a whole; and (c) the remaining policyholders of the company. (2) Section 162 of the Act is amended by adding the following after subsection (3): Mortgage insurance policies (4) The liquidator of a company, society or foreign company within the meaning of subsection 2(1) of the Insurance Companies Act may, with the approval of the court and the consent of the Canada Mortgage and Housing Corporation, and without the consent of the policyholders, arrange for the transfer to that corporation of all or a portion of the company’s, society’s or foreign company’s policies of mortgage insurance, or arrange for the reinsurance of all or a portion of those policies by that corporation. 1996, c. 6, s. 161 447. Section 165 of the Act is replaced by the following: Transfer to foreign liquidator 165. If a foreign company is in liquidation in the country in which its head office is situated, the Superintendent may, if the Superintendent considers it advisable and in the interests of policyholders in respect of the foreign company’s insurance business in Canada, authorize the liquidator, subject to the approval of the court, to transfer the assets of the foreign company to the liquidator in that country. 1996, c. 6, s. 161 448. Subsection 168(1) of the Act is replaced by the following: C. 6 Copy of statement filed in Office of the Superintendent 168. (1) A copy of the statement referred to in subsection 166(1), certified by the liquidator, shall be filed in the Office of the Superintendent, after not less than 30 days’ notice of the liquidator’s intention to do so has been given by the liquidator by notice in the Canada Gazette and in the official gazette of each province, and in two newspapers published at or nearest the place where the head office of the company or the chief agency of the company, as the case may be, is situated. 1996, c. 6, s. 161 449. Section 171 of the Act is replaced by the following: Publication of notice of proceedings 171. Publication in the Canada Gazette, in the official gazette of each province and in two newspapers published at or nearest the place where the head office of the company or chief agency of the company, as the case may be, is situated, of notice of any proceedings of which, under this Act, creditors should be notified, is sufficient notice to holders of policies in respect of which no notice of claim has been received. Financial I PART 6 COORDINATING AMENDMENTS AND COMING INTO FORCE COORDINATING AMENDMENTS 2005, c. 54 450. On the later of the day on which subsection 213(2) of An Act to amend certain Acts in relation to financial institutions, being chapter 54 of the Statutes of Canada, 2005, comes into force and the day on which subsection 438(3) of this Act comes into force ― or, if those days are the same day, then on that day ― paragraph 17(1)(e) of the Green Shield Canada Act is replaced by the following: (e) sections 160 to 162, paragraphs 165(2)(a) to (d), (h) and (i), sections 166 and 167, subsection 168(1), sections 170 to 172, subsections 174(1) and (3) to (6), 174(7) (except the reference in it to subsection 173(4)) and 175(1) and (4), sections 177 and 189 to 194, subsection 195(1), sections 196, 202 and 203, subsections 204(1) and (2), paragraphs 204(3)(a) to (c), subsections Institutions 2006-2007 204(4) to (6), sections 205 and 206, paragraphs 207(a) to (c), (h) and (i), sections 208 to 215, paragraphs 216(2)(d) and (e), subsections 217(1) and (2), paragraphs 217(3)(a) and (c), sections 218 to 223, 244, 254, 255 and 260, subsections 261(1) and (2) and 262(1) to (6), sections 266 to 268, paragraphs 269(a) and (b), sections 270, 278, 279 and 330, paragraphs 331(1)(a) and (b) to (e), subsection 331(2), paragraphs 331(3)(b) and (c), subsections 331(4) and (6), sections 332 to 357 and 359.1 to 380, paragraph 381(1)(a), subsection 381(2) and sections 382 to 406 of Part VI; 2005, c. 54 451. On the later of the day on which section 416 of An Act to amend certain Acts in relation to financial institutions, being chapter 54 of the Statutes of Canada, 2005, comes into force and the day on which section 352 of this Act comes into force ― or, if those days are the same day, then on that day ― subsection 245(3) of the English version of the Trust and Loan Companies Act is replaced by the following: Entitlement (3) A shareholder or creditor of a company or their personal representative — or if the company is a distributing company, any person — is entitled to a basic list of shareholders of the company. COMING INTO FORCE Order in council 452. The provisions of this Act, or the provisions of any Act enacted by this Act, come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 28 An Act to amend the Criminal Code (unauthorized recording of a movie) ASSENTED TO 22nd JUNE, 2007 BILL C-59 SUMMARY This enactment amends the Criminal Code to prohibit the unauthorized recording of a movie in a movie theatre (camcording). Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 28 An Act to amend the Criminal Code (unauthorized recording of a movie) [Assented to 22nd June, 2007] R.S., c. C-46 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. The Criminal Code is amended by adding the following after section 431.2: Unauthorized recording of a movie 432. (1) A person who, without the consent of the theatre manager, records in a movie theatre a performance of a cinematographic work within the meaning of section 2 of the Copyright Act or its soundtrack (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than two years; or (b) is guilty of an offence punishable on summary conviction. Unauthorized recording for purpose of sale, etc. (2) A person who, without the consent of the theatre manager, records in a movie theatre a performance of a cinematographic work within the meaning of section 2 of the Copyright Act or its soundtrack for the purpose of the sale, rental or other commercial distribution of a copy of the cinematographic work (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction. Forfeiture (3) In addition to any punishment that is imposed on a person who is convicted of an offence under this section, the court may order that anything that is used in the commission of C. 28 Criminal Code (unauthori the offence be forfeited to Her Majesty in right of the province in which the proceedings are taken. Anything that is forfeited may be disposed of as the Attorney General directs. Forfeiture — limitation (4) No order may be made under subsection (3) in respect of anything that is the property of a person who is not a party to the offence. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 14 An Act to amend the Divorce Act (access for spouse who is terminally ill or in critical condition) ASSENTED TO 31st MAY, 2007 BILL C-252 SUMMARY This enactment amends the Divorce Act to provide that, in the case of a former spouse who is terminally ill or in critical condition, the court shall make a variation order in respect of access that is in the best interests of the child. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 14 An Act to amend the Divorce Act (access for spouse who is terminally ill or in critical condition) [Assented to 31st May, 2007] R.S., c. 3 (2nd Supp.) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Section 17 of the Divorce Act is amended by adding the following after subsection (5): Variation order (5.1) For the purposes of subsection (5), a former spouse’s terminal illness or critical condition shall be considered a change of circumstances of the child of the marriage, and the court shall make a variation order in respect of access that is in the best interests of the child. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 10 An Act to amend the Canada Elections Act ASSENTED TO 3rd MAY, 2007 BILL C-16 SUMMARY This enactment amends the Canada Elections Act to provide that, subject to an earlier dissolution of Parliament, a general election must be held on the third Monday in October in the fourth calendar year following polling day for the last general election, with the first general election after this enactment comes into force being held on Monday, October 19, 2009. The enactment also provides that the Chief Electoral Officer may recommend an alternate day if the day set for polling is not suitable. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 10 An Act to amend the Canada Elections Act [Assented to 3rd May, 2007] 2000, c. 9 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. The Canada Elections Act is amended by adding the following before the heading “WRITS OF ELECTION” before section 57: DATE OF GENERAL ELECTION Powers of Governor General preserved 56.1 (1) Nothing in this section affects the powers of the Governor General, including the power to dissolve Parliament at the Governor General’s discretion. Election dates (2) Subject to subsection (1), each general election must be held on the third Monday of October in the fourth calendar year following polling day for the last general election, with the first general election after this section comes into force being held on Monday, October 19, 2009. Alternate day 56.2 (1) If the Chief Electoral Officer is of the opinion that a Monday that would otherwise be polling day under subsection 56.1(2) is not suitable for that purpose, including by reason of its being in conflict with a day of cultural or religious significance or a provincial or municipal election, the Chief Electoral Officer may choose another day in accordance with subsection (4) and shall recommend to the Governor in Council that polling day be that other day. C. 10 Publication of recommendation (2) If the Chief Electoral Officer recommends an alternate day for a general election in accordance with subsection (1), he or she shall without delay publish in the Canada Gazette notice of the day recommended. Making and publication of order (3) If the Governor in Council accepts the recommendation, the Governor in Council shall make an order to that effect. The order must be published without delay in the Canada Gazette. Limitation (4) The alternate day must be either the Tuesday immediately following the Monday that would otherwise be polling day or the Monday of the following week. Timing of proclamation (5) An order under subsection (3) shall not be made after August 1 in the year in which the general election is to be held. Canada E 2. Subsections 57(3) to (5) of the Act are replaced by the following: Election held on a Monday (3) Subject to subsection (4) and section 56.2, polling day shall be on a Monday. Exception (4) In the case of a general election that is not held on a day set in accordance with subsection 56.1(2) or section 56.2, if, in the week in which the election is to be held, the Monday is a holiday, polling day shall be held on the Tuesday of that week. Times when polling day is a Tuesday (5) If the day fixed for the vote is a Tuesday because of subsection (4) or section 56.2, any time period specified under this Act before or after polling day is to be calculated as if polling day were the Monday. 2001, c. 21, s. 6 3. Section 58 of the Act is replaced by the following: Writs forwarded to returning officer 58. The Chief Electoral Officer shall issue a writ in Form 1 of Schedule 1 to the returning officer for the electoral district in which the election is to be held without delay after the proclamation is issued or the order is made under section 57. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 2 A second Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006 ASSENTED TO 21st FEBRUARY, 2007 BILL C-28 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “A second Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006”. SUMMARY Part 1 implements the following income tax measures proposed or referenced in Budget 2006: – the new Canada Employment Credit; – the new Textbook Tax Credit; – the new tax credit for public transit passes; – the new deduction for tradespeople’s tool expenses; – a complete exemption for scholarship income received in connection with enrolment at an institution which qualifies the student for the education tax credit; – the new Children’s Fitness Tax Credit; – a doubling, to $2,000 from $1,000, of the amount on which the pension income credit is calculated; – an extension of the $500,000 lifetime capital gains exemption, and various intergenerational rollovers, to fishers; – the new Apprenticeship Job Creation Tax Credit; – a reduction of the current 12 per cent small business tax rate to 11.5 per cent for 2008 and to 11 per cent thereafter; – an increase, to $400,000 from $300,000, of the amount that a small business can earn at the small business tax rate, effective January 1, 2007; and – a reduction of the minimum tax on financial institutions. Part 2 implements the proposal in Budget 2006 to lower the income tax rate on large corporation dividends received by Canadians. Part 3 implements the proposal in Budget 2006 to reduce excise duties for Canadian vintners and brewers. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS A SECOND ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON MAY 2, 2006 SHORT TITLE 1. Budget Implementation Act, 2006, No. 2 PART 1 AMENDMENTS TO THE INCOME TAX ACT 2-42. Income Tax Act PART 2 AMENDMENTS TO THE INCOME TAX ACT (DIVIDEND TAXATION) 43-54. Income Tax Act PART 3 AMENDMENTS RELATING TO THE EXCISE DUTIES ON CANADIAN WINE AND BEER 55-57. Excise Act, 2001 58-63. Excise Act 55-56 ELIZABETH II —————— CHAPTER 2 A second Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006 [Assented to 21st February, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Budget Implementation Act, 2006, No. 2. PART 1 R.S., c. 1 (5th Supp.) AMENDMENTS TO THE INCOME TAX ACT 2. (1) Clause (B) of the description of B in subparagraph 8(1)(r)(ii) of the Income Tax Act is replaced by the following: (B) the greater of (I) the amount that is the total of $500 and the amount determined for the taxation year for B in subsection 118(10), and (II) 5% of the total of 1. the total of all amounts each of which is the taxpayer’s income from employment for the taxation year as an eligible apprentice mechanic, computed without reference to this paragraph, and C. 2 Budget Implementa 2. the amount, if any, by which the amount required by paragraph 56(1)(n.1) to be included in computing the taxpayer’s income for the taxation year exceeds the amount required by paragraph 60(p) to be deducted in computing that income, and (2) Subsection 8(1) of the Act is amended by striking out the word “and” at the end of paragraph (q), by adding the word “and” at the end of paragraph (r) and by adding the following after paragraph (r): Deduction — tradesperson’s tools (s) if the taxpayer is employed as a tradesperson at any time in the taxation year, the lesser of $500 and the amount determined by the formula A - $1,000 where A is the lesser of (i) the total of all amounts each of which is the cost of an eligible tool acquired by the taxpayer in the year, and (ii) the total of (A) the amount that would, if this subsection were read without reference to this paragraph, be the taxpayer’s income for the taxation year from employment as a tradesperson in the taxation year, and (B) the amount, if any, by which the amount required by paragraph 56(1)(n.1) to be included in computing the taxpayer’s income for the taxation year exceeds the amount required by paragraph 60(p) to be deducted in computing that income. (3) Subparagraph 8(6)(a)(i) of the Act is replaced by the following: 2006-2007 Exécution du bud (i) is registered in a program established in accordance with the laws of Canada or of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and (4) Paragraph 8(6)(b) of the Act is amended by striking out the word “and” at the end of subparagraph (ii) and by adding the following after subparagraph (iii): (iv) is, unless the device or equipment can be used only for the purpose of measuring, locating or calculating, not an electronic communication device or electronic data processing equipment; and (5) Subsection 8(7) of the Act is replaced by the following: Eligible tool of tradesperson (6.1) For the purposes of paragraph (1)(s), an eligible tool of a taxpayer is a tool (including ancillary equipment) that (a) is acquired by the taxpayer on or after May 2, 2006 for use in connection with the taxpayer’s employment as a tradesperson; (b) has not been used for any purpose before it is acquired by the taxpayer; (c) is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as a tradesperson; and (d) is, unless the device or equipment can be used only for the purpose of measuring, locating or calculating, not an electronic communication device or electronic data processing equipment. Cost of tool (7) Except for the purposes of the description of A in subparagraph (1)(r)(ii) and the description of A in paragraph (1)(s), the cost to a taxpayer of an eligible tool the cost of which was included in determining the value of one or both of those descriptions in respect of the taxpayer for a taxation year is the amount determined by the formula K - (K × L/M) C. 2 Budget Implementa where K is the cost to the taxpayer of the tool determined without reference to this subsection; L is (a) if the tool is a tool to which only paragraph (1)(r) applies in the taxation year, the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil, (b) if the tool is a tool to which only paragraph (1)(s) applies in the taxation year, the amount determined under that paragraph to be deductible by the taxpayer in the taxation year, or (c) if the tool is a tool to which both paragraphs (1)(r) and (s) apply in the taxation year, the amount that is the total of (i) the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil, and (ii) the amount determined under paragraph (1)(s) to be deductible by the taxpayer in the taxation year; and M is the amount that is (a) if the tool is a tool to which only paragraph (1)(r) applies in the taxation year, the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year, (b) if the tool is a tool to which only paragraph (1)(s) applies in the taxation year, the amount determined under subparagraph (i) of the description of A in paragraph (1)(s) in respect of the taxpayer for the taxation year, and (c) if the tool is a tool to which both paragraphs (1)(r) and (s) apply in the taxation year, the amount that is the greater of the value of A determined 2006-2007 Exécution du bud under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year and the amount determined under subparagraph (i) of the description of A in paragraph (1)(s) in respect of the taxpayer for the taxation year. (6) Subsection (1) applies to the 2006 and subsequent taxation years except that, for the 2006 taxation year, subclause (B)(I) of the description of B in subparagraph 8(1)(r)(ii) of the Act, as enacted by subsection (1), is to be read as follows: (I) the amount that is the total of $1,000 and the amount, if any, deducted by the taxpayer for the taxation year under paragraph (1)(s), and (7) Subsections (2) and (5) apply to the 2006 and subsequent taxation years. (8) Subsections (3) and (4) apply to property acquired on or after May 2, 2006. 3. (1) The portion of subsection 14(1.01) of the Act before paragraph (c) is replaced by the following: Election re capital gain (1.01) A taxpayer may, in the taxpayer’s return of income for a taxation year, or with an election under subsection 83(2) filed on or before the taxpayer’s filing-due date for the taxation year, elect that the following rules apply to a disposition made at any time in the year of an eligible capital property in respect of a business, if the taxpayer’s actual proceeds of the disposition exceed the taxpayer’s eligible capital expenditure in respect of the acquisition of the property, that eligible capital expenditure can be determined and, for taxpayers who are individuals, the taxpayer’s exempt gains balance in respect of the business for the taxation year is nil: (a) for the purpose of subsection (5) other than the description of A in the definition “cumulative eligible capital”, the proceeds of disposition of the property are deemed to be equal to the amount of that eligible capital expenditure; C. 2 Budget Implementa (b) the taxpayer is deemed to have disposed at that time of a capital property that had, immediately before that time, an adjusted cost base to the taxpayer equal to the amount of that eligible capital expenditure, for proceeds of disposition equal to the actual proceeds; and (2) Paragraph 14(1.01)(c) of the Act is replaced by the following: (c) if the eligible capital property is (i) a qualified farm property (within the meaning assigned by subsection 110.6(1)) of the taxpayer at that time, the capital property deemed by paragraph (b) to have been disposed of by the taxpayer is deemed to be a qualified farm property of the taxpayer at that time, and (ii) a qualified fishing property (within the meaning assigned by subsection 110.6(1)) of the taxpayer at that time, the capital property deemed by paragraph (b) to have been disposed of by the taxpayer is deemed to be a qualified fishing property of the taxpayer at that time. (3) Section 14 of the Act is amended by adding the following after subsection (1.01): Election re property acquired with pre-1972 outlays or expenditures (1.02) If at any time in a taxation year a taxpayer has disposed of an eligible capital property in respect of which an outlay or expenditure to acquire the property was made before 1972 (which outlay or expenditure would have been an eligible capital expenditure if it had been made or incurred as a result of a transaction that occurred after 1971), the taxpayer’s actual proceeds of the disposition exceed the total of those outlays or expenditures, that total can be determined, subsection 21(1) of the Income Tax Application Rules applies in respect of the disposition and, for taxpayers who are individuals, the taxpayer’s exempt gains balance in respect of the business for the taxation year is nil, the taxpayer may, in the taxpayer’s return of income for the taxation year, or with an election under subsection 83(2) 2006-2007 Exécution du bud filed on or before the taxpayer’s filing-due date for the taxation year, elect that the following rules apply: (a) for the purpose of subsection (5) other than the description of A in the definition “cumulative eligible capital”, the proceeds of disposition of the property are deemed to be nil; (b) the taxpayer is deemed to have disposed at that time of a capital property that had, immediately before that time, an adjusted cost base to the taxpayer equal to nil, for proceeds of disposition equal to the amount determined, in respect of the disposition, under subsection 21(1) of the Income Tax Application Rules; and (c) if the eligible capital property is at that time a qualified farm property (within the meaning assigned by subsection 110.6(1)) of the taxpayer, the capital property deemed by paragraph (b) to have been disposed of by the taxpayer is deemed to have been at that time a qualified farm property of the taxpayer. Non-application of subsections (1.01) and (1.02) (1.03) Subsections (1.01) and (1.02) do not apply to a disposition by a taxpayer of a property (a) that is goodwill; or (b) that was acquired by the taxpayer (i) in circumstances where an election was made under subsection 85(1) or (2) and the amount agreed on in that election in respect of the property was less than the fair market value of the property at the time it was so acquired, and (ii) from a person or partnership with whom the taxpayer did not deal at arm’s length and for whom the eligible capital expenditure in respect of the acquisition of the property cannot be determined. (4) Paragraph 14(1.02)(c) of the Act, as enacted by subsection (3), is replaced by the following: (c) if the eligible capital property is C. 2 Budget Implementa (i) a qualified farm property (within the meaning assigned by subsection 110.6(1)) of the taxpayer at that time, the capital property deemed by paragraph (b) to have been disposed of by the taxpayer is deemed to be a qualified farm property of the taxpayer at that time, and (ii) a qualified fishing property (within the meaning assigned by subsection 110.6(1)) of the taxpayer at that time, the capital property deemed by paragraph (b) to have been disposed of by the taxpayer is deemed to be a qualified fishing property of the taxpayer at that time. (5) Section 14 of the Act is amended by adding the following after subsection (1.1): Deemed capital gain (1.2) For the purposes of section 110.6 and paragraph 3(b) as it applies for the purposes of that section, an amount included under paragraph (1)(b) in computing a taxpayer’s income for a particular taxation year from a fishing business is deemed to be a taxable capital gain of the taxpayer for the year from the disposition in the year of qualified fishing property to the extent of the lesser of (a) the amount included under paragraph (1)(b) in computing the taxpayer’s income for the particular year from the fishing business, and (b) the amount determined by the formula A-B where A is the amount by which (i) ½ of the total of all amounts each of which is the taxpayer’s proceeds from a disposition on or after May 2, 2006 and in the particular taxation year or a preceding taxation year of eligible capital property (referred to in this subsection as a “disposed property”) that was at the time of the disposition a qualified fishing property (within the meaning assigned by subsection 110.6(1)) of the taxpayer exceeds the total of 2006-2007 Exécution du bud (ii) ½ of the total of all amounts each of which is (A) an eligible capital expenditure of the taxpayer in respect of the fishing business that was made or incurred in respect of a disposed property, or (B) an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and that was made or incurred for the purpose of making a disposition of a disposed property, and B is the total of all amounts each of which is an amount deemed by this section to be a taxable capital gain of the taxpayer for a taxation year preceding the particular year from the disposition of qualified fishing property of the taxpayer. (6) The description of E in the definition “cumulative eligible capital” in subsection 14(5) of the Act is replaced by following: E is the total of all amounts each of which is ¾ of the amount, if any, by which (a) an amount that the taxpayer has or may become entitled to receive, after the taxpayer’s adjustment time and before that time, on account of capital in respect of the business carried on or formerly carried on by the taxpayer, other than an amount that (i) is included in computing the taxpayer’s income, or deducted in computing, for the purposes of this Act, any balance of undeducted outlays, expenses or other amounts for the year or a preceding taxation year, C. 2 Budget Implementa (ii) reduces the cost or capital cost of a property or the amount of an outlay or expense, or (iii) is included in computing any gain or loss of the taxpayer from a disposition of a capital property exceeds (b) all outlays and expenses that were not otherwise deductible in computing the taxpayer’s income and were made or incurred by the taxpayer for the purpose of obtaining the amount described by paragraph (a), and (7) Subsection (1) applies to dispositions of eligible capital property that occur in taxation years that end after February 27, 2000, except that, in its application to those dispositions of eligible capital property that occur before December 21, 2002, the portion of subsection 14(1.01) of the Act before paragraph (c), as enacted by subsection (1), is to be read as follows: (1.01) A taxpayer may, in the taxpayer’s return of income for a taxation year, elect that the following rules apply to a disposition made at any time in the taxation year of an eligible capital property (other than goodwill) in respect of a business, if the taxpayer’s actual proceeds of the disposition exceed the taxpayer’s cost of the property, that cost can be determined and, for taxpayers who are individuals, the taxpayer’s exempt gains balance in respect of the business for the taxation year is nil: (a) for the purposes of subsection (5), the proceeds of disposition of the property are deemed to be equal to that cost; (b) the taxpayer is deemed to have disposed at that time of a capital property that had, immediately before that time, an adjusted cost base to the taxpayer equal to that cost, for proceeds of disposition equal to the actual proceeds; and 2006-2007 Exécution du bud (8) Subsections (2), (4) and (5) apply to dispositions of property that occur on or after May 2, 2006. (9) Subsection (3) applies to dispositions of eligible capital property that occur after December 20, 2002, except that, in applying subsection 14(1.03) of the Act, as enacted by subsection (3), to dispositions that occur on or before February 27, 2004, subsection 14(1.03) is to be read without reference to its paragraph (b). (10) Subsection (6) applies to amounts that become receivable on or after May 2, 2006, except that it does not apply to an amount that became receivable by a taxpayer before August 31, 2006 if the taxpayer so elects by filing with the Minister of National Revenue an election in writing on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes August 31, 2006. 4. (1) Subsection 40(1.1) of the Act is replaced by the following: Reserve — property disposed of to a child (1.1) In computing the amount that a taxpayer may claim under subparagraph (1)(a)(iii) in computing the taxpayer’s gain from the disposition of a property, that subparagraph shall be read as if the references in that subparagraph to “1/5” and “4” were references to “1/10” and “9” respectively, if, (a) the property was disposed of by the taxpayer to the taxpayer’s child, (b) that child was resident in Canada immediately before the disposition, and (c) the property was immediately before the disposition, (i) any land in Canada or depreciable property in Canada of a prescribed class that was used by the taxpayer, the spouse or common-law partner of the taxpayer, a child or a parent of the taxpayer in a farming or fishing business carried on in Canada, (ii) a share of the capital stock of a family farm corporation of the taxpayer or an interest in a family farm partnership of the C. 2 Budget Implementa taxpayer (such a share or an interest having the meaning assigned by subsection 70(10)), (iii) a qualified small business corporation share of the taxpayer (within the meaning assigned by subsection 110.6(1)), or (iv) a share of the capital stock of a family fishing corporation of the taxpayer or an interest in a family fishing partnership (such a share or an interest having the meaning assigned by subsection 70(10)). (2) Subsection (1) applies to dispositions of property that occur on or after May 2, 2006. 5. (1) Subsection 44(1.1) of the Act is replaced by the following: Reserve — property disposed of to a child (1.1) In computing the amount that a taxpayer may claim under subparagraph (1)(e)(iii) in computing the taxpayer’s gain from the disposition of a former property of the taxpayer, that subparagraph shall be read as if the references in that subparagraph to “1/5” and “4” were references to “1/10” and “9” respectively if that former property is real or immovable property in respect of the disposition of which, because of subsection 73(3), the rules in subsection 73(3.1) applied to the taxpayer and a child of the taxpayer. (2) Subsection (1) applies to dispositions of property that occur on or after May 2, 2006. 6. (1) Paragraph 56(1)(k) of the Act is replaced by the following: Certain tools of an employee, re proceeds (k) all amounts received in the year by a person or partnership (in this paragraph referred to as the “vendor”) as consideration for the disposition by the vendor of a property the cost of which was included in computing an amount under paragraph 8(1)(r) or (s) in respect of the vendor or in respect of a person with whom the vendor does not deal at arm’s length, to the extent that the total of those amounts received in respect of the disposition in the year and in preceding taxation years exceeds the total of the cost to the vendor of the property immediately before the disposi2006-2007 Exécution du bud tion and all amounts included in respect of the disposition under this paragraph in computing the vendor’s income for a preceding taxation year, unless the property was acquired by the vendor in circumstances to which subsection 85(5.1) or subsection 97(5) applied; (2) Subsection 56(1) of the Act is amended by adding the following after paragraph (n): Apprenticeship incentive grant (n.1) amounts received by the taxpayer in the year under the Apprenticeship Incentive Grant program administered by the Department of Human Resources and Social Development; (3) Subsection 56(3) of the Act is replaced by the following: Exemption for scholarships, fellowships, bursaries and prizes (3) For the purpose of subparagraph (1)(n)(ii), a taxpayer’s scholarship exemption for a taxation year is the total of (a) the total of all amounts each of which is the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of a scholarship, fellowship or bursary received in connection with the taxpayer’s enrolment in an educational program in respect of which an amount may be deducted under subsection 118.6(2) in computing the taxpayer’s tax payable under this Part for the taxation year, (b) the total of all amounts each of which is the lesser of (i) the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of a scholarship, fellowship, bursary or prize that is to be used by the taxpayer in the production of a literary, dramatic, musical or artistic work, and (ii) the total of all amounts each of which is an expense incurred by the taxpayer in the taxation year for the purpose of fulfilling the conditions under which the amount described in subparagraph (i) was received, other than C. 2 Budget Implementa (A) personal or living expenses of the taxpayer (except expenses in respect of travel, meals and lodging incurred by the taxpayer in the course of fulfilling those conditions and while absent from the taxpayer’s usual place of residence for the period to which the scholarship, fellowship, bursary or prize, as the case may be, relates), (B) expenses for which the taxpayer is entitled to be reimbursed, and (C) expenses that are otherwise deductible in computing the taxpayer’s income, and (c) the lesser of $500 and the amount by which the total described in subparagraph (1)(n)(i) for the taxation year exceeds the total of the amounts determined under paragraphs (a) and (b). (4) Subsection 56(8) of the Act is replaced by the following: CPP/QPP and UCCB amounts for previous years (8) Notwithstanding subsections (1) and (6), if (a) one or more amounts are received by an individual (other than a trust) in a taxation year as, on account of, in lieu of payment of or in satisfaction of, any benefit under the Universal Child Care Benefit Act, the Canada Pension Plan or a provincial pension plan as defined in section 3 of the Canada Pension Plan, and (b) a portion, not less than $300, of the total of those amounts relates to one or more preceding taxation years, that portion shall, at the option of the individual, not be included in the individual’s income. (5) Subsections (1), (3) and (4) apply to the 2006 and subsequent taxation years. (6) Subsection (2) applies to the 2007 and subsequent taxation years. 7. (1) Section 60 of the Act is amended by adding the following after paragraph (o.1): 2006-2007 Repayment of apprenticeship incentive grant Exécution du bud (p) the total of all amounts each of which is an amount paid in the taxation year as a repayment under the Apprenticeship Incentive Grant program of an amount that was included because of paragraph 56(1)(n.1) in computing the taxpayer’s income for the taxation year or a preceding taxation year; (2) Subsection (1) applies to the 2007 and subsequent taxation years. 8. (1) Paragraph (b) of the definition “earned income” in subsection 63(3) of the Act is replaced by the following: (b) all amounts that are included, or that would, but for paragraph 81(1)(a) or subsection 81(4), be included, because of section 6 or 7 or paragraph 56(1) (n), (n.1), (o) or (r), in computing the taxpayer’s income, (2) Subsection (1) applies to the 2007 and subsequent taxation years. 9. (1) Clause (ii)(J) of the description of A in paragraph 64(a) of the Act is replaced by the following: (J) where the taxpayer has an impairment in physical or mental functions, for the cost of attendant care services provided in Canada and to a person who is neither the taxpayer’s spouse or common-law partner nor under 18 years of age, if the taxpayer is a taxpayer in respect of whom an amount may be deducted because of section 118.3, or if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment is, and is likely to be indefinitely, dependent on others for their personal needs and care and who as a result requires a full-time attendant, (2) Subsection (1) applies to the 2005 and subsequent taxation years. 10. (1) Subsections 70(9) to (9.3) of the Act are replaced by the following: C. 2 When subsection (9.01) applies (9) Subsection (9.01) applies to a taxpayer and a child of the taxpayer in respect of land in Canada or depreciable property in Canada of a prescribed class of the taxpayer in respect of which subsection (5) would, if this Act were read without reference to this subsection, apply if Budget Implementa (a) the property was, before the death of the taxpayer, used principally in a fishing or farming business carried on in Canada in which the taxpayer, the spouse or commonlaw partner of the taxpayer or a child or a parent of the taxpayer was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot); (b) the child of the taxpayer was resident in Canada immediately before the day on which the taxpayer died; and (c) as a consequence of the death of the taxpayer, the property is transferred to and becomes vested indefeasibly in the child within the period ending 36 months after the death of the taxpayer or, if written application has been made to the Minister by the taxpayer’s legal representative within that period, within any longer period that the Minister considers reasonable in the circumstances. Transfer of farming and fishing property to child (9.01) If, because of subsection (9), this subsection applies to the taxpayer and a child of the taxpayer in respect of a property of the taxpayer that has been transferred to the child as a consequence of the death of the taxpayer, the following rules apply: (a) where the taxpayer’s legal representative does not elect in the taxpayer’s return of income under this Part for the year in which the taxpayer died, to have paragraph (b) apply to the taxpayer and the child in respect of the property, (i) paragraphs (5)(a) and (b) and section 69 do not apply to the taxpayer and the child in respect of the property, (ii) the taxpayer is deemed to have 2006-2007 Exécution du bud (A) disposed of the property immediately before the taxpayer’s death, and (B) received, at the time of the disposition of the property, proceeds of disposition in respect of that disposition of the property equal to (I) where the property was depreciable property of a prescribed class, the lesser of 1. the capital cost to the taxpayer of the property, and 2. the amount, determined immediately before the time of the disposition of the property, that is that proportion of the undepreciated capital cost of property of that class to the taxpayer that the capital cost to the taxpayer of the property is of the capital cost to the taxpayer of all property of that class that had not, at or before that time, been disposed of, and (II) where the property is land (other than land to which subclause (I) applies), the adjusted cost base to the taxpayer of the property immediately before the time of the disposition of the property, (iii) the child is, immediately after the time of the disposition of the property, deemed to have acquired the property at a cost equal to the taxpayer’s proceeds of disposition in respect of the disposition of the property determined under subparagraph (ii), and (iv) where the property was depreciable property of a prescribed class, paragraphs (5)(c) and (d) apply to the taxpayer and the child in respect of the property as if the references in those paragraphs to “paragraph (a)” and “paragraph (b)” were read as “subparagraph (9.01)(a)(ii)” and “subparagraph (9.01)(a)(iii)”, respectively; and (b) where the taxpayer’s legal representative elects, in the taxpayer’s return of income under this Part for the taxation year in which C. 2 Budget Implementa the taxpayer died, to have this paragraph apply to the taxpayer in respect of the property, (i) paragraphs (5)(a) and (b) and section 69 do not apply to the taxpayer and the child in respect of the property, (ii) the taxpayer is deemed to have (A) disposed of the property immediately before the taxpayer’s death, and (B) received, at the time of the disposition of the property, proceeds of disposition in respect of that disposition of the property equal to (I) where the property was depreciable property of a prescribed class, the amount that the legal representative designates, which must not be greater than the greater of nor less than the lesser of 1. the fair market value of the property immediately before the time of the disposition of the property, and 2. the lesser of the capital cost to the taxpayer of the property and the amount, determined immediately before the time of the disposition of the property, that is that proportion of the undepreciated capital cost of property of that class to the taxpayer that the capital cost to the taxpayer of the property is of the capital cost to the taxpayer of all property of that class that had not, at or before that time, been disposed of, and (II) where the property is land (other than land to which subclause (I) applies), the amount that the legal representative designates, which must not be greater than the greater of nor less than the lesser of 1. the fair market value of the property immediately before the time of the disposition of the property, and 2006-2007 Exécution du bud 2. the adjusted cost base to the taxpayer of the property immediately before the time of the disposition of the property, (iii) the child is, immediately after the time of the disposition of the property, deemed to have acquired the property at a cost equal to the taxpayer’s proceeds of disposition in respect of the disposition of the property determined under subparagraph (ii), (iv) where the property was depreciable property of a prescribed class, paragraphs (5)(c) and (d) apply to the taxpayer in respect of the property as if the references in those paragraphs to “paragraph (a)” and “paragraph (b)” were read as “subparagraph (9.01)(b)(ii)” and “subparagraph (9.01)(b)(iii)”, respectively, (v) except for the purpose of this subparagraph, (A) where the amount designated by the taxpayer’s legal representative under subclause (ii)(B)(I), exceeds the greater of the amounts determined under subsubclauses (ii)(B)(I)1 and 2 in respect of the property, the amount designated is deemed to be equal to the greater of those amounts, and (B) where the amount designated by the taxpayer’s legal representative under subclause (ii)(B)(II) exceeds the greater of the amounts determined under subsubclauses (ii)(B)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the greater of those amounts, and (vi) except for the purpose of this subparagraph, (A) where the amount designated by the taxpayer’s legal representative under subclause (ii)(B)(I) is less than the lesser of the amounts determined under subsubclauses (ii)(B)(I)1 and 2 in respect of the property, the amount designated is deemed to be equal to the lesser of those amounts, and C. 2 Budget Implementa (B) where the amount designated by the taxpayer’s legal representative under subclause (ii)(B)(II) is less than the lesser of the amounts determined under sub-subclauses (ii)(B)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the lesser of those amounts. When subsection (9.11) applies (9.1) Subsection (9.11) applies to a trust and a child of the settlor of the trust in respect of a property in respect of which subsection 104(4) or (5) would, if this Act were read without reference to this subsection, apply to the trust as a consequence of the death of the beneficiary under the trust who was a spouse or a commonlaw partner of the settlor if (a) the property (or property for which the property was substituted) was transferred to the trust by the settlor; (b) subsection (6), subsection 73(1) (as that subsection applied to transfers before 2000) or subparagraph 73(1.01)(c)(i) applied to the settlor and the trust in respect of the transfer referred to in paragraph (a); (c) the property is, immediately before the beneficiary’s death, land or a depreciable property of a prescribed class of the trust that was used in a fishing or farming business carried on in Canada; (d) the child of the settlor is, immediately before the beneficiary’s death, resident in Canada; and (e) as a consequence of the beneficiary’s death, the property is transferred to and becomes vested indefeasibly in the child of the settlor within the period ending 36 months after that beneficiary’s death or, if written application has been made to the Minister by the taxpayer’s legal representa2006-2007 Exécution du bud tive within that period, within any longer period that the Minister considers reasonable in the circumstances. Transfer of farming and fishing property from trust to settlor’s children (9.11) If, because of subsection (9.1), this subsection applies to the trust and a child of the settlor of the trust in respect of a property of the trust that has been distributed to the child as a consequence of the death of the beneficiary under the trust who was the spouse or commonlaw partner of the settlor, the following rules apply: (a) where the trust does not elect, in its return of income under this Part for the taxation year in which the beneficiary died, to have paragraph (b) apply to the trust in respect of the property, (i) subsections 104(4) and (5) and section 69 do not apply to the trust and the child in respect of the property, (ii) the trust is deemed to have (A) disposed of the property immediately before the beneficiary’s death, and (B) received, at the time of the disposition, proceeds of disposition in respect of that disposition equal to (I) where the property was depreciable property of a prescribed class, the lesser of 1. the capital cost to the trust of the property, and 2. the amount, determined immediately before the time of the disposition of the property, that is that proportion of the undepreciated capital cost of property of that class to the trust that the capital cost to the trust of the property is of the capital cost to the trust of all property of that class that had not, at or before that time, been disposed of, and (II) where the property is land (other than land to which subclause (I) applies), the adjusted cost base to C. 2 Budget Implementa the trust of the property immediately before the time of the disposition of the property, and (iii) the child is, immediately after the time of the disposition of the property, deemed to have acquired the property at a cost equal to the trust’s proceeds of disposition in respect of the disposition of the property determined under subparagraph (ii); (b) where the trust elects, in the trust’s return of income under this Part for the taxation year in which the beneficiary died, to have this paragraph apply to the trust in respect of the property, (i) subsections 104(4) and (5) do not apply to the trust in respect of the property, (ii) the trust is deemed to have (A) disposed of the property immediately before the beneficiary’s death, and (B) received, at the time of the disposition of the property, proceeds of disposition in respect of the disposition of the property equal to (I) where the property was depreciable property of a prescribed class, the amount that the trust designates, which must not be greater than the greater of nor less than the lesser of 1. the fair market value of the property immediately before the time of the disposition of the property, and 2. the lesser of the capital cost to the trust of the property and the amount, determined immediately before the time of the disposition of the property, that is that proportion of the undepreciated capital cost of property of that class to the trust that the capital cost to the trust of the property is of the capital cost to the trust of all property of that class that had not, at or before that time, been disposed of, and 2006-2007 Exécution du bud (II) where the property is land (other than land to which subclause (I) applies), the amount that the trust designates, which must not be greater than the greater of nor less than the lesser of 1. the fair market value of the property immediately before the time of the disposition of the property, and 2. the adjusted cost base to the trust of the property immediately before the time of the disposition of the property, (iii) the child is, immediately after the time of the disposition of the property, deemed to have acquired the property at a cost equal to the trust’s proceeds of disposition in respect of the disposition of the property determined under subparagraph (ii), (iv) except for the purpose of this subparagraph, (A) where the amount designated by the trust under subclause (ii)(B)(I) exceeds the greater of the amounts determined under sub-subclauses (ii)(B)(I)1 and 2 in respect of the property, the amount designated is deemed to be equal to the greater of those amounts, and (B) where the amount designated by the trust under subclause (ii)(B)(II) exceeds the greater of the amounts determined under sub-subclauses (ii)(B)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the greater of those amounts, and (v) except for the purpose of this subparagraph, (A) where the amount designated by the trust under subclause (ii)(B)(I) is less than the lesser of the amounts determined under sub-subclauses (ii)(B)(I)1 and 2 in respect of the property, the amount designated is deemed to be equal to the lesser of those amounts, and C. 2 Budget Implementa (B) where the amount designated by the trust under subclause (ii)(B)(II), is less than the lesser of the amounts determined under sub-subclauses (ii)(B)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the lesser of those amounts; (c) where paragraph (a) or (b) (each of which is referred to in this subsection as the “relevant provision”) applied to the trust in respect of a property that was depreciable property of a prescribed class (other than where the trust’s proceeds of disposition of the property under the relevant provision are redetermined under subsection 13(21.1)), (i) the capital cost to the child of the property, immediately after the time of the disposition, is deemed to be the amount that was the capital cost to the trust of the property, immediately before the time of the disposition, and (ii) the amount, if any, by which the capital cost to the trust of the property, immediately before the time of the disposition, exceeds the amount determined under the relevant provision to be the cost of the property to the child, immediately after the time of the disposition, is, for the purposes of sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a), deemed to have been allowed to the child in respect of the property under regulations made for the purpose of paragraph 20(1)(a) in computing income for taxation years that ended before the child acquired the property; and (d) where the relevant provision applied to the trust in respect of a property and the trust’s proceeds of disposition in respect of the disposition of the property determined under the relevant provision are redetermined under subsection 13(21.1), notwithstanding the relevant provision, (i) where the capital cost to the trust of the property, immediately before the time of the disposition, exceeds the amount redetermined under subsection 13(21.1), for 2006-2007 Exécution du bud the purposes of sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a), (A) the capital cost to the child of the property, immediately after the time of the disposition, is deemed to be the amount that was the capital cost to the trust of the property, immediately before the time of the disposition, and (B) the amount, if any, by which the capital cost to the trust of the property, immediately before the time of the disposition, exceeds the amount redetermined under subsection 13(21.1) is deemed to have been allowed to the child in respect of the property under regulations made for the purpose of paragraph 20(1)(a) in computing income for taxation years that ended before the child acquired the property, and (ii) where the property is land, the cost to the child of the property is deemed to be the amount that was the trust’s proceeds of disposition as redetermined under subsection 13(21.1). When subsection (9.21) applies (9.2) Subsection (9.21) applies to a taxpayer and a child of the taxpayer in respect of a property of the taxpayer in respect of which subsection (5) would, if this Act were read without reference to this subsection, apply to the taxpayer and the child if (a) the property was, immediately before the death of the taxpayer, a share of the capital stock of a family fishing corporation of the taxpayer, an interest in a family fishing partnership of the taxpayer, a share of the capital stock of a family farm corporation of the taxpayer or an interest in a family farm partnership of the taxpayer; C. 2 Budget Implementa (b) the child of the taxpayer was resident in Canada immediately before the day on which taxpayer died; and (c) as a consequence of the death of the taxpayer, the property is transferred to and becomes vested indefeasibly in the child within the period ending 36 months after the death of the taxpayer or, if written application has been made to the Minister by the taxpayer’s legal representative within that period, within any longer period that the Minister considers reasonable in the circumstances. Transfer of family farm and fishing corporations and partnerships (9.21) If, because of subsection (9.2), this subsection applies to the taxpayer and a child of the taxpayer in respect of a property of the taxpayer that has been transferred to the child as a consequence of the death of the taxpayer, the following rules apply: (a) where the taxpayer’s legal representative does not elect, in the taxpayer’s return of income under this Part for the taxation year in which the taxpayer died, to have paragraph (b) apply to the taxpayer in respect of the property, (i) paragraphs (5)(a) and (b) and section 69 do not apply to the taxpayer and the child in respect of the property, (ii) where the property is, immediately before the death of the taxpayer, a share of the capital stock of a family fishing corporation of the taxpayer, or a share of the capital stock of a family farm corporation of the taxpayer, (A) the taxpayer is deemed to have (I) disposed of the property immediately before the taxpayer’s death, and (II) received proceeds of disposition in respect of that disposition equal to the adjusted cost base to the taxpayer, immediately before the time of that disposition, of the property, and (B) the child is, immediately after the time of the disposition, deemed to have acquired the property at a cost equal to 2006-2007 Exécution du bud the taxpayer’s proceeds of disposition in respect of that disposition determined under clause (A), and (iii) where the property is, immediately before the death of the taxpayer, a partnership interest described in paragraph (9.2)(a) (other than a partnership interest to which subsection 100(3) applies), (A) the taxpayer is, except for the purpose of paragraph 98(5)(g), deemed not to have disposed of the property as a consequence of the taxpayer’s death, (B) the child is deemed to have acquired the property at the time of the taxpayer’s death at a cost equal to the cost to the taxpayer of the interest immediately before the time that is immediately before the time of the taxpayer’s death, and (C) each amount required by subsection 53(1) or (2) to be added or deducted in computing the adjusted cost base to the taxpayer, immediately before the time of the taxpayer’s death, of the property is deemed to be an amount required by subsection 53(1) or (2) to be added or deducted in computing, at any time at or after the time of the taxpayer’s death, the adjusted cost base to the child of the property; and (b) where the taxpayer’s legal representative elects, in the taxpayer’s return of income under this Part for the taxation year in which the taxpayer died, to have this paragraph apply to the taxpayer in respect of the property, (i) paragraphs (5)(a) and (b) and section 69 do not apply to the taxpayer and the child in respect of the property, (ii) subject to subparagraph (iii), where the property is, immediately before the taxpayer’s death, a share of the capital stock of a family fishing corporation of the taxpayer, a share of the capital stock of a family farm corporation of the taxpayer, an C. 2 Budget Implementa interest in a family fishing partnership of the taxpayer or an interest in a family farm partnership of the taxpayer, (A) the taxpayer is deemed to have (I) disposed of the property immediately before the taxpayer’s death, and (II) received, at the time of the disposition of the property, proceeds of disposition in respect of the disposition of the property equal to the amount that the taxpayer’s legal representative designates, which must not be greater than the greater of nor less than the lesser of 1. the fair market value of the property immediately before the taxpayer’s death, and 2. the adjusted cost base to the taxpayer of the property immediately before the time of the disposition, (B) the child is, immediately after the time of the disposition, deemed to have acquired the property at a cost equal to the taxpayer’s proceeds of disposition in respect of the disposition of the property determined under clause (A), (C) except for the purpose of this clause, where the amount designated by the taxpayer’s legal representative under subclause (A)(II) exceeds the greater of the amounts determined under sub-subclauses (A)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the greater of those amounts, and (D) except for the purpose of this clause, where the amount designated by the taxpayer’s legal representative under subclause (A)(II) is less than the lesser of the amounts determined under sub-subclauses (A)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the lesser of those amounts, and 2006-2007 Exécution du bud (iii) where the property is, immediately before the death of the taxpayer, a partnership interest described in paragraph (9.2)(a) (other than a partnership interest to which subsection 100(3) applies), and the taxpayer’s legal representative further elects, in the taxpayer’s return of income under this Part for the taxation year in which the taxpayer died, to have this subparagraph apply to the taxpayer in respect of the property, (A) the taxpayer is, except for the purpose of paragraph 98(5)(g), deemed not to have disposed of the property as a consequence of the taxpayer’s death, (B) the child is deemed to have acquired the property at the time of the taxpayer’s death at a cost equal to the cost to the taxpayer of the interest immediately before the time that is immediately before the death of the taxpayer, and (C) each amount required by subsection 53(1) or (2) to be added or deducted in computing the adjusted cost base to the taxpayer, immediately before the time of the taxpayer’s death, of the property is deemed to be an amount required by subsection 53(1) or (2) to be added or deducted in computing, at any time at or after the taxpayer’s death, the adjusted cost base to the child of the property. When subsection (9.31) applies (9.3) Subsection (9.31) applies to a trust and a child of the settlor of the trust in respect of a property in respect of which subsection 104(4) would, if this Act were read without reference to this subsection, apply to the trust as a consequence of the death of the beneficiary under the trust who was a spouse or a commonlaw partner of the settlor of the trust if (a) the property (or property for which the property was substituted) was transferred to the trust by the settlor and was, immediately before that transfer, a share of the capital stock of a family farm corporation of the settlor, a share of the capital stock of a family fishing corporation of the settlor, an interest C. 2 Budget Implementa in a family farm partnership of the settlor or an interest in a family fishing partnership of the settlor; (b) subsection (6), subsection 73(1) (as that subsection applied to transfers before 2000) or subparagraph 73(1.01)(c)(i) applied to the settlor and the trust in respect of the transfer referred to in paragraph (a); (c) the property is, immediately before the beneficiary’s death, (i) a share of the capital stock of a Canadian corporation that would, immediately before that beneficiary’s death, be a share of the capital stock of a family farm corporation of the settlor, if the settlor owned the share at that time and paragraph (a) of the definition “share of the capital stock of a family farm corporation”, in subsection (10) were read without the words “in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot)”, (ii) a share of the capital stock of a Canadian corporation that would, immediately before the beneficiary’s death, be a share of the capital stock of a family fishing corporation of the settlor, if the settlor owned the share at that time and paragraph (a) of the definition “share of the capital stock of a family fishing corporation” in subsection (10) were read without reference to the words “in which the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual was actively engaged on a regular and continuous basis”, or (iii) a partnership interest in a partnership that carried on the business of farming or fishing in Canada in which it used all or substantially all of the property; 2006-2007 Exécution du bud (d) the child of the settlor was, immediately before that beneficiary’s death, resident in Canada; and (e) as a consequence of that beneficiary’s death, the property is transferred to and becomes vested indefeasibly in the child within the period ending 36 months after that beneficiary’s death or, if written application has been made to the Minister by the taxpayer’s legal representative within that period, within any longer period that the Minister considers reasonable in the circumstances. Transfer of family farm or fishing corporation or family farm or fishing partnership from trust to children of settlor (9.31) If, because of subsection (9.3), this subsection applies to the trust and a child of the settlor of the trust in respect of a property of the trust that has been distributed to the child as a consequence of the death of the beneficiary under the trust who was a spouse or commonlaw partner of the settlor of the trust, the following rules apply: (a) where the trust does not elect, in its return of income under this Part for the taxation year in which the beneficiary died, to have paragraph (b) apply to the trust in respect of the property (i) section 69 and subsection 104(4) do not apply to the trust and the child in respect of the property, (ii) where the property is, immediately before the beneficiary’s death, a share described in subparagraph (9.3)(c)(i) or (ii), (A) the trust is deemed to have (I) disposed of the property immediately before the beneficiary’s death, and (II) received proceeds of disposition in respect of that disposition equal to the adjusted cost base to the trust of the property immediately before the time of that disposition, and C. 2 Budget Implementa (B) the child is, immediately after the time of the disposition, deemed to have acquired the property at a cost equal to the trust’s proceeds of disposition in respect of that disposition of the property determined under clause (A), and (iii) where the property is, immediately before the beneficiary’s death, a partnership interest described in subparagraph (9.3)(c)(iii) (other than a partnership interest to which subsection 100(3) applies), (A) the trust is, except for the purpose of paragraph 98(5)(g), deemed not to have disposed of the property as a consequence of the beneficiary’s death, (B) the child is deemed to have acquired the property, at the time of the beneficiary’s death, at a cost equal to the cost to the trust of the interest immediately before the time that is immediately before the time of the beneficiary’s death, and (C) each amount required by subsection 53(1) or (2) to be added or deducted in computing the adjusted cost base to the trust, immediately before the beneficiary’s death, of the property is deemed to be an amount required by subsection 53(1) or (2) to be added or deducted in computing, at or after the time of the beneficiary’s death, the adjusted cost base to the child of the property; and (b) where the trust elects, in its return of income under this Part for the taxation year in which the beneficiary died, to have this paragraph apply to the trust in respect of the property (i) subsection 104(4) does not apply to the trust in respect of the property and section 69 does not apply to the trust or the child in respect of the transfer of the property, (ii) subject to subparagraph (iii), where the property is, immediately before the beneficiary’s death, a share of the capital stock of a corporation described in subparagraph (9.3)(c)(i) or (ii) or a partnership interest described in subparagraph (9.3)(c)(iii), 2006-2007 Exécution du bud (A) the trust is deemed to have (I) disposed of the property immediately before the beneficiary’s death, and (II) received, at the time of the disposition of property, proceeds of disposition in respect of the disposition of the property equal to the amount that the trust designates, which must not be greater than the greater of nor less than the lesser of 1. the fair market value of the property immediately before the beneficiary’s death, and 2. the adjusted cost base to the trust of the property immediately before the beneficiary’s death, and (B) the child is, immediately after the time of the disposition of the property, deemed to have acquired the property at a cost equal to the trust’s proceeds of disposition in respect of that disposition of the property determined under clause (A), (iii) where the property is, immediately before that beneficiary’s death, a partnership interest described in subparagraph (9.3)(c)(iii) (other than a partnership interest to which subsection 100(3) applies), and the trust further elects, in its return of income under this Part for the taxation year in which the beneficiary died, to have this subparagraph apply to the trust in respect of the property, (A) the trust is, except for the purpose of paragraph 98(5)(g), deemed not to have disposed of the property as a consequence of the beneficiary’s death, (B) the child is deemed to have acquired the property, at the time of the beneficiary’s death, at a cost equal to the cost to the trust of the property immediately before the time that is immediately before the beneficiary’s death, and C. 2 Budget Implementa (C) each amount required by subsection 53(1) or (2) to be added or deducted in computing, immediately before the beneficiary’s death, the adjusted cost base to the trust of the property is deemed to be an amount required by subsection 53(1) or (2) to be added or deducted in computing, at or after the time of the beneficiary’s death, the adjusted cost base to the child of the property, (iv) except for the purpose of this subparagraph, where the amount designated by the trust under subclause (ii)(A)(II) exceeds the greater of the amounts determined under sub-subclauses (ii)(A)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the greater of those amounts, and (v) except for the purpose of this subparagraph, where the amount designated by the trust under subclause (ii)(A)(II) is less than the lesser of the amounts determined under sub-subclauses (ii)(A)(II)1 and 2 in respect of the property, the amount designated is deemed to be equal to the lesser of those amounts. (2) Subsection 70(9.6) of the Act is replaced by the following: Transfer to a parent (9.6) Subsection (9.01) or (9.21), as the case may be, applies in respect of a transfer of a property as if the references in those subsections to “child” were read as references to “parent” if (a) the property was acquired by a taxpayer in circumstances where any of subsections (9.01), (9.11), (9.21), (9.31) and 73(3.1) and (4.1) applied in respect of the acquisition; (b) as a consequence of the death of the taxpayer the property is transferred to a parent of the taxpayer; and (c) the taxpayer’s legal representative has elected, in the taxpayer’s return of income under this Part for the taxation year in which the taxpayer died, that this subsection apply in respect of the transfer. 2006-2007 Exécution du bud (3) Subsection 70(9.8) of the Act is replaced by the following: Leased farm and fishing property (9.8) For the purposes of subsections (9) and 14(1), paragraph 20(1)(b), subsection 73(3) and paragraph (d) of the definitions “qualified farm property” and “qualified fishing property” in subsection 110.6(1), a property of an individual is, at a particular time, deemed to be used by the individual in a fishing or farming business, as the case may be, carried on in Canada if, at that particular time, the property is being used, principally in the course of carrying on a fishing or farming business in Canada, by (a) a corporation, a share of the capital stock of which is a share of the capital stock of a family fishing corporation, or a share of the capital stock of a family farm corporation, of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual; or (b) a partnership, a partnership interest of which is an interest in a family fishing partnership, or an interest in a family farm partnership, of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual. (4) The definition “interest in a family farm partnership” in subsection 70(10) of the Act is replaced by the following: “interest in a family farm partnership” « participation dans une société de personnes agricole familiale » “interest in a family farm partnership” of an individual at any time means a partnership interest owned by the individual at that time if, at that time, all or substantially all of the fair market value of the property of the partnership was attributable to (a) property that has been used principally in the course of carrying on a farming business in Canada in which the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, C. 2 Budget Implementa was engaged to the extent required by a prescribed forest management plan in respect of that woodlot), by (i) the partnership, (ii) a corporation, a share of the capital stock of which is a share of the capital stock of a family farm corporation of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, (iii) a partnership, a partnership interest in which is an interest in a family farm partnership of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, or (iv) the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, (b) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to property described in paragraph (d), (c) partnership interests or indebtedness of one or more partnerships all or substantially all of the fair market value of the property of which was attributable to property described in paragraph (d), or (d) properties described in any of paragraphs (a) to (c); (5) Subsection 70(10) of the Act is amended by adding the following in alphabetical order: “interest in a family fishing partnership” « participation dans une société de personnes de pêche familiale » “interest in a family fishing partnership” of an individual at any time means a partnership interest owned by the individual at that time if, at that time, all or substantially all of the fair market value of the property of the partnership was attributable to (a) property that has been used principally in the course of carrying on a fishing business in Canada in which the individual, the individual’s spouse or common-law partner, a child 2006-2007 Exécution du bud of the individual or a parent of the individual was actively engaged on a regular and continuous basis, by (i) the partnership, (ii) a corporation, a share of the capital stock of which is a share of the capital stock of a family fishing corporation of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, (iii) a partnership, a partnership interest in which is an interest in a family fishing partnership of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, or (iv) the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, (b) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to property described in paragraph (d), (c) partnership interests or indebtedness of one or more partnerships all or substantially all of the fair market value of the property of which was attributable to property described in paragraph (d), or (d) properties described in any of paragraphs (a) to (c); “share of the capital stock of a family fishing corporation” « action du capital-actions d’une société de pêche familiale » “share of the capital stock of a family fishing corporation” of an individual at any time means a share of the capital stock of a corporation owned by the individual at that time if, at that time, all or substantially all of the fair market value of the property owned by the corporation was attributable to (a) property that has been used principally in the course of carrying on a fishing business in Canada in which the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual was actively engaged on a regular and continuous basis, by (i) the corporation, C. 2 Budget Implementa (ii) a corporation, a share of the capital stock of which is a share of the capital stock of a family fishing corporation of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, (iii) a corporation controlled by a corporation described in subparagraph (i) or (ii), (iv) a partnership, a partnership interest in which is an interest in a family fishing partnership of the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, or (v) the individual, the individual’s spouse or common-law partner, a child of the individual or a parent of the individual, (b) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to property described in paragraph (d), (c) partnership interests or indebtedness of one or more partnerships all or substantially all of the fair market value of the property of which was attributable to property described in paragraph (d), or (d) properties described in any of paragraphs (a) to (c); (6) Subsections (1) to (5) apply to a disposition, that occurs on or after May 2, 2006, of a property unless the disposition of the property was before 2007 and the taxpayer elects in writing in the taxpayer’s return of income for the taxation year in which the disposition occurred to have subsection 70(9), (9.1), (9.2) or (9.3) of the Act, as that subsection read on May 1, 2006, apply to the disposition of the property. 2006-2007 Exécution du bud 11. (1) Paragraph 73(3)(c) of the Act is replaced by the following: (c) subsection 69(1) does not apply in determining the proceeds of disposition of the depreciable property, the land or the eligible capital property; (2) Paragraph 73(4)(b) of the Act is replaced by the following: (b) subsection 69(1) does not apply in determining the proceeds of disposition of the property; and (3) Subsections 73(3) and (4) of the Act, as amended by subsections (1) and (2), respectively, are replaced by the following: When subsection (3.1) applies (3) Subsection (3.1) applies to a taxpayer and a child of the taxpayer in respect of property that has been transferred, at any time, by the taxpayer to the child, where (a) the property was, immediately before the transfer, land in Canada or depreciable property in Canada of a prescribed class, of the taxpayer, or any eligible capital property in respect of a fishing or farming business carried on in Canada by the taxpayer; (b) the child of the taxpayer was resident in Canada immediately before the transfer; and (c) the property has been used principally in a fishing or farming business in which the taxpayer, the taxpayer’s spouse or commonlaw partner, a child of the taxpayer or a parent of the taxpayer was actively engaged on a regular and continuous basis (or in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot). Inter vivos transfer of farm or fishing property to child (3.1) If, because of subsection (3), this subsection applies to the taxpayer and a child of the taxpayer in respect of a property transferred by the taxpayer to the child of the taxpayer, the following rules apply: (a) where, immediately before the transfer, the property was depreciable property of a prescribed class, the taxpayer is deemed to C. 2 Budget Implementa have disposed of the property, at the time of the transfer, for proceeds of disposition equal to (i) in any case to which neither subparagraph (ii) nor (iii) applies, the taxpayer’s proceeds of disposition otherwise determined, (ii) the greater of the amounts referred to in clauses (A) and (B), if the taxpayer’s proceeds of disposition otherwise determined exceed the greater of (A) the fair market value of the property immediately before the time of the transfer, and (B) the lesser of (I) the capital cost to the taxpayer of the property, and (II) the amount, determined immediately before the time of the disposition of the property, that is that proportion of the undepreciated capital cost of property of that class to the taxpayer that the capital cost to the taxpayer of the property is of the capital cost to the taxpayer of all property of that class that had not, at or before that time, been disposed of, or (iii) if the taxpayer’s proceeds of disposition otherwise determined are less than the lesser of the amounts referred to in clauses (ii)(A) and (B), the lesser of those amounts; (b) where the property transferred was land, the taxpayer is deemed to have disposed of the property at the time of the transfer for proceeds of disposition equal to, (i) in any case to which neither subparagraph (ii) nor (iii) applies, the taxpayer’s proceeds of disposition otherwise determined, (ii) the greater of the amounts referred to in clauses (A) and (B), if the taxpayer’s proceeds of disposition otherwise determined exceed the greater of 2006-2007 Exécution du bud (A) the fair market value of the land immediately before the time of the transfer, and (B) the adjusted cost base to the taxpayer of the land immediately before the time of the transfer, or (iii) if the taxpayer’s proceeds of disposition otherwise determined are less than the lesser of the amounts referred to in clauses (ii)(A) and (B), the lesser of those amounts; (c) where, immediately before the transfer, the property was eligible capital property, the taxpayer is deemed to have disposed of the property, at the time of the transfer, for proceeds of disposition equal to, (i) in any case to which neither subparagraph (ii) nor (iii) applies, the taxpayer’s proceeds of disposition otherwise determined, (ii) the greater of the amounts referred to in clauses (A) and (B), if the taxpayer’s proceeds of disposition otherwise determined exceed the greater of (A) the fair market value of the property immediately before the time of the transfer, and (B) the amount determined by the formula 4/3 (A × B/C) where A is the taxpayer’s cumulative eligible capital in respect of the business, B is the fair market value of the property immediately before the transfer, and C is the fair market value immediately before the transfer of all the taxpayer’s eligible capital property in respect of the business, or C. 2 Budget Implementa (iii) if the taxpayer’s proceeds of disposition otherwise determined are less than the lesser of the amounts referred to in clauses (ii)(A) and (B), the lesser of those amounts; (d) subsection 69(1) does not apply to the taxpayer and the child in respect of the property; (e) the child is deemed to have acquired the property at a cost equal to the taxpayer’s proceeds of disposition in respect of the disposition of the property determined under (i) where the property is depreciable property of the taxpayer, paragraph (a), and (ii) where the property is land of the taxpayer, paragraph (b); (f) if the property was, immediately before the transfer, an eligible capital property of the taxpayer in respect of a business, the child is deemed to have acquired (i) where the child does not continue to carry on the business, a capital property, immediately after the transfer, at a cost equal to the taxpayer’s proceeds of disposition in respect of the disposition of the property determined under paragraph (c), (ii) where the child continues to carry on the business, an eligible capital property and to have made an eligible capital expenditure at a cost equal to the total of (A) the taxpayer’s proceeds of disposition referred to in paragraph (c), and (B) 4/3 of the amount determined by the formula (A × B/C) - D where A is the amount, if any, determined for F in the definition “cumulative eligible capital” in subsection 14(5) in respect of the business immediately before the transfer, 2006-2007 Exécution du bud B is the fair market value of the property immediately before the transfer, C is the fair market value immediately before the transfer of all the taxpayer’s eligible capital property in respect of the business, and D is the amount, if any, included under paragraph 14(1)(a) in computing the taxpayer’s income as a result of the disposition, and (iii) for the purpose of determining at any subsequent time the child’s cumulative eligible capital in respect of the business, an amount equal to ¾ of the amount determined under subparagraph (ii) is to be added to the amount otherwise determined for P in the definition “cumulative eligible capital” in subsection 14(5); (g) for the purpose of determining, in respect of any disposition of the property, after the time of the transfer, the amount deemed to be the child’s taxable capital gain, and the amount to be included in computing the child’s income, there shall be added to the amount otherwise determined for Q in respect of the business in the definition “cumulative eligible capital” in subsection 14(5), the amount determined by the formula, A × B/C where A is the amount, if any, determined for Q in that definition in respect of the business immediately before the time of the transfer, B is the fair market value, immediately before that time, of the transferred property , and C is the fair market value immediately before that time of all the taxpayer’s eligible capital property in respect of the business; and (h) where the property is depreciable property of a prescribed class of the taxpayer and the capital cost to the taxpayer of the property C. 2 Budget Implementa exceeds the cost to the child of the property, for the purposes of sections 13 and 20 and any regulations made under paragraph 20(1)(a), (i) the capital cost to the child of the property is deemed to be the amount that was the capital cost to the taxpayer of the property immediately before the transfer, and (ii) the excess is deemed to have been allowed to the child in respect of the property under regulations made under paragraph 20(1)(a) in computing income for taxation years that ended before the the child acquired the property. When subsection (4.1) applies (4) Subsection (4.1) applies to a taxpayer and a child of the taxpayer in respect of property that has been transferred, at any time, to the child if (a) the child was resident in Canada immediately before the transfer; and (b) the property was, immediately before the transfer, a share of the capital stock of a family fishing corporation of the taxpayer, a share of the capital stock of a family farm corporation of the taxpayer, an interest in a family fishing partnership of the taxpayer or an interest in a family farm partnership of the taxpayer (within the meaning assigned by subsection 70(10)). Inter vivos transfer of family farm or fishing corporations and partnerships (4.1) If, because of subsection (4), this subsection applies to the taxpayer and the taxpayer’s child in respect of the transfer of the property by the taxpayer to the child, 2006-2007 Exécution du bud (a) subject to paragraph (c), where the property was, immediately before the transfer, a share of the capital stock of a family fishing corporation of the taxpayer, a share of the capital stock of a family farm corporation of the taxpayer, an interest in a family fishing partnership of the taxpayer or an interest in a family farm partnership of the taxpayer, the taxpayer is deemed to have disposed of the property at the time of the transfer for proceeds of disposition equal to, (i) in any case to which neither subparagraph (ii) nor (iii) applies, the taxpayer’s proceeds of disposition otherwise determined, (ii) the greater of the amounts referred to in clauses (A) and (B), if the taxpayer’s proceeds of disposition otherwise determined exceed the greater of (A) the fair market value of the property immediately before the time of the transfer, and (B) the adjusted cost base to the taxpayer of the property immediately before the time of the transfer, or (iii) if the taxpayer’s proceeds of disposition otherwise determined are less than the lesser of the amounts referred to in clauses (ii)(A) and (B), the lesser of those amounts; (b) subject to paragraph (c), where the property is, immediately before the transfer, a share of the capital stock of a family fishing corporation of the taxpayer, a share of the capital stock of a family farm corporation of the taxpayer, an interest in a family fishing partnership of the taxpayer or an interest in a family farm partnership of the taxpayer, the child is deemed to have acquired the property for an amount equal to the taxpayer’s proceeds of disposition in respect of the disposition of the property determined under paragraph (a); (c) where the property is, immediately before the transfer, an interest in a family fishing partnership of the taxpayer, or an interest in a family farm partnership of the taxpayer (other C. 2 Budget Implementa than a partnership interest to which subsection 100(3) applies), the taxpayer receives no consideration in respect of the transfer of the property and the taxpayer elects, in the taxpayer’s return of income under this Part for the taxation year which includes the time of the transfer, to have this paragraph apply in respect of the transfer of the property, (i) the taxpayer is, except for the purpose of paragraph 98(5)(g), deemed not to have disposed of the property at the time of the transfer, (ii) the child is deemed to have acquired the property at the time of the transfer at a cost equal to the cost to the taxpayer of the interest immediately before the transfer, and (iii) each amount required by subsection 53(1) or (2) to be added or deducted in computing the adjusted cost base to the taxpayer, immediately before the transfer, of the property is deemed to be an amount required by subsection 53(1) or (2) to be added or deducted in computing at any time at or after the time of the transfer, the adjusted cost base to the child of the property; and (d) subsection 69(1) does not apply to the taxpayer and the child in respect of the property. (4) Subsections (1) and (2) apply to dispositions that occur after December 20, 2002. (5) Subsection (3) applies to a disposition, that occurs on or after May 2, 2006, of a property unless the disposition of the property was before 2007 and the taxpayer elects in writing in the taxpayer’s return of income for the taxation year in which the disposition 2006-2007 Exécution du bud occurred to have subsection 73(3) or 73(4) of the Act, as that subsection read on May 1, 2006, apply to the disposition of the property. 12. (1) Subsection 74.1(2) of the Act is replaced by the following: Transfers and loans to minors (2) If an individual has transferred or lent property, either directly or indirectly, by means of a trust or by any other means whatever, to or for the benefit of a person who was under 18 years of age (other than an amount received in respect of that person either as a consequence of the operation of subsection 122.61(1) or under section 4 of the Universal Child Care Benefit Act) and who (a) does not deal with the individual at arm’s length, or (b) is the niece or nephew of the individual, any income or loss, as the case may be, of that person for a taxation year from the property or from property substituted for that property, that relates to the period in the taxation year throughout which the individual is resident in Canada, is deemed to be income or a loss, as the case may be, of the individual and not of that person unless that person has, before the end of the taxation year, attained the age of 18 years. (2) Subsection (1) applies in respect of amounts received after June 30, 2006. 13. (1) The portion of subsection 85(5.1) of the Act before paragraph (a) is replaced by the following: Acquisition of certain tools — capital cost and deemed depreciation (5.1) If subsection (1) has applied in respect of the acquisition at any particular time of any depreciable property by a corporation from an individual, the cost of the property to the individual was included in computing an amount under paragraph 8(1)(r) or (s) in respect of the individual, and the amount that would be the cost of the property to the individual immediately before the transfer if this Act were read without reference to subsection 8(7) (which amount is in this subsection referred to as the “individual’s original cost”) exceeds the individual’s proceeds of disposition of the property, C. 2 Budget Implementa (2) Subsection (1) applies to the 2006 and subsequent taxation years. 14. (1) The portion of subsection 97(5) of the Act before paragraph (a) is replaced by the following: Acquisition of certain tools — capital cost and deemed depreciation (5) If subsection (2) has applied in respect of the acquisition at any particular time of any depreciable property by a partnership from an individual, the cost of the property to the individual was included in computing an amount under paragraph 8(1)(r) or (s) in respect of the individual, and the amount that would be the cost of the property to the individual immediately before the transfer if this Act were read without reference to subsection 8(7) (which amount is in this subsection referred to as the “individual’s original cost”) exceeds the individual’s proceeds of disposition of the property, (2) Subsection (1) applies to the 2006 and subsequent taxation years. 15. (1) Paragraph 104(21.2)(b) of the Act is replaced by the following: (b) the beneficiary is, for the purposes of sections 3, 74.3 and 111 as they apply for the purposes of section 110.6, (i) deemed to have disposed of the capital property referred to in clause (ii)(A), (B) or (C) if a taxable capital gain is determined in respect of the beneficiary for the beneficiary’s taxation year in which the designation year ends under those clauses, and (ii) deemed to have a taxable capital gain for the beneficiary’s taxation year in which the designation year ends (A) from a disposition of a capital property that is qualified farm property (as defined for the purpose of section 110.6) of the beneficiary equal to the amount determined by the formula (A × B × C)/(D × E) (B) from a disposition of a capital property that is a qualified small business corporation share (as defined for 2006-2007 Exécution du bud the purpose of section 110.6) of the beneficiary equal to the amount determined by the formula (A × B × F)/(D × E) and (C) from a disposition of a capital property that is a qualified fishing property (as defined for the purpose of section 110.6) of the beneficiary equal to the amount determined by the formula (A × B × I)/(D × E) where A is the lesser of (I) the amount determined by the formula G-H where G is the total of amounts designated under subsection (21) for the designation year by the trust, and H is the total of amounts designated under subsection (13.2) for the designation year by the trust, and (II) the trust’s eligible taxable capital gains for the designation year, B is the amount, if any, by which the amount designated under subsection (21) for the designation year by the trust in respect of the beneficiary exceeds the amount designated under subsection (13.2) for the year by the trust in respect of the beneficiary for the taxation year, C is the amount, if any, that would be determined under paragraph 3(b) for the designation year in respect of the trust’s capital gains and capital losses if the only properties referred C. 2 Budget Implementa to in that paragraph were qualified farm properties of the trust disposed of by it after 1984, D is the total of all amounts each of which is the amount determined for B for the designation year in respect of a beneficiary under the trust, E is the total of the amounts determined for C, F and I for the designation year in respect of the beneficiary, F is the amount, if any, that would be determined under paragraph 3(b) for the designation year in respect of the trust’s capital gains and capital losses if the only properties referred to in that paragraph were qualified small business corporation shares of the trust, other than qualified farm property, disposed of by it after June 17, 1987, and I is the amount, if any, that would be determined under paragraph 3(b) for the designation year in respect of the trust’s capital gains and capital losses if the only properties referred to in that paragraph were qualified fishing properties of the trust disposed of by it on or after May 2, 2006, (2) Subsection (1) applies to taxation years of a trust that end on or after May 2, 2006. 16. (1) Subsection 108(1) of the Act is amended by adding the following in alphabetical order: “qualified fishing property” « bien de pêche admissible » “qualified fishing property” of an individual has the meaning assigned by subsection 110.6(1); (2) Subsection (1) applies after May 1, 2006. 17. (1) The definitions “interest in a family farm partnership”, “qualified farm property” and “share of the capital stock of a 2006-2007 Exécution du bud family farm corporation” in subsection 110.6(1) of the Act are replaced by the following: “interest in a family farm partnership” « participation dans une société de personnes agricole familiale » “interest in a family farm partnership” of an individual (other than a trust that is not a personal trust) at any time means a partnership interest owned by the individual at that time if (a) throughout any 24-month period ending before that time, more than 50% of the fair market value of the property of the partnership was attributable to (i) property that was used principally in the course of carrying on the business of farming in Canada in which the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C) was actively engaged on a regular and continuous basis, by (A) the partnership, (B) the individual, (C) where the individual is a personal trust, a beneficiary of the trust, (D) a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), (E) a corporation, a share of the capital stock of which was a share of the capital stock of a family farm corporation of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), or (F) a partnership, a partnership interest of which was an interest in a family farm partnership of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), C. 2 Budget Implementa (ii) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to properties described in subparagraph (iv), (iii) a partnership interest in or indebtedness of one or more partnerships all or substantially all of the fair market value of the property of which was attributable to properties described in subparagraph (iv), or (iv) properties described in any of subparagraphs (i) to (iii), and (b) at that time, all or substantially all of the fair market value of the property of the partnership was attributable to property described in subparagraph (a)(iv); “qualified farm property” « bien agricole admissible » “qualified farm property” of an individual (other than a trust that is not a personal trust) at any time means a property owned at that time by the individual, the spouse or common-law partner of the individual or a partnership, an interest in which is an interest in a family farm partnership of the individual or the individual’s spouse or common-law partner that is (a) real or immovable property that was used principally in the course of carrying on the business of farming in Canada by, (i) the individual, (ii) if the individual is a personal trust, a beneficiary of the trust that is entitled to receive directly from the trust any income or capital of the trust, (iii) a spouse, common-law partner, child or parent of a person referred to in subparagraph (i) or (ii), (iv) a corporation, a share of the capital stock of which is a share of the capital stock of a family farm corporation of an individual referred to in any of subparagraphs (i) to (iii), or (v) a partnership, an interest in which is an interest in a family farm partnership of an individual referred to in any of subparagraphs (i) to (iii), 2006-2007 Exécution du bud (b) a share of the capital stock of a family farm corporation of the individual or the individual’s spouse or common-law partner, (c) an interest in a family farm partnership of the individual or the individual’s spouse or common-law partner, or (d) an eligible capital property (which is deemed to include capital property to which paragraph 70(5.1)(b) or 73(3.1)(f) applies) used by a person or partnership referred to in any of subparagraphs (a)(i) to (v), or by a personal trust from which the individual acquired the property, in the course of carrying on the business of farming in Canada; “share of the capital stock of a family farm corporation” « action du capital-actions d’une société agricole familiale » “share of the capital stock of a family farm corporation” of an individual (other than a trust that is not a personal trust) at any time means a share of the capital stock of a corporation owned by the individual at that time if (a) throughout any 24-month period ending before that time, more than 50% of the fair market value of the property owned by the corporation was attributable to (i) property that was used principally in the course of carrying on the business of farming in Canada in which the individual, a beneficiary referred to in clause (C) or a spouse or common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C) was actively engaged on a regular and continuous basis, by (A) the corporation, (B) the individual, (C) where the individual is a personal trust, a beneficiary of the trust, (D) a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), (E) another corporation that is related to the corporation and of which a share of the capital stock was a share of the capital stock of a family farm corporation of the individual, a beneficiary referred to in clause (C) or a spouse, C. 2 Budget Implementa common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), or (F) a partnership, an interest in which was an interest in a family farm partnership of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of such a beneficiary, (ii) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to property described in subparagraph (iv), (iii) a partnership interest in or indebtedness of one or more partnerships all or substantially all of the fair market value of the property of which was attributable to properties described in subparagraph (iv), or (iv) properties described in any of subparagraphs (i) to (iii), and (b) at that time, all or substantially all of the fair market value of the property owned by the corporation was attributable to property described in subparagraph (a)(iv); 2006-2007 Exécution du bud (2) Paragraph (b) of the description of A in the definition “annual gains limit” in subsection 110.6(1) of the Act is replaced by: (b) the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and losses if the only properties referred to in that paragraph were qualified farm properties disposed of by the individual after 1984, qualified small business corporation shares disposed of by the individual after June 17, 1987 and qualified fishing properties disposed of by the individual on or after May 2, 2006, and (3) Subparagraph (a)(i) of the definition “share of the capital stock of a family farm corporation” in subsection 110.6(1) of the Act is amended by striking out the word “or” at the end of clause (D) and by adding the following after that clause: (D.1) another corporation that is related to the corporation and of which a share of the capital stock was a share of the capital stock of a family farm corporation of the individual, a beneficiary referred to in clause (C) or a spouse or common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), or (4) Subsection 110.6(1) of the Act is amended by adding the following in alphabetical order: “interest in a family fishing partnership” « participation dans une société de personnes de pêche familiale » “interest in a family fishing partnership” of an individual (other than a trust that is not a personal trust) at any time means a partnership interest owned by the individual at that time if (a) throughout any 24-month period ending before that time, more than 50% of the fair market value of the property of the partnership was attributable to (i) property that was used principally in the course of carrying on the business of fishing in Canada in which the individual, a beneficiary referred to in clause (C) or a spouse or common-law partner, child or parent of the individual or of a beneficiary C. 2 Budget Implementa referred to in clause (C) was actively engaged on a regular and continuous basis, by (A) the partnership, (B) the individual, (C) where the individual is a personal trust, a beneficiary of the trust, (D) a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), (E) a corporation, a share of the capital stock of which was a share of the capital stock of a family fishing corporation of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), or (F) a partnership, a partnership interest of which was an interest in a family fishing partnership of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), (ii) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to properties described in subparagraph (iv), (iii) a partnership interest in or indebtedness of one or more partnerships all or substantially all of the fair market value of the property of which was attributable to properties described in subparagraph (iv), or (iv) properties described in any of subparagraph (i) to (iii), and (b) at that time, all or substantially all of the fair market value of the property of the partnership was attributable to property described in subparagraph (a)(iv); “qualified fishing property” « bien de pêche admissible » “qualified fishing property” of an individual (other than a trust that is not a personal trust) at any time means a property owned at that time 2006-2007 Exécution du bud by the individual, the spouse or common-law partner of the individual or a partnership, an interest in which is an interest in a family fishing partnership of the individual or the individual’s spouse or common-law partner that is (a) real or immovable property or a fishing vessel that was used principally in the course of carrying on the business of fishing in Canada by, (i) the individual, (ii) if the individual is a personal trust, a beneficiary of the trust that is entitled to receive directly from the trust any income or capital of the trust, (iii) a spouse, common-law partner, child or parent of a person referred to in subparagraph (i) or (ii), (iv) a corporation, a share of the capital stock of which is a share of the capital stock of a family fishing corporation of an individual referred to in any of subparagraphs (i) to (iii), or (v) a partnership, an interest in which is an interest in a family fishing partnership of an individual referred to in any of subparagraphs (i) to (iii), (b) a share of the capital stock of a family fishing corporation of the individual or the individual’s spouse or common-law partner, (c) an interest in a family fishing partnership of the individual or the individual’s spouse or common-law partner, or (d) an eligible capital property (which is deemed to include capital property to which paragraph 70(5.1)(b) or 73(3.1)(f) applies) used by a person or partnership referred to in any of subparagraphs (a)(i) to (v), or by a personal trust from which the individual acquired the property, in the course of carrying on the business of fishing in Canada; “share of the capital stock of a family fishing corporation” of an individual (other than a trust that is not a personal trust) at any time means a share of the capital stock of a corporation owned by the individual at that time if 58 “share of the capital stock of a family fishing corporation” « action du capital-actions d’une société de pêche familiale » C. 2 Budget Implementa (a) throughout any 24-month period ending before that time, more than 50% of the fair market value of the property owned by the corporation was attributable to (i) property that was used principally in the course of carrying on the business of fishing in Canada in which the individual, a beneficiary referred to in clause (C) or a spouse or common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), was actively engaged on a regular and continuous basis, by (A) the corporation, (B) the individual, (C) where the individual is a personal trust, a beneficiary of the trust, (D) a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), (E) another corporation that is related to the corporation and of which a share of the capital stock was a share of the capital stock of a family fishing corporation of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of a beneficiary referred to in clause (C), or (F) a partnership, an interest in which was an interest in a family fishing partnership of the individual, a beneficiary referred to in clause (C) or a spouse, common-law partner, child or parent of the individual or of such a beneficiary, (ii) shares of the capital stock or indebtedness of one or more corporations all or substantially all of the fair market value of the property of which was attributable to property described in subparagraph (iv), (iii) a partnership interest in or indebtedness of one or more partnerships all or substantially all of the fair market value of 2006-2007 Exécution du bud the property of which was attributable to properties described in subparagraph (iv), or (iv) properties described in any of subparagraphs (i) to (iii), and (b) at that time, all or substantially all of the fair market value of the property owned by the corporation was attributable to property described in subparagraph (a)(iv). (5) Section 110.6 of the Act is amended by adding the following after subsection (1.1): Property used in a fishing business (1.2) For the purposes of applying the definition “qualified fishing property”, in subsection (1), of an individual, at any time, a property owned at that time by the individual, the spouse or common-law partner of the individual, or a partnership, an interest in which is an interest in a family fishing partnership of the individual or of the individual’s spouse or common-law partner, will not be considered to have been used in the course of carrying on the business of fishing in Canada, unless (a) throughout the period of at least 24 months immediately preceding that time, the property or property for which the property C. 2 Budget Implementa was substituted (in this paragraph referred to as “the property”) was owned, by any one or more of (i) the individual, or a spouse, commonlaw partner, child or parent of the individual, (ii) a partnership, an interest in which is an interest in a family fishing partnership of the individual or of the individual’s spouse or common-law partner, (iii) if the individual is a personal trust, the individual from whom the trust acquired the property or a spouse, common-law partner, child or parent of that individual, or (iv) a personal trust from which the individual or a child or parent of the individual acquired the property; and (b) either (i) in at least two years while the property was owned by the one or more persons referred to in paragraph (a), (A) the gross revenue of a person (in this clause referred to as the “operator”) referred to in paragraph (a) from the fishing business referred to in clause (B) for the period during which the property was owned by a person described in paragraph (a) exceeded the income of the operator from all other sources for that period, and (B) the property was used principally in a fishing business carried on in Canada in which an individual referred to in paragraph (a), or where the individual is a personal trust, a beneficiary of the trust, was actively engaged on a regular and continuous basis, or (ii) throughout a period of at least 24 months while the property was owned by one or more persons or partnerships referred to in paragraph (a), the property was used by a corporation referred to in subparagraph (a)(iv) of the definition “qualified fishing property” in subsection (1) or by a partnership referred to in 2006-2007 Exécution du bud paragraph (a)(v) of that definition in a fishing business in which an individual referred to in any of subparagraphs (a)(i) to (iii) of that definition was actively engaged on a regular and continuous basis. Property used in a farming business (1.3) For the purposes of applying the definition “qualified farm property”, in subsection (1), of an individual, at any time, a property owned at that time by the individual, the spouse or common-law partner of the individual, or a partnership, an interest in which is an interest in a family farm partnership of the individual or of the individual’s spouse or common-law partner, will not be considered to have been used in the course of carrying on the business of farming in Canada, unless (a) throughout the period of at least 24 months immediately preceding that time, the property or property for which the property was substituted (in this paragraph referred to as “the property”) was owned, by any one or more of (i) the individual, or a spouse, commonlaw partner, child or parent of the individual, (ii) a partnership, an interest in which is an interest in a family farm partnership of the individual or of the individual’s spouse or common-law partner, (iii) if the individual is a personal trust, the individual from whom the trust acquired the property or a spouse, common-law partner, child or parent of that individual, or (iv) a personal trust from which the individual or a child or parent of the individual acquired the property; (b) if paragraph (c) does not apply, either (i) in at least two years while the property was owned by the one or more persons referred to in paragraph (a), C. 2 Budget Implementa (A) the gross revenue of a person (in this clause referred to as the “operator”) referred to in paragraph (a) from the farming business referred to in clause (B) for the period during which the property was owned by a person described in paragraph (a) exceeded the income of the operator from all other sources for that period, and (B) the property was used principally in a farming business carried on in Canada in which an individual referred to in paragraph (a), or where the individual is a personal trust, a beneficiary of the trust, was actively engaged on a regular and continuous basis, or (ii) throughout a period of at least 24 months while the property was owned by one or more persons or partnerships referred to in paragraph (a), the property was used by a corporation referred to in subparagraph (a)(iv) of the definition “qualified farm property” in subsection (1) or by a partnership referred to in subparagraph (a)(v) of that definition in a farming business in which an individual referred to in any of subparagraphs (a)(i) to (iii) of that definition was actively engaged on a regular and continuous basis; or (c) if the property or property for which the property was substituted was last acquired by the individual or partnership before June 18, 1987 or after June 17, 1987 under an agreement in writing entered into before that date, (i) in the year the property was disposed of by the individual, the property was used principally in the course of carrying on the business of farming in Canada by (A) the individual, or a spouse, common-law partner, child or parent of the individual, (B) a beneficiary referred to in subparagraph (a)(ii) in the definition “qualified farm property” in subsection (1) or a spouse, common-law partner, child or parent of that beneficiary, 2006-2007 Exécution du bud (C) a corporation referred to in subparagraph (a)(iv) in the definition “qualified farm property” in subsection (1), (D) a partnership referred to in subparagraph (a)(v) in the definition “qualified farm property” in subsection (1), or (E) a personal trust from which the individual acquired the property, or (ii) in at least five years during which the property was owned by a person described in clauses (A) to (E), the property was used principally in the course of carrying on the business of farming in Canada by (A) the individual, or a spouse, common-law partner, child or parent of the individual, (B) a beneficiary referred to in subparagraph (a)(ii) in the definition “qualified farm property” in subsection (1) or a spouse, common-law partner, child or parent of that beneficiary, (C) a corporation referred to in subparagraph (a)(iv) in the definition “qualified farm property” in subsection (1), (D) a partnership referred to in subparagraph (a)(v) in the definition “qualified farm property” in subsection (1), or (E) a personal trust from which the individual acquired the property. (6) The description of A in paragraph 110.6(2)(a) of the Act is replaced by the following: A is the total of all amounts each of which is an amount deducted under this section in computing the individual’s taxable income for a preceding taxation year that ended (i) before 1988, or (ii) after October 17, 2000, C. 2 Budget Implementa (7) Paragraph 110.6(2)(d) of the Act is replaced by the following: (d) the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties of the individual disposed of after June 17, 1987. (8) Paragraph 110.6(2.1)(d) of the Act is replaced by the following: (d) the amount that would be determined in respect of the individual for the year under paragraph 3(b) (to the extent that that amount is not included in computing the amount determined under paragraph (2)(d) or (2.2)(d) in respect of the individual) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified small business corporation shares of the individual disposed of after June 17, 1987. (9) Section 110.6 of the Act is amended by adding the following after subsection (2.1): Capital gains deduction — qualified fishing property (2.2) In computing the taxable income for a taxation year of an individual (other than a trust) who was resident in Canada throughout the year and who, in the year or a preceding year, disposed of a property that was, at the time of disposition, a qualified fishing property of the individual, there may be deducted the amount that the individual claims not exceeding the least of (a) the amount determined by the formula in paragraph (2)(a) in respect of the individual for the year; (b) the amount, if any, by which the individual’s cumulative gains limit at the end of that year exceeds the total of all amounts each of which is an amount deducted under subsection (2) or (2.1) in computing the individual’s taxable income for the year; (c) the amount, if any, by which the individual’s annual gains limit for the year exceeds the total of all amounts each of 2006-2007 Exécution du bud which is an amount deducted under subsection (2) or (2.1) in computing the individual’s taxable income for the year; and (d) the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified fishing properties of the individual disposed of on or after May 2, 2006. (10) Subsections 110.6(4) to (8) of the Act are replaced by the following: Maximum capital gains deduction (4) Notwithstanding subsections (2), (2.1) and (2.2), the total amount that may be deducted under this section in computing an individual’s income for a taxation year shall not exceed the amount determined by the formula in paragraph (2)(a) in respect of the individual for the year. Deemed resident in Canada (5) For the purposes of subsections (2), (2.1) and (2.2), an individual is deemed to have been resident in Canada throughout a particular taxation year if (a) the individual was resident in Canada at any time in the particular taxation year; and (b) the individual was resident in Canada throughout the immediately preceding taxation year or throughout the immediately following taxation year. Failure to report capital gain (6) Notwithstanding subsections (2), (2.1) and (2.2), no amount may be deducted under this section in respect of a capital gain of an individual for a particular taxation year in computing the individual’s taxable income for the particular taxation year, if (a) the individual knowingly or under circumstances amounting to gross negligence (i) fails to file the individual’s return of income for the particular taxation year within one year after the taxpayer’s filingdue date for the particular taxation year, or (ii) fails to report the capital gain in the individual’s return of income for the particular taxation year; and C. 2 Budget Implementa (b) the Minister establishes the facts justifying the denial of such an amount under this section. Deduction not permitted (7) Notwithstanding subsections (2), (2.1) and (2.2), no amount may be deducted under this section in computing an individual’s taxable income for a taxation year in respect of a capital gain of the individual for the taxation year, if the capital gain is from a disposition of property which disposition is part of a series of transactions or events (a) to which subsection 55(2) would apply if this Act were read without reference to paragraph 55(3)(b); or (b) in which any property is acquired by a corporation or partnership for consideration that is significantly less than the fair market value of the property at the time of acquisition (other than an acquisition as the result of an amalgamation or merger of corporations or the winding-up of a corporation or partnership or a distribution of property of a trust in satisfaction of all or part of a corporation’s capital interest in the trust). Deduction not permitted (8) Nothwithstanding subsections (2), (2.1) and (2.2), where an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share) or that dividends paid on such a share in the taxation year or in any preceding taxation year were less than 90% of the average annual rate of return on that share for that year, no amount in respect of that capital gain shall be deducted under this section in computing the individual’s taxable income for the year. (11) Paragraph 110.6(12)(b) of the Act is replaced by the following: (b) the amount, if any, that would be determined in respect of the trust for that year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were 2006-2007 Exécution du bud qualified farm properties disposed of by it after 1984, qualified small business corporation shares disposed of by it after June 17, 1987 and qualified fishing properties disposed of by it on or after May 2, 2006, and (12) Subsections (1), (2), (4) and (5) apply to dispositions of property that occur on or after May 2, 2006. (13) Subsection (3) applies to dispositions of property that occur after 2001 and before May 2, 2006. (14) Subsection (6) applies to preceding taxation years that end after October 17, 2000. (15) Subsections (7) to (11) apply to taxation years that end on or after May 2, 2006. 18. (1) Paragraphs 117(2)(c) and (d) of the Act, as enacted by subsection 58(3) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, are replaced by the following: (c) if the amount taxable is greater than the amount determined for the year in respect of $72,756, but is equal to or less than the amount determined for the year in respect of $118,285, the total of the amounts determined in respect of the taxation year under paragraphs (a) and (b) plus 26% of the amount by which the amount taxable exceeds the amount determined in respect of $72,756; and (d) if the amount taxable is greater than the amount that would be determined for the year in respect of $118,285, the total of the amounts determined in respect of the taxation year under paragraphs (a), (b) and (c) plus 29% of the amount by which the amount taxable exceeds the amount determined in respect of $118,285. (2) Subsection (1) applies to the 2007 and subsequent taxation years. 19. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following: C. 2 Annual adjustment (indexing) 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s) and each of the amounts expressed in dollars in subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of Budget Implementa (2) Subsection (1) applies to the 2008 and subsequent taxation years. 20. (1) The portion of the description of B before paragraph (a) in subsection 118(3) of the Act is replaced by the following: B is the lesser of $2,000 and (2) Section 118 of the Act is amended by adding the following after subsection (9): Canada Employment Credit (10) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula A×B where A is the appropriate percentage for the taxation year; and B is the lesser of (a) $1,000, and 2006-2007 Exécution du bud (b) the amount that would be the individual’s income for the taxation year from all offices and employments if this Act were read without reference to section 8. (3) Subsections (1) and (2) apply to the 2006 and subsequent taxation years, except that in its application to the 2006 taxation year, the reference to “$1,000” in paragraph (a) in the description of B in subsection 118(10) of the Act, as enacted by subsection (2), shall be read as a reference to “$250”. 21. (1) The Act is amended by adding the following after section 118.01: Definitions 118.02 (1) The following definitions apply in this section. “eligible public transit pass” « laissez-passer de transport admissible » “eligible public transit pass” means a document (a) issued by or on behalf of a qualified Canadian transit organization; and (b) identifying the right of an individual who is the holder or owner of the document to use public commuter transit services of that qualified Canadian transit organization on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days. “public commuter transit services” « services de transport en commun » “qualified Canadian transit organization” « organisme de transport canadien admissible » “public commuter transit services” means services offered to the general public, ordinarily for a period of at least five days per week, of transporting individuals, from a place in Canada to another place in Canada, by means of bus, ferry, subway, train or tram, and in respect of which it can reasonably be expected that those individuals would return daily to the place of their departure. “qualified Canadian transit organization” means a person authorised, under a law of Canada or a province, to carry on in Canada a business that is the provision of public commuter transit services, which is carried on through a permanent establishment in Canada. 70 “qualifying relation” « proche admissible » C. 2 Budget Implementa “qualifying relation” of an individual for a taxation year means a person who is (a) the individual’s spouse or common-law partner at any time in the taxation year; or (b) a child of the individual who has not, during the taxation year, attained the age of 19 years. Transit pass tax credit (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula A×B where A is the appropriate percentage for the taxation year; and B is the amount determined by the formula C-D where C is the total of all amounts each of which is the portion of the cost of an eligible public transit pass attributable to the use of public commuter transit services in the taxation year by the individual or by a person who is in the taxation year a qualifying relation of the individual, and D is the total of all amounts each of which is the amount of a reimbursement, allowance or any other form of assistance that any person is or was entitled to receive in respect of an amount included in computing the value of C (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person). Apportionment of credit (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an eligible public transit pass, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that eligible public transit pass if 2006-2007 Exécution du bud that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. Definitions 118.03 (1) The following definitions apply in this section. “eligible fitness expense” « dépense admissible pour activités physiques » “eligible fitness expense” in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a qualifying entity that is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in a program of prescribed physical activity and, for the purposes of this section, that cost (a) includes the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and (b) does not include (i) the cost of accommodation, travel, food or beverages, or (ii) any amount deductible under section 63 in computing any person’s income for any taxation year. “qualifying child” « enfant admissible » “qualifying entity” « entité admissible » “qualifying child” of an individual for a taxation year means a child of the individual who had not, before the taxation year, attained the age of 16 years. “qualifying entity” means a person or partnership that offers one or more programs of prescribed physical activity. C. 2 Child fitness tax credit (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula Budget Implementa A×B where A is the appropriate percentage for the taxation year; and B is the total of all amounts each of which is, in respect of a qualifying child of the individual for the taxation year, the lesser of $500 and the amount determined by the formula C-D where C is total of all amounts each of which is an amount paid in the taxation year by the individual, or by the individual’s spouse or common law partner, that is an eligible fitness expense in respect of the qualifying child of the individual, and D is the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included in computing the value of C in respect of the qualifying child that is the amount of a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person). Apportionment of credit (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of that qualifying child if that individual were the only individual entitled to deduct an amount for the year under this section in respect of that qualifying child, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. 2006-2007 Exécution du bud (2) Section 118.02 of the Act, as enacted by subsection (1), applies to the 2006 and subsequent taxation years, in respect of the use of public commuter transit services after June 2006. (3) Section 118.03 of the Act, as enacted by subsection (1), applies to the 2007 and subsequent taxation years. 22. (1) Paragraph 118.3(1)(b) of the Act is replaced by the following: (b) the individual has filed for a taxation year with the Minister the certificate described in paragraph (a.2) or (a.3), and (2) Subsection (1) applies to the 2005 and subsequent taxation years. 23. (1) Section 118.6 of the Act is amended by adding the following after subsection (2): Post-secondary textbook credit (2.1) If an amount may be deducted under subsection (2) in computing the individual’s tax payable for a taxation year, there may be deducted in computing the individual’s tax payable under this Part for the year the amount determined by the formula A×B where A is the appropriate percentage for the year; and B is the total of the products obtained when (a) $65 is multiplied by the number of months referred to in paragraph (a) of the description of B in subsection (2), and (b) $20 is multiplied by the number of months referred to in paragraph (b) of that description. (2) The portion of subsection 118.6(3) of the Act before paragraph (a) is replaced by the following: Students eligible for the disability tax credit (3) In calculating the amount deductible under subsection (2) or (2.1), the reference in subsection (2) to “full-time student” is to be read as “student” if C. 2 Budget Implementa (3) Subparagraph 118.6(3)(b)(iii) of the English version of the Act is replaced by the following: (iii) an impairment with respect to the individual’s ability in feeding or dressing themself, by a medical doctor or an occupational therapist, (iii.1) an impairment with respect to the individual’s ability in walking, by a medical doctor, an occupational therapist or a physiotherapist, or (4) Subparagraph 118.6(3)(b)(iv) of the French version of the Act is replaced by the following: (iv) s’il s’agit d’une déficience quant à la capacité de s’alimenter ou de s’habiller, un médecin en titre ou un ergothérapeute, (iv.1) s’il s’agit d’une déficience quant à la capacité de marcher, un médecin en titre, un ergothérapeute, ou un physiothérapeute, (5) Subparagraph 118.6(3)(b)(iv) of the English version of the Act is replaced by the following: (iv) an impairment with respect to the individual’s ability in mental functions necessary for everyday life (within the meaning assigned by paragraph 118.4(1)(c.1)), by a medical doctor or a psychologist. (6) Subparagraph 118.6(3)(b)(v) of the French version of the Act is replaced by the following: (v) s’il s’agit d’une déficience des fonctions mentales nécessaires aux activités de la vie courante, un médecin en titre ou un psychologue. (7) Subsections (1) and (2) apply to the 2006 and subsequent taxation years. (8) Subsections (3) and (4) apply to the 2005 and subsequent taxation years in respect of certifications made by a physiotherapist after February 22, 2005. (9) Subsections (5) and (6) apply to the 2005 and subsequent taxation years. 2006-2007 Exécution du bud 24. (1) Subsection 118.61(1) of the Act is replaced by the following: Unused tuition, textbook and eduction tax credits 118.61 (1) In this section, an individual’s unused tuition, textbook and education tax credits at the end of a taxation year is the amount determined by the formula A + (B - C) - (D + E) where A is the amount determined under this subsection in respect of the individual at the end of the preceding taxation year; B is the total of all amounts each of which may be deducted under section 118.5 or 118.6 in computing the individual’s tax payable under this Part for the year; C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.02, 118.03, 118.3 and 118.7); D is the amount that the individual may deduct under subsection (2) for the year; and E is the tuition, textbook and education tax credits transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent. (2) Paragraphs 118.61(2)(a) and (b) of the Act are replaced by the following: (a) the amount determined under subsection (1) in respect of the individual at the end of the preceding taxation year, and (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.02, 118.03, 118.3 and 118.7). C. 2 Budget Implementa (3) Subsection 118.61(3) of the Act is repealed. (4) Subsection 118.61(4) of the Act is replaced by the following: Change of appropriate percentage (4) For the purpose of determining the amount that may be deducted under subsection (2) or 118.6(2.1) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula A/B × C where A is the appropriate percentage for the current taxation year; B is the appropriate percentage for the preceding taxation year; and C is the amount that would be the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection. (5) Subsections (1) to (3) apply to the 2006 and subsequent taxation years except that (a) in its application to the 2006 taxation year, the description of C in subsection 118.61(1) of the Act, as enacted by subsection (1), is to be read without its reference to section 118.03; and (b) in its application to the 2006 taxation year, paragraph 118.61(2)(b) of the Act, as enacted by subsection (2), is to be read without its reference to section 118.03. 2006-2007 Exécution du bud (6) Subsection (4) applies to the 2005 and subsequent taxation years, except that for the 2005 and 2006 taxation years, the references to “unused tuition, textbook and education tax credits” in subsection 118.61(4) of the Act, as enacted by subsection (4), are to be read as references to “unused tuition and education tax credits”. 25. (1) The description of A in section 118.8 of the Act is replaced by the following: A is the tuition, textbook and education tax credits transferred for the year by the spouse or common-law partner to the individual; (2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following: (ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under section 118, 118.01, 118.02, 118.03, 118.3, 118.61 or 118.7). (3) Subsection (1) applies to the 2006 and subsequent taxation years. (4) Subsection (2) applies to the 2005 and subsequent taxation years except that (a) in its application to the 2005 taxation year, subparagraph (b)(ii) of the description of C in section 118.8 of the Act, as enacted by subsection (2), is to be read without its reference to section 118.02; and (b) in its application to the 2005 and 2006 taxation years, subparagraph (b)(ii) of the description of C in section 118.8 of the Act, as enacted by subsection (2), is to be read without its reference to section 118.03. C. 2 Budget Implementa 26. (1) The portion of section 118.81 of the Act before paragraph (a) is replaced by the following: Tuition, textbook and education tax credits transferred 118.81 In this subdivision, the tuition, textbook and education tax credits transferred for a taxation year by a person to an individual is the lesser of (2) The description of B in paragraph 118.81(a) of the Act is replaced by the following: B is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118, 118.01, 118.02, 118.03, 118.3, 118.61 and 118.7), and (3) Subsections (1) and (2) apply to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, the description of B in paragraph 118.81(a) of the Act, as enacted by subsection (2), is to be read without its reference to section 118.03. 27. (1) Section 118.9 of the Act is replaced by the following: Transfer to parent or grandparent 118.9 If for a taxation year a parent or grandparent of an individual (other than an individual in respect of whom the individual’s spouse or common-law partner deducts an amount under section 118 or 118.8 for the year) is the only person designated in writing by the individual for the year for the purpose of this section, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, as the case may be, the tuition, textbook and education tax credits transferred for the year by the individual to the parent or grandparent, as the case may be. (2) Subsection (1) applies to the 2006 and subsequent taxation years. 28. (1) Subparagraph 118.91(b)(i) of the Act is replaced by the following: 2006-2007 Exécution du bud (i) such of the deductions permitted under subsections 118(3), (10) and 118.6(2.1) and sections 118.01, 118.02, 118.03, 118.1, 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable, and (2) Subsection (1) applies to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, subparagraph 118.91(b)(i) of the Act, as enacted by subsection (1), is to be read without its reference to section 118.03. 29. (1) Sections 118.92 to 118.94 of the Act are replaced by the following: Ordering of credits 118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121. Credits in separate returns 118.93 If a separate return of income with respect to a taxpayer is filed under subsection 70(2), 104(23) or 150(4) for a particular period and another return of income under this Part with respect to the taxpayer is filed for a period ending in the calendar year in which the particular period ends, for the purpose of computing the tax payable under this Part by the taxpayer in those returns, the total of all deductions claimed in all those returns under any of subsections 118(3) and (10) and sections 118.01 to 118.7 and 118.9 shall not exceed the total that could be deducted under those provisions for the year with respect to the taxpayer if no separate returns were filed under any of subsections 70(2), 104(23) and 150(4). C. 2 Tax payable by non-residents (credits restricted) 118.94 Sections 118, 118.01, 118.02, 118.03 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all of the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year. Budget Implementa (2) Subsection (1) applies to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, sections 118.92 and 118.94 of the Act, as enacted by subsection (1), are to be read without their references to section 118.03. 30. (1) Paragraph 118.95(a) of the Act is replaced by the following: (a) such of the deductions as the individual is entitled to under subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.1, 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable to the taxation year, and (2) Subsection (1) applies to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, paragraph 118.95(a) of the Act, as enacted by subsection (1), is to be read without its reference to section 118.03. 31. (1) Subparagraph (b)(i) of the description of A in subsection 122.51(2) of the Act is replaced by the following: (i) the amount determined by the formula (25/C) × D where C is the appropriate percentage for the particular taxation year, and D is the total of all amounts each of which is the amount determined by the formula in subsection 118.2(1) for the purpose of computing the 2006-2007 Exécution du bud individual’s tax payable under this Part for a taxation year that ends in the calendar year, and (2) Subsection (1) applies to the 2005 and subsequent taxation years. 32. (1) The portion of paragraph (a) of the definition “full-rate taxable income” in subsection 123.4(1) of the Act before subparagraph (i) is replaced by the following: (a) if the corporation is not a corporation described in paragraph (b) or (c) for the year, the amount by which that portion of the corporation’s taxable income for the year (or, for greater certainty, if the corporation is nonresident, that portion of its taxable income earned in Canada for the year) that is subject to tax under subsection 123(1) exceeds the total of (2) Subparagraph (a)(iv) of the definition “full-rate taxable income” in subsection 123.4(1) of the Act is replaced by the following: (iv) if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount if any, by which, the lesser of the amounts described in paragraphs 137(3)(a) and (b) exceeds the amount described in paragraph 137(3)(c) in respect of the corporation for the year; (3) Subparagraph (b)(ii) of the definition “full-rate taxable income” in subsection 123.4(1) of the Act is replaced by the following: (ii) the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and (4) Subsection (1) applies to taxation years that begin on or after May 2, 2006. C. 2 Budget Implementa (5) Subsections (2) and (3) apply to the 2008 and subsequent taxation years. 33. (1) The portion of subsection 125(1) of the Act before paragraph (a) is replaced by the following: Small business deduction 125. (1) There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation that was, throughout the taxation year, a Canadian-controlled private corporation, an amount equal to the corporation’s small business deduction rate for the taxation year multiplied by the least of (2) Section 125 of the Act is amended by adding the following after subsection (1): Small business deduction rate (1.1) For the purpose of subsection (1), a corporation’s small business deduction rate for a taxation year is the total of (a) that proportion of 16% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year, (b) that proportion of 16.5% that the number of days in the taxation year that are in 2008 is of the number of days in the taxation year, and (c) that proportion of 17% that the number of days in the taxation year that are after 2008 is of the number of days in the taxation year. (3) Subsection 125(2) of the Act is replaced by the following: Business limit (2) For the purpose of this section, a corporation’s business limit for a taxation year is $400,000 unless the corporation is associated in the taxation year with one or more other Canadian-controlled private corporations, in which case, except as otherwise provided in this section, its business limit is nil. (4) Paragraph 125(3)(a) of the Act is replaced by the following: 2006-2007 Exécution du bud (a) if the total of the percentages assigned in the agreement does not exceed 100%, $400,000 multiplied by the percentage assigned to that corporation in the agreement; and (5) The description of M in the definition “specified partnership income” in subsection 125(7) of the Act is replaced by the following: M is the lesser of (i) $400,000, and (ii) the product obtained when $1,096 is multiplied by the total of all amounts each of which is the number of days in a fiscal period of the partnership that ends in the year, and (6) Subsections (1) and (2) apply to the 2008 and subsequent taxation years. (7) Subsection (3) applies to the 2007 and subsequent taxation years except that, for a 2007 or 2008 taxation year that began before 2007, the reference in subsection 125(2) of the Act, as enacted by subsection (3), to “$400,000” is to be read as a reference to the total of (a) that proportion of $300,000 that the number of days in the taxation year that are before 2007 is of the number of days in the taxation year, and (b) that proportion of $400,000 that the number of days in the taxation year that are after 2006 is of the number of days in the taxation year. (8) Subsection (4) applies to the 2007 and subsequent taxation years except that, for a 2007 or 2008 taxation year that began before 2007, the reference in subsection 125(3) of the Act, as enacted by subsection (4), to “$400,000” is to be read as a reference to “the amount that would, if the corporation were not associated in the year with any C. 2 Budget Implementa other corporation, be its business limit for the year determined without reference to subsections (5) and (5.1)”. (9) Subsection (5) applies to partnership fiscal periods that end after 2006. (10) In applying subsection 125(5) of the Act to a corporation for a 2007 or 2008 taxation year, of the corporation, that began before 2007, subparagraph 125(5)(a)(i) of the Act is to be read as follows: (i) the amount that would have been its business limit determined under subsection (3) or (4) for the first such taxation year ending in the calendar year if the reference to $300,000 in subsection (3), as it applied in respect of that first such taxation year, had been read in the same manner as it is read in respect of the particular taxation year ending in the calendar year, and 34. (1) The portion of paragraph 127(5)(a) of the Act before clause (ii)(B) is replaced by the following: (a) the total of (i) the taxpayer’s investment tax credit at the end of the year in respect of property acquired before the end of the year, of the taxpayer’s apprenticeship expenditure for the year or a preceding taxation year, of the taxpayer’s flow-through mining expenditure for the year or a preceding taxation year, of the taxpayer’s pre-production mining expenditure for the year or a preceding taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the year or at the end of a preceding taxation year, and (ii) the lesser of (A) the taxpayer’s investment tax credit at the end of the year in respect of property acquired in a subsequent taxation year, of the taxpayer’s apprenticeship expenditure for a subsequent taxation year, of the taxpayer’s flow2006-2007 Exécution du bud through mining expenditure for a subsequent taxation year, of the taxpayer’s pre-production mining expenditure for a subsequent taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the subsequent taxation year to the extent that an investment tax credit was not deductible under this subsection for the subsequent taxation year, and (2) Subsection 127(7) of the Act is replaced by the following: Investment tax credit of testamentary trust (7) If, in a particular taxation year of a taxpayer who is a beneficiary under a testamentary trust or under an inter vivos trust that is deemed to be in existence by section 143, an amount is determined in respect of the trust under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition “investment tax credit” in subsection (9) for its taxation year that ends in that particular taxation year, the trust may, in its return of income for its taxation year that ends in that particular taxation year, designate the portion of that amount that can, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be attributable to the taxpayer and was not designated by the trust in respect of any other beneficiary of the trust, and that portion shall be added in computing the investment tax credit of the taxpayer at the end of that particular taxation year and shall be deducted in computing the investment tax credit of the trust at the end of its taxation year that ends in that particular taxation year. (3) The portion of subsection 127(8) of the Act before paragraph (a) is replaced by the following: Investment tax credit of partnership (8) Subject to subsection (28), where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined in respect of the partnership, for its taxation year that ends in the particular taxation year, under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition “investment tax credit” in subsection (9), if C. 2 Budget Implementa (4) Subsection 127(8.1) of the Act is replaced by the following: Investment tax credit of limited partner (8.1) Notwithstanding subsection (8), if a taxpayer is a limited partner of a partnership at the end of a fiscal period of the partnership, the amount, if any, determined under subsection (8) to be added in computing the taxpayer’s investment tax credit at the end of the taxpayer’s taxation year in which that fiscal period ends shall not exceed the lesser of (a) the portion of the amount that would, if this section were read without reference to this subsection, be determined under subsection (8) to be the amount to be added in computing the taxpayer’s investment tax credit at the end of the taxpayer’s taxation year in which that fiscal period ends as is considered to have arisen because of the expenditure by the partnership of an amount equal to the taxpayer’s expenditure base (as determined under subsection (8.2) in respect of the partnership) at the end of that fiscal period, and (b) the taxpayer’s at-risk amount in respect of the partnership at the end of that fiscal period. (5) Subparagraph 127(8.2)(b)(i) of the Act is amended by striking out the word “or” at the end of clause (A) and by adding the following after that clause: (A.1) an amount that would be the apprenticeship expenditure of the partnership if the reference to “$2,000” in paragraph (a) of the definition “apprenticeship expenditure” in subsection (9) were read as a reference to “$20,000” and paragraph (b) of that definition were read without reference to “10% of”, or (6) Subsection 127(8.3) of the Act is replaced by the following: Investment tax credit — allocation of unallocated partnership ITCs (8.3) For the purpose of subsection (8), and subject to subsection (8.4), if a taxpayer is a member of a partnership (other than a specified member) throughout a fiscal period of the partnership, there shall be added to the amount that can reasonably be considered to be that member’s share of the amount determined under 2006-2007 Exécution du bud subsection (8) the amount, if any, that is such portion of the amount determined under subsection (8.31) in respect of that fiscal period as is reasonable in the circumstances (having regard to the investment in the partnership, including debt obligations of the partnership, of each of those members of the partnership who was a member of the partnership throughout the fiscal period of the partnership and who was not a specified member of the partnership during the fiscal period of the partnership). Amount of unallocated partnership ITC (8.31) For the purpose of subsection (8.3), the amount determined under this subsection in respect of a fiscal period of a partnership is the amount, if any, by which (a) the total of all amounts each of which is an amount that would, if the partnership were a person and its fiscal period were its taxation year, be determined in respect of the partnership under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition “investment tax credit” in subsection (9) for a taxation year that is the fiscal period, exceeds (b) the total of (i) the total of all amounts each of which is the amount determined under subsection (8) in respect of the fiscal period to be the share of the total determined under paragraph (a) of a partner of the partnership (other than a member of the partnership who was at any time in the fiscal period of the partnership a specified member of the partnership), (ii) the total of all amounts each of which is the amount determined under subsection (8), with reference to subsection (8.1), in respect of the fiscal period to be the share of the total determined under paragraph (a) of a partner of the partnership who was at any time in the fiscal period of the partnership a specified member of the partnership, and (iii) the amount, if any, by which (A) the amount that would be determined under subparagraph (i) in respect of the partners referred to in subpara88 C. 2 Budget Implementa graph (ii) if subparagraph (i) applied only to those partners and those partners were not specified members of the partnership, exceeds (B) the amount determined under subparagraph (ii) in respect of those partners. (7) The definition “investment tax credit” in subsection 127(9) of the Act is amended by adding the following after paragraph (a.3): (a.4) the total of all amounts each of which is an apprenticeship expenditure of the taxpayer for the taxation year in respect of an eligible apprentice, (8) Subsection 127(9) of the Act is amended by adding the following in alphabetical order: “apprenticeship expenditure” « dépense d’apprentissage » “apprenticeship expenditure” of a taxpayer for a taxation year in respect of an eligible apprentice is the lesser of (a) $2,000, and (b) 10% of the eligible salary and wages payable by the taxpayer in the taxation year to the eligible apprentice in respect of the eligible apprentice’s employment, in the taxation year and on or after May 2, 2006, by the taxpayer in a business carried on in Canada by the taxpayer in the taxation year; “eligible apprentice” « apprenti admissible » “eligible salary and wages” « traitement et salaire admissibles » “eligible apprentice” means an individual who is employed in a prescribed trade in Canada during the first two years of the individual’s apprenticeship contract, which is registered with Canada or a province under an apprenticeship program designed to certify or license individuals in the trade; “eligible salary and wages” payable by a taxpayer to an eligible apprentice means the amount, if any, that is the salary and wages payable by the taxpayer to the eligible apprentice in respect of the first 24 months of the apprenticeship (other than remuneration that is 2006-2007 Exécution du bud based on profits, bonuses, amounts described in section 6 or 7, and amounts deemed to be incurred by subsection 78(4)); (9) The portion of subsection 127(10.2) of the Act before paragraph (a) of the description of A is replaced by the following: Expenditure limit determined (10.2) For the purpose of subsection (10.1), a corporation’s expenditure limit for a particular taxation year is the amount determined by the formula ($6,000,000 - 10A) × B/C where A is the greater of $400,000 and either (10) Subsection 127(11.1) of the Act is amended by striking out the word “and” at the end of paragraph (c.3) and by adding the following after that paragraph: (c.4) the amount of a taxpayer’s apprenticeship expenditure for a taxation year is deemed to be the amount of the taxpayer’s apprenticeship expenditure for the year otherwise determined less the amount of any government assistance or non-government assistance in respect of the expenditure for the year that, at the time of the filing of the taxpayer’s return of income for the year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive; and (11) Section 127 of the Act is amended by adding the following after subsection (11.3): Special rule for eligible salary and wages — apprentices (11.4) For the purpose of the definition “eligible salary and wages” in subsection (9), the eligible salary and wages payable by a taxpayer in a taxation year to an eligible apprentice in respect of the eligible apprentice’s employment in the taxation year is, if the C. 2 Budget Implementa eligible apprentice is employed by any other taxpayer who is related to the taxpayer (including a partnership that has a member that is related to the taxpayer) in the calendar year that includes the end of the taxpayer’s taxation year, deemed to be nil unless the taxpayer is designated in prescribed form by all of those related taxpayers to be the only employer of the eligible apprentice for the purpose of the taxpayer applying that definition to the salary and wages payable by the taxpayer to the eligible apprentice in that taxation year, in which case (a) the eligible salary and wages payable by the taxpayer in the taxation year to the eligible apprentice in respect of the eligible apprentice’s employment in the taxation year shall be the amount determined without reference to this subsection; and (b) the eligible salary and wages payable to the eligible apprentice by each of the other related taxpayers in their respective taxation years that end in the calendar year is deemed to be nil. (12) Subsections (1) to (8), (10) and (11) apply to taxation years that end on or after May 2, 2006 except that, in respect of a taxpayer’s taxation year that ends in 2006, subsections 127(8.3) and (8.31) of the Act, as enacted by subsection (6), shall be read as follows: (8.3) Where (a) the amount that would, if the partnership were a person and its fiscal period were its taxation year, be determined in respect of the partnership under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition “investment tax credit” in subsection (9) for a taxation year exceeds (b) the total of all amounts each of which is the amount determined, under subsections (8) and (8.1), to be the share thereof of a limited partner of the partnership, 2006-2007 Exécution du bud such portion of the excess as is reasonable in the circumstances (having regard to the investment in the partnership, including debt obligations of the partnership, of each of those members of the partnership who was a member of the partnership throughout the fiscal period of the partnership and who was not a limited partner of the partnership during the fiscal period of the partnership) shall, for the purposes of subsection (8), be considered to be the amount that may reasonably be considered to be that member’s share of the amount described in paragraph (a). (13) Subsection (9) applies to the 2007 and subsequent taxation years except that, for a 2007 or 2008 taxation year that immediately follows a taxation year that ended before 2007, the reference in the formula in subsection 127(10.2) of the Act, as enacted by subsection (9), to “$6,000,000” is to be read as a reference to “$5,000,000” and the reference to “$400,000” in the description of A is to be read as a reference to “$300,000”. 34.1 (1) Subparagraph 127.52(1)(h)(i) of the Act is replaced by the following: (i) the amounts deducted under any of subsections 110(2), 110.6(2), (2.1), (2.2), (3) and (12) and 110.7(1), (2) Subsection (1) applies to taxation years that end on or after May 2, 2006. 35. (1) Paragraph 127.531(a) of the Act is replaced by the following: (a) an amount deducted under subsection 118(1), (2) or (10), 118.01(2), 118.02(2), 118.03(2) or 118.3(1) or any of sections 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or (2) Subsection (1) applies to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, paragraph 127.531(a) of the Act, as enacted by subsection (1), is to be read without its reference to subsection 118.03(2). C. 2 Budget Implementa 36. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following: (A) under section 118, 118.01, 118.02, 118.03, 118.2, 118.3, 118.5, 118.6, 118.8 or 118.9, (2) Subsection (1) applies to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, clause 128(2)(e)(iii)(A) of the Act, as enacted by subsection (1), is to be read without its reference to section 118.03. 37. (1) The portion of subsection 137(3) of the Act before paragraph (a) is replaced by the following: Additional deduction (3) There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation that was, throughout the year, a credit union, an amount equal to the amount determined by multiplying the rate that would, if subsection 125(1.1) applied to the corporation for the year, be its small business deduction rate for the year within the meaning assigned by that subsection, by the amount, if any, by which the lesser of (2) Subsection (1) applies to the 2008 and subsequent taxation years. 38. (1) Subsection 137.1(9) of the Act is replaced by the following: Special tax rate (9) The tax payable under this Part by a corporation for a taxation year throughout which it was a deposit insurance corporation (other than a corporation incorporated under the Canada Deposit Insurance Corporation Act) is the amount determined by the formula: (38% - A) × B where A is the rate that would, if subsection 125(1.1) applied to the corporation for the taxation year, be the corporation’s small business deduction rate for the taxation year within the meaning assigned by that subsection; and 2006-2007 Exécution du bud B is the corporation’s taxable income for the taxation year. (2) Subsection (1) applies to the 2008 and subsequent taxation years. 39. (1) Section 147.2 of the Act is amended by adding the following after subsection (6): Letter of credit (7) For the purposes of this section and any regulations made under subsection (2) or under subsection 147.1(18), an amount paid to a registered pension plan by the issuer of a letter of credit issued in connection with an employer’s funding obligations under a defined benefit provision of the plan is deemed to be an eligible contribution made to the plan in respect of the provision by the employer with respect to the employer’s employees or former employees, if (a) the amount is paid under the letter of credit; (b) the use of the letter of credit is permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province; and (c) the amount would have been an eligible contribution under subsection (2) if (i) it had been paid to the plan by the employer, and (ii) this section were read without reference to this subsection. (2) Subsection (1) applies after 2005. 40. (1) Subsections 190.1(1.1) and (1.2) of the Act are repealed. (2) The portion of subsection 190.1(3) of the Act after paragraph (b) is repealed. C. 2 Budget Implementa (3) Subsection 190.1(4) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) an amount may be claimed under paragraph (3)(b) in computing a corporation’s tax payable under this Part for a taxation year that ends before July 1, 2006 in respect of its unused Part I tax credit for a taxation year that ends after July 1, 2006 (referred to in this paragraph as the “credit taxation year”) only to the extent that the unused Part I tax credit exceeds the amount, if any, by which (i) the amount that would, if this Part were read as it applied to the 2005 taxation year, be the corporation’s tax payable under this Part for the credit taxation year exceeds (ii) the corporation’s tax payable under this Part for the credit taxation year. (4) Subsections (1) to (3) apply in respect of taxation years that end on or after July 1, 2006. 41. (1) Subsections 190.15(1) to (3) of the Act are replaced by the following: Capital deduction 190.15 (1) For the purposes of this Part, the capital deduction of a corporation for a taxation year during which it was at any time a financial institution is $1 billion unless the corporation was related to another financial institution at the end of the year, in which case, subject to subsection (4), its capital deduction for the year is nil. Related financial institution (2) A corporation that is a financial institution at any time during a taxation year and that was related to another financial institution at the end of the year may file with the Minister an agreement in prescribed form on behalf of the related group of which the corporation is a member under which an amount that does not 2006-2007 Exécution du bud exceed $1 billion is allocated among the members of the related group for the taxation year. Allocation by Minister (3) The Minister may request a corporation that is a financial institution at any time during a taxation year and that was related to any other financial institution at the end of the year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate an amount among the members of the related group of which the corporation is a member for the year not exceeding $1 billion. (2) Subsection (1) applies to taxation years that end on or after July 1, 2006. 42. (1) Sections 190.16 and 190.17 of the Act are replaced by the following: Transitional Provisions Application to taxation year including July 1, 2006 190.16 (1) If a taxation year of a corporation begins before and ends on or after July 1, 2006, notwithstanding any other provision of this Part, the tax payable under this Part by the corporation for the taxation year is equal to the total of (a) that proportion of the amount that would be the tax payable by the corporation under this Part for the taxation year, if this Part were read as it applied to the 2005 taxation year, that the number of days in the taxation year that are before that day is of the number of days in the taxation year, and (b) that proportion of the amount that would, if this Part were read without reference to this section, be the tax payable by the corporation under this Part for the taxation year that the number of days in the taxation year that are on or after that day is of the number of days in the taxation year. C. 2 Proportionate allocation (2) Any allocation made for the purpose of paragraph (1)(a) under subsection 190.15(2) or (3) shall be in the same proportion as the allocation, if any, made for the purpose of paragraph (1)(b) under subsection 190.15(2) or (3). Capital deduction deemed (3) For the purpose of applying subsection 190.15(5) to a corporation for a taxation year that is described in that subsection in circumstances where the “first such taxation year” referred to in that subsection is a taxation year to which subsection (1) applies, the capital deduction of the corporation for that “first such taxation year” is deemed to be the total of Budget Implementa (a) that proportion of the capital deduction amount allocated to the corporation for the purposes of paragraph (1)(a) that the number of days in the taxation year that are before July 1, 2006 is of the number of days in the taxation year, and (b) that proportion of the capital deduction amount allocated to the corporation for the purposes of paragraph (1)(b) that the number of days in the taxation year that are after June 30, 2006 is of the number of days in the taxation year. (2) Subsection (1) applies to taxation years that end on or after July 1, 2006. PART 2 R.S., c. 1 (5th Supp.) AMENDMENTS TO THE INCOME TAX ACT (DIVIDEND TAXATION) 43. (1) Subsection 15(1.1) of the Income Tax Act is replaced by the following: Conferring of benefit (1.1) Notwithstanding subsection (1), if in a taxation year a corporation has paid a stock dividend to a person and it may reasonably be considered that one of the purposes of that payment was to significantly alter the value of the interest of any specified shareholder of the corporation, the fair market value of the stock dividend shall, except to the extent that it is 2006-2007 Exécution du bud otherwise included in computing that person’s income under any of paragraphs 82(1)(a), (a.1) and (c) to (e), be included in computing the income of that person for the year. (2) Subsection (1) applies to dividends paid after 2005. 43.1 (1) Subparagraph 74.4(2)(b)(ii) of the French version of the Act is replaced by the following: (ii) les sommes incluses dans le revenu du particulier pour l’année en application des paragraphes 82(1) ou 90(1) au titre de dividendes imposables qu’il a reçus au cours de l’année, sauf les dividendes réputés reçus en vertu de l’article 84, soit sur les actions reçues de la société en contrepartie du transfert ou en remboursement du prêt qui sont, au moment de la réception des dividendes, une contrepartie exclue, soit sur des actions y substituées qui sont, à ce moment, une contrepartie exclue; (2) Paragraph 74.4(2)(f) of the English version of the Act is replaced by the following: (f) all amounts included in the individual’s income for the taxation year pursuant to subsection 82(1) or 90(1) in respect of taxable dividends received (other than dividends deemed by section 84 to have been received) by the individual in the year on shares that were received from the corporation as consideration for the transfer or as repayment for the loan that were excluded consideration at the time the dividends were received or on shares substituted therefor that were excluded consideration at that time, and (3) Subsections (1) and (2) apply to amounts received after 2005. 44. (1) Subsection 82(1) of the Act is replaced by the following: Taxable dividends received 82. (1) In computing the income of a taxpayer for a taxation year, there shall be included the total of the following amounts: C. 2 Budget Implementa (a) the amount, if any, by which (i) the total of all amounts, other than eligible dividends and amounts described in paragraph (c), (d) or (e), received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends, exceeds (ii) if the taxpayer is an individual, the total of all amounts paid by the taxpayer in the taxation year that are deemed by subsection 260(5) to have been received by another person as taxable dividends (other than eligible dividends); (a.1) the amount, if any, by which (i) the total of all amounts, other than amounts included in computing the income of the taxpayer because of paragraph (c), (d) or (e), received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends, exceeds (ii) if the taxpayer is an individual, the total of all amounts paid by the taxpayer in the taxation year that are deemed by subsection 260(5) to have been received by another person as eligible dividends; (b) if the taxpayer is an individual, other than a trust that is a registered charity, the total of (i) 25% of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year, and (ii) 45% of the amount determined under paragraph (a.1) in respect of the taxpayer for the taxation year; (c) all taxable dividends received by the taxpayer in the taxation year, from corporations resident in Canada, under dividend rental arrangements of the taxpayer; 2006-2007 Exécution du bud (d) all taxable dividends (other than taxable dividends described in paragraph (c)) received by the taxpayer in the taxation year from corporations resident in Canada that are not taxable Canadian corporations; and (e) if the taxpayer is a trust, all amounts each of which is all or part of a taxable dividend (other than a taxable dividend described in paragraph (c) or (d)) that was received by the trust in the taxation year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was nonresident at the end of the taxation year. (2) Subsection 82(3) of the Act is replaced by the following: Dividends received by spouse or common-law partner (3) Where the amount that would, but for this subsection, be deductible under subsection 118(1) by reason of paragraph 118(1)(a) in computing a taxpayer’s tax payable under this Part for a taxation year that is less than the amount that would be so deductible if no amount were required by subsection (1) to be included in computing the income for the year of the taxpayer’s spouse or common-law partner and the taxpayer so elects in the taxpayer’s return of income for the year under this Part, all amounts described in paragraph (1)(a) or (a.1) received in the year from taxable Canadian corporations by the taxpayer’s spouse or common-law partner are deemed to have been so received by that taxpayer and not by the spouse or common-law partner. (3) Subsections (1) and (2) apply to amounts received or paid after 2005. 45. (1) Paragraph 87(2)(z.2) of the Act is replaced by the following: 100 Application of Parts III and III.1 C. 2 Budget Implementa (z.2) for the purposes of Parts III and III.1, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Subsection 87(2) of the Act is amended by striking out the word “and” at the end of paragraph (tt) and by adding the following after paragraph (uu): General rate income pool (vv) if the new corporation is a Canadiancontrolled private corporation or a deposit insurance corporation in its first taxation year, in computing its general rate income pool at the end of that first taxation year there shall be added the total of all amounts determined under subsection 89(5) in respect of the corporation for that first taxation year; and Low rate income pool (ww) if the new corporation is neither a Canadian-controlled private corporation nor a deposit insurance corporation in its first taxation year, there shall be added in computing its low rate income pool at any time in that first taxation year the total of all amounts determined under subsection 89(9) in respect of the corporation for that first taxation year. (3) Subsections (1) and (2) apply to amalgamations that occur, and to windings-up that begin, after 2005. 46. (1) The portion of paragraph 88(1)(e.2) of the Act before subparagraph (i) is replaced by the following: (e.2) paragraphs 87(2)(c), (d.1), (e.1), (e.3), (g) to (l), (l.3) to (u), (x), (z.1), (z.2), (aa), (cc), (ll), (nn), (pp), (rr) and (tt) to (ww), subsection 87(6) and, subject to section 78, subsection 87(7) apply to the winding-up as if the references in those provisions to (2) Paragraph 88(1)(e.2) of the Act is amended by adding the following after subparagraph (viii): (ix) “subsection 89(5)” and “subsection 89(9)” were read as “subsection 89(6)” and “subsection 89(10)”, respectively, (3) Subsections (1) and (2) apply to windings-up that begin after 2005. 2006-2007 Exécution du bud 47. (1) Subsection 89(1) of the Act is amended by adding the following in alphabetical order: “eligible dividend” « dividende déterminé » “excessive eligible dividend designation” « désignation excessive de dividende déterminé » “eligible dividend” means a taxable dividend that is received by a person resident in Canada, paid after 2005 by a corporation resident in Canada and designated, as provided under subsection (14), to be an eligible dividend; “excessive eligible dividend designation”, made by a corporation in respect of an eligible dividend paid by the corporation at any time in a taxation year, means (a) unless paragraph (c) applies to the dividend, if the corporation is in the taxation year a Canadian-controlled private corporation or a deposit insurance corporation, the amount, if any, determined by the formula (A - B) × C/A where A is the total of all amounts each of which is the amount of an eligible dividend paid by the corporation in the taxation year, B is the greater of nil and the corporation’s general rate income pool at the end of the taxation year, and C is the amount of the eligible dividend, (b) unless paragraph (c) applies to the dividend, if the corporation is not a corporation described in paragraph (a), the amount, if any, determined by the formula A × B/C where A is the lesser of (i) the total of all amounts each of which is an eligible dividend paid by the corporation at that time, and (ii) the corporation’s low rate income pool at that time, B is the amount of the eligible dividend, and C is the amount determined under subparagraph (i) of the description of A, and C. 2 Budget Implementa (c) an amount equal to the amount of the eligible dividend, if it is reasonable to consider that the eligible dividend was paid in a transaction, or as part of a series of transactions, one of the main purposes of which was to artificially maintain or increase the corporation’s general rate income pool, or to artificially maintain or decrease the corporation’s low rate income pool; “general rate income pool” « compte de revenu à taux général » “general rate income pool” at the end of a particular taxation year, of a taxable Canadian corporation that is a Canadian-controlled private corporation or a deposit insurance corporation in the particular taxation year, is the positive or negative amount determined by the formula A-B where A is the positive or negative amount that would, before taking into consideration the specified future tax consequences for the particular taxation year, be determined by the formula C + 0.68(D - E - F) + G + H - I where C is the corporation’s general rate income pool at the end of its preceding taxation year, D is (a) unless paragraph (b) applies, the corporation’s taxable income for the particular taxation year, and (b) if the corporation is a deposit insurance corporation in the particular taxation year, nil, E is the amount determined by multiplying the amount, if any, deducted by the corporation under subsection 125(1) for the particular taxation year by the quotient obtained by dividing 100 by the rate of the deduction provided under that subsection for the particular taxation year, F is 2006-2007 Exécution du bud (a) if the corporation is a Canadiancontrolled private corporation in the particular taxation year, the lesser of the corporation’s aggregate investment income for the particular taxation year and the corporation’s taxable income for the particular taxation year, and (b) in any other case, nil, G is the total of all amounts each of which is (a) an eligible dividend received by the corporation in the particular taxation year, or (b) an amount deductible under section 113 in computing the taxable income of the corporation for the particular taxation year, H is the total of all amounts determined under subsections (4) to (6) in respect of the corporation for the particular taxation year, and I is (a) unless paragraph (b) applies, the amount, if any, by which (i) the total of all amounts each of which is the amount of an eligible dividend paid by the corporation in its preceding taxation year exceeds (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year, or (b) if subsection (4) applies to the corporation in the particular taxation year, nil, and B is 68% of the amount, if any, by which (a) the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for the corpora104 C. 2 Budget Implementa tion’s preceding three taxation years, determined without taking into consideration the specified future tax consequences, for those preceding taxation years, that arise in respect of the particular taxation year, exceeds (b) the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for those preceding taxation years; “low rate income pool” « compte de revenu à taux réduit » “low rate income pool”, at any particular time in a particular taxation year, of a corporation (in this definition referred to as the “non-CCPC”) that is resident in Canada and is in the particular taxation year neither a Canadian-controlled private corporation nor a deposit insurance corporation, is the amount determined by the formula (A + B + C + D + E + F) - (G + H) where A is the non-CCPC’s low rate income pool at the end of its preceding taxation year, B is the total of all amounts each of which is an amount deductible under section 112 in computing the non-CCPC’s taxable income for the year in respect of a taxable dividend (other than an eligible dividend) that became payable, in the particular taxation year but before the particular time, to the non-CCPC by a corporation resident in Canada, C is the total of all amounts determined under subsections (8) to (10) in respect of the nonCCPC for the particular taxation year, D is (a) if the non-CCPC would, but for paragraph (d) of the definition “Canadian-controlled private corporation” in subsection 125(7), be a Canadian-controlled private corporation in its preceding 2006-2007 Exécution du bud taxation year, 80% of its aggregate investment income for its preceding taxation year, and (b) in any other case, nil, E is (a) if the non-CCPC was not a Canadiancontrolled private corporation in its preceding taxation year, 80% of the amount determined by multiplying the amount, if any, deducted by the corporation under subsection 125(1) for that preceding taxation year by the quotient obtained by dividing 100 by the rate of the deduction provided under that subsection for that preceding taxation year, and (b) in any other case, nil, F is (a) if the non-CCPC was an investment corporation in its preceding taxation year, four times the amount, if any, deducted by it under subsection 130(1) for its preceding taxation year, and (b) in any other case, nil, G is the total of all amounts each of which is a taxable dividend (other than an eligible dividend, a capital gains dividend within the meaning assigned by subsection 130.1(4) or 131(1) or a taxable dividend deductible by the non-CCPC under subsection 130.1(1) in computing its income for the particular taxation year or for its preceding taxation year) that became payable, in the particular taxation year but before the particular time, by the nonCCPC, and H is the total of all amounts each of which is an excessive eligible dividend designation made by the non-CCPC in the particular taxation year but before the particular time; (2) Section 89 of the Act is amended by adding the following after subsection (3): C. 2 GRIP addition — becoming CCPC (4) If, in a particular taxation year, a corporation is a Canadian-controlled private corporation or a deposit insurance corporation but was, in its preceding taxation year, a corporation resident in Canada other than a Canadian-controlled private corporation or a deposit insurance corporation, there may be included in computing the corporation’s general rate income pool at the end of the particular taxation year, the amount determined by the formula Budget Implementa A+B+C-D-E-F-G-H where A is the total of all amounts each of which is the cost amount to the corporation of a property immediately before the end of its preceding taxation year; B is the amount of any money of the corporation on hand immediately before the end of its preceding taxation year; C is the amount, if any, by which (a) the total of all amounts that, if the corporation had had unlimited income for its preceding taxation year from each business carried on, and from each property held, by it in that preceding taxation year and had realized an unlimited amount of capital gains for that preceding taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that preceding taxation year exceeds (b) the total of all amounts deducted under subsection 111(1) in computing the corporation’s taxable income for that preceding taxation year; D is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay any amount, that was outstanding immediately before the end of its preceding taxation year; 2006-2007 Exécution du bud E is the paid up capital, immediately before the end of its preceding taxation year, of all of the issued and outstanding shares of the capital stock of the corporation; F is the total of all amounts each of which is a reserve deducted in computing the corporation’s income for its preceding taxation year; G is the corporation’s capital dividend account, if any, immediately before the end of its preceding taxation year; and H is the corporation’s low rate income pool immediately before the end of its preceding taxation year. GRIP addition — postamalgamation (5) If a Canadian-controlled private corporation or a deposit insurance corporation (in this subsection referred to as the “new corporation”) is formed as a result of an amalgamation (within the meaning assigned by subsection 87(1)), there shall be included in computing the new corporation’s general rate income pool at the end of its first taxation year the total of all amounts each of which is (a) in respect of a predecessor corporation that was, in its taxation year that ended immediately before the amalgamation (in this paragraph referred to as its “last taxation year”), a Canadian-controlled private corporation or a deposit insurance corporation, the positive or negative amount determined in respect of the predecessor corporation by the formula A-B where A is the predecessor corporation’s general rate income pool at the end of its last taxation year, and B is the amount, if any, by which (i) the total of all amounts each of which is an eligible dividend paid by the predecessor corporation in its last taxation year exceeds C. 2 Budget Implementa (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the predecessor corporation in its last taxation year; or (b) in respect of a predecessor corporation (in this paragraph referred to as the “nonCCPC predecessor”) that was, in its taxation year that ended immediately before the amalgamation (in this paragraph referred to as its “last taxation year”), not a Canadiancontrolled private corporation or a deposit insurance corporation, the amount determined by the formula A+B+C-D-E-F-G-H where A is the total of all amounts each of which is the cost amount to the non-CCPC predecessor of a property immediately before the end of its last taxation year, B is the amount of any money of the nonCCPC predecessor on hand immediately before the end of its last taxation year, C is the amount, if any, by which (i) the total of all amounts that, if the non-CCPC predecessor had had unlimited income for its last taxation year from each business carried on, and from each property held, by it in that last taxation year and had realized an unlimited amount of capital gains for that last taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that last taxation year exceeds (ii) the total of all amounts deducted under subsection 111(1) in computing the non-CCPC predecessor’s taxable income for its last taxation year, D is the total of all amounts each of which is the amount of any debt owing by the nonCCPC predecessor, or of any other obligation of the non-CCPC predecessor 2006-2007 Exécution du bud to pay any amount, that was outstanding immediately before the end of its last taxation year, E is the paid up capital, immediately before the end of its last taxation year, of all of the issued and outstanding shares of the capital stock of the non-CCPC predecessor, F is the total of all amounts each of which is a reserve deducted in computing the nonCCPC predecessor’s income for its last taxation year, G is the non-CCPC predecessor’s capital dividend account, if any, immediately before the end of its last taxation year, and H is the non-CCPC predecessor’s low rate income pool immediately before the end of its last taxation year. GRIP addition — postwinding-up (6) If subsection 88(1) applies to the winding-up of a subsidiary into a parent (within the meanings assigned by that subsection) that is a Canadian-controlled private corporation or a deposit insurance corporation, there shall be included in computing the parent’s general rate income pool at the end of its taxation year that immediately follows the taxation year during which it receives the assets of the subsidiary on the winding-up (a) if the subsidiary was, in its taxation year during which its assets were distributed to the parent on the winding-up (in this paragraph referred to as its “last taxation year”), a Canadian-controlled private corporation or a deposit insurance corporation, the positive or negative amount determined by the formula A-B where A is the subsidiary’s general rate income pool at the end of its last taxation year, and B is the amount, if any, by which C. 2 Budget Implementa (i) the total of all amounts each of which is an eligible dividend paid by the subsidiary in its last taxation year exceeds (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the subsidiary in its last taxation year; and (b) in any other case, the amount determined by the formula A+B+C-D-E-F-G-H where A is the total of all amounts each of which is the cost amount to the subsidiary of a property immediately before the end of its taxation year during which its assets were distributed to the parent on the windingup (in this paragraph referred to as its “last taxation year”), B is the amount of any money of the subsidiary on hand immediately before the end of its last taxation year, C is the amount, if any, by which (i) the total of all amounts that, if the subsidiary had had unlimited income for its last taxation year from each business carried on, and from each property held, by it in that last taxation year and had realized an unlimited amount of capital gains for that last taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that last taxation year exceeds (ii) the total of all amounts deducted under subsection 111(1) in computing the subsidiary’s taxable income for its last taxation year, D is the total of all amounts each of which is the amount of any debt owing by the subsidiary, or of any other obligation of the subsidiary to pay any amount, that was outstanding immediately before the end of its last taxation year, 2006-2007 Exécution du bud E is the paid up capital, immediately before the end of its last taxation year, of all of the issued and outstanding shares of the capital stock of the subsidiary, F is the total of all amounts each of which is a reserve deducted in computing the subsidiary’s income for its last taxation year, G is the subsidiary’s capital dividend account, if any, immediately before the end of its last taxation year, and H is the subsidiary’s low rate income pool immediately before the end of its last taxation year. GRIP addition for 2006 (7) If a corporation was (or, but for an election under subsection (11), would have been), throughout its first taxation year that includes any part of January 1, 2006, a Canadian-controlled private corporation, its general rate income pool at the end of its immediately preceding taxation year is deemed to be the greater of nil and the amount determined by the formula A-B where A is the total of (a) 63% of the total of all amounts each of which is the corporation’s full rate taxable income (as defined in subsection 123.4(1)), for a taxation year of the corporation that ended after 2000 and C. 2 Budget Implementa before 2004, determined before taking into consideration the specified future tax consequences for that taxation year, (b) 63% of the total of all amounts each of which is the corporation’s full rate taxable income (as would be defined in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) and (ii)), for a taxation year of the corporation that ended after 2003 and before 2006, determined before taking into consideration the specified future tax consequences for that taxation year, and (c) all amounts each of which was deductible under subsection 112(1) in computing the corporation’s taxable income for a taxation year of the corporation (in this paragraph referred to as the “particular corporation”) that ended after 2000 and before 2006, and is in respect of a dividend received from a corporation (in this paragraph referred to as the “payer corporation”) that was, at the time it paid the dividend, connected (within the meaning assigned by subsection 186(4)) with the particular corporation, to the extent that it is reasonable to consider, having regard to all the circumstances (including but not limited to other shareholders having received dividends from the payer corporation), that the dividend was attributable to an amount that is, or if this subsection applied to the payer corporation would be, described in this paragraph or in paragraph (a) or (b) in respect of the payer corporation; and B is the total of all amounts each of which is a taxable dividend paid by the corporation in those taxation years. LRIP addition — ceasing to be CCPC (8) If, in a particular taxation year, a corporation is neither a Canadian-controlled private corporation nor a deposit insurance corporation but was, in its preceding taxation year, a Canadian-controlled private corporation or a deposit insurance corporation, there shall be included in computing the corporation’s low 2006-2007 Exécution du bud rate income pool at any time in the particular taxation year the amount determined by the formula A+B+C-D-E-F-G-H where A is the total of all amounts each of which is the cost amount to the corporation of a property immediately before the end of its preceding taxation year; B is the amount of any money of the corporation on hand immediately before the end of its preceding taxation year; C is the amount, if any, by which (a) the total of all amounts that, if the corporation had had unlimited income for its preceding taxation year from each business carried on, and from each property held, by it in that preceding taxation year and had realized an unlimited amount of capital gains for that preceding taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that preceding taxation year exceeds (b) the total of all amounts deducted under subsection 111(1) in computing the corporation’s taxable income for its preceding taxation year; D is the total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay any amount, that was outstanding immediately before the end of its preceding taxation year; E is the paid up capital, immediately before the end of its preceding taxation year, of all of the issued and outstanding shares of the capital stock of the corporation; F is the total of all amounts each of which is a reserve deducted in computing the corporation’s income for its preceding taxation year; C. 2 Budget Implementa G is (a) if the corporation is not a private corporation in the particular taxation year, the corporation’s capital dividend account, if any, immediately before the end of its preceding taxation year, and (b) in any other case, nil; and H is the positive or negative amount determined by the formula I-J where I is the corporation’s general rate income pool at the end of its preceding taxation year, and J is the amount, if any, by which (a) the total of all amounts each of which is an eligible dividend paid by the corporation in its preceding taxation year exceeds (b) the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year. LRIP addition — amalgamation (9) If a corporation that is resident in Canada and that is neither a Canadian-controlled private corporation nor a deposit insurance corporation (in this subsection referred to as the “new corporation”) is formed as a result of the amalgamation or merger of two or more corporations one or more of which is a taxable Canadian corporation, there shall be included in computing the new corporation’s low rate income pool at any time in its first taxation year the total of all amounts each of which is (a) in respect of a predecessor corporation that was, in its taxation year that ended immediately before the amalgamation, neither a Canadian-controlled private corporation nor a deposit insurance corporation, the predecessor corporation’s low rate income pool at the end of that taxation year; and 2006-2007 Exécution du bud (b) in respect of a predecessor corporation (in this paragraph referred to as the “CCPC predecessor”) that was, throughout its taxation year that ended immediately before the amalgamation (in this paragraph referred to as its “last taxation year”), a Canadian-controlled private corporation or a deposit insurance corporation, the amount determined by the formula A+B+C-D-E-F-G-H where A is the total of all amounts each of which is the cost amount to the CCPC predecessor of a property immediately before the end of its last taxation year, B is the amount of any money of the CCPC predecessor on hand immediately before the end of its last taxation year, C is the amount, if any, by which (i) the total of all amounts that, if the CCPC predecessor had had unlimited income for its last taxation year from each business carried on, and from each property held, by it in that last taxation year and had realized an unlimited amount of capital gains for that last taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that last taxation year exceeds (ii) the total of all amounts deducted under subsection 111(1) in computing the CCPC predecessor’s taxable income for its last taxation year, D is the total of all amounts each of which is the amount of any debt owing by the CCPC predecessor, or of any other obligation of the CCPC predecessor to pay any amount, that was outstanding immediately before the end of its last taxation year, C. 2 Budget Implementa E is the paid up capital, immediately before the end of its last taxation year, of all of the issued and outstanding shares of the capital stock of the CCPC predecessor, F is the total of all amounts each of which is a reserve deducted in computing the CCPC predecessor’s income for its last taxation year, G is (i) if the new corporation is not a private corporation in its first taxation year, the CCPC predecessor’s capital dividend account, if any, immediately before the end of its last taxation year, and (ii) in any other case, nil, and H is the positive or negative amount determined by the formula I-J where I is the CCPC predecessor’s general rate income pool at the end of its last taxation year, and J is the amount, if any, by which (i) the total of all amounts each of which is an eligible dividend paid by the CCPC predecessor in its last taxation year exceeds (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the CCPC predecessor in its last taxation year. LRIP addition — winding-up (10) If, in a particular taxation year, a corporation (in this subsection referred to as the “parent”) is neither a Canadian-controlled private corporation nor a deposit insurance corporation and in the particular taxation year all or substantially all of the assets of another 2006-2007 Exécution du bud corporation (in this subsection referred to as the “subsidiary”) were distributed to the parent on a dissolution or winding-up of the subsidiary, there shall be included in computing the parent’s low rate income pool at any time in the particular taxation year that is at or after the end of the subsidiary’s taxation year (in this subsection referred to as the subsidiary’s “last taxation year”) during which its assets were distributed to the parent on the winding-up, (a) if the subsidiary was, in its last taxation year, neither a Canadian-controlled private corporation nor a deposit insurance corporation, the subsidiary’s low rate income pool immediately before the end of that taxation year; and (b) in any other case, the amount determined by the formula A+B+C-D-E-F-G-H where A is the total of all amounts each of which is the cost amount to the subsidiary of a property immediately before the end of its last taxation year, B is the amount of any money of the subsidiary on hand immediately before the end of its last taxation year, C is the amount, if any, by which (i) the total of all amounts that, if the subsidiary had had unlimited income for its last taxation year from each business carried on, and from each property held, by it in that last taxation year and had realized an unlimited amount of capital gains for that last taxation year, would have been deductible under subsection 111(1) in computing its taxable income for that last taxation year exceeds (ii) the total of all amounts deducted under subsection 111(1) in computing the subsidiary’s taxable income for its last taxation year, C. 2 Budget Implementa D is the total of all amounts each of which is the amount of any debt owing by the subsidiary, or of any other obligation of the subsidiary to pay any amount, that was outstanding immediately before the end of its last taxation year, E is the paid up capital, immediately before the end of its last taxation year, of all of the issued and outstanding shares of the capital stock of the subsidiary, F is the total of all amounts each of which is a reserve deducted in computing the subsidiary’s income for its last taxation year, G is (i) if the parent is not a private corporation in the particular taxation year, the subsidiary’s capital dividend account, if any, immediately before the end of its last taxation year, and (ii) in any other case, nil, and H is the positive or negative amount determined by the formula I-J where I is the subsidiary’s general rate income pool at the end of its last taxation year, and J is the amount, if any, by which (i) the total of all amounts each of which is an eligible dividend paid by the subsidiary in its last taxation year exceeds (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the subsidiary in its last taxation year. 2006-2007 Exécution du bud Election: nonCCPC (11) Subject to subsection (12), a corporation that files with the Minister on or before its filing-due date for a particular taxation year an election in prescribed form to have this subsection apply is deemed for the purposes described in paragraph (d) of the definition “Canadiancontrolled private corporation” in subsection 125(7) not to be a Canadian-controlled private corporation at any time in or after the particular taxation year. Revoking election (12) If a corporation files with the Minister on or before its filing-due date for a particular taxation year a notice in prescribed form revoking, as of the end of the particular taxation year, an election described in subsection (11), the election ceases to apply to the corporation at the end of the particular taxation year. Repeated elections — consent required (13) If a corporation has, under subsection (12), revoked an election, any subsequent election under subsection (11) or subsequent revocation under subsection (12) is invalid unless (a) the Minister consents in writing to the subsequent election or the subsequent revocation, as the case may be; and (b) the corporation complies with any conditions imposed by the Minister. Dividend designation (14) A corporation designates a dividend it pays at any time to be an eligible dividend by notifying in writing at that time each person or partnership to whom it pays all or any part of the dividend that the dividend is an eligible dividend. Meaning of expression “deposit insurance corporation” (15) For the purposes of paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions “excessive eligible dividend designation”, “general rate income pool”, and “low rate income pool” in subsection (1) and subsections (4) to (6) and (8) to (10), a corporation is a deposit insurance corporation if it would be a deposit insurance corporation as defined in the C. 2 Budget Implementa definition “deposit insurance corporation” in subsection 137.1(5) were that definition read without reference to its paragraph (b) and were this Act read without reference to subsection 137.1(5.1). (3) Subsections (1) and (2) apply to taxation years that end after 2005 except that (a) subsection 89(7) of the Act, as enacted by subsection (2), applies only to the first taxation year of a corporation that includes any part of January 1, 2006; (b) in respect of a dividend paid before this Act is assented to, a designation under subsection 89(14) of the Act, as enacted by subsection (2), is deemed to have been made in a timely manner if it is made on or before the day that is 90 days after the day on which this Act is assented to; and (c) in applying the definition “low rate income pool” in subsection 89(1) of the Act, as enacted by subsection (1), for taxation years that began before 2006, the description of B in that definition shall be read as follows: B is the total of all amounts each of which is an amount deductible under section 112 in computing the non-CCPC’s taxable income for the year in respect of a taxable dividend (other than an eligible dividend) that became payable, in the particular taxation year and after 2005, but before the particular time, to the non-CCPC by a corporation resident in Canada, 48. (1) Subsection 121 of the Act is replaced by the following: Deduction for taxable dividends 121. There may be deducted from the tax otherwise payable under this Part by an individual for a taxation year the total of (a) 2/3 of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual’s income for the year; and 2006-2007 Exécution du bud (b) 11/18 of the amount, if any, that is required by subparagraph 82(1)(b)(ii) to be included in computing the individual’s income for the year. (2) Subsection (1) applies to dividends paid after 2005. 49. (1) The definition “Canadian-controlled private corporation” in subsection 125(7) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in applying subsection (1), paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions “excessive eligible dividend designation”, “general rate income pool” and “low rate income pool” in subsection 89(1) and subsections 89(4) to (6), (8) to (10) and 249(3.1), a corporation that has made an election under subsection 89(11) and that has not revoked the election under subsection 89(12); (2) Subsection (1) applies to taxation years that end after 2005. 50. (1) Paragraph 127.52(1)(f) of the Act is replaced by the following: (f) subsection 82(1) were read without reference to paragraph 82(1)(b); (2) Subsection (1) applies to dividends paid after 2005. 51. (1) The Act is amended by adding the following after section 185: PART III.1 ADDITIONAL TAX ON EXCESSIVE ELIGIBLE DIVIDEND DESIGNATIONS Tax on excessive eligible dividend designations 185.1 (1) A corporation that has made an excessive eligible dividend designation in respect of an eligible dividend paid by it at any time in a taxation year shall, on or before C. 2 Budget Implementa the corporation’s balance-due day for the taxation year, pay a tax under this Part for the taxation year equal to the total of (a) 20% of the excessive eligible dividend designation, and (b) if the excessive eligible dividend designation arises because of the application of paragraph (c) of the definition “excessive eligible dividend designation” in subsection 89(1), 10% of the excessive eligible dividend designation. Election to treat excessive eligible dividend designation as an ordinary dividend (2) If, in respect of an excessive eligible dividend designation that is not described in paragraph (1)(b) and that is made by a corporation in respect of an eligible dividend (in this subsection and subsection (3) referred to as the “original dividend”) paid by it at a particular time, the corporation would, if this Act were read without reference to this subsection, be required to pay a tax under subsection (1), and it elects in prescribed manner on or before the day that is 90 days after the day of mailing the notice of assessment in respect of that tax that would otherwise be payable under subsection (1), the following rules apply: (a) notwithstanding the definition “eligible dividend” in subsection 89(1), the amount of the original dividend paid by the corporation is deemed to be the amount, if any, by which (i) the amount of the original dividend, determined without reference to this subsection exceeds (ii) the amount claimed by the corporation in the election not exceeding the excessive eligible dividend designation, determined without reference to this subsection; (b) an amount equal to the amount claimed by the corporation in the election is deemed to be a separate taxable dividend (other than an eligible dividend) that was paid by the corporation immediately before the particular time; 2006-2007 Exécution du bud (c) each shareholder of the corporation who at the particular time held any of the issued shares of the class of shares in respect of which the original dividend was paid is deemed (i) not to have received the original dividend, and (ii) to have received at the particular time (A) as an eligible dividend, the shareholder’s pro rata portion of the amount of any dividend determined under paragraph (a), and (B) as a taxable dividend (other than an eligible dividend) the shareholder’s pro rata portion of the amount of any dividend determined under paragraph (b); and (d) a shareholder’s pro rata portion of a dividend paid at any time on a class of the shares of the capital stock of a corporation is that proportion of the dividend that the number of shares of that class held by the shareholder at that time is of the number of shares of that class outstanding at that time. Concurrence with election (3) An election under subsection (2) in respect of an original dividend is valid only if (a) it is made with the concurrence of the corporation and all its shareholders (i) who received or were entitled to receive all or any portion of the original dividend, and (ii) whose addresses were known to the corporation; and (b) either (i) it is made on or before the day that is 30 months after the day on which the original dividend was paid, or (ii) each shareholder described in subparagraph (a)(i) concurs with the election, in which case, notwithstanding subsections 152(4) to (5), any assessment of the tax, interest and penalties payable by each of those shareholders for any taxation year shall be made that is necessary to take the corporation’s election into account. C. 2 Exception for non-taxable shareholders (4) If each shareholder who, in respect of an election made under subsection (2), is deemed by subsection (2) to have received a dividend at a particular time is also, at the particular time, a person all of whose taxable income is exempt from tax under Part I, Budget Implementa (a) subsection (3) does not apply to the election; and (b) the election is valid only if it is made on or before the day that is 30 months after the day on which the original dividend was paid. Return 185.2 (1) Every corporation resident in Canada that pays a taxable dividend (other than a capital gains dividend within the meaning assigned by subsection 130.1(4) or 131(1)) in a taxation year shall file with the Minister, not later than the corporation’s filing-due date for the taxation year, a return for the year under this Part in prescribed form containing an estimate of the taxes payable by it under this Part for the taxation year. Provisions applicable to Part (2) Subsections 150(2) and (3), sections 151, 152, 158 and 159, subsections 161(1) and (11), sections 162 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require. Joint and several liability from excessive eligible dividend designations (3) Without limiting the liability of any person under any other provision of this Act, if a Canadian-controlled private corporation or a deposit insurance corporation pays an eligible dividend in respect of which it has made an excessive eligible dividend designation to a shareholder with whom it does not deal at arm’s length, the shareholder is jointly and severally, or solidarily, liable with the corporation to pay that proportion of the corporation’s tax payable under this Part because of the designation that the amount of the eligible dividend received by the shareholder is of the total of all amounts each of which is a dividend in respect of which the designation was made. Assessment (4) The Minister may, at any time after the last day on which a corporation may make an election under subsection 185.1(2) in respect of an excessive eligible dividend designation, 2006-2007 Exécution du bud assess a person in respect of any amount payable under subsection (3) in respect of the designation, and the provisions of Division I of Part I (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, to an assessment made under this subsection as though it were made under section 152. Rules applicable (5) If under subsection (3) a corporation and a shareholder have become jointly and severally, or solidarily, liable to pay part or all of the corporation’s tax payable under this Part in respect of an excessive eligible dividend designation described in subsection (3), (a) a payment at any time by the shareholder on account of the liability shall, to the extent of the payment, discharge their liability after that time; and (b) a payment at any time by the corporation on account of its liability shall discharge the shareholder’s liability only to the extent of the amount determined by the formula (A - B) × C/D where A is the total of (i) the amount of the corporation’s liability, immediately before that time, under this Part in respect of the designation, and (ii) the amount of the payment, B is the amount of the corporation’s liability, immediately before that time, under this Act, C is the amount of the eligible dividend received by the shareholder, and D the total of all amounts each of which is a dividend in respect of which the designation was made. (2) Subsection (1) applies to taxation years that end after 2005 except that, in respect of a dividend paid before this Act is assented to, C. 2 Budget Implementa an election under subsection 185.1(2) of the Act, as enacted by subsection (1), is deemed to have been made in a timely manner if it is made on or before the day that is 30 months after the day on which this Act is assented to. 52. (1) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: “aggregate investment income” « revenu de placement total » “eligible dividend” « dividende déterminé » “excessive eligible dividend designation” « désignation excessive de dividende déterminé » “aggregate investment income” has the meaning assigned by subsection 129(4); “eligible dividend” has the meaning assigned by subsection 89(1); “excessive eligible dividend designation” has the meaning assigned by subsection 89(1); “general rate income pool” « compte de revenu à taux général » “general rate income pool” has the meaning assigned by subsection 89(1); “low rate income pool” « compte de revenu à taux réduit » “low rate income pool” has the meaning assigned by subsection 89(1); (2) Subsection (1) applies to taxation years that end after 2005. 53. (1) Section 249 of the Act is amended by adding the following after subsection (3): Year end on status change (3.1) If at any time a corporation becomes or ceases to be a Canadian-controlled private corporation, otherwise than because of an acquisition of control to which subsection (4) would, if this Act were read without reference to this subsection, apply, 2006-2007 Exécution du bud (a) subject to paragraph (c), the corporation’s taxation year that would, if this Act were read without reference to this subsection, include that time is deemed to end immediately before that time; (b) a new taxation year of the corporation is deemed to begin at that time; (c) notwithstanding subsections (1) and (3), the corporation’s taxation year that would, if this Act were read without reference to this subsection, have been its last taxation year that ended before that time is deemed instead to end immediately before that time if (i) were this Act read without reference to this paragraph, that taxation year would, otherwise than because of paragraph 128(1)(d), section 128.1 and paragraphs 142.6(1)(a) or 149(10)(a), have ended within the 7-day period that ended immediately before that time, (ii) within that 7-day period no person or group of persons acquired control of the corporation, and the corporation did not become or cease to be a Canadiancontrolled private corporation, and (iii) the corporation elects, in its return of income under Part I for that taxation year to have this paragraph apply; and (d) for the purpose of determining the corporation’s fiscal period after that time, the corporation is deemed not to have established a fiscal period before that time. (2) Subsection (1) applies to taxation years that end after 2005. 54. (1) Section 260 of the Act is amended by adding the following after subsection (1): Eligible dividend (1.1) This subsection applies to an amount if the amount is received by a person who is resident in Canada, the amount is deemed under subsection (5) to be a taxable dividend, and the amount is either C. 2 Budget Implementa (a) received as compensation for an eligible dividend, within the meaning assigned by subsection 89(1); or (b) received as compensation for a taxable dividend (other than an eligible dividend) paid by a corporation to a non-resident shareholder in circumstances where it is reasonable to consider that the corporation would, if that shareholder were resident in Canada, have designated the dividend to be an eligible dividend under subsection 89(14). (2) The portion of subsection 260(5) of the Act after paragraph (b) is replaced by the following: as compensation for a taxable dividend paid on a share of the capital stock of a public corporation that is a qualified security shall, to the extent of the amount of that dividend, be deemed to have been received as a taxable dividend and, if subsection (1.1) applies to the amount, as an eligible dividend on the share from the corporation. (3) Subsections (1) and (2) apply to amounts received as compensation for dividends paid after 2005. PART 3 AMENDMENTS RELATING TO THE EXCISE DUTIES ON CANADIAN WINE AND BEER 2002, c. 22 EXCISE ACT, 2001 55. (1) Section 87 of the Excise Act, 2001 is amended by striking out the word “and” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) in the case of wine on which duty is not imposed because of paragraph 135(2)(a), before the wine is (i) removed from the licensee’s premises, (ii) consumed, or (iii) made available for sale on the premises; and (2) Subsection (1) is deemed to have come into force on July 1, 2006. 2006-2007 Exécution du bud 56. (1) Subsection 134(3) of the Act is replaced by the following: Exceptions (3) Subsection (1) does not apply to (a) wine that is produced in Canada and composed wholly of agricultural or plant product grown in Canada; and (b) wine that is produced by an individual for their personal use and that is consumed in the course of that use. (2) Subsection (1) applies to wine taken for use after June 2006. 57. (1) Paragraph 135(2)(a) of the Act is replaced by the following: (a) produced in Canada and composed wholly of agricultural or plant product grown in Canada; (a.1) produced and packaged by an individual for their personal use; or (2) Subsection (1) applies to wine packaged after June 2006. R.S., c. E-14 EXCISE ACT 58. (1) Section 2 of the Excise Act is amended by adding the following in alphabetical order: “person” « personne » “person” means an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind; (2) Subsection (1) is deemed to have come into force on July 1, 2006. 59. (1) The Act is amended by adding the following after section 2.1: Related persons 2.2 For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and C. 2 Budget Implementa (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively. Associated persons 2.3 (1) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act. Corporations controlled by same person or group (2) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others. Partnership or trust (3) For the purposes of this Act, a person is associated with (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust. Association with third person (4) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person. Exception 2.4 If a corporation that is a licensed brewer would otherwise be related to another corporation that is also a licensed brewer by reason that the corporations are controlled by individuals connected by blood relationship, marriage or common-law partnership or adoption, the corporations are deemed not to be related for the purposes of section 170.1 if it is established that they deal with each other at arm’s length. (2) Subsection (1) is deemed to have come into force on July 1, 2006. 2006-2007 Exécution du bud 60. (1) Subsection 170(1) of the Act is replaced by the following: Duties 170. (1) There shall be imposed, levied and collected on every hectolitre of beer or malt liquor the duties of excise set out in Part II of the schedule, which duties shall be paid to the collector as provided in this Act. (2) Subsection (1) is deemed to have come into force on July 1, 2006. 61. (1) The Act is amended by adding the following after section 170: Reduced rates — production 170.1 (1) With respect to the first 75,000 hectolitres of beer and malt liquor brewed in Canada per year by a licensed brewer and any person related or associated with the brewer, there shall be imposed, levied and collected on each of those hectolitres the duties of excise set out in Part II.1 of the schedule, which duties shall be paid to the collector as provided in this Act, and section 170 does not apply to those hectolitres. Reduced rates — packaging (2) If the beer or malt liquor described by subsection (1) is packaged by a licensed brewer (in this subsection, referred to as the “packaging brewer”) other than the licensed brewer or related or associated person referred to in that subsection, there shall be imposed, levied and collected on every hectolitre of beer or malt liquor packaged by the packaging brewer duties of excise at the rates that applied to the beer or malt liquor under subsection (1). Exclusion of exports and dealcoholized beer (3) In subsection (1), the reference to “first 75,000 hectolitres of beer and malt liquor brewed in Canada” does not include (a) beer or malt liquor that is exported or deemed to be exported under section 173; and (b) beer or malt liquor containing not more than 0.5 % absolute ethyl alcohol by volume. Treatment of contract production (4) If, at any time, beer or malt liquor is brewed by a licensed brewer for another licensed brewer under an agreement with the other brewer, subsection (1) applies as though it C. 2 Budget Implementa had been brewed by the brewer who has brewed the greater volume of beer and malt liquor during the year up to that time. Election for related or associated licensees (5) If a licensed brewer is related or associated with one or more other licensed brewers, each of the brewers must file with the Minister an election in a form and manner satisfactory to the Minister that allocates the 75,000 hectolitre quantity amongst the brewers. The election must be filed no later than the filing due date of the first return in which the brewer reports duties that are imposed, levied and collected under subsection (1). Brewer formed by business combination (6) For the purposes of this section, if, in a year, two or more brewers (each of which is referred to in this subsection as a “predecessor brewer”) are amalgamated, merged or otherwise combined to form a new brewer, the following rules apply: (a) the aggregate production of beer and malt liquor of the new and predecessor brewers for that year will be used for the purposes of applying subsection (1); (b) the new brewer must determine the amount of duty that would have been imposed, levied and collected under subsection (1) on the aggregate production; and (c) the new brewer is liable for and must, within 60 days of the combination, report and pay any difference between the amount calculated under paragraph (b) and the amounts paid by the predecessor brewers. (2) Subsection (1) is deemed to have come into force on July 1, 2006, except that, for 2006, every reference to “75,000” in section 170.1 of the Act, as enacted by subsection (1), shall be read as a reference to “37,500”. 62. (1) The schedule to the Act is amended by replacing the reference “(Sections 135, 170, 185 and 200)” after the heading “SCHEDULE” with the reference “(Sections 135, 170, 170.1, 185 and 200)”. (2) Subsection (1) is deemed to have come into force on July 1, 2006. 2006-2007 Exécution du bud 63. (1) The schedule to the Act is amended by adding the following after Part II: II.1 CANADIAN BEER 1. On the first 2,000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, $3.122 per hectolitre; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $1.561 per hectolitre; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, $0.2591 per hectolitre. 2. On the next 3,000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, $6.244 per hectolitre; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $3.122 per hectolitre; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, $0.5182 per hectolitre. 3. On the next 10,000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, $12.488 per hectolitre; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $6.244 per hectolitre; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, $1.0364 per hectolitre. 4. On the next 35,000 hectolitres of beer and malt liquor brewed in Canada, C. 2 Budget Implementa (a) if it contains more than 2.5% absolute ethyl alcohol by volume, $21.854 per hectolitre; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $10.927 per hectolitre; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, $1.8137 per hectolitre. 5. On the next 25,000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, $26.537 per hectolitre; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $13.269 per hectolitre; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, $2.2024 per hectolitre. (2) Subsection (1) is deemed to have come into force on July 1, 2006, except that, for 2006, (a) the reference to “35,000” in section 4 of Part II.1 of the schedule to the Act, as enacted by subsection (1), shall be read as a reference to “22,500”; and (b) section 5 of Part II.1 of the schedule to the Act, as enacted by subsection (1), does not apply. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 11 An Act to amend the Canada Pension Plan and the Old Age Security Act ASSENTED TO 3rd MAY, 2007 BILL C-36 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Pension Plan and the Old Age Security Act”. SUMMARY This enactment amends the Canada Pension Plan to implement the existing full funding provision for new benefits and benefit enhancements. It also provides for their calculation, the requirements for public reporting of those costs and the integration of those costs into the process for setting the contribution rate. It changes the contributory requirement for disability benefits under the Canada Pension Plan for contributors with 25 or more years of contributions to the Canada Pension Plan, to require contributions in only three of the last six years in the contributory period. Other contributors will continue to have to meet the existing requirement of contributions in four of the last six years in their contributory period. It also makes changes to the Canada Pension Plan of an administrative nature to modernize service delivery. It authorizes the Governor in Council to make regulations respecting the payment of interest on amounts owing to Her Majesty under Part II of the Act. It also addresses anomalies in the Act, amends the penalty provisions and clarifies certain language used in the Act. In addition, this enactment amends the Old Age Security Act to authorize the Governor in Council to make regulations respecting the payment of interest on amounts owing to Her Majesty under the Act. The enactment also eliminates the ability of estates or successions to apply for income-tested benefits and ensures that sponsored immigrants are treated the same for the purpose of determining entitlements to income-tested benefits. It also corrects anomalies in the Act, amends the penalty provisions, modernizes and simplifies the application and delivery of the Old Age Security program and clarifies certain language used in the Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 11 An Act to amend the Canada Pension Plan and the Old Age Security Act [Assented to 3rd May, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. C-8 CANADA PENSION PLAN 1. The Canada Pension Plan is amended by adding the following after section 4: ELECTRONIC ALTERNATIVES Power of Ministers 4.1 The Minister of Social Development and the Minister of National Revenue may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act. 2. Paragraph 44(2)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (i) and by adding the following after subparagraph (i): (i.1) for at least 25 calendar years included either wholly or partly in the contributor’s contributory period, of which at least three are in the last six calendar years included either wholly or partly in the contributor’s contributory period, or 2000, c. 12, s. 47 3. (1) The portion of paragraph 55.1(1)(b) of the Act before subparagraph (i) is replaced by the following: C. 11 Canada Pension Plan (b) in the case of spouses, following the approval by the Minister of an application made by or on behalf of either spouse, by the estate or succession of either spouse or by any person that may be prescribed, if 2000, c. 12, s. 47 (2) Paragraph 55.1(1)(c) of the Act is replaced by the following: (c) in the case of common-law partners, following the approval by the Minister of an application made by or on behalf of either former common-law partner, by the estate or succession of one of those former commonlaw partners or by any person that may be prescribed, if (i) the former common-law partners have been living separate and apart for a period of one year or more, or one of the former common-law partners has died during that period, and (ii) the application is made within four years after the day on which the former common-law partners commenced to live separate and apart or, if both former common-law partners agree in writing, at any time after the end of that four-year period. 1997, c. 40, s. 80 4. (1) Subsection 66(2) of the Act is replaced by the following: Recovery of amount of payment (2) If a person has received or obtained a benefit payment to which the person is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person is entitled, the amount of the benefit payment or the excess amount, as the case may be, constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. Recovery of amount of interest (2.01) Interest payable under this Part constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. 2006-2007 Régime de pensions du Canad (2) Section 66 of the Act is amended by adding the following after subsection (2.01): Recovery of amount of penalty (2.02) The amount of a penalty imposed on a person under section 90.1 constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. 1997, c. 40, s. 80 (3) Subsection 66(2.1) of the French version of the Act is replaced by the following: Déduction (2.1) Le montant de la créance peut en outre être déduit, de la façon réglementaire, des sommes à payer au débiteur ou à sa succession en vertu de la présente loi ou de toute autre loi dont l’application incombe au ministre ou au titre de tout programme dont la gestion lui est confiée. 1997, c. 40, s. 80 (4) Subsection 66(2.7) of the Act is replaced by the following: Garnishment (2.7) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to Her Majesty under this Part, the Minister may, by a notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability. (5) Section 66 of the Act is amended by adding the following after subsection (5): Exclusion of Financial Administration Act (6) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Part. 5. (1) Subsection 89(1) of the Act is amended by striking out the word “and” at the end of paragraph (l) and by adding the following after paragraph (l): C. 11 Canada Pension Plan (l.1) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Part, including (i) the technology or process, and the format, that must be used, (ii) the place where an electronic document is to be made or sent, (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received, (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and (v) the circumstances in which an electronic document must be signed with an electronic signature or a secure electronic signature; (l.2) providing that a requirement under a provision of this Part to provide a document or information by non-electron-ic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with; and (2) Section 89 of the Act is amended by adding the following after subsection (1): Regulations — payment of interest (2) The Governor in Council may make regulations respecting the payment of interest on amounts owing to Her Majesty under this Part, including regulations prescribing (a) the circumstances in which interest is payable; (b) rates of interest or the manner of calculating rates of interest; (c) terms and conditions for the imposition and payment of interest; and (d) terms and conditions under which the Minister may waive, reduce or remit the interest payable. 2006-2007 Personal Information Protection and Electronic Documents Act Régime de pensions du Canad (3) In paragraphs (1)(l.1) and (l.2), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. 6. The heading before section 90.1 of the English version of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Administrative Monetary Penalties 7. (1) The portion of subsection 90.1(1) of the French version of the Act before paragraph (a), as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Pénalités 90.1 (1) S’il prend connaissance de faits qui, à son avis, démontrent qu’une personne a commis l’un des actes ou omissions ci-après, le ministre peut lui infliger une pénalité pour chacun de ces actes ou omissions : (2) Paragraph 90.1(1)(d) of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: (d) received or obtained by cheque or otherwise a benefit payment to which the person knew that they were not entitled, or a benefit payment that the person knew was in excess of the amount of the benefit payment to which they were entitled, and did not return the cheque or the amount of the benefit payment, or the excess amount, as the case may be, without delay; or (3) Paragraph 90.1(1)(e) of the French version of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: e) participer, consentir ou acquiescer à la commission de tout acte ou omission visé à l’un ou l’autre des alinéas a) à d). C. 11 Canada Pension Plan (4) Section 90.1 of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is amended by adding the following after subsection (1): Purpose of penalty (1.1) The purpose of the penalty is to promote compliance with this Act and not to punish. (5) Subsection 90.1(4) of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Rescission, etc., of penalty (4) The Minister may rescind the imposition of a penalty under subsection (1), or reduce the penalty, (a) on the presentation of new facts; (b) on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact; (c) on being satisfied that the penalty cannot be collected within the reasonably foreseeable future; or (d) on being satisfied that payment of the penalty would cause undue hardship to the debtor. 8. The Act is amended by adding the following before section 90.2: Administration and Enforcement 9. Subsection 96(1) of the Act is replaced by the following: Application for statement of earnings and request for reconsideration 96. (1) Subject to the provisions of any agreement entered into under section 105, every contributor may require the Minister, by application made in the prescribed manner, to furnish or make available to the contributor a statement of the unadjusted pensionable earnings shown to the contributor’s account in the Record of Earnings, and if a contributor is not satisfied with the statement, they may request that it be reconsidered by the Minister. 10. (1) Subsection 101(1) of the Act is amended by striking out the word “and” at the end of paragraph (d.1) and by adding the following after paragraph (d.1): 2006-2007 Régime de pensions du Canad (d.2) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Part, including (i) the technology or process, and the format, that must be used, (ii) the place where an electronic document is to be made or sent, (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received, (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and (v) the circumstances in which an electronic document must be signed with an electronic signature or a secure electronic signature; (d.3) providing that a requirement under a provision of this Part to provide a document or information by non-electronic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with; and (2) Section 101 of the Act is amended by adding the following after subsection (1): Personal Information Protection and Electronic Documents Act (2) In paragraphs (1)(d.2) and (d.3), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. 2005, c. 35, s. 46 11. Subsection 104.01(3) of the Act is replaced by the following: Availability of information to the individual and other persons (3) Subject to the exemptions and exclusions provided in the Privacy Act, if information is relevant to the making of an application or the receipt of a benefit by, or the division of C. 11 Canada Pension Plan unadjusted pensionable earnings or assignment of a retirement pension that affects, an individual under this Act, it may be made available to (a) the individual; (b) the individual’s representative; (c) a member of Parliament inquiring on behalf of the individual; or (d) on the conditions that may be prescribed, any other individual authorized in writing by the individual. 1997, c. 40, s. 94(5) 12. (1) The portion of paragraph 113.1(4)(c) of the Act before subparagraph (i) is replaced by the following: (c) the financing objective of having a contribution rate, without taking into account the changes referred to in paragraph (d) for which the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) exceeds zero, that is no lower than the rate 1997, c. 40, s. 94(8) (2) Subsections 113.1(11) to (11.04) of the Act are repealed. 1997, c. 40, s. 94(8) (3) The portion of subsection 113.1(11.05) of the Act before paragraph (a) is replaced by the following: Insufficient rates (11.05) Subject to subsections (11.12) and (11.13), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), the contribution rate for selfemployed persons for the years in that threeyear period less the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) is less than the contribution rate most recently calculated under subparagraph 115(1.1)(c)(i) for self-employed persons for those years, 1997, c. 40, s. 94(8) (4) Subsections 113.1(11.06) to (11.11) of the Act are replaced by the following: Interpretation (11.06) In the calculations under subsections (11.07) to (11.11), 2006-2007 Régime de pensions du Canad A is one half of the contribution rate most recently calculated under subparagraph 115(1.1)(c)(i) for self-employed persons for the years in the three-year period referred to in subsection (11.05); B is the contribution rate for employees and employers at October 1 of the third year of the last three-year period for which contribution rates were set for employees and employers, by an Act of Parliament or by a regulation made under subsection (6), on the recommendation of ministers under subsection (1); C is one half of the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) for self-employed persons for the years in the three-year period referred to in subsection (11.05); and D is the difference between B and C. Determination of rate — 1st case (11.07) If neither A nor D is greater than 4.95% and A is greater than D, the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is A plus C. Determination of rate — 2nd case (11.08) If A is greater than 4.95%, D is less than or equal to 4.95% and the percentage determined by the formula 1/2(A - D) is less than or equal to 0.1%, then the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is the rate determined by the formula 4.95% + 1/2(A - 4.95%) + C Determination of rate — 3rd case (11.09) If A is greater than 4.95%, D is less than or equal to 4.95% and the percentage determined by the formula 1/2(A - D) is greater than 0.1%, then the contribution rate for employees and employers is C. 11 Canada Pension Plan (a) for the first year after the October 1 date referred to in subsection (11.05), the rate determined by the formula 4.95% + 1/6(A - 4.95%) + C (b) for the next year, the rate determined by the formula 4.95% + 1/3(A - 4.95%) + C and (c) for each subsequent year, the rate determined by the formula 4.95% + 1/2(A - 4.95%) + C Determination of rate — 4th case (11.1) If subsections (11.07) to (11.09) do not apply and the percentage determined by the formula 1/2(A - D) is less than or equal to 0.1%, then the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is the rate determined by the formula D + 1/2(A - D) + C Determination of rate — 5th case (11.11) If subsections (11.07) to (11.1) do not apply, then the contribution rate for employees and employers is (a) for the first year after the October 1 date referred to in subsection (11.05), the rate determined by the formula D + 1/6(A - D) + C (b) for the next year, the rate determined by the formula D + 1/3(A - D) + C and (c) for each subsequent year, the rate determined by the formula D + 1/2(A - D) + C 1997, c. 40, s. 94(8) (5) Subsection 113.1(11.14) of the Act is replaced by the following: 2006-2007 Régime de pensions du Canad Adjustment (11.14) If a contribution rate determined under any of subsections (11.07) to (11.11) is not a multiple of 0.005%, the contribution rate is to be rounded to the nearest multiple of 0.005%. R.S., c. 30 (2nd Supp.), s. 56 (6) Subsection 113.1(12) of the Act is replaced by the following: Application of subsection 114(2) (12) For greater certainty, subsection 114(2) does not apply to any amendments to the schedule made under subsection (6) or subsections (11.05) to (11.11). 1997, c. 40, s. 95(4) 13. Subsection 114(4.1) of the Act is replaced by the following: Exception (4.1) Subsections (2) and (4) do not apply in respect of changes under any of subsections 113.1(11.05) to (11.11) to benefits or contribution rates. 1997, c. 40, s. 96(1) 14. Paragraph 115(1.1)(c) of the Act is replaced by the following: (c) specify a contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining (i) a contribution rate, calculated in the prescribed manner, without taking into account the changes referred to in paragraph 113.1(4)(d) for which the contribution rate most recently calculated under subparagraph (ii) exceeds zero, and (ii) a contribution rate calculated in the prescribed manner in respect of the changes referred to in paragraph 113.1(4)(d); (c.1) specify the contribution rates referred to in subparagraphs (c)(i) and (ii); and R.S., c. O-9 OLD AGE SECURITY ACT 15. The Old Age Security Act is amended by adding the following after section 5: C. 11 Withdrawal of application 5.1 (1) An applicant may withdraw an application for a pension by giving a written notice of their withdrawal to the Minister at any time before payment of the pension commences. Effect of withdrawal (2) If an application for a pension is withdrawn under subsection (1), the withdrawn application shall not after that time be used for the purpose of determining the applicant’s eligibility for a pension. 1995, c. 33, s. 5; 1998, c. 21, par. 119(1)(a) 16. (1) Subsection 11(4) of the Act is replaced by the following: Waiver of application (4) The Minister may waive the requirement referred to in subsection (2) for an application for payment of a supplement for any month or months in a payment period if an application for payment of a supplement has been made in respect of any payment period before that payment period. 2001, c. 27, s. 264 (2) Subparagraph 11(7)(e)(ii) of the Act is replaced by the following: Canada Pension Plan (ii) a person in respect of whom an undertaking by a sponsor is in effect as provided under the Immigration and Refugee Protection Act. 17. (1) Section 14 of the Act is amended by adding the following after subsection (1): Waiver — statement of income (1.01) The Minister may waive the requirement to make a statement of income under subsection (1) if that information has been made available to the Minister under this Act and, in that case, the statement is deemed to have been made for the purposes of this Part. 1998, c. 21, s. 110(2); 2000, c. 12, par. 207(1)(d) (2) Subsections 14(2) to (6) of the Act are replaced by the following: Additional statement if retirement in current payment period (2) If in a current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, that person may, 2006-2007 Régime de pensions du Canad not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year in which the person ceased to hold that office or employment or ceased to carry on that business, which income shall be calculated as the total of (a) any pension income received by the person in that part of that calendar year that is after the month in which the person ceases to hold that office or employment or to carry on that business, divided by the number of months in that part of that calendar year and multiplied by 12, (b) the income from any office or employment or any business for that calendar year other than income from the office, employment or business that has ceased, and (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if retirement in the last month of the calendar year that is in the current payment period (3) Despite subsection (2), if in the last month of a calendar year that ends in the current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, the person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year that is immediately after the month in which the person ceased to hold that office or employment or ceased to carry on that business, which income shall be calculated as the total of C. 11 Canada Pension Plan (a) any pension income received by the person in that calendar year, (b) the income from any office or employment or any business for that calendar year other than income from the office, employment or business that has ceased, and (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if loss of pension income in current payment period (4) If in a current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), suffers a loss of income due to termination of or reduction in pension income, the person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year in which the loss is suffered, which income shall be calculated as the total of (a) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss is suffered, divided by the number of months in that part of that calendar year and multiplied by 12, (b) the income from any office or employment or any business for that calendar year, and (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. 2006-2007 Additional statement if retirement before current payment period Régime de pensions du Canad (5) If, in the circumstances described in paragraphs (a) and (b), a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, the person may, not later than the end of the payment period that is immediately after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, (a) if the person ceases to hold that office or employment or to carry on that business in the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that calendar year, (ii) the income from any office or employment or any business for that calendar year, other than income from the office, employment or business that has ceased, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income; and (b) if the person ceases to hold that office or employment or to carry on that business in a month that is before the payment period and after the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that part of that calendar year that is after the month in which the person ceases to hold that office or employment or C. 11 Canada Pension Plan to carry on that business, divided by the number of months in that part of that calendar year and multiplied by 12, (ii) the income from any office or employment or any business for that calendar year, other than income from the office, employment or business that has ceased, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if loss of pension income before current payment period (6) If, in the circumstances described in paragraph (a) or (b), a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), suffers a loss of income due to a termination of or reduction in pension income, the person may, not later than the end of the payment period that is immediately after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, (a) if the loss is suffered in the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that calendar year, (ii) the income from any office or employment or any business for that calendar year, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income; and (b) if the loss is suffered in a month that is before the payment period and after the last calendar year ending before the payment period, file a statement of the person’s 2006-2007 Régime de pensions du Canad estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss is suffered, divided by the number of months in that part of that calendar year and multiplied by 12, (ii) the income from any office or employment or any business for that calendar year, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. 1998, c. 21, s. 111; 2000, c. 12, par. 207(1)(e) 18. (1) Subsection 15(1.1) of the Act is replaced by the following: Statement if application waived (1.1) If the requirement for an application for payment of a supplement for any month has been waived under subsection 11(4) for a person who did not have a spouse or common-law partner immediately before the last payment period in respect of which a supplement was paid or, if no supplement was ever paid to the person, immediately before the last payment period in respect of which an application for payment of a supplement was received but who has a spouse or common-law partner immediately before the current payment period, the person shall notify the Minister without delay of the date of that change, the name and address of the spouse or common-law partner and whether, to the person’s knowledge, the spouse or common-law partner is a pensioner. (2) Section 15 of the Act is amended by adding the following after subsection (2): Waiver — subsection (1) (2.1) The Minister may waive the requirement to submit the information described in subsection (1) if that information has been submitted to the Minister in a joint application referred to in subsection 19(4). C. 11 Waiver — paragraph (2)(a) (2.2) The Minister may waive the requirement to file a statement under paragraph (2)(a) if the information has been made available to the Minister under this Act, and, if that is the case, the statement is deemed to have been filed for the purposes of this Part. 1995, c. 33, s. 10; 1998, c. 21, par. 119(1)(d); 2000, c. 12, par. 207(1)(f) 19. (1) Subsection 19(4.1) of the Act is replaced by the following: Waiver of application (4.1) The Minister may waive the requirement referred to in subsection (4) for an application for payment of an allowance for any month or months in a payment period if an application for payment of an allowance has been made in respect of any payment period before that payment period. Canada Pension Plan (2) Paragraph 19(6)(a) of the Act is replaced by the following: (a) any month that is more than 11 months before the month in which the application is received or is deemed to have been made or in which the requirement for an application has been waived, as the case may be; 2001, c. 27, s. 265 (3) Subparagraph 19(6)(d)(ii) of the Act is replaced by the following: (ii) a person in respect of whom an undertaking by a sponsor is in effect as provided under the Immigration and Refugee Protection Act; or 1995, c. 33, s. 11(2); 1998, c. 21, par. 119(1)(g); 2000, c. 12, par. 208(1)(c), 209(k)(E) 20. (1) Subsection 21(5.1) of the Act is replaced by the following: Waiver of requirement for application (5.1) The Minister may waive the requirement referred to in subsection (4) for an application for payment of an allowance for any month or months in a payment period if an application for payment of an allowance has been made in respect of any payment period before that payment period. 2006-2007 R.S., c. 34 (1st Supp.), s. 4 Régime de pensions du Canad (2) Paragraph 21(9)(a) of the Act is replaced by the following: (a) any month more than 11 months before the month in which the application is received or is deemed to have been made or in which the requirement for an application has been waived, as the case may be; 2001, c. 27, s. 266 (3) Subparagraph 21(9)(c)(ii) of the Act is replaced by the following: (ii) a person in respect of whom an undertaking by a sponsor is in effect as provided under the Immigration and Refugee Protection Act; or 21. Section 26 of the Act is amended by adding the following after subsection (1): Information previously submitted (1.1) For greater certainty, the Minister may waive the requirements of subsections 14(1) and 15(1) and (2) in respect of an application for an allowance under this Part if the information required under those subsections has already been submitted to or filed with the Minister in respect of an application for a supplement under Part II. 22. The Act is amended by adding the following after the heading “GENERAL” of Part IV: EFFECT OF WAIVER Deeming provision 26.1 When the requirement for an application for a benefit is waived by the Minister under this Act, the application is deemed to have been made by the applicant on the day on which the requirement is waived and, for greater certainty, the applicant shall not be paid that benefit for any month that is more than 11 months before the month in which the application is deemed to have been made. 23. Section 29 of the Act is replaced by the following: Application for pension by estate, etc. 29. (1) Despite anything in this Act, an application for a pension that would have been payable to a deceased person who, before their death, would have been entitled, on approval of an application, to payment of that pension under C. 11 Canada Pension Plan this Act may be made within one year after the person’s death by the estate or succession, by the liquidator, executor or administrator of the estate or succession or heir of that person or by any person that may be prescribed by regulation. Pension payable to estate or other persons (2) If an application is made under subsection (1), the pension that would have been payable to a deceased person referred to in that subsection shall be paid to the estate or succession or to any person that may be prescribed by regulation. Application deemed to have been received on date of death (3) Any application made under subsection (1) is deemed to have been received on the date of the death of the person who, before their death, would have been entitled to payment of the pension. 2000, c. 12, s. 202 24. (1) Subsection 30(1) of the Act is replaced by the following: Retroactive application by survivor 30. (1) Despite paragraph 19(6)(b), if a person dies and the person’s survivor would have been entitled to an allowance under section 19 had the survivor and the deceased person made a joint application for it before the death of the deceased person, the survivor may make application for an allowance under section 19 within one year after the death of the deceased person. R.S., c. 34 (1st Supp.), s. 8(2); 2000, c. 12, par. 209(q)(E) (2) Subsection 30(3) of the Act is repealed. 2005, c. 35, s. 56 25. Subsection 33.01(3) of the Act is replaced by the following: Availability of information to the individual or other persons (3) Subject to the exemptions and exclusions provided in the Privacy Act, if information is relevant to the making of an application or the receipt of a benefit by the individual under this Act, it may be made available to (a) the individual; (b) the individual’s representative; (c) a member of Parliament inquiring on behalf of the individual; or 2006-2007 Régime de pensions du Canad (d) on the conditions that may be prescribed, any other individual authorized in writing by the individual. 26. (1) Paragraph 34(o) of the Act is replaced by the following: (o) providing for the making of any application or statement, or the doing of any other act or thing required or permitted by this Act, by any person or agency, and for the payment of a benefit to any person or agency, on behalf of any other person or beneficiary if it is established in any manner and by any evidence that may be prescribed by the regulations that the other person or beneficiary is, by reason of infirmity, illness, insanity or other cause, incapable of managing their own affairs, and prescribing the manner in which any benefit authorized to be paid to the person or agency shall be administered and expended for the benefit of the other person or beneficiary and accounted for; (2) Section 34 of the Act is amended by striking out the word “and” at the end of paragraph (p), by adding the word “and” at the end of paragraph (q) and by adding the following after paragraph (q): (r) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Act, including (i) the technology or process, and the format, that must be used, (ii) the place where an electronic document is to be made or sent, (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received, (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and C. 11 Canada Pension Plan (v) the circumstances in which an electronic document must be signed with an electronic signature or a secure electronic signature; and (s) providing that a requirement under a provision of this Act to provide a document or information by non-electronic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with. 27. The Act is amended by adding the following after section 34: Personal Information Protection and Electronic Documents Act Regulations — payment of interest 34.1 In paragraphs 34(r) and (s), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. 34.2 The Governor in Council may make regulations respecting the payment of interest on amounts owing to Her Majesty under this Act, including regulations prescribing (a) the circumstances in which interest is payable; (b) rates of interest or the manner of calculating rates of interest; (c) terms and conditions for the imposition and payment of interest; and (d) terms and conditions under which the Minister may waive, reduce or remit the interest payable. 1997, c. 40, s. 105 28. (1) Subsection 37(2) of the Act is replaced by the following: Recovery of amount of payment (2) If a person has received or obtained a benefit payment to which the person is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person is entitled, the amount of the benefit payment or the excess amount, as the case may 2006-2007 Régime de pensions du Canad be, constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. Recovery of amount of interest (2.01) Interest payable under this Act constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. (2) Section 37 of the Act is amended by adding the following after subsection (2.01): Recovery of amount of penalty (2.02) The amount of a penalty imposed on a person under section 44.1 constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. 1997, c. 40, s. 105 (3) Subsection 37(2.1) of the French version of the Act is replaced by the following: Déduction (2.1) Le montant de la créance peut en outre être déduit, de la façon réglementaire, des sommes à payer au débiteur ou à sa succession en vertu de la présente loi ou de toute autre loi dont l’application incombe au ministre ou au titre de tout programme dont la gestion lui est confiée. 1997, c. 40, s. 105 (4) Subsection 37(2.7) of the Act is replaced by the following: Garnishment (2.7) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to Her Majesty under this Act, the Minister may, by a notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability. (5) Section 37 of the Act is amended by adding the following after subsection (4): C. 11 Exclusion of Financial Administration Act (5) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Act. Canada Pension Plan 29. Subsection 39(2) of the Act is replaced by the following: Administration of provincial benefits (1.1) The agreement may provide for the Minister to administer the provincial benefits on behalf of the government of that province in accordance with the terms and conditions set out in the agreement. Province to reimburse expenses (2) It shall be a term of the agreement that the government of the province that is a party to the agreement shall reimburse the Minister for the expenses incurred by the Minister under that agreement. 30. Subsection 42(1) of the Act is replaced by the following: Tabling order 42. (1) An order under section 41 shall be laid before each House of Parliament within the first 15 days on which that House is sitting after the order is made. 31. The heading before section 44 of the Act is replaced by the following: OFFENCES 32. The Act is amended by adding the following after section 44: ADMINISTRATIVE MONETARY PENALTIES 33. (1) The portion of subsection 44.1(1) of the French version of the Act before paragraph (a), as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Pénalités 44.1 (1) S’il prend connaissance de faits qui, à son avis, démontrent qu’une personne a commis l’un des actes ou omissions ci-après, le ministre peut lui infliger une pénalité pour chacun de ces actes ou omissions : (2) Paragraph 44.1(1)(d) of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: 2006-2007 Régime de pensions du Canad (d) received or obtained by cheque or otherwise a benefit payment to which the person knew that they were not entitled, or a benefit payment that the person knew was in excess of the amount of the benefit payment to which they were entitled, and did not return the cheque or the amount of the benefit payment, or the excess amount, as the case may be, without delay; or (3) Paragraph 44.1(1)(e) of the French version of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: e) participer, consentir ou acquiescer à la commission de tout acte ou omission visé à l’un ou l’autre des alinéas a) à d). (4) Section 44.1 of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is amended by adding the following after subsection (1): Purpose of penalty (1.1) The purpose of the penalty is to promote compliance with this Act and not to punish. (5) Subsection 44.1(4) of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Rescission, etc., of penalty (4) The Minister may rescind the imposition of a penalty under subsection (1), or reduce the penalty, (a) on the presentation of new facts; (b) on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact; (c) on being satisfied that the penalty cannot be collected within the reasonably foreseeable future; or (d) on being satisfied that payment of the penalty would cause undue hardship to the debtor. 34. The Act is amended by adding the following before section 44.2: ADMINISTRATION AND ENFORCEMENT C. 11 Canada Pension Plan 35. The Act is amended by adding the following after section 46: Electronic means 46.1 The Minister may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act. TRANSITIONAL PROVISIONS Application of subparagraph 44(2)(a)(i.1) 36. (1) Subparagraph 44(2)(a)(i.1) of the Canada Pension Plan, as enacted by section 2, applies in respect of an application for a disability pension made in or after the month in which that section comes into force. Limitation (2) However, in the case of a contributor referred to in subparagraph 44(1)(b)(ii) of the Canada Pension Plan, subparagraph 44(2)(a)(i.1) of that Act, as enacted by section 2, applies only if the contributor is deemed to have become disabled no earlier than 15 months before the month in which that section comes into force. Continued application 37. Subparagraphs 11(7)(e)(ii), 19(6)(d)(ii) and 21(9)(c)(ii) of the Old Age Security Act, as they read immediately before the day on which this Act receives royal assent, continue to apply to any person who, before that day, is a beneficiary of a supplement or an allowance under that Act or has made an application for payment of a supplement or an allowance under that Act. Continued application 38. Section 29 of the Old Age Security Act, as it read immediately before the day on which this Act receives royal assent, continues to apply in respect of any application made under that section before that day. COMING INTO FORCE Subsection 114(2) of the Canada Pension Plan 39. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 2, 12 to 14 and 36 of this Act. 2006-2007 Régime de pensions du Canad Subsection 114(4) of the Canada Pension Plan (2) Sections 2, 12 to 14 and 36 of this Act come into force in accordance with subsection 114(4) of the Canada Pension Plan. Order in Council (3) Subsection 4(2), sections 6 and 7, subsections 17(2) and 28(2) and sections 32 and 33 of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 13 An Act to amend the Criminal Code in order to implement the United Nations Convention against Corruption ASSENTED TO 31st MAY, 2007 BILL C-48 SUMMARY This enactment makes technical amendments to the corruption and offencerelated provisions of the Criminal Code to implement the United Nations Convention against Corruption. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 13 An Act to amend the Criminal Code in order to implement the United Nations Convention against Corruption [Assented to 31st May, 2007] R.S., c. C-46 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2001, c. 32, s. 1(2) 1. The definition “offence-related property” in section 2 of the Criminal Code is replaced by the following: “offence-related property” « bien infractionnel » “offence-related property” means any property, within or outside Canada, (a) by means or in respect of which an indictable offence under this Act or the Corruption of Foreign Public Officials Act is committed, (b) that is used in any manner in connection with the commission of such an offence, or (c) that is intended to be used for committing such an offence; 2. The definition “official” in section 118 of the Act is replaced by the following: “official” « fonctionnaire » “official” means a person who (a) holds an office, or (b) is appointed or elected to discharge a public duty; 3. Subsection 119(1) of the Act is replaced by the following: Bribery of judicial officers, etc. 119. (1) Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding fourteen years who C. 13 Criminal Code (United Nations (a) being the holder of a judicial office, or being a member of Parliament or of the legislature of a province, directly or indirectly, corruptly accepts, obtains, agrees to accept or attempts to obtain, for themselves or another person, any money, valuable consideration, office, place or employment in respect of anything done or omitted or to be done or omitted by them in their official capacity, or (b) directly or indirectly, corruptly gives or offers to a person mentioned in paragraph (a), or to anyone for the benefit of that person, any money, valuable consideration, office, place or employment in respect of anything done or omitted or to be done or omitted by that person in their official capacity. 4. Section 120 of the Act is replaced by the following: Bribery of officers 120. Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding fourteen years who (a) being a justice, police commissioner, peace officer, public officer or officer of a juvenile court, or being employed in the administration of criminal law, directly or indirectly, corruptly accepts, obtains, agrees to accept or attempts to obtain, for themselves or another person, any money, valuable consideration, office, place or employment with intent (i) to interfere with the administration of justice, (ii) to procure or facilitate the commission of an offence, or (iii) to protect from detection or punishment a person who has committed or who intends to commit an offence; or (b) directly or indirectly, corruptly gives or offers to a person mentioned in paragraph (a), or to anyone for the benefit of that person, any money, valuable consideration, office, place or employment with intent that the person should do anything mentioned in subparagraph (a)(i), (ii) or (iii). 2006-2007 Code criminel (Convention des Na 5. Paragraphs 121(1)(b) to (f) of the Act are replaced by the following: (b) having dealings of any kind with the government, directly or indirectly pays a commission or reward to or confers an advantage or benefit of any kind on an employee or official of the government with which the dealings take place, or to any member of the employee’s or official’s family, or to anyone for the benefit of the employee or official, with respect to those dealings, unless the person has the consent in writing of the head of the branch of government with which the dealings take place; (c) being an official or employee of the government, directly or indirectly demands, accepts or offers or agrees to accept from a person who has dealings with the government a commission, reward, advantage or benefit of any kind for themselves or another person, unless they have the consent in writing of the head of the branch of government that employs them or of which they are an official; (d) having or pretending to have influence with the government or with a minister of the government or an official, directly or indirectly demands, accepts or offers or agrees to accept, for themselves or another person, a reward, advantage or benefit of any kind as consideration for cooperation, assistance, exercise of influence or an act or omission in connection with (i) anything mentioned in subparagraph (a)(iii) or (iv), or (ii) the appointment of any person, including themselves, to an office; (e) directly or indirectly gives or offers, or agrees to give or offer, to a minister of the government or an official, or to anyone for the benefit of a minister or an official, a reward, advantage or benefit of any kind as C. 13 Criminal Code (United Nations consideration for cooperation, assistance, exercise of influence, or an act or omission, by that minister or official, in connection with (i) anything mentioned in subparagraph (a)(iii) or (iv), or (ii) the appointment of any person, including themselves, to an office; or (f) having made a tender to obtain a contract with the government, (i) directly or indirectly gives or offers, or agrees to give or offer, to another person who has made a tender, to a member of that person’s family or to another person for the benefit of that person, a reward, advantage or benefit of any kind as consideration for the withdrawal of the tender of that person, or (ii) directly or indirectly demands, accepts or offers or agrees to accept from another person who has made a tender a reward, advantage or benefit of any kind for themselves or another person as consideration for the withdrawal of their own tender. R.S., c. 27 (1st Supp.), s. 16 6. Subsections 123(1) and (2) of the Act are replaced by the following: Municipal corruption 123. (1) Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years who directly or indirectly gives, offers or agrees to give or offer to a municipal official or to anyone for the benefit of a municipal official — or, being a municipal official, directly or indirectly demands, accepts or offers or agrees to accept from any person for themselves or another person — a loan, reward, advantage or benefit of any kind as consideration for the official (a) to abstain from voting at a meeting of the municipal council or a committee of the council; 2006-2007 Code criminel (Convention des Na (b) to vote in favour of or against a measure, motion or resolution; (c) to aid in procuring or preventing the adoption of a measure, motion or resolution; or (d) to perform or fail to perform an official act. Influencing municipal official (2) Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years who influences or attempts to influence a municipal official to do anything mentioned in paragraphs (1)(a) to (d) by (a) suppression of the truth, in the case of a person who is under a duty to disclose the truth; (b) threats or deceit; or (c) any unlawful means. 7. Paragraph 426(1)(a) of the Act is replaced by the following: (a) directly or indirectly, corruptly gives, offers or agrees to give or offer to an agent or to anyone for the benefit of the agent — or, being an agent, directly or indirectly, corruptly demands, accepts or offers or agrees to accept from any person, for themselves or another person — any reward, advantage or benefit of any kind as consideration for doing or not doing, or for having done or not done, any act relating to the affairs or business of the agent’s principal, or for showing or not showing favour or disfavour to any person with relation to the affairs or business of the agent’s principal; or 2001, c. 32, s. 30(1) 8. (1) The portion of subsection 490.1(1) of the Act before paragraph (a) is replaced by the following: Order of forfeiture of property on conviction 490.1 (1) Subject to sections 490.3 to 490.41, if a person is convicted of an indictable offence under this Act or the Corruption of Foreign Public Officials Act and, on application of the Attorney General, the court is satisfied, on a balance of probabilities, that any property C. 13 Criminal Code (United Nations is offence-related property and that the offence was committed in relation to that property, the court shall 2001, c. 32, s. 30(2) (2) Subsection 490.1(2) of the Act is replaced by the following: Property related to other offences (2) Subject to sections 490.3 to 490.41, if the evidence does not establish to the satisfaction of the court that the indictable offence under this Act or the Corruption of Foreign Public Officials Act of which a person has been convicted was committed in relation to property in respect of which an order of forfeiture would otherwise be made under subsection (1) but the court is satisfied, beyond a reasonable doubt, that the property is offence-related property, the court may make an order of forfeiture under subsection (1) in relation to that property. 2001, c. 32, s. 30(2) (3) Subsection 490.1(3) of the Act is replaced by the following: Appeal (3) A person who has been convicted of an indictable offence under this Act or the Corruption of Foreign Public Officials Act, or the Attorney General, may appeal to the court of appeal from an order or a failure to make an order under subsection (1) as if the appeal were an appeal against the sentence imposed on the person in respect of the offence. 2001, c. 32, s. 31(1) 9. Subsections 490.2(1) and (2) of the Act are replaced by the following: Application for in rem forfeiture 490.2 (1) If an information has been laid in respect of an indictable offence under this Act or the Corruption of Foreign Public Officials Act, the Attorney General may make an application to a judge for an order of forfeiture under subsection (2). Order of forfeiture of property (2) Subject to sections 490.3 to 490.41, the judge to whom an application is made under subsection (1) shall order that the property that is subject to the application be forfeited and disposed of in accordance with subsection (4) if the judge is satisfied 2006-2007 Code criminel (Convention des Na (a) beyond a reasonable doubt that the property is offence-related property; (b) that proceedings in respect of an indictable offence under this Act or the Corruption of Foreign Public Officials Act in relation to the property were commenced; and (c) that the accused charged with the offence has died or absconded. 1997, c. 23, s. 15; 2001, c. 32, s. 32(2) 10. Subsection 490.4(3) of the Act is replaced by the following: Order of restoration of property (3) A court may order that all or part of the property that would otherwise be forfeited under subsection 490.1(1) or 490.2(2) be returned to a person — other than a person who was charged with an indictable offence under this Act or the Corruption of Foreign Public Officials Act or a person who acquired title to or a right of possession of the property from such a person under circumstances that give rise to a reasonable inference that the title or right was transferred for the purpose of avoiding the forfeiture of the property — if the court is satisfied that the person is the lawful owner or is lawfully entitled to possession of all or part of that property, and that the person appears innocent of any complicity in, or collusion in relation to, the offence. 2001, c. 32, s. 33 11. Subsection 490.41(1) of the Act is replaced by the following: Notice 490.41 (1) If all or part of offence-related property that would otherwise be forfeited under subsection 490.1(1) or 490.2(2) is a dwellinghouse, before making an order of forfeiture, a court shall require that notice in accordance with subsection (2) be given to, and may hear, any person who resides in the dwelling-house and is a member of the immediate family of the person charged with or convicted of the indictable offence under this Act or the Corruption of Foreign Public Officials Act in relation to which the property would be forfeited. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 1 An Act respecting international bridges and tunnels and making a consequential amendment to another Act ASSENTED TO 1st FEBRUARY, 2007 BILL C-3 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act respecting international bridges and tunnels and making a consequential amendment to another Act”. SUMMARY This enactment establishes an approval mechanism for the construction, alteration and acquisition of international bridges and tunnels and provides for the regulation of their operation, maintenance and security. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT RESPECTING INTERNATIONAL BRIDGES AND TUNNELS AND MAKING A CONSEQUENTIAL AMENDMENT TO ANOTHER ACT SHORT TITLE 1. International Bridges and Tunnels Act INTERPRETATION AND APPLICATION 2. Definitions 3. Binding on Her Majesty 4. Relationship with certain Acts 5. Works for general advantage of Canada CONSTRUCTION AND ALTERATION 6. Prohibition 7. Application for approval 8. Approval of Governor in Council 9. Ministerial order 10. Offence 11. Court may order forfeiture 12. Expropriation 13. Ministerial order 14. Regulations 15. Regulations 15.1 Ministerial order 16. Regulations 17. Emergency directions 18. Authorized officer may make emergency direction 19. Duration 20. Relationship with regulations 21. Not statutory instrument MAINTENANCE AND REPAIR OPERATION AND USE SECURITY AND SAFETY i 22. Offence CHANGE OF OWNERSHIP, OPERATOR OR CONTROL 23. Prohibition 24. Application for approval 25. Approval of Governor in Council 26. Ministerial order 27. Offence 28. Regulations INCORPORATION BY LETTERS PATENT 29. Letters patent 30. Deemed knowledge of letters patent 31. Regulations 32. Capacity and powers 33. Tolls 34. Power to manage 35. Duty of care of directors and officers 36. Power to make by-laws SHARES OF A CORPORATION 37. Financial Administration Act 38. False statements or information 39. Powers 40. Duty to assist Minister 41. Injunction 42. Offence ENFORCEMENT ADMINISTRATIVE MONETARY PENALTIES 43. Regulations 44. Notices of violation 45. Violation 46. Issuance of notice of violation 47. Definition of “Tribunal” 48. Option 49. Payment of specified amount precludes further proceedings 50. Request for review of determination 51. Certificate ii 52. Determination by Tribunal member 53. Right of appeal 54. Registration of certificate 55. Time limit for proceedings FIVE-YEAR REVIEW 56. Review of Act in five years TRANSITIONAL PROVISIONS 57. Proposals for construction or alteration 58. Existing operators of international bridges and tunnels CONSEQUENTIAL AMENDMENT 59. Transportation Appeal Tribunal of Canada Act 60. Order in council COMING INTO FORCE SCHEDULE 55 ELIZABETH II —————— CHAPTER 1 An Act respecting international bridges and tunnels and making a consequential amendment to another Act [Assented to 1st February, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the International Bridges and Tunnels Act. INTERPRETATION AND APPLICATION Definitions “alteration” « modification » “debt obligation” « titre de créance » “entity” « entité » “international bridge or tunnel” « pont ou tunnel international » “Minister” « ministre » “security” « titre » 2. The following definitions apply in this Act. “alteration” includes a conversion, an extension and a change in the use of an international bridge or tunnel but does not include its operation, maintenance and repair. “debt obligation” means a bond, debenture, note or other evidence of indebtedness or guarantee of an entity, whether secured or unsecured. “entity” means a corporation, partnership, trust, joint venture or unincorporated association or organization. “international bridge or tunnel” means a bridge or tunnel, or any part of it, that connects any place in Canada to any place outside Canada, and includes the approaches and facilities related to the bridge or tunnel. “Minister” means the Minister of Transport. “security” means C. 1 International Brid (a) in relation to a corporation, a share of any class of shares of the corporation or a debt obligation of the corporation, and includes a warrant of the corporation, but does not include a deposit with a financial institution or any instrument evidencing such a deposit; and (b) in relation to any other entity, any ownership interest in or debt obligation of the entity. Binding on Her Majesty 3. This Act is binding on Her Majesty in right of Canada or a province. Relationship with certain Acts 4. (1) In the event of any inconsistency or conflict between this Act or any regulations made under it and any Act listed in the schedule, this Act and the regulations prevail to the extent of the inconsistency or conflict. Amendment of schedule (2) The Governor in Council may, on the recommendation of the Minister, make regulations amending the schedule by adding, changing or deleting the name of an Act. Application of other Acts (3) Subject to subsection (4), nothing in this Act or any regulations made under it affects the application of any other Act of Parliament, including any requirement for a person to obtain a licence, permit or other authorization in respect of an international bridge or tunnel. Navigable Waters Protection Act Works for general advantage of Canada (4) Despite section 13 of the Navigable Waters Protection Act, approval may be given under Part 1 of that Act to the site or plans of an international bridge over the St. Lawrence River. 5. International bridges and tunnels are declared to be works for the general advantage of Canada. CONSTRUCTION AND ALTERATION Prohibition 6. No person shall construct or alter an international bridge or tunnel without the approval of the Governor in Council. Application for approval 7. (1) Approval for the construction or alteration of an international bridge or tunnel may only be obtained by submitting an application to the Minister for approval by the Governor in Council. 2006-2007 Ponts et tunnels Consultation (1.1) The Minister may, if in the opinion of the Minister it is necessary having regard to all the circumstances, consult with the other levels of government that have jurisdiction over the place of the proposed construction or alteration and with any person who, in the opinion of the Minister, has a direct interest in the matter. Documents or information (2) A person who submits an application shall provide the Minister with any document or information that is required under guidelines issued by the Minister and any other document or information that is required by the Minister after receipt of the application. Not statutory instruments (3) The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act. Approval of Governor in Council 8. (1) The Governor in Council may, on the recommendation of the Minister, approve the proposed construction or alteration of an international bridge or tunnel subject to any terms and conditions that the Governor in Council considers appropriate. Variation of terms and conditions (2) The Governor in Council may vary or rescind the terms and conditions or impose new terms and conditions. Compliance with terms and conditions (3) Every person who is subject to terms and conditions shall comply with them. Ministerial order 9. (1) If an international bridge or tunnel is constructed or altered without the approval of the Governor in Council, the Minister may (a) order any person to refrain from proceeding with the construction or alteration of the bridge or tunnel; (b) order the owner of the bridge or tunnel to remove or alter the bridge or tunnel; and (c) if the owner of the bridge or tunnel fails to comply with an order made under paragraph (b), remove and destroy the bridge or tunnel and sell, give away or otherwise dispose of the materials contained in the bridge or tunnel. C. 1 Costs of removal, destruction or disposal (2) The costs of and incidental to anything done by the Minister under paragraph (1)(c) are — after deducting any sum that may be realized by sale or otherwise — recoverable with costs by Her Majesty in right of Canada from the owner as a debt due to Her Majesty. Offence 10. (1) Every person who contravenes section 6 or subsection 8(3) or fails to comply with an order of the Minister under paragraph 9(1)(a) or (b) is guilty of an offence and is liable International Brid (a) on conviction on indictment, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding two years, or to both; or (b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding six months, or to both. Continuing offence (2) If the offence is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued. Officers, etc., of corporations (3) If the offence is committed by a corporation, any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. Court may order forfeiture 11. (1) If a person is convicted on indictment of an offence referred to in subsection 10(1), the court may, in addition to any other punishment that it may impose, order that the international bridge or tunnel, or anything used in its construction or alteration, (in this section referred to as the “property”) be forfeited and, on the making of the order, the property is forfeited to Her Majesty in right of Canada. Application by person claiming interest (2) If any property is forfeited under subsection (1), any person, other than a person convicted of the offence that resulted in the forfeiture, who claims a right or interest in the property, may, within 30 days after the forfeiture, apply by notice in writing to a judge of 2006-2007 Ponts et tunnels the superior court of the province where the property is situated for an order under subsection (5). Date of hearing (3) A judge to whom the application is made shall fix a day not less than 30 days after the date of filing of the application for the hearing of the application. Notice (4) An applicant shall serve on the Minister a notice of the application and the day fixed for the hearing of the application at least 15 days before the day fixed for the hearing. Order by judge (5) The applicant is entitled to an order by a judge declaring that the applicant’s right or interest is not affected by the forfeiture if, on the hearing of the application, the judge is satisfied that the applicant (a) is innocent of any complicity in the offence that resulted in the forfeiture and of any collusion in relation to the offence with the person convicted of the offence; and (b) exercised reasonable care to prevent the property from being constructed, altered or used, as the case may be, in contravention of this Act. The judge shall include in the order a declaration of the nature and extent of the applicant’s right or interest. Appeal (6) An appeal from an order or refusal to make an order under subsection (5) lies to the court to which an appeal may be taken from an order of the superior court in the province in which the forfeiture occurred, and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court from orders or judgments of a judge of the superior court. Application to Minister (7) The Minister shall, on application made to the Minister by any person who has obtained an order under subsection (5), (a) direct that the property to which the applicant’s right or interest relates be returned to the applicant; or (b) direct that an amount equal to the value of the applicant’s right or interest, as declared in the order, be paid to the applicant. C. 1 Disposal of forfeited property (8) If no application is made under this section for an order in relation to a right or interest in any property or an application is made and the judge or, on appeal, the court refuses to make an order referred to in subsection (5), the property shall be disposed of in any manner that the Minister may direct. Expropriation 12. If a person requires an interest in land, as defined in section 2 of the Expropriation Act, for the purposes of the construction or alteration of an international bridge or tunnel and has unsuccessfully attempted to purchase the interest in land, the person may request the Minister to have the Minister of Public Works and Government Services have the interest in land expropriated by the Crown and section 4.1 of that Act applies to that person, with any modifications that are necessary, as if the person were a railway company. International Brid MAINTENANCE AND REPAIR Ministerial order 13. The Minister may order the owner or operator of an international bridge or tunnel to take any action that the Minister considers appropriate to ensure that it is kept in good condition. Regulations 14. The Governor in Council may, on the recommendation of the Minister, make regulations respecting the maintenance and repair of international bridges and tunnels, including regulations (a) requiring the owner or operator of an international bridge or tunnel to prepare reports for the Minister on the condition of the bridge or tunnel; (b) specifying the information that is to be included in the reports and when they must be prepared and sent to the Minister; (c) requiring any person or class of persons to provide to the Minister any information related to the maintenance and repair of international bridges and tunnels; and (d) providing for the inspection of international bridges and tunnels by the Minister or a person designated by the Minister. 2006-2007 Ponts et tunnels OPERATION AND USE Regulations 15. (1) The Governor in Council may, on the recommendation of the Minister, make regulations respecting the operation and use of international bridges and tunnels, including regulations (a) respecting the use that may be made of international bridges or tunnels by different types of vehicles; (b) respecting any matter relating to complaints in respect of tolls, fees and other charges, including the procedures to be followed and the person or body who is responsible for dealing with complaints; (c) respecting the level of service that is to be provided by owners or operators of international bridges or tunnels; and (d) requiring any person or class of persons to provide to the Minister any information related to the operation and use of international bridges and tunnels. Consultations (2) Before recommending that a regulation be made under subsection (1), the Minister shall, if in the opinion of the Minister it is necessary having regard to all the circumstances, consult with the other levels of government that have jurisdiction over any place where an international bridge or tunnel is situated and with any person who, in the opinion of the Minister, has a direct interest in the matter. Ministerial order 15.1 If the Minister is of the opinion that a change in the tolls, fees or other charges for the use of an international bridge or tunnel is resulting in adverse effects on the flow of traffic, the Minister may, with the approval of the Governor in Council, order the owner or operator of the bridge or tunnel to impose the tolls, fees or other charges that, in the opinion of the Minister, would not result in adverse effects on the flow of traffic. Before ordering an owner or operator to impose specified tolls, fees or C. 1 International Brid other charges, the Minister shall consult with the owner or operator concerning the impact that those tolls, fees or other charges could have on their financial situation. SECURITY AND SAFETY Regulations 16. The Governor in Council may, on the recommendation of the Minister, make regulations respecting the security and safety of international bridges and tunnels, including regulations (a) requiring persons who own or operate international bridges or tunnels to develop and implement security plans and establish security management systems; (b) specifying what must be included in the security plans and requiring persons who own or operate international bridges or tunnels to make the additions, changes or deletions to their security plans that the Minister considers appropriate; and (c) requiring any person or class of persons to provide to the Minister any information related to the security and safety of international bridges and tunnels. Emergency directions 17. If the Minister is of the opinion that there is an immediate threat to the security or safety of any international bridge or tunnel, the Minister may make directions — including directions respecting the evacuation of the bridge or tunnel and the diversion of traffic or persons — requiring any person to do, or to refrain from doing, anything that in the opinion of the Minister it is appropriate to do or refrain from doing in order to respond to the threat. Authorized officer may make emergency direction 18. The Minister may authorize any officer of the Department of Transport to make, subject to any restrictions or conditions that the Minister may specify, any direction that the Minister may make under section 17 whenever the officer is of the opinion that there is a threat referred to in that section. 2006-2007 Ponts et tunnels Duration 19. A direction comes into force immediately when it is made but ceases to have force 30 days after it is made, unless the Minister or the officer who made it repeals it before the expiry of the 30 days. Relationship with regulations 20. (1) A direction may provide that it applies in lieu of or in addition to any regulation made under section 16. Conflict (2) In the event of any inconsistency or conflict between a regulation and a direction, the direction prevails to the extent of the inconsistency or conflict. Not statutory instrument 21. A direction made under section 17 or 18 is not a statutory instrument within the meaning of the Statutory Instruments Act. Offence 22. (1) Every person who contravenes a regulation made under section 16 or a direction made under section 17 or 18 is guilty of an offence and is liable on summary conviction (a) in the case of an individual, to a fine not exceeding $5,000; and (b) in the case of a corporation, to a fine not exceeding $100,000. Continuing offence (2) If the offence is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued. Officers, etc., of corporations (3) If the offence is committed by a corporation, any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. No offence (4) A person authorized by the Minister to verify compliance with a regulation or a direction referred to in subsection (1) does not commit an offence if the person commits any act or omission that is required in the course of C. 1 International Brid verifying compliance and that would otherwise constitute a contravention of a regulation or direction referred to in that subsection. CHANGE OF OWNERSHIP, OPERATOR OR CONTROL Prohibition 23. (1) No person shall, without the approval of the Governor in Council, (a) purchase or otherwise acquire an international bridge or tunnel; (b) operate an international bridge or tunnel; or (c) acquire control of an entity that owns or operates an international bridge or tunnel. Interpretation (2) For the purpose of this section and sections 26 and 28, (a) a person controls a corporation that owns or operates an international bridge or tunnel if securities of the corporation to which are attached more than 50 per cent of the votes that may be cast to elect directors of the corporation are beneficially owned by that person and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation; (b) a person controls an unincorporated entity, other than a limited partnership, that owns or operates an international bridge or tunnel if more than 50 per cent of the ownership interests, however designated, into which the entity is divided are beneficially owned by that person and the person is able to direct the business and affairs of the entity; (c) the general partner of a limited partnership that owns or operates an international bridge or tunnel controls the limited partnership; and (d) a person controls an entity that owns or operates an international bridge or tunnel if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity. 2006-2007 Ponts et tunnels Deemed control (3) A person is deemed to control an entity referred in paragraph 2(a) or (b) if that person and any entities controlled by that person beneficially own securities of the entity and that person and those entities, if they were considered as one person, would control the entity. Application for approval 24. (1) Approval for anything referred to in paragraphs 23(1)(a) to (c) may only be obtained by submitting an application to the Minister for approval by the Governor in Council. Consultation (1.1) The Minister may, if in the opinion of the Minister it is necessary having regard to all the circumstances, consult with the other levels of government that have jurisdiction over the place where the international bridge or tunnel that is the subject of the application is situated and with any person who, in the opinion of the Minister, has a direct interest in the matter. Documents or information (2) A person who submits an application shall provide the Minister with any document or information that is required under guidelines issued by the Minister and any other document or information that is required by the Minister after receipt of the application. Not statutory instruments (3) The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act. Approval of Governor in Council 25. (1) The Governor in Council may, on the recommendation of the Minister, approve an application referred to in section 24 subject to any terms and conditions that the Governor in Council considers appropriate. Variation of terms and conditions (2) The Governor in Council may vary or rescind the terms and conditions or impose new terms and conditions. Compliance with terms and conditions (3) Every person who is subject to terms and conditions shall comply with them. Ministerial order 26. (1) The Minister may, in accordance with any terms and conditions that the Minister considers appropriate, order a person C. 1 International Brid (a) to sell, assign, transfer or otherwise dispose of an international bridge or tunnel if the person purchased or otherwise acquired it without the approval of the Governor in Council; (b) to cease operating an international bridge or tunnel if the person is operating it without the approval of the Governor in Council; and (c) to relinquish control of an entity that owns or operates an international bridge or tunnel if the person acquired control of the entity without the approval of the Governor in Council. Interim manager (2) The Minister may, if an order is made under subsection (1), appoint a person to manage and operate the international bridge or tunnel on an interim basis and in accordance with any terms and conditions that the Minister may specify. Offence 27. (1) Every person who contravenes section 23 or subsection 25(3) or fails to comply with an order of the Minister under section 26 is guilty of an offence and is liable (a) on conviction on indictment, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding two years, or to both; or (b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding six months, or to both. Continuing offence (2) If the offence is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued. Officers, etc., of corporations (3) If the offence is committed by a corporation, any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. 2006-2007 Regulations Ponts et tunnels 28. The Governor in Council may, on the recommendation of the Minister, make regulations requiring any person or class of persons to provide to the Minister any information related to the ownership of international bridges and tunnels and the control of any entity that owns or operates an international bridge or tunnel. INCORPORATION BY LETTERS PATENT Letters patent 29. (1) The Governor in Council may, on the recommendation of the Minister, issue letters patent of incorporation for the establishment of a corporation, with or without share capital, for the purpose of the corporation constructing or operating an international bridge or tunnel. Letters patent take effect on the date stated in them. Contents of letters patent (2) The letters patent may include the following: (a) the corporate name of the corporation; (b) the objects of the corporation; (c) provisions specifying the activities that may, or may not, be carried on by the corporation; (d) the place where the registered office of the corporation is located; (e) provisions regarding the keeping of, and access to, records of the corporation; (f) the number of directors to be appointed and provisions governing their appointment, term of office, remuneration, indemnification and removal; (g) provisions regarding the powers, duties and functions of the directors and meetings of the directors; (h) a code of conduct governing the conduct of the directors and officers of the corporation; (i) provisions for the holding of meetings of members or shareholders of the corporation, including an annual public meeting; C. 1 International Brid (j) provisions regarding the ownership of, or membership in, the corporation; (k) provisions regarding the management and control of the corporation; (l) provisions regarding financial statements and corporate finance, including provisions regarding the power of the corporation to borrow money on the credit of the corporation and to issue debt obligations and provide security for its obligations; (m) provisions regarding subsidiaries of the corporation, including the management and control of subsidiaries and their activities; (n) provisions regarding any fundamental changes to the corporation, including the amalgamation, continuance, liquidation or dissolution of the corporation; and (o) any other provision that the Governor in Council considers appropriate to include in the letters patent and that is not inconsistent with this Act. Supplementary letters patent (3) The Governor in Council may, on the recommendation of the Minister, issue supplementary letters patent amending the letters patent of a corporation, and the supplementary letters patent take effect on the date stated in them. Revocation of letters patent (4) The Governor in Council may, on the recommendation of the Minister, revoke the letters patent or supplementary letters patent of a corporation by issuing a notice to that effect. The revocation takes effect on the date stated in the notice. Not statutory instruments (5) Letters patent, supplementary letters patent and a notice of revocation are not statutory instruments within the meaning of the Statutory Instruments Act, but shall be published in the Canada Gazette and are valid with respect to third parties as of the date of publication. Deemed knowledge of letters patent 30. A person who deals with a corporation, acquires rights from a corporation or directly or indirectly acquires rights relating to a corporation is deemed to know the contents of the letters patent of the corporation. 2006-2007 Ponts et tunnels Regulations 31. (1) For the purposes of this Act, the Governor in Council may, on the recommendation of the Minister, make regulations, in respect of one or more corporations, regarding any matter referred to in subsection 29(2). Conflict (2) In the event of any inconsistency or conflict between the regulations made under subsection (1) and the letters patent or supplementary letters patent of a corporation, the regulations prevail to the extent of the inconsistency or conflict. Capacity and powers 32. (1) A corporation is incorporated for the purpose of constructing or operating an international bridge or tunnel in respect of which its letters patent are issued and, for that purpose and for the purposes of this Act, has the capacity, rights, powers and privileges of a natural person. Restriction on activities and powers (2) A corporation shall not carry on any activity or exercise any power that it is restricted by its letters patent, or by regulations made under subsection 31(1), from carrying on or exercising, nor shall it exercise any of its powers or carry on any of its activities in a manner contrary to its letters patent, those regulations or this Act. Within Canada (3) A corporation may carry on its activities throughout Canada. Extra-territorial capacity (4) A corporation has the capacity to carry on its activities, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent that the laws of that jurisdiction permit. Tolls 33. Subject to the provisions of this Act and any regulations made under this Act and to its letters patent, a corporation may charge tolls, fees or other charges for the use of an international bridge or tunnel. Power to manage 34. The directors shall manage, or supervise the management of, the activities and affairs of the corporation. Duty of care of directors and officers 35. (1) Every director and officer of a corporation shall, in exercising powers and discharging duties, C. 1 International Brid (a) act honestly and in good faith with a view to the best interests of the corporation; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Duty to comply (2) Every director and officer of a corporation shall comply with this Act, any regulations made under subsection 31(1) and the letters patent and by-laws of the corporation. No exculpation (3) No provision in a contract or resolution relieves a director or officer from the duty to comply with subsection (2) or from liability for non-compliance. Power to make by-laws 36. Unless the letters patent or any regulations made under subsection 31(1) provide otherwise, the directors of a corporation may make, amend or repeal by-laws that regulate the affairs of the corporation. SHARES OF A CORPORATION Financial Administration Act 37. For the purposes of section 90 of the Financial Administration Act, Her Majesty in right of Canada, or a parent Crown corporation within the meaning of section 83 of that Act, is authorized to acquire, hold, dispose of and otherwise deal with shares of a corporation that owns or operates an international bridge or tunnel. ENFORCEMENT False statements or information 38. (1) No person shall knowingly, in connection with any matter under this Act, make any false or misleading statement, orally or in writing, or provide false or misleading information to the Minister, any person acting on behalf of the Minister or a person designated by the Minister under subsection 39(1). Obstruction (2) No person shall knowingly obstruct or hinder a person referred to in subsection (1) who is engaged in carrying out functions under this Act. 2006-2007 Powers Ponts et tunnels 39. (1) Subject to subsection (6), the Minister or a person designated by the Minister may, for the purpose of ensuring compliance with this Act and any regulation, order or directive made under this Act, (a) enter and inspect any place at any reasonable time; (b) remove any document or other thing from any place referred to in paragraph (a) for examination or, in the case of a document, copying; and (c) seize anything found in any place referred to in paragraph (a) that the Minister or a person designated by the Minister believes on reasonable grounds will afford evidence with respect to an offence under this Act. Certification of designated persons (2) Every person designated by the Minister shall receive an authorization in the form that may be established by the Minister attesting to the person’s designation. On entering any place, the person shall, if requested, produce the authorization to the person in charge of the place. Computers (3) In conducting an inspection, the Minister or a person designated by the Minister may (a) use or cause to be used any computer system or data processing system at the place to examine any data contained in, or available to, the system; (b) reproduce any record, or cause it to be reproduced from the data, in the form of a printout or other intelligible output, and remove the printout or other output for examination or copying; and (c) use or cause to be used any copying equipment at the place to make copies of any books, records, electronic data or other documents. Search warrants (4) Sections 487 to 492 of the Criminal Code apply in respect of any offence committed or suspected to have been committed under this Act. Regulations (5) The Governor in Council may, on the recommendation of the Minister, make regulations respecting C. 1 International Brid (a) the protection and preservation of any evidence that has been seized without a warrant under paragraph (1)(c); and (b) the return of the evidence to the person from whom it was seized or to any other person entitled to its possession. Dwelling-house (6) If any place referred to in paragraph (1)(a) is a dwelling-house, the Minister or a person designated by the Minister may not enter that dwelling-house without the consent of the occupant except under the authority of a warrant issued under subsection (7). Authority to issue warrant (7) On ex parte application, a justice of the peace may issue a warrant authorizing the Minister or a person designated by the Minister to enter a dwelling-house, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that (a) entry to a dwelling-house is necessary for the purpose of performing any function of the Minister pursuant to this Act; and (b) entry to the dwelling-house has been refused or that there are reasonable grounds for believing that entry will be refused. Use of force (8) In executing the warrant, the Minister or a person designated by the Minister shall not use force unless they are accompanied by a peace officer and the use of force has been specifically authorized in the warrant. Duty to assist Minister 40. The owner or person who is in possession or control of a place that is entered or inspected under subsection 39(1), and every person who is found in the place, shall (a) give the Minister or a person designated by the Minister all reasonable assistance to enable them to carry out the inspection and exercise any power conferred on them by that subsection; and (b) provide the Minister or a person designated by the Minister with any information relevant to the administration of this Act or the regulations, orders, directions or notices made under this Act that they may reasonably require. 2006-2007 Injunction Ponts et tunnels 41. (1) If, on the application of the Minister, it appears to a court of competent jurisdiction that a person has done, is about to do or is likely to do any act or thing constituting or directed toward the commission of an offence under this Act, the court may issue an injunction ordering any person named in the application (a) to refrain from doing any act or thing that, in the opinion of the court, may constitute or be directed toward the commission of the offence; or (b) to do any act or thing that, in the opinion of the court, may prevent the commission of the offence. Notice (2) No injunction may be issued under subsection (1) unless 48 hours notice is given to the party or parties named in the application or the urgency of the situation is such that service of notice would not be in the public interest. Offence 42. (1) Every person who contravenes a provision of this Act or any regulation or order made under it for which no other offence is specified in this Act is guilty of an offence and is liable on summary conviction (a) in the case of an individual, to a fine not exceeding $5,000; and (b) in the case of a corporation, to a fine not exceeding $25,000. Continuing offence (2) If the offence is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued. Officers, etc., of corporations (3) If the offence is committed by a corporation, any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. C. 1 International Brid ADMINISTRATIVE MONETARY PENALTIES Regulations 43. The Minister may, by regulation, (a) designate as a provision or requirement the contravention of which may be proceeded with as a violation in accordance with sections 45 to 55 (i) any provision of this Act or any regulation made under this Act, (ii) any order made under section 9, 13, 15.1 or 26, or (iii) any directive made under section 17 or 18; and (b) prescribe the maximum amount payable for each violation, but the amount shall not exceed $5,000, in the case of an individual, and $25,000, in the case of a corporation. Notices of violation 44. The Minister may establish the form and content of notices of violation. Violation 45. (1) Every person who contravenes a provision or requirement designated under paragraph 43(a) commits a violation and is liable to a penalty not exceeding the maximum prescribed under paragraph 43(b). Continuing violation (2) A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued. How contraventions may be proceeded with (3) If any act or omission can be proceeded with as a violation or as an offence, proceedings may be commenced in respect of that act or omission as a violation or as an offence, but proceeding with it as a violation precludes proceeding with it as an offence, and proceeding with it as an offence precludes proceeding with it as a violation. Nature of violation (4) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply. Issuance of notice of violation 46. If a person designated by the Minister under subsection 39(1) believes on reasonable grounds that a person has committed a violation, 2006-2007 Ponts et tunnels he or she may issue and serve on the person a notice of violation that names the person, identifies the violation and sets out (a) the penalty for the violation that the person is liable to pay; and (b) particulars concerning the time for paying and the manner of paying the penalty. Definition of “Tribunal” 47. For the purposes of sections 48 to 54, “Tribunal” means the Transportation Appeal Tribunal of Canada established by subsection 2(1) of the Transportation Appeal Tribunal of Canada Act. Option 48. A person who has been served with a notice of violation must either pay the amount of the penalty specified in the notice or file with the Tribunal a written request for a review of the facts of the alleged contravention or of the amount of the penalty. Payment of specified amount precludes further proceedings 49. If a person who is served with a notice of violation pays the amount specified in the notice in accordance with the particulars set out in the notice, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the contravention by that person of the designated provision and no further proceedings under this Act shall be taken against the person in respect of that contravention. Request for review of determination 50. (1) A person who is served with a notice of violation and who wishes to have the facts of the alleged contravention or the amount of the penalty reviewed shall, on or before the date specified in the notice or within any further time that the Tribunal on application may allow, file a written request for a review with the Tribunal at the address set out in the notice. Time and place for review (2) On receipt of a request filed under subsection (1), the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person who filed the request of the time and place in writing. Review procedure (3) The member of the Tribunal assigned to conduct the review shall provide the Minister and the person who filed the request with an opportunity consistent with procedural fairness and natural justice to present evidence and make representations. C. 1 Burden of proof (4) The burden of establishing that a person has contravened a designated provision is on the Minister. Person not compelled to testify (5) A person who is alleged to have contravened a designated provision is not required, and shall not be compelled, to give any evidence or testimony in the matter. Certificate 51. If a person fails to pay the amount of the penalty specified in a notice of violation within the time specified in the notice and does not file a request for a review, the person is deemed to have committed the contravention alleged in the notice, and the Minister may obtain from the Tribunal a certificate in the form that may be established by the Governor in Council that indicates the amount of the penalty specified in the notice. Determination by Tribunal member 52. If, at the conclusion of a review, the member of the Tribunal who conducts the review determines that International Brid (a) the person has not contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and, subject to section 53, no further proceedings under this Act shall be taken against the person in respect of the alleged contravention; or (b) the person has contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and, subject to any regulations made under paragraph 43(b), of the amount determined by the member of the Tribunal to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time that the member of the Tribunal may allow, the member of the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person. 2006-2007 Ponts et tunnels Right of appeal 53. (1) The Minister or a person affected by a determination under section 52 may, within 30 days after the determination, appeal it to the Tribunal. Loss of right of appeal (2) A party that does not appear at a review hearing is not entitled to appeal a determination, unless they establish that there was sufficient reason to justify their absence. Disposition of appeal (3) The appeal panel of the Tribunal assigned to hear the appeal may dispose of the appeal by dismissing it or allowing it and, in allowing the appeal, the panel may substitute its decision for the determination appealed against. Certificate (4) If the appeal panel finds that a person has contravened the designated provision, the panel shall without delay inform the person of the finding and, subject to any regulations made under paragraph 43(b), of the amount determined by the panel to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time allowed by the Tribunal, the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person. Registration of certificate 54. (1) If the time limit for the payment of an amount determined in a notice has expired, the time limit for the request for a review has expired, the time limit for an appeal has expired, or an appeal has been disposed of, on production in any superior court, a certificate issued under section 51, paragraph 52(b) or subsection 53(4) shall be registered in the court. When it is registered, a certificate has the same force and effect, and proceedings may be taken in connection with it, as if it were a judgment in that court obtained by Her Majesty in right of Canada against the person named in the certificate for a debt of the amount set out in the certificate. Recovery of costs and charges (2) All reasonable costs and charges attendant on the registration of the certificate are recoverable in like manner as if they had been certified and the certificate had been registered under subsection (1). C. 1 Amounts received deemed public moneys (3) An amount received by the Minister or the Tribunal under this section is deemed to be public money within the meaning of the Financial Administration Act. Time limit for proceedings 55. Proceedings in respect of a violation may be instituted not later than 12 months after the time when the subject-matter of the proceedings arose. International Brid FIVE-YEAR REVIEW Review of Act in five years 56. (1) A review of the provisions and the operation of this Act must be completed by the Minister during the fifth year after this section comes into force. Tabling of report (2) The Minister must cause a report of the results of the review to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report has been completed. TRANSITIONAL PROVISIONS Proposals for construction or alteration 57. For greater certainty, this Act applies in respect of any proposal for the construction or alteration of an international bridge or tunnel that has been submitted to any department, agency or regulatory authority of the Government of Canada before the coming into force of this section. Existing operators of international bridges and tunnels 58. Despite subsection 23(1), a person who operates an international bridge or tunnel immediately before the day on which this section comes into force is not required to obtain the approval of the Governor in Council to continue to operate the bridge or tunnel on and after the day this section comes into force. CONSEQUENTIAL AMENDMENT 2001, c. 29 TRANSPORTATION APPEAL TRIBUNAL OF CANADA ACT 59. Subsection 2(3) of the Transportation Appeal Tribunal of Canada Act is replaced by the following: Jurisdiction in respect of other Acts (3) The Tribunal also has jurisdiction in respect of reviews and appeals in connection with administrative monetary penalties provided 2006-2007 Ponts et tunnels for under sections 177 to 181 of the Canada Transportation Act and sections 43 to 55 of the International Bridges and Tunnels Act. COMING INTO FORCE Order in council 60. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. C. 1 International Bridges an SCHEDULE (Section 4) BRIDGES AND TUNNELS ACTS 1. An Act respecting the International Bridge Company, S.C. 1869, c. 65 2. An Act to incorporate the Detroit River Tunnel Company, S.C. 1870, c. 51 3. The Grand Trunk (International Bridge), Act, 1872, S.C. 1872, c. 63 4. An Act to incorporate the River St. Clair Railway Bridge and Tunnel Company, S.C. 1872, c. 87 5. An Act to incorporate the Canada and New York Bridge and Tunnel Company, S.C. 1872, c. 88 6. The St. Lawrence International Bridge Act, 1872, S.C. 1872, c. 90 7. An Act to incorporate the Canada and Detroit River Bridge Company, S.C. 1873, c. 90 8. An Act to incorporate the Niagara Grand Island Bridge Company, S.C. 1874, c. 77 9. An Act respecting the Canada Southern Bridge Company, S.C. 1877, c. 63 10. An Act to incorporate the Calais and St. Stephen Railway Bridge Company, S.C. 1882, c. 75 11. An Act to incorporate the Niagara Peninsula Bridge Company, S.C. 1882, c. 88 12. An Act to incorporate the Sault Ste Marie Bridge Company, S.C. 1882, c. 89 13. An Act to incorporate the Niagara Frontier Bridge Company, S.C. 1884, c. 81 14. An Act to incorporate the Brockville and New York Bridge Company, S.C. 1886, c. 91 15. An Act to incorporate the Niagara Falls Bridge Company, S.C. 1887, c. 96 16. An Act to incorporate the Grenville International Bridge Company, S.C. 1888, c. 90 17. An Act to incorporate the River Detroit Winter Railway Bridge Company, S.C. 1888, c. 91 18. An Act to incorporate the Canada and Michigan Tunnel Company, S.C. 1888, c. 93 19. An Act to incorporate the Shore Line Railway Bridge Company, S.C. 1890, c. 94 20. An Act to incorporate the Buffalo and Fort Erie Bridge Company, S.C. 1891, c. 65 21. An Act to incorporate the Ontario and New York Bridge Company, S.C. 1891, c. 67 22. An Act to incorporate the St. John River Bridge Company, S.C. 1895, c. 74 2006-2007 Ponts et tunnels inter 23. An Act to incorporate the Queenston Heights Bridge Company, S.C. 1896, Vol. II, c. 43 (6th Session, 7th Parliament) 24. An Act to incorporate the Mather Bridge and Power Company, S.C. 1896, Vol. II, c. 13 (1st Session, 8th Parliament) 25. An Act to incorporate the Windsor and Detroit Union Bridge Company, S.C. 1898, c. 120 26. An Act to incorporate the St. Mary River Bridge Company, S.C. 1901, c. 112 27. An Act to incorporate the Père Marquette International Bridge Company, S.C. 1903, c. 175 28. An Act to incorporate the International Bridge and Terminal Company, S.C. 1905, c. 108 29. An Act to incorporate the Canadian-Minnesota Bridge Company, S.C. 1906, c. 76 30. An Act to incorporate the Trans-Niagara Bridge Company, S.C. 1906, c. 171 31. An Act to incorporate the Fort Erie and Buffalo Bridge Company, S.C. 1909, c. 83 32. An Act to incorporate The Ontario Niagara Connecting Bridge Company, S.C. 1916, c. 31 33. An Act to incorporate The Canadian Niagara Bridge Company, S.C. 1918, c. 62 34. An Act to incorporate The Canadian Transit Company, S.C. 1921, c. 57 35. An Act respecting Niagara River Bridge Company, S.C. 1922, c. 63 36. An Act to incorporate Buffalo and Fort Erie Public Bridge Company, S.C. 1923, c. 74 37. An Act to incorporate The Detroit and Windsor Subway Company, S.C. 1926-27, c. 83 38. An Act to incorporate The Detroit River Canadian Bridge Company, S.C. 1928, c. 58 39. An Act to incorporate the St. Clair Transit Company, S.C. 1928, c. 64 40. An Act to incorporate The St. Lawrence River Bridge Company, S.C. 1928, c. 65 41. An Act to incorporate Lake of the Woods International Bridge Company, S.C. 1932, c. 59 42. An Act to incorporate Thousand Islands Bridge Company, S.C. 1934, c. 66 43. An Act to incorporate Ogdensburg Bridge Authority, S.C. 1952, c. 57 44. An Act to incorporate Baudette and Rainy River Municipal Bridge Company, S.C. 1955, c. 61 45. An Act to incorporate St. Mary’s River Bridge Company, S.C. 1955, c. 64 C. 1 International Bridges an 46. An Act respecting Niagara Lower Arch Bridge Company Limited, S.C. 1956, c. 64 47. Campobello-Lubec Bridge Act, S.C. 1958, c. 23 48. Pigeon River Bridge Act, S.C. 1959, c. 51 49. Queenston Bridge Act, S.C. 1959, c. 53 50. Blue Water Bridge Authority Act, S.C. 1964-65, c. 6 51. Milltown Bridge Act, S.C. 1966-67, c. 9 52. Fort-Falls Bridge Authority Act, S.C. 1970-71-72, c. 51 53. An Act respecting the acquisition, operation and disposal of the Windsor-Detroit Tunnel by the City of Windsor, S.C. 1987, c. 55 Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007 CHAPTER 12 An Act to amend the Criminal Code (conditional sentence of imprisonment) ASSENTED TO 31st MAY, 2007 BILL C-9 SUMMARY This enactment amends section 742.1 of the Criminal Code to provide that a person convicted of a serious personal injury offence as defined in section 752 of that Act, a terrorism offence or a criminal organization offence prosecuted by way of indictment for which the maximum term of imprisonment is ten years or more is not eligible for a conditional sentence. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 55-56 ELIZABETH II —————— CHAPTER 12 An Act to amend the Criminal Code (conditional sentence of imprisonment) [Assented to 31st May, 2007] R.S., c. C-46 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1995, c. 22, s. 6; 1997, c. 18, s. 107.1 1. Section 742.1 of the Criminal Code is replaced by the following: Imposing of conditional sentence 742.1 If a person is convicted of an offence, other than a serious personal injury offence as defined in section 752, a terrorism offence or a criminal organization offence prosecuted by way of indictment for which the maximum term of imprisonment is ten years or more or an offence punishable by a minimum term of imprisonment, and the court imposes a sentence of imprisonment of less than two years and is satisfied that the service of the sentence in the community would not endanger the safety of the community and would be consistent with the fundamental purpose and principles of sentencing set out in sections 718 to 718.2, the court may, for the purpose of supervising the offender’s behaviour in the community, order that the offender serve the sentence in the community, subject to the offender’s compliance with the conditions imposed under section 742.3. Coming into force 2. This Act comes into force six months after the day on which it receives royal assent. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 2 An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures ASSENTED TO 12th MARCH, 2009 BILL C-10 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures”. SUMMARY Part 1 implements income tax measures proposed in the January 27, 2009 Budget. In particular, it (a) increases by 7.5% above their 2008 levels the basic personal amount and the upper limits for the two lowest personal income tax brackets, thereby also increasing the income levels at which income testing begins for the base benefit under the Canada Child Tax Credit and the National Child Benefit supplement; (b) increases by $1,000 the amount on which the Age Credit is calculated; (c) increases to $25,000 the maximum amount eligible for withdrawal under the Home Buyers’ Plan; (d) introduces amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds to allow for recognition of losses in accounts between the time of the annuitant’s death and final distribution of property from the account; (e) repeals the interest deductibility constraints in section 18.2 of the Income Tax Act; (f) extends the mineral exploration tax credit for one year; (g) increases to $500,000 the annual amount of active business income eligible for the 11% small business income tax rate and makes related amendments; (h) clarifies rules relating to timing of acquisition of control of a corporation; and (i) creates cost savings through electronic filing of tax information. In addition, Part 1 implements income tax measures that were referenced in the January 27, 2009 Budget and that were originally proposed in the February 26, 2008 Budget but not included in the Budget Implementation Act, 2008. In particular, it (a) clarifies the application of the excess corporate holdings rules for private foundations; Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca (b) increases the amount that corporations will be able to pay as “eligible dividends”; (c) enacts several regulatory amendments that complement and complete measures enacted in the Budget Implementation Act, 2008; (d) introduces minor adjustments to the Tax-Free Savings Account rules and the scientific research and experimental development investment tax credit rules included in the Budget Implementation Act, 2008; (e) implements rules in respect of donations of medicines; and (f) reduces the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services. Part 1 also implements other income tax measures referred to in the January 27, 2009 Budget that either were themselves previously announced or flow directly from previously announced measures. In particular, it (a) implements technical changes relating to specified investment flowthrough trusts and partnerships and new tax rules to facilitate the conversion of these entities into corporations; (b) contains amendments to take into account financial institution accounting changes; (c) extends the general treatment of capital gains and losses on an acquisition of control of a corporation to gains and losses that result from fluctuations in foreign exchange rates in respect of debt denominated in foreign currency; (d) enhances the carry-forward for investment tax credits; (e) implements amendments relating to the computation of income, gains and losses of a foreign affiliate; (f) implements amendments to the functional currency tax reporting rules; (g) implements minor tax amendments relating to interprovincial allocation of corporate taxable income, the Wage Earner Protection Program and the Canada-United States tax treaty’s rules for cross-border pensions; (h) provides for an extension of time for income tax assessments that are consequential to provincial reassessments; (i) ensures the appropriate application of the Income Tax Act’s trust rules to certain arrangements and institutions under Quebec civil law; (j) enacts regulatory amendments relating to prescribed amounts for automobile expenses and benefits, eligible medical expenses, and the tax treatment of foreign affiliate active business income earned in a jurisdiction with which Canada has concluded a tax information exchange agreement; (k) introduces rules to reduce the required minimum amount that must be withdrawn from a Registered Retirement Income Fund or from a variable benefit money purchase pension plan by 25% for 2008, and allows related recontributions; (l) extends the deadline for Registered Disability Savings Plan contributions; and (m) modifies the provisions relating to amateur athletic trusts. Part 2 amends the Excise Act, 2001 and the Excise Tax Act to implement measures to reduce the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services. Part 3 amends the Customs Tariff to implement measures announced in the January 27, 2009 Budget to (a) reduce Most-Favoured-Nation rates of duty and, if applicable, rates of duty under other tariff treatments on a number of tariff items relating to machinery and equipment imported on or after January 28, 2009; (b) divide tariff item 9801.10.00 into two separate tariff items pertaining to conveyances and containers, respectively, and make two technical corrections, effective January 28, 2009; and (c) modify the tariff treatment of milk protein substances, effective September 8, 2008. Part 4 amends the Employment Insurance Act until September 11, 2010 to extend regular benefit entitlements by five weeks. It also provides that a pilot project ceases to have effect. In addition, it amends that Act to provide that the cost of benefit enhancement measures under that Act, provided for in the budget tabled in Parliament on January 27, 2009, are not to be charged to the Employment Insurance Account. Finally, it sets the premium rate provided for under that Act for the years 2002, 2003, 2005 and 2010. Division 1 of Part 5 amends the Financial Administration Act to authorize the Minister of Finance to take, subject to certain conditions, a number of measures intended to promote the stability or maintain the efficiency of the financial system, including financial markets, in Canada. Division 2 of Part 5 amends the Canada Deposit Insurance Corporation Act to provide the Canada Deposit Insurance Corporation with greater flexibility to enhance its ability to safeguard financial stability in Canada. The Division also adds Tax-Free Saving Accounts as a distinct category for the purposes of deposit insurance. It also makes consequential amendments to other acts. Division 3 of Part 5 amends the Export Development Act to, among other things, expand the Export Development Corporation’s mandate to include the support and development of domestic trade and business opportunities for a period of two years. The period may be extended by the Governor in Council. Division 3 also increases the Corporation’s authorized capital. Division 4 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada. Division 5 of Part 5 amends the Canada Small Business Financing Act to increase the maximum outstanding loan amount in relation to a borrower. It also increases individual lenders’ cap on claims. These amendments will apply to new loans made after March 31, 2009. Division 6 of Part 5 amends a number of Acts governing federal financial institutions to improve access to credit and strengthen the financial system in Canada, including amendments that will (a) provide new authority for further safeguards to promote the stability of the financial system; (b) enhance consumer protection by establishing new measures to help consumers of financial products; and (c) implement other technical measures to strengthen the financial sector framework in Canada. Division 7 of Part 5 provides for payments to be made to provinces and territories, provides authority to the Minister of Finance to enter into agreements respecting securities regulation with provinces and territories and enacts the Canadian Securities Regulation Regime Transition Office Act. Part 6 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes, including infrastructure and housing. Part 7 amends Part I of the Navigable Waters Protection Act to create a tiered approval process for works in order to streamline the approval process and to exclude certain classes of works and works on certain classes of navigable waters from the approval process. This Part further amends Part I of the Act to clarify the scope of the application of that Part to works owned or previously owned by the Crown, to provide for the application of the Act to bridges over the St. Lawrence River and to add certain regulation-making powers. Part 7 also amends the Act to clarify the provisions related to obstacles and obstructions to navigation. The Act is also amended by adding administration and enforcement powers, consolidating all offence provisions, increasing fines and requiring a review of the Act within five years of the amendments coming into force. Division 1 of Part 8 amends the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations to provide that unpaid wages for which an individual may receive payment under the Wage Earner Protection Program include unpaid severance pay and termination pay. Division 2 of Part 8 amends the Canada Student Financial Assistance Act to, among other things, (a) require the Chief Actuary of the Office of the Superintendent of Financial Institutions to report on financial assistance provided under that Act; and (b) authorize the Minister of Human Resources and Skills Development to suspend or deny financial assistance to all those who are qualifying students in respect of a designated educational institution. Division 2 of Part 8 also amends both the Canada Student Financial Assistance Act and the Canada Student Loans Act to, among other things, (a) terminate all obligations of a borrower with respect to risk-shared loans and guaranteed loans if the borrower dies; (b) authorize the Minister of Human Resources and Skills Development to require any person who has received financial assistance or a guaranteed student loan to provide that Minister with documents or information for the purpose of verifying compliance with those Acts; and (c) authorize that Minister to terminate or deny financial assistance in certain circumstances. Division 3 of Part 8 amends the Financial Administration Act to provide express authority for agent Crown corporations to lease their property, restrict the appointment of employees of a Crown corporation to its board of directors, require Crown corporations to hold annual public meetings, clarify Treasury Board’s duties to indemnify Crown corporation directors and officers, permit more flexibility in the frequency of special examinations of Crown corporations, and require the reports of special examinations to be submitted to the appropriate Minister and Treasury Board and made public. This Division also makes consequential amendments to other Acts. Part 9 amends the Federal-Provincial Fiscal Arrangements Act to set out the amount of the fiscal equalization payments to the provinces for the fiscal year beginning on April 1, 2009 and amends the method by which fiscal equalization payments will be calculated for subsequent fiscal years. It also amends the method by which the Canada Health Transfer is calculated for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014. Part 10 enacts the Expenditure Restraint Act. The purpose of that Act is to put in place a reasonable and an affordable approach to compensation across the federal public sector in support of responsible fiscal management in a difficult economic environment. It sets out rules governing economic increases to the rates of pay of unionized and non-unionized employees for periods that begin during the period that begins on April 1, 2006 and ends on March 31, 2011. It also continues certain other terms and conditions at their current levels. It preserves the right of collective bargaining with regard to other matters and it does not affect the right to strike. The Act does not preclude the continued development of workplace improvements by employers and employees’ bargaining agents through the National Joint Council or other bodies that they may agree on. It also permits bargaining agents and employers to agree to the amendment of certain terms and conditions of collective agreements or arbitral awards. Part 11 enacts the Public Sector Equitable Compensation Act and makes consequential amendments to other Acts. The purpose of the Act is to ensure that proactive measures are taken to provide employees in female predominant job groups with equitable compensation. It requires public sector employers that have non-unionized employees to determine periodically whether any equitable compensation matters exist in the workplace and, if so, to prepare a plan to resolve them. With respect to public sector employers that have unionized employees, the employers and the bargaining agents are to resolve those matters through the collective bargaining process. It sets out the procedure for informing employees as to whether an equitable compensation assessment was required to be conducted and, if so, how it was conducted, and how any equitable compensation matters were resolved. It also establishes a recourse process for employees if the Act is not complied with. Finally, since the Act puts in place a comprehensive equitable compensation scheme for public sector employees, this Part amends the Canadian Human Rights Act so that the provisions of that Act dealing with gender-based wage discrimination no longer apply to public sector employers. It extends the mandate of the Public Service Labour Relations Board to allow it to hear equitable compensation complaints and to provide other services related to equitable compensation in the public sector. Part 12 amends the Competition Act. The amendments include (a) introducing a dual-track approach to agreements between competitors, with a limited criminal anti-cartel provision and a civil provision to address other agreements that substantially lessen or prevent competition; (b) providing that bid-rigging includes agreements or arrangements to withdraw bids or tenders; (c) repealing the provisions dealing with price discrimination and predatory pricing, replacing the criminal resale price maintenance provision with a new civil provision to address price maintenance practices that have an adverse effect on competition, and repealing all provisions dealing specifically with the airline industry; (d) introducing an administrative monetary penalty for cases of abuse of dominant position, increasing the maximum amount of administrative monetary penalties for deceptive marketing cases, and increasing the maximum fines or terms of imprisonment, or both, for agreements or arrangements between competitors, bid-rigging, criminal false or misleading representations, deceptive telemarketing, deceptive notice of winning a prize, obstruction of Competition Bureau investigations and failure to comply with prohibition orders or production orders; (e) clarifying that, in proceedings under section 52, 74.01 or 74.02, it is not necessary to establish that false or misleading representations are made to the public in Canada or are made in a place to which the public has access, and clarifying that the “general impression test” applies to all deceptive marketing practices in sections 74.01 and 74.02; (f) providing that the court may make an order in respect of cases of false or misleading representations to require the person who engaged in the conduct to compensate persons affected by the conduct, and may issue an interim injunction to freeze assets if the Commissioner of Competition intends to ask for such a compensation order; and (g) introducing a two-stage merger review process for notifiable transactions, increased merger pre-notification thresholds and a reduced merger review limitation period. Part 13 amends the Investment Canada Act so that the review of an investment will be applied only to the more significant investments. It also amends the Act to allow more information to be made public. This Part also provides for the review of foreign investments in Canada that could threaten national security and allows the Governor in Council to take any measures that the Governor in Council considers advisable to protect national security, such as prohibiting a non-Canadian from implementing an investment. Part 14 amends the Canada Transportation Act to provide the Governor in Council with flexibility to increase the foreign ownership limit from the existing levels to a maximum of 49%. Part 15 amends the Air Canada Public Participation Act in relation to the mandatory provisions in the articles of Air Canada regarding constraints imposed on the issue, transfer and ownership of shares. It provides for the repeal of the provisions requiring that the articles of Air Canada contain provisions imposing limits on non-resident share ownership and the repeal of the provisions requiring that the articles of Air Canada contain provisions respecting the enforcement of these constraints. TABLE OF PROVISIONS AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON JANUARY 27, 2009 AND RELATED FISCAL MEASURES SHORT TITLE Budget Implementation Act, 2009 1. PART 1 AMENDMENTS IN RESPECT OF INCOME TAX 2–81. Income Tax Act 82. Budget Implementation Act, 2008 83–118. Income Tax Regulations PART 2 AMENDMENTS IN RESPECT OF SALES AND EXCISE TAXES 119–120. Excise Act, 2001 121. Excise Tax Act PART 3 AMENDMENTS TO THE CUSTOMS TARIFF CUSTOMS TARIFF 122–220. Amendments COMING INTO FORCE 221. Coming into force PART 4 EMPLOYMENT INSURANCE EMPLOYMENT INSURANCE ACT 222–224. Amendments CLAIMANTS NOT IN CANADA 225. Subsection 55(7) PILOT PROJECT RELATING TO EXTENDED BENEFITS 226. Pilot Project No. 10 i PREMIUM RATES PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT 227. Deeming provision 228. Deeming provision 229. Application TRANSITIONAL PROVISION COORDINATING AMENDMENTS 230. 2008, c. 28 COMING INTO FORCE 231. Retroactive effect PART 5 STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM DIVISION 1 FINANCIAL ADMINISTRATION ACT 232. Amendment DIVISION 2 CANADA DEPOSIT INSURANCE CORPORATION ACT Amendments to the Act 233–254. Amendments Consequential Amendments 255. Access to Information Act 256. Canadian Payments Act 257. Financial Administration Act 258. Winding-up and Restructuring Act Coming into Force 259. Order in council DIVISION 3 EXPORT DEVELOPMENT ACT 260–263. Amendments ii DIVISION 4 BUSINESS DEVELOPMENT BANK OF CANADA ACT 264. Amendment DIVISION 5 CANADA SMALL BUSINESS FINANCING ACT Amendments to the Act 265–267. Amendments Coming into Force 268. Coming into force DIVISION 6 LEGISLATION GOVERNING FINANCIAL INSTITUTIONS Bank Act 269–275. Amendments Cooperative Credit Associations Act 276–279. Amendments Financial Consumer Agency of Canada Act 280. Amendment Green Shield Canada Act 281. Amendment Insurance Companies Act 282–287. Amendments Trust and Loan Companies Act 288–292. Amendments Coordinating Amendment 293. 2005, c. 54 Coming into Force 294. Order in council iv DIVISION 7 SECURITIES Securities Regulation 295. Maximum payment of $150,000,000 296. Agreements Canadian Securities Regulation Regime Transition Office Act 297. Enactment of Act AN ACT TO ESTABLISH THE CANADIAN SECURITIES REGULATION REGIME TRANSITION OFFICE SHORT TITLE 1. Canadian Securities Regulation Regime Transition Office Act INTERPRETATION 2. Definitions ESTABLISHMENT 3. Transition Office 4. President 5. Advisory Committee 6. Staff 7. Conditions of employment — president and members 8. Conflict of interest — president and members 9. Immunity PURPOSE AND POWERS 10. Purpose 11. Duties 12. Capacity and powers 13. Information FINANCIAL PROVISIONS 14. Maximum payment of $33,000,000 15. Audit ANNUAL REPORT 16. Submission to Minister v DISSOLUTION 17. Date of dissolution Transitional Provision 298. Initial annual report 299. Order in council Coming into Force PART 6 PAYMENTS INFRASTRUCTURE STIMULUS FUND 300. Maximum payment of $2,000,000,000 PROVINCIAL-TERRITORIAL INFRASTRUCTURE BASE FUNDING PROGRAM 301. Maximum payment of $495,000,000 COMMUNITIES COMPONENT OF THE BUILDING CANADA FUND 302. Maximum payment of $250,000,000 303. Maximum payment of $200,000,000 GREEN INFRASTRUCTURE FUND COMMUNITY ADJUSTMENT FUND 304. Maximum payment of $51,000,000 305. Maximum payment of $106,000,000 306. Maximum payment of $175,000,000 307. Maximum payment of $17,000,000 308. Maximum payment of $154,000,000 IMPROVING INFRASTRUCTURE AT UNIVERSITIES AND COLLEGES 309. Maximum payment of $1,000,000,000 FIRST NATIONS HOUSING 310. Maximum payment of $75,000,000 311. Maximum payment of $125,000,000 RENOVATION AND RETROFIT OF SOCIAL HOUSING 312. Maximum payment of $500,000,000 v HOUSING FOR LOW-INCOME SENIORS 313. Maximum payment of $200,000,000 HOUSING FOR PERSONS WITH DISABILITIES 314. Maximum payment of $25,000,000 315. Maximum payment of $100,000,000 NORTHERN HOUSING CANADA HEALTH INFOWAY INC. 316. Maximum payment of $500,000,000 PART 7 NAVIGABLE WATERS PROTECTION ACT 317–340. 341. Amendments to the Act Consequential Amendment to the International Bridges and Tunnels Act PART 8 MISCELLANEOUS PROVISIONS DIVISION 1 WAGE EARNER PROTECTION PROGRAM Wage Earner Protection Program Act 342–347. Amendments Wage Earner Protection Program Regulations 348–354. Amendments Consequential Amendments to the Bankruptcy and Insolvency Act 355–356. Amendments Transitional Provision 357. Application DIVISION 2 FEDERAL FINANCIAL ASSISTANCE FOR STUDENTS 358–364. Canada Student Financial Assistance Act 365–367. Canada Student Loans Act 368. Consequential Amendment to the Budget Implementation Act, 2008 vi DIVISION 3 CROWN CORPORATIONS Financial Administration Act 369–375. Amendments Consequential Amendments 376. Canada Council for the Arts Act 377. Canada Employment Insurance Financing Board Act 378. Canada Post Corporation Act 379. Canadian Dairy Commission Act 380. Canadian Race Relations Foundation Act 381–382. Public Sector Pension Investment Board Act PART 9 PAYMENTS TO PROVINCES FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 383–391. Amendments PAYMENT TO NOVA SCOTIA 392. Payment of $74,188,000 PART 10 EXPENDITURE RESTRAINT ACT 393. Enactment of Act AN ACT TO RESTRAIN THE GOVERNMENT OF CANADA’S EXPENDITURES IN RELATION TO EMPLOYMENT SHORT TITLE 1. Expenditure Restraint Act INTERPRETATION 2. Definitions 3. Deemed bonus 4. National Joint Council recommendations 5. When certain collective agreements are deemed to have been entered into EFFECTS OF ACT 6. Right to bargain collectively 7. Right to strike vi 8. Amendments permitted 9. Workplace improvements 10. Incremental and merit increases 11. Conflicts with other Acts 12. Members of Parliament 13. Employees 14. Persons designated by Governor in Council 15. Locally engaged persons and independent contractors APPLICATION RESTRAINT MEASURES INCREASES TO RATES OF PAY 16. Increases to rates of pay EMPLOYEES REPRESENTED BY A BARGAINING AGENT 17. Increases to rates of pay — collective agreements or arbitral awards after coming into force 18. Increases to rates of pay — collective agreements and arbitral awards — December 8, 2008 until coming into force 19. Increases to rates of pay — collective agreements and arbitral awards — before December 8, 2008 20. Other than 12-month periods — section 18 21. Other than 12-month periods — section 19 22. Lower percentages not affected 23. Restructuring prohibited 24. No increases to additional remuneration — after coming into force 25. No increases to additional remuneration — December 8, 2008 until coming into force 26. No increases to additional remuneration — before December 8, 2008 27. No new additional remuneration — after coming into force 28. No new additional remuneration — December 8, 2008 to coming into force 29. No new additional remuneration — before December 8, 2008 30. Canada Border Services Agency 31. Border Services Group 32. Groups subject to national rates of pay 33. Ships’ Officers Group 34. Law Group ix NON-REPRESENTED AND EXCLUDED EMPLOYEES 35. Definitions 36. Increases to rates of pay — terms and conditions established after coming into force 37. Increases to rates of pay — terms and conditions of employment — December 8, 2008 until coming into force 38. Increases to rates of pay — terms and conditions of employment — before December 8, 2008 39. Other than 12-month periods — section 37 40. Other than 12-month periods — section 38 41. Lower percentages not affected 42. Section 16 does not create authority to increase 43. Restructuring prohibited 44. No increases to additional remuneration — after coming into force 45. No increases to additional remuneration — December 8, 2008 until coming into force 46. No increases to additional remuneration — before December 8, 2008 47. No new additional remuneration — after coming into force 48. No new additional remuneration — December 8, 2008 until coming into force 49. No new additional remuneration — before December 8, 2008 50. Canada Border Services Agency 51. Border Services Group 52. Groups subject to national rates of pay 53. Ships’ Officers Group 54. Law Group MEMBERS OF PARLIAMENT 55. Members of Parliament GENERAL 56. Inconsistent provisions 57. Compensating for restraint measures prohibited 58. Provisions compensating for restraint measures of no effect 59. No changes to performance pay plans — new collective agreements, etc. 60. No changes to performance pay plans — existing collective agreements, etc. 61. No changes to performance pay plans — existing collective agreements, etc. x 62. Royal Canadian Mounted Police ADMINISTRATION 63. Powers and duties of Treasury Board 64. Debt due to Her Majesty 65. Orders SCHEDULE 1 CROWN CORPORATIONS AND PUBLIC BODIES SCHEDULE 2 RATES OF PAY — EMPLOYEES IN THE LAW GROUP PART 11 EQUITABLE COMPENSATION PUBLIC SECTOR EQUITABLE COMPENSATION ACT 394. Enactment of Act AN ACT RESPECTING THE PROVISION OF EQUITABLE COMPENSATION IN THE PUBLIC SECTOR OF CANADA Preamble SHORT TITLE 1. Public Sector Equitable Compensation Act INTERPRETATION 2. Definitions OBLIGATION TO PROVIDE EQUITABLE COMPENSATION 3. Obligations of employers and bargaining agents 4. Equitable compensation assessment EQUITABLE COMPENSATION ASSESSMENT EMPLOYERS WITH NON-UNIONIZED EMPLOYEES OBLIGATIONS 5. Determining whether each job group is female predominant 6. Determination — no female predominant job groups 7. Determination — existence of female predominant job group 8. Implementation of plan 9. Request concerning equitable compensation — job class x COMPLAINTS 10. Failure to comply 11. Dissatisfaction with employer’s response EMPLOYERS WITH UNIONIZED EMPLOYEES OBLIGATIONS 12. Provision of statement setting out number of employees — collective agreement in force 13. Preparatory work 14. Notice describing female predominant job group 15. Report in relation to equitable compensation matters 16. Collective agreement 17. Request for arbitration 18. Obligations of arbitration body 19. Arbitral award ARBITRATION CONCILIATION 20. Request for conciliation 21. Obligations of public interest commission seized of request for conciliation RATIFICATION 22. Obligation to prepare report COMPLAINTS 23. Failure to comply 24. Lack of equitable compensation PUBLIC SERVICE LABOUR RELATIONS BOARD GENERAL 25. Application of Public Service Labour Relations Act 26. Power to extend period 27. Notice to employer and bargaining agent 28. Obligation to deal with every complaint COMPLAINTS FILED BY NON-UNIONIZED EMPLOYEES 29. Complaints under section 10 30. Complaints under section 11 xi COMPLAINTS FILED BY UNIONIZED EMPLOYEES 31. Complaints under section 23 32. Complaints under section 24 — power to require statement 33. Complaints under section 24 — power to dismiss or make orders COSTS 34. Power to require payment of costs REGULATIONS 35. Regulations PROHIBITIONS 36. Prohibition against encouraging or assisting 37. Other prohibitions — employer 38. Other prohibitions — bargaining agent 39. Complaints against employers OFFENCE AND PUNISHMENT 40. Contravention of section 37 or 38 41. Contravention of orders and certain provisions 42. Bargaining agent deemed to be person 43. Obligation to provide Board with reports 44. Obligation to keep records 45. Inconsistency or conflict 46. Application of safety or security provisions GENERAL TRANSITIONAL PROVISIONS COMPLAINTS BY NON-UNIONIZED EMPLOYEES 47. Day determined under subsection 30(4) TAKING EFFECT OF PROVISIONS IN RESPECT OF UNIONIZED EMPLOYEES 48. Application of subsection 12(1) 49. Application of subsection 12(2) and sections 13 to 22 and 24 FIRST COLLECTIVE AGREEMENT AFTER TAKING EFFECT 50. Period referred to in paragraph 33(3)(a) xi TRANSITIONAL PROVISIONS 395. Interpretation 396. Complaints before Canadian Human Rights Commission 397. Complaints before Canadian Human Rights Tribunal 398. Application 399. Canadian Human Rights Act CONSEQUENTIAL AMENDMENTS 400–405. Public Service Labour Relations Act COMING INTO FORCE 406. Order in council PART 12 COMPETITION ACT AMENDMENTS TO THE ACT 407–439. Amendments TRANSITIONAL PROVISION 440. Agreements or arrangements entered into before royal assent CONSEQUENTIAL AMENDMENTS 441. Competition Tribunal Act 442. Criminal Code 443. Shipping Conferences Exemption Act, 1987 COMING INTO FORCE 444. Sections 410, 429 and 442 PART 13 INVESTMENT CANADA ACT AMENDMENTS TO THE ACT 445–462. Amendments TRANSITIONAL PROVISIONS 463. Certain applications deemed never to have been filed 464. Transactions implemented during transitional period xi COMING INTO FORCE 465. Coming into force PART 14 CANADA TRANSPORTATION ACT AMENDMENTS TO THE ACT 466–467. Amendments COMING INTO FORCE 468. Order in council PART 15 AIR CANADA PUBLIC PARTICIPATION ACT AMENDMENTS TO THE ACT 469. Amendments 470. Articles and by-laws TRANSITIONAL PROVISIONS COMING INTO FORCE 471. Order in council SCHEDULE 1 SCHEDULE 2 SCHEDULE 3 SCHEDULE 4 SCHEDULE 5 SCHEDULE 6 SCHEDULE 7 SCHEDULE 8 SCHEDULE 9 SCHEDULE 10 SCHEDULE 11 57-58 ELIZABETH II —————— CHAPTER 2 An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures [Assented to 12th March, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Budget Implementation Act, 2009. PART 1 AMENDMENTS IN RESPECT OF INCOME TAX R.S., c. 1 (5th Supp.) INCOME TAX ACT 2. (1) Subparagraph 6(1)(g)(ii) of the Income Tax Act is replaced by the following: (ii) a return of amounts contributed to the plan by the taxpayer or a deceased employee of whom the taxpayer is an heir or legal representative, to the extent that the amounts were not deducted in computing the taxable income of the taxpayer or the deceased employee for any taxation year, or (2) Subsection (1) applies to the 2009 and subsequent taxation years. C. 2 Budget Implem 3. (1) Paragraph 7(1.4)(b) of the Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v): (vi) if the disposition is before 2013 and the old securities were equity in a SIFT wind-up entity that was at the time of the disposition a mutual fund trust, a SIFT wind-up corporation in respect of the SIFT wind-up entity (2) Subsection (1) applies after December 19, 2007. 4. (1) Subsection 12(1) of the Act is amended by adding the following after paragraph (z.4): Former TFSA (z.5) any amount required because of subsection 146.2(9) to be included in computing the taxpayer’s income for the year; and (2) The definition “investment contract” in subsection 12(11) of the Act is amended by adding the following after paragraph (d): (d.1) a TFSA, (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 5. (1) The Act is amended by adding the following after section 12.4: Definitions 12.5 (1) The definitions in this section apply for the purposes of this section and section 20.4. “base year” « année de base » “base year” of an insurer means the insurer’s taxation year that immediately precedes its transition year. “insurance business” « entreprise d’assurance » “insurance business” of an insurer, is an insurance business carried on by the insurer, other than a life insurance business. “reserve transition amount” « montant transitoire » “reserve transition amount” of an insurer, in respect of an insurance business carried on by it in Canada in its transition year, is the positive or negative amount determined by the formula A–B Exécution du b 2009 where A is the maximum amount that the insurer would be permitted to claim under paragraph 20(7)(c) (and that would be prescribed by section 1400 of the Regulations for the purpose of paragraph 20(7)(c)) as a policy reserve for its base year in respect of its insurance policies if (a) the generally accepted accounting principles that applied to the insurer in valuing its assets and liabilities for its transition year had applied to it for its base year, and (b) section 1400 of the Regulations were read in respect of the insurer’s base year as it reads in respect of its transition year; and B is the maximum amount that the insurer is permitted to claim under paragraph 20(7)(c) as a policy reserve for its base year. “transition year” « année transitoire » “transition year” of an insurer means the insurer’s first taxation year that begins after September 2006. Transition year income inclusion (2) There shall be included in computing an insurer’s income for its transition year from an insurance business carried on by it in Canada in the transition year, the positive amount, if any, of the insurer’s reserve transition amount in respect of that insurance business. Transition year income deduction reversal (3) If an amount has been deducted under subsection 20.4(2) in computing an insurer’s income for its transition year from an insurance business carried on by it in Canada, there shall be included in computing the insurer’s income, for each particular taxation year of the insurer that ends after the beginning of the transition year, from that insurance business, the amount determined by the formula A × B/1825 where C. 2 Budget Implem A is the amount deducted under subsection 20.4(2) in computing the insurer’s income for the transition year from that insurance business; and B is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year. Winding-up (4) If an insurer has, in a winding-up to which subsection 88(1) has applied, been wound-up into another corporation (referred to in this subsection as the “parent”), and immediately after the winding-up the parent carries on an insurance business, in applying subsections (3) and 20.4(3) in computing the incomes of the insurer and of the parent for particular taxation years that end on or after the first day (referred to in this subsection as the “start day”) on which assets of the insurer were distributed to the parent on the winding-up, (a) the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the insurer in respect of (i) any amount included under subsection (2) or deducted under subsection 20.4(2) in computing the insurer’s income from an insurance business for its transition year, (ii) any amount included under subsection (3) or deducted under subsection 20.4(3) in computing the insurer’s income from an insurance business for a taxation year of the insurer that begins before the start day, and (iii) any amount that would — in the absence of this subsection and if the insurer existed and carried on an insurance business on each day that is the start day or a subsequent day and on which the parent carries on an insurance business — be required to be included or deducted, in respect of any of those days, under subsection (3) or 20.4(3) in computing the insurer’s income from an insurance business; and Exécution du b (b) the insurer is, in respect of each of its particular taxation years, to determine the value for B in the formulas in subsections (3) and 20.4(3) without reference to the start day and days after the start day. Amalgamations (5) If there is an amalgamation (within the meaning assigned by subsection 87(1)) of an insurer with one or more other corporations to form one corporation (referred to in this subsection as the “new corporation”), and immediately after the amalgamation the new corporation carries on an insurance business, in applying subsections (3) and 20.4(3) in computing the new corporation’s income for particular taxation years that begin on or after the day on which the amalgamation occurred, the new corporation is, on and after that day, deemed to be the same corporation as and a continuation of the insurer in respect of (a) any amount included under subsection (2) or deducted under subsection 20.4(2) in computing the insurer’s income from an insurance business for its transition year; (b) any amount included under subsection (3) or deducted under subsection 20.4(3) in computing the insurer’s income from an insurance business for a taxation year of the insurer that begins before the day on which the amalgamation occurred; and (c) any amount that would — in the absence of this subsection and if the insurer existed and carried on an insurance business on each day that is the day on which the amalgamation occurred or a subsequent day and on which the new corporation carries on an insurance business — be required to be included or deducted, in respect of any of those days, under subsection (3) or 20.4(3) in computing the insurer’s income from an insurance business. C. 2 Application of subsection (7) (6) Subsection (7) applies if, at any time, an insurer (referred to in this subsection and subsection (7) as the “transferor”) transfers, to a corporation (referred to in this subsection and subsection (7) as the “transferee”) that is related to the transferor, property in respect of an insurance business carried on by the transferor in Canada (referred to in this subsection and subsection (7) as the “transferred business”) and Budget Implem (a) subsection 138(11.5) or (11.94) applies to the transfer; or (b) subsection 85(1) applies to the transfer, the transfer includes all or substantially all of the property and liabilities of the transferred business and, immediately after the transfer, the transferee carries on an insurance business. Transfer of insurance business (7) If this subsection applies in respect of the transfer, at any time, of property (a) the transferee is, at and after that time, deemed to be the same corporation as and a continuation of the transferor in respect of (i) any amount included under subsection (2) or deducted under subsection 20.4(2) in computing the transferor’s income for its transition year that can reasonably be attributed to the transferred business, (ii) any amount included under subsection (3) or deducted under subsection 20.4(3) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business, (iii) any amount that would — in the absence of this subsection and if the transferor existed and carried on an insurance business on each day that includes that time or is a subsequent day and on which the transferee carries on an insurance business — be required to be included or deducted, in respect of any of those days, under subsection (3) or 20.4(3) in computing the transferor’s income that can reasonably be attributed to the transferred business; and Exécution du b (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (3) or 20.4(3) to be included or deducted in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil. Ceasing to carry on business (8) If at any time an insurer ceases to carry on all or substantially all of an insurance business (referred to in this subsection as the “discontinued business”), and none of subsections (4) to (6) apply, there shall be included in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula A–B where A is the amount deducted under subsection 20.4(2) in computing the insurer’s income from the discontinued business for its transition year; and B is the total of all amounts each of which is an amount included under subsection (3) in computing the insurer’s income from the discontinued business for a taxation year that began before that time. Ceasing to exist (9) If at any time an insurer that carried on an insurance business ceases to exist (otherwise than as a result of a winding-up or amalgamation described in subsection (4) or (5)), for the purposes of subsections (8) and 20.4(4), the insurer is deemed to have ceased to carry on the insurance business at the earlier of C. 2 Budget Implem (a) the time (determined without reference to this subsection) at which the insurer ceased to carry on the insurance business, and (b) the time that is immediately before the end of the last taxation year of the insurer that ended at or before the time at which the insurer ceased to exist. (2) Subsection (1) applies to taxation years that begin after September 2006. 6. (1) Section 18.2 of the Act is repealed. (2) Subsection (1) applies in respect of interest and other borrowing costs paid or payable in respect of a period or periods that begin after 2011. 7. (1) Subsection 20(3) of the Act is replaced by the following: Borrowed money (3) For greater certainty, if a taxpayer uses borrowed money to repay money previously borrowed, or to pay an amount payable for property described in subparagraph (1)(c)(ii) previously acquired (which previously borrowed money or amount payable in respect of previously acquired property is, in this subsection, referred to as the “previous indebtedness”), subject to subsection 20.1(6), for the purposes of paragraphs (1)(c), (e) and (e.1), subsections 20.1(1) and (2), section 21 and subparagraph 95(2)(a)(ii), and for the purpose of paragraph 20(1)(k) of the Income Tax Act, Chapter 148 of the Revised Statutes of Canada, 1952, the borrowed money is deemed to be used for the purpose for which the previous indebtedness was used or incurred, or was deemed by this subsection to have been used or incurred. (2) Subsection (1) applies in respect of interest paid or payable in respect of a period or periods that begin after January 27, 2009. 8. (1) The Act is amended by adding the following after section 20.3: Definitions 20.4 (1) The definitions in section 12.5 apply for the purposes of this section. Exécution du b 2009 Transition year income deduction (2) There shall be deducted in computing an insurer’s income for its transition year from an insurance business carried on by it in Canada in the transition year the absolute value of the negative amount, if any, of the insurer’s reserve transition amount in respect of that insurance business. Transition year income inclusion reversal (3) If an amount has been included under subsection 12.5(2) in computing an insurer’s income for its transition year from an insurance business carried on by it in Canada, there shall be deducted in computing the insurer’s income, for each particular taxation year of the insurer that ends after the beginning of the transition year, from that insurance business, the amount determined by the formula A × B/1825 where A is the amount included under subsection 12.5(2) in computing the insurer’s income for the transition year from that insurance business; and B is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year. Ceasing to carry on business (4) If at any time an insurer ceases to carry on all or substantially all of an insurance business (referred to in this subsection as the “discontinued business”), and none of subsections 12.5(4) to (6) apply, there shall be deducted in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula A–B where A is any amount included under subsection 12.5(2) in computing the insurer’s income from the discontinued business for its transition year; and C. 2 Budget Implem B is the total of all amounts each of which is an amount deducted under subsection (3) in computing the insurer’s income from the discontinued business for a taxation year that began before that time. (2) Subsection (1) applies to taxation years that begin after September 2006. 9. (1) Subparagraph 39(1)(a)(ii.2) of the Act is replaced by the following: (ii.2) a property if the disposition is a disposition to which subsection 142.4(4) or (5) or 142.5(1) applies, (2) Subsection (1) applies to taxation years that begin after September 2006. 10. (1) Subsection 40(3.5) of the Act is amended by adding the following after paragraph (b): (b.1) a share of the capital stock of a SIFT wind-up corporation in respect of a SIFT wind-up entity is, if the share was acquired before 2013, deemed to be a property that is identical to equity in the SIFT wind-up entity; (2) Section 40 of the Act is amended by adding the following after subsection (9): Application (10) Subsection (11) applies in computing at any particular time a corporation’s gain or loss (in this subsection and subsection (11) referred to as the “new gain” or “new loss”, as the case may be), in respect of any part (which in this subsection and subsection (11) is referred to as the “relevant part” and which may for greater certainty be the whole) of a foreign currency debt of the corporation, arising from a fluctuation in the value of the currency of the foreign currency debt (other than, for greater certainty, a gain or a capital loss that arises because of the application of subsection 111(12)), if at any time before the particular time the corporation realized a capital loss or gain in respect of the foreign currency debt because of subsection 111(12). Exécution du b 2009 Gain or loss on foreign currency debt (11) If this subsection applies, the new gain is the positive amount, or the new loss is the negative amount, as the case may be, determined by the formula A+B–C where A is (a) if the corporation would, but for any application of subsection 111(12), recognize a new gain, the amount of the new gain, determined without reference to this subsection, or (b) if the corporation would, but for any application of subsection 111(12), recognize a new loss, the amount of the new loss, determined without reference to this subsection, multiplied by (-1); B is the total of all amounts each of which is that portion of the amount of a capital loss realized by the corporation at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to (a) the relevant part of the foreign currency debt at the particular time, or (b) the forgiven amount, if any, (within the meaning assigned by subsection 80(1)) in respect of the foreign currency debt at the particular time; and C is the total of all amounts each of which is that portion of the amount of a gain realized by the corporation at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to (a) the relevant part of the foreign currency debt at the particular time, or (b) the forgiven amount, if any, (within the meaning assigned by subsection 80(1)) in respect of the foreign currency debt at the particular time. (3) Subsection (1) applies to dispositions that occur on or after November 28, 2008. C. 2 Budget Implem (4) Subsection (2) applies after 2005. 11. (1) Paragraph 53(1)(e) of the Act is amended by adding “and” at the end of subparagraph (xii), by striking out “and” at the end of subparagraph (xiii) and by repealing subparagraph (xiv). (2) Paragraph 53(2)(c) of the Act is amended by adding “and” at the end of subparagraph (xi), by striking out “and” at the end of subparagraph (xii) and by repealing subparagraph (xiii). (3) Subsections (1) and (2) apply after 2011. 12. (1) Paragraph (c) of the definition “superficial loss” in section 54 of the Act is replaced by the following: (c) a disposition deemed to have been made by paragraph 33.1(11)(a), subsection 45(1), section 48 as it read in its application before 1993, section 50 or 70, subsection 104(4), section 128.1, paragraph 132.2(1)(f), subsection 138(11.3) or 142.5(2), section 142.6, or any of subsections 144(4.1) and (4.2) and 149(10), (2) The portion of the definition “superficial loss” in section 54 of the Act after paragraph (h) is replaced by the following: and, for the purpose of this definition, (i) a right to acquire a property (other than a right, as security only, derived from a mortgage, hypothec, agreement for sale or similar obligation) is deemed to be a property that is identical to the property, and (j) a share of the capital stock of a SIFT wind-up corporation in respect of a SIFT wind-up entity is, if the share was acquired before 2013, deemed to be a property that is identical to equity in the SIFT wind-up entity. (3) Subsection (1) applies to taxation years that begin after September 2006. (4) Subsection (2) applies to dispositions that occur after February 2, 2009. Exécution du b 13. (1) Paragraph 56(1)(d) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) received out of or under an annuity contract issued or effected as a TFSA; (2) Paragraph 56(1)(r) of the Act is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after subparagraph (iii): (iv) financial assistance provided under a program established by a government, or government agency, in Canada that provides income replacement benefits similar to income replacement benefits provided under a program established under the Employment Insurance Act, or (v) amounts received by the taxpayer in the year under the Wage Earner Protection Program Act in respect of wages (within the meaning of that Act); (3) Subsection (1) applies to the 2009 and subsequent taxation years. (4) Subsection (2) applies to the 2003 and subsequent taxation years except that, in its application to the 2003 to 2007 taxation years, paragraph 56(1)(r) of the Act, as amended by subsection (2), is to be read without reference to its subparagraph (v). 14. (1) Paragraph 60(i) of the Act is replaced by the following: Premium or payment under RRSP or RRIF (i) any amount that is deductible under section 146 or 146.3 or subsection 147.3(13.1) in computing the income of the taxpayer for the year; (2) Subsection (1) applies in respect of a registered retirement income fund in respect of which the last payment out of the fund is made after 2008. 15. (1) The Act is amended by adding the following after section 60.02: C. 2 Additions to clause 60(l)(v)(B.2) for 2008 60.021 (1) In determining the amount that may be deducted because of paragraph 60(l) in computing a taxpayer’s income for the 2008 taxation year, clause 60(l)(v)(B.2) shall be read as follows: Budget Implem (B.2) the total of all amounts each of which is (I) the taxpayer’s eligible amount (within the meaning assigned by subsection 146.3(6.11)) for the year in respect of a registered retirement income fund, (II) the taxpayer’s eligible RRIF withdrawal amount (within the meaning assigned by subsection 60.021(2)) for the year in respect of a registered retirement income fund, or (III) the taxpayer’s eligible variable benefit withdrawal amount (within the meaning assigned by subsection 60.021(3)) for the year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan, Meaning of eligible RRIF withdrawal amount (2) A taxpayer’s eligible RRIF withdrawal amount for a taxation year in respect of a registered retirement income fund under which the taxpayer is the annuitant at the beginning of the taxation year is (a) except where paragraph (b) applies, the amount determined by the formula A–B where A is the lesser of (i) the total of all amounts included, because of subsection 146.3(5), in computing the income of the taxpayer for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or to a registered retirement savings plan), and Exécution du b (ii) the amount that would, in the absence of subsection 146.3(1.1), be the minimum amount under the fund for the taxation year, and B is the minimum amount under the fund for the taxation year; and (b) if the taxpayer attained 70 years of age in 2007, nil. Meaning of eligible variable benefit withdrawal amount (3) A taxpayer’s eligible variable benefit withdrawal amount for a taxation year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan is the amount determined by the formula A–B–C where A is the lesser of (a) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs 8506(1)(a) to (e) of the Regulations) paid from the plan in the taxation year in respect of the account and included, because of paragraph 56(1)(a), in computing the taxpayer’s income for the taxation year, and (b) the amount that would, in the absence of paragraph 8506(7)(b) of the Regulations, be the minimum amount for the account for the taxation year; B is the minimum amount for the account for the taxation year; and C is the total of all contributions made by the taxpayer under the provision and designated for the purposes of subsection 8506(10) of the Regulations. Expressions used in this section (4) For the purposes of this section, (a) the term “money purchase provision” has the meaning assigned by subsection 147.1(1); (b) the term “retirement benefit” has the meaning assigned by subsection 8500(1) of the Regulations; and C. 2 Budget Implem (c) the minimum amount for an account of a taxpayer under a money purchase provision of a registered pension plan is the amount determined in accordance with subsection 8506(5) of the Regulations. (2) Amounts paid by a taxpayer, to a registered retirement savings plan or registered retirement income fund under which the taxpayer is the annuitant, during the period that begins on March 2, 2009 and that ends on the day that is 30 days after the day on which this Act is assented to, are deemed for the purpose of paragraph 60(l) of the Act to have been made on March 1, 2009, and not when they were actually made, except that the amounts so deemed shall not exceed the total of all amounts each of which is (a) the taxpayer’s eligible RRIF withdrawal amount for 2008 in respect of a registered retirement income fund, or (b) the taxpayer’s eligible variable benefit withdrawal amount for 2008 in respect of an account of the taxpayer under a money purchase provision of a registered pension plan. 16. (1) Subparagraph 62(1)(c)(i) of the Act is replaced by the following: (i) in any case described in subparagraph (a)(i) of the definition “eligible relocation” in subsection 248(1), the total of all amounts, each of which is an amount included in computing the taxpayer’s income for the taxation year from the taxpayer’s employment at a new work location or from carrying on the business at the new work location, or because of subparagraph 56(1)(r)(v) in respect of the taxpayer’s employment at the new work location, and (2) Subsection (1) applies to the 2008 and subsequent taxation years. 17. (1) Section 80.01 of the Act is amended by adding the following after subsection (5): Exécution du b 2009 Deemed settlement on SIFT trust windup event (5.1) If a trust that is a SIFT wind-up entity is the only beneficiary under another trust (in this subsection referred to as the “subsidiary trust”), and a capital property that is a debt or other obligation (in this subsection referred to as the “subsidiary trust’s obligation”) of the subsidiary trust to pay an amount to the SIFT wind-up entity is, as a consequence of a distribution from the subsidiary trust that is a SIFT trust wind-up event, settled at a particular time without any payment of an amount or by the payment of an amount that is less than the principal amount of the subsidiary trust’s obligation (a) paragraph (b) applies if (i) the payment is less than the amount that would have been the adjusted cost base to the SIFT wind-up entity of the subsidiary trust’s obligation immediately before the particular time, and (ii) the SIFT wind-up entity elects, in prescribed form on or before the SIFT wind-up entity’s filing-due date for the taxation year that includes the particular time, to have paragraph (b) apply; (b) if this paragraph applies, the amount paid at the particular time in satisfaction of the principal amount of the subsidiary trust’s obligation is deemed to be equal to the amount that would be the adjusted cost base to the SIFT wind-up entity of the subsidiary trust’s obligation immediately before the particular time if that adjusted cost base included amounts added in computing the SIFT wind-up entity’s income in respect of the portion of the indebtedness representing unpaid interest, to the extent that the SIFT wind-up entity has not deducted any amounts as bad debts in respect of that unpaid interest; and (c) for the purposes of applying section 80 to the subsidiary trust’s obligation, the subsidiary trust’s obligation is deemed to have been settled immediately before the time that is immediately before the distribution. (2) Subsection (1) applies after July 14, 2008. C. 2 Budget Implem 18. (1) Section 85.1 of the Act is amended by adding the following after subsection (6): Application of subsection (8) (7) Subsection (8) applies in respect of the disposition before 2013 by a taxpayer of SIFT wind-up entity equity (referred to subsection (8) as the “particular unit”) to a taxable Canadian corporation if (a) the disposition occurs during a period (referred to in this subsection and subsection (8) as the “exchange period”) of no more than 60 days at the end of which all of the equity in the SIFT wind-up entity is owned by the corporation; (b) the taxpayer receives no consideration for the disposition other than a share (referred to in this subsection and subsection (8) as the “exchange share”) of the capital stock of the corporation that is issued during the exchange period to the taxpayer by the corporation; (c) neither of subsections 85(1) and (2) applies to the disposition; and (d) all of the exchange shares issued to holders of equity in the SIFT wind-up entity are shares of a single class of the capital stock of the corporation. Rollover on SIFT unit for share exchange (8) If this subsection applies in respect of a disposition by a taxpayer of a particular unit of a SIFT wind-up entity to a corporation for consideration that is an exchange share, the following rules apply: (a) the taxpayer’s proceeds of disposition of the particular unit, and cost of the exchange share, are deemed to be equal to the cost amount to the taxpayer of the particular unit immediately before the disposition; (b) if the particular unit was immediately before the disposition taxable Canadian property of the taxpayer, the exchange share is deemed to be taxable Canadian property of the taxpayer; (c) if the exchange share’s fair market value immediately after the disposition exceeds the particular unit’s fair market value at the time Exécution du b of the disposition, the excess is deemed to be an amount that section 15 requires to be included in computing the taxpayer’s income for the taxpayer’s taxation year in which the disposition occurs; (d) if the particular unit’s fair market value at the time of the disposition exceeds the exchange share’s fair market value immediately after the disposition, and it is reasonable to regard any part of the excess as a benefit that the taxpayer desired to have conferred on a person, or partnership, with whom the taxpayer does not deal at arm’s length, the excess is deemed to be an amount that section 15 requires to be included in computing the taxpayer’s income for the taxpayer’s taxation year in which the disposition occurs; (e) the cost to the corporation of the particular unit is deemed to be the lesser of (i) the fair market value of the particular unit immediately before the disposition, and (ii) the amount determined for B in the formula in paragraph (f) in respect of the particular unit; and (f) in computing the paid up capital in respect of each class of shares of the capital stock of the corporation at any time after the disposition there shall be deducted the amount determined by the formula (A – B) × C/A where A is the increase, if any, as a result of the disposition, in the paid-up capital in respect of all the shares of the capital stock of the corporation, computed without reference to this paragraph as it applies to the disposition, B is the amount determined by the formula D–E where D is C. 2 Budget Implem (i) unless subparagraph (ii) applies, the total of all amounts each of which is (A) if the SIFT wind-up entity is a trust, the fair market value of property received by the SIFT wind-up entity on the issuance of the particular unit, or (B) if the SIFT wind-up entity is a partnership, (I) an amount that has at any time been added, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(1)(e)(iv) or (x), or (II) an amount that would at any time have been added, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(1)(e)(i) if subsection 96(1) were read without reference to its paragraph (d) and the partnership deducted all amounts otherwise deductible because of that paragraph, and (ii) if the SIFT wind-up entity has on or after the end of the exchange period issued a unit, nil, and E is the total of all amounts each of which (i) if the SIFT wind-up entity is a trust, has become payable by the SIFT wind-up entity, in respect of the particular unit, to any holder of the unit on or before the disposition, other than an amount that has become payable out of its income (determined without reference to subsection 104(6)) or capital gains, and (ii) if the SIFT wind-up entity is a partnership, Exécution du b (A) has at any time been deducted, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(2)(c)(iv) or (v), or (B) would have at any time been deducted, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(2)(c)(i) if subsection 96(1) were read without reference to its paragraph (d) and the partnership deducted all amounts otherwise deductible because of that paragraph, and C is the increase, if any, as a result of the disposition, in the paid-up capital in respect of the class of shares, computed without reference to this paragraph as it applies to the disposition. (2) Subsection (1) applies to (a) dispositions that occur on or after July 14, 2008; and (b) a disposition, by a taxpayer to a corporation, that occurs on or after December 20, 2007 and before July 14, 2008, if the corporation (jointly with the taxpayer, if the taxpayer and the corporation have validly elected that subsection 85(1) or (2) of the Act apply to the disposition) elects in writing, filed with the Minister of National Revenue on or before the corporation’s filing-due date for C. 2 Budget Implem its taxation year that includes the day on which this Act is assented to, that this subsection apply to the disposition. 19. (1) Paragraph 87(2)(g.2) of the Act is replaced by the following: Financial institution rules (g.2) for the purposes of paragraphs 142.4(4)(c) and (d) and subsections 142.5(5) and (7), 142.51(11) and 142.6(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Subsection 87(2) of the Act is amended by adding the following after paragraph (s): Deemed SIFT wind-up corporation (s.1) if a predecessor corporation was a SIFT wind-up corporation immediately before the amalgamation, the new corporation is deemed to be a SIFT wind-up corporation; (3) Subsection 87(2.2) of the Act is replaced by the following: Amalgamation of insurers (2.2) Where there has been an amalgamation and one or more of the predecessor corporations was an insurer, the new corporation is, notwithstanding subsection (2), deemed, for the purposes of paragraphs 12(1)(d), (e), (e.1), (i) and (s), subsection 12.5(8), paragraphs 20(1)(l), (l.1), (p) and (jj) and 20(7)(c), subsections 20(22) and 20.4(4), sections 138, 138.1, 140, 142 and 148 and Part XII.3, to be the same corporation as, and a continuation of, each of those predecessor corporations. (4) Subsections (1) and (3) apply to taxation years that begin after September 2006. (5) Subsection (2) applies after December 19, 2007. 20. (1) Subparagraph 88(1)(g)(i) of the Act is replaced by the following: (i) for the purposes of paragraphs 12(1)(d), (e), (e.1), (i) and (s), subsection 12.5(8), paragraphs 20(1)(l), (l.1), (p) and (jj) and 20(7)(c), subsections 20(22) and 20.4(4), sections 138, 138.1, 140, 142 and 148 and Exécution du b Part XII.3, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary, and (2) Subsection (1) applies to taxation years that begin after September 2006. 21. (1) The Act is amended by adding the following after section 88: Application 88.1 (1) Subsection (2) applies to a trust’s distribution of property to a taxpayer if (a) the distribution is a SIFT trust wind-up event; (b) the trust is (i) a SIFT wind-up entity whose only beneficiary, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, is a taxable Canadian corporation, or (ii) a trust whose only beneficiary, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, is another trust described by subparagraph (i); (c) where the trust is a SIFT wind-up entity, the distribution occurs no more than 60 days after the earlier of (i) the first SIFT trust wind-up event of the trust, and (ii) the first distribution to the trust that is a SIFT trust wind-up event of another trust; and (d) if the property is shares of the capital stock of a taxable Canadian corporation, (i) the property was not acquired by the trust on a distribution to which subsection 107(3.1) applies, and (ii) the trust elects in writing, filed with the Minister on or before the trust’s filing-due date for its taxation year that includes the time of the distribution, that this section apply to the distribution. C. 2 SIFT trust windup event (2) If this subsection applies to a trust’s distribution of property to a taxpayer, subsections 88(1) to (1.7), and section 87 and paragraphs 256(7)(a) to (e) as they apply for the purposes of those subsections, apply, with any modifications that the circumstances require, as if Budget Implem (a) the trust were a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) that is not a private corporation; (b) where the taxpayer is a SIFT wind-up entity, the taxpayer were a taxable Canadian corporation that is not a private corporation; (c) the distribution were a winding-up of the subsidiary; (d) the taxpayer’s interest as a beneficiary under the trust were shares of a single class of shares of the capital stock of the subsidiary owned by the taxpayer; (e) paragraph 88(1)(b) deemed the taxpayer’s proceeds of disposition of the shares described in paragraph (d) and owned by the taxpayer immediately before the distribution to be equal to the adjusted cost base to the taxpayer of the taxpayer’s interest as a beneficiary under the trust immediately before the distribution; (f) each trust, a majority-interest beneficiary (in this subsection, within the meaning assigned by section 251.1) of which is another trust that is by operation of this subsection treated as if it were a corporation, were a corporation; and (g) except for the purposes of subsections 88(1.1) and (1.2), the taxpayer last acquired control of the subsidiary and of each corporation (including a trust that is by operation of this subsection treated as if it were a corporation) controlled by the subsidiary at the time, if any, at which the taxpayer last became a majority-interest beneficiary of the trust. Exécution du b (2) Subsection (1) applies after July 14, 2008, except that subsection 88.1(1) of the Act, as enacted by subsection (1), is to be read without reference to its paragraph (c) in its application to a trust’s distribution of property, if the distribution occurs no more than 60 days after the day on which this Act is assented to. 22. (1) The definition “general rate income pool” in subsection 89(1) of the Act is replaced by the following: “general rate income pool” « compte de revenu à taux général » “general rate income pool” at the end of a particular taxation year, of a taxable Canadian corporation that is a Canadian-controlled private corporation or a deposit insurance corporation in the particular taxation year, is the positive or negative amount determined by the formula A–B where A is the positive or negative amount that would, before taking into consideration the specified future tax consequences for the particular taxation year, be determined by the formula C+D+E+F–G where C is the corporation’s general rate income pool at the end of its preceding taxation year, D is the amount, if any, that is the product of the corporation’s general rate factor for the particular taxation year multiplied by its adjusted taxable income for the particular taxation year, E is the total of all amounts each of which is (a) an eligible dividend received by the corporation in the particular taxation year, or (b) an amount deductible under section 113 in computing the taxable income of the corporation for the particular taxation year, C. 2 Budget Implem F is the total of all amounts determined under subsections (4) to (6) in respect of the corporation for the particular taxation year, and G is (a) unless paragraph (b) applies, the amount, if any, by which (i) the total of all amounts each of which is the amount of an eligible dividend paid by the corporation in its preceding taxation year exceeds (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year, or (b) if subsection (4) applies to the corporation in the particular taxation year, nil, and B is the amount determined by the formula H × (I – J) where H is the corporation’s general rate factor for the particular taxation year, I is the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for the corporation’s preceding three taxation years, determined without taking into consideration the specified future tax consequences, for those preceding taxation years, that arise in respect of the particular taxation year, and J is the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for those preceding taxation years; Exécution du b (2) Subparagraph (b)(iii) of the definition “paid-up capital” in subsection 89(1) of the Act is replaced by the following: (iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), 128.1(2) and (3), 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and section 212.1, (3) Subsection 89(1) of the Act is amended by adding the following in alphabetical order: “adjusted taxable income” « revenu imposable rajusté » “adjusted taxable income” of a corporation for a taxation year is the amount determined by the formula A–B–C where A is (a) unless paragraph (b) applies, the corporation’s taxable income for the taxation year, and (b) if the corporation is a deposit insurance corporation in the taxation year, nil, B is the amount determined by multiplying the amount, if any, deducted by the corporation under subsection 125(1) for the taxation year by the quotient obtained by dividing 100 by the rate of the deduction provided under that subsection for the taxation year, and C is (a) if the corporation is a Canadiancontrolled private corporation in the taxation year, the lesser of the corporation’s aggregate investment income for the taxation year and the corporation’s taxable income for the taxation year, and (b) in any other case, nil; C. 2 “general rate factor” « facteur du taux géneral » “general rate factor” of a corporation for a taxation year is the total of Budget Implem (a) that proportion of 0.68 that the number of days in the taxation year that are before 2010 is of the number of days in the taxation year, (b) that proportion of 0.69 that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year, (c) that proportion of 0.70 that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and (d) that proportion of 0.72 that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year; (4) Subsections (1) and (3) apply to the 2006 and subsequent taxation years. (5) Subsection (2) applies after December 19, 2007. 23. (1) Subsections 91(5.1) to (5.3) of the Act are repealed. (2) Subsection (1) applies after 2011. 24. (1) Subsection 92(1) of the Act is replaced by the following: Adjusted cost base of share of foreign affiliate 92. (1) In computing, at any time in a taxation year, the adjusted cost base to a taxpayer resident in Canada of any share owned by the taxpayer of the capital stock of a foreign affiliate of the taxpayer, (a) there shall be added in respect of that share any amount included in respect of that share under subsection 91(1) or (3) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been required to have been so included in computing the taxpayer’s income but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952); and Exécution du b (b) there shall be deducted in respect of that share (i) any amount deducted by the taxpayer under subsection 91(2) or (4), and (ii) any dividend received by the taxpayer before that time, to the extent of the amount deducted by the taxpayer, in respect of the dividend, under subsection 91(5) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been deductible by the taxpayer but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952). (2) Subsection (1) applies after 2011. 25. (1) Subsection 95(1) of the Act is amended by adding the following in alphabetical order: “antecedent corporation” « société antécédente » “antecedent corporation” of a particular corporation means (a) a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation to which subsection 87(11) applied and by which the particular corporation was formed, (b) a predecessor corporation (within the meaning of subsection 87(1)) of the corporation (referred to in this definition as the “first amalco”) that was formed on an amalgamation of the predecessor corporation and another corporation, where (i) shares of the capital stock of the predecessor corporation that were not owned by the other corporation, or by a corporation of which the other corporation is a subsidiary wholly-owned corporation, were exchanged on the amalgamation for C. 2 Budget Implem shares of the capital stock of the first amalco that were, during the series of transactions or events that includes the amalgamation, redeemed, acquired or cancelled by the first amalco for money, (ii) the first amalco was a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation to which subsection 87(11) applied and by which the particular corporation was formed, and (iii) the amalgamation referred to in subparagraph (i) occurred in a series of transactions or events that included the amalgamation referred to in subparagraph (ii), (c) a corporation that was wound-up into the particular corporation in a winding-up to which subsection 88(1) applied, or (d) an antecedent corporation of an antecedent corporation of the particular corporation; “calculating currency” « monnaie de calcul » “calculating currency” for a taxation year of a foreign affiliate of a taxpayer means (a) the currency of the country in which the foreign affiliate is resident at the end of the taxation year, or (b) any currency that the taxpayer demonstrates to be reasonable in the circumstances; “designated acquired corporation” « société acquise désignée » “designated acquired corporation” of a taxpayer means a particular antecedent corporation of the taxpayer if (a) the taxpayer or another antecedent corporation of the taxpayer acquired control of (i) the particular antecedent corporation, or (ii) a corporation (referred to in this definition as a “successor corporation”) of which the particular antecedent corporation is an antecedent corporation, and (b) immediately before the acquisition of control or a series of transactions or events that includes the acquisition of control, the taxpayer, the other antecedent corporation or a corporation resident in Canada of which the taxpayer or the other antecedent corporation Exécution du b is a subsidiary wholly-owned corporation, as the case may be, dealt at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b)) with the particular antecedent corporation or the successor corporation, as the case may be; “specified person or partnership” « personne ou société de personnes déterminée » “specified person or partnership”, in respect of a taxpayer, at any time means the taxpayer or a person (other than a designated acquired corporation of the taxpayer), or a partnership, that is at that time (a) a person (other than a partnership) that is resident in Canada and does not, at that time, deal at arm’s length with the taxpayer, (b) a specified predecessor corporation of the taxpayer or of a specified person or partnership in respect of the taxpayer, (c) a foreign affiliate of (i) the taxpayer, (ii) a person that is at that time a specified person or partnership in respect of the taxpayer under this definition because of paragraph (a) or (b), or (iii) a partnership that is at that time a specified person or partnership in respect of the taxpayer under this definition because of paragraph (d), or (d) a partnership a member of which is at that time a specified person or partnership in respect of the taxpayer under this definition; “specified predecessor corporation” « société remplacée déterminée » “specified predecessor corporation” of a particular corporation means (a) an antecedent corporation of the particular corporation, (b) a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation by which the particular corporation was formed, or (c) a specified predecessor corporation of a specified predecessor corporation of the particular corporation; C. 2 Budget Implem (2) Paragraph 95(2)(f) of the Act is replaced by the following: (f) except as otherwise provided in this subdivision and except to the extent that the context otherwise requires, a foreign affiliate of a taxpayer is deemed to be at all times resident in Canada for the purposes of determining, in respect of the taxpayer for a taxation year of the foreign affiliate, each amount that is the foreign affiliate’s (i) capital gain, capital loss, taxable capital gain or allowable capital loss from a disposition of a property, or (ii) income or loss from a property, from a business other than an active business or from a non-qualifying business; (f.1) in computing an amount described in paragraph (f) in respect of a property or a business, there is not to be included any portion of that amount that can reasonably be considered to have accrued, in respect of the property (including for the purposes of this paragraph any property for which the property was substituted) or the business, while no person or partnership that held the property or carried on the business was a specified person or partnership in respect of the taxpayer referred to in paragraph (f); (f.11) in determining an amount described in paragraph (f) for a taxation year of a foreign affiliate of a taxpayer, (i) if the amount is described in subparagraph (f)(i), this Act is to be read without reference to section 26 of the Income Tax Application Rules, and (ii) if the amount is described in subparagraph (f)(ii), (A) this Act is to be read without reference to subsections 14(1.01) to (1.03), 17(1) and 18(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied Exécution du b to determine the foreign affiliate’s share of that income or loss of the partnership, and (B) if the foreign affiliate has, in the taxation year, disposed of a foreign resource property in respect of a country, it is deemed to have designated, in respect of the disposition and in accordance with subparagraph 59(1)(b)(ii) for the taxation year, the amount, if any, by which (I) the amount determined under paragraph 59(1)(a) in respect of the disposition exceeds (II) the amount determined under subparagraph 59(1)(b)(i) in respect of the disposition; (f.12) a foreign affiliate of a taxpayer shall determine each of the following amounts using its calculating currency for a taxation year: (i) subject to paragraph (f.13), each capital gain, capital loss, taxable capital gain and allowable capital loss of the foreign affiliate for the taxation year from the disposition, at any time, of a property that, at that time, was an excluded property of the foreign affiliate, (ii) its income or loss for the taxation year from each active business carried on by it in the taxation year in a country, and (iii) its income or loss that is included in computing its income or loss from an active business for the taxation year because of paragraph (a); (f.13) where the calculating currency of a foreign affiliate of a taxpayer is a currency other than Canadian currency, the foreign affiliate shall determine the amount included in computing its foreign accrual property income, in respect of the taxpayer for a taxation year of the foreign affiliate, attributable to its capital gain or taxable capital gain, from the disposition of an excluded property in the taxation year, in Canadian currency by C. 2 Budget Implem converting the amount of the capital gain, or taxable capital gain, otherwise determined under subparagraph (f.12)(i) using its calculating currency for the taxation year into Canadian currency using the rate of exchange quoted by the Bank of Canada at noon on the day on which the disposition was made; (f.14) a foreign affiliate of a taxpayer shall determine using Canadian currency each amount of its income, loss, capital gain, capital loss, taxable capital gain or allowable capital loss for a taxation year, other than an amount to which paragraph (f.12) or (f.13) applies; (f.15) for the purpose of applying subparagraph (f.12)(i), the reference in subsection 39(2) to “the currency or currencies of one or more countries other than Canada relative to Canadian currency” is to be read as a reference to “one or more currencies other than the calculating currency relative to the calculating currency” and the references in that subsection to “of a country other than Canada” are to be read as references to “other than the calculating currency”; (3) The portion of subsection 95(2.2) of the Act before paragraph (a) is replaced by the following: Qualifying interest throughout year (2.2) For the purposes of paragraphs (2)(a) and (g), a non-resident corporation that is not a foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout a particular taxation year is deemed to be a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout that particular taxation year if (4) Section 95 of the Act is amended by adding the following after subsection (2.2): 2009 Controlled foreign affiliate throughout year Exécution du b (2.201) For the purposes of paragraphs (2)(a) and (g), a non-resident corporation is deemed to be a controlled foreign affiliate of a taxpayer throughout a taxation year of the non-resident corporation if (a) in the taxation year, a person or partnership acquires or disposes of shares of the capital stock of a corporation and, because of the acquisition or disposition, the non-resident corporation becomes or ceases to be a controlled foreign affiliate of the taxpayer; and (b) at either or both of the beginning and end of the taxation year, the non-resident corporation is a controlled foreign affiliate of the taxpayer. (5) Section 95 of the Act is amended by adding the following after subsection (2.5): Rule for the definition “specified person or partnership” (2.6) For the purposes of paragraphs (a) to (d) of the definition “specified person or partnership” in subsection (1), if a person or partnership (referred to in this subsection as the “taxpayer”) is not dealing at arm’s length with another person or partnership (referred to in this subsection as the “particular person”) at a particular time, the taxpayer is deemed to have existed and not to have dealt at arm’s length with the particular person, nor with each specified predecessor corporation of the particular person, throughout the period that began when the particular person or the specified predecessor corporation, as the case may be, came into existence and that ends at the particular time. (6) Subsections (1), (2) and (5) apply to taxation years of a foreign affiliate of a taxpayer that begin after October 2, 2007. However, (a) for taxation years of a foreign affiliate that begin before 2009, subparagraph 95(2)(f)(ii) of the Act, as enacted by subsection (2), shall be read as follows: (ii) income or loss from a property or from a business other than an active business; C. 2 Budget Implem (b) if the taxpayer elects in writing in respect of all of its foreign affiliates and files the election with the Minister of National Revenue on or before the day (referred to in this subsection as the taxpayer’s “election day”) that is the later of the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to and the day that is one year after the day on which this Act is assented to, subsection 95(2.6) of the Act, as enacted by subsection (5), shall, in its application to a taxation year of a foreign affiliate of the taxpayer that begins after October 2, 2007 and before July 14, 2008, be read as follows: (2.6) For the purposes of paragraphs (a) to (d) of the definition “specified person or partnership” in subsection (1), in determining whether, at a particular time, a person was not, at a time (referred to in this subsection as the “prior time”) that is before the particular time and at which that person did not exist, dealing at arm’s length with another person, where the person exists at the particular time but did not exist at the prior time (a) the person is deemed to exist at the prior time; and (b) where the person is related to another person at the particular time, the person is deemed to have been related to that other person at the prior time. (c) if the taxpayer elects in writing in respect of all of its foreign affiliates and files the election with the Minister of National Revenue on or before the taxpayer’s election day, subsections (1), (2) and (5) also apply to taxation years of a foreign affiliate of the taxpayer that begin before October 2, 2007 and after the date chosen by the taxpayer under Exécution du b paragraph (d), except that subparagraph 95(2)(f)(ii) of the Act, as enacted by subsection (2), shall be read in its application to those taxation years in the manner described in paragraph (a); and (d) to be valid, an election under paragraph (c) must include the identification by the taxpayer of its choice of one of the following dates: (i) December 31, 1994, (ii) December 20, 2002, or (iii) February 27, 2004. (7) Subsection (3) applies to taxation years of a foreign affiliate of a taxpayer that begin after 1994. However, the portion of subsection 95(2.2) of the Act before paragraph (a), as enacted by subsection (3), shall, in its application to taxation years of a foreign affiliate that begin after 1994 and before 2009, be read as follows: (2.2) For the purposes of paragraphs (2)(a) and (g), (8) Subsection (4) applies to taxation years of a foreign affiliate of a taxpayer that end after 1999. However, (a) subject to paragraph (b), for taxation years of a foreign affiliate that begin before December 21, 2002, the reference to “for the purposes of paragraphs (2)(a) and (g)” in subsection 95(2.201) of the Act, as enacted by subsection (4), shall be read as a reference to “for the purpose of paragraph (2)(a)”; and (b) if the taxpayer has made a valid election under subsection 26(46) of the Budget and Economic Statement Implementation Act, 2007, subsection (4) applies to taxation years of a foreign affiliate of the taxpayer that begin after 1994. (9) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest and penalties payable under the C. 2 Budget Implem Act for any taxation year shall be made that is necessary to take into account the provisions of subsections (1) to (8). 26. (1) The portion of subsection 107(2) of the Act before paragraph (a) is replaced by the following: Distribution by personal trust (2) Subject to subsections (2.001), (2.002) and (4) to (5), if at any time a property of a personal trust or a prescribed trust is distributed (otherwise than as a SIFT trust wind-up event) by the trust to a taxpayer who was a beneficiary under the trust and there is a resulting disposition of all or any part of the taxpayer’s capital interest in the trust, (2) The portion of subsection 107(2.1) of the Act before paragraph (a) is replaced by the following: Other distributions (2.1) Where at any time a property of a trust is distributed by the trust to a beneficiary under the trust, there would, if this Act were read without reference to paragraphs (h) and (i) of the definition “disposition” in subsection 248(1), be a resulting disposition of all or any part of the beneficiary’s capital interest in the trust (which interest or part, as the case may be, is in this subsection referred to as the “former interest”) and the rules in subsections (2) and (3.1) and sections 88.1 and 132.2 do not apply in respect of the distribution, (3) Section 107 of the Act is amended by adding the following after subsection (2.2): Application of subsection (3.1) (3) Subsection (3.1) applies to a trust’s distribution of property to a taxpayer if (a) the distribution is a SIFT trust wind-up event to which section 88.1 does not apply; (b) the property is a share and the only shares distributed on any SIFT trust wind-up event of the trust are of a single class of the capital stock of a taxable Canadian corporation; and Exécution du b (c) where the trust is a SIFT wind-up entity, the distribution occurs no more than 60 days after the earlier of (i) the first SIFT trust wind-up event of the trust, and (ii) the first distribution to the trust that is a SIFT trust wind-up event of another trust. SIFT trust windup event (3.1) If this subsection applies to a trust’s distribution of property, the following rules apply: (a) the trust is deemed to have disposed of the property for proceeds of disposition equal to the adjusted cost base to the trust of the property immediately before the distribution; (b) the taxpayer is deemed to have disposed of the taxpayer’s interest as a beneficiary under the trust for proceeds of disposition equal to the cost amount to the taxpayer of the interest immediately before the distribution; (c) the taxpayer is deemed to have acquired the property at a cost equal to (i) if, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, the taxpayer is the only beneficiary under the trust and is a SIFT wind-up entity or a taxable Canadian corporation, the adjusted cost base to the trust of the property immediately before the distribution, and (ii) in any other case, the cost amount to the taxpayer of the taxpayer’s interest as a beneficiary under the trust immediately before the distribution; C. 2 Budget Implem (d) if the taxpayer’s interest as a beneficiary under the trust was immediately before the disposition taxable Canadian property of the taxpayer, the property is deemed to be taxable Canadian property of the taxpayer; and (e) if a liability of the trust becomes as a consequence of the distribution a liability of the corporation described in paragraph (3)(b) in respect of the distribution, and the amount payable by the corporation on the maturity of the liability is the same as the amount that would have been payable by the trust on its maturity, (i) the transfer of the liability by the trust to the corporation is deemed not to have occurred, and (ii) the liability is deemed (A) to have been incurred or issued by the corporation at the time at which, and under the agreement under which, it was incurred or issued by the trust, and (B) not to have been incurred or issued by the trust. (4) Subsections (1) to (3) apply after July 14, 2008, except that (a) paragraph 107(3)(b) of the Act, as enacted by subsection (3), is to be read without reference to “of a single class” in its application to a trust’s distribution of property before February 3, 2009; and (b) subsection 107(3) of the Act, as enacted by subsection (3), is to be read without reference to its paragraph (c) in its application to a trust’s distribution of property, if the distribution occurs no more than 60 days after the day on which this Act is assented to. 27. (1) Paragraph 107.4(3)(f) of the Act is replaced by the following: (f) if the property was deemed to be taxable Canadian property of the transferor by this paragraph or paragraph 44.1(2)(c), 51(1)(f), 85(1)(i) or 85.1(1)(a) or (8)(b), subsection 85.1(5) or 87(4) or (5) or paragraph 97(2)(c) Exécution du b or 107(2)(d.1) or (3.1)(d), the property is deemed to be taxable Canadian property of the transferee trust; (2) Subsection (1) applies (a) to dispositions that occur after December 23, 1998; and (b) in respect of the 1996 and subsequent taxation years, to transfers of capital property that occurred before December 24, 1998. 28. (1) The portion of the definition “cost amount” in subsection 108(1) of the Act before paragraph (a) is replaced by the following: “cost amount” « coût indiqué » “cost amount” to a taxpayer at any time of a capital interest or part of it, as the case may be, in a trust, means (notwithstanding subsection 248(1) and except for the purposes of subsection 107(3.1) and section 107.4 and except in respect of a capital interest in a trust that is at that time a foreign affiliate of the taxpayer), (2) Subsection (1) applies after July 14, 2008. 29. (1) Paragraph 110.1(8)(e) of the English version of the Act is replaced by the following: (e) the donee is a registered charity that, in the opinion of the Minister for International Cooperation (or, if there is no such Minister, the Minister responsible for the Canadian International Development Agency) meets conditions prescribed by regulation. (2) Section 110.1 of the Act is amended by adding the following after subsection (8): Rules governing international medical charities (9) For the purpose of paragraph (8)(e), (a) for greater certainty, nothing in paragraph (8)(b) modifies the application to a registered charity of the prescribed conditions referred to in paragraph (8)(e); (b) if, in respect of a registered charity, the Minister referred to in paragraph (8)(e) is of the opinion described in that paragraph C. 2 Budget Implem (i) that Minister may also designate a period of time during which that opinion is valid, and (ii) notwithstanding subparagraph (i), the opinion may be revoked at any time by that Minister if (A) that Minister is of the opinion that the registered charity no longer meets prescribed conditions referred to in paragraph (8)(e), or (B) any person has made any misrepresentation that is attributable to neglect, carelessness or wilful default for the purpose of obtaining the opinion; and (c) a revocation referred to in subparagraph (b)(ii) is effective as of the time that notice, in writing, of the revocation is issued by that Minister to the registered charity. (3) Subsections (1) and (2) apply in respect of gifts made after June 2008. 30. (1) Subsection 111(8) of the Act is amended by adding the following in alphabetical order: “exchange rate” « taux de change » “foreign currency debt” « dette en monnaie étrangère » “exchange rate” at any time in respect of a currency of a country other than Canada means the rate of exchange between that currency and Canadian currency quoted by the Bank of Canada at noon on the day that includes that time or, if that day is not a business day, on the day that immediately precedes that day, or a rate of exchange acceptable to the Minister; “foreign currency debt” means a debt obligation denominated in a currency of a country other than Canada; (2) Section 111 of the Act is amended by adding the following after subsection (11): Foreign currency debt on acquisition of control (12) For the purposes of subsection (4), if at any time a corporation owes a foreign currency debt in respect of which the corporation would have had, if the foreign currency debt had been repaid at that time, a capital loss or gain, the corporation is deemed to own at the time (in this Exécution du b subsection referred to as the “measurement time”) that is immediately before that time a property (a) the adjusted cost base of which at the measurement time is the amount determined by the formula A+B–C where A is the amount of principal owed by the corporation under the foreign currency debt at the measurement time, calculated, for greater certainty, using the exchange rate applicable at the measurement time, B is the portion of any gain, previously recognized in respect of the foreign currency debt because of this section, that is reasonably attributable to the amount described in A, and C is the portion of any capital loss previously recognized in respect of the foreign currency debt because of this section, that is reasonably attributable to the amount described in A; and (b) the fair market value of which is the amount that would be the amount of the principal owed by the corporation under the foreign currency debt at the measurement time if that amount were calculated using the exchange rate applicable at the time of the original borrowing. (3) Subsections (1) and (2) apply to any acquisition of control of a corporation that occurs (a) after March 7, 2008, other than an acquisition of control that occurs before 2009 under the terms of an agreement made in writing on or before March 7, 2008; or (b) after 2005, if the corporation so elects in writing and files the election with the Minister of National Revenue on or before C. 2 Budget Implem the corporation’s filing-due date for the corporation’s taxation year that includes the day on which this Act is assented to. (4) If an election under paragraph (3)(b) is made by the corporation in respect of an acquisition of control, a designation under paragraph 111(4)(e) of the Act by the corporation for its taxation year that ended immediately before the acquisition of control is deemed to have been made in a timely manner if that designation is made on or before the corporation’s filing-due date for its taxation year that includes the day on which this Act is assented to. 31. (1) Subparagraph 115(1)(a)(iii.21) of the Act is replaced by the following: (iii.21) the total of all amounts, each of which is an amount included under subparagraph 56(1)(r)(v) or section 56.3 in computing the non-resident person’s income for the year, (2) Subsection (1) applies to the 2008 and subsequent taxation years. 32. (1) Paragraph 116(6)(b) of the Act is replaced by the following: (b) a security that is (i) listed on a recognized stock exchange, and (ii) either (A) a share of the capital stock of a corporation, or (B) SIFT wind-up entity equity; (2) Subsection (1) applies after July 14, 2008. 33. (1) Subsection 117(2) of the Act is replaced by the following: Rates for taxation years after 2008 (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is Exécution du b (a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $40,726; (b) if the amount taxable is greater than $40,726 and is equal to or less than $81,452, the maximum amount determina- ble in respect of the taxation year under paragraph (a), plus 22% of the amount by which the amount taxable exceeds $40,726 for the year; (c) if the amount taxable is greater than $81,452, but is equal to or less than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (b), plus 26% of the amount by which the amount taxable exceeds $81,452 for the year; and (d) if the amount taxable is greater than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (c), plus 29% of the amount by which the amount taxable exceeds $126,264 for the year. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 34. (1) The portion of paragraph (a) of the description of B in subsection 118(1) of the Act before the description of C in subparagraph (ii) is replaced by the following: Married or common-law partnership status (a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of (i) $10,320, and (ii) the amount determined by the formula $10,320 – C where C. 2 Budget Implem (2) The description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the English version of the Act is replaced by the following: C is the income of the individ- ual’s spouse or common-law partner for the year or, where the individual and the individual’s spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse’s or common-law partner’s income for the year while married to, or in a commonlaw partnership with, the individual and not so separated, (3) The portion of paragraph 118(1)(b) of the French version of the Act before the description of D is replaced by the following: Crédit équivalent pour personne entièrement à charge b) le total de 10 320 $ et de la somme obtenue par la formule suivante : 10 320 $ – D où : (4) Subparagraphs (b)(iii) and (iv) of the description of B in subsection 118(1) of the English version of the Act are replaced by the following: (iii) $10,320, and (iv) the amount determined by the formula $10,320 – D where D is the dependent person’s income for the year, (5) Paragraph (c) of the description of B in subsection 118(1) of the Act is replaced by the following: Single status (c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $10,320, Exécution du b (6) The formula in subsection 118(2) of the Act is replaced by the following: A × ($6,408 – B) (7) Subsections 118(3.1), (3.2) and (9) of the Act are repealed. (8) Paragraph (b) of the description of B in subsection 118(10) of the Act is replaced by the following: (b) the total of all amounts, each of which is an amount included in computing the individual’s income for the taxation year from an office or employment or an amount included in the taxpayer’s income for the taxation year because of subparagraph 56(1)(r)(v). (9) Subsections (1) and (2) to (7) apply to the 2009 and subsequent taxation years. (10) Subsection (3) applies to the 2007 and subsequent taxation years. (11) Subsection (8) applies to the 2008 and subsequent taxation years. 35. (1) The portion of subsection 118.1(5.3) of the Act before paragraph (a) is replaced by the following: Direct designation — RRSPs, RRIFs and TFSAs (5.3) If as a consequence of an individual’s death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier) that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the individual’s death, a TFSA to a qualified donee, solely because of the donee’s interest or, for civil law, a right as a beneficiary under the arrangement, the individual was the annuitant under, or the holder of, the arrangement immediately before the individual’s death and the transfer occurs within the 36month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances), C. 2 Budget Implem (2) Subsection (1) applies to the 2009 and subsequent taxation years. 36. (1) The definition “investment” in subsection 122.1(1) of the Act is replaced by the following: “investment” « placement » “investment”, in a trust or partnership, (a) means (i) a property that is a security of the trust or partnership, or (ii) a right which may reasonably be considered to replicate a return on, or the value of, a security of the trust or partnership; but (b) does not include (i) an unaffiliated publicly-traded liability of the trust or partnership, nor (ii) regulated innovative capital. (2) The portion of paragraph (a) of the definition “non-portfolio property” in subsection 122.1(1) of the Act before subparagraph (i) is replaced by the following: (a) a security of a subject entity (other than a portfolio investment entity), if at that time the trust or partnership holds (3) Paragraph (a) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following: (a) a real or immovable property; (4) Subparagraph (c)(i) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following: (i) legal title to real or immovable property of the trust or of another subject entity all of the securities of which are held by the trust (including real or immovable property Exécution du b that the trust or the other subject entity holds together with one or more other persons or partnerships), and (5) Paragraphs (c) and (d) of the definition “real estate investment trust” in subsection 122.1(1) of the Act are replaced by the following: (c) not less than 75% of the trust’s revenues for the taxation year are derived from one or more of the following: (i) rent from real or immovable properties, (ii) interest from mortgages, or hypothecs, on real or immovable properties, and (iii) capital gains from dispositions of real or immovable properties; and (d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is real or immovable property, indebtedness of a Canadian corporation represented by a bankers’ acceptance, property described by either paragraph (a) or (b) of the definition “qualified investment” in section 204, or a deposit with a credit union. (6) Subparagraph (a)(ii) of the definition “rent from real or immovable properties” in subsection 122.1(1) of the Act is replaced by the following: (ii) payment for services ancillary to the rental of real or immovable properties and customarily supplied or rendered in connection with the rental of real or immovable properties, and (iii) a payment that is included under paragraph 104(13)(a) in computing the recipient’s income and that was made from the part of a trust’s income (determined without reference to subsection 104(6)) that was derived from rent from real or immovable properties; but C. 2 Budget Implem (7) The portion of the definition “SIFT trust” in subsection 122.1(1) of the Act before paragraph (a) is replaced by the following: “SIFT trust” « fiducie intermédiaire de placement déterminée » “SIFT trust”, being a specified investment flowthrough trust, for a taxation year means a trust (other than an excluded subsidiary entity, or a real estate investment trust, for the taxation year) that meets the following conditions at any time during the taxation year: (8) Subsection 122.1(1) of the Act is amended by adding the following in alphabetical order: “equity” « capitaux propres » “equity”, of an entity, means (a) if the entity is a corporation, a share of the capital stock of the corporation; (b) if the entity is a trust, an income or capital interest in the trust; (c) if the entity is a partnership, an interest as a member of the partnership; (d) a liability of the entity (and, for purposes of the definition “publicly-traded liability” in this section, a security of the entity that is a liability of another entity) if (i) the liability is convertible into, or exchangeable for, equity of the entity or of another entity, or (ii) any amount paid or payable in respect of the liability is contingent or dependent on the use of or production from property, or is computed by reference to revenue, profit, cash flow, commodity price or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares of the capital stock of a corporation, or to income or capital paid or payable to any member of a partnership or beneficiary under a trust; and (e) a right to, or to acquire, anything described in this paragraph and any of paragraphs (a) to (d). 2009 “excluded subsidiary entity” « filiale exclue » Exécution du b “excluded subsidiary entity”, for a taxation year, means an entity none of the equity of which is at any time in the taxation year (a) listed or traded on a stock exchange or other public market; nor (b) held by any person or partnership other than (i) a real estate investment trust, (ii) a taxable Canadian corporation, (iii) a SIFT trust (determined without reference to subsection (2)), (iv) a SIFT partnership (determined without reference to subsection 197(8)), or (v) an excluded subsidiary entity for the taxation year. “portfolio investment entity” « entité de placement de portefeuille » “publicly-traded liability” « dette transigée publiquement » “regulated innovative capital” « capital innovateur réglementé » “portfolio investment entity” at any time means an entity that does not at that time hold any nonportfolio property. “publicly-traded liability”, of an entity, means a liability that is a security of the entity, that is not equity of the entity and that is listed or traded on a stock exchange or other public market. “regulated innovative capital” means equity of a trust, where (a) since November 2006, the equity has been authorized, by the Superintendent of Financial Institutions or by a provincial regulatory authority having powers similar to those of the Superintendent, as Tier 1 or Tier 2 capital of a financial institution (as defined by subsection 181(1)); (b) the terms and conditions of the equity have not changed after August 1, 2008; (c) the trust has not issued any equity after October 31, 2006; and (d) the trust does not hold any non-portfolio property other than (i) liabilities of the financial institution, and (ii) shares of the capital stock of the financial institution that were acquired by the trust for the sole purpose of satisfying a C. 2 Budget Implem right to require the trust to accept, as demanded by a holder of the equity, the surrender of the equity. “unaffiliated publicly-traded liability” « dette non affiliée transigée publiquement » “unaffiliated publicly-traded liability”, of an entity at any time means a publicly-traded liability of the entity if, at that time the total fair market value of all publicly-traded liabilities of the entity that are held at that time by persons or partnerships that are not affiliated with the entity is at least 90% of the total fair market value of all publicly-traded liabilities of the entity. (9) Subsections (1) to (8) are deemed to have come into force on October 31, 2006. 37. (1) Paragraph (c) of the definition “eligible individual” in subsection 122.51(1) of the Act is replaced by the following: (c) the total of whose incomes for the year from the following sources is at least $2,500: (i) offices and employments (computed without reference to paragraph 6(1)(f)), (ii) businesses each of which is a business carried on by the individual either alone or as a partner actively engaged in the business, and (iii) the program established under the Wage Earner Protection Program Act. (2) Subsection (1) applies to the 2008 and subsequent taxation years. Exécution du b 38. (1) Paragraph (b) of the definition “working income” in subsection 122.7(1) of the Act is replaced by the following: (b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of paragraph 56(1)(n) or (o) or subparagraph 56(1)(r)(v) in computing the individual’s income for a period in the taxation year; and (2) Subsection (1) applies to the 2008 and subsequent taxation years. 39. (1) Subsection 125(2) of the Act is replaced by the following: Business limit (2) For the purpose of this section, a corporation’s business limit for a taxation year is $500,000 unless the corporation is associated in the taxation year with one or more other Canadian-controlled private corporations, in which case, except as otherwise provided in this section, its business limit is nil. (2) Paragraph 125(3)(a) of the Act is replaced by the following: (a) if the total of the percentages assigned in the agreement does not exceed 100%, $500,000 multiplied by the percentage assigned to that corporation in the agreement; and (3) In applying subsection 125(5) of the Act to a corporation for a 2009 or 2010 taxation year of the corporation that began before 2009, subparagraph 125(5)(a)(i) of the Act is to be read as follows: (i) the amount that would have been its business limit determined under subsection (3) or (4) for the first such taxation year ending in the calendar year if the reference to $400,000 in subsection (3), as it applied in respect of that first such taxation year, had been read in the same manner as it is read in respect of the particular taxation year ending in the calendar year, and C. 2 Budget Implem (4) The description of M in the definition “specified partnership income” in subsection 125(7) of the Act is replaced by the following: M is the lesser of (i) $500,000, and (ii) the product obtained when $1,370 is multiplied by the total of all amounts each of which is the number of days in a fiscal period of the partnership that ends in the year, and (5) Subsection (1) applies to the 2009 and subsequent taxation years except that, for a 2009 or 2010 taxation year that began before 2009, the reference in subsection 125(2) of the Act, as enacted by subsection (1), to “$500,000” shall be read as a reference to the total of (a) that proportion of $400,000 that the number of days in the taxation year that are before 2009 is of the number of days in the taxation year, and (b) that proportion of $500,000 that the number of days in the taxation year that are after 2008 is of the number of days in the taxation year. (6) Subsection (2) applies to the 2009 and subsequent taxation years except that, for a 2009 or 2010 taxation year that began before 2009, the reference in paragraph 125(3)(a) of the Act, as enacted by subsection (2), to “$500,000” is to be read as a reference to “the amount that would, if the corporation were not associated in the year with any other corporation, be its business limit for the year determined without reference to subsections (5) and (5.1)”. (7) Subsection (4) applies to fiscal periods of a partnership that end after 2008. Exécution du b 40. (1) Paragraph (a) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act is replaced by the following: (a) that is a Canadian exploration expense incurred by a corporation after March 2009 and before 2011 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2011) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1), (2) Paragraphs (c) and (d) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act are replaced by the following: (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2009 and before April 2010, and (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2009 and before April 2010; (3) Paragraph 127(9.01)(b) of the Act is replaced by the following: (b) the number that is the total of 10 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 1997 exceeds 11. (4) Paragraph 127(9.02)(b) of the Act is replaced by the following: (b) the number that is the total of 9 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 1997 exceeds 11. C. 2 Budget Implem (5) The formula in subsection 127(10.2) of the Act is replaced by the following: ($8 million – 10A) × [($40 million – B)/$40 million] (6) Paragraph (a) of the description of A in subsection 127(10.2) of the Act is replaced by the following: (a) $500,000, and (7) Subparagraphs (a)(i) and (ii) of the description of B in subsection 127(10.2) of the Act are replaced by the following: (i) if the particular corporation is not associated with any other corporation in the particular taxation year, the amount that is its taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, or (ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the amount that is the total of all amounts, each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or (8) Subsection 127(10.22) of the Act is replaced by the following: Deemed nonassociation of corporations (10.22) If a particular Canadian-controlled private corporation is associated with another corporation in circumstances where those corporations would not be associated if the Act were read without reference to paragraph 256(1.2)(a), the particular corporation has issued shares to one or more persons who have been issued shares by the other corporation and there is at least one shareholder of the particular corporation who is not a shareholder of the other corporation or one shareholder of the other corporation who is not a shareholder of the Exécution du b particular corporation, the particular corporation is deemed not to be associated with the other corporation for the purpose of determining the particular corporation’s expenditure limit under subsection (10.2). (9) Paragraph 127(10.6)(c) of the Act is replaced by the following: (c) for the purpose of subsection (10.2), where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, the taxable income of the corporation for the year shall be determined by multiplying that amount by the ratio that 365 is of the number of days in that year. (10) Paragraph 127(36)(b) of the Act is replaced by the following: (b) the number that is the total of 10 and the number of taxation years or fiscal periods, as the case may be, by which the number of taxation years or fiscal periods of the taxpayer that have ended after 1997 exceeds 11. (11) Subsections (1) and (2) apply to expenses renounced under a flow through share agreement made after March 2009. (12) Subsections (3), (4) and (10) apply in respect of the 2008 and subsequent taxation years. (13) Subsections (5) and (6) apply to the 2010 and subsequent taxation years, except that the expenditure limit in subsection 127(10.2) of the Act in respect of a corporation for 2010 taxation years that begin before 2010, be determined by the formula A + [(B – A) × (C/D)] where A is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Act as that subsection read in its application to taxation years that end in 2009; C. 2 Budget Implem B is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Act, as that subsection would apply to the taxation year in the absence of this exception; C is the number of days in the taxation year that are after 2009; and D is the total number of days in the taxation year. (14) Subsection (7) applies to taxation years that end on or after February 26, 2008. (15) Subsections (8) and (9) apply to taxation years that end on or after March 9, 2009. 41. (1) The definition “qualifying corporation” in subsection 127.1(2) of the Act is replaced by the following: “qualifying corporation” « société admissible » “qualifying corporation” for a particular taxation year that ends in a calendar year means a particular corporation that is a Canadian-controlled private corporation in the particular taxation year the taxable income of which for its immediately preceding taxation year — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations (in this subsection referred to as “associated corporations”), the taxable income of each associated corporation for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last year) — does not exceed the qualifying income limit of the particular corporation for the particular taxation year; (2) Subsection 127.1(2) of the Act is amended by adding the following in alphabetical order: Exécution du b 2009 “qualifying income limit” « plafond de revenu admissible » “qualifying income limit” of a corporation for a particular taxation year is the amount determined by the formula $500,000 × [($40 million – A)/$40 million] where A is (a) nil, if $10 million is greater than or equal to the amount (in paragraph (b) referred to as the “taxable capital amount”) that is the total of the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation’s last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or (b) in any other case, the lesser of $40 million and the amount by which the taxable capital amount exceeds $10 million; (3) Section 127.1 of the Act is amended by adding the following after subsection (3): Qualifying income limit determined in certain cases (4) For the purpose of the definition of “qualifying corporation” in subsection (2), where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, the taxable income of the corporation for the year shall be determined by multiplying that amount by the ratio that 365 is of the number of days in that year. (4) Subsections (1) and (2) apply to taxation years that end on or after February 26, 2008, except that (a) for taxation years that include February 26, 2008, the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act and the portion of that C. 2 Budget Implem definition that follows that formula, as enacted by subsection (2), shall be read as follows: A + [($400,000 × [($40 million – B)/$40 million] – A) × (C/D)] where A is the business limit of the corporation for the particular taxation year determined in accordance with section 125 — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations the business limit of each of those associated corporations for its last taxation year that ends in the particular taxation year (determined in accordance with section 125), B is (a) nil, if $10 million is greater than or equal to the amount (in paragraph (b) referred to as the “taxable capital amount”) that is the total of the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation’s last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or (b) in any other case, the lesser of $40 million and the amount by which the taxable capital amount exceeds $10 million, C is the number of days in the particular taxation year that are after February 25, 2008, and D is the total number of days in the particular taxation year; (b) for taxation years that begin after February 26, 2008 and end before 2010, the reference to “$500,000” in the formula in the definition “qualifying income limit” Exécution du b in subsection 127.1(2) of the Act, as enacted by subsection (2), shall be read as a reference to “$400,000”; and (c) for 2010 taxation years that begin before 2010, the reference to “$500,000” in the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act, as enacted by subsection (2), shall be read as a reference to an amount that is the total of $400,000 and that proportion of $100,000 that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year. (5) Subsection (3) applies in respect of the 2008 and subsequent taxation years. 42. (1) The definition “qualifying trust” in subsection 127.4(1) of the Act is replaced by the following: “qualifying trust” « fiducie admissible » “qualifying trust” for an individual in respect of a share means (a) a trust governed by a registered retirement savings plan, under which the individual is the annuitant, that is not a spousal or common-law partner plan (in this definition having the meaning assigned by subsection 146(1)) in relation to another individual, (b) a trust governed by a registered retirement savings plan, under which the individual or the individual’s spouse or common-law partner is the annuitant, that is a spousal or common-law partner plan in relation to the individual or the individual’s spouse or common-law partner, if the individual and no other person claims a deduction under subsection (2) in respect of the share, or (c) a trust governed by a TFSA of which the individual is the holder; (2) Subsection (1) applies to the 2001 and subsequent taxation years, except that the definition “qualifying trust” in subsection 127.4(1) of the Act, as enacted by subsection (1), C. 2 Budget Implem (a) shall, for taxation years before 2009, be read without reference to its paragraph (c); and (b) if a taxpayer and a person have jointly elected under section 144 of the Modernization of Benefits and Obligations Act in respect of the 1998, 1999 or 2000 taxation year, applies to the taxpayer and the person in respect of that taxation year and subsequent taxation years. 43. (1) Section 128.3 of the Act is replaced by the following: Former resident — replaced shares 128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii), subsection 85.1(8) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share or equity in a SIFT wind-up entity (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share. (2) Subsection (1) applies after December 19, 2007. 44. (1) The portion of the definition "qualifying exchange" in subsection 132.2(2) of the Act before paragraph (a) is replaced by the following: “qualifying exchange” « échange admissible » “qualifying exchange” means a transfer at any time (in this section referred to as the “transfer time”) of all or substantially all of the property of a mutual fund corporation (other than a SIFT wind-up corporation) or mutual fund trust to a mutual fund trust (in this section referred to as the “transferor” and “transferee”, respectively, and as the “funds”), if (2) Subsection (1) applies after December 19, 2007. Exécution du b 45. (1) The portion of subsection 138(10) of the Act before paragraph (b) is replaced by the following: Application of financial institution rules (10) Notwithstanding sections 142.3, 142.4, 142.5 and 142.51, where in a taxation year an insurer (other than an insurer resident in Canada that does not carry on a life insurance business) carries on an insurance business in Canada and in a country other than Canada, in computing its income for the year from carrying on an insurance business in Canada, (a) sections 142.3, 142.5 and 142.51 apply only in respect of property that is designated insurance property for the year in respect of the business; and (2) Subsection 138(12) of the Act is amended by adding the following in alphabetical order: “base year” « année de base » “reserve transition amount” « montant transitoire » “base year” of a life insurer means the life insurer’s taxation year that immediately precedes its transition year; “reserve transition amount” of a life insurer, in respect of a life insurance business carried on by it in Canada in its transition year, is the positive or negative amount determined by the formula A–B where A is the maximum amount that the life insurer would be permitted to claim under subparagraph 138(3)(a)(i) (and that would be prescribed by section 1404 of the Regulations for the purpose of subparagraph 138(3)(a)(i)) as a policy reserve for its base year in respect of its life insurance policies in Canada if (a) the generally accepted accounting principles that applied to the life insurer in valuing its assets and liabilities for its transition year had applied to it for its base year, and (b) section 1404 of the Regulations were read in respect of the life insurer’s base year as it reads in respect of its transition year, and C. 2 Budget Implem B is the maximum amount that the life insurer is permitted to claim under subparagraph 138(3)(a)(i) as a policy reserve for its base year; “transition year” « année transitoire » “transition year” of a life insurer means the life insurer’s first taxation year that begins after September 2006; (3) Section 138 of the Act is amended by adding the following after subsection (15): Transition year income inclusion (16) There shall be included in computing a life insurer’s income for its transition year from a life insurance business carried on by it in Canada in the transition year, the positive amount, if any, of the life insurer’s reserve transition amount in respect of that life insurance business. Transition year income deduction (17) There shall be deducted in computing a life insurer’s income for its transition year from a life insurance business carried on by it in Canada in the transition year, the absolute value of the negative amount, if any, of the life insurer’s reserve transition amount in respect of that life insurance business. Transition year income inclusion reversal (18) If an amount has been included under subsection (16) in computing a life insurer’s income for its transition year from a life insurance business carried on by it in Canada, there shall be deducted in computing the life insurer’s income, for each particular taxation year of the life insurer that ends after the beginning of the transition year, from that life insurance business, the amount determined by the formula A × B/1825 where A is the amount included under subsection (16) in computing the life insurer’s income for the transition year from that life insurance business; and Exécution du b B is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year. Transition year income deduction reversal (19) If an amount has been deducted under subsection (17) in computing a life insurer’s income for its transition year from a life insurance business carried on by it in Canada, there shall be included in computing the life insurer’s income, for each particular taxation year of the life insurer that ends after the beginning of the transition year, from that life insurance business, the amount determined by the formula A × B/1825 where A is the amount deducted under subsection (17) in computing the life insurer’s income for the transition year from that life insurance business; and B is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year. Winding-up (20) If a life insurer has, in a winding-up to which subsection 88(1) has applied, been wound-up into another corporation (referred to in this subsection as the “parent”), and immediately after the winding-up the parent carries on a life insurance business, in applying subsections (18) and (19) in computing the income of the life insurer and of the parent for particular taxation years that end on or after the first day (referred to in this subsection as the “start day”) on which assets of the life insurer were distributed to the parent on the windingup, (a) the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the life insurer in respect of (i) any amount included under subsection (16) or deducted under subsection (17) in computing the life insurer’s income from a life insurance business for its transition year, C. 2 Budget Implem (ii) any amount deducted under subsection (18) or included under subsection (19) in computing the life insurer’s income from a life insurance business for a taxation year of the life insurer that begins before the start day, and (iii) any amount that would — in the absence of this subsection and if the life insurer existed and carried on a life insurance business on each day that is the start day or a subsequent day and on which the parent carries on a life insurance business — be required to be deducted or included, in respect of any of those days, under subsection (18) or (19) in computing the life insurer’s income from a life insurance business; and (b) the life insurer is, in respect of each of its particular taxation years, to determine the value for B in the formulas in subsections (18) and (19) without reference to the start day and days after the start day. Amalgamations (21) If there is an amalgamation (within the meaning assigned by subsection 87(1)) of a life insurer with one or more other corporations to form one corporation (referred to in this subsection as the “new corporation”), and immediately after the amalgamation the new corporation carries on a life insurance business, in applying subsections (18) and (19) in computing the income of the new corporation for particular taxation years of the new corporation that begin on or after the day on which the amalgamation occurred, the new corporation is, on and after that day, deemed to be the same corporation as and a continuation of the life insurer in respect of (a) any amount included under subsection (16) or deducted under subsection (17) in computing the life insurer’s income from a life insurance business for its transition year; Exécution du b (b) any amount deducted under subsection (18) or included under subsection (19) in computing the life insurer’s income from a life insurance business for a taxation year that begins before the day on which the amalgamation occurred; and (c) any amount that would — in the absence of this subsection and if the life insurer existed and carried on a life insurance business on each day that is the day on which the amalgamation occurred or a subsequent day and on which the new corporation carries on a life insurance business — be required to be deducted or included, in respect of any of those days, under subsection (18) or (19) in computing the life insurer’s income from a life insurance business. Application of subsection (23) (22) Subsection (23) applies if, at any time, a life insurer (referred to in this subsection and subsection (23) as the “transferor”) transfers, to a corporation (referred to in this subsection and subsection (23) as the “transferee”) that is related to the transferor, property in respect of a life insurance business carried on by the transferor in Canada (referred to in this subsection and subsection (23) as the “transferred business”) and (a) subsection 138(11.5) or (11.94) applies to the transfer; or (b) subsection 85(1) applies to the transfer, the transfer includes all or substantially all of the property and liabilities of the transferred business and, immediately after the transfer, the transferee carries on a life insurance business. Transfer of life insurance business (23) If this subsection applies in respect of the transfer, at any time, of property (a) the transferee is, at and after that time, deemed to be the same corporation as and a continuation of the transferor in respect of (i) any amount included under subsection (16) or deducted under subsection (17) in computing the transferor’s income for its transition year that can reasonably be attributed to the transferred business, C. 2 Budget Implem (ii) any amount deducted under subsection (18) or included under subsection (19) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business, and (iii) any amount that would — in the absence of this subsection and if the transferor existed and carried on a life insurance business on each day that includes that time or is a subsequent day and on which the transferee carries on a life insurance business — be required to be deducted or included, in respect of any of those days, under subsection (18) or (19) in computing the transferor’s income that can reasonably be attributed to the transferred business; and (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (18) or (19) to be deducted or included in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil. Ceasing to carry on business (24) If at any time a life insurer ceases to carry on all or substantially all of a life insurance business (referred to in this subsection as the “discontinued business”), and none of subsections (20) to (22) apply, (a) there shall be deducted, in computing the life insurer’s income from the discontinued business for the life insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula A–B where Exécution du b A is the amount included under subsection (16) in computing the life insurer’s income from the discontinued business for its transition year, and B is the total of all amounts each of which is an amount deducted under subsection (18) in computing the life insurer’s income from the discontinued business for a taxation year that began before that time; and (b) there shall be included, in computing the life insurer’s income from the discontinued business for the life insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula C–D where C is the amount deducted under subsection (17) in computing the life insurer’s income from the discontinued business for its transition year, and D is the total of all amounts each of which is an amount included under subsection (19) in computing the life insurer’s income from the discontinued business for a taxation year that began before that time. Ceasing to exist (25) If at any time a life insurer that carried on a life insurance business ceases to exist (otherwise than as a result of a winding-up or amalgamation described in subsection (20) or (21)), for the purposes of subsection (24), the life insurer is deemed to have ceased to carry on the life insurance business at the earlier of (a) the time (determined without reference to this subsection) at which the life insurer ceased to carry on the life insurance business, and C. 2 Budget Implem (b) the time that is immediately before the end of the last taxation year of the life insurer that ended at or before the time at which the life insurer ceased to exist. (4) Subsections (1) to (3) apply to taxation years that begin after September 2006. 46. (1) Paragraph (a) of the definition “bien évalué à la valeur du marché” in subsection 142.2(1) of the French version of the Act is replaced by the following: a) une action; (2) Paragraph (d) of the definition “markto-market property” in subsection 142.2(1) of the Act is replaced by the following: (d) a share of a corporation in which the taxpayer has a significant interest at any time in the year, (d.1) a property that is, at all times in the year at which the taxpayer holds the property, a prescribed payment card corporation share of the taxpayer, (d.2) if the taxpayer is an investment dealer and the year begins after 1998, a property that is, at all times in the year at which the taxpayer holds the property, a prescribed securities exchange investment of the taxpayer, (d.3) a share of a corporation held, at any time in the year, by the taxpayer if (i) control of the corporation is, at any time (referred to in this paragraph as the “acquisition of control time”) that is after 2001 and is in the 24-month period that begins immediately after the end of the year, acquired by (A) the taxpayer, (B) one or more persons related to the taxpayer (otherwise than by reason of a right referred to in paragraph 251(5)(b)), or (C) the taxpayer and one or more persons described in clause (B), and Exécution du b (ii) the taxpayer elects in writing to have subparagraph (i) apply and files the election with the Minister on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the acquisition of control time, or (3) The definition “mark-to-market property” in subsection 142.2(1) of the Act, as amended by subsection (2), is replaced by the following: “mark-to-market property” « bien évalué à la valeur du marché » “mark-to-market property” of a taxpayer for a taxation year means property (other than an excluded property) held at any time in the taxation year by the taxpayer that is (a) a share, (b) if the taxpayer is not an investment dealer, a specified debt obligation that is a fair value property of the taxpayer for the taxation year, (c) if the taxpayer is an investment dealer, a specified debt obligation, or (d) a tracking property of the taxpayer that is a fair value property of the taxpayer for the taxation year; (4) Subsection 142.2(1) of the Act is amended by adding the following in alphabetical order: “excluded property” « bien exclu » “excluded property” of a taxpayer for a taxation year means property, held at any time in the taxation year by the taxpayer, that is (a) a share of the capital stock of a corporation if, at any time in the taxation year, the taxpayer has a significant interest in the corporation, (b) a property that is, at all times in the taxation year at which the taxpayer held the property, a prescribed payment card corporation share of the taxpayer, C. 2 Budget Implem (c) if the taxpayer is an investment dealer, a property that is, at all times in the taxation year at which the taxpayer held the property, a prescribed securities exchange investment of the taxpayer, (d) a share of the capital stock of a corporation if (i) control of the corporation is, at any time (referred to in this paragraph as the “acquisition of control time”) that is in the 24-month period that begins immediately after the end of the year, acquired by (A) the taxpayer, (B) one or more persons related to the taxpayer (otherwise than by reason of a right referred to in paragraph 251(5)(b)), or (C) the taxpayer and one or more persons described in clause (B), and (ii) the taxpayer elects in writing to have subparagraph (i) apply and files the election with the Minister on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the acquisition of control time, or (e) a prescribed property; “fair value property” « bien évalué à sa juste valeur » “tracking property” « bien à évaluer » “fair value property” of a taxpayer for a taxation year means property, held at any time in the taxation year by the taxpayer, that is — or it is reasonable to expect would, if the taxpayer held the property at the end of the taxation year, be — valued (otherwise than solely because its fair value was less than its cost to the taxpayer or, if the property is a specified debt obligation, because of a default of the debtor) in accordance with generally accepted accounting principles, at its fair value (determined in accordance with those principles) in the taxpayer’s balance sheet as at the end of the taxation year; “tracking property” of a taxpayer means property of the taxpayer the fair market value of which is determined primarily by reference to one or more criteria in respect of property (referred to in this definition as “tracked Exécution du b property”) that, if owned by the taxpayer, would be mark-to-market property of the taxpayer, which criteria are (a) the fair market value of the tracked property, (b) the profits or gains from the disposition of the tracked property, (c) the revenue, income or cash flow from the tracked property, or (d) any other similar criteria in respect of the tracked property; (5) The portion of subsection 142.2(2) of the Act before paragraph (a) is replaced by the following: Significant interest (2) For the purposes of the definitions “excluded property”, “mark-to-market property” and “specified debt obligation” in subsection (1) and subsections (5) and 142.6(1.6), a taxpayer has a significant interest in a corporation at any time if (6) Subsections 142.2(4) and (5) of the Act are replaced by the following: Extension of meaning of “related” (4) For the purposes of this subsection and subsections (2) and (3), in determining if, at a particular time, a person or partnership is related to another person or partnership, the rules in section 251 are to be applied as if, (a) a partnership (other than a partnership in respect of which any amount of the income or capital of the partnership that any entity may receive directly from the partnership at any time as a member of the partnership depends on the exercise by any entity of, or the failure by any entity to exercise, a discretionary power) were a corporation having capital stock of a single class divided into 100 issued shares and each member of the partnership owned, at the particular time, that proportion of the issued shares of that class that (i) the fair market value of the member’s interest in the partnership at the particular time is of C. 2 Budget Implem (ii) the fair market value of all interests in the partnership at the particular time; and (b) a trust (other than a trust in respect of which any amount of the income or capital of the trust that any entity may receive directly from the trust at any time as a beneficiary under the trust depends on the exercise by any entity of, or the failure by any entity to exercise, a discretionary power) were a corporation having capital stock of a single class divided into 100 issued shares and each beneficiary under the trust owned, at the particular time, that proportion of the issued shares of that class that (i) the fair market value of the beneficiary’s beneficial interest in the trust at the particular time is of (ii) the fair market value at that time of all beneficial interests in the trust. (7) Subsections (1) and (2) apply to taxation years that end after February 22, 1994, except that any election made under paragraph (d.3) of the definition “mark-to-market property” in subsection 142.2(1) of the Act, as enacted by subsection (2), is deemed to have been made on a timely basis if it is filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to. (8) Subsection (3) applies to taxation years that begin after September 2006 except that for taxation years that begin before November 7, 2007, the definition “mark-to-market property” in subsection 142.2(1) of the Act, as enacted by subsection (3), is to be read without its paragraph (d). Exécution du b (9) Subsections (4) to (6) apply to taxation years that begin after September 2006 except that any election made under paragraph (d) of the definition “excluded property” in subsection 142.2(1) of the Act, as enacted by subsection (4), is deemed to have been made on a timely basis if it is filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to. 47. (1) Section 142.5 of the Act is amended by adding the following after subsection (8): Application of subsection (8.2) (8.1) Subsection (8.2) applies to a taxpayer for its transition year if (a) subsection (2) deems the taxpayer to have disposed of a particular specified debt obligation immediately before the end of its transition year (in subsection (8.2) referred to as “the particular disposition”); and (b) the particular specified debt obligation was owned by the taxpayer at the end of its base year and was not a mark-to-market property of the taxpayer for its base year. Rules applicable to first deemed disposition of debt obligation (8.2) If this subsection applies to a taxpayer for its transition year, the following rules apply to the taxpayer in respect of the particular disposition: (a) subsection 20(21) does not apply to the taxpayer in respect of the particular disposition; and (b) if section 12.4 does not apply to the taxpayer in respect of the particular disposition, there shall be included in computing the taxpayer’s income for its transition year the amount, if any, by which (i) the total of all amounts each of which is C. 2 Budget Implem (A) an amount deducted under paragraph 20(1)(l) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for its base year, or (B) an amount deducted under paragraph 20(1)(p) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for a taxation year that preceded its transition year, exceeds (ii) the total of all amounts each of which is (A) an amount included under paragraph 12(1)(d) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for its transition year, or (B) an amount included under paragraph 12(1)(i) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for its transition year or a preceding taxation year. (2) Subsection (1) applies to taxation years that begin after September 2006. 48. (1) The Act is amended by adding the following after section 142.5: Definitions 142.51 (1) The following definitions apply for the purposes of this section and subsections 142.5(8.1) and (8.2). “base year” « année de base » “base year” of a taxpayer means the taxpayer’s taxation year that immediately precedes its transition year. “transition amount” « montant transitoire » “transition amount” of a taxpayer for the taxpayer’s transition year is the positive or negative amount determined by the formula A–B where Exécution du b A is the total of all amounts each of which is the fair market value, at the end of the taxpayer’s base year, of a transition property of the taxpayer; and B is the total of all amounts each of which is the cost amount to the taxpayer, at the end of the taxpayer’s base year, of a transition property of the taxpayer. “transition property” « bien transitoire » “transition property” of a taxpayer means a property that (a) was a specified debt obligation held by the taxpayer at the end of the taxpayer’s base year; (b) was not a mark-to-market property of the taxpayer for the taxpayer’s base year, but would have been a mark-to-market property of the taxpayer for the taxpayer’s base year if the property had been carried at the property’s fair market value in the taxpayer’s balance sheet as at the end of each taxation year of the taxpayer that ends after the taxpayer last acquired the property (otherwise than by reason of a reacquisition under subsection 142.5(2)) and before the commencement of the taxpayer’s transition year; and (c) was a mark-to-market property of the taxpayer for the transition year of the taxpayer. “transition year” « année transitoire » “transition year” of a taxpayer means the taxpayer’s first taxation year that begins after September 2006. Transition year income inclusion (2) If a taxpayer is a financial institution in its transition year, there shall be included in computing the taxpayer’s income for its transition year the absolute value of the negative amount, if any, of the taxpayer’s transition amount. Transition year income deduction (3) If a taxpayer is a financial institution in its transition year, there shall be deducted in computing the taxpayer’s income for its transition year the positive amount, if any, of the taxpayer’s transition amount. Transition year income inclusion reversal (4) If an subsection income for deducted in amount has been included under (2) in computing a taxpayer’s its transition year there shall be computing the taxpayer’s income C. 2 Budget Implem for each particular taxation year of the taxpayer that ends after the beginning of the transition year, and in which particular taxation year the taxpayer is a financial institution, the amount determined by the formula A × B/1825 where A is the amount included under subsection (2) in computing the taxpayer’s income for the transition year; and B is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year. Transition year income deduction reversal (5) If an amount has been deducted under subsection (3) in computing a taxpayer’s income for its transition year, there shall be included in computing the taxpayer’s income, for each particular taxation year of the taxpayer ending after the beginning of the transition year, and in which particular taxation year the taxpayer is a financial institution, the amount determined by the formula A × B/1825 where A is the amount deducted under subsection (3) in computing the taxpayer’s income for the transition year; and B is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year. Winding-up (6) If a taxpayer has, in a winding-up to which subsection 88(1) has applied, been wound-up into another corporation (referred to in this subsection as the “parent”), and immediately after the winding-up the parent is a financial institution, in applying subsections (4) and (5) in computing the income of the taxpayer and of the parent for particular taxation years that end on or after the first day (referred to in this subsection as the “start day”) on which assets of the taxpayer were distributed to the parent on the winding-up, Exécution du b (a) the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the taxpayer in respect of (i) any amount included under subsection (2) or deducted under subsection (3) by the taxpayer in computing the taxpayer’s income for its transition year, (ii) any amount deducted under subsection (4) or included under subsection (5) in computing the taxpayer’s income for a taxation year of the taxpayer that begins before the start day, and (iii) any amount that would — in the absence of this subsection and if the taxpayer existed and was a financial institution on each day that is the start day or a subsequent day and on which the parent is a financial institution — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the taxpayer’s income for its transition year; and (b) the taxpayer is, in respect of each of its particular taxation years, to determine the value for B in the formulas in subsections (4) and (5) without reference to the start day and days after the start day. Amalgamations (7) If there is an amalgamation (within the meaning assigned by subsection 87(1)) of a taxpayer with one or more other corporations to form one corporation (referred to in this subsection as the “new corporation”), and immediately after the amalgamation the new corporation is a financial institution, in applying subsections (4) and (5) in computing the income of the new corporation for particular taxation years of the new corporation that begin on or after the day on which the amalgamation C. 2 Budget Implem occurred, the new corporation is, on and after that day, deemed to be the same corporation as and a continuation of the taxpayer in respect of (a) any amount included under subsection (2) or deducted under subsection (3) in computing the taxpayer’s income for its transition year of the taxpayer; (b) any amount deducted under subsection (4) or included under subsection (5) in computing the taxpayer’s income for a taxation year of the taxpayer that begins before the day on which the amalgamation occurred; and (c) any amount that would — in the absence of this subsection and if the taxpayer existed and was a financial institution on each day that is the day on which the amalgamation occurred or a subsequent day and on which the new corporation is a financial institution — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the taxpayer’s income. Application of subsection (9) (8) Subsection (9) applies if, at any time, a taxpayer (referred to in this subsection and subsection (9) as the “transferor”) transfers, to a corporation (referred to in this subsection and subsection (9) as the “transferee”) that is related to the transferor, property in respect of a business carried on by the transferor in Canada (referred to in this subsection and subsection (9) as the “transferred business”) and (a) subsection 138(11.5) or (11.94) applies to the transfer; or (b) subsection 85(1) applies to the transfer, the transfer includes all or substantially all of the property and liabilities of the transferred business and, immediately after the transfer, the transferee is a financial institution. Transfer of a business (9) If this subsection applies in respect of the transfer, at any time, of property (a) the transferee is, at and after that time, deemed to be the same corporation as and a continuation of the transferor in respect of Exécution du b (i) any amount included under subsection (2) or deducted under subsection (3) in computing the transferor’s income for its transition year that can reasonably be attributed to the transferred business, (ii) any amount deducted under subsection (4) or included under subsection (5) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business, and (iii) any amount that would — in the absence of this subsection and if the transferor existed and was a financial institution on each day that includes that time or is a subsequent day and on which the transferee is a financial institution — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the transferor’s income that can reasonably be attributed to the transferred business; and (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (4) or (5) to be deducted or included in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil. Continuation of a partnership (10) If subsection 98(6) deems a partnership (in this subsection referred to as the “new partnership”) to be a continuation of another partnership (in this subsection referred to as the “predecessor partnership”) and, at the time that is immediately after the predecessor partnership ceases to exist, the new partnership is a financial institution, in applying subsections (4) and (5) in computing the income of the new partnership for particular taxation years of the new partnership that begin on or after the day on which it comes into existence, the new partnership is, on C. 2 Budget Implem and after that day, deemed to be the same partnership as and a continuation of the predecessor partnership in respect of (a) any amount included under subsection (2) or deducted under subsection (3) in computing the predecessor partnership’s income for its transition year; (b) any amount deducted under subsection (4) or included under subsection (5) in computing the predecessor partnership’s income for a taxation year of the predecessor partnership that begins before the day on which the new partnership comes into existence; and (c) any amount that would — in the absence of this subsection and if the predecessor partnership existed and was a financial institution on each day that is the day on which the new partnership comes into existence or a subsequent day and on which the new partnership is a financial institution — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the predecessor partnership’s income. Ceasing to carry on a business (11) If at any time, a taxpayer ceases to be a financial institution (a) there shall be deducted, in computing the income of the taxpayer for the taxation year of the taxpayer that includes the time that is immediately before that time, the amount determined by the formula A–B where A is the amount included under subsection (2) in computing the taxpayer’s income for its transition year, and B is the total of all amounts each of which is an amount deducted under subsection (4) in computing the income of the taxpayer for a taxation year that began before that time; and Exécution du b (b) there shall be included, in computing the income of the taxpayer for the taxation year of the taxpayer that includes the time that is immediately before that time, the amount determined by the formula C–D where C is the amount deducted under subsection (3) in computing the taxpayer’s income for its transition year, and D is the total of all amounts each of which is an amount included under subsection (5) in computing the taxpayer’s income for a taxation year that began before that time. Ceasing to exist (12) If at any time a taxpayer ceases to exist (otherwise than as a result of a merger to which subsection 87(2) applies, a winding-up to which subsection 88(1) applies or a continuation to which subsection 98(6) applies), for the purposes of subsection (11), the taxpayer is deemed to have ceased to be a financial institution at the earlier of (a) the time (determined without reference to this subsection) at which the taxpayer ceased to be a financial institution, and (b) the time that is immediately before the end of the last taxation year of the taxpayer that ended at or before the time at which the taxpayer ceased to exist. (2) Subsection (1) applies to taxation years that begin after September 2006. 49. (1) Section 142.6 of the Act is amended by adding the following after subsection (1.3): C. 2 Change in status — prescribed payment card corporation share (1.4) If, at any particular time in a taxation year of a taxpayer that is a financial institution for the taxation year, a property becomes a mark-to-market property of the taxpayer for the taxation year because it ceased, at the particular time, to be a prescribed payment card corporation share of the taxpayer, Budget Implem (a) the taxpayer is deemed (i) to have disposed of the property immediately before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time, and (ii) to have acquired the property, at the particular time, at a cost equal to those proceeds; and (b) subsection 142.5(1) does not apply to the disposition under subparagraph (a)(i). Change in status — prescribed securities exchange investment (1.5) If, at any particular time in a taxation year of a taxpayer that is a financial institution for the taxation year, a property becomes a mark-to-market property of the taxpayer for the taxation year because it ceased, at the particular time, to be a prescribed securities exchange investment of the taxpayer, (a) the taxpayer is deemed (i) to have disposed of the property immediately before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time, and (ii) to have acquired the property, at the particular time, at a cost equal to those proceeds; and (b) subsection 142.5(1) does not apply to the disposition under subparagraph (a)(i). Change in status — significant interest (1.6) If, at the end of a particular taxation year of a taxpayer that is a financial institution for the taxation year, the taxpayer holds a share of the capital stock of a corporation, the taxpayer has a significant interest in that corporation at any time in the particular taxation year and the share is mark-to-market property of the taxpayer for the immediately following taxation year, the taxpayer is deemed to have, Exécution du b (a) disposed of the share immediately before the end of the particular taxation year for proceeds of disposition equal to the fair market value, at that time, of the share; and (b) acquired the share at the end of the particular taxation year at a cost equal to those proceeds. (2) Subsection 142.6(2) of the Act is replaced by the following: Deemed disposition not applicable (2) For the purposes of this Act, the determination of when a taxpayer acquired a share shall be made without regard to a disposition or acquisition that occurred because of subsection 142.5(2) or subsection (1), (1.1), (1.2), (1.4), (1.5) or (1.6). (3) Subsection 142.6(1.4) of the Act, as enacted by subsection (1), applies to taxation years that end after February 22, 1994. (4) Subsection 142.6(1.5) of the Act, as enacted by subsection (1), applies to taxation years that begin after 1998. (5) Subsection 142.6(1.6) of the Act, as enacted by subsection (1), applies to taxation years that begin after September 2006. (6) Subsection (2) applies to taxation years that begin after September 2006. 50. (1) Subsection 143.1(1) of the Act is replaced by the following: Definitions “amateur athlete” « athlète amateur » 143.1 (1) The definitions in this subsection apply in this section. “amateur athlete” at any time means an individual (other than a trust) who is, at that time, (a) a member of a registered Canadian amateur athletic association; (b) eligible to compete, in an international sporting event sanctioned by an international sports federation, as a Canadian national team member; and (c) not a professional athlete. 86 “professional athlete” « athlète professionnel » “qualifying performance income” « revenu de performance admissible » C. 2 Budget Implem “professional athlete” means an individual who receives income that is compensation for, or is otherwise attributable to, the individual’s activities as a player or athlete in a professional sport. “qualifying performance income” of an individual means income that (a) is received by the individ- ual in a taxation year in which (i) the individual was, at any time, an amateur athlete, and (ii) the individual was not, at any time, a professional athlete; (b) may reasonably be considered to be in connection with the individual’s participation as an amateur athlete in one or more international sporting events referred to in the definition “amateur athlete”; and (c) is endorsement income, prize money, or income from public appearances or speeches. “third party” « tiers » “third party” in respect of an arrangement described in paragraph (1.1)(b) means a person who deals at arm’s length with the amateur athlete in respect of the arrangement. Where subsection (1.2) applies (1.1) Subsection (1.2) applies where, at any time, (a) a national sport organization that is a registered Canadian amateur athletic association receives an amount for the benefit of an individual under an arrangement made under rules of an international sport federation that require amounts to be held, controlled and administered by the organization in order to preserve the eligibility of the individual to compete in a sporting event sanctioned by the federation; or (b) an individual enters into an arrangement that Exécution du b (i) is an account with an issuer described in paragraph (b) of the definition “qualifying arrangement” in subsection 146.2(1), or that would be so described if that definition applied at that time, (ii) provides that no amount may be deposited, credited or added to the account, other than an amount that is qualifying performance income of the individual or that is interest or other income in respect of the property deposited, credited or added to the account, (iii) provides that a third party is a mandatory signatory on any payment from the account, and (iv) is not a registered retirement savings plan or a TFSA. Amateur athletes’ reserve funds (1.2) If this subsection applies in respect of an arrangement referred to in subsection (1.1), (a) an inter vivos trust (in this section referred to as the “amateur athlete trust”) is deemed (i) to be created on the day on which the first amount referred to in paragraph (1.1)(a) or (b) is received by the sport organization or by the issuer, as the case may be, in respect of the arrangement, and (ii) to exist until subsection (3) or (4) applies in respect of the trust; (b) all property held under the arrangement is deemed to be the property of the amateur athlete trust and not property of any other person; (c) if, at any time, the sport organization or the issuer, as the case may be, receives an amount under the arrangement and the amount would, in the absence of this subsection, be included in computing the income of the individual in respect of the arrangement for the taxation year that includes that time, the amount is deemed to be income of the amateur athlete trust for that taxation year and not to be income of the individual; C. 2 Budget Implem (d) if, at any time, the sport organization or the issuer, as the case may be, pays or transfers an amount under the arrangement to or for the benefit of the individual, the amount is deemed to be an amount distributed at that time to the individual by the amateur athlete trust; (e) the individual is deemed to be the beneficiary under the amateur athlete trust; (f) the sport organization or the third party, as the case may be, in respect of the arrangement is deemed to be the trustee of the amateur athlete trust; and (g) no tax is payable under this Part by the amateur athlete trust on its taxable income for any taxation year. (2) Subsection (1) applies to the 2008 and subsequent taxation years except that, if the individual in respect of an amateur athlete trust elects under this subsection in writing filed with the Minister of National Revenue on or before the individual’s filing-due date for the 2008 taxation year, in its application to the individual and the amateur athlete trust for the 2008 taxation year, paragraph 143.1(1.2)(c) of the Act, as enacted by subsection (1), is to be read as follows: (c) if, at any time before March 3, 2009, the sport organization or the issuer, as the case may be, receives an amount under the arrangement and the amount would, in the absence of this subsection, be included in computing the income of the individual in respect of the arrangement for the 2008 taxation year, the amount is deemed to be income of the amateur athlete trust for its 2009 taxation year and not to be income of the individual; 51. (1) Paragraph (b) of the definition “earned income” in subsection 146(1) of the Act is replaced by the following: (b) an amount included under paragraph 56(1)(b), (c.2), (g) or (o) or subparagraph 56(1)(r)(v) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada, Exécution du b (2) The description of D in paragraph (b) of the definition “unused RRSP deduction room” in subsection 146(1) of the Act is replaced by the following: D is the total of all amounts each of which is an amount deducted by the taxpayer, (i) under subsection (5) or (5.1) or paragraph 60(v), in computing the taxpayer’s income for the year, or (ii) under paragraph 10 of Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980 or a similar provision in another tax treaty, in computing the taxpayer’s taxable income for the year, and (3) Section 146 of the Act is amended by adding the following after subsection (8.91): Deduction for post-death reduction in value (8.92) If the annuitant under a registered retirement savings plan dies before the maturity of the plan, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the plan have been paid, by the formula A–B where A is the total of all amounts each of which is (a) the amount deemed by subsection (8.8) to have been received by the annuitant as a benefit out of or under the plan, (b) an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer as a benefit out of or under the plan and included, because of subsection (8), in computing the taxpayer’s income, or (c) a tax-paid amount in respect of the plan; and C. 2 Budget Implem B is the total of all amounts paid out of or under the plan after the death of the annuitant. Subsection (8.92) not applicable (8.93) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (8.92) in respect of a registered retirement savings plan, that subsection does not apply if (a) at any time after the death of the annuitant, a trust governed by the plan held a non-qualified investment; or (b) the last payment out of or under the plan was made after the end of the year following the year in which the annuitant died. (4) Subsection (1) applies to the 1997 and subsequent taxation years, except that in its application to the 1997 to 2007 taxation years, paragraph (b) of the definition “earned income” in subsection 146(1) of the Act, as enacted by subsection (1), is to be read without reference to “or subparagraph 56(1)(r)(v)”. (5) Subsection (2) applies to the 2009 and subsequent taxation years. (6) Subsection (3) applies in respect of a registered retirement savings plan in respect of which the last payment out of the plan is made after 2008. 52. (1) Paragraph (h) of the definition “regular eligible amount” in subsection 146.01(1) of the Act is replaced by the following: (h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000, and (2) Paragraph (g) of the definition “supplemental eligible amount” in subsection 146.01(1) of the Act is replaced by the following: (g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000, and Exécution du b (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years in respect of withdrawals made after January 27, 2009. 53. (1) Subparagraph (b)(ii) of the definition “qualifying arrangement” in subsection 146.2(1) of the Act is replaced by the following: (ii) an annuity contract with an issuer that is a licensed annuities provider, or (2) Subsections 146.2(3) to (9) of the Act are replaced by the following: Paragraphs (2)(a), (b) and (e) not applicable (3) The conditions in paragraphs (2)(a), (b) and (e) do not apply to the extent that they are inconsistent with subsection (4). Using TFSA interest as security for a loan (4) A holder of a TFSA may use the holder’s interest or, for civil law, right in the TFSA as security for a loan or other indebtedness if (a) the terms and conditions of the indebtedness are terms and conditions that persons dealing at arm’s length with each other would have entered into; and (b) it can reasonably be concluded that none of the main purposes for that use is to enable a person (other than the holder) or a partnership to benefit from the exemption from tax under this Part of any amount in respect of the TFSA. TFSA (5) If the issuer of an arrangement that is, at the time it is entered into, a qualifying arrangement files with the Minister, before March of the calendar year following the calendar year in which the arrangement was entered into, an election in prescribed form and manner to register the arrangement as a TFSA under the Social Insurance Number of the individual with whom the arrangement was entered into, the arrangement becomes a TFSA at the time the arrangement was entered into and ceases to be a TFSA at the earliest of the following times: C. 2 Budget Implem (a) the time at which the last holder of the arrangement dies; (b) the time at which the arrangement ceases to be a qualifying arrangement; or (c) the earliest time at which the arrangement is not administered in accordance with the conditions in subsection (2). Trust not taxable (6) No tax is payable under this Part by a trust that is governed by a TFSA on its taxable income for a taxation year, except that, if at any time in the taxation year, it carries on one or more businesses or holds one or more properties that are non-qualified investments (as defined in subsection 207.01(1)) for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose, (a) “income” includes dividends described in section 83; and (b) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition. Amount credited to a deposit (7) An amount that is credited or added to a deposit that is a TFSA as interest or other income in respect of the TFSA is deemed not to be received by the holder of the TFSA solely because of that crediting or adding. Trust ceasing to be a TFSA (8) If an arrangement that governs a trust ceases, at a particular time, to be a TFSA, (a) the trust is deemed (i) to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time, and Exécution du b (ii) to have acquired, at the particular time, each such property at a cost equal to that fair market value; (b) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and (c) a taxation year of the trust is deemed to begin at the particular time. Trust ceasing to be a TFSA on death of holder (9) If an arrangement that governs a trust ceases to be a TFSA because of the death of the holder of the TFSA, (a) the arrangement is deemed, for the purposes of subsections (6) and (8), any regulations made under subsection (13), the definition “trust” in subsection 108(1), paragraph 149(1)(u.2) and the definitions “qualified investment” and “non-qualified investment” in subsection 207.01(1), to continue to be a TFSA until, and to cease to be a TFSA immediately after, the exemptionend time, being in this subsection the earlier of (i) the time at which the trust ceases to exist, and (ii) the end of the first calendar year that begins after the holder dies; (b) there shall be included in computing a taxpayer’s income for a taxation year the total of all amounts each of which is an amount determined by the formula A–B where A is the amount of a payment made out of or under the trust, in satisfaction of all or part of the taxpayer’s beneficial interest in the trust, in the taxation year, after the holder’s death and at or before the exemption-end time, and C. 2 Budget Implem B is an amount designated by the trust not exceeding the lesser of (i) the amount of the payment, and (ii) the amount by which the fair market value of all of the property held by the trust immediately before the holder’s death exceeds the total of all amounts each of which is the value of B in respect of any other payment made out of or under the trust; and (c) there shall be included in computing the trust’s income for its first taxation year, if any, that begins after the exemption-end time the amount determined by the formula A–B where A is the fair market value of all of the property held by the trust at the exemption-end time, and B is the amount by which the fair market value of all of the property held by the trust immediately before the holder’s death exceeds the total of all amounts each of which is the value of B in paragraph (b) in respect of a payment made out of or under the trust. Annuity contract ceasing to be a TFSA (10) If an annuity contract ceases, at a particular time, to be a TFSA, (a) the holder of the TFSA is deemed to have disposed of the contract immediately before the particular time for proceeds equal to its fair market value immediately before the particular time; (b) the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a TFSA; and (c) each person who has an interest or, for civil law, a right in the separate annuity contract at the particular time is deemed to Exécution du b acquire the interest at the particular time at a cost equal to its fair market value at the particular time. Deposit ceasing to be a TFSA (11) If a deposit ceases, at a particular time, to be a TFSA, (a) the holder of the TFSA is deemed to have disposed of the deposit immediately before the particular time for proceeds equal to its fair market value immediately before the particular time; and (b) each person who has an interest or, for civil law, a right in the deposit at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time. Arrangement is TFSA only (12) An arrangement that is a qualifying arrangement at the time it is entered into is deemed not to be a retirement savings plan, an education savings plan, a retirement income fund or a disability savings plan. Regulations (13) The Governor in Council may make regulations requiring issuers of TFSAs to file information returns in respect of TFSAs. (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 54. (1) Section 146.3 of the Act is amended by adding the following after subsection (1): Adjusted minimum amount for 2008 (1.1) The minimum amount under a retirement income fund for 2008 is 75 per cent of the amount that would, in the absence of this subsection, be the minimum amount under the fund for the year. Exceptions (1.2) Subsection (1.1) does not apply to a retirement income fund (a) for the purposes of subsections (5.1) and 153(1) and the definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act; nor C. 2 Budget Implem (b) if the individual who was the annuitant under the fund on January 1, 2008 attained 70 years of age in 2007. (2) Section 146.3 of the Act is amended by adding the following after subsection (6.2): Deduction for post-death reduction in value (6.3) If the last annuitant under a registered retirement income fund dies, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the fund have been paid, by the formula A–B where A is the total of all amounts each of which is (a) the amount deemed by subsection (6) to have been received by the annuitant out of or under the fund, (b) an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer out of or under the fund and included, because of subsection (5), in computing the taxpayer’s income, or (c) an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount (within the meaning assigned by subsection 146(1)) in respect of the fund; and B is the total of all amounts paid out of or under the fund after the death of the annuitant. Subsection (6.3) not applicable (6.4) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (6.3) in respect of a registered retirement income fund, that subsection does not apply if (a) at any time after the death of the annuitant, a trust governed by the fund held an investment that is not a qualified investment; or Exécution du b (b) the last payment out of or under the fund was made after the end of the year following the year in which the annuitant died. (3) Subsection (2) applies in respect of a registered retirement income fund in respect of which the last payment out of the fund is made after 2008. 55. (1) The definition “entrusted shares percentage” in subsection 149.1(1) of the Act is repealed. (2) The definition “divestment obligation percentage” in subsection 149.1(1) of the Act is replaced by the following: “divestment obligation percentage” « pourcentage de dessaisissement » “divestment obligation percentage” of a private foundation for a particular taxation year, in respect of a class of shares of the capital stock of a corporation, is the percentage, if any, that is the lesser of (a) the excess, if any, at the end of the taxation year, of the percentage of issued and outstanding shares of that class that are held by the private foundation over the exempt shares percentage of the private foundation, and (b) the percentage determined by the formula A+B–C where A is the percentage determined under this paragraph in respect of the private foundation in respect of the class for the preceding taxation year, B is the total of all percentages, each of which is the portion of a net increase in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(5), and C is the total of all percentages, each of which is the portion of a net decrease in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for C. 2 Budget Implem a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(7); (3) Paragraph (c) of the definition “excess corporate holdings percentage” in subsection 149.1(1) of the Act is replaced by the following: (c) in any other case, the number of percentage points, if any, by which the total corporate holdings percentage of the private foundation in respect of the class, at that time, exceeds the greater of 20% and the exempt shares percentage, at that time, of the private foundation in respect of the class; (4) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order: “equity percentage” « pourcentage d’intérêt » “exempt shares” « actions exonérées » “equity percentage” of a person in a corporation has, subject to subsection 149.2(2.1), the same meaning as defined in subsection 95(4); “exempt shares” held by a private foundation at any particular time means shares, of a class of the capital stock of a corporation, (a) that were acquired by the private foundation by way of a gift that was subject to a trust or direction that the shares are to be held by the private foundation for a period ending not earlier than the particular time, if the gift was made (i) before March 19, 2007, (ii) on or after March 19, 2007 and before March 19, 2012 (A) under the terms of a will that was executed by a taxpayer before March 19, 2007 and not amended, by codicil or otherwise, on or after March 19, 2007, and (B) in circumstances where no other will of the taxpayer was executed or amended on or after March 19, 2007, or (iii) on or after March 19, 2007, under the terms of a testamentary or inter vivos trust created before March 19, 2007, and not amended on or after March 19, 2007, Exécution du b (b) that were last acquired by the private foundation before March 19, 2007, other than shares that, at the particular time, (i) are described in paragraph (a), (ii) are listed on a designated stock exchange, or (iii) are shares of the capital stock of a particular corporation, which particular corporation has an equity percentage greater than 0% in a public corporation, a class of the shares of the capital stock of which is listed on a designated stock exchange, if (A) a corporation (in this subparagraph referred to as a “controlled corporation” and which may, for greater certainty, be the particular corporation) (I) owns one or more shares of a class of the capital stock of the public corporation, and (II) is controlled, directly or indirectly in any manner whatever, by one or more relevant persons in respect of the private foundation, or by the private foundation alone or together with one or more such relevant persons, (B) the private foundation, if it held directly the shares described in subclause (A)(I), would have an excess corporate holdings percentage (determined without reference to subsection 149.2(8)) in respect of that class of shares that is greater than 0%, and (C) the private foundation, alone or together with all controlled corporations, holds more than an insignificant interest in respect of the class of shares described in subclause (A)(I), or (c) that are substituted shares held by the private foundation; “exempt shares percentage” « pourcentage d’actions exonérées » “exempt shares percentage” of a private foundation at any time, in respect of a class of shares of the capital stock of a corporation, is the total of all amounts, each of which is the percentage of C. 2 Budget Implem the issued and outstanding shares of that class that are exempt shares held by the private foundation at that time; “substituted shares” « actions de remplacement » “substituted shares” held by a private foundation means shares acquired by the private foundation, in exchange for exempt shares held by the private foundation, in the course of a transaction to which section 51, subsection 85.1(1) or section 86 or 87 applies; (5) Subsection 149.1(15) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and’’ at the end of paragraph (c) and by adding the following after paragraph (c): (d) the Minister, or a Minister referred to in paragraph 110.1(8)(e), may make available to the public in any manner a listing of the registered charities in respect of which an opinion has been formed for the purpose of paragraph 110.1(8)(e) or revoked under subsection 110.1(9). (6) Subsections (1) to (4) apply after March 18, 2007. 56. (1) Section 149.2 of the Act is amended by adding the following after subsection (2): Ownership (2.1) For the purposes of the definition “equity percentage”, and subparagraph (b)(iii) of the definition “exempt shares”, in subsection 149.1(1), a person who, if paragraph 251(5)(b) applied would be deemed by that paragraph to have the same position in relation to the control of a corporation as if the person owned a share, is deemed to own the share. (2) Section 149.2 of the Act is amended by adding the following after subsection (8): Exécution du b 2009 Where subsection (10) applies (9) Subsection (10) applies for the purposes of applying section 149.1 and subsections (8) and 188.1(3.1) to a private foundation at a particular time if, both on March 18, 2007 and at the particular time, (a) the private foundation was the sole trustee of a trust, or was a majority interest beneficiary (within the meaning assigned by section 251.1) of a trust more than 50% of the trustees of which were the private foundation and one or more relevant persons in respect of the private foundation; and (b) the trust held one or more shares of a class of the capital stock of a corporation. Shares held through a trust on March 18, 2007 (10) If this subsection applies at a particular time to a private foundation in respect of shares of a class of the capital stock of a corporation held by a trust, the private foundation is deemed to hold at the particular time that number of those shares as is determined by the formula A × B/C where A is the lesser of the number of those shares held by the trust on March 18, 2007 and the number so held at the particular time; B is the total fair market value of all interests held by the private foundation in the trust at the particular time; and C is the total fair market value of all property held by the trust at the particular time. Discretionary trusts (11) For the purpose of subsection (10), if the amount of income or capital of a trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be. (3) Subsection (1) applies after March 18, 2007. C. 2 Budget Implem (4) Subsection (2) applies to taxation years, of private foundations, that begin on or after February 26, 2008. (5) If a registered charity was on March 19, 2007 a private foundation, in applying paragraphs 149.2(5)(b) and (c) of the Act to the first taxation year of the registered charity that begins after that date, the reference in those paragraphs to “in the current year” shall be read as a reference to “in the period that begins on March 18, 2007 and ends at the end of the current year”. 57. (1) Section 150.1 of the Act is amended by adding the following after subsection (2): Mandatory filing of return by electronic transmission (2.1) If a corporation is, in respect of a taxation year, a prescribed corporation, the corporation shall file its return of income for the taxation year by way of electronic filing. (2) Subsection (1) applies to taxation years that end after 2009. 58. (1) Subsection 152(4) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after paragraph (b): (c) the taxpayer or person filing the return has filed with the Minister a waiver in prescribed form within the additional 3-year period referred to in paragraph (b); or (d) as a consequence of a change in the allocation of the taxpayer’s taxable income earned in a province as determined under the law of a province that provides rules similar to those prescribed for the purposes of section 124, an assessment, reassessment or additional assessment of tax for a taxation year payable by a corporation under a law of a province that imposes on the corporation a tax similar to the tax imposed under this Part (in this paragraph referred to as a “provincial reassessment”) is made, and as a consequence of the provincial reassessment, an assessment, reassessment or additional assessment is made on or before the day that is one year after the later of Exécution du b (i) the day on which the Minister is advised of the provincial reassessment, and (ii) the day that is 90 days after the day of mailing of a notice of the provincial reassessment. (2) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following: Assessment to which paragraph 152(4)(a), (b) or (c) applies (4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to, (3) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following: (b) where paragraph 4(b) or (c) applies to the assessment, reassessment or additional assessment, (4) Subsection 152(6) of the Act is amended by adding the following after paragraph (f.2): (f.3) a deduction (including for the purposes of this subsection a reduction of an amount otherwise required to be included in computing a taxpayer’s income) under subsection 146(8.9) or (8.92) or 146.3(6.2) or (6.3), (5) Section 152 of the Act is amended by adding the following after subsection (6.1): Extended reassessment period (6.2) The Minister shall reassess a taxpayer’s tax for a particular taxation year, in order to take into account the application of paragraph (d) of the definition “excluded property” in subsection C. 2 Budget Implem 142.2(1), or the application of subsection 142.6(1.6), in respect of property held by the taxpayer, if (a) the taxpayer has filed for the particular taxation year the return of income required by section 150; and (b) the taxpayer files with the Minister a prescribed form amending the return, on or before the filing-due date for the taxpayer’s taxation year that (i) if the filing is in respect of paragraph (d) of that definition “excluded property”, includes the acquisition of control time referred to in that paragraph, and (ii) if the filing is in respect of subsection 142.6(1.6), immediately follows the particular taxation year. (6) Subsection (4) applies in respect of a registered retirement income fund or a registered retirement savings plan in respect of which the last payment out of the fund or plan is made after 2008. (7) Subsection (5) applies to taxation years that begin after 2001, except that (a) for taxation years that begin before October 1, 2006, each reference in subsection 152(6.2) of the Act, as enacted by subsection (5), to paragraph (d) of the definition “excluded property” shall be read as a reference to paragraph (d.3) of the definition “mark-to-market property”; and (b) a prescribed form referred to in paragraph 152(6.2)(b) of the Act, as enacted by subsection (5), is deemed to have been filed by a taxpayer on a timely basis if it is filed by the taxpayer on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to. Exécution du b 59. (1) Paragraph 157(1.2)(a) of the Act is replaced by the following: (a) for which the amount determined under subsection (1.3) for the taxation year, or for the preceding taxation year, does not exceed $500,000; (2) Subsection (1) applies to taxation years ending after 2008, except that for taxation years that end in 2009, paragraph 157(1.2)(a) of the Act, as enacted by subsection (1), shall be read as follows: (a) for which (i) the amount determined under subsection (1.3) for the taxation year does not exceed the amount that is the total of $400,000 and that proportion of $100,000 that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year, or (ii) the amount determined under subsection (1.3) for the preceding taxation year does not exceed $400,000; 60. (1) Section 162 of the Act is amended by adding the following after subsection (7): Late filing penalty — prescribed information returns (7.01) Every person (other than a registered charity) or partnership who fails to file, when required by this Act or the regulations, one or more information returns of a type prescribed for the purpose of this subsection is liable to a penalty equal to the greater of $100 and (a) where the number of those information returns is less than 51, $10 multiplied by the number of days, not exceeding 100, during which the failure continues; (b) where the number of those information returns is greater than 50 and less than 501, $15 multiplied by the number of days, not exceeding 100, during which the failure continues; (c) where the number of those information returns is greater than 500 and less than 2,501, $25 multiplied by the number of days, not exceeding 100, during which the failure continues; C. 2 Budget Implem (d) where the number of those information returns is greater than 2,500 and less than 10,001, $50 multiplied by the number of days, not exceeding 100, during which the failure continues; and (e) where the number of those information returns is greater than 10,000, $75 multiplied by the number of days, not exceeding 100, during which the failure continues. Failure to file in appropriate mannerprescribed information returns (7.02) Every person (other than a registered charity) or partnership who fails to file, in the manner required by the regulations, one or more information returns of a type prescribed for the purpose of this subsection is liable to a penalty equal to (a) where the number of those information returns is greater than 50 and less than 251, $250; (b) where the number of those information returns is greater than 250 and less than 501, $500; (c) where the number of those information returns is greater than 500 and less than 2,501, $1,500; (d) where the number of those information returns is greater than 2,500, $2,500; and (e) in any other case, nil. (2) Section 162 of the Act is amended by adding the following after subsection (7.1): Failure to file in appropriate manner- return of income (7.2) Every person who fails to file a return of income for a taxation year as required by subsection 150.1(2.1) is liable to a penalty equal to $1,000. (3) Subsection (1) applies to returns required to be filed after 2009. (4) Subsection (2) applies to taxation years that end after 2010 except that, in its application to the 2011 and 2012 taxation Exécution du b years, the reference to $1,000 in subsection 162(7.2) of the Act, as enacted by subsection (2), is to be read as (a) $250, for the 2011 taxation year; and (b) $500, for the 2012 taxation year. 61. (1) Clause 181.3(1)(c)(ii)(B) of the Act is repealed. (2) Subsection (1) applies to taxation years that begin after September 2006. 62. (1) Paragraph 188.1(3.2)(c) of the Act is replaced by the following: (c) each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the corporation, determined without reference to this subsection. (2) Section 188.1 of the Act is amended by adding the following after subsection (3.2): Where subsection (3.5) applies (3.3) Subsection (3.5) applies to a private foundation at a particular time in a taxation year if (a) at the particular time, a person (in this subsection and subsection (3.5) referred to as an “insider” of the private foundation) that is the private foundation, or is a relevant person in respect of the private foundation, is a beneficiary under a trust; (b) at or before the particular time (i) the insider acquired an interest in or under the trust, or (ii) the trust acquired a property; (c) it may reasonably be considered that a purpose of the acquisition described in paragraph (b) was to hold, directly or indirectly, shares of a class of the capital stock of a corporation (referred to in subsection (3.5) as the “subject corporation”); C. 2 Budget Implem (d) the shares described in paragraph (c) would, if they were held by the insider, cause the private foundation to have a divestment obligation percentage for the taxation year; and (e) at the particular time, the insider holds the interest described in subparagraph (b)(i), or the trust holds the property described in subparagraph (b)(ii), as the case may be. Rules applicable (3.4) For the purpose of subsections (3.3) and (3.5), (a) interests (or, for civil law, rights), other than shares, of a trust in a corporation that entitle the trust to a right described in paragraph 251(5)(b) in respect of a class of the capital stock of the corporation, are deemed to be converted into shares of that class in the manner described by paragraph (3.2)(a); and (b) if the amount of income or capital of the trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be. Avoidance of divestiture (3.5) If this subsection applies to a private foundation at a particular time in respect of an interest of an insider of the private foundation in a trust, for the purposes of applying this section, subsection 149.1(1) and section 149.2, (a) the insider is deemed to hold at the particular time, in addition to any shares of the capital stock of the subject corporation that it holds otherwise than because of this subsection, the number of shares, of the class of shares referred to in paragraph (3.3)(c), determined by the formula A × B/C where A is the number of shares of that class that are held, directly or indirectly, by the trust at the particular time, Exécution du b B is the total fair market value of all interests held by the insider in the trust at the particular time, and C is the total fair market value of all property held by the trust at the particular time; (b) each of those shares is deemed to be a share that is issued by the subject corporation and outstanding and to continue to be held by the holder until such time as the holder no longer holds the interest or right; and (c) each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the subject corporation, determined without reference to this subsection. (3) Subsections (1) and (2) apply to taxation years, of private foundations, that begin on or after February 26, 2008. 63. (1) Subparagraph 190.11(b)(ii) of the Act is repealed. (2) Subsection (1) applies to taxation years that begin after September 2006. 64. (1) Subparagraph 190.13(c)(iv) of the Act is repealed. (2) Subsection (1) applies to taxation years that begin after September 2006. 65. (1) The portion of the definition “SIFT partnership” in subsection 197(1) of the Act before paragraph (a) is replaced by the following: “SIFT partnership” « société de personnes intermédiaire de placement déterminée » “SIFT partnership”, being a specified investment flow-through partnership, for any taxation year, means a partnership other than an excluded subsidiary entity (as defined in subsection 122.1(1)) for the taxation year that meets the following conditions at any time during the taxation year: (2) Subsection (1) is deemed to have come into force on October 31, 2006. C. 2 Budget Implem 66. (1) Paragraph (c.1) of the definition “qualified investment” in section 204 of the Act is replaced by the following: (c.1) debt obligations that meet the following criteria, namely, (i) any of (A) the debt obligations had, at the time of acquisition by the trust, an investment grade rating with a prescribed credit rating agency, (B) the debt obligations have an investment grade rating with a prescribed credit rating agency, or (C) the debt obligations were acquired by the trust in exchange for debt obligations that satisfied the condition in clause (A) and as part of a proposal to, or an arrangement with, the creditors of the issuer of the debt obligations that has been approved by a court under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, and (ii) either (A) the debt obligations were issued as part of a single issue of debt of at least $25 million, or (B) in the case of debt obligations that are issued on a continuous basis under a debt issuance program, the issuer of the debt obligations had issued and outstanding debt under the program of at least $25 million, (2) Subsection (1) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment. 67. (1) The portion of clause 204.81(1)(c)(ii)(A) of the Act before subclause (I) is replaced by the following: Exécution du b (A) Class A shares that are issuable only to individuals (other than trusts), trusts governed by registered retirement savings plans and trusts governed by TFSAs and that entitle their holders (2) Subsection (1) applies to the 2009 and subsequent taxation years. 68. (1) The definition “restricted property” in subsection 207.01(1) of the Act is repealed. (2) Paragraph (a) of the definition “advantage” in subsection 207.01(1) of the Act is amended by striking out “and” at the end of subparagraphs (i) and (ii) and by adding the following after subparagraph (ii): (iii) a distribution under the TFSA, and (iv) the payment or allocation of any amount to the TFSA by the issuer; and (3) Paragraph (b) of the definition “advantage” in subsection 207.01(1) of the Act is replaced by the following: (b) a benefit that is an increase in the total fair market value of the property held in connection with the TFSA if it is reasonable to consider, having regard to all the circumstances, that the increase is attributable, directly or indirectly, to (i) a transaction or event or a series of transactions or events that (A) would not have occurred in an open market in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and (B) had as one of its main purposes to enable a person or a partnership to benefit from the exemption from tax under Part I of any amount in respect of the TFSA, or (ii) a payment received as, on account or in lieu of, or in satisfaction of, a payment C. 2 Budget Implem (A) for services provided by a person who is, or who does not deal at arm’s length with, the holder of the TFSA, or (B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition, in respect of property (other than property held in connection with the TFSA) held by a person who is, or who does not deal at arm’s length with, the holder of the TFSA; and (c) a prescribed benefit. (4) The description of E in the definition “excess TFSA amount” in subsection 207.01(1) of the Act is replaced by the following: E is the total of all amounts each of which is the qualifying portion of a distribution made in the calendar year and at or before the particular time under a TFSA of which the individual was the holder at the time of the distribution and, for this purpose, the qualifying portion of a distribution is (a) nil, if the distribution is a qualifying transfer or a prescribed distribution, and (b) in any other case, the lesser of (i) the amount of the distribution, and (ii) the amount that would be the individual’s excess TFSA amount at the time of the distribution if the amount of the distribution were nil. (5) The portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a) is replaced by the following: Exécution du b 2009 “prohibited investment” « placement interdit » “prohibited investment”, at any time, for a trust governed by a TFSA means property (other than prescribed property) that is at that time (6) Paragraph (d) of the definition “prohibited investment” in subsection 207.01(1) of the Act is replaced by the following: (d) prescribed property. (7) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order: “exempt contribution” « cotisation exclue » “exempt contribution” means a contribution made in a calendar year under a TFSA by the survivor of an individual if (a) the contribution is made during the period (in this definition referred to as the “rollover period”) that begins when the individual dies and that ends at the end of the first calendar year that begins after the individual dies (or at any later time that is acceptable to the Minister); (b) a payment (in this definition referred to as the “survivor payment”) was made to the survivor during the rollover period, as a consequence of the individual’s death, directly or indirectly out of or under an arrangement that ceased, because of the individual’s death, to be a TFSA; (c) the survivor designates, in prescribed form filed in prescribed manner within 30 days after the day on which the contribution is made, the contribution in relation to the survivor payment; and (d) the amount of the contribution does not exceed the least of (i) the amount, if any, by which (A) the amount of the survivor payment exceeds (B) the total of all other contributions designated by the survivor in relation to the survivor payment, (ii) the amount, if any, by which C. 2 Budget Implem (A) the total proceeds of disposition that would, if section 146.2 were read without reference to subsection 146.2(9), be determined in respect of the arrangement under paragraph 146.2(8)(a), (10)(a) or (11)(a), as the case may be, exceeds (B) the total of all other exempt contributions in respect of the arrangement made by the survivor at or before the time of the contribution, and (iii) if the individual had, immediately before the individual’s death, an excess TFSA amount or if payments described in paragraph (b) are made to more than one survivor of the individual, nil or the greater amount, if any, allowed by the Minister in respect of the contribution. (8) Subsection 207.01(2) of the Act is repealed. (9) The portion of subsection 207.01(3) of the Act before paragraph (a) is replaced by the following: Survivor as successor holder (3) If an individual’s survivor becomes the holder of a TFSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess TFSA amount, the survivor is deemed (other than for the purposes of the definition “exempt contribution”) to have made, at the beginning of the month following the individual’s death, a contribution under a TFSA equal to the amount, if any, by which (10) Subsections (1) to (9) apply to the 2009 and subsequent taxation years. 69. (1) The portion of section 207.03 of the Act before paragraph (a) is replaced by the following: 2009 Tax payable on non-resident contributions Exécution du b 207.03 If, at a particular time, a non-resident individual makes a contribution under a TFSA (other than a contribution that is a qualifying transfer or an exempt contribution), the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of (2) Subsection (1) applies to the 2009 and subsequent taxation years. 70. (1) Subsection 207.04(3) of the Act is replaced by the following: Where both prohibited and non-qualified investment (3) For the purposes of this section and subsection 146.2(6), if a trust governed by a TFSA holds property at any time that is, for the trust, both a prohibited investment and a nonqualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust. (2) The portion of subsection 207.04(7) of the Act before paragraph (b) is replaced by the following: Amount of additional tax payable (7) The amount of tax payable under subsection (6) for a calendar year is 150% of the amount of tax that would be payable under Part I by the trust for the taxation year that ends in the calendar year if (a) the Act were read without reference to paragraph 82(1)(b), section 121 and subsection 146.2(6); and (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 71. (1) The portion of subsection 207.06(2) of the Act before paragraph (a) is replaced by the following: Waiver of tax payable (2) If a person would otherwise be liable to pay a tax under this Part because of subsection 207.04(1) or section 207.05, the Minister may waive or cancel all or part of the liability where the Minister considers it just and equitable to do so having regard to all the circumstances, including C. 2 Budget Implem (2) Subsection (1) applies to the 2009 and subsequent taxation years. 72. (1) Paragraph (a) of the definition “registered life insurance policy” in subsection 211(1) of the Act is replaced by the following: (a) as a registered retirement savings plan, or (2) Subsection (1) applies to the 2009 and subsequent taxation years. 73. (1) Paragraph 212(1)(p) of the Act is replaced by the following: Former TFSA (p) an amount that would, if the non-resident person had been resident in Canada at the time at which the amount was paid, be required by paragraph 12(1)(z.5) to be included in computing the non-resident person’s income for the taxation year that includes that time; (2) Subsection (1) applies to the 2009 and subsequent taxation years. 74. (1) The definition “assessable distribution” in subsection 218.3(1) of the Act is replaced by the following: “assessable distribution” « distribution déterminée » “assessable distribution”, in respect of a Canadian property mutual fund investment, means the portion of any amount that is paid or credited (otherwise than as a SIFT trust wind-up event), by the mutual fund that issued the investment, to a non-resident investor who holds the investment, and that is not otherwise subject to tax under Part I or Part XIII. (2) Subsection (1) applies after July 14, 2008. 75. (1) The portion of subsection 241(1) of the Act before paragraph (a) is replaced by the following: Provision of information 241. (1) Except as authorized by this section, no official or other representative of a government entity shall (2) Subsection 241(2) of the Act is replaced by the following: 2009 Evidence relating to taxpayer information Exécution du b (2) Notwithstanding any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information. (3) Paragraph 241(4)(l) of the Act is replaced by the following: (l) subject to subsection (9.2), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number (other than an excluded individual), if the information is provided solely for the purposes of the administration or enforcement of (i) an Act of Parliament or of a legislature of a province, or (ii) a by-law of a municipality in Canada or a law of an aboriginal government; (4) The portion of subsection 241(5) of the Act before paragraph (a) is replaced by the following: Disclosure to taxpayer or on consent (5) An official or other representative of a government entity may provide taxpayer information relating to a taxpayer (5) The portion of subsection 241(6) of the Act before paragraph (a) is replaced by the following: Appeal from order or direction (6) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official, other representative of a government entity or authorized person to give or produce evidence relating to any taxpayer information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to C. 2 Budget Implem (6) Section 241 of the Act is amended by adding the following after subsection (9.1): Restrictions on information sharing (9.2) No information may be provided to a representative of a government entity under paragraph (4)(l) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service. Public disclosure (9.3) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number (other than an excluded individual). Public disclosure by representative of government entity (9.4) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number (other than an excluded individual), if (a) a representative of the government entity was provided with that information pursuant to paragraph (4)(l); and (b) the government entity uses the business number as an identifier in connection with the program, activity or service. (7) The portion of the definition “taxpayer information” in subsection 241(10) of the Act after paragraph (b) is replaced by the following: but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom it relates and, for the purposes of applying subsections (2), (5) and (6) to a representative of a government entity that is not an official, taxpayer information includes only the information referred to in paragraph (4)(l); Exécution du b (8) Subsection 241(10) of the Act is amended by adding the following in alphabetical order: “aboriginal government” « gouvernement autochtone » “contact information” « coordonnées » “aboriginal government” means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act; “contact information”, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more (a) trustees of the holder, if the holder is a trust, (b) members of the holder, if the holder is a partnership, (c) officers of the holder, if the holder is a corporation, or (d) officers or members of the holder, if the holder is not described by any of paragraphs (a) to (c); “corporate information” « renseignements d’entreprise » “excluded individual” « particulier exclu » “government entity” « entité gouvernementale » “corporate information”, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation; “excluded individual” means an individual who is a holder of a business number solely because the individual is required under this Act to deduct or withhold an amount from an amount paid or credited or deemed to be paid or credited; “government entity” means (a) a department or agency of the government of Canada or of a province, (b) a municipality in Canada, (c) an aboriginal government, C. 2 Budget Implem (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is (i) Her Majesty in right of Canada, (ii) Her Majesty in right of a province, (iii) a municipality in Canada, or (iv) a corporation described in this paragraph, or (e) a board or commission, established by Her Majesty in right of Canada or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by one or more municipalities in Canada, that performs an administrative or regulatory function of a municipality; “registration information” « renseignements relatifs à l’inscription » “registration information”, in respect of a holder of a business number, means (a) any information pertaining to the legal form of the holder, (b) the type of activities carried on or proposed to be carried on by the holder, (c) each date on which (i) the business number was issued to the holder, (ii) the holder began activities, (iii) the holder ceased or resumed activities, or (iv) the business number assigned to the holder was changed, and (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv); “representative” « représentant » “representative” of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (1), (2), (5) and (6), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged; Exécution du b 76. (1) The definition “functional currency” in subsection 248(1) of the Act is repealed. (2) The definitions “amateur athlete trust”, “personal trust” and “TFSA” in subsection 248(1) of the Act are replaced by the following: “amateur athlete trust” « fiducie au profit d’un athlète amateur » “amateur athlete trust” has the meaning assigned by subsection 143.1(1.2); “personal trust” « fiducie personnelle » “personal trust” means a trust (other than a trust that is, or was at any time after 1999, a unit trust) that is (a) a testamentary trust, or (b) an inter vivos trust no beneficial interest in which was acquired for consideration payable directly or indirectly to (i) the trust, or (ii) any person or partnership that has made a contribution to the trust by way of transfer, assignment or other disposition of property; “TFSA” « compte d’épargne libre d’impôt » “TFSA”, being a tax-free savings account, has the meaning assigned by subsection 146.2(5); (3) Paragraph (d) of the definition “Canadian real, immovable or resource property” in subsection 248(1) of the Act is replaced by the following: (d) a share of the capital stock of a corporation, an income or capital interest in a trust or an interest in a partnership (other than a taxable Canadian corporation, a SIFT trust or a SIFT partnership), if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or C. 2 Budget Implem (4) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: “foreign currency debt” « dette en monnaie étrangère » “SIFT trust wind-up event” « fait lié à la conversion d’une EIPDfiducie » “foreign currency debt” has the meaning assigned by subsection 111(8); “SIFT trust wind-up event” means a distribution by a particular trust resident in Canada of property to a taxpayer in respect of which the following conditions are met: (a) the distribution occurs before 2013, (b) there is a resulting disposition of all of the taxpayer’s interest as a beneficiary under the particular trust, (c) the particular trust is (i) a SIFT wind-up entity, (ii) a trust whose only beneficiary throughout the period (referred to in this definition as the “qualifying period”) that begins on July 14, 2008 and that ends at the time of the distribution is another trust that throughout the qualifying period (A) is resident in Canada, and (B) is a SIFT wind-up entity or a trust described by this subparagraph, or (iii) a trust whose only beneficiary at the time of distribution is another trust that throughout the qualifying period (A) is resident in Canada, (B) is a SIFT wind-up entity or a trust described by subparagraph (ii), and (C) is a majority interest beneficiary (within the meaning that would be assigned by section 251.1 if the references in the definition “majority interest beneficiary” in subsection 251.1(3) to “50%” were read as references to “25%”) of the particular trust, (d) the particular trust ceases to exist immediately after the distribution or immediately after the last of a series of SIFT trust Exécution du b wind-up events (determined without reference to this paragraph) of the particular trust that includes the distribution, and (e) the property was not acquired by the particular trust as a result of a transfer or an exchange (i) that is (A) a “qualifying exchange” as defined in subsection 132.2(1) or a “qualifying disposition” as defined in subsection 107.4(1), (B) made after February 2, 2009, and (C) from any person other than a SIFT wind-up entity, or (ii) to which any of sections 51, 85, 85.1, 86, 87, 88, 107.4 or 132.2 applies, of another property acquired as a result of a transfer or an exchange described by subparagraph (i) or this subparagraph; “SIFT wind-up corporation” « société de conversion d’EIPD » “SIFT wind-up corporation”, in respect of a SIFT wind-up entity, means at any particular time a corporation (a) that, at any time that is after July 13, 2008 and before the earlier of the particular time and January 1, 2013, owns all of the equity in the SIFT wind-up entity, or (b) shares of the capital stock of which are at or before the particular time distributed on a SIFT trust wind-up event of the SIFT windup entity; “SIFT wind-up entity” « EIPD convertible » “SIFT wind-up entity” means a trust or partnership that at any time in the period that began on October 31, 2006 and that ends on July 14, 2008 is (a) a SIFT trust (determined without reference to subsection 122.1(2)), (b) a SIFT partnership (determined without reference to subsection 197(8)), or (c) a real estate investment trust (as defined in subsection 122.1(1)); “SIFT wind-up entity equity” « intérêt dans une EIPD convertible » “SIFT wind-up entity equity”, or equity in a SIFT wind-up entity, means C. 2 Budget Implem (a) if the SIFT wind-up entity is a trust, a capital interest (determined without reference to subsection (25)) in the trust, and (b) if the SIFT wind-up entity is a partnership, an interest as a member of the partnership where, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, except that if all of the interests described in paragraph (a) or (b), as the case may be, in the SIFT wind-up entity are described by reference to units, it means the part of the interest represented by such a unit; (5) Subsection 248(3) of the Act is replaced by the following: Property subject to certain Quebec institutions and arrangements (3) For the purposes of this Act, if property is subject to an institution or arrangement that is described by this subsection and that is governed by the laws of the Province of Quebec, the following rules apply in respect of the property: (a) if at any time property is subject to a usufruct, right of use or habitation, or substitution, (i) the usufruct, right of use or habitation, or substitution, as the case may be, is deemed to be at that time (A) a trust, and (B) where the usufruct, right of use or habitation, or substitution, as the case may be, is created by will, a trust created by will, (ii) the property is deemed (A) where the usufruct, right of use or habitation, or substitution, as the case may be, arises on the death of a testator, Exécution du b to have been transferred to the trust on and as a consequence of the death of the testator, and not otherwise, and (B) where the usufruct, right of use or habitation, or substitution, as the case may be, arises otherwise, to have been transferred (at the time it first became subject to the usufruct, right of use or habitation, or substitution, as the case may be) to the trust by the person that granted the usufruct, right of use or habitation, or substitution, and (iii) the property is deemed to be, throughout the period in which it is subject to the usufruct, right of use or habitation, or substitution, as the case may be, held by the trust, and not otherwise; (b) an arrangement (other than a partnership, a qualifying arrangement or an arrangement that is a trust determined without reference to this paragraph) is deemed to be a trust and property subject to rights and obligations under the arrangement is, if the arrangement is deemed by this paragraph to be a trust, deemed to be held in trust and not otherwise, where the arrangement (i) is established before October 31, 2003 by or under a written contract that (A) is governed by the laws of the Province of Quebec, and (B) provides that, for the purposes of this Act, the arrangement shall be considered to be a trust, and (ii) creates rights and obligations that are substantially similar to the rights and obligations under a trust (determined without reference to this subsection); (c) if the arrangement is a qualifying arrangement, (i) the arrangement is deemed to be a trust, (ii) any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor, and C. 2 Budget Implem (iii) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise; (d) a person who has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in paragraph (a) or (b) is deemed to be beneficially interested in the trust; and (e) notwithstanding that a property is at any time subject to a servitude, the property is deemed to be beneficially owned by a person at that time if, at that time, the person has in relation to the property (i) the right of ownership, (ii) a right as a lessee under an emphyteusis, or (iii) a right as a beneficiary in a trust. Gift of bare ownership of immovables (3.1) Subsection (3) does not apply in respect of a usufruct or a right of use of an immovable in circumstances where a taxpayer disposes of the bare ownership of the immovable by way of a gift to a donee described in the definition “total charitable gifts”, “total Crown gifts” or “total ecological gifts” in subsection 118.1(1) and retains, for life, the usufruct or the right of use. Qualifying arrangement (3.2) For the purposes of paragraphs 248(3)(b) and (c), an arrangement is a qualifying arrangement if it is (a) entered into with a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee; (b) established by or under a written contract that is governed by the laws of the Province of Quebec; (c) presented as a declaration of trust or provides that, for the purposes of this Act, it shall be considered to be a trust; and Exécution du b (d) presented as an arrangement in respect of which the corporation is to take action for the arrangement to become a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA. (6) Subsection 248(25.1) of the Act is replaced by the following: Trust-to-trust transfers (25.1) Where at any time a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition “disposition” in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8) and paragraph 122(2)(f), the other trust is deemed to be after that time the same trust as, and a continuation of, the particular trust, and, for greater certainty, if the property was deemed to be taxable Canadian property of the particular trust by paragraph 51(1)(f), 85(1)(i) or 85.1(1)(a) or (8)(b), subsection 85.1(5) or 87(4) or (5) or paragraph 97(2)(c) or 107(2)(d.1) or (3.1)(d), the property is deemed to be taxable Canadian property of the other trust. (7) Subsection (1) applies in respect of taxation years that begin after December 13, 2007. (8) The definition “amateur athlete trust” in subsection 248(1) of the Act, as enacted by subsection (2), applies to the 2008 and subsequent taxation years. (9) The definition “personal trust” in subsection 248(1) of the Act, as enacted by subsection (2), applies after July 14, 2008. (10) The definition “TFSA” in subsection 248(1) of the Act, as enacted by subsection (2), applies to the 2009 and subsequent taxation years. C. 2 Budget Implem (11) Subsection (3) is deemed to have come into force on October 31, 2006. (12) The definition “foreign currency debt” in subsection 248(1) of the Act, as enacted by subsection (4), applies after 2005. (13) The definitions “SIFT trust wind-up event”, “SIFT wind-up corporation”, “SIFT wind-up entity” and “SIFT wind-up entity equity” in subsection 248(1) of the Act, as enacted by subsection (4), apply after December 19, 2007. (14) Subsections 248(3) and (3.2) of the Act, as enacted by subsection (5), apply to taxation years that begin after October 30, 2003 except that (a) for taxation years that end before 2008, (i) subparagraph 248(3)(c)(ii) of the Act, as enacted by subsection (5), shall be read without reference to the expression “a holder”, and (ii) paragraph 248(3.2)(d) of the Act, as enacted by subsection (5), shall be read without reference to registered disability savings plans and TFSAs; and (b) for taxation years that end in 2008, paragraph 248(3.2)(d) of the Act, as enacted by subsection (5), shall be read without reference to TFSAs. (15) For taxation years that begin after 1988 and before October 31, 2003, paragraph 248(3)(d) of the Act shall, in its application to each arrangement that is entered into between an individual and a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee and that is accepted by the Minister for registration under section 146 or 146.3 of the Act, be read without reference to Exécution du b (a) clause (i)(B) of that paragraph, if the arrangement is presented as a declaration of trust but does not provide that, for the purposes of the Act, the arrangement shall be considered to be a trust; and (b) subparagraph (ii) of that paragraph. (16) Subsection 248(3.1) of the Act, as enacted by subsection (5), applies to dispositions that occur after July 18, 2005. (17) Subsection (6) applies after December 19, 2007. 77. (1) Section 253.1 of the Act is replaced by the following: Investments in limited partnerships 253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b) and 132(6)(b), subsection 146.2(6), paragraphs 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 78. (1) Subsection 256(7) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) if a particular trust is the only beneficiary of another trust, the particular trust is described in paragraph (c) of the definition “SIFT trust wind-up event”, the particular trust would, in the absence of this paragraph, acquire control of a corporation solely because of a SIFT trust wind-up event that C. 2 Budget Implem is a distribution of shares of the capital stock of the corporation by the other trust, and the other trust controlled the corporation immediately before the distribution, the particular trust is deemed not to acquire control of the corporation because of the distribution. (2) Subsection 256(9) of the Act is replaced by the following: Date of acquisition of control (9) For the purposes of this Act, other than for the purposes of determining if a corporation is, at any time, a small business corporation or a Canadian-controlled private corporation, where control of a corporation is acquired by a person or group of persons at a particular time on a day, control of the corporation shall be deemed to have been acquired by the person or group of persons, as the case may be, at the beginning of that day and not at the particular time unless the corporation elects in its return of income under Part I filed for its taxation year that ends immediately before the acquisition of control not to have this subsection apply. (3) Subsection (1) applies after July 14, 2008. (4) Subsection (2) applies in respect of an acquisition of control of a corporation that occurs after 2005, other than in respect of such an acquisition of control that occurs before January 28, 2009 and in respect of which the taxpayer elects in writing, filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s 2009 taxation year, that subsection (2) not apply. (5) A taxpayer is deemed to have made the election described in subsection (4) in respect of an acquisition of control of a corporation that occurs before January 28, 2009 if it can reasonably be considered, having regard to a return of income, notice of objection, or notice of appeal, filed or served by the taxpayer under the Act before January 28, 2009, that the taxpayer has interpreted and applied subsection 256(9) of the Act for the purposes of determining if the corporation was a small business corporation or a Exécution du b Canadian-controlled private corporation at the time of the transfer of shares of the corporation that caused the acquisition of control to occur. 79. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following: Proportional holdings in trust property 259. (1) For the purposes of subsections 146(6), (10) and (10.1), 146.2(6) and 146.3(7), (8) and (9) and Parts X, X.2 and XI to XI.1, if at any time a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply, (2) Subsection (1) applies to the 2009 and subsequent taxation years. 80. (1) Section 261 of the Act is replaced by the following: Definitions “Canadian currency year” « année de déclaration en monnaie canadienne » “Canadian tax results” « résultats fiscaux canadiens » 261. (1) The following definitions apply in this section. “Canadian currency year” of a taxpayer means a taxation year that precedes the first functional currency year of the taxpayer. “Canadian tax results” of a taxpayer for a taxation year means (a) the amount of the income, taxable income or taxable income earned in Canada of the taxpayer for the taxation year; (b) the amount (other than an amount payable on behalf of another person under subsection 153(1) or section 215) of tax or other amount payable under this Act by the taxpayer in respect of the taxation year; (c) the amount (other than an amount refundable on behalf of another person in respect of amounts payable on behalf of that person under subsection 153(1) or section C. 2 Budget Implem 215) of tax or other amount refundable under this Act to the taxpayer in respect of the taxation year; and (d) any amount that is relevant in determining the amounts described in respect of the taxpayer under paragraphs (a) to (c). “elected functional currency” « monnaie fonctionnelle choisie » “functional currency” « monnaie fonctionnelle » “elected functional currency” of a taxpayer means the currency of a country other than Canada that was the functional currency of the taxpayer for its first taxation year in respect of which it made an election under paragraph (3)(b). “functional currency” of a taxpayer for a taxation year means the currency of a country other than Canada if that currency is, throughout the taxation year, (a) a qualifying currency; and (b) the primary currency in which the taxpayer maintains its records and books of account for financial reporting purposes. “functional currency year” « année de déclaration en monnaie fonctionnelle » “pre-reversion debt” « créance prérétablissement » “pre-transition debt” « créance prétransition » “qualifying currency” « monnaie admissible » “functional currency year” of a taxpayer means a taxation year in respect of which subsection (5) applies to the taxpayer. “pre-reversion debt” of a taxpayer means a debt obligation of the taxpayer that was issued by the taxpayer before the beginning of the taxpayer’s first reversionary year. “pre-transition debt” of a taxpayer means a debt obligation of the taxpayer that was issued by the taxpayer before the beginning of the taxpayer’s first functional currency year. “qualifying currency” at any time means each of (a) the currency of the United States of America; (b) the currency of the European Monetary Union; (c) the currency of the United Kingdom; (d) the currency of Australia; and (e) a prescribed currency. 2009 “relevant spot rate” « taux de change au comptant » Exécution du b “relevant spot rate” for a particular day means, in respect of a conversion of an amount from a particular currency to another currency, (a) if the particular currency or the other currency is Canadian currency, the rate quoted by the Bank of Canada for noon on the particular day (or, if there is no such rate quoted for the particular day, the closest preceding day for which such a rate is quoted) for the exchange of the particular currency for the other currency, or, in applying paragraphs (2)(b) and (5)(c), another rate of exchange that is acceptable to the Minister; and (b) if neither the particular currency nor the other currency is Canadian currency, the rate — calculated by reference to the rates quoted by the Bank of Canada for noon on the particular day (or, if either of such rates is not quoted for the particular day, the closest preceding day for which both such rates are quoted) for the exchange of Canadian currency for each of those currencies — for the exchange of the particular currency for the other currency, or, in applying paragraphs (2)(b) and (5)(c), another rate of exchange that is acceptable to the Minister. “reversionary year” « année de rétablissement » “reversionary year” of a taxpayer means a taxation year that begins after the last functional currency year of the taxpayer. “tax reporting currency” « monnaie de déclaration » “tax reporting currency” of a taxpayer for a taxation year, and at any time in the taxation year, means the currency in which the taxpayer’s Canadian tax results for the taxation year are to be determined. Canadian currency requirement (2) In determining the Canadian tax results of a taxpayer for a particular taxation year, (a) subject to this section, other than this subsection, Canadian currency is to be used; and (b) subject to this section, other than this subsection, subsection 79(7) and paragraphs 80(2)(k) and 142.7(8)(b), if a particular amount that is relevant in computing those Canadian tax results is expressed in a currency other than Canadian currency, the particular amount is to be converted to an C. 2 Budget Implem amount expressed in Canadian currency using the relevant spot rate for the day on which the particular amount arose. Application of subsection (5) (3) Subsection (5) applies to a taxpayer in respect of a particular taxation year if (a) the taxpayer is, throughout the particular taxation year, a corporation (other than an investment corporation, a mortgage investment corporation or a mutual fund corporation) resident in Canada; (b) the taxpayer has elected that subsection (5) apply to the taxpayer and has filed that election with the Minister in prescribed form and manner on or before the day that is six months before the end of the particular taxation year; (c) there is a functional currency of the taxpayer for the first taxation year of the taxpayer in respect of which subsection (5) would, if this subsection were read without reference to this paragraph, apply; (d) the taxpayer has not filed another election under paragraph (b); and (e) a revocation by the taxpayer under subsection (4) does not apply to the particular taxation year. Revocation of election (4) A taxpayer may revoke its election under paragraph (3)(b) by filing, on a day that is in a functional currency year of the taxpayer (other than its first functional currency year), a notice of revocation in prescribed form and manner. The revocation applies to each taxation year of the taxpayer that begins on or after the day that is six months after that day. Functional currency tax reporting (5) If this subsection applies to a taxpayer in respect of a particular taxation year, (a) the taxpayer’s Canadian tax results for the particular taxation year are to be determined using the taxpayer’s elected functional currency; Exécution du b (b) unless the context otherwise requires, each reference in this Act or the regulations to an amount (other than in respect of a penalty or fine) that is described as a particular number of Canadian dollars is to be read, in respect of the taxpayer and the particular taxation year, as a reference to that amount expressed in the taxpayer’s elected functional currency using the relevant spot rate for the first day of the particular taxation year; (c) subject to paragraph (9)(b), subsection (15), subsection 79(7) and paragraphs 80(2)(k) and 142.7(8)(b), if a particular amount that is relevant in computing the taxpayer’s Canadian tax results for the particular taxation year is expressed in a currency other than the taxpayer’s elected functional currency, the particular amount is to be converted to an amount expressed in the taxpayer’s elected functional currency using the relevant spot rate for the day on which the particular amount arose; (d) the definition “exchange rate” in subsection 111(8) is, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, to be read as follows: “exchange rate” at any time in respect of a particular currency other than the taxpayer’s elected functional currency means the relevant spot rate, for the day that includes that time, in respect of the conversion of an amount from the particular currency to the taxpayer’s elected functional currency, or a rate of exchange acceptable to the Minister; (e) except in applying paragraph 95(2)(f.15) in respect of a taxation year, of a foreign affiliate of the taxpayer, that is a functional currency year of the foreign affiliate within the meaning of subsection (6.1), each reference in subsection 39(2) (i) to “the value of the currency or currencies of one or more countries other than Canada relative to Canadian currency, a taxpayer” is to be read, in respect of the taxpayer and the particular taxation year, and with such modifications as the context C. 2 Budget Implem requires, as a reference to “the value of the currency or currencies of one or more countries (other than the taxpayer’s elected functional currency) relative to a taxpayer’s elected functional currency, the taxpayer”, and (ii) to “currency of a country other than Canada” is to be read, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, as a reference to “currency other than the taxpayer’s elected functional currency”; (f) each reference in (i) section 76.1, subsection 79(7), paragraph 80(2)(k), subsections 80.01(11), 80.1(8), 142.4(1) and 142.7(8) and the definition “amortized cost” in subsection 248(1), and subparagraph 231(6)(a)(iv) of the Regulations, to “Canadian currency” is, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, to be read as a reference to “the taxpayer’s elected functional currency”, and (ii) subparagraph 94.1(1)(b)(vii), the definition “foreign currency debt” in subsection 111(8), subsection 142.4(1), and the definition “amortized cost” in subsection 248(1) to “currency of a country other than Canada” is, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, to be read as a reference to “currency other than the taxpayer’s elected functional currency”; (g) the definition “foreign currency” in subsection 248(1) is, in respect of the taxpayer and the taxation year, and with such modifications as the context requires, to be read as follows: “foreign currency” in respect of a taxpayer, at any time in a taxation year, means a currency other than the taxpayer’s elected functional currency; Exécution du b (h) where a taxation year, of a foreign affiliate of the taxpayer, is a functional currency year of the foreign affiliate within the meaning of subsection (6.1), (i) the references in section 95 (other than paragraph 95(2)(f.15)) and the references in regulations made for the purposes of section 95 or 113 (other than subsection 5907(6) of the Regulations) to (A) “Canadian currency” are to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as references to “the taxpayer ’s elected functional currency”, and (B) “currency of a country other than Canada” are to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as references to “currency other than the taxpayer’s elected functional currency”, and (ii) the reference in paragraph 95(2)(f.13) to “the rate of exchange quoted by the Bank of Canada at noon on” is to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as a reference to “the relevant spot rate for”. Partnerships (6) For the purposes of computing the Canadian tax results of a particular taxpayer for each taxation year that is a functional currency year or a reversionary year of the particular taxpayer, this section is to be applied C. 2 Budget Implem as if each partnership of which the particular taxpayer is a member at any time in the taxation year were a taxpayer that (a) had as its first functional currency year its first fiscal period, if any, that (i) is a fiscal period at any time during which the particular taxpayer is a member of the partnership, (ii) begins after December 13, 2007, and (iii) ends at least six months after the day that is six months before the end of the particular taxpayer’s first functional currency year; (b) had as its last Canadian currency year its last fiscal period, if any, that ends before its first functional currency year; (c) had as its first reversionary year its first fiscal period, if any, that begins after the particular taxpayer’s last functional currency year; (d) is subject to subsection (5) for each of its fiscal periods that is, or begins after, its first functional currency year and that ends before its first reversionary year; (e) had as its elected functional currency in respect of each fiscal period described in paragraph (d) the elected functional currency of the particular taxpayer; and (f) had as its last functional currency year its last fiscal period, if any, that ends before its first reversionary year. Foreign affiliates (6.1) For the purposes of computing the foreign accrual property income of a foreign affiliate of a particular taxpayer, in respect of the particular taxpayer, for each taxation year that is a functional currency year or a reversionary year of the particular taxpayer, this section is to be applied as if (a) the foreign affiliate were a taxpayer that Exécution du b (i) had, as its first functional currency year, its first taxation year that (A) is a taxation year at any time during which the foreign affiliate is a foreign affiliate of the particular taxpayer, (B) begins after December 13, 2007, and (C) ends at least six months after the day that is six months before the end of the particular taxpayer’s first functional currency year, (ii) had as its last Canadian currency year its last taxation year, if any, that ends before its first functional currency year, (iii) had as its first reversionary year its first taxation year, if any, that begins after the particular taxpayer’s last functional currency year, (iv) is subject to subsection (5) for each of its taxation years that is, or begins after, its first functional currency year and that ends before its first reversionary year, (v) had as its elected functional currency in respect of each taxation year described in subparagraph (iv) the elected functional currency of the particular taxpayer, and (vi) had as its last functional currency year its last taxation year, if any, that ends before its first reversionary year; and (b) the Canadian tax results of the foreign affiliate for each taxation year that is a functional currency year or a reversionary year of the foreign affiliate, within the meaning of paragraph (a), were its foreign accrual property income, in respect of the particular taxpayer, for that taxation year and any amount that is relevant in determining such foreign accrual property income. C. 2 Converting Canadian currency amounts (7) In applying this Act to a taxpayer for a particular functional currency year of the taxpayer, the following amounts are to be converted from Canadian currency to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year: Budget Implem (a) each particular amount that (i) is, or is relevant to the determination of, an amount that may be deducted under subsection 37(1) or 66(4), element F in the definition “foreign accrual property income” in subsection 95(1), section 110.1 or 111 or subsection 126(2), 127(5), 129(1), 181.1(4) or 190.1(3), in the particular functional currency year, and (ii) was determined for a Canadian currency year of the taxpayer; (b) the cost to the taxpayer of a property that was acquired by the taxpayer in a Canadian currency year of the taxpayer; (c) an amount that was required by section 53 to be added or deducted in computing, at any time in a Canadian currency year of the taxpayer, the adjusted cost base to the taxpayer of a capital property that was acquired by the taxpayer in such a year; (d) an amount that (i) is in respect of the taxpayer’s undepreciated capital cost of depreciable property of a prescribed class, cumulative eligible capital in respect of a business, cumulative Canadian exploration expense (within the meaning assigned by subsection 66.1(6)), cumulative Canadian development expense (within the meaning assigned by subsection 66.2(5)), cumulative foreign resource expense in respect of a country other than Canada (within the meaning assigned by subsection 66.21(1)) or cumulative Canadian oil and gas property expense (within Exécution du b the meaning assigned by subsection 66.4(5)) (each of which is referred to in this paragraph as a “pool amount”), and (ii) was added to or deducted from a pool amount of the taxpayer in respect of a Canadian currency year of the taxpayer; (e) an amount that has been deducted or claimed as a reserve in computing the income of the taxpayer for its last Canadian currency year; (f) an outlay or expense referred to in subsection 18(9) that was made or incurred by the taxpayer in respect of a Canadian currency year of the taxpayer, and any amount that was deducted in respect of the outlay or expense in computing the income of the taxpayer for such a year; (g) an amount that was added or deducted in computing the taxpayer’s paid-up capital in respect of a class of shares of its capital stock in a Canadian currency year of the taxpayer; and (h) any amount (other than an amount referred to in any of paragraphs (a) to (g) or any of subsections (6), (6.1) and (8)) determined under the provisions of this Act in or in respect of a Canadian currency year of the taxpayer that is relevant in determining the Canadian tax results of the taxpayer for the particular functional currency year. Converting pretransition debts (8) In determining, at any time in a particular functional currency year of a taxpayer, the amount for which a pre-transition debt of the taxpayer (other than a pre-transition debt denominated in the taxpayer’s elected functional currency) was issued and its principal amount at the beginning of the taxpayer’s first functional currency year, C. 2 Budget Implem (a) where the pre-transition debt is denominated in Canadian currency, those amounts are to be converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year; and (b) where the pre-transition debt is denominated in a currency (referred to in this paragraph as the “debt currency”) that is neither Canadian currency nor the taxpayer’s elected functional currency, those amounts are to be converted from the debt currency to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year. Pre-transition debts (9) A pre-transition debt of a taxpayer that is denominated in a currency other than the taxpayer’s elected functional currency is deemed to have been issued immediately before the taxpayer’s first functional currency year for the purposes of (a) determining the amount of the taxpayer’s income, gain or loss, for a functional currency year of the taxpayer (other than an amount that subsection (10) deems to arise), that is attributable to a fluctuation in the value of a currency; and (b) applying paragraph 80(2)(k) in respect of a functional currency year of the taxpayer. Deferred amounts relating to pre-transition debts (10) If a taxpayer has, at any time in a taxation year that is a functional currency year or a reversionary year of the taxpayer, made a particular payment on account of the principal amount of a pre-transition debt of the taxpayer: (a) where the taxpayer would have made a gain — or, if the pre-transition debt was not on account of capital, would have had income — (referred to in this paragraph as the “hypothetical gain or income”) attributable to a fluctuation in the value of a currency if the pre-transition debt had been settled by the Exécution du b taxpayer’s having paid, immediately before the end of its last Canadian currency year, an amount equal to the principal amount (expressed in the currency in which the pretransition debt is denominated, which currency is referred to in this subsection as the “debt currency”) at that time, the taxpayer is deemed to make a gain or to have income, as the case may be, for the taxation year equal to the amount determined by the formula A × B/C where A is (i) if the taxation year is a functional currency year of the taxpayer, the amount of the hypothetical gain or income converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year, and (ii) if the taxation year is a reversionary year of the taxpayer, the amount determined under subparagraph (i) converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last functional currency year, B is the amount of the particular payment (expressed in the debt currency), and C is the principal amount of the pretransition debt at the beginning of the taxpayer’s first functional currency year (expressed in the debt currency); and (b) where the taxpayer would have sustained a loss — or, if the pre-transition debt was not on account of capital, would have had a loss — (referred to in this paragraph as the “hypothetical loss”) attributable to a fluctuation in the value of a currency if the pretransition debt had been settled by the taxpayer’s having paid, immediately before the end of its last Canadian currency year, an amount equal to the principal amount (expressed in the debt currency) at that time, the taxpayer is deemed to sustain or to have a C. 2 Budget Implem loss in respect of the particular payment for the taxation year equal to the amount that would be determined by the formula in paragraph (a) if the reference in the description of A in that paragraph to “hypothetical gain or income” were read as a reference to “hypothetical loss”. Determination of amounts payable (11) Notwithstanding subsections (5) and (7), for the purposes of applying this Act in respect of a functional currency year (referred to in this subsection as the “particular taxation year”) of a taxpayer, (a) for the purposes of determining the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), (i) the estimated amounts, each of which is described in subparagraph 157(1)(a)(i) or (1.1)(a)(i), that are payable by the taxpayer for the particular taxation year are to be determined by converting those amounts, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on which those amounts are due, (ii) the taxpayer’s first instalment base (within the meaning assigned by subsection 157(4)) for the particular taxation year is to be determined (A) if the particular taxation year is the taxpayer’s first functional currency year, without reference to this section, and (B) in any other case, as if the taxes payable by the taxpayer for the taxpayer’s functional currency year (referred to in this paragraph as the “first base year”) immediately preceding the particular taxation year were the total of (I) the total of the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), as determined with reference to this subparagraph or subparagraph (i) or (iii), as the case may be, in respect of the first base year, and Exécution du b (II) the amount, if any, of the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b), as determined under paragraph (b), in respect of the first base year, and (iii) the taxpayer’s second instalment base (within the meaning assigned by subsection 157(4)) for the particular taxation year is to be determined (A) if the particular taxation year is the taxpayer’s first functional currency year or its taxation year that immediately follows its first functional currency year, without reference to this section, and (B) in any other case, as if the taxes payable by the taxpayer for the taxpayer’s functional currency year (referred to in this subparagraph as the “second base year”) immediately preceding the first base year were the total of (I) the total of the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), as determined with reference to this subparagraph or subparagraph (i) or (ii), as the case may be, in respect of the second base year, and (II) the amount, if any, of the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b), as determined under paragraph (b), in respect of the second base year; (b) the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b) for the particular taxation year is the amount, if any, determined by (i) computing the amount, if any, by which (A) the total of the taxes payable by the taxpayer under this Part and Parts VI, VI.1 and XIII.1 for the particular taxation year, as determined in the taxpayer’s elected functional currency exceeds C. 2 Budget Implem (B) the total of all amounts each of which is the amount determined by converting the amount of a payment obligation — determined by paragraph 157(1)(a) or (1.1)(a), as the case may be, with reference to subparagraph (a)(i), (ii) or (iii), as the case may be — of the taxpayer in respect of the particular taxation year to the taxpayer’s elected functional currency using the relevant spot rate for the day on which the payment obligation was due, and (ii) converting the amount, if any, determined by subparagraph (i) to Canadian currency using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year; (c) for the purposes of determining any amount (other than tax) that is payable by the taxpayer under this Part or Part VI, VI.1 or XIII.1 for the particular taxation year, the taxpayer’s tax payable under the Part for the particular taxation year is deemed to be equal to the total of (i) the total of the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), in respect of the Part, as determined with reference to subparagraph (a)(i), (ii) or (iii), as the case may be, in respect of the particular taxation year, and (ii) the amount, if any, of the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b), in respect of the Part, as determined under paragraph (b), in respect of the particular taxation year; (d) amounts of tax that are payable under this Act (except under this Part and Parts VI, VI.1 and XIII.1) by the taxpayer for the particular taxation year are to be determined by converting those amounts, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on which those amounts are due; Exécution du b (e) if a particular amount that is determined in the taxpayer’s elected functional currency is deemed to be paid at any time on account of an amount payable by the taxpayer under this Act for the particular taxation year, the particular amount is to be converted to Canadian currency using the relevant spot rate for the day that includes that time; (f) the following amounts are to be determined in the taxpayer’s elected functional currency and converted to Canadian currency using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year: (i) amounts described in paragraph 163(1)(a) in respect of the particular taxation year, and (ii) the amount of the taxpayer’s taxable capital employed in Canada, for the purpose of applying section 235; and (g) for greater certainty, all amounts payable by the taxpayer under this Act in respect of the particular taxation year are to be paid in Canadian currency. Application of subsections (7) and (8) to reversionary years (12) In applying this Act to a reversionary year of a taxpayer, subsections (7) and (8) are to be read as if the references in those subsections to (a) “Canadian currency” were references to “the taxpayer’s elected functional currency”; (b) “Canadian currency year” were references to “functional currency year”; (c) “functional currency year” were references to “reversionary year”; (d) “first functional currency year” were references to “first reversionary year”; (e) “last Canadian currency year” were references to “last functional currency year”; (f) “pre-transition debt” were references to “pre-reversion debt”; and C. 2 Budget Implem (g) “the taxpayer’s elected functional currency” were references to “Canadian currency”. Pre-reversion debts (13) A pre-reversion debt of a taxpayer that is denominated in a currency other than Canadian currency is deemed to have been issued immediately before the taxpayer’s first reversionary year for the purposes of (a) determining the amount of the taxpayer’s income, gain or loss, for a reversionary year of the taxpayer (other than an amount that subsection (14) deems to arise), that is attributable to a fluctuation in the value of a currency; and (b) applying paragraph 80(2)(k) in respect of a reversionary year of the taxpayer. Deferred amounts relating to pre-reversion debts (14) If a taxpayer has, at any time in a reversionary year of the taxpayer, made a particular payment on account of the principal amount of a pre-reversion debt of the taxpayer: (a) where the taxpayer would have made a gain — or, if the pre-reversion debt was not on account of capital, would have had income — (referred to in this paragraph as the “hypothetical gain or income”) attributable to a fluctuation in the value of a currency if the pre-reversion debt had been settled by the taxpayer’s having paid, immediately before the end of its last functional currency year, an amount equal to the principal amount (expressed in the currency in which the prereversion debt is denominated, which currency is referred to in this subsection as the “debt currency”) at that time, the taxpayer is deemed to make a gain or to have income, as the case may be, for the reversionary year equal to the amount determined by the formula A × B/C Exécution du b 2009 where A is the amount of the hypothetical gain or income converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last functional currency year, B is the amount of the particular payment (expressed in the debt currency), and C is the principal amount of the prereversion debt at the beginning of the taxpayer’s first reversionary year (expressed in the debt currency); and (b) where the taxpayer would have sustained a loss — or, if the pre-reversion debt was not on account of capital, would have had a loss — (referred to in this paragraph as the “hypothetical loss”) attributable to a fluctuation in the value of a currency if the prereversion debt had been settled by the taxpayer’s having paid, immediately before the end of its last functional currency year, an amount equal to the principal amount (expressed in the debt currency) at that time, the taxpayer is deemed to sustain or to have a loss in respect of the particular payment for the reversionary year equal to the amount that would be determined by the formula in paragraph (a) if the reference in the description of A in that paragraph to “hypothetical gain or income” were read as a reference to “hypothetical loss”. Amounts carried back (15) For the purposes of determining the amount that may be deducted, in respect of a particular amount that arises in a taxation year (referred to in this subsection as the “later year”) of a taxpayer, under section 111 or subsection 126(2), 127(5), 181.1(4) or 190.1(3) in computing the taxpayer’s Canadian tax results for a taxation year (referred to in this subsection as the “current year”) that ended before the later year, (a) if the later year is a functional currency year of the taxpayer and the current year is a Canadian currency year of the taxpayer, the following amounts (expressed in the taxpayer’s elected functional currency) are to be C. 2 Budget Implem converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year: (i) the particular amount, and (ii) any amount so deducted in computing the taxpayer’s Canadian tax results for another functional currency year of the taxpayer; (b) if the later year is a reversionary year of the taxpayer and the current year is a functional currency year of the taxpayer, (i) the following amounts (expressed in Canadian currency) are to be converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last functional currency year: (A) the particular amount, and (B) any amount so deducted in computing the taxpayer’s Canadian tax results for another reversionary year of the taxpayer, and (ii) any amount (expressed in Canadian currency) so deducted in computing the taxpayer’s Canadian tax results for a Canadian currency year of the taxpayer is to be converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year; (c) if the later year is a reversionary year of the taxpayer and the current year is a Canadian currency year of the taxpayer, the following amounts (expressed in the taxpayer’s elected functional currency) are to be converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year: (i) the amount that would be determined under clause (b)(i)(A) in respect of the particular amount if the current year were a functional currency year of the taxpayer, and Exécution du b (ii) any amount so deducted in computing the taxpayer’s Canadian tax results for a functional currency year of the taxpayer; and (d) in any other case, this subsection does not apply. Windings-up (16) If a winding-up described in subsection 88(1) commences at any time (referred to in this subsection as the “commencement time”) and the parent and the subsidiary referred to in that subsection would, in the absence of this subsection, have different tax reporting currencies at the commencement time, the following rules apply for the purposes of determining the subsidiary’s Canadian tax results for its taxation years that end after the commencement time: (a) where the subsidiary’s tax reporting currency is Canadian currency, (i) notwithstanding subsection (3), subsection (5) is deemed to apply to the subsidiary in respect of its taxation year that includes the commencement time and each of its subsequent taxation years, if any, (ii) the subsidiary is deemed to have as its elected functional currency the parent’s tax reporting currency, and (iii) if the subsidiary’s taxation year that includes the commencement time would, in the absence of this subsection, be a reversionary year of the subsidiary, this section is to be read with any modifications that the circumstances require; and (b) where the subsidiary’s tax reporting currency is not Canadian currency, (i) the subsidiary is deemed to have filed, at the time that is six months and one day before the beginning of its taxation year C. 2 Budget Implem that includes the commencement time, in prescribed form and manner, a notice of revocation described in subsection (4), and (ii) if the parent’s tax reporting currency is not Canadian currency, (A) the subsidiary’s first reversionary year is deemed to have ended at the particular time that is immediately after the time at which it began, (B) a new taxation year of the subsidiary is deemed to have begun immediately after the particular time, (C) notwithstanding subsection (3), subsection (5) is deemed to apply to the subsidiary in respect of its taxation year that includes the commencement time and each of its subsequent taxation years, if any, and (D) the subsidiary is deemed to have as its elected functional currency the parent’s tax reporting currency. Amalgamations (17) If a predecessor corporation and the new corporation, in respect of an amalgamation within the meaning of subsection 87(1), have different tax reporting currencies for their last and first taxation years, respectively, paragraphs (16)(a) and (b) apply, for the purposes of determining the predecessor corporation’s Canadian tax results for its last taxation year, as if the tax reporting currencies referred to in those paragraphs were the tax reporting currencies referred to in this subsection and as if the references in those paragraphs to (a) “subsidiary” were references to “predecessor corporation”; (b) “parent” were references to “new corporation”; and (c) “taxation year that includes the commencement time” were references to “last taxation year”. Exécution du b 2009 Anti-avoidance (18) The Canadian tax results of a corporation for any one or more taxation years shall be determined using a particular currency if (a) at any time (referred to in this subsection as the “transfer time”) one or more properties are directly or indirectly transferred (i) by the corporation to another corporation (referred to in this subsection as the “transferor” and the “transferee”, respectively), or (ii) by another corporation to the corporation (referred to in this subsection as the “transferor” and the “transferee”, respectively); (b) the transferor and the transferee are related at the transfer time or become related in the course of a series of transactions or events that includes the transfer; (c) the transfer time (i) is, or would in the absence of subsections (16) and (17) be, in a functional currency year of the transferor and the transferor and the transferee have, or would in the absence of those subsections have, different tax reporting currencies at the transfer time, or (ii) is, or would in the absence of those subsections be, in a reversionary year of the transferor and is not in a reversionary year of the transferee; (d) it can reasonably be considered that one of the main purposes of the transfer or of any portion of a series of transactions or events that includes the transfer is to change, or to enable the changing of, the currency in which the Canadian tax results in respect of the property, or property substituted for it, for a taxation year would otherwise be determined; and (e) the Minister directs that those Canadian tax results be determined in the particular currency. Mergers (19) For the purposes of subsection (18), if one corporate entity (referred to in this subsection as the “new corporation”) is formed at a particular time by the amalgamation or other C. 2 Budget Implem merger of two or more corporations (each of which is referred to in this subsection as a “predecessor corporation”), (a) the predecessor corporation is deemed to have transferred to the new corporation at the time (referred to in this subsection as the “merger transfer time”) that is immediately before the particular time each property that was held at the merger transfer time by the predecessor corporation and at the particular time by the new corporation; (b) the new corporation is deemed to exist, and to be related to the predecessor corporation, at the merger transfer time; and (c) the new corporation is deemed to have as its tax reporting currency at the merger transfer time its tax reporting currency at the particular time. Application of subsection (21) (20) Subsection (21) applies in determining a taxpayer’s income, gain or loss for a taxation year in respect of a transaction (referred to in this subsection and subsection (21) as a “specified transaction”) if (a) the specified transaction was entered into, directly or indirectly, at any time by the taxpayer and a corporation (referred to in this subsection as the “related corporation”) to which the taxpayer is at that time related; (b) the taxpayer and the related corporation had different tax reporting currencies at any time during the period (referred to in this subsection as the “accrual period”) in which the income, gain or loss accrued; and (c) it would, in the absence of this subsection and subsection (21), be reasonable to consider that a fluctuation at any time in the accrual period in the value of the taxpayer’s tax reporting currency relative to the value of the related corporation’s tax reporting currency (i) increased the taxpayer’s loss in respect of the specified transaction, (ii) reduced the taxpayer’s income or gain in respect of the specified transaction, or Exécution du b (iii) caused the taxpayer to have a loss, instead of income or a gain, in respect of the specified transaction. Income, gain or loss determinations (21) If this subsection applies, each fluctuation in value referred to in paragraph (20)(c) is, for the purposes of determining the taxpayer’s income, gain or loss in respect of the specified transaction and notwithstanding any other provision of this Act, deemed not to have occurred. Partnership transactions (22) For the purposes of this subsection and subsections (18) to (21), (a) if a property is directly or indirectly transferred to or by a partnership, the property is deemed to have been transferred to or by (as the case may be) each member of the partnership; and (b) if a partnership is a party to a transaction, each member of the partnership is deemed to be that party to that transaction. (2) The definitions in subsection 261(1) (other than the definition “Canadian tax results”) and subsections 261(3) to (14) and (16) to (22) of the Act, as enacted by subsection (1), apply in respect of taxation years that begin after December 13, 2007, except that (a) where a taxpayer has, on or before June 27, 2008, made an election under paragraph 261(3)(b) of the Act, (i) if the taxpayer makes a further election in writing, and files it with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, the relevant spot rate for a particular day is deemed, for the purposes of subsections 261(7) to (10) of the Act, as enacted by subsection (1), to be the average of the rates that would, in the absence of this subparagraph, be the C. 2 Budget Implem relevant spot rates for each day in the 12-month period that ends on the particular day, and (ii) subsections 261(20) and (21) of the Act, as enacted by subsection (1), apply in respect of taxation years that begin after June 27, 2008; and (b) in applying paragraph 261(3)(b) of the Act, as enacted by subsection (1), if the day that is six months before the end of the particular taxation year referred to in that paragraph is before December 15, 2008, the reference in that paragraph to “the day that is six months before the end of the particular taxation year” is, in respect of that particular taxation year, to be read as a reference to “December 15, 2008”. (3) The definition “Canadian tax results” in subsection 261(1) of the Act, and subsection 261(2) of the Act, as enacted by subsection (1), apply for all taxation years. (4) Subsection 261(15) of the Act, as enacted by subsection (1), applies after December 13, 2007. 81. (1) For the purposes of the Income Tax Act and the Canada Disability Savings Act, specified RDSP events are deemed to have occurred, in the order that they actually occurred, on December 31, 2008 and not on the day or days that they actually occurred. (2) For the purposes of subsection (1), “specified RDSP event” means an event occurring after 2008 and before March 3, 2009 that (a) establishes a “disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act; (b) satisfies conditions in subsection 146.4(2) of the Income Tax Act; Exécution du b (c) establishes a “registered disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act for a beneficiary who is, in respect of the 2008 taxation year, a “DTC-eligible individual” as defined in subsection 146.4(1) of the Income Tax Act and who was resident in Canada at the end of that year; (d) is the making of any contribution to the registered disability savings plan; (e) satisfies the requirement in paragraph 3(b) of the Canada Disability Savings Regulations; or (f) is the taking of any other action to ensure that the registered disability savings plan is validly established and contributions to the plan are validly made. 2008, c. 28 BUDGET IMPLEMENTATION ACT, 2008 82. The descriptions of A and B in subsection 19(5) of the Budget Implementation Act, 2008 are replaced by the following: A is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Income Tax Act as that subsection read in its application to a taxation year that ended immediately before February 26, 2008; B is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Income Tax Act, as that subsection would apply to a taxation year that ended on February 26, 2008; C.R.C., c. 945 INCOME TAX REGULATIONS 83. (1) Paragraph 202(2)(h) of the Income Tax Regulations is replaced by the following: (h) a payment to which paragraph 212(1)(p) of the Act applies, (2) Subsection (1) applies to the 2009 and subsequent taxation years. C. 2 Budget Implem 84. (1) Subsection 204(3) of the Regulations is amended by striking out “or” at the end of paragraph (d.1), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e): (f) governed by a TFSA or by an arrangement that is deemed by paragraph 146.2(9)(a) of the Act to be a TFSA. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 85. (1) Subsection 209(1) of the Regulations is replaced by the following: 209. (1) A person who is required by section 200, 201, 202, 204, 208, 212, 214, 215, 217 or 218, subsection 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 86. (1) Section 214 of the Regulations is amended by adding the following after subsection (5): (6) Where an amount may be deducted under subsection 146(8.92) of the Act in computing the income of a deceased annuitant under a registered retirement savings plan, the issuer of the plan shall make an information return in prescribed form in respect of the amount. (2) Subsection (1) applies after 2008. 87. (1) Section 215 of the Regulations is amended by adding the following after subsection (5): (6) Where an amount may be deducted under subsection 146.3(6.3) of the Act in computing the income of a deceased annuitant under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount. Exécution du b (2) Subsection (1) applies after 2008. 88. (1) Subsection 221(2) of the Regulations is replaced by the following: (2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204, 205 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 89. (1) Section 223 of the Regulations and the heading before it are replaced by the following: TFSAS 223. (1) An issuer of a TFSA shall make an information return for each calendar year in prescribed form in respect of the TFSA. (2) An issuer of a TFSA who makes a payment of an amount that is required because of paragraph 146.2(9)(b) of the Act to be included in computing the income of a taxpayer for a taxation year shall make an information return in prescribed form. (3) An issuer of a TFSA that governs a trust shall notify the holder of the TFSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year, (a) the trust acquires or disposes of property that is a non-qualified investment for the trust; or (b) property held by the trust becomes or ceases to be a non-qualified investment for the trust. C. 2 Budget Implem (2) Subsection (1) applies to the 2009 and subsequent taxation years. 90. (1) Paragraph 304(1)(a) of the Regulations is replaced by the following: (a) an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.2) and (d) of the Act; (2) Subsection (1) applies to annuity contracts issued after 2008. 91. (1) Subsection 400(1) of the Regulations is replaced by the following: 400. (1) In applying the definition “taxable income earned in the year in a province” in subsection 124(4) of the Act for a corporation’s taxation year (a) the prescribed rules referred to in that definition are the rules in this Part; and (b) the amount determined under those prescribed rules means the total of all amounts each of which is the taxable income of the corporation earned in the taxation year in a particular province as determined under this Part. (1.1) In this Part, a corporation’s taxable income for a taxation year is equal to the total of (a) the corporation’s taxable income for the taxation year (determined without reference to this subsection) or the corporation’s taxable income earned in Canada for the taxation year, as the case may be, and (b) the positive or negative amount determined by the formula A–B where A is the total of all amounts that are, because of the application of section 33.1 of the Act, not required to be added in computing the corporation’s income for the taxation year, and Exécution du b B is the total of all amounts that are, because of the application of section 33.1 of the Act, not allowed to be deducted in computing the corporation’s income for the taxation year. (2) Subsection 400(2) of the Regulations is amended by adding the following after paragraph (e): (e.1) if, but for this paragraph, a corporation would not have a permanent establishment, the corporation is deemed to have a permanent establishment at the place designated in its incorporating documents or bylaws as its head office or registered office; (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 92. (1) Section 401 of the Regulations is replaced by the following: 401. This Part applies to determine the amount of taxable income of a corporation earned in a taxation year in a particular province. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 93. (1) The heading before section 402.1 and sections 402.1 and 402.2 of the Regulations are replaced by the following: CENTRAL PAYMASTER 402.1 (1) In this Part, if an individual (referred to in this section as the “employee”) is employed by a person (referred to in this section as the “employer”) and performs a service in a particular province for the benefit of or on behalf of a corporation that is not the employer, an amount that may reasonably be regarded as equal to the amount of salary or wages earned by the employee for the service (referred to in this section as the “particular salary”) is deemed to be salary paid by the corporation to an employee of the corporation in the corporation’s taxation year in which the particular salary is paid if (a) at the time the service is performed, (i) the corporation and the employer do not deal at arm’s length, and C. 2 Budget Implem (ii) the corporation has a permanent establishment in the particular province; (b) the service (i) is performed by the employee in the normal course of the employee’s employment by the employer, (ii) is performed for the benefit of or on behalf of the corporation in the ordinary course of a business carried on by the corporation, and (iii) is of a type that could reasonably be expected to be performed by employees of the corporation in the ordinary course of the business referred to in subparagraph (ii); and (c) the amount is not otherwise included in the aggregate, determined for the purposes of this Part, of the salaries and wages paid by the corporation. (2) In this Part, an amount deemed under subsection (1) to be salary paid by a corporation to an employee of the corporation for a service performed in a particular province is deemed to have been paid, (a) if the service was performed at one or more permanent establishments of the corporation in the particular province, to an employee of the permanent establishment or establishments; or (b) if paragraph (a) does not apply, to an employee of any other permanent establishment (as is reasonably determined in the circumstances) of the corporation in the particular province. (3) In determining under this Part the amount of salaries and wages paid in a year by an employer, there shall be deducted the total of all amounts each of which is a particular salary paid by the employer in the year. (4) Despite subparagraph (1)(a)(i), this section applies to a corporation and an employer that deal at arm’s length if the Minister determines that the corporation and the employer have entered into an arrangement the purpose Exécution du b of which is to reduce, through the provision of services as described in subsection (1), the total amount of income tax payable by the corporation under a law of the particular province referred to in subsection (1). (5) For the purposes of this section, a partnership is deemed to be a corporation and the corporation’s taxation year is deemed to be the partnership’s fiscal period. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 94. (1) Section 403 of the Regulations is amended by adding the following after subsection (3): (4) For the purposes of subsection (1), if in a taxation year an insurance corporation has no permanent establishment in a particular country other than Canada, but provides insurance on property in the particular country or has a contract for insurance, other than on property, with a person resident in the particular country, each net premium for the taxation year in respect of the insurance is deemed to be a net premium in respect of insurance on property situated in, or from contracts with persons resident in, as the case may be, the province in Canada or country other than Canada in which is situated the permanent establishment of the corporation to which the net premium is reasonably attributable in the circumstances. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 95. (1) Subsection 413(1) of the Regulations is replaced by the following: 413. (1) In this Part, if a corporation is not resident in Canada, “salaries and wages paid in the year” by the corporation does not include salaries and wages paid to employees of a permanent establishment outside Canada. (2) Subsection (1) applies to the 2009 and subsequent taxation years. C. 2 Budget Implem 96. (1) The Regulations are amended by adding the following after section 413: INTERNATIONAL BANKING CENTRE EXCEPTION 413.1 Despite any other provision in this Part, a corporation’s taxable income earned in a taxation year in a particular province is equal to the total of (a) the corporation’s taxable income earned in the taxation year in the particular province (determined without reference to this section), and (b) the positive or negative amount determined by the formula A–B where A is the total of all amounts that are, because of the application of section 33.1 of the Act to a business carried on in a branch or office situated in the particular province, not allowed to be deducted in computing the corporation’s income for the taxation year, and B is the total of all amounts that are, because of the application of section 33.1 of the Act to a business carried on in a branch or office situated in the particular province, not required to be added in computing the corporation’s income for the taxation year. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 97. (1) The heading before section 414 and sections 414 and 415 of the Regulations are replaced by the following: PROVINCIAL SIFT TAX RATE 414. (1) The following definitions apply in this section. “general corporate income tax rate”, in a province for a taxation year, means (a) for Quebec, 0%; Exécution du b (b) for the Newfoundland offshore area, the highest percentage rate of tax imposed under the laws of Newfoundland and Labrador on the taxable income of a public corporation earned in the taxation year in Newfoundland and Labrador; (c) for the Nova Scotia offshore area, the highest percentage rate of tax imposed under the laws of Nova Scotia on the taxable income of a public corporation earned in the taxation year in Nova Scotia; and (d) for each other province, the highest percentage rate of tax imposed under the laws of the province on the taxable income of a public corporation earned in the taxation year in the province. (taux général d’imposition du revenu des sociétés) “province” includes the Newfoundland offshore area and the Nova Scotia offshore area. (province) “taxable SIFT distributions”, for a taxation year, means (a) in the case of a SIFT trust, its nondeductible distributions amount for the taxation year; and (b) in the case of a SIFT partnership, its taxable non-portfolio earnings for the taxation year. (montant des distributions imposables) (2) In determining the amount of a SIFT trust’s or SIFT partnership’s taxable SIFT distributions for a taxation year earned in a province (a) except as provided in paragraph (b), this Part applies in respect of the SIFT trust or SIFT partnership as though C. 2 Budget Implem (i) each reference to “corporation” (other than in the expression “subsidiary controlled corporation”) were read as a reference to “SIFT trust” or “SIFT partnership”, as the case may be, (ii) each reference to “taxable income” were read as a reference to “taxable SIFT distributions”, (iii) each reference to “its incorporating documents or bylaws” were read as a reference to “the agreement governing the SIFT trust” or “the agreement governing the SIFT partnership”, as the case may be, and (iv) “subsidiary controlled corporation” in respect of a SIFT trust or a SIFT partnership meant a corporation more than 50% of the issued share capital of which (having full voting rights under all circumstances) belongs to the SIFT trust or SIFT partnership, as the case may be; and (b) subsection 400(1), section 401, subsections 402(1) and (2) and sections 403 to 413 do not apply. (3) Subject to subsection (4), in applying the definition “provincial SIFT tax rate” in subsection 248(1) of the Act in respect of a SIFT trust or SIFT partnership for a taxation year, the prescribed amount determined in respect of the SIFT trust or SIFT partnership for the taxation year is (a) if the SIFT trust or SIFT partnership has no permanent establishment in a province in the taxation year, 0.10; (b) if the SIFT trust or SIFT partnership has a permanent establishment in a province in the taxation year and has no permanent establishment outside that province in the taxation year, the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year; and (c) if the SIFT trust or SIFT partnership has a permanent establishment in the taxation year in a province, and has a permanent establishExécution du b ment outside that province in the taxation year, the amount, expressed as a decimal fraction, determined by the formula A+B where A is the total of all amounts, if any, each of which is in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year and is determined by the formula C/D × E where C is its taxable SIFT distributions for the taxation year earned in the province, D is its total taxable SIFT distributions for the taxation year, and E is the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year, and B is the amount determined by the formula (1 – F/D) × 0.1 where F is the total of all amounts each of which is an amount determined under the description of C in the description of A in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year. (4) If a SIFT trust or a SIFT partnership has a permanent establishment in Quebec in a taxation year, paragraph (a) of the definition “general corporate income tax rate” in subsection (1) does not apply in determining the prescribed amount under subsection (3) in respect of the SIFT trust or the SIFT partnership C. 2 Budget Implem for the taxation year for the purposes of applying the definition “provincial SIFT tax rate” in determining: (a) in the case of the SIFT partnership, the amount of a dividend deemed by paragraph 96(1.11)(b) of the Act to have been received by it in the taxation year; and (b) in the case of the SIFT trust, the amount of its taxable SIFT trust distributions for the taxation year. (2) Subsection (1) applies to the 2007 and subsequent taxation years, except that paragraph 414(4)(b), as enacted by subsection (1), shall not apply for the taxation years of a SIFT trust that end before February 3, 2009. 98. (1) The heading “POLICY RESERVES FOR PRE-1996 POLICIES” before section 1401 of the Regulations is replaced by the following: AMOUNTS DETERMINED (2) Subsection (1) applies to taxation years that begin after September 2006. 99. (1) The portion of subsection 1401(1) of the Regulations before subparagraph (c)(i) is replaced by the following: 1401. (1) For the purposes of section 307 of the Regulations and subsection 211.1(3) of the Act, the amounts determined under this subsection are, (a) in respect of deposit administration fund policies, the aggregate of the insurer’s liabilities under those policies calculated in the manner required for the purposes of the insurer’s annual report to the relevant authority for the year or, where the insurer was throughout the year subject to the supervision of the relevant authority but was not required Exécution du b to file an annual report with the relevant authority for the year, in its financial statements for the year; (b) in respect of a group term life insurance policy that provides coverage for a period not exceeding 12 months, the unearned portion of the premium paid by the policyholder for the policy at the end of the year determined by apportioning the premium paid by the policyholder equally over the period to which that premium pertains; (c) in respect of a life insurance policy, other than a policy referred to in paragraph (a) or (b), the greater of (2) The portion of paragraph 1401(1)(c.1) of the Regulations before subparagraph (i) is replaced by the following: (c.1) in respect of a group life insurance policy, the amount (other than an amount in respect of which a deduction may be claimed by the insurer pursuant to subsection 140(1) of the Act because of subparagraph 138(3)(a)(v) of the Act in computing its income for the year) in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy that will be used by the insurer to reduce or eliminate a future adverse claims experience under the policy or that will be paid or unconditionally credited to the policyholder by the insurer or applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer, which is the least of (3) The portion of paragraph 1401(1)(d) of the Regulations before subparagraph (i) is replaced by the following: (d) in respect of a policy, other than a policy referred to in paragraph (a), in respect of a benefit, risk or guarantee that is (4) The portion of paragraph 1401(1)(d) of the Regulations after subparagraph (ix) and before subparagraph (x) is replaced by the following: equal to the lesser of C. 2 Budget Implem (5) Subsection 1401(1) of the Regulations is amended by adding “and” at the end of paragraph (c.1) and by repealing paragraphs (d.1) to (e). (6) Subsection 1401(1.1) of the Regulations is repealed. (7) Subsections 1401(3) and (4) of the Regulations are repealed. (8) Subsections (1) to (7) apply to taxation years that begin after September 2006. 100. (1) The headings before section 1404 and sections 1404 and 1405 of the Regulations are replaced by the following: DIVISION 4 LIFE INSURANCE POLICY RESERVES 1404. (1) For the purpose of subparagraph 138(3)(a)(i) of the Act, there may be deducted, in computing a life insurer’s income from carrying on its life insurance business in Canada for a taxation year in respect of its life insurance policies in Canada, the amount the insurer claims, not exceeding (a) the amount determined under subsection (3) in respect of the insurer for the year, where that amount is greater than nil; and (b) nil, in any other case. (2) For the purpose of paragraph 138(4)(b) of the Act, the amount prescribed in respect of an insurer for a taxation year, in respect of its life insurance policies in Canada, is (a) the absolute value of the amount determined under subsection (3) in respect of the insurer for the year, where that amount is less than nil; and (b) nil, in any other case. (3) For the purposes of paragraphs (1)(a) and (2)(a), the amount determined under this subsection in respect of an insurer for a taxation Exécution du b year, in respect of its life insurance policies in Canada, is the amount, which may be positive or negative, determined by the formula A+B+C+D–M where A is the amount (except to the extent the amount is determined in respect of a claim, premium, dividend or refund in respect of which an amount is included in determining the value of B, C or D), in respect of the insurer’s life insurance policies in Canada, equal to the lesser of (a) the total of the reported reserves of the insurer at the end of the year in respect of those policies, and (b) the total of the policy liabilities of the insurer at the end of the year in respect of those policies; B is the amount, in respect of the insurer’s life insurance policies in Canada under which there may be claims incurred before the end of the year that have not been reported to the insurer before the end of the year, equal to 95% of the lesser of (a) the total of the reported reserves of the insurer at the end of the year in respect of the possibility that there are such claims, and (b) the total of the policy liabilities of the insurer at the end of the year in respect of the possibility that there are such claims; C is the total of all amounts each of which is the unearned portion at the end of the year of the premium paid by the policyholder for the policy, determined by apportioning the premium paid by the policyholder equally over the period to which that premium relates, where the policy is a group term life insurance policy that (a) provides coverage for a period that does not exceed 12 months, and (b) is a life insurance policy in Canada; D is the total of all amounts (other than an amount deductible under subparagraph 138(3)(a)(v) of the Act) each of which is C. 2 Budget Implem the amount, which is the least of P, Q and R, in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of a group life insurance policy that is a life insurance policy in Canada that will be (a) used by the insurer to reduce or eliminate a future adverse claims experience under the policy, (b) paid or unconditionally credited to the policyholder by the insurer, or (c) applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer under the policy, where P is a reasonable amount as a reserve determined as at the end of the year in respect of the dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy, Q is 25% of the amount of the premium under the terms of the policy for the 12month period ending (a) on the day the policy is terminated, if the policy is terminated in the year, and (b) at the end of the year, in any other case, and R is the amount of the reported reserve of the insurer at the end of the year in respect of the dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy; and M is the total of all amounts determined in respect of a life insurance policy in Canada each of which is (a) an amount payable in respect of a policy loan under the policy, or (b) interest that has accrued to the insurer to the end of the year in respect of a policy loan under the policy. Exécution du b 1405. For the purpose of subparagraph 138(3)(a)(ii) of the Act, there may be deducted, in computing a life insurer’s income for a taxation year, the amount it claims as a reserve in respect of an unpaid claim received by the insurer before the end of the year under a life insurance policy in Canada, not exceeding the lesser of (a) the reported reserve of the insurer at the end of the year in respect of the claim, and (b) the policy liability of the insurer at the end of the year in respect of the claim. (2) Subsection (1) applies to taxation years that begin after September 2006. 101. (1) The definition “life insurance policy in Canada” in subsection 1408(1) of the Regulations is replaced by the following: “life insurance policy in Canada” has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie au Canada) (2) Subsection 1408(1) of the Regulations is amended by adding the following in alphabetical order: “life insurance policy” has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie) (3) Subsections (1) and (2) apply to taxation years that begin after November 7, 2007. 102. (1) Section 2400 of the Regulations is amended by adding the following after subsection (7): TRANSITION YEAR (8) A computation that is required to be made under this Part in respect of an insurer’s taxation year that included September 30, 2006 and that is relevant to a computation (in this subsection referred to as the “transition year C. 2 Budget Implem computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation. (2) Subsection (1) applies to taxation years that begin after September 2006. 103. (1) Subsection 2600(1) of the Regulations is replaced by the following: 2600. (1) In applying the definition “income earned in the year in a province” in subsection 120(4) of the Act for an individual’s taxation year (a) the prescribed rules referred to in that definition are the rules in this Part; and (b) the amount determined under those prescribed rules means the total of all amounts each of which is the individual’s income earned in the taxation year in a particular province as determined under this Part. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 104. (1) The Regulations are amended by adding the following after section 3504: CONDITIONS 3505. (1) The following conditions are prescribed in respect of a donee for the purposes of paragraph 110.1(8)(e) of the Act: (a) the donee has applied to the Minister for International Cooperation (or, if there is no such Minister, the Minister responsible for the Canadian International Development Agency) for a determination that the conditions described in this section have been met; (b) medicines received by the donee for use in charitable activities outside Canada are (i) delivered outside Canada by the donee for use in its charitable activities, or Exécution du b (ii) transferred to another registered charity that would meet the conditions contained in this section if that registered charity were a donee described in subsection 110.1(8) of the Act; (c) in the course of delivering medicines outside Canada for use in its charitable activities, the donee acts in a manner consistent with the principles and objectives of the inter-agency Guidelines for Drug Donations issued by the World Health Organization, as amended from time to time, (referred to in this section as “the WHO Guidelines”); (d) the donee has sufficient expertise in delivering medicines for use in charitable activities carried on outside Canada; (e) the donee carries on a program that includes delivering medicines for use in charitable activities carried on outside Canada and that is (i) an international development assistance program, or (ii) an international humanitarian assistance program, responding to situations of international humanitarian crisis (resulting from either natural disaster or complex emergency); and (f) the donee has sufficient expertise to design, implement and monitor each program described in subparagraph (e)(i) or (ii) that it carries on, unless the donee has declared that it will not deliver medicines in that program. (2) Without limiting the application of the WHO Guidelines, for the purposes of paragraph (1)(c), a donee does not act in a manner consistent with the principles and objectives of those guidelines if the donee’s directors, trustees, officers or like officials have not C. 2 Budget Implem (a) approved a policy and procedural framework, under which the donee is required to act in a manner consistent with the WHO Guidelines; and (b) declared that the donee acts in compliance with that policy and procedural framework. (3) A donee is considered not to have sufficient expertise for the purpose of a program to which paragraph (1)(d) or (e) applies if (a) the program does not address the specific and differentiated needs, interests and vulnerabilities of affected women and men, girls and boys; (b) the program does not incorporate, in the design of projects under the program, consideration for environmental effects of those projects; or (c) the donee does not have policies and practices for the design, implementation and monitoring of the program. (4) The Minister referred to in subsection (1) may (a) rely on any information or evidence in making a determination under subsection (1); and (b) require the donee to provide any other information or evidence that that Minister considers relevant and sufficient for the purpose of this section. (2) Subsection (1) applies in respect of applications made at any time by donees for determinations in respect of gifts made after June 2008. 105. (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following: 4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, paragraph (h) of the definition “qualified investment” in section Exécution du b 204 of the Act, paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act and paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is (2) Paragraph 4900(1)(i.3) of the Regulations is repealed. (3) Subparagraph 4900(1)(j.2)(ii) of the Regulations is replaced by the following: (ii) the certificate has, at the time of acquisition by the plan trust, an investment grade rating with a credit rating agency referred to in subsection (2), and (4) Paragraphs 4900(1)(k) and (l) of the Regulations are repealed. (5) Paragraph 4900(1)(o) of the Regulations is repealed. (6) Paragraph 4900(1)(s) of the Regulations is repealed. (7) Subsection 4900(1) of the Regulations is amended by striking out “or” at the end of paragraph (u), by adding “or” at the end of paragraph (v) and by adding the following after paragraph (v): (w) an American Depositary Receipt where the property represented by the receipt is listed on a designated stock exchange. (8) Subsection 4900(5) of the Regulations is replaced by the following: (5) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act and paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation C. 2 Budget Implem that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year. (9) Paragraph 4900(12)(a) of the Regulations is replaced by the following: (a) the property was a share of the capital stock of a specified small business corporation, (10) Section 4900 of the Regulations is amended by adding the following after subsection (13): (14) For the purposes of paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a TFSA at any time if, at the time the property was acquired by the trust, the property (a) was (i) a share of the capital stock of a specified small business corporation, (ii) a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, or (iii) a qualifying share in respect of a specified cooperative corporation and the TFSA; and (b) was not a prohibited investment for the trust. (11) Subsections (1) and (8) to (10) apply to the 2009 and subsequent taxation years. (12) Subsections (2) to (6) apply to property acquired after the day on which this Act is assented to. (13) Subsection (7) applies in determining whether a property is, at any time after 2005, a qualified investment, except that in applying paragraph 4900(1)(w) of the Regulations, as enacted by subsection (7), before December 14, 2007, it is to be read as follows: Exécution du b (w) an American Depositary Receipt where the property represented by the receipt is listed on a stock exchange referred to in section 3200 or 3201. 106. (1) The definitions “governing plan” and “qualifying share” in subsection 4901(2) of the Regulations are replaced by the following: “governing plan” means a deferred profit sharing plan or a revoked plan, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; (régime d’encadrement) “qualifying share”, in respect of a specified cooperative corporation and a governing plan, means a share of the capital or capital stock of the corporation where (a) ownership of the share or a share identical to the share is not a condition of membership in the corporation, or (b) a connected person under the governing plan (i) has not received a payment from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services, and (ii) can reasonably be expected not to receive a payment, after the acquisition of the share by the plan trust, from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services; (part admissible) (2) The definition “connected person” in subsection 4901(2) of the English version of the Regulations is replaced by the following: C. 2 Budget Implem “connected person” under a governing plan of a plan trust means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arm’s length with that person; (personne rattachée) (3) Subsection 4901(2) of the Regulations is amended by adding the following in alphabetical order: “specified small business corporation”, at any time, means a corporation (other than a cooperative corporation) that would, at that time or at the end of the last taxation year of the corporation that ended before that time, be a small business corporation if the expression “Canadian-controlled private corporation” in the definition “small business corporation” in subsection 248(1) of the Act were read as “Canadian corporation (other than a corporation controlled at that time, directly or indirectly in any manner whatever, by one or more nonresident persons)”. (société déterminée exploitant une petite entreprise) (4) Subsections (1) to (3) apply to the 2009 and subsequent taxation years. 107. (1) The Regulations are amended by adding the following after Part XLIX: PART L TAX-FREE SAVINGS ACCOUNTS — PROHIBITED INVESTMENTS Investment not prohibited 5000. For the purpose of the portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a), property described in paragraph 4900(1)(j.1) is prescribed property. Exécution du b 2009 Prohibited investment 5001. For the purpose of paragraph (d) of the definition “prohibited investment” in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a TFSA solely because of subsection 4900(14) is prescribed property for the trust at any time if, at that time, it is not described in any of subparagraphs 4900(14)(a)(i) to (iii). (2) Subsection (1) applies to the 2009 and subsequent taxation years. 108. (1) The headings before section 5700 of Regulations are replaced by the following: PART LVII MEDICAL EXPENSE TAX CREDIT (2) Subsection (1) is deemed to have come into force on February 27, 2008. 109. (1) Section 5700 of the Regulations is amended by striking out “and” at the end of paragraph (y) and by adding the following after paragraph (z): (z.1) altered auditory feedback device designed to be used by an individual who has a speech impairment; (z.2) electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment; (z.3) standing device designed to be used by an individual who has a severe mobility impairment to undertake standing therapy; and (z.4) pressure pulse therapy device designed to be used by an individual who has a balance disorder. (2) Subsection (1) applies to the 2008 and subsequent taxation years. 110. (1) The Regulations are amended by adding the following after section 5700: C. 2 Budget Implem 5701. For the purpose of subparagraph 118.2(2)(n)(ii) of the Act, a drug, medicament or other preparation or substance is prescribed if it (a) is manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function; (b) is prescribed for a patient by a medical practitioner; and (c) may, in the jurisdiction in which it is acquired, be lawfully acquired for use by the patient only with the intervention of a medical practitioner. (2) Subsection (1) is deemed to have come into force on February 27, 2008. 111. (1) Subsection 5906(2) of the Regulations is replaced by the following: (2) For the purposes of subsection (1), the expression “permanent establishment” has: (a) if the expression is given meaning in a tax treaty with a meaning assigned by that tax respect to a business carried country; and a particular country, the treaty with on in that (b) in any other case, the meaning that would be assigned by subsection 400(2) if that subsection were read without reference to its paragraph (e.1). (2) Subsection (1) applies to the 2009 and subsequent taxation years. 112. (1) Subsection 5907(11) of the Regulations is replaced by the following: (11) For the purposes of this Part, a sovereign state or other jurisdiction is a “designated treaty country” for a taxation year of a foreign affiliate of a corporation if Canada has entered into a comprehensive agreement or convention Exécution du b for the elimination of double taxation on income, or a comprehensive tax information exchange agreement, in respect of that sovereign state or jurisdiction, that has entered into force and has effect for that taxation year, but any territory, possession, department, dependency or area of that sovereign state or jurisdiction to which that agreement or convention does not apply is not considered to be part of that sovereign state or jurisdiction for the purpose of determining whether it is a designated treaty country. (2) Section 5907 of the Regulations is further amended by adding the following after subsection (11.1): (11.11) For the purpose of applying subsection (11) in respect of a foreign affiliate of a corporation, where a comprehensive tax information exchange agreement enters into force on a particular day, the agreement is deemed to enter into force and to come into effect on the first day of the foreign affiliate’s taxation year that includes the particular day. (3) Subsections (1) and (2) apply after 2007. 113. (1) Paragraphs 7305.1(a) and (b) of the Regulations are replaced by the following: (a) if a taxpayer is employed in a taxation year by a particular person principally in selling or leasing automobiles and an automobile is made available in the year to the taxpayer or a person related to the taxpayer by the particular person or a person related to the particular person, 21 cents; and (b) in any other case, 24 cents. (2) Subsection (1) applies to taxation years that end after 2007. 114. (1) Paragraph 7306(a) of the Regulations is replaced by the following: (a) the product of 46 cents multiplied by the number of those kilometres; (2) Subsection (1) applies to kilometres driven after 2007. C. 2 Budget Implem 115. (1) Section 8308.1 of the Regulations is amended by adding the following after subsection (2): Pension Credit — Tax Treaty (2.1) For the purposes of applying subsection (2) in determining an individual’s pension credit for a calendar year with respect to an employer under a foreign plan, if any contributions made to, or benefits accruing under, the plan in respect of the individual and the calendar year benefit from the application of paragraph 8 of Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980, or from the application of a similar provision in another tax treaty, (a) subparagraph (2)(b)(ii) shall be read without reference to the words “was resident in Canada and”; and (b) the portion of subsection (2) after subparagraph (b)(iv) shall be read as “the lesser of the money purchase limit for the year and 18% of the individual’s resident compensation from the employer for the year”. (2) Subsection (1) applies in determining pension credits for the 2009 and subsequent calendar years. 116. (1) Section 8308.2 of the Regulations is replaced by the following: 8308.2 (1) For the purposes of the descriptions of B in the definitions “RRSP deduction limit” and “unused RRSP deduction room” in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, there is prescribed in respect of an individual for a calendar year the lesser of the money purchase limit for the preceding calendar year (in this section referred to as the “service year”) and the amount determined by subsection (2), if the individual Exécution du b (a) rendered services to an employer (excluding services that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services) throughout a period in the service year in which the individual was resident in Canada; (b) became entitled, either absolutely or contingently, in the service year to benefits under a foreign plan (as defined in subsection 8308.1(1)) in respect of the services; and (c) continued to be entitled at the end of the service year, either absolutely or contingently, to all or part of the benefits. (2) The amount determined for the purpose of subsection (1) is, (a) if the only benefits to which the individual became entitled in the service year under the foreign plan were provided under one or more money purchase provisions of the foreign plan, the total of all amounts each of which is the individual’s pension credit for the service year with respect to the employer under a money purchase provision of the foreign plan, determined (i) as though the foreign plan were a registered pension plan, (ii) without regard to any contributions made by the individual, and (iii) if, under the laws of the country in which the foreign plan is established, any contributions made after the end of the service year are treated as having been made in the service year, as though those contributions were made in the service year and not when the contributions were actually made; and (b) in any other case, the greater of (i) the total that would be determined under paragraph (a) if the individual had not become entitled in the service year to any benefits under a defined benefit provision of the foreign plan, and C. 2 Budget Implem (ii) 10% of the portion of the individual’s resident compensation from the employer for the service year that is attributable to services rendered to the employer and included under paragraph (1)(a). (2) Subsection (1) applies in determining prescribed amounts for the 2009 and subsequent calendar years except that in determining prescribed amounts for 2009, the amount of the money purchase limit for 2008 is deemed to be reduced by $600. 117. (1) Subsection 8506(7) of the Regulations and the heading before it are replaced by the following: Special Rules for Minimum Amount (7) The minimum amount for a member’s account under a money purchase provision of a registered pension plan for a calendar year is (a) nil, if an individual who is either the member or the specified beneficiary of the member for the year in relation to the provision (i) is alive at the beginning of the year, and (ii) had not attained 71 years of age at the end of the preceding calendar year; and (b) if paragraph (a) does not apply and the year is 2008, 75 per cent of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year. (2) Section 8506 of the Regulations is amended by adding the following after subsection (8): Exécution du b Recontribution — Adjusted Minimum Amount for 2008 (9) If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (10), the contribution (a) is deemed to have been made in accordance with the plan as registered; (b) is to be disregarded for the purposes of paragraph (2)(c.1); and (c) is deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a). Conditions Referred to in Subsection (9) (10) The conditions referred to in subsection (9) are as follows: (a) the contribution is made in 2008; (b) the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; and (c) the amount of the contribution does not exceed the amount determined by the formula A–B–C where A is the lesser of (i) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2008 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and (ii) the amount that would, in the absence of paragraph (7)(b), be the minimum amount for the account for 2008, B is the minimum amount for the account for 2008, and C. 2 Budget Implem C is the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection. (3) Contributions described in subsections 8506(9) and (10) of the Regulations, as enacted by subsection (2), that are made during the period that begins after 2008 and ends on the day that is 30 days after the day on which this Act is assented to (or such longer period as is acceptable to the Minister of National Revenue) are deemed for the purpose of subsection 8506(10) of the Regulations, as enacted by subsection (2), to have been made on December 31, 2008 and not when they were actually made, except that the amounts so deemed shall not exceed the amount that would be determined in respect of the account under paragraph 8506(10)(c) of the Regulations, as enacted by subsection (2), if the value of C in the formula in that paragraph were nil. 118. (1) Part XC of the Regulations is replaced by the following: PART XC FINANCIAL INSTITUTIONS — PRESCRIBED ENTITIES AND PROPERTIES PRESCRIBED TRUST NOT A FINANCIAL INSTITUTION 9000. For the purpose of paragraph (e) of the definition “financial institution” in subsection 142.2(1) of the Act, a trust is, at any particular time, a prescribed person if the following conditions are satisfied at that particular time: (a) the trust is a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a) of the Act); (b) the trust is deemed, under paragraph 138.1(1)(a) of the Act, to have been created at a time that is not more than two years before that particular time; and Exécution du b (c) the cost of the trustee’s interest (as determined by paragraph 138.1(1)(c) and (d) of the Act) in the trust does not exceed $5,000,000. PRESCRIBED PROPERTY NOT MARK-TOMARKET PROPERTY 9001. (1) In this section, “qualified small business corporation”, at any time, means a corporation in respect of which the following conditions are satisfied at that time: (a) the corporation is a Canadian-controlled private corporation; (b) the corporation either is an eligible corporation (as defined in subsection 5100(1)) or would be an eligible corporation if the definition “eligible corporation” in subsection 5100(1) were read without reference to its paragraph (e); (c) the carrying value of the total assets of the corporation and all corporations related to it (determined in accordance with generally accepted accounting principles on a consolidated or combined basis, where applicable) does not exceed $50,000,000; and (d) the number of employees of the corporation and all corporations related to it does not exceed 500. (2) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share of the capital stock of a corporation is a prescribed property of a taxpayer if (a) immediately after the time at which the taxpayer acquired the share, the corporation was a qualified small business corporation, and (i) the corporation continued to be a qualified small business corporation for one year after that time, or (ii) the taxpayer could not reasonably expect at that time that the corporation would cease to be a qualified small business corporation within one year after that time; or C. 2 Budget Implem (b) the share was issued to the taxpayer in exchange for one or more shares of the capital stock of the corporation that were, at the time of the exchange, prescribed property of the taxpayer under this subsection. PRESCRIBED PROPERTY NOT MARK-TOMARKET PROPERTY 9002. (1) For the purposes of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, and of subparagraph 142.6(4)(a)(ii) of the Act, a debt obligation held by a bank is a prescribed property of the bank if the obligation is (a) an exposure to a designated country (within the meaning assigned by section 8006); (b) a United Mexican States Collateralized Par Bond due 2019; or (c) a United Mexican States Collateralized Discount Bond due 2019. (2) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share is a prescribed property of a taxpayer for a taxation year if (a) the share is a lending asset of the taxpayer in the year; or (b) the share was, immediately after its issuance, a share described in paragraph (e) of the definition “term preferred share” in subsection 248(1) of the Act, and the share would, at any time in the year, be a term preferred share if (i) that definition were read without reference to the portion following paragraph (b), and (ii) where the share was issued or acquired on or before June 28, 1982, it were issued or acquired after that day. (3) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share of the capital stock of a corporation that is held by a credit union is a prescribed property of the credit union for a taxation year if, throughout that taxation year, (a) the corporation is a credit union; or Exécution du b 2009 (b) credit unions hold (i) shares of the corporation that give the credit unions more than 50% of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, and (ii) shares of the corporation having a fair market value of more than 50% of the fair market value of all the issued shares of the corporation. PRESCRIBED PAYMENT CARD CORPORATION SHARE NOT MARK-TO-MARKET PROPERTY 9002.1 For the purpose of paragraph (b) of the definition “excluded property” in subsection 142.2(1) of the Act, a prescribed payment card corporation share of a taxpayer at any time means a share of the capital stock of a particular corporation if, at that time, (a) the particular corporation is any one of the following (i) MasterCard International Incorporated, (ii) MasterCard Incorporated, or (iii) Visa Inc.; and (b) the share (i) is of a class of shares that is not listed on a stock exchange, (ii) is not convertible into or exchangeable for a share of the class of the capital stock of a corporation that is listed on a stock exchange, and (iii) was issued by the particular corporation to the taxpayer or to a person related to the taxpayer. PRESCRIBED SECURITIES EXCHANGE INVESTMENT NOT MARK-TO-MARKET PROPERTY 9002.2 For the purpose of paragraph (c) of the definition “excluded property” in subsection 142.2(1) of the Act, a prescribed securities C. 2 Budget Implem exchange investment of a taxpayer at any time means a share of the capital stock of a corporation if, at that time, the corporation is not a public corporation and is (a) The Toronto Stock Exchange Inc.; (b) TSX Inc.; (c) TSX Group Inc.; (d) Bourse de Montréal Inc.; or (e) Canadian Venture Exchange Inc. SIGNIFICANT INTEREST IN A CORPORATION 9003. For the purpose of paragraph 142.2(3)(c) of the Act, a share described in paragraph 9002(2)(b) is prescribed in respect of all taxpayers. FINANCING ARRANGEMENT NOT A SPECIFIED DEBT OBLIGATION 9004. For the purpose of paragraph (c) of the definition “specified debt obligation” in subsection 142.2(1) of the Act, a property is a prescribed property throughout a taxation year if (a) the property is a direct financing lease, or any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statements for the year prepared in accordance with generally accepted accounting principles; and (b) in computing the taxpayer’s income for the year, an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the arrangement. (2) Subsection 9002(3) of the Regulations is replaced by the following: (3) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share of the capital stock of a corporation that is held by a credit union is a prescribed property of the credit union for a taxation year if, throughout the period (referred to in this subsection as the “holding period”) in that taxation year during which the credit union holds the share (a) the corporation is a credit union; or Exécution du b (b) the following conditions are satisfied: (i) credit unions hold shares of the corporation that (A) give those credit unions at least 50% of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, and (B) have a fair market value of at least 50% of the fair market value of all the issued shares of the corporation, (ii) the corporation is not controlled, directly or indirectly in any manner whatever, by any person that is not a credit union, and (iii) the corporation would not be controlled by a person that is not a credit union if each share of the corporation that is not owned at any time in the holding period by a credit union were owned, at that time, by the person. (3) Section 9002.2 of the Regulations is repealed. (4) The portion of Part XC before section 9002.2 and section 9003 of the Regulations, as enacted by subsection (1), apply to taxation years that end after February 22, 1994, except that (a) in applying sections 9001 and 9002 of the Regulations, as enacted by subsection (1), to taxation years that begin before October 2006, the references in those sections to “excluded property” are to be read as references to “mark-to-market property”; and (b) in applying section 9002.1 of the Regulations, as enacted by subsection (1), to taxation years that begin before October 2006, the reference in that section to “paragraph (b) of the definition “excluded property”” is to be read as a reference to “paragraph (d.1) of the definition “markto-market property””. C. 2 Budget Implem (5) Section 9002.2 of the Regulations, as enacted by subsection (1), applies to taxation years that begin after 1998 and before 2008, except that in applying that section to taxation years that begin before October 2006, the reference in that section to “paragraph (c) of the definition “excluded property”” is to be read as a reference to “paragraph (d.2) of the definition “mark-tomarket property””. (6) Section 9004 of the Regulations, as enacted by subsection (1), applies to taxation years that begin after February 2, 2009. (7) Subsection 9002(3) of the Regulations, as enacted by subsection (2), applies to taxation years that begin after February 2, 2009, except that (a) it also applies to taxation years, of a taxpayer, that end after 2002 and begin before February 3, 2009, if the taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to; and (b) if a taxpayer makes an election under paragraph (a), in applying subsection 9002(3) of the Regulations, as enacted by subsection (2), for taxation years of the taxpayer that begin before October 2006, the reference in that subsection to “excluded property” is to be read as a reference to “mark-to-market property”. (8) Subsection (3) applies to taxation years that begin after 2007. Exécution du b 2009 PART 2 AMENDMENTS IN RESPECT OF SALES AND EXCISE TAXES 2002, c. 22 2005, c. 38, s. 92 “officer” « préposé » EXCISE ACT, 2001 119. The portion of the definition “officer” in section 2 of the English version of the Excise Act, 2001 before paragraph (a) is replaced by the following: “officer” means, except in section 167, in the definition “contact information” in subsection 211(1) and in sections 226 and 296, 120. (1) The portion of the definition “confidential information” in subsection 211(1) of the Act after paragraph (b) is replaced by the following: It excludes information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (8) and (9) to a representative of a government entity that is not an official, it includes only the information referred to in paragraph (6)(j). (2) Subsection 211(1) of the Act is amended by adding the following in alphabetical order: “aboriginal government” « gouvernement autochtone » “contact information” « coordonnées » “aboriginal government” means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act. “contact information”, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more (a) trustees of the holder, if the holder is a trust; (b) members of the holder, if the holder is a partnership; (c) officers of the holder, if the holder is a corporation; or C. 2 Budget Implem (d) officers or members of the holder, in any other case. “corporate information” « renseignements d’entreprise » “government entity” « entité gouvernementale » “corporate information”, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation. “government entity” means (a) a department or agency of the government of Canada or of a province; (b) a municipality; (c) an aboriginal government; (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is (i) Her Majesty, (ii) Her Majesty in right of a province, (iii) a municipality, or (iv) a corporation described in this paragraph; or (e) a board or commission, established by Her Majesty or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by a municipality, that performs an administrative or regulatory function of a municipality. “municipality” « municipalité » “registration information” « renseignements relatifs à l’inscription » “municipality” means an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated. “registration information”, in respect of a holder of a business number, means (a) any information pertaining to the legal form of the holder; (b) the type of activities carried on or proposed to be carried on by the holder; (c) each date on which Exécution du b (i) the business number was issued to the holder, (ii) the holder began activities, (iii) the holder ceased or resumed activities, or (iv) the business number assigned to the holder was changed; and (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv). “representative” « représentant » “representative” of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (2), (3), (8) and (9), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. (3) The portion of subsection 211(2) of the Act before paragraph (a) is replaced by the following: Provision of information (2) Except as authorized under this section, no official or other representative of a government entity shall knowingly (4) Subsection 211(3) of the Act is replaced by the following: Confidential information evidence not compellable (3) Despite any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information. (5) Paragraph 211(6)(j) of the Act is replaced by the following: (j) subject to subsection (6.1), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate informa198 C. 2 Budget Implem tion and registration information in respect of, the holder of a business number, if the information is provided solely for the purpose of the administration or enforcement of (i) an Act of Parliament or of a legislature of a province, or (ii) a by-law of a municipality or a law of an aboriginal government; (6) Section 211 of the Act is amended by adding the following after subsection (6): Restrictions on information sharing (6.1) No information may be provided to a representative of a government entity under paragraph (6)(j) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service. Public disclosure (6.2) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number. Public disclosure by representative of government entity (6.3) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number, if (a) a representative of the government entity was provided with that information pursuant to paragraph (6)(j); and (b) the government entity uses the business number as an identifier in connection with the program, activity or service. (7) The portion of subsection 211(8) of the Act before paragraph (a) is replaced by the following: Exécution du b 2009 Disclosure to person or on consent (8) An official or other representative of a government entity may provide confidential information relating to a person (8) The portion of subsection 211(9) of the Act before paragraph (a) is replaced by the following: Appeal from order or direction (9) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official or other representative of a government entity to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed immediately by the Minister or by the person against whom it is made to R.S., c. E-15 EXCISE TAX ACT 1993, c. 27, s. 128(2) 121. (1) The portion of the definition “confidential information” in subsection 295(1) of the Excise Tax Act after paragraph (b) is replaced by the following: but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (6) and (7) to a representative of a government entity who is not an official, includes only the information described in paragraph (5)(j); (2) Subsection 295(1) of the Act is amended by adding the following in alphabetical order: “aboriginal government” « gouvernement autochtone » “contact information” « coordonnées » “aboriginal government” means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act; “contact information”, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more (a) trustees of the holder, if the holder is a trust, C. 2 Budget Implem (b) members of the holder, if the holder is a partnership, (c) officers of the holder, if the holder is a corporation, or (d) officers or members of the holder, in any other case; “corporate information” « renseignements d’entreprise » “government entity” « entité gouvernementale » “corporate information”, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation; “government entity” means (a) a department or agency of the government of Canada or of a province, (b) a municipality, (c) an aboriginal government, (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is (i) Her Majesty in right of Canada, (ii) Her Majesty in right of a province, (iii) a municipality, or (iv) a corporation described in this paragraph, or (e) a board or commission, established by Her Majesty in right of Canada or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by a municipality, that performs an administrative or regulatory function of a municipality; “municipality” « municipalité » “registration information” « renseignements relatifs à l’inscription » “municipality” does not include a local authority determined by the Minister to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1); “registration information”, in respect of a holder of a business number, means (a) any information pertaining to the legal form of the holder, Exécution du b (b) the type of activities carried on or proposed to be carried on by the holder, (c) each date on which (i) the business number was issued to the holder, (ii) the holder began activities, (iii) the holder ceased or resumed activities, or (iv) the business number assigned to the holder was changed, and (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv); “representative” « représentant » “representative” of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (2), (3), (6) and (7), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. 1993, c. 27, s. 128(3) (3) The portion of subsection 295(2) of the Act before paragraph (a) is replaced by the following: Provision of information (2) Except as authorized under this section, no official or other representative of a government entity shall knowingly 1993, c. 27, s. 128(3) (4) Subsection 295(3) of the Act is replaced by the following: Evidence relating to confidential information (3) Despite any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information. C. 2 2003, c. 15, s. 68(1) (5) Subparagraph 295(5)(d)(i) of the Act is replaced by the following: Budget Implem (i) to an official of the Department of Finance solely for the purposes of (A) the formulation or evaluation of fiscal policy, (B) an administration agreement, as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act, entered into with an aboriginal government, or (C) an administration agreement, as defined in subsection 2(1) of the First Nations Goods and Services Tax Act, 1996, c. 21, s. 67(2) (6) Paragraph 295(5)(j) of the Act is replaced by the following: (j) subject to subsection (5.01), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number, if the information is provided solely for the purpose of the administration or enforcement of (i) an Act of Parliament or of a legislature of a province, or (ii) a by-law of a municipality or a law of an aboriginal government; (7) Section 295 of the Act is amended by adding the following after subsection (5): Restrictions on information sharing (5.01) No information may be provided to a representative of a government entity under paragraph (5)(j) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service. Exécution du b Public disclosure (5.02) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number. Public disclosure by representative of government entity (5.03) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number, if (a) a representative of the government entity was provided with that information pursuant to paragraph (5)(j); and (b) the government entity uses the business number as an identifier in connection with the program, activity or service. 1993, c. 27, s. 128(3) (8) The portion of subsection 295(6) of the Act before paragraph (a) is replaced by the following: Disclosure to person or on consent (6) An official or other representative of a government entity may provide confidential information relating to a person 1993, c. 27, s. 128(4) (9) The portion of subsection 295(7) of the Act before paragraph (a) is replaced by the following: Appeal from order or direction (7) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official or other representative of a government entity to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to C. 2 Budget Implem PART 3 AMENDMENTS TO THE CUSTOMS TARIFF CUSTOMS TARIFF 1997, c. 36 122. Paragraph 133(c) of the Customs Tariff is replaced by the following: (c) for the purposes of tariff item No. 9801.10.10, 9801.10.20, 9801.20.00, 9808.00.00 or 9810.00.00, prescribing conditions under which goods may be imported; 123. Chapter 4 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Supplementary Note 2: 3. Milk protein substances with a milk protein content of less than 85% by weight, calculated on the dry matter, are classified in tariff item No. 0404.90.10 or 0404.90.20. Milk protein substances with a milk protein content of 85% or more by weight, calculated on the dry matter, are classified in Chapter 35 (subheading 3504.00). 124. Tariff item No. 0404.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured Nation Tariff / Final Rate” the reference to “6.5% (B)” with a reference to “3% (F)”. 125. Chapter 35 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Note 2: Supplementary Note. 1. Milk protein substances with a milk protein content of 85% or more by weight, calculated on the dry matter, are classified in tariff item No. 3504.00.11 or 3504.00.12. Milk protein substances with a milk protein content of less than 85% by weight, calculated on the dry matter, are classified in Chapter 4 (subheading 0404.90). Exécution du b 126. Tariff item No. 3504.00.00 in the List of Tariff Provisions set out in the schedule to the Act is repealed. 127. Chapter 35 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 1 to this Act. 128. The following tariff provisions of the List of Tariff Provisions set out in the schedule to the Act are repealed: The preamble preceding subheading 8406.81, subheading 8406.81, tariff item Nos. 8406.81.10, 8406.81.90, subheading 8406.82, the preamble preceding tariff item No. 8406.82.11, tariff item Nos. 8406.82.11, 8406.82.19, 8406.82.90, subheading 8413.50, tariff item Nos. 8413.50.10, 8413.50.90, subheading 8413.60, tariff item Nos. 8413.60.10, 8413.60.90, 8413.70.90, subheading 8413.81, tariff item Nos. 8413.81.10, 8413.81.90, subheading 8414.10, tariff item No. 8414.10.10, the preamble preceding tariff item No. 8414.10.91, tariff item Nos. 8414.10.91, 8414.10.99, subheading 8416.10, tariff item Nos. 8416.10.10, 8416.10.90, subheading 8417.10, tariff item No. 8417.10.10, the preamble preceding tariff item No. 8417.10.91, tariff item Nos. 8417.10.91, 8417.10.99, subheading 8417.80, tariff item Nos. 8417.80.10, 8417.80.90, subheading 8417.90, tariff item Nos. 8417.90.10, 8417.90.20, subheading 8418.69, tariff item Nos. 8418.69.10, 8418.69.90, the preamble preceding subheading 8419.31, subheading 8419.31, tariff item Nos. 8419.31.10, 8419.31.90, subheading 8419.32, tariff item Nos. 8419.32.10, 8419.32.20, subheading 8419.39, tariff item No. 8419.39.10, the preamble preceding tariff item No. 8419.39.91, tariff item Nos. 8419.39.91, 8419.39.99, subheading 8419.40, tariff item Nos. 8419.40.10, 8419.40.90, subheading 8419.81, tariff item Nos. 8419.81.10, 8419.81.90, subheading 8420.10, tariff item Nos. 8420.10.10, 8420.10.90, subheading 8421.21, tariff item Nos. 8421.21.10, 8421.21.90, subheading 8421.22, tariff item Nos. 8421.22.10, 8421.22.90, subheading 8421.29, tariff item Nos. 8421.29.10, 8421.29.90, subheading C. 2 Budget Implem 8422.20, tariff item No. 8422.20.10, the preamble preceding tariff item No. 8422.20.91, tariff item Nos. 8422.20.91, 8422.20.99, subheading 8422.30, tariff item No. 8422.30.10, the preamble preceding tariff item No. 8422.30.91, tariff item Nos. 8422.30.91, 8422.30.99, subheading 8422.40, tariff item No. 8422.40.10, the preamble preceding tariff item No. 8422.40.91, tariff item Nos. 8422.40.91, 8422.40.99, subheading 8424.20, tariff item Nos. 8424.20.10, 8424.20.90, subheading 8424.30, tariff item Nos. 8424.30.10, 8424.30.90, subheading 8424.89, tariff item Nos. 8424.89.10, 8424.89.90, subheading 8424.90, tariff item Nos. 8424.90.10, 8424.90.90, the preamble preceding tariff item No. 8427.10.91, tariff item Nos. 8427.10.91, 8427.10.99, the preamble preceding tariff item No. 8427.20.91, tariff item Nos. 8427.20.91, 8427.20.99, subheading 8427.90, tariff item Nos. 8427.90.10, 8427.90.90, subheading 8438.10, tariff item Nos. 8438.10.10, 8438.10.90, subheading 8438.50, tariff item No. 8438.50.10, the preamble preceding tariff item No. 8438.50.91, tariff item Nos. 8438.50.91, 8438.50.99, subheading 8438.80, tariff item No. 8438.80.10, the preamble preceding tariff item No. 8438.80.91, tariff item Nos. 8438.80.91, 8438.80.99, subheading 8438.90, tariff item Nos. 8438.90.10, 8438.90.20, subheading 8440.10, tariff item Nos. 8440.10.10, 8440.10.90, subheading 8441.10, tariff item Nos. 8441.10.10, 8441.10.90, subheading 8442.50, tariff item Nos. 8442.50.10, 8442.50.20, 8442.50.90, subheading 8443.11, tariff item Nos. 8443.11.10, 8443.11.20, subheading 8443.14, tariff item Nos. 8443.14.10, 8443.14.20, subheading 8443.15, tariff item Nos. 8443.15.10, 8443.15.20, subheading 8443.16, tariff item Nos. 8443.16.10, 8443.16.20, subheading 8443.19, tariff item Nos. 8443.19.10, 8443.19.20, subheading 8443.32, tariff item Nos. 8443.32.10, 8443.32.90, subheading 8443.39, tariff item Nos. 8443.39.10, 8443.39.90, the preamble preceding subheading 8443.91, subheading 8443.91, tariff item Nos. 8443.91.10, 8443.91.90, subheading 8443.99, tariff item Nos. 8443.99.10, 8443.99.90, subheading 8452.21, tariff item Nos. 8452.21.10, 8452.21.90, subheading 8453.10, tariff item No. Exécution du b 8453.10.10, the preamble preceding tariff item No. 8453.10.91, tariff item Nos. 8453.10.91, 8453.10.99, subheading 8454.20, tariff item Nos. 8454.20.10, 8454.20.20, 8454.20.30, subheading 8454.30, tariff item Nos. 8454.30.10, 8454.30.90, subheading 8456.10, tariff item Nos. 8456.10.10, 8456.10.90, subheading 8456.20, tariff item Nos. 8456.20.10, 8456.20.90, subheading 8456.90, tariff item Nos. 8456.90.10, 8456.90.90, the preamble preceding tariff item No. 8462.99.91, tariff item Nos. 8462.99.91, 8462.99.99, subheading 8464.20, tariff item Nos. 8464.20.10, 8464.20.90, the preamble preceding subheading 8465.91, subheading 8465.91, tariff item Nos. 8465.91.10, 8465.91.90, subheading 8465.92, tariff item Nos. 8465.92.10, 8465.92.90, subheading 8465.93, tariff item Nos. 8465.93.10, 8465.93.90, subheading 8465.94, tariff item Nos. 8465.94.10, 8465.94.90, subheading 8465.95, tariff item Nos. 8465.95.10, 8465.95.90, subheading 8465.96, tariff item Nos. 8465.96.10, 8465.96.90, subheading 8465.99, tariff item Nos. 8465.99.10, 8465.99.90, subheading 8472.90, tariff item Nos. 8472.90.10, 8472.90.90, subheading 8479.20, tariff item Nos. 8479.20.10, 8479.20.90, subheading 8479.30, tariff item Nos. 8479.30.10, 8479.30.90, subheading 8479.40, tariff item Nos. 8479.40.10, 8479.40.90, subheading 8479.81, tariff item Nos. 8479.81.10, 8479.81.90, subheading 8479.82, tariff item Nos. 8479.82.10, 8479.82.90, the preamble preceding tariff item No. 8479.89.91, tariff item Nos. 8479.89.91, 8479.89.99, subheading 8480.41, tariff item Nos. 8480.41.10, 8480.41.90, subheading 8482.20, tariff item Nos. 8482.20.10, 8482.20.90, subheading 8482.91, tariff item No. 8482.91.10, the preamble preceding tariff item No. 8482.91.91, tariff item Nos. 8482.91.91, 8482.91.99, the preamble preceding tariff item No. 8482.99.91, tariff item Nos. 8482.99.91, 8482.99.99, subheading 8484.10, tariff item Nos. 8484.10.10, 8484.10.90, subheading 8484.20, tariff item Nos. 8484.20.10, 8484.20.90, subheading 8484.90, tariff item Nos. 8484.90.10, 8484.90.90, subheading 8487.90, tariff item Nos. 8487.90.10, 8487.90.90, subheading 8504.10, tariff item C. 2 Budget Implem Nos. 8504.10.10, 8504.10.90, the preamble preceding subheading 8504.21, subheading 8504.21, tariff item Nos. 8504.21.10, 8504.21.90, subheading 8504.22, tariff item Nos. 8504.22.10, 8504.22.90, subheading 8504.23, tariff item Nos. 8504.23.10, 8504.23.90, the preamble preceding subheading 8504.31, subheading 8504.31, tariff item Nos. 8504.31.10, 8504.31.90, subheading 8504.32, tariff item Nos. 8504.32.10, 8504.32.90, subheading 8504.33, tariff item Nos. 8504.33.10, 8504.33.90, subheading 8504.34, tariff item Nos. 8504.34.10, 8504.34.90, subheading 8504.50, tariff item Nos. 8504.50.10, 8504.50.20, 8504.50.90, subheading 8505.19, tariff item Nos. 8505.19.10, 8505.19.90, subheading 8505.20, tariff item Nos. 8505.20.10, 8505.20.90, subheading 8512.20, tariff item Nos. 8512.20.10, 8512.20.90, subheading 8512.90, tariff item Nos. 8512.90.10, 8512.90.90, subheading 8514.10, the preamble preceding tariff item No. 8514.10.11, tariff item Nos. 8514.10.11, 8514.10.19, 8514.10.90, subheading 8514.20, the preamble preceding tariff item No. 8514.20.11, tariff item Nos. 8514.20.11, 8514.20.19, 8514.20.90, subheading 8514.30, the preamble preceding tariff item No. 8514.30.11, tariff item Nos. 8514.30.11, 8514.30.19, 8514.30.90, subheading 8514.40, tariff item Nos. 8514.40.10, 8514.40.90, subheading 8515.19, tariff item Nos. 8515.19.10, 8515.19.90, the preamble preceding subheading 8515.21, subheading 8515.21, tariff item Nos. 8515.21.10, 8515.21.90, subheading 8515.29, tariff item Nos. 8515.29.10, 8515.29.90, subheading 8535.10, tariff item Nos. 8535.10.10, 8535.10.90, subheading 8535.21, tariff item Nos. 8535.21.10, 8535.21.90, subheading 8535.30, tariff item Nos. 8535.30.10, 8535.30.90, subheading 8536.10, tariff item Nos. 8536.10.10, 8536.10.90, the preamble preceding subheading 8536.41, subheading 8536.41, tariff item Nos. 8536.41.10, 8536.41.20, 8536.41.90, subheading 8536.49, tariff item Nos. 8536.49.10, 8536.49.90, subheading 8536.69, tariff item Nos. 8536.69.10, 8536.69.20, 8536.69.90, 8537.10.92, subheading 8537.20, tariff item Nos. 8537.20.10, 8537.20.90, subheading 8538.10, tariff item Nos. 8538.10.10, 8538.10.90, the preamble Exécution du b preceding tariff item No. 8538.90.91, tariff item Nos. 8538.90.91, 8538.90.99, subheading 8540.81, tariff item Nos. 8540.81.10, 8540.81.90, subheading 8543.10, tariff item Nos. 8543.10.10, 8543.10.90, subheading 8543.30, tariff item No. 8543.30.10, the preamble preceding tariff item No. 8543.30.91, tariff item Nos. 8543.30.91, 8543.30.99, subheading 8543.70, tariff item No. 8543.70.10, the preamble preceding tariff item No. 8543.70.21, tariff item Nos. 8543.70.21, 8543.70.29, the preamble preceding tariff item No. 8543.70.91, tariff item Nos. 8543.70.91, 8543.70.99, subheading 8543.90, tariff item Nos. 8543.90.20, 8543.90.90, subheading 8544.20, tariff item Nos. 8544.20.10, 8544.20.90, subheading 8544.42, tariff item Nos. 8544.42.10, 8544.42.20, 8544.42.90, subheading 8547.10, tariff item Nos. 8547.10.10, 8547.10.90, subheading 8547.90, tariff item Nos. 8547.90.10, 8547.90.90 and 9801.10.00. 129. The Description of Goods in the preamble preceding tariff item No. 8406.90.31 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following: —Other parts of the goods of tariff item No. 8406.81.00 or 8406.82.00: 130. Tariff item No. 8406.90.32 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. C. 2 Budget Implem 131. Tariff item No. 8406.90.34 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 132. Tariff item No. 8406.90.37 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 133. Tariff item No. 8406.90.39 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 134. Tariff item No. 8413.91.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 135. Tariff item No. 8413.91.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the Description of Goods, the reference to “8413.50.90, 8413.60.90, 8413.70.90 or 8413.81.90” with a reference to “8413.50.00, 8413.60.00, 8413.70.91, 8413.70.99 or 8413.81.00”; and (b) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”. 136. The Description of Goods of tariff item No. 8413.91.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8413.50.10, 8413.60.10, 8413.70.10 or 8413.81.10” with a reference to “8413.50.00, 8413.60.00, 8413.70.10 or 8413.81.00”. 137. Tariff item No. 8417.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the Exécution du b column “Most-Favoured-Nation Tariff / Final Rate” the reference to “7% (A)” with a reference to “Free (F)”. 138. Tariff item No. 8418.61.91 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 139. The Description of Goods of tariff item No. 8418.91.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8418.69.90” with a reference to “8418.69.00”. 140. The Description of Goods of tariff item No. 8418.91.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8418.69.10” with a reference to “8418.69.00”. 141. Tariff item No. 8419.89.21 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 142. Tariff item No. 8419.89.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; (b) in the column “Preferential Tariff / Final Rate”, the reference to “6% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and (c) in the column “Preferential Tariff / Final Rate”, the reference to “6% (A)” after the abbreviation “NZT” with a reference to “Free (F)”. 143. Tariff item No. 8421.39.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the C. 2 Budget Implem column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 144. Tariff item No. 8422.19.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 145. Tariff item No. 8423.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 146. Tariff item No. 8423.30.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 147. Tariff item No. 8423.81.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 148. Tariff item No. 8423.82.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 149. Tariff item No. 8423.89.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 150. Tariff item No. 8423.90.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. Exécution du b 151. Tariff item No. 8427.20.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 152. Tariff item No. 8439.10.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 153. Tariff item No. 8439.20.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 154. Tariff item No. 8439.30.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “5% (A)” with a reference to “Free (F)”. 155. Tariff item No. 8443.12.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”. 156. Tariff item No. 8462.99.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 157. Tariff item No. 8464.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 158. Tariff item No. 8468.10.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the C. 2 Budget Implem column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 159. Tariff item No. 8468.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”. 160. Tariff item No. 8472.10.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”. 161. Tariff item No. 8479.50.91 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 162. Tariff item No. 8479.89.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”. 163. Tariff item No. 8479.89.41 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 164. Tariff item No. 8482.99.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the Description of Goods, the reference to “8482.20.10” with a reference to “8482.20.00”; and (b) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “5.5% (A)” with a reference to “Free (F)”. 165. Tariff item No. 8483.50.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing Exécution du b (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 166. Tariff item No. 8483.50.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 167. Tariff item No. 8483.60.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 168. Tariff item No. 8483.90.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 169. Tariff item No. 8483.90.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and C. 2 Budget Implem (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 170. Chapter 84 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 2 to this Act. 171. Tariff item No. 8504.40.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 172. Tariff item No. 8504.40.40 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 173. Tariff item No. 8505.11.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2% (A)” with a reference to “Free (F)”. 174. Tariff item No. 8515.11.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 175. Tariff item No. 8515.31.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the Exécution du b column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 176. Tariff item No. 8515.39.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 177. Tariff item No. 8515.80.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”. 178. The Description of Goods of tariff item No. 8518.30.91 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following: ——Headphones, including earphones, and telephone headsets 179. Tariff item No. 8535.29.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2% (A)” with a reference to “Free (F)”. 180. Tariff item No. 8535.40.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. 181. Tariff item No. 8535.90.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “7% (A)” with a reference to “Free (F)”. 182. Tariff item No. 8535.90.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”. C. 2 Budget Implem 183. Tariff item No. 8535.90.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 184. Tariff item No. 8536.30.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 185. Tariff item No. 8536.30.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 186. Tariff item No. 8536.50.12 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “5% (A)” with a reference to “Free (F)”. 187. Tariff item No. 8536.50.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “5% (A)” with a reference to “Free (F)”. 188. Tariff item No. 8536.90.99 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 189. Tariff item No. 8537.10.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 190. Tariff item No. 8537.10.29 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the Exécution du b column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 191. The Description of Goods of tariff item No. 8537.10.31 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following: ——Automated industrial control systems, excluding panels for anode formers 192. Tariff item No. 8537.10.91 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 193. Tariff item No. 8537.10.99 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 194. Tariff item No. 8538.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”. 195. Tariff item No. 8538.90.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”. 196. Tariff item No. 8538.90.39 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”. 197. Tariff item No. 8540.11.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and C. 2 Budget Implem (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 198. Tariff item No. 8540.11.12 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 199. Tariff item No. 8540.11.21 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 200. Tariff item No. 8540.11.22 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. 201. Tariff item No. 8540.11.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”. Exécution du b 202. Tariff item No. 8540.12.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 203. Tariff item No. 8540.12.99 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 204. Tariff item No. 8540.40.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 205. Tariff item No. 8540.50.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 206. Tariff item No. 8540.60.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 207. Tariff item No. 8540.72.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 208. Tariff item No. 8540.79.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”. 209. Tariff item No. 8540.89.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the C. 2 Budget Implem column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”. 210. Tariff item No. 8543.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 211. Tariff item No. 8546.10.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”. 212. Tariff item No. 8546.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”. 213. Chapter 85 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 3 to this Act. 214. The Description of Goods of tariff item No. 9897.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.00” with a reference to “9801.10.10, 9801.10.20”. 215. Chapter 98 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 4 to this Act. 216. The Description of Goods of tariff item No. 9945.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by deleting the reference to “Gas turbines or parts thereof;”. 217. The Description of Goods of tariff item No. 9993.00.00 in the List of Tariff Provisions set out in the schedule to the Act is Exécution du b amended by replacing the reference to “9801.10.00” with a reference to “9801.10.10, 9801.10.20”. 218. Chapter 99 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff item set out in Schedule 5 to this Act. 219. Tariff item Nos. 8504.50.20 and 8536.69.20 in the List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act are repealed. 220. (1) The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff item set out in Schedule 6 to this Act. (2) The List of Intermediate and Final Rates for the Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Schedule 7 to this Act. COMING INTO FORCE September 8, 2008 221. (1) Sections 123 to 127 and subsection 220(1) are deemed to have come into force on September 8, 2008. January 28, 2009 (2) Sections 122 and 128 to 219 and subsection 220(2) are deemed to have come into force on January 28, 2009. PART 4 EMPLOYMENT INSURANCE 1996, c. 23 EMPLOYMENT INSURANCE ACT 222. Section 66 of the Employment Insurance Act is amended by adding the following after subsection (3): Premium rate for 2010 (4) Despite subsections (1) to (3), the premium rate for the year 2010 is 1.73%. C. 2 Budget Implem 223. The Act is amended by adding the following after section 73: Benefit enhancements under this Act 73.1 There shall be credited to the Employment Insurance Account on August 1, 2010 the amount determined by the Minister of Finance that corresponds to the cost of the benefit enhancement measures under this Act, provided for in the budget tabled in Parliament on January 27, 2009 in which the cost is estimated to be $2,900,000,000. 224. (1) Schedule I to the Act is replaced by the Schedule I set out in Schedule 8 to this Act. (2) Schedule I to the Act is replaced by the Schedule I set out in Schedule 9 to this Act. CLAIMANTS NOT IN CANADA Subsection 55(7) 225. The maximum number of weeks for which benefits may be paid to a claimant referred to in subsection 55(7) of the Employment Insurance Regulations whose benefit period has not ended before the second Sunday before the day on which this Act receives royal assent and does not begin after September 11, 2010 is to be determined in accordance with Schedule 10. PILOT PROJECT RELATING TO EXTENDED BENEFITS Pilot Project No. 10 226. (1) Section 77.6 of the Employment Insurance Regulations is deemed to cease to have effect on the second Saturday before the day on which this Act receives royal assent. Transitional (2) The maximum number of weeks for which benefits may be paid in a benefit period that is established for a claimant who is included in Pilot Project No. 10 and whose benefit period has not ended before the second Sunday before the day on which this Act receives royal assent is to be determined in accordance with Schedule I to the Employment Insurance Act, as enacted by subsection 224(1). Exécution du b PREMIUM RATES PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT Deeming provision 227. Section 66.1 of the Employment Insurance Act, as enacted by section 9 of chapter 5 of the Statutes of Canada, 2001, is deemed to have read as follows: Premium rates for 2002 and 2003 66.1 Notwithstanding section 66, the premium rates for the years 2002 and 2003 are 2.2% and 2.1%, respectively. Deeming provision 228. Section 66.3 of the Employment Insurance Act, as enacted by section 25 of chapter 22 of the Statutes of Canada, 2004, is deemed to have read as follows: Premium rate for 2005 66.3 Notwithstanding section 66, the premium rate for the year 2005 is 1.95%. TRANSITIONAL PROVISION Application 229. Subsection 224(1) applies with respect to every claimant whose benefit period has not ended before the day on which that subsection comes into force and whose benefit period does not begin after September 11, 2010. COORDINATING AMENDMENTS 2008, c. 28 230. (1) In this section, “other Act” means the Budget Implementation Act, 2008. (2) If section 127 of the other Act comes into force before section 222 of this Act, then (a) that section 222 is deemed never to have come into force and is repealed; and (b) section 66 of the Employment Insurance Act is amended by adding the following after subsection (1): Premium rate for 2010 (1.1) Despite subsection (1), the premium rate for the year 2010 is 1.73%. (3) If section 222 of this Act comes into force before section 127 of the other Act, then, on the day on which that section 127 comes into force, section 66 of the Employment Insurance Act is amended by adding the following after subsection (1): C. 2 Premium rate for 2010 (1.1) Despite subsection (1), the premium rate for the year 2010 is 1.73%. Budget Implem (4) If section 127 of the other Act comes into force on the same day as section 222 of this Act, then that section 222 is deemed to have come into force before that section 127 and subsection (3) applies as a consequence. COMING INTO FORCE Retroactive effect 231. (1) Subsection 224(1) is deemed to have come into force on the second Sunday before the day on which this Act receives royal assent. September 12, 2010 (2) Subsection 224(2) comes into force on September 12, 2010. PART 5 STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM DIVISION 1 R.S., c. F-11 FINANCIAL ADMINISTRATION ACT 232. The Financial Administration Act is amended by adding the following after section 60.1: PART IV.1 STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM Definitions 60.2 (1) The following definitions apply in this section. “debt obligation” « titre de créance » “debt obligation” means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured. “entity” « entité » “entity” means an entity that, in the Minister’s opinion, is operating in Canada. “financial markets” « marchés financiers » “financial markets” includes markets for money, bonds, equities, derivatives, foreign exchange and commodities. “financial system” « système financier » “financial system” includes financial institutions, financial markets and payment systems as defined in section 36 of the Canadian Payments Act. Exécution du b 2009 “security” « titre » “security” means (a) in relation to a corporation, a share, a class of shares or a debt obligation of the corporation, and includes any conversion or exchange privilege, option or other right to acquire a share of the corporation; and (b) in relation to any other entity, any ownership interest in or debt obligation of the entity. Contracts (2) Subject to subsection (3), the Minister may, with the Governor in Council’s authorization, enter into, on behalf of Her Majesty in right of Canada, any contract that in the Minister’s opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including such a contract to (a) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity; (b) create a charge on, or right or interest in, securities of an entity held by the Minister; (c) make a loan to an entity; (d) provide a line of credit to an entity; (e) guarantee any debt, obligation or financial asset of an entity; or (f) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity. Non-application to certain entities (3) Paragraph (2)(a) does not apply to (a) shares, as defined in subsection 973.2(15) of the Bank Act, of a bank or bank holding company, as defined in section 2 of that Act; (b) shares, as defined in subsection 459.9(14) of the Cooperative Credit Associations Act, of an association as defined in section 2 of that Act; C. 2 Budget Implem (c) shares, as defined in subsection 1016.7(15) of the Insurance Companies Act, of a company or insurance holding company, as defined in subsection 2(1) of that Act; or (d) shares, as defined in subsection 527.9(15) of the Trust and Loan Companies Act, of a company as defined in section 2 of that Act. Section 90 does not apply (4) Section 90 does not apply if the Minister purchases, acquires or sells or otherwise disposes, under paragraph (2)(a), of shares within the meaning of that section. Section 61 and Surplus Crown Assets Act do not apply (5) Section 61 and the Surplus Crown Assets Act do not apply if the Minister holds, loans or sells or otherwise disposes of securities under paragraph (2)(a). Payments out of C.R.F. (6) Any amount payable under or in connection with a contract entered into under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner that the Minister considers appropriate. Retroactive effect (7) This section applies to any contract entered into on or after November 30, 2008. DIVISION 2 R.S., c. C-3 CANADA DEPOSIT INSURANCE CORPORATION ACT Amendments to the Act 233. Section 2 of the Canada Deposit Insurance Corporation Act is amended by adding the following in alphabetical order: “bridge institution” « institutionrelais » “bridge institution” means a federal institution that is designated as a bridge institution by an order made under paragraph 39.13(1)(c); 234. The Act is amended by adding the following after section 7: Power of Governor in Council 7.1 (1) The Governor in Council may, by order, exempt the Corporation from the requirement that it pursue its objects in a manner that Exécution du b will minimize its exposure to loss when it takes any action to address a situation that is specified in the order. Condition precedent (2) The Governor in Council may make the order only if the Minister is of the opinion, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of a situation that will be specified in the order, might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability. Repeal (3) The Governor in Council may repeal the order only if the Minister is of the opinion that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of the situation specified in the order, will no longer have an adverse effect on the stability of the financial system in Canada or public confidence in that stability. Coming into force 7.2 (1) An order made under subsection 7.1(1) has effect from the time that it is made. Statutory Instruments Act (2) The Statutory Instruments Act does not apply to the order. Publication (3) The Minister shall cause a notice to be published in the Canada Gazette that the order has been made or repealed as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability. Recovery of loss 7.3 After the publication of a notice in the Canada Gazette that an order was made under subsection 7.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of pursuing its objects without regard to the requirement that it do so in a manner that minimizes its exposure to loss. C. 2 Budget Implem 235. The Act is amended by adding the following after section 10: Exemption — shares of member institution 10.01 (1) To enable the Corporation to acquire, hold or dispose of shares under paragraph 10(1)(f.1), the Minister may, by order, exempt any person or share specified in the order from any of the following provisions: (a) sections 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1, 379, 385, 401.2 and 401.3 of the Bank Act; (b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and (c) sections 375, 375.1, 376, 379, 396 and 399 of the Trust and Loan Companies Act. Conditions (2) The exemption may be subject to conditions. Duration of exemption (3) The exemption ceases to have effect five years after the day on which it comes into force. Extension (4) The Minister may, by order, extend the duration of the exemption if general market conditions so warrant. Statutory Instruments Act (5) The Statutory Instruments Act does not apply to an order made under this section. 1996, c. 6, s. 24; 1997, c. 15, s. 111(E) 236. (1) The portion of subsection 10.1(3) of the Act before paragraph (b) is replaced by the following: Total indebtedness (3) The total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed (a) $15,000,000,000 or, if it is greater, the amount determined in accordance with subsections (3.1) to (3.5); or (2) Section 10.1 of the Act is amended by adding the following after subsection (3): Increase (3.1) Subject to subsections (3.3) and (3.4), the amount that the total principal indebtedness outstanding at any time in respect of borrowings Exécution du b under subsections (1) and (2) shall not exceed is increased each year to the amount determined by the formula A + (A × B) where A is the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed on January 1 of the current year; and B is the rate determined by the formula set out in subsection (3.2). Rate (3.2) The rate referred to in the description of B in subsection (3.1) is determined by the formula (C – D) / D where C is the total amount of deposits insured by the Corporation on April 30 of the current year; and D is the total amount of deposits insured by the Corporation on April 30 of the previous year. Rounding (3.3) The amount determined under subsection (3.1) shall be rounded to the nearest billion dollars or, if the amount is equidistant from two consecutive multiples of one billion dollars, it shall be rounded to the higher of those two multiples. No change (3.4) The amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed does not change if the amount determined for D in subsection (3.2) is greater than the amount determined for C in that subsection. Date effective (3.5) The new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed comes into effect on December 31 of the current year. Publication (3.6) The Corporation shall publish the new amount that the total principal indebtedness outstanding at any time in respect of borrowings C. 2 Budget Implem under subsections (1) and (2) shall not exceed in its annual report following the day on which the new amount comes into effect. 237. The Act is amended by adding the following after section 11: Minister’s direction 11.1 (1) The Minister may, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, give a written direction to the Corporation if the Minister is of the opinion that not giving the direction might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability. Compliance without regard to minimizing loss (2) The Corporation shall comply with the direction without regard to the requirement referred to in paragraph 7(c) that it pursue its objects in a manner that will minimize its exposure to loss. Implementation (3) The Corporation’s directors shall ensure that the direction is implemented in a prompt and efficient manner and, if in so doing they act in accordance with section 115 of the Financial Administration Act, they are not accountable for any consequences arising from the implementation of the direction. Notification of implementation (4) After implementing the direction, the Corporation shall notify the Minister without delay that the direction has been implemented. Best interests (5) The Corporation’s compliance with a direction is deemed to be in its best interests. Statutory Instruments Act 11.2 (1) The Statutory Instruments Act does not apply to a direction given under subsection 11.1(1). Publication (2) The Minister shall cause a notice to be published in the Canada Gazette that a direction was given under subsection 11.1(1) as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability. Recovery of loss 11.3 After the publication of a notice in the Canada Gazette that a direction was given under subsection 11.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class Exécution du b of member institutions in order to recover the loss that the Corporation determines it incurred as a result of complying with the direction. R.S., c. 18 (3rd Supp.), s. 52(1) 238. Subsection 14(2.7) of the Act is replaced by the following: Preparatory examination (2.7) If the Corporation believes that it would be in the best interests of both the depositors with the member institution and the Corporation that preparations be made to make a payment under this Act in respect of a deposit held by a member institution, the Corporation may make or cause to be made by any person designated by the Corporation, an examination of the books, records and accounts of the member institution relating to its deposit liabilities. For the purposes of the examination, the Corporation and the person designated by it have a right of access to those books, records and accounts and are entitled to require the member institution’s directors, officers, auditors and any receiver or liquidator of the member institution to furnish any information and explanations regarding the deposits held by the member institution that the Corporation or person may require. R.S., c. 18 (3rd Supp.), s. 58 239. Section 24 of the Act is replaced by the following: Where premiums payable 24. All premiums payable shall be paid to the Corporation at its head office. 240. The Act is amended by adding the following after section 25.1: Non-application to special premium 25.2 Section 21, subsection 22(2), section 23 and subsection 37(5) do not apply to a special premium. By-laws — special premium 25.3 (1) In respect of each order made under subsection 7.1(1) or each direction given under subsection 11.1(1), the Board may make bylaws respecting the recovery from member institutions or any class of member institutions of the loss referred to in section 7.3 or 11.3, as the case may be, including by-laws C. 2 Budget Implem (a) fixing the special premium payable by member institutions or any class of member institutions or providing for the manner of fixing the special premium; (b) establishing a system of classifying member institutions in different classes; (c) establishing the criteria or factors to be taken into account or procedures to be followed by the Corporation in determining the class in which a member institution is classified; or (d) respecting the time and manner in which a special premium shall be paid. When by-law not effective (2) A by-law made under subsection (1) is not effective unless it has been approved in writing by the Minister. 1992, c. 26, s. 11 241. The heading before section 39.1 of the Act is replaced by the following: VESTING IN CORPORATION AND APPOINTING CORPORATION AS RECEIVER 242. Section 39.1 of the Act is amended by adding the following after subsection (3): Urgency (4) Despite subsections (1) and (3), the Superintendent may report to the Corporation orally if he or she is of the opinion that the federal member institution’s circumstances must be considered without delay. 1996, c. 6, s. 41 243. (1) Subsection 39.13(1) of the Act is replaced by the following: Order 39.13 (1) The Governor in Council may, on the recommendation of the Minister made under section 39.12, by order, (a) vest the shares and subordinated debt of the federal member institution in the Corporation; (b) appoint the Corporation as receiver in respect of the federal member institution; or (c) direct the Minister to incorporate a federal institution designated in the order as a bridge institution. Exécution du b 2009 Condition precedent (1.1) The making of an order, under paragraph (1)(b), appointing the Corporation as receiver of the federal member institution is a condition precedent to the making of an order under paragraph (1)(c) in respect of the federal member institution. 1996, c. 6, s. 41 (2) The portion of subsection 39.13(2) of the French version of the Act before paragraph (a) is replaced by the following: But du décret portant dévolution (2) Le décret portant dévolution : 1996, c. 6, s. 41 (3) The portion of subsection 39.13(3) of the French version of the Act before paragraph (a) is replaced by the following: Décret nommant séquestre (3) Le décret pris en vertu de l’alinéa (1)b) fait de la Société le séquestre unique de tout ou partie de l’actif et de l’entreprise de l’institution fédérale membre, selon les termes du décret, et lui donne le pouvoir, entre autres : 244. The Act is amended by adding the following after section 39.13: Order to exempt or adapt 39.131 (1) The Governor in Council may, by order, (a) exempt a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution or a subsidiary of any of those institutions from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them: (i) the Bank Act, (ii) the Canadian Payments Act, (iii) the Cooperative Credit Associations Act, (iv) the Financial Consumer Agency of Canada Act, (v) the Insurance Companies Act, (vi) the Office of the Superintendent of Financial Institutions Act, (vii) the Trust and Loan Companies Act, and C. 2 Budget Implem (viii) the Winding-up and Restructuring Act; or (b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution or a subsidiary of any of those institutions only in the manner and to the extent provided for in the order and adapt that provision for the purpose of that application. Scope or conditions (2) The exemption may be limited in scope or duration or made subject to conditions. Coming into force 39.132 (1) An order made under subsection 39.131(1) has effect from the time that it is made. Statutory Instruments Act (2) The Statutory Instruments Act does not apply to the order. Publication (3) The Minister shall cause the order to be published in the Canada Gazette as soon as the Minister considers appropriate. 1996, c. 6, s. 41 245. (1) Paragraph 39.15(1)(a) of the Act is replaced by the following: (a) no action or other civil proceeding may be commenced or continued against the federal member institution or in respect of its assets other than a proceeding under the Winding-up and Restructuring Act commenced by the Corporation or the Attorney General of Canada; 1996, c. 6, s. 41 (2) Subsection 39.15(1) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) no person may terminate or amend any agreement with the federal member institution or claim an accelerated payment, or forfeiture of the term, under any such agreement with the federal member institution by reason only of (i) the federal member institution’s insolvency, Exécution du b (ii) a default, before the order was made, by the federal member institution in the performance of its obligations under the agreement, (iii) the making of the order, or (iv) the agreement being assigned to or assumed by the bridge institution; and (f) no person may terminate the federal member institution’s membership in an organization by reason only of (i) the default by the federal member institution in the performance of its obligations under the rules of the organization, (ii) the making of the order, or (iii) the federal member institution’s membership being transferred to the bridge institution. 1996, c. 6, s. 41 (3) Paragraph 39.15(2)(b) of the Act is replaced by the following: (b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have, on (i) the federal member institution’s insolvency, (ii) the default by the federal member institution in the performance of its obligations, (iii) the making of the order, or (iv) the agreement being assigned to or assumed by the bridge institutions. (4) Section 39.15 of the Act is amended by adding the following after subsection (2): Organization’s rules — no force or effect (2.1) If an order is made under subsection 39.13(1), any stipulation in the rules of an organization is of no force or effect if it (a) has the effect of providing for or permitting anything that, in substance, is contrary to paragraph (1)(f) or 39.13(3)(b); or C. 2 Budget Implem (b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of the bridge institution, does not have the rights — of a member of the organization, that the federal member institution or the bridge institution would otherwise have, on (i) the federal member institution’s insolvency, (ii) the default by the federal member institution in the performance of its obligations, (iii) the making of the order, or (iv) the federal member institution’s membership being transferred to the bridge institution. (5) Section 39.15 of the Act is amended by adding the following after subsection (3): Clearing agent (3.1) A member of the Canadian Payments Association that acts as a clearing agent for a federal member institution at the time an order directing the incorporation of a bridge institution is made with respect to the federal member institution shall act as a clearing agent for the bridge institution, if the Corporation undertakes to (a) unconditionally guarantee the federal member institution’s obligations to the clearing agent as clearing agent; or (b) ensure that the federal member institution’s obligations to the clearing agent as clearing agent are assumed by the bridge institution. 2001, c. 9, s. 212(2) (6) Paragraph 39.15(6)(b) of the Act is replaced by the following: (b) the Superintendent, on the application of the federal member institution, exempted the security agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and, in the case of an order directing the incorporation of a bridge institution, the Corporation does not undertake to ensure that Exécution du b the obligations secured by the security interest will be assumed by the bridge institution and does not undertake to unconditionally guarantee payment of the obligations secured by the security interest. (7) Section 39.15 of the Act is amended by adding the following after subsection (7): Corporation’s undertaking — eligible financial contracts (7.1) If an order directing the incorporation of a bridge institution is made, the actions referred to in subsection (7) may not be taken by reason only that the order or an order appointing the Corporation as receiver is made in respect of the federal member institution or that the eligible financial contract is assigned to the bridge institution if the Corporation undertakes to (a) unconditionally guarantee the payment of any amount due or that may become due — in accordance with the provisions of the eligible financial contract — by the federal member institution; or (b) ensure that all obligations arising from the eligible financial contract will be assumed by the bridge institution. 246. The Act is amended by adding the following after section 39.15: Stay of proceedings — bridge institution 39.151 Any action or other civil proceeding to which a bridge institution becomes a party by virtue of acquiring assets or assuming liabilities of a federal member institution shall be stayed for a period of 90 days at the bridge institution’s request. 1996, c. 6, s. 41 247. Subsections 39.2(5) and (6) of the Act are replaced by the following: Approval by Minister (5) A transaction referred to in subsection (1) or (2) has no force or effect until it is approved by the Minister, unless it is between the Corporation, as receiver for a federal member institution, and a bridge institution. Novation (6) Any person who assumes a liability of the federal member institution under a transaction referred to in subsection (1) or (2) becomes liable — instead of the federal member institu240 C. 2 Budget Implem tion — to discharge the liability, on approval of the transaction by the Minister or as soon as the person assumes the liability if the transaction does not require the Minister’s approval. Exception (7) Subsection (6) does not apply to the bridge institution’s assumption of any portion of the federal member institution’s liability that is not insured by the Corporation. Novation — trust (8) A trust company within the meaning of subsection 57(2) of the Trust and Loan Companies Act that is designated as a bridge institution may become a trustee in substitution for the federal member institution without formality or the consent of any beneficiary of the trust. 248. The Act is amended by adding the following after section 39.2: Terms and conditions of transactions 39.201 (1) If the Corporation as receiver for a federal member institution carries out a transaction with a bridge institution, the Corporation shall establish the terms and conditions of the transaction, including (a) which assets the bridge institution shall acquire and the consideration to be paid for the assets acquired; and (b) which liabilities the bridge institution shall assume and the consideration to be paid for the liabilities assumed. Reasonable consideration (2) The consideration referred to in paragraph (1)(a) shall be reasonable in the circumstances. Compensation (3) Nothing in subsections (1) and (2) prevents the federal member institution from seeking compensation under subsections 39.24(2) and (3) and sections 39.25 to 39.361. Deposit liabilities 39.202 (1) A bridge institution shall assume all of the liabilities with respect to a federal member institution’s deposits that are insured by the Corporation. Subrogation (2) If the bridge institution assumes any portion of a federal member institution’s liability that is not insured by the Corporation, the bridge institution is subrogated to all the rights and interests of the creditor against the Exécution du b federal member institution in relation to the entire liability and may maintain an action in respect of those rights and interests in its own name or in the name of the creditor. Creditor’s rights and interests (3) As soon as the bridge institution receives an amount equal to the liabilities that are not insured by the Corporation that it assumed, the rights and interests in respect of the balance remaining revert to the creditor. Liquidator bound 39.203 (1) The liquidator of a federal member institution appointed under the Winding-up and Restructuring Act is bound by the terms and conditions of any transaction that involves the sale or other disposition of the federal member institution’s assets or the assumption by a bridge institution of any portion of the federal member institution’s liabilities and shall carry out those transactions or cause them to be carried out. Expenses (2) All costs, charges and expenses properly incurred by the liquidator in complying with the terms and conditions of any transaction referred to in subsection (1), including the liquidator’s remuneration, are payable by the bridge institution. 1996, c. 6, s. 41 249. Section 39.21 of the Act is replaced by the following: Right transferable 39.21 If the assets that are sold under a transaction described in section 39.2 or by a bank designated as a bridge institution include any outstanding security under section 426 or 427 of the Bank Act, the buyer of the assets may hold the security for the life of the loan to which the security relates and all the provisions of that Act relating to the security and its enforcement continue to apply to the buyer as though the buyer were a bank. 250. Section 39.24 of the Act is amended by adding the following after subsection (2): Period (2.1) The period referred to in subsection (2) is 180 days if an order directing the incorporation of a bridge institution is made in respect of a federal member institution that is the subject of an order made under paragraph 39.13(1)(b). C. 2 Budget Implem 251. The Act is amended by adding the following after section 39.37: CREATION AND OPERATION OF BRIDGE INSTITUTIONS Incorporation 39.371 (1) The Minister shall, without delay after an order is made under paragraph 39.13(1)(c), issue letters patent incorporating a federal institution. Incorporating Act (2) The letters patent are issued under whichever of the following Acts regulates the federal member institution that is the subject of the Superintendent’s report under subsection 39.1(1) or (3): (a) the Bank Act; (b) the Cooperative Credit Associations Act; or (c) the Trust and Loan Companies Act. Order to commence and carry on business (3) The Superintendent shall, without delay after the letters patent are issued, make an order approving the commencement and carrying on of business by the federal institution referred to in subsection (1). Content of Superintendent’s order — limitation (4) The Superintendent’s order shall not prohibit the federal institution, during the period that it is designated as a bridge institution, from accepting deposits in Canada and shall not make the federal institution, during that period, subject to subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act. Duration 39.3711 (1) Subject to section 39.3715, the federal institution referred to in subsection 39.371(1) is designated as a bridge institution for a period of two years. Extensions (2) The Governor in Council may, by order, on the recommendation of the Minister, grant up to three extensions — of one year each — of the period referred to in subsection (1). Bridge institution not an agent 39.3712 A bridge institution is not an agent of the Corporation or Her Majesty in right of Canada. Exécution du b Financial assistance 39.3713 The Corporation shall provide the financial assistance that a bridge institution needs in order to discharge its obligations, except for its obligations to the Corporation, as they become due. Shares held by Corporation 39.3714 The Corporation may hold shares in a bridge institution only if the Corporation is the sole shareholder. Termination of designation 39.3715 A federal institution’s designation as a bridge institution terminates if (a) the Corporation is no longer the sole shareholder; or (b) the federal institution is amalgamated with a body corporate that is not a bridge institution. Mandatory dissolution of bridge institution 39.3716 If a bridge institution’s designation has not terminated under section 39.3715, the federal institution’s board of directors shall take all necessary steps to dissolve the federal institution if (a) all or substantially all of the federal institution’s assets have been sold or otherwise disposed of; and (b) all or substantially all of its liabilities have been assumed or discharged. Winding-up of federal member institution 39.3717 (1) If the Corporation considers that substantially all of the transfers of assets and liabilities of a federal member institution to a bridge institution have been substantially completed, the Corporation shall apply for a winding-up order under the Winding-up and Restructuring Act in respect of the federal member institution. Creditor (2) For the purposes of the Winding-up and Restructuring Act, the Corporation is deemed to be a creditor of the federal member institution. Exception (3) If the Superintendent has taken control of the federal member institution or its assets and has requested the Attorney General of Canada to apply for a winding-up order or informs the Corporation that he or she intends to request that the Attorney General of Canada apply for that order, the Corporation is not required to apply for a winding-up order. C. 2 Power of the Corporation 39.3718 (1) The Corporation may hold any federal institution’s shares that the Corporation acquires in the course of a sale or other disposition of its shares of the bridge institution or that a bridge institution acquires in the course of a sale or other disposition of its assets. Maximum period (2) The Corporation may hold the shares for a period of no more than five years from the day on which they are acquired and may dispose of them. Extension (3) The Minister may, by order, extend the period referred to in subsection (2) if general market conditions so warrant. Provisions inapplicable (4) The following provisions do not apply with respect to the shares referred to in subsection (1): Budget Implem (a) sections 401.2 and 401.3 of the Bank Act; (b) sections 428 and 430 of the Insurance Companies Act; and (c) sections 396 and 399 of the Trust and Loan Companies Act. Remuneration and benefits 39.3719 An employee or officer of the Corporation shall not receive remuneration or benefits from a bridge institution for being a director or officer of that institution. Not a successor employer 39.372 If a bridge institution becomes the employer of the federal member institution’s employees, it is not a successor employer to the federal member institution and is not liable for the obligations that the federal member institution has as employer or former employer. Corporation’s directions 39.3721 (1) The Corporation may give directions to the board of directors of a bridge institution. Notification of implementation (2) After implementing a direction, the board of directors of the bridge institution shall notify the Corporation without delay that the direction has been implemented. By-laws — Corporation 39.3722 (1) The Corporation may give directions to the board of directors of a bridge institution to make, amend or repeal any by-law. Exécution du b 2009 By-laws — board of directors (2) The board of directors of a bridge institution may, with the approval of the Corporation, make, amend or repeal any by-law. Meaning of "by-law" (3) For the purposes of subsections (1) and (2), “by-law” means a by-law of the bridge institution. Regulation to exempt or adapt 39.3723 (1) The Governor in Council may, by regulation, (a) exempt federal member institutions in respect of which an order directing the incorporation of a bridge institution is made, bridge institutions or subsidiaries of any of those institutions, or any class of those institutions or class of their subsidiaries, from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them: (i) the Bank Act, (ii) the Canadian Payments Act, (iii) the Cooperative Credit Associations Act, (iv) the Financial Consumer Agency of Canada Act, (v) the Insurance Companies Act, (vi) the Office of the Superintendent of Financial Institutions Act, (vii) the Trust and Loan Companies Act, and (viii) the Winding-up and Restructuring Act; or (b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to federal member institutions in respect of which an order directing the incorporation of a bridge institution is made, bridge institutions or subsidiaries of any of those institutions, or any class of those institutions or class of their subsidiaries, only in the manner and to the extent provided for in the regulation and adapt that provision for the purpose of that application. C. 2 Scope or conditions (2) The exemption may be limited in scope or duration or subject to conditions. Budget Implem 252. The Act is amended by adding the following after section 45.1: Directors and officers of bridge institution 45.11 Directors and officers of a bridge institution are not liable for any damages, payment, compensation or indemnity that any person may suffer or claim by reason of anything done or omitted to be done, in good faith, in the exercise, execution or performance of any powers, duties and functions as directors or officers of the bridge institution. 253. The Act is amended by adding the following after section 45.2: Disclosures prohibited — bridge institution 45.3 (1) Subject to subsection 12(1) of the Privacy Act, any information with respect to the affairs of a federal institution designated as a bridge institution or of any person dealing with it is confidential, shall be treated accordingly and shall not be disclosed. Duration of prohibition (2) The prohibition applies only during the period that the federal institution is designated as a bridge institution. Exception — entity or person (3) The prohibition does not apply if the information is disclosed (a) to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision; (b) to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision; (c) to the Financial Transactions and Reports Analysis Centre of Canada established by section 41 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, for the purpose of complying with that Act; (d) to the Corporation for the purposes of fulfilling its functions under this Act or as a shareholder of the federal institution designated as a bridge institution; Exécution du b (e) to the Minister of Finance, the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance; (f) to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions; (g) to the Canada Revenue Agency solely for the purpose of the Income Tax Act or the Excise Tax Act; or (h) to any other entity or person that is prescribed by regulation, in any circumstance or condition prescribed by regulation. Other exceptions (4) The prohibition does not apply if the information is disclosed (a) in the normal conduct of the business of the federal institution designated as a bridge institution; (b) for the purposes of selling the shares or assets of the federal institution designated as a bridge institution; (c) for the purpose of any legal proceedings; (d) for the purpose of preparing the Corporation’s annual report and its corporate plan or if the information is disclosed in those documents; (e) in any circumstance that is prescribed by regulation; or (f) in any other circumstance that the board of directors of the federal institution designated as a bridge institution considers necessary. Regulations (5) The Governor in Council may make regulations (a) specifying the circumstances in which the prohibition does not apply; or (b) specifying, for the purpose of paragraph (3)(h), the entity to which or person to whom information may be disclosed and the circumstances and conditions under which the information may be disclosed to that entity or person. C. 2 Budget Implem 254. Section 3 of the schedule to the Act is amended by adding the following after subsection (6): Tax-free savings account (6.1) Despite subsection (2), for the purposes of deposit insurance with the Corporation, if moneys received by a member institution from a depositor in accordance with a tax-free savings account, within the meaning assigned by section 146.2 of the Income Tax Act, constitute a deposit or part of a deposit by or for the benefit of an individual, the aggregate of those moneys and any other moneys received from the same depositor in accordance with any other tax-free savings account that constitute a deposit or part of a deposit by or for the benefit of the same individual is deemed to be a single deposit separate from any other deposit of or for the benefit of that individual. Consequential Amendments R.S., c. A-1 Access to Information Act 255. Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Canada Deposit Insurance Corporation Act Loi sur la Société d’assurance-dépôts du Canada and a corresponding reference to “subsection 45.3(1)”. R.S., c. C-21; 2001, c. 9, s. 218 Canadian Payments Act 256. Subsection 4(1) of the Canadian Payments Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after that paragraph: (c.1) every cooperative credit association, loan company or trust company that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act; and 2009 R.S., c. F-11 Exécution du b Financial Administration Act 257. (1) Section 85 of the Financial Administration Act is amended by adding the following after subsection (2): Exemption for federal member institution (2.1) Divisions I to IV do not apply to a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, any shares of which are held by the Canada Deposit Insurance Corporation as the result of the granting of an exemption referred to in section 10.01 of that Act. (2) Section 85 of the Act is amended by adding the following after subsection (3): Exemption — bridge institution (4) Sections 88 and 89.2 to 104 and Divisions II to IV do not apply to (a) a bridge institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act; or (b) the Canada Deposit Insurance Corporation, as a parent Crown corporation in respect of a wholly-owned subsidiary that is a bridge institution. R.S., c. W-11; 1996, c. 6, s. 134 Winding-up and Restructuring Act 258. Section 3 of the Winding-up and Restructuring Act is amended by striking out “or” at the end of paragraph (i), by adding “or” at the end of paragraph (j) and by adding the following after paragraph (j): (k) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver, a transfer of part of the business of the federal member institution to a bridge institution has been substantially completed. C. 2 Budget Implem Coming into Force Order in council 259. (1) The provisions of this Division, except for sections 235 and 254 and subsection 257(1), come into force on a day or days to be fixed by order of the Governor in Council. Retroactivity (2) Section 254 is deemed to have come into force on January 27, 2009. DIVISION 3 R.S., c. E-20; 2001, c. 33, s. 2(F) EXPORT DEVELOPMENT ACT 1993, c. 26, s. 4(1) 260. (1) Subsection 10(1) of the Export Development Act is replaced by the following: Purposes 10. (1) The Corporation is established for the purposes of supporting and developing, directly or indirectly, (a) domestic trade and Canadian capacity to engage in that trade and to respond to domestic business opportunities; and (b) Canada’s export trade and Canadian capacity to engage in that trade and to respond to international business opportunities. Complementary to commercial products and services (1.01) The Corporation shall carry out its purposes, with respect to domestic trade and domestic business, in a manner that complements the products and services available from commercial financial institutions and commercial insurance providers. 2001, c. 33, s. 8 (2) Paragraph 10(3)(b) of the Act is replaced by the following: (b) $45,000,000,000. 261. Subsection 11(1) of the Act is replaced by the following: Authorized capital 11. (1) The authorized capital of the Corporation is $3,000,000,000 divided into 30 million shares of the par value of $100 each. 1993, c. 26, s. 8 262. (1) The portion of subsection 24(1) of the Act before paragraph (a) is replaced by the following: Exécution du b Limit of liability 24. (1) Subject to subsection (2), in respect of transactions entered into under section 23, the total of the following shall at no time exceed $20,000,000,000: 1993, c. 26, s. 8 (2) The portion of subsection 24(1) of the English version of the Act after paragraph (c) is repealed. Repeal 263. (1) Paragraph 10(1)(a) and subsection 10(1.01) of the Act, as enacted by subsection 260(1), are repealed two years after the day on which they come into force. Extension (2) The Governor in Council may, by order, extend the period referred to in subsection (1). Arrangement entered into before repeal (3) The repeal of paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), has no effect on any arrangement Export Development Canada entered into in order to carry out its purpose referred to in that paragraph. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the arrangement or that it considers related to the arrangement. Application suspended (4) Subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply for the period beginning on the day on which paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), comes into force and ending on the day on which that paragraph is repealed. Transactions entered into before repeal (5) Despite subsection (4), subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply to a new transaction that Export Development Canada enters into during the period that paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), is in force, even after that paragraph is repealed. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the transaction or that it considers related to the transaction. C. 2 Budget Implem DIVISION 4 1995, c. 28 BUSINESS DEVELOPMENT BANK OF CANADA ACT 264. Subsection 23(1) of the Business Development Bank of Canada Act is replaced by the following: Authorized capital 23. (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed $3,000,000,000. DIVISION 5 1998, c. 36 CANADA SMALL BUSINESS FINANCING ACT Amendments to the Act 265. (1) Subsection 4(2) of the Canada Small Business Financing Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) in the case of a loan made before April 1, 2009, the outstanding loan amount in relation to the borrower does not exceed $250,000 or any prescribed lesser amount; and (c) in the case of a loan made after March 31, 2009, the outstanding loan amount in relation to the borrower does not exceed $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner. (2) Subsection 4(3) of the Act is replaced by the following: Meaning of outstanding loan amount (3) The outstanding loan amount referred to in paragraph (2)(b) or (c) is the aggregate of the amount of the proposed loan and the principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, Exécution du b of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act. 266. Subsection 6(2) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following: (c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and (d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000. 267. Subsection 7(1) of the Act is replaced by the following: Maximum loan size 7. (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the borrower has disclosed to the lender the outstanding amount of the loan or the lender has actual knowledge of that amount and if the outstanding loan amount in relation to the borrower is more than (a) in the case of a loan made before April 1, 2009, $250,000 or any prescribed lesser amount; and (b) in the case of a loan made after March 31, 2009, $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner. Coming into Force Coming into force 268. This Division comes into force on April 1, 2009 or, if it is later, on the day on which this Act receives royal assent. C. 2 Budget Implem DIVISION 6 LEGISLATION GOVERNING FINANCIAL INSTITUTIONS 1991, c. 46 Bank Act 269. Paragraph 409(2)(d) of the French version of the Bank Act is replaced by the following: d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes. 270. The Act is amended by adding the following after section 418: Restriction on charges to borrowers 418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations (a) respecting the determination of the actual cost to a bank for the purposes of subsection (1); (b) respecting the circumstances in which a bank is exempt from the application of subsection (1); (c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property, (i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and (ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and Exécution du b (d) respecting any other matters necessary to carry out the purposes of subsection (1). Regulations — disclosure (3) The Governor in Council may make regulations respecting the disclosure by a bank of information relating to insurance or a guarantee against default on a loan made by the bank in Canada on the security of residential property, including regulations respecting (a) the information that must be disclosed, including information relating to (i) the person who benefits from the insurance or guarantee, (ii) the arrangements between (A) the bank or any affiliates that it controls, or the representatives or the employees of each, and (B) the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, accept from an insurer or the insurer’s affiliates; (b) the time, place and manner in which and the persons to whom information is to be disclosed; and (c) the circumstances under which a bank is not required to disclose information. 271. The Act is amended by adding the following after section 458.2: Regulations — activities 458.3 The Governor in Council may make regulations respecting any matters involving a bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including (a) what a bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided. C. 2 1999, c. 28, s. 35(1) 272. Paragraph 538(2)(d) of the French version of the Act is replaced by the following: Budget Implem d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes. 273. The Act is amended by adding the following after section 551: Restriction on charges to borrowers 552. (1) Subject to any regulations made under subsection (2), an authorized foreign bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the authorized foreign bank of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations (a) respecting the determination of the actual cost to an authorized foreign bank for the purposes of subsection (1); (b) respecting the circumstances in which an authorized foreign bank is exempt from the application of subsection (1); (c) respecting, in relation to insurance or a guarantee against default on a loan made by an authorized foreign bank in Canada on the security of residential property, (i) the arrangements into which the authorized foreign bank, its representatives and its employees may or may not enter, and (ii) the payments or benefits that the authorized foreign bank, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and (d) respecting any other matters necessary to carry out the purposes of subsection (1). 2009 Regulations — disclosure Exécution du b (3) The Governor in Council may make regulations respecting the disclosure by an authorized foreign bank of information relating to insurance or a guarantee against default on a loan made by the authorized foreign bank in Canada on the security of residential property, including regulations respecting (a) the information that must be disclosed, including information relating to (i) the person who benefits from the insurance or guarantee, (ii) the arrangements between the authorized foreign bank, its representatives or its employees and the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the authorized foreign bank, its representatives and its employees accept from an insurer or the insurer’s affiliates; (b) the time, place and manner in which and the persons to whom information is to be disclosed; and (c) the circumstances under which an authorized foreign bank is not required to disclose information. 274. The Act is amended by adding the following after section 575: Regulations — activities 575.1 The Governor in Council may make regulations respecting any matters involving an authorized foreign bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including (a) what an authorized foreign bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 538 and any ancillary, related or incidental activities or services; and (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided. 275. The Act is amended by adding the following after section 973.1: C. 2 Budget Implem ORDERS TO EXEMPT OR ADAPT Order 973.2 (1) On the recommendation of the Minister, the Governor in Council may, by order, (a) provide that any provision of this Act or the regulations shall not apply to a bank, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and (b) provide that any provision of this Act or the regulations applies to a bank, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application. Minister’s recommendation (2) The Minister may make a recommendation under subsection (1) only if the Minister (a) is of the opinion that the order would relate to (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a bank by, or the transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or (ii) the management of the business and affairs or the regulation and supervision of a bank during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the bank, or during the time that shares of the bank are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada. Exécution du b Terms and conditions (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a bank by, or transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency. Repeal of order under subsection (1) (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2). Terms, conditions and undertakings (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a bank to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the bank that the Minister considers appropriate, including any terms and conditions or undertakings relating to (a) the remuneration of the bank’s senior officers, as defined in section 646.1, and directors; (b) the appointment or removal of the bank’s senior officers, as defined in section 646.1, and directors; (c) the payment of dividends by the bank; and (d) the bank’s lending policies and practices. Acquisition (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a bank on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the bank may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty. Payment out of C.R.F. (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses C. 2 Budget Implem incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares. Registration of shares (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the bank’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty. Disposition by Minister (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Disposition by agent or agency (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Consideration by Minister (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a bank on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada. Mandatory disposition (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Exécution du b Not a Crown corporation (13) Even if the acquisition of a bank’s shares under subsection (6) would otherwise cause the bank to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the bank is not a Crown corporation for the purposes of that Act. Statutory Instruments Act (14) The Statutory Instruments Act does not apply to an order made under this section. Definition of “shares” (15) For the purposes of this section, “shares” includes any conversion or exchange privilege, option or right to acquire shares. Bank holding company (16) For the purposes of this section, a reference to a “bank” includes a reference to a “bank holding company”, and the references to “section 646.1” in paragraphs (5)(a) and (b) are to be read, in relation to a bank holding company, as references to “section 962”. 1991, c. 48 Cooperative Credit Associations Act 276. Subparagraph 376(1)(i)(iii) of the French version of the Cooperative Credit Associations Act is replaced by the following: (iii) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes, 277. The Act is amended by adding the following after section 382.1: Restriction on charges to borrowers 382.2 (1) Subject to any regulations made under subsection (2), a retail association that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the retail association of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations C. 2 Budget Implem (a) respecting the determination of the actual cost to a retail association for the purposes of subsection (1); (b) respecting the circumstances in which a retail association is exempt from the application of subsection (1); (c) respecting, in relation to insurance or a guarantee against default on a loan made by a retail association in Canada on the security of residential property, (i) the arrangements into which the retail association, its representatives and its employees may or may not enter, and (ii) the payments or benefits that the retail association, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and (d) respecting any other matters necessary to carry out the purposes of subsection (1). Regulations — disclosure (3) The Governor in Council may make regulations respecting the disclosure by a retail association of information relating to insurance or a guarantee against default on a loan made by the retail association in Canada on the security of residential property, including regulations respecting (a) the information that must be disclosed, including information relating to (i) the person who benefits from the insurance or guarantee, (ii) the arrangements between the retail association, its representatives or its employees and the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the retail association, its representatives and its employees accept from an insurer or the insurer’s affiliates; (b) the time, place and manner in which and the persons to whom information is to be disclosed; and Exécution du b (c) the circumstances under which a retail association is not required to disclose information. 278. The Act is amended by adding the following after section 385.251: Regulations — activities 385.252 The Governor in Council may make regulations respecting any matters involving a retail association’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including (a) what a retail association may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under paragraph 375.1(1)(a) and subparagraphs 376(1)(i)(i) to (iii) and any ancillary, related or incidental activities or services; and (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided. 279. The Act is amended by adding the following after section 459.8: ORDERS TO EXEMPT OR ADAPT Order 459.9 (1) On the recommendation of the Minister, the Governor in Council may, by order, (a) provide that any provision of this Act or the regulations shall not apply to an association, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and (b) provide that any provision of this Act or the regulations applies to an association, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application. Minister’s recommendation (2) The Minister may make a recommendation under subsection (1) only if the Minister (a) is of the opinion that the order would relate to C. 2 Budget Implem (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of an association by, or the transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or (ii) the management of the business and affairs or the regulation and supervision of an association during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the association, or during the time that shares of the association are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada. Terms and conditions (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of an association by, or transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency. Repeal of order under subsection (1) (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2). Terms, conditions and undertakings (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of an association to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the association that the Minister considers appropriate, including any terms and conditions or undertakings relating to (a) the remuneration of the association’s senior officers, as defined in section 441.01, and directors; Exécution du b (b) the appointment or removal of the association’s senior officers, as defined in section 441.01, and directors; (c) the payment of dividends by the association; and (d) the association’s lending policies and practices. Acquisition (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of an association on behalf of or in trust for Her Majesty if an order is made under subsection (1). Payment out of C.R.F. (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares. Registration of shares (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the association’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty. Disposition by Minister (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Disposition by agent or agency (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. C. 2 Consideration by Minister (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of an association on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada. Mandatory disposition (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Statutory Instruments Act (13) The Statutory Instruments Act does not apply to an order made under this section. Definition of “shares” (14) For the purposes of this section, “shares” includes membership shares and any conversion or exchange privilege, option or right to acquire shares or membership shares. 2001, c. 9 Budget Implem Financial Consumer Agency of Canada Act 280. The definition “consumer provision” in section 2 of the Financial Consumer Agency of Canada Act is replaced by the following: “consumer provision” « disposition visant les consommateurs » “consumer provision” means (a) paragraphs 157(2)(e) and (f), section 413.1, subsection 418.1(3), sections 439.1 to 459.5, subsections 540(2) and (3) and 545(4) and (5), paragraphs 545(6)(b) and (c), subsection 552(3) and sections 559 to 576.2 Exécution du b of the Bank Act together with any regulations made under or for the purposes of those provisions; (b) paragraphs 167(2)(f) and (g), subsection 382.2(3) and sections 385.05 to 385.28 of the Cooperative Credit Associations Act together with any regulations made under or for the purposes of those provisions; (c) paragraphs 165(2)(f) and (g), subsection 469.1(3), sections 479 to 489.3, subsection 542.061(3) and sections 598 to 607.2 of the Insurance Companies Act together with any regulations made under or for the purposes of those provisions; (d) paragraphs 161(2)(e) and (f), subsection 418.1(3) and sections 425.1 to 444.3 of the Trust and Loan Companies Act together with any regulations made under or for the purposes of those provisions; and (e) subsection 469.1(3) as set out in paragraph 17(1)(f) of the Green Shield Canada Act and the provisions referred to in paragraph 17(1)(f.1) of that Act as they apply to Green Shield Canada in accordance with section 17 of that Act together with any regulations made under or for the purposes of those provisions. 1992, c. 56 Green Shield Canada Act 2001, c. 9, s. 343(1) 281. Paragraph 17(1)(i) of the Green Shield Canada Act is replaced by the following: (i) Part XI, except sections 528.1 to 528.3, Parts XV and XVI, Part XVIII, except section 1016.7, and Part XIX. 1991, c. 47 Insurance Companies Act 282. Paragraph 440(2)(c) of the French version of the Insurance Companies Act is replaced by the following: c) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes. C. 2 Budget Implem 283. The Act is amended by adding the following after section 469: Restriction on charges to borrowers 469.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations (a) respecting the determination of the actual cost to a company for the purposes of subsection (1); (b) respecting the circumstances in which a company is exempt from the application of subsection (1); (c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property, (i) the arrangements into which the company, its representatives and its employees may or may not enter, and (ii) the payments or benefits that the company, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and (d) respecting any other matters necessary to carry out the purposes of subsection (1). Regulations — disclosure (3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting (a) the information that must be disclosed, including information relating to (i) the person who benefits from the insurance or guarantee, Exécution du b (ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates; (b) the time, place and manner in which and the persons to whom information is to be disclosed; and (c) the circumstances under which a company is not required to disclose information. 284. The Act is amended by adding the following after section 488: Regulations — activities 488.1 The Governor in regulations respecting any company’s dealings, or representatives’ dealings, the public, including Council may make matters involving a its employees’ or with customers or (a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 440 and any ancillary, related or incidental activities or services; and (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided. 285. The Act is amended by adding the following after section 542.06: Restriction on charges to borrowers 542.061 (1) Subject to any regulations made under subsection (2), a society that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the society of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations (a) respecting the determination of the actual cost to a society for the purposes of subsection (1); C. 2 Budget Implem (b) respecting the circumstances in which a society is exempt from the application of subsection (1); (c) respecting, in relation to insurance or a guarantee against default on a loan made by a society in Canada on the security of residential property, (i) the arrangements into which the society, its representatives and its employees may or may not enter, and (ii) the payments or benefits that the society, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and (d) respecting any other matters necessary to carry out the purposes of subsection (1). Regulations — disclosure (3) The Governor in Council may make regulations respecting the disclosure by a society of information relating to insurance or a guarantee against default on a loan made by the society in Canada on the security of residential property, including regulations respecting (a) the information that must be disclosed, including information relating to (i) the person who benefits from the insurance or guarantee, (ii) the arrangements between the society, its representatives or its employees and the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the society, its representatives and its employees accept from an insurer or the insurer’s affiliates; (b) the time, place and manner in which and the persons to whom information is to be disclosed; and (c) the circumstances under which a society is not required to disclose information. Exécution du b 286. The Act is amended by adding the following after section 606: Regulations — activities 606.1 The Governor in Council may make regulations respecting any matters involving a foreign company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including (a) what a foreign company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under this Act and any ancillary, related or incidental activities or services; and (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided. 287. The Act is amended by adding the following after section 1016.6: ORDERS TO EXEMPT OR ADAPT Order 1016.7 (1) On the recommendation of the Minister, the Governor in Council may, by order, (a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and (b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application. Minister’s recommendation (2) The Minister may make a recommendation under subsection (1) only if the Minister (a) is of the opinion that the order would relate to (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or C. 2 Budget Implem (ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada. Terms and conditions (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency. Repeal of order under subsection (1) (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2). Terms, conditions and undertakings (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to (a) the remuneration of the company’s senior officers, as defined in section 678.01, and directors; (b) the appointment or removal of the company’s senior officers, as defined in section 678.01, and directors; (c) the payment of dividends by the company; and Exécution du b (d) the company’s lending policies and practices. Acquisition (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty. Payment out of C.R.F. (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares. Registration of shares (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty. Disposition by Minister (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Disposition by agent or agency (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. C. 2 Consideration by Minister (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada. Mandatory disposition (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Not a Crown corporation (13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act. Statutory Instruments Act (14) The Statutory Instruments Act does not apply to an order made under this section. Definition of “shares” (15) For the purposes of this section, “shares” includes Budget Implem (a) any conversion or exchange privilege, option or right to acquire shares; and (b) in reference to a company, participating shares, as defined in section 83.01. Insurance holding company (16) For the purposes of this section other than paragraph (15)(b), a reference to a “company” includes a reference to an “insurance holding company”, and the references to “section 678.01” in paragraphs (5)(a) and (b) are to be read, in relation to an insurance holding company, as references to “section 1005”. 2009 1991, c. 45 Exécution du b Trust and Loan Companies Act 288. Section 37 of the Trust and Loan Companies Act is amended by adding the following after subsection (2): Non-application (2.1) Paragraph (2)(a) does not apply to a company if the body corporate continued as the company was, at any time before the coming into force of this subsection, engaged in any personal property leasing activity in which a financial leasing entity, as defined in subsection 449(1), is not permitted to engage. 289. Paragraph 409(2)(d) of the French version of the Act is replaced by the following: d) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes. 290. The Act is amended by adding the following after section 418: Restriction on charges to borrowers 418.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations (a) respecting the determination of the actual cost to a company for the purposes of subsection (1); (b) respecting the circumstances in which a company is exempt from the application of subsection (1); (c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property, (i) the arrangements into which the company, its representatives and its employees may or may not enter, and C. 2 Budget Implem (ii) the payments or benefits that the company, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and (d) respecting any other matters necessary to carry out the purposes of subsection (1). Regulations — disclosure (3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting (a) the information that must be disclosed, including information relating to (i) the person who benefits from the insurance or guarantee, (ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates; (b) the time, place and manner in which and the persons to whom information is to be disclosed; and (c) the circumstances under which a company is not required to disclose information. 291. The Act is amended by adding the following after section 443.1: Regulations — activities 443.2 The Governor in regulations respecting any company’s dealings, or representatives’ dealings, the public, including Council may make matters involving a its employees’ or with customers or (a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and Exécution du b (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided. 292. The Act is amended by adding the following after section 527.8: ORDERS TO EXEMPT OR ADAPT Order 527.9 (1) On the recommendation of the Minister, the Governor in Council may, by order, (a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and (b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application. Minister’s recommendation (2) The Minister may make a recommendation under subsection (1) only if the Minister (a) is of the opinion that the order would relate to (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or (ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the C. 2 Budget Implem Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada. Terms and conditions (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency. Repeal of order under subsection (1) (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2). Terms, conditions and undertakings (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to (a) the remuneration of the company’s senior officers, as defined in section 509.01, and directors; (b) the appointment or removal of the company’s senior officers, as defined in section 509.01, and directors; (c) the payment of dividends by the company; and (d) the company’s lending policies and practices. Acquisition (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty. Exécution du b Payment out of C.R.F. (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares. Registration of shares (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty. Disposition by Minister (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Disposition by agent or agency (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Consideration by Minister (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada. C. 2 Mandatory disposition (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition. Not a Crown corporation (13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act. Statutory Instruments Act (14) The Statutory Instruments Act does not apply to an order made under this section. Definition of “shares” (15) For the purposes of this section, “shares” includes any conversion or exchange privilege, option or right to acquire shares. Budget Implem Coordinating Amendment 2005, c. 54 293. On the first day on which both subsection 213(3) of An Act to amend certain Acts in relation to financial institutions, chapter 54 of the Statutes of Canada, 2005, and section 281 of this Act are in force, paragraph 17(1)(i) of the Green Shield Canada Act is replaced by the following: (i) Part XI, except sections 528.1 to 528.3, Parts XV and XVI, Part XVIII, except section 1016.7, and Parts XIX and XX. Coming into Force Order in council 294. Sections 270, 273, 277, 280, 283, 285, and 290 come into force on a day or days to be fixed by order of the Governor in Council. Exécution du b 2009 DIVISION 7 SECURITIES Securities Regulation Maximum payment of $150,000,000 295. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding $150,000,000, to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime and a Canadian regulatory authority. Payments out of C.R.F. (2) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, at the times and in the manner, and on any terms and conditions, that the Minister of Finance considers appropriate. Agreements 296. The Minister of Finance may enter into any agreement respecting securities regulation with any province or territory. Canadian Securities Regulation Regime Transition Office Act Enactment of Act 297. The Canadian Securities Regulation Regime Transition Office Act is enacted as follows: An Act to establish the Canadian Securities Regulation Regime Transition Office SHORT TITLE Short title 1. This Act may be cited as the Canadian Securities Regulation Regime Transition Office Act. INTERPRETATION Definitions “Advisory Committee” « comité consultatif » 2. The following definitions apply in this Act. “Advisory Committee” means the advisory committee of participating provinces and territories established under section 5. 282 “Minister” « ministre » “participating province or territory” « province ou territoire participant » “Transition Office” « Bureau de transition » C. 2 Budget Implem “Minister” means the Minister of Finance. “participating province or territory” means any province or territory that informs the Minister of its willingness to participate in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority. “Transition Office” means the Canadian Securities Regulation Regime Transition Office established under section 3. ESTABLISHMENT Transition Office 3. (1) The Canadian Securities Regulation Regime Transition Office is established. Status (2) The Transition Office is not an agent of Her Majesty nor is it an entity governed by the Financial Administration Act, and its president, officers, employees, agents and mandataries, advisers and experts and the members of the Advisory Committee are not part of the federal public administration. President 4. (1) The Governor in Council shall, on the recommendation of the Minister, appoint a president, or two co-presidents acting jointly, of the Transition Office, to hold office during pleasure. Powers, duties and functions (2) The president is the chief executive officer of the Transition Office and has control and supervision over the work, officers and employees of that office. Acting president (3) In the event of the absence or incapacity of the president or a vacancy in that office, the Minister may designate a person to act as president, which person may not act for a period exceeding 90 days without the Governor in Council’s approval. Acting copresident (4) In the event of the absence or incapacity of a co-president or a vacancy in that office, the Minister may designate a person to act as copresident, which person may not act for a period exceeding 90 days without the Governor in Council’s approval. The other co-president may act alone until another co-president is designated or appointed. Exécution du b Interpretation (5) In this Act, other than in subsections (1) and (3), “president” includes two co-presidents who hold office, or a co-president who acts alone under subsection (4), as the case may be. Advisory Committee 5. (1) An advisory committee of participating provinces and territories is established within the Transition Office and consists of not more than 13 members. Members (2) The Governor in Council shall appoint, on the recommendation of the Minister, a member for each participating province and territory, from persons nominated by that province or territory, to hold office during pleasure. Role (3) The Advisory Committee’s role is to provide the president with advice on matters related to the Transition Office’s purpose. Staff 6. The Transition Office may employ any officers and employees and engage the services of any agents and mandataries, advisers and experts that it considers necessary to carry out its purpose. Conditions of employment — president and members 7. (1) The Governor in Council, on the recommendation of the Minister, shall determine the remuneration and allowances to be paid to the president and members of the Advisory Committee and any other conditions of their employment. Conditions of employment — staff (2) The Transition Office shall determine the remuneration and allowances to be paid to its officers, employees, agents and mandataries, advisers and experts and any other conditions of their employment or engagement, as the case may be. Remuneration (3) The Transition Office shall pay the remuneration and allowances determined under subsections (1) and (2). Conflict of interest — president and members 8. (1) The president and the members of the Advisory Committee shall not accept or hold any office or employment, or carry on any activity, that, in the Minister’s opinion, is inconsistent with the performance of their duties. C. 2 Conflict of interest — officers and employees (2) The officers and employees of the Transition Office shall not accept or hold any office or employment, or carry on any activity, that, in the president’s opinion, is inconsistent with the performance of their duties. Immunity 9. No criminal or civil proceedings lie against the president, a member of the Advisory Committee or an officer or employee of the Transition Office for anything done or omitted to be done by that person in good faith under this Act. Budget Implem PURPOSE AND POWERS Purpose 10. The purpose of the Transition Office is to assist in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority. Duties 11. (1) In carrying out its purpose, the Transition Office shall (a) develop a transition plan with respect to administrative and organizational matters, including those relating to human, financial, material and informational resources; (b) consult with stakeholders, including Canadian capital market participants; and (c) undertake any other activity that the Minister may direct. Copy (2) The Transition Office shall provide the Minister and each participating province and territory with a copy of the transition plan no later than one year after the day on which section 3 comes into force. Capacity and powers 12. In order to carry out its purpose, the Transition Office has the capacity and the rights, powers and privileges of a natural person and, in particular, it may (a) initiate, finance and administer programs and activities; (b) expend any money it receives for its activities, subject to any terms and conditions on which it is provided; (c) enter into contracts; and Exécution du b (d) with the Minister’s approval, enter into any agreement with the government of a province or territory that the president considers necessary or advisable. Information 13. The Transition Office shall inform the Minister regularly of its activities and its progress in carrying out its purpose. FINANCIAL PROVISIONS Maximum payment of $33,000,000 14. (1) The Minister may make direct payments, in an aggregate amount not exceeding $33,000,000, to the Transition Office for its use. Payments out of C.R.F. (2) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner, and on any terms and conditions, that the Minister considers appropriate. Audit 15. The accounts and financial transactions of the Transition Office shall be audited annually by the Auditor General of Canada, and a report of the audit shall be made to the Transition Office and the Minister. ANNUAL REPORT Submission to Minister 16. (1) The president shall, within four months after the end of each fiscal year, submit a report of all of the Transition Office’s activities for that fiscal year, including its financial statements and the report referred to in section 15, to the Minister. Tabling report (2) The Minister shall cause a copy of the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report. Report available to public (3) After the report is tabled in Parliament, the Transition Office shall make it available to the public. DISSOLUTION Date of dissolution 17. (1) The Transition Office is dissolved three years after the day on which section 3 comes into force. Change in date of dissolution (2) Despite subsection (1), the Governor in Council may, by order and on the recommendation of the Minister, set a different date of C. 2 Budget Implem dissolution, and that date is to be no later than four years after the day on which section 3 comes into force. The order shall be published in the Canada Gazette at least three months before the date of dissolution referred to in the order or if it is earlier, the date determined under subsection (1). Statutory Instruments Act (3) The Statutory Instruments Act does not apply to an order made under subsection (2). Assets transferred (4) On the Transition Office’s dissolution, any of its property that remains after the payment of its debts and liabilities, or after the making of adequate provision for the payment of its debts and liabilities, shall be transferred to Her Majesty in right of Canada or to any body that the Governor in Council may specify. Transitional Provision Initial annual report 298. If section 297 comes into force less than three months before the end of a fiscal year, the president shall submit the first report required under section 16 of the Canadian Securities Regulation Regime Transition Office Act no later than four months after the end of the following fiscal year, and that report shall cover the period starting on the day on which section 297 comes into force and ending on the last day of that following fiscal year. Coming into Force Order in council 299. Section 297 comes into force on a day to be fixed by order of the Governor in Council. PART 6 PAYMENTS INFRASTRUCTURE STIMULUS FUND Maximum payment of $2,000,000,000 300. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two billion dollars to provide funding for infrastructure projects primarily related to infrastructure rehabilitation. Exécution du b PROVINCIAL-TERRITORIAL INFRASTRUCTURE BASE FUNDING PROGRAM Maximum payment of $495,000,000 301. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding four hundred and ninety-five million dollars to provide payments to provinces and territories under the Provincial-Territorial Infrastructure Base Funding Program for infrastructure projects. COMMUNITIES COMPONENT OF THE BUILDING CANADA FUND Maximum payment of $250,000,000 302. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two hundred and fifty million dollars to provide funding for infrastructure projects in communities that have a population of less than 100,000. GREEN INFRASTRUCTURE FUND Maximum payment of $200,000,000 303. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two hundred million dollars to support infrastructure projects that promote a clean environment. COMMUNITY ADJUSTMENT FUND Maximum payment of $51,000,000 304. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of State (Atlantic Canada Opportunities Agency), in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding fiftyone million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in Atlantic Canada. C. 2 Maximum payment of $106,000,000 305. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of State (Economic Development Agency of Canada for the Regions of Quebec), in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and six million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in the regions of Quebec. Maximum payment of $175,000,000 306. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and seventy-five million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in Ontario. Maximum payment of $17,000,000 307. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Indian Affairs and Northern Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding seventeen million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in the territories. Maximum payment of $154,000,000 308. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of State (Western Economic Diversification), in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and fifty-four million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in Western Canada. Budget Implem Exécution du b IMPROVING INFRASTRUCTURE AT UNIVERSITIES AND COLLEGES Maximum payment of $1,000,000,000 309. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one billion dollars to accelerate repairs and maintenance at post-secondary institutions. FIRST NATIONS HOUSING Maximum payment of $75,000,000 310. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Indian Affairs and Northern Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding seventy-five million dollars to support on-reserve housing. Maximum payment of $125,000,000 311. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and twenty-five million dollars to the Canada Mortgage and Housing Corporation to support on-reserve housing. RENOVATION AND RETROFIT OF SOCIAL HOUSING Maximum payment of $500,000,000 312. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding five hundred million dollars to the Canada Mortgage and Housing Corporation to provide funding to the provinces and territories to address the backlog in demand for renovation and energy retrofits of social housing. C. 2 Budget Implem HOUSING FOR LOW-INCOME SENIORS Maximum payment of $200,000,000 313. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two hundred million dollars to the Canada Mortgage and Housing Corporation to provide funding to the provinces and territories through the Affordable Housing Initiative for the construction of housing units for low-income seniors. HOUSING FOR PERSONS WITH DISABILITIES Maximum payment of $25,000,000 314. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding twenty-five million dollars to the Canada Mortgage and Housing Corporation to provide funding to the provinces and territories through the Affordable Housing Initiative for the construction of housing units for persons with disabilities. NORTHERN HOUSING Maximum payment of $100,000,000 315. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred million dollars to the Canada Mortgage and Housing Corporation to provide funding to the territories for the renovation and construction of social housing units. CANADA HEALTH INFOWAY INC. Maximum payment of $500,000,000 316. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding five hundred million dollars to Canada Health Infoway Inc. for the development of electronic health records and related systems. Exécution du b PART 7 R.S., c. N-22 NAVIGABLE WATERS PROTECTION ACT AMENDMENTS TO THE ACT 317. Section 2 of the Navigable Waters Protection Act is amended by adding the following in alphabetical order: “ferry cable” « câble de traille » “vessel” « bateau » “work” « ouvrage » “ferry cable” includes any ferry cable, rod, chain or other device put across, over, in or under any navigable water for working a ferry; “vessel” includes every description of ship, boat or craft of any kind, without regard to method or lack of propulsion and to whether it is used as a sea-going vessel or on inland waters only, including everything forming part of its machinery, tackle, equipment, cargo, stores or ballast; “work” includes (a) any man-made structure, device or thing, whether temporary or permanent, that may interfere with navigation; and (b) any dumping of fill in any navigable water, or any excavation of materials from the bed of any navigable water, that may interfere with navigation. 318. The Act is amended by adding the following after section 2: HER MAJESTY Binding on Her Majesty 2.1 This Act is binding on Her Majesty in right of Canada or a province. 319. The heading of Part I of the Act is replaced by the following: APPROVAL OF WORKS C. 2 Budget Implem 320. (1) The definition “work” in section 3 of the Act is repealed. (2) Section 3 of the Act is renumbered as subsection 3(1) and is amended by adding the following: Related works (2) If the Minister considers that two or more works are related, the Minister may, for the purposes of this Part, deem them to be a single work. 321. Sections 4 and 5 of the Act are replaced by the following: Application — works under Acts or orders 4. (1) Except for this section and the provisions of this Part that relate to rebuilding, repairing or altering any lawful work, nothing in this Part applies to any work constructed under the authority of (a) an Act of Parliament or an order of the Governor in Council, if the work was constructed before the coming into force of this subsection; (b) an Act of the legislature of a province or an order of the lieutenant governor in council of a province, if the work was constructed before the coming into force of this subsection; (c) an Act of the legislature of a colony of Great Britain of which at least some portion now forms part of Canada; or (d) Her Majesty in respect of such a colony. Application — works owned or transferred (2) Except for this section and the provisions of this Part that relate to rebuilding, repairing or altering any lawful work, nothing in this Part applies to (a) works that are owned by Her Majesty in right of Canada or a province on the day on which this subsection comes into force; or (b) works whose ownership was transferred before the day on which this subsection comes into force to another person by Her Majesty in right of Canada or a province or in respect of a colony of Great Britain of which at least some portion now forms part of Canada. Exécution du b 2009 Ministerial order (3) The Minister may order an owner of a work referred to in subsection (1) or (2) to alter or remove the work or to comply with any terms and conditions that the Minister, as he or she considers appropriate, may impose if the Minister is satisfied that (a) the work has become a danger to or an interference with navigation by reason of the passage of time and changing conditions in navigation of the navigable waters concerned; or (b) the alteration or removal or the terms and conditions are in the public interest. Minister’s powers (4) If the owner of the work fails to comply with an order given under subsection (3), the Minister may remove and destroy the work and sell, give away or otherwise dispose of the materials contained in the work. Costs of removal, destruction or disposal (5) If the Minister removes, destroys or disposes of a work under subsection (4), the costs of and incidental to the removal, destruction or disposal, after deducting any sum that may be realized by sale or otherwise, are recoverable with costs in the name of Her Majesty in right of Canada from the owner. GENERAL Approval of works 5. (1) No work shall be built or placed in, on, over, under, through or across any navigable water without the Minister’s prior approval of the work, its site and the plans for it. Terms and conditions — substantial interference (2) If the Minister considers that the work would substantially interfere with navigation, the Minister may impose any terms and conditions on the approval that the Minister considers appropriate, including requiring that construction of the work be started within six months and finished within three years of the day on which approval is granted or within any other period that the Minister may fix. Terms and conditions — other interference (3) If the Minister considers that the work would interfere, other than substantially, with navigation, the Minister may impose any terms and conditions on the approval that the Minister C. 2 Budget Implem considers appropriate, including requiring that construction of the work be started and finished within the period fixed by the Minister. Extension of period (4) The Minister may, at any time, extend the period by changing the day on which construction of the work shall be started or finished. Compliance with plans, regulations and terms and conditions (5) The work shall be built, placed, maintained, operated, used and removed in accordance with the plans and the regulations and with the terms and conditions in the approval. Classes of works and navigable waters 5.1 (1) Despite section 5, a work may be built or placed in, on, over, under, through or across any navigable water without meeting the requirements of that section if the work falls within a class of works, or the navigable water falls within a class of navigable waters, established by regulation or under section 13. Compliance (2) The work shall be built, placed, maintained, operated, used and removed in accordance with the regulations or with the terms and conditions imposed under section 13. Non-application (3) Sections 6 to 11.1 do not apply to works referred to in subsection (1) unless there is a contravention of subsection (2). 322. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following: Ministerial orders respecting unauthorized works 6. (1) If any work to which this Part applies is built or placed without having been approved under this Act, is built or placed on a site not approved under this Act, is not built or placed in accordance with the approved plans and terms and conditions and with the regulations or, having been built or placed as approved, is not maintained, operated, used or removed in accordance with those plans, those terms and conditions and the regulations, the Minister may (2) Subsection 6(2) of the Act is repealed. (3) Subsection 6(4) of the Act is replaced by the following: 2009 Approval after construction started Exécution du b (4) The Minister may, subject to deposit and notice as in the case of a proposed work, approve a work, its site and the plans for it and impose any terms and conditions on the approval that the Minister considers appropriate after the start of its construction. The approval has the same effect as if it was given before the start of construction. 323. Section 7 of the Act is replaced by the following: Fee payable by person applying for approval 7. (1) A person who applies for approval of a work referred to in subsection 5(2) or 6(4) shall pay the fee prescribed by the regulations. Approval valid for period prescribed by regulations (2) The approval of a work under section 5 is valid for the period prescribed by the regulations. 1993, c. 41, s. 8 324. Section 9 of the Act is replaced by the following: Notice and deposit of plans 9. (1) A local authority, company or individual proposing to construct any work in navigable waters may apply to the Minister for approval by depositing the plans for its design and construction and a description of the proposed site with the Minister. Plans for management and operation (2) If the Minister considers that the work would substantially interfere with navigation, the Minister may also require that the local authority, company or individual deposit the plans for the management and operation related to the work. Deposit and notice — substantial interference (3) If the Minister considers that the work would substantially interfere with navigation, the Minister shall direct the local authority, company or individual to (a) deposit all plans in the local land registry or land titles office or any other place specified by the Minister; and (b) provide notice of the proposed construction and the deposit of the plans by advertising in the Canada Gazette and in one or more newspapers that are published in or near the place where the work is to be constructed. C. 2 Budget Implem The plans shall be deposited and notice shall be provided in the form and manner specified by the Minister. Deposit and notice — other interference (4) If the Minister considers that the work would interfere, other than substantially, with navigation, the Minister may direct the local authority, company or individual to deposit the plans in the local land registry or land titles office or any other place specified by the Minister, and to provide notice of the proposed construction and the deposit of the plans as the Minister considers appropriate. Comments (5) Interested persons may provide written comments to the Minister within 30 days after the publication of the last notice referred to in subsection (3) or (4). 325. Subsection 11(1) of the Act is replaced by the following: Approval lapses 11. (1) When an approval of a work lapses, the Minister may grant a new approval of that work for any period that the Minister considers appropriate, having regard to changing conditions in navigation and the condition of the work. 326. The Act is amended by adding the following after section 11: Amendment of approval 11.1 (1) Subject to subsection (3), the Minister may amend an approval of a work if he or she is satisfied that (a) the work has become a danger to or an interference with navigation by reason of the passage of time and changing conditions in navigation of the navigable waters concerned; or (b) the amendment is in the public interest. Suspension or cancellation (2) Subject to subsection (3), the Minister may suspend or cancel an approval if he or she is satisfied that (a) the work is not being or has not been built, placed, maintained, operated, used or removed in accordance with the plans, the regulations or with any terms and conditions in the approval; Exécution du b (b) the approval was obtained by a fraudulent or improper means or a misrepresentation of a material fact; (c) the owner of the work has not paid a fine imposed under this Act; (d) the owner of the work has contravened a provision of this Act or the regulations; or (e) the suspension or cancellation is in the public interest, including that it is warranted by the record of compliance of the owner or of a principal of the owner under this Act. Notice (3) Before amending, suspending or cancelling an approval of a work, the Minister shall give the owner 30 days’ notice setting out the grounds on which the Minister relies for the amendment, suspension or cancellation. Not a statutory instrument 11.2 For greater certainty, an order given under subsection 4(3) or paragraph 6(1)(a) or (c) is not a statutory instrument within the meaning of the Statutory Instruments Act. 327. Subsections 12(1) and (2) of the Act are replaced by the following: Orders and regulations by Governor in Council 12. (1) The Governor in Council may make any orders or regulations that the Governor in Council deems expedient for navigation purposes respecting any work to which this Part applies or that is approved or the plans and site of which are approved under any Act of Parliament or order of the Governor in Council, and may make regulations (a) prescribing the fees payable to the Minister on an application for an approval under this Part; (b) respecting the grant, amendment, renewal, suspension and cancellation of approvals under this Part; (c) prescribing the period for which an approval under this Part is valid; (d) respecting notification requirements for a change in ownership in a work; (e) establishing classes of works or navigable waters for the purposes of subsection 5.1(1); C. 2 Budget Implem (f) respecting the placement, construction, maintenance, operation, safety, use and removal of works; and (g) for carrying out the purposes and provisions of this Part. Related works (2) If the Governor in Council considers that two or more works are related, the Governor in Council may, for the purposes of subsection (1), deem them to be a single work. Incorporation by reference (2.1) The regulations may incorporate any material by reference, regardless of its source, either as it exists on a particular date or as amended from time to time. Incorporated material not a regulation (2.2) Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference. 328. Section 13 of the Act is replaced by the following: MINISTERIAL ORDERS Orders 13. (1) For the purposes of section 5.1, the Minister may, by order, (a) establish classes of works or navigable waters; and (b) impose any terms and conditions with respect to the placement, construction, maintenance, operation, safety, use and removal of those classes of works or works that are built or placed in, on, over, under, through or across those classes of navigable waters. Exemption from Statutory Instruments Act (2) An order under subsection (1) (a) is not a statutory instrument within the meaning of the Statutory Instruments Act; and (b) shall be published in the Canada Gazette within 23 days after the day on which it is made. Exécution du b 2009 Incorporation by reference (3) An order may incorporate any material by reference, regardless of its source, either as it exists on a particular date or as amended from time to time. 329. The heading “DÉFINITIONS” before section 14 of the French version of the Act is replaced by the following: DÉFINITION ET INTERPRÉTATION 330. Section 14 of the Act is replaced by the following: Definition of “owner” 14. (1) In this Part, “owner” means the registered or other owner at the time any wreck, obstruction or obstacle referred to in this Part was occasioned, and includes a subsequent purchaser. Interpretation (2) A reference to a “thing” in sections 15 to 18 and 20, with respect to a thing that is or is likely to become an obstruction or obstacle to navigation, does not include a reference to a thing of natural origin unless the obstruction or obstacle, or likely obstruction or obstacle, is caused by a person. APPLICATION Non-application 14.1 This Part, other than sections 21 to 25, does not apply to navigable waters falling within a class of navigable waters established by regulation or under section 13. 331. The portion of subsection 15(1) of the Act before paragraph (a) is replaced by the following: Notice and indication of obstruction or obstacle 15. (1) If the navigation of any navigable water over which Parliament has jurisdiction is obstructed, impeded or rendered more difficult or dangerous by the wrecking, sinking, partial sinking, lying ashore or grounding of any vessel or part of one or by any other thing, the owner, master or person in charge of the vessel or thing by which any obstruction or obstacle is caused shall 332. Section 16 of the Act is replaced by the following: C. 2 Minister’s powers 16. The Minister may cause any wreck, vessel or part of a vessel resulting from the wrecking, sinking, partial sinking, lying ashore or grounding of a vessel, or may cause any other thing, to be secured, removed or destroyed in the manner that the Minister considers appropriate if, in the Minister’s opinion, Budget Implem (a) the navigation of any navigable water over which Parliament has jurisdiction is obstructed, impeded or rendered more difficult or dangerous for more than 24 hours by the wreck, vessel, part of a vessel or thing; (b) the wreck, vessel, part of a vessel or thing has been in a position for more than 24 hours that is likely to obstruct, impede or render more difficult or dangerous the navigation of any such navigable water; or (c) the wreck, vessel, part of a vessel or thing is cast ashore, stranded or left on any property belonging to Her Majesty in right of Canada and has been an obstruction or obstacle, for more than 24 hours, to the use of that property as may be required for the public purposes of Canada. 333. Subsection 17(1) of the Act is replaced by the following: Conveyance from site and sale 17. (1) The Minister may cause the vessel referred to in section 16 or its cargo, or any other thing causing or forming part of the obstruction or obstacle to be conveyed to the place that the Minister considers appropriate and to be sold by auction or otherwise as the Minister considers appropriate. The Minister may apply the proceeds of the sale to make good the expenses incurred by the Minister in placing and maintaining any signal or light to indicate the position of the obstruction or obstacle, or in securing, removing, destroying or selling the vessel, cargo or thing. 334. Subsection 18(1) of the Act is replaced by the following: Costs constituting debt 18. (1) The amount of the costs incurred by the Minister while acting under subsection 15(2) or section 16 — whether or not a sale has been held under section 17 — constitutes a debt to Exécution du b which subsection (2) applies if the costs have been defrayed out of the public moneys of Canada. 335. Sections 19 and 20 of the Act are replaced by the following: Order to remove vessel left anchored 19. (1) If a vessel has been left anchored, moored or adrift in any navigable water so that, in the Minister’s opinion, it obstructs or is likely to obstruct navigation, the Minister may order the owner, managing owner, master or person in charge of the vessel to secure it or remove it to a place that the Minister considers appropriate. Failure to comply with order (2) If a person to whom an order is given under subsection (1) fails to comply without delay with the order, the Minister may order the vessel to be secured or removed to the place that the Minister considers appropriate, and the costs of securing or removing the vessel are recoverable against the person as a debt due to Her Majesty. Not a statutory instrument (3) For greater certainty, an order given under this section is not a statutory instrument within the meaning of the Statutory Instruments Act. Abandoned vessel 20. If any vessel or other thing is wrecked, sunk, partially sunk, lying ashore or grounded in any navigable water in Canada, the vessel, part of the vessel, its cargo or thing is deemed to be abandoned on the day that is two years from the day of the casualty. On or after that later day the Minister may, under the restrictions that the Minister considers appropriate, authorize any person to take possession of and remove the vessel, part of the vessel or thing for that person’s own benefit, on giving to the owner, if known, one month’s notice, or if the owner is unknown, public notice for the same period in a local newspaper published in or near to the location of the vessel or thing. R.S., c. 1 (2nd Supp.), s. 213(1) (Sch. I, subitems 9(2) and (3)) 336. Sections 26 to 28 of the Act are repealed. 337. Section 29 of the Act and the heading “INTERPRETATION” before it are repealed. C. 2 Budget Implem 338. Section 30 of the Act is renumbered as subsection 30(1) and is amended by adding the following: Incorporation by reference (2) The regulations may incorporate any material by reference, regardless of its source, either as it exists on a particular date or as amended from time to time. Incorporated material not a regulation (3) Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference. 339. Section 31 of the Act is repealed. 340. The Act is amended by adding the following after section 32: PART IV ADMINISTRATION AND ENFORCEMENT DESIGNATION Designation 33. For the purposes of the administration and enforcement of this Act and any regulation or order, the Minister may designate persons or classes of persons to exercise powers in relation to any matter referred to in the designation. POWERS Authority to enter 34. (1) A person who is designated to verify compliance or prevent non-compliance with this Act and any regulation or order may, for that purpose, at any reasonable time, enter a work, vessel or swing or draw bridge, or enter any other place in which they have reasonable grounds to believe the following items are located: (a) a work or anything related to a work; (b) a wreck, vessel, part of a vessel or other thing that obstructs or impedes navigation or renders it more difficult or dangerous, or that is likely to do so; (c) a ferry cable or swing or draw bridge, or anything related to one. Exécution du b Certification (2) On entering a place, the designated person shall, on request, produce to the person in charge of the place a certification in the form established by the Minister attesting to the designation. Powers (3) The designated person may, for the purposes referred to in subsection (1), (a) examine anything that is found in the place; (b) remove any document or other thing from the place for examination or, in the case of a document, copying; (c) direct any person to put into operation or cease operating any work, vessel or other conveyance, machinery or equipment in the place; (d) prohibit or limit access to the place for as long as specified; (e) take photographs and make video recordings and sketches; (f) use or cause to be used any computer system or data processing system at the place to examine any data contained in, or available to, the system; (g) reproduce any record, or cause it to be reproduced from the data, in the form of a printout or other intelligible output and remove the printout or other output for examination or copying; and (h) use or cause to be used any copying equipment at the place to make copies of any books, records, electronic data or other documents. Entry — private property (4) The designated person, in carrying out their functions under this section, and a person accompanying them may enter on and pass through or over private property without being liable for doing so. Duty to assist 35. The owner or person who is in charge of a place that is entered under subsection 34(1) and every person who is in the place shall C. 2 Budget Implem (a) give a designated person who is carrying out their functions under section 34 all reasonable assistance; and (b) provide them with any information that they may reasonably require. Warrant for dwelling-house 36. (1) If any place referred to in subsection 34(1) is a dwelling-house, the designated person may not enter it without the consent of the occupant except under the authority of a warrant issued under subsection (2). Authority to issue warrant (2) On ex parte application, a justice of the peace may issue a warrant authorizing the person who is named in it to enter a dwellinghouse, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that (a) the dwelling-house is a place referred to in subsection 34(1); (b) entry to the dwelling-house is necessary for the purpose of verifying compliance or preventing non-compliance with the Act and any regulation or order; and (c) entry to the dwelling-house was refused by the occupant or there are reasonable grounds to believe that entry will be refused or consent to entry cannot be obtained from the occupant. PROHIBITIONS False statements or information 37. (1) No person shall knowingly, orally or in writing, make a false or misleading statement or provide false or misleading information, in connection with any matter under this Act, to a designated person who is carrying out their functions under section 34. Obstruction (2) No person shall knowingly obstruct or hinder a designated person who is carrying out their functions under section 34. INJUNCTION Injunction 38. (1) If, on the application of the Minister, it appears to a court of competent jurisdiction that a person has done, is about to do or is likely to do any act constituting or directed toward the Exécution du b commission of an offence under this Act, the court may issue an injunction ordering a person named in the application (a) to refrain from doing an act that, in the opinion of the court, may constitute or be directed toward the commission of the offence; or (b) to do an act that, in the opinion of the court, may prevent the commission of the offence. Notice (2) No injunction may be issued under subsection (1) unless 48 hours’ notice is served on the party or parties named in the application or the urgency of the situation is such that service would not be in the public interest. IMMUNITY Not personally liable 39. (1) Servants of the Crown, as those terms are defined in section 2 of the Crown Liability and Proceedings Act, are not personally liable for anything they do or omit to do in good faith under this Act. Crown not relieved (2) Subsection (1) does not, by reason of section 10 of the Crown Liability and Proceedings Act, relieve the Crown of liability for a tort or extracontractual civil liability to which the Crown would otherwise be subject. OFFENCES AND PUNISHMENT Offence 40. (1) Every person is guilty of an offence and is liable on summary conviction to imprisonment for a term of not more than six months or to a fine of not more than $50,000, or to both, if the person contravenes (a) an order given under subsection 4(3), paragraph 6(1)(a) or (c) or subsection 19(1); (b) an interim order made under section 13.1 or 32; (c) an order or regulation made under section 12 or 30; or (d) subsection 15(1) or section 21, 22, 35 or subsection 37(1) or (2). C. 2 Vessel liable for fine (2) If any materials referred to in section 22 are thrown from or deposited by a vessel and a conviction is obtained for that activity, the vessel is liable for any fine that is imposed and may be detained by any port warden or the chief officer of customs at any port until the fine is paid. Continuing offence (3) If the offence under subsection (1) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued. Budget Implem PART V REVIEW Review of Act 41. (1) A review of the provisions and the operation of this Act must be completed by the Minister before the end of the fifth year after the day on which this section comes into force. Tabling of report (2) The Minister shall cause a report of the review to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report has been completed. 2007, c. 1 CONSEQUENTIAL AMENDMENT TO THE INTERNATIONAL BRIDGES AND TUNNELS ACT 341. Subsections 4(3) and (4) of the International Bridges and Tunnels Act are replaced by the following: Application of other Acts (3) Nothing in this Act or any regulations made under it affects the application of any other Act of Parliament, including any requirement for a person to obtain a licence, permit or other authorization in respect of an international bridge or tunnel. Exécution du b 2009 PART 8 MISCELLANEOUS PROVISIONS DIVISION 1 WAGE EARNER PROTECTION PROGRAM 2005, c. 47, s. 1 Wage Earner Protection Program Act 2007, c. 36, s. 83 342. Subsection 2(1) of the Wage Earner Protection Program Act is replaced by the following: Definitions 2. (1) The following definitions apply in this Act. “eligible wages” « salaire admissible » “eligible wages” means (a) wages other than severance pay and termination pay that were earned during the six-month period ending on the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer; and (b) severance pay and termination pay that relate to employment that ended during the period referred to in paragraph (a). “wages” « salaire » 2007, c. 36, s. 84 “wages” includes salaries, commissions, compensation for services rendered, vacation pay, severance pay, termination pay and any other amounts prescribed by regulation. 343. (1) Paragraph 5(a) of the Act is replaced by the following: (a) the individual’s employment ended for a reason prescribed by regulation; (2) Section 5 is amended by adding “and” after paragraph (b) and by replacing paragraphs (c) and (d) with the following: (c) the individual is owed eligible wages by the former employer. 2007, c. 36, s. 85 344. The portion of section 6 of the Act before paragraph (a) is replaced by the following: C. 2 Exceptions 6. An individual is not eligible to receive a payment in respect of any wages earned during, or that otherwise relate to, a period in which the individual 2007, c. 36, s. 86 345. Section 7 of the Act is replaced by the following: Amount of payment 7. (1) The amount that may be paid under this Act to an individual is the amount of eligible wages owing to the individual up to a maximum of the greater of the following amounts, less any amount prescribed by regulation: Budget Implem (a) $3,000; and (b) an amount equal to four times the maximum weekly insurable earnings under the Employment Insurance Act. Bankruptcy and receivership (2) If the former employer is both bankrupt and subject to a receivership, the amount that may be paid is the greater of the amount determined in respect of the bankruptcy and the amount determined in respect of the receivership. 2007, c. 36, s. 89 346. (1) Paragraphs 21(1)(a) and (b) of the Act are replaced by the following: (a) identify each individual who is owed eligible wages; (b) determine the amount of eligible wages owing to each individual; 2007, c. 36, s. 89 (2) Paragraph 21(1)(d) of the Act is replaced by the following: (d) provide the Minister and each individual other than one who is in a class prescribed by regulation with the information prescribed by regulation in relation to the individual and with the amount of eligible wages owing to the individual; and 2007, c. 36, s. 94 347. (1) Paragraph 41(b) of the Act is replaced by the following: (b) prescribing reasons for the purposes of paragraph 5(a); 2009 2007, c. 36, s. 94 Exécution du b (2) Paragraphs 41(d) and (e) of the Act are replaced by the following: (d) prescribing an amount for the purposes of subsection 7(1); (e) respecting the allocation of payments to the different components of wages; 2007, c. 36, s. 94 (3) Paragraph 41(i) of the Act is replaced by the following: (i) respecting the information that is to be provided by trustees and receivers to the Minister and to individuals for the purposes of paragraph 21(1)(d) and respecting the period during which and the manner in which that information is to be provided; SOR/2008-222 Wage Earner Protection Program Regulations 348. Section 3 of the Wage Earner Protection Program Regulations is replaced by the following: 3. An individual’s employment has ended for the purposes of paragraph 5(a) of the Act if it has ended for any of the following reasons: (a) the individual resigned or retired; (b) the individual’s employment has terminated; or (c) the term of the individual’s employment has expired. 349. (1) The portion of section 6 of the French version of the Regulations before paragraph (a) is replaced by the following: 6. Pour l’application du paragraphe 7(1) de la Loi, les sommes ci-après sont à défalquer : (2) Paragraphs 6(a) and (b) of the Regulations are replaced by the following: (a) any amount that the individual has received after the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer by virtue of his or her rights in respect of the eligible wages; and (b) an amount equal to 6.82% of the amount determined under that subsection. C. 2 Budget Implem 350. Section 7 of the Regulations is repealed. 351. (1) Paragraph 8(a) of the Regulations is replaced by the following: (a) firstly, to wages other than those referred to in paragraphs (b) to (e); (2) Paragraph 8(c) of the French version of the Regulations is replaced by the following: c) l’indemnité de vacances; (3) Section 8 of the Regulations is amended by striking out “and” after paragraph (b) and by adding the following after paragraph (c): (d) fourthly, to termination pay; and (e) lastly, to severance pay. 352. Paragraph 9(b) of the Regulations is replaced by the following: (b) on which the applicant’s employment ends for any of the reasons referred to in section 3; and 353. (1) Paragraph 15(1)(c) of the Regulations is replaced by the following: (c) the dates on which wages, other than severance pay or termination pay, were earned and the basis upon which they were calculated; (c.1) the date on which any employment in respect of which severance pay or termination pay is owing ended; (2) Paragraph 15(2)(a) of the Regulations is replaced by the following: (a) 45 days from the date of bankruptcy or from the first day on which there was a receiver in relation to the former employer, as the case may be, unless circumstances beyond the control of the trustee or receiver necessitate a longer period; or 354. Subsection 16(2) of the Regulations is replaced by the following: (2) The trustee or receiver shall provide the information within 45 days from the date of bankruptcy or from the first day on which there Exécution du b was a receiver in relation to the former employer, as the case may be, unless circumstances beyond the control of the trustee or receiver necessitate a longer period. R.S., c. B-3 Consequential Amendments to the Bankruptcy and Insolvency Act 2005, c. 47, s. 67; 2007, c. 36, s. 38 355. The definition “rémunération” in subsection 81.3(9) of the French version of the Bankruptcy and Insolvency Act is replaced by the following: « rémunération » “compensation” « rémunération » S’entend notamment de l’indemnité de vacances, mais non de l’indemnité de départ ou de préavis. 2005, c. 47, s. 67; 2007, c. 36, s. 38 356. The definition “rémunération” in subsection 81.4(9) of the French version of the Act is replaced by the following: « rémunération » “compensation” « rémunération » S’entend notamment de l’indemnité de vacances, mais non de l’indemnité de départ ou de préavis. Transitional Provision Application 357. The provisions of the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations as amended by sections 342 to 354 apply (a) in respect of wages owing to an individual by an employer who becomes bankrupt after January 26, 2009; and (b) in respect of wages owing to an individual by an employer any of whose property comes under the possession or control of a receiver within the meaning of subsection 243(2) of the Bankruptcy and Insolvency Act after January 26, 2009. DIVISION 2 FEDERAL FINANCIAL ASSISTANCE FOR STUDENTS 1994, c. 28 Canada Student Financial Assistance Act 358. Subparagraph 5(a)(iii) of the English version of the Canada Student Financial Assistance Act is replaced by the following: C. 2 Budget Implem (iii) principal and interest on a student loan made by the lender to a borrower whose obligations in respect of the loan are terminated in the circumstances set out in section 10 or 11, 2000, c. 14, s. 17 359. Subsection 6.1(2) of the Act is replaced by the following: Financial terms and conditions (2) Any terms and conditions in the agreement that could have a financial impact on Her Majesty in right of Canada are subject to approval by the Governor in Council, on the recommendation of the Minister with the concurrence of the Minister of Finance. 360. The Act is amended by adding the following after section 6.3: Suspension or denial of financial assistance 6.4 The Minister may suspend or deny the provision of financial assistance to all those who are qualifying students in relation to a designated educational institution if the Minister is satisfied that there are compelling reasons to believe that the provision of the financial assistance would (a) facilitate the commission by the designated educational institution of an offence under this Act or any other Act of Parliament; or (b) expose the qualifying students or Her Majesty in right of Canada to significant financial risk. 361. Section 10 of the Act is replaced by the following: Death of borrower 10. (1) All obligations of a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the borrower dies, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii). Death of borrower before this subsection in force (2) If a borrower dies before this subsection comes into force, then all obligations of that borrower in respect of such a student loan terminate on the day on which this subsection comes into force. 362. The Act is amended by adding the following after section 16.2: Exécution du b Requirement to provide information or documents 16.3 (1) For the purpose of verifying compliance or preventing non-compliance with this Act, the Minister may, by notice served personally or by confirmed delivery service, require any person who has received financial assistance to provide to the Minister, within the time and in the manner that are stipulated in the notice, any information or document that is in their possession or to which they could reasonably be expected to have access. Copies as evidence (2) When a document is provided in accordance with subsection (1), the Minister may make, or cause to be made, one or more certified copies of it and any such copy is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way. 363. Section 17 of the Act is replaced by adding the following: False statement or information 17. (1) Every person who, in respect of a student loan or other financial assistance to a student, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, is guilty of an offence and liable on summary conviction to a fine not exceeding $1,000. Limitation period (2) A prosecution for an offence under this Act may not be instituted later than six years after the time when the subject matter of the complaint arose. Administrative measures 17.1 (1) If a person, in respect of a student loan or other financial assistance to a student, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, the Minister may (a) deny the person financial assistance or a certificate of eligibility for a prescribed period; (b) deny the person an interest-free period referred to in subsection 7(1) for a prescribed period, or terminate the interest-free period; C. 2 Budget Implem (c) deny the person the deferral of payments of principal or interest under section 8 for a prescribed period, or terminate the deferral; (d) deny the person payments of interest under subsection 9(2) for a prescribed period, or terminate the payments; (e) deny the person a gratuitous payment referred to in paragraph 15(1)(l); (f) deny the person special interest-free or interest-reduced periods referred to in paragraph 15(1)(n) for a prescribed period, or terminate the interest-free period or the interest-reduced period; (g) deny the person repayment of a student loan on an income-contingent basis referred to in paragraph 15(1)(o) for a prescribed period, or terminate repayment on an incomecontingent basis; (h) require the person to immediately repay any outstanding amount of a student loan that they obtained by reason of the false statement or misrepresentation or the false or misleading information; or (i) require the person to immediately repay any grant that they obtained by reason of the false statement or misrepresentation or the false or misleading information. Outstanding student loans (2) If, before the day on which this section comes into force, a person knowingly made any false statement or misrepresentation, including by omission, in an application or other document or knowingly provided any false or misleading information, including by omission, in respect of a student loan that is outstanding on that day, the Minister may take any measure set out in paragraphs (1)(a) to (h). Notice (3) The Minister may not take any measure under subsection (1) or (2) without having given the person 60 days’ notice of the Minister’s intention to take the measure. Submissions (4) The person may make submissions to the Minister in respect of the measure at any time. Exécution du b Rescission or modification of measure (5) The Minister may rescind or modify a measure taken under subsection (1) or (2) if new facts are presented or the Minister considers that the measure was taken without knowledge of some material fact or on the basis of a mistake concerning one. Limitation (6) The Minister may not take any measure under subsection (1) or (2) later than five years after the day on which the Minister becomes aware of the false statement or misrepresentation or the false or misleading information. 364. The Act is amended by adding the following after section 19: Chief Actuary to report 19.1 (1) The Chief Actuary of the Office of the Superintendent of Financial Institutions shall, no later than July 31, 2009, prepare and submit to the Minister a report on financial assistance provided under this Act in the loan year that ended on July 31, 2008. Subsequent reports (2) The Chief Actuary shall, no later than three years after the end of the loan year during which he or she previously submitted a report to the Minister under subsection (1) or under this subsection, prepare and submit to the Minister a subsequent report on financial assistance provided under this Act in the loan year or years since the last loan year covered by the previous report. The report shall cover a period that ends on the end of the loan year that precedes the submission of the report. Contents of report (3) The Chief Actuary shall include the following in a report made under this section: (a) an actuarial estimate of the current costs of financial assistance provided under this Act, and of revenues from that assistance; (b) an actuarial forecast of the costs of financial assistance that is to be provided under this Act for the 25 years that follow the last loan year that is covered by the report, and of revenues from that assistance; and (c) an explanation of all of the actuarial and economic assumptions and the actuarial methodology used in the preparation of the report. C. 2 Report to be laid before Parliament (4) The Minister shall cause the report to be laid before the Senate and the House of Commons on the day after the day on which the report is submitted or, if that House is not then sitting, on any of the first 15 days afterwards that it is sitting. R.S., c. S-23 Budget Implem Canada Student Loans Act 365. Section 12 of the Canada Student Loans Act is replaced by the following: Death of borrower 12. (1) All obligations of a borrower in respect of a guaranteed student loan terminate if the borrower dies, and the Minister shall pay to any lender whose rights against the borrower are terminated under this section the amount of principal and interest determined in the prescribed manner to have been payable by the borrower on the day of the borrower’s death. Undisclosed death of borrower (2) If the borrower dies and notice of the borrower’s death is not received by the lender within 30 days after the day of death, then, despite subsection (1), the day on which the amount is determined in the prescribed manner to have been payable is a day that is fixed by the Minister in accordance with the regulations. Disappearance of borrower (3) If a borrower disappears under circumstances that, in the opinion of the Minister, raise a presumption that the borrower is dead, then all the borrower’s obligations in respect of a guaranteed student loan terminate on the day on which the Minister forms that opinion, and the Minister shall pay to any lender whose rights against the borrower are terminated under this subsection the amount of principal and interest determined in the prescribed manner to have been payable by the borrower on a day that is fixed by the Minister in accordance with the regulations. Death of borrower before this subsection comes into force (4) If, before the day on which this subsection comes into force, a borrower dies or the Minister forms an opinion under paragraph (2)(b) as it read immediately before that day, then all the borrower’s obligations in respect of a guaranteed student loan terminate on that day. 2009 Date fixed is after this subsection comes into force Exécution du b (5) However, if the Minister fixes a day under subsection (2) — as it read immediately before this subsection comes into force — that is later than the day on which this subsection comes into force, then the day that is fixed is the day on which the amount of principal and interest is determined in the prescribed manner to be payable under subsection (2) or (3). 366. Section 18 of the Act is replaced by the following: False statement or information 18. (1) Every person who, in respect of a guaranteed student loan, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, is guilty of an offence under this Act and liable on summary conviction to a fine not exceeding $1,000. Limitation period (2) A prosecution for an offence under this Act may not be instituted later than six years after the time when the subject matter of the complaint arose. ADMINISTRATIVE MEASURES Administrative measures 18.1 (1) If a person, in respect of a guaranteed student loan, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, the Minister may (a) deny the person an interest-free period under section 4 or a special interest-free period under section 10 for a prescribed period, or terminate the interest-free period or the special interest-free period; (b) deny the person the deferral of payments of principal or interest under section 5 for a prescribed period, or terminate the deferral; (c) deny the person payments of interest under subsection 5.1(2) for a prescribed period, or terminate the payments; C. 2 Budget Implem (d) deny the person repayment of a guaranteed student loan on an income-contingent basis referred to in paragraph 17(q) for a prescribed period, or terminate repayment on an income-contingent basis; (e) deny the person a gratuitous payment referred to in paragraph 17(q.1); or (f) require the person to immediately repay any outstanding amount of a guaranteed student loan that they obtained by reason of the false statement or misrepresentation or the false or misleading information. Outstanding student loans (2) If, before the day on which this section comes into force, a person knowingly made any false statement or misrepresentation, including by omission, in an application or other document or knowingly provided any false or misleading information, including by omission, in respect of a guaranteed student loan that is outstanding on that day, the Minister may take any measure set out in paragraphs (1)(a) to (f). Notice (3) The Minister may not take any measure under subsection (1) or (2) without having given the person 60 days’ notice of the Minister’s intention to take the measure. Submissions (4) The person may make submissions to the Minister in respect of the measure at any time. Rescission or modification of measure (5) The Minister may rescind or modify a measure taken under subsection (1) or (2) if new facts are presented or the Minister considers that the measure was taken without knowledge of some material fact or on the basis of a mistake concerning one. Limitation (6) The Minister may not take any measure under subsection (1) or (2) later than five years after the day on which the Minister becomes aware of the false statement or misrepresentation or the false or misleading information. 367. The Act is amended by adding the following after section 19.2: Requirement to provide information or documents 19.3 (1) For the purpose of verifying compliance or preventing non-compliance with this Act, the Minister may, by notice served personally or by confirmed delivery service, require any person who has received a guaranteed student loan to provide to the Minister, Exécution du b within the time and in the manner that are stipulated in the notice, any information or document that is in their possession or to which they could reasonably be expected to have access. Copies as evidence (2) When a document is provided in accordance with subsection (1), the Minister may make, or cause to be made, one or more certified copies of it and any such copy is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way. 2008, c. 28 Consequential Amendment to the Budget Implementation Act, 2008 368. Section 105 of the Budget Implementation Act, 2008 is repealed. DIVISION 3 CROWN CORPORATIONS R.S., c. F-11 Financial Administration Act 2006, c. 9, s. 262(3) 369. Subsections 85(1.1) and (1.2) of the Financial Administration Act are replaced by the following: Exempted Crown corporations (1.1) Divisions I to IV, except for subsection 105(2) and sections 113.1, 119, 131 to 148 and 154.01, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, the International Development Research Centre or the National Arts Centre Corporation. Exemption for Telefilm Canada (1.2) Divisions I to IV, except for subsection 105(2) and sections 113.1, 119, 131 to 148 and 154.01 and subject to subsection 21(2) of the Telefilm Canada Act, do not apply to Telefilm Canada. 370. (1) The portion of subsection 99(2) of the Act before paragraph (a) is replaced by the following: Disposal of property (2) Subject to this section and sections 90, 91 and 130, an agent corporation may sell or otherwise dispose of or lease any property held by the corporation and may retain and use the proceeds of the disposal or lease, but only C. 2 Budget Implem (2) The portion of subsection 99(3) of the Act before paragraph (a) is replaced by the following: Exception (3) Subsection (2) does not apply in respect of any sale or other disposal or lease of property by an agent corporation established by an Act of Parliament, if the corporation is specifically empowered by that Act or any other Act of Parliament (3) Paragraphs 99(3)(a) and (b) of the English version of the Act are replaced by the following: (a) to sell or otherwise dispose of or lease property; or (b) to sell or otherwise dispose of or lease property for consideration not exceeding a specified amount and the sale or other disposal or lease of the property is for consideration equal to or less than the specified amount. (4) Paragraphs 99(4)(a) and (b) of the Act are replaced by the following: (a) prescribing the terms and conditions on which an agent corporation may sell or otherwise dispose of or lease property; (b) prescribing the circumstances in which an agent corporation may retain and use all or any part of the proceeds of any disposal or lease of property; and (5) Subsection 99(5) of the Act is replaced by the following: Terms and conditions (5) The Governor in Council may, in any authorizing order under subsection (2), specify any terms and conditions that the Governor in Council considers appropriate, including terms and conditions respecting the retention and use of all or any part of the proceeds of the disposal or lease by the agent corporation. 371. Subsection 105(2) of the Act is replaced by the following: Exécution du b Officer or employee not to be director (2) No officer or employee of a Crown corporation or any of its affiliates, other than the chief executive officer of a parent Crown corporation, shall be a director of the parent Crown corporation. Transitional provision (2.1) Any officer or employee of a Crown corporation or any of its affiliates, other than the chief executive officer of a parent Crown corporation, who was a director of the parent Crown corporation immediately before the day on which this subsection comes into force may continue as a director of that corporation for six months after that day or, if it is shorter, the remainder of his or her term. 372. The Act is amended by adding the following after section 113: Public meeting 113.1 (1) The board of directors of a parent Crown corporation shall hold a public meeting within 18 months after the day on which the board holds its first meeting or, if it is later, the day on which this section comes into force and, subsequently, within 15 months after the day on which the last preceding public meeting was held. By-laws (2) The meeting shall be held in Canada in the manner provided for in the by-laws or, if no manner is provided for, in the manner determined by the board of directors. Notice of meeting (3) The corporation shall publish a notice of the meeting at least 30 days before the day on which the meeting is to be held. The notice shall indicate the location, if any, and the date and time of the meeting, the means of participating in the meeting and how copies of the corporation’s most recent annual report may be obtained. Director and chief executive officer to attend (4) One or more directors of the corporation and its chief executive officer, whether or not he or she is a director of the corporation, shall participate in the meeting to answer questions from the public. 1991, c. 24, s. 34 373. (1) The portion of subsection 119(1) of the Act before paragraph (a) is replaced by the following: Obligation to indemnify 119. (1) The Treasury Board shall, in accordance with the regulations, if any, indemnify a present or former director or officer of a Crown C. 2 Budget Implem corporation or a person who acts or acted at the request of a Minister or a Crown corporation as a director or officer of another corporation, and his or her heirs and legal representatives, against the costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, that are reasonably incurred by him or her in respect of any civil, criminal, administrative or investigative action or proceeding to which he or she is a party by reason of being or having been such a director or officer, if he or she (2) Section 119 of the Act is amended by adding the following after subsection (1): Advance of costs (1.1) The Treasury Board shall, in accordance with the regulations, if any, advance moneys to any individual referred to in subsection (1) for the costs, charges and expenses of an action or proceeding referred to in that subsection unless there are reasonable grounds to believe that the individual does not fulfil the conditions set out in paragraph (1)(a) or (b). The individual shall repay the moneys if he or she does not fulfil those conditions. 1991, c. 24, s. 34 (3) The portion of subsection 119(2) of the Act before paragraph (a) is replaced by the following: Entitlement to indemnification (2) Despite anything in this section, a director or officer referred to in subsection (1) is, and his or her heirs and legal representatives are, entitled to indemnity, in accordance with the regulations, if any, from the Treasury Board in respect of the costs, charges and expenses reasonably incurred by him or her in connection with the defence of any civil, criminal, administrative or investigative action or proceeding to which he or she was made a party by reason of being or having been such a director or officer, if he or she 1991, c. 24, s. 34 (4) Subsection 119(3) of the Act is replaced by the following: Regulations (3) The Treasury Board may make regulations Exécution du b (a) respecting indemnification and advances under this section, including terms and conditions governing them; (b) defining, for the purposes of this section, the meaning of any word or expression used in it that is not defined in this Act; (c) prescribing circumstances in which a director or officer is presumed not to have fulfilled the condition set out in paragraph (1)(a); and (d) respecting the determination of the amounts to be paid as indemnification or advances under this section. 374. Subsection 138(2) of the Act is replaced by the following: Time for examination (2) A special examination shall be carried out at least once every 10 years and at any additional times that the Governor in Council, the appropriate Minister, the board of directors of the corporation to be examined or the Auditor General of Canada may require. 375. Section 139 of the Act is amended by adding the following after subsection (2): Report to Minister and President of the Treasury Board (3) The board of directors shall, within 30 days after the day on which it receives the report, submit the report to the appropriate Minister and the President of the Treasury Board. Report available to public (4) The board of directors shall, within 60 days after the day on which it receives the report, make the report available to the public. Consequential Amendments R.S., c. C-2; 2001, c. 34, s. 14(E) Canada Council for the Arts Act 376. Section 5 of the Canada Council for the Arts Act is renumbered as subsection 5(1) and is amended by adding the following: Chief executive officer (2) The Director is the chief executive officer of the Council. 324 2008, c. 28, s. 121 C. 2 Budget Implem Canada Employment Insurance Financing Board Act 377. Subsection 9(6) of the Canada Employment Insurance Financing Board Act is amended by adding the following after paragraph (e): (e.1) a person who is an employee of the Board; R.S., c. C-10 Canada Post Corporation Act 378. Section 8 of the Canada Post Corporation Act is amended by adding the following after subsection (1): Chief executive officer R.S., c. C-15 (1.1) The President is the chief executive officer of the Corporation. Canadian Dairy Commission Act 379. Subsection 3(3) of the Canadian Dairy Commission Act is repealed. 1991, c. 8 Canadian Race Relations Foundation Act 2006, c. 9, s. 244 380. Subsection 17(3) of the Canadian Race Relations Foundation Act is replaced by the following: Financial Administration Act (3) Part X of the Financial Administration Act, except for subsection 105(2) and sections 113.1, 131 to 148 and 154.01, does not apply to the Foundation. 1999, c. 34 Public Sector Pension Investment Board Act 2006, c. 9, s. 295 381. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following: Financial Administration Act (6) Part X of the Financial Administration Act, except for sections 113.1, 132 to 147 and 154.01, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act. Exécution du b 382. Subsection 6(2) of the Act is amended by adding the following after paragraph (d): (d.1) a person who is an employee of the Board; PART 9 PAYMENTS TO PROVINCES R.S., c. F-8; 1995, c. 17, s. 45(1) FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 383. The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 3.1: Fiscal year 2009–2010 3.11 Subject to subsection 3.7(3), the fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2009 is equal to, (a) for Ontario, $347,029,000; (b) for Quebec, $8,354,501,000; (c) for Nova Scotia, $1,390,747,000; (d) for New Brunswick, $1,689,410,000; (e) for Manitoba, $2,063,394,000; (f) for British Columbia, $0; (g) for Prince Edward Island, $339,919,000; (h) for Saskatchewan, $0; (i) for Alberta, $0; and (j) for Newfoundland and Labrador, $0. 384. Section 3.2 of the Act is amended by adding the following after subsection (3): Fiscal year 2009–2010 (4) Despite subsections (1) and (2), for the fiscal year beginning on April 1, 2009, the fiscal equalization payment that would be received by Nova Scotia or Newfoundland and Labrador, as the case may be, if the amount of that payment were determined in accordance with this section is $1,645,198,000 for Nova Scotia and $856,986,000 for Newfoundland and Labrador. C. 2 2007, c. 29, s. 62 385. Section 3.4 of the Act is replaced by the following: Less than 50% of population 3.4 (1) If the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is less than 50% of the aggregate of the average annual population of all provinces for that fiscal year and if the amount that may be paid to a province for that fiscal year under section 3.2 would, if paid, result in that province having, in that fiscal year, a total per capita fiscal capacity that is greater than the per capita equalized fiscal capacity of any province that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a), the fiscal equalization payment that may be paid to that province for that fiscal year determined under section 3.2 shall be reduced by the amount determined by the formula Budget Implem (A – B) × C where A is the total per capita fiscal capacity of that province for that fiscal year; B is the per capita equalized fiscal capacity for that fiscal year of the province that has the lowest per capita equalized fiscal capacity for that fiscal year and that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a); and C is the average annual population of that province for that fiscal year. 50% or more of population (2) If the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is 50% or more of the aggregate of the average annual population of all provinces for that fiscal year, the fiscal equalization payment that may be paid to a province for Exécution du b that fiscal year determined under section 3.2 shall be reduced by the greater of the following amounts: (a) zero, and (b) the amount determined by the formula (A – B) × C where A is the total per capita fiscal capacity of that province for that fiscal year, B is the quotient obtained by dividing the aggregate of the equalized fiscal capacity of all provinces to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), by the aggregate of the average annual population of all of those provinces for that fiscal year, and C is the average annual population of that province for that fiscal year. Re-calculation (3) If, as a result of the application of subsection (2), the amount of the fiscal equalization payment that may be paid to any province for a fiscal year is reduced to zero, that subsection applies again, but the description of B in that subsection does not include, for that fiscal year, the equalized fiscal capacity and the average annual population of any province to which the amount of the fiscal equalization payment is reduced to zero. Multiple applications (4) For greater certainty, subsection (3) applies after each application of subsection (2). Aggregate payment (5) The aggregate of the fiscal equalization payments that would be paid for a fiscal year beginning after March 31, 2010, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), shall be equal to the amount determined by the formula A × (1 + B) where C. 2 Budget Implem A is, for the fiscal year beginning on April 1, 2010, $14,185,000,000 and, for a fiscal year beginning after March 31, 2011, the amount determined under this subsection for the previous fiscal year; and B is the average of the annual rates of growth of the nominal gross domestic product of Canada, as determined by the Minister, for the calendar year that ends during the fiscal year in question and for the two previous calendar years. Calculation (6) If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), exceeds the amount determined under subsection (5), the fiscal equalization payment that may be paid to a province for that fiscal year determined under subsections (1) to (4) and section 3.2 shall be reduced by the amount determined by the formula A×B where A is the lesser of the per capita equalization payment for that province for that fiscal year and the per capita reduction; and B is the average annual population of that province for that fiscal year. Per capita calculation (7) For the purposes of subsection (6), the Minister shall determine the per capita reduction for a fiscal year and shall, in making that determination, ensure that the aggregate of the reductions referred to in that subsection is equal to the amount determined by the formula A–B where A is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were Exécution du b determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2); and B is the amount determined under subsection (5). Adjustment payment (8) If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), is less than the amount determined under subsection (5), there may be paid to a province for that fiscal year an adjustment payment that is, (a) in the case of a province to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under subsections (1) to (4) and section 3.2, the amount determined by the formula A×B where A is the per capita adjustment for that fiscal year, and B is the average annual population of that province for that fiscal year; and (b) in any other case, the greater of zero and the amount determined by the formula (C + D – E) × F where C is the per capita pre-adjustment equalized fiscal capacity for that fiscal year of the province that has the greatest per capita pre-adjustment equalized fiscal capacity for that fiscal year of the provinces referred to in paragraph (a), D is the per capita adjustment for that fiscal year, E is the per capita pre-adjustment equalized fiscal capacity of the province in question for that fiscal year, and F is the average annual population of the province in question for that fiscal year. C. 2 Per capita adjustment (9) For the purposes of subsection (8), the Minister shall determine the per capita adjustment for a fiscal year and shall, in making that determination, ensure that the aggregate of the adjustment payments referred to in that subsection is equal to the amount determined by the formula Budget Implem A–B where A is the amount determined under subsection (5); and B is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2). Section 3.6 (10) No adjustment payment shall be paid for a fiscal year to a province to which section 3.6 applies for that fiscal year. 386. Subsection 3.5(1) of the Act is amended by adding the following in alphabetical order: “equalized fiscal capacity” « capacité fiscale après péréquation » “equalized fiscal capacity” means, in respect of a province for a fiscal year, the product obtained by multiplying the per capita equalized fiscal capacity of that province for that fiscal year by the average annual population of that province for that fiscal year. “per capita equalization payment” « paiement de péréquation par habitant » “per capita equalization payment” means, in respect of a province for a fiscal year, the quotient obtained by dividing the fiscal equalization payment that would be paid to that province for that fiscal year, if the amount of that payment were determined under section 3.2 and subsections 3.4(1) to (4) as if that province had not made an election under subsection 3.2(2), by the average annual population of that province for that fiscal year. Exécution du b 2009 “per capita equalized fiscal capacity” « capacité fiscale par habitant après péréquation » “per capita equalized fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula A + B + (C / F) where A, B and F have the same meaning as the descriptions of A, B and F, respectively, in the definition “total per capita fiscal capacity”; and C is any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a). “per capita preadjustment equalized fiscal capacity” « capacité fiscale par habitant après péréquation et avant rajustement » “per capita pre-adjustment equalized fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula A + B + C + [(D + E) / F] where A, B, D, E and F have the same meaning as the descriptions of A, B, D, E and F, respectively, in the definition “total per capita fiscal capacity”; and C is the per capita equalization payment for that province for that fiscal year. 2007, c. 29, s. 62 387. Subsection 3.7(3) of the Act is replaced by the following: Election for subsequent fiscal years (3) Nova Scotia or Newfoundland and Labrador, as the case may be, may elect, at the prescribed time and in the prescribed manner, that the amount of the fiscal equalization payment that may be paid to that province (a) for the fiscal year beginning on April 1, 2008, be determined under sections 3.2 and 3.4 as they read immediately before the day on which this subsection comes into force, rather than under subsection 3.6(1); (b) for the fiscal year beginning on April 1, 2009, be the amount set out in section 3.11, rather than the amount determined under subsection 3.6(1); or C. 2 Budget Implem (c) for any fiscal year beginning after March 31, 2010, be determined under sections 3.2 and 3.4, rather than under subsection 3.6(1). 388. Section 24.2 of the Act is renumbered as subsection 24.2(1) and is amended by adding the following: Fiscal year 2009–2010 (2) Despite subsection (1), the cash contribution established under paragraph 24.1(1)(a) that may be provided to a province for the fiscal year beginning on April 1, 2009 is (a) for Ontario, $9,233,217,000; (b) for Quebec, $5,798,516,000; (c) for Nova Scotia, $700,137,000; (d) for New Brunswick, $557,488,000; (e) for Manitoba, $903,325,000; (f) for British Columbia, $3,353,843,000; (g) for Prince Edward Island, $104,364,000; (h) for Saskatchewan, $843,451,000; (i) for Alberta, $1,961,782,000; (j) for Newfoundland and Labrador, $450,450,000; (k) for Yukon, $26,457,000; ( l ) f o r t h e N o r t h w e s t Te r r i t o r i e s , $26,824,000; and (m) for Nunavut, $27,208,000. 2007, c. 29, s. 71 389. (1) Subsections 24.7(1.2) and (1.3) of the Act are replaced by the following: Total equalized tax transfer — fiscal years 2007–2008 to 2010–2011 (1.2) The total equalized tax transfer applicable to a province for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2011 is the aggregate of (a) the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year, and (b) in the case of a territory, zero, and in the case of a province, the amount equal to the lesser of Exécution du b (i) the equalization payment payable to that province for that fiscal year under Part I, and (ii) an amount equal to the greater of (A) the product obtained by multiplying (I) the aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition “revenue source” in subsection 3.9(1), the per capita yield of the federal income tax reduction for that province for that fiscal year from the per capita national yield of the federal income tax reduction for that fiscal year by (II) the population of that province for that fiscal year, and (B) zero. Total equalized tax transfer — fiscal year 2009– 2010 (1.21) Despite subsection (1.2), the total equalized tax transfer applicable to a province for the fiscal year beginning on April 1, 2009 is (a) for Ontario, $5,531,594,000; (b) for Quebec, $3,007,447,000; (c) for Nova Scotia, $363,132,000; (d) for New Brunswick, $289,145,000; (e) for Manitoba, $468,518,000; (f) for British Columbia, $1,649,531,000; (g) for Prince Edward Island, $54,129,000; (h) for Saskatchewan, $302,432,000; (i) for Alberta, $2,129,928,000; (j) for Newfoundland and Labrador, $123,276,000; (k) for Yukon, $11,131,000; ( l ) f o r t h e N o r t h w e s t Te r r i t o r i e s , $22,794,000; and (m) for Nunavut, $8,510,000. C. 2 Total equalized tax transfer — fiscal year 20112012 and later (1.22) The total equalized tax transfer applicable to a province for each fiscal year beginning after March 31, 2011 is the aggregate of the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year and Budget Implem (a) in the case of a province that receives an equalization payment for that fiscal year under Part I and in the case of Ontario, an amount equal to the lesser of (i) the equalization payment payable to that province for that fiscal year under Part I, and (ii) the amount equal to the product obtained by multiplying (A) the aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition “revenue source” in subsection 3.9(1), the per capita yield of the federal income tax reduction for that province for that fiscal year from the per capita national yield of the federal income tax reduction for that fiscal year by (B) the population of that province for that fiscal year; or (b) in any other case, zero. Revenue sources (1.3) For the purposes of the calculation under subparagraph (1.2)(b)(ii) and paragraph (1.22)(a), the relevant revenue bases, per capita yield of the federal income tax reduction and per capita national yield of the federal income tax reduction are to be determined in the prescribed manner. 2007, c. 29, s. 71(7) (2) The portion of subsection 24.7(2) of the Act before paragraph (a) is replaced by the following: Exécution du b 2009 Federal income tax reduction (2) For the purposes of subsections (1), (1.2) and (1.22), the amount represented by the federal income tax reduction in a province in respect of the Canada Health Transfer and the Canada Social Transfer for a fiscal year is an amount equal to the aggregate of 390. The Act is amended by adding the following after section 24.701: Payments to Ontario 24.702 The Minister may pay to Ontario an additional cash payment equal to (a) for the fiscal year beginning on April 1, 2009, the amount of $489,058,000; and (b) for the fiscal year beginning on April 1, 2010, the amount determined by the formula -1 × A × B where A is the amount determined for Ontario under subparagraph 24.7(1.2)(b)(i) for that fiscal year, and B is the population of Ontario for that fiscal year. 2007, c. 29, s. 73 391. Paragraph 40(a.1) of the Act is replaced by the following: (a.1) respecting the information that must be prepared and submitted by the Chief Statistician of Canada for the purposes of Parts I, I.1, V and V.1; PAYMENT TO NOVA SCOTIA Payment of $74,188,000 392. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of seventyfour million and one hundred and eightyeight thousand dollars to Nova Scotia. PART 10 EXPENDITURE RESTRAINT ACT Enactment of Act 393. The Expenditure Restraint Act, whose text is as follows and whose Schedules 1 and 2 are set out in Schedule 11 to this Act, is hereby enacted: C. 2 Budget Implem An Act to restrain the Government of Canada’s expenditures in relation to employment SHORT TITLE Short title 1. This Act may be cited as the Expenditure Restraint Act. INTERPRETATION Definitions “additional remuneration” « rémunération additionnelle » “arbitral award” « décision arbitrale » “bargaining agent” « agent négociateur » 2. The following definitions apply in this Act. “additional remuneration” means any allowance, bonus, differential or premium or any payment to employees that is similar to any of those payments. “arbitral award” means an arbitral award governing employees to whom this Act applies. “bargaining agent” has the same meaning (a) as in subsection 3(1) of the Canada Labour Code, in relation to employees to whom Part I of that Act applies; (b) as in section 3 of the Parliamentary Employment and Staff Relations Act, in relation to employees to whom that Act applies; and (c) as in subsection 2(1) of the Public Service Labour Relations Act, in relation to employees to whom that Act applies. “collective agreement” « convention collective » “collective agreement” means a collective agreement governing employees to whom this Act applies. “Her Majesty” « Sa Majesté » “Her Majesty” means Her Majesty in right of Canada. “National Joint Council” « Conseil national mixte » “National Joint Council” has the same meaning as in subsection 4(1) of the Public Service Labour Relations Act. “rate of pay” « taux de salaire » “rate of pay” means a base rate of pay, whether expressed as a single rate of pay or a range of rates of pay — or, if no such rate or range exists, any fixed or ascertainable amount of base pay — but does not include any additional remuneration. 2009 “restraint period” « période de contrôle » Exécution du b “restraint period” means the period that begins on April 1, 2006 and ends on March 31, 2011. Deemed bonus 3. For the purpose of this Act, any lump sum that an employer is required by an arbitral award to pay to employees is deemed to be a bonus. National Joint Council recommendations 4. Any reference in this Act to additional remuneration does not include any additional remuneration that is provided for by a directive, policy, regulation, agreement or other instrument issued or made (a) on the recommendation of the National Joint Council and with the employer’s approval; or (b) unilaterally by an employer in respect of a subject matter that, in the opinion of the Treasury Board, is the same as or is related to the subject matter of any instrument made in accordance with paragraph (a). When certain collective agreements are deemed to have been entered into 5. (1) For the purpose of this Act, a collective agreement is deemed to have been entered into before December 8, 2008 if it was actually entered into on or after that date but its parties had, before that date, agreed in writing to enter into it with effect on the expiry of a previous collective agreement and they entered into it without alteration. When provisions of certain terms and conditions of employment are deemed to have been established (2) If subsection (1) applies in respect of a collective agreement and terms and conditions of employment were established on or after December 8, 2008, the provisions of those terms and conditions of employment that are identical in all material respects to those of the collective agreement and that are applicable to nonrepresented and excluded employees that normally have terms and conditions of employment that are similar to those of the employees governed by the collective agreement are, for the purposes of this Act, deemed to have been made before December 8, 2008. C. 2 Budget Implem EFFECTS OF ACT Right to bargain collectively 6. Subject to the other provisions of this Act, the right to bargain collectively under the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act is continued. Right to strike 7. Nothing in this Act affects the right to strike under the Canada Labour Code or the Public Service Labour Relations Act. Amendments permitted 8. Nothing in this Act precludes the bargaining agent for employees governed by a collective agreement or arbitral award and the employer of those employees from amending, by agreement in writing, any provision of the collective agreement or arbitral award, other than a provision relating to its term, so long as the amendment is not contrary to any provision of this Act. Workplace improvements 9. Nothing in this Act precludes the codevelopment of workplace improvements by bargaining agents and employers under the auspices of the National Joint Council or any other body that they may agree on. Incremental and merit increases 10. Nothing in this Act is to be construed as precluding the entitlement of any employee to incremental increases — including any based on the attainment of further qualifications or the acquisition of further skills — or to merit or performance increases, in-range increases, performance bonuses or similar forms of compensation. Conflicts with other Acts 11. In the event of a conflict between a provision of this Act and a provision of any other Act of Parliament, including a provision in Part X of the Financial Administration Act, the provision of this Act prevails to the extent of the conflict, unless the other Act expressly declares that it or any of its provisions apply despite this Act. APPLICATION Members of Parliament 12. This Act applies to members of the Senate and the House of Commons. Exécution du b 2009 Employees 13. (1) This Act applies to employees who are employed in or by (a) the departments and other portions of the federal public administration named in Schedules I and IV, respectively, to the Financial Administration Act and the separate agencies named in Schedule V to that Act, other than the Financial Consumer Agency of Canada and the Staff of the Non-Public Funds, Canadian Forces; (b) the Crown corporations and public bodies named in Schedule 1; and (c) the Senate, the House of Commons, the Library of Parliament, the office of the Senate Ethics Officer and the office of the Conflict of Interest and Ethics Commissioner. Members of the Royal Canadian Mounted Police (2) For greater certainty, members of the Royal Canadian Mounted Police are employees. Deemed employees (3) This Act applies to the following persons, who are deemed to be employees for the purposes of this Act: (a) the staff of members of the Senate and the House of Commons; (b) directors of the Crown corporations and public bodies named in Schedule 1; (c) officers and non-commissioned members of the Canadian Forces; and (d) the Chief Electoral Officer. Persons appointed by Governor in Council (4) This Act applies to persons who are appointed by the Governor in Council, and those persons are deemed to be employees for the purposes of this Act. Despite this subsection, this Act does not apply to lieutenant governors, judges who are paid a salary under the Judges Act, military judges appointed under section 165.21 of the National Defence Act and prothonotaries appointed under section 12 of the Federal Courts Act. C. 2 Persons designated by Governor in Council 14. The Governor in Council may, by order, designate any person or class of persons as persons to whom this Act applies, and those persons are deemed to be employees for the purposes of this Act. Locally engaged persons and independent contractors 15. This Act does not apply to a person who is locally engaged outside Canada or, for greater certainty, to a person who is engaged as an independent contractor. Budget Implem RESTRAINT MEASURES INCREASES TO RATES OF PAY Increases to rates of pay 16. Despite any collective agreement, arbitral award or terms and conditions of employment to the contrary, but subject to the other provisions of this Act, the rates of pay for employees are to be increased, or are deemed to have been increased, as the case may be, by the following percentages for any 12-month period that begins during any of the following fiscal years: (a) the 2006–2007 fiscal year, 2.5%; (b) the 2007–2008 fiscal year, 2.3%; (c) the 2008–2009 fiscal year, 1.5%; (d) the 2009–2010 fiscal year, 1.5%; and (e) the 2010–2011 fiscal year, 1.5%. EMPLOYEES REPRESENTED BY A BARGAINING AGENT Increases to rates of pay — collective agreements or arbitral awards after coming into force 17. (1) The provisions of any collective agreement that is entered into, or arbitral award that is made, after the day on which this Act comes into force may not provide for increases to rates of pay that are greater than those set out in section 16, but they may provide for increases that are lower. Exécution du b 12-month periods (2) For greater certainty, any collective agreement that is entered into, or any arbitral award that is made, after the day on which this Act comes into force and that provides for increases to rates of pay for any period that begins during the restraint period must do so on the basis of a 12-month period. Increases to rates of pay — collective agreements and arbitral awards — December 8, 2008 until coming into force 18. The provisions of any collective agreement that is entered into, or any arbitral award that is made, during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provide, for any particular period, for increases to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16. Increases to rates of pay — collective agreements and arbitral awards — before December 8, 2008 19. With respect to a collective agreement that is entered into, or an arbitral award that is made, before December 8, 2008, (a) section 16 does not apply in respect of any period that began during the 2006–2007 or 2007–2008 fiscal year; and (b) for any 12-month period that begins during any of the 2008–2009, 2009–2010 and 2010–2011 fiscal years, section 16 applies only in respect of periods that begin on or after December 8, 2008 and any provisions of those agreements or awards that provide, for any particular period, for increases to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16. Other than 12month periods — section 18 20. If a collective agreement or arbitral award to which section 18 applies provides for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year in the restraint period, that increase is of no effect or is deemed never to have had effect, as the case may be, and is deemed to be an increase for that period of other than 12 C. 2 Budget Implem months, determined on an annualized basis to the nearest 1/100%, that provides for the increase referred to in section 16 for a period that begins during that particular fiscal year. Other than 12month periods — section 19 21. If a collective agreement or arbitral award to which section 19 applies provides for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year that begins during the period that begins on December 8, 2008 and ends on March 31, 2011, that increase is of no effect or is deemed never to have had effect, as the case may be, and is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increase referred to in section 16 for a period that begins during that particular fiscal year. Lower percentages not affected 22. If a collective agreement or arbitral award to which section 18 or 19 applies provides for an increase to the rates of pay for any particular period that is lower than the increase referred to in section 16 for that period, section 16 does not apply in respect of that increase. Restructuring prohibited 23. Subject to sections 31 to 34, (a) no provision of a collective agreement that is entered into, or of an arbitral award that is made, after the day on which this Act comes into force may provide for the restructuring of rates of pay during any period that begins during the restraint period; (b) any provision of a collective agreement that is entered into, or of an arbitral award that is made, during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provides for the restructuring of rates of pay during any period that begins during the restraint period is of no effect or is deemed never to have had effect, as the case may be; and (c) any provision of a collective agreement that is entered into, or of an arbitral award that is made, before December 8, 2008 that provides for the restructuring of rates of pay Exécution du b during any period that begins during the period that begins on December 8, 2008 and ends on March 31, 2011 is of no effect or is deemed never to have had effect, as the case may be. No increases to additional remuneration — after coming into force 24. No collective agreement that is entered into, or arbitral award that is made, after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any increase to the amount or rate of any additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the collective agreement, or the arbitral award, as the case may be, becomes effective. No increases to additional remuneration — December 8, 2008 until coming into force 25. If a collective agreement that is entered into, or arbitral award that is made, at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contains provisions that provide, for any period that begins during the restraint period, for an increase to the amount or rate of any additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the collective agreement, or the arbitral award, as the case may be, became effective, those provisions are of no effect or are deemed never to have had effect, as the case may be. No increases to additional remuneration — before December 8, 2008 26. If a collective agreement that is entered into, or an arbitral award that is made, before December 8, 2008 contains provisions that, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, provide for an increase to the amount or rate of any additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the first period that began on or after December 8, 2008, those provisions are of no effect or are deemed never to have had effect, as the case may be. No new additional remuneration — after coming into force 27. No collective agreement that is entered into, or arbitral award that is made, after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any additional remuneration C. 2 Budget Implem that is new in relation to the additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the collective agreement or the arbitral award, as the case may be, becomes effective. No new additional remuneration — December 8, 2008 to coming into force 28. If a collective agreement that is entered into, or an arbitral award that is made, at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contains a provision that provides, for any period that begins during the restraint period, for any additional remuneration to the employees governed by the collective agreement or the arbitral award that is new in relation to the additional remuneration that applied to the employees governed by the collective agreement or the arbitral award, as the case may be, immediately before it became effective, that provision is of no effect or is deemed never to have had effect, as the case may be. No new additional remuneration — before December 8, 2008 29. If a collective agreement that is entered into, or an arbitral award that is made, before December 8, 2008 contains a provision that provides, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, for any additional remuneration to the employees governed by the collective agreement or the arbitral award that is new in relation to the additional remuneration that applied to the employees governed by the collective agreement or arbitral award, as the case may be, immediately before the first period that began on or after December 8, 2008, that provision is of no effect or is deemed never to have had effect, as the case may be. Canada Border Services Agency 30. Sections 24 to 26 do not apply in respect of pay notes applicable only to employees in the Canada Border Services Agency who were transferred to the Agency on its creation, but the rates of those pay notes may not be increased during any period that begins in any of the fiscal years referred to in section 16 by a percentage that is higher than the percentage set out in that section for that fiscal year. 2009 Border Services Group Exécution du b 31. The following rules apply in respect of collective agreements that govern employees in the Border Services Group whose employer is Her Majesty as represented by the Treasury Board: (a) paragraph 23(a) does not prevent any collective agreement that is entered into after the day on which this Act comes into force from restructuring, as a result of a classification conversion, the rates of pay during the 2007–2008 or 2009–2010 fiscal year, and the increases set out in section 16 apply in respect of the restructured rates of pay; (b) if a collective agreement is entered into during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, as a result of a classification conversion, it contains provisions for the restructuring of rates of pay during the 2007–2008 or 2009–2010 fiscal year, paragraph 23(b) does not apply in respect of those provisions, and the increases set out in section 16 apply in respect of the restructured rates of pay; and (c) if a collective agreement is entered into before December 8, 2008 and, as a result of a classification conversion, it contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year, paragraph 23(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay. Groups subject to national rates of pay 32. The following rules apply in respect of collective agreements that govern employees in the Operational Services Group whose employer is Her Majesty as represented by the Treasury Board and employees in the General Labour and Trades Group and the General Services Group whose employer is Her Majesty as represented by the Parks Canada Agency or Her Majesty as represented by the Canadian Food Inspection Agency: (a) paragraph 23(a) does not prevent any collective agreement that is entered into after the day on which this Act comes into force from restructuring the rates of pay during the 2009–2010 fiscal year in order to create C. 2 Budget Implem national rates of pay, and the increase set out in section 16 applies in respect of the restructured rates of pay; (b) if a collective agreement is entered into during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, in order to create national rates of pay, it contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year, paragraph 23(b) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay; and (c) if a collective agreement is entered into before December 8, 2008 and, in order to create national rates of pay, it contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year, paragraph 23(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay. Ships’ Officers Group 33. The following rules apply in respect of any arbitral award that is made before December 8, 2008 and that governs employees in the Ships’ Officers Group whose employer is Her Majesty as represented by the Treasury Board: (a) paragraph 23(c) does not apply in respect of the provisions of any arbitral award that provide for the restructuring of rates of pay during the 2010–2011 fiscal year, and the increase set out in section 16 applies in respect of the restructured rates of pay; and (b) section 29 does not apply in respect of the provisions of any arbitral award that provide for the payment, during the 2010– 2011 fiscal year, of a sum in lieu of vacation leave factors. Law Group 34. (1) The following rules apply in respect of any collective agreement or arbitral award that governs employees in the Law Group whose employer is Her Majesty as represented by the Treasury Board, and in respect of any period that begins during the restraint period: Exécution du b (a) in the case of a collective agreement entered into — or an arbitral award made — after the day on which this Act comes into force, (i) it may not have retroactive effect in respect of a day that is earlier than May 10, 2006, (ii) any increase to rates of pay that it provides for in respect of any period that begins during the 2006–2007 fiscal year must be based on the rates of pay set out in Schedule 2, (iii) it must provide, for all employees in the Law Group, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group and, in relation to any particular position level, those plans must be at the same amounts or rates that were in effect for that position level on that date, but those plans may not have retroactive effect, (iv) it may provide for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, but the amount or rate of that additional remuneration for a particular position level may not be greater than the highest amount or rate that applied to employees of that position level on that date, and (v) it may not provide for additional remuneration if that additional remuneration applied to no employee in the Law Group on May 9, 2006; and (b) in the case of a collective agreement entered into — or an arbitral award made — on or before the day on which this Act comes into force, (i) if any of its provisions has retroactive effect in respect of a day that is earlier than May 10, 2006, that retroactive effect is deemed never to have had effect, the provision is deemed to have had retroactive effect as of May 10, 2006 and the first day of every other period that is related to that provision is deemed to be moved forward by the number of days that is equal to the C. 2 Budget Implem number of days between the first day the provision was expressed to have retroactive effect and May 10, 2006, (ii) if the increase provided to rates of pay for any period that begins during the 2006– 2007 fiscal year is based on rates of pay that are greater than those set out in Schedule 2, those greater rates of pay are of no effect or are deemed never to have had effect, as the case may be, and the increase is deemed to be based on the rates of pay set out in Schedule 2, (iii) if subparagraph (ii) applies, its provision that provides for the rates of pay for any other period that begins on or before March 31, 2011 is of no effect or is deemed never to have had effect, as the case may be, and the rates of pay in that provision are deemed to be the rates of pay that applied immediately before the beginning of that period as a result of this Act, (iv) if it provides for performance pay plans and those plans are not the same as those that were in effect on May 9, 2006 for any employees in the Law Group or the amounts or rates provided for in those plans in relation to any particular position level are not the same as those of the performance pay plans that were in effect on that date — or the plans were expressed to be retroactive — the provisions that provide for those plans are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide, for all employees in the Law Group, as of the day that the agreement was entered into or the award was made, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date, (v) if it does not provide for performance pay plans, it is deemed to provide, for all employees in the Law Group, as of the day that the agreement was entered into or the award was made, for the same performance Exécution du b pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date, (vi) if it provides for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, and the amount or rate of that additional remuneration for a particular position level is greater than the highest amount or rate that applied to any employees of that position level on that date, the provision that provides for that payment is deemed to be of no effect or is deemed never to have had effect, as the case may be, and is deemed to provide for the highest amount or rate, as the case may be, that applied in respect of any of those employees on that date, and (vii) if it provides for any additional remuneration, and that additional remuneration applied to no employee in the Law Group on May 9, 2006, the provision that provides for that payment is of no effect or is deemed never to have had effect, as the case may be. Other provisions apply (2) For greater certainty, the provisions of this Act that are not inconsistent with subsection (1) apply to collective agreements and arbitral awards that govern employees in the Law Group. NON-REPRESENTED AND EXCLUDED EMPLOYEES Definitions “employee” « employé » “terms and conditions of employment” « condition d’emploi » 35. (1) The following definitions apply in sections 36 to 54. “employee” means an employee who is not represented by a bargaining agent or who is excluded from a bargaining unit. “terms and conditions of employment” means terms and conditions of employment that apply to employees. C. 2 When terms and conditions of employment are considered to be established (2) For the purposes of sections 36 to 54, terms and conditions of employment are considered to be established if they are established by an employer acting alone or agreed to by an employer and employees. Increases to rates of pay — terms and conditions established after coming into force 36. (1) Terms and conditions of employment established after the day on which this Act comes into force may not provide for increases to rates of pay that are greater than those set out in section 16, but they may provide for increases that are lower. 12-month periods (2) For greater certainty, terms and conditions of employment established after the day on which this Act comes into force that provide for increases to rates of pay for any period that begins during the restraint period must do so on the basis of a 12-month period. Increases to rates of pay — terms and conditions of employment — December 8, 2008 until coming into force 37. The provisions of any terms and conditions of employment established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provide, for any particular period, for an increase to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16. Increases to rates of pay — terms and conditions of employment — before December 8, 2008 38. With respect to any terms and conditions of employment established before December 8, 2008 that provide for increases to rates of pay Budget Implem (a) section 16 does not apply in respect of any period that began during the 2006–2007 or 2007–2008 fiscal year; and (b) for any 12-month period that begins during any of the 2008–2009, 2009–2010 and 2010–2011 fiscal years, section 16 applies only in respect of periods that begin on or after December 8, 2008 and any provisions of those terms and conditions of employment that provide, for any particular period, for increases to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case Exécution du b may be, and are deemed to be provisions that provide for the increases referred to in section 16. Other than 12month periods — section 37 39. If any terms and conditions of employment to which section 37 applies provide for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year in the restraint period, that increase is of no effect or is deemed never to have had effect, as the case may be, and the increase is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increase referred to in section 16 for a period that begins during that particular fiscal year. Other than 12month periods — section 38 40. If any terms and conditions of employment to which section 38 applies provide for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year that begins during the period that begins on December 8, 2008 and ends on March 31, 2011, that increase is of no effect or is deemed never to have had effect, as the case may be, and is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increases referred to in section 16 in respect of a period that begins during that particular fiscal year. Lower percentages not affected 41. If any terms and conditions of employment to which section 37 or 38 apply provide for an increase to the rates of pay for any particular period that is lower than the increase referred to in section 16 for that period, section 16 does not apply in respect of that increase. Section 16 does not create authority to increase 42. If any terms and conditions of employment established before, on or after the day on which this Act comes into force do not provide for an increase to the rates of pay for any particular period that begins during the restraint period, section 16 is not to be construed as authorizing any increase to those rates of pay. Restructuring prohibited 43. Subject to sections 51 to 54, C. 2 Budget Implem (a) no provision of terms and conditions of employment established after the day on which this Act comes into force may provide for the restructuring of rates of pay during any period that begins during the restraint period; (b) any provision of terms and conditions of employment established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provides for the restructuring of rates of pay during any period that begins during the restraint period is of no effect or is deemed never to have had effect, as the case may be; and (c) any provision of terms and conditions of employment established before December 8, 2008 that provides for the restructuring of rates of pay during any period that begins during the period that begins on December 8, 2008 and ends on March 31, 2011 is of no effect or is deemed never to have had effect, as the case may be. No increases to additional remuneration — after coming into force 44. No terms and conditions of employment established after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any increase to the amount or rate of any additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before those terms and conditions of employment become effective. No increases to additional remuneration — December 8, 2008 until coming into force 45. If any terms and conditions of employment established at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contain provisions that provide, for any period that begins during the restraint period, for an increase to the amount or rate of any additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before those provisions became effective, those provisions are of no effect or are deemed never to have had effect, as the case may be. Exécution du b No increases to additional remuneration — before December 8, 2008 46. If any terms and conditions of employment established before December 8, 2008 contain provisions that, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, provide for an increase to the amount or rate of any additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the first period that began on or after December, 8, 2008, those provisions are of no effect or are deemed never to have had effect, as the case may be. No new additional remuneration — after coming into force 47. No terms and conditions of employment established after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the terms and conditions of employment become effective. No new additional remuneration — December 8, 2008 until coming into force 48. If any terms and conditions of employment established at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contain, in relation to any employees, a provision that provides, for any period that begins during the restraint period, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the effective date of the provisions, that provision is of no effect or is deemed never to have had effect, as the case may be. No new additional remuneration — before December 8, 2008 49. If any terms and conditions of employment established before December 8, 2008 contain, in relation to any employees, a provision that provides, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the first period that began on or after December C. 2 Budget Implem 8, 2008, that provision is of no effect or is deemed never to have had effect, as the case may be. Canada Border Services Agency 50. Sections 44 to 46 do not apply in respect of pay notes applicable only to employees in the Canada Border Services Agency who were transferred to the Agency on its creation, but the rates of those pay notes may not be increased during any period that begins in any of the fiscal years referred to in section 16 by a percentage that is higher than the percentage set out in that section for that fiscal year. Border Services Group 51. The following rules apply in respect of terms and conditions of employment governing employees in the Border Services Group whose employer is Her Majesty as represented by the Treasury Board: (a) if the restructuring permitted by paragraph 31(a) occurs, paragraph 43(a) does not prevent terms and conditions of employment established after the day on which this Act comes into force from restructuring, as a result of a classification conversion, the rates of pay during the 2007–2008 or 2009–2010 fiscal year, and the increases set out in section 16 apply in respect of the restructured rates of pay; (b) if any terms and conditions of employment were established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, as a result of a classification conversion, they contain provisions for the restructuring of rates of pay during the 2007–2008 or 2009– 2010 fiscal year and the restructuring permitted by paragraph 31(b) occurs, paragraph 43(b) does not apply in respect of those provisions, and the increases set out in section 16 apply in respect of the restructured rates of pay; and (c) if any terms and conditions of employment were established before December 8, 2008 and, as a result of a classification conversion, they contain provisions for the restructuring of rates of pay during the 2009– 2010 fiscal year and the restructuring permitted by paragraph 31(c) occurs, paragraph Exécution du b 43(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay. Groups subject to national rates of pay 52. The following rules apply in respect of terms and conditions of employment governing employees in the Operational Services Group whose employer is Her Majesty as represented by the Treasury Board and employees in the General Labour and Trades Group and the General Services Group whose employer is Her Majesty as represented by the Parks Canada Agency or Her Majesty as represented by the Canadian Food Inspection Agency: (a) if the restructuring permitted by paragraph 32(a) occurs, paragraph 43(a) does not prevent terms and conditions of employment established after the day on which this Act comes into force from restructuring rates of pay during the 2009–2010 fiscal year in order to create national rates of pay, and the increase set out in section 16 applies in respect of the restructured rates of pay; (b) if any terms and conditions of employment were established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, in order to create national rates of pay, they contain provisions for the restructuring of rates of pay during the 2009–2010 fiscal year and the restructuring permitted by paragraph 32(b) occurs, paragraph 43(b) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay; and (c) if any terms and conditions of employment were established before December 8, 2008 and, in order to create national rates of pay, they contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year and the restructuring permitted by paragraph 32(c) occurs, paragraph 43(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay. Ships’ Officers Group 53. The following rules apply in respect of terms and conditions of employment established before December 8, 2008 that govern employ356 C. 2 Budget Implem ees in the Ships’ Officers Group whose employer is Her Majesty as represented by the Treasury Board: (a) paragraph 43(c) does not apply in respect of the provisions of those terms and conditions of employment that provide for the restructuring of rates of pay during the 2010– 2011 fiscal year, and the increase set out in section 16 applies in respect of the restructured rates of pay; and (b) section 49 does not apply in respect of the provisions of those terms and conditions of employment that provide for the payment, during the 2010–2011 fiscal year, of a sum in lieu of vacation leave factors. Law Group 54. (1) The following rules apply in respect of terms and conditions of employment governing employees in the Law Group whose employer is Her Majesty as represented by the Treasury Board, and in respect of any period that begins during the restraint period: (a) in the case where the terms and conditions of employment are established after the day on which this Act comes into force, (i) the provisions of those terms and conditions of employment that provide for increases to rates of pay may not have retroactive effect in respect of a day that is earlier than May 10, 2006, (ii) any increase to rates of pay that the terms and conditions of employment provide for in respect of any period that begins during the 2006–2007 fiscal year must be based on the rates of pay set out in Schedule 2, (iii) the provisions of those terms and conditions of employment must provide, for all employees of the Law Group, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group and, in relation to any particular position level, those plans must be at the same amounts or rates that were in effect for that position level on that date but those plans may not have retroactive effect, and Exécution du b (iv) the provisions of those terms and conditions of employment may provide for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, but the amount or rate of that additional remuneration for a particular position level may not be greater than the highest amount or rate that applied to employees of that position level on that date, and (v) those terms and conditions of employment may not provide for additional remuneration if that additional remuneration applied to no employee in the Law Group on May 9, 2006; and (b) in the case where the terms and conditions of employment were established on or before the day on which this Act comes into force, (i) if any of their provisions have retroactive effect in respect of a day that is earlier than May 10, 2006, that retroactive effect is deemed never to have had effect, the provision is deemed to have had retroactive effect as of May 10, 2006 and the first day of every other period referred to in that provision is deemed to be moved forward by the number of days that is equal to the number of days between the first day the provision was expressed to have retroactive effect and May 10, 2006, (ii) if the increase provided to rates of pay for any period that begins during the 2006– 2007 fiscal year is based on rates of pay that are greater than those set out in Schedule 2, those greater rates of pay are of no effect or are deemed never to have had effect, as the case may be, and the increase is deemed to be based on the rates of pay set out in Schedule 2, (iii) if subparagraph (ii) applies, the provisions of the terms and conditions of employment that provide for rates of pay for every other period that begins on or before March 31, 2011 are of no effect or are deemed never to have had effect, as the case may be, and the rates of pay in those C. 2 Budget Implem provisions are deemed to be the rates of pay that applied immediately before the beginning of that period as a result of this Act, (iv) if those terms and conditions of employment provide for performance pay plans and those plans are not the same as those that were in effect on May 9, 2006 for any employees in the Law Group or the amounts or rates provided for in those plans in relation to any particular position level are not the same as those of the performance pay plans that were in effect on that date — or the plans were expressed to be retroactive — the provisions that provide for those plans are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide, for all employees in the Law Group, as of the day that the terms and conditions of employment were established, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date, (v) if those terms and conditions of employment do not provide for performance pay plans, they are deemed to provide, for all employees in the Law Group, as of the day that they were established, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date, (vi) if those terms and conditions of employment provide for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, and the amount or rate of that additional remuneration for a particular position level is greater than the highest amount or rate that applied to any employees of that position level on that date, the provisions that provide for that payment are deemed to be of no effect Exécution du b or are deemed never to have had effect, as the case may be, and are deemed to provide for the highest amount or rate, as the case may be, that applied in respect of any of those employees on that date, and (vii) if those terms and conditions of employment provide for any additional remuneration, and that additional remuneration applied to no employee in the Law Group on May 9, 2006, the provision that provides for that payment is of no effect or is deemed never to have had effect, as the case may be. Other provisions apply (2) For greater certainty, the provisions of this Act that are not inconsistent with subsection (1) apply to terms and conditions of employment governing employees in the Law Group. MEMBERS OF PARLIAMENT Members of Parliament 55. (1) Despite subsections 55.1(2), 62.1(2), 62.2(2) and 62.3(2) of the Parliament of Canada Act and subsections 4.1(2), (4) and (6) of the Salaries Act, the increases in respect of allowances and salaries to be paid to members of the Senate and the House of Commons for the 2009–2010 and 2010–2011 fiscal years are to be 1.5% for each of those fiscal years. 2011–2012 fiscal year (2) The indexing referred to in the provisions referred to in subsection (1) with respect to the 2011–2012 fiscal year is to be applied to the allowances and salaries determined under subsection (1) in respect of the 2010–2011 fiscal year. GENERAL Inconsistent provisions 56. Any provision of any collective agreement that is entered into — or of any arbitral award that is made, or of any terms and conditions of employment that are established — after the day on which this Act comes into force that is inconsistent with this Act is of no effect. Compensating for restraint measures prohibited 57. No provision of any collective agreement that is entered into — or of any arbitral award that is made, or of any terms and conditions of employment that are established — after the day C. 2 Budget Implem on which this Act comes into force may provide for compensation for amounts that employees did not receive as a result of the restraint measures in this Act. Provisions compensating for restraint measures of no effect 58. If a provision of a collective agreement that is entered into — or of an arbitral award that is made, or of terms and conditions of employment that are established — on or before the day on which this Act comes into force provides for compensation for amounts that employees did not receive as a result of the restraint measures in this Act, that provision is of no effect or is deemed never to have had effect, as the case may be. No changes to performance pay plans — new collective agreements, etc. 59. No provision of any collective agreement that is entered into — or of any arbitral award that is made, or of any terms and conditions of employment that are established — after the day on which this Act comes into force may, for any period that begins during the restraint period, change the performance pay plans, including the amounts or rates, that apply to any employees governed by the agreement, award or terms and conditions of employment. No changes to performance pay plans — existing collective agreements, etc. 60. If a provision of a collective agreement that is entered into — or of an arbitral award that is made, or of terms and conditions of employment that are established — during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force changes, for any period that begins during the restraint period, the performance pay plans, including the amounts or rates, that apply to any employees governed by the agreement, award or terms and conditions of employment, the change is of no effect or is deemed never to have had effect, as the case may be. No changes to performance pay plans — existing collective agreements, etc. 61. If a provision of a collective agreement that is entered into — or of an arbitral award that is made, or of terms and conditions of employment that are established — before December 8, 2008 changes, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, the performance pay plans, including the amounts or rates, that apply to any employees governed by the agreement, award or terms and condiExécution du b tions of employment, the change is of no effect or is deemed never to have had effect, as the case may be. Royal Canadian Mounted Police 62. Despite sections 44 to 49, the Treasury Board may change the amount or rate of any allowance, or make any new allowance, applicable to members of the Royal Canadian Mounted Police if the Treasury Board is of the opinion that the change or the new allowance, as the case may be, is critical to support transformation initiatives relating to the Royal Canadian Mounted Police. ADMINISTRATION Powers and duties of Treasury Board 63. (1) The Treasury Board may exercise the powers and shall perform the duties in relation to this Act that are necessary to enable it to determine whether an employer of employees, other than employees referred to in paragraph 13(1)(c) or (3)(a), is complying with this Act. Information and documentation (2) The Treasury Board may require from the employer any information and documentation that it considers necessary to enable it to determine whether the employer is complying with this Act. Treasury Board directive (3) If the Treasury Board determines under this section that the employer is not complying with this Act, it may issue any directives that it considers appropriate to ensure the compliance. Debt due to Her Majesty 64. (1) Every amount paid — including amounts paid before the day on which this Act comes into force — to any person in excess of the amount that should have been paid as a result of this Act is a debt due to Her Majesty and may be recovered as such. Overpayment (2) Any amount that is a debt due to Her Majesty as a result of subsection (1) is deemed to be an overpayment to which subsection 155(3) of the Financial Administration Act applies. Application (3) For greater certainty, subsection (1) applies to, but is not limited to, the following amounts: (a) amounts paid under a provision that by the operation of this Act is of no effect or is deemed never to have had effect; and C. 2 Budget Implem (b) amounts paid as a result of the payment of any amount referred to in paragraph (a). Orders 65. The Governor in Council may, on the recommendation of the Treasury Board, by order, amend Schedule 1 by adding to or deleting from it the name of any Crown corporation or public body. PART 11 EQUITABLE COMPENSATION PUBLIC SECTOR EQUITABLE COMPENSATION ACT Enactment of Act 394. The Public Sector Equitable Compensation Act is enacted as follows: An Act respecting the provision of equitable compensation in the public sector of Canada Preamble Whereas Parliament affirms that women in the public sector of Canada should receive equal pay for work of equal value; Whereas Parliament affirms that it is desirable to accomplish that goal through proactive means; And whereas employers in the public sector of Canada operate in a market-driven economy; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Public Sector Equitable Compensation Act. INTERPRETATION Definitions “bargaining agent” « agent négociateur » 2. (1) The following definitions apply in this Act. “bargaining agent” means an employee organization that is certified by the Board as the bargaining agent for the employees in a bargaining unit. Exécution du b 2009 “bargaining unit” « unité de négociation » “Board” « Commission » “collective agreement” « convention collective » “compensation” « rémunération » “bargaining unit” means a group of two or more employees that is determined by the Board to constitute a unit of employees appropriate for collective bargaining. “Board” means the Public Service Labour Relations Board. “collective agreement” means an agreement in writing, entered into under Part 1 of the Public Service Labour Relations Act between the employer and a bargaining agent, containing provisions respecting terms and conditions of employment and related matters. “compensation” means any form of remuneration payable for work performed by an employee and includes (a) salaries, commissions, vacation pay, severance pay and bonuses; (b) payments in kind; (c) employer contributions to pension funds or plans, long-term disability plans and all forms of health insurance plans; and (d) any other advantage received directly or indirectly from the employer. “employee” « employé » “employee” means a person who is employed by an employer, other than a person who is (a) appointed by the Governor in Council under an Act of Parliament to a statutory position described in that Act; or (b) locally engaged outside Canada. “employer” « employeur » “employer” means Her Majesty in right of Canada as represented by (a) the Treasury Board, in the case of a department named in Schedule I to the Financial Administration Act or another portion of the federal public administration named in Schedule IV to that Act; and (b) the separate agency, in the case of a portion of the federal public administration named in Schedule V to the Financial Administration Act. “female predominant” «à prédominance féminine » “female predominant”, in relation to a job group or a job class, means a job group or job class, as the case may be, composed of at least 70% female employees. C. 2 “job class” « catégorie d’emplois » “job class” means two or more positions in the same job group that have similar duties and responsibilities, require similar qualifications, are part of the same compensation plan and are within the same range of salary rates. “job group” « groupe d’emplois » “job group” has the meaning assigned by the regulations. “non-unionized employee” « employé non syndiqué » “non-unionized employee” means an employee who is not a member of a bargaining unit that is represented by a bargaining agent. “prescribed” « Version anglaise seulement » “unionized employee” « employé syndiqué » Royal Canadian Mounted Police Canadian Forces Budget Implem “prescribed” means prescribed by regulation. “unionized employee” means an employee who is a member of a bargaining unit that is represented by a bargaining agent. (2) For greater certainty, members of the Royal Canadian Mounted Police are employees for the purposes of this Act. (3) For the purposes of this Act, (a) officers and non-commissioned members of the Canadian Forces are deemed to be employees; and (b) Her Majesty in right of Canada, as represented by the Treasury Board, is deemed to be the employer of those officers and members. OBLIGATION TO PROVIDE EQUITABLE COMPENSATION Obligations of employers and bargaining agents 3. (1) An employer shall, in respect of its non-unionized employees, take measures to provide them with equitable compensation in accordance with this Act. In the case of unionized employees, the employer and the bargaining agent shall take measures to provide those employees with equitable compensation in accordance with this Act. Notice to employees (2) Every employer shall post, in the prescribed manner, a notice setting out the text of subsection (1) and describing the rights employees have under this Act. Exécution du b EQUITABLE COMPENSATION ASSESSMENT Equitable compensation assessment 4. (1) An equitable compensation assessment under this Act assesses, without gender bias, the value of work performed by employees in a job group or a job class and identifies, by taking into account the prescribed factors, whether an equitable compensation matter exists. Determining value (2) The criteria to be applied in assessing the value of the work performed by employees in a job group or a job class are (a) the composite of the skill, effort and responsibility required in the performance of the work and the conditions under which the work is performed; and (b) the employer’s recruitment and retention needs in respect of employees in that job group or job class, taking into account the qualifications required to perform the work and the market forces operating in respect of employees with those qualifications. Precision (3) Subject to the regulations, an equitable compensation assessment in respect of a job group or job class is to be conducted having regard to (a) with the exception of a job group or job class described in paragraph (d), in the case of a job group or job class within a portion of the federal public administration, including a department, described in paragraph (a) of the definition “employer” in subsection 2(1), only job groups or job classes, as the case may be, within any of those portions of the federal public administration, other than job groups or job classes described in paragraph (d); (b) in the case of a job group or job class within a separate agency named in Schedule V to the Financial Administration Act, only job groups or job classes, as the case may be, within the separate agency; (c) in the case of a job group or job class within the Canadian Forces, only job groups or job classes, as the case may be, within the C. 2 Budget Implem Canadian Forces that consist of officers and non-commissioned members of the Canadian Forces; and (d) in the case of a job group or job class within the Royal Canadian Mounted Police that consists of members of that organization, only job groups or job classes, as the case may be, within that organization that consist of such members. Equitable compensation matter (4) An equitable compensation matter exists in respect of a job group or a job class if an equitable compensation assessment determines, after taking into account the prescribed factors referred to in subsection (1), that equitable compensation is not being provided to employees in that job group or job class. Regulations (5) The Governor in Council may make regulations (a) respecting, for the purposes of subsection (1), the conducting of an equitable compensation assessment; (b) respecting, for the purposes of paragraph (2)(a), what constitutes the skill, effort and responsibility required in the performance of work and the conditions under which the work is performed; (c) respecting, for the purposes of paragraph (2)(b), what constitutes qualifications, and how an employer’s recruitment and retention needs are to be determined; and (d) restricting, for the purposes of subsection (3), the job groups or job classes to which an equitable compensation assessment is to have regard. EMPLOYERS WITH NON-UNIONIZED EMPLOYEES OBLIGATIONS Determining whether each job group is female predominant 5. Within each of the periods that is prescribed in respect of a job group, every employer that has non-unionized employees in Exécution du b that job group shall determine whether that job group is female predominant and, depending on the determination, comply with section 6 or 7. Determination — no female predominant job groups 6. (1) If an employer that has non-unionized employees determines that there are no female predominant job groups that contain at least the prescribed number of employees, the employer shall post, in the prescribed manner, for at least 90 days, a notice to that effect setting out the prescribed information. Dissatisfaction with employer’s determination (2) A non-unionized employee who is dissatisfied with his or her employer’s determination in the notice because the employee believes that he or she is part of a job group that contains at least the prescribed number of employees that is female predominant may, in the prescribed manner, so notify the employer within the prescribed period after the day on which the notice referred to in subsection (1) is first posted. Employer’s response (3) Within the prescribed period after the day on which the notice under subsection (2) is given, the employer shall consider the issues raised in the notice and provide the employee with a response in writing. Determination — existence of female predominant job group 7. (1) If an employer that has non-unionized employees determines that a job group that contains at least the prescribed number of employees is female predominant, the employer shall (a) determine, by conducting an equitable compensation assessment, whether any equitable compensation matters exist involving non-unionized employees in that job group and, if there are, prepare a plan to resolve them within a reasonable time; and (b) provide non-unionized employees in that job group, in the prescribed manner, with a report that (i) sets out a summary of the activities conducted by the employer under paragraph (a) and of consultations, if any, carried out under that paragraph, (ii) describes how the equitable compensation assessment in respect of that job group was conducted, C. 2 Budget Implem (iii) states whether or not the employer has determined that an equitable compensation matter exists involving non-unionized employees in that job group and, if there is, describing the matter, and (iv) sets out the plan prepared under paragraph (a), if one was prepared. Right of nonunionized employee (2) A non-unionized employee of that job group may, in the prescribed manner, within the prescribed period after the day on which the employer provides the employee with the report, request that the employer take appropriate steps to provide him or her with equitable compensation within a reasonable time if the employee is of the opinion that he or she will not receive equitable compensation because his or her employer has not prepared a plan under paragraph (1)(a) or, if one was prepared, the plan, in the employee’s opinion, does not provide for equitable compensation within a reasonable time. Response (3) Within the prescribed period after the day on which the request is made, the employer shall consider the matters raised in it and respond to the employee in writing. The employer shall indicate in the response whether it intends to take any measure as a result of the request and (a) if so, the period during which that measure is to be implemented; or (b) if not, the reasons for not doing so. Implementation of plan 8. (1) An employer that has non-unionized employees and that provides a report under paragraph 7(1)(b) or as a result of an order made under this Act — or under a response given under subsection 7(3) or 9(3) — that contains a plan shall implement the plan in accordance with its terms. When obligation ceases (2) Subsection (1) ceases to apply in respect of a plan if the employer subsequently provides another plan under this Act that deals with the same job group or job class, as the case may be. Exécution du b 2009 Request concerning equitable compensation — job class 9. (1) A non-unionized employee of an employer may, in the prescribed manner, within the prescribed period, request that the employer take appropriate steps to provide him or her with equitable compensation within a reasonable time if the employee has reasonable grounds to believe (a) that he or she is a member of a female predominant job class; and (b) that an equitable compensation assessment conducted in respect of that job class would lead to the identification of an equitable compensation matter. Information that must be provided (2) The employee who makes the request shall, in the prescribed manner, provide the employer with a statement that (a) describes the female predominant job class of which the employee alleges he or she is a member; and (b) sets out the reasonable grounds that the employee has to believe the matters referred to in paragraphs (1)(a) and (b). Response (3) Within the prescribed period after the day on which the request is made, the employer shall consider the matters raised in it and respond to the employee in writing. The employer shall indicate in the response whether it intends to take any measure as a result of the request and (a) if so, the period during which that measure is to be implemented; or (b) if not, the reasons for not doing so. COMPLAINTS Failure to comply 10. A non-unionized employee may, in a form acceptable to the Board, file a complaint with the Board if the employee is of the opinion that his or her employer has failed to comply with section 5 or subsection 6(1) or (3), 7(1) or (3), 8(1) or 9(3). Dissatisfaction with employer’s response 11. (1) A non-unionized employee who is provided with a response under subsection 9(3) may, in a form acceptable to the Board, within the prescribed period after the response is provided, file a complaint with the Board if C. 2 Budget Implem (a) the employee is dissatisfied with any matter in the response; and (b) the employee has reasonable grounds to believe (i) that he or she is a member of a female predominant job class, and (ii) that an equitable compensation assessment conducted in respect of that job class would lead to the identification of an equitable compensation matter. Information that must be provided (2) The complaint must (a) describe the female predominant job class of which the employee alleges he or she is a member; and (b) set out the reasonable grounds that the employee has to believe the matters referred to in subparagraphs (1)(b)(i) and (ii). Accompanying documents (3) The complaint must be accompanied by a copy of (a) the employee’s request made under subsection 9(1); and (b) the employer’s response given under subsection 9(3). EMPLOYERS WITH UNIONIZED EMPLOYEES OBLIGATIONS Provision of statement setting out number of employees — collective agreement in force 12. (1) Within the prescribed period before the expiry of the term of a collective agreement between an employer and a bargaining agent and in the prescribed manner, the employer shall provide the bargaining agent with a statement that sets out, in respect of each job group that consists in whole or in part of members of bargaining units that are represented by the bargaining agent, the number of employees that form part of that job group and the number of employees in that job group that are males and the number that are females. If the bargaining agent has not already made the statement Exécution du b available to all those employees, the bargaining agent shall make a copy of it available to any of them who request it. Provision of statement setting out number of employees — no collective agreement (2) If there is no collective agreement between an employer and a bargaining agent but that bargaining agent has been certified to represent employees in a bargaining unit that consists in whole or in part of the employer’s employees, the employer shall, at the request of the bargaining agent, provide the bargaining agent with a statement that sets out, in respect of each job group that consists in whole or in part of employees who are members of that bargaining unit, the number of the employees that form part of that job group and the number of employees in that job group that are males and the number that are females. If the bargaining agent has not already made available any statement that it has received to all those employees, the bargaining agent shall make a copy of it available to any of them who request it. Preparatory work 13. An employer and a bargaining agent shall, before collective bargaining begins, each conduct preparatory work to enable it, during collective bargaining, to raise or to respond to questions concerning the provision of equitable compensation to employees in female predominant job groups. Notice describing female predominant job group 14. An employer or a bargaining agent that intends to negotiate collectively in respect of the provision of equitable compensation to employees in a female predominant job group shall, without delay, provide the other party with a notice that identifies the female predominant job group concerned. Report in relation to equitable compensation matters 15. An employer or a bargaining agent that raises any equitable compensation matter in the course of collective bargaining in respect of a female predominant job group shall, without delay, provide the other party with a report that (a) identifies the female predominant job group to which the matter relates; (b) describes how the equitable compensation assessment was conducted in respect of that female predominant job group; and C. 2 Budget Implem (c) sets out how the equitable compensation matter should be resolved. Collective agreement 16. The provisions of a collective agreement between an employer and a bargaining agent in relation to equitable compensation may not be inconsistent with section 113 of the Public Service Labour Relations Act. ARBITRATION Request for arbitration 17. If arbitration has been chosen under subsection 103(1) of the Public Service Labour Relations Act as the process for the resolution of disputes, questions concerning the provision of equitable compensation to employees may be the subject of a request for arbitration under subsection 136(1) of that Act. Obligations of arbitration body 18. The body seized of a request for arbitration under the Public Service Labour Relations Act that includes questions concerning the provision of equitable compensation to employees shall, in the absence of any agreement by the parties, determine whether any job group is female predominant and, if it determines that it is, determine how the equitable compensation assessment in respect of that job group is to be conducted. Arbitral award 19. (1) The body seized of a request for arbitration under the Public Service Labour Relations Act that includes equitable compensation matters shall, subject to section 150 of that Act, make an arbitral award that sets out a plan to resolve those matters within a reasonable time. Report (2) As soon as feasible after making an arbitral award that sets out a plan referred to in subsection (1), the body making the award shall prepare and make available to the Chairperson of the Board, in the prescribed manner, a report that (a) sets out how the equitable compensation assessment in respect of every female predominant job group to which the award relates was conducted; and Exécution du b (b) if the body has decided that an equitable compensation matter exists, specifies whether or not that matter is to be resolved during the term of the arbitral award. Copy to employer and bargaining agent (3) On receipt of the report, the Chairperson of the Board shall, without delay, send a copy to the employer and the bargaining agent concerned and may cause the report to be published in any manner that the Chairperson considers appropriate. CONCILIATION Request for conciliation 20. If conciliation has been chosen under subsection 103(1) of the Public Service Labour Relations Act as the process for the resolution of disputes, questions concerning the provision of equitable compensation to employees may be the subject of a request for conciliation under subsection 161(1) of that Act. Obligations of public interest commission seized of request for conciliation 21. A public interest commission seized of a request for conciliation under the Public Service Labour Relations Act that includes questions concerning the provision of equitable compensation to employees shall (a) determine, in the absence of any agreement by the parties, whether any job group is female predominant and, if it determines that it is, recommend how the equitable compensation assessment in respect of that job group should be conducted; and (b) include in its report, subject to section 177 of the Public Service Labour Relations Act, recommendations that, if accepted by the parties, would result in the provision of equitable compensation to the employees concerned. RATIFICATION Obligation to prepare report 22. Before a bargaining agent submits a proposed collective agreement to employees for ratification, the employer and the bargaining agent shall jointly prepare and make available, in the prescribed manner, to the employees to whom the proposed collective agreement relates, a report that C. 2 Budget Implem (a) sets out how the equitable compensation assessment in respect of every female predominant job group was conducted; and (b) if, in the course of the bargaining that led to the proposed collective agreement, the employer and the bargaining agent have determined that an equitable compensation matter exists, describes the matter and specifies whether that matter is to be resolved during the term of the proposed collective agreement and if not, the reasonable time within which it is to be resolved. COMPLAINTS Failure to comply 23. A unionized employee may, in a form acceptable to the Board, file a complaint with the Board if the employee has reasonable grounds to believe that his or her employer or bargaining agent has failed to comply with section 12. Lack of equitable compensation 24. (1) An employee who is bound by a collective agreement entered into by an employer and a bargaining agent may, in a form acceptable to the Board, within 60 days after the day on which the collective agreement was entered into, file a complaint with the Board if (a) the employee has reasonable grounds to believe (i) that he or she is a member of a female predominant job class, and (ii) that an equitable compensation assessment conducted in respect of that job class would lead to the identification of an equitable compensation matter; and (b) the employee is of the opinion that he or she will not receive equitable compensation during the term of that collective agreement or within a reasonable period after the expiry of that term. Information that must be provided (2) The complaint must (a) describe the female predominant job class of which the employee alleges he or she is a member; and Exécution du b (b) set out the reasonable grounds the employee has to believe the matters referred to in subparagraphs (1)(a)(i) and (ii). PUBLIC SERVICE LABOUR RELATIONS BOARD GENERAL Application of Public Service Labour Relations Act 25. (1) The provisions of the Public Service Labour Relations Act apply, with any modifications that the circumstances require, in relation to any complaint or order made under this Act as though the complaint or order were a complaint or order, as the case may be, made under that Act. Regulations (2) The Board may make regulations concerning the procedure in respect of the making or hearing of complaints under this Act and any other matter that is incidental or conducive to the exercise of its powers and the performance of its functions under this Act. Power to extend period 26. The Board may extend the period for filing a complaint under this Act by up to 60 days if it is satisfied that exceptional circumstances justify the extension. Notice to employer and bargaining agent 27. The Board shall send a copy of every complaint filed with it under this Act, together with all of the information accompanying it, to the employer or bargaining agent, as the case may be — or, in the case of a complaint filed under section 24, to the employer and the bargaining agent — to whom the complaint relates. Obligation to deal with every complaint 28. (1) The Board shall deal with every complaint filed with it under this Act unless it appears to the Board that the complaint is trivial, frivolous or vexatious or was made in bad faith. Notice to employee (2) If the Board decides not to deal with a complaint, it shall send a written notice of its decision and the reasons for it to the employee who filed the complaint and to the employer or bargaining agent, as the case may be — or, in the case of a complaint filed under section 24, to the employer and the bargaining agent — to whom the complaint relates. C. 2 Budget Implem COMPLAINTS FILED BY NON-UNIONIZED EMPLOYEES Complaints under section 10 29. The Board may, in respect of a complaint filed under section 10, dismiss the complaint or, by order, if the Board determines that the employer has failed to comply with section 5 or subsection 6(1) or (3), 7(1) or (3), 8(1) or 9(3) direct the employer to comply with that provision within the period specified by the Board in the order. Complaints under section 11 30. (1) The Board may, in respect of a complaint filed under section 11, dismiss the complaint or, by order, require the employer to file with the Board, within the period specified by it in the order, a report that sets out the following, in respect of the female predominant job class of which the complainant is, according to the Board, a member: (a) how the employer has, since the making of the order, conducted an equitable compensation assessment in respect of the job class; and (b) if the equitable compensation assessment identified an equitable compensation matter in respect of the job class, the employer’s plan to resolve that matter within a reasonable period. Power if employer has committed manifestly unreasonable error (2) If, after receiving a report required by an order made under subsection (1), the Board is of the opinion that the employer has committed an error that is manifestly unreasonable in conducting an equitable compensation assessment or that the employer’s plan fails to make reasonable progress toward resolving an equitable compensation matter, the Board may, by order, require the employer to (a) take measures to correct the error or to alter the plan in such a way that it makes reasonable progress toward resolving the equitable compensation matter; and (b) file a report with the Board, within the period specified by it in the order, describing the measures that the employer has taken. 2009 Power to determine equitable compensation matter Exécution du b (3) If, after receiving a report required by an order made under subsection (2), the Board is of the opinion that the employer has committed an error that is manifestly unreasonable in the fulfilment of its obligations to take the measures referred to in paragraph (2)(a), the Board shall determine, by having regard to the equitable compensation assessment conducted by the employer or by itself conducting an equitable compensation assessment in respect of the female predominant job class of which the complainant is, according to the Board, a member, if any equitable compensation matters exist in respect of the job class and, if it determines that there are, the Board may, by order, require the employer to (a) pay the complainant a lump sum as compensation with respect to the matter in relation to the period that begins on the day specified by the Board, which day may not be earlier than the day determined under subsection (4), and that ends on the day on which the order is made; and (b) pay equitable compensation to the employees in the job class in relation to the period that begins on the day on which the order is made and that ends on the day on which the employer next complies with section 6 or 7 in respect of the job group that includes that job class. Determination of day (4) For the purposes of subsection (3), the day is the day on which the complainant made a request under subsection 9(1). Failure to file report (5) If the employer fails to file a report required by an order made under subsection (1) or (2), the Board may, by order, grant another period of time to file the report or, if the Board considers that there are exceptional circumstances to justify doing so, declare that the employer has committed a manifestly unreasonable error described in subsection (3). If the Board makes that declaration, subsection (3) applies. C. 2 Report to be made available (6) The Board shall make every report received as a result of an order made under this section available to the public. Power to require posting of order (7) The Board may, in an order made under this section, require the employer to post a copy of it, for at least 90 days, in the prescribed manner. Budget Implem COMPLAINTS FILED BY UNIONIZED EMPLOYEES Complaints under section 23 31. The Board may, in respect of a complaint filed under section 23, dismiss the complaint or, by order, if the Board determines that the employer or the bargaining agent has failed to comply with section 12, direct the employer or bargaining agent, as the case may be, to comply with section 12 within the period specified by the Board in the order. Complaints under section 24 — power to require statement 32. The Board may, in respect of a complaint filed under section 24, direct the employer and the bargaining agent to file with it, within the period specified by it, a copy of the report that they made available to employees under section 22 and a written statement that (a) identifies the job class of which the complainant is, according to the employer and the bargaining agent, a member; and (b) indicates whether the job class referred to in paragraph (a) is female predominant and, if it is, sets out how an equitable compensation assessment should be conducted in respect of that job class. Complaints under section 24 — power to dismiss or make orders 33. (1) The Board may, in respect of a complaint filed under section 24, dismiss the complaint or, by order, require the employer and the bargaining agent to file with the Board, within the period specified by it in the order, a report that sets out the following in respect of the female predominant job class of which the complainant is, according to the Board, a member: Exécution du b (a) how the employer and the bargaining agent have, since the making of the order, conducted an equitable compensation assessment in respect of the job class; and (b) if the equitable compensation assessment identified an equitable compensation matter in respect of the job class, their plan to resolve that matter in the course of the next collective bargaining that begins after the day on which the order is made or, if they are collectively bargaining on that day, in the course of that collective bargaining. Power if employer and bargaining agent have committed manifestly unreasonable error (2) If, after receiving a report required by an order made under subsection (1), the Board is of the opinion that the employer and the bargaining agent have committed an error that is manifestly unreasonable in conducting an equitable compensation assessment or that their plan fails to make reasonable progress toward resolving an equitable compensation matter, the Board may, by order, (a) require the employer and the bargaining agent to (i) take measures to correct the error or to alter the plan in such a way that it makes reasonable progress toward resolving the equitable compensation matter, and (ii) file a report with the Board, within the period specified by it in the order, describing the measures the employer and the bargaining agent have taken; and (b) if more than two years remain before the termination date of the current collective agreement between the employer and the bargaining agent, alter the collective agreement in such a way that the termination date is any day specified by the Board that is within the period that begins two years after the day on which the order is made and that ends on the day that would otherwise have been the termination date. Power to determine equitable compensation matter (3) If, after receiving a report required by an order made under subsection (2), the Board is of the opinion that the employer and the bargaining agent that prepared the report have committed an error that is manifestly unreasonable in the fulfilment of their obligations to take the C. 2 Budget Implem measures referred to in subparagraph (2)(a)(i), the Board shall determine, by having regard to the equitable compensation assessment conducted by the employer and the bargaining agent or by itself conducting an equitable compensation assessment in respect of the female predominant job class of which the complainant is, according to the Board, a member, if any equitable compensation matters exist in respect of the job class and, if it determines that there are, the Board may, by order, (a) require the employer or the employer and the bargaining agent to pay the complainant a lump sum as compensation with respect to the matter in relation to the period that begins on the day on which the collective agreement during which the complaint was made became effective and binding and that ends on the day on which the order is made; and (b) subject to subsection (4), alter any collective agreement that binds the employer and the bargaining agent on the day on which the order is made so that the employees of the job class receive equitable compensation for the remainder of the term of the collective agreement. When order under paragraph (3)(b) not necessary (4) The Board may refrain from making an order under paragraph (3)(b) if it is satisfied that the employer, or the employer and the bargaining agent, have taken the measures that are necessary to provide the employees of the job class with equitable compensation. Failure to file report (5) If the employer and the bargaining agent fail to file a report required by an order made under subsection (1) or (2), the Board may, by order, grant another period of time to file the report or, if the Board considers that there are exceptional circumstances to justify doing so, declare that the employer and the bargaining agent have committed a manifestly unreasonable error described in subsection (3). If the Board makes that declaration, subsection (3) applies. Exécution du b 2009 Public Service Labour Relations Act applies (6) The Public Service Labour Relations Act applies in respect of a collective agreement altered under an order made under paragraph (2)(b) or (3)(b) as if it had been entered into under that Act. Report to be made available (7) The Board shall make every report received as a result of an order made under this section available to the public. Power to require posting of order (8) The Board may, in an order made under this section, require the employer to post a copy of it, for at least 90 days, in the prescribed manner. COSTS Power to require payment of costs 34. The Board may, in making an order under this Act, require the employer, the bargaining agent or the employer and the bargaining agent, as the case may be, to pay to the complainant all or any part of the costs and expenses incurred by the complainant as a result of making the complaint. REGULATIONS Regulations 35. The Governor in Council may make regulations (a) defining “job group” for the purposes of this Act; (b) respecting the content and form of plans prepared under this Act, including as a result of an order made under this Act; (c) prescribing anything that by this Act may be prescribed; and (d) generally for carrying out the purposes and provisions of this Act. PROHIBITIONS Prohibition against encouraging or assisting 36. Every employer and every bargaining agent shall refrain from engaging in any conduct that may encourage or assist any employee in filing or proceeding with a complaint under this Act. C. 2 Other prohibitions — employer 37. No employer and no person acting on an employer’s behalf shall refuse to employ or to continue to employ any person, or suspend or lay off any person or otherwise discriminate against any person with respect to employment, pay or any other term or condition of employment or intimidate, threaten or otherwise discipline any person, because the person Budget Implem (a) has testified or otherwise participated, or may testify or otherwise participate, in a proceeding under this Act; or (b) has filed a complaint or exercised any right under this Act. Other prohibitions — bargaining agent 38. No bargaining agent and no person acting on a bargaining agent’s behalf shall (a) expel or suspend an employee from membership in the bargaining agent, or take disciplinary action against, or impose any form of penalty on, an employee because the employee exercised any right under this Act or refused to perform an act that is contrary to this Act; or (b) discriminate against a person with respect to membership in the bargaining agent, or intimidate or coerce a person or impose a financial or other penalty on a person, because that person (i) has testified or otherwise participated, or may testify or otherwise participate, in a proceeding under this Act, or (ii) has filed a complaint or exercised any right under this Act. Complaints against employers 39. (1) The Board shall examine and inquire into any complaint made to it that an employer or a person acting on an employer’s behalf has contravened section 37. Complaints against employers (2) A complaint referred to in subsection (1) is to be examined and inquired into by the Board as if it were a complaint in respect of a contravention of paragraph 186(2)(c) of the Public Service Labour Relations Act. For greater certainty, if the complaint is made in writing, the written complaint is itself evidence Exécution du b that the contravention actually occurred and, if any party to the complaint proceedings alleges that the contravention did not occur, the burden of proving that it did not is on that party. Complaints against bargaining agents (3) The Board shall examine and inquire into any complaint made to it that a bargaining agent or a person acting on a bargaining agent’s behalf has contravened section 38. Complaints against bargaining agents (4) A complaint referred to in subsection (3) is to be examined and inquired into by the Board as if it were a complaint in respect of a contravention of paragraph 188(d) or (e) of the Public Service Labour Relations Act. If the complaint is made in writing, the written complaint is itself evidence that the contravention actually occurred and, if any party to the complaint proceedings alleges that the contravention did not occur, the burden of proving that it did not is on that party. OFFENCE AND PUNISHMENT Contravention of section 37 or 38 40. Every employer, bargaining agent or other person who contravenes section 37 or 38 is guilty of an offence and liable on summary conviction to a fine not exceeding $10,000. Contravention of orders and certain provisions 41. (1) Every employer or bargaining agent who contravenes section 15, 22 or 36 or an order of the Board made under this Act is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000. Contravention of section 44 (2) Every employer who contravenes section 44 is guilty of an offence and liable on summary conviction to a fine not exceeding $25,000. Consent to prosecution (3) A prosecution for an offence under subsection (1) or (2) may be instituted only with the consent of the Board. GENERAL Bargaining agent deemed to be person 42. For the purposes of this Act, a bargaining agent is deemed to be a person. C. 2 Obligation to provide Board with reports 43. An employer shall, as soon as feasible after it has prepared a report referred to in section 7 or 22, provide the Board with the report. Obligation to keep records 44. Every employer shall, in the prescribed manner, establish and maintain, for the prescribed period, prescribed records for the purpose of this Act. Inconsistency or conflict 45. Nothing in this Act affects the application of the Public Service Labour Relations Act, but in the event of any inconsistency or conflict between this Act and that Act, the provisions of this Act prevail to the extent of the inconsistency or conflict. Application of safety or security provisions 46. (1) Nothing in this Act is to be construed as requiring or permitting an employer, an employee, a bargaining agent or the Board to do or refrain from doing anything that is contrary to any instruction, direction or regulation given or made by or on behalf of the Government of Canada in the interest of the safety or security of Canada or of any state allied or associated with Canada. Order is conclusive proof (2) For the purposes of subsection (1), an order made by the Governor in Council is conclusive proof of the matters stated in it in relation to the giving or making of any instruction, direction or regulation by or on behalf of the Government of Canada in the interest of the safety or security of Canada or any state allied or associated with Canada. Budget Implem TRANSITIONAL PROVISIONS COMPLAINTS BY NON-UNIONIZED EMPLOYEES Day determined under subsection 30(4) 47. If a complaint is made under section 11 after the first period that the employer was bound to comply with section 6 or 7 in respect of the job group that includes the complainant and before the second period that the employer was bound to comply with either of those sections in respect of that job group, the day that is referred to in subsection 30(4) in respect of that complaint is, despite that subsection, the day on which this Act came into force. Exécution du b TAKING EFFECT OF PROVISIONS IN RESPECT OF UNIONIZED EMPLOYEES Application of subsection 12(1) 48. Subsection 12(1) applies only in respect of a collective agreement that expires on a day that is more than two years after the day on which this Act comes into force. Application of subsection 12(2) and sections 13 to 22 and 24 49. Subsection 12(2) and sections 13 to 22 and 24 apply only in respect of a collective agreement that takes effect, or would take effect, on a day that is more than two years after the day on which this Act comes into force. FIRST COLLECTIVE AGREEMENT AFTER TAKING EFFECT Period referred to in paragraph 33(3)(a) 50. (1) If a complaint filed under subsection 24(1) is in respect of the first collective agreement that takes effect on a day that is more than two years after the day on which this Act comes into force, the period referred to in paragraph 33(3)(a) is, despite that paragraph, the period that begins, subject to subsection (2), on one of the following days and that ends on the day on which the order is made: (a) if the complainant was not a unionized employee on the day on which this Act came into force, the later of the day on which the complainant became a member of a bargaining unit to which the collective agreement applies and the day on which this Act came into force; (b) if the complainant was, on the day on which this Act came into force, a member of a bargaining unit that was not a bargaining unit to which the collective agreement applies, the day on which the complainant became a member of a bargaining unit to which the collective agreement applies; or (c) in the case of any other complainant, the day on which this Act came into force. Exception (2) The day referred to in each of paragraphs (1)(a) to (c) may not be earlier than the day on which the job class to which the complaint relates came into existence. C. 2 Budget Implem TRANSITIONAL PROVISIONS Interpretation 395. Unless the context otherwise requires, words and expressions used in sections 396 and 397 have the same meaning as in the Public Sector Equitable Compensation Act. Complaints before Canadian Human Rights Commission 396. (1) The following complaints with respect to employees that are before the Canadian Human Rights Commission on the day on which this Act receives royal assent, or that are filed with that Commission during the period beginning on that day and ending on the day on which section 399 comes into force, shall, despite section 44 of the Canadian Human Rights Act, without delay, be referred by the Commission to the Board: (a) complaints based on section 7 or 10 of the Canadian Human Rights Act, if the complaint is in respect of the employer establishing or maintaining differences in wages between male and female employees; and (b) complaints based on section 11 of the Canadian Human Rights Act. Application of this section (2) The complaints referred to in subsection (1) shall be dealt with by the Board as required by this section. Powers of Board (3) The Board has, in relation to a complaint referred to it, in addition to the powers conferred on it under the Public Service Labour Relations Act, the power to interpret and apply sections 7, 10 and 11 of the Canadian Human Rights Act, and the Equal Wages Guidelines, 1986, in respect of employees, even after the coming into force of section 399. Summary examination (4) The Board shall review the complaint in a summary way and shall refer it to the employer that is the subject of the complaint, or to the employer that is the subject of the complaint and the bargaining agent of the employees who filed the complaint, as the Board considers appropriate, unless it appears to the Board that the complaint is trivial, frivolous or vexatious or was made in bad faith. Exécution du b Power to assist (5) If the Board refers a complaint under subsection (4) to an employer, or to an employer and a bargaining agent, it may assist them in resolving any matters relating to the complaint by any means that it considers appropriate. Hearing (6) If the employer, or the employer and the bargaining agent, as the case may be, do not resolve the matters relating to the complaint within 180 days after the complaint is referred to them, or any longer period or periods that may be authorized by the Board, the Board shall schedule a hearing. Procedure (7) The Board shall determine its own procedure but shall give full opportunity to the employer, or the employer and the bargaining agent, as the case may be, to present evidence and make submissions to it. Decision (8) The Board shall make a decision in writing in respect of the complaint and send a copy of its decision with the reasons for it to the employer, or the employer and the bargaining agent, as the case may be. Restriction (9) The Board has, in relation to complaints referred to in this section, the power to make any order that a member or panel may make under section 53 of the Canadian Human Rights Act, except that no monetary remedy may be granted by the Board in respect of the complaint other than a lump sum payment, and the payment may be only in respect of a period that ends on or before the day on which section 394 comes into force. Complaints before Canadian Human Rights Tribunal 397. (1) Subject to subsections (2) and (3), the Canadian Human Rights Tribunal shall inquire into the following complaints with respect to employees that are before it on the day on which this Act receives royal assent: (a) complaints based on section 7 or 10 of the Canadian Human Rights Act, if the complaint is in respect of the employer establishing or maintaining differences in wages between male and female employees; and C. 2 Budget Implem (b) complaints based on section 11 of the Canadian Human Rights Act. Powers of Tribunal (2) If section 399 is in force when the Canadian Human Rights Tribunal inquires into a complaint referred to in subsection (1), (a) complaints referred to in paragraph (1)(a) shall be dealt with as if sections 7 and 10 of the Canadian Human Rights Act still applied to those employees; and (b) complaints referred to in paragraph (1)(b) shall be dealt with as if section 11 of the Canadian Human Rights Act and the Equal Wage Guidelines, 1986 still applied to those employees. Limitation (3) No monetary remedy may be granted by the Canadian Human Rights Tribunal in respect of a complaint referred to in subsection (1) other than a lump sum payment, and the payment may only be in respect of a period that ends on or before the day on which section 394 comes into force. Application 398. Sections 30 and 33 of the Public Sector Equitable Compensation Act and sections 396 and 397 apply despite any provision of the Expenditure Restraint Act. CONSEQUENTIAL AMENDMENTS R.S., c. H-6 Canadian Human Rights Act 399. The Canadian Human Rights Act is amended by adding the following after section 40.1: Non-application of sections 7, 10 and 11 40.2 The Commission does not have jurisdiction to deal with complaints made against an employer within the meaning of the Public Sector Equitable Compensation Act alleging that (a) the employer has engaged in a discriminatory practice referred to in section 7 or 10, if the complaint is in respect of the employer establishing or maintaining differences in wages between male and female employees; or (b) the employer has engaged in a discriminatory practice referred to in section 11. 2009 2003, c. 22, s. 2 Exécution du b Public Service Labour Relations Act 400. Section 13 of the Public Service Labour Relations Act is replaced by the following: Mandate 13. The Board’s mandate is to provide adjudication services, mediation services and compensation analysis and research services in accordance with this Act and the Public Sector Equitable Compensation Act. 401. Subsection 208(3) of the Act is replaced by the following: Limitation (3) An employee may not present an individual grievance in respect of any matter related to equal pay for work of equal value or any other matter referred to in the Public Sector Equitable Compensation Act. 402. Subsection 215(5) of the Act is replaced by the following: Limitation (5) A bargaining agent may not present a group grievance in respect of any matter related to equal pay for work of equal value or any other matter referred to in the Public Sector Equitable Compensation Act. 403. Subsection 220(3) of the Act is replaced by the following: Limitation (3) Neither the employer nor a bargaining agent may present a policy grievance in respect of any matter related to equal pay for work of equal value or any other matter referred to in the Public Sector Equitable Compensation Act. 404. Paragraph 226(1)(g) of the Act is replaced by the following: (g) interpret and apply the Canadian Human Rights Act and any other Act of Parliament relating to employment matters, other than the provisions of the Canadian Human Rights Act related to the right to equal pay for work of equal value and the Public Sector Equitable Compensation Act, whether or not C. 2 Budget Implem there is a conflict between the Act being interpreted and applied and the collective agreement, if any; 405. Subsection 251(1) of the Act is replaced by the following: Obligation to prepare 251. (1) As soon as feasible after the end of each fiscal year, the Board must prepare and submit to the Minister a report on the administration of this Act, and on its activities under the Public Sector Equitable Compensation Act, during the year, including a summary of the reports that it has received under that Act during that year. COMING INTO FORCE Order in council 406. Sections 394 and 399 to 405 come into force on a day to be fixed by order of the Governor in Council. PART 12 R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19 COMPETITION ACT AMENDMENTS TO THE ACT 2000, c. 15, s. 11 407. Section 4.1 of the Competition Act is repealed. 408. Subsection 5(1) of the Act is replaced by the following: Underwriters 5. (1) Section 45 does not apply in respect of an agreement or arrangement between persons who are members of a class of persons who ordinarily engage in the business of dealing in securities or between such persons and the issuer of a specific security, in the case of a primary distribution, or the vendor of a specific security, in the case of a secondary distribution, if the agreement or arrangement has a reasonable relationship to the underwriting of a specific security. 1999, c. 2, s. 11(4) 409. Subsection 34(6) of the Act is replaced by the following: Exécution du b Punishment for disobedience (6) A court may punish any person who contravenes an order made under this section by a fine in the discretion of the court or by imprisonment for a term not exceeding five years. R.S., c. 19 (2nd Supp.), ss. 30 and 31; 1991, c. 47, s. 714 410. Sections 45 and 45.1 of the Act are replaced by the following: Conspiracies, agreements or arrangements between competitors 45. (1) Every person commits an offence who, with a competitor of that person with respect to a product, conspires, agrees or arranges (a) to fix, maintain, increase or control the price for the supply of the product; (b) to allocate sales, territories, customers or markets for the production or supply of the product; or (c) to fix, maintain, control, prevent, lessen or eliminate the production or supply of the product. Penalty (2) Every person who commits an offence under subsection (1) is guilty of an indictable offence and liable on conviction to imprisonment for a term not exceeding 14 years or to a fine not exceeding $25 million, or to both. Evidence of conspiracy, agreement or arrangement (3) In a prosecution under subsection (1), the court may infer the existence of a conspiracy, agreement or arrangement from circumstantial evidence, with or without direct evidence of communication between or among the alleged parties to it, but, for greater certainty, the conspiracy, agreement or arrangement must be proved beyond a reasonable doubt. Defence (4) No person shall be convicted of an offence under subsection (1) in respect of a conspiracy, agreement or arrangement that would otherwise contravene that subsection if (a) that person establishes, on a balance of probabilities, that (i) it is ancillary to a broader or separate agreement or arrangement that includes the same parties, and C. 2 Budget Implem (ii) it is directly related to, and reasonably necessary for giving effect to, the objective of that broader or separate agreement or arrangement; and (b) the broader or separate agreement or arrangement, considered alone, does not contravene that subsection. Defence (5) No person shall be convicted of an offence under subsection (1) in respect of a conspiracy, agreement or arrangement that relates only to the export of products from Canada, unless the conspiracy, agreement or arrangement (a) has resulted in or is likely to result in a reduction or limitation of the real value of exports of a product; (b) has restricted or is likely to restrict any person from entering into or expanding the business of exporting products from Canada; or (c) is in respect only of the supply of services that facilitate the export of products from Canada. Exception (6) Subsection (1) does not apply if the conspiracy, agreement or arrangement (a) is entered into only by companies each of which is, in respect of every one of the others, an affiliate; or (b) is between federal financial institutions and is described in subsection 49(1). Common law principles — regulated conduct (7) The rules and principles of the common law that render a requirement or authorization by or under another Act of Parliament or the legislature of a province a defence to a prosecution under subsection 45(1) of this Act, as it read immediately before the coming into force of this section, continue in force and apply in respect of a prosecution under subsection (1). 2009 Definitions “competitor” « concurrent » “price” « prix » Where application made under section 76, 79, 90.1 or 92 Exécution du b (8) The following definitions apply in this section. “competitor” includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of a conspiracy, agreement or arrangement to do anything referred to in paragraphs (1)(a) to (c). “price” includes any discount, rebate, allowance, price concession or other advantage in relation to the supply of a product. 45.1 No proceedings may be commenced under subsection 45(1) against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which an order against that person is sought by the Commissioner under section 76, 79, 90.1 or 92. 411. (1) Paragraph 47(1)(a) of the Act is replaced by the following: (a) an agreement or arrangement between or among two or more persons whereby one or more of those persons agrees or undertakes not to submit a bid or tender in response to a call or request for bids or tenders, or agrees or undertakes to withdraw a bid or tender submitted in response to such a call or request, or (2) The portion of subsection 47(1) of the Act after paragraph (b) is replaced by the following: where the agreement or arrangement is not made known to the person calling for or requesting the bids or tenders at or before the time when any bid or tender is submitted or withdrawn, as the case may be, by any person who is a party to the agreement or arrangement. (3) Subsection 47(2) of the Act is replaced by the following: Bid-rigging (2) Every person who is a party to bidrigging is guilty of an indictable offence and liable on conviction to a fine in the discretion of the court or to imprisonment for a term not exceeding 14 years, or to both. C. 2 Budget Implem 412. Section 49 of the Act is amended by adding the following after subsection (3): Where proceedings commenced under section 76, 79, 90.1 or 92 (4) No proceedings may be commenced under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which an order against that person is sought by the Commissioner under section 76, 79, 90.1 or 92. 1999, c. 31, s. 50(F) 413. Sections 50 and 51 of the Act are repealed. 1999, c. 2, s. 12(1) 414. (1) Subsection 52(1.1) of the Act is replaced by the following: Proof of certain matters not required (1.1) For greater certainty, in establishing that subsection (1) was contravened, it is not necessary to prove that (a) any person was deceived or misled; (b) any member of the public to whom the representation was made was within Canada; or (c) the representation was made in a place to which the public had access. (2) Paragraph 52(5)(a) of the Act is replaced by the following: (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding 14 years, or to both; or 1999, c. 2, s. 13 415. Paragraph 52.1(9)(a) of the Act is replaced by the following: (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding 14 years, or to both; or 2002, c. 16, s. 6 416. Paragraph 53(6)(a) of the Act is replaced by the following: (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding 14 years, or to both; or 2009 R.S., c. 19 (2nd Supp.), s. 36; 1990, c. 37, s. 30; 1999, c. 31, s. 51(F) Exécution du b 417. Section 61 of the Act is repealed. 418. Subsection 64(2) of the Act is replaced by the following: Offence and punishment (2) Every person who contravenes subsection (1) is guilty of an offence and (a) liable on conviction on indictment to a fine in the discretion of the court or to imprisonment for a term not exceeding 10 years, or to both; or (b) liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both. R.S., c. 19 (2nd Supp.), s. 38; 1999, c. 2, s. 18 419. Subsections 65(1) to (3) of the Act are replaced by the following: Contravention of Part II provisions 65. (1) Every person who, without good and sufficient cause, the proof of which lies on that person, fails to comply with an order made under section 11 and every person who contravenes subsection 15(5) or 16(2) is guilty of an offence and (a) liable on conviction on indictment to a fine in the discretion of the court or to imprisonment for a term not exceeding two years, or to both; or (b) liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both. Failure to supply information (2) Every person who, without good and sufficient cause, the proof of which lies on that person, contravenes subsection 114(1) is guilty of an offence and liable on conviction on indictment or on summary conviction to a fine not exceeding $50,000. Destruction or alteration of records or things (3) Every person who destroys or alters, or causes to be destroyed or altered, any record or other thing that is required to be produced under section 11 or in respect of which a warrant is issued under section 15 is guilty of an offence and C. 2 Budget Implem (a) liable on conviction on indictment to a fine in the discretion of the court or to imprisonment for a term not exceeding 10 years, or to both; or (b) liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both. 1999, c. 2, s. 19 420. The portion of section 66 of the Act before paragraph (a) is replaced by the following: Contravention of order under Part VII.1 or VIII 66. Every person who contravenes an order made under Part VII.1, except paragraphs 74.1(1)(c) and (d), or under Part VIII, except subsection 79(3.1), is guilty of an offence and liable 2002, c. 8, par. 198(c), c. 16, s. 8 421. Subsection 73(1) of the Act is replaced by the following: Jurisdiction of Federal Court 73. (1) Subject to this section, the Attorney General of Canada may institute and conduct any prosecution or other proceedings under section 34, any of sections 45 to 49 or, if the proceedings are on indictment, under section 52, 52.1, 53, 55, 55.1 or 66, in the Federal Court, and for the purposes of the prosecution or other proceedings, the Federal Court has all the powers and jurisdiction of a superior court of criminal jurisdiction under the Criminal Code and under this Act. 1999, c. 2, s. 22 422. Subsection 74.01(6) of the Act is repealed. 423. Section 74.03 of the Act is amended by adding the following after subsection (3): Certain matters need not be established (4) For greater certainty, in proceedings under sections 74.01 and 74.02, it is not necessary to establish that (a) any person was deceived or misled; Exécution du b (b) any member of the public to whom the representation was made was within Canada; or (c) the representation was made in a place to which the public had access. General impression to be considered (5) In proceedings under sections 74.01 and 74.02, the general impression conveyed by a representation as well as its literal meaning shall be taken into account in determining whether or not the person who made the representation engaged in the reviewable conduct. 1999, c. 2, s. 22 424. (1) The portion of subsection 74.1(1) of the French version of the Act before paragraph (a) is replaced by the following: Décision et ordonnance 74.1 (1) Le tribunal qui conclut, à la suite d’une demande du commissaire, qu’une personne a ou a eu un comportement susceptible d’examen visé à la présente partie peut ordonner à celle-ci : 1999, c. 2, s. 22 (2) Subsection 74.1(1) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following: (c) to pay an administrative monetary penalty, in any manner that the court specifies, in an amount not exceeding (i) in the case of an individual, $750,000 a n d , f o r e a c h s u b s e q u e n t o r d e r, $1,000,000, or (ii) in the case of a corporation, $10,000,000 and, for each subsequent order, $15,000,000; and (d) in the case of conduct that is reviewable under paragraph 74.01(1)(a), to pay an amount, not exceeding the total of the amounts paid to the person for the products in respect of which the conduct was engaged in, to be distributed among the persons to whom the products were sold — except wholesalers, retailers or other distributors, to the extent that they have resold or distributed the products — in any manner that the court considers appropriate. C. 2 1999, c. 2, s. 22 (3) Subsections 74.1(3) and (4) of the Act are replaced by the following: Saving (3) No order may be made against a person under paragraph (1)(b), (c) or (d) if the person establishes that the person exercised due diligence to prevent the reviewable conduct from occurring. Purpose of order (4) The terms of an order made against a person under paragraph (1)(b), (c) or (d) shall be determined with a view to promoting conduct by that person that is in conformity with the purposes of this Part and not with a view to punishment. 1999, c. 2, s. 22 (4) Paragraphs 74.1(5)(f) to (h) of the Act are replaced by the following: Budget Implem (f) the effect on competition in the relevant market; (g) the gross revenue from sales affected by the conduct; (h) the financial position of the person against whom the order is made; (i) the history of compliance with this Act by the person against whom the order is made; (j) any decision of the court in relation to an application for an order under paragraph (1)(d); (k) any other amounts paid or ordered to be paid by the person against whom the order is made as a refund or as restitution or other compensation in respect of the conduct; and (l) any other relevant factor. (5) Section 74.1 of the Act is amended by adding the following after subsection (6): Amounts already paid (7) In determining an amount to be paid under paragraph (1)(d), the court shall take into account any other amounts paid or ordered to be paid by the person against whom the order is made as a refund or as restitution or other compensation in respect of the products. 2009 Implementation of the order Exécution du b (8) The court may specify in an order made under paragraph (1)(d) any terms that it considers necessary for the order’s implementation, including terms (a) specifying how the payment is to be administered; (b) respecting the appointment of an administrator to administer the payment and specifying the terms of administration; (c) requiring the person against whom the order is made to pay the administrative costs related to the payment as well as the fees to be paid to an administrator; (d) requiring that potential claimants be notified in the time and manner specified by the court; (e) specifying the time and manner for making claims; (f) specifying the conditions for the eligibility of claimants, including conditions relating to the return of the products to the person against whom the order is made; and (g) providing for the manner in which, and the terms on which, any amount of the payment that remains unclaimed or undistributed is to be dealt with. Variation of terms (9) On application by the Commissioner or the person against whom the order is made, the court may vary any term that is specified under subsection (8). 425. The Act is amended by adding the following after section 74.11: Interim injunction 74.111 (1) If, on application by the Commissioner, a court finds a strong prima facie case that a person is engaging in or has engaged in conduct that is reviewable under paragraph 74.01(1)(a), and the court is satisfied that the person owns or has possession or control of articles within the jurisdiction of the court and is disposing of or is likely to dispose of them by any means, and that the disposal of the articles will substantially impair the enforceability of an order made under paragraph 74.1(1)(d), the court may issue an interim injunction forbidding the person or any other person from disposing C. 2 Budget Implem of or otherwise dealing with the articles, other than in the manner and on the terms specified in the injunction. Statement to be included (2) Any application for an injunction under subsection (1) shall include a statement that the Commissioner has applied for an order under paragraph 74.1(1)(d), or that the Commissioner intends to apply for an order under that paragraph if the Commissioner applies for an order under paragraph 74.1(1)(a). Duration (3) Subject to subsection (6), the injunction has effect, or may be extended on application by the Commissioner, for any period that the court considers sufficient to meet the circumstances of the case. Notice of application by Commissioner (4) Subject to subsection (5), at least 48 hours’ notice of an application referred to in subsection (1) or (3) shall be given by or on behalf of the Commissioner to the person in respect of whom the injunction or extension is sought. Ex parte application (5) The court may proceed ex parte with an application made under subsection (1) if it is satisfied that subsection (4) cannot reasonably be complied with or where the urgency of the situation is such that service of the notice in accordance with subsection (4) might defeat the purpose of the injunction or would otherwise not be in the public interest. Duration of ex parte injunction (6) An injunction issued ex parte has effect for the period that is specified in it, not exceeding seven days unless, on further application made on notice as provided in subsection (4), the court extends the injunction for any additional period that it considers sufficient. Submissions to set aside (7) On application of the person against whom an ex parte injunction is made, the court may make an order setting aside the injunction or varying it subject to any conditions that it considers appropriate. Exécution du b 2009 Duty of Commissioner (8) If an injunction issued under this section is in effect, the Commissioner shall proceed as expeditiously as possible to complete any inquiry under section 10 arising out of the conduct in respect of which the injunction was issued. Definitions (9) The following definitions apply in this section. “dispose” « disposer » “security interest” « garantie » R.S., c. 19 (2nd Supp.), s. 45; 1999, c. 2, par. 37(x) “dispose”, in relation to an article, includes removing it from the jurisdiction of the court, depleting its value, leasing it to another person or creating any security interest in it. “security interest” means any interest or right in property that secures payment or performance of an obligation and includes an interest or right created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, security, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for. 426. Section 76 of the Act and the heading before it are replaced by the following: Price Maintenance Price maintenance 76. (1) On application by the Commissioner or a person granted leave under section 103.1, the Tribunal may make an order under subsection (2) if the Tribunal finds that (a) a person referred to in subsection (3) directly or indirectly (i) by agreement, threat, promise or any like means, has influenced upward, or has discouraged the reduction of, the price at which the person’s customer or any other person to whom the product comes for resale supplies or offers to supply or advertises a product within Canada, or (ii) has refused to supply a product to or has otherwise discriminated against any person or class of persons engaged in business in Canada because of the low pricing policy of that other person or class of persons; and C. 2 Budget Implem (b) the conduct has had, is having or is likely to have an adverse effect on competition in a market. Order (2) The Tribunal may make an order prohibiting the person referred to in subsection (3) from continuing to engage in the conduct referred to in paragraph (1)(a) or requiring them to accept another person as a customer within a specified time on usual trade terms. Persons subject to order (3) An order may be made under subsection (2) against a person who (a) is engaged in the business of producing or supplying a product; (b) extends credit by way of credit cards or is otherwise engaged in a business that relates to credit cards; or (c) has the exclusive rights and privileges conferred by a patent, trade-mark, copyright, registered industrial design or registered integrated circuit topography. Where no order may be made (4) No order may be made under subsection (2) if the person referred to in subsection (3) and the customer or other person referred to in subparagraph (1)(a)(i) or (ii) are principal and agent or mandator and mandatary, or are affiliated corporations or directors, agents, mandataries, officers or employees of (a) the same corporation, partnership or sole proprietorship; or (b) corporations, partnerships or sole proprietorships that are affiliated. Suggested retail price (5) For the purposes of this section, a suggestion by a producer or supplier of a product of a resale price or minimum resale price for the product, however arrived at, is proof that the person to whom the suggestion is made is influenced in accordance with the suggestion, in the absence of proof that the producer or supplier, in so doing, also made it clear to the person that they were under no obligation to accept the suggestion and would in Exécution du b no way suffer in their business relations with the producer or supplier or with any other person if they failed to accept the suggestion. Advertised price (6) For the purposes of this section, the publication by a producer or supplier of a product, other than a retailer, of an advertisement that mentions a resale price for the product is proof that the producer or supplier is influencing upward the selling price of any person to whom the product comes for resale, unless the price is expressed in a way that makes it clear to any person whose attention the advertisement comes to that the product may be sold at a lower price. Exception (7) Subsections (5) and (6) do not apply to a price that is affixed or applied to a product or its package or container. Refusal to supply (8) If, on application by the Commissioner or a person granted leave under section 103.1, the Tribunal finds that any person, by agreement, threat, promise or any like means, has induced a supplier, whether within or outside Canada, as a condition of doing business with the supplier, to refuse to supply a product to a particular person or class of persons because of the low pricing policy of that person or class of persons, and that the conduct of inducement has had, is having or is likely to have an adverse effect on competition in a market, the Tribunal may make an order prohibiting the person from continuing to engage in the conduct or requiring the person to do business with the supplier on usual trade terms. Where no order may be made (9) No order may be made under subsection (2) in respect of conduct referred to in subparagraph (1)(a)(ii) if the Tribunal is satisfied that the person or class of persons referred to in that subparagraph, in respect of products supplied by the person referred to in subsection (3), (a) was making a practice of using the products as loss leaders, that is to say, not for the purpose of making a profit on those products but for purposes of advertising; C. 2 Budget Implem (b) was making a practice of using the products not for the purpose of selling them at a profit but for the purpose of attracting customers in the hope of selling them other products; (c) was making a practice of engaging in misleading advertising; or (d) made a practice of not providing the level of servicing that purchasers of the products might reasonably expect. Inferences (10) In considering an application by a person granted leave under section 103.1, the Tribunal may not draw any inference from the fact that the Commissioner has or has not taken any action in respect of the matter raised by the application. Where proceedings commenced under section 45, 49, 79 or 90.1 (11) No application may be made under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which (a) proceedings have been commenced against that person under section 45 or 49; or (b) an order against that person is sought under section 79 or 90.1. Definition of “trade terms” (12) For the purposes of this section, “trade terms” means terms in respect of payment, units of purchase and reasonable technical and servicing requirements. 2000, c. 15, s. 13(2) 427. (1) Subsection 78(1) of the Act is amended by adding the word “and” at the end of paragraph (h) and by repealing paragraphs (j) and (k). 2000, c. 15, s. 13(3) (2) Subsection 78(2) of the Act is repealed. 2002, c. 16, s. 11.4 428. (1) Subsections 79(3.1) to (3.3) of the Act are replaced by the following: Administrative monetary penalty (3.1) If the Tribunal makes an order against a person under subsection (1) or (2), it may also order them to pay, in any manner that the Exécution du b Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000,000 and, for each subsequent order under either of those subsections, an amount not exceeding $15,000,000. Aggravating or mitigating factors (3.2) In determining the amount of an administrative monetary penalty, the Tribunal shall take into account any evidence of the following: (a) the effect on competition in the relevant market; (b) the gross revenue from sales affected by the practice; (c) any actual or anticipated profits affected by the practice; (d) the financial position of the person against whom the order is made; (e) the history of compliance with this Act by the person against whom the order is made; and (f) any other relevant factor. Purpose of order (3.3) The purpose of an order made against a person under subsection (3.1) is to promote practices by that person that are in conformity with the purposes of this section and not to punish that person. R.S., c. 19 (2nd Supp.), s. 45 (2) Subsection 79(7) of the Act is replaced by the following: Where proceedings commenced under section 45, 49, 76, 90.1 or 92 (7) No application may be made under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which (a) proceedings have been commenced against that person under section 45 or 49; or (b) an order against that person is sought by the Commissioner under section 76, 90.1 or 92. R.S., c. 19 (2nd Supp.), s. 45 429. Section 90 of the Act is replaced by the following: C. 2 Non-application of sections 45, 77 and 90.1 90. Section 45, section 77 as it applies to exclusive dealing, and section 90.1 do not apply in respect of a specialization agreement, or any modification of such an agreement, that is registered. Budget Implem AGREEMENTS OR ARRANGEMENTS THAT PREVENT OR LESSEN COMPETITION SUBSTANTIALLY Order 90.1 (1) If, on application by the Commissioner, the Tribunal finds that an agreement or arrangement — whether existing or proposed — between persons two or more of whom are competitors prevents or lessens, or is likely to prevent or lessen, competition substantially in a market, the Tribunal may make an order (a) prohibiting any person — whether or not a party to the agreement or arrangement — from doing anything under the agreement or arrangement; or (b) requiring any person — whether or not a party to the agreement or arrangement — with the consent of that person and the Commissioner, to take any other action. Factors to be considered (2) In deciding whether to make the finding referred to in subsection (1), the Tribunal may have regard to the following factors: (a) the extent to which foreign products or foreign competitors provide or are likely to provide effective competition to the businesses of the parties to the agreement or arrangement; (b) the extent to which acceptable substitutes for products supplied by the parties to the agreement or arrangement are or are likely to be available; (c) any barriers to entry into the market, including (i) tariff and non-tariff barriers to international trade, (ii) interprovincial barriers to trade, and (iii) regulatory control over entry; (d) any effect of the agreement or arrangement on the barriers referred to in paragraph (c); Exécution du b (e) the extent to which effective competition remains or would remain in the market; (f) any removal of a vigorous and effective competitor that resulted from the agreement or arrangement, or any likelihood that the agreement or arrangement will or would result in the removal of such a competitor; (g) the nature and extent of change and innovation in any relevant market; and (h) any other factor that is relevant to competition in the market that is or would be affected by the agreement or arrangement. Evidence (3) For the purpose of subsections (1) and (2), the Tribunal shall not make the finding solely on the basis of evidence of concentration or market share. Exception where gains in efficiency (4) The Tribunal shall not make an order under subsection (1) if it finds that the agreement or arrangement has brought about or is likely to bring about gains in efficiency that will be greater than, and will offset, the effects of any prevention or lessening of competition that will result or is likely to result from the agreement or arrangement, and that the gains in efficiency would not have been attained if the order had been made or would not likely be attained if the order were made. Restriction (5) For the purposes of subsection (4), the Tribunal shall not find that the agreement or arrangement has brought about or is likely to bring about gains in efficiency by reason only of a redistribution of income between two or more persons. Factors to be considered (6) In deciding whether the agreement or arrangement is likely to bring about the gains in efficiency described in subsection (4), the Tribunal shall consider whether such gains will result in (a) a significant increase in the real value of exports; or (b) a significant substitution of domestic products for imported products. C. 2 Exception (7) Subsection (1) does not apply if the agreement or arrangement is entered into, or would be entered into, only by companies each of which is, in respect of every one of the others, an affiliate. Exception (8) Subsection (1) does not apply if the agreement or arrangement relates only to the export of products from Canada, unless the agreement or arrangement Budget Implem (a) has resulted in or is likely to result in a reduction or limitation of the real value of exports of a product; (b) has restricted or is likely to restrict any person from entering into or expanding the business of exporting products from Canada; or (c) has prevented or lessened or is likely to prevent or lessen competition substantially in the supply of services that facilitate the export of products from Canada. Exception (9) The Tribunal shall not make an order under subsection (1) in respect of (a) an agreement or arrangement between federal financial institutions, as defined in subsection 49(3), in respect of which the Minister of Finance has certified to the Commissioner (i) the names of the parties to the agreement or arrangement, and (ii) the Minister of Finance’s request for or approval of the agreement or arrangement for the purposes of financial policy; (b) an agreement or arrangement that constitutes a merger or proposed merger under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act in respect of which the Minister of Finance has certified to the Commissioner Exécution du b (i) the names of the parties to the agreement or arrangement, and (ii) the Minister of Finance’s opinion that the merger is in the public interest, or that it would be in the public interest, taking into account any terms and conditions that may be imposed under those Acts; or (c) an agreement or arrangement that constitutes a merger or proposed merger approved under subsection 53.2(7) of the Canada Transportation Act in respect of which the Minister of Transport has certified to the Commissioner the names of the parties to the agreement or arrangement. Where proceedings commenced under section 45, 49, 76, 79 or 92 (10) No application may be made under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which (a) proceedings have been commenced against that person under section 45 or 49; or (b) an order against that person is sought by the Commissioner under section 76, 79 or 92. Definition of “competitor” (11) In subsection (1), “competitor” includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of the agreement or arrangement. R.S., c. 19 (2nd Supp.), s. 45 430. Sections 97 and 98 of the Act are replaced by the following: Limitation period 97. No application may be made under section 92 in respect of a merger more than one year after the merger has been substantially completed. Where proceedings commenced under section 45, 49, 79 or 90.1 98. No application may be made under section 92 against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which (a) proceedings have been commenced against that person under section 45 or 49; or (b) an order against that person is sought under section 79 or 90.1. C. 2 2002, c. 16, s. 12 431. (1) Subsections 103.1(1) and (2) of the Act are replaced by the following: Leave to make application under section 75, 76 or 77 103.1 (1) Any person may apply to the Tribunal for leave to make an application under section 75, 76 or 77. The application for leave must be accompanied by an affidavit setting out the facts in support of the person’s application under that section. Notice (2) The applicant must serve a copy of the application for leave on the Commissioner and any person against whom the order under section 75, 76 or 77, as the case may be, is sought. 2002, c. 16, s. 12 (2) Paragraph 103.1(3)(b) of the Act is replaced by the following: Budget Implem (b) was the subject of an inquiry that has been discontinued because of a settlement between the Commissioner and the person against whom the order under section 75, 76 or 77, as the case may be, is sought. 2002, c. 16, s. 12 (3) Subsection 103.1(4) of the Act is replaced by the following: Application discontinued (4) The Tribunal shall not consider an application for leave respecting a matter described in paragraph (3)(a) or (b) or a matter that is the subject of an application already submitted to the Tribunal by the Commissioner under section 75, 76 or 77. 2002, c. 16, s. 12 (4) Subsection 103.1(8) of the Act is replaced by the following: Granting leave to make application under section 76 (7.1) The Tribunal may grant leave to make an application under section 76 if it has reason to believe that the applicant is directly affected by any conduct referred to in that section that could be subject to an order under that section. Exécution du b Time and conditions for making application (8) The Tribunal may set the time within which and the conditions subject to which an application under section 75, 76 or 77 must be made. The application must be made no more than one year after the practice or conduct that is the subject of the application has ceased. 2002, c. 16, s. 12 (5) Subsection 103.1(10) of the Act is replaced by the following: Limitation (10) The Commissioner may not make an application for an order under section 75, 76, 77 or 79 on the basis of the same or substantially the same facts as are alleged in a matter for which the Tribunal has granted leave under subsection (7) or (7.1), if the person granted leave has already applied to the Tribunal under section 75, 76 or 77. 2002, c. 16, s. 12 432. Section 103.2 of the Act is replaced by the following: Intervention by Commissioner 103.2 If a person granted leave under subsection 103.1(7) or (7.1) makes an application under section 75, 76 or 77, the Commissioner may intervene in the proceedings. 2000, c. 15, s. 15; 2002, c. 16, s. 13.1; 2003, c. 22, par. 224(z.18)(E) 433. Section 104.1 of the Act is repealed. 2002, c. 16, s. 14 434. Subsection 105(1) of the Act is replaced by the following: Consent agreement 105. (1) The Commissioner and a person in respect of whom the Commissioner has applied or may apply for an order under this Part, other than an interim order under section 103.3, may sign a consent agreement. 2002, c. 16, s. 14 435. The portion of subsection 106(1) of the Act before paragraph (a) is replaced by the following: Rescission or variation of consent agreement or order 106. (1) The Tribunal may rescind or vary a consent agreement or an order made under this Part other than an order under section 103.3 or a consent agreement under section 106.1, on application by the Commissioner or the person C. 2 Budget Implem who consented to the agreement, or the person against whom the order was made, if the Tribunal finds that R.S., c. 19 (2nd Supp.), s. 45; 1999, c. 2, s. 27 436. Subsections 110(2) to (6) of the Act are replaced by the following: Acquisition of assets (2) Subject to sections 111 and 113, this Part applies in respect of a proposed acquisition of any of the assets in Canada of an operating business if the aggregate value of those assets, determined as of the time and in the manner that is prescribed, or the gross revenues from sales in or from Canada generated from those assets, determined for the annual period and in the manner that is prescribed, would exceed the amount determined under subsection (7) or (8), as the case may be. Acquisition of shares (3) Subject to sections 111 and 113, this Part applies in respect of a proposed acquisition of voting shares of a corporation that carries on an operating business or controls a corporation that carries on an operating business (a) if (i) the aggregate value of the assets in Canada, determined as of the time and in the manner that is prescribed, that are owned by the corporation or by corporations controlled by that corporation, other than assets that are shares of any of those corporations, would exceed the amount determined under subsection (7) or (8), as the case may be, or (ii) the gross revenues from sales in or from Canada, determined for the annual period and in the manner that is prescribed, generated from the assets referred to in subparagraph (i) would exceed the amount determined under subsection (7) or (8), as the case may be; and (b) if, as a result of the proposed acquisition of the voting shares, the person or persons acquiring the shares, together with their affiliates, would own voting shares of the Exécution du b corporation that in the aggregate carry more than the following percentages of the votes attached to all the corporation’s outstanding voting shares: (i) 20%, if any of the corporation’s voting shares are publicly traded, (ii) 35%, if none of the corporation’s voting shares are publicly traded, or (iii) 50%, if the person or persons already own more than the percentage set out in subparagraph (i) or (ii), as the case may be, before the proposed acquisition. Amalgamation (4) Subject to subsection (4.1) and section 113, this Part applies in respect of a proposed amalgamation of two or more corporations if one or more of those corporations carries on an operating business, or controls a corporation that carries on an operating business, where (a) the aggregate value of the assets in Canada, determined as of the time and in the manner that is prescribed, that would be owned by the continuing corporation that would result from the amalgamation or by corporations controlled by the continuing corporation, other than assets that are shares of any of those corporations, would exceed the amount determined under subsection (7) or (8), as the case may be; or (b) the gross revenues from sales in or from Canada, determined for the annual period and in the manner that is prescribed, generated C. 2 Budget Implem from the assets referred to in paragraph (a) would exceed the amount determined under subsection (7) or (8), as the case may be. General limit relating to parties to an amalgamation (4.1) This Part does not apply in respect of a proposed amalgamation of two or more corporations if one or more of those corporations carries on an operating business or controls a corporation that carries on an operating business, unless each of at least two of the amalgamating corporations, together with its affiliates, (a) has assets in Canada, determined as of the time and in the manner that is prescribed, that exceed in aggregate value the amount determined under subsection (7) or (8), as the case may be; or (b) has gross revenues from sales in, from or into Canada, determined for the annual period and in the manner that is prescribed, that exceed in aggregate value the amount determined under subsection (7) or (8), as the case may be. Combination (5) Subject to sections 112 and 113, this Part applies in respect of a proposed combination of two or more persons to carry on business otherwise than through a corporation if one or more of those persons proposes to contribute to the combination assets that form all or part of an operating business carried on by those persons, or corporations controlled by those persons, and if (a) the aggregate value of the assets in Canada, determined as of the time and in the manner that is prescribed, that are the subject-matter of the combination would exceed the amount determined under subsection (7) or (8), as the case may be; or Exécution du b (b) the gross revenues from sales in or from Canada, determined for the annual period and in the manner that is prescribed, generated from the assets referred to in paragraph (a) would exceed the amount determined under subsection (7) or (8), as the case may be. Combination (6) Subject to sections 111, 112 and 113, this Part applies in respect of a proposed acquisition of an interest in a combination that carries on an operating business otherwise than through a corporation (a) if (i) the aggregate value of the assets in Canada, determined as of the time and in the manner that is prescribed, that are the subject-matter of the combination would exceed the amount determined under subsection (7) or (8), as the case may be, or (ii) the gross revenues from sales in or from Canada, determined for the annual period and in the manner that is prescribed, generated from the assets referred to in subparagraph (i) would exceed the amount determined under subsection (7) or (8), as the case may be; and (b) if, as a result of the proposed acquisition of the interest, the person or persons acquiring the interest, together with their affiliates, would hold an aggregate interest in the combination that entitles the person or persons to receive more than 35% of the profits of the combination, or more than 35% of its assets on dissolution, or, if the person or persons acquiring the interest are already so entitled, to receive more than 50% of such profits or assets. C. 2 Amount for notification (7) In the year in which this subsection comes into force, the amount for the purposes of subsections (2) to (6) is $70,000,000. Amount for notification — subsequent years (8) In any year following the year in which subsection (7) comes into force, the amount for the purposes of any of subsections (2) to (6) is Budget Implem (a) any amount that is prescribed for that subsection; or (b) if no amount has been prescribed for that subsection, (i) the amount determined by the Minister in January of that year by rounding off to the nearest million dollars the amount arrived at by using the formula A × (B / C) where A is the amount for the previous year, B is the average of the Nominal Gross Domestic Products at market prices for the most recent four consecutive quarters, and C is the average of the Nominal Gross Domestic Products at market prices for the four consecutive quarters for the comparable period in the year preceding the year used in calculating B, or (ii) until the Minister has published under subsection (9) an amount for that year determined under subparagraph (i), if the Minister does so at all, the amount for that subsection for the previous year. Publication in Canada Gazette (9) As soon as possible after determining the amount for any particular year, the Minister shall publish the amount in the Canada Gazette. Exécution du b R.S., c. 19 (2nd Supp.), s. 45; 1999, c. 2, s. 31, c. 31, s. 53(F) 437. Subsections 114(1) to (3) of the Act are replaced by the following: Notice of proposed transaction 114. (1) Subject to this Part, the parties to a proposed transaction shall, before the transaction is completed, notify the Commissioner that the transaction is proposed and supply the Commissioner with the prescribed information in accordance with this Part, if (a) a person, or two or more persons pursuant to an agreement or arrangement, propose to acquire assets in the circumstances set out in subsection 110(2), to acquire shares in the circumstances set out in subsection 110(3) or to acquire an interest in a combination in the circumstances set out in subsection 110(6); (b) two or more corporations propose to amalgamate in the circumstances set out in subsection 110(4); or (c) two or more persons propose to form a combination in the circumstances set out in subsection 110(5). Additional information (2) The Commissioner or a person authorized by the Commissioner may, within 30 days after receiving the prescribed information, send a notice to the person who supplied the information requiring them to supply additional information that is relevant to the Commissioner’s assessment of the proposed transaction. Contents of notice (2.1) The notice shall specify the particular additional information or classes of additional information that are to be supplied. Corporation whose shares are acquired (3) If a proposed transaction is an acquisition of shares and the Commissioner receives information supplied under subsection (1) by a party to the transaction, other than the corporation whose shares are being acquired, before receiving such information from the corporation, C. 2 Budget Implem (a) the Commissioner shall immediately notify the corporation that the Commissioner has received from that party the prescribed information; and (b) the corporation shall supply the Commissioner with the prescribed information within 10 days after being notified under paragraph (a). R.S., c. 19 (2nd Supp.), s. 45; 1999, c. 2, par. 37(z.16) 438. Subsection 116(1) of the Act is replaced by the following: Where information cannot be supplied 116. (1) If any of the information required under section 114 is not known or reasonably obtainable, or cannot be supplied because of the privilege that exists in respect of lawyers and notaries and their clients or because of a confidentiality requirement established by law, the person who is supplying the information may, instead of supplying the information, inform the Commissioner under oath or solemn affirmation of the matters in respect of which information has not been supplied and the reason why it has not been supplied. 1999, c. 2, s. 35 439. Section 123 of the Act is replaced by the following: Time when transaction may not proceed 123. (1) A proposed transaction referred to in section 114 shall not be completed before the end of (a) 30 days after the day on which information required under subsection 114(1) has been received by the Commissioner, if the Commissioner has not, within that time, required additional information to be supplied under subsection 114(2); or (b) 30 days after the day on which the information required under subsection 114(2) has been received by the Commissioner, if the Commissioner has within the 30-day period referred to in paragraph (a) required additional information to be supplied under subsection 114(2). Waiving of waiting period (2) A proposed transaction referred to in section 114 may be completed before the end of a period referred to in subsection (1) if, before Exécution du b the end of that period, the Commissioner or a person authorized by the Commissioner notifies the persons who are required to give notice and supply information that the Commissioner does not, at that time, intend to make an application under section 92 in respect of the proposed transaction. Acquisition of voting shares (3) In the case of an acquisition of voting shares to which subsection 114(3) applies, the periods referred to in subsection (1) shall be determined without reference to the day on which the information required under section 114 is received by the Commissioner from the corporation whose shares are being acquired. Failure to comply 123.1 (1) If, on application by the Commissioner, the court determines that a person, without good and sufficient cause, the proof of which lies on the person, has completed or is likely to complete a proposed transaction before the end of the applicable period referred to in section 123, the court may (a) order the person to submit information required under subsection 114(2); (b) issue an interim order prohibiting any person from doing anything that it appears to the court may constitute or be directed toward the completion or implementation of the proposed transaction; (c) in the case of a completed transaction, order any party to the transaction or any other person, in any manner that the court directs, to dissolve the merger or to dispose of assets or shares designated by the court; (d) in the case of a completed transaction, order the person to pay, in any manner that the court specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they have failed to comply with section 123, determined by the court after taking into account any evidence of the following: (i) the person’s financial position, (ii) the person’s history of compliance with this Act, C. 2 Budget Implem (iii) the duration of the period of noncompliance, and (iv) any other relevant factor; or (e) grant any other relief that the court considers appropriate. Purpose of order (2) The terms of an order under paragraph (1)(d) shall be determined with a view to promoting conduct by the person that is in conformity with the purposes of this Part and not with a view to punishment. Unpaid monetary penalty (3) The amount of an administrative monetary penalty imposed under paragraph (1)(d) is a debt due to Her Majesty in right of Canada and may be recovered as such from the person in a court of competent jurisdiction. Definition of “court” (4) In this section, “court” means the Tribunal, the Federal Court or the superior court of a province. TRANSITIONAL PROVISION Agreements or arrangements entered into before royal assent 440. Any party to an agreement or arrangement entered into before the day on which this Act receives royal assent may, within one year after that day, apply under section 124.1 of the Competition Act without payment of any fee for an opinion on the applicability to the agreement or arrangement of section 45 or 90.1 of the Competition Act, as enacted by sections 410 and 429, respectively, as if the agreement or arrangement had not yet been entered into and as if that section 45 or 90.1 were in force. CONSEQUENTIAL AMENDMENTS R.S., c. 19 (2nd Supp.), Part I Competition Tribunal Act 2002, c. 16, s. 19 441. Subsection 11(1) of the Competition Tribunal Act is replaced by the following: Hearing of applications 11. (1) The Chairman of the Tribunal, sitting alone, or a judicial member designated by the Chairman, sitting alone, may hear and dispose Exécution du b of applications under subsection 100(1), section 103.1 or 103.3 or subsection 104(1) or 123.1(1) of the Competition Act and any related matters. R.S., c. C-46 Criminal Code 2004, c. 15, s. 108 442. Subparagraph (c)(i) of the definition “offence” in section 183 of the Criminal Code is replaced by the following: (i) section 45 (conspiracies, agreements or arrangements between competitors), R.S., c. 17 (3rd Supp.) Shipping Conferences Exemption Act, 1987 443. Subsection 4(4) of the Shipping Conferences Exemption Act, 1987 is replaced by the following: Exception re predatory practices (4) Subsection (1) does not have the effect of exempting from the application of the Competition Act any member of a conference who engages in, or who conspires, agrees or arranges with another person to engage in, a practice of selling products at prices unreasonably low that has the effect or tendency of substantially lessening competition or eliminating a competitor or is designed to have that effect and that is a practice of anti-competitive acts referred to in paragraph 79(1)(b) of that Act. COMING INTO FORCE Sections 410, 429 and 442 444. Sections 410, 429 and 442 come into force one year after the day on which this Act receives royal assent. PART 13 R.S., c. 28 (1st Supp.) INVESTMENT CANADA ACT AMENDMENTS TO THE ACT 445. Section 2 of the Investment Canada Act is replaced by the following: Purpose of Act 2. Recognizing that increased capital and technology benefits Canada, and recognizing the importance of protecting national security, the purposes of this Act are to provide for the C. 2 Budget Implem review of significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth and employment opportunities in Canada and to provide for the review of investments in Canada by nonCanadians that could be injurious to national security. 1993, c. 35, s. 1 446. Paragraph (d) of the definition “Canadian” in section 3 of the Act is replaced by the following: (d) an entity that is Canadian-controlled, as determined under subsection 26(1) or (2) and in respect of which there has been no determination made under subsection 26(2.1) or (2.11) or declaration made under subsection 26(2.2); 447. (1) The portion of subsection 10(1) of the Act before paragraph (a) is replaced by the following: Exempt transactions 10. (1) This Act, other than Part IV.1, does not apply in respect of 2007, c. 6, s. 439(2) (2) Subparagraphs 10(1)(j)(ii) and (iii) of the French version of the Act are replaced by the following: (ii) soit par l’unité qui est une entité étrangère à laquelle le surintendant des institutions financières a délivré un agrément l’autorisant à garantir au Canada des risques aux termes de la partie XIII de la Loi sur les sociétés d’assurances, à condition que le revenu brut d’investissement qu’elle retire de l’entreprise canadienne soit ajouté au calcul de son revenu pour l’application du paragraphe 138(9) de la Loi de l’impôt sur le revenu et que les intérêts avec droit de vote de l’unité qui exploite l’entreprise canadienne ou les actifs utilisés dans son exploitation soient placés en fiducie au titre de cette partie, (iii) soit par une personne morale constituée au Canada dont toutes les actions avec droit de vote émises, à l’exception de celles qui sont nécessaires pour conférer à une personne la qualité d’administrateur, sont Exécution du b la propriété d’une compagnie d’assurance visée au sous-alinéa (i) ou d’une entité étrangère visée au sous-alinéa (ii), ou d’une personne morale que l’une ou l’autre contrôle directement ou indirectement en ayant la propriété des actions avec droit de vote, à condition, dans le cas d’une entité étrangère visée au sous-alinéa (ii), que les intérêts avec droit de vote de l’unité qui exploite l’entreprise canadienne ou les actifs utilisés dans son exploitation soient placés en fiducie au titre de la partie XIII de la Loi sur les sociétés d’assurances; (3) Subsection 10(2) of the Act is replaced by the following: Exempt transactions — Part IV.1 (2) Part IV.1 does not apply in respect of (a) the acquisition of control of a Canadian business in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of this Act, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act; (b) the acquisition of control of a Canadian business by reason of an amalgamation, a merger, a consolidation or a corporate reorganization following which the ultimate direct or indirect control in fact of the Canadian business, through the ownership of voting interests, remains unchanged, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act; (c) the acquisition of control of a Canadian business carried on by an agent of Her Majesty in right of Canada or a province or by a Crown corporation within the meaning of the Financial Administration Act; (d) any transaction to which Part XII.01 of the Bank Act applies; or (e) the acquisition of control of a Canadian business by any of the following entities, if the acquisition is subject to approval under C. 2 Budget Implem the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act: (i) an insurance company incorporated in Canada that is a company or a provincial company to which the Insurance Companies Act applies, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act, (ii) a foreign entity that has been approved by order of the Superintendent of Financial Institutions under Part XIII of the Insurance Companies Act to insure in Canada risks, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act and the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under that Part, or (iii) a corporation incorporated in Canada, all the issued voting shares of which, other than the qualifying voting shares of directors, are owned by an insurance company described in subparagraph (i), by a foreign entity described in subparagraph (ii) or by a corporation controlled directly or indirectly through the ownership of voting shares by such an insurance company or foreign entity, on the condition that, in the case of a foreign entity described in subparagraph (ii), the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under Part XIII of the Insurance Companies Act. Exécution du b If condition not complied with (3) If any condition referred to in paragraph (1)(d) or (j) or (2)(e) is not complied with, the exemption under that paragraph does not apply and the transaction referred to in that paragraph is subject to this Act as if it had never been exempt. 1994, c. 47, s. 133 448. (1) Subsection 14.1(1) of the Act is replaced by the following: Limits for WTO investors 14.1 (1) Despite the limits set out in subsection 14(3), an investment described in paragraph 14(1)(a) or (b) by a WTO investor, or — if the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a WTO investor — a non-Canadian, other than a WTO investor, is reviewable under section 14 only if the enterprise value, calculated in the manner prescribed, of the assets described in paragraph 14(3)(a) or (b), as the case may be, is equal to or greater than, (a) for an investment made at any time in the year that begins on the day on which this paragraph comes into force, or in the following year, $600,000,000; (b) for an investment made at any time in the two years that begin immediately after the two years referred to in paragraph (a), $800,000,000; (c) for an investment made at any time in the year that begins immediately after the years for which the amount set out in paragraph (b) applies, $1,000,000,000; (d) for an investment made at any time in the period that begins immediately after the year for which the amount set out in paragraph (c) applies and ends on the following December 31, $1,000,000,000; and (e) for an investment made at any time in the year that begins after the period referred to in paragraph (d), or in any subsequent year, the amount determined under subsection (2). 1994, c. 47, s. 133 (2) The portion of subsection 14.1(2) of the Act before the formula is replaced by the following: C. 2 Calculation of amount for subsequent years (2) For the purposes of paragraph (1)(e), the amount for each year to which that paragraph applies shall be determined by the Minister in January of that year by rounding off to the nearest million dollars the amount arrived at by using the formula 1994, c. 47, s. 133 (3) Subsections 14.1(4) and (5) of the Act are replaced by the following: Investments not reviewable (4) Despite paragraphs 14(1)(c) and (d), an investment described in either paragraph that is implemented after this subsection comes into force is not reviewable under section 14 if it is made by Budget Implem (a) a WTO investor; or (b) a non-Canadian, other than a WTO investor, if the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a WTO investor. Exception (5) This section does not apply in respect of an investment to acquire control of a Canadian business that is a cultural business. 1994, c. 47, s. 133 (4) The definitions “financial institution” and “financial service” in subsection 14.1(6) of the Act are repealed. 1994, c. 47, s. 133 449. Section 14.2 of the Act is replaced by the following: Regulations 14.2 The Governor in Council may make any regulations that the Governor in Council considers necessary for carrying out the purposes and provisions of section 14.1. 450. Section 16 of the Act is amended by adding the following after subsection (2): Request for notice (3) If a non-Canadian makes a written request to the Minister for a notice referred to in paragraph (2)(a), the Minister shall, within 30 days after receiving all the information required for the Minister to decide whether the conditions described in that paragraph exist, advise the non-Canadian whether he or she will issue the notice or not. Exécution du b 451. Section 17 of the Act is amended by adding the following after subsection (2): Additional information (3) The non-Canadian making the investment shall, within the time specified by the Director, provide any other information that the Director considers necessary. 1995, c. 1, par. 50(1)(e) 452. Sections 21 to 23 of the Act are replaced by the following: Net benefit 21. (1) Subject to subsections (2) to (8) and sections 22 and 23, the Minister shall, within 45 days after the certified date referred to in subsection 18(1), send a notice to the applicant that the Minister, having taken into account any information, undertakings and representations referred to the Minister by the Director under section 19 and the relevant factors set out in section 20, is satisfied that the investment is likely to be of net benefit to Canada. Extension (2) Subject to subsection (3), if, before the expiry of the 45-day period referred to in subsection (1), a notice is sent under subsection 25.2(1) in respect of the investment, the period during which the Minister may send the notice referred to in subsection (1) is deemed to expire five days after the expiry of the prescribed period referred to in subsection 25.3(1). Extension (3) Subject to subsections (4) and (5), if, before the expiry of the 45-day period referred to in subsection (1), a notice is sent under subsection 25.2(1) in respect of the investment and if, in respect of the investment, an order is made under subsection 25.3(1), the period during which the Minister may send the notice referred to in subsection (1) is deemed to expire five days after the expiry of the prescribed period referred to in subsection 25.3(6) or the further period if one was agreed to under that subsection. Extension (4) If, before the expiry of the 45-day period referred to in subsection (1), a notice is sent under subsection 25.2(1) in respect of the investment and if, in respect of the investment, an order is made under subsection 25.3(1) and a notice is sent under paragraph 25.3(6)(b), the period during which the Minister may send the C. 2 Budget Implem notice referred to in subsection (1) is deemed to expire five days after the day on which the notice under paragraph 25.3(6)(b) was sent. Extension (5) If, before the expiry of the 45-day period referred to in subsection (1), a notice is sent under subsection 25.2(1) in respect of the investment and if an order is made under subsection 25.3(1) in respect of the investment and the Minister refers the investment to the Governor in Council under paragraph 25.3(6)(a), the period during which the Minister may send the notice referred to in subsection (1) is deemed to expire five days after the expiry of the earlier of (a) the day on which the Governor in Council takes any measure under subsection 25.4(1) in respect of the investment, and (b) the day on which the prescribed period referred to in subsection 25.4(1) expires. Extension (6) Subject to subsections (7) and (8), if, before the expiry of the 45-day period referred to in subsection (1), an order is made under subsection 25.3(1) in respect of the investment, the period during which the Minister may send the notice referred to in subsection (1) is deemed to expire five days after the expiry of the prescribed period referred to in subsection 25.3(6) or the further period if one was agreed to under that subsection. Extension (7) If, before the expiry of the 45-day period referred to in subsection (1), an order is made under subsection 25.3(1) in respect of the investment and if, in respect of the investment, a notice is sent under paragraph 25.3(6)(b), the period during which the Minister may send the notice referred to in subsection (1) is deemed to expire five days after the day on which the notice under paragraph 25.3(6)(b) was sent. Extension (8) If, before the expiry of the 45-day period referred to in subsection (1), an order is made under subsection 25.3(1) in respect of the investment and if the Minister refers the investment to the Governor in Council under paragraph 25.3(6)(a), the period during which Exécution du b the Minister may send the notice referred to in subsection (1) is deemed to expire five days after the expiry of the earlier of (a) the day on which the Governor in Council takes any measure under subsection 25.4(1) in respect of the investment, and (b) the day on which the prescribed period referred to in subsection 25.4(1) expires. Minister deemed to be satisfied (9) Subject to sections 22 and 23, if the Minister does not send a notice under subsection (1) within the 45-day period referred to in that subsection or, if any of subsections (2) to (8) apply, within the five-day period referred to in that subsection, the Minister is deemed to be satisfied that the investment is likely to be of net benefit to Canada and shall send a notice to that effect to the applicant. Extension 22. (1) If none of subsections 21(2) to (8) apply and the Minister is unable to complete the consideration of an investment within the 45day period referred to in subsection 21(1), the Minister shall, within that period, send a notice to that effect to the applicant and the Minister shall, subject to subsection (3) within 30 days from the date of the sending of the notice or within any further period that may be agreed on by the applicant and the Minister, complete the consideration of the investment. Notice (2) Subject to subsection (3), if, within the 30-day period referred to in subsection (1) or any further period that is agreed on under that subsection, the Minister is satisfied that the investment is likely to be of net benefit to Canada, the Minister shall, within that period, send a notice to that effect to the applicant. Extension (3) Subsections 21(2) to (8) apply to this section as though the 45-day period referred to in those subsections were the 30-day period referred to in subsection (1) or the further period as is agreed on under that subsection. Minister deemed to be satisfied (4) Subject to section 23, if the Minister does not send a notice under subsection (2) within the period referred to in that subsection, or, if subsection (3) applies, within the five-day period referred to in whichever of subsections 21(2) to (8) applies to this section by reason of subsection (3), the Minister is deemed to be C. 2 Budget Implem satisfied that the investment is likely to be of net benefit to Canada and shall send a notice to that effect to the applicant. Notice of right to make representations and submit undertakings 23. (1) If the Minister is not satisfied, within the period provided for in section 21 or 22 to send the notice referred to in subsection 21(1), that an investment is likely to be of net benefit to Canada, the Minister shall send a notice to that effect to the applicant, advising the applicant of their right to make representations and submit undertakings within 30 days from the date of the notice or within any further period that may be agreed on by the applicant and the Minister. Representations and undertakings (2) If, after receipt of the notice referred to in subsection (1), the applicant advises the Minister that the applicant wishes to make representations or submit undertakings, the Minister shall afford the applicant a reasonable opportunity, within the 30-day period referred to in subsection (1), or within any agreed to further period, to make representations, in person or by a representative, and to give undertakings to Her Majesty in right of Canada, as the applicant sees fit. Net benefit (3) Within a reasonable time after the expiry of the period for making representations and submitting undertakings, the Minister shall, in the light of any such representations and undertakings and having regard to the matters to be taken into account under subsection 21(1), send a notice to the applicant (a) that the Minister is satisfied that the investment is likely to be of net benefit to Canada; or (b) confirming that the Minister is not satisfied that the investment is likely to be of net benefit to Canada. Reasons 23.1 The Minister shall provide reasons for any decision made under paragraph 23(3)(b) and the Minister may provide reasons for any decision made under subsection 21(1) or 22(2) or paragraph 23(3)(a). 453. The Act is amended by adding the following after section 25: Exécution du b 2009 PART IV.1 INVESTMENTS INJURIOUS TO NATIONAL SECURITY Application 25.1 This Part applies in respect of an investment, implemented or proposed, by a non-Canadian (a) to establish a new Canadian business; (b) to acquire control of a Canadian business in any manner described in subsection 28(1); or (c) to acquire, in whole or in part, or to establish an entity carrying on all or any part of its operations in Canada if the entity has (i) a place of operations in Canada, (ii) an individual or individuals in Canada who are employed or self-employed in connection with the entity’s operations, or (iii) assets in Canada used in carrying on the entity’s operations. Notice 25.2 (1) If the Minister has reasonable grounds to believe that an investment by a non-Canadian could be injurious to national security, the Minister may, within the prescribed period, send to the non-Canadian a notice that an order for the review of the investment may be made under subsection 25.3(1). Condition for investment (2) If a non-Canadian has not implemented a proposed investment when they receive a notice under subsection (1), they shall not implement the investment unless they receive (a) a notice under paragraph (4)(a) indicating that no order for the review of the investment will be made under subsection 25.3(1); (b) a notice under paragraph 25.3(6)(b) indicating that no further action will be taken in respect of the investment; or (c) a copy of an order made under section 25.4 authorizing the investment to be implemented. C. 2 Requirement to provide information (3) The Minister may require the nonCanadian or any person or entity from which the Canadian business or the entity referred to in paragraph 25.1(c) is being acquired to provide, within the time and in the manner specified by the Minister, any prescribed information or any other information that the Minister considers necessary for the purposes of determining whether there are reasonable grounds to believe that an investment by a non-Canadian could be injurious to national security. Ministerial action (4) The Minister shall, within the prescribed period, send to the non-Canadian Budget Implem (a) a notice indicating that no order for the review of the investment will be made under subsection 25.3(1); or (b) a notice referred to in subsection 25.3(2) indicating that an order for the review of the investment has been made. Reviewable investments 25.3 (1) An investment is reviewable under this Part if the Minister, after consultation with the Minister of Public Safety and Emergency Preparedness, considers that the investment could be injurious to national security and the Governor in Council, on the recommendation of the Minister, makes an order within the prescribed period for the review of the investment. Notice (2) The Minister shall, without delay after the order has been made, send to the nonCanadian making the investment and to any person or entity from which the Canadian business or the entity referred to in paragraph 25.1(c) is being acquired, a notice indicating that an order for the review of the investment has been made and advising them of their right to make representations to the Minister. Condition for investment (3) If a non-Canadian has not implemented a proposed investment when they receive a notice under subsection (2), they shall not implement the investment unless they receive (a) a notice under paragraph (6)(b) indicating that no further action will be taken in respect of the investment; or (b) a copy of an order made under section 25.4 authorizing the investment to be implemented. Exécution du b Representations (4) If, after receipt of the notice referred to in subsection (2), the non-Canadian or other person or entity advises the Minister that they wish to make representations, the Minister shall afford them a reasonable opportunity to make representations in person or by a representative. Requirement to provide information (5) The Minister may require the nonCanadian or other person or entity to provide, within the time and in the manner specified by the Minister, any prescribed information or any other information that the Minister considers necessary for the purposes of the review. Ministerial action (6) After consultation with the Minister of Public Safety and Emergency Preparedness, the Minister shall, within the prescribed period, or any further period that is agreed on by the Minister and the non-Canadian, (a) refer the investment under review to the Governor in Council, together with a report of the Minister’s findings and recommendations on the review, if (i) the Minister is satisfied that the investment would be injurious to national security, or (ii) on the basis of the information available, the Minister is not able to determine whether the investment would be injurious to national security; or (b) send to the non-Canadian a notice indicating that no further action will be taken in respect of the investment if the Minister is satisfied that the investment would not be injurious to national security. Powers of Governor in Council 25.4 (1) On the referral of an investment under paragraph 25.3(6)(a), the Governor in Council may, by order, within the prescribed period, take any measures in respect of the investment that the Governor in Council considers advisable to protect national security, including (a) directing the non-Canadian not to implement the investment; C. 2 Budget Implem (b) authorizing the investment on condition that the non-Canadian (i) give any written undertakings to Her Majesty in right of Canada relating to the investment that the Governor in Council considers necessary in the circumstances, or (ii) implement the investment on the terms and conditions contained in the order; or (c) requiring the non-Canadian to divest themselves of control of the Canadian business or of their investment in the entity. Copy of order (2) The Minister shall send a copy of the order to the non-Canadian or other person or entity to which it is directed without delay after it has been made. Requirement to comply with order (3) The non-Canadian or other person or entity to which the order is directed shall comply with the order. Statutory Instruments Act does not apply (4) The Statutory Instruments Act does not apply in respect of the order. Information for determination 25.5 Non-Canadians or other persons or entities that are subject to an order made under section 25.4 shall submit any information in their possession relating to the investment that is required from time to time by the Director in order to permit the Director to determine whether they are complying with the order. Decisions and orders are final 25.6 Decisions and orders of the Governor in Council, and decisions of the Minister, under this Part are final and binding and, except for judicial review under the Federal Courts Act, are not subject to appeal or to review by any court. 1993, c. 35, s. 4(1) 454. (1) The portion of subsection 26(1) of the Act before paragraph (a) is replaced by the following: Rules respecting control of entities 26. (1) Subject to subsections (2.1) to (2.2), for the purposes of this Act, 1993, c. 35, s. 4(2) (2) Subsection 26(2) of the Act is replaced by the following: Exécution du b Trusts (2) Subject to subsections (2.1) to (2.2), if it can be established that a trust is not controlled in fact through the ownership of its voting interests, subsection (1) does not apply, and the trust is a Canadian-controlled entity if twothirds of its trustees are Canadians. 1993, c. 35, s. 4(2); 1995, c. 1, par. 50(1)(g) (3) Subsection 26(2.2) of the Act is replaced by the following: Minister may determine (2.11) For the purposes of Part IV.1, in the case of an entity that qualifies as a Canadiancontrolled entity by virtue of subsection (1) or (2), the Minister may nevertheless determine that the entity is not a Canadian-controlled entity if, after considering any information and evidence submitted by or on behalf of the entity or otherwise made available to the Minister or the Director, the Minister is satisfied that the entity is controlled in fact by one or more nonCanadians. Minister may declare (2.2) If an entity referred to in subsection (2.1) or (2.11) has refused or neglected to provide, within a reasonable time, information that the Minister or the Director has requested and that the Minister considers necessary in order to make a decision under that subsection, the Minister may declare that the entity is not a Canadian-controlled entity. 1993, c. 35, s. 4(2) (4) Subsection 26(2.4) of the Act is replaced by the following: Entity to be informed (2.4) The Minister shall inform the entity concerned, in writing, of any determination made under subsection (2.1) or (2.11) or declaration made under subsection (2.2), and of any date specified under subsection (2.3) without delay after such a determination or declaration is made. (5) Section 26 of the Act is amended by adding the following after subsection (3): Exception (3.1) Subsection (3) does not apply to a corporation for the purposes of Part IV.1. C. 2 1993, c. 35, s. 5(1) 455. (1) The portion of subsection 28(2) of the Act before paragraph (a) is replaced by the following: Rules and presumptions respecting control of entities (2) Subject to subsections (4) to (5), for the purposes of this Act, 1993, c. 35, s. 5(2) (2) The portion of subsection 28(3) of the Act before paragraph (a) is replaced by the following: Presumptions respecting acquisition of control (3) Subject to subsections (4) to (5), for the purposes of this Act, 1993, c. 35, s. 5(3); 1995, c. 1, par. 50(1)(h) (3) Subsection 28(5) of the Act is replaced by the following: Minister may determine (4.1) For the purposes of Part IV.1, the Minister may, after considering any information and evidence submitted by or on behalf of an entity or otherwise made available to the Minister or the Director, determine that the entity is or is not controlled by another entity or that there has or has not been an acquisition of control of the entity, if the Minister is satisfied that the entity is or is not controlled in fact by that other entity or that there has or has not in fact been an acquisition of control of that entity, as the case may be. Minister may declare (5) If an entity referred to in subsection (4) or (4.1) has refused or neglected to provide, within a reasonable time, information that the Minister or the Director has requested and that the Minister considers necessary in order to make a decision under that subsection, the Minister may declare that the entity is or is not controlled by another entity or that there has or has not been an acquisition of control of the entity, as the case may be. 1993, c. 35, s. 5(3) (4) Subsection 28(7) of the Act is replaced by the following: Entity to be informed (7) The Minister shall inform the entity concerned, in writing, of any determination made under subsection (4) or (4.1) or declaration made under subsection (5), and of any date Budget Implem Exécution du b specified under subsection (6) without delay after such a determination or declaration is made. 456. Section 35 of the Act is amended by adding the following after subsection (1): Prescribing periods (1.1) Any regulations prescribing a period for the purposes of subsections 25.2(1) and 25.3(1) may provide for a separate period depending on whether it is in respect of an investment referred to in section 11 or 14 or any other investment and, for the purposes of subsection 25.3(1), depending on whether a notice has or has not been issued under subsection 25.2(1). 457. (1) Subsection 36(1) of the Act is replaced by the following: Privileged information 36. (1) Subject to subsections (3) to (4), all information obtained with respect to a Canadian, a non-Canadian, a business or an entity referred to in paragraph 25.1(c) by the Minister or an officer or employee of Her Majesty in the course of the administration or enforcement of this Act is privileged and no one shall knowingly communicate or allow to be communicated any such information or allow anyone to inspect or to have access to any such information. (2) The portion of subsection 36(3) of the French version of the Act before paragraph (a) is replaced by the following: Communication des renseignements (3) Les renseignements confidentiels visés au paragraphe (1) peuvent, selon les modalités déterminées par le ministre, selon le cas : (3) Section 36 of the Act is amended by adding the following after subsection (3): Investigative bodies (3.1) Information that is privileged under subsection (1) may be communicated or disclosed by the Minister to a prescribed investigative body, or an investigative body of a prescribed class, if the communication or disclosure is for the purposes of the administration or enforcement of Part IV.1 and that body’s lawful investigations. The information may also be communicated or disclosed by that body for the purposes of those investigations. C. 2 Budget Implem (4) Subparagraph 36(4)(e)(iii) of the Act is replaced by the following: (iii) any demand sent by the Minister under section 39, other than a demand sent for the purposes of the administration or enforcement of Part IV.1; (5) Subsection 36(4) of the Act is amended by striking out “or” at the end of paragraph (e), by adding “or’’ at the end of paragraph (f) and by adding the following after paragraph (f): (g) information contained in reasons given by the Minister for any decision taken under subsection 21(1), 22(2) or 23(3). (6) Section 36 of the Act is amended by adding the following after subsection (4): Information referred to in par. (4)(g) (4.1) The Minister shall inform the Canadian or non-Canadian before communicating or disclosing any financial, commercial, scientific or technical information under paragraph (4)(g) and the Minister shall not communicate or disclose the information if they satisfy the Minister, without delay, that the communication or disclosure would prejudice them. Communication or disclosure — application (4.2) Despite subsection (1), the Minister may communicate or disclose the fact that an application has been filed under this Act, other than Part IV.1, and at what point the investment to which the application relates is in the review process. The Minister shall inform the nonCanadian and, with their consent, the Canadian business before communicating or disclosing such information and the Minister shall not communicate or disclose the information if either of them satisfy the Minister, without delay, that the communication or disclosure would prejudice them. 458. (1) Section 37 of the Act is amended by adding the following after subsection (1): Time for providing opinion (1.1) The Minister shall provide his or her opinion no later than 45 days after the Minister concludes that the information and evidence he or she has received is sufficient to enable him or her to reach an opinion on the question. Exécution du b (2) Section 37 of the Act is amended by adding the following after subsection (2): Time for providing opinion (2.1) If the Minister decides to provide an opinion under subsection (2), he or she shall provide it no later than 45 days after the Minister concludes that the information he or she has received is sufficient to enable him or her to reach an opinion on the question. 459. The Act is amended by adding the following after section 38: REPORT Annual report 38.1 The Director shall, for each fiscal year, submit a report on the administration of this Act, other than Part IV.1, to the Minister and the Minister shall make the report available to the public. 460. (1) Paragraph 39(1)(b) of the Act is replaced by the following: (a.1) has failed to provide any prescribed information or any information that has been requested by the Minister or Director, (b) has implemented an investment the implementation of which is prohibited by section 16, 24, 25.2 or 25.3, (2) Subsection 39(1) of the Act is amended by adding the following after paragraph (d): (d.1) has failed to comply with an undertaking given to Her Majesty in right of Canada in accordance with an order made under section 25.4, (d.2) has failed to comply with an order made under section 25.4, (3) Subsection 39(2) of the Act is replaced by the following: Ministerial demand (2) If the Minister believes that a person or an entity has, contrary to this Act, failed to comply with a requirement to provide information under subsection 25.2(3) or 25.3(5) or C. 2 Budget Implem failed to comply with subsection 25.4(3), the Minister may send a demand to the person or entity requiring that they immediately, or within any period that may be specified in the demand, cease the contravention, remedy the default or show cause why there is no contravention of the Act. Contents of demand (3) A demand under subsection (1) or (2) shall indicate the nature of the proceedings that may be taken under this Act against the nonCanadian or other person or entity to which it is sent in the event that the non-Canadian, person or entity fails to comply with the demand. 461. The Act is amended by adding the following after section 39: New undertaking 39.1 If the Minister believes that a nonCanadian has failed to comply with a written undertaking given to Her Majesty in right of Canada relating to an investment that the Minister is satisfied or is deemed to be satisfied is likely to be of net benefit to Canada, the Minister may, after the investment has been implemented, accept a new undertaking from the non-Canadian. 462. (1) Subsection 40(1) of the Act is replaced by the following: Application for court order 40. (1) If a non-Canadian or any other person or entity fails to comply with a demand under section 39, an application on behalf of the Minister may be made to a superior court for an order under subsection (2) or (2.1). (2) The portion of subsection 40(2) of the Act before paragraph (a) is replaced by the following: Court orders (2) If, at the conclusion of the hearing on an application referred to in subsection (1), the superior court decides that the Minister was justified in sending a demand to the nonCanadian or other person or entity under section 39 and that the non-Canadian or other person or entity has failed to comply with the demand, the court may make any order or orders as, in its opinion, the circumstances require, including, without limiting the generality of the foregoing, an order (3) Paragraph 40(2)(a) of the Act is replaced by the following: Exécution du b (a) directing the non-Canadian to divest themselves of control of the Canadian business, or to divest themselves of their investment in the entity, on any terms and conditions that the court considers just and reasonable; (4) Subsection 40(2) of the Act is amended by adding the following after paragraph (c): (c.1) directing the non-Canadian to comply with a written undertaking given to Her Majesty in right of Canada in accordance with an order made under section 25.4; (5) Subsection 40(2) of the Act is amended by striking out “or” at the end of paragraph (e), by adding “or” at the end of paragraph (f) and by adding the following after paragraph (f): (g) directing the non-Canadian or other person or entity to provide information requested by the Minister or Director. (6) Subsections 40(3) and (4) of the Act are replaced by the following: Court orders — person or entity (2.1) If, at the conclusion of the hearing on an application referred to in subsection (1), the superior court decides that the Minister was justified in sending a demand to a person or an entity under section 39 and that the person or entity has failed to comply with it, the court may make any order or orders that, in its opinion, the circumstances require, including, without limiting the generality of the foregoing, an order against the person or entity imposing a penalty not exceeding $10,000 for each day on which the person or entity is in contravention of this Act or any of its provisions. Penalties recoverable as debts (3) A penalty imposed by an order made under paragraph (2)(d) or subsection (2.1) is a debt due to Her Majesty in right of Canada and is recoverable as such in a superior court. Contempt of court (4) Everyone who fails or refuses to comply with an order made by a superior court under subsection (2) or (2.1) that is directed to them C. 2 Budget Implem may be cited and punished by the court that made the order, as for other contempts of that court. TRANSITIONAL PROVISIONS Certain applications deemed never to have been filed 463. Any application made under the Investment Canada Act that was filed before the day on which subsection 14.1(1) of that Act, as enacted by subsection 448(1), comes into force and in respect of which the Minister of Industry has not issued a decision before that day is deemed never to have been filed if the enterprise value of the assets to which the application relates is less than the amount referred to in paragraph 14.1(1)(a) of that Act, as enacted by subsection 448(1). Transactions implemented during transitional period 464. An investment referred to in section 25.1 of the Investment Canada Act, as enacted by section 453, implemented within the period beginning on February 6, 2009 and ending on the day on which this Act receives royal assent, is subject to review under section 25.3 of that Act, as enacted by section 453, if the Minister of Industry sends a notice to the non-Canadian, within 60 days after the day on which this Act receives royal assent, indicating that the investment shall be subject to a review. COMING INTO FORCE February 6, 2009 465. (1) Sections 445, 447 and 453 to 456, subsections 457(1) to (4), section 460 and subsections 462(1), (3), (4) and (6) are deemed to have come into force on February 6, 2009. Subsections 448(1) and (2) (2) Subsections 448(1) and (2) come into force on a day to be fixed by order of the Governor in Council. PART 14 1996, c. 10 CANADA TRANSPORTATION ACT AMENDMENTS TO THE ACT 2001, c. 27, s. 222 466. The definition “Canadian” in subsection 55(1) of the Canada Transportation Act is replaced by the following: Exécution du b 2009 “Canadian” « Canadien » “Canadian” means a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, a government in Canada or an agent of such a government or a corporation or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which the percentage of voting interests owned and controlled by non-Canadians is not more than (a) in respect of all non-Canadians, the percentage specified in the regulations, or (b) in respect of any class of non-Canadians specified in the regulations, the percentage specified in the regulations in respect of that class; 467. The Act is amended by adding the following after section 55: Regulations 55.1 The Governor in Council may, by regulation, (a) specify a percentage for the purpose of paragraph (a) of the definition “Canadian” in subsection 55(1), which percentage may not be more than 49%; and (b) for the purpose of paragraph (b) of that definition, specify classes of non-Canadians and specify a percentage with respect to each such class, which percentage may not be more than 49%. COMING INTO FORCE Order in council 468. Sections 466 and 467 come into force on a day to be fixed by order of the Governor in Council made on the recommendation of the Minister of Transport. PART 15 R.S., c. 35 (4th Supp.) AIR CANADA PUBLIC PARTICIPATION ACT AMENDMENTS TO THE ACT 2000, c. 15, s. 17(1) 469. (1) Paragraphs 6(1)(b) and (c) of the Air Canada Public Participation Act are repealed. C. 2 1993, c. 34, s. 3; 1994, c. 47, s. 220 (Sch. IV, s. 1); 2000, c. 15, s. 17(2); 2001, c. 35, s. 1(2) to (4) (2) Subsections 6(2) to (7) of the Act are repealed. Budget Implem TRANSITIONAL PROVISIONS Articles and bylaws 470. (1) Any provisions of the articles of the Corporation, as defined in subsection 2(1) of the Air Canada Public Participation Act, that impose constraints described in paragraphs 6(1)(b) and (c) of that Act, as those paragraphs read immediately before the coming into force of section 469, and any provisions of the Corporation’s by-laws that give effect to those constraints, have, as of the day on which section 469 comes into force, no further force or effect. Restatement of articles (2) The articles of the Corporation may be restated under section 180 of the Canada Business Corporations Act as a result of subsection (1). Shares no longer subject to constraint (3) Any shares of the Corporation that, immediately before the coming into force of section 469, were subject to constraints referred to in subsection (1) cease to be subject to those constraints on the day on which that section comes into force. COMING INTO FORCE Order in council 471. Sections 469 and 470 come into force on a day to be fixed by order of the Governor in Council made on the recommendation of the Minister of Finance. C. 2 Budget Implementation SCHED (Sectio Tariff Item Description of Goods 3504.00 Peptones and their derivatives; other protein substance and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed. ---Milk protein substances: 3504.00.11 ----Within access commitment 3504.00.12 ----Over access committment 3504.00.90 ---Other Exécution du budget ANNE (article Numéro tarifaire 3504.00 Dénomination des marchandises Peptones et leurs dérivés; autres matières protéiques e leurs dérivés, non dénommés ni compris ailleurs; poud de peau, traitée ou non au chrome. ---Matières protéiques de lait : 3504.00.11 ----Dans les limites de l’engagement d’accès 3504.00.12 ----Au-dessus de l’engagement d’accès 3504.00.90 ---Autres C. 2 Budget Implementation SCHED (Sectio Tariff Item Description of Goods -Other turbines: 8406.81.00 --Of an output exceeding 40 MW 8406.82.00 --Of an output not exceeding 40 MW 8413.50.00 -Other reciprocating positive displacement pumps 8413.60.00 -Other rotary positive displacement pumps ---Other: Exécution du budget Tariff Item Description of Goods 8413.70.91 ----Submersible pumps 8413.70.99 ----Other 8413.81.00 --Pumps 8414.10.00 -Vacuum pumps 8416.10.00 -Furnace burners for liquid fuel C. 2 Budget Implementatio Tariff Item Description of Goods 8417.10.00 -Furnaces and ovens for the roasting, melting or other heat-treatment of ores, pyrites or of metals 8417.80.00 -Other 8417.90.00 -Parts 8418.69.00 --Other -Dryers: 8419.31.00 --For agricultural products Exécution du budget Tariff Item Description of Goods 8419.32.00 --For wood, paper pulp, paper or paperboard 8419.39.00 --Other 8419.40.00 -Distilling or rectifying plant 8419.81.00 --For making hot drinks or for cooking or heating food C. 2 Budget Implementatio Tariff Item Description of Goods 8420.10.00 -Calendering or other rolling machines 8421.21.00 --For filtering or purifying water 8421.22.00 --For filtering or purifying beverages other than water 8421.29.00 --Other 8422.20.00 -Machinery for cleaning or drying bottles or other containers Exécution du budget Tariff Item Description of Goods 8422.30.00 -Machinery for filling, closing, sealing, or labelling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and simila containers; machinery for aerating beverages 8422.40.00 -Other packing or wrapping machinery (including heat-shrink wrapping machinery) 8424.20.00 -Spray guns and similar appliances 8424.30.00 -Steam or sand blasting machines and similar jet projecting machines 8424.89.00 --Other C. 2 Budget Implementatio Tariff Item Description of Goods 8424.90.00 -Parts 8427.10.90 ---Other 8427.20.90 ---Other 8427.90.00 -Other trucks 8438.10.00 -Bakery machinery and machinery for the manufactur Tariff Item Exécution du budget Description of Goods of macaroni, spaghetti or similar products 8438.50.00 -Machinery for the preparation of meat or poultry 8438.80.00 -Other machinery 8438.90.00 -Parts 8440.10.00 -Machinery C. 2 Budget Implementation Tariff Item Description of Goods 8441.10.00 -Cutting machines 8442.50.00 -Plates, cylinders and other printing components; plate cylinders and lithographic stones, prepared for printin purposes (for example, planed, grained or polished) 8443.11.00 --Offset printing machinery, reel-fed 8443.14.00 --Letterpress printing machinery, reel fed, excluding flexographic printing 8443.15.00 --Letterpress printing machinery, other than reel fed, excluding flexographic printing Exécution du budget Tariff Item Description of Goods 8443.16.00 --Flexographic printing machinery 8443.19.00 --Other 8443.32.00 --Other, capable of connecting to an automatic data processing machine or to a network 8443.39.00 --Other -Parts and accessories: C. 2 Budget Implementatio Tariff Item Description of Goods 8443.91.00 --Parts and accessories of printing machinery used for printing by means of plates, cylinders and other printing components of heading 84.42 8443.99.00 --Other 8452.21.00 --Automatic units 8453.10.00 -Machinery for preparing, tanning or working hides, skins or leather 8454.20.00 -Ingot moulds and ladles Exécution du budget Tariff Item Description of Goods 8454.30.00 -Casting machines 8456.10.00 -Operated by laser or other light or photon beam processes 8456.20.00 -Operated by ultrasonic processes 8456.90.00 -Other 8462.99.90 ---Other C. 2 Budget Implementatio Tariff Item Description of Goods 8464.20.00 -Grinding or polishing machines -Other: 8465.91.00 --Sawing machines 8465.92.00 --Planing, milling or moulding (by cutting) machines 8465.93.00 --Grinding, sanding or polishing machines Exécution du budget Tariff Item Description of Goods 8465.94.00 --Bending or assembling machines 8465.95.00 --Drilling or morticing machines 8465.96.00 --Splitting, slicing or paring machines 8465.99.00 --Other 8472.90.00 -Other C. 2 Budget Implementatio Tariff Item Description of Goods 8479.20.00 -Machinery for the extraction or preparation of animal o fixed vegetable fats or oils 8479.30.00 -Presses for the manufacture of particle board or fibre building board of wood or other ligneous materials an other machinery for treating wood or cork 8479.40.00 -Rope or cable-making machines 8479.81.00 --For treating metal, including electric wire coil-winde 8479.82.00 --Mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring machines Exécution du budget Tariff Item Description of Goods 8479.89.90 ---Other 8480.41.00 --Injection or compression types 8482.20.00 -Tapered roller bearings, including cone and tapered roller assemblies 8482.91.00 --Balls, needles and rollers 8482.99.90 ---Other C. 2 Budget Implementatio Tariff Item Description of Goods 8484.10.00 -Gaskets and similar joints of metal sheeting combine with other material or of two or more layers of metal 8484.20.00 -Mechanical seals 8484.90.00 -Other 8487.90.00 -Other Tariff Item Exécution du budget Description of Goods C. 2 Budget Implementatio ANNE (article Numéro tarifaire Dénomination des marchandises -Autres turbines : 8406.81.00 --D’une puissance excédant 40 MW 8406.82.00 --D’une puissance n’excédant pas 40 MW 8413.50.00 -Autres pompes volumétriques alternatives 8413.60.00 -Autres pompes volumétriques rotatives Numéro tarifaire Exécution du budget Dénomination des marchandises ---Autres : 8413.70.91 ----Pompes submersibles 8413.70.99 ----Autres 8413.81.00 --Pompes 8414.10.00 -Pompes à vide 8416.10.00 -Brûleurs à combustibles liquides Numéro tarifaire C. 2 Budget Implementatio Dénomination des marchandises 8417.10.00 -Fours pour le grillage, la fusion ou autres traitements thermiques des minerais ou des métaux 8417.80.00 -Autres 8417.90.00 -Parties 8418.69.00 --Autres Numéro tarifaire Exécution du budget Dénomination des marchandises -Séchoirs : 8419.31.00 --Pour produits agricoles 8419.32.00 --Pour le bois, les pâtes à papier, papiers ou cartons 8419.39.00 --Autres 8419.40.00 -Appareils de distillation ou de rectification Numéro tarifaire C. 2 Budget Implementatio Dénomination des marchandises 8419.81.00 --Pour la préparation de boissons chaudes ou la cuisso ou le chauffage des aliments 8420.10.00 -Calandres et laminoirs 8421.21.00 --Pour la filtration ou l’épuration des eaux 8421.22.00 --Pour la filtration ou l’épuration des boissons autres qu l’eau 8421.29.00 --Autres Numéro tarifaire Exécution du budget Dénomination des marchandises 8422.20.00 -Machines et appareils servant à nettoyer ou à sécher les bouteilles ou autres récipients 8422.30.00 -Machines et appareils à remplir, fermer, boucher ou étiqueter les bouteilles, boîtes, sacs ou autres contenants; machines et appareils à capsuler les bouteilles, pots, tubes et contenants analogues; machines et appareils à gazéifier les boissons 8422.40.00 -Autres machines et appareils à empaqueter ou à emballer les marchandises (y compris les machines et appareils à emballer sous film thermorétractable) 8424.20.00 -Pistolets aérographes et appareils similaires Numéro tarifaire C. 2 Budget Implementatio Dénomination des marchandises 8424.30.00 -Machines et appareils à jet de sable, à jet de vapeur e appareils à jet similaires 8424.89.00 --Autres 8424.90.00 -Parties 8427.10.90 ---Autres 8427.20.90 ---Autres Exécution du budget Numéro tarifaire Dénomination des marchandises 8427.90.00 -Autres chariots 8438.10.00 -Machines et appareils pour la boulangerie, la pâtisserie, la biscuiterie ou pour la fabrication des pâte alimentaires 8438.50.00 -Machines et appareils pour le travail des viandes 8438.80.00 -Autres machines et appareils C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8438.90.00 -Parties 8440.10.00 -Machines et appareils 8441.10.00 -Coupeuses 8442.50.00 -Clichés, planches, cylindres et autres organes imprimants; pierres lithographiques, planches, plaque et cylindres préparés pour l’impression (planés, grené polis, par exemple) 8443.11.00 --Machines et appareils à imprimer offset, alimentés e bobines Numéro tarifaire Exécution du budget Dénomination des marchandises 8443.14.00 --Machines et appareils à imprimer, typographiques, alimentés en bobines, à l’exclusion des machines et appareils flexographiques 8443.15.00 --Machines et appareils à imprimer, typographiques, autres qu’alimentés en bobines, à l’exclusion des machines et appareils flexographiques 8443.16.00 --Machines et appareils à imprimer, flexographiques 8443.19.00 --Autres Numéro tarifaire C. 2 Budget Implementatio Dénomination des marchandises 8443.32.00 --Autres, aptes à être connectées à une machine automatique de traitement de l’information ou à un réseau 8443.39.00 --Autres -Parties et accessoires : 8443.91.00 --Parties et accessoires de machines et d’appareils servant à l’impression au moyen de planches, cylindre et autres organes imprimants du no 84.42 8443.99.00 --Autres Exécution du budget Numéro tarifaire Dénomination des marchandises 8452.21.00 --Unités automatiques 8453.10.00 -Machines et appareils pour la préparation, le tannage ou le travail des cuirs ou peaux 8454.20.00 -Lingotières et poches de coulée 8454.30.00 -Machines à couler (mouler) 8456.10.00 -Opérant par laser ou autre faisceau de lumière ou de photons C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8456.20.00 -Opérant par ultra-sons 8456.90.00 -Autres 8462.99.90 ---Autres 8464.20.00 -Machines à meuler ou à polir Numéro tarifaire Exécution du budget Dénomination des marchandises -Autres : 8465.91.00 --Machines à scier 8465.92.00 --Machines à dégauchir ou à raboter; machines à fraise ou à moulurer 8465.93.00 --Machines à meuler, à poncer ou à polir 8465.94.00 --Machines à cintrer ou à assembler 8465.95.00 --Machines à percer ou à mortaiser C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8465.96.00 --Machines à fendre, à trancher ou à dérouler 8465.99.00 --Autres 8472.90.00 -Autres 8479.20.00 -Machines et appareils pour l’extraction ou la préparation des huiles ou graisses végétales fixes ou animales Numéro tarifaire Exécution du budget Dénomination des marchandises 8479.30.00 -Presses pour la fabrication de panneaux de particules ou de fibres de bois ou d’autres matières ligneuses et autres machines et appareils pour le traitement du boi ou du liège 8479.40.00 -Machines de corderie ou de câblerie 8479.81.00 --Pour le traitement des métaux, y compris les bobineuses pour enroulements électriques 8479.82.00 --À mélanger, malaxer, concasser, broyer, cribler, tamiser, homogénéiser, émulsionner ou brasser 8479.89.90 ---Autres C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8480.41.00 --Pour le moulage par injection ou par compression 8482.20.00 -Roulements à rouleaux coniques, y compris les assemblages de cônes et rouleaux coniques 8482.91.00 --Billes, galets, rouleaux et aiguilles 8482.99.90 ---Autres Exécution du budget Numéro tarifaire Dénomination des marchandises 8484.10.00 -Joints métalloplastiques 8484.20.00 -Joints d’étanchéité mécaniques 8484.90.00 -Autres 8487.90.00 -Autres C. 2 Budget Implementation SCHED (Sectio Tariff Item Description of Goods 8504.10.00 -Ballasts for discharge lamps or tubes -Liquid dielectric transformers: 8504.21.00 --Having a power handling capacity not exceeding 650 kVA 8504.22.00 --Having a power handling capacity exceeding 650 kV but not exceeding 10,000 kVA 8504.23.00 --Having a power handling capacity exceeding 10,000 kVA -Other transformers: Exécution du budget Tariff Item Description of Goods 8504.31.00 --Having a power handling capacity not exceeding 1 kVA 8504.32.00 --Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA 8504.33.00 --Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA 8504.34.00 --Having a power handling capacity exceeding 500 kVA 8504.50.00 -Other inductors C. 2 Budget Implementation Tariff Item Description of Goods 8505.19.00 --Other 8505.20.00 -Electro-magnetic couplings, clutches and brakes 8512.20.00 -Other lighting or visual signalling equipment 8512.90.00 -Parts 8514.10.00 -Resistance heated furnaces and ovens Exécution du budget Tariff Item Description of Goods 8514.20.00 -Furnaces and ovens functioning by induction or dielectric loss 8514.30.00 -Other furnaces and ovens 8514.40.00 -Other equipment for the heat treatment of materials by induction or dielectric loss 8515.19.00 --Other Tariff Item C. 2 Budget Implementation Description of Goods -Machines and apparatus for resistance welding of meta 8515.21.00 --Fully or partly automatic 8515.29.00 --Other 8535.10.00 -Fuses 8535.21.00 --For a voltage of less than 72.5 kV 8535.30.00 -Isolating switches and make-and-break switches Exécution du budget Tariff Item Description of Goods 8536.10.00 -Fuses -Relays: 8536.41.00 --For a voltage not exceeding 60 V 8536.49.00 --Other 8536.69.00 --Other 8537.10.93 ----Panel boards and distribution boards C. 2 Budget Implementation Tariff Item Description of Goods 8537.20.00 -For a voltage exceeding 1,000 V 8538.10.00 -Boards, panels, consoles, desks, cabinets and other bases for the goods of heading 85.37, not equipped with their apparatus 8538.90.90 ---Other 8540.81.00 --Receiver or amplifier valves and tubes Exécution du budget Tariff Item Description of Goods 8543.10.00 -Particle accelerators 8543.30.00 -Machines and apparatus for electroplating, electrolysis or electrophoresis 8543.70.00 -Other machines and apparatus 8543.90.00 -Parts 8544.20.00 -Co-axial cable and other co-axial electric conductors C. 2 Budget Implementatio Tariff Item Description of Goods 8544.42.00 --Fitted with connectors 8547.10.00 -Insulating fittings of ceramics 8547.90.00 -Other Exécution du budget ANNE (article Numéro tarifaire Dénomination des marchandises 8504.10.00 -Ballasts pour lampes ou tubes à décharge -Transformateurs à diélectrique liquide : 8504.21.00 --D’une puissance n’excédant pas 650 kVA 8504.22.00 --D’une puissance excédant 650 kVA mais n’excédan pas 10.000 kVA 8504.23.00 --D’une puissance excédant 10.000 kVA Numéro tarifaire C. 2 Budget Implementatio Dénomination des marchandises -Autres transformateurs : 8504.31.00 --D’une puissance n’excédant pas 1 kVA 8504.32.00 --D’une puissance excédant 1 kVA mais n’excédant pa 16 kVA 8504.33.00 --D’une puissance excédant 16 kVA mais n’excédant pa 500 kVA 8504.34.00 --D’une puissance excédant 500 kVA 8504.50.00 -Autres bobines de réactance et autres selfs Exécution du budget Numéro tarifaire Dénomination des marchandises 8505.19.00 --Autres 8505.20.00 -Accouplements, embrayages, variateurs de vitesse et freins électromagnétiques 8512.20.00 -Autres appareils d’éclairage ou de signalisation visuel 8512.90.00 -Parties C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8514.10.00 -Fours à résistance (à chauffage indirect) 8514.20.00 -Fours fonctionnant par induction ou par pertes diélectriques 8514.30.00 -Autres fours 8514.40.00 -Autres appareils pour le traitement thermique des matières par induction ou par pertes diélectriques 8515.19.00 --Autres Numéro tarifaire Exécution du budget Dénomination des marchandises -Machines et appareils pour le soudage des métaux pa résistance : 8515.21.00 --Entièrement ou partiellement automatiques 8515.29.00 --Autres 8535.10.00 -Fusibles et coupe-circuit à fusibles 8535.21.00 --Pour une tension inférieure à 72,5 kV C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8535.30.00 -Sectionneurs et interrupteurs 8536.10.00 -Fusibles et coupe-circuit à fusibles -Relais : 8536.41.00 --Pour une tension n’excédant pas 60 V 8536.49.00 --Autres Exécution du budget Numéro tarifaire Dénomination des marchandises 8536.69.00 --Autres 8537.10.93 ----Tableaux et panneaux de distribution 8537.20.00 -Pour une tension excédant 1.000 V 8538.10.00 -Tableaux, panneaux, consoles, pupitres, armoires et autres supports du n° 85.37, dépourvus de leurs apparei 8538.90.90 ---Autres C. 2 Budget Implementatio Numéro tarifaire Dénomination des marchandises 8540.81.00 --Tubes de réception ou d’amplification 8543.10.00 -Accélérateurs de particules 8543.30.00 -Machines et appareils de galvanoplastie, électrolyse o électrophorèse 8543.70.00 -Autres machines et appareils Exécution du budget Numéro tarifaire Dénomination des marchandises 8543.90.00 -Parties 8544.20.00 -Câbles coaxiaux et autres conducteurs électriques coaxiaux 8544.42.00 --Munis de pièces de connexion 8547.10.00 -Pièces isolantes en céramique 8547.90.00 -Autres Numéro tarifaire C. 2 Budget Implementatio Dénomination des marchandises C. 2 Budget Implementation SCHED (Sectio Tariff Item Description of Goods 9801.10 -Conveyances and containers 9801.10.10 ---Conveyances, (a) on condition that: (i) in the case of vehicles, they are registered and licensed in a foreign country and operated in Canad with a vehicle licence issued by the appropriate provincial licensing authority; (ii) in the case of aircraft, they comply with the requirements of the Aeronautics Act and any regulations made thereunder; and (iii) in the case of vessels, they comply with the requirements of the Canada Shipping Act and Coasting Trade Act; and (b) on condition that the conveyances: (i) are owned or leased and imported by a person whose domicile is in a foreign country; (ii) leave from and return to the foreign country i the normal course of operation; (iii) are controlled from the foreign country; and (iv) are exported within 30 days of the date of the importation or for an additional period not exceeding 24 months where a customs officer is satisfied that the exportation of the conveyances delayed because: (A) of adverse weather conditions; (B) the conveyances are being equipped, reconditioned, reconstructed, refurbished or repaired; (C) the conveyances have a major equipment breakdown; (D) the conveyances are detained under an ord of a Canadian court, or under an Act of Parliament or the legislature of a province or an regulation made thereunder; or (E) the delivery of the goods to be loaded on o in the conveyances is delayed. The conveyances provided for in this tariff item ma engage in the transportation of goods from one poin in Canada to another point in Canada where: (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and (c) the conveyance has not entered Canada for the purpose of an in-transit movement through Canada a point outside of Canada Exécution du budget Tariff Item Description of Goods 9801.10.20 ---Containers, on condition that: (a) the ancillary equipment for the containers does not include vehicles, accessories, spare parts of vehicles or packaging, and (b) the containers: (i) are fully or partially enclosed to constitute a compartment intended for containing goods; (ii) are of a permanent character and suitable for repeated use; (iii) are designed to carry goods by one or more modes of transport without requiring intermediat reloading; and (iv) are 6.1 m or more in length or have an intern volume of 14 m3 or more; (v) leave from and return to a foreign country in th normal course of operation; and (vi) are exported within 30 days of the date of the importation or for an additional period not exceeding 24 months where a customs officer is satisfied that the exportation of the containers is delayed because: (A) of adverse weather conditions; (B) the containers are being equipped, reconditioned, reconstructed, refurbished or repaired; (C) the containers have a major equipment breakdown; (D) the containers are detained under an order o a Canadian court, or under an Act of Parliamen or the legislature of a province or any regulatio made thereunder; or (E) the delivery of the goods to be loaded in th containers is delayed. The containers provided for in this tariff item may engage in the transportation of goods from one poin in Canada to another point in Canada where: (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and (c) the container has not entered Canada for the purpose of an in-transit movement through Canada a point outside of Canada C. 2 Budget Implementatio ANNE (article Numéro tarifaire Dénomination des marchandises 9801.10 -Moyens de transport et conteneurs 9801.10.10 ---Moyens de transport, a) à la condition que : i) dans le cas des véhicules, ils sont enregistrés et immatriculés dans un pays étranger et sont exploité au Canada en vertu du permis approprié délivré par l’autorité provinciale compétente; ii) dans le cas des aéronefs, ils sont conformes au exigences de la Loi sur l’aéronautique et de ses règlements d’application; et iii) dans le cas des navires, ils sont conformes aux exigences de la Loi sur la marine marchande du Canada et de la Loi sur le cabotage, et b) à la condition que les moyens de transport : i) appartiennent à une personne dont le domicile e dans un pays étranger, ou soient loués par une tel personne, et soient importés par une telle personn ii) quittent le pays étranger et y retournent dans le cours normal de l’exploitation; iii) soient contrôlés depuis le pays étranger; et iv) soient exportés dans les 30 jours suivant la da de leurs importations ou pour une période additionnelle n’excédant pas 24 mois, si un agent des douanes est satisfait que l’exportation des moyens de transport est retardée pour l’une des raisons suivantes : A) des conditions atmosphériques défavorable B) l’équipement, la remise à neuf, la reconstruction, la rénovation ou la réparation des moyen de transport; C) une panne de matériel importante des moyen de transport; D) la retenue des moyens de transport en vertu d’une ordonnance d’un tribunal canadien ou d’une loi fédérale ou provinciale ou d’un de leurs règlements d’application; ou E) un retard dans la livraison des marchandises devant être chargées dans ou sur les moyens de transport. Les moyens de transport visés par le présent numéro tarifaire peuvent être utilisés pour le transport de marchandises d’un lieu à un autre au Canada si les conditions suivantes sont réunies : a) le transport est accessoire au commerce international des marchandises; b) le transport ne se fait pas hors des limites territoriales du Canada; et Numéro tarifaire Exécution du budget Dénomination des marchandises c) le moyen de transport n’entre pas au Canada à la seule fin de se rendre, via le Canada, à un lieu situé à l’extérieur du Canada 9801.10.20 ---Conteneurs, à la condition que : a) l’équipement auxiliaire pour les conteneurs n’incluent pas de véhicules, d’accessoires, de pièces de rechange de véhicules ou d’emballages, e b) les conteneurs : i) soient partiellement ou complètement fermés d manière à constituer des compartiments destinés contenir des marchandises; ii) aient un caractère permanent et se prêtent à un utilisation répétée; iii) soient conçus pour le transport de marchandise par un ou plusieurs modes de transport sans rechargement intermédiaire; et iv) soient de longueur d’au moins 6,1 m ou d’un volume intérieur d’au moins 14 m³; v) quittent le pays étranger et y retournent dans le cours normal de l’exploitation; et vi) soient exportés dans les 30 jours suivant la da de leurs importations ou pour une période additionnelle n’excédant pas 24 mois, si un agent des douanes est satisfait que l’exportation des conteneurs est retardée pour l’une des raisons suivantes : A) des conditions atmosphériques défavorable B) l’équipement, la remise à neuf, la reconstruction, la rénovation ou la réparation des conteneurs; C) une panne de matériel importante des conteneurs; D) la retenue des conteneurs en vertu d’une ordonnance d’un tribunal canadien ou d’une loi fédérale ou provinciale ou d’un de leurs règlements d’application; ou E) un retard dans la livraison des marchandises devant être chargées dans les conteneurs. Les moyens de transport ou les conteneurs visés par présent numéro tarifaire peuvent être utilisés pour le transport de marchandises d’un lieu à un autre au Canada si les conditions suivantes sont réunies : a) le transport est accessoire au commerce international des marchandises; b) le transport ne se fait pas hors de limites territoriale du Canada; et c) le moyen de transport ou le conteneur n’entre pas au Canada à la seule fin de se rendre, via le Canada à un lieu situé à l’extérieur du Canada C. 2 Budget Implementation SCHED (Sectio Tariff Item Description of Goods 9976.00.00 Articles and materials, wholly or in chief part of metal for use in the manufacture of gas turbines or parts thereo Articles for use in the repair or overhaul of gas turbine or parts thereof Exécution du budget ANNE (article Numéro tarifaire 9976.00.00 Dénomination des marchandises Articles et matières, faits entièrement ou principaleme en métal, devant servir à la fabrication de turbines à ga ou leurs parties; Articles devant servir à la réparation ou révision de turbines à gaz ou leurs parties C. 2 Budget Implementation SCHED (Subsectio Tariff Item 0404.90.10 Most-Favoured-Nation Tariff Effective on September 8, 2008.............................................3% Exécution du budget ANNE (paragraph Numéro tarifaire 0404.90.10 Tarif de la nation la plus favorisée À compter du 8 septembre 2008........................................3 % C. 2 Budget Implementation SCHED (Subsectio Tariff Item Most-Favoured-Nation Tariff 8406.90.32 Effective on January 28, 2009.......Free 8406.90.34 Effective on January 28, 2009.......Free 8406.90.37 Effective on January 28, 2009.......Free 8406.90.39 Effective on January 28, 2009.......Free 8413.91.10 Effective on January 28, 2009.......Free 8413.91.20 Effective on January 28, 2009.......Free 8417.20.00 Effective on January 28, 2009.......Free 8418.61.91 Effective on January 28, 2009.......Free 8419.89.21 Effective on January 28, 2009.......Free 8419.89.90 Effective on January 28, 2009.......Free 8421.39.90 Effective on January 28, 2009.......Free 8422.19.00 Effective on January 28, 2009.......Free 8423.20.00 Effective on January 28, 2009.......Free 8423.30.00 Effective on January 28, 2009.......Free 8423.81.00 Effective on January 28, 2009.......Free 8423.82.00 Effective on January 28, 2009.......Free 8423.89.00 Effective on January 28, 2009.......Free 8423.90.00 Effective on January 28, 2009.......Free 8427.20.11 Effective on January 28, 2009.......Free 8439.10.10 Effective on January 28, 2009.......Free 8439.20.90 Effective on January 28, 2009.......Free 8439.30.10 Effective on January 28, 2009.......Free 8443.12.00 Effective on January 28, 2009.......Free 8462.99.19 Effective on January 28, 2009.......Free 8464.90.10 Effective on January 28, 2009.......Free 8468.10.00 Effective on January 28, 2009.......Free 8468.20.00 Effective on January 28, 2009.......Free 8472.10.00 Effective on January 28, 2009.......Free 8479.50.91 Effective on January 28, 2009.......Free 8479.89.30 Effective on January 28, 2009.......Free 8479.89.41 Effective on January 28, 2009.......Free 8482.99.11 Effective on January 28, 2009.......Free 8483.50.20 Effective on January 28, 2009.......Free 8483.50.90 Effective on January 28, 2009.......Free 8483.60.90 Effective on January 28, 2009.......Free Exécution du budget Tariff Item Most-Favoured-Nation Tariff 8483.90.20 Effective on January 28, 2009.......Free 8483.90.30 Effective on January 28, 2009.......Free 8504.40.10 Effective on January 28, 2009.......Free 8504.40.40 Effective on January 28, 2009.......Free 8505.11.00 Effective on January 28, 2009.......Free 8515.11.00 Effective on January 28, 2009.......Free 8515.31.00 Effective on January 28, 2009.......Free 8515.39.00 Effective on January 28, 2009.......Free 8515.80.00 Effective on January 28, 2009.......Free 8535.29.00 Effective on January 28, 2009.......Free 8535.40.00 Effective on January 28, 2009.......Free 8535.90.20 Effective on January 28, 2009.......Free 8535.90.30 Effective on January 28, 2009.......Free 8535.90.90 Effective on January 28, 2009.......Free 8536.30.20 Effective on January 28, 2009.......Free 8536.30.90 Effective on January 28, 2009.......Free 8536.50.12 Effective on January 28, 2009.......Free 8536.50.19 Effective on January 28, 2009.......Free 8536.90.99 Effective on January 28, 2009.......Free 8537.10.19 Effective on January 28, 2009.......Free 8537.10.29 Effective on January 28, 2009.......Free 8537.10.91 Effective on January 28, 2009.......Free 8537.10.99 Effective on January 28, 2009.......Free 8538.90.10 Effective on January 28, 2009.......Free 8538.90.20 Effective on January 28, 2009.......Free 8538.90.39 Effective on January 28, 2009.......Free 8540.11.11 Effective on January 28, 2009.......Free 8540.11.12 Effective on January 28, 2009.......Free 8540.11.21 Effective on January 28, 2009.......Free 8540.11.22 Effective on January 28, 2009.......Free 8540.11.90 Effective on January 28, 2009.......Free 8540.12.19 Effective on January 28, 2009.......Free 8540.12.99 Effective on January 28, 2009.......Free 8540.40.90 Effective on January 28, 2009.......Free 8540.50.90 Effective on January 28, 2009.......Free 8540.60.90 Effective on January 28, 2009.......Free 8540.72.00 Effective on January 28, 2009.......Free 8540.79.00 Effective on January 28, 2009.......Free 8540.89.00 Effective on January 28, 2009.......Free C. 2 Budget Implementatio Tariff Item Most-Favoured-Nation Tariff 8543.20.00 Effective on January 28, 2009.......Free 8546.10.00 Effective on January 28, 2009.......Free 8546.20.00 Effective on January 28, 2009.......Free Exécution du budget ANNE (paragraph Numéro tarifaire Tarif de la nation la plus favorisée 8406.90.32 À compter du 28 janvier 2009.....En fr. 8406.90.34 À compter du 28 janvier 2009.....En fr. 8406.90.37 À compter du 28 janvier 2009.....En fr. 8406.90.39 À compter du 28 janvier 2009.....En fr. 8413.91.10 À compter du 28 janvier 2009.....En fr. 8413.91.20 À compter du 28 janvier 2009.....En fr. 8417.20.00 À compter du 28 janvier 2009.....En fr. 8418.61.91 À compter du 28 janvier 2009.....En fr. 8419.89.21 À compter du 28 janvier 2009.....En fr. 8419.89.90 À compter du 28 janvier 2009.....En fr. 8421.39.90 À compter du 28 janvier 2009.....En fr. 8422.19.00 À compter du 28 janvier 2009.....En fr. 8423.20.00 À compter du 28 janvier 2009.....En fr. 8423.30.00 À compter du 28 janvier 2009.....En fr. 8423.81.00 À compter du 28 janvier 2009.....En fr. 8423.82.00 À compter du 28 janvier 2009.....En fr. 8423.89.00 À compter du 28 janvier 2009.....En fr. 8423.90.00 À compter du 28 janvier 2009.....En fr. 8427.20.11 À compter du 28 janvier 2009.....En fr. 8439.10.10 À compter du 28 janvier 2009.....En fr. 8439.20.90 À compter du 28 janvier 2009.....En fr. 8439.30.10 À compter du 28 janvier 2009.....En fr. 8443.12.00 À compter du 28 janvier 2009.....En fr. 8462.99.19 À compter du 28 janvier 2009.....En fr. 8464.90.10 À compter du 28 janvier 2009.....En fr. 8468.10.00 À compter du 28 janvier 2009.....En fr. 8468.20.00 À compter du 28 janvier 2009.....En fr. 8472.10.00 À compter du 28 janvier 2009.....En fr. 8479.50.91 À compter du 28 janvier 2009.....En fr. 8479.89.30 À compter du 28 janvier 2009.....En fr. 8479.89.41 À compter du 28 janvier 2009.....En fr. 8482.99.11 À compter du 28 janvier 2009.....En fr. 8483.50.20 À compter du 28 janvier 2009.....En fr. 8483.50.90 À compter du 28 janvier 2009.....En fr. 8483.60.90 À compter du 28 janvier 2009.....En fr. C. 2 Budget Implementatio Numéro tarifaire Tarif de la nation la plus favorisée 8483.90.20 À compter du 28 janvier 2009.....En fr. 8483.90.30 À compter du 28 janvier 2009.....En fr. 8504.40.10 À compter du 28 janvier 2009.....En fr. 8504.40.40 À compter du 28 janvier 2009.....En fr. 8505.11.00 À compter du 28 janvier 2009.....En fr. 8515.11.00 À compter du 28 janvier 2009.....En fr. 8515.31.00 À compter du 28 janvier 2009.....En fr. 8515.39.00 À compter du 28 janvier 2009.....En fr. 8515.80.00 À compter du 28 janvier 2009.....En fr. 8535.29.00 À compter du 28 janvier 2009.....En fr. 8535.40.00 À compter du 28 janvier 2009.....En fr. 8535.90.20 À compter du 28 janvier 2009.....En fr. 8535.90.30 À compter du 28 janvier 2009.....En fr. 8535.90.90 À compter du 28 janvier 2009.....En fr. 8536.30.20 À compter du 28 janvier 2009.....En fr. 8536.30.90 À compter du 28 janvier 2009.....En fr. 8536.50.12 À compter du 28 janvier 2009.....En fr. 8536.50.19 À compter du 28 janvier 2009.....En fr. 8536.90.99 À compter du 28 janvier 2009.....En fr. 8537.10.19 À compter du 28 janvier 2009.....En fr. 8537.10.29 À compter du 28 janvier 2009.....En fr. 8537.10.91 À compter du 28 janvier 2009.....En fr. 8537.10.99 À compter du 28 janvier 2009.....En fr. 8538.90.10 À compter du 28 janvier 2009.....En fr. 8538.90.20 À compter du 28 janvier 2009.....En fr. 8538.90.39 À compter du 28 janvier 2009.....En fr. 8540.11.11 À compter du 28 janvier 2009.....En fr. 8540.11.12 À compter du 28 janvier 2009.....En fr. 8540.11.21 À compter du 28 janvier 2009.....En fr. 8540.11.22 À compter du 28 janvier 2009.....En fr. 8540.11.90 À compter du 28 janvier 2009.....En fr. 8540.12.19 À compter du 28 janvier 2009.....En fr. 8540.12.99 À compter du 28 janvier 2009.....En fr. 8540.40.90 À compter du 28 janvier 2009.....En fr. 8540.50.90 À compter du 28 janvier 2009.....En fr. 8540.60.90 À compter du 28 janvier 2009.....En fr. 8540.72.00 À compter du 28 janvier 2009.....En fr. 8540.79.00 À compter du 28 janvier 2009.....En fr. 8540.89.00 À compter du 28 janvier 2009.....En fr. Exécution du budget Numéro tarifaire Tarif de la nation la plus favorisée 8543.20.00 À compter du 28 janvier 2009.....En fr. 8546.10.00 À compter du 28 janvier 2009.....En fr. 8546.20.00 À compter du 28 janvier 2009.....En fr. C. 2 Budget Implementatio SCHED (Subsectio SCHED (Subsectio TABLE OF WEEK Regional Rate of U Number of hours of insurable employment in qualifying period 420–454 455–489 490–524 525–559 560–594 595–629 630–664 665–699 700–734 735–769 770–804 805–839 840–874 875–909 910–944 945–979 980–1014 1015–1049 1050–1084 1085–1119 1120–1154 1155–1189 1190–1224 1225–1259 1260–1294 1295–1329 1330–1364 1365–1399 1400–1434 1435–1469 1470–1504 1505–1539 1540–1574 1575–1609 1610–1644 1645–1679 1680–1714 1715–1749 1750–1784 6% and under 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 30 31 32 33 34 35 36 37 38 39 More than 6% but not more than 7% 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 32 33 34 35 36 37 38 39 40 41 More than 7% but not more than 8% More than 8% but not more than 9% More than 9% but not more than 10% 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 34 35 36 37 38 39 40 41 42 43 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 36 37 38 39 40 41 42 43 44 45 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 38 39 40 41 42 43 44 45 46 47 M than bu m than Exécution du budget Regional Rate of U Number of hours of insurable employment in qualifying period 1785–1819 1820– 6% and under 40 41 More than 6% but not more than 7% 42 43 More than 7% but not more than 8% 44 45 More than 8% but not more than 9% 46 47 More than 9% but not more than 10% 48 49 M than bu m than C. 2 Budget Implementatio ANNE (paragraph ANNE (paragrap TABLEAU DES SEMAIN Taux régional d Nombre d’heures d’emploi assurable au cours de la période de référence 420–454 455–489 490–524 525–559 560–594 595–629 630–664 665–699 700–734 735–769 770–804 805–839 840–874 875–909 910–944 945–979 980–1014 1015–1049 1050–1084 1085–1119 1120–1154 1155–1189 1190–1224 1225–1259 1260–1294 1295–1329 1330–1364 1365–1399 1400–1434 1435–1469 1470–1504 1505–1539 1540–1574 1575–1609 1610–1644 1645–1679 1680–1714 1715–1749 6 % et moins 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 30 31 32 33 34 35 36 37 38 Plus de 6% mais au plus 7 % 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 32 33 34 35 36 37 38 39 40 Plus de 7% mais au plus 8 % 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 34 35 36 37 38 39 40 41 42 Plus de 8% mais au plus 9 % Plus de 9 % mais au plus 10 % Plus de 10 % mai au plus 11 % 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 36 37 38 39 40 41 42 43 44 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 38 39 40 41 42 43 44 45 46 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 40 41 42 43 44 45 46 47 48 Exécution du budget Taux régional d Nombre d’heures d’emploi assurable au cours de la période de référence 1750–1784 1785–1819 1820– 6 % et moins 39 40 41 Plus de 6% mais au plus 7 % 41 42 43 Plus de 7% mais au plus 8 % 43 44 45 Plus de 8% mais au plus 9 % 45 46 47 Plus de 9 % mais au plus 10 % 47 48 49 Plus de 10 % mai au plus 11 % 49 50 50 C. 2 Budget Implementatio SCHED (Subsectio SCHED (Subsectio TABLE OF WEEK Regional Rate of U Number of hours of insurable employment in qualifying period 420–454 455–489 490–524 525–559 560–594 595–629 630–664 665–699 700–734 735–769 770–804 805–839 840–874 875–909 910–944 945–979 980–1014 1015–1049 1050–1084 1085–1119 1120–1154 1155–1189 1190–1224 1225–1259 1260–1294 1295–1329 1330–1364 1365–1399 1400–1434 1435–1469 1470–1504 1505–1539 1540–1574 1575–1609 1610–1644 1645–1679 1680–1714 1715–1749 1750–1784 6% and under 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 25 26 27 28 29 30 31 32 33 34 More than 6% but not more than 7% 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 27 28 29 30 31 32 33 34 35 36 More than 7% but not more than 8% More than 8% but not more than 9% More than 9% but not more than 10% 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 29 30 31 32 33 34 35 36 37 38 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 31 32 33 34 35 36 37 38 39 40 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 33 34 35 36 37 38 39 40 41 42 M than bu m than Exécution du budget Regional Rate of U Number of hours of insurable employment in qualifying period 1785–1819 1820– 6% and under 35 36 More than 6% but not more than 7% 37 38 More than 7% but not more than 8% 39 40 More than 8% but not more than 9% 41 42 More than 9% but not more than 10% 43 44 M than bu m than C. 2 Budget Implementatio ANNE (paragraph ANNE (paragrap TABLEAU DES SEMAIN Taux régional d Nombre d’heures d’emploi assurable au cours de la période de référence 420–454 455–489 490–524 525–559 560–594 595–629 630–664 665–699 700–734 735–769 770–804 805–839 840–874 875–909 910–944 945–979 980–1014 1015–1049 1050–1084 1085–1119 1120–1154 1155–1189 1190–1224 1225–1259 1260–1294 1295–1329 1330–1364 1365–1399 1400–1434 1435–1469 1470–1504 1505–1539 1540–1574 1575–1609 1610–1644 1645–1679 1680–1714 6 % et moins 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 25 26 27 28 29 30 31 32 Plus de 6% mais au plus 7 % 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 27 28 29 30 31 32 33 34 Plus de 7% mais au plus 8 % 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 29 30 31 32 33 34 35 36 Plus de 8% mais au plus 9 % Plus de 9 % mais au plus 10 % Plus de 10 % mai au plus 11 % 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 31 32 33 34 35 36 37 38 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 33 34 35 36 37 38 39 40 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 35 36 37 38 39 40 41 42 Exécution du budget Taux régional d Nombre d’heures d’emploi assurable au cours de la période de référence 1715–1749 1750–1784 1785–1819 1820– 6 % et moins 33 34 35 36 Plus de 6% mais au plus 7 % 35 36 37 38 Plus de 7% mais au plus 8 % 37 38 39 40 Plus de 8% mais au plus 9 % 39 40 41 42 Plus de 9 % mais au plus 10 % 41 42 43 44 Plus de 10 % mai au plus 11 % 43 44 45 45 C. 2 Budget Implementatio SCHEDULE 10 (Section 225) Column 1 Column 2 Number of Hours of Insurable Employment Number of Weeks of Benefits 420–454 455–489 490–524 525–559 560–594 595–629 630–664 665–699 700–734 735–769 770–804 805–839 840–874 875–909 910–944 945–979 980–1,014 1,015–1,049 1,050–1,084 1,085–1,119 1,120–1,154 1,155–1,189 1,190–1,224 1,225–1,259 1,260–1,294 1,295–1,329 1,330–1,364 1,365–1,399 1,400–1,434 1,435–1,469 1,470–1,504 1,505–1,539 1,540–1,574 1,575–1,609 1,610–1,644 1,645–1,679 1,680–1,714 1,715–1,749 1,750–1,784 1,785–1,819 1,820 or more 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Exécution du budget SCHEDULE 11 (Section 393) SCHEDULE 1 (Sections 13 and 65) CROWN CORPORATIONS AND PUBLIC BODIES Canada Council for the Arts Conseil des Arts du Canada Canadian Broadcasting Corporation Société Radio-Canada Canadian Centre for Occupational Health and Safety Centre canadien d’hygiène et de sécurité au travail Canadian Commercial Corporation Corporation commerciale canadienne Canadian Museum of Civilization Musée canadien des civilisations Canadian Museum of Nature Musée canadien de la nature Canadian Tourism Commission Commission canadienne du tourisme International Development Research Centre Centre de recherches pour le développement international National Arts Centre Corporation Corporation du Centre national des Arts National Battlefields Commission, The Commission des champs de bataille nationaux National Gallery of Canada Musée des beaux-arts du Canada National Museum of Science and Technology Musée national des sciences et de la technologie Office of the Communications Security Establishment Commissioner Bureau du commissaire du Centre de la sécurité des télécommunications Telefilm Canada Téléfilm Canada C. 2 Budget Implementatio SCHEDULE 2 (Sections 34 and 54) RATES OF PAY — EMPLOYEES IN THE LAW GROUP All regions except Toronto Minimum Maximum LA-DEV LA-01 LA-02(A) or LA-02(I) LA-02(B) or LA-02(II) LA-03(A) LA-03(B) LA-03(C) $27,410 $54,580 $75,622 $94,097 $107,300 $124,400 $141,700 $62,155 $77,868 $108,525 $119,975 $136,300 $152,200 $172,800 Toronto region Minimum Maximum LA-DEV LA-01 LA-02(A) or LA-02(I) LA-02(B) or LA-02(II) LA-03(A) LA-03(B) LA-03(C) $27,410 $54,585 $75,630 $98,840 $113,600 $124,400 $141,700 $62,155 $77,868 $124,940 $138,075 $148,100 $152,200 $172,800 Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 32 An Act to amend the Excise Tax Act ASSENTED TO 15th DECEMBER, 2009 BILL C-62 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Excise Tax Act”. SUMMARY This enactment amends the Excise Tax Act (the “Act”) to implement, effective July 1, 2010, the new fully harmonized value-added tax framework in Ontario and British Columbia. It also facilitates the new framework to accommodate any province’s decision to have the provincial component of the harmonized value-added tax under the Act apply in that province by achieving a common understanding with Canada in respect of such a new framework, including the provision of rules and mechanisms to ensure (a) the proper imposition of the provincial component of the harmonized value-added tax in respect of that province; (b) the proper application of any element of provincial tax policy flexibility contemplated under the common understanding, including rate flexibility for the provincial component of the harmonized value-added tax, rebate flexibility in respect of the provincial component of the harmonized valueadded tax and the temporary recapture of certain input tax credits in respect of the provincial component of the harmonized value-added tax; (c) the proper functioning and application of the Act in all respects, including provisions flowing from the provincial tax policy flexibility contemplated under the common understanding and the addition of every province that chooses to join the new framework; and (d) the proper administration and enforcement of, and compliance with, the Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 32 An Act to amend the Excise Tax Act [Assented to 15th December, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title R.S., c. E-15 1. This Act may be cited as the Provincial Choice Tax Framework Act. EXCISE TAX ACT 2. (1) The definitions “participating province” and “tax rate” in subsection 123(1) of the Excise Tax Act are replaced by the following: “participating province” « province participante » “participating province” means (a) a province or area referred to in Schedule VIII, but does not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities are carried on in that area, and (b) if there is a sales tax harmonization agreement with the government of a province relating to the new harmonized value-added tax system and the province is a prescribed province, that province; “tax rate” « taux de taxe » “tax rate”, for or in relation to a participating province, means (a) if there is a sales tax harmonization agreement with the government of the participating province relating to the new harmonized value-added tax system, the rate that is prescribed for the participating province, C. 32 Excise (b) if the participating province is an offshore area referred to in the definition “participating province”, the rate that is prescribed for the participating province, and (c) in the absence of a rate that is prescribed for the participating province, the rate set opposite the name of the participating province in Schedule VIII; (2) The portion of paragraph (b) of the definition “basic tax content” in subsection 123(1) of the Act before the first formula is replaced by the following: (b) if the person brought the property into a participating province from another province for consumption, use or supply in the participating province in circumstances in which the person was required to pay tax in respect of the property under section 220.05, or would have been required to pay that tax but for the fact that the property was brought into that province for consumption, use or supply exclusively in commercial activities or the person was exempt from paying that tax under any other Act or law, the amount determined by the formula (3) Paragraph (d) of the definition “direct cost” in subsection 123(1) of the Act is replaced by the following: (d) if the property was brought into a participating province from another province, any tax under this Part payable by the supplier in respect of the bringing in of the property into the participating province, and (4) Subsection 123(1) of the Act is amended by adding the following in alphabetical order: “harmonization date” « date d’harmonisation » “harmonization date” for a participating province means (a) April 1, 1997 in the case of Nova Scotia, New Brunswick, Newfoundland and Labrador, the Nova Scotia offshore area or the Newfoundland offshore area, (b) July 1, 2010 in the case of Ontario or British Columbia, and Taxe d’ (c) the prescribed date in the case of another participating province; “new harmonized value-added tax system” « nouveau régime de la taxe à valeur ajoutée harmonisée » “sales tax harmonization agreement” « accord d’harmonisation de la taxe de vente » “new harmonized value-added tax system” has the same meaning as in subsection 277.1(1); “sales tax harmonization agreement” has the same meaning as in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act; (5) Subsections (1) to (4) come into force, or are deemed to have come into force, on July 1, 2010. 3. (1) Section 132.1 of the Act is amended by adding the following after subsection (2): Permanent establishment in a province (3) A prescribed person, or a person of a prescribed class, is deemed, under prescribed circumstances and for prescribed purposes, to have a permanent establishment in a prescribed province. (2) Subsection (1) applies in respect of any fiscal year of a person that ends on or after July 1, 2008. 4. (1) Subsection 149(5) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f): (g) a prescribed person, or a person of a prescribed class, but only where the person would be a selected listed financial institution for a reporting period in a fiscal year that ends in a taxation year of the person if the person were a listed financial institution included in subparagraph 149(1)(a)(ix) during the taxation year and the preceding taxation year of the person. C. 32 Excise (2) Subsection (1) applies in respect of any taxation year of a person that ends on or after July 1, 2008. 5. (1) Subsection 169(3) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) the amount is a prescribed amount. (2) Subsection (1) applies in respect of any reporting period of a person that ends on or after July 1, 2010. 6. (1) Subclause (I) of the description of A in clause 173(1)(d)(ii)(B) of the French version of the Act is replaced by the following: (I) si l’un ou l’autre des faits suivants s’avère : 1. l’avantage est à inclure, en application des alinéas 6(1)a) ou e) de la Loi de l’impôt sur le revenu, dans le calcul du revenu du particulier tiré d’une charge ou d’un emploi et le dernier établissement de l’employeur auquel le particulier travaillait ou se présentait habituellement au cours de l’année dans le cadre de cette charge ou de cet emploi est situé dans une province participante, 2. l’avantage est à inclure, en application du paragraphe 15(1) de cette loi, dans le calcul du revenu du particulier et celui-ci réside dans une province participante à la fin de l’année, la somme de 4 % et du pourcentage déterminé selon les modalités réglementaires relativement à la province ou, en l’absence d’un tel Taxe d’ pourcentage, la somme de 4 % et du taux de taxe applicable à la province, (2) The portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the English version of the Act after subsubclause 2 is replaced by the following: the total of 4% and the percentage determined in prescribed manner in respect of the participating province or, in the absence of a percentage determined in prescribed manner in respect of the participating province, the total of 4% and the tax rate for the participating province, and (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010. 7. (1) Subparagraph (i) of the description of B in paragraph 174(e) of the French version of the Act is replaced by the following: (i) dans les circonstances prévues par règlement relativement à une province participante, le pourcentage déterminé selon les modalités réglementaires, (2) Subparagraph (i) of the description of B in paragraph 174(f) of the English version of the Act is replaced by the following: (i) in prescribed circumstances relating to a participating province, the percentage determined in prescribed manner, and (3) Subsections (1) and (2) apply to any allowance paid by a person on or after July 1, 2010. 8. (1) Section 178.3 of the Act is amended by adding the following after subsection (6): Adjustment in respect of participating provinces (6.1) In determining the net tax of a direct seller for a reporting period of the direct seller that includes a prescribed time, the direct seller C. 32 Excise shall add or may deduct, as the case may require, an amount determined in prescribed manner if (a) the direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller; (b) tax payable under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller; (c) an independent sales contractor of the direct seller makes a supply of the exclusive product in another participating province; and (d) prescribed conditions, if any, are satisfied. (2) Subsection (1) applies in respect of any reporting period of a direct seller that ends on or after July 1, 2010. 9. (1) Section 178.4 of the Act is amended by adding the following after subsection (6): Adjustment in respect of participating provinces (6.1) In determining the net tax of a distributor of a direct seller for a reporting period of the distributor that includes a prescribed time, the distributor shall add or may deduct, as the case may require, an amount determined in prescribed manner if (a) the distributor makes a supply of an exclusive product of the direct seller in a participating province in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor; (b) tax payable under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor; (c) a particular independent sales contractor of the direct seller (other than the distributor) makes a supply of the exclusive product in another participating province; and Taxe d’ (d) prescribed conditions, if any, are satisfied. (2) Subsection (1) applies in respect of any reporting period of a distributor of a direct seller that ends on or after July 1, 2010. 10. (1) Sub-subclause (I)1 of the description of A in subparagraph 183(6)(a)(ii) of the Act is replaced by the following: 1. the property is situated in a participating province at the particular time, it was seized or repossessed before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, or (2) Clause (i)(A) of the description of A in paragraph 183(7)(b) of the French version of the Act is replaced by the following: (A) le créancier a saisi le bien, ou en a repris possession, dans une province participante avant le jour qui suit de trois ans la date d’harmonisation applicable à la province et la fourniture taxable est soit effectuée à l’étranger, soit une fourniture détaxée, (3) Clause (i)(A) of the description of A in paragraph 183(7)(d) of the English version of the Act is replaced by the following: (A) the property was seized or repossessed in a participating province by the creditor before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or (4) Clause 183(8)(b)(i)(A) of the French version of the Act is replaced by the following: C. 32 Excise (A) le créancier a saisi le bien, ou en a repris possession, dans une province participante avant le jour qui suit de trois ans la date d’harmonisation applicable à la province et la fourniture taxable est soit effectuée à l’étranger, soit une fourniture détaxée, (5) Clause 183(8)(d)(i)(A) of the English version of the Act is replaced by the following: (A) the property was seized or repossessed in a participating province by the creditor before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zerorated supply, or (6) Subsections (1) to (5) come into force, or are deemed to have come into force, on July 1, 2010. 11. (1) Subclause (A)(I) of the description of A in subparagraph 184(5)(a)(ii) of the Act is replaced by the following: (I) the property is situated in a participating province at the particular time, it was transferred before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, or (2) Clause (i)(A) of the description of A in paragraph 184(6)(b) of the French version of the Act is replaced by the following: (A) la personne a détenu le bien la dernière fois dans une province participante avant de le transférer à l’assureur, le bien a été ainsi transféré avant le jour qui suit de trois ans la date d’harmonisation applicable à la province et la fourniture taxable est soit effectuée à l’étranger, soit une fourniture détaxée, Taxe d’ (3) Clause (i)(A) of the description of A in paragraph 184(6)(d) of the English version of the Act is replaced by the following: (A) the property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zerorated supply, or (4) Clause 184(7)(b)(i)(A) of the French version of the Act is replaced by the following: (A) la personne a détenu le bien la dernière fois dans une province participante avant de le transférer à l’assureur, le bien a été ainsi transféré avant le jour qui suit de trois ans la date d’harmonisation applicable à la province et la fourniture taxable est soit effectuée à l’étranger, soit une fourniture détaxée, (5) Clause 184(7)(d)(i)(A) of the English version of the Act is replaced by the following: (A) the property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or (6) Subsections (1) to (5) come into force, or are deemed to have come into force, on July 1, 2010. 12. (1) Subsection 196(2) of the Act is replaced by the following: Intended and actual use (2) For the purposes of this Part, if a person at any time brings capital property of the person into a particular participating province from another province and the person was using the property to a particular extent in a particular way immediately after the property or a portion of the property was last acquired, imported or C. 32 Excise brought into a participating province by the person, the person is deemed to bring it into the particular participating province for use to the particular extent in the particular way. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 13. (1) The description of A in paragraph 202(4)(b) of the Act is amended by striking out “and” at the end of subparagraph (ii) and by replacing subparagraph (iii) with the following: (iii) in the case of an acquisition or importation in respect of which tax is payable under subsection 165(2), section 212.1 or subsection 218.1(1) calculated at the tax rate for a participating province, the amount determined by the formula G/H where G is the total of the rate set out in subsection 165(1) and the tax rate for the participating province, and H is the total of 100% and the percentage determined for G, and (iv) in any other case, the amount determined by the formula I/J where I is the rate determined in prescribed manner, and J is the total of 100% and the percentage determined for I, and (2) Subsection (1) applies to any taxation year of a registrant that ends on or after July 1, 2010. 14. (1) Subsection 218.1(1) of the Act is replaced by the following: Tax in participating province 218.1 (1) Subject to this Part, Taxe d’ (a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply in participating provinces to an extent that is prescribed, shall, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula A×B×C where A is the tax rate for the participating province, B is the value of that consideration that is paid or becomes due at that time, and C is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province; and (b) every person that (i) is a registrant and is the recipient of a supply, included in paragraph (b) of the definition “imported taxable supply” in section 217, of property the physical possession of which is transferred to the registrant in a particular participating province, (ii) is the recipient of a supply, included in any of paragraphs 217(b.1) to (b.3), of property that is delivered or made available to the person in a particular participating province and is either resident in that province or is a registrant, or (iii) is the recipient of a supply that is included in paragraph 217(c.1), (d) or (e) and that is made in a particular participating province shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having C. 32 Excise become due, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula A×B×C where A is the tax rate for the particular participating province, B is the value of that consideration that is paid or becomes due at that time, and C is (A) in the case of an imported taxable supply of tangible personal property, 100%, and (B) in any other case, the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the particular participating province. (2) Subsection 218.1(2) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or’’ at the end of paragraph (b) and by adding the following after paragraph (b): (c) is a prescribed amount. (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010. 15. (1) The definition “specified provincial tax” in section 220.01 of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in the case of a vehicle registered in any other participating province, a prescribed tax. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 16. (1) Section 220.04 of the Act is replaced by the following: 2009 Selected listed financial institutions Taxe d’ 220.04 If tax under this Division would, in the absence of this section, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is a prescribed amount of tax. (2) Subsection (1) applies in respect of tax under Division IV.1 of the Act that would, in the absence of section 220.04 of the Act, as enacted by subsection (1), become payable on or after July 1, 2010. 17. (1) Subsection 220.05(1) of the Act is replaced by the following: Tax in participating province 220.05 (1) Subject to this Part, if at a particular time a person brings tangible personal property into a participating province from another province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined in prescribed manner. (2) Subsection 220.05(3) of the Act is replaced by the following: Non-taxable property (3) No tax is payable under subsection (1) (a) in respect of property that is included in Part I of Schedule X and is not prescribed property; or (b) in prescribed circumstances. (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010. 18. (1) Subsection 220.06(3) of the Act is replaced by the following: Non-taxable property (3) No tax is payable under subsection (1) (a) in respect of property that is a specified motor vehicle that is required to be registered under the laws of a participating province relating to the registration of motor vehicles, or that is included in Part I of Schedule X and is not prescribed property; or (b) in prescribed circumstances. C. 32 Excise (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 19. (1) Subsection 220.08(1) of the Act is replaced by the following: Tax in participating province 220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part in any participating province that is not the particular province shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner. (2) Subsection 220.08(3) of the Act is replaced by the following: Non-taxable supplies (3) No tax is payable under subsection (1) (a) in respect of a supply of intangible personal property or a service that is included in Part II of Schedule X and is not a prescribed supply; or (b) in prescribed circumstances. (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010. 20. (1) Paragraph (b) of the description of A in subsection 225.2(2) of the Act is replaced by the following: (b) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which paragraph (c) applies) made by a person (other than a prescribed person or a person of a prescribed class) to the financial institution that would, in the absence of an election Taxe d’ made under section 150, have become payable by the financial institution during the particular reporting period, and (2) Subsection 225.2(4) of the Act is replaced by the following: Election (4) If a person, other than a prescribed person or a person of a prescribed class, and a selected listed financial institution have made jointly an election under section 150, the person and the financial institution may make jointly an election under this subsection to have paragraph (c) of the description of A in subsection (2) apply to every supply to which subsection 150(1) applies that is made by the person to the financial institution at a time the election made under this subsection is in effect. (3) The portion of subsection 225.2(5) of the English version of the Act before paragraph (a) is replaced by the following: Form and manner of filing (5) An election under subsection (4) relating to supplies made by a person to a selected listed financial institution shall (4) Paragraph 225.2(6)(c) of the Act is replaced by the following: (c) the day the person becomes a prescribed person, or a person of a prescribed class, for the purposes of subsection (4), and (5) Section 225.2 of the Act is amended by adding the following after subsection (8): Regulations — selected listed financial institutions (9) The Governor in Council may make regulations (a) requiring any person or any class of persons to provide to a person any information that is required to allow a selected listed financial institution to determine the value of an element of a formula in subsection (2) or 237(5) or in any other provision of this Part or of a regulation made under this Part, specifying what information is to be provided, prescribing compliance measures in respect of that provision of information, and C. 32 Excise prescribing joint and several, or solidary, liability or penalties for failing to provide that information when and as required; (b) allowing a person and a selected listed financial institution to make an election in respect of the filing of the returns of the person or the financial institution, specifying the circumstances in which that election may be revoked, prescribing compliance measures or other requirements in respect of that filing, and prescribing joint and several, or solidary, liability or penalties in respect of that filing; or (c) requiring any selected listed financial institution to register under subdivision d for the purposes of this Part or deeming any selected listed financial institution to be a registrant for the purposes of this Part. (6) Subsections (1) to (5) apply in respect of any reporting period of a person that ends on or after July 1, 2010. 21. (1) The Act is amended by adding the following after section 231: No adjustment of provincial component of tax 231.1 The amount of tax under subsection 165(2) in respect of a supply that is equal to the amount in respect of the supply that may be deducted under subsection 234(3) by a person shall not be included in determining the amount that may be deducted or that is required to be added, as the case may be, under section 231 or 232 in determining the net tax of the person for any reporting period of the person. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 22. (1) Subsection 234(1) of the Act is replaced by the following: Deduction for rebate 234. (1) If, in the circumstances described in subsection 252.41(2), 254(4), 254.1(4) or 258.1(3) or in circumstances prescribed for the purposes of subsection 256.21(3), a particular person pays to or credits in favour of another person an amount on account of a rebate and transmits the application of the other person for the rebate to the Minister in accordance with subsection 252.41(2), 254(5), 254.1(5), 256.21(4) or 258.1(4), as the case requires, the Taxe d’ particular person may deduct the amount in determining the net tax of the particular person for the reporting period in which the amount is paid or credited. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 23. (1) The Act is amended by adding the following after section 236: Definitions 236.01 (1) The following definitions apply in this section. “large business” « grande entreprise » “large business” means a prescribed person or a person of a prescribed class. “specified property or service” « bien ou service déterminé » “specified provincial input tax credit” « crédit de taxe sur les intrants provincial déterminé » “specified property or service” means a prescribed property or service, or property or a service of a prescribed class. “specified provincial input tax credit” means (a) the portion of an input tax credit of a large business in respect of a specified property or service that is attributable to tax under subsection 165(2), section 212.1 or 218.1 or Division IV.1 in respect of the acquisition, importation or bringing into a participating province of the specified property or service; and (b) a prescribed amount in respect of an input tax credit of a large business that is attributable to tax under subsection 165(2), section 212.1 or 218.1 or Division IV.1 or in respect of an amount that would be such an input tax credit if prescribed conditions were satisfied in prescribed circumstances. Recapture of specified provincial input tax credits (2) If a sales tax harmonization agreement with the government of a participating province relating to the new harmonized value-added tax system allows for the recapture of input tax credits, in determining the net tax for the reporting period of a large business that includes a prescribed time, the large business shall add C. 32 Excise all or part, as determined in prescribed manner, of a specified provincial input tax credit of the large business. Deduction of amounts (3) If a sales tax harmonization agreement with the government of a participating province relating to the new harmonized value-added tax system allows for the recapture of input tax credits, in determining the net tax for the reporting period of a large business that includes a prescribed time, the large business may deduct in prescribed circumstances an amount determined in prescribed manner. Simplified method (4) The Governor in Council may make regulations respecting (a) the methods that may be used by a large business to determine the amount that is required to be added under subsection (2) to, or that may be deducted under subsection (3) from, the net tax for a reporting period of the large business, including any conditions for the use of those methods; (b) the reporting and accounting for such an amount; and (c) compliance measures, including penalties, or other measures and requirements in respect of such an amount. (2) Subsection (1) applies in respect of any reporting period of a person that ends on or after July 1, 2010. 24. (1) Paragraph (b) of the description of A in subsection 236.2(2) of the Act is replaced by the following: (b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the Taxe d’ total of the rate set out in subsection 165(1) and the tax rate for that participating province, and (2) Subsection (1) applies in respect of any supply made on or after July 1, 2010. 25. (1) Paragraph (b) of the description of A in subsection 236.3(2) of the Act is replaced by the following: (b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and (2) Subsection (1) applies in respect of any supply made on or after July 1, 2010. 26. (1) The description of F in subsection 253(1) of the Act is replaced by the following: F is the percentage determined in prescribed manner, and (2) The description of H in subsection 253(1) of the Act is replaced by the following: H is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and (3) The description of E in subparagraph 253(2)(a)(ii) of the Act is replaced by the following: C. 32 Excise E is the percentage determined in prescribed manner, and (4) The description of G in subparagraph 253(2)(a)(ii) of the Act is replaced by the following: G is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and (5) The description of E in subparagraph 253(2)(c)(ii) of the Act is replaced by the following: E is the percentage determined in prescribed manner, and (6) The description of G in subparagraph 253(2)(c)(ii) of the Act is replaced by the following: G is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and (7) Subsections (1) to (6) apply to any rebate in respect of 2010 and subsequent years. 27. (1) The portion of subsection 256(2.1) of the Act after paragraph (d) is replaced by the following: the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the amount determined in prescribed manner or, if no manner is prescribed, the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 28. (1) The Act is amended by adding the following after section 256.2: Taxe d’ Housing rebates — participating provinces 256.21 (1) If a sales tax harmonization agreement with the government of a participating province allows for rebates in respect of residential property relating to the new harmonized value-added tax system in respect of that participating province, the Minister shall pay in prescribed circumstances a rebate in respect of prescribed property to a prescribed person, or a person of a prescribed class, equal to an amount determined in prescribed manner. Application for rebate (2) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within the prescribed time. Payment or credit of rebates (3) In the case of a rebate under subsection (1) (other than a rebate prescribed under subsection (6)), in prescribed circumstances, a prescribed person, or a person of a prescribed class, may pay or credit the amount of a rebate under subsection (1) to an individual of a prescribed class if the individual submits to the person in prescribed manner an application in prescribed form containing prescribed information. Forwarding of application (4) If an application in respect of a rebate is submitted to a person under subsection (3) (a) the person shall transmit the application to the Minister in prescribed manner on or before the day on or before which the person’s return under Division V for the reporting period in which the rebate is paid or credited is required to be filed; and (b) interest under subsection 297(4) is not payable in respect of the rebate. Joint and several liability — subsection (3) (5) If a particular person pays or credits an amount of a rebate to another person under subsection (3), and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount paid or C. 32 Excise credited exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. Assignment (6) In the case of a rebate that is payable under subsection (1) in relation to the transition of a province to the new harmonized valueadded tax system and that is prescribed for the purposes of this subsection, a person that is prescribed for the purposes of subsection (1) may, despite section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, assign the rebate in prescribed circumstances to a prescribed person or a person of a prescribed class. Form and manner of assignment (7) An assignment made under subsection (6) of a rebate in respect of a participating province shall be made in prescribed form containing prescribed information and the form shall be filed with the Minister in prescribed manner on or before the day that is four years after the harmonization date for the participating province. Effect of assignment (8) An assignment made under subsection (6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing, (a) the Minister is not required to pay to the assignee the assigned amount; (b) the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and (c) the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada. Joint and several liability — subsection (6) (9) If an amount of a rebate is assigned to a particular person by another person under subsection (6) and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount assigned exceeds the rebate to which the other person is entitled, the particular person and the other Taxe d’ person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. Assessment (10) The Minister may at any time assess an assignee in respect of any amount payable by reason of subsection (9) and sections 296 to 311 apply with any modifications that the circumstances may require. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 29. (1) The definition “specified provincial percentage” in subsection 259(1) of the Act is amended by striking out “and” at the end of paragraph (e) and by replacing paragraph (f) with the following: (f) despite any of paragraphs (a) to (e), if there is a sales tax harmonization agreement with the government of a participating province that allows for rebates in respect of public service bodies relating to the new harmonized value-added tax system in respect of the participating province and if the participating province is prescribed for the purposes of this paragraph, in the case of a person of a prescribed class resident in the participating province, the prescribed percentage for that class in respect of the participating province, and (g) in any other case, 0%; (2) Paragraph 259(3)(b) of the Act is replaced by the following: (b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized valueadded tax system or, in any other case, the amount equal to the specified provincial percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period. C. 32 Excise (3) The portion of paragraph 259(4)(b) of the Act before the formula is replaced by the following: (b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized valueadded tax system or, in any other case, all amounts, each of which is an amount determined by the formula (4) The portion of subsection 259(4.1) of the Act before paragraph (a) is replaced by the following: Apportionment of rebate (4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying non-profit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to, in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system and, in any other case, the total of (5) Subsections (1) to (4) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after July 1, 2010, except that the rebate shall be determined as if those subsections had not come into force for the purposes of determining a rebate of a person for the claim period that includes that day in respect of (a) an amount of tax that became payable by the person before that day; (b) an amount that is deemed to have been paid or collected by the person before that day; or (c) an amount that is required to be added in determining the person’s net tax Taxe d’ (i) as a result of a branch or division of the person becoming a small supplier before that day, or (ii) as a result of the person ceasing before that day to be a registrant. 30. (1) Subsection 259.1(6) of the Act is repealed. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 31. (1) Subsection 261.1(1) of the Act is replaced by the following: Rebate in respect of goods removed from a participating province 261.1 (1) If a supply by way of sale of property that is tangible personal property (other than property included in paragraph 252(1)(a) or (c)), a mobile home or a floating home is made in a particular participating province to a person that is resident in Canada, if the person removes the property from the participating province to another province within thirty days after it is delivered to the person and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 32. (1) Section 261.2 of the Act is replaced by the following: Rebate in respect of goods imported at a place in a province 261.2 If a person that is resident in a particular participating province pays tax under subsection 212.1(2) in respect of property that the person imports at a place in another province for consumption or use exclusively in any province (other than the particular participating province) and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner. C. 32 Excise (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 33. (1) Subsection 261.3(1) of the Act is replaced by the following: Rebate in respect of intangible personal property or services supplied in a participating province 261.3 (1) If a person that is resident in Canada is the recipient of a supply made in a participating province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part outside the participating province and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 34. (1) Subsection 261.31(2) of the Act is replaced by the following: Rebate for management services supplied to investment plans, etc. (2) If a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix), other than a selected listed financial institution, is the recipient of a supply of a specified service, tax under subsection 165(2), 218.1(1) or 220.08(1) is payable in respect of the supply and prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the financial institution equal to the amount determined in prescribed manner. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 35. (1) Section 261.4 of the Act is amended by adding “and” at the end of paragraph (c) and by replacing paragraphs (d) and (e) with the following: (d) prescribed circumstances, if any, exist. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. Taxe d’ 36. (1) The portion of subsection 272.1(2) of the Act before paragraph (b) is replaced by the following: Acquisitions by member (2) Despite subsection (1), if property or a service is acquired, imported or brought into a participating province by a member of a partnership for consumption, use or supply in the course of activities of the partnership but not on the account of the partnership, the following rules apply: (a) except as otherwise provided in subsection 175(1), the partnership is deemed (i) not to have acquired or imported the property or service, and (ii) where the property was brought by the member into a participating province, not to have so brought it into that province; (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. 37. (1) Section 277.1 of the Act is replaced by the following: Definition of “new harmonized value-added tax system” 277.1 (1) In this section, “new harmonized value-added tax system” means the system under this Part and Schedules V to X providing for the payment, collection and remittance of tax imposed under any of subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.08 and of amounts paid as or on account of that tax and the provisions of this Part relating to tax under those provisions or to input tax credits, rebates or refunds in respect of any such tax, or any such amounts, paid or deemed to be paid. New harmonized value-added tax system regulations — transition (2) The Governor in Council may make regulations, in relation to the transition by a province to the new harmonized value-added tax system, (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to the province, including C. 32 Excise (i) rules that apply for the purpose of determining the amount of instalment payments under section 237, (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for; (b) respecting information that must be included by a specified person in a written agreement or other document in respect of a specified supply of real property and prescribing tax consequences in respect of such a supply, and penalties, for failing to do so or for providing incorrect information; (c) deeming, in specified circumstances, a specified person to have collected a specified amount of tax, or to have paid a specified amount of tax, for specified purposes, as a consequence of making a supply by way of sale in respect of a residential complex; (d) prescribing rules under which a person of a specified class that is the recipient of a specified supply in respect of real property is required to report and account for tax that is payable under subsection 165(2) in respect of that supply; (e) prescribing compliance measures, including anti-avoidance rules; and (f) generally to effect the transition to, and implementation of, that system in relation to the province. 2009 New harmonized value-added tax system regulations — provincial tax policy flexibility Taxe d’ (3) The Governor in Council may make regulations (a) prescribing rules in respect of whether, how and when a change in the tax rate for a participating province applies and rules in respect of a change to another parameter affecting the application of the new harmonized value-added tax system in relation to a participating province (in this subsection any such change in the tax rate or to another parameter is referred to as the “provincial tax policy flexibility”), including (i) rules that apply for the purpose of determining the amount of instalment payments under section 237, (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for; (b) if an amount is to be determined in prescribed manner in relation to the new harmonized value-added tax system, specifying the circumstances or conditions under which the manner applies; (c) providing for rebates, refunds, adjustments or credits relating to the provincial tax policy flexibility; (d) specifying circumstances and any terms or conditions that must be met for the payment of rebates in respect of the provincial tax policy flexibility; (e) prescribing amounts and rates to be used to determine any rebate, refund, adjustment or credit that relates to, or is affected by, the new harmonized value-added tax system, excluding amounts that would otherwise be included in determining any such rebate, refund, adjustment or credit, and specifying C. 32 Excise circumstances under which any such rebate, refund, adjustment or credit shall not be paid or made; (f) amending the definition “basic tax content” in subsection 123(1) to take into account the provincial tax policy flexibility or the addition of a province to the new harmonized value-added tax system; and (g) prescribing compliance measures, including anti-avoidance rules, in respect of the provincial tax policy flexibility. New harmonized value-added tax system regulations — general (4) For the purpose of facilitating the implementation, application, administration and enforcement of the new harmonized valueadded tax system or the transition by a province to the new harmonized value-added tax system, the Governor in Council may make regulations (a) adapting any provision of this Part, of Schedules V to X or of the regulations made under this Part to the new harmonized valueadded tax system or modifying any provision of this Part, Schedules V to X or those regulations to adapt it to the new harmonized value-added tax system; (b) defining, for the purposes of this Part, Schedules V to X or the regulations made under this Part, or any provision of this Part, Schedules V to X or those regulations, in its application to the new harmonized valueadded tax system, words or expressions used in this Part, Schedules V to X or those Taxe d’ regulations including words or expressions defined in a provision of this Part, Schedules V to X or those regulations; and (c) providing that a provision of this Part, of Schedules V to X or of the regulations made under this Part, or a part of such a provision, does not apply to the new harmonized valueadded tax system. Conflict (5) If a regulation made under this Part in respect of the new harmonized value-added tax system states that it applies despite any provision of this Part, in the event of a conflict between the regulation and this Part, the regulation prevails to the extent of the conflict. (2) Subsection (1) is deemed to have come into force on March 26, 2009. 38. (1) Section 278.1 of the Act is amended by adding the following after subsection (2): Mandatory filing of return by electronic transmission (2.1) If a person is, in respect of a reporting period of the person, a prescribed person or a person of a prescribed class, the person shall file its return for the reporting period by way of electronic filing in the manner specified by the Minister for the person. (2) Subsection (1) applies in respect of any return for a reporting period that ends on or after July 1, 2010. 39. The Act is amended by adding the following after section 280.1: Failure to file by electronic transmission 280.11 In addition to any other penalty under this Part, every person that fails to file a return under Division V for a reporting period as required by subsection 278.1(2.1) is liable to a penalty equal to an amount determined in prescribed manner. 40. Paragraph 281.1(2)(b) of the Act is replaced by the following: (b) penalty payable by the person under section 280.1, 280.11 or 284.01 in respect of a return for the reporting period. C. 32 Excise 41. The Act is amended by adding the following after section 284: Failure to provide information 284.01 Every person that fails to report an amount prescribed by regulation, or to provide information prescribed by regulation, as and when required in a return prescribed by regulation, or that misstates such an amount or such information in such a return, is liable to pay a penalty, in addition to any other penalty under this Part, equal to an amount determined in prescribed manner for each such failure or misstatement by the person. 42. Subsection 326(3) of the Act is replaced by the following: Saving (3) A person that is convicted under this section of failing to comply with a provision of this Part or a regulation made under this Part is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 284.01 or under a regulation made under this Part for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made. 43. Subsection 327(3) of the Act is replaced by the following: Penalty on conviction (3) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 285.1 or under a regulation made under this Part for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. 44. (1) Schedule VIII to the Act is replaced by the Schedule VIII set out in the schedule to this Act. (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010. Taxe d'accis 2009 SCHEDULE (Section 44) SCHEDULE VIII (Subsection 123(1)) PARTICIPATING PROVINCES AND APPLICABLE TAX RATES Participating Province 1. 2. 3. 4. 5. 6. 7. Ontario Nova Scotia New Brunswick British Columbia Newfoundland and Labrador Nova Scotia offshore area Newfoundland offshore area Tax Rate 8% 8% 8% 7% 8% 8% 8% Published under authority of the Speaker of the House of Commons Available from : Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 27 An Act to amend the Tobacco Act ASSENTED TO 8th OCTOBER, 2009 BILL C-32 SUMMARY This enactment amends the Tobacco Act to provide additional protection for youth from tobacco marketing. It repeals the exception that permits tobacco advertising in publications with an adult readership of not less than 85%. It prohibits the packaging, importation for sale, distribution and sale of little cigars and blunt wraps unless they are in a package that contains at least 20 little cigars or blunt wraps. It also prohibits the manufacture and sale of cigarettes, little cigars and blunt wraps that contain the additives set out in a new schedule to that Act, as well as the packaging of those products in a manner that suggests that they contain a prohibited additive. It also prohibits the manufacture and sale of tobacco products unless all of the required information about their composition is submitted to the Minister. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 27 An Act to amend the Tobacco Act [Assented to 8th October, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: ALTERNATIVE TITLE Alternative title 1997, c. 13 1. This Act may be cited as the Cracking Down on Tobacco Marketing Aimed at Youth Act. TOBACCO ACT 2. (1) The definition “package” in section 2 of the Tobacco Act is repealed. (2) Section 2 of the Act is amended by adding the following in alphabetical order: “additive” « additif » “blunt wrap” « feuille d’enveloppe » “ingredient” « ingrédient » “little cigar” « petit cigare » “additive” means an ingredient other than tobacco leaves. “blunt wrap” means a sheet, including one that is rolled, that is composed of natural or reconstituted tobacco and that is ready to be filled. “ingredient” means tobacco leaves and any substance used in the manufacture of a tobacco product or its components, including any substance used in the manufacture of that substance. “little cigar” means a roll or tubular construction that (a) is intended for smoking; (b) contains a filler composed of natural or reconstituted tobacco; C. 27 Toba (c) has a wrapper, or a binder and a wrapper, composed of natural or reconstituted tobacco; and (d) has a cigarette filter or weighs no more than 1.4 g, excluding the weight of any mouthpiece or tip. It includes any tobacco product that is prescribed to be a little cigar. 3. The Act is amended by adding the following after section 2: GOVERNOR IN COUNCIL’S POWERS Regulations — little cigar 2.1 (1) The Governor in Council may make regulations prescribing any tobacco product to be a little cigar for the purpose of the definition “little cigar”. Order in council — little cigar (2) The Governor in Council may, by order, amend the definition “little cigar” by replacing the weight set out in that definition by a weight that is not less than 1.4 g. 4. The Act is amended by adding the following after section 5: Prohibition — manufacture 5.1 (1) No person shall use an additive set out in column 1 of the schedule in the manufacture of a tobacco product set out in column 2. Exception — trade-mark or marking (2) Subsection (1) does not prohibit the use of a colouring agent to depict a trade-mark on a tobacco product or to display a marking required under this or any other Act of Parliament or of the legislature of a province or for any other prescribed purpose. 5. The Act is amended by adding the following after section 5.1: Prohibition — sale 5.2 (1) No person shall sell a tobacco product set out in column 2 of the schedule that contains an additive set out in column 1. Exception (2) Subsection (1) does not prohibit the sale of a tobacco product by reason only that the product contains a colouring agent used for a purpose referred to in subsection 5.1(2). Tab 6. Section 6 of the Act is replaced by the following: Information required from manufacturer 6. (1) Every manufacturer shall submit to the Minister, in the prescribed manner and within the prescribed time, information that is required by the regulations about tobacco products, their emissions and any research and development related to tobacco products and their emissions, whether the tobacco products are for sale or not. Requests for supplementary information (2) The Minister may, subject to the regulations, request supplementary information relating to the information referred to in subsection (1), and every manufacturer shall submit the requested information. 7. The Act is amended by adding the following after section 6: Prohibition 6.1 Subject to the regulations, no manufacturer shall manufacture or sell a tobacco product unless all of the information required under section 6 that relates to the product’s composition and ingredients is submitted to the Minister. 8. (1) The portion of section 7 of the Act before paragraph (e) is replaced by the following: Regulations 7. The Governor in Council may make regulations (a) establishing standards for tobacco products, including prescribing the amounts of substances that may be contained in the product or its emissions; (b) respecting test methods, including methods to assess conformity with the standards; (c) prescribing information that manufacturers must submit to the Minister about tobacco products and their emissions, including sales data and information on market research, product composition, ingredients, health effects, hazardous properties and brand elements; (c.1) prescribing information that manufacturers must submit to the Minister about research and development related to tobacco products and their emissions, including C. 27 Toba information on market research, product composition, ingredients, health effects, hazardous properties and brand elements; (c.2) respecting requests for supplementary information under subsection 6(2); (c.3) respecting the prohibition under section 6.1, including providing for the suspension of the manufacture or sale of a tobacco product; (d) prescribing the means, including electronic means, by which the information referred to in paragraphs (c) to (c.2) may be submitted to the Minister; (d.1) prescribing anything that by this Part is to be prescribed; and (2) Paragraph 7(e) of the French version of the Act is replaced by the following: e) prévoyant toute autre mesure nécessaire à l’application de la présente partie. 9. The Act is amended by adding the following after section 7: Amendment of schedule 7.1 (1) The Governor in Council may, by order, amend the schedule by adding, amending or deleting (a) the name or description of an additive or tobacco product; or (b) a reference to all tobacco products, with or without exceptions. Description (2) An additive or tobacco product may be described by reference to a document produced by a body or person other than the Minister, either as the document exists on a particular date or as it is amended from time to time. 10. Section 10 of the Act is replaced by the following: Minimum number of products in package 10. (1) No person shall import for sale in Canada, package, distribute or sell cigarettes, little cigars or blunt wraps except in a package Tab that contains at least 20 cigarettes, little cigars or blunt wraps or, if a higher number is prescribed, at least the prescribed number. Other tobacco products (2) No person shall import for sale in Canada, package, distribute or sell a tobacco product — other than cigarettes, little cigars or blunt wraps — that is prescribed for the purposes of this subsection, except in a package that contains at least the prescribed portions, number or quantity of the tobacco product. 11. Subsection 22(2) of the Act is amended by adding “or” at the end of paragraph (a) and by repealing paragraph (b). 12. (1) The Act is amended by adding the following after section 23: Prohibited additives — packaging 23.1 (1) No person shall package a tobacco product set out in column 2 of the schedule in a manner that suggests, including through illustrations, that it contains an additive set out in column 1. (2) Section 23.1 of the Act is amended by adding the following after subsection (1): Prohibition — sale (2) No person shall sell a tobacco product set out in column 2 of the schedule that is packaged in a manner prohibited by subsection (1). 13. Subsection 26(2) of the Act is replaced by the following: Promotion (2) No person shall promote an accessory that displays a tobacco product-related brand element except in the prescribed manner and form and in a publication or place described in paragraphs 22(2)(a) and (c). 14. (1) The Act is amended by adding the following after section 43: Prohibited additives — manufacturer 43.1 Every manufacturer who contravenes subsection 5.1(1) or 23.1(1) is guilty of an offence and liable on summary conviction to a fine not exceeding $300,000 or to imprisonment for a term not exceeding two years, or to both. (2) Section 43.1 of the Act is replaced by the following: C. 27 Prohibited additives — manufacturer 43.1 Every manufacturer who contravenes subsection 5.1(1), 5.2(1) or 23.1(1) or (2) is guilty of an offence and liable on summary conviction to a fine not exceeding $300,000 or to imprisonment for a term not exceeding two years, or to both. Prohibited additives — retailer 43.2 Every retailer who contravenes subsection 5.2(1) or 23.1(2) is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000. Toba 15. Section 44 of the Act is replaced by the following: Summary offence 44. Every person who contravenes subsection 6(1) or (2), 10(1) or (2), 26(1) or (2) or 31(1) or (3), section 32 or subsection 38(1) or (2) is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding six months, or to both. 16. The Act is amended by adding the following after section 44: Prohibited manufacture or sale 44.1 Every manufacturer who contravenes section 6.1 is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding six months, or to both. 17. The Act is amended by adding, after section 66, the schedule set out in the schedule to this Act. COMING INTO FORCE After royal assent — 180 days 18. (1) Sections 2 to 4, 9 and 10, subsections 12(1) and 14(1) and section 17 come into force 180 days after the day on which this Act receives royal assent. After royal assent — 270 days (2) Section 5 and subsections 12(2) and 14(2) come into force 270 days after the day on which this Act receives royal assent. Order in council (3) Sections 7 and 16 come into force on a day to be fixed by order of the Governor in Council. Tabac — SCHED (Section SCHED (Sections 5.1, 5.2 PROHIBITED Column 1 Item 1. Additive Additives that have flavouring properties flavour, including – additives identified as flavouring ag FAO/WHO Expert Committee on F the Committee’s evaluations, as pu to time in the WHO Technical Rep – additives identified as flavouring s Flavor and Extract Manufactur (FEMA) Expert Panel in its lists of Recognized as Safe) flavouring subs as “GRAS 3” to “GRAS 24” and s lists, as published from time to time The following additives are excluded: – benzoic acid (CAS 65-85-0) and its – butylated hydroxytoluene (CAS 128 – carboxy methyl cellulose (CAS 900 – citric acid (CAS 77-92-9) and its sa – ethanol (CAS 64-17-5) – ethoxylated sorbitan monolaurate (C – fumaric acid (CAS 110-17-8) – glycerol (CAS 56-81-5) – guar gum (CAS 9000-30-0) – menthol (CAS 89-78-1) – l-menthol (CAS 2216-51-5) – l-menthone (CAS 14073-97-3) – n-propyl acetate (CAS 109-60-4) – paraffin wax (CAS 8002-74-2) C. 27 Tobacco — Column 1 Item Note: Additive – propylene glycol (CAS 57-55-6) – rosin glycerol ester (CAS 8050-31– sodium acetate anhydrous (CAS 12 – sodium alginate (CAS 9005-38-3) – sorbic acid (CAS 110-44-1) and its – triacetin (CAS 102-76-1) – tributyl acetylcitrate (CAS 77-90-7) 2. Amino acids 3. Caffeine 4. Colouring agents, excluding those used to w filter or to imitate a cork pattern on tipping 4.1 Colouring agents, excluding those used to paper, to render tipping paper brown or bron cork pattern on tipping paper 4.2 Colouring agents 5. Essential fatty acids 6. Fruits, vegetables or any product obtained fro of a fruit or vegetable, excluding activated ch 7. Glucuronolactone 8. Probiotics 9. Spices, seasonings and herbs 10. Sugars and sweeteners, excluding starch 11. Taurine 12. Vitamins 13. Mineral nutrients, excluding those necessar the tobacco product In column 1, “FAO” means Food and Agriculture Organizatio “CAS” means Chemical Abstracts Service registry number. Tabac — ANN (artic ANN (articles 5.1, 5 ADDITIFS Colonne 1 Item 1. Additif Additif qui a des propriétés aromatisantes l’arôme, notamment : – tout additif qualifié d’aromatisant pa FAO/OMS d’experts des additifs alim évaluations publiées dans la version de rapports techniques de l’OMS – tout additif qualifié de substance ar comité d’experts de l’association ap Extract Manufacturers Association listes, portant les numéros 3 à 2 aromatisantes généralement reconnu dans ses listes publiées subséquemm Ne sont toutefois pas visés les additifs suiva – acide benzoïque (CAS 65-85-0) et s – hydroxytoluène butylé (CAS 128-3 – carboxyméthylcellulose (CAS 9000 – acide citrique (CAS 77-92-9) et ses – éthanol (CAS 64-17-5) – monolaurate de sorbitane éthoxylé ( – acide fumarique (CAS 110-17-8) – glycérol (CAS 56-81-5) – gomme de guar (CAS 9000-30-0) – menthol (CAS 89-78-1) – l-menthol (CAS 2216-51-5) – l-menthone (CAS 14073-97-3) – acétate de n-propyle (CAS 109-60-4 – cire de paraffine (CAS 8002-74-2) C. 27 Tobacco — Colonne 1 Item Additif – propylène glycol (CAS 57-55-6) – ester glycérique de la colophane (C – acétate de sodium anhydre (CAS 12 – alginate de sodium (CAS 9005-38-3 – acide sorbique (CAS 110-44-1) et s – triacétine (CAS 102-76-1) – acétylcitrate de tributyle (CAS 77-9 2. Acides aminés 3. Caféine 4. Agents colorants, sauf ceux utilisés pour bla le filtre ou pour donner au papier de manc liège 4.1 Agents colorants, sauf ceux utilisés pour bla gainage, pour brunir ou bronzer le papier de m donner à ce dernier l’aspect du liège 4.2 Agents colorants 5. Acides gras essentiels 6. Fruits, légumes et tout produit obtenu par le sauf le charbon activé et l’amidon 7. Glucuronolactone 8. Probiotiques 9. Épices, aromates et herbes 10. Sucres et édulcorants, sauf l’amidon 11. Taurine Tabac — Colonne 1 Item Additif 12. Vitamines 13. Minéraux nutritifs, sauf ceux qui sont fabrication du produit du tabac Note : Dans la colonne 1, « FAO » renvoie à l’Organisation des Natio mondiale de la Santé et « CAS » se rapporte au numéro du se Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 33 An Act to amend the Employment Insurance Act and to make consequential amendments to other Acts ASSENTED TO 15th DECEMBER, 2009 BILL C-56 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Employment Insurance Act and to make consequential amendments to other Acts”. SUMMARY This enactment amends the Employment Insurance Act and other Acts by establishing a scheme to provide for the payment of special benefits to selfemployed persons who are not currently entitled to receive them. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO AMEND THE EMPLOYMENT INSURANCE ACT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS SHORT TITLE 1. Fairness for the Self-Employed Act EMPLOYMENT INSURANCE ACT 2–17. Amendments 18. Agreements 19. Benefit periods during 2011 20. Violations TRANSITIONAL PROVISIONS CONSEQUENTIAL AMENDMENTS 21–26. Bankruptcy and Insolvency Act 27–29. Companies’ Creditors Arrangement Act 30. 31–32. 33. Canada Labour Code Old Age Security Act Tax Court of Canada Act COORDINATING AMENDMENTS 34. 35–36. 2000, c. 14 2000, c. 12 COMING INTO FORCE 37. Sections 2 to 33 57-58 ELIZABETH II —————— CHAPTER 33 An Act to amend the Employment Insurance Act and to make consequential amendments to other Acts [Assented to 15th December, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Fairness for the Self-Employed Act. 1996, c. 23 EMPLOYMENT INSURANCE ACT 2. The definitions “benefit period”, “benefits” and “interruption of earnings” in subsection 2(1) of the Employment Insurance Act are replaced by the following: “benefit period” « période de prestations » “benefits” « prestation » “benefit period” means the period described in sections 9, 10, 152.1 and 152.11; “benefits” means unemployment benefits payable under Part I, VII.1 or VIII, but does not include employment benefits; “interruption of earnings” « arrêt de rémunération » “interruption of earnings” means an interruption that occurs in the earnings of an insured person or a person to whom Part VII.1 applies at any time and in any circumstances determined by the regulations; 2001, c. 5, s. 4(1) 3. Subsection 7(4.1) of the Act is replaced by the following: Exception (4.1) An insured person is not a new entrant or a re-entrant if the person has been paid one or more weeks of special benefits referred to in C. 33 Employmen paragraph 12(3)(a) or (b) — or, as a selfemployed person under Part VII.1, one or more weeks of benefits referred to in paragraph 152.14(1)(a) or (b) — in the period of 208 weeks preceding the period of 52 weeks before their qualifying period or in other circumstances, as prescribed by regulation, arising in that period of 208 weeks. 4. Subsection 7.1(3) of the Act is replaced by the following: Deemed violation (2.1) A violation accumulated by an individual under section 152.07 is deemed to be a violation accumulated by the individual under this section on the day on which the notice of violation was given to the individual. Limitation (3) A violation may not be taken into account under subsection (1) or (2) in more than two initial claims for benefits under this Act by an individual if the individual who accumulated the violation qualified for benefits in each of those two initial claims, taking into account subsection (1) or (2), subparagraph 152.07(1)(d)(ii) or regulations made under Part VIII, as the case may be. 5. (1) Subparagraph 10(6)(b)(i) of the Act is replaced by the following: (i) establishes under this Part, as an insured person, a new benefit period beginning the first week for which benefits were paid or payable or establishes, under Part VII.1, as a self-employed person within the meaning of subsection 152.01(1), a new benefit period beginning the first week for which benefits were paid or payable, and (2) Subparagraphs 10(8)(d)(ii) and (iii) of the Act are replaced by the following: (ii) makes a new initial claim for benefits under this Part or Part VII.1, and Assuranc (iii) qualifies, as an insured person, to receive benefits under this Part or qualifies, as a self-employed person within the meaning of subsection 152.01(1), to receive benefits under Part VII.1. 2003, c. 15, s. 17(2) 6. Subsection 12(4.1) of the Act is replaced by the following: Maximum — parental benefits (4.01) If a claim is made under this Part in respect of a child or children referred to in paragraph (4)(b) and a claim is made under section 152.05 in respect of the same child or children, the maximum number of weeks of benefits payable under this Act in respect of the child or children is 35. Maximum — compassionate care benefits (4.1) Even if more than one claim is made under this Act, at least one of which is made under this Part — or even if more than one certificate is issued for the purposes of this Act, at least one of which is issued for the purposes of this Part — in respect of the same family member, the maximum number of weeks of benefits payable under this Act in respect of that family member is six weeks during the period of 26 weeks beginning with the first day of the week referred to in paragraph 23.1(4)(a). 2000, c. 12, s. 107(2) 7. (1) Subsection 23(4) of the Act is replaced by the following: Division of weeks of benefits (4) If two major attachment claimants are caring for a child referred to in subsection (1), or one major attachment claimant and an individual who claims benefits under section 152.05 are both caring for a child referred to in that subsection, weeks of benefits payable under this section, under section 152.05 or under both those sections, up to a maximum of 35 weeks, may be divided between them. C. 33 Maximum number of weeks that can be divided (4.1) For greater certainty, if, in respect of the same child, a major attachment claimant makes a claim for benefits under this section and another person makes a claim for benefits under section 152.05, the total number of weeks of benefits payable under this section and section 152.05 that may be divided between them may not exceed 35 weeks. Employmen (2) Section 23 of the Act is amended by adding the following after subsection (5): Exception (6) If a major attachment claimant makes a claim under section 22 or this section and an individual makes a claim under section 152.04 or 152.05 in respect of the same child or children and one of them has served or elected to serve their waiting period, then (a) if the major attachment claimant is not the one who served or elected to serve the waiting period, that claimant is not required to serve a waiting period; or (b) if the individual is not the one who served or elected to serve the waiting period, that claimant may have his or her waiting period deferred in accordance with section 152.05. 2003, c. 15, s. 19 8. (1) Paragraphs 23.1(7)(a) to (c) of the Act are replaced by the following: (a) another claimant has made a claim for benefits under this section or section 152.06 in respect of the same family member during the period described in subsection (4) and that other claimant has served or is serving their waiting period in respect of that claim; (b) another claimant is making a claim for benefits under this section or section 152.06 in respect of the same family member at the same time as the claimant and that other claimant elects to serve the waiting period; or (c) the claimant, or another claimant who has made a claim for benefits under this section or section 152.06 in respect of the same family member, meets the prescribed requirements. Assuranc 2003, c. 15, s. 19 (2) Subsection 23.1(8) of the Act is replaced by the following: Division of weeks of benefits (8) If a claimant makes a claim for benefits under this section and another claimant makes a claim for benefits under this section or section 152.06 in respect of the same family member, any remaining weeks of benefits payable under this section, under section 152.06 or under both those sections, up to a maximum of six weeks, may be divided in the manner agreed to by those claimants. Maximum number of weeks that can be divided (8.1) For greater certainty, if, in respect of the same family member, a claimant makes a claim for benefits under this section and another claimant makes a claim for benefits under section 152.06, the total number of weeks of benefits payable under this section and section 152.06 that may be divided between them may not exceed six weeks. 9. (1) Paragraphs 54(a) and (b) of the Act are replaced by the following: (a) prescribing the conditions on which the requirement under this Part or Part VII.1 of serving a waiting period may be waived; (b) defining or determining what is a working day or working week in any employment or for the purposes of Part VII.1; 2003, c. 15, s. 20(1) (2) Paragraphs 54(c.2) to (d.1) of the Act are replaced by the following: (c.2) setting out circumstances for the purposes of paragraphs 10(5.1)(c), 23.1(6)(c), 152.06(5)(c) and 152.11(6)(c); C. 33 Employmen (d) defining or determining who are dependent children, prescribing low-income family eligibility criteria and determining the amount of family supplements for the purposes of section 16 or 152.17; (d.1) determining, for the purposes of subsection 19(3) or 152.18(3), the period for which benefits were claimed; 2003, c. 15, s. 20(2) (3) Paragraphs 54(f.2) to (f.6) of the Act are replaced by the following: (f.2) prescribing classes of persons for the purposes of paragraph 23.1(1)(d) and paragraph (d) of the definition “family member” in subsection 152.01(1); (f.3) defining or determining what is care or support for the purposes of paragraphs 23.1(2)(b) and 152.06(1)(b); (f.4) prescribing classes of medical practitioners for the purposes of subsections 23.1(3) and 152.06(2) and setting out the circumstances in which a certificate may be issued by them under subsection 23.1(2) or 152.06(1); (f.5) prescribing a shorter period for the purposes of subsections 23.1(5) and 152.06(4) and prescribing a minimum number of weeks in relation to that shorter period for the purposes of subsections 12(4.3) and 152.14(7); (f.6) prescribing requirements for the purposes of paragraphs 23.1(7)(c) and 152.06(6)(c); 2003, c. 15, s. 22(2) 10. Subsection 69(2) of the Act is replaced by the following: Provincial plans (2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer’s and employee’s premiums, the premiums under Part VII.1 or all those premiums, when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a provincial law to insured persons, or to self-employed persons, as the case may be, would have the effect of reducing or eliminating Assuranc the special benefits payable to those insured persons or the benefits payable to those selfemployed persons. 1999, c. 17, s. 132; 2005, c. 38, par. 140(c) 11. Section 97 of the Act is replaced by the following: Minister’s duty 97. (1) The Minister shall administer this Part, section 5, subsections 152.01(2) and (3) and sections 152.21 to 152.3 and any regulations made under sections 5, 55, 152.26 and 152.28, and the Commissioner of Revenue may exercise all the powers and perform all the duties of the Minister under this Part and Part VII.1. Administration of oaths (2) An officer or employee employed in connection with the administration of this Part, section 5, subsection 152.01(2) or (3) or any of sections 152.21 to 152.3 or any regulations made under section 5, 55, 152.26 or 152.28, if designated by the Minister for the purpose, may, in the course of their employment, administer oaths and take and receive affidavits, declarations and solemn affirmations for the purposes of or incidental to the administration or enforcement of this Act or the regulations, and every officer or employee so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits. 2000, c. 30, s. 167(1); 2005, c. 47, s. 138; 2007, c. 36, s. 108 12. Section 99 of the Act is replaced by the following: Application of Income Tax Act provisions 99. Section 160, subsections 161(11) and 220(3.1), sections 221.1 and 224 to 224.3 and subsections 227(9.1) and (10) and 248(7) and (11) of the Income Tax Act apply to all premiums, interest, penalties and other amounts payable by a person under this Part and Part VII.1, with the modifications that the circumstances require, and for the purposes of this section, (a) the reference in subsection 224(1.2) of that Act to “subsection 227(10.1) or a similar provision” is to be read as a reference to “section 85 or 152. 24, as the case may be, of the Employment Insurance Act”; and C. 33 Employmen (b) subsection 224(1.2) of the Income Tax Act applies to employer’s premiums, employee’s premiums, and premiums under Part VII.1, and related interest, penalties or other amounts, subject to subsections 69(1) and 69.1(1) of the Bankruptcy and Insolvency Act and section 11.09 of the Companies’ Creditors Arrangement Act. 13. Paragraph 106(4)(a) of the Act is replaced by the following: (a) makes, or participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer filed or made as required by or under this Part or Part VII.1 or the regulations; 14. (1) The portion of subsection 126(1) of the Act before paragraph (a) is replaced by the following: Certificates 126. (1) An amount or part of an amount payable under Part I, II or VII.1 that has not been paid may be certified by the Commission (2) Subsections 126(4) and (5) of the Act are replaced by the following: Garnishment (4) If the Commission has knowledge or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment under Part I, II or VII.1 or under subsection (7), it may, by a notice served personally or sent by a confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability. Applicability to future payments (5) If the Commission has, under subsection (4), required an employer to pay to the Receiver General on account of an insured person’s liability under Part I or II or an individual’s liability under Part VII.I, money otherwise payable by the employer to the insured person or the individual, as the case may be, as remuneration, Assuranc (a) the requirement is applicable to all future payments by the employer to the insured person or individual, as the case may be, as remuneration until the liability under that Part is satisfied; and (b) the employer shall make payments to the Receiver General out of each payment of remuneration of the amount that may be stipulated by the Commission in the notice mentioned in subsection (4). 2001, c. 5, s. 11(1) 15. Paragraph 145(1)(a) of the Act is replaced by the following: (a) the total benefits, other than special benefits and benefits under Part VII.1, paid to the claimant in the taxation year, and 16. The Act is amended by adding the following after section 152: PART VII.1 BENEFITS FOR SELF-EMPLOYED PERSONS INTERPRETATION Definitions “balance-due day” « date d’exigibilité du solde » 152.01 (1) The following definitions apply in this Part. “balance-due day” of a self-employed person for a year means (a) if the person died after October in the year and before May in the immediately following year, the day that is 6 months after the day of death, and (b) in any other case, April 30 in the immediately following year. “business” « entreprise » “disentitled” « inadmissible » “family member” « membre de la famille » “business” includes a profession, calling, trade, manufacture or undertaking of any kind whatever, and includes an adventure or concern in the nature of trade but does not include an office or employment. “disentitled” means not entitled under sections 49, 50, 152.03, 152.15 or 152.2 or under the regulations. “family member”, in relation to an individual, means C. 33 Employmen (a) a spouse or common-law partner of the individual; (b) a child of the individual or a child of the individual’s spouse or common-law partner; (c) a parent of the individual or a spouse or common-law partner of the parent; and (d) any other person who is a member of a class of persons prescribed for the purposes of this definition. “initial claim for benefits” « demande initiale de prestations » “qualifying period” « période de référence » “self-employed person” « travailleur indépendant » “initial claim for benefits” means a claim made for the purpose of establishing a self-employed person’s benefit period. “qualifying period” means the period described in section 152.08. “self-employed person” means an individual who (a) is or was engaged in a business; or (b) is employed but does not have insurable employment by reason of paragraph 5(2)(b). However, individuals to whom regulations made under Part VIII apply, and individuals whose employment is included in insurable employment by a regulation made under paragraph 5(4)(c), are not included in this definition. “waiting period” « délai de carence » “waiting period” means the two weeks of the benefit period described in section 152.15. Amount of selfemployed earnings for a year (2) For the purpose of this Part, the amount of the self-employed earnings of a selfemployed person for a year is, (a) in the case of a self-employed person who is an individual referred to in paragraph (a) of the definition “self-employed person” in subsection (1), the amount that is the aggregate of (i) an amount equal to (A) their income for the year, computed under the Income Tax Act, from their businesses, other than a business more Assuranc than fifty per cent of the gross revenue of which consisted of rent from land or buildings, minus (B) all losses, computed under the Income Tax Act, sustained by the selfemployed person in the year in carrying on the businesses they are engaged in, and (ii) their income for the year from employment described in paragraph 5(6)(c) that has been excluded from insurable employment by a regulation made under subsection 5(6), as that income is computed under the Income Tax Act; (b) in the case of a self-employed person who is an individual referred to in paragraph (b) of the definition “self-employed person” in subsection (1), the amount that would have been the person’s insurable earnings for the year had the person’s employment not been excluded from insurable employment; and (c) in the case of a self-employed person who is an individual referred to in both paragraphs (a) and (b), the amount that is the aggregate of the amounts referred to in both those paragraphs. Indians (3) For the purpose of clause (2)(a)(i)(A), the income of an Indian, as defined in subsection 2(1) of the Indian Act, on a reserve, as defined in that subsection, is to be calculated without reference to paragraph 81(1)(a) of the Income Tax Act. Week of unemployment (4) For the purpose of this Part, a week of unemployment for a self-employed person is a week of unemployment as defined or determined in accordance with the regulations. Rounding off percentages or fractions (5) A reference in this Part to an amount equal to a percentage or fraction of earnings or benefits in a period shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple. C. 33 Employmen APPLICATION Agreement 152.02 (1) This Part applies in respect of every self-employed person who is a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act who has entered into an agreement with the Commission regarding the application of this Part. Term of agreement (2) Subject to subsections (4) to (7), the agreements are of indefinite duration. Power of Commission (3) The Commission may fix the form and the conditions of the agreements. Termination of agreement (4) An agreement is deemed to be terminated if any of the circumstances set out in the regulations exist. It may also be terminated, by notice given to the Commission in the prescribed form and manner, by the individual who entered into it if the notice is given before any benefits are paid to the individual under this Part or, if benefits have been paid under this Part, if any of the prescribed circumstances exist. It may not be terminated in any other manner or at any other time. Date of termination (5) If an agreement is deemed to be terminated as a result of circumstances set out in the regulations, the agreement is deemed to be terminated on the prescribed date. Date of termination (6) If notice is given to terminate an agreement in accordance with subsection (4), the agreement is terminated on December 31 of the year in which the notice is given unless (a) a benefit period is established under this Part for the individual during the period that begins on the date the notice was given and that ends on December 31 of that year, in which case the notice is deemed never to have been given; or (b) the individual withdraws the notice in the prescribed manner before December 31 of the year in which the notice was given. 2009 Exception Assuranc (7) Despite subsection (6), if the notice is given within 60 days after the agreement was entered into, the agreement is deemed never to have been entered into. BENEFITS Illness, injury or quarantine 152.03 (1) Subject to this Part, a selfemployed person who ceases to work as a self-employed person because of a prescribed illness, injury or quarantine and who would be otherwise working, is entitled to receive benefits while unable to work as a self-employed person for that reason. Limitation (2) If benefits are payable to a self-employed person as a result of illness, injury or quarantine and any allowances, money or other benefits are payable to the person for that illness, injury or quarantine under a provincial law, the benefits payable to the person under this Part shall be reduced or eliminated as prescribed. Deduction (3) If benefits are payable under this section to a self-employed person who receives earnings for a period in a week of unemployment during which the person is incapable of working as a self-employed person because of illness, injury or quarantine, subsection 152.18(2) does not apply and, subject to subsection 152.18(3), all those earnings shall be deducted from the benefits payable for that week. Disentitlement (4) A self-employed person is not entitled to benefits under subsection (1) if, were it not for the prescribed illness, injury or quarantine, the self-employed person would be deemed, in accordance with the regulations, to be not working. Pregnancy 152.04 (1) Subject to this Part, benefits are payable to a self-employed person who proves her pregnancy. C. 33 Weeks for which benefits may be paid (2) Subject to section 152.14, benefits are payable to a self-employed person under this section for each week of unemployment in the period Employmen (a) that begins the earlier of (i) eight weeks before the week in which her confinement is expected, and (ii) the week in which her confinement occurs; and (b) that ends 17 weeks after the later of (i) the week in which her confinement is expected, and (ii) the week in which her confinement occurs. Limitation (3) When benefits are payable to a selfemployed person for unemployment caused by pregnancy and any allowances, money or other benefits are payable to the person for that pregnancy under a provincial law, the benefits payable to the self-employed person under this Part shall be reduced or eliminated as prescribed. Earnings deducted (4) If benefits are payable under this section to a self-employed person who receives earnings for a period that falls in a week in the period described in subsection (2), the provisions of subsection 152.18(2) do not apply and, subject to subsection 152.18(3), all those earnings shall be deducted from the benefits paid for that week. Extension of period (5) If a child who is born of the selfemployed person’s pregnancy is hospitalized, the period for which benefits are payable under subsection (2) shall be extended by the number of weeks during which the child is hospitalized. Limitation (6) The extended period shall end no later than 52 weeks after the week of confinement. Parental benefits 152.05 (1) Subject to this Part, benefits are payable to a self-employed person to care for one or more new-born children of the person or one or more children placed with the person for Assuranc the purpose of adoption under the laws governing adoption in the province in which the person resides. Weeks for which benefits may be paid (2) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (a) that begins with the week in which the child or children of the self-employed person are born or the child or children are actually placed with the self-employed person for the purpose of adoption; and (b) that ends 52 weeks after the week in which the child or children of the selfemployed person are born or the child or children are actually placed with the selfemployed person for the purpose of adoption. Extension of period — child in hospital (3) If the child or children referred to in subsection (1) are hospitalized during the period referred to in subsection (2), the period is extended by the number of weeks during which the child or children are hospitalized. Limitation (4) No extension under subsection (3) may result in the period being longer than 104 weeks. Extension of period (5) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(a) to (c) and benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 152.14(1)(b), the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number. Extension of period (6) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(b) to (d) and benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 152.14(1)(b), the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number. C. 33 Extension of period (7) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(a), (b) and (d) and benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 152.14(1)(b), the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number. Extension of period (8) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(a) to (d) and benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 152.14(1)(b), the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number. Limitation (9) No extension under any of the following provisions may result in the period referred to in subsection (2) being longer than the number of weeks specified for that provision: Employmen (a) for an extension under subsection (5), 67 weeks; (b) for an extension under subsection (6) or (7), 58 weeks; and (c) for an extension under subsection (8), 73 weeks. Limitation (10) No extension under any of subsections 152.11(11) to (17) may result in the period referred to in subsection (2) being longer than 104 weeks. Limitation (11) If benefits are payable to a selfemployed person for the reasons set out in this section and any allowances, money or other benefits are payable to the person for the same reasons under a provincial law, the benefits payable to the self-employed person under this Part are to be reduced or eliminated as prescribed. Assuranc Division of weeks of benefits (12) If two self-employed persons each make a claim for benefits under this section — or if one self-employed person makes a claim for benefits under this section and a person makes a claim for benefits under section 23 — in respect of the same child or children, the weeks of benefits payable under this section, under section 23 or under both of those sections, up to a maximum of 35 weeks, may be divided between them. Maximum number of weeks that can be divided (13) For greater certainty, if, in respect of the same child or children, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23, the total number of weeks of benefits payable under this section and section 23 that may be divided between them may not exceed 35 weeks. Deferral of waiting period (14) A self-employed person who makes a claim for benefits under this section may have his or her waiting period deferred until he or she makes another claim for benefits in the same benefit period, otherwise than under section 152.04 or this section, if (a) the self-employed person has already made a claim for benefits under section 152.04 or this section in respect of the same child or children and has served the waiting period; (b) another self-employed person has made a claim for benefits under section 152.04 or this section in respect of the same child or children and that other self-employed person has served or is serving his or her waiting period; (c) another self-employed person is making a claim for benefits under section 152.04 or this section in respect of the same child or children at the same time as the selfemployed person and that other self-employed person elects to serve the waiting period; or C. 33 Employmen (d) the self-employed person or another selfemployed person meets the prescribed requirements. Exception (15) If a self-employed person makes a claim under this Part and another person makes a claim under section 22 or 23 in respect of the same child or children and one of them has served or elected to serve their waiting period, then (a) if the self-employed person is not the one who served or elected to serve the waiting period, the self-employed person is not required to serve a waiting period; or (b) if the person making the claim under section 22 or 23 is not the one who served or elected to serve the waiting period, the person may have his or her waiting period deferred in accordance with section 23. Compassionate care benefits 152.06 (1) Subject to this Part, benefits are payable to a self-employed person if a medical doctor has issued a certificate stating that (a) a family member of the self-employed person has a serious medical condition with a significant risk of death within 26 weeks (i) from the day on which the certificate is issued, or (ii) in the case of a claim that is made before the day on which the certificate is issued, from the day from which the medical doctor certifies the family member’s medical condition; and (b) the family member requires the care or support of one or more other family members. Medical practitioner (2) In the circumstances set out in the regulations, the certificate required under subsection (1) may be issued by a member of a prescribed class of medical practitioners. 2009 Weeks for which benefits may be paid Assuranc (3) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (a) that begins on the first day of the week in which one of the following falls, namely, (i) the day of issuance of the first certificate in respect of the family member that meets the requirements of subsection (1) and is filed with the Commission, or (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor certifies the family member’s medical condition; and (b) that ends on the last day of the week in which any of the following occurs, namely, (i) all benefits payable under this section in respect of the family member are exhausted, (ii) the family member dies, or (iii) the expiry of 26 weeks following the first day of the week referred to in paragraph (a). Shorter period (4) If a shorter period is prescribed for the purposes of this section, (a) the certificate referred to in subsection (1) must state that the family member has a serious medical condition with a significant risk of death within that period; and (b) that period applies for the purposes of subparagraph (3)(b)(iii). Exception (5) Subparagraph (3)(a)(ii) does not apply to a claim if (a) at the time the certificate is filed with the Commission, all benefits that may otherwise have been payable in relation to that claim have already been exhausted; (b) the beginning of the period referred to in subsection (3) has already been determined with respect to the family member, and the C. 33 Employmen filing of the certificate with the Commission would have the effect of moving the beginning of that period to an earlier date; or (c) the claim is made in any other circumstances set out in the regulations. Deferral of waiting period (6) A self-employed person who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period if (a) another claimant has made a claim for benefits under this section or section 23.1 in respect of the same family member during the period described in subsection (3) and that other claimant has served or is serving their waiting period in respect of that claim; (b) another claimant is making a claim for benefits under this section or section 23.1 in respect of the same family member at the same time as the self-employed person and that other claimant elects to serve the waiting period; or (c) the self-employed person, or another claimant who has made a claim for benefits under this section or section 23.1 in respect of the same family member, meets the prescribed requirements. Division of weeks of benefits (7) If a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under this section or section 23.1 in respect of the same family member, any remaining weeks of benefits payable under this section, under section 23.1 or under both those sections, up to a maximum of six weeks, may be divided in the manner agreed to by the self-employed person and the other person. If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Assuranc Maximum number of weeks that can be divided (8) For greater certainty, if, in respect of the same family member, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23.1, the total number of weeks of benefits payable under this section and section 23.1 that may be divided between them may not exceed six weeks. Limitation (9) If benefits are payable to a self-employed person for the reasons set out in this section and any allowances, money or other benefits are payable to the person under a provincial law for the same or substantially the same reasons, the benefits payable to the person under this section shall be reduced or eliminated as prescribed. QUALIFYING FOR BENEFITS Qualification requirements 152.07 (1) A self-employed person qualifies for benefits if (a) at least 12 months have expired since the day on which the person entered into an agreement referred to in subsection 152.02(1) with the Commission, or if a period has been prescribed for the purpose of this section, a period that is at least as long as that prescribed period has expired since that day; (b) the agreement has not been terminated or deemed to have been terminated; (c) the person has had an interruption of earnings from self-employment; and (d) the person has had during their qualifying period an amount of self-employed earnings that is equal to or greater than the following amount: (i) $6,000 or the amount fixed or determined in accordance with the regulations, if any, for that qualifying period, or (ii) if the person has accumulated a violation in the 260 weeks before making their initial claim for benefits, the amount referred to in this paragraph that would C. 33 Employmen otherwise apply in respect of that selfemployed person but for this subparagraph multiplied by, (A) if the violation is a minor violation, 1.25 or the prescribed multiplier, if one has been prescribed, (B) if the violation is a serious violation, 1.5 or the prescribed multiplier, if one has been prescribed, (C) if the violation is a very serious violation, 1.75 or the prescribed multiplier, if one has been prescribed, or (D) if the violation is a subsequent violation, 2 or the prescribed multiplier, if one has been prescribed. Violations (2) A self-employed person accumulates a violation if in any of the following circumstances the Commission issues a notice of violation to the person: (a) one or more penalties are imposed on the person under section 38, or under section 41.1 as a result of acts or omissions mentioned in section 38; (b) the person is found guilty of one or more offences under section 135 or 136 as a result of acts or omissions mentioned in those sections; or (c) the person is found guilty of one or more offences under the Criminal Code as a result of acts or omissions relating to the application of this Act. Value of violations (3) The value of a violation is the total of (a) the amount of the overpayment of benefits under this Part resulting from the acts or omissions on which the violation is based, and (b) if the self-employed person is disentitled from receiving benefits under this Part, or the act or omission on which the violation is based relates to qualification requirements under subsection (1), the amount determined, subject to subsection (4), by multiplying the self-employed person’s weekly rate of bene2009 Assuranc fits by the average number of weeks of benefits under this Part, as determined under the regulations. Maximum (4) The maximum amount to be determined under paragraph (3)(b) is the amount of benefits that could have been paid to the self-employed person if they had not been disentitled or had met the qualification requirements under subsection (1). Classification of violations (5) Except for violations for which a warning was imposed, each violation is classified as a minor, serious, very serious or subsequent violation as follows: (a) if the value of the violation is (i) less than $1,000, it is a minor violation, (ii) $1,000 or more, but less than $5,000, it is a serious violation, or (iii) $5,000 or more, it is a very serious violation; and (b) if the notice of violation is issued within 260 weeks after the person accumulates another violation, it is a subsequent violation, even if the acts or omissions on which it is based occurred before the person accumulated the other violation. Deemed violation (6) A violation accumulated by an individual under section 7.1 is deemed to be a violation accumulated by the individual under this section on the day on which the notice of violation was given to the individual. Limitation (7) A violation may not be taken into account under paragraph (1)(d) in more than two initial claims by an individual for benefits under this Act if the individual who accumulated the violation qualified for benefits in each of those two initial claims, taking into account subsection 7.1(1) or (2), subparagraph (1)(d)(ii) or regulations made under Part VIII, as the case may be. Qualifying period 152.08 (1) The qualifying period of a selfemployed person is the year immediately before the year during which their benefit period begins. C. 33 Earnings (2) A self-employed person’s self-employed earnings during a qualifying period may not be taken into account in respect of more than one initial claim for benefits. Benefits under this Part and Part I 152.09 (1) If an individual qualifies for benefits under this Part as a self-employed person and for benefits under Part I as an insured person, the individual may receive benefits under one Part only and, to do so, the individual must, in the prescribed manner, at the time of making an initial claim for benefits, elect under which Part benefits are to be paid. Effect of election (2) The election is binding on the individual in respect of the initial claim for all benefits payable, for any of the following reasons, during the benefit period established in relation to the initial claim: Employmen (a) pregnancy; (b) caring for one or more new-born children of the self-employed person, or one or more children placed with the self-employed person for the purpose of adoption; (c) a prescribed illness, injury or quarantine; and (d) providing care or support to one or more family members. BENEFIT PERIOD Establishment 152.1 (1) When a self-employed person who qualifies under section 152.07 makes an initial claim for benefits, a benefit period shall be established and, once it is established, benefits are payable to the person in accordance with this Part for each week of unemployment that falls in the benefit period. Conditions for establishment of benefit period (2) No benefit period is to be established for a self-employed person unless (a) the person makes an initial claim for benefits in accordance with section 50 and the regulations and proves that the person is qualified to receive benefits; and Assuranc (b) the person supplies information in the form and manner directed by the Commission, giving the person’s employment circumstances and the circumstances pertaining to any interruption of earnings, and any other information that the Commission may require. Beginning of benefit period 152.11 (1) A benefit period begins on the later of (a) the Sunday of the week in which the interruption of earnings occurs, and (b) the Sunday of the week in which the initial claim for benefits is made. Length of benefit period (2) The length of a benefit period is 52 weeks, except as otherwise provided in subsections (11) to (19). Prior benefit period (3) Subject to any change or cancellation of a benefit period under this section, a benefit period shall not be established for a selfemployed person if a prior benefit period has not ended. Late initial claim (4) An initial claim for benefits made after the day on which the self-employed person first qualified to make the claim shall be regarded as having been made on an earlier day if the selfemployed person shows that they qualified to receive benefits on the earlier day and that there was good cause for the delay throughout the period that begins on the earlier day and ends on the day on which the initial claim was made. Other late claims (5) A claim for benefits, other than an initial claim for benefits, made after the time prescribed for making the claim shall be regarded as having been made on an earlier day if the self-employed person shows that there was good cause for the delay throughout the period that begins on the earlier day and ends on the day on which their claim was made. C. 33 Exception (6) A claim for benefits referred to in section 152.06 with respect to a family member shall not be regarded as having been made on an earlier day under subsection (4) or (5) if Employmen (a) at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted; (b) the beginning of the period referred to in subsection 152.06(3) has already been determined with respect to that family member and the claim would have the effect of moving the beginning of that period to an earlier date; or (c) the claim is made in any other circumstances set out in the regulations. Cancelling benefit period (7) Once a benefit period has been established for a self-employed person, the Commission may (a) cancel the benefit period if it has ended and no benefits were paid or payable during the period; or (b) whether or not the period has ended, cancel at the request of the self-employed person that portion of the benefit period immediately before the first week for which benefits were paid or payable, if the selfemployed person (i) establishes under this Part — or establishes under Part 1, as an insured person — a new benefit period beginning the first week for which benefits were paid or payable, and (ii) shows that there was good cause for the delay in making the request throughout the period that begins on the day on which benefits were first paid or payable and ends on the day on which the request for cancellation was made. Assuranc Effect of cancellation (8) A cancelled benefit period or portion of a benefit period is deemed never to have begun. End of benefit period (9) A benefit period ends when any of the following first occurs: (a) no further benefits are payable to the selfemployed person in their benefit period, including for the reason that benefits have been paid for the maximum number of weeks for which benefits may be paid under section 152.14; (b) the benefit period would otherwise end under this section; or (c) the self-employed person (i) requests that their benefit period end, (ii) makes a new initial claim for benefits, and (iii) qualifies to receive benefits under this Part or qualifies, as an insured person, to receive benefits under Part I. Late requests (10) Whether or not the benefit period has ended, a request under paragraph (9)(c) shall be regarded as having been made on an earlier day if the self-employed person shows that there was good cause for the delay throughout the period that begins on the earlier day and ends on the day on which the request was made. Extension of benefit period (11) A self-employed person’s benefit period is extended by the aggregate of any weeks during the benefit period for which the selfemployed person proves, in the manner that the Commission may direct, that they were not entitled to benefits because they were (a) confined in a jail, penitentiary or other similar institution; (b) in receipt of earnings paid because of the complete severance of their relationship with their former employer; (c) in receipt of workers’ compensation payments for an illness or injury; or C. 33 Employmen (d) in receipt of payments under a provincial law on the basis of having ceased to work because continuing to work would have resulted in danger to the self-employed person, her unborn child or a child whom she was breast-feeding. Further extension of benefit period (12) A self-employed person’s benefit period is extended by the aggregate of any weeks during an extension of a benefit period under subsection (11) for which the self-employed person proves, in the manner that the Commission may direct, that they were not entitled to benefits because of a reason specified in that subsection. Extension of benefit period — child in hospital (13) If the child or children referred to in subsection 152.05(1) are hospitalized during the period referred to in subsection 152.05(2), the benefit period is extended by the number of weeks during which the child or children are hospitalized. Extension of benefit period (14) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(a) to (c) and benefits were not paid for the maximum number of weeks established for the reasons mentioned in those paragraphs, the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the self-employed person for the reason mentioned in each of those paragraphs. Extension of benefit period (15) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(b) to (d) and benefits were not paid for the maximum number of weeks established for the reasons mentioned in those paragraphs, the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the self-employed person for the reason mentioned in each of those paragraphs. Assuranc Extension of benefit period (16) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(a), (b) and (d) and benefits were not paid for the maximum number of weeks established for the reasons mentioned in those paragraphs, the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the self-employed person for the reason mentioned in each of those paragraphs. Extension of benefit period (17) If, during a self-employed person’s benefit period, benefits were paid because of all of the reasons mentioned in paragraphs 152.14(1)(a) to (d) and benefits were not paid for the maximum number of weeks established for the reasons mentioned in those paragraphs, the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the self-employed person for the reason mentioned in each of those paragraphs. Maximum extension under subsections (11) to (17) (18) Subject to subsection (19), no extension under any of subsections (11) to (17) may result in a benefit period of more than 104 weeks. Maximum extension under subsections (14) to (17) (19) Unless the benefit period is also extended under any of subsections (11) to (13), (a) no extension under subsection (14) may result in a benefit period of more than 67 weeks; (b) no extension under subsection (15) or (16) may result in a benefit period of more than 58 weeks; and (c) no extension under subsection (17) may result in a benefit period of more than 73 weeks. Notification 152.12 On receiving an initial claim for benefits, the Commission shall decide whether the self-employed person is qualified to receive benefits and notify the person of its decision. C. 33 Employmen PAYMENT OF BENEFITS Benefits 152.13 If a benefit period has been established for a self-employed person, benefits may be paid to the person for each week of unemployment that falls in the benefit period, subject to the maximums established by section 152.14. Maximum number of weeks 152.14 (1) The maximum number of weeks for which benefits under this Part may be paid in a benefit period to a self-employed person (a) because of pregnancy is 15; (b) because the self-employed person is caring for one or more new-born children of the self-employed person, or one or more children placed with the self-employed person for the purpose of adoption, is 35; (c) because of a prescribed illness, injury or quarantine is 15; and (d) because the person is providing care or support to one or more family members described in subsection 152.06(1), is 6. Maximum — single pregnancy or placement (2) The maximum number of weeks for which benefits under this Part may be paid to a self-employed person (a) for a single pregnancy is 15; and (b) for the care of one or more new-born or adopted children as a result of a single pregnancy or placement is 35. Adoption (3) For the purposes of this Part, the placement with a self-employed person, at the same or substantially the same time, of two or more children for the purpose of adoption is to be regarded as a single placement of a child or children for the purpose of adoption. Assuranc Maximum — parental benefits (4) If a claim is made under this Part in respect of a child or children referred to in paragraph (2)(b) and a claim is made under section 23 in respect of the same child or children, the maximum number of weeks of benefits payable under this Act in respect of the child or children is 35. Maximum — compassionate care benefits (5) Even if more than one claim is made under this Act, at least one of which is made under this Part — or even if more than one certificate is issued for the purposes of this Act, at least one of which is issued for the purposes of this Part — in respect of the same family member, the maximum number of weeks of benefits payable under this Act in respect of that family member is six weeks during the period of 26 weeks beginning with the first day of the week referred to in paragraph 152.06(3)(a). Shorter period (6) If a shorter period is prescribed for the purposes of subsection 152.06(4), then that shorter period applies for the purposes of subsection (5). Expiry of shorter period (7) When a shorter period referred to in subsection (6) has expired in respect of a family member, no further benefits are payable under section 152.06 in respect of that family member until the minimum prescribed number of weeks has elapsed. Combined weeks of benefits (8) In a self-employed person’s benefit period, the self-employed person may, subject to the applicable maximums, combine weeks of benefits to which the self-employed person is entitled because of a reason mentioned in subsection (1), but the maximum number of combined weeks is 50. However, if the benefit period (a) is extended under subsection 152.11(14), the maximum number of combined weeks is 65; (b) is extended under subsection 152.11(15) or (16), the maximum number of combined weeks is 56; and C. 33 Employmen (c) is extended under subsection 152.11(17), the maximum number of combined weeks is 71. Waiting period 152.15 A self-employed person is not entitled to be paid benefits in a benefit period until, after the beginning of the benefit period, the person has served a two week waiting period that begins with a week of unemployment for which benefits would otherwise be payable. Rate of weekly benefits 152.16 (1) The rate of weekly benefits payable to a self-employed person is 55% of the result obtained by dividing the aggregate of the amounts referred to in paragraphs (a) and (b) by 52: (a) the amount of their self-employed earnings, determined under paragraph 152.01(2)(a), (b) or (c), as the case may be, for their qualifying period; and (b) if they had insurable earnings from employment, including insurable earnings earned as a person to whom regulations made under Part VIII apply, for their qualifying period, the amount of those insurable earnings for that period, calculated without taking into account prescribed insurable earnings. Excess not to be included (2) Only the portion of the aggregate of the amounts referred to in paragraphs (1)(a) and (b) that does not exceed the maximum yearly insurable earnings as calculated under section 4 is to be taken into account for the purposes of subsection (1). Rate increase — family supplement 152.17 (1) The rate of weekly benefits of a self-employed person who has one or more dependent children shall be increased by the amount of a family supplement determined in accordance with the regulations if the person establishes, in the manner that the Commission may direct, that the person meets the prescribed low-income family eligibility criteria. Assuranc Criteria (2) The criteria for low-income family eligibility may include criteria that are the same as or similar to the criteria for receiving a child tax benefit. Child tax benefit (3) For the purposes of subsection (2), a child tax benefit is a deemed overpayment under subdivision a.1 of Division E of Part I of the Income Tax Act. Maximum increase (4) The amount of the increase in the selfemployed person’s rate of weekly benefits shall not exceed the prescribed percentage of their amount of self-employed earnings for the year divided by 52 or, if no percentage is prescribed, 25%. Maximum rate of weekly benefits (5) The maximum rate of weekly benefits that may be paid under this section is 55% of the maximum yearly insurable earnings, as calculated under section 4, divided by 52. Earnings in waiting period 152.18 (1) If a self-employed person has earnings during their waiting period, an amount not exceeding those earnings shall, as prescribed, be deducted from the benefits payable for the first three weeks for which benefits would otherwise be payable. Earnings in periods of unemployment (2) Subject to subsection (3), if the selfemployed person has earnings during any other week of unemployment, there shall be deducted from benefits payable in that week the amount, if any, of the earnings that exceeds (a) $50, if their rate of weekly benefits is less than $200; or (b) 25% of their rate of weekly benefits, if that rate is $200 or more. Undeclared earnings (3) If the self-employed person has failed to declare all or some of their earnings to the Commission for a period, determined under the regulations, for which benefits were claimed, C. 33 Employmen (a) the following amount shall be deducted from the benefits paid to the person for that period: (i) the amount of the undeclared earnings, if, in the opinion of the Commission, the person knowingly failed to declare the earnings, or (ii) in any other case, the amount of the undeclared earnings less the difference between (A) all amounts determined under paragraph (2)(a) or (b) for the period, and (B) all amounts that were applied under those paragraphs in respect of the declared earnings for the period; and (b) the deduction shall be made (i) from the benefits paid for a number of weeks that begins with the first week for which the earnings were not declared in that period, and (ii) in such a manner that the amount deducted in each consecutive week equals the person’s benefits paid for that week. Deduction for excluded days in waiting period 152.19 (1) If a self-employed person is not entitled to receive benefits for a working day in their waiting period, an amount equal to 1/5 of their weekly rate of benefits for each such working day shall be deducted from the benefits payable for the three weeks described in subsection 152.18(1). Deduction for excluded days not in waiting period (2) If a self-employed person is disentitled from receiving benefits for a working day in a week of unemployment that is not in their waiting period, an amount equal to 1/5 of their weekly rate of benefits for each such working day shall be deducted from the benefits payable for that week. Prison inmates and persons outside Canada 152.2 Except as may otherwise be prescribed, a self-employed person is not entitled to receive benefits for any period during which the person Assuranc (a) is an inmate of a prison or similar institution; or (b) is not in Canada. PREMIUM Premium 152.21 (1) Every self-employed person who has entered into an agreement referred to in subsection 152.02(1) that has not been terminated or that is not deemed to have been terminated shall, in respect of every year, pay a self-employment premium equal to the amount determined under subsection (2) multiplied by the premium rate set under section 66. Amount (2) The amount for the purpose of subsection (1) is the lesser of (a) the amount of the person’s self-employed earnings for the year, and (b) the maximum yearly insurable earnings for the year, as calculated under section 4, minus the person’s insurable earnings, if any. Clarification (3) For greater certainty, a premium is required to be paid (a) in respect of the year during which the self-employed person entered into the agreement, regardless of the date on which it was entered into; and (b) in respect of the year during which the agreement is terminated or deemed to be terminated, regardless of the date on which it was terminated or deemed to be terminated. SELF-EMPLOYED EARNINGS AND COLLECTION OF PREMIUMS Return to be filed 152.22 (1) If a self-employed person is required to pay a premium for a year in respect of their self-employed earnings, a return of the person’s self-employed earnings for the year shall, without notice or demand for it, be filed with the Minister of National Revenue in the form and manner, and containing the information, specified by that Minister, by that person (or, if the person is unable for any reason to file C. 33 Employmen the return, by their representative) on or before the day on which the person’s return of income under Part I of the Income Tax Act is required by that Part to be filed or would be required by that Part to be filed if tax under that Part were payable for the year. Demand for return (2) Whether or not they are liable to pay a premium for a year in respect of their earnings from self-employment and whether or not a return has been filed under subsection (1), every self-employed person shall, on demand from the Minister of National Revenue, served personally or by registered letter, file with that Minister, in the form and containing information specified by that Minister, within any reasonable time that may be specified in the demand, a return of their earnings from self-employment for the year designated in the demand. Return by trustee, etc. (3) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, receiver-manager trustee or committee and every agent, mandatary or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or succession, or income of a self-employed person who has not filed a return of the person’s self-employed earnings for a year as required by this section must file with the Minister of National Revenue a return, in the form specified by that Minister, of the person’s self-employed earnings for the year. Identification of province of residence (4) The information to be contained in any such return must identify the province in which the self-employed person was resident on the last day of that year. Estimate to be made 152.23 Every self-employed person required by section 152.22 to file a return of their selfemployed earnings must, in the return, estimate the amount of the premium to be paid in respect of those earnings. Examination of return and notice of assessment 152.24 The Minister of National Revenue must, with all due dispatch, examine each return of self-employed earnings and assess the premium to be paid for the year in respect of Assuranc those earnings and the interest and penalties, if any, payable, and, after the examination, send a notice of assessment to the person who filed the return. Payment of premium 152.25 (1) A self-employed person shall, on or before their balance-due day for the year, pay to the Receiver General the whole amount of the premium if they are not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of their income tax. Farmers (2) Every self-employed person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of the following amounts: (a) the premium required to be paid by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or (b) the premium required in respect of the person’s self-employed earnings for the preceding year. In addition, the person shall pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the premium as estimated under section 152.23. However, paragraphs (a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the death of the person. Other persons (3) Every self-employed person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year (a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of (i) the premium required to be paid by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or C. 33 Employmen (ii) the premium required in respect of the person’s self-employed earnings for the preceding year; or (b) on or before (i) March 15 and June 15 in the year, an amount equal to one quarter of the premium required in respect of the person’s self-employed earnings for the second preceding year, and (ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which (A) the premium required in respect of the person’s self-employed earnings for the preceding year exceeds (B) one half of the premium required in respect of the person’s self-employed earnings for the second preceding year. In addition, the person shall pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the premium as estimated under section 152.23. However, paragraphs (a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the death of the person. Interest on unpaid premium 152.26 (1) If the amount paid by a selfemployed person on or before the person’s balance-due day for a year on account of the premium required to be paid by the person for the year in respect of the person’s self-employed earnings is less than the amount of the premium so required to be paid, the self-employed person shall pay to the Receiver General interest, at a Assuranc rate per year prescribed by regulation made under subsection (5), on the difference between those amounts from the balance-due day for the year to the day of payment. Interest on instalments (2) In addition to any interest payable under subsection (1), if a self-employed person, being required by section 152.25 to pay a part or instalment of a premium, has failed to pay all or any part of a premium as required, the person shall, on payment of the amount the person failed so to pay, pay to the Receiver General interest on the amount, at a rate per year prescribed by regulation made under subsection (5), from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is earlier. Farmers (3) For the purposes of subsection (2), if a self-employed person is required by subsection 152.25(2) to pay a part or instalment of a premium in respect of their self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in that subsection a part or instalment computed by reference to whichever of the following that gives rise to the least amount required to be paid by the person on or before that day: (a) the premium required to be paid by them for the year in respect of their self-employed earnings; (b) the premium required in respect of their self-employed earnings for the preceding year; or (c) the amount stated to be the amount of the instalment payable by them for the year in the notice, if any, sent to them by the Minister of National Revenue. Other persons (4) For the purposes of subsection (2), if a self-employed person is required by subsection 152.25(3) to pay a part or instalment of a premium in respect of their self-employed earnings, the person is deemed to have been C. 33 Employmen liable to pay on or before each day referred to in that subsection a part or instalment computed by reference to whichever of the following that gives rise to the least total amount of those parts or instalments required to be paid by them by that day: (a) the premium required to be paid by them for the year in respect of their self-employed earnings; (b) the amounts determined under paragraph 152.25(3)(b) in respect of them for the year; (c) the amounts stated to be the amounts of instalment payable by them for the year in the notices, if any, sent to them by the Minister of National Revenue; or (d) the premium required in respect of their self-employed earnings for the preceding year. Regulations (5) The Minister of National Revenue may, with the approval of the Governor in Council, make regulations, prescribing a rate for the purposes of each of subsections (1) and (2). Failure to file a return 152.27 (1) Every self-employed person who fails to file a return of their self-employed earnings for a year as and when required by section 152.22 is liable to a penalty of five per cent of the part of the amount of the premium required to be paid by them for the year that remained unpaid at the expiry of the time the return was required to be filed, except that, if that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister of National Revenue may reduce the penalty to which the person is liable under this section or may remit the penalty in whole or in part. Failure (2) Every person who fails to file a return as required by subsection 152.22(3) is liable to a penalty of $5 for each day of default, to a maximum of $50. Application of Income Tax Act 152.28 (1) Subject to this Part and except as otherwise provided by regulation made under subsection (2), the provisions of Divisions I and Assuranc J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV of that Act (except section 221) and subsections 248(7) and (11) of that Act apply, with any modifications that the circumstances require, in relation to any amount paid or payable as or on account of the premium for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act. Regulations (2) The Minister of National Revenue may, with the approval of the Governor in Council, make regulations (a) exempting any provision of Divisions I and J of Part I of the Income Tax Act from the application of subsection (1); or (b) specifying that any provisions of either of those Divisions apply with the modifications specified in the regulations. Priority in which payment to be applied 152.29 If any payment is made by a person to the Minister of National Revenue on account of taxes specified in section 228 of the Income Tax Act and of a premium under this Part in respect of self-employed earnings, despite any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that section in payment of tax under the Income Tax Act is, subject to section 37 of the Canada Pension Plan, to be applied in payment of a premium under this Part and is deemed to be a payment on account of the premium, and to the extent of the amount so applied, does not discharge liability for tax under the Income Tax Act, and any amount then remaining is to be applied in payment of tax under the Income Tax Act and discharges the liability of the person making the payment for that tax to the extent of that amount. C. 33 Refund of excess premium in respect of selfemployed earnings 152.3 (1) If a self-employed person has paid, on account of the premium they are required to pay for a year in respect of their selfemployed earnings, an amount in excess of the premium, the Minister of National Revenue Employmen (a) may refund that part of the amount so paid in excess of the premium on mailing the notice of assessment of the premium, without any application having been made for the refund; and (b) shall make the refund after mailing the notice of assessment, if an application for the refund is made in writing by the selfemployed person not later than three years after the end of the year. Application (2) Subsections 96(11) to (13) apply in respect of refunds under subsection (1). APPLICATION OF OTHER PROVISIONS Application of other provisions Application of certain provisions 152.31 (1) Subject to subsections (2) and (3), all the provisions of this Act, except sections 5 to 37, 48 and 56 to 65.2, that are not inconsistent with the provisions of this Part apply, with any modifications that the circumstances require, to this Part. (2) For the purposes of this Part, (a) subsection 86(1) applies as though the reference to “an employer” in that subsection were a reference to “a self-employed person”; and (b) subsection 88(5) applies as though the reference to “this Part” were a reference to “Part VII.1”. Application of section 102 (3) Section 102 applies, with any modifications that the circumstances require, in respect of (a) offences under paragraphs 106(4)(a), (d) and (e) committed in relation to any provision of this Part or regulations made under sections 152.26 and 152.28; (b) offences under section 152.32; and (c) any matter referred to in any of sections 152.21 to 152.3 or that relates to the application of any of those sections. 2009 Application of section 125 Assuranc (4) Section 125 applies in respect of (a) offences under subsections 135(1) and 136(2) committed by self-employed persons and offences committed by them in relation to the contravention of any provision of regulations made under this Part, except regulations made under sections 152.26 and 152.28; and (b) any matter referred to in this Part or that relates to the application of this Part, other than a matter referred to in any of sections 152.21 to 152.3 or in regulations made under sections 152.26 and 152.28. DELEGATION Delegation 152.311 The Minister of National Revenue may authorize an officer or a class of officers to exercise powers or perform duties of that Minister under this Part. OFFENCES Offence and punishment 152.32 Every person who contravenes section 152.22 is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $25 a day for each day the offence continues, to a maximum of $1,000. REGULATIONS Regulations 152.33 The Commission may, with the approval of the Governor in Council, make regulations (a) defining or determining what is a week of unemployment for a self-employed person; (b) setting out the circumstances under which agreements referred to in subsection 152.02(4) are deemed to be terminated; (c) fixing, for any year, an amount for the purposes of subparagraph 152.07(1)(d)(i), or establishing a manner for determining that amount, which amount may not be less than $6,000; (d) for determining the average number of weeks of benefits for the purposes of paragraph 152.07(3)(b); C. 33 Employmen (e) specifying, for the purpose of subsection 152.03(4), the circumstances when self-employed persons are deemed to be not working; and (f) prescribing anything that by this Part is to be prescribed. REVIEW OF THIS PART Review of this Part 152.34 Five years after the day on which this Part comes into force, the Minister must cause a review of this Part and its administration and operation to be conducted. 2005, c. 30, s. 131 17. (1) The portion of subsection 153.2(1) of the Act before paragraph (a) is replaced by the following: Regulations 153.2 (1) Despite any other provisions of this Act, if the Government of Canada has entered into an agreement with a province in respect of a provincial law that has the effect of reducing or eliminating special benefits, or benefits under Part VII.1, payable as described in subsection 69(2), the Commission may, with the approval of the Governor in Council, for the purposes of implementing the agreement and taking into account the application or effect of the provincial law, make any regulations that it considers necessary, including regulations 2005, c. 30, s. 131 (2) Subparagraph 153.2(2)(a)(i) of the Act is replaced by the following: (i) refunds of overpayments with respect to employees’ premiums and premiums under Part VII.1, 2005, c. 30, s. 131 (3) Paragraph 153.2(2)(c) of the Act is replaced by the following: (c) the administration of benefits payable under this Act to persons employed or residing in the province or who have made a claim under the provincial law — or to selfemployed persons, within the meaning of subsection 152.01(1), who work or reside in the province or who have made a claim under Assuranc the provincial law — and the increase or decrease in the amount of benefits payable and in the number of weeks for which benefits may be paid under this Act to and in respect of those persons. TRANSITIONAL PROVISIONS Agreements 18. Agreements referred to in subsection 152.02(1) of the Employment Insurance Act may be entered into at any time during the period that begins on the day on which this Act receives royal assent and ends on the day on which section 16 comes into force, but any such agreement that is entered into during that period is deemed to have been entered into on the day on which that section comes into force. Benefit periods during 2011 19. Despite paragraph 152.07(1)(a) of the Employment Insurance Act, a benefit period under Part VII.1 of that Act may begin on or after January 1, 2011 if the self-employed person to whom the benefit period relates has, during the period that begins on the later of the day on which this Act receives royal assent and January 1, 2010 and ends on April 1, 2010, entered into an agreement referred to in subsection 152.02(1) of that Act. Violations 20. For the purpose of subsection 152.07(6) of the Employment Insurance Act, a violation accumulated by an individual under section 7.1 of that Act before the coming into force of that subsection is deemed to be a violation accumulated by the individual under section 152.07 on the day on which the notice of violation was given to the individual even though that section was not in force on that day. CONSEQUENTIAL AMENDMENTS R.S., c. B-3; 1992, c. 27, s. 2 2000, c. 30, s. 143(1) BANKRUPTCY AND INSOLVENCY ACT 21. Paragraph 54(2.1)(b) of the Bankruptcy and Insolvency Act is replaced by the following: C. 33 Employmen (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts; or 2000, c. 30, s. 144(1) 22. Paragraph 60(1.1)(b) of the Act is replaced by the following: (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts; or 2000, c. 30, s. 145(1) 23. (1) Clause 69(1)(c)(ii)(B) of the Act is replaced by the following: (B) provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, 2000, c. 30, s. 145(2) (2) Subparagraph 69(3)(a)(ii) of the Act is replaced by the following: (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2000, c. 30, s. 145(2) Assuranc (3) Subparagraph 69(3)(b)(ii) of the Act is replaced by the following: (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2000, c. 30, s. 146(1) 24. (1) The portion of paragraph 69.1(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) Her Majesty in right of Canada may not exercise Her rights under subsection 224(1.2) of the Income Tax Act or any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, in respect of the insolvent person where the insolvent person is a tax debtor under that subsection or provision, until 2000, c. 30, s. 146(2) (2) Subparagraph 69.1(3)(a)(ii) of the Act is replaced by the following: (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s C. 33 Employmen premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2000, c. 30, s. 146(2) (3) Subparagraph 69.1(3)(b)(ii) of the Act is replaced by the following: (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2000, c. 30, s. 148(1) 25. Paragraph 86(3)(b) of the Act is replaced by the following: (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts; or 2005, c. 47, s. 92(2); 2007, c. 36, s. 51(2) 26. Paragraph 149(3)(b) of the Act is replaced by the following: (b) any provision of the Canada Pension Plan or Employment Insurance Act that refers to the Income Tax Act and provides for the collection of a contribution as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts; Assuranc R.S., c. C-36 COMPANIES’ CREDITORS ARRANGEMENT ACT 2005, c. 47, s. 126; 2007, c. 36, s. 106 27. Paragraph 6(3)(b) of the Companies’ Creditors Arrangement Act is replaced by the following: (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts; or 2005, c. 47, s. 128 28. (1) The portion of paragraph 11.09(1)(a) of the Act before subparagraph (i) is replaced by the following: (a) Her Majesty in right of Canada may not exercise rights under subsection 224(1.2) of the Income Tax Act or any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, in respect of the company if the company is a tax debtor under that subsection or provision, for the period that the court considers appropriate but ending not later than 2005, c. 47, s. 128 (2) Subparagraph 11.09(2)(a)(ii) of the Act is replaced by the following: (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, C. 33 Employmen or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2005, c. 47, s. 128 (3) Subparagraph 11.09(2)(b)(ii) of the Act is replaced by the following: (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2005, c. 47, s. 128 (4) Paragraph 11.09(3)(b) of the Act is replaced by the following: (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2005, c. 47, s. 131 29. Paragraph 38(3)(b) of the Act is replaced by the following: (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, or 2009 R.S. c. L-2 2003, c. 15, s. 27 Assuranc CANADA LABOUR CODE 30. (1) Paragraph (d) of the definition “family member” in subsection 206.3(1) of the Canada Labour Code is replaced by the following: (d) any other person who is a member of a class of persons prescribed for the purposes of this definition or the definition “family member” in subsection 23.1(1) or 152.01(1) of the Employment Insurance Act. 2003, c. 15, s. 27 “qualified medical practitioner” « médecin qualifié » (2) The definition “qualified medical practitioner” in subsection 206.3(1) of the Act is replaced by the following: “qualified medical practitioner” means a person who is entitled to practise medicine under the laws of a jurisdiction in which care or treatment of the family member is provided and includes a member of a class of medical practitioners prescribed for the purposes of subsection 23.1(3) or 152.06(2) of the Employment Insurance Act. 2003, c. 15, s. 27 (3) The portion of subsection 206.3(4) of the Act before paragraph (a) is replaced by the following: Shorter period (4) If a shorter period is prescribed by regulation for the purposes of subsection 23.1(5) or 152.06(4) of the Employment Insurance Act, 2003, c. 15, s. 27 (4) Subsection 206.3(5) of the Act is replaced by the following: Expiry of shorter period (5) When a shorter period referred to in subsection (4) has expired in respect of a family member, no further leave may be taken under this section in respect of that family member until the minimum number of weeks prescribed for the purposes of subsection 12(4.3) or 152.14(7) of the Employment Insurance Act has elapsed. (5) Section 206.3 of the Act is amended by adding the following after subsection (8): C. 33 Application (9) The references in this section to provisions that are in Part VII.1 of the Employment Insurance Act apply only in relation to employees who are self-employed persons referred to in paragraph (b) of the definition “self-employed person” in subsection 152.01(1) of that Act. R.S., c. O-9 OLD AGE SECURITY ACT 1999, c. 22, s. 87(1) 31. Paragraph (b) of the definition “income” in section 2 of the Old Age Security Act is replaced by the following: Employmen (b) there shall be deducted from the person’s self-employment earnings for the year (i) the amount of contributions made in respect of those self-employed earnings by the person during the year under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, and (ii) the amount of premium paid by the person during the year under Part VII.1 of the Employment Insurance Act, 1990, c. 39, s. 57 32. Paragraph 13(b) of the Act is replaced by the following: (b) there shall be deducted from the person’s or applicant’s self-employed earnings for that year (i) the amount of contributions made in respect of those self-employed earnings by the person or applicant during the year under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, and (ii) the amount of premium paid by the person or applicant during the year under Part VII.1 of the Employment Insurance Act; and R.S., c. T-2 TAX COURT OF CANADA ACT 1996, c. 23, s. 184 33. Paragraph 18.29(1)(b) of the Tax Court of Canada Act is replaced by the following: (b) Parts IV, VII and VII.1 of the Employment Insurance Act; Assuranc COORDINATING AMENDMENTS 2000, c. 14 34. On the first day on which both section 10 of the Budget Implementation Act, 2000 has produced its effects and subsection 7(2) of this Act is in force, subsection 23(6) of the Employment Insurance Act, as enacted by that subsection 7(2), is renumbered as subsection (7) and is repositioned accordingly if required. 2000, c. 12 35. On the first day on which both subsection 107(3) of the Modernization of Benefits and Obligations Act and section 16 of this Act are in force, section 152.05 of the Employment Insurance Act is amended by adding the following after subsection (13): Interpretation (13.1) Subsections 152.14(1) to (8) are to be read as including the situation where a selfemployed person is caring for one or more children and meets the requirements set out in the regulations made under paragraph 54(f.1). 2000, c. 12 36. On the first day on which both section 109 of the Modernization of Benefits and Obligations Act and section 16 of this Act are in force: (a) paragraph 54(f.1) of the Employment Insurance Act is replaced by the following: (f.1) for the purposes of paragraphs 23(1)(c) and (2)(c), subsection 23(5) paragraphs 152.05(1)(c) and (2)(c) and subsection 152.05(7), respecting the following requirements, subject to consulting the governments of the provinces: (i) the circumstances in which the claimant must be caring for the child or children, (ii) the criteria that the claimant must meet, (iii) the conditions that the claimant must fulfil, and (iv) any other matter that the Commission considers necessary for the purpose of carrying out sections 23 and 152.05; (b) subsections 152.05(1) and (2) of the Employment Insurance Act are replaced by the following: C. 33 Parental benefits 152.05 (1) Subject to this Part, benefits are payable to a self-employed person to care for Employmen (a) one or more new-born children of the person; (b) one or more children placed with the person for the purpose of adoption under the laws governing adoption in the province in which the person resides; or (c) one or more children if the self-employed person meets the requirements set out in the regulations made under paragraph 54(f.1). Weeks for which benefits may be paid (2) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (a) that begins with the week in which the child or children of the self-employed person are born and that ends 52 weeks after that week; (b) that begins with the week in which the child or children of the self-employed person are actually placed with the self-employed person for the purpose of adoption and that ends 52 weeks after that week; or (c) that begins with the week in which the self-employed person first meets the requirements set out in the regulations made under paragraph 54(f.1) and ends 52 weeks after that week. COMING INTO FORCE Sections 2 to 33 37. (1) Subject to subsection (2), sections 2 to 33 come into force on the later of the day on which this Act receives royal assent and January 1, 2010. Exception (2) Subsections 152.25(2) and (3) of the Employment Insurance Act, as enacted by section 16, come into force on January 1, 2011. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 19 An Act to amend the Judges Act ASSENTED TO 18th JUNE, 2009 BILL C-39 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Judges Act”. SUMMARY This enactment amends the Judges Act to change the number of judges referred to in paragraph 16(d) to 31. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 19 An Act to amend the Judges Act [Assented to 18th June, 2009] R.S., c. J-1 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2006, c. 11, s. 1 1. Paragraph 16(d) of the Judges Act is replaced by the following: (d) the 31 puisne judges of the Court of Queen’s Bench, $232,300 each. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 31 An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures ASSENTED TO 15th DECEMBER, 2009 BILL C-51 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures”. SUMMARY Part 1 implements income tax measures proposed in the Budget tabled in Parliament on January 27, 2009 but not included in the Budget Implementation Act, 2009, which received royal assent on March 12, 2009. In particular, it (a) introduces the Home Renovation Tax Credit; (b) introduces the First-time Home Buyers’ Tax Credit; and (c) enhances the tax relief provided by the Working Income Tax Benefit. In addition, Part 1 extends the existing tax deferral available to farmers in prescribed drought regions to farmers who dispose of breeding livestock because of flood or excessive moisture and sets out the regions prescribed either as eligible flood or drought regions in 2007 to 2009. Part 2 authorizes payments to be made out of the Consolidated Revenue Fund for multilateral debt relief and in relation to offshore petroleum resources. It also makes the following amendments: (a) the Bretton Woods and Related Agreements Act is amended to implement amendments proposed by the Board of Governors of the International Monetary Fund; (b) the Broadcasting Act is amended to extend the Canadian Broadcasting Corporation’s borrowing limit to $220,000,000; (c) the Budget Implementation Act, 2009 is amended to clarify the purposes for which payments may be made; (d) the Canada Pension Plan is amended to (i) remove the work cessation test in 2012 so that a person may take their retirement pension as early as age 60 without the requirement of a work interruption or earnings reduction, (ii) increase the general drop-out from 15% to 16% in 2012 allowing a maximum of almost seven and a half years of low or zero earnings to be dropped from the contributory period and to 17% in 2014 allowing a maximum of eight years to be dropped, Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca (iii) require a person under the age of 65 who receives a retirement pension and continues working to contribute to the Canada Pension Plan and thereby create eligibility for a post-retirement benefit, (iv) permit a person aged 65 to 70 who receives a retirement pension to elect not to contribute to the Canada Pension Plan, and (v) have the adjustment factors that apply to early or late take-up of retirement pensions fixed by regulation after December 31, 2010 and have the Minister of Finance and the ministers of the included provinces review the adjustment factors and make recommendations as to whether the factors should be changed; (e) the Canada Pension Plan Investment Board Act is amended by repealing section 37 and by permitting the approval of regulations made under subsection 53(1) before they are made; (f) The Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act is amended to provide for Crown share adjustment payments to be made in accordance with an agreement between Canada and Nova Scotia; (g) the Customs Tariff is amended to change the conditions relating to containers temporarily imported under tariff item 9801.10.20 and to add new tariff item 9801.10.30 relating to temporarily imported trailers and semitrailers; (h) the Financial Administration Act is amended to require that departments and parent Crown corporations cause quarterly financial reports to be prepared every fiscal quarter and to make them public; and (i) the Public Service Superannuation Act is amended by adding the name of PPP Canada Inc. to Part I of Schedule I to that Act. Part 2 also amends the Bankruptcy and Insolvency Act and chapter 36 of the Statutes of Canada, 2007 to correct unintended consequences resulting from the inaccurate coordination of two amending Acts. TABLE OF PROVISIONS AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON JANUARY 27, 2009 AND TO IMPLEMENT OTHER MEASURES SHORT TITLE Economic Recovery Act (stimulus) 1. PART 1 AMENDMENTS RELATED TO INCOME TAX INCOME TAX ACT 2-15. Amendments INCOME TAX REGULATIONS 16-17. Amendments PART 2 MISCELLANEOUS PAYMENTS Multilateral Debt Relief 18. Maximum payment of $2,500,000,000 Payment to Nova Scotia — Offshore Petroleum Resources 19. Payment of $174,500,000 BRETTON WOODS AND RELATED AGREEMENTS ACT 20-22. Amendments BROADCASTING ACT 23. Amendment BUDGET IMPLEMENTATION ACT, 2009 24. Amendment CANADA PENSION PLAN 25-42. 43. Amendments to the Act Coming into Force i CANADA PENSION PLAN INVESTMENT BOARD ACT 44-45. 46. Amendments to the Act Coming into Force CANADA – NOVA SCOTIA OFFSHORE PETROLEUM RESOURCES IMPLEMENTATION ACT 47-50. Amendments CUSTOMS TARIFF 51-56. 57. Amendments to the Act Coordinating Amendments FINANCIAL ADMINISTRATION ACT 58-60. 61. Amendments to the Act Coming into Force PUBLIC SERVICE SUPERANNUATION ACT 62. Amendment AMENDMENTS RELATED TO THE BANKRUPTCY AND INSOLVENCY ACT 63-66. 67. Bankruptcy and Insolvency Act Chapter 36 of the Statutes of Canada, 2007 SCHEDULE 57-58 ELIZABETH II —————— CHAPTER 31 An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures [Assented to 15th December, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Economic Recovery Act (stimulus). PART 1 AMENDMENTS RELATED TO INCOME TAX R.S., c. 1 (5th Supp.) INCOME TAX ACT 2. (1) The portion of subsection 80.3(4) of the Income Tax Act before the formula is replaced by the following: Income deferral for regions of drought, flood or excessive moisture (4) If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula C. 31 Economic Reco (2) The portion of subsection 80.3(5) of the Act before paragraph (b) is replaced by the following: Inclusion of deferred amount (5) The amount deducted under subsection (4) in computing the income of a taxpayer for a particular taxation year from a farming business carried on in a region prescribed under that subsection may, to the extent that the taxpayer so elects, be included in computing the taxpayer’s income from the business for a taxation year ending after the particular taxation year, and is, except to the extent that the amount has been included under this subsection in computing the taxpayer’s income from the business for a preceding taxation year after the particular year, deemed to be income of the taxpayer from the business for the taxation year of the taxpayer that is the earliest of (a) the first taxation year beginning after the end of the period or series of continuous periods, as the case may be, for which the region is prescribed under that subsection, (3) Subsections (1) and (2) apply to the 2008 and subsequent taxation years. 3. (1) Section 108 of the Act is amended by adding the following after subsection (1): Home renovation tax credit (1.1) For the purpose of the definition “testamentary trust” in subsection (1), a contribution to a trust does not include a qualifying expenditure (within the meaning of section 118.04) of a beneficiary under the trust. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 4. (1) The Act is amended by adding the following after section 118.03: Definitions “eligible dwelling” « logement admissible » 118.04 (1) The following definitions apply in this section. “eligible dwelling” of an individual, at any time, means a housing unit (including the land subjacent to the housing unit and the immedi2009 Reprise économique ately contiguous land, but not including the portion of such land that exceeds the greater of 1/2 hectare and the portion of such land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if (a) the individual (or a trust under which the individual is a beneficiary) owns, whether jointly with another person or otherwise, at that time, the housing unit or a share of the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and (b) the housing unit is ordinarily inhabited at any time during the eligible period by the individual, by the individual’s spouse or common-law partner or former spouse or common-law partner or by a child of the individual. “eligible period” « période d’admissibilité » “individual” « particulier » “qualifying expenditure” « dépense admissible » “eligible period” means the period that begins on January 28, 2009 and that ends on January 31, 2010. “individual” does not include a trust. “qualifying expenditure” of an individual means an outlay or expense that is made or incurred, by the individual or by a qualifying relation in respect of the individual during the eligible period, that is directly attributable to a qualifying renovation by the individual and that is the cost of goods acquired or services received during the eligible period and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense (a) to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation in respect of the individual, for any purpose whatever before they were acquired by the individual or the qualifying relation in respect of the individual; (b) made or incurred under the terms of an agreement entered into before the eligible period; C. 31 Economic Reco (c) to acquire a property that can be used independently of the qualifying renovation; (d) that is the cost of annual, recurring or routine repair or maintenance; (e) to acquire a household appliance; (f) to acquire an electronic home-entertainment device; (g) for financing costs in respect of the qualifying renovation; (h) made or incurred for the purpose of gaining or producing income from a business or property; or (i) in respect of goods or services provided by a person not dealing at arm’s length with the individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act. “qualifying relation” « proche admissible » “qualifying renovation” « travaux de rénovation admissibles » Rules of application “qualifying relation” in respect of an individual means a person who is the individual’s spouse or common-law partner, or a child of the individual who has not attained the age of 18 years before the end of 2009 (other than a child who was, at any time during the eligible period, a married person, a person who is in a commonlaw partnership or a person who has a child). “qualifying renovation” by an individual, at any time, means a renovation or alteration, of a property that is at that time an eligible dwelling of the individual or of a qualifying relation in respect of the individual, that is of an enduring nature and that is integral to the eligible dwelling. (2) For the purposes of this section, (a) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a co-operative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that Reprise économique corporation, and that includes an eligible dwelling of the individual, to the extent of the individual’s share of that outlay or expense, if (i) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were an eligible dwelling of that natural person, and (ii) the corporation has notified the individual, in writing, of the individual’s share of the outlay or expense; and (b) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes an eligible dwelling of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling of the individual (including, for this purpose, common areas relevant to more than one eligible dwelling), if (i) the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were an eligible dwelling of that natural person, and (ii) the trust has notified the individual, in writing, of the individual’s share of the outlay or expense. Home renovation tax credit (3) For the purposes of computing the tax payable under this Part by an individual for the individual’s 2009 taxation year, there may be deducted the amount determined by the formula A × (B – $1,000) where A is the appropriate percentage for the taxation year; and B is the lesser of $10,000 and the total of all amounts, each of which is a qualifying expenditure of the individual. Interaction with medical expense credit (4) Notwithstanding paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under C. 31 Economic Reco section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions. Apportionment of credit (5) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying expenditure of an individual, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying expenditure, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. Definitions 118.05 (1) The following definitions apply in this section. “qualifying home” « habitation admissible » “qualifying home” in respect of an individual, means a “qualifying home” as defined in subsection 146.01(1) that is acquired, whether jointly or otherwise, after January 27, 2009 if (a) the home is acquired by the individual, or by the individual’s spouse or common-law partner, and (i) the individual intends to inhabit the home as a principal place of residence not later than one year after its acquisition, (ii) the individual did not own, whether jointly or otherwise, a home that was occupied by the individual in the period (A) that began at the beginning of the fourth preceding calendar year that ended before the acquisition, and (B) that ended on the day before the acquisition, and (iii) the individual’s spouse or commonlaw partner did not, in the period referred to in subparagraph (ii), own, whether jointly or otherwise, a home (A) that was inhabited by the individual during the marriage to or common-law partnership with the individual, or Reprise économique (B) that was a share of the capital stock of a cooperative housing corporation that relates to a housing unit inhabited by the individual during the marriage to or common-law partnership with the individual; or (b) the home is acquired by the individual for the benefit of a specified person in respect of the individual, and (i) the individual intends that the home be inhabited by the specified person as a principal place of residence not later than one year after its acquisition by the individual, and (ii) the purpose of the acquisition of the home by the individual is to enable the specified person to live in (A) a home that is more accessible by the specified person or in which the specified person is more mobile or functional, or (B) an environment better suited to the specified person’s personal needs and care. “specified person” « personne déterminée » “specified person” in respect of an individual, at any time, means a person who (a) is the individual or is related at that time to the individual; and (b) would be entitled to a deduction under subsection 118.3(1) in computing tax payable under this Part for the person’s taxation year that includes that time if that subsection were read without reference to paragraph (c) of that subsection. Rules of application (2) For the purposes of this section, an individual is considered to have acquired a qualifying home only if the individual’s interest (or for civil law, right) in it is registered in accordance with the land registration system or other similar system applicable where it is located. First-time home buyers’ tax credit (3) In computing the tax payable under this Part by an individual for a taxation year in which a qualifying home in respect of the individual is acquired, there may be deducted C. 31 Economic Reco the amount determined by multiplying $5,000 by the appropriate percentage for the taxation year. Apportionment of credit (4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a particular qualifying home, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying home, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 5. (1) The portion of subsection 118.3(2) of the French version of the Act before paragraph (a) is replaced by the following: Personne déficiente à charge (2) L’excédent du montant déductible en application du paragraphe (1) dans le calcul de l’impôt payable en vertu de la présente partie pour une année d’imposition par une personne (sauf une personne à l’égard de laquelle l’époux ou le conjoint de fait déduit un montant pour l’année en application des articles 118 ou 118.8) qui réside au Canada à un moment donné de l’année et qui a le droit de déduire un montant pour l’année en application du paragraphe (1) sur l’impôt payable par cette personne en vertu de la présente partie pour l’année calculé avant toute déduction en application de la présente section — à l’exception des articles 118 à 118.05 et 118.7 — est déductible dans le calcul de l’impôt payable par un particulier en vertu de la présente partie pour l’année dans le cas où : (2) Paragraph 118.3(2)(d) of the English version of the Act is replaced by the following: (d) the amount of that person’s tax payable under this Part for the year computed before any deductions under this Division (other than under sections 118 to 118.05 and 118.7). (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. Reprise économique 6. (1) The description of C in subsection 118.61(1) of the Act is replaced by the following: C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.05, 118.3 and 118.7); (2) Paragraph 118.61(2)(b) of the Act is replaced by the following: (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.05, 118.3 and 118.7). (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 7. (1) Paragraph (a) of the description of C in section 118.8 of the Act is replaced by the following: (a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.05, 118.3, 118.61 and 118.7). (2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following: (ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.05, 118.3, 118.61 and 118.7). C. 31 Economic Reco (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 8. (1) The description of B in paragraph 118.81(a) of the Act is replaced by the following: B is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.05, 118.3, 118.61 and 118.7), and (2) Subsection (1) applies to the 2009 and subsequent taxation years. 9. (1) Paragraph 118.91(b) of the Act is replaced by the following: (b) the individual shall be allowed only (i) such of the deductions permitted under subsections 118(3) and (10) and 118.6(2.1) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, and (ii) such part of the deductions permitted under sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, (2) Subsection (1) applies to the 2009 and subsequent taxation years. 10. (1) Section 118.92 of the Act is replaced by the following: Ordering of credits 118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections Reprise économique 118.01, 118.02, 118.03, 118.04, 118.05, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 11. (1) Section 118.94 of the Act is replaced by the following: Tax payable by non-residents (credits restricted) 118.94 Sections 118 to 118.05 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all of the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year. (2) Subsection (1) applies to the 2009 and subsequent taxation years. 12. (1) Paragraphs 118.95(a) and (b) of the Act are replaced by the following: (a) such of the deductions as the individual is entitled to under any of subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and (b) such part of the deductions as the individual is entitled to under any of sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the taxation year, (2) Subsection (1) applies to the 2009 and subsequent taxation years. 13. (1) The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following: A is (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $925 and 25% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or C. 31 Economic Reco (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $1,680 and 25% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and B is (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $10,500, or (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $14,500. (2) The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following: C is the lesser of $462.50 and 25% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,150; and D is (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $16,667, (b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $25,700, or Reprise économique (c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7.5% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $25,700. (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years. 14. (1) Paragraph 127.531(a) of the Act is replaced by the following: (a) an amount deducted under subsection 118(1), (2) or (10) or 118.3(1) or any of sections 118.01 to 118.05 and 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or (2) Subsection (1) applies to the 2009 and subsequent taxation years. 15. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following: (A) under any of sections 118 to 118.05, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9, (2) Subsection (1) applies to the 2009 and subsequent taxation years. C.R.C., c. 945 INCOME TAX REGULATIONS 16. Section 7305 of the Income Tax Regulations is amended by striking out “and” at the end of paragraph (i) and by adding the following after paragraph (j): (k) the 2007 calendar year are (i) in Ontario, the Cities of Hamilton, Kawartha Lakes and Toronto, the Counties of Brant, Bruce, Dufferin, Elgin, Essex, Frontenac, Grey, Haldimand, Hastings, Huron, Lambton, Lennox and Addington, Middlesex, Northumberland, Norfolk, Oxford, Perth, Peterborough, Prince Edward, Simcoe and Wellington, the Municipality of Chatham-Kent, the Regional Municipalities of Durham, Halton, Niagara, Peel, Waterloo and York, the Territorial Districts C. 31 Economic Reco of Algoma, Manitoulin and Thunder Bay and the United Counties of Leeds and Grenville, (ii) in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and OkanaganSimilkameen, (iii) in Saskatchewan, the Rural Municipalities of Arlington, Auvergne, Bengough, Big Stick, Bone Creek, Carmichael, Coulee, Excel, Excelsior, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gull Lake, Happy Valley, Hart Butte, Lac Pelletier, Lake of the Rivers, Lawtonia, Lone Tree, Mankota, Maple Creek, Miry Creek, Morse, Old Post, Piapot, Pinto Creek, Pittville, Poplar Valley, Reno, Riverside, Saskatchewan Landing, Stonehenge, Swift Current, Val Marie, Waverley, Webb, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, and (iv) in Alberta, the Counties of Cardston, Cypress, Forty Mile, Lethbridge and Warner, the Municipal Districts of Pincher Creek, Ranchland, Taber and Willow Creek and the Municipality of Crowsnest Pass; (l) the 2008 calendar year are (i) in Manitoba, the Municipality of Killarney-Turtle Mountain and the Rural Municipalities of Albert, Arthur, Brenda, Cameron, Edward, Glenwood, Morton, Pipestone, Riverside, Sifton, Whitewater and Winchester, (ii) in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Peace River, (iii) in Saskatchewan, the Rural Municipalities of Argyle, Arlington, Auvergne, Baildon, Bengough, Benson, Bone Creek, Bratt’s Lake, Brokenshell, Browning, Caledonia, Cambria, Caron, Coalfields, Cymri, Elmsthorpe, Enniskillen, Estevan, Excel, Francis, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gravelbourg, Griffin, Hillsborough, Happy Valley, Hart Reprise économique Butte, Key West, Lac Pelletier, Lajord, Lake Alma, Lake Johnston, Lake of the Rivers, Laurier, Lomond, Lone Tree, Mankota, Marquis, Moose Creek, Moose Jaw, Mount Pleasant, Norton, Old Post, Pense, Pinto Creek, Poplar Valley, Redburn, Reciprocity, Rodgers, Scott, Shamrock, Sherwood, Souris Valley, Surprise Valley, Stonehenge, Storthoaks, Sutton, Tecumseh, Terrell, The Gap, Val Marie, Waverley, Wellington, Weyburn, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, and (iv) in Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie and Saddle Hills and the Municipal Districts of Fairview and Spirit River; and (m) the 2009 calendar year are (i) in British Columbia, the Census Subdivisions Cariboo D, E, G and K, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, ColumbiaShuswap C to F, Kootenay Boundary B to E, North Okanagan B and D to F, Okanagan-Similkameen A to H, Spallumcheen, Squamish-Lillooet A to C and Thompson-Nicola E (Bonaparte Plateau), I (Blue Sky Country), J (Copper Desert Country), L, M, N, O (Lower North Thompson) and P (Rivers and the Peaks), as these subdivisions were developed by Statistics Canada for the 2006 Census, (ii) in Saskatchewan, the Rural Municipalities of Antelope Park, Auvergne, Battle River, Biggar, Bone Creek, Britannia, Buffalo, Canaan, Chaplin, Chesterfield, Clinworth, Coteau, Coulee, Cut Knife, Deer Forks, Eagle Creek, Eldon, Enfield, Excelsior, Eye Hill, Fertile Valley, Glen Bain, Glen McPherson, Glenside, Grandview, Grass Lake, Grassy Creek, Gravelbourg, Happyland, Harris, Heart’s Hill, Hillsdale, Kindersley, King George, Lacadena, Lac Pelletier, Lawtonia, Lone Tree, Loreburn, Manitou Lake, Mankota, Maple Bush, Mariposa, Marriott, Milden, Milton, Miry Creek, Monet, Montrose, Morse, Mountain View, Newcombe, Oakdale, C. 31 Economic Reco Paynton, Perdue, Pinto Creek, Pittville, Pleasant Valley, Prairiedale, Progress, Reford, Riverside, Rosedale, Rosemount, Round Valley, Rudy, Saskatchewan Landing, Senlac, Shamrock, Snipe Lake, St. Andrews, Swift Current, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Waverley, Webb, Whiska Creek, Wilton, Winslow, Wise Creek and Wood River, and (iii) in Alberta, the Cities of Calgary and Edmonton, the Counties of Athabasca, Barrhead, Beaver, Birch Hills, Brazeau, Camrose, Clear Hills, Clearwater, Flagstaff, Kneehill, Lac La Biche, Lacombe, Lac Ste. Anne, Lamont, Leduc, Minburn, Mountain View, Paintearth, Parkland, Ponoka, Red Deer, Rocky View, Smoky Lake, St. Paul, Starland, Stettler, Strathcona, Sturgeon, Thorhild, Two Hills, Vermilion River, Westlock, Wetaskiwin, Wheatland and Woodlands, Improvement District No. 13, the Municipal Districts of Acadia, Big Lakes, Bonnyville, Fairview, Greenview, Lesser Slave River, Northern Lights, Peace, Provost, Smoky River, Spirit River and Wainwright, Special Areas No. 2, 3 and 4 and the Town of Drumheller. 17. (1) The Regulations are amended by adding the following after section 7305.01: 7305.02 (1) For the purposes of subsection 80.3(4) of the Act, the following regions are prescribed regions of flood or excessive moisture: (a) in respect of the 2008 calendar year, in Manitoba, (i) the rural municipalities of Alonsa, Armstrong, Bifrost, Coldwell, Dauphin, Eriksdale, Ethelbert, Fisher, Gimli, Glenella, Grahamdale, Lakeview, Lawrence, McCreary, Mossey River, Mountain South, Ochre River, Rockwood, Siglunes, St. Andrews, St. Laurent, Ste. Rose and Woodlands, and Reprise économique (ii) any reserve that is contiguous to a rural municipality referred to in subparagraph (i), or that is part of a series of contiguous reserves one of which is contiguous to a rural municipality referred to in subparagraph (i), of the bands designated as Dauphin River, Ebb and Flow, Fisher River, Kinonjeoshtegon First Nation, Lake Manitoba First Nation, Lake St. Martin, Little Saskatchewan, O-Chi-Chak-Ko-Sipi First Nation, Peguis, Pinaymootang First Nation, Sandy Bay and Skownan First Nation; and (b) in respect of the 2009 calendar year, in Manitoba, the rural municipalities of Armstrong, Bifrost, Fisher and Gimli. (2) For the purpose of this section, “band” and “reserve” have the same meaning as assigned by the Indian Act. (2) Subsection (1) is deemed to have come into force on January 1, 2008. PART 2 MISCELLANEOUS PAYMENTS Multilateral Debt Relief Maximum payment of $2,500,000,000 18. (1) For the purpose of Canada’s contribution to the Multilateral Debt Relief Initiative, or for making contributions towards multilateral debt relief, there may, in respect of fiscal years in the period that begins on April 1, 2009 and ends on March 31, 2054, be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, sums, not exceeding in the aggregate $200 million in each fiscal year, to international organizations in order to make debt payments on behalf of eligible countries. No more than a total of $2.5 billion may be paid out under this subsection. Agreements (2) The Minister of Finance may enter into arrangements or agreements with international organizations for the purpose of the payments referred to in subsection (1). C. 31 Economic Reco Payment to Nova Scotia — Offshore Petroleum Resources Payment of $174,500,000 R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3 19. Before April 1, 2010, there may be paid to Nova Scotia out of the Consolidated Revenue Fund, on the requisition of the Minister of Natural Resources, $174,500,000. BRETTON WOODS AND RELATED AGREEMENTS ACT 20. (1) Paragraph 12(h) of Article V of Schedule I to the Bretton Woods and Related Agreements Act is replaced by the following: (h) Pending uses specified under (f) above, the Fund may use a member’s currency held in the Special Disbursement Account for investment as it may determine, in accordance with rules and regulations adopted by the Fund by a seventy percent majority of the total voting power. The income of investment and interest received under (f)(ii) above shall be placed in the Special Disbursement Account. (2) Section 12 of Article V of Schedule I to the Act is amended by adding the following after paragraph (j): (k) Whenever under (c) above the Fund sells gold acquired by it after the date of the second amendment of this Agreement, an amount of the proceeds equivalent to the acquisition price of the gold shall be placed in the General Resources Account, and any excess shall be placed in the Investment Account for use pursuant to the provisions of Article XII, Section 6(f). If any gold acquired by the Fund after the date of the second amendment of this Agreement is sold after April 7, 2008 but prior to the date of entry into force of this provision, then, upon the entry into force of this provision, and notwithstanding the limit set forth in Article XII, Section 6(f)(ii), the Fund shall transfer to the Investment Account from the General Resources Account an amount equal to the proceeds of such sale less Reprise économique (i) the acquisition price of the gold sold, and (ii) any amount of such proceeds in excess of the acquisition price that may have already been transferred to the Investment Account prior to the date of entry into force of this provision. 21. (1) Paragraph 3(e) of Article XII of Schedule I to the Act is replaced by the following: (e) Each Executive Director shall appoint an Alternate with full power to act for him when he is not present, provided that the Board of Governors may adopt rules enabling an Executive Director elected by more than a specified number of members to appoint two Alternates. Such rules, if adopted, may only be modified in the context of the regular election of Executive Directors and shall require an Executive Director appointing two Alternates to designate: (i) the Alternate who shall act for the Executive Director when he is not present and both Alternates are present, and (ii) the Alternate who shall exercise the powers of the Executive Director under (f) below. When the Executive Directors appointing them are present, Alternates may participate in meetings but may not vote. (2) Paragraph 5(a) of Article XII of Schedule I to the Act is replaced by the following: (a) The total votes of each member shall be equal to the sum of its basic votes and its quotabased votes. (i) The basic votes of each member shall be the number of votes that results from the equal distribution among all the members of 5.502 percent of the aggregate sum of the total voting power of all the members, provided that there shall be no fractional basic votes. C. 31 Economic Reco (ii) The quota-based votes of each member shall be the number of votes that results from the allocation of one vote for each part of its quota equivalent to one hundred thousand special drawing rights. (3) Subparagraph 6(f)(iii) of Article XII of Schedule I to the Act is replaced by the following: (iii) The Fund may use a member’s currency held in the Investment Account for investment as it may determine, in accordance with rules and regulations adopted by the Fund by a seventy percent majority of the total voting power. The rules and regulations adopted pursuant to this provision shall be consistent with (vii), (viii), and (ix) below. (4) Subparagraph 6(f)(vi) of Article XII of Schedule I to the Act is replaced by the following: (vi) The Investment Account shall be terminated in the event of liquidation of the Fund and may be terminated, or the amount of the investment may be reduced, prior to liquidation of the Fund by a seventy percent majority of the total voting power. 1991, c. 21, s. 5 22. Section 2 of Schedule L of Schedule I to the Act is replaced by the following: 2. The number of votes allotted to the member shall not be cast in any organ of the Fund. They shall not be included in the calculation of the total voting power, except for purposes of: (a) the acceptance of a proposed amendment pertaining exclusively to the Special Drawing Rights Department and (b) the calculation of basic votes pursuant to Article XII, Section 5(a)(i). Reprise économique 2009 1991, c. 11 1994, c. 18, s. 18 BROADCASTING ACT 23. Paragraph 46.1(3)(a) of the Broadcasting Act is replaced by the following: (a) $220,000,000; or 2009, c. 2 BUDGET IMPLEMENTATION ACT, 2009 24. (1) Section 309 of the Budget Implementation Act, 2009 is replaced by the following: Maximum payment of $1,000,000,000 309. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one billion dollars for the construction, renovation, refurbishment or repair of buildings and facilities at post-secondary institutions. Coming into force (2) Subsection (1) is deemed to have come into force on March 12, 2009. R.S., c. C-8 CANADA PENSION PLAN Amendments to the Act 1991, c. 44, s. 1 25. The portion of subsection 2(2) of the Canada Pension Plan before paragraph (a) is replaced by the following: When specified age deemed to be reached (2) For the purposes of any provision of this Act in which reference is made to the reaching by a person of a specified age — other than a reference in paragraph 13(1)(c) or (e) or (1.2)(c), 17(c), 19(c) or (d) or 44(3)(a), section 70 or paragraph 72(1)(c) — the person is deemed to have reached the specified age at the beginning of the month following the month in which the person actually reached that age, and in computing 26. (1) Subsection 12(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by replacing paragraph (c) with the following: C. 31 Economic Reco (c) after they reach sixty-five years of age if (i) a retirement pension is payable to them under this Act or under a provincial pension plan, and (ii) subject to subsection (1.1), they make an election to exclude the income; or (d) after they reach seventy years of age. (2) Section 12 of the Act is amended by adding the following after subsection (1): Election (1.1) An election referred to in subparagraph (1)(c)(ii) (a) shall be made or revoked in the prescribed form and manner; (b) shall commence to have effect on the first day of the month following the month in which it is made; (c) shall cease to have effect on the first day of the month following the month in which it is revoked; (d) may be made only once in a year; (e) may not be revoked in the year in which it is made; (f) may not be made in a year in which an election is revoked; and (g) is deemed to be an election in respect of the person’s income from all pensionable employment and in respect of their selfemployed earnings. Consequence of not revoking election in prescribed form and manner (1.2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)(a) and 9(1)(a) do not, for the purposes of those paragraphs, include income from that employment. However, they may — in respect of that income — make an election under subsection 13(3) and pay the contribution required under section 10 within one year after their balance-due day. R.S., c. 30 (2nd Supp.), s. 6 27. (1) Subsections 13(1) and (2) of the Act are replaced by the following: Reprise économique 2009 Amount of contributory self-employed earnings 13. (1) The amount of the contributory selfemployed earnings of a person for a year is the amount of the self-employed earnings except that, (a) for a year in which the person reaches eighteen or seventy years of age, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year (i) after (A) they reach eighteen years of age, or (B) the disability pension ceases to be payable, or (ii) before (A) they reach seventy years of age, or (B) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability, is of 12; (b) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they make an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is deemed to be made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; (c) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they revoke an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is C. 31 Economic Reco equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is deemed to be revoked — minus the number of months after they reach seventy years of age — is of 12; (d) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the selfemployed earnings that the number of months in the year before the election is made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and (e) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the selfemployed earnings that the number of months in the year after the election is revoked — minus the number of months after they reach seventy years of age — is of 12. Election (1.1) An election referred to in paragraph (1)(b) or (c) Reprise économique (a) shall be made or revoked in the prescribed form and manner; (b) may be made only once for a year; (c) may not be revoked for the year for which it is deemed to be made; (d) may not be made for a year for which an election is revoked; (e) is deemed to be made or revoked on the first day of the month referred to in the election or revocation, as the case may be; and (f) may not be made for a year for which the person has income from pensionable employment. Condition (1.2) For the purposes of paragraph (1.1)(e), the month may not be (a) before the one in which the person reaches sixty-five years of age; (b) before the one in which the retirement pension becomes payable; or (c) after the one in which they reach seventy years of age. Excluded earnings (2) Subject to subsection (1), the contributory self-employed earnings of a person do not include earnings for (a) any period described in paragraph 12(1)(a), (b), (c) or (d); or (b) any year that (i) follows a year for which the person makes an election to exclude selfemployed earnings, and (ii) is not a year for which they revoke the election. 1997, c. 40, s. 60 (2) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following: Election to include certain earnings (3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative makes an election in the prescribed manner within one C. 31 Economic Reco year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which R.S., c. 30 (2nd Supp.), s. 9 28. Section 17 of the Act is replaced by the following: Amount of maximum pensionable earnings 17. The amount of the maximum pensionable earnings of a person for a year is the amount of the Year’s Maximum Pensionable Earnings except that, (a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year (i) after (A) they reach eighteen years of age, or (B) the disability pension ceases to be payable, or (ii) before (A) they reach seventy years of age, (B) they die, or (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability, including, if they die, the month in which they die, is of 12; (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year before the Reprise économique election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12. R.S., c. 30 (2nd Supp.), s. 11 29. Section 19 of the Act is replaced by the following: Amount of basic exemption 19. The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that, (a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year (i) after (A) they reach eighteen years of age, or (B) the disability pension ceases to be payable, or (ii) before C. 31 Economic Reco (A) they reach seventy years of age, (B) they die, or (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability, including, if they die, the month in which they die, is of 12; (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12; (d) despite paragraphs (a) to (c), for a year in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the retirement pension becomes payable — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12 unless the aggregate of the contributory salary and wages and the contributory self-employed Reprise économique earnings exceeds the amount, adjusted by that proportion, of the Year’s Maximum Pensionable Earnings, in which case, the amount of the basic exemption is increased by the lesser of (i) the product obtained by multiplying (A) the Year’s Basic Exemption by (B) one-twelfth of the amount by which the number of months in the year for which a retirement pension is payable exceeds the greater of (I) the number of months for which an election referred to in subparagraph 12(1)(c)(ii) or paragraph 13(1)(b) has effect, and (II) the number of months after they reach seventy years of age or die, whichever is earlier, and (ii) the amount by which the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the product obtained by multiplying (A) the Year’s Maximum Pensionable Earnings by (B) one-twelfth of the amount by which the number of months in the year before the retirement pension becomes payable exceeds the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability. C. 31 Economic Reco 30. (1) Subsection 38(1) of the Act is replaced by the following: Refund of overpayment 38. (1) If an overpayment has been made by an employee on account of the employee’s contribution under this Act for a year, the Minister shall, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year, refund to the employee the amount of the overpayment. 2004, c. 22, s. 18(1) (2) Subsection 38(3) of the Act is replaced by the following: Refund of excess — employee (3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contribution for the year required of the employee under subsection 8(1), the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year. (3) Paragraph 38(4)(b) of the Act is replaced by the following: (b) shall make such a refund after mailing the notice of assessment, if application is made in writing by the contributor not later than four years — or, in the case of a contributor who is notified after the coming into force of this paragraph of a decision under subsection Reprise économique 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year. 1992, c. 1, s. 23 31. Paragraph 42(2)(b) of the Act is replaced by the following: (b) a person is deemed to have become or to have ceased to be disabled at the time that is determined in the prescribed manner to be the time when the person became or ceased to be, as the case may be, disabled, but in no case shall a person — including a contributor referred to in subparagraph 44(1)(b)(ii) — be deemed to have become disabled earlier than fifteen months before the time of the making of any application in respect of which the determination is made. 32. (1) Subsection 44(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and’’ at the end of paragraph (f) and by adding the following after paragraph (f): (g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan. (2) Section 44 of the Act is amended by adding the following after subsection (2): Proration — late applications for disability pensions (2.1) For the purposes of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12. R.S., c. 30 (2nd Supp.), s. 15; R.S., c. 18 (3rd Supp.), s. 29; 1991, c. 44, s. 5 33. Subsections 46(3) to (6) of the Act are replaced by the following: C. 31 Upward or downward adjustment factor — up to 2010 (3) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 1986 and before January 1, 2011 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed by the Minister, on the advice of the Chief Actuary of the Office of the Superintendent of Financial Institutions, to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years. Upward or downward adjustment factor — after 2010 (3.1) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 2010 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed under subsection (7). Exception if division of unadjusted pensionable earnings increases retirement pension (4) Subject to subsection (5), if, as a result of a division of unadjusted pensionable earnings under section 55 or 55.1, a retirement pension that was payable increases, the adjustment factor applicable after the increase to the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, instead of the adjustment factor referred to in subsection (3) or (3.1), as the case may be, shall be determined by the formula Economic Reco [(F1 × P1) + (F2 × E)] / P2 where F1 is an amount equal to the adjustment factor referred to in subsection (3) or (3.1), as the case may be, at the time the retirement pension first became payable; P1 is the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, before the division; Reprise économique 2009 F2 is the lesser of (a) an amount equal to what the adjustment factor referred to in subsection (3) or (3.1), as the case may be, would have been if the retirement pension had commenced in the month in which the increase commences to be payable, and (b) 1; E is equal to the excess of P2 over P1; and P2 is the basic monthly amount of the retirement pension immediately following the division. Exception if survivor’s pension reduced (5) Unless otherwise provided by an agreement under section 80, if a person receives a retirement pension under this Act and a survivor’s pension under this Act and the survivor’s pension is at any time reduced from its full amount under subsection 58(2), any downward adjustment factor resulting from the application of subsection (3), (3.1) or (4) at that time shall not be applied to the whole of the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, but only to the amount remaining when that basic monthly amount is reduced by the product obtained by multiplying (a) the amount by which the survivor’s pension has been reduced by (b) the ratio that the Pension Index for the year in which the retirement pension first commenced to be payable bears to the Pension Index for the year in which the survivor’s pension is reduced. Exception if division after age 65 precedes commencement of retirement pension (6) If, after a person has reached 65 years of age but before the person commences to receive a retirement pension, a division of unadjusted pensionable earnings takes place under section 55 or 55.1 in respect of that person, the upward adjustment factor referred to in subsection (3) or (3.1), as the case may be, to be applied to any increase in the retirement pension that is attributable to the division shall be based on the time interval between the taking place of the division and the commencement of the retire34 C. 31 Economic Reco ment pension, and shall not take into account the time interval between the month in which the person reaches 65 years of age and the month in which the division takes place. Regulations (7) For the purposes of subsection (3.1), the Governor in Council may make regulations fixing one or more adjustment factors or the methods of calculating them — including factors or methods that may apply on specified dates — to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years. Condition (8) The Governor in Council may only make regulations under subsection (7) or repeal them on the recommendation of the Minister of Finance and only if the lieutenant governor in council of each of at least two thirds of the included provinces, as defined in subsection 114(1), having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the making or repeal of the regulations. Amendment (9) Regulations made under subsection (7) may only be amended in accordance with subsection 113.1(14). 34. (1) Paragraph 48(4)(a) of the Act is replaced by the following: (a) from the number of months remaining, a number of months equal to the lesser of (i) subject to subsection (5), if the retirement pension or other benefit becomes payable commencing with a month before January 2012, fifteen per cent of the number remaining — and sixteen per cent commencing with a month after December 2011 and before January 2014 and seventeen per cent commencing with a month after December 2013 — and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and Reprise économique (ii) the number of months by which the number remaining exceeds one hundred and twenty; and (2) Section 48 of the Act is amended by adding the following after subsection (4): Exception — same percentage (5) The percentage used in a calculation of the amount of average monthly pensionable earnings under subsection (4) is to be used in the calculation of other benefits based on that amount. 35. Section 53 of the Act is renumbered as subsection 53(1) and is amended by adding the following: Year in which retirement pension commences (2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act, (a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12; and (b) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12. 36. The Act is amended by adding the following after section 59: C. 31 Economic Reco Post-retirement Benefit Amount of postretirement benefit 59.1 (1) Subject to subsections (2) and (3), a post-retirement benefit payable to a contributor is a basic monthly amount determined by the formula [(A × F/B) × C × D × E] / 12 where A is the amount determined under subsection 53(1) for the year prior to the year in which the post-retirement benefit commences to be payable; B is the Year’s Maximum Pensionable Earnings for the year prior to the year in which the post-retirement benefit commences to be payable; C is 0.00625; D is the Maximum Pensionable Earnings Average for the year in which the postretirement benefit commences to be payable; E is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the postretirement benefit commences to be payable; and F is the amount determined by the formula G/H where G is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and H is the aggregate of the earnings referred to in subparagraph 53(1)(b)(i) and those referred to in subparagraph 53(1)(b)(ii). Unadjusted pensionable earnings for the year in which the retirement pension becomes payable (2) For the purpose of the calculation under subsection (1), if the unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in subsection (1) is the greater of (a) zero, and Reprise économique (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53(1). Adjustment factor for contributors who are 70 years of age or older (3) For the purpose of the calculation under subsection (1), if the contributor is seventy years of age or older, the amount determined for E in subsection (1) is the adjustment factor for a contributor who is seventy years of age. 37. Section 60 of the Act is amended by adding the following after subsection (1): Application for post-retirement benefit deemed to be made (1.1) An application for a post-retirement benefit under subsection (1) is deemed to be made on January 1 of the year following the year of the unadjusted pensionable earnings referred to in section 76.1 if (a) the person is a beneficiary of a retirement pension on that day; and (b) the Minister has the information necessary to determine whether a post-retirement benefit is payable to them. 38. Section 67 of the Act is amended by adding the following after subsection (3): Commencement of retirement pension — on or after January 1, 2012 (3.1) For a retirement pension that commences to be payable on or after January 1, 2012 and if the applicant is not an estate, subject to section 62, if payment of the retirement pension is approved, the pension is payable for each month commencing with the latest of (a) the month in which the applicant reached sixty years of age, (b) the month following the month in which the application was received if they were under sixty-five years of age when they applied, C. 31 Economic Reco (c) the eleventh month preceding the month in which the application was received if they have reached sixty-five years of age when they applied, but in no case earlier than the month in which they reached sixty-five years of age, and (d) the month chosen by the applicant in their application. R.S., c. 30 (2nd Supp.), s. 37 39. Section 68.1 of the Act is repealed. 40. The Act is amended by adding the following after section 76: Post-retirement Benefit Commencement of benefit 76.1 Subject to section 62, a post-retirement benefit is payable to a beneficiary of a retirement pension for each month commencing with January 1 of the year following the year of a contributor’s earnings if (a) a contribution has been made in respect of those earnings; (b) those earnings exceed the contributor’s basic exemption; and (c) those earnings are for a period that (i) begins after 2011 and after the contributory period ends under subparagraph 49(b)(iii), and (ii) ends with the month preceding the month in which the contributor reaches seventy years of age. Duration of payment 76.2 Subject to this Act, a post-retirement benefit shall continue to be paid during the lifetime of the beneficiary and shall cease with the payment for the month in which the beneficiary dies. 41. (1) Section 113.1 of the Act is amended by adding the following after subsection (1): Review of adjustment factors (2) When the Chief Actuary of the Office of the Superintendent of Financial Institutions specifies adjustment factors in his or her report according to subsection 115(1.11), the Minister of Finance and ministers of the Crown from the included provinces shall, as part of their review, Reprise économique also review the adjustment factors fixed under subsection 46(7) and may make recommendations as to whether they should be changed. 1997, c. 40, s. 94(3) (2) Subsection 113.1(3) of the French version of the Act is replaced by the following: Conclusion de l’examen (3) Dans la mesure du possible, l’examen doit s’effectuer dans un délai qui permette au ministre des Finances de faire des recommandations au gouverneur en conseil avant la fin de la deuxième année de la période de trois ans. R.S., c. 30 (2nd Supp.), s. 56 (3) Subsection 113.1(13) of the Act is replaced by the following: Recommendation — adjustment factors (13) On the completion of a review required by subsection (2), the Minister of Finance may recommend to the Governor in Council that the Governor in Council amend the regulations made under subsection 46(7) to give effect to any recommendations made under subsection (2). If the recommendations are that no changes be made to the adjustment factors, the Minister of Finance shall cause those recommendations to be published in the Canada Gazette. Changes to adjustment factors — regulations (14) The Governor in Council may, on the recommendation of the Minister of Finance made under subsection (13), amend the regulations to change one or more adjustment factors or the methods of calculating them. Provincial consent (15) The regulations may only be amended if the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment. Definition of “included province” (16) In this section, “included province” has the same meaning as in subsection 114(1). 42. Section 115 of the Act is amended by adding the following after subsection (1.1): Adjustment factors (1.11) In the first report prepared after 2015 and in every third report that follows, the Chief Actuary shall specify, in reference to the adjustment factors fixed under subsection C. 31 Economic Reco 46(7), the factors as calculated according to a methodology that he or she considers appropriate; the Chief Actuary may also, if he or she considers it necessary, specify the factors in any report prepared under subsection (1) after 2015. Coming into Force Subsection 114(2) of the Canada Pension Plan does not apply 43. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 25 to 42. Order in council (2) Sections 25 to 42 come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day or days to be fixed by order of the Governor in Council. 1997, c. 40 CANADA PENSION PLAN INVESTMENT BOARD ACT Amendments to the Act 2003, c. 5, s. 15 44. Section 37 of the Canada Pension Plan Investment Board Act is repealed. 45. (1) Section 53 of the Act is amended by adding the following after subsection (2): Approval of proposed regulation (2.1) For the purpose of subsection (2), the approval of a proposed regulation published in the Canada Gazette is deemed to be the approval of the regulation if the regulation is the same or substantially the same as the proposed regulation. (2) Section 53 of the Act is amended by adding the following after subsection (3): Publication of coming into force date (4) If the approvals necessary to give force and effect to a regulation are given only after the regulation is made, the Minister shall, as soon as feasible, cause to be published in the Canada Gazette the date that the regulation came into force. Coming into Force April 1, 1998 46. Subsection 45(1) is deemed to have come into force on April 1, 1998. 2009 1988, c. 28 Reprise économique CANADA-NOVA SCOTIA OFFSHORE PETROLEUM RESOURCES ACCORD IMPLEMENTATION ACT 47. (1) The definition “former Act” in subsection 246(1) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act is repealed. (2) The definitions “deemed profit”, “fiscal incentive”, “offshore revenue threshold” and “threshold rate of return” in subsection 246(1) of the English version of the Act are repealed. 48. (1) Subsection 247(1) of the Act is replaced by the following: Adjustment payment 247. (1) Subject to this section, the Federal Minister may, on behalf of Her Majesty in right of Canada, pay an amount to Her Majesty in right of the Province equal to seventy-five per cent of the profit realized on or after April 1, 2010, and determined in the manner prescribed, in respect of a project. (2) Subsection 247(2) of the English version of the Act is replaced by the following: Restriction (2) No payment shall be made pursuant to subsection (1) in respect of a project unless the Provincial Minister demonstrates to the satisfaction of the Federal Minister that the rate of return in respect of that project that would have been obtained on behalf of Her Majesty in right of the Province, calculated in the manner prescribed, is equal to or greater than an annual rate of return on invested capital that is equal to the lesser of 20% and the aggregate of 7% and the average annual cost to the Province of borrowing money. (3) Subsections 247(3) and (4) of the Act are replaced by the following: Exception (2.1) Subsection (2) does not apply in respect of the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project. C. 31 Reduction for fiscal incentives (3) The aggregate amount of payments made pursuant to subsection (1) in respect of any project shall be reduced by the aggregate amount, determined in the manner prescribed, of all fiscal incentives and any other benefits that are Economic Reco (a) established by or pursuant to an Act of Parliament; (b) prescribed for the purposes of this Part or approved in the manner prescribed; and (c) received in respect of the project. Exception (3.1) Subsection (3) does not apply in respect of fiscal incentives and other benefits generally prevailing in Canada. Time of payments (4) Subject to the regulations, a payment made pursuant to subsection (1) shall be made annually, not later than six months after the end of each fiscal year. (4) Subsection 247(6) of the Act is repealed. 49. The heading before section 248 of the French version of the Act is replaced by the following: RÈGLEMENTS 50. Section 248 of the Act is replaced by the following: Regulations 248. Subject to section 6, the Governor in Council may make regulations, on the recommendation of the Minister, (a) respecting, for the purpose of section 247, the information that must be provided to the Federal Minister in order for a profit to be determined in respect of a project; (b) respecting the making of payments pursuant to subsection 247(1) if the Minister determines that the Minister has underpaid any amount payable under that subsection; (c) respecting the recovery of overpayments made pursuant to subsection 247(1); and (d) prescribing anything that is, by this Part, to be prescribed. 2009 1997, c. 36 Reprise économique CUSTOMS TARIFF Amendments to the Act 2009, c. 2, s. 122 51. Paragraph 133(c) of the Customs Tariff is replaced by the following: (c) for the purposes of tariff item No. 9801.10.10, 9801.10.20, 9801.10.30, 9801.20.00, 9808.00.00 or 9810.00.00, prescribing conditions under which goods may be imported; 52. The Description of Goods of tariff item No. 9801.10.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “—Conveyances,” with a reference to “—Conveyances, not including trailers and semitrailers of subheading 8716.31 or 8716.39,”. 53. The Description of Goods of tariff item No. 9801.10.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing (a) the reference to “30 days” with a reference to “365 days”; and (b) the reference to “The containers provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and (c) the container has not entered Canada for the purpose of an in-transit movement through Canada to a point outside of Canada” with a reference to “The containers provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) the transportation does not occur outside the territorial limits of Canada; and (b) the container has not entered Canada for the purpose of an intransit movement through Canada to a point outside of Canada”. C. 31 Economic Reco 54. The Description of Goods of tariff item No. 9897.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.20” with a reference to “9801.10.20, 9801.10.30”. 55. Chapter 98 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provision set out in the schedule to this Act. 56. The Description of Goods of tariff item No. 9993.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.20” with a reference to “9801.10.20, 9801.10.30”. Coordinating Amendments Bill C-23 57. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 2nd session of the 40th Parliament and entitled the Canada– Colombia Free Trade Agreement Implementation Act (referred to in this section as the “other Act”), receives royal assent. (2) If subsection 48(1) of the other Act comes into force before section 55 of this Act, tariff item No. 9801.10.30 in the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT: Free”, a reference to “COLT: Free”; and (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT: Free (A)”, a reference to “COLT: Free (A)”. (3) If subsection 48(1) of the other Act comes into force on the same day as section 55 of this Act, then that section 55 is deemed to have come into force before that subsection 48(1). 2009 R.S., c. F-11 Reprise économique FINANCIAL ADMINISTRATION ACT Amendments to the Act 58. The Financial Administration Act is amended by adding the following after section 65: Quarterly financial reports Contents 65.1 (1) Every department shall cause to be prepared, in the form and manner provided for by the Treasury Board, a quarterly financial report for each of the first three fiscal quarters of each fiscal year. (2) The report shall contain (a) a financial statement for the fiscal quarter and the period from the start of the fiscal year to the end of that fiscal quarter; (b) comparative financial information for the preceding fiscal year; and (c) a statement outlining the results, risks and significant changes in relation to operations, personnel and programs. Report to be made public (3) The appropriate Minister shall cause the report to be made public within 60 days after the end of the fiscal quarter to which the report relates. Regulations (4) The Treasury Board may, by regulation, exempt a department from the requirement set out in subsection (1) or provide that any of the content referred to in subsection (2) be excluded from its report. 2006, c. 9, s. 262(1) 59. Subsection 85(1) of the Act is replaced by the following: Exemption for Bank of Canada 85. (1) Divisions I to IV, except for sections 131.1 and 154.01, do not apply to the Bank of Canada. 60. The Act is amended by adding the following after section 131: Quarterly financial reports 131.1 (1) Each parent Crown corporation shall, in respect of itself and its wholly-owned subsidiaries, if any, cause to be prepared, in the form and manner provided for by the Treasury Board, a quarterly financial report for each of the first three fiscal quarters of each fiscal year. 46 Contents C. 31 Economic Reco (2) The report shall contain (a) a financial statement for the fiscal quarter and the period from the start of the fiscal year to the end of that fiscal quarter; (b) comparative financial information for the preceding fiscal year; and (c) a statement outlining the results, risks and significant changes in relation to operations, personnel and programs. Report to be made public (3) The parent Crown corporation shall cause the report to be made public within 60 days after the end of the fiscal quarter to which the report relates. Regulations (4) The Treasury Board may, by regulation, exempt a parent Crown corporation from the requirement set out in subsection (1) or provide that any of the content referred to in subsection (2) be excluded from its report. Coming into Force April 1, 2011 61. Sections 58 to 60 come into force on April 1, 2011. R.S., c. P-36 PUBLIC SERVICE SUPERANNUATION ACT 62. Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order: PPP Canada Inc. PPP Canada Inc. AMENDMENTS RELATED TO THE BANKRUPTCY AND INSOLVENCY ACT R.S., c. B-3; 1992, c. 27, s. 2 2005, c. 47, s. 44; 2007, c. 36, s. 26 Bankruptcy and Insolvency Act 63. Paragraph 65.11(10)(a) of the Bankruptcy and Insolvency Act is replaced by the following: (a) an eligible financial contract; Reprise économique 2009 2005, c. 47, s. 68; 2007, c. 29, ss. 97 and 98 64. Sections 84.1 and 84.2 of the Act are replaced by the following: Assignment of agreements 84.1 (1) On application by a trustee and on notice to every party to an agreement, a court may make an order assigning the rights and obligations of a bankrupt under the agreement to any person who is specified by the court and agrees to the assignment. Individuals (2) In the case of an individual, (a) they may not make an application under subsection (1) unless they are carrying on a business; and (b) only rights and obligations in relation to the business may be assigned. Exceptions (3) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the date of the bankruptcy; (b) an eligible financial contract; or (c) a collective agreement. Factors to be considered (4) In deciding whether to make the order, the court is to consider, among other things, (a) whether the person to whom the rights and obligations are to be assigned is able to perform the obligations; and (b) whether it is appropriate to assign the rights and obligations to that person. Restriction (5) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the person’s bankruptcy, insolvency or failure to perform a nonmonetary obligation — will be remedied on or before the day fixed by the court. Copy of order (6) The applicant is to send a copy of the order to every party to the agreement. Certain rights limited 84.2 (1) No person may terminate or amend — or claim an accelerated payment or forfeiture of the term under — any agreement, including a C. 31 Economic Reco security agreement, with a bankrupt individual by reason only of the individual’s bankruptcy or insolvency. Lease (2) If the agreement referred to in subsection (1) is a lease, the lessor may not terminate or amend, or claim an accelerated payment or forfeiture of the term under, the lease by reason only of the bankruptcy or insolvency or of the fact that the bankrupt has not paid rent in respect of any period before the time of the bankruptcy. Public utilities (3) No public utility may discontinue service to a bankrupt individual by reason only of the individual’s bankruptcy or insolvency or of the fact that the bankrupt individual has not paid for services rendered or material provided before the time of the bankruptcy. Certain acts not prevented (4) Nothing in this section is to be construed as (a) prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the time of the bankruptcy; or (b) requiring the further advance of money or credit. Provisions of section override agreement (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to this section is of no force or effect. Powers of court (6) On application by a party to an agreement or by a public utility, the court may declare that this section does not apply — or applies only to the extent declared by the court — if the applicant satisfies the court that the operation of this section would likely cause the applicant significant financial hardship. Eligible financial contracts (7) Subsection (1) does not apply (a) in respect of an eligible financial contract; or (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an Reprise économique insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association. Permitted actions (8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract: (a) the netting or setting off or compensation of obligations between the individual bankrupt and the other parties to the eligible financial contract; and (b) any dealing with financial collateral including (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. Net termination values (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the individual bankrupt with a claim provable in bankruptcy in respect of those net termination values. 65. The Act is amended by adding the following after section 87: PRIORITY OF FINANCIAL COLLATERAL Priority 88. In relation to a bankruptcy or proposal, no order may be made under this Act if the order would have the effect of subordinating financial collateral. 66. Sections 84.1 and 84.2 of the Bankruptcy and Insolvency Act, as enacted by section 64, and section 88 of that Act, as enacted by section 65, apply to proceedings commenced under that Act on or after the day on which this Act receives royal assent. 50 2007, c. 36 C. 31 Economic Reco Chapter 36 of the Statutes of Canada, 2007 67. Section 25 of chapter 36 of the Statutes of Canada, 2007 is repealed. Reprise économique (mesure SCHED (Sectio Tariff Item Description of Goods 9801.10.30 ---Trailers and semi-trailers of subheading 8716.31 or 8716.39, on condition that they: (a) are registered and licensed in a foreign countr and operated in Canada with a vehicle licence issue by the appropriate provincial licensing authority; (b) leave from and return to the foreign country in the normal course of operation; (c) are exported within 30 days of the date of their importation or for an additional period not exceeding 24 months where a customs officer is satisfied that the exportation of the trailers or semi-trailers is delayed because: (i) of adverse weather conditions; (ii) the trailers or semi-trailers are being equipped, reconditioned, reconstructed, refurbished or repaired; (iii) the trailers or semi-trailers have a major equipment breakdown; (iv) the trailers or semi-trailers are detained under an order of a Canadian court, or under an Act of Parliament or the legislature of a provinc or any regulation made thereunder; or (v) the delivery of the goods to be loaded on o in the trailer or semi-trailer is delayed. The trailers and semi-trailers provided for in this tari item may engage in the transportation of goods from one point in Canada to another point in Canada wher (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and (c) the trailer or semi-trailer has not entered Canad for the purpose of an in-transit movement throug Canada to a point outside of Canada Economic Recovery ( ANN (articl Numéro tarifaire 9801.10.30 Dénomination des marchandises ---Remorques et semi-remorques des sous-positions 8716.31 ou 8716.39, à la condition qu’elles : a) soient enregistrées et immatriculées dans un pay étranger et soient exploitées au Canada en vertu du permis approprié délivré par l’autorité provinciale compétente; b) quittent le pays étranger et y retournent dans le cours normal de l’exploitation; c) soient exportées dans les 30 jours suivant la da de leurs importations ou pour une période additionnelle n’excédant pas 24 mois, si un agent des douanes est satisfait que l’exportation des remorques ou semi-remorques est retardée pour l’une des raisons suivantes : i) des conditions atmosphériques défavorables; ii) l’équipement, la remise à neuf, la reconstruction, la rénovation ou la réparation de remorques ou semi-remorques; iii) une panne de matériel importante des remorques ou semi-remorques; iv) la retenue des remorques ou semi-remorque en vertu d’une ordonnance d’un tribunal canadien ou d’une loi fédérale ou provinciale o d’un de leurs règlements d’application; ou v) un retard dans la livraison des marchandise devant être chargées dans ou sur les remorques ou semi-remorques. Les remorques et semi-remorques visées par le prése numéro tarifaire peuvent être utilisées pour le transpo de marchandises d’un lieu à un autre au Canada si le conditions suivantes sont réunies : a) le transport est accessoire au commerce international des marchandises; b) le transport ne se fait pas hors des limites territoriales du Canada; et c) la remorque ou semi-remorque n’entre pas au Canada à la seule fin de se rendre, via le Canada, un lieu situé à l’extérieur du Canada Published under authority of the Speaker of the House of Commons Available from : Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 30 An Act to amend the Employment Insurance Act and to increase benefits ASSENTED TO 5th NOVEMBER, 2009 BILL C-50 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Employment Insurance Act and to increase benefits”. SUMMARY This enactment amends the Employment Insurance Act until September 11, 2010 to increase the maximum number of weeks for which benefits may be paid to certain claimants. It also increases the maximum number of weeks for which benefits may be paid to certain claimants not in Canada. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO AMEND THE EMPLOYMENT INSURANCE ACT AND TO INCREASE BENEFITS EMPLOYMENT INSURANCE ACT 1–2. Amendments CLAIMANTS NOT IN CANADA 3. Subsection 55(7) of regulations 4. Subsection 55(7) of regulations 5. Subsection 55(7) of regulations 6. Subsection 55(7) of regulations 7. Subsection 55(10) of regulations 8. Coming into force COMING INTO FORCE 57-58 ELIZABETH II —————— CHAPTER 30 An Act to amend the Employment Insurance Act and to increase benefits [Assented to 5th November, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1996, c. 23 EMPLOYMENT INSURANCE ACT 2002, c. 9, s. 12(1) 1. (1) Subsection 10(2) of the Employment Insurance Act is replaced by the following: Length of benefit period (2) Except as otherwise provided in subsections (10) to (15) and section 24, the length of a benefit period is 52 weeks, unless (a) the number of weeks of benefits set out in the table in Schedule I that applies in respect of a claimant is increased as a result of the application of any of subsections 12(2.1) to (2.4), in which case (i) in respect of a benefit period established for the claimant on or after January 4, 2009 that has not ended on the day on which this subsection is deemed to have come into force, the length of the claimant’s benefit period is increased by the number of weeks by which the number of weeks of benefits set out in the table in Schedule I that applies in respect of the claimant is increased as a result of the application of any of subsections 12(2.1) to (2.4), and (ii) in respect of a benefit period established for the claimant during the period that begins on the day on which this subsection is deemed to have come into C. 30 Employmen force and ends on September 11, 2010, if the maximum number of weeks during which benefits may be paid to the claimant under subsection 12(2) is equal to or greater than 51 weeks as a result of the application of any of subsections 12(2.1) to (2.4), the length of the claimant’s benefit period is that maximum number of weeks increased by two weeks; or (b) the number of weeks of benefits set out in Schedule 10 to the Budget Implementation Act, 2009 that applies in respect of a claimant is increased as a result of the application of any of sections 3 to 6 of An Act to amend the Employment Insurance Act and to increase benefits, introduced in the second session of the fortieth Parliament as Bill C-50, in which case (i) in respect of a benefit period established for the claimant on or after January 4, 2009 that has not ended on the day on which this subsection is deemed to have come into force, the length of the claimant’s benefit period is increased by the number of weeks by which the number of weeks of benefits set out in that Schedule 10 that applies in respect of the claimant is increased as a result of the application of any of those sections 3 to 6, and (ii) in respect of a benefit period established for the claimant during the period that begins on the day on which this subsection is deemed to have come into force and ends on September 11, 2010, if the maximum number of weeks during which benefits may be paid to the claimant under that Schedule 10 is equal to or greater than 51 weeks as a result of the application of any of those sections 3 to 6, the length of the claimant’s benefit period is that maximum number of weeks increased by two weeks. (2) Subsection 10(2) of the Act, as enacted by subsection (1), is replaced by the following: Length of benefit period (2) Except as otherwise provided in subsections (10) to (15) and section 24, the length of a benefit period is 52 weeks. Assuranc 2. (1) Subsection 12(2) of the Act is replaced by the following: General maximum (2) Subject to subsections (2.1) to (2.4), the maximum number of weeks for which benefits may be paid in a benefit period because of a reason other than those mentioned in subsection (3) shall be determined in accordance with the table in Schedule I by reference to the regional rate of unemployment that applies to the claimant and the number of hours of insurable employment of the claimant in their qualifying period. Higher number of weeks — certain claimants (2.1) If a claimant was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on January 4, 2009 and ends on June 5, 2010, the number of weeks of benefits set out in the table in Schedule I that applies in respect of the claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant but for this subsection increased by (a) 5 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 7 of the 10 years before the beginning of the claimant’s benefit period; (b) 8 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 8 of the 11 years before the beginning of the claimant’s benefit period; (c) 11 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 9 of the 12 years before the beginning of the claimant’s benefit period; (d) 14 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 10 of the 13 years before the beginning of the claimant’s benefit period; (e) 17 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or C. 30 Employmen (f) 20 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. Higher number of weeks — certain claimants (2.2) If a claimant was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on June 6, 2010 and ends on July 10, 2010, the number of weeks of benefits set out in the table in Schedule I that applies in respect of the claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant but for this subsection increased by (a) 3 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 8 of the 11 years before the beginning of the claimant’s benefit period; (b) 6 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 9 of the 12 years before the beginning of the claimant’s benefit period; (c) 9 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 10 of the 13 years before the beginning of the claimant’s benefit period; (d) 12 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (e) 15 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. Higher number of weeks — certain claimants (2.3) If a claimant was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on July 11, 2010 and ends on August 7, 2010, the number of weeks of benefits set out in the table in Schedule I that applies in respect of the claimant Assuranc is deemed to be the number of weeks that would otherwise apply in respect of the claimant but for this subsection increased by (a) 1 week, if the claimant contributed at least 30% of the maximum annual employee’s premium in 9 of the 12 years before the beginning of the claimant’s benefit period; (b) 4 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 10 of the 13 years before the beginning of the claimant’s benefit period; (c) 7 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (d) 10 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. Higher number of weeks — certain claimants (2.4) If a claimant was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on August 8, 2010 and ends on September 11, 2010, the number of weeks of benefits set out in the table in Schedule I that applies in respect of the claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant but for this subsection increased by (a) 2 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (b) 5 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. (2) Subsections 12(2) to (2.4) of the Act, as enacted by subsection (1), are replaced by the following: General maximum (2) The maximum number of weeks for which benefits may be paid in a benefit period because of a reason other than those mentioned C. 30 Employmen in subsection (3) shall be determined in accordance with the table in Schedule I by reference to the regional rate of unemployment that applies to the claimant and the number of hours of insurable employment of the claimant in their qualifying period. 2000, c. 14, s. 3(3) (3) Subsection 12(6) of the Act is replaced by the following: Combined weeks of benefits (6) In a claimant’s benefit period, the claimant may, subject to the applicable maximums, combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsections (2) and (3), but the total number of weeks of benefits shall not exceed 50 or, if the maximum number of weeks during which benefits may be paid to a claimant under subsection (2) is greater than 50 weeks as a result of the application of any of subsections (2.1) to (2.4), the number that corresponds to that maximum number of weeks. (4) Subsection 12(6) of the Act, as enacted by subsection (3), is replaced by the following: Combined weeks of benefits (6) In a claimant’s benefit period, the claimant may, subject to the applicable maximums, combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsections (2) and (3), but the total number of weeks of benefits shall not exceed 50. CLAIMANTS NOT IN CANADA Subsection 55(7) of regulations 3. Despite section 225 of the Budget Implementation Act, 2009, if a claimant is a claimant referred to in subsection 55(7) of the Employment Insurance Regulations who was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on January 4, 2009 and ends on June 5, 2010, the number of weeks of benefits in Schedule 10 to that Act that apply in respect of that claimant is deemed to be the number Assuranc of weeks that would otherwise apply in respect of the claimant but for this section increased by (a) 5 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 7 of the 10 years before the beginning of the claimant’s benefit period; (b) 8 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 8 of the 11 years before the beginning of the claimant’s benefit period; (c) 11 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 9 of the 12 years before the beginning of the claimant’s benefit period; (d) 14 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 10 of the 13 years before the beginning of the claimant’s benefit period; (e) 17 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (f) 20 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. Subsection 55(7) of regulations 4. Despite section 225 of the Budget Implementation Act, 2009, if a claimant is a claimant referred to in subsection 55(7) of the Employment Insurance Regulations who was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on June 6, 2010 and ends on July 10, 2010, the number of weeks of benefits in Schedule 10 to that Act that apply in respect of that claimant is deemed to be the number C. 30 Employmen of weeks that would otherwise apply in respect of the claimant but for this section increased by (a) 3 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 8 of the 11 years before the beginning of the claimant’s benefit period; (b) 6 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 9 of the 12 years before the beginning of the claimant’s benefit period; (c) 9 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 10 of the 13 years before the beginning of the claimant’s benefit period; (d) 12 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (e) 15 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. Subsection 55(7) of regulations 5. Despite section 225 of the Budget Implementation Act, 2009, if a claimant is a claimant referred to in subsection 55(7) of the Employment Insurance Regulations who was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on July 11, 2010 and ends on August 7, 2010, the number of weeks of benefits in Schedule 10 to that Act that apply in respect of that claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant but for this section increased by Assuranc (a) 1 week, if the claimant contributed at least 30% of the maximum annual employee’s premium in 9 of the 12 years before the beginning of the claimant’s benefit period; (b) 4 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 10 of the 13 years before the beginning of the claimant’s benefit period; (c) 7 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (d) 10 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. Subsection 55(7) of regulations 6. Despite section 225 of the Budget Implementation Act, 2009, if a claimant is a claimant referred to in subsection 55(7) of the Employment Insurance Regulations who was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of the claimant’s benefit period and that benefit period was established during the period that begins on August 8, 2010 and ends on September 11, 2010, the number of weeks of benefits in Schedule 10 to that Act that apply in respect of that claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant but for this section increased by (a) 2 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in 11 of the 14 years before the beginning of the claimant’s benefit period; or (b) 5 weeks, if the claimant contributed at least 30% of the maximum annual employee’s premium in at least 12 of the 15 years before the beginning of the claimant’s benefit period. C. 30 Subsection 55(10) of regulations 7. With respect to a claimant to whom any of sections 3 to 6 applies whose benefit period has not been extended under any of subsections 10(13) to (13.3) of the Employment Insurance Act, subsection 55(10) of the Employment Insurance Regulations is deemed to read as follows: Employmen (10) In a claimant’s benefit period, a claimant who is not in Canada or a claimant referred to in subsection (8), subject to the applicable maximums set out in paragraphs (7)(a) and (b), may combine the weeks of benefits to which the claimant is entitled, but the total number of weeks of benefits shall not exceed 50 or, if the maximum number of weeks during which benefits may be paid to a claimant under section 225 of the Budget Implementation Act, 2009 is equal to or greater than 50 weeks as a result of the application of any provision of any Act of Parliament, other than the Employment Insurance Act, the number that corresponds to that maximum number of weeks. COMING INTO FORCE Retroactive coming into force of certain provisions 8. (1) Subsections 1(1) and 2(1) and (3) and sections 3 to 7 are deemed to have come into force on the second Sunday before the day on which this Act receives royal assent. Certain provisions in force on September 12, 2010 (2) Subsections 1(2) and 2(2) and (4) come into force on September 12, 2010. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 24 An Act to promote safety and security with respect to human pathogens and toxins ASSENTED TO 23rd JUNE, 2009 BILL C-11 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to promote safety and security with respect to human pathogens and toxins”. SUMMARY This enactment creates measures to promote safety and security with respect to human pathogens and toxins and all activities associated with them. It establishes a comprehensive legislative regime that extends beyond the present importation regime. It requires every person conducting activities involving human pathogens or toxins to take all reasonable measures to protect the health and safety of the public. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO PROMOTE SAFETY AND SECURITY WITH RESPECT TO HUMAN PATHOGENS AND TOXINS Preamble SHORT TITLE 1. Human Pathogens and Toxins Act PURPOSE OF THE ACT 2. Purpose INTERPRETATION AND APPLICATION 3. Definitions 4. Excluded HER MAJESTY 5. Act binding on Her Majesty OBLIGATION 6. Reasonable precautions 7. Controlled activities PROHIBITIONS 8. Human pathogens and toxins — Schedule 5 SCHEDULES 1 TO 4 9. Addition of items — toxins SCHEDULE 5 10. Addition of items CONSEQUENCES OF ADDING TO SCHEDULES 11. Prohibited possession — Schedules 1 to 4 OBLIGATION TO INFORM MINISTER 12. Inadvertent release 13. Disease 14. Missing human pathogen or toxin i 15. Person conducting activities 16. Use of information 17. False or misleading information LICENCES 18. Issuance 19. Variation of licence conditions 20. Suspension or revocation of licence 21. Notice of decision 22. Serious and imminent danger 23. Review of decision 24. Implementation of measures 25. Referral of decision to committee 26. Factors to be considered 27. Protection of information 28. Committee’s report 29. Final decision 30. Duty to inform ACCESS TO FACILITY TO WHICH LICENCE APPLIES 31. List of authorized persons 32. Obligation to inform Minister SECURITY CLEARANCES 33. Access to facilities 34. Issuance, suspension and revocation 35. Reconsideration of decision BIOLOGICAL SAFETY OFFICERS 36. Designation 37. Non-application EXEMPTIONS INFORMATION 38. Provision of information to Minister 39. Disclosure by Minister 40. Designation of inspectors 41. Entry by inspectors 42. Warrant to enter dwelling-house ADMINISTRATION AND ENFORCEMENT ii 43. Serious and imminent danger 44. Storage and removal 45. Return of seized thing 46. Application for restoration 47. Forfeiture 48. Preservation 49. Costs 50. Designation of analyst 51. Analysis and examination 52. Admissibility OFFENCES AND PUNISHMENT 53. General 54. Breach of duty 55. Wanton or reckless breach of duty 56. Contravention of subsection 7(1) or 18(7) 57. Contravention of section 8 — knowingly 58. Intentional release 59. Defence 60. Place of trial 61. Continuing offences 62. Time limit 63. Directors, officers, etc. 64. Offences by employees, agents or mandataries DEBTS 65. Debts due to Her Majesty REGULATORY POWERS 66. Regulations 66.1 Proposed regulations to be laid before Parliament 66.2 Exceptions 67. Interim orders 68. Externally produced documents 69. Defence TRANSITIONAL PROVISIONS 70. Activities already commenced 71. Possession of human pathogens or toxins iv COMING INTO FORCE 72. Order in council SCHEDULE 1 TOXINS SCHEDULE 2 RISK GROUP 2 HUMAN PATHOGENS SCHEDULE 3 RISK GROUP 3 HUMAN PATHOGENS SCHEDULE 4 RISK GROUP 4 HUMAN PATHOGENS SCHEDULE 5 PROHIBITED HUMAN PATHOGENS AND TOXINS 57-58 ELIZABETH II —————— CHAPTER 24 An Act to promote safety and security with respect to human pathogens and toxins [Assented to 23rd June, 2009] Preamble Whereas the Parliament of Canada recognizes the objective of protecting the health and safety of the public; Whereas the Parliament of Canada recognizes that human pathogens and toxins pose varying levels of risk to the health and safety of the public; Whereas the Parliament of Canada recognizes that a lack of full scientific certainty regarding the risks posed by certain human pathogens and toxins is not to be used as a reason to postpone measures that protect the health and safety of the public; And whereas the Parliament of Canada recognizes that human pathogens and toxins evolve and can be altered and that new human pathogens and toxins appear continually, therefore creating unique challenges in meeting the objective of protecting the health and safety of the public; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Human Pathogens and Toxins Act. C. 24 Human Pathog PURPOSE OF THE ACT Purpose 2. The purpose of this Act is to establish a safety and security regime to protect the health and safety of the public against the risks posed by human pathogens and toxins. INTERPRETATION AND APPLICATION Definitions “controlled activity” « activité réglementée » “conveyance” « véhicule » “disease” « maladie » “human pathogen” « agent pathogène humain » 3. (1) The following definitions apply in this Act. “controlled activity” means an activity referred to in subsection 7(1). “conveyance” means a vessel, aircraft, train, motor vehicle, trailer or other means of transportation, including a cargo container. “disease” includes intoxication. “human pathogen” means a micro-organism, nucleic acid or protein that (a) is listed in any of Schedules 2 to 4 or in Part 2 of Schedule 5; or (b) is not listed in any of the Schedules but falls into Risk Group 2, Risk Group 3 or Risk Group 4. “licence” « permis » “Minister” « ministre » “person” « personne » “personal information” « renseignements personnels » “possession” « possession » “produce” « production » “licence” means a licence issued under section 18. “Minister” means the Minister of Health. “person” means an individual or an organization as defined in section 2 of the Criminal Code. “personal information” has the same meaning as in section 3 of the Privacy Act. “possession” has the same meaning as in subsection 4(3) of the Criminal Code. “produce”, in respect of a human pathogen or toxin, means to create it by any method or process, including (a) by manufacturing, cultivating, developing, reproducing or synthesizing it; or Agents pathogènes (b) by converting or refining a substance, micro-organism, nucleic acid or protein, or by using any other means of altering its physical or chemical properties. “release” « rejet » “release” means any discharge, anywhere, and includes leaking, spraying, depositing, dumping or vaporizing. “Risk Group 2” « groupe de risque 2 » “Risk Group 2” means a category of human pathogens that pose a moderate risk to the health of individuals and a low risk to public health and includes the human pathogens listed in Schedule 2. They are able to cause serious disease in a human but are unlikely to do so. Effective treatment and preventive measures are available and the risk of spread of disease caused by those pathogens is low. “Risk Group 3” « groupe de risque 3 » “Risk Group 3” means a category of human pathogens that pose a high risk to the health of individuals and a low risk to public health and includes the human pathogens listed in Schedule 3. They are likely to cause serious disease in a human. Effective treatment and preventive measures are usually available and the risk of spread of disease caused by those pathogens is low. “Risk Group 4” « groupe de risque 4 » “Risk Group 4” means a category of human pathogens that pose a high risk to the health of individuals and a high risk to public health and includes the human pathogens listed in Schedule 4. They are likely to cause serious disease in a human. Effective treatment and preventive measures are not usually available and the risk of spread of disease caused by those pathogens is high. “security clearance” « habilitation de sécurité » “toxin” « toxine » “security clearance” means a security clearance issued under section 34. “toxin” means a substance that is listed in Schedule 1 or in Part 1 of Schedule 5. C. 24 Included (2) For the purposes of this Act, a human pathogen or toxin includes Human Pathog (a) a substance that contains a human pathogen or toxin; and (b) any synthetic form of the human pathogen or toxin. Excluded 4. This Act does not apply to (a) a human pathogen or toxin that is in an environment in which it naturally occurs if it has not been cultivated or intentionally collected or extracted, including a human pathogen or toxin that (i) is in or on a human suffering from a disease caused by that human pathogen or toxin, (ii) has been expelled by a human suffering from a disease caused by that human pathogen or toxin, or (iii) is in or on a cadaver, a body part or other human remains; (b) a drug in dosage form whose sale is permitted or otherwise authorized under the Food and Drugs Act or a human pathogen or toxin contained in such a drug; or (c) any activity that is a controlled activity within the meaning of the Assisted Human Reproduction Act. HER MAJESTY Act binding on Her Majesty 5. This Act is binding on Her Majesty in right of Canada or a province. OBLIGATION Reasonable precautions 6. Every person who knowingly conducts any activity referred to in section 7 involving a human pathogen or toxin shall take all reasonable precautions to protect the health and safety of the public against the risks posed by that activity. Agents pathogènes PROHIBITIONS Controlled activities 7. (1) No person shall knowingly conduct any of the following activities unless a licence has been issued by the Minister that authorizes the activity: (a) possessing, handling or using a human pathogen or toxin; (b) producing a human pathogen or toxin; (c) storing a human pathogen or toxin; (d) permitting any person access to a human pathogen or toxin; (e) transferring a human pathogen or toxin; (f) importing or exporting a human pathogen or toxin; (g) releasing or otherwise abandoning a human pathogen or toxin; or (h) disposing of a human pathogen or toxin. Other Acts (2) Subsection (1) does not apply to (a) any activity to which the Transportation of Dangerous Goods Act, 1992 applies; or (b) the export of human pathogens or toxins authorized under the Export and Import Permits Act. Human pathogens and toxins — Schedule 5 8. Despite section 7, no person shall conduct any activity referred to in that section in relation to a human pathogen or toxin listed in Schedule 5. SCHEDULES 1 TO 4 Addition of items — toxins 9. (1) If the Minister is of the opinion that a substance is produced by, or derived from, a micro-organism and is able to cause disease in a human, the Minister may, by regulation, add it to Schedule 1. Addition of items — human pathogens (2) If the Minister is of the opinion that a micro-organism, nucleic acid or protein is able to cause disease in a human, the Minister may, by regulation, add it C. 24 Human Pathog (a) to Schedule 2 if the Minister is of the opinion that it falls into Risk Group 2; (b) to Schedule 3 if the Minister is of the opinion that it falls into Risk Group 3; or (c) to Schedule 4 if the Minister is of the opinion that it falls into Risk Group 4. Deletion of items (3) The Minister may, by regulation, delete (a) a substance from Schedule 1 if the Minister is of the opinion that it is not produced by, or derived from, a microorganism or is not able to cause disease in a human; or (b) a micro-organism, nucleic acid or protein from any of Schedules 2 to 4 if the Minister is of the opinion that it does not fall into the risk group to which that Schedule relates. Advisory Committee (4) The Minister shall consult an advisory committee established under subsection 14(1) of the Public Health Agency of Canada Act before making any regulation under subsection (1), (2) or (3). Publication (5) The advisory committee shall make available to the public the advice given to the Minister. SCHEDULE 5 Addition of items 10. (1) The Governor in Council may, by regulation, on the Minister’s recommendation, (a) add a substance to Part 1 of Schedule 5 if the Governor in Council is of the opinion that (i) it is produced by, or derived from, a micro-organism and is able to cause disease in a human, and (ii) all activities referred to in section 7 should be prohibited in relation to it; (b) add a micro-organism, nucleic acid or protein to Part 2 of Schedule 5 if the Governor in Council is of the opinion that (i) it is able to cause disease in a human, and (ii) all activities referred to in section 7 should be prohibited in relation to it; or Agents pathogènes (c) delete a substance, micro-organism, nucleic acid or protein from any of Schedules 1 to 4 if the Governor in Council adds it to Schedule 5. Deletion of items (2) The Governor in Council may, by regulation, on the Minister’s recommendation, delete a substance, micro-organism, nucleic acid or protein from Schedule 5 if the Governor in Council is of the opinion that it is in the public interest to allow one or more of the activities referred to in section 7 to be authorized in relation to that substance, micro-organism, nucleic acid or protein. Advisory Committee (3) The Minister shall consult an advisory committee established under subsection 14(1) of the Public Health Agency of Canada Act before making any recommendation under subsection (1) or (2). Publication (4) The advisory committee shall make available to the public the advice given to the Minister. CONSEQUENCES OF ADDING TO SCHEDULES Prohibited possession — Schedules 1 to 4 11. (1) Within 30 days after the date of publication of a regulation made under subsection 9(1) or (2), every person who, as a result of the regulation, no longer has lawful possession of a human pathogen or toxin shall (a) dispose of it in accordance with the regulations, if any; (b) transfer it to a facility where controlled activities in relation to it are authorized; or (c) obtain from the Minister a licence, or a variation of the conditions of their existing licence, authorizing possession of it. C. 24 Prohibited possession — Schedule 5 (2) Within 14 days after the date of publication of a regulation made under subsection 10(1), every person who, as a result of the regulation, no longer has lawful possession of a human pathogen or toxin shall dispose of it in accordance with the regulations, if any. No contravention (3) No person contravenes subsection 7(1) or section 8 by reason only that they possess a human pathogen or toxin in the circumstances described in subsection (1) or (2) if they transfer or dispose of it in accordance with subsection (1) or (2). Human Pathog OBLIGATION TO INFORM MINISTER Inadvertent release 12. (1) If a licence holder has reason to believe that a human pathogen or toxin has been released inadvertently from the facility in the course of an activity that is otherwise authorized by the licence, the licence holder shall, without delay, inform the Minister of the release and provide the Minister with the information referred to in subsection (3) that is under the licence holder’s control. Inadvertent production (2) If a person is in possession of a human pathogen or toxin in contravention of subsection 7(1) or section 8 as a result of the inadvertent production of that human pathogen or toxin in the course of an activity that is otherwise lawful, the person shall (a) without delay, inform the Minister of the inadvertent production and provide the Minister with the information referred to in subsection (3) that is under the person’s control; and (b) dispose of the inadvertently produced human pathogen or toxin in accordance with the regulations, if any, or, if it is not listed in Schedule 5, transfer it to a facility where controlled activities in relation to that human pathogen or toxin are authorized. Information (3) The information that is to be provided under subsections (1) and (2) is the following: (a) any information that supports the conclusion that a human pathogen or toxin has been released or produced; Agents pathogènes (b) the name of the human pathogen or toxin released or produced; (c) the quantity released or produced; (d) the place and time of the release or production; and (e) any other information relating to the release or production that the Minister may require. No contravention (4) No person contravenes subsection 7(1) or section 8 by reason only that they possess a human pathogen or toxin in the circumstances described in subsection (2) if they transfer or dispose of it in accordance with that subsection. Disease 13. If a licence holder has reason to believe that an incident involving a human pathogen or toxin that is in their possession has, or may have, caused disease in an individual, the licence holder shall, without delay, inform the Minister of the incident and provide the Minister with the following information that is under the licence holder’s control: (a) a description of the incident; (b) the name of the human pathogen or toxin; and (c) any other information relating to the incident that the Minister may require. Missing human pathogen or toxin 14. If a licence holder has reason to believe that a human pathogen or toxin that was in their possession has been stolen or is otherwise missing, the licence holder shall, without delay, inform the Minister and provide the Minister with any information relating to the incident that is under their control and that the Minister may require. The licence holder shall also take reasonable measures to locate the missing human pathogen or toxin. Person conducting activities 15. If a person conducting activities under the authority of a licence has reason to believe that any of the incidents described in subsection 12(1) or (2) or section 13 or 14 has occurred, the person shall, without delay, inform the licence holder. C. 24 Use of information 16. No information provided under sections 12 to 15 by a licence holder or a person conducting activities under the authority of a licence may be used or received against that person in any criminal proceedings that are subsequently instituted against them, other than with respect to a contravention of section 17. False or misleading information 17. No person shall knowingly communicate or cause to be communicated to the Minister false or misleading information in relation to a matter under this Act or the regulations. Human Pathog LICENCES Issuance 18. (1) The Minister may, in accordance with the regulations, if any, issue a licence that authorizes any controlled activity in any facility if the Minister is of the opinion that the conduct of the controlled activity in the facility poses no undue risk to the health or safety of the public. Licence application (2) An application for a licence must be filed with the Minister and made in the form and manner specified by the Minister. Refusal to issue licence (3) If the Minister refuses to issue a licence, the Minister shall notify the applicant in writing of the reasons for the refusal. Conditions (4) A licence authorizes the controlled activities that are specified in it and is subject to any conditions that the Minister considers appropriate to protect the health and safety of the public. Other conditions (5) A licence must also set out (a) the licence holder’s name; (b) the period during which the licence is in effect; (c) a description of the facility in which controlled activities are authorized under it; (d) a description of each part of the facility that is subject to section 33; and (e) the toxins, human pathogens, or the risk groups of the human pathogens, in respect of which controlled activities are authorized under it. Agents pathogènes Obligation of licence holder (6) The licence holder shall inform all persons conducting the controlled activities authorized by the licence of its conditions. Compliance with licence conditions (7) A licence holder and all persons conducting the controlled activities authorized by the licence shall comply with the licence conditions. Statutory Instruments Act (8) A licence is not a statutory instrument within the meaning of the Statutory Instruments Act. Variation of licence conditions 19. (1) The Minister may, on the Minister’s own initiative or on the application of a licence holder, vary the licence conditions if the Minister is of the opinion that the variation poses no undue risk to the health or safety of the public. Representations (2) The Minister may vary the licence conditions on the Minister’s own initiative only if the Minister first gives the licence holder a reasonable opportunity to make representations. Measures specified by Minister (3) If the Minister varies the licence conditions, the Minister may specify in writing any measures to be taken to protect the health and safety of the public that the variation in conditions may necessitate. Suspension or revocation of licence 20. (1) The Minister may suspend or revoke a licence if the Minister is of the opinion that a controlled activity authorized by the licence is conducted in a manner that is contrary to this Act or the regulations or poses an undue risk to the health or safety of the public. Opportunity to make representations (2) The Minister may suspend or revoke a licence only if the Minister first gives the licence holder a reasonable opportunity to make representations. Measures specified by Minister (3) If the Minister suspends or revokes a licence, the Minister may specify in writing any measures to be taken to protect the health and safety of the public that the suspension or revocation may necessitate. Disposal (4) Subject to the measures specified by the Minister, the licence holder shall, within five days after the day on which the Minister’s decision to suspend or revoke the licence takes effect, C. 24 Human Pathog (a) dispose of the human pathogen or toxin in accordance with the regulations, if any; or (b) transfer the human pathogen or toxin to a facility where controlled activities in relation to the human pathogen or toxin are authorized. Notice of decision 21. (1) The Minister shall notify a licence holder by registered mail of any decision made under section 19 or 20. Reasons for decision (2) The Minister shall give reasons for the decision in the notice and shall advise the licence holder of their right to request a review of the decision. Effective date (3) Subject to subsection 23(2), the Minister’s decision takes effect 31 days after the day on which the notice is received. Serious and imminent danger 22. (1) If the Minister is of the opinion that there is a serious and imminent danger to the health or safety of the public, the Minister shall notify the licence holder orally of the decision to suspend or revoke their licence. Effective date (2) The decision takes effect at the time that the licence holder is notified of it and the licence holder is advised that it is effective immediately. Opportunity to make representations (3) The Minister is not required to give the licence holder an opportunity to make representations in respect of the decision. Notice (4) The Minister shall send the notice referred to in subsection 21(1) within five days after the day on which the licence holder is notified orally of the decision. Review of decision 23. (1) Within 30 days after the day on which the notice is received, the person whose licence is affected by the decision may request in writing, stating their reasons, that the Minister refer the decision to a committee for review. Suspension (2) A request for a review suspends the application of the decision, unless the Minister notified the licence holder orally of the decision under the circumstances described in subsection 22(1). Agents pathogènes Measures specified by Minister (3) When a request for a review is made, the Minister may specify in writing any measures to be taken to protect the health and safety of the public pending the Minister’s final decision. Implementation of measures 24. (1) A person whose licence is affected by the decision shall ensure that any measures specified by the Minister under subsection 19(3), 20(3) or 23(3) are implemented. No contravention (2) No person contravenes subsection 7(1) or section 8 by reason only that they have implemented those measures. Statutory Instruments Act (3) The measures are not statutory instruments within the meaning of the Statutory Instruments Act. Referral of decision to committee 25. (1) On receipt of a request for a review, the Minister shall, within a reasonable time, refer the decision to which the request relates to a committee that is to consist of three individuals who have expertise in the area of human pathogens or toxins. Designation of committee members (2) One of the members of the committee is to be designated by the Minister and another by the person who requests the review. Chairperson (3) The two members designated under subsection (2) shall designate a third member of the committee, who shall be its chairperson. If they are unable to designate the third member within a reasonable time, the Minister shall make the designation. Remuneration (4) The members of the committee may be paid for the carrying out of their functions any remuneration that the Governor in Council may determine. Travel, living and other expenses (5) The members of the committee are entitled to be paid, in accordance with Treasury Board directives, reasonable travel, living and other expenses incurred in the carrying out of their functions. Factors to be considered 26. A committee to which a decision is referred shall consider (a) the reasons for the decision; (b) the reasons stated by the person who requested the review; and C. 24 Human Pathog (c) any representations, information or material submitted to it by the Minister or the person who requested the review. Protection of information 27. The committee members shall not disclose any information or material submitted to them as part of the review to any person other than the Minister unless the disclosure is authorized by the person to whom the information or material relates or is otherwise authorized or required by law. Committee’s report 28. Within 60 days after the referral of a decision to a committee, or within any longer period that the Minister may allow, the committee shall report its findings and recommendations to the Minister and to the person who requested the review. Final decision 29. (1) Within 60 days after receiving a committee’s report, the Minister shall, taking into account its findings and recommendations, (a) reconsider the decision in respect of which the report was made; and (b) send the Minister’s final decision by registered mail to the person who requested the review. Effect (2) The Minister’s final decision takes effect on the day after the day on which it is received. Duty to inform 30. (1) A person whose licence is suspended or revoked shall, without delay, inform all persons conducting controlled activities authorized by it of its suspension or revocation. Return of revoked licence (2) A person whose licence is revoked shall return it by registered mail to the Minister as soon as feasible after the Minister’s decision takes effect or, if the decision is reviewed, as soon as feasible after the Minister’s final decision takes effect. ACCESS TO FACILITY TO WHICH LICENCE APPLIES List of authorized persons 31. A licence holder shall establish and maintain a list of all persons authorized by the licence holder to access the facility to which the licence applies, including persons holding a security clearance for that facility and visitors. The licence holder shall provide the Minister with that list if requested to do so. 2009 Obligation to inform Minister Agents pathogènes 32. If a licence holder decides to prohibit the holder of a security clearance from having access to the facility to which the licence applies, the licence holder shall, without delay, inform the Minister in writing of their decision. SECURITY CLEARANCES Access to facilities 33. No person shall enter the part of a facility in which controlled activities are authorized in relation to human pathogens that fall into Risk Group 3 or Risk Group 4 and are prescribed by regulation or toxins prescribed by regulation unless (a) they hold a security clearance for that part of the facility; or (b) they are, in accordance with the regulations, if any, accompanied and supervised by a person who holds a security clearance for that part of the facility. Issuance, suspension and revocation 34. (1) The Minister may, in accordance with the regulations, issue a security clearance to any individual or suspend or revoke a security clearance. The Minister shall notify the individual concerned in writing of the decision. Agreement (2) The Minister may, by way of an agreement, authorize any federal department or agency to issue, suspend or revoke security clearances and section 35 applies with any necessary modifications. Reconsideration of decision 35. (1) If the Minister refuses to issue a security clearance or suspends or revokes a security clearance, the individual concerned may, within 30 days after the day on which the notice is received, request in writing that the Minister reconsider the decision. Request for reconsideration (2) The request for reconsideration must set out (a) the decision that is the subject of the request; (b) the reasons for the request, including any new information that the individual concerned wishes the Minister to consider; and (c) any information prescribed by regulation. C. 24 Opportunity to make representations (3) On receipt of a request made in accordance with this section, the Minister shall give the individual concerned a reasonable opportunity to make representations. Confirmation or variation of decision (4) Within a reasonable time after representations have been made or an opportunity to do so has been given, the Minister shall reconsider the decision, in accordance with the regulations, if any, and confirm or vary it. Notice (5) The Minister shall notify the individual concerned in writing of the decision made following the reconsideration. Human Pathog BIOLOGICAL SAFETY OFFICERS Designation 36. (1) An applicant shall, before a licence may be issued, designate an individual as a biological safety officer for the requested licence. The individual designated may also be the applicant. Obligations not limited (2) A designation does not have the effect of limiting the obligations of the licence holder or any other person under this Act. Qualifications (3) An individual may be designated as a biological safety officer only if the individual has the qualifications set out in the regulations. Effect of designation (4) A designation takes effect on the day on which the designated individual provides the Minister with their written consent to the designation or the day on which the individual begins to act as a biological safety officer, whichever is earlier. Powers and functions (5) The biological safety officer may exercise the powers and shall carry out the functions set out in the regulations. Replacement (6) If an individual ceases to act as a biological safety officer, the licence holder shall, without delay, designate another individual and inform the Minister of the new designation. EXEMPTIONS Non-application 37. Subsection 7(1) and section 8 do not apply to (a) an inspector or analyst carrying out their functions under this Act; Agents pathogènes (b) a peace officer carrying out their functions under any federal or provincial Act or a person providing assistance to that peace officer; (c) any person who, in the course of their employment, outside a facility in which controlled activities are authorized, collects a sample for the purpose of laboratory analysis or diagnostic testing; or (d) in exigent circumstances, any person carrying out their functions under any federal or provincial Act. INFORMATION Provision of information to Minister 38. (1) The Minister may order an applicant, a licence holder or a biological safety officer to provide the Minister, in accordance with any conditions that the Minister may specify, with any information that is under that person’s control, including personal information and confidential business information, and that the Minister believes, on reasonable grounds, is relevant to the administration of this Act or the regulations. Information (2) The information that is to be provided may include information regarding (a) the human pathogens or toxins in the possession of the applicant, licence holder or biological safety officer; (b) the persons having access to the human pathogens or toxins referred to in paragraph (a); (c) the facility in which the controlled activities are authorized or in respect of which an application for a licence has been submitted; and (d) the controlled activities that are authorized by a licence or in respect of which an application for a licence has been submitted. C. 24 Obligation to provide information (3) An applicant, a licence holder or a biological safety officer shall provide the Minister with the information, in accordance with any conditions that the Minister may specify. Excluded information (4) Despite subsections (1) to (3), the Minister of National Defence may refuse to disclose any information the disclosure of which could reasonably be expected to be injurious to the defence or security of Canada or of a state allied or associated with Canada. Disclosure by Minister 39. (1) The Minister may, without the consent of the person to whom the information relates, disclose personal information and confidential business information obtained under this Act to a person from whom the Minister seeks advice, to a department or agency of the government of Canada or a province, to a foreign government or to an international organization if Human Pathog (a) the disclosure is necessary for the administration or enforcement of this Act or the regulations; (b) the Minister has reasonable grounds to believe that the disclosure is necessary to address a serious and imminent danger to the health or safety of the public; or (c) the disclosure is necessary to enable Canada to fulfil its international obligations. Adequate protection (2) Except in the circumstances described in paragraph (1)(b), before disclosing the information to any person other than Her Majesty in right of Canada or an agent of Her Majesty, the Minister must obtain the person’s written agreement that they will maintain the confidentiality of the information unless they are required by law to disclose it. ADMINISTRATION AND ENFORCEMENT Designation of inspectors 40. (1) The Minister may designate any individual, or class of individuals, as an inspector for the administration and enforcement of this Act and the regulations and may Agents pathogènes restrict in any manner that the Minister considers appropriate the powers that an inspector may exercise under this Act. Certificate to be produced (2) The Minister shall provide an inspector with a certificate of designation and, on entering any place or conveyance under subsection 41(1), the inspector shall produce the certificate to the person in charge of that place or conveyance if requested to do so. Entry by inspectors 41. (1) Subject to section 42, an inspector may, for the purpose of verifying compliance or preventing non-compliance with this Act or the regulations, enter at any reasonable time any place or conveyance in which the inspector believes on reasonable grounds that an activity to which this Act or the regulations apply is conducted or that there is any material, equipment or document relevant to the administration of this Act or the regulations. Inspector’s powers (2) An inspector who enters a place or conveyance may, for the purpose referred to in subsection (1), (a) examine the place — including any building — or conveyance and any material or equipment found there; (b) require any person in the place or conveyance to produce, in the manner and form requested by the inspector, any material or equipment found there; (c) seize and detain for any time that may be necessary any material, equipment or document found there, or any conveyance; (d) open and examine any receptacle or package found there; (e) take, or require any person in the place or conveyance to produce, free of charge, a sample of any material found there; (f) direct the owner or the person having possession, care or control of any material, equipment or document found in the place or conveyance — or of the conveyance — to move it or, for any time that may be necessary, not to move it or to restrict its movement; C. 24 Human Pathog (g) conduct, or require any person in the place or conveyance to conduct, any test or analysis or take any measurement of any material or equipment found there; (h) take photographs or make recordings or sketches; (i) examine and make copies, in whole or in part, of any book, document or other record found there; (j) require any person in the place or conveyance to produce any book, document or other record found there for examination or copying; (k) use or cause to be used any computer system or other device found there to examine information that is contained in or available to the computer system or device; (l) reproduce any information in the form of a printout or other intelligible output for examination or copying; and (m) use or cause to be used any copying equipment. Conveyance (3) For the purpose of entering the conveyance, the inspector may order the owner or person having possession, care or control of the conveyance to stop it or move it to a place where the inspector can enter it. Excluded information (4) Despite subsection (2), the Minister of National Defence may refuse to disclose any information the disclosure of which could reasonably be expected to be injurious to the defence or security of Canada or of a state allied or associated with Canada. Assistance to inspector (5) The owner or person in charge of a place or conveyance that is entered by an inspector who is carrying out their functions and every person in that place or conveyance shall give the inspector all reasonable assistance and provide them with any information that they may reasonably require. Obstruction and false statements (6) No person shall knowingly obstruct or hinder, or make a false or misleading statement either orally or in writing to, an inspector who is carrying out their functions. Agents pathogènes Private property (7) An inspector who is carrying out their functions and any person accompanying the inspector may enter on and pass through or over private property, and they are not liable for doing so. Warrant to enter dwelling-house 42. (1) An inspector may not enter a dwelling-house without the occupant’s consent, except under the authority of a warrant issued under subsection (2). Authority to issue warrant (2) On ex parte application, a justice of the peace may issue a warrant authorizing the inspector named in it to enter a dwelling-house, subject to any conditions that may be specified in the warrant, if the justice of the peace is satisfied by information on oath that (a) the dwelling-house is a place referred to in subsection 41(1); (b) entry to the dwelling-house is necessary for a purpose referred to in subsection 41(1); and (c) entry to the dwelling-house has been refused or there are reasonable grounds for believing that entry will be refused. Use of force (3) In executing the warrant, the inspector named in it may not use force unless they are accompanied by a peace officer and the use of force is specifically authorized in the warrant. Telewarrant (4) If an inspector believes that it would not be practicable to appear personally to make an application for the warrant, a warrant may be issued by telephone or other means of telecommunication on application submitted by any one of those means. Section 487.1 of the Criminal Code applies for that purpose, with any necessary modifications. Serious and imminent danger 43. (1) If, in the course of an inspection, an inspector has reasonable grounds to believe that a controlled activity is conducted in a manner that poses a serious and imminent danger to the health or safety of the public, the inspector may order the licence holder, or any other person in the place or conveyance, to carry out any measure that the inspector considers necessary to reduce or eliminate that danger. C. 24 Obligation (2) A licence holder or any other person who is ordered by an inspector to carry out such a measure shall comply with the order and, in doing so, does not contravene subsection 7(1) or section 8. Withdrawal of order (3) An inspector who orders a measure to be carried out shall, if appropriate, withdraw the order if they are satisfied that the controlled activity is no longer conducted in a manner that poses a serious and imminent danger to the health or safety of the public. Review by Minister (4) An inspector shall, without delay, refer any decision to make or withdraw an order to the Minister for review. After the review, the Minister may amend, replace or rescind the order if the Minister is of the opinion that it is necessary to do so. Application of order not suspended (5) The referral of a decision to the Minister for review does not suspend the application of the decision. Refusal to comply (6) If a licence holder or any other person who is ordered to carry out a measure fails to comply with the order, the inspector may carry out the measure or require another person to do so. Informing of action (7) After the measure is carried out, the inspector shall, as soon as feasible, advise the person who failed to comply with the order that the measure was carried out. Compliance not required (8) No person is required to carry out a measure ordered by an inspector if doing so would expose them to a danger, as defined in subsection 122(1) of the Canada Labour Code. Cost (9) A licence holder, or if no licence has been issued in respect of the controlled activity, the person who is responsible for the conduct of the controlled activity, shall bear the cost of carrying out any measure ordered by an inspector. Storage and removal 44. (1) An inspector may order that a thing seized under this Act be kept or stored in the place where it was seized or be removed to any other appropriate place. Human Pathog Agents pathogènes Interference (2) Except with the inspector’s authority, no person shall remove, alter or interfere in any way with the seized thing. Return of seized thing 45. An inspector who seizes a thing under this Act shall release it if they are satisfied that the provisions of this Act and the regulations that apply to that thing have been complied with. Application for restoration 46. (1) On reasonable notice in writing to the Minister, the owner of a thing seized under this Act, or the person in possession of it at the time of its seizure, may, within 60 days after the day of its seizure, apply to a provincial court judge within whose jurisdiction the seizure was made for an order of restoration. Order of restoration (2) The provincial court judge may order that the seized thing be restored immediately to the applicant if, on hearing the application, the judge is satisfied that (a) the applicant is entitled to possession of it; (b) it does not pose a serious and imminent danger to the health or safety of the public; and (c) it will not be required as evidence in a prosecution for an offence that is subsequently instituted under this Act. Order of later restoration (3) If, on hearing an application, the provincial court judge is satisfied that the applicant is entitled to possession of the seized thing and that it does not pose a serious and imminent danger to the health or safety of the public but is not satisfied with respect to paragraph (2)(c), the judge may order that the thing be restored to the applicant (a) on the expiry of 180 days after the day of its seizure if no prosecution for an offence under this Act has been instituted before that day; or (b) on the final conclusion of proceedings under this Act. C. 24 Exception (4) The provincial court judge may not make an order for the restoration of the seized thing if it has been forfeited by consent under subsection 47(2). Forfeiture 47. (1) If no application is made for the restoration of a thing seized under this Act within 60 days after the day of its seizure, or an application has been made but no order of restoration is made after the application has been heard, the seized thing is forfeited to Her Majesty in right of Canada. Forfeiture with consent (2) If an inspector has seized a thing and its owner, or the person in possession of it at the time of its seizure, consents in writing to its forfeiture, the thing is forfeited to Her Majesty in right of Canada. Disposal (3) Subject to section 48, the Minister may dispose of a seized thing that is forfeited to Her Majesty in right of Canada in any manner that the Minister directs. Preservation 48. The Minister shall make reasonable efforts to preserve any thing seized under this Act pending its disposition. Costs 49. The owner of a thing seized under this Act, or the person in possession of it at the time of its seizure, shall bear any associated seizure, storage, transfer, preservation or disposition costs. Designation of analyst 50. The Minister may designate any individual, or class of individuals, as an analyst for the administration and enforcement of this Act and the regulations. Analysis and examination 51. (1) An inspector may submit to an analyst, for analysis or examination, any thing seized or taken by the inspector. Certificate or report of analyst (2) An analyst who has made an analysis or examination may issue a certificate or report setting out the results of the analysis or examination. Admissibility 52. (1) An analyst’s certificate or report is admissible in evidence in any prosecution for an offence under this Act if it Human Pathog (a) appears to be signed by the analyst; Agents pathogènes (b) states that a thing has been analyzed or examined by the analyst; and (c) states the results of that analysis or examination. In the absence of evidence to the contrary, the certificate or report is proof of the statements contained in it without proof of the signature or official character of the person appearing to have signed it. Attendance of analyst required (2) The party against whom a certificate or report is produced may, with leave of the court, require the analyst’s attendance for the purpose of cross-examination. Notice of intention to produce certificate or report (3) No certificate or report may be admitted in evidence unless, before the trial, the party intending to produce it has given reasonable notice of that intention, together with a copy of the certificate or report, to the party against whom it is intended to be produced. OFFENCES AND PUNISHMENT General 53. Subject to sections 54 to 58, every person who contravenes this Act or the regulations is guilty of an offence and liable, on summary conviction, (a) in the case of a contravention with respect to a human pathogen that falls into Risk Group 2, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a subsequent offence, to a fine of not more than $250,000 or to imprisonment for a term of not more than three months, or to both; and (b) in all other cases, (i) for a first offence, to a fine of not more than $250,000 or to imprisonment for a term of not more than three months, or to both, and (ii) for a subsequent offence, to a fine of not more than $500,000 or to imprisonment for a term of not more than six months, or to both. C. 24 Breach of duty 54. Every person who contravenes section 6 and, as a result, creates a risk to the health or safety of the public is guilty of an indictable offence and liable to imprisonment for a term of not more than two years. Wanton or reckless breach of duty 55. Every person who contravenes section 6 and who shows wanton or reckless disregard for the health or safety of other persons and, as a result, creates a risk to the health or safety of the public is guilty of an indictable offence and liable to imprisonment for a term of not more than five years. Contravention of subsection 7(1) or 18(7) 56. Every person who contravenes subsection 7(1) or 18(7) with respect to a human pathogen that falls into Risk Group 3 or Risk Group 4 or a toxin is guilty of an offence and liable Human Pathog (a) on conviction on indictment, for a first offence, to a fine of not more than $500,000 or to imprisonment for a term of not more than six months, or to both, and, for a subsequent offence, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than two years, or to both; or (b) on summary conviction, for a first offence, to a fine of not more than $250,000 or to imprisonment for a term of not more than three months, or to both, and, for a subsequent offence, to a fine of not more than $500,000 or to imprisonment for a term of not more than six months, or to both. Contravention of section 8 — knowingly 57. (1) Every person who knowingly contravenes section 8 is guilty of an offence and liable on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both. Contravention of section 8 (2) Every person who contravenes section 8 is guilty of an offence and liable (a) on conviction on indictment, for a first offence, to a fine of not more than $500,000 or to imprisonment for a term of not more than six months, or to both, and, for a subsequent offence, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than two years, or to both; or Agents pathogènes (b) on summary conviction, for a first offence, to a fine of not more than $250,000 or to imprisonment for a term of not more than three months, or to both, and, for a subsequent offence, to a fine of not more than $500,000 or to imprisonment for a term of not more than six months, or to both. Intentional release 58. Every person who intentionally releases or otherwise abandons a human pathogen or toxin in contravention of this Act or the regulations and, as a result, creates a risk to the health or safety of the public is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years. Defence 59. No person who establishes that they exercised all due diligence to prevent the commission of an offence under this Act may be convicted of that offence, except for an offence under (a) section 53, with respect to a contravention of subsection 7(1), section 17 and subsection 41(6); (b) section 55; (c) section 56, with respect to a contravention of subsection 7(1); (d) subsection 57(1); and (e) section 58. Place of trial 60. A prosecution for an offence under this Act may be instituted, heard and determined in the place where (a) the offence was committed or the subject matter of the prosecution arose; (b) the accused was apprehended; or (c) the accused happens to be or is carrying on business. Continuing offences 61. If an offence under this Act is committed or continued on more than one day, the person who committed the offence is liable to be convicted for a separate offence for each day on which it is committed or continued. C. 24 Time limit 62. (1) Summary conviction proceedings for an offence under this Act may be instituted no later than two years after the day on which the subject matter of the proceedings becomes known to the Minister. Minister’s certificate (2) A document that appears to be issued by the Minister, certifying the day on which the subject matter of the proceedings became known to the Minister, is admissible in evidence without proof of the signature or official character of the person appearing to have signed it. In the absence of evidence to the contrary, it is proof of the matters asserted in it. Directors, officers, etc. 63. If a person other than an individual commits an offence under this Act, any of the person’s directors, officers, agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted. Offences by employees, agents or mandataries 64. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by the accused’s employee acting within the scope of their employment, or the accused’s agent or mandatary acting within the scope of their authority, whether or not the employee, agent or mandatary is identified or prosecuted for the offence, unless the accused establishes that Human Pathog (a) the offence was committed without the accused’s knowledge or consent; and (b) the accused exercised all due diligence to prevent its commission. DEBTS Debts due to Her Majesty 65. The following constitute debts due to Her Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction: (a) an amount that a person is directed to pay under an order made by a court under this Act; Agents pathogènes (b) the costs incurred in the seizure, storage, transfer, preservation or disposition under this Act of any human pathogen, toxin or other thing; and (c) the costs incurred in the carrying out of a measure under subsection 43(6). REGULATORY POWERS Regulations 66. (1) The Governor in Council may make regulations in relation to human pathogens and toxins, including regulations (a) respecting the conduct of controlled activities, including in relation to (i) containment levels for human pathogens or toxins, (ii) the decontamination of material, equipment, places, conveyances and persons contaminated by human pathogens or toxins, and (iii) the safety and security of controlled activities; (b) respecting licensing, including the conditions that must be met for a licence to be issued, the conditions that must be complied with under a licence, the renewal, suspension and revocation of a licence and the variation of the conditions of an existing licence; (c) respecting facilities in which controlled activities are authorized, including (i) the location, design, construction, layout and upgrading of those facilities, (ii) the material and equipment at those facilities, (iii) heating, ventilation, air conditioning and air handling systems, and (iv) biological safety cabinets; (d) respecting access to facilities in which controlled activities are authorized, including (i) the conditions to be met by persons to obtain access to those facilities, and (ii) the screening of persons accessing those facilities; C. 24 Human Pathog (e) prescribing the time when a document sent under this Act is to be considered to have been received; (f) specifying the human pathogens and toxins to which section 33 applies; (g) respecting security clearances required under section 33, including (i) the conditions to be met by an applicant for a security clearance, (ii) the issuance of security clearances, as well as their suspension and revocation, and (iii) the reconsideration of a decision to refuse, suspend or revoke a security clearance; (h) respecting the accompaniment and supervision, within the part of a facility described in section 33, of persons who do not hold a security clearance; (i) respecting the qualifications, powers and functions of biological safety officers; (j) respecting the establishment, content and maintenance of inventories of human pathogens and toxins, as well as the submission of reports on those inventories; (k) respecting the preparation, content and maintenance of any documents necessary for the administration of this Act and the regulations, as well as the provision of those documents to the Minister; (l) respecting the communication of information to the Minister that is necessary for the administration of this Act and the regulations; (m) respecting the collection, use and disclosure by the Minister of personal information and confidential business information; (n) exempting, on any conditions that the Governor in Council deems appropriate, any person or class of persons, any activity or any human pathogen from the application of any provision of this Act or the regulations if the Governor in Council is of the opinion that the exemption is in the public interest and poses no undue risk to the health or safety of the public; Agents pathogènes (o) prescribing any other matter that by this Act is to be prescribed; and (p) prescribing any measure that the Governor in Council may consider necessary for the administration or enforcement of this Act. Levels of risk (1.1) In making regulations, the Governor in Council shall take into account the varying levels of risk posed by human pathogens — determined by whether they fall into Risk Group 2, Risk Group 3 or Risk Group 4 — and those posed by toxins. Distinctions (2) A regulation may establish classes of persons, facilities, activities, human pathogens and toxins and distinguish among those classes. Proposed regulations to be laid before Parliament 66.1 (1) Before a regulation is made under section 66, the Minister shall lay the proposed regulation before each House of Parliament. Report by committee (2) A proposed regulation that is laid before Parliament shall be referred to the appropriate committee of each House, as determined by the rules of that House, and the committee may review the proposed regulation and report its findings to that House. Standing Committee on Health (2.1) The committee of the House of Commons referred to in subsection (2) shall be the Standing Committee on Health or, in the event that there is not a Standing Committee on Health, the appropriate committee of the House. Making of regulations (3) A regulation may not be made before the earliest of (a) 30 sitting days after the proposed regulation is laid before Parliament, (b) 160 calendar days after the proposed regulation is laid before Parliament, and (c) the day after each appropriate committee has reported its findings with respect to the proposed regulation. C. 24 Explanation (4) The Minister shall take into account any report of the committee of either House. If a regulation does not incorporate a recommendation of the committee of either House, the Minister shall lay before that House a statement of the reasons for not incorporating it. Alteration (5) A proposed regulation that has been laid before Parliament need not again be so laid prior to the making of the regulation, whether it has been altered or not. Exceptions 66.2 (1) A regulation may be made without being laid before either House of Parliament if the Minister is of the opinion that Human Pathog (a) the changes made by the regulation to an existing regulation are so immaterial or insubstantial that section 66.1 should not apply in the circumstances; or (b) the regulation must be made immediately in order to protect the health or safety of any person. Notice of opinion (2) If a regulation is made without being laid before Parliament, the Minister shall lay before each House of Parliament a statement of the Minister’s reasons. Interim orders 67. (1) The Minister may make an interim order containing any provision that may be contained in a regulation made under section 66 if the Minister is of the opinion that prompt measures are required to address a serious and imminent danger to the health or safety of the public. Duration (2) The interim order has effect from the day on which it is made but ceases to have effect on the earliest of (a) 14 days after the day on which it is made, unless it is approved by the Governor in Council, (b) the day on which it is repealed, (c) the day on which a regulation made under section 66 that has the same effect as the interim order comes into force, and (d) one year after the day on which it is made or any shorter period that it specifies. Agents pathogènes 2009 Exemption from Statutory Instruments Act (3) An interim order is exempt from the application of sections 3 and 9 of the Statutory Instruments Act. Deeming (4) For the purpose of any provision of this Act other than this section, any reference to regulations made under this Act is deemed to include interim orders, and a reference to a regulation made under a specified provision of this Act is deemed to include a reference to the portion of an interim order containing any provision that may be contained in a regulation made under the specified provision. Tabling of order (5) A copy of each interim order shall be tabled in each House of Parliament within 15 days after the day on which it is made. House not sitting (6) In order to comply with subsection (5), the interim order may be sent to the Clerk of the House if the House is not sitting. Externally produced documents 68. (1) A regulation may incorporate by reference documents that are produced by a person or body other than the Minister, including (a) an organization established for the purpose of writing standards, including an organization accredited by the Standards Council of Canada; (b) an industrial or trade organization; or (c) a government. Reproduced or translated documents (2) A regulation may incorporate by reference documents that the Minister reproduces or translates from documents that are produced by a person or body other than the Minister (a) with any adaptations of form or reference that would facilitate the incorporation of those documents into the regulation; or (b) in a form that sets out only those parts that apply for the purposes of the regulation. Jointly produced documents (3) A regulation may incorporate by reference documents that the Minister produces jointly with another government for the purpose of harmonizing the regulation with other laws. C. 24 Internally produced standards (4) A regulation may incorporate by reference technical or explanatory documents that the Minister produces, including Human Pathog (a) specifications, classifications, illustrations, graphs or other information of a technical nature; and (b) test methods, procedures, operational standards, laboratory safety standards or performance standards of a technical nature. Ambulatory incorporation by reference (5) A document may be incorporated by reference as amended from time to time. Incorporated document not a regulation (6) A document that is incorporated by reference in a regulation is not a regulation for the purposes of the Statutory Instruments Act. Interpretation (7) Subsections (1) to (5) do not limit any authority to make regulations incorporating documents by reference that exists apart from those subsections. Defence 69. If a provision of a regulation incorporates a document by reference, then no person may be convicted of an offence, or subjected to a penalty, for the contravention of the provision unless it is proved that, at the time of the alleged contravention, (a) the document was reasonably accessible to the person; (b) reasonable steps had been taken to ensure that the document was accessible to persons likely to be affected by the regulation; or (c) the document had been published in the Canada Gazette. TRANSITIONAL PROVISIONS Activities already commenced 70. (1) Every person who, on the day on which this section comes into force, is responsible for activities involving human pathogens or toxins shall, in the form and manner specified by the Minister, not later than 90 days after that coming into force, (a) advise the Minister that they are responsible for human pathogens or toxins and inform the Minister of the risk groups to which the human pathogens belong; Agents pathogènes (b) advise the Minister of the location where the activity is conducted; and (c) designate an individual with the appropriate safety training in the area of human pathogens and toxins or relevant work experience as the contact person for the Minister and advise the Minister of that individual’s name. Activities commencing before subsection 7(1) comes into force (2) Every person who is responsible for activities involving human pathogens or toxins and who commences those activities after the day on which this section comes into force but before the day on which subsection 7(1) comes into force shall, in the form and manner specified by the Minister, provide the Minister with the information referred to in subsection (1) not later than 30 days after the day on which the activities commence. Update of information (3) Every person who is required to provide the Minister with information under subsection (1) or (2) shall provide the Minister with updated information annually. If a new individual is designated under paragraph (1)(c), the person shall advise the Minister of the designation without delay. No effect (4) Subsection (3) ceases to have effect on the day on which subsection 7(1) comes into force. Possession of human pathogens or toxins 71. (1) Every person who, on the day on which section 8 comes into force, possesses a human pathogen or toxin listed in Schedule 5 shall (a) inform the Minister of the human pathogen or toxin in their possession within 30 days after the day on which that section comes into force; (b) provide the Minister with any information that the Minister may require with respect to it; and (c) dispose of it in accordance with the Minister’s instructions. C. 24 No contravention (2) No person contravenes section 8 by reason only that they possess a human pathogen or toxin in the circumstances described in subsection (1) if they comply with that subsection. Human Pathog COMING INTO FORCE Order in council 72. Section 7, subsections 11(1) and 12(1), sections 13 to 16, 18 to 36, 38 and 56 come into force on a day or days to be fixed by order of the Governor in Council. Agents pathogènes humai SCHEDULE 1 (Subsections 3(1), 9(1) and (3) and 10(1)) TOXINS Aerolysin Aerolysine Alpha toxin Toxine Alpha Anthrax toxins: Lethal Toxin and Oedema Toxin Toxines du charbon : toxine létale et toxine d’oedème Bordetella pertussis Adenylate cyclase toxin Toxine pertussique d’adénylate cyclase Botulinum neurotoxin Toxine botulique Cholera toxin Toxine du choléra Clostridium botulinum C2 and C3 toxins Toxines C2 et C3 de Clostridium botulinum Clostridium difficile toxins A and B Toxines A et B de Clostridium difficile Clostridium perfringens Epsilon toxin Toxine Epsilon de Clostridium perfringens Dermonecrotic toxin Toxine dermonecrotique Diphtheria toxin Toxine diphthérique Escherichia coli toxins: E. coli Cytotoxic Necrotizing Factor (CNF), Heat-labile E. coli enterotoxin (LT), Heat-stable E. coli enterotoxin (ST), Cytolethal distending toxin (CLDT) and Enteroaggregative Shiga-like toxin 1 (EAST) Toxines Escherichia coli : facteur cytotoxique nécrosant (CNF), entérotoxine labile à la chaleur (LT), entérotoxine stable à la chaleur (ST), entérotoxine cytolétale et distendante (CLDT) et toxine entéroagrégative Shiga-like 1 (EAST) Exfoliative toxin (also called Exfoliatin) Toxine exfoliative Exotoxin A Exotoxine A Hemolysin Hemolysine Listeriolysin O Listeriolysine O Pasteurella multocida toxin Toxine de Pasteurella multocida Perfringolysin O Perfringolysine O Pertussis toxin Toxine pertussique Pneumolysin Pneumolysine Pyrogenic exotoxin Exotoxine pyrogène Shiga-like toxin (verotoxin) Toxine Shiga-like (vérotoxine) Shigatoxin Shigatoxine C. 24 Human Pathogens and Staphylococcal enterotoxins Entérotoxine de staphylocoques Staphylococcus aureus Toxic shock syndrome toxin Toxine du syndrome du choc toxique de Staphylococcus aureus Streptolysin O Streptolysine O Tetanolysin Tetanolysine Tetanospasmin (Tetanus toxin) Tetanospasmine (toxine tétanique) Agents pathogènes humai SCHEDULE 2 (Subsections 3(1), 9(2) and (3) and 10(1)) RISK GROUP 2 HUMAN PATHOGENS BACTERIA Actinobacillus pleuropneumoniae Actinobacillus ureae Actinomyces israelii Aerococcus ureinae Aeromonas hydrophila Aggregatibacter actinomycetemcomitans Arcanobacterium bernardiae Bordetella bronchiseptica Bordetella parapertussis Bordetella pertussis Borrelia burgdorferi Campylobacter jejuni Chlamydia trachomatis Chlamydophila pneumoniae Citrobacter freundii Clostridium botulinum Clostridium difficile Clostridium perfringens Clostridium tetani Corynebacterium diphtheriae Enterococcus faecium Escherichia coli Francisella novicida Haemophilus influenzae Haemophilus parainfluenzae Helicobacter pylori Klebsiella pneumoniae Legionella pneumophila Leptospira interrogans Listeria monocytogenes Moraxella catarrhalis Mycobacterium avium Mycobacterium leprae Mycobacterium smegmatis Mycoplasma genitalium Mycoplasma pneumoniae C. 24 Human Pathogens and Neisseria gonorrhoeae Neisseria meningitidis Pasteurella multocida Porphyromonas gingivalis Proteus mirabilis Proteus vulgaris Pseudomonas aeruginosa Salmonella Serratia marcescens Shigella dysenteriae Shigella flexneri Shigella sonnei Sphingobacterium faecium Staphylococcus aureus Staphylococcus saprophyticus Streptococcus agalactiae Streptococcus pyogenes Streptococcus salivarius Treponema pallidum Ureaplasma urealyticum Vibrio cholerae Yersinia pseudotuberculosis VIRUSES Adenovirus Adénovirus humain Avian influenza virus (excluding highly pathogenic strains) Virus de la grippe aviaire (sauf les souches hautement pathogènes) Colorado tick fever viruses Virus de la fièvre à tiques du Colorado Cowpox virus Virus cowpox Coxsackievirus Coxsackievirus Epstein Barr virus Virus d’Epstein Barr Hepatitis A virus Virus de l’Hépatite A Hepatitis B virus Virus de l’Hépatite B Hepatitis C virus Virus de l’Hépatite C Hepatitis D virus Virus de l’Hépatite D Hepatitis E virus Virus de l’Hépatite E Agents pathogènes humai Herpes simplex viruses Virus Herpès simplex Human coronavirus (excluding SARS-CoV) Coronavirus humain (sauf le virus du SRAS) Human herpesvirus 5 (cytomegalovirus) Herpèsvirus humain de type 5 (cytomegalovirus) Human herpesvirus 6 (roseolovirus) Herpèsvirus humain de type 6 (roseolovirus) Human herpesvirus 8 (Kaposi’s sarcoma-associated herpesvirus) Herpèsvirus humain de type 8 (herpèsvirus associé au sarcome de Kaposi) Human parvovirus Parvovirus humain Human rotavirus Rotavirus humain Influenza virus, types A-C (excluding Type A 1918 Spanish Flu and H2N2 strains) Virus de la grippe (Influenza), types A-C (sauf la souche type A de la grippe espagnole et les souches H2N2) Measles virus Virus de la rougeole Molluscum contagiosum virus Virus du Molluscum contagiosum Mumps virus Virus ourlien Newcastle disease virus Virus de la maladie de Newcastle Norwalk virus Virus de Norwalk Papillomaviruses Papillomavirus humain Parainfluenza virus (types 1-4) Virus Parainfluenza (types 1-4) Reoviruses Reovirus Respiratory syncytial virus Virus respiratoire syncytial Rhinovirus Rhinovirus Semliki Forest virus Virus de la forêt Semliki Sendai virus Virus Sendaï Simian virus 40 SV40 (Simian virus 40) Vaccinia virus Virus de la Vaccine FUNGI Aspergillus fumigatus Aspergillus niger Aspergillus oryzae Candida albicans Cryptococcus neoformans C. 24 Human Pathogens and Microsporum audouinii Microsporum ferrugineum Sporothrix schenkii Trichophyton concentricum Trichophyton rubrum Trichophyton schoenleinii Trichophyton tonsurans PROTOZOA Acanthamoeba castellanii Leishmania aethiopica Leishmania braziliensis Leishmania chagasi Leishmania donovani Leishmania guyanensis Leishmania infantum Leishmania panamensis Plasmodium falciparum Trypanosoma brucei gambiense Trypanosoma brucei rhodiense Trypanosoma cruzi PRIONS Chronic wasting disease agent Agent de la maladie du dépérissement chronique des cervidés Agents pathogènes humai SCHEDULE 3 (Subsections 3(1), 9(2) and (3) and 10(1)) RISK GROUP 3 HUMAN PATHOGENS BACTERIA Bacillus anthracis Brucella abortus Brucella canis Brucella melitensis Brucella ovis Brucella suis Burkholderia mallei Burkholderia pseudomallei Chlamydia psittaci Coxiella burnetii Francisella tularensis Mycobacterium africanum Mycobacterium bovis Mycobacterium canettii Mycobacterium microti Mycobacterium tuberculosis Neorickettsia sennetsu Rickettsia akari Rickettsia australis Rickettsia conorii Rickettsia japonicum Rickettsia prowazekii Rickettsia rickettsii Rickettsia siberica Rickettsia typhi Yersinia pestis VIRUSES African Horse Sickness virus Virus de la peste équine Água Preta virus Virus Agua Preta Akabane virus Virus Akabane Allpahuayo virus Virus Allpahuayo Andes virus Virus Andes Araguari virus Virus Araguari C. 24 Human Pathogens and Batken virus Virus Batken Bayou virus Virus du Bayou Bear Canyon virus Virus du Bear Canyon Bermejo virus Virus Bermejo Bhanja virus Virus Bhanja Bijou Bridge virus Virus Bijou Black Creek Canal virus Virus Black creek canal Cabassou virus Virus Cabassou Cano Delgadito virus Virus Cano Delgadito Chikungunya virus Virus Chikungunya Dhori virus Virus Dhori Dobrava-Belgrade virus Virus Dobrava-Belgrade Douglas virus Virus Douglas Dugbe virus Virus Dugbe Duvenhage virus Virus Duvenhage Eastern equine encephalitis virus Virus de l’encéphalite équine de l’Est Enseada virus Virus Enseada Everglades virus Virus Everglades Flexal virus Virus Flexal Garissa virus Virus Garissa Germiston virus Virus Germiston Hantaan virus Virus Hantaan Herpesvirus ateles Herpèsvirus ateles Herpesvirus saimiri Herpèsvirus saimiri Highly pathogenic avian influenza virus Virus de la grippe aviaire (Influenza) hautement pathogène Human immunodeficiency virus Virus de l’immunodéficience humaine Human T-cell lymphotrophic virus Virus T lymphotrope humain (HTLV) Agents pathogènes humai Influenza A H2N2 Virus de la grippe (Influenza) type A sous-type H2 Israel Turkey meningoencephalitis virus Virus Israel turkey meningoencephalitis Issyk-Kul virus Virus Issyk Kul Japanese encephalitis virus Virus de l’encéphalite japonaise Juquitiba virus Virus Juquitiba Khabarovsk virus Virus Khabarovsk Koutango virus Virus Koutango Kunjin virus Virus Kunjin Laguna Negra virus Virus Laguna Negra Lechiguanas virus Virus Lechiguanas Louping ill virus Virus Louping ill Lymphocytic choriomeningitis virus Virus de la chorioméningite lymphocytaire Maporal virus Virus Maporal Mapuera virus Virus Mapuera Mayaro virus Virus Mayaro Mobala virus Virus Mobala Monkeypox virus Virus de l’orthopoxvirose simienne Monongahela virus Virus Monongahela Mopeia virus Virus Mopeia Mucambo virus Virus Mucambo Murray Valley encephalitis virus Virus de l’encéphalite de la Murray Valley Negishi virus Virus Negishi New York virus Virus New York Ngari virus Virus Ngari Oliveros virus Virus Oliveros O’Nyong-nyong virus Virus O’Nyong-nyong Oran virus Virus Oran C. 24 Human Pathogens and Oropouche virus Virus Oropouche Pergamino virus Virus Pergamino Pirital virus Virus Pirital Piry virus Virus Piry Powassan virus Virus Powassan Puumala virus Virus Puumala Rabies virus Virus rabique Rift Valley fever virus Virus de la fièvre de la vallée du Rift Rocio virus Virus Rocio Saaremaa virus Virus Saaremaa Sakpa virus Virus Sakpa SARS coronavirus (SARS-CoV) Virus du syndrome respiratoire aigu sévère (SRAS-CoV) Seoul virus Virus Seoul Sin nombre virus Virus Sin nombre Slovakia virus Virus Slovakia Somone virus Virus Somone Sripur virus Virus Sripur St. Louis encephalitis virus Virus de l’encéphalite de Saint-Louis Thogoto virus Virus Thogoto Tonate virus Virus Tonate Topografov virus Virus Topografov Venezuelan equine encephalitis virus Virus de l’encéphalite équine du Venezuela Vesicular stomatitis virus Virus de la stomatite vésiculaire Wesselsbron virus Virus Wesselsbron Western equine encephalitis virus Virus de l’encéphalite équine de l’Ouest West Nile fever virus Virus du Nil occidental Whitewater Arroyo virus Virus Whitewater Arroyo Agents pathogènes humai 2009 Xingu virus Virus Xingu Yellow fever virus Virus de la fièvre jaune FUNGI Blastomyces dermatitidis Cladophialophora bantiana Coccidioides immitis Coccidioides posadasii Histoplasma capsulatum Paracoccidioides brasiliensis Penicillium marneffei PROTOZOA PRIONS Bovine spongiform encephalopathy agent and other related animal transmissible spongiform encephalopathies agents Agent de l’encéphalopathie spongiforme bovine et agents des autres encéphalopathies spongiformes transmissibles Creutzfeldt-Jakob disease agent Agent du syndrome de Creutzfeldt-Jakob Fatal Familial Insomnia agent Agent de la maladie de l’insomnie fatale familiale Gerstmann-Sträussler-Scheinker syndrome agent Agent du syndrome de Gerstmann-Sträussler-Scheinker Kuru agent Agent du Kuru Variant Creutzfeldt-Jakob disease agent Agent du syndrome de variante du syndrome de Creutzfeldt-Jakob C. 24 Human Pathogens and SCHEDULE 4 (Subsections 3(1), 9(2) and (3) and 10(1)) RISK GROUP 4 HUMAN PATHOGENS VIRUSES Absettarov virus Virus Absettarov Alkhumra virus Virus Alkhumra Crimean Congo haemorrhagic fever virus Virus de la fièvre hémorragique de Congo Crimée Ebola virus Virus Ebola Guanarito virus Virus Guanarito Hanzalova virus Virus Hanzalova Hendra virus Virus Hendra Herpes B virus Herpèsvirus simien B Hypr virus Virus Hypr Junin virus Virus Junin Kumlinge virus Virus Kumlinge Kyasanur Forest virus Virus de la forêt Kyasanur Lassa fever virus Virus de Lassa Machupo virus Virus Machupo Marburg virus Virus Marburg Nipah virus Virus Nipah Omsk haemorrhagic fever virus Virus Omsk Russian spring-summer encephalitis virus Virus de l’encéphalite verno estivale russe Sabia virus Virus Sabia Agents pathogènes humai SCHEDULE 5 (Subsection 3(1), sections 8 and 10 and subsections 12(2) and 71(1)) PROHIBITED HUMAN PATHOGENS AND TOXINS PART 1 TOXINS PART 2 HUMAN PATHOGENS Variola virus Virus de la variole Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 18 An Act to give effect to the Maanulth First Nations Final Agreement and to make consequential amendments to other Acts ASSENTED TO 18th JUNE, 2009 BILL C-41 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to give effect to the Maanulth First Nations Final Agreement and to make consequential amendments to other Acts”. SUMMARY This enactment gives effect to the Maanulth First Nations Final Agreement. It also makes consequential amendments to other Acts. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO GIVE EFFECT TO THE MAANULTH FIRST NATIONS FINAL AGREEMENT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS Preamble SHORT TITLE 1. Maanulth First Nations Final Agreement Act INTERPRETATION 2. Definitions 3. Status of Agreement AGREEMENT 4. Agreement given effect 5. Inconsistency with Agreement APPROPRIATION 6. Payments out of C.R.F. 7. Fee simple estate LANDS TAXATION 8. Tax Treatment Agreement given effect 9. Not a treaty FISHERIES 10. Powers of Minister of Fisheries and Oceans 11. Not a treaty APPLICATION OF OTHER ACTS 12. Indian Act 13. Statutory Instruments Act APPLICATION OF LAWS OF BRITISH COLUMBIA 14. Incorporation by reference i GENERAL 15. Judicial notice of Agreements 16. Judicial notice of Maanulth Laws 17. Orders and regulations 18. Chapters 26 and 28 of Agreement 19. Notice of issues arising CONSEQUENTIAL AMENDMENTS 20. Access to Information Act 21. Fisheries Act 22. Payments in Lieu of Taxes Act 23. Privacy Act 24. Specific Claims Tribunal Act 25. Order in council COMING INTO FORCE 57-58 ELIZABETH II —————— CHAPTER 18 An Act to give effect to the Maanulth First Nations Final Agreement and to make consequential amendments to other Acts [Assented to 18th June, 2009] Preamble Whereas the Constitution Act, 1982 recognizes and affirms the existing aboriginal and treaty rights of the aboriginal peoples of Canada; Whereas the Maanulth First Nations are part of the Nuuchahnulth, an aboriginal people of Canada; Whereas the reconciliation between the prior presence of aboriginal peoples and the assertion of sovereignty by the Crown is of significant social and economic importance to Canadians; Whereas Canadian courts have stated that this reconciliation is best achieved through negotiation; Whereas the Maanulth First Nations, the Government of Canada and the Government of British Columbia have negotiated the Agreement to achieve this reconciliation and to establish a new relationship among them; And whereas the Agreement requires that legislation be enacted by the Parliament of Canada in order for the Agreement to be ratified; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: C. 18 Maanulth First Natio SHORT TITLE Short title 1. This Act may be cited as the Maanulth First Nations Final Agreement Act. INTERPRETATION Definitions “Agreement” « accord » 2. (1) The following definitions apply in this Act. “Agreement” means the Maa-nulth First Nations Final Agreement, between the Maanulth First Nations, Her Majesty in right of Canada and Her Majesty in right of British Columbia, including any amendments made to it. “Tax Treatment Agreement” « accord sur le traitement fiscal » “Tax Treatment Agreement” means the tax treatment agreement referred to in paragraph 19.6.1 of the Agreement, including any amendments made to it. Definitions in Agreement (2) In this Act, “Maanulthaht”, “Maanulth Citizen”, “Maanulth Corporation”, “Maanulth First Nation”, “Maanulth Government”, “Maanulth Lands”, “Maanulth Law”, “Maanulth Public Institution” and “Other Maanulth Lands” have the same meanings as “Maa-nulth-aht”, “Maa-nulth First Nation Citizen”, “Maa-nulth First Nation Corporation”, “Maa-nulth First Nation”, “Maa-nulth First Nation Government”, “Maa-nulth First Nation Lands”, “Maa-nulth First Nation Law”, “Maa-nulth First Nation Public Institution” and “Other Maa-nulth First Nation Lands”, respectively, in paragraph 29.1.1 of the Agreement. Status of Agreement 3. The Agreement is a treaty and a land claims agreement within the meaning of sections 25 and 35 of the Constitution Act, 1982. AGREEMENT Agreement given effect 4. (1) The Agreement is approved, given effect and declared valid and has the force of law. Rights and obligations (2) For greater certainty, any person or body has the powers, rights, privileges and benefits conferred on the person or body by the Agreement and shall perform the duties, and is subject to the liabilities, imposed on the person or body by the Agreement. Accord définitif concernant les Third parties (3) For greater certainty, the Agreement is binding on, and may be relied on by, all persons and bodies. Inconsistency with Agreement 5. (1) The Agreement prevails over this Act and any other federal law to the extent of any inconsistency or conflict between them. Conflict with Act (2) This Act prevails over any other federal law to the extent of any conflict between them. APPROPRIATION Payments out of C.R.F. 6. There shall be paid out of the Consolidated Revenue Fund any sums that are required to meet the monetary obligations of Her Majesty in right of Canada under Chapters 16 and 17 of the Agreement. LANDS Fee simple estate 7. On the effective date of the Agreement, each Maanulth First Nation owns the estate in fee simple, as set out in Chapter 2 of the Agreement, in the Maanulth Lands referred to in relation to it in subparagraph 2.1.1a., b., c., d. or e. of the Agreement, as the case may be. In addition, the Ucluelet First Nation owns the estate in fee simple, as set out in Chapter 2 of the Agreement, in the Other Maanulth Lands referred to in paragraph 2.2.1 of the Agreement. TAXATION Tax Treatment Agreement given effect 8. The Tax Treatment Agreement is approved, given effect and declared valid and has the force of law during the period that it is in effect. Not a treaty 9. The Tax Treatment Agreement does not form part of the Agreement and is not a treaty or a land claims agreement within the meaning of sections 25 and 35 of the Constitution Act, 1982. FISHERIES Powers of Minister of Fisheries and Oceans 10. Despite section 7 of the Fisheries Act, the Minister of Fisheries and Oceans may, on behalf of Her Majesty in right of Canada, enter into and implement the Maa-nulth Harvest C. 18 Maanulth First Natio Agreement referred to in paragraph 10.2.1 of the Agreement, including any amendments made to it. Not a treaty 11. That Harvest Agreement does not form part of the Agreement and is not a treaty or a land claims agreement within the meaning of sections 25 and 35 of the Constitution Act, 1982. APPLICATION OF OTHER ACTS Indian Act Statutory Instruments Act 12. Subject to the provisions of Chapter 15 of the Agreement that deal with the continuing application of the Indian Act, and paragraphs 19.5.1 to 19.5.6 of the Agreement, the Indian Act does not apply to Maanulthaht, Maanulth First Nations, Maanulth Governments, Maanulth Public Institutions or Maanulth Corporations as of the effective date of the Agreement, except for the purpose of determining whether an individual is an Indian. 13. Maanulth Laws and other instruments made under the Agreement are not statutory instruments for the purposes of the Statutory Instruments Act. APPLICATION OF LAWS OF BRITISH COLUMBIA Incorporation by reference 14. To the extent that a law of British Columbia does not apply of its own force to a Maanulthaht, a Maanulth Citizen, a Maanulth First Nation, a Maanulth Government, a Maanulth Public Institution, a Maanulth Corporation, Maanulth Lands or Other Maanulth Lands, because of the exclusive legislative authority of Parliament set out in Class 24 of section 91 of the Constitution Act, 1867, that law of British Columbia applies to it or to them by virtue of this section, in accordance with the Agreement and subject to this Act and any other Act of Parliament. GENERAL Judicial notice of Agreements 15. (1) Judicial notice shall be taken of the Agreement and the Tax Treatment Agreement. Publication of Agreements (2) The Agreement and the Tax Treatment Agreement shall be published by the Queen’s Printer. Accord définitif concernant les Evidence (3) A copy of the Agreement or the Tax Treatment Agreement published by the Queen’s Printer is evidence of that agreement and of its contents, and a copy purporting to be published by the Queen’s Printer is deemed to be so published, unless the contrary is shown. Judicial notice of Maanulth Laws 16. (1) Judicial notice shall be taken of Maanulth Laws. Evidence of Maanulth Laws (2) A copy of a Maanulth Law purporting to be deposited in a public registry of laws referred to in subparagraph 13.5.1a. of the Agreement is evidence of that law and of its contents, unless the contrary is shown. Orders and regulations 17. The Governor in Council may make any orders and regulations that are necessary for the purpose of carrying out any of the provisions of the Agreement or of the Tax Treatment Agreement. Chapters 26 and 28 of Agreement 18. Despite subsection 4(1), Chapters 26 and 28 of the Agreement are deemed to have effect as of December 9, 2006. Notice of issues arising 19. (1) If an issue arises in any judicial or administrative proceeding in respect of the interpretation or validity of the Agreement, or the validity or applicability of this Act, the British Columbia Maa-nulth First Nations Final Agreement Act or any Maanulth Law, then the issue shall not be decided until the party raising the issue has served notice on the Attorney General of Canada, the Attorney General of British Columbia and each applicable Maanulth First Nation. Content of notice (2) The notice shall (a) describe the judicial or administrative proceeding; (b) specify what the issue arises in respect of; (c) state the day on which the issue is to be argued; (d) give particulars necessary to show the point to be argued; and (e) be served at least 14 days before the day of argument, unless the court or tribunal authorizes a shorter period. C. 18 Participation in proceedings (3) In any judicial or administrative proceeding in respect of which subsection (1) applies, the Attorney General of Canada, the Attorney General of British Columbia and the applicable Maanulth First Nation may appear and participate in the proceeding as parties with the same rights as any other party. Saving (4) For greater certainty, subsections (2) and (3) do not require that an oral hearing be held if one is not otherwise required. Maanulth First Natio CONSEQUENTIAL AMENDMENTS R.S., c. A-1 ACCESS TO INFORMATION ACT 20. Subsection 13(3) of the Access to Information Act is amended by striking out “or” at the end of paragraph (e), by adding “or’’ at the end of paragraph (f) and by adding the following after paragraph (f): (g) a Maanulth Government, within the meaning of subsection 2(2) of the Maanulth First Nations Final Agreement Act. R.S., c. F-14 FISHERIES ACT 21. Subsection 5(4) of the Fisheries Act is amended by striking out “or” at the end of paragraph (a), by adding “or’’ at the end of paragraph (b) and by adding the following after paragraph (b): (c) Maanulth Laws, within the meaning of subsection 2(2) of the Maanulth First Nations Final Agreement Act, made under chapter 10 of the Agreement, as defined in subsection 2(1) of that Act, given effect by that Act. R.S., c. M-13; 2000, c. 8, s. 2 PAYMENTS IN LIEU OF TAXES ACT 22. The definition “taxing authority” in subsection 2(1) of the Payments in Lieu of Taxes Act is amended by striking out “or” at the end of paragraph (h), by adding “or’’ at the end of paragraph (i) and by adding the following after paragraph (i): (j) a Maanulth Government, within the meaning of subsection 2(2) of the Maanulth First Nations Final Agreement Act, if it levies Accord définitif concernant les and collects a real property tax or a frontage or area tax in respect of Maanulth Lands, within the meaning of that subsection. R.S., c. P-21 PRIVACY ACT 23. Subsection 8(7) of the Privacy Act is amended by striking out “or” at the end of paragraph (e), by adding “or’’ at the end of paragraph (f) and by adding the following after paragraph (f): (g) a Maanulth Government, within the meaning of subsection 2(2) of the Maanulth First Nations Final Agreement Act. 2008, c. 22 SPECIFIC CLAIMS TRIBUNAL ACT 24. Part 1 of the schedule to the Specific Claims Tribunal Act is amended by adding the following in alphabetical order: Maanulth First Nations Final Agreement Act Loi sur l’accord définitif concernant les premières nations maanulthes COMING INTO FORCE Order in council 25. The provisions of this Act, other than section 18, come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 20 An Act to amend the War Veterans Allowance Act ASSENTED TO 18th JUNE, 2009 BILL C-33 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the War Veterans Allowance Act”. SUMMARY This enactment amends the War Veterans Allowance Act in order to extend the application of that Act to certain allied veterans and extends certain benefits provided for by regulations to those veterans and their dependants. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 20 An Act to amend the War Veterans Allowance Act [Assented to 18th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. W-3 WAR VETERANS ALLOWANCE ACT 1. (1) Subsection 2(1) of the War Veterans Allowance Act is amended by adding the following in alphabetical order: “Korean War” « guerre de Corée » “Korean War” means the military operations undertaken by the United Nations to restore peace in the Republic of Korea during the period from June 25, 1950 to July 27, 1953, inclusive. (2) Section 2 of the Act is amended by adding the following after subsection (1): Surviving spouse of allied veteran (2) For the purposes of this Act, the definition “survivor” in subsection (1) includes a person who has resided in Canada for a total period of at least 10 years and who was the spouse or common-law partner of an individual at the time of the individual’s death and the individual (a) died after October 13, 2008; (b) was, at the time of death, a resident in Canada; and (c) was, at the time of death, an individual described in subsection 37(4.1) or (4.2), even if they had not resided in Canada for a total C. 20 War Veteran period of at least 10 years, but only if the total of the time they resided in Canada prior to their death and the time that has elapsed since their death is at least 10 years. Survivor — limitation (3) For the purposes of the definition “survivor” in subsection (1), a spouse or common-law partner is the survivor of an allied veteran referred to in paragraph 37(4)(d.1) or subsection 37(4.1) or (4.2) only if that allied veteran died after October 13, 2008. 2. Section 4 of the Act is amended by adding the following after subsection (5): Exception — allied veterans (5.1) Subsections (4) and (5) do not apply to an allied veteran referred to in paragraph 37(4)(d.1) or subsection 37(4.1) or (4.2) or to the survivor or orphan of that veteran. 3. Section 9 of the Act is replaced by the following: Enemy forces 9. No allowance shall be paid to any person who served in enemy forces during either World War II or the Korean War. 4. (1) Subsection 37(4) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c): (c.1) any of the forces that took part in the Korean War (2) Subsection 37(4) of the Act is amended by adding the following after paragraph (d): (d.1) served in a theatre of operations during the Korean War, (3) Section 37 of the Act is amended by adding the following after subsection (4): Allied veteran — World War II (4.1) An allied veteran is also any former member of any of His Majesty’s forces, or of any of the forces, other than resistance groups, of any of His Majesty’s allies in World War II, who served during that war, who resided in Canada for a total period of at least 10 years Allocations aux an beginning on or after August 15, 1945, who has been honourably discharged or has been permitted honourably to resign or retire from one of those forces and who (a) served in a theatre of actual war during that war; (b) is in receipt of a pension for an injury or disease incurred or aggravated during service in any such force during that war or is declared to have been eligible for, or awarded, such a pension subsequent to their death; or (c) has accepted a commuted pension. Allied veteran — Korean War (4.2) An allied veteran is also any former member of any of the forces that took part in the Korean War and who served during that war, who resided in Canada for a total period of at least 10 years beginning on or after July 27, 1953, who has been honourably discharged or has been permitted honourably to resign or retire from one of those forces and who served in a theatre of operations during that war. TRANSITIONAL PROVISIONS October 14, 2008 Veterans Health Care Regulations and Veterans Burial Regulations, 2005 5. The allowance payable under the War Veterans Allowance Act may be paid to any person or in respect of any person who would have been eligible to receive that allowance if sections 1 to 4 had come into force on October 14, 2008. In order for the allowance to be paid, an application must be made to the Minister of Veterans Affairs no later than December 31, 2010. 6. The benefits under the Veterans Health Care Regulations and the Veterans Burial Regulations, 2005 are extended to allied veterans or in respect of allied veterans described in paragraph 37(4)(d.1) or subsection 37(4.1) or (4.2) of the War Veterans Allowance Act, enacted by section 4, for the period beginning on October 14, 2008 and ending on December 31, 2009. Any applicaC. 20 War Veteran tion for the benefits must be made to the Minister of Veterans Affairs no later than December 31, 2010. Assistance Fund (W.V.A. and C.W.A.) Regulations 7. The financial assistance payable under the Assistance Fund (W.V.A. and C.W.A.) Regulations may be paid to any person or in respect of any person who would have been eligible to receive that financial assistance if sections 1 to 4 had come into force on October 14, 2008. In order for the financial assistance to be paid, an application must be made to the Minister of Veterans Affairs no later than December 31, 2010. COMING INTO FORCE January 1, 2010 8. This Act comes into force on January 1, 2010. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 5 An Act to recognize Beechwood Cemetery as the national cemetery of Canada ASSENTED TO 23rd APRIL, 2009 BILL C-17 SUMMARY This enactment provides for the recognition of Beechwood Cemetery as the national cemetery of Canada. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 5 An Act to recognize Beechwood Cemetery as the national cemetery of Canada [Assented to 23rd April, 2009] Preamble Whereas Beechwood Cemetery is a national place of tribute; Whereas Beechwood Cemetery is recognized by the Canadian Forces as its national military cemetery; Whereas Beechwood Cemetery is recognized by the Royal Canadian Mounted Police as its memorial cemetery; Whereas Beechwood Cemetery contains a national historic site of Canada; Whereas Beechwood Cemetery has demonstrated commitment to respecting the linguistic duality of Canada by means of a consistent and balanced approach to the use and display of Canada’s two official languages; Whereas Beechwood Cemetery reflects the multicultural, multi-faith nature of Canadian society; Whereas Parliament considers a national cemetery to be a worthy final resting place for Governors General, Prime Ministers and recipients of the Canadian Victoria Cross; Whereas Parliament considers that Ottawa, the seat of Canada’s national government and focal point for national memorial events such as those that take place on Remembrance Day, is a fitting location for a national cemetery; And whereas a national cemetery is a symbol of national gratitude, pride and unity; C. 5 National Cemet Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title 1. This Act may be cited as the National Cemetery of Canada Act. National cemetery 2. Beechwood Cemetery is given honorary recognition as the national cemetery of Canada. Description 3. For the purpose of section 2, Beechwood Cemetery is, under the registry system of Ontario, the area composed of Part of Lot 3, Concession Junction Gore, Part of Lot 2, Concession Junction Gore, Part of Block 23, Plan 92, Part of Blocks 15A and Btn Rds, Plan 92, Ottawa and Vanier. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 21 An Act to amend the Marine Liability Act and the Federal Courts Act and to make consequential amendments to other Acts ASSENTED TO 23rd JUNE, 2009 BILL C-7 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Marine Liability Act and the Federal Courts Act and to make consequential amendments to other Acts”. SUMMARY This enactment amends Parts 3 and 4 of the Marine Liability Act to clarify certain rules of the limitation of liability of owners of ships for maritime claims and liability for the carriage of passengers, in particular the treatment of participants in adventure tourism activities. It also amends Part 6 of that Act to implement the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 as well as the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001. The enactment continues, in Part 7, the Ship-source Oil Pollution Fund and modernizes its governance. With respect to Part 8, it includes general provisions relating to the administration and enforcement of offences under that Act and creates a maritime lien for Canadian ship suppliers against foreign vessels and establishes a general limitation period for proceedings not covered by other limitation periods. Finally, this enactment amends the Federal Courts Act and makes consequential amendments to other Acts. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 21 An Act to amend the Marine Liability Act and the Federal Courts Act and to make consequential amendments to other Acts [Assented to 23rd June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2001, c. 6 MARINE LIABILITY ACT 1. Section 24 of the Marine Liability Act is amended by adding the following in alphabetical order: “passenger” « passager » “passenger” means (a) a person carried on board a ship in circumstances described in paragraph 2(a) or (b) of Article 7 of the Convention; (b) a participant in an adventure tourism activity referred to in subsection 37.1(1); (c) a person carried on board a vessel propelled manually by paddles or oars and operated for a commercial or public purpose; and (d) a sail trainee. “unit of account” « unités de compte » “unit of account” means a special drawing right issued by the International Monetary Fund. 2. Section 26 of the Act is replaced by the following: Force of law 26. (1) Subject to the other provisions of this Part, Articles 1 to 15 and 18 of the Convention and Articles 8 and 9 of the Protocol have the force of law in Canada. C. 21 Amendments to Part 3 of Schedule 1 (2) The Governor in Council may, by regulation, amend Part 3 of Schedule 1 to add or delete a reservation made by Canada under Article 18 of the Convention. Exceptions (3) This Part does not apply to a claim that is the subject of a reservation made by Canada. 2001, c. 26, s. 324(2) 3. Sections 28 and 29 of the Act are replaced by the following: Passenger claims 28. (1) The maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to passengers of a ship of less than 300 gross tonnage is the greater of Marine Liability an (a) 2 000 000 units of account, and (b) 175 000 units of account multiplied by (i) the number of passengers that the ship is authorized to carry according to any Canadian maritime document required under the Canada Shipping Act, 2001, or (ii) the number of passengers on board the ship, if no Canadian maritime document is required under that Act. Claims — no contract of carriage (2) The maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to persons carried on board a ship of less than 300 gross tonnage otherwise than under a contract of passenger carriage is the greater of (a) 2 000 000 units of account, and (b) 175 000 units of account multiplied by (i) the number of passengers that the ship is authorized to carry according to any Canadian maritime document required under the Canada Shipping Act, 2001, or (ii) the number of persons on board the ship, if no Canadian maritime document is required under that Act. Responsabilité en matière m (3) Subsection (2) does not apply in respect Exception of (a) the master of a ship, a member of a ship’s crew — or any other person employed or engaged in any capacity on the business of a ship — when they are carried on board the ship; (b) a person carried on board a ship other than a ship operated for a commercial or public purpose; (c) a person carried on board a ship in pursuance of the obligation on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner could have prevented; (c.1) a stowaway, a trespasser or any other person who boards a ship without the consent or knowledge of the master or the owner; or (d) a person who is a member of a class of persons prescribed under paragraph 34.1(a). Other claims 29. The maximum liability for maritime claims that arise on any distinct occasion involving a ship of less than 300 gross tonnage, other than claims referred to in section 28, is (a) $1,000,000 in respect of claims for loss of life or personal injury; and (b) $500,000 in respect of any other claims. Calculation of tonnage 29.1 For the purposes of sections 28 and 29, a ship’s gross tonnage shall be calculated in accordance with the tonnage measurement rules contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969, concluded at London on June 23, 1969, including any amendments, whenever they are made, to the Annexes or Appendix to that Convention. 4. Subsection 30(2) of the Act is replaced by the following: C. 21 Calculation of tonnage (2) For the purposes of subsection (1), a ship’s gross tonnage shall be calculated in the manner described in section 29.1. Marine Liability an 5. Section 31 of the Act is replaced by the following: Amendment of limits 31. (1) The Governor in Council may, by regulation, amend Schedule 1 to implement an amendment that is made in accordance with Article 8 of the Protocol to any of the limits of liability that are specified in paragraph 1 of Article 6 or paragraph 1 of Article 7 of the Convention. Amendment of sections 28, 29 and 30 (2) The Governor in Council may, by regulation, amend the limits of liability set out in sections 28, 29 and 30. 6. The Act is amended by adding the following after section 34: REGULATIONS Governor in Council 34.1 The Governor in Council may make regulations (a) prescribing classes of persons for the purpose of paragraph 28(3)(d); and (b) generally for carrying out the purposes and provisions of this Part. 7. (1) Paragraph 36(1)(a) of the Act is replaced by the following: (a) the definition “ship” in Article 1 of the Convention shall be read as including any vessel or craft designed, used or capable of being used solely or partly for navigation, whether seagoing or not, but not including an air cushion vehicle or a vessel propelled manually by paddles or oars; and (2) Section 36 of the Act is amended by adding the following after subsection (2): Inconsistency (3) In the event of any inconsistency between this section and sections 35 and 37 to 40 of this Act and Articles 1 to 22 of the Convention, those sections prevail to the extent of the inconsistency. Responsabilité en matière m 8. Paragraph 37(2)(b) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after subparagraph (ii): (iii) a person carried on board a ship in pursuance of the obligation on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner could have prevented, and (iv) a stowaway, a trespasser or any other person who boards a ship without the consent or knowledge of the master or the owner. 9. The Act is amended by adding the following after section 37: Exception — adventure tourism activities 37.1 (1) This Part does not apply to an adventure tourism activity that meets the following conditions: (a) it exposes participants to an aquatic environment; (b) it normally requires safety equipment and procedures beyond those normally used in the carriage of passengers; (c) participants are exposed to greater risks than passengers are normally exposed to in the carriage of passengers; (d) its risks have been presented to the participants and they have accepted in writing to be exposed to them; and (e) any condition prescribed under paragraph 39(c). Exception — persons (2) This Part does not apply to the carriage of a sail trainee or a person who is a member of a class of persons prescribed under paragraph 39(d). 10. Sections 39 and 40 of the Act are replaced by the following: Governor in Council 39. The Governor in Council may make regulations C. 21 Marine Liability an (a) respecting insurance or other financial security to be maintained in respect of classes of carriage, ships or persons to cover liability under this Part up to the maximum amount set out in it; (b) respecting the form and manner in which proof of insurance or other financial security is provided; (c) prescribing any condition for the purpose of subsection 37.1(1); (d) prescribing classes of persons for the purpose of subsection 37.1(2); and (e) generally for carrying out the purposes and provisions of this Part. Amendment of limits 40. The Governor in Council may, by regulation, amend Schedule 2 to implement an amendment that is made in accordance with Article VIII of the Protocol to any of the limits of liability that are specified in paragraph 1 of Article 7 or in Article 8 of the Convention, including the deductibles referred to in that Article 8. 2001, c. 26, ss. 324(4) to (6), c. 27, s. 273.1(2); SOR/2003-353; 2003, c. 22, par. 225(z.6)(E) 11. The heading “INTERPRETATION” before section 47 and sections 47 to 131 of the Act are replaced by the following: DIVISION 1 INTERNATIONAL CONVENTIONS Interpretation Definitions 47. (1) The following definitions apply in this Division. “Bunkers Convention” « Convention sur les hydrocarbures de soute » “Bunkers Convention” means the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001, concluded at London on March 23, 2001. “Civil Liability Convention” « Convention sur la responsabilité civile » “Civil Liability Convention” means the International Convention on Civil Liability for Oil Pollution Damage, 1992, concluded at London on November 27, 1992, Article V of which was Responsabilité en matière m amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000. “discharge” « rejet » “Fund Convention” « Convention sur le Fonds international » “in bulk” « en vrac » “International Fund” « Fonds international » “owner” Version anglaise seulement “discharge”, in relation to oil and bunker oil, means a discharge of oil or bunker oil that directly or indirectly results in the oil or bunker oil entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping. “Fund Convention” means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992, concluded at London on November 27, 1992, Article 4 of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000. “in bulk” means in a hold or tank that is part of a ship’s structure, without any intermediate form of containment. “International Fund” means the International Oil Pollution Compensation Fund, 1992 established by Article 2 of the Fund Convention. “owner” (a) in relation to the Civil Liability Convention, has the same meaning as in Article I of that Convention; (b) in relation to the Fund Convention, has the same meaning as in Article I of the Civil Liability Convention and as shipowner within the meaning of the Fund Convention; (c) in relation to the Supplementary Fund Protocol, has the same meaning as in Article I of the Civil Liability Convention; and (d) in relation to the Bunkers Convention, has the same meaning as the definition “Shipowner” in Article 1 of that Convention. “Supplementary Fund” « Fonds complémentaire » “Supplementary Fund” means the International Oil Pollution Compensation Supplementary Fund, 2003 established by Article 2 of the Supplementary Fund Protocol. 8 “Supplementary Fund Protocol” « Protocole portant création d’un Fonds complémentaire » Words and expressions defined C. 21 Marine Liability an “Supplementary Fund Protocol” means the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992, concluded at London on May 16, 2003. (2) For the purposes of this Division and unless otherwise provided, words and expressions used in this Division have the same meaning as in the following applicable conventions: (a) Article I of the Civil Liability Convention; (b) Article 1 of the Fund Convention; (c) Article 1 of the Supplementary Fund Protocol; and (d) Article 1 of the Bunkers Convention. Inconsistency (3) In the event of an inconsistency between this section and sections 48 to 74 and 79 to 90 and the Civil Liability Convention, the Fund Convention, the Supplementary Fund Protocol or the Bunkers Convention, those sections prevail to the extent of the inconsistency. Civil Liability Convention Force of law 48. Articles I to XI, XII bis and 15 of the Civil Liability Convention — that are set out in Schedule 5 — have the force of law in Canada. Contracting State 49. (1) For the purposes of the application of the Civil Liability Convention, Canada is a Contracting State. Appropriate authority (2) For the purposes of the application of Article VII of that Convention, the Minister is the appropriate authority for Canada. Schedule 5 — limits amendment 50. The Governor in Council may, by regulation, amend Schedule 5 to implement an amendment — to the limits of liability that are specified in paragraph 1 of Article V of the Civil Liability Convention — that is made in accordance with Article 15 of that Convention. 2009 Liability for pollution and related costs Responsabilité en matière m 51. The liability of the owner of a ship in relation to preventive measures, for the purposes of the Civil Liability Convention, also includes (a) the costs and expenses incurred by the Minister of Fisheries and Oceans, a response organization within the meaning of section 165 of the Canada Shipping Act, 2001, any other person in Canada or any person in a state, other than Canada, that is a party to that Convention in respect of measures taken to prevent, repair, remedy or minimize pollution damage from the ship, including measures taken in anticipation of a discharge of oil from it, to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures; and (b) in relation to oil, the costs and expenses incurred by (i) the Minister of Fisheries and Oceans in respect of measures taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001, in respect of any monitoring under paragraph 180(1)(b) of that Act or in relation to any direction given under paragraph 180(1)(c) of that Act to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures, or (ii) any other person in respect of the measures that they were directed to take or refrain from taking under paragraph 180(1)(c) of the Canada Shipping Act, 2001 to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures. Admiralty Court’s jurisdiction — limitation fund 52. (1) The Admiralty Court has exclusive jurisdiction with respect to any matter relating to the constitution and distribution of a limitation fund under the Civil Liability Convention. Right to assert limitation defence (2) When a claim is made or apprehended against a person in respect of liability that is limited under the Civil Liability Convention, that person may assert their right to a limitation C. 21 Marine Liability an of liability by constituting a fund as required under that Convention and filing a defence, or by way of action or counterclaim for declaratory relief, in the Admiralty Court. Stay of proceedings (3) When a fund is constituted in the Admiralty Court, any other court, where an action asserting limitation of liability under the Civil Liability Convention has been commenced, shall stay the proceedings and refer all claims under that Convention to the Admiralty Court. Admiralty Court’s powers 53. (1) When a claim is made or apprehended against a person in respect of liability that is limited under the Civil Liability Convention, the Admiralty Court, on application by that person or any other interested person, may take any steps that it considers appropriate, including (a) determining the amount of the liability and providing for the constitution and distribution of a fund under that Convention; and (b) joining interested persons as parties to the proceedings, excluding any claimants who do not make a claim within the time limits set out in Article VIII of that Convention, requiring security from the person claiming limitation of liability or from any other interested person and requiring the payment of any costs. Admiralty Court may postpone distribution Procedural matters (2) In providing for the distribution of a fund under paragraph (1)(a) in relation to any liability, the Admiralty Court may, having regard to any claim that may subsequently be established before a court, tribunal or other authority outside Canada in respect of that liability, postpone the distribution of any part of the fund that it considers appropriate. (3) The Admiralty Court may (a) make any rule of procedure that it considers appropriate with respect to proceedings before it under this section; and Responsabilité en matière m (b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 3 of Article V of the Civil Liability Convention. Public notice 54. (1) The person constituting the fund shall, as soon as feasible, give notice of the fund’s constitution in the Canada Gazette and in a newspaper in general circulation in the region where the incident occurs. Proof of notice (2) Within 30 days after the fund’s constitution, the person constituting it shall file the public notices in the Admiralty Court. Court order in case of noncompliance (3) The Admiralty Court may issue any order that it deems appropriate to remedy the failure of the person to give any of the required public notices or the inadequacy of a notice. Absence of certificate 55. (1) Unless a ship carries a certificate described in Article VII of the Civil Liability Convention issued in accordance with subsection 56(1), showing that a contract of insurance or other security satisfying the requirements of that Article is in force in respect of a ship carrying, in bulk as cargo, more than 2 000 metric tons of oil, the ship must not (a) enter or leave a port in Canadian waters or in Canada’s exclusive economic zone or arrive at or leave an offshore terminal in Canadian waters or in Canada’s exclusive economic zone; or (b) if the ship is registered in Canada, enter or leave a port in any other state, whether or not the state is a party to that Convention, or arrive at or leave an offshore terminal (i) in the territorial sea or internal waters of any such state, or (ii) in the exclusive economic zone of any such state or, if the state has not established an exclusive economic zone, in an area beyond and adjacent to the territorial sea of the state, and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured. C. 21 Certificate to be produced on request (2) The master, a crew member or any person on board who is, or appears to be, in charge of the ship shall produce the certificate and give details of it at the request of any authorized officer of the Government of Canada. By whom certificate to be issued Marine Liability an 56. (1) The certificate shall be issued (a) by the Minister, if the ship is registered in Canada; (b) by or under the authority of the government of the state of registration, if the ship is registered in a state, other than Canada, that is a party to the Civil Liability Convention; or (c) by the Minister or by or under the authority of the government of a state, other than Canada, that is a party to the Civil Liability Convention, if the ship is registered in a state, other than Canada, that is not a party to that Convention. Issuance of certificate by Minister (2) On an application to the Minister for a certificate in respect of a ship registered in Canada or registered in a state, other than Canada, that is not a party to the Civil Liability Convention, the Minister shall issue the certificate to the owner of the ship, if he or she is satisfied that a contract of insurance or other security satisfying the requirements of Article VII of that Convention will be in force in respect of the ship throughout the period for which the certificate is issued. When Minister may refuse certificate (3) If the Minister believes that the guarantor will be unable to meet the guarantor’s obligations under the contract of insurance or other security referred to in subsection 55(1), or that the contract of insurance or other security will not cover the owner’s liability under the Civil Liability Convention, the Minister may refuse to issue the certificate. When Minister may revoke certificate (4) If the Minister believes that the guarantor is no longer able to meet the guarantor’s obligations under the contract of insurance or other security referred to in subsection 55(1), or that the contract of insurance or other security no longer covers the owner’s liability under the Civil Liability Convention, the Minister may revoke the certificate issued by him or her. Responsabilité en matière m Fund Convention Force of law 57. Articles 1 to 4, 6 to 10, 12 to 15, 36 ter, 29, 33 and 37 of the Fund Convention — that are set out in Schedule 6 — have the force of law in Canada. Contracting State 58. For the purposes of the application of the Fund Convention, Canada is a Contracting State. Schedule 6 — limits amendment 59. The Governor in Council may, by regulation, amend Schedule 6 to implement an amendment — to the limits of liability that are specified in paragraph 4 of Article 4 of the Fund Convention — that is made in accordance with Article 33 of that Convention. Meaning of “associated persons” 60. For the purposes of the application of the Fund Convention, if two bodies are affiliated with each other within the meaning of section 2 of the Canada Business Corporations Act, they are deemed to be “associated persons” within the meaning of “Associated person” in paragraph 2(b) of Article 10 of that Convention. Legal capacity of International Fund 61. For the purposes of the rights and obligations referred to in section 62, the International Fund has the capacity, rights and obligations of a natural person, and the Director of the International Fund is its legal representative. International Fund to be party to legal proceedings 62. (1) If a claimant commences an action against the owner of a ship or the owner’s guarantor in respect of a matter referred to in section 51 or Article III of the Civil Liability Convention, (a) the document commencing the proceedings shall be served on the International Fund and that Fund is then a party to the proceedings; and (b) the International Fund may appear and take any action that its Director considers appropriate for the proper administration of that Fund. Method of service on International Fund (2) In addition to any method of service permitted by the rules of the court in which a proceeding is commenced, service of documents on the International Fund under paragraph (1)(a) may be effected by registered mail. C. 21 Marine Liability an Supplementary Fund Protocol Force of law 63. Articles 1 to 15, 18, 20, 24, 25 and 29 of the Supplementary Fund Protocol — that are set out in Schedule 7 — have the force of law in Canada. Contracting State 64. For the purposes of the application of the Supplementary Fund Protocol, Canada is a Contracting State. Schedule 7 — limits amendment 65. The Governor in Council may, by regulation, amend Schedule 7 to implement an amendment — to the limits of liability that are in Article 4 of the Supplementary Fund Protocol — that is made in accordance with Article 24 of that Protocol. Meaning of “associated persons” 66. For the purposes of the application of the Supplementary Fund Protocol, if two bodies are affiliated with each other within the meaning of section 2 of the Canada Business Corporations Act, they are deemed to be “associated persons” within the meaning of “Associated person” in paragraph 2(b) of Article 10 of the Fund Convention. Legal capacity of Supplementary Fund 67. For the purposes of the rights and obligations referred to in section 68, the Supplementary Fund has the capacity, rights and obligations of a natural person, and the Director of the Supplementary Fund is its legal representative. Supplementary Fund to be party to legal proceedings 68. (1) If a claimant commences an action against the owner of a ship or the owner’s guarantor in respect of a matter referred to in section 51 or Article III of the Civil Liability Convention, (a) the document commencing the proceedings shall be served on the Supplementary Fund and that Fund is then a party to the proceedings; and (b) the Supplementary Fund may appear and take any action that its Director considers appropriate for the proper administration of that Fund. 2009 Method of service on Supplementary Fund Responsabilité en matière m (2) In addition to any method of service permitted by the rules of the court in which proceedings are commenced, service of documents on the Supplementary Fund under paragraph (1)(a) may be effected by registered mail. Bunkers Convention Force of law 69. Articles 1 to 10 of the Bunkers Convention — that are set out in Schedule 8 — have the force of law in Canada. State Party 70. (1) For the purposes of the application of the Bunkers Convention, Canada is a State Party. Appropriate authority (2) For the purposes of the application of Article 7 of the Bunkers Convention, the Minister is the appropriate authority for Canada. Liability for pollution and related costs 71. The liability of the owner of a ship in relation to preventive measures, for the purposes of the Bunkers Convention, also includes (a) the costs and expenses incurred by the Minister of Fisheries and Oceans, a response organization within the meaning of section 165 of the Canada Shipping Act, 2001, any other person in Canada or any person in a state, other than Canada, that is a party to that Convention in respect of measures taken to prevent, repair, remedy or minimize pollution damage from the ship, including measures taken in anticipation of a discharge of bunker oil from it, to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures; and (b) in relation to bunker oil, the costs and expenses incurred by (i) the Minister of Fisheries and Oceans in respect of measures taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001, in respect of any monitoring under paragraph 180(1)(b) of that Act or in relation to any direction given under paragraph 180(1)(c) of that Act to the extent that the measures taken and the C. 21 Marine Liability an costs and expenses are reasonable, and for any loss or damage caused by those measures, or (ii) any other person in respect of the measures that they were directed to take or refrain from taking under paragraph 180(1)(c) of the Canada Shipping Act, 2001 to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures. Application of Part 3 72. Part 3 applies to claims arising under the Bunkers Convention. Absence of certificate 73. (1) Unless a ship carries a certificate described in Article 7 of the Bunkers Convention issued in accordance with subsection 74(1), showing that a contract of insurance or other security satisfying the requirements of that Article is in force in respect of a ship having 1 000 gross tonnage or more, the ship must not (a) enter or leave a port in Canadian waters or in Canada’s exclusive economic zone or arrive at or leave an offshore terminal in Canadian waters or in Canada’s exclusive economic zone; or (b) if the ship is registered in Canada, enter or leave a port in any other state, whether or not the state is a party to that Convention, or arrive at or leave an offshore terminal (i) in the territorial sea or internal waters of any such state, or (ii) in the exclusive economic zone of any such state or, if the state has not established an exclusive economic zone, in an area beyond and adjacent to the territorial sea of the state, and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured. 2009 Certificate to be produced on request By whom certificate to be issued Responsabilité en matière m (2) The master, a crew member or any person on board who is, or appears to be, in charge of the ship shall produce the certificate and give details of it at the request of any authorized officer of the Government of Canada. 74. (1) The certificate shall be issued (a) by the Minister, if the ship is registered in Canada; (b) by or under the authority of the government of the state of registration, if the ship is registered in a state, other than Canada, that is a party to the Bunkers Convention; or (c) by the Minister or by or under the authority of the government of a state, other than Canada, that is a party to the Bunkers Convention, if the ship is registered in a state, other than Canada, that is not a party to that Convention. Designation by Minister (2) The Minister may designate a person to issue, refuse or revoke a certificate on the Minister’s behalf. Issuance of certificate by Minister (3) On an application to the Minister for a certificate in respect of a ship registered in Canada or registered in a state, other than Canada, that is not a party to the Bunkers Convention, the Minister shall issue the certificate to the owner of the ship, if he or she is satisfied that a contract of insurance or other security satisfying the requirements of Article 7 of that Convention will be in force in respect of the ship throughout the period for which the certificate is issued. When Minister may refuse certificate (4) If the Minister believes that the guarantor will be unable to meet the guarantor’s obligations under the contract of insurance or other security referred to in subsection 73(1), or that the contract of insurance or other security will not cover the owner’s liability under the Bunkers Convention, the Minister may refuse to issue the certificate. When Minister may revoke certificate (5) If the Minister believes that the guarantor is no longer able to meet the guarantor’s obligations under the contract of insurance or other security referred to in subsection 73(1), or that the contract of insurance or other security C. 21 Marine Liability an no longer covers the owner’s liability under the Bunkers Convention, the Minister may revoke the certificate issued by him or her. DIVISION 2 LIABILITY NOT COVERED BY DIVISION 1 Interpretation Definitions “discharge” « rejet » “oil” « hydrocarbures » “oil pollution damage” « dommages dus à la pollution par les hydrocarbures » “owner” « propriétaire » “pollutant” « polluant » 75. The following definitions apply in this Division. “discharge”, in relation to a pollutant, means a discharge of a pollutant that directly or indirectly results in the pollutant entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping. “oil” means oil of any kind or in any form and includes petroleum, fuel oil, sludge, oil refuse and oil mixed with wastes but does not include dredged spoil. “oil pollution damage”, in relation to any ship, means loss or damage outside the ship caused by contamination resulting from the discharge of oil from the ship. “owner” means the person who has for the time being, either by law or by contract, the rights of the owner of the ship with respect to its possession and use. “pollutant” means oil and any substance or class of substances identified by the regulations as a pollutant for the purposes of this Part and includes (a) a substance that, if added to any waters, would degrade or alter or form part of a process of degradation or alteration of the waters’ quality to an extent that their use would be detrimental to humans or animals or plants that are useful to humans; and (b) any water that contains a substance in such a quantity or concentration, or that has been so treated, processed or changed, by heat or other means, from a natural state that it would, if added to any waters, degrade or alter or form part of a process of degradation or alteration of the waters’ quality to an Responsabilité en matière m extent that their use would be detrimental to humans or animals or plants that are useful to humans. “pollution damage” « dommages dus à la pollution » “ship” « navire » “pollution damage”, in relation to any ship, means loss or damage outside the ship caused by contamination resulting from the discharge of a pollutant from the ship. “ship” means any vessel or craft designed, used or capable of being used solely or partly for navigation, without regard to its method of propulsion or lack of propulsion, and includes (a) a ship in the process of construction from the time that it is capable of floating; and (b) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up. Application Geographical application 76. This Division applies in respect of actual or anticipated pollution damage, except for pollution damage covered by Division 1, irrespective of the location of the actual or anticipated discharge of the pollutant and irrespective of the location where any preventive measures are taken, (a) on Canada’s territory or in Canadian waters; or (b) in Canada’s exclusive economic zone. Liability for pollution and related costs 77. (1) The owner of a ship is liable (a) for oil pollution damage from the ship; (b) for the costs and expenses incurred by the Minister of Fisheries and Oceans, a response organization within the meaning of section 165 of the Canada Shipping Act, 2001 or any other person in Canada in respect of measures taken to prevent, repair, remedy or minimize oil pollution damage from the ship, including measures taken in anticipation of a discharge of oil from it, to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures; and (c) for the costs and expenses incurred by C. 21 Marine Liability an (i) the Minister of Fisheries and Oceans in respect of measures taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001, in respect of any monitoring under paragraph 180(1)(b) of that Act or in relation to any direction given under paragraph 180(1)(c) of that Act to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures, or (ii) any other person in respect of the measures that they were directed to take or refrain from taking under paragraph 180(1)(c) of the Canada Shipping Act, 2001 to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures. Liability for environmental damage (2) If oil pollution damage from a ship results in impairment to the environment, the owner of the ship is liable for the costs of reasonable measures of reinstatement undertaken or to be undertaken. Strict liability subject to certain defences (3) The owner’s liability under subsections (1) and (2) does not depend on proof of fault or negligence, but the owner is not liable under those subsections if they establish that the occurrence (a) resulted from an act of war, hostilities, civil war or insurrection or from a natural phenomenon of an exceptional, inevitable and irresistible character; (b) was wholly caused by an act or omission of a third party with intent to cause damage; or (c) was wholly caused by the negligence or other wrongful act of any government or other authority that is responsible for the maintenance of lights or other navigational aids, in the exercise of that function. Responsabilité en matière m Owner’s rights against third parties (4) Nothing in this Division shall be construed as limiting or restricting any right of recourse that the owner of a ship who is liable under subsection (1) may have against another person. Owner’s own claim for costs and expenses (5) The costs and expenses incurred by the owner of a ship in respect of measures voluntarily taken by them to prevent, repair, remedy or minimize oil pollution damage from the ship, including measures taken in anticipation of a discharge of oil from it, to the extent that the measures taken and the costs and expenses are reasonable, rank equally with other claims against any security given by that owner in respect of their liability under this section. Limitation period (6) No action lies in respect of a matter referred to in subsection (1) unless it is commenced (a) if pollution damage occurs, within the earlier of (i) three years after the day on which the pollution damage occurs, and (ii) six years after the occurrence that causes the pollution damage or, if the pollution damage is caused by more than one occurrence having the same origin, six years after the first of the occurrences; or (b) if no pollution damage occurs, within six years after the occurrence. Application of Part 3 78. Part 3 applies to any claim referred to in section 77. DIVISION 3 GENERAL PROVISIONS Admiralty Court Jurisdiction 79. (1) The Admiralty Court has jurisdiction with respect to claims for compensation brought in Canada under any convention under Division 1 and claims for compensation under Division 2. Jurisdiction may be exercised in rem (2) The jurisdiction conferred on the Admiralty Court may be exercised in rem against the ship that is the subject of the claim, or against any proceeds of sale of the ship that have been paid into court. C. 21 Exempt ships and cargoes (3) No action in rem may be commenced in Canada against Marine Liability an (a) a warship, coast guard ship or police vessel; (b) a ship owned or operated by Canada or a province, or any cargo carried on such a ship, if the ship is engaged on government service; or (c) a ship owned or operated by a state, other than Canada, or any cargo carried on such a ship, with respect to a claim if, at the time the claim arises or the action is commenced, the ship is being used exclusively for noncommercial governmental purposes. Registration of Foreign Judgments Definitions “foreign judgment” « jugement étranger » 80. The following definitions apply in this section and in sections 81 to 89. “foreign judgment” means a judgment — of a court of a state, other than Canada, that is a party to one of the following conventions or the protocol — rendered under the (a) Civil Liability Convention within the meaning of subsection 47(1); (b) Fund Convention within the meaning of subsection 47(1); (c) Supplementary Fund Protocol within the meaning of subsection 47(1); (d) Bunkers Convention within the meaning of subsection 47(1). 2009 “judgment creditor” « bénéficiaire » “judgment debtor” « débiteur » Responsabilité en matière m “judgment creditor” means a person in whose favour a foreign judgment is rendered, and includes the person’s assigns, successors, heirs, executors, liquidators of the succession, administrators and legal representatives. “judgment debtor” means a person against whom a foreign judgment is rendered, and includes a person against whom the foreign judgment is enforceable under the law of the state in which it is rendered. Application 81. Sections 82 to 89 apply to a foreign judgment resulting from an occurrence that takes place after the convention or protocol under which the judgment is rendered comes into force in Canada. Registration of foreign judgment 82. (1) If a foreign judgment is rendered, the judgment creditor may, at any time during which it is enforceable under the law of the state in which it is rendered, apply to the Admiralty Court in accordance with its rules to have the foreign judgment registered in that Court. Court may register foreign judgment (2) The Admiralty Court may, subject to subsections (3) and (4) and section 85, order the registration of the foreign judgment if it is satisfied (a) that a case for registration has been made; and (b) that the foreign judgment is not under appeal and is no longer subject to appeal under the law of the state in which it was rendered. If judgment debtor appears (3) If, in accordance with the Admiralty Court’s rules, the judgment debtor appears at the hearing of the application for registration, that Court may not order the registration of the foreign judgment if it is satisfied that (a) the foreign judgment has been fully satisfied; (b) the foreign court acted without jurisdiction; (c) the foreign judgment was obtained by fraud; or (d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present their case. C. 21 If judgment partly satisfied (4) If the Admiralty Court is satisfied that the foreign judgment has been partly satisfied, it shall order the foreign judgment to be registered only in respect of the balance remaining payable. Pre-registration interest 83. For the purpose of section 82, a foreign judgment includes any interest, up to the date of registration, that has accrued on it under the law of the state in which it was rendered. Costs 84. Reasonable costs incurred by the judgment creditor related to the registration of the foreign judgment, including the cost of obtaining an exemplification or certified copy of it from the foreign court, are recoverable in the same manner as if they were amounts payable under the foreign judgment, and the costs are to be taxed by an Admiralty Court’s assessment officer and the assessment endorsed on the order for registration. Conversion to Canadian currency 85. (1) A foreign judgment expressed in a currency other than Canadian currency may not be registered under section 82 until the Admiralty Court determines the equivalent amount in Canadian currency on the basis of the rate of exchange prevailing on the day on which the foreign judgment is rendered, as that rate is ascertained from any bank in Canada, and, for the purpose of making that determination, that Court may require the judgment creditor to provide any evidence of the applicable rate of exchange that that Court considers necessary. Registered judgment to be in Canadian currency (2) When the equivalent amount in Canadian currency is determined, the Admiralty Court shall certify on the order for registration the amount so determined, and the foreign judgment, when registered, is deemed to be a judgment for payment of the amount so certified. Marine Liability an Responsabilité en matière m Effect of registration 86. Subject to section 87, a foreign judgment registered under section 82 has, as of the date of registration, the same force and effect as a judgment of the Admiralty Court’s rendered on that date. Service of notice of registration 87. If a foreign judgment is registered under section 82 after an ex parte hearing, execution of the registered judgment may not issue until the expiry of 30 days after the day on which the judgment debtor is served with a notice of registration of the foreign judgment in the manner set out in the Admiralty Court’s rules for the service of originating documents. Application to set aside registration 88. (1) At any time after a foreign judgment is registered under section 82, the judgment debtor may apply to the Admiralty Court, in accordance with its rules, to have the registration of the judgment set aside on any of the grounds set out in subsection (2). Grounds for setting aside registration (2) The Admiralty Court shall set aside the registration of the foreign judgment if it is satisfied that (a) the foreign judgment has been fully or partly satisfied; (b) the foreign court acted without jurisdiction; (c) the foreign judgment was obtained by fraud; (d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present their case; (e) the registration of the foreign judgment was obtained by fraud; (f) an error was made in the conversion of the foreign judgment to Canadian currency under section 85; (g) the registered judgment included interest on the foreign judgment to which the judgment creditor was not entitled; or (h) for any other reason, it erred in registering the foreign judgment. C. 21 Reduction of registered amount (3) If the Admiralty Court sets aside the registration of a foreign judgment on the ground that it has been partly satisfied, or on the ground referred to in paragraph (2)(f) or (g), it shall order the foreign judgment to be registered in the reduced amount. Application for stay of execution 89. (1) At any time after a foreign judgment is registered under section 82, the judgment debtor may apply to the Admiralty Court, in accordance with its rules, to have the execution of the registered judgment stayed on the grounds that an application to set aside the registration has been made under subsection 88(1), and, if that Court is satisfied that the application has been made, it may stay the execution of the judgment either absolutely or for the period and on the terms and conditions that it considers appropriate and may, on further evidence, vary or terminate a stay of execution. Grounds exclusive (2) Execution of a registered judgment may only be stayed on the grounds that an application to set aside the registration has been made under subsection 88(1). Marine Liability an Regulations Governor in Council 90. The Governor in Council may make regulations (a) imposing a fee for the issuance of a certificate under section 56 or 74; (b) respecting conditions under which certificates may be issued, refused or revoked for the purposes of subsections 56(2) to (4); (c) respecting the form and content of the notice to be given under subsection 54(1); (d) extending the application of the Bunkers Convention, within the meaning of subsection 47(1), to ships or classes of ships excluded from the application of that Convention and specifying the terms and conditions that are applicable to those ships or classes of ships under Article 4 of that Convention; Responsabilité en matière m (e) providing that Article 7 of the Bunkers Convention, within the meaning of subsection 47(1), does not apply to ships or classes of ships operating exclusively within the area referred to in Article 2(a)(i) of that Convention; (f) governing the performance of the functions of a person designated under subsection 74(2); (g) respecting conditions under which certificates may be issued, refused or revoked for the purposes of subsections 74(3) to (5); and (h) generally for carrying out the purposes and provisions of this Part. PART 7 SHIP-SOURCE OIL POLLUTION FUND INTERPRETATION Definitions “discharge” « rejet » “in bulk” « en vrac » “oil” « hydrocarbures » 91. (1) The following definitions apply in this Part. “discharge”, in relation to oil, means a discharge of oil that directly or indirectly results in the oil entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping. “in bulk” means in a hold or tank that is part of a ship’s structure, without any intermediate form of containment. “oil” means oil of any kind or in any form and includes petroleum, fuel oil, sludge, oil refuse and oil mixed with wastes but does not include dredged spoil. “oil pollution damage” « dommages dus à la pollution par les hydrocarbures » “oil pollution damage”, in relation to a ship, means loss or damage outside the ship caused by contamination resulting from the discharge of oil from the ship. “owner” « propriétaire » “owner” (a) in relation to a ship subject to the Civil Liability Convention, has the same meaning as in Article I of that Convention; C. 21 Marine Liability an (b) in relation to a ship subject to the Bunkers Convention, has the same meaning as the definition “Shipowner” in Article 1 of that Convention; and (c) in relation to any other ship, means the person who has for the time being, either by law or by contract, the rights of the owner of the ship with respect to its possession and use. “ship” « navire » “ship” means any vessel or craft designed, used or capable of being used solely or partly for navigation, without regard to its method of propulsion or lack of propulsion, and includes (a) a ship in the process of construction from the time that it is capable of floating; and (b) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up. “Ship-source Oil Pollution Fund” « Caisse d’indemnisation » “Ship-source Oil Pollution Fund” means the Ship-source Oil Pollution Fund continued by section 92. Other definitions (2) In this Part, “Bunkers Convention”, “Civil Liability Convention”, “Fund Convention”, “International Fund”, “Supplementary Fund” and “Supplementary Fund Protocol” have the same meaning as in subsection 47(1). SHIP-SOURCE OIL POLLUTION FUND Ship-source Oil Pollution Fund continued 92. (1) The account known as the Shipsource Oil Pollution Fund in the accounts of Canada is continued. Credits (2) The following shall be credited to the Ship-source Oil Pollution Fund: (a) all payments received under sections 112 and 115; (b) interest computed in accordance with section 93; and (c) any amounts recovered by the Administrator under paragraph 106(3)(c). 2009 Charges Responsabilité en matière m (3) The following shall be charged to the Ship-source Oil Pollution Fund: (a) all amounts that are directed by the Administrator to be paid under paragraph 106(3)(a) or 108(1)(a), subsection 108(6) or section 117 or under a settlement; (b) all amounts for which the Administrator is liable under subsection 117(3); (c) all interest to be paid under section 116; (d) all costs and expenses that are directed to be paid under section 98; (e) the remuneration and expenses of assessors that are directed to be paid under subsection 108(2); and (f) the amount of any judgment and any costs awarded against that Fund in litigation. Interest to be credited to Fund 93. The Minister of Finance shall, at the times that the Governor in Council directs, credit to the Ship-source Oil Pollution Fund interest at a rate fixed by the Governor in Council on the balance from time to time of that Fund. ADMINISTRATOR AND DEPUTY ADMINISTRATOR Appointment of Administrator 94. (1) The Governor in Council may appoint an Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause. Reappointment of Administrator (2) The Administrator is eligible for reappointment on the expiry of his or her term of office. Continuation in office (3) If an Administrator is not appointed to take office on the expiry of the incumbent Administrator’s term, the incumbent continues to hold office until the earlier of the date fixed by the Governor in Council and the day on which a successor is appointed. C. 21 Deputy Administrator 95. (1) The Governor in Council may appoint a Deputy Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause. Reappointment of Deputy Administrator (2) The Deputy Administrator is eligible for reappointment on the expiry of his or her term of office. Resignation 96. The resignation of an Administrator or Deputy Administrator becomes effective at the time that the Minister receives a written resignation from him or her or at the time specified in the resignation, whichever is later. Independent of Crown 97. (1) The Administrator or Deputy Administrator shall not, while holding office, accept or hold any office or employment inconsistent with his or her duties and functions under this Part. Effect of contravention of subsection (1) (2) If the Administrator or Deputy Administrator contravenes subsection (1), his or her appointment is terminated on a date fixed by the Governor in Council that is not later than 30 days after notice of the contravention is received by the Minister, but the contravention does not affect the validity of any act performed by the Administrator or Deputy Administrator, as the case may be, on behalf of the Ship-source Oil Pollution Fund between the date of the contravention and the date that the appointment is terminated. Costs, expenses and fees 98. (1) On the direction of the Minister of Finance, all costs and expenses incurred by the Administrator and the Deputy Administrator in performing their duties and functions under this Part, and any fees for services rendered by the Administrator or Deputy Administrator calculated in accordance with a tariff prescribed by the regulations, shall be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund. Taxation (2) The Admiralty Court’s assessment officers may, at the request of the Minister of Justice, tax any account for costs, expenses or fees submitted by the Administrator or Deputy Administrator to the Minister of Finance as if Marine Liability an Responsabilité en matière m the Administrator or Deputy Administrator were acting for the Crown in proceedings in that Court, but, on any such taxation, no fee may be allowed in excess of that set out in the tariff referred to in subsection (1). Deputy Administrator’s duties and functions 99. (1) The Deputy Administrator shall perform the duties and functions consistent with this Part that are assigned to him or her by the Administrator. Administrator’s absence or incapacity (2) If the Administrator is absent or incapacitated or the office of Administrator is vacant, the Deputy Administrator has all the powers and duties of the Administrator. Professional and technical assistance 100. The Administrator may, for the purpose of fulfilling his or her functions, including performing his or her duties under this Part, obtain the professional, technical and other advice and assistance that he or she considers necessary. LIABILITY OF SHIP-SOURCE OIL POLLUTION FUND Liability of Shipsource Oil Pollution Fund 101. (1) Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable for the matters referred to in sections 51, 71 and 77 in relation to oil, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention, if (a) all reasonable steps have been taken to recover payment of compensation from the owner of the ship or, in the case of a ship within the meaning of Article I of the Civil Liability Convention, from the International Fund and the Supplementary Fund, and those steps have been unsuccessful; (b) the owner of a ship is not liable by reason of any of the defences described in subsection 77(3), Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention and neither the International Fund nor the Supplementary Fund are liable; (c) the claim exceeds (i) in the case of a ship within the meaning of Article I of the Civil Liability Convention, the owner’s maximum liability under that Convention to the extent that the C. 21 Marine Liability an excess is not recoverable from the International Fund or the Supplementary Fund, and (ii) in the case of any other ship, the owner’s maximum liability under Part 3; (d) the owner is financially incapable of meeting their obligations under section 51 and Article III of the Civil Liability Convention, to the extent that the obligation is not recoverable from the International Fund or the Supplementary Fund; (e) the owner is financially incapable of meeting their obligations under section 71 and Article 3 of the Bunkers Convention; (f) the owner is financially incapable of meeting their obligations under section 77; (g) the cause of the oil pollution damage is unknown and the Administrator has been unable to establish that the occurrence that gave rise to the damage was not caused by a ship; or (h) the Administrator is a party to a settlement under section 109. Exception — drilling activities (2) This Part does not apply to a drilling ship that is on location and engaged in the exploration or exploitation of the seabed or its subsoil in so far as an escape or discharge of oil emanates from those activities. Exception — floating storage units (3) This Part does not apply to a floating storage unit or floating production, storage and offloading unit unless it is carrying oil as a cargo on a voyage to or from a port or terminal outside an offshore oil field. Action by Administrator Responsabilité en matière m 102. (1) If there is an occurrence that gives rise to the liability of an owner of a ship under section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention, (a) the Administrator may, either before or after receiving a claim under section 103, commence an action in rem against the ship that is the subject of the claim, or against any proceeds of sale of the ship that have been paid into court; and (b) subject to subsection (3), the Administrator is entitled in any such action to claim security in an amount not less than the owner’s maximum aggregate liability determined in accordance with section 71 or 77, or Article V of the Civil Liability Convention. Subrogation (2) The Administrator may continue the action only if he or she has become subrogated to the rights of the claimant under paragraph 106(3)(c). Entitlement to claim security (3) The Administrator is not entitled to claim security under subsection (1) if (a) in the case of a ship within the meaning of Article I of the Civil Liability Convention, a fund has been constituted under subsection 52(2); and (b) in the case of any other ship, a fund has been constituted under Article 11 of the Convention as defined in section 24. Claims filed with Administrator 103. (1) In addition to any right against the Ship-source Oil Pollution Fund under section 101, a person who has suffered loss or damage or incurred costs or expenses referred to in section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention in respect of actual or anticipated oil pollution damage may file a claim with the Administrator for the loss, damage, costs or expenses. C. 21 Limitation period (2) Unless the Admiralty Court fixes a shorter period under paragraph 111(a), a claim must be made Marine Liability an (a) within two years after the day on which the oil pollution damage occurs and five years after the occurrence that causes that damage; or (b) if no oil pollution damage occurs, within five years after the occurrence in respect of which oil pollution damage is anticipated. Exception (3) Subsection (1) does not apply to a response organization referred to in paragraph 51(a), 71(a) or 77(1)(b) or a person in a state other than Canada. Liability — exception 104. Sections 101 and 103 do not apply in respect of actual or anticipated oil pollution damage (a) on the territory or in the territorial sea or internal waters of a state, other than Canada, that is a party to the Civil Liability Convention or the Bunkers Convention; or (b) in the exclusive economic zone of a state referred to in paragraph (a) or, if the state has not established an exclusive economic zone, in an area beyond and adjacent to the territorial sea of that state and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured. Administrator’s duties 105. (1) On receipt of a claim under section 103, the Administrator shall (a) investigate and assess it; and (b) make an offer of compensation to the claimant for whatever portion of it that the Administrator finds to be established. Administrator’s powers (2) For the purpose of investigating and assessing a claim, the Administrator has the powers of a commissioner under Part I of the Inquiries Act. Factors to be considered (3) When investigating and assessing a claim, the Administrator may consider only (a) whether it is for loss, damage, costs or expenses referred to in subsection 103(1); and Responsabilité en matière m (b) whether it resulted wholly or partially from (i) an act done or omitted to be done by the claimant with intent to cause damage, or (ii) the claimant’s negligence. Cause of occurrence (4) A claimant is not required to satisfy the Administrator that the occurrence was caused by a ship, but the Administrator shall dismiss a claim if he or she is satisfied on the evidence that the occurrence was not caused by a ship. When claimant at fault (5) The Administrator shall reduce or nullify any amount that he or she would have otherwise assessed in proportion to the degree to which he or she is satisfied that the claim resulted from (a) an act done or omitted to be done by the claimant with intent to cause damage; or (b) the claimant’s negligence. Offer of compensation 106. (1) If the Administrator makes an offer of compensation to a claimant under paragraph 105(1)(b), the claimant shall, within 60 days after receiving the offer, notify the Administrator whether they accept or refuse it and, if no notification is received by the Administrator at the end of that period, the claimant is deemed to have refused the offer. Appeal to Admiralty Court (2) A claimant may, within 60 days after receiving an offer of compensation or a notification that the Administrator has disallowed the claim, appeal the adequacy of the offer or the disallowance of the claim to the Admiralty Court, but in an appeal from the disallowance of a claim, that Court may consider only the matters described in paragraphs 105(3)(a) and (b). Acceptance of offer by claimant (3) If a claimant accepts the offer of compensation from the Administrator, (a) the Administrator shall without delay direct payment to be made to the claimant of the amount of the offer out of the Shipsource Oil Pollution Fund; (b) the claimant is then precluded from pursuing any rights that they may have had against any person in respect of matters referred to in sections 51, 71 and 77, Article C. 21 Marine Liability an III of the Civil Liability Convention and Article 3 of the Bunkers Convention in relation to the occurrence to which the offer of compensation relates; (c) the Administrator is, to the extent of the payment to the claimant, subrogated to any rights of the claimant referred to in paragraph (b); and (d) the Administrator shall take all reasonable measures to recover the amount of the payment from the owner of the ship, the International Fund, the Supplementary Fund or any other person liable and, for that purpose, the Administrator may commence an action in the Administrator’s or the claimant’s name, including a claim against the fund of the owner of a ship established under the Civil Liability Convention and may enforce any security provided to or enforceable by the claimant. CLAIMS FOR LOSS OF INCOME Meaning of terms Definition of “claimant” 107. (1) In this section, “fish”, “fishing” and “fishing vessel” have the same meaning as in section 2 of the Fisheries Act. (2) In this section, “claimant” means (a) an individual who derives income from fishing, from the production, breeding, holding or rearing of fish, or from the culture or harvesting of marine plants; (b) the owner of a fishing vessel who derives income from the rental of fishing vessels to holders of commercial fishing licences issued in Canada; (c) an individual who derives income from the handling of fish on shore in Canada directly after they are landed from fishing vessels; (d) an individual who fishes or hunts for food or animal skins for their own consumption or use; (e) a person who rents or charters boats in Canada for sport fishing; or Responsabilité en matière m (f) a worker in a fish plant in Canada, excluding a person engaged exclusively in supervisory or managerial functions, except in the case of a family-type co-operative operation that has a total annual throughput of less than 1 400 metric tons or an annual average number of employees of fewer than 50. Filing of claim with Administrator (3) Subject to this section, a claimant who suffers or will suffer a loss of income, or in the case of an individual described in paragraph (2)(d), a loss of a source of food or animal skins, resulting from a discharge of oil from a ship that is not recoverable under Part 6 may file a claim with the Administrator for that loss or future loss (a) within three years after the day on which the discharge of the oil occurs or first occurred, as the case may be, or could reasonably be expected to have become known to the claimant; and (b) within six years after the occurrence that causes the discharge. Limitations (4) The right to file a claim under this section is limited to claimants who (a) were lawfully carrying on an activity described in subsection (2); and (b) except in the case of individuals described in paragraph (2)(d), (i) are Canadian citizens or permanent residents within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, in the case of an individual, or (ii) are incorporated by or under the laws of Canada or a province, in the case of a corporation. C. 21 Cause of occurrence (5) A claimant is not required to satisfy the Administrator that the occurrence was caused by a ship, but the Administrator shall dismiss a claim if he or she is satisfied on the evidence that the occurrence was not caused by a ship. Period for filing claim may be shortened (6) The Admiralty Court may, by an order made under paragraph 111(a), shorten the period referred to in subsection (3) for filing a claim under that subsection. Administrator’s responsibility 108. (1) On receipt of a claim filed under section 107, the Administrator shall Marine Liability an (a) if he or she considers the action appropriate for the proper administration of the Ship-source Oil Pollution Fund, direct payment to be made to the claimant of the amount of the loss alleged in the claim or otherwise agreed on between the Administrator and the claimant; or (b) in any other case, transmit the claim to the Minister. Appointment of assessors (2) On receipt of a claim from the Administrator under paragraph (1)(b), the Minister shall (a) after consulting with the Minister of Fisheries and Oceans, the Minister of the Environment and the Administrator, appoint as assessors one or more persons not employed in the public service, as defined in subsection 3(1) of the Public Service Superannuation Act; and (b) fix the remuneration and expenses to be paid to the person or persons while they are acting as assessors and authorize the Administrator to direct payment of the remuneration and expenses to them. Assessment of loss (3) For the purpose of assessing a loss alleged by a claimant under section 107, an assessor or assessors, in this section referred to as “the assessor”, (a) after giving reasonable notice to the Administrator and the claimant, shall meet with the Administrator and the claimant or their representatives; Responsabilité en matière m (b) may receive and consider any written or oral evidence submitted to the assessor by or on behalf of the Administrator or the claimant, whether or not the evidence would be admissible before a court; and (c) has all the powers of a commissioner under Part I of the Inquiries Act. Report to Minister (4) The assessor shall, within 60 days after their appointment or within any longer period that is agreed to by the Minister, report to the Minister whether, in their opinion, the following requirements have been met: (a) the loss alleged by the claimant has been established; (b) the loss resulted from the discharge of oil from a ship; and (c) the loss is not recoverable otherwise than under this Part. Amount of loss (5) If the assessor reports that the requirements of subsection (4) have been met, the report must set out the amount of the loss as assessed by them. Payment of assessed loss out of Fund (6) On receipt of the report, the Minister shall without delay forward a copy of it to the claimant and to the Administrator, who shall direct payment to be made to the claimant out of the Ship-source Oil Pollution Fund of an amount equal to the amount, if any, of the assessed loss set out in the report. PROCEEDINGS AGAINST THE OWNER OF A SHIP Proceedings against owner of ship 109. (1) If a claimant commences proceedings against the owner of a ship or the owner’s guarantor in respect of a matter referred to in section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention, except in the case of proceedings based on paragraph 77(1)(c) commenced by the Minister of Fisheries and Oceans in respect of a pollutant other than oil, (a) the document commencing the proceedings shall be served on the Administrator by delivering a copy of it personally to him or C. 21 Marine Liability an her, or by leaving a copy at his or her last known address, and the Administrator is then a party to the proceedings; and (b) the Administrator shall appear and take any action, including being a party to a settlement either before or after judgment, that he or she considers appropriate for the proper administration of the Ship-source Oil Pollution Fund. If Administrator party to settlement (2) If the Administrator is a party to a settlement under paragraph (1)(b), he or she shall direct payment to be made to the claimant of the amount that the Administrator has agreed to pay under the settlement. LIMIT OF LIABILITY OF SHIP-SOURCE OIL POLLUTION FUND Limit of liability in first year 110. (1) The maximum aggregate liability of the Ship-source Oil Pollution Fund under sections 101, 103 and 107 and under any settlement, in respect of any particular occurrence, is (a) $100,000,000 if the occurrence took place in the year ending March 31, 1990; or (b) an amount calculated in accordance with subsection (2), if the occurrence takes place in any following year. Annual adjustment of limit of liability (2) The $100,000,000 limit of liability shall be adjusted annually so that the limit of liability arising out of any given occurrence that takes place in any following year is an amount equal to the product obtained by multiplying (a) the limit of liability that would have been applicable for that following year if no adjustment had been made under this section with respect to that following year by (b) the ratio that the Consumer Price Index, excluding the food and energy components, for the 12-month period ending on December 31 next before that following year bears to the Consumer Price Index, excluding the food and energy components, for the 12-month period next before that 12-month period. 2009 Consumer Price Index Responsabilité en matière m (3) For the purpose of this section, (a) a reference to the “Consumer Price Index, excluding the food and energy components,” for any 12-month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period; (b) the Governor in Council may, on the recommendation of the Minister, make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any 12-month period is to be determined and the manner of expressing any such average that is determined to be a fraction of a whole number; (c) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any 12-month period that is used for the purpose of calculating the limit of liability of the Shipsource Oil Pollution Fund under this section; and (d) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section. Adjusted limit to be published annually (4) The Minister shall cause the limit of liability referred to in subsection (1), adjusted in accordance with this section, to be published in the Canada Gazette each year as soon as it is available, and the limit of liability so published is admissible in any proceeding under this Part as conclusive proof of that limit of liability for the year in question. C. 21 Applying to Admiralty Court for directions 111. If the Admiralty Court, on the application of the Administrator and on notice to other interested parties that that Court considers just in the circumstances, is satisfied that, in respect of a particular occurrence, the aggregate liability of the Ship-source Oil Pollution Fund under sections 101, 103 and 107 and subsection 109(2) may exceed its limit of liability under section 110, that Court may Marine Liability an (a) order the exclusion of any claimants who do not file their claims with the Administrator within the period that that Court directs; and (b) order that payment out of the Ship-source Oil Pollution Fund of established claims be prorated or postponed, or any combination of prorating and postponement. LEVIES TO BE PAID TO THE SHIP-SOURCE OIL POLLUTION FUND, THE INTERNATIONAL FUND AND THE SUPPLEMENTARY FUND Definition of “oil” 112. (1) In this section and sections 115 and 118, “oil” means “Contributing Oil” as defined in paragraph 3 of Article 1 of the Fund Convention if a levy is to be paid under that Convention or as defined in paragraph 7 of Article 1 of the Supplementary Fund Protocol if a levy is to be paid under that Protocol. Levy on shipments of oil in bulk (2) If a levy determined in accordance with section 113 is imposed or re-imposed by the Minister under subsection 114(1), it shall be paid to the Receiver General (a) in respect of each metric ton of oil in excess of 300 metric tons imported by ship into Canada in bulk as cargo; and (b) in respect of each metric ton of oil in excess of 300 metric tons shipped from a place in Canada in bulk as cargo of a ship. Responsabilité en matière m 2009 When payable (3) The amounts payable under subsection (2) shall be paid, or security for payment of those amounts in an amount and form that is satisfactory to the Minister shall be given, (a) in the case of oil imported by ship into Canada in bulk as cargo, before the oil is unloaded from the ship; and (b) in the case of oil shipped from a place in Canada in bulk as cargo of a ship, before the ship leaves the facility where the oil is loaded on board the ship. Debts due to Her Majesty (4) All amounts payable under subsection (2) and any interest payable on those amounts are debts due to Her Majesty in right of Canada and are recoverable in any court of competent jurisdiction from (a) in the case of oil imported by ship into Canada in bulk as cargo, the owner, consignee or shipper of the oil; and (b) in the case of oil shipped from a place in Canada in bulk as cargo of a ship, the owner, consignor or shipper of the oil. Amount of levy in first year 113. (1) The levy referred to in subsection 112(2) is 30 cents in the year ending on March 31, 1990. Annual adjustment of levy (2) The levy referred to in subsection (1) shall be adjusted annually so that the levy in any following year is an amount equal to the product obtained by multiplying (a) the levy that would have been payable in that following year if no adjustment had been made under this section with respect to that following year by (b) the ratio that the Consumer Price Index, excluding the food and energy components, for the 12-month period ending on December 31 next before that following year bears to the Consumer Price Index, excluding the food and energy components, for the 12-month period next before that 12-month period. 44 Consumer Price Index C. 21 Marine Liability an (3) For the purpose of this section, (a) a reference to the “Consumer Price Index, excluding the food and energy components,” for any 12-month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period; (b) the Governor in Council may, on the recommendation of the Minister, make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any 12-month period is to be determined and the manner of expressing any such average that is determined to be a fraction of a whole number; (c) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any 12-month period that is used for the purpose of calculating the levy under this section; and (d) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section. Adjusted levy to be published annually (4) The Minister shall cause the levy referred to in subsection 112(2), adjusted in accordance with this section, to be published in the Canada Gazette each year as soon as it is available, and the levy so published is admissible in any proceeding under this Part as conclusive proof of the levy for the year in question. Responsabilité en matière m Discontinuation or re-imposition of levy 114. (1) The Minister, after consultation with the Minister of Fisheries and Oceans and the Minister of the Environment, may, by order, impose, discontinue or re-impose the levy referred to in subsection 112(2). Annual adjustment of levy unaffected (2) The discontinuation of the levy under subsection (1) does not affect the operation of section 113. Interest on unpaid amounts 115. If any portion of a levy is not paid as required by subsection 112(3), interest may be charged on the amount from time to time outstanding, at a rate fixed by the Governor in Council on the recommendation of the Minister of Finance, calculated from the time when the oil is unloaded from the ship or when the ship on which the oil is loaded leaves the facility at which it is loaded, as the case may be. Claimants entitled to interest 116. (1) Interest accrues on a claim under this Part against an owner of a ship, the owner’s guarantor, the Ship-source Oil Pollution Fund, the International Fund or the Supplementary Fund at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act as are in effect from time to time. Time from which interest accrues (2) Interest accrues on a claim under this Part (a) if the claim is based on paragraph 77(1)(a) or on Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention, from the day on which the oil pollution damage occurs; (b) if the claim is based on section 51 or 71 or paragraph 77(1)(b) or (c), or on Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention as they pertain to preventive measures, (i) in the case of costs and expenses, from the day on which they are incurred, or (ii) in the case of loss or damage, from the day on which the loss or damage occurs; or (c) if the claim is based on section 107, from the time when the loss of income occurs. C. 21 Payments by Canada to International Fund and Supplementary Fund 117. (1) The Administrator shall direct payments to be made out of the Ship-source Oil Pollution Fund to the International Fund in accordance with Articles 10 and 12 of the Fund Convention and to the Supplementary Fund in accordance with Articles 10 and 12 of the Supplementary Fund Protocol. Communication of information (2) The Administrator shall communicate to the Minister and Marine Liability an (a) the Director of the International Fund, the information referred to in Article 15 of the Fund Convention, in accordance with that Article; or (b) the Director of the Supplementary Fund, the information referred to in Article 13 of the Supplementary Fund Protocol, in accordance with that Article. Administrator’s liability (3) The Administrator is liable for any financial loss to the International Fund or the Supplementary Fund, as the case may be, as a result of a failure to communicate the information. Administrator’s powers (4) The Administrator may, for the purpose of subsection (2), (a) at any reasonable time, enter any place where he or she believes on reasonable grounds that there are any records, books of account, accounts, vouchers or other documents relating to information referred to in Article 15 of the Fund Convention or Article 13 of the Supplementary Fund Protocol, as the case may be; (b) examine anything at the place and copy or take away for further examination or copying any record, book of account, account, voucher or other document that he or she believes, on reasonable grounds, contains any such information; and Responsabilité en matière m (c) require the owner, occupier or person in charge of the place to give the Administrator all reasonable assistance in connection with the examination and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge to attend at the place with the Administrator. No obstruction or false statements (5) No person shall obstruct or hinder the Administrator in the exercise of any powers under subsection (4) or knowingly make a false or misleading statement, either orally or in writing, to the Administrator while he or she is exercising those powers. Warrant required to enter dwelling place (6) A dwelling place may not be entered under subsection (4) unless it is entered with the occupant’s consent or under the authority of a warrant issued under subsection (7). Authority to issue warrant (7) On ex parte application, a justice, within the meaning of section 2 of the Criminal Code, may issue a warrant authorizing the Administrator to enter a dwelling place, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that (a) the dwelling place is a place referred to in paragraph (4)(a); (b) entry to the dwelling place is necessary for the purposes of subsection (2); and (c) entry to the dwelling place has been refused or there are reasonable grounds to believe that it will be refused. Records and books of account 118. (1) Every person referred to in subsection 112(4) from whom the levy payable under section 112 may be recovered shall keep at their place of business in Canada, or at any other place in Canada that may be designated by the Minister, records and books of account that set out (a) the amounts that are payable by that person under that section; (b) the type and quantity of the oil in respect of which the amounts referred to in paragraph (a) are payable; C. 21 Marine Liability an (c) the time when and place where the amounts referred to in paragraph (a) were paid or security for their payment was given in accordance with subsection 112(3); and (d) any other information that the Minister may require to determine the amounts referred to in paragraph (a) and the time when they become payable. Disposal of records (2) Every person who is required by this section to keep records and books of account shall, unless otherwise authorized by the Minister, retain those records and books of account, and every account or voucher necessary to verify the information contained in them, until the expiry of six years after the end of the year to which the records or books of account relate. Examination of records (3) Every person who is required by this section to keep records and books of account shall, at all reasonable times, make the records and books of account, and every account or voucher necessary to verify the information contained in them, available to any person designated in writing by the Minister and give that person every facility necessary to examine them. Inspection 119. (1) Any person designated in writing by the Minister for the purpose may, at any reasonable time, enter any place where the person believes on reasonable grounds that there are any records, books of account, accounts, vouchers or other documents relating to amounts payable under section 112 and (a) examine anything at the place and copy or take away for further examination or copying any record, book of account, account, voucher or other document that they believe, on reasonable grounds, contains any information relevant to the enforcement of this Part; and (b) require the owner, occupier or person in charge of the place to give the designated person all reasonable assistance in connection with the examination under paragraph (a) and to answer all proper questions relating to the Responsabilité en matière m examination and, for that purpose, require the owner, occupier or person in charge to attend at that place with the designated person. Warrant to enter dwelling place (2) A designated person may not enter a dwelling place unless they enter it with the occupant’s consent or under the authority of a warrant issued under subsection (3). Authority to issue warrant (3) On ex parte application, a justice, within the meaning of section 2 of the Criminal Code, may issue a warrant authorizing the designated person to enter a dwelling place, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that (a) the dwelling place is a place referred to in subsection (1); (b) entry to the dwelling place is necessary for the purpose of subsection (1); and (c) entry to the dwelling place has been refused or there are reasonable grounds to believe that it will be refused. Certificate of designation (4) The persons designated by the Minister shall be provided with a certificate of their designation and, on entering any place referred to in subsection (1), shall produce the certificate on request to the owner, occupier or person in charge of the place. Report to Minister (5) On the conclusion of an examination under this section, the designated person shall provide a report of their findings to the Minister. Return of original or copy of documents (6) The original or a copy of any record, book of account, account, voucher or other document that is taken away under paragraph (1)(a) shall be returned to the person from whose custody it is taken within 21 days after it is taken or within any longer period that is directed by a judge of a superior court for cause or agreed to by a person who is entitled to its return. Notice of application for extension of time (7) An application to a judge referred to in subsection (6) for a direction under that subsection may only be made on notice to the person from whose custody the record, book of account, account, voucher or other document is taken. C. 21 Copies of documents (8) A document purporting to be certified by the Minister to be a copy of a record, book of account, account, voucher or other document made under paragraph (1)(a) is admissible in evidence in any prosecution for an offence under this Part and is, in the absence of evidence to the contrary, proof of its contents. Obstruction and false statements (9) No person shall obstruct or hinder anyone engaged in carrying out their duties and functions under this section, or knowingly make a false or misleading statement, either orally or in writing, to any person so engaged. Marine Liability an GOVERNANCE OF THE SHIP-SOURCE OIL POLLUTION FUND Books of account and systems 120. (1) The Administrator shall cause (a) books of account and records in relation to them to be kept; and (b) control and information systems and management practices, related to financial and management matters, to be maintained. Administrator’s responsibilities (2) The books, records, systems and practices shall be kept or maintained, as the case may be, in a manner that provides reasonable assurance that (a) the assets of the Ship-source Oil Pollution Fund are safeguarded and controlled; (b) the transactions of the Ship-source Oil Pollution Fund are conducted in accordance with this Part; and (c) the financial, human and physical resources of the Ship-source Oil Pollution Fund are managed economically and efficiently and the operations of that Fund are carried out effectively. Annual report 121. (1) The Administrator shall, as soon as feasible, but in any case within three months after the end of each fiscal year, submit an annual report, in any form that the Minister may direct, on the Administrator’s operations in that year to the Minister who shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after he or she receives it. 2009 Form and content Responsabilité en matière m (2) The annual report must include (a) the financial statements of the Shipsource Oil Pollution Fund; (b) the auditor’s report with respect to the Ship-source Oil Pollution Fund’s financial statements; and (c) the costs of preparing the auditor’s report. Special examination 122. (1) The Administrator shall cause a special examination to be carried out in respect of the Ship-source Oil Pollution Fund to determine if the Fund’s systems and practices referred to in paragraph 120(1)(b) were, in the period under examination, maintained in a manner that provided reasonable assurance that they met the requirements of paragraphs 120(2)(a) and (c). Time for examination (2) A special examination shall be carried out at least once every five years by the Administrator and at any additional times that the Governor in Council or Minister may require. Examiner (3) The Governor in Council, Minister or Administrator shall appoint a person to act as an examiner for the purpose of conducting a special examination. Independence of examiner (4) The examiner shall not accept or hold any office or employment inconsistent with their functions under this section and section 123. Plan (5) Before an examiner begins a special examination, they shall survey the systems and practices of the Ship-source Oil Pollution Fund to be examined and submit a plan for the examination, including a statement of the criteria to be applied in the examination, to the Minister and the Administrator. Resolution of disagreements (6) Any disagreement between the examiner and the Administrator with respect to the plan shall be resolved by the Minister. Report 123. (1) On the conclusion of the special examination, an examiner shall provide a report of their findings to the Minister and the Administrator. 52 Contents C. 21 Marine Liability an (2) The examiner’s report must include (a) a statement whether in their opinion, with respect to the criteria established under subsection 122(5), there is reasonable assurance that there are no significant deficiencies in the systems and practices examined; and (b) a statement of the extent to which they relied on internal audits. Right to information 124. (1) If the examiner considers it necessary to enable them to prepare a report as required by this Part, they may request that present or former Administrators, Deputy Administrators, employees, agents or mandataries of the Ship-source Oil Pollution Fund provide the examiner with the following to the extent they are reasonably able to do so: (a) information and explanations; and (b) access to that Fund’s records, books of account, accounts, vouchers and other documents. Administrator’s responsibilities (2) On the examiner’s request, the Administrator shall (a) provide any information and explanations that the examiner considers necessary to enable the examiner to prepare any report that is required by this Part and that the Administrator is reasonably able to provide; and (b) obtain from the former Administrator or the present or former Deputy Administrator, employees, agents or mandataries of that Fund any information and explanations that the examiner considers necessary to enable the examiner to prepare any report that is required by this Part and that the former Administrator or the present or former Deputy Administrator, employees, agents or mandataries are reasonably able to provide and provide the examiner with the information and explanations so obtained. Responsabilité en matière m REGULATIONS Governor in Council 125. The Governor in Council may make regulations (a) prescribing the manner in which the levy payable under section 112 is to be paid; (b) respecting the filing with the Minister of information returns by the persons referred to in paragraph 112(4)(a) or (b) from whom the levy may be recovered; (c) providing for the filing with the Minister or the Administrator of information returns necessary to enable the Administrator to discharge his or her obligations under section 117; and (d) generally for carrying out the purposes and provisions of this Part. PART 8 GENERAL PROVISIONS ADMINISTRATION AND ENFORCEMENT Designated officers 126. (1) The Minister may designate a person or class of persons as officers to be responsible for the administration and enforcement of this Act. Immunity (2) A designated officer is not personally liable for anything they do or omit to do in good faith under this Act. Crown not relieved 127. Subsection 126(2) does not, by reason of section 10 of the Crown Liability and Proceedings Act, relieve the Crown of liability for a tort or extracontractual civil liability to which the Crown would otherwise be subject. Powers 128. (1) A designated officer may, for the purpose of verifying compliance or preventing non-compliance with this Act, board a ship at any reasonable time. To that end, the designated officer may (a) direct the ship to stop; and (b) direct the ship to proceed to a place specified by them. C. 21 Duty to assist (2) The owner, the master of the ship and any other person on board shall give a designated officer all reasonable assistance to enable the officer to carry out their duties and functions. Detention 129. (1) If a designated officer believes, on reasonable grounds, that an offence in respect of sections 55 or 73 or regulations made under paragraph 39(a) or (b) has been committed by or in respect of a ship, they may make a detention order in respect of the ship. Order to be in writing (2) A detention order must be in writing and be addressed to every person empowered to grant clearance in respect of the ship. Detention order to be served on master (3) Notice of a detention order must be served on the master of the ship Marine Liability an (a) by delivering a copy of the notice personally to the master; or (b) if service cannot reasonably be effected in the manner provided in paragraph (a), by leaving a copy of the notice with the person who is, or appears to be, in charge of the ship or, if there is no such person, by fixing a copy of it to a prominent part of the ship. Contents of notice (4) The notice must (a) indicate the measures to be taken to ensure compliance with section 55 or 73 or regulations made under paragraph 39(a) or (b) that must be taken for the detention order to be revoked within any time specified in the order; and (b) if an information has been laid in respect of the alleged offence, indicate the amount not exceeding $100,000 and form of security that, pending the outcome of any proceedings related to the information, must be deposited with the Minister for the detention order to be revoked. Revocation of orders (5) A designated officer shall (a) revoke a detention order made under this section if they are satisfied that the measures indicated in the notice have been taken and, if applicable, that security in the amount and form indicated in the notice has been deposited with the Minister; and Responsabilité en matière m (b) notify, in the form and manner specified by the Minister, the master and the persons referred to in subsection (2) of the revocation. Duty of persons empowered to give clearance (6) No person to whom a detention order made under this section is addressed shall, after having received notice of the order, grant clearance to the ship in respect of which the order is made unless they are notified that the order has been revoked. Movement of ship prohibited (7) Subject to section 130, no person shall move a ship that is subject to a detention order made under this section. Liability for expenses (8) The owner of a ship that is detained under this section is liable for all expenses incurred in respect of the detained ship. Return of security (9) The Minister, following the conclusion of any proceedings in respect of which security is deposited, (a) may apply the security to reimburse Her Majesty in right of Canada, either fully or partially, if any of the expenses or any fine imposed is not paid; and (b) shall return the security, or any part of it that remains if it is applied under paragraph (a), if all expenses and any fine imposed are paid. Regulations Direction to move detained ship (10) The Governor in Council may make regulations respecting the detention of ships, including the review of detention orders. 130. The Minister may (a) on application made by the owner or the master of a detained ship, in the form and manner prescribed by the Minister, permit the master to move it in accordance with the Minister’s directions; (b) on application made by the owner of a dock or wharf, or by the person in charge of a harbour, at which a detained ship is situated, in the form and manner prescribed by the Minister, direct the person who is, or appears to be, in charge of the ship to move the ship in accordance with the Minister’s directions; and C. 21 Marine Liability an (c) if a person to whom a direction is given under paragraph (b) does not comply with it and the Minister is satisfied that the applicant for the direction has sufficient insurance in place to cover any incident that may arise from the moving of the ship, authorize the applicant to move it in accordance with the Minister’s directions and at the owner’s expense. OFFENCES Contraventions 131. Every person who, or ship that, contravenes subsection 55(1) or (2), 73(1) or (2), 128(2) or 129(6) or (7) or regulations made under section 39 is guilty of an offence and liable on summary conviction to a fine not exceeding $100,000. Evading payment 132. (1) Any person who wilfully evades or attempts to evade payment of an amount payable under section 112 is guilty of an offence and liable on summary conviction to a fine not exceeding $100,000. Failure to file information return (2) Any person who fails to file the information return referred to in paragraph 125(b) is guilty of an offence and liable on summary conviction to a fine not exceeding $1,000 for each day of default. Falsifying or destroying books of account (3) Any person who knowingly destroys, mutilates or falsifies, or who knowingly makes any false entry or statement in, any record, book of account or other document required to be kept under section 118 is guilty of an offence and liable on summary conviction to a fine not exceeding $100,000. Contraventions (4) Every person who contravenes subsection 117(5), section 118 or subsection 119(9) is guilty of an offence and liable on summary conviction to a fine not exceeding $100,000. Definition of “person” (5) For the purposes of this section, “person” has the same meaning as in Article I of the Civil Liability Convention within the meaning of subsection 47(1). Responsabilité en matière m Jurisdiction in relation to offences 133. When a person or a ship is charged with having committed an offence under this Act, any court in Canada that would have had cognizance of the offence if it had been committed by a person or ship within the limits of its ordinary jurisdiction has jurisdiction to try the offence as if it had been committed there. Proof of offence 134. In a prosecution of a ship for an offence under this Act, it is sufficient proof that the ship has committed the offence to establish that the act or omission that constitutes the offence was committed by the master or any person on board, other than a designated officer, whether or not the person on board is identified. Limitation period 135. (1) Proceedings by way of summary conviction under this Act may be instituted within two years after the day on which the Minister becomes aware of the subject matter of the proceedings. Minister’s certificate (2) A document that purports to have been issued by the Minister and that certifies the day on which he or she became aware of the subject matter of the proceedings is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is evidence that the Minister became aware of the subject matter on that day. Defendant outside Canada (3) If the proceedings cannot be commenced within two years because the proposed defendant is outside Canada, the proceedings may be commenced not later than two months after the defendant returns to Canada. SALE OF SHIPS Application by Minister 136. (1) The Minister may apply to any court of competent jurisdiction for an order authorizing him or her to sell a ship that has been detained under section 129 if (a) an information is laid in respect of an offence under subsection 55(1) or (2) or 73(1) or (2) or of a regulation made under paragraph 39(a) or (b), and (i) the security required under paragraph 129(4)(b) is not deposited within the time specified in the detention order, C. 21 Marine Liability an (ii) the person or ship charged is convicted, and (iii) the fine imposed and the expenses incurred in respect of the detained ship have not been paid; and (b) no information is laid and (i) the measures referred to in paragraph 129(4)(a) have not been taken within the time specified in the detention order, and (ii) the expenses incurred in respect of the detained ship have not been paid. Court may authorize sale (2) A court seized of an application for the sale of a ship may (a) authorize the Minister to sell the ship in the manner and subject to the terms and conditions that it considers appropriate; and (b) on application by the Minister or a person referred to in paragraph 137(1)(b) or (c), give directions concerning the ranking of the interests in the ship. Notice 137. (1) As soon as is feasible after making an application under section 136, the Minister shall give notice of the application by registered mail to (a) the registrar of the register in which the ship is registered; (b) the holder of any mortgage registered against the ship that is registered in the register referred to in paragraph (a); and (c) the holder of any maritime lien against the ship and the holder of any similar interest, if the holder is known to the Minister at the time of the application. Day notice deemed to be given (2) A notice sent by registered mail is deemed to have been given to the person to whom it is sent on the day on which the Minister receives an acknowledgement of receipt. Relief from giving notice (3) If the court that is seized of an application for the sale of a ship is satisfied that it is appropriate to do so, it may relieve the Minister of the obligation to give the notice referred to in Responsabilité en matière m subsection (1), or authorize him or her to give the notice in any other manner that it considers appropriate. Payment of proceeds 138. (1) If a ship is sold under an order, the proceeds of the sale shall be applied to satisfy claims in the following order of priority: (a) the expenses incurred in respect of the detained ship and its sale; (b) the claims of the master and crew members for wages; (c) the amount of any fine imposed; (d) the interests of persons who have been recognized and ranked by the court under paragraph 136(2)(b). Surplus (2) Any surplus of the proceeds of sale remaining after all claims have been satisfied is to be paid to the person registered as the owner of the ship or, in the absence of any registration, to the person who owns the ship. Proceedings against owner (3) If the proceeds of sale of a ship are insufficient to satisfy the claims described in paragraphs (1)(a) and (c), the Minister may proceed against the owner of the ship for the balance owing. Clear title (4) On selling a ship under an order, the Minister may, by bill of sale, give the purchaser a valid title to the ship free from any mortgage or other claim that is in existence at the time of the sale. 12. The Act is amended by adding the following in numerical order: MARITIME LIEN Definition of “foreign vessel” 139. (1) In this section, “foreign vessel” has the same meaning as in section 2 of the Canada Shipping Act, 2001. Maritime lien (2) A person, carrying on business in Canada, has a maritime lien against a foreign vessel for claims that arise (a) in respect of goods, materials or services wherever supplied to the foreign vessel for its operation or maintenance, including, without restricting the generality of the foregoing, stevedoring and lighterage; or C. 21 Marine Liability an (b) out of a contract relating to the repair or equipping of the foreign vessel. Services requested by owner (2.1) Subject to section 251 of the Canada Shipping Act, 2001, for the purposes of paragraph (2)(a), with respect to stevedoring or lighterage, the services must have been provided at the request of the owner of the foreign vessel or a person acting on the owner’s behalf. Exception (3) A maritime lien against a foreign vessel may be enforced by an action in rem against a foreign vessel unless (a) the vessel is a warship, coast guard ship or police vessel; or (b) at the time the claim arises or the action is commenced, the vessel is being used exclusively for non-commercial governmental purposes. Federal Courts Act (4) Subsection 43(3) of the Federal Courts Act does not apply to a claim secured by a maritime lien under this section. LIMITATION PERIOD Proceedings under maritime law 140. Except as otherwise provided in this Act or in any other Act of Parliament, no proceedings under Canadian maritime law in relation to any matter coming within the class of navigation and shipping may be commenced later than three years after the day on which the cause of action arises. 13. The Act is amended by adding the following in numerical order: INCONSISTENCY Priority over Arctic Waters Pollution Prevention Act 141. In the event of an inconsistency between this Act and the provisions of the Arctic Waters Pollution Prevention Act, the provisions of this Act prevail to the extent of the inconsistency. Responsabilité en matière m COMING INTO FORCE Order in council 142. Section 45 comes into force on a day to be fixed by order of the Governor in Council. 14. Schedule 1 to the Act is amended by replacing the reference “(Section 24)” after the heading “SCHEDULE 1” with the references “(Section 24 and subsections 26(2) and 31(1))”. 15. Schedule 1 to the Act is amended by adding the following after Part 2: PART 3 Text of reservations made under Article 18 of the Convention on Limitation of Liability for Maritime Claims, 1976, as amended by the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976 1. Claims in respect of the raising, removal, destruction or rendering harmless of a ship that is sunk, wrecked, stranded or abandoned, including anything that is or has been on board that ship. 16. Schedule 2 to the Act is amended by replacing the reference “(Section 35)” after the heading “SCHEDULE 2” with the references “(Sections 35 and 40)”. 17. The Act is amended by adding, after Schedule 4, the Schedules 5 to 8 set out in the schedule to this Act. R.S., c. F-7; 2002, c. 8, s. 14 FEDERAL COURTS ACT 2002, c. 8, s. 40(4) 18. Subsection 43(8) of the English version of the Federal Courts Act is replaced by the following: Arrest (8) The jurisdiction conferred on the Federal Court by section 22 may be exercised in rem against any ship that, at the time the action is brought, is owned by the beneficial owner of the ship that is the subject of the action. C. 21 Marine Liability an TRANSITIONAL PROVISIONS 19. A claim to recover loss, damage, costs or expenses filed with the Administrator under section 85 of the Marine Liability Act before the day on which this section comes into force is deemed to have been filed under section 103 of the Marine Liability Act, as enacted by section 11. 20. The Administrator and Deputy Administrator who are in office on the day on which this section comes into force shall continue to perform their duties and functions as if they had been appointed under section 94 or 95, as the case may be, of the Marine Liability Act, as enacted by section 11. CONSEQUENTIAL AMENDMENTS R.S., c. A-12 ARCTIC WATERS POLLUTION PREVENTION ACT 2001, c. 6, s. 109 21. Section 2.1 of the Arctic Waters Pollution Prevention Act is replaced by the following: Inconsistency with Marine Liability Act 2.1 In the event of an inconsistency between the provisions of this Act, or any regulation made under this Act, and the provisions of the Marine Liability Act, the provisions of that Act prevail to the extent of the inconsistency. 2002, c. 10 NUNAVUT WATERS AND NUNAVUT SURFACE RIGHTS TRIBUNAL ACT 22. Subsection 152(3) of the Nunavut Waters and Nunavut Surface Rights Tribunal Act is replaced by the following: Definitions from Marine Liability Act (3) For the purposes of the definition “developer” in subsection (1) and for the purposes of sections 153 and 154, the words “discharge”, “oil”, “owner” and “ship” have the same meaning as in section 91 of the Marine Liability Act. 23. Subsection 154(2) of the Act is replaced by the following: 2009 Liability of Fund Responsabilité en matière m (2) In relation to loss or damage resulting from a discharge of oil from a ship that is engaged in marine transportation as described in paragraph (c) of the definition “development activity” in subsection 152(1), the Ship-source Oil Pollution Fund established under Part 7 of the Marine Liability Act is liable to the same extent that a developer would be liable under section 153 if paragraph 153(2)(b) did not apply. COMING INTO FORCE Royal assent 24. (1) Sections 1 to 10, 12, 14 to 16 and 18 come into force 90 days after the day on which this Act receives royal assent. Order in council (2) Sections 11, 13, 17 and 19 to 23 come into force on a day to be fixed by order of the Governor in Council. C. 21 Marine Liability and Fed SCHEDULE (Section 17) SCHEDULE 5 (Sections 48 and 50) TEXT OF ARTICLES I TO XI, XII BIS AND 15 OF THE INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR OIL POLLUTION DAMAGE, 1992, AS AMENDED BY THE RESOLUTION OF 2000 ARTICLE I For the purposes of this Convention: 1. “Ship” means any sea-going vessel and seaborne craft of any type whatsoever constructed or adapted for the carriage of oil in bulk as cargo, provided that a ship capable of carrying oil and other cargoes shall be regarded as a ship only when it is actually carrying oil in bulk as cargo and during any voyage following such carriage unless it is proved that it has no residues of such carriage of oil in bulk aboard. 2. “Person” means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions. 3. “Owner” means the person or persons registered as the owner of the ship or, in the absence of registration, the person or persons owning the ship. However in the case of a ship owned by a State and operated by a company which in that State is registered as the ship’s operator, “owner” shall mean such company. 4. “State of the ship’s registry” means in relation to registered ships the State of registration of the ship, and in relation to unregistered ships the State whose flag the ship is flying. 5. “Oil” means any persistent hydrocarbon mineral oil such as crude oil, fuel oil, heavy diesel oil and lubricating oil, whether carried on board a ship as cargo or in the bunkers of such a ship. 6. “Pollution damage” means: (a) loss or damage caused outside the ship by contamination resulting from the escape or discharge of oil from the ship, wherever such escape or discharge may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken; (b) the costs of preventive measures and further loss or damage caused by preventive measures. 7. “Preventive measures” means any reasonable measures taken by any person after an incident has occurred to prevent or minimize pollution damage. Responsabilité en matière maritim 8. “Incident” means any occurrence, or series of occurrences having the same origin, which causes pollution damage or creates a grave and imminent threat of causing such damage. 9. “Organization” means the International Maritime Organization. 10. “1969 Liability Convention” means the International Convention on Civil Liability for Oil Pollution Damage, 1969. For States Parties to the Protocol of 1976 to that Convention, the term shall be deemed to include the 1969 Liability Convention as amended by that Protocol. ARTICLE II This Convention shall apply exclusively: (a) to pollution damage caused: (i) in the territory, including the territorial sea, of a Contracting State, and (ii) in the exclusive economic zone of a Contracting State, established in accordance with international law, or, if a Contracting State has not established such a zone, in an area beyond and adjacent to the territorial sea of that State determined by that State in accordance with international law and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured; (b) to preventive measures, wherever taken, to prevent or minimize such damage. ARTICLE III 1. Except as provided in paragraphs 2 and 3 of this Article, the owner of a ship at the time of an incident, or, where the incident consists of a series of occurrences, at the time of the first such occurrence, shall be liable for any pollution damage caused by the ship as a result of the incident. 2. No liability for pollution damage shall attach to the owner if he proves that the damage: (a) resulted from an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character, or (b) was wholly caused by an act or omission done with intent to cause damage by a third party, or (c) was wholly caused by the negligence or other wrongful act of any Government or other authority responsible for the maintenance of lights or other navigational aids in the exercise of that function. 3. If the owner proves that the pollution damage resulted wholly or partially either from an act or omission done with intent to cause damage by the person who suffered the damage or from the negligence of that person, the owner may be exonerated wholly or partially from his liability to such person. C. 21 Marine Liability and Fed 4. No claim for compensation for pollution damage may be made against the owner otherwise than in accordance with this Convention. Subject to paragraph 5 of this Article, no claim for compensation for pollution damage under this Convention or otherwise may be made against: (a) the servants or agents of the owner or the members of the crew; (b) the pilot or any other person who, without being a member of the crew, performs services for the ship; (c) any charterer (howsoever described, including a bareboat charterer), manager or operator of the ship; (d) any person performing salvage operations with the consent of the owner or on the instructions of a competent public authority; (e) any person taking preventive measures; (f) all servants or agents of persons mentioned in subparagraphs (c), (d) and (e); unless the damage resulted from their personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result. 5. Nothing in this Convention shall prejudice any right of recourse of the owner against third parties. ARTICLE IV When an incident involving two or more ships occurs and pollution damage results therefrom, the owners of all the ships concerned, unless exonerated under Article III, shall be jointly and severally liable for all such damage which is not reasonably separable. ARTICLE V 1. The owner of a ship shall be entitled to limit his liability under this Convention in respect of any one incident to an aggregate amount calculated as follows: (a) 4,510,000 units of account for a ship not exceeding 5,000 units of tonnage; (b) for a ship with a tonnage in excess thereof, for each additional unit of tonnage, 631 units of account in addition to the amount mentioned in sub-paragraph (a); provided, however, that this aggregate amount shall not in any event exceed 89,770,000 units of account. 2. The owner shall not be entitled to limit his liability under this Convention if it is proved that the pollution damage resulted from his personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result. 3. For the purpose of availing himself of the benefit of limitation provided for in paragraph 1 of this Article the owner shall constitute a fund for the total sum representing the limit of his liability with the Responsabilité en matière maritim Court or other competent authority of any one of the Contracting States in which action is brought under Article IX or, if no action is brought, with any Court or other competent authority in any one of the Contracting States in which an action can be brought under Article IX. The fund can be constituted either by depositing the sum or by producing a bank guarantee or other guarantee, acceptable under the legislation of the Contracting State where the fund is constituted, and considered to be adequate by the Court or other competent authority. 4. The fund shall be distributed among the claimants in proportion to the amounts of their established claims. 5. If before the fund is distributed the owner or any of his servants or agents or any person providing him insurance or other financial security has as a result of the incident in question, paid compensation for pollution damage, such person shall, up to the amount he has paid, acquire by subrogation the rights which the person so compensated would have enjoyed under this Convention. 6. The right of subrogation provided for in paragraph 5 of this Article may also be exercised by a person other than those mentioned therein in respect of any amount of compensation for pollution damage which he may have paid but only to the extent that such subrogation is permitted under the applicable national law. 7. Where the owner or any other person establishes that he may be compelled to pay at a later date in whole or in part any such amount of compensation, with regard to which such person would have enjoyed a right of subrogation under paragraphs 5 or 6 of this Article, had the compensation been paid before the fund was distributed, the Court or other competent authority of the State where the fund has been constituted may order that a sufficient sum shall be provisionally set aside to enable such person at such later date to enforce his claim against the fund. 8. Claims in respect of expenses reasonably incurred or sacrifices reasonably made by the owner voluntarily to prevent or minimize pollution damage shall rank equally with other claims against the fund. 9. (a) The “unit of account” referred to in paragraph 1 of this Article is the Special Drawing Right as defined by the International Monetary Fund. The amounts mentioned in paragraph 1 shall be converted into national currency on the basis of the value of that currency by reference to the Special Drawing Right on the date of the constitution of the fund referred to in paragraph 3. The value of the national currency, in terms of the Special Drawing Right, of a Contracting State which is a member of the International Monetary Fund shall be calculated in accordance with the method of valuation applied by the International Monetary Fund in effect on the date in question for its operations and transactions. The value of the national currency, in terms of the Special Drawing Right, of a Contracting State which is not a member of the International Monetary Fund shall be calculated in a manner determined by that State. (b) Nevertheless, a Contracting State which is not a member of the International Monetary Fund and whose law does not permit the application of the provisions of paragraph 9(a) may, at the time of ratification, acceptance, approval of or accession to this Convention or at any time thereafter, declare that the unit of account referred to in paragraph 9(a) shall be equal to 15 gold C. 21 Marine Liability and Fed francs. The gold franc referred to in this paragraph corresponds to sixty-five and a half milligrammes of gold of millesimal fineness nine hundred. The conversion of the gold franc into the national currency shall be made according to the law of the State concerned. (c) The calculation mentioned in the last sentence of paragraph 9(a) and the conversion mentioned in paragraph 9(b) shall be made in such manner as to express in the national currency of the Contracting State as far as possible the same real value for the amounts in paragraph 1 as would result from the application of the first three sentences of paragraph 9(a). Contracting States shall communicate to the depositary the manner of calculation pursuant to paragraph 9(a), or the result of the conversion in paragraph 9(b) as the case may be, when depositing an instrument of ratification, acceptance, approval of or accession to this Convention and whenever there is a change in either. 10. For the purpose of this Article the ship’s tonnage shall be the gross tonnage calculated in accordance with the tonnage measurement regulations contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969. 11. The insurer or other person providing financial security shall be entitled to constitute a fund in accordance with this Article on the same conditions and having the same effect as if it were constituted by the owner. Such a fund may be constituted even if, under the provisions of paragraph 2, the owner is not entitled to limit his liability, but its constitution shall in that case not prejudice the rights of any claimant against the owner. ARTICLE VI 1. Where the owner, after an incident, has constituted a fund in accordance with Article V, and is entitled to limit his liability, (a) no person having a claim for pollution damage arising out of that incident shall be entitled to exercise any right against any other assets of the owner in respect of such claim; (b) the Court or other competent authority of any Contracting State shall order the release of any ship or other property belonging to the owner which has been arrested in respect of a claim for pollution damage arising out of that incident, and shall similarly release any bail or other security furnished to avoid such arrest. 2. The foregoing shall, however, only apply if the claimant has access to the Court administering the fund and the fund is actually available in respect of his claim. ARTICLE VII 1. The owner of a ship registered in a Contracting State and carrying more than 2,000 tons of oil in bulk as cargo shall be required to maintain insurance or other financial security, such as the guarantee of a bank or a certificate delivered by an international compensation fund, in the sums fixed by applying the limits of liability prescribed in Article V, paragraph 1 to cover his liability for pollution damage under this Convention. Responsabilité en matière maritim 2. A certificate attesting that insurance or other financial security is in force in accordance with the provisions of this Convention shall be issued to each ship after the appropriate authority of a Contracting State has determined that the requirements of paragraph 1 have been complied with. With respect to a ship registered in a Contracting State such certificate shall be issued or certified by the appropriate authority of the State of the ship’s registry; with respect to a ship not registered in a Contracting State it may be issued or certified by the appropriate authority of any Contracting State. This certificate shall be in the form of the annexed model and shall contain the following particulars: (a) name of ship and port of registration; (b) name and principal place of business of owner; (c) type of security; (d) name and principal place of business of insurer or other person giving security and, where appropriate, place of business where the insurance or security is established; (e) period of validity of certificate which shall not be longer than the period of validity of the insurance or other security. 3. The certificate shall be in the official language or languages of the issuing State. If the language used is neither English nor French, the text shall include a translation into one of these languages. 4. The certificate shall be carried on board the ship and a copy shall be deposited with the authorities who keep the record of the ship’s registry or, if the ship is not registered in a Contracting State, with the authorities of the State issuing or certifying the certificate. 5. An insurance or other financial security shall not satisfy the requirements of this Article if it can cease, for reasons other than the expiry of the period of validity of the insurance or security specified in the certificate under paragraph 2 of this Article, before three months have elapsed from the date on which notice of its termination is given to the authorities referred to in paragraph 4 of this Article, unless the certificate has been surrendered to these authorities or a new certificate has been issued within the said period. The foregoing provisions shall similarly apply to any modification which results in the insurance or security no longer satisfying the requirements of this Article. 6. The State of registry shall, subject to the provisions of this Article, determine the conditions of issue and validity of the certificate. 7. Certificates issued or certified under the authority of a Contracting State in accordance with paragraph 2 shall be accepted by other Contracting States for the purposes of this Convention and shall be regarded by other Contracting States as having the same force as certificates issued or certified by them even if issued or certified in respect of a ship not registered in a Contracting State. A Contracting State may at any time request consultation with the C. 21 Marine Liability and Fed issuing or certifying State should it believe that the insurer or guarantor named in the certificate is not financially capable of meeting the obligations imposed by this Convention. 8. Any claim for compensation for pollution damage may be brought directly against the insurer or other person providing financial security for the owner’s liability for pollution damage. In such case the defendant may, even if the owner is not entitled to limit his liability according to Article V, paragraph 2, avail himself of the limits of liability prescribed in Article V, paragraph 1. He may further avail himself of the defences (other than the bankruptcy or winding up of the owner) which the owner himself would have been entitled to invoke. Furthermore, the defendant may avail himself of the defence that the pollution damage resulted from the wilful misconduct of the owner himself, but the defendant shall not avail himself of any other defence which he might have been entitled to invoke in proceedings brought by the owner against him. The defendant shall in any event have the right to require the owner to be joined in the proceedings. 9. Any sums provided by insurance or by other financial security maintained in accordance with paragraph 1 of this Article shall be available exclusively for the satisfaction of claims under this Convention. 10. A Contracting State shall not permit a ship under its flag to which this Article applies to trade unless a certificate has been issued under paragraph 2 or 12 of this Article. 11. Subject to the provisions of this Article, each Contracting State shall ensure, under its national legislation, that insurance or other security to the extent specified in paragraph 1 of this Article is in force in respect of any ship, wherever registered, entering or leaving a port in its territory, or arriving at or leaving an off-shore terminal in its territorial sea, if the ship actually carries more than 2,000 tons of oil in bulk as cargo. 12. If insurance or other financial security is not maintained in respect of a ship owned by a Contracting State, the provisions of this Article relating thereto shall not be applicable to such ship, but the ship shall carry a certificate issued by the appropriate authorities of the State of the ship’s registry stating that the ship is owned by that State and that the ship’s liability is covered within the limits prescribed by Article V, paragraph 1. Such a certificate shall follow as closely as practicable the model prescribed by paragraph 2 of this Article. ARTICLE VIII Rights of compensation under this Convention shall be extinguished unless an action is brought thereunder within three years from the date when the damage occurred. However, in no case shall an action be brought after six years from the date of the incident which caused the damage. Where this incident consists of a series of occurrences, the six years’ period shall run from the date of the first such occurrence. Responsabilité en matière maritim ARTICLE IX 1. Where an incident has caused pollution damage in the territory, including the territorial sea or an area referred to in Article II, of one or more Contracting States or preventive measures have been taken to prevent or minimize pollution damage in such territory including the territorial sea or area, actions for compensation may only be brought in the Courts of any such Contracting State or States. Reasonable notice of any such action shall be given to the defendant. 2. Each Contracting State shall ensure that its Courts possess the necessary jurisdiction to entertain such actions for compensation. 3. After the fund has been constituted in accordance with Article V the Courts of the State in which the fund is constituted shall be exclusively competent to determine all matters relating to the apportionment and distribution of the fund. ARTICLE X 1. Any judgment given by a Court with jurisdiction in accordance with Article IX which is enforceable in the State of origin where it is no longer subject to ordinary forms of review, shall be recognized in any Contracting State, except: (a) where the judgment was obtained by fraud; or (b) where the defendant was not given reasonable notice and a fair opportunity to present his case. 2. A judgment recognized under paragraph 1 of this Article shall be enforceable in each Contracting State as soon as the formalities required in that State have been complied with. The formalities shall not permit the merits of the case to be re-opened. ARTICLE XI 1. The provisions of this Convention shall not apply to warships or other ships owned or operated by a State and used, for the time being, only on government non-commercial service. 2. With respect to ships owned by a Contracting State and used for commercial purposes, each State shall be subject to suit in the jurisdictions set forth in Article IX and shall waive all defences based on its status as a sovereign State. ARTICLE XII BIS TRANSITIONAL PROVISIONS The following transitional provisions shall apply in the case of a State which at the time of an incident is a Party both to this Convention and to the 1969 Liability Convention: (a) where an incident has caused pollution damage within the scope of this Convention, liability under this Convention shall be deemed to be discharged if, and to the extent that, it also arises under the 1969 Liability Convention; C. 21 Marine Liability and Fed (b) where an incident has caused pollution damage within the scope of this Convention, and the State is a Party both to this Convention and to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971, liability remaining to be discharged after the application of subparagraph (a) of this Article shall arise under this Convention only to the extent that pollution damage remains uncompensated after application of the said 1971 Convention; (c) in the application of Article III, paragraph 4, of this Convention the expression “this Convention” shall be interpreted as referring to this Convention or the 1969 Liability Convention, as appropriate; (d) in the application of Article V, paragraph 3, of this Convention the total sum of the fund to be constituted shall be reduced by the amount by which liability has been deemed to be discharged in accordance with sub-paragraph (a) of this Article. ARTICLE 15 AMENDMENTS OF LIMITATION AMOUNTS 1. Upon the request of at least one quarter of the Contracting States any proposal to amend the limits of liability laid down in Article V, paragraph 1, of the 1969 Liability Convention as amended by this Protocol shall be circulated by the Secretary-General to all Members of the Organization and to all Contracting States. 2. Any amendment proposed and circulated as above shall be submitted to the Legal Committee of the Organization for consideration at a date at least six months after the date of its circulation. 3. All Contracting States to the 1969 Liability Convention as amended by this Protocol, whether or not Members of the Organization, shall be entitled to participate in the proceedings of the Legal Committee for the consideration and adoption of amendments. 4. Amendments shall be adopted by a two-thirds majority of the Contracting States present and voting in the Legal Committee, expanded as provided for in paragraph 3, on condition that at least one half of the Contracting States shall be present at the time of voting. 5. When acting on a proposal to amend the limits, the Legal Committee shall take into account the experience of incidents and in particular the amount of damage resulting therefrom, changes in the monetary values and the effect of the proposed amendment on the cost of insurance. It shall also take into account the relationship between the limits in Article V, paragraph 1, of the 1969 Liability Convention as amended by this Protocol and those in Article 4, paragraph 4, of the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992. Responsabilité en matière maritim 6. (a) No amendment of the limits of liability under this Article may be considered before 15 January 1998 nor less than five years from the date of entry into force of a previous amendment under this Article. No amendment under this Article shall be considered before this Protocol has entered into force. (b) No limit may be increased so as to exceed an amount which corresponds to the limit laid down in the 1969 Liability Convention as amended by this Protocol increased by 6 per cent per year calculated on a compound basis from 15 January 1993. (c) No limit may be increased so as to exceed an amount which corresponds to the limit laid down in the 1969 Liability Convention as amended by this Protocol multiplied by 3. 7. Any amendment adopted in accordance with paragraph 4 shall be notified by the Organization to all Contracting States. The amendment shall be deemed to have been accepted at the end of a period of eighteen months after the date of notification, unless within that period not less than one quarter of the States that were Contracting States at the time of the adoption of the amendment by the Legal Committee have communicated to the Organization that they do not accept the amendment in which case the amendment is rejected and shall have no effect. 8. An amendment deemed to have been accepted in accordance with paragraph 7 shall enter into force eighteen months after its acceptance. 9. All Contracting States shall be bound by the amendment, unless they denounce this Protocol in accordance with Article 16, paragraphs 1 and 2, at least six months before the amendment enters into force. Such denunciation shall take effect when the amendment enters into force. 10. When an amendment has been adopted by the Legal Committee but the eighteen-month period for its acceptance has not yet expired, a State which becomes a Contracting State during that period shall be bound by the amendment if it enters into force. A State which becomes a Contracting State after that period shall be bound by an amendment which has been accepted in accordance with paragraph 7. In the cases referred to in this paragraph, a State becomes bound by an amendment when that amendment enters into force, or when this Protocol enters into force for that State, if later. C. 21 Marine Liability and Fed ANNEX CERTIFICATE OF INSURANCE OR OTHER FINANCIAL SECURITY IN RESPECT OF CIVIL LIABILITY FOR OIL POLLUTION DAMAGE Issued in accordance with the provisions of Article VII of the International Convention on Civil Liability for Oil Pollution Damage, 1992. Name of ship Port of registry Distinctive number or letters Name and address of owner This is to certify that there is in force in respect of the above-named ship a policy of insurance or other financial security satisfying the requirements of Article VII of the International Convention on Civil Liability for Oil Pollution Damage, 1992. Type of Security ................................................................................. Duration of Security ........................................................................... Name and Address of the Insurer(s) and/or Guarantor(s) Name ................................................................................................... Address................................................................................................ This certificate is valid until.................................................. Issued or certified by the Government of ............................. ................................................................................................ (Full designation of the State) At ........................................ On ........................................ (Place) (Date) ...................................... Signature and Title of issuing or certifying official Responsabilité en matière maritim Explanatory Notes: If desired, the designation of the State may include a reference to the competent public authority of the country where the certificate is issued. If the total amount of security has been furnished by more than one source, the amount of each of them should be indicated. If security is furnished in several forms, these should be enumerated. The entry “Duration of Security” must stipulate the date on which such security takes effect. C. 21 Marine Liability and Fed SCHEDULE 6 (Sections 57 and 59) TEXT OF ARTICLES 1 TO 4, 6 TO 10, 12 TO 15, 36 TER, 29, 33 AND 37 OF THE INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE, 1992, AS AMENDED BY THE RESOLUTION OF 2000 GENERAL PROVISIONS Article 1 For the purposes of this Convention: 1. “1992 Liability Convention” means the International Convention on Civil Liability for Oil Pollution Damage, 1992. 1bis. “1971 Fund Convention” means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971. For States Parties to the Protocol of 1976 to that Convention, the term shall be deemed to include the 1971 Fund Convention as amended by that Protocol. 2. “Ship”, “Person”, “Owner”, “Oil”, “Pollution Damage”, “Preventive Measures”, “Incident”, and “Organization” have the same meaning as in Article I of the 1992 Liability Convention. 3. “Contributing Oil” means crude oil and fuel oil as defined in sub-paragraphs (a) and (b) below: (a) “Crude Oil” means any liquid hydrocarbon mixture occurring naturally in the earth whether or not treated to render it suitable for transportation. It also includes crude oils from which certain distillate fractions have been removed (sometimes referred to as “topped crudes”) or to which certain distillate fractions have been added (sometimes referred to as “spiked” or “reconstituted” crudes). (b) “Fuel Oil” means heavy distillates or residues from crude oil or blends of such materials intended for use as a fuel for the production of heat or power of a quality equivalent to the “American Society for Testing and Materials’ Specification for Number Four Fuel Oil (Designation D 396-69)”, or heavier. 4. “Unit of account” has the same meaning as in Article V, paragraph 9, of the 1992 Liability Convention. 5. “Ship’s tonnage” has the same meaning as in Article V, paragraph 10, of the 1992 Liability Convention. 6. “Ton”, in relation to oil, means a metric ton. 7. “Guarantor” means any person providing insurance or other financial security to cover an owner’s liability in pursuance of Article VII, paragraph 1, of the 1992 Liability Convention. Responsabilité en matière maritim 8. “Terminal installation” means any site for the storage of oil in bulk which is capable of receiving oil from waterborne transportation, including any facility situated off-shore and linked to such site. 9. Where an incident consists of a series of occurrences, it shall be treated as having occurred on the date of the first such occurrence. Article 2 1. An International Fund for compensation for pollution damage, to be named “The International Oil Pollution Compensation Fund 1992” and hereinafter referred to as “the Fund”, is hereby established with the following aims: (a) to provide compensation for pollution damage to the extent that the protection afforded by the 1992 Liability Convention is inadequate; (b) to give effect to the related purposes set out in this Convention. 2. The Fund shall in each Contracting State be recognized as a legal person capable under the laws of that State of assuming rights and obligations and of being a party in legal proceedings before the courts of that State. Each Contracting State shall recognize the Director of the Fund (hereinafter referred to as “The Director”) as the legal representative of the Fund. Article 3 This Convention shall apply exclusively: (a) to pollution damage caused: (i) in the territory, including the territorial sea, of a Contracting State, and (ii) in the exclusive economic zone of a Contracting State, established in accordance with international law, or, if a Contracting State has not established such a zone, in an area beyond and adjacent to the territorial sea of that State determined by that State in accordance with international law and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured; (b) to preventive measures, wherever taken, to prevent or minimize such damage. COMPENSATION Article 4 1. For the purpose of fulfilling its function under Article 2, paragraph 1(a), the Fund shall pay compensation to any person suffering pollution damage if such person has been unable to obtain full and adequate compensation for the damage under the terms of the 1992 Liability Convention, (a) because no liability for the damage arises under the 1992 Liability Convention; C. 21 Marine Liability and Fed (b) because the owner liable for the damage under the 1992 Liability Convention is financially incapable of meeting his obligations in full and any financial security that may be provided under Article VII of that Convention does not cover or is insufficient to satisfy the claims for compensation for the damage; an owner being treated as financially incapable of meeting his obligations and a financial security being treated as insufficient if the person suffering the damage has been unable to obtain full satisfaction of the amount of compensation due under the 1992 Liability Convention after having taken all reasonable steps to pursue the legal remedies available to him; (c) because the damage exceeds the owner’s liability under the 1992 Liability Convention as limited pursuant to Article V, paragraph 1, of that Convention or under the terms of any other international Convention in force or open for signature, ratification or accession at the date of this Convention. Expenses reasonably incurred or sacrifices reasonably made by the owner voluntarily to prevent or minimize pollution damage shall be treated as pollution damage for the purposes of this Article. 2. The Fund shall incur no obligation under the preceding paragraph if: (a) it proves that the pollution damage resulted from an act of war, hostilities, civil war or insurrection or was caused by oil which has escaped or been discharged from a warship or other ship owned or operated by a State and used, at the time of the incident, only on Government non-commercial service; or (b) the claimant cannot prove that the damage resulted from an incident involving one or more ships. 3. If the Fund proves that the pollution damage resulted wholly or partially either from an act or omission done with the intent to cause damage by the person who suffered the damage or from the negligence of that person, the Fund may be exonerated wholly or partially from its obligation to pay compensation to such person. The Fund shall in any event be exonerated to the extent that the shipowner may have been exonerated under Article III, paragraph 3, of the 1992 Liability Convention. However, there shall be no such exoneration of the Fund with regard to preventive measures. 4. (a) Except as otherwise provided in sub-paragraphs (b) and (c) of this paragraph, the aggregate amount of compensation payable by the Fund under this Article shall in respect of any one incident be limited, so that the total sum of that amount and the amount of compensation actually paid under the 1992 Liability Convention for pollution damage within the scope of application of this Convention as defined in Article 3 shall not exceed 203,000,000 units of account. (b) Except as otherwise provided in sub-paragraph (c), the aggregate amount of compensation payable by the Fund under this Article for pollution damage resulting from a natural phenomenon of an exceptional, inevitable and irresistible character shall not exceed 203,000,000 units of account. Responsabilité en matière maritim (c) The maximum amount of compensation referred to in subparagraphs (a) and (b) shall be 300,740,000 units of account with respect to any incident occurring during any period when there are three Parties to this Convention in respect of which the combined relevant quantity of contributing oil received by persons in the territories of such Parties, during the preceding calendar year, equalled or exceeded 600 million tons. (d) Interest accrued on a fund constituted in accordance with Article V, paragraph 3, of the 1992 Liability Convention, if any, shall not be taken into account for the computation of the maximum compensation payable by the Fund under this Article. (e) The amounts mentioned in this Article shall be converted into national currency on the basis of the value of that currency by reference to the Special Drawing Right on the date of the decision of the Assembly of the Fund as to the first date of payment of compensation. 5. Where the amount of established claims against the Fund exceeds the aggregate amount of compensation payable under paragraph 4, the amount available shall be distributed in such a manner that the proportion between any established claim and the amount of compensation actually recovered by the claimant under this Convention shall be the same for all claimants. 6. The Assembly of the Fund may decide that, in exceptional cases, compensation in accordance with this Convention can be paid even if the owner of the ship has not constituted a fund in accordance with Article V, paragraph 3, of the 1992 Liability Convention. In such case paragraph 4(e) of this Article applies accordingly. 7. The Fund shall, at the request of a Contracting State, use its good offices as necessary to assist that State to secure promptly such personnel, material and services as are necessary to enable the State to take measures to prevent or mitigate pollution damage arising from an incident in respect of which the Fund may be called upon to pay compensation under this Convention. 8. The Fund may on conditions to be laid down in the Internal Regulations provide credit facilities with a view to the taking of preventive measures against pollution damage arising from a particular incident in respect of which the Fund may be called upon to pay compensation under this Convention. Article 6 Rights to compensation under Article 4 shall be extinguished unless an action is brought thereunder or a notification has been made pursuant to Article 7, paragraph 6, within three years from the date when the damage occurred. However, in no case shall an action be brought after six years from the date of the incident which caused the damage. C. 21 Marine Liability and Fed Article 7 1. Subject to the subsequent provisions of this Article, any action against the Fund for compensation under Article 4 of this Convention shall be brought only before a court competent under Article IX of the 1992 Liability Convention in respect of actions against the owner who is or who would, but for the provisions of Article III, paragraph 2, of that Convention, have been liable for pollution damage caused by the relevant incident. 2. Each Contracting State shall ensure that its courts possess the necessary jurisdiction to entertain such actions against the Fund as are referred to in paragraph 1. 3. Where an action for compensation for pollution damage has been brought before a court competent under Article IX of the 1992 Liability Convention against the owner of a ship or his guarantor, such court shall have exclusive jurisdictional competence over any action against the Fund for compensation under the provisions of Article 4 of this Convention in respect of the same damage. However, where an action for compensation for pollution damage under the 1992 Liability Convention has been brought before a court in a State Party to the 1992 Liability Convention but not to this Convention, any action against the Fund under Article 4 of this Convention shall at the option of the claimant be brought either before a court of the State where the Fund has its headquarters or before any court of a State Party to this Convention competent under Article IX of the 1992 Liability Convention. 4. Each Contracting State shall ensure that the Fund shall have the right to intervene as a party to any legal proceedings instituted in accordance with Article IX of the 1992 Liability Convention before a competent court of that State against the owner of a ship or his guarantor. 5. Except as otherwise provided in paragraph 6, the Fund shall not be bound by any judgment or decision in proceedings to which it has not been a party or by any settlement to which it is not a party. 6. Without prejudice to the provisions of paragraph 4, where an action under the 1992 Liability Convention for compensation for pollution damage has been brought against an owner or his guarantor before a competent court in a Contracting State, each party to the proceedings shall be entitled under the national law of that State to notify the Fund of the proceedings. Where such notification has been made in accordance with the formalities required by the law of the court seized and in such time and in such a manner that the Fund has in fact been in a position effectively to intervene as a party to the proceedings, any judgment rendered by the court in such proceedings shall, after it has become final and enforceable in the State where the judgment was given, become binding upon the Fund in the sense that the facts and findings in that judgment may not be disputed by the Fund even if the Fund has not actually intervened in the proceedings. Responsabilité en matière maritim Article 8 Subject to any decision concerning the distribution referred to in Article 4, paragraph 5, any judgment given against the Fund by a court having jurisdiction in accordance with Article 7, paragraphs 1 and 3, shall, when it has become enforceable in the State of origin and is in that State no longer subject to ordinary forms of review, be recognized and enforceable in each Contracting State on the same conditions as are prescribed in Article X of the 1992 Liability Convention. Article 9 1. The Fund shall, in respect of any amount of compensation for pollution damage paid by the Fund in accordance with Article 4, paragraph 1, of this Convention, acquire by subrogation the rights that the person so compensated may enjoy under the 1992 Liability Convention against the owner or his guarantor. 2. Nothing in this Convention shall prejudice any right of recourse or subrogation of the Fund against persons other than those referred to in the preceding paragraph. In any event the right of the Fund to subrogation against such person shall not be less favourable than that of an insurer of the person to whom compensation has been paid. 3. Without prejudice to any other rights of subrogation or recourse against the Fund which may exist, a Contracting State or agency thereof which has paid compensation for pollution damage in accordance with provisions of national law shall acquire by subrogation the rights which the person so compensated would have enjoyed under this Convention. CONTRIBUTIONS Article 10 1. Annual contributions to the Fund shall be made in respect of each Contracting State by any person who, in the calendar year referred to in Article 12, paragraph 2(a) or (b), has received in total quantities exceeding 150,000 tons: (a) in the ports or terminal installations in the territory of that State contributing oil carried by sea to such ports or terminal installations; and (b) in any installations situated in the territory of that Contracting State contributing oil which has been carried by sea and discharged in a port or terminal installation of a non-Contracting State, provided that contributing oil shall only be taken into account by virtue of this sub-paragraph on first receipt in a Contracting State after its discharge in that non-Contracting State. 2. (a) For the purposes of paragraph 1, where the quantity of contributing oil received in the territory of a Contracting State by any person in a calendar year when aggregated with the quantity of contributing oil received in the same Contracting State in that year by any associated person or persons exceeds 150,000 tons, C. 21 Marine Liability and Fed such person shall pay contributions in respect of the actual quantity received by him notwithstanding that that quantity did not exceed 150,000 tons. (b) “Associated person” means any subsidiary or commonly controlled entity. The question whether a person comes within this definition shall be determined by the national law of the State concerned. Article 12 1. With a view to assessing the amount of annual contributions due, if any, and taking account of the necessity to maintain sufficient liquid funds, the Assembly shall for each calendar year make an estimate in the form of a budget of: (i) Expenditure (a) costs and expenses of the administration of the Fund in the relevant year and any deficit from operations in preceding years; (b) payments to be made by the Fund in the relevant year for the satisfaction of claims against the Fund due under Article 4, including repayment on loans previously taken by the Fund for the satisfaction of such claims, to the extent that the aggregate amount of such claims in respect of any one incident does not exceed four million units of account; (c) payments to be made by the Fund in the relevant year for the satisfaction of claims against the Fund due under Article 4, including repayments on loans previously taken by the Fund for the satisfaction of such claims, to the extent that the aggregate amount of such claims in respect of any one incident is in excess of four million units of account; (ii) Income (a) surplus funds from operations in preceding years, including any interest; (b) annual contributions, if required to balance the budget; (c) any other income. 2. The Assembly shall decide the total amount of contributions to be levied. On the basis of that decision, the Director shall, in respect of each Contracting State, calculate for each person referred to in Article 10 the amount of his annual contribution: (a) in so far as the contribution is for the satisfaction of payments referred to in paragraph 1(i)(a) and (b) on the basis of a fixed sum for each ton of contributing oil received in the relevant State by such persons during the preceding calendar year; and (b) in so far as the contribution is for the satisfaction of payments referred to in paragraph 1(i)(c) of this Article on the basis of a fixed sum for each ton of contributing oil received by such person during the calendar year preceding that in which the incident in question occurred, provided that State was a Party to this Convention at the date of the incident. Responsabilité en matière maritim 3. The sums referred to in paragraph 2 above shall be arrived at by dividing the relevant total amount of contributions required by the total amount of contributing oil received in all Contracting States in the relevant year. 4. The annual contribution shall be due on the date to be laid down in the Internal Regulations of the Fund. The Assembly may decide on a different date of payment. 5. The Assembly may decide, under conditions to be laid down in the Financial Regulations of the Fund, to make transfers between funds received in accordance with Article 12.2(a) and funds received in accordance with Article 12.2(b). Article 13 1. The amount of any contribution due under Article 12 and which is in arrears shall bear interest at a rate which shall be determined in accordance with the Internal Regulations of the Fund, provided that different rates may be fixed for different circumstances. 2. Each Contracting State shall ensure that any obligation to contribute to the Fund arising under this Convention in respect of oil received within the territory of that State is fulfilled and shall take any appropriate measures under its law, including the imposing of such sanctions as it may deem necessary, with a view to the effective execution of any such obligation; provided, however, that such measures shall only be directed against those persons who are under an obligation to contribute to the Fund. 3. Where a person who is liable in accordance with the provisions of Articles 10 and 12 to make contributions to the Fund does not fulfil his obligations in respect of any such contribution or any part thereof and is in arrear, the Director shall take all appropriate action against such person on behalf of the Fund with a view to the recovery of the amount due. However, where the defaulting contributor is manifestly insolvent or the circumstances otherwise so warrant, the Assembly may, upon recommendation of the Director, decide that no action shall be taken or continued against the contributor. Article 14 1. Each Contracting State may at the time when it deposits its instrument of ratification or accession or at any time thereafter declare that it assumes itself obligations that are incumbent under this Convention on any person who is liable to contribute to the Fund in accordance with Article 10, paragraph 1, in respect of oil received within the territory of that State. Such declaration shall be made in writing and shall specify which obligations are assumed. 2. Where a declaration under paragraph 1 is made prior to the entry into force of this Convention in accordance with Article 40, it shall be deposited with the Secretary-General of the Organization who shall after the entry into force of the Convention communicate the declaration to the Director. 3. A declaration under paragraph 1 which is made after the entry into force of this Convention shall be deposited with the Director. C. 21 Marine Liability and Fed 4. A declaration made in accordance with this Article may be withdrawn by the relevant State giving notice thereof in writing to the Director. Such notification shall take effect three months after the Director’s receipt thereof. 5. Any State which is bound by a declaration made under this Article shall, in any proceedings brought against it before a competent court in respect of any obligation specified in the declaration, waive any immunity that it would otherwise be entitled to invoke. Article 15 1. Each Contracting State shall ensure that any person who receives contributing oil within its territory in such quantities that he is liable to contribute to the Fund appears on a list to be established and kept up to date by the Director in accordance with the subsequent provisions of this Article. 2. For the purposes set out in paragraph 1, each Contracting State shall communicate, at a time and in the manner to be prescribed in the Internal Regulations, to the Director the name and address of any person who in respect of that State is liable to contribute to the Fund pursuant to Article 10, as well as data on the relevant quantities of contributing oil received by any such person during the preceding calendar year. 3. For the purposes of ascertaining who are, at any given time, the persons liable to contribute to the Fund in accordance with Article 10, paragraph 1, and of establishing, where applicable, the quantities of oil to be taken into account for any such person when determining the amount of his contribution, the list shall be prima facie evidence of the facts stated therein. 4. Where a Contracting State does not fulfil its obligations to submit to the Director the communication referred to in paragraph 2 and this results in a financial loss for the Fund, that Contracting State shall be liable to compensate the Fund for such loss. The Assembly shall, on the recommendation of the Director, decide whether such compensation shall be payable by that Contracting State. Article 36 ter 1. Subject to paragraph 4 of this Article, the aggregate amount of the annual contributions payable in respect of contributing oil received in a single Contracting State during a calendar year shall not exceed 27.5% of the total amount of annual contributions pursuant to the 1992 Protocol to amend the 1971 Fund Convention, in respect of that calendar year. 2. If the application of the provisions in paragraphs 2 and 3 of Article 12 would result in the aggregate amount of the contributions payable by contributors in a single Contracting State in respect of a given calendar year exceeding 27.5% of the total annual contributions, the contributions payable by all contributors in that State shall be reduced pro rata so that their aggregate contributions equal 27.5% of the total annual contributions to the Fund in respect of that year. 3. If the contributions payable by persons in a given Contracting State shall be reduced pursuant to paragraph 2 of this Article, the contributions payable by persons in all other Contracting States shall be increased pro rata so as to ensure that the total amount of Responsabilité en matière maritim contributions payable by all persons liable to contribute to the Fund in respect of the calendar year in question will reach the total amount of contributions decided by the Assembly. 4. The provisions in paragraphs 1 to 3 of this Article shall operate until the total quantity of contributing oil received in all Contracting States in a calendar year has reached 750 million tons or until a period of 5 years after the date of entry into force of the said 1992 Protocol has elapsed, whichever occurs earlier. ARTICLE 29 INFORMATION ON CONTRIBUTING OIL 1. Before this Protocol comes into force for a State, that State shall, when depositing an instrument referred to in Article 28, paragraph 5, and annually thereafter at a date to be determined by the Secretary-General of the Organization, communicate to him the name and address of any person who in respect of that State would be liable to contribute to the Fund pursuant to Article 10 of the 1971 Fund Convention as amended by this Protocol as well as data on the relevant quantities of contributing oil received by any such person in the territory of that State during the preceding calendar year. 2. During the transitional period, the Director shall, for Parties, communicate annually to the Secretary-General of the Organization data on quantities of contributing oil received by persons liable to contribute to the Fund pursuant to Article 10 of the 1971 Fund Convention as amended by this Protocol. ARTICLE 33 AMENDMENT OF COMPENSATION LIMITS 1. Upon the request of at least one quarter of the Contracting States, any proposal to amend the limits of amounts of compensation laid down in Article 4, paragraph 4, of the 1971 Fund Convention as amended by this Protocol shall be circulated by the SecretaryGeneral to all Members of the Organization and to all Contracting States. 2. Any amendment proposed and circulated as above shall be submitted to the Legal Committee of the Organization for consideration at a date at least six months after the date of its circulation. 3. All Contracting States to the 1971 Fund Convention as amended by this Protocol, whether or not Members of the Organization, shall be entitled to participate in the proceedings of the Legal Committee for the consideration and adoption of amendments. 4. Amendments shall be adopted by a two-thirds majority of the Contracting States present and voting in the Legal Committee, expanded as provided for in paragraph 3, on condition that at least one half of the Contracting States shall be present at the time of voting. C. 21 Marine Liability and Fed 5. When acting on a proposal to amend the limits, the Legal Committee shall take into account the experience of incidents and in particular the amount of damage resulting therefrom and changes in the monetary values. It shall also take into account the relationship between the limits in Article 4, paragraph 4, of the 1971 Fund Convention as amended by this Protocol and those in Article V, paragraph 1 of the International Convention on Civil Liability for Oil Pollution Damage, 1992. 6. (a) No amendment of the limits under this Article may be considered before 15 January 1998 nor less than five years from the date of entry into force of a previous amendment under this Article. No amendment under this Article shall be considered before this Protocol has entered into force. (b) No limit may be increased so as to exceed an amount which corresponds to the limit laid down in the 1971 Fund Convention as amended by this Protocol increased by six per cent per year calculated on a compound basis from 15 January 1993. (c) No limit may be increased so as to exceed an amount which corresponds to the limit laid down in the 1971 Fund Convention as amended by this Protocol multiplied by three. 7. Any amendment adopted in accordance with paragraph 4 shall be notified by the Organization to all Contracting States. The amendment shall be deemed to have been accepted at the end of a period of eighteen months after the date of notification unless within that period not less than one quarter of the States that were Contracting States at the time of the adoption of the amendment by the Legal Committee have communicated to the Organization that they do not accept the amendment in which case the amendment is rejected and shall have no effect. 8. An amendment deemed to have been accepted in accordance with paragraph 7 shall enter into force eighteen months after its acceptance. 9. All Contracting States shall be bound by the amendment, unless they denounce this Protocol in accordance with Article 34, paragraphs 1 and 2, at least six months before the amendment enters into force. Such denunciation shall take effect when the amendment enters into force. 10. When an amendment has been adopted by the Legal Committee but the eighteen-month period for its acceptance has not yet expired, a State which becomes a Contracting State during that period shall be bound by the amendment if it enters into force. A State which becomes a Contracting State after that period shall be bound by an amendment which has been accepted in accordance with paragraph 7. In the cases referred to in this paragraph, a State becomes bound by an amendment when that amendment enters into force, or when this Protocol enters into force for that State, if later. Responsabilité en matière maritim ARTICLE 37 WINDING UP OF THE FUND 1. If this Protocol ceases to be in force, the Fund shall nevertheless: (a) meet its obligations in respect of any incident occurring before the Protocol ceased to be in force; (b) be entitled to exercise its rights to contributions to the extent that these contributions are necessary to meet the obligations under sub-paragraph (a), including expenses for the administration of the Fund necessary for this purpose. 2. The Assembly shall take all appropriate measures to complete the winding up of the Fund including the distribution in an equitable manner of any remaining assets among those persons who have contributed to the Fund. 3. For the purposes of this Article the Fund shall remain a legal person. C. 21 Marine Liability and Fed SCHEDULE 7 (Sections 63 and 65) TEXT OF ARTICLES 1 TO 15, 18, 20, 24, 25 AND 29 OF THE PROTOCOL OF 2003 TO THE INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE, 1992 GENERAL PROVISIONS Article 1 For the purposes of this Protocol: 1. “1992 Liability Convention” means the International Convention on Civil Liability for Oil Pollution Damage, 1992; 2. “1992 Fund Convention” means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992; 3. “1992 Fund” means the International Oil Pollution Compensation Fund, 1992, established under the 1992 Fund Convention; 4. “Contracting State” means a Contracting State to this Protocol, unless stated otherwise; 5. When provisions of the 1992 Fund Convention are incorporated by reference into this Protocol, “Fund” in that Convention means “Supplementary Fund”, unless stated otherwise; 6. “Ship”, “Person”, “Owner”, “Oil”, “Pollution Damage”, “Preventive Measures” and “Incident” have the same meaning as in article I of the 1992 Liability Convention; 7. “Contributing Oil”, “Unit of Account”, “Ton”, “Guarantor” and “Terminal installation” have the same meaning as in article 1 of the 1992 Fund Convention, unless stated otherwise; 8. “Established claim” means a claim which has been recognised by the 1992 Fund or been accepted as admissible by decision of a competent court binding upon the 1992 Fund not subject to ordinary forms of review and which would have been fully compensated if the limit set out in article 4, paragraph 4, of the 1992 Fund Convention had not been applied to that incident; 9. “Assembly” means the Assembly of the International Oil Pollution Compensation Supplementary Fund, 2003, unless otherwise indicated; 10. “Organization” means the International Maritime Organization; 11. “Secretary-General” means the Secretary-General of the Organization. Responsabilité en matière maritim Article 2 1. An International Supplementary Fund for compensation for pollution damage, to be named “The International Oil Pollution Compensation Supplementary Fund, 2003” (hereinafter “the Supplementary Fund”), is hereby established. 2. The Supplementary Fund shall in each Contracting State be recognized as a legal person capable under the laws of that State of assuming rights and obligations and of being a party in legal proceedings before the courts of that State. Each Contracting State shall recognize the Director of the Supplementary Fund as the legal representative of the Supplementary Fund. Article 3 This Protocol shall apply exclusively: (a) to pollution damage caused: (i) in the territory, including the territorial sea, of a Contracting State, and (ii) in the exclusive economic zone of a Contracting State, established in accordance with international law, or, if a Contracting State has not established such a zone, in an area beyond and adjacent to the territorial sea of that State determined by that State in accordance with international law and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured; (b) to preventive measures, wherever taken, to prevent or minimize such damage. SUPPLEMENTARY COMPENSATION Article 4 1. The Supplementary Fund shall pay compensation to any person suffering pollution damage if such person has been unable to obtain full and adequate compensation for an established claim for such damage under the terms of the 1992 Fund Convention, because the total damage exceeds, or there is a risk that it will exceed, the applicable limit of compensation laid down in article 4, paragraph 4, of the 1992 Fund Convention in respect of any one incident. 2. (a) The aggregate amount of compensation payable by the Supplementary Fund under this article shall in respect of any one incident be limited, so that the total sum of that amount together with the amount of compensation actually paid under the 1992 Liability Convention and the 1992 Fund Convention within the scope of application of this Protocol shall not exceed 750 million units of account. (b) The amount of 750 million units of account mentioned in paragraph 2(a) shall be converted into national currency on the basis of the value of that currency by reference to the Special Drawing Right on the date determined by the Assembly of the 1992 Fund for conversion of the maximum amount payable under the 1992 Liability and 1992 Fund Conventions. C. 21 Marine Liability and Fed 3. Where the amount of established claims against the Supplementary Fund exceeds the aggregate amount of compensation payable under paragraph 2, the amount available shall be distributed in such a manner that the proportion between any established claim and the amount of compensation actually recovered by the claimant under this Protocol shall be the same for all claimants. 4. The Supplementary Fund shall pay compensation in respect of established claims as defined in article 1, paragraph 8, and only in respect of such claims. Article 5 The Supplementary Fund shall pay compensation when the Assembly of the 1992 Fund has considered that the total amount of the established claims exceeds, or there is a risk that the total amount of established claims will exceed the aggregate amount of compensation available under article 4, paragraph 4, of the 1992 Fund Convention and that as a consequence the Assembly of the 1992 Fund has decided provisionally or finally that payments will only be made for a proportion of any established claim. The Assembly of the Supplementary Fund shall then decide whether and to what extent the Supplementary Fund shall pay the proportion of any established claim not paid under the 1992 Liability Convention and the 1992 Fund Convention. Article 6 1. Subject to article 15, paragraphs 2 and 3, rights to compensation against the Supplementary Fund shall be extinguished only if they are extinguished against the 1992 Fund under article 6 of the 1992 Fund Convention. 2. A claim made against the 1992 Fund shall be regarded as a claim made by the same claimant against the Supplementary Fund. Article 7 1. The provisions of article 7, paragraphs 1, 2, 4, 5 and 6, of the 1992 Fund Convention shall apply to actions for compensation brought against the Supplementary Fund in accordance with article 4, paragraph 1, of this Protocol. 2. Where an action for compensation for pollution damage has been brought before a court competent under article IX of the 1992 Liability Convention against the owner of a ship or his guarantor, such court shall have exclusive jurisdictional competence over any action against the Supplementary Fund for compensation under the provisions of article 4 of this Protocol in respect of the same damage. However, where an action for compensation for pollution damage under the 1992 Liability Convention has been brought before a court in a Contracting State to the 1992 Liability Convention but not to this Protocol, any action against the Supplementary Fund under article 4 of this Protocol shall at the option of the claimant be brought either before a court of the State where the Supplementary Fund has its headquarters or before any court of a Contracting State to this Protocol competent under article IX of the 1992 Liability Convention. Responsabilité en matière maritim 3. Notwithstanding paragraph 1, where an action for compensation for pollution damage against the 1992 Fund has been brought before a court in a Contracting State to the 1992 Fund Convention but not to this Protocol, any related action against the Supplementary Fund shall, at the option of the claimant, be brought either before a court of the State where the Supplementary Fund has its headquarters or before any court of a Contracting State competent under paragraph 1. Article 8 1. Subject to any decision concerning the distribution referred to in article 4, paragraph 3 of this Protocol, any judgment given against the Supplementary Fund by a court having jurisdiction in accordance with article 7 of this Protocol, shall, when it has become enforceable in the State of origin and is in that State no longer subject to ordinary forms of review, be recognized and enforceable in each Contracting State on the same conditions as are prescribed in article X of the 1992 Liability Convention. 2. A Contracting State may apply other rules for the recognition and enforcement of judgments, provided that their effect is to ensure that judgments are recognised and enforced at least to the same extent as under paragraph 1. Article 9 1. The Supplementary Fund shall, in respect of any amount of compensation for pollution damage paid by the Supplementary Fund in accordance with article 4, paragraph 1, of this Protocol, acquire by subrogation the rights that the person so compensated may enjoy under the 1992 Liability Convention against the owner or his guarantor. 2. The Supplementary Fund shall acquire by subrogation the rights that the person compensated by it may enjoy under the 1992 Fund Convention against the 1992 Fund. 3. Nothing in this Protocol shall prejudice any right of recourse or subrogation of the Supplementary Fund against persons other than those referred to in the preceding paragraphs. In any event the right of the Supplementary Fund to subrogation against such person shall not be less favourable than that of an insurer of the person to whom compensation has been paid. 4. Without prejudice to any other rights of subrogation or recourse against the Supplementary Fund which may exist, a Contracting State or agency thereof which has paid compensation for pollution damage in accordance with provisions of national law shall acquire by subrogation the rights which the person so compensated would have enjoyed under this Protocol. C. 21 Marine Liability and Fed CONTRIBUTIONS Article 10 1. Annual contributions to the Supplementary Fund shall be made in respect of each Contracting State by any person who, in the calendar year referred to in article 11, paragraph 2(a) or (b), has received in total quantities exceeding 150,000 tons: (a) in the ports or terminal installations in the territory of that State contributing oil carried by sea to such ports or terminal installations; and (b) in any installations situated in the territory of that Contracting State contributing oil which has been carried by sea and discharged in a port or terminal installation of a non-Contracting State, provided that contributing oil shall only be taken into account by virtue of this sub-paragraph on first receipt in a Contracting State after its discharge in that non-Contracting State. 2. The provisions of article 10, paragraph 2, of the 1992 Fund Convention shall apply in respect of the obligation to pay contributions to the Supplementary Fund. Article 11 1. With a view to assessing the amount of annual contributions due, if any, and taking account of the necessity to maintain sufficient liquid funds, the Assembly shall for each calendar year make an estimate in the form of a budget of: (i) Expenditure (a) costs and expenses of the administration of the Supplementary Fund in the relevant year and any deficit from operations in preceding years; (b) payments to be made by the Supplementary Fund in the relevant year for the satisfaction of claims against the Supplementary Fund due under article 4, including repayments on loans previously taken by the Supplementary Fund for the satisfaction of such claims; (ii) Income (a) surplus funds from operations in preceding years, including any interest; (b) annual contributions, if required to balance the budget; (c) any other income. 2. The Assembly shall decide the total amount of contributions to be levied. On the basis of that decision, the Director of the Supplementary Fund shall, in respect of each Contracting State, calculate for each person referred to in article 10, the amount of that person’s annual contribution: Responsabilité en matière maritim (a) in so far as the contribution is for the satisfaction of payments referred to in paragraph 1(i)(a) on the basis of a fixed sum for each ton of contributing oil received in the relevant State by such person during the preceding calendar year; and (b) in so far as the contribution is for the satisfaction of payments referred to in paragraph 1(i)(b) on the basis of a fixed sum for each ton of contributing oil received by such person during the calendar year preceding that in which the incident in question occurred, provided that State was a Contracting State to this Protocol at the date of the incident. 3. The sums referred to in paragraph 2 shall be arrived at by dividing the relevant total amount of contributions required by the total amount of contributing oil received in all Contracting States in the relevant year. 4. The annual contribution shall be due on the date to be laid down in the Internal Regulations of the Supplementary Fund. The Assembly may decide on a different date of payment. 5. The Assembly may decide, under conditions to be laid down in the Financial Regulations of the Supplementary Fund, to make transfers between funds received in accordance with paragraph 2(a) and funds received in accordance with paragraph 2(b). Article 12 1. The provisions of article 13 of the 1992 Fund Convention shall apply to contributions to the Supplementary Fund. 2. A Contracting State itself may assume the obligation to pay contributions to the Supplementary Fund in accordance with the procedure set out in article 14 of the 1992 Fund Convention. Article 13 1. Contracting States shall communicate to the Director of the Supplementary Fund information on oil receipts in accordance with article 15 of the 1992 Fund Convention provided, however, that communications made to the Director of the 1992 Fund under article 15, paragraph 2, of the 1992 Fund Convention shall be deemed to have been made also under this Protocol. 2. Where a Contracting State does not fulfil its obligations to submit the communication referred to in paragraph 1 and this results in a financial loss for the Supplementary Fund, that Contracting State shall be liable to compensate the Supplementary Fund for such loss. The Assembly shall, on the recommendation of the Director of the Supplementary Fund, decide whether such compensation shall be payable by that Contracting State. Article 14 1. Notwithstanding article 10, for the purposes of this Protocol there shall be deemed to be a minimum receipt of 1 million tons of contributing oil in each Contracting State. C. 21 Marine Liability and Fed 2. When the aggregate quantity of contributing oil received in a Contracting State is less than 1 million tons, the Contracting State shall assume the obligations that would be incumbent under this Protocol on any person who would be liable to contribute to the Supplementary Fund in respect of oil received within the territory of that State in so far as no liable person exists for the aggregated quantity of oil received. Article 15 1. If in a Contracting State there is no person meeting the conditions of article 10, that Contracting State shall for the purposes of this Protocol inform the Director of the Supplementary Fund thereof. 2. No compensation shall be paid by the Supplementary Fund for pollution damage in the territory, territorial sea or exclusive economic zone or area determined in accordance with article 3(a)(ii), of this Protocol, of a Contracting State in respect of a given incident or for preventive measures, wherever taken, to prevent or minimize such damage, until the obligations to communicate to the Director of the Supplementary Fund according to article 13, paragraph 1 and paragraph 1 of this article have been complied with in respect of that Contracting State for all years prior to the occurrence of that incident. The Assembly shall determine in the Internal Regulations the circumstances under which a Contracting State shall be considered as having failed to comply with its obligations. 3. Where compensation has been denied temporarily in accordance with paragraph 2, compensation shall be denied permanently in respect of that incident if the obligations to communicate to the Director of the Supplementary Fund under article 13, paragraph 1 and paragraph 1 of this article, have not been complied with within one year after the Director of the Supplementary Fund has notified the Contracting State of its failure to report. 4. Any payments of contributions due to the Supplementary Fund shall be set off against compensation due to the debtor, or the debtor’s agents. Article 18 Transitional Provisions 1. Subject to paragraph 4, the aggregate amount of the annual contributions payable in respect of contributing oil received in a single Contracting State during a calendar year shall not exceed 20% of the total amount of annual contributions pursuant to this Protocol in respect of that calendar year. 2. If the application of the provisions in article 11, paragraphs 2 and 3, would result in the aggregate amount of the contributions payable by contributors in a single Contracting State in respect of a given calendar year exceeding 20% of the total annual contributions, the contributions payable by all contributors in that State shall be Responsabilité en matière maritim reduced pro rata so that their aggregate contributions equal 20% of the total annual contributions to the Supplementary Fund in respect of that year. 3. If the contributions payable by persons in a given Contracting State shall be reduced pursuant to paragraph 2, the contributions payable by persons in all other Contracting States shall be increased pro rata so as to ensure that the total amount of contributions payable by all persons liable to contribute to the Supplementary Fund in respect of the calendar year in question will reach the total amount of contributions decided by the Assembly. 4. The provisions in paragraphs 1 to 3 shall operate until the total quantity of contributing oil received in all Contracting States in a calendar year, including the quantities referred to in article 14, paragraph 1, has reached 1,000 million tons or until a period of 10 years after the date of entry into force of this Protocol has elapsed, whichever occurs earlier. FINAL CLAUSES Article 20 Information on Contributing Oil Before this Protocol comes into force for a State, that State shall, when signing this Protocol in accordance with article 19, paragraph 2(a), or when depositing an instrument referred to in article 19, paragraph 4 of this Protocol, and annually thereafter at a date to be determined by the Secretary-General, communicate to the SecretaryGeneral the name and address of any person who in respect of that State would be liable to contribute to the Supplementary Fund pursuant to article 10 as well as data on the relevant quantities of contributing oil received by any such person in the territory of that State during the preceding calendar year. Article 24 Amendment of Compensation Limit 1. Upon the request of at least one quarter of the Contracting States, any proposal to amend the limit of the amount of compensation laid down in article 4, paragraph 2 (a), shall be circulated by the Secretary-General to all Members of the Organization and to all Contracting States. 2. Any amendment proposed and circulated as above shall be submitted to the Legal Committee of the Organization for consideration at a date at least six months after the date of its circulation. 3. All Contracting States to this Protocol, whether or not Members of the Organization, shall be entitled to participate in the proceedings of the Legal Committee for the consideration and adoption of amendments. 4. Amendments shall be adopted by a two-thirds majority of the Contracting States present and voting in the Legal Committee, expanded as provided for in paragraph 3, on condition that at least one half of the Contracting States shall be present at the time of voting. C. 21 Marine Liability and Fed 5. When acting on a proposal to amend the limit, the Legal Committee shall take into account the experience of incidents and in particular the amount of damage resulting therefrom and changes in the monetary values. 6. (a) No amendments of the limit under this article may be considered before the date of entry into force of this Protocol nor less than three years from the date of entry into force of a previous amendment under this article. (b) The limit may not be increased so as to exceed an amount which corresponds to the limit laid down in this Protocol increased by six per cent per year calculated on a compound basis from the date when this Protocol is opened for signature to the date on which the Legal Committee’s decision comes into force. (c) The limit may not be increased so as to exceed an amount which corresponds to the limit laid down in this Protocol multiplied by three. 7. Any amendment adopted in accordance with paragraph 4 shall be notified by the Organization to all Contracting States. The amendment shall be deemed to have been accepted at the end of a period of twelve months after the date of notification, unless within that period not less than one quarter of the States that were Contracting States at the time of the adoption of the amendment by the Legal Committee have communicated to the Organization that they do not accept the amendment, in which case the amendment is rejected and shall have no effect. 8. An amendment deemed to have been accepted in accordance with paragraph 7 shall enter into force twelve months after its acceptance. 9. All Contracting States shall be bound by the amendment, unless they denounce this Protocol in accordance with article 26, paragraphs 1 and 2, at least six months before the amendment enters into force. Such denunciation shall take effect when the amendment enters into force. 10. When an amendment has been adopted by the Legal Committee but the twelve-month period for its acceptance has not yet expired, a State which becomes a Contracting State during that period shall be bound by the amendment if it enters into force. A State which becomes a Contracting State after that period shall be bound by an amendment which has been accepted in accordance with paragraph 7 . In the cases referred to in this paragraph, a State becomes bound by an amendment when that amendment enters into force, or when this Protocol enters into force for that State, if later. Article 25 Protocols to the 1992 Fund Convention 1. If the limits laid down in the 1992 Fund Convention have been increased by a Protocol thereto, the limit laid down in article 4, paragraph 2(a), may be increased by the same amount by means of the procedure set out in article 24. The provisions of article 24, paragraph 6, shall not apply in such cases. Responsabilité en matière maritim 2. If the procedure referred to in paragraph 1 has been applied, any subsequent amendment of the limit laid down in article 4, paragraph 2, by application of the procedure in article 24 shall, for the purpose of article 24, paragraphs 6(b) and (c), be calculated on the basis of the new limit as increased in accordance with paragraph 1. Article 29 Winding up of the Supplementary Fund 1. If this Protocol ceases to be in force, the Supplementary Fund shall nevertheless: (a) meet its obligations in respect of any incident occurring before the Protocol ceased to be in force; (b) be entitled to exercise its rights to contributions to the extent that these contributions are necessary to meet the obligations under paragraph 1(a), including expenses for the administration of the Supplementary Fund necessary for this purpose. 2. The Assembly shall take all appropriate measures to complete the winding up of the Supplementary Fund, including the distribution in an equitable manner of any remaining assets among those persons who have contributed to the Supplementary Fund. 3. For the purposes of this article the Supplementary Fund shall remain a legal person. C. 21 Marine Liability and Fed SCHEDULE 8 (Section 69) TEXT OF ARTICLES 1 TO 10 OF THE INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR BUNKER OIL POLLUTION DAMAGE, 2001 ARTICLE 1 DEFINITIONS For the purposes of this Convention: 1. “Ship” means any seagoing vessel and seaborne craft, of any type whatsoever. 2. “Person” means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions. 3. “Shipowner” means the owner, including the registered owner, bareboat charterer, manager and operator of the ship. 4. “Registered owner” means the person or persons registered as the owner of the ship or, in the absence of registration, the person or persons owning the ship. However, in the case of a ship owned by a State and operated by a company which in that State is registered as the ship’s operator, “registered owner” shall mean such company. 5. “Bunker oil” means any hydrocarbon mineral oil, including lubricating oil, used or intended to be used for the operation or propulsion of the ship, and any residues of such oil. 6. “Civil Liability Convention” means the International Convention on Civil Liability for Oil Pollution Damage, 1992, as amended. 7. “Preventive measures” means any reasonable measures taken by any person after an incident has occurred to prevent or minimize pollution damage. 8. “Incident” means any occurrence or series of occurrences having the same origin, which causes pollution damage or creates a grave and imminent threat of causing such damage. 9. “Pollution damage” means: (a) loss or damage caused outside the ship by contamination resulting from the escape or discharge of bunker oil from the ship, wherever such escape or discharge may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken; and (b) the costs of preventive measures and further loss or damage caused by preventive measures. Responsabilité en matière maritim 10. “State of the ship’s registry” means, in relation to a registered ship, the State of registration of the ship and, in relation to an unregistered ship, the State whose flag the ship is entitled to fly. 11. “Gross tonnage” means gross tonnage calculated in accordance with the tonnage measurement regulations contained in Annex 1 of the International Convention on Tonnage Measurement of Ships, 1969. 12. “Organization” means the International Maritime Organization. 13. “Secretary-General” means the Secretary-General of the Organization. ARTICLE 2 SCOPE OF APPLICATION This Convention shall apply exclusively: (a) to pollution damage caused: (i) in the territory, including the territorial sea, of a State Party, and (ii) in the exclusive economic zone of a State Party, established in accordance with international law, or, if a State Party has not established such a zone, in an area beyond and adjacent to the territorial sea of that State determined by that State in accordance with international law and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured; (b) to preventive measures, wherever taken, to prevent or minimize such damage. ARTICLE 3 LIABILITY OF THE SHIPOWNER 1. Except as provided in paragraphs 3 and 4, the shipowner at the time of an incident shall be liable for pollution damage caused by any bunker oil on board or originating from the ship, provided that, if an incident consists of a series of occurrences having the same origin, the liability shall attach to the shipowner at the time of the first of such occurrences. 2. Where more than one person is liable in accordance with paragraph 1, their liability shall be joint and several. 3. No liability for pollution damage shall attach to the shipowner if the shipowner proves that: (a) the damage resulted from an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character; or (b) the damage was wholly caused by an act or omission done with the intent to cause damage by a third party; or (c) the damage was wholly caused by the negligence or other wrongful act of any Government or other authority responsible for the maintenance of lights or other navigational aids in the exercise of that function. C. 21 Marine Liability and Fed 4. If the shipowner proves that the pollution damage resulted wholly or partially either from an act or omission done with intent to cause damage by the person who suffered the damage or from the negligence of that person, the shipowner may be exonerated wholly or partially from liability to such person. 5. No claim for compensation for pollution damage shall be made against the shipowner otherwise than in accordance with this Convention. 6. Nothing in this Convention shall prejudice any right of recourse of the shipowner which exists independently of this Convention. ARTICLE 4 EXCLUSIONS 1. This Convention shall not apply to pollution damage as defined in the Civil Liability Convention, whether or not compensation is payable in respect of it under that Convention. 2. Except as provided in paragraph 3, the provisions of this Convention shall not apply to warships, naval auxiliary or other ships owned or operated by a State and used, for the time being, only on Government non-commercial service. 3. A State Party may decide to apply this Convention to its warships or other ships described in paragraph 2, in which case it shall notify the Secretary-General thereof specifying the terms and conditions of such application. 4. With respect to ships owned by a State Party and used for commercial purposes, each State shall be subject to suit in the jurisdictions set forth in article 9 and shall waive all defences based on its status as a sovereign State. ARTICLE 5 INCIDENTS INVOLVING TWO OR MORE SHIPS When an incident involving two or more ships occurs and pollution damage results therefrom, the shipowners of all the ships concerned, unless exonerated under article 3, shall be jointly and severally liable for all such damage which is not reasonably separable. ARTICLE 6 LIMITATION OF LIABILITY Nothing in this Convention shall affect the right of the shipowner and the person or persons providing insurance or other financial security to limit liability under any applicable national or international regime, such as the Convention on Limitation of Liability for Maritime Claims, 1976, as amended. Responsabilité en matière maritim ARTICLE 7 COMPULSORY INSURANCE OR FINANCIAL SECURITY 1. The registered owner of a ship having a gross tonnage greater than 1000 registered in a State Party shall be required to maintain insurance or other financial security, such as the guarantee of a bank or similar financial institution, to cover the liability of the registered owner for pollution damage in an amount equal to the limits of liability under the applicable national or international limitation regime, but in all cases, not exceeding an amount calculated in accordance with the Convention on Limitation of Liability for Maritime Claims, 1976, as amended. 2. A certificate attesting that insurance or other financial security is in force in accordance with the provisions of this Convention shall be issued to each ship after the appropriate authority of a State Party has determined that the requirements of paragraph 1 have been complied with. With respect to a ship registered in a State Party such certificate shall be issued or certified by the appropriate authority of the State of the ship’s registry; with respect to a ship not registered in a State Party it may be issued or certified by the appropriate authority of any State Party. This certificate shall be in the form of the model set out in the annex to this Convention and shall contain the following particulars: (a) name of ship, distinctive number or letters and port of registry; (b) name and principal place of business of the registered owner; (c) IMO ship identification number; (d) type and duration of security; (e) name and principal place of business of insurer or other person giving security and, where appropriate, place of business where the insurance or security is established; (f) period of validity of the certificate which shall not be longer than the period of validity of the insurance or other security. 3. (a) A State Party may authorize either an institution or an organization recognized by it to issue the certificate referred to in paragraph 2. Such institution or organization shall inform that State of the issue of each certificate. In all cases, the State Party shall fully guarantee the completeness and accuracy of the certificate so issued and shall undertake to ensure the necessary arrangements to satisfy this obligation. (b) A State Party shall notify the Secretary-General of : (i) the specific responsibilities and conditions of the authority delegated to an institution or organization recognised by it; (ii) the withdrawal of such authority; and (iii) the date from which such authority or withdrawal of such authority takes effect. An authority delegated shall not take effect prior to three months from the date on which notification to that effect was given to the Secretary-General. C. 21 Marine Liability and Fed (c) The institution or organization authorized to issue certificates in accordance with this paragraph shall, as a minimum, be authorized to withdraw these certificates if the conditions under which they have been issued are not maintained. In all cases the institution or organization shall report such withdrawal to the State on whose behalf the certificate was issued. 4. The certificate shall be in the official language or languages of the issuing State. If the language used is not English, French or Spanish, the text shall include a translation into one of these languages and, where the State so decides, the official language of the State may be omitted. 5. The certificate shall be carried on board the ship and a copy shall be deposited with the authorities who keep the record of the ship’s registry or, if the ship is not registered in a State Party, with the authorities issuing or certifying the certificate. 6. An insurance or other financial security shall not satisfy the requirements of this article if it can cease, for reasons other than the expiry of the period of validity of the insurance or security specified in the certificate under paragraph 2 of this article, before three months have elapsed from the date on which notice of its termination is given to the authorities referred to in paragraph 5 of this article, unless the certificate has been surrendered to these authorities or a new certificate has been issued within the said period. The foregoing provisions shall similarly apply to any modification which results in the insurance or security no longer satisfying the requirements of this article. 7. The State of the ship’s registry shall, subject to the provisions of this article, determine the conditions of issue and validity of the certificate. 8. Nothing in this Convention shall be construed as preventing a State Party from relying on information obtained from other States or the Organization or other international organisations relating to the financial standing of providers of insurance or financial security for the purposes of this Convention. In such cases, the State Party relying on such information is not relieved of its responsibility as a State issuing the certificate required by paragraph 2. 9. Certificates issued or certified under the authority of a State Party shall be accepted by other States Parties for the purposes of this Convention and shall be regarded by other States Parties as having the same force as certificates issued or certified by them even if issued or certified in respect of a ship not registered in a State Party. A State Party may at any time request consultation with the issuing or certifying State should it believe that the insurer or guarantor named in the insurance certificate is not financially capable of meeting the obligations imposed by this Convention. 10. Any claim for compensation for pollution damage may be brought directly against the insurer or other person providing financial security for the registered owner’s liability for pollution damage. In such a case the defendant may invoke the defences (other than bankruptcy or winding up of the shipowner) which the shipowner would have been entitled to invoke, including limitation pursuant to article 6. Furthermore, even if the shipowner is not entitled to limitation of liability according to article 6, the defendant Responsabilité en matière maritim may limit liability to an amount equal to the amount of the insurance or other financial security required to be maintained in accordance with paragraph 1. Moreover, the defendant may invoke the defence that the pollution damage resulted from the wilful misconduct of the shipowner, but the defendant shall not invoke any other defence which the defendant might have been entitled to invoke in proceedings brought by the shipowner against the defendant. The defendant shall in any event have the right to require the shipowner to be joined in the proceedings. 11. A State Party shall not permit a ship under its flag to which this article applies to operate at any time, unless a certificate has been issued under paragraphs 2 or 14. 12. Subject to the provisions of this article, each State Party shall ensure, under its national law, that insurance or other security, to the extent specified in paragraph 1, is in force in respect of any ship having a gross tonnage greater than 1000, wherever registered, entering or leaving a port in its territory, or arriving at or leaving an offshore facility in its territorial sea. 13. Notwithstanding the provisions of paragraph 5, a State Party may notify the Secretary-General that, for the purposes of paragraph 12, ships are not required to carry on board or to produce the certificate required by paragraph 2, when entering or leaving ports or arriving at or leaving from offshore facilities in its territory, provided that the State Party which issues the certificate required by paragraph 2 has notified the Secretary-General that it maintains records in an electronic format, accessible to all States Parties, attesting the existence of the certificate and enabling States Parties to discharge their obligations under paragraph 12. 14. If insurance or other financial security is not maintained in respect of a ship owned by a State Party, the provisions of this article relating thereto shall not be applicable to such ship, but the ship shall carry a certificate issued by the appropriate authority of the State of the ship’s registry stating that the ship is owned by that State and that the ship’s liability is covered within the limit prescribed in accordance with paragraph 1. Such a certificate shall follow as closely as possible the model prescribed by paragraph 2. 15. A State may, at the time of ratification, acceptance, approval of, or accession to this Convention, or at any time thereafter, declare that this article does not apply to ships operating exclusively within the area of that State referred to in article 2(a)(i). ARTICLE 8 TIME LIMITS Rights to compensation under this Convention shall be extinguished unless an action is brought thereunder within three years from the date when the damage occurred. However, in no case shall an action be brought more than six years from the date of the incident which caused the damage. Where the incident consists of a series of occurrences, the six-years’ period shall run from the date of the first such occurrence. C. 21 Marine Liability and Fed ARTICLE 9 JURISDICTION 1. Where an incident has caused pollution damage in the territory, including the territorial sea, or in an area referred to in article 2(a)(ii) of one or more States Parties, or preventive measures have been taken to prevent or minimise pollution damage in such territory, including the territorial sea, or in such area, actions for compensation against the shipowner, insurer or other person providing security for the shipowner’s liability may be brought only in the courts of any such States Parties. 2. Reasonable notice of any action taken under paragraph 1 shall be given to each defendant. 3. Each State Party shall ensure that its courts have jurisdiction to entertain actions for compensation under this Convention. ARTICLE 10 RECOGNITION AND ENFORCEMENT 1. Any judgement given by a Court with jurisdiction in accordance with article 9 which is enforceable in the State of origin where it is no longer subject to ordinary forms of review, shall be recognised in any State Party, except: (a) where the judgement was obtained by fraud; or (b) where the defendant was not given reasonable notice and a fair opportunity to present his or her case. 2. A judgement recognised under paragraph 1 shall be enforceable in each State Party as soon as the formalities required in that State have been complied with. The formalities shall not permit the merits of the case to be re-opened. Responsabilité en matière maritim ANNEX CERTIFICATE OF INSURANCE OR OTHER FINANCIAL SECURITY IN RESPECT OF CIVIL LIABILITY FOR BUNKER OIL POLLUTION DAMAGE Issued in accordance with the provisions of article 7 of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 Name of Ship Distinctive number or letters IMO Ship Identification Number Port of registry Name and full address of the principal place of business of the registered owner This is to certify that there is in force in respect of the above-named ship a policy of insurance or other financial security satisfying the requirements of article 7 of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001. Type of Security ................................................................................. Duration of Security ........................................................................... Name and address of the insurer(s) and/or guarantor(s) Name ................................................................................................... Address................................................................................................ This certificate is valid until.................................................. Issued or certified by the Government of ............................. ................................................................................................ (Full designation of the State) OR C. 21 Marine Liability and Fed The following text should be used when a State Party avails itself of article 7(3) The present certificate is issued under the authority of the Government of ........ (full designation of the State) by ........ (name of institution or organization) At ........................................ On ........................................ (Place) (Date) ...................................... (Signature and Title of issuing or certifying official) Explanatory Notes: 1. If desired, the designation of the State may include a reference to the competent public authority of the country where the Certificate is issued. 2. If the total amount of security has been furnished by more than one source, the amount of each of them should be indicated. 3. If security is furnished in several forms, these should be enumerated. 4. The entry “Duration of Security” must stipulate the date on which such security takes effect. 5. The entry “Address” of the insurer(s) and/or guarantor(s) must indicate the principal place of business of the insurer(s) and/or guarantor(s). If appropriate, the place of business where the insurance or other security is established shall be indicated. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 23 An Act respecting not-for-profit corporations and certain other corporations ASSENTED TO 23rd JUNE, 2009 BILL C-4 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act respecting not-for-profit corporations and certain other corporations”. SUMMARY This enactment establishes a framework for the governance of not-for-profit corporations and other corporations without share capital, mainly based on the Canada Business Corporations Act. The enactment replaces the “letters patent” system of incorporation by an “as of right” system of incorporation. The current requirement for ministerial review of letters patent and by-laws prior to incorporation is replaced by the granting of incorporation upon the sending of required information and payment of a fee. The enactment provides for modern corporate governance standards, including the rights, powers, duties and liabilities of directors and officers, along with related defences, and financial accountability and disclosure requirements. The enactment sets out the capacity and powers of a corporation as a natural person, including its right to buy and sell property, make investments, borrow funds and issue debt obligations. The enactment sets out the rights of members, including the right to vote at a meeting of members, call a special meeting of members, advance proposals for consideration at meetings of members and access corporate records. The enactment provides requirements for financial review by a public accountant and financial disclosure based on whether a corporation has solicited funds and its level of annual revenue. The enactment gives the Director powers of administration, including the power to make inquiries related to compliance and to access key corporate documents such as financial statements and membership lists. The enactment includes remedies for members and other interested persons to address the conduct of a corporation that is oppressive or unfairly prejudicial to or unfairly disregards the interests of any creditor, director, officer or member. The enactment provides procedures for the amalgamation, continuance, liquidation and dissolution of a corporation and other fundamental corporate changes. The continuance provisions govern the continuance of bodies incorporated under other Acts and provide a power for the Governor in Council to require a federal body corporate without share capital to apply for continuance under the enactment or be dissolved. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca The enactment modernizes the legal regime that applies to corporations without share capital created by special Acts of Parliament by providing that those corporations are natural persons, requiring the holding of an annual meeting and the sending of an annual return, and regulating a change of a corporation’s name and its dissolution. The enactment gives corporations with share capital created by special Acts of Parliament and subject to Part IV of the Canada Corporations Act six months to apply for continuance under the Canada Business Corporations Act or be dissolved. The enactment makes a number of consequential amendments to other federal Acts. It provides for a phased repeal of the Canada Corporations Act as corporations cease being subject to the Parts of that Act. TABLE OF PROVISIONS AN ACT RESPECTING NOT-FOR-PROFIT CORPORATIONS AND CERTAIN OTHER CORPORATIONS SHORT TITLE 1. Canada Not-for-profit Corporations Act PART 1 INTERPRETATION AND APPLICATION INTERPRETATION 2. Definitions APPLICATION 3. Application of Act PURPOSE 4. Purpose 5. Power of Governor in Council DESIGNATION OF MINISTER PART 2 INCORPORATION 6. Incorporators 7. Articles of incorporation 8. Delivery of articles of incorporation 9. Certificate of incorporation 10. Effect of certificate 11. Alternate name 12. Reserving name 13. Prohibited names 14. Certificate of amendment 15. Pre-incorporation and pre-amalgamation contracts PART 3 CAPACITY AND POWERS 16. Capacity of a corporation 17. Powers of a corporation i 18. No constructive notice 19. Authority of directors, officers, agents and mandataries PART 4 REGISTERED OFFICE AND RECORDS 20. Registered office 21. Corporate records 22. Access to corporate records 23. Requirement for statutory declaration — register of members 24. Examination by Director 25. Application for authorization — corporation 26. Form of records 27. Validity of unsealed documents PART 5 CORPORATE FINANCE 28. Borrowing powers 29. Repayment 30. Annual contributions or dues 31. Ownership of property 32. Directors not trustees 33. Investments by corporation 34. Distribution of property, accretions or profits 35. Surrendered memberships 36. Liability PART 6 DEBT OBLIGATIONS, CERTIFICATES, REGISTERS AND TRANSFERS INTERPRETATION 37. Definitions DEBT OBLIGATION CERTIFICATES 38. Debt obligation certificate 39. Fee 40. Jointly held debt obligations 41. Signatures 42. Contents of certificate 43. Contents of certificate ii REGISTERS 44. Registers 45. Agent or mandatary 46. Registration 47. Trustee 48. Constructive registered holder 49. Proof of ownership 50. Joint holder 51. Duties of issuer 52. Minors 53. Deceased owner 54. Overissue PROCEEDINGS 55. Rules of action DELIVERY 56. Delivery of debt obligations GENERAL 57. Incorporation by reference 58. Validity of debt obligation 59. Defence 60. Defences 61. Deemed notice 62. Unauthorized signature 63. Completion of debt obligation 64. Enforceability 65. Fraud 66. Guarantees 67. Acquisition of rights 68. Limitation of the purchase 69. Deemed notice 70. No duty to inquire 71. Deemed notice 72. Staleness 73. Guarantee 74. Content of guarantee 75. Guarantee of intermediary 76. Guarantee of broker iv 77. Right to compel endorsement 78. Definition of “appropriate” 79. Endorsement 80. Immunity of endorser 81. Partial endorsement 82. Effect of failure by fiduciary to comply 83. Effect of endorsement 84. Endorsement in bearer form 85. Effect of unauthorized endorsement 86. Warranties of guarantor of signature 87. Presumption of delivery 88. Presumption of ownership 89. Delivery of debt obligation 90. Right to reclaim possession 91. Right to requisites for registration 92. Seizure of debt obligation 93. Not liable if good faith delivery 94. Duty to register transfer 95. Assurance of endorsement 96. Notice from additional documentation 97. Limited duty of inquiry 98. Inquiry into adverse claim 99. Duration of notice of adverse claim 100. Limitation on issuer’s liability 101. Lost or stolen debt obligation 102. Duty 103. Notice to agent or mandatary PART 7 TRUST INDENTURES 104. Definitions 105. Conflict of interest 106. Qualification of trustee 107. List of debt obligation holders 108. Evidence of compliance 109. Contents of declaration, etc. 110. Further evidence of compliance 111. Trustee may require evidence of compliance 112. Notice of default 113. Duties of trustee v 114. Reliance on statements 115. No exculpation PART 8 RECEIVERS, RECEIVER-MANAGERS AND SEQUESTRATORS 116. Functions of receiver or sequestrator 117. Functions of receiver-manager 118. Directors’ powers cease 119. Duty to act 120. Duty under instrument or act 121. Duty of care 122. Orders given by court 123. Duties of receiver and receiver-manager PART 9 DIRECTORS AND OFFICERS 124. Duty to manage or supervise management 125. Number of directors 126. Qualifications of directors 127. Organization meeting 128. Notice of directors 129. Ceasing to hold office 130. Removal of directors 131. Statement of director 132. Filling vacancy 133. Change in number of directors 134. Notice of change of director or director’s address 135. Attendance at meeting 136. Meeting of directors 137. Decisions made by consensus 138. Delegation 139. Validity of acts of directors and officers 140. Validity of signed resolutions 141. Disclosure of interest 142. Officers 143. Remuneration 144. Indemnification 145. Directors’ liability 146. Liability of directors for wages 147. Dissent v 148. Duties of directors and officers 149. Director — reasonable diligence 150. Officer — reasonable diligence 151. Indemnification PART 10 BY-LAWS AND MEMBERS 152. By-laws 153. Copies to Director 154. Conditions of membership 155. Issuance of memberships 156. Termination of membership 157. Termination of member’s rights 158. Power to discipline a member 159. Place of meetings 160. Calling annual meetings 161. Fixing record date 162. Notice provided for in by-laws 163. Right to submit and discuss 164. Quorum set in by-laws 165. Voting 166. Resolution in lieu of meeting 167. Requisition of meeting 168. Meeting called by court 169. Court review of election 170. Unanimous member agreement 171. Absentee voting PART 11 FINANCIAL DISCLOSURE 172. Annual financial statements 173. Application for exemption 174. Consolidated statements 175. Copies to members 176. Copies to Director 177. Copies to Director 178. Approval of financial statements vi PART 12 PUBLIC ACCOUNTANT 179. Definition of “designated corporation” 180. Qualification of public accountant 181. Appointment of public accountant 182. Dispensing with public accountant 183. Ceasing to hold office 184. Removal of public accountant 185. Filling vacancy 186. Court-appointed public accountant 187. Right to attend meeting 188. Review engagement — designated corporations 189. Audit engagement — other corporations 190. Deemed revenues 191. Report on financial statements 192. Reliance on other public accountant 193. Right to information 194. Audit committee 195. Notice of errors 196. Qualified privilege — defamation PART 13 FUNDAMENTAL CHANGES 197. Amendment of articles or by-laws 198. Proposal to amend 199. Class vote 200. Delivery of articles 201. Certificate of amendment 202. Effect of certificate 203. Restated articles 204. Amalgamation 205. Amalgamation agreement 206. Member approval 207. Vertical short-form amalgamation 208. Sending of articles 209. Rights preserved 210. Amalgamation under other federal Acts 211. Continuance — import 212. Definition of “charter” vi 213. Continuance — other jurisdictions 214. Extraordinary sale, lease or exchange 215. Definition of “reorganization” 216. Definition of “arrangement” PART 14 LIQUIDATION AND DISSOLUTION 217. Definition of “court” 218. Application of Part 219. Revival 220. Dissolution before commencing activities 221. Proposing liquidation and dissolution 222. Dissolution by Director 223. Grounds for dissolution 224. Further grounds 225. Application for supervision 226. Application to court 227. Powers of court 228. Effect of order 229. Cessation of activities and powers 230. Appointment of liquidator 231. Duties of liquidator 232. Powers of liquidator 233. Costs of liquidation 234. Transfer on condition of return 235. Application 236. Distribution in accordance with articles 237. Right to distribution in money 238. Custody of records 239. Definition of “member” 240. Creditors or members not found 241. Vesting in Crown PART 15 INVESTIGATION 242. Investigation 243. Power of inspector 244. Entering dwelling 245. Hearing in camera 246. Incriminating statements ix 247. Exchange of information 248. Absolute privilege — defamation 249. Solicitor-client privilege or professional secrecy PART 16 REMEDIES, OFFENCES AND PUNISHMENT 250. Definitions 251. Derivative action 252. Powers of court 253. Application to court re oppression 254. Evidence of members’ approval not decisive 255. Application to court to rectify records 256. Application for directions 257. Notice of refusal by Director 258. Appeal from Director’s decision 259. Compliance or restraining order 260. Summary application to court 261. Appeal of final order 262. Offence 263. Order to comply PART 17 DOCUMENTS IN ELECTRONIC OR OTHER FORM 264. Definitions 265. Application 266. Use not mandatory 267. Creation and provision of information 268. Creation of information in writing 269. Statutory declarations and affidavits 270. Signatures 271. Application for dispensation PART 18 GENERAL NOTICE, CERTIFICATES AND OTHER DOCUMENTS 272. Notice to directors and members 273. Notice to and service on a corporation 274. Waiver of notice 275. Certificate of corporation 276. Definition of “statement” 277. Signature x 278. Annual return 279. Inspection 280. Payment of fees DIRECTOR 281. Appointment of Director 282. Content and form of notices and documents 283. Records of Director 284. Proof required by Director 285. Dispensation 286. Certificate of Director 287. Alteration 288. Corrections initiated by Director 289. Cancellation of articles by Director 290. Certificate 291. Form of publication 292. Power to make inquiries REGULATIONS 293. Regulations PART 19 SPECIAL ACT BODIES CORPORATE WITHOUT SHARE CAPITAL 294. Application to special Act bodies corporate 295. Report listing Acts of continued or dissolved bodies corporate 296. Change of name PART 20 TRANSITIONAL PROVISIONS, CONSEQUENTIAL AMENDMENTS, COORDINATING AMENDMENTS, REPEALS AND COMING INTO FORCE TRANSITIONAL PROVISIONS 297. Continuance — Part II of Canada Corporations Act 298. No incorporation or continuance 299. Review of Act CONSEQUENTIAL AMENDMENTS 300-302. 303. An Act to incorporate St. Mary’s River Bridge Company An Act to incorporate the Jules and Paul-Émile Léger Foundation x 304. An Act to incorporate the Pickering Harbour Company (Limited) and to authorize it to collect tolls 305. An Act to provide for the creation by amalgamation of The Wesleyan Church of Canada 306. Bank Act 307. Budget Implementation Act, 1997 308. Budget Implementation Act, 1998 309-311. Canada Business Corporations Act 312. Canada Cooperatives Act 313. Canada Corporations Act 314. Canada Employment Insurance Financing Board Act 315-316. Canada Foundation for Sustainable Development Technology Act 317. Canada Pension Plan Investment Board Act 318. Canadian Food Inspection Agency Act 319. Canadian Institutes of Health Research Act 320. Canadian Payments Act 321. Cooperative Energy Act 322. Cree-Naskapi (of Quebec) Act 323. Evangelical Lutheran Church in Canada Act 324-326. Evangelical Missionary Church (Canada West District) Act 327. Financial Administration Act 328. First Nations Fiscal and Statistical Management Act 329. Green Shield Canada Act 330. Gwich’in Land Claim Settlement Act 331. Insurance Companies Act 332. Mackenzie Gas Project Impacts Act 333. Mi’kmaq Education Act 334. Physical Activity and Sport Act 335. Pilotage Act 336. Public Sector Pension Investment Board Act 337. Sahtu Dene and Metis Land Claim Settlement Act 338. United Grain Growers Act 339. Yukon First Nations Land Claims Settlement Act xi 340. Other Acts COORDINATING AMENDMENTS 341-359. 360. Coordinating amendments 2008, c. 28 REPEALS 361. An Act to change the name of “The Bytown Consumers Gas Company,” and to confirm, amend and extend their corporate powers, under the name of “The Ottawa Gas Company.” 362. An Act to incorporate the Canada Atlantic Cable Company 363. An Act to amend the Act incorporating “The Ottawa Gas Company,” to confirm a resolution of their Shareholders placing preferential and ordinary stock on the same footing, and to confirm, amend and extend their corporate powers 364. An Act to incorporate the Bonaventure and Gaspé Telephone Company, Limited 365. An Act to incorporate The British American Pipe Line Company 366. An Act to incorporate Western Pipe Lines 367. An Act to incorporate Ogdensburg Bridge Authority 368. An Act to incorporate Petroleum Transmission Company 369. An Act to incorporate Trans-Border Pipeline Company Ltd. 370. An Act to incorporate Cabri Pipe Lines Ltd. 371. An Act to incorporate Vawn Pipe Lines Ltd. COMING INTO FORCE 372. Order in council 57-58 ELIZABETH II —————— CHAPTER 23 An Act respecting not-for-profit corporations and certain other corporations [Assented to 23rd June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Canada Notfor-profit Corporations Act. PART 1 INTERPRETATION AND APPLICATION INTERPRETATION Definitions “activities” « activité » “affairs” « affaires internes » “articles” « statuts » “body corporate” « personne morale » “corporation” « organisation » 2. (1) The following definitions apply in this Act. “activities” includes any conduct of a corporation to further its purpose and any business carried on by a body corporate, but does not include the affairs of a body corporate. “affairs” means the relationships among a corporation, its affiliates and the directors, officers, shareholders or members of those bodies corporate. “articles” means original or restated articles of incorporation or articles of amendment, amalgamation, continuance, reorganization, arrangement, dissolution or revival. “body corporate” includes a company or other organization with legal personality wherever or however incorporated. “corporation” means a body corporate incorporated or continued under this Act and not discontinued under this Act. 2 “court” « tribunal » C. 23 Canada Not-for-pr “court” means (a) in Newfoundland and Labrador and Prince Edward Island, the trial division of the Supreme Court of the province; (b) in Ontario, the Superior Court of Justice; (c) in Nova Scotia and British Columbia, the Supreme Court of the province; (d) in Manitoba, Saskatchewan, Alberta and New Brunswick, the Court of Queen’s Bench for the province; (e) in Quebec, the Superior Court of the province; and (f) in Yukon and the Northwest Territories, the Supreme Court of the territory, and in Nunavut, the Nunavut Court of Justice. “creditor” « créancier » “creditor” includes a debt obligation holder. “debt obligation” « titre de créance » “debt obligation” means a bond, debenture, note or other evidence of indebtedness or guarantee of a corporation, whether secured or unsecured. “Director” « directeur » “Director” means an individual appointed under section 281. “director” « administrateur » “director” means an individual occupying the position of director by whatever name called. “entity” « entité » “entity” means a body corporate, a partnership, a trust, a joint venture or an unincorporated association or organization. “incorporator” « fondateur » “incorporator” means a person who signs articles of incorporation. “issuer” « émetteur » “issuer” means a corporation that is required by this Act to maintain a debt obligations register. “officer” « dirigeant » “officer” means an individual appointed as an officer under section 142, the chairperson of the board of directors, the president, a vicepresident, the secretary, the treasurer, the comptroller, the general counsel, the general manager or a managing director of a corporation, or any other individual who performs functions for a corporation similar to those normally performed by an individual occupying any of those offices. 2009 “ordinary resolution” « ordinaire » “person” « personne » “personal representative” « représentant personnel » “prescribed” Version anglaise seulement “public accountant” « expertcomptable » “send” « envoyer » “series” « série » “soliciting corporation” « organisation ayant recours à la sollicitation » Organisations à “ordinary resolution” means a resolution passed by a majority of the votes cast on that resolution. “person” means an individual or entity. “personal representative” means a person who stands in place of and represents another person, including a trustee, an executor, an administrator, a receiver, an agent, a mandatary, a liquidator of a succession, a guardian, a tutor, a curator or a legal counsel. “prescribed” means prescribed by the regulations. “public accountant”, in respect of a corporation, means the public accountant appointed for the corporation under paragraph 127(1)(e) or subsection 181(1) or 186(1) or who fills a vacancy under subsection 184(2) or 185(1). “send” includes deliver. “series” means a division of a class of debt obligations. “soliciting corporation” means a corporation that is referred to in subsection (5.1). “special resolution” « extraordinaire » “special resolution” means a resolution passed by a majority of not less than two thirds of the votes cast on that resolution. “unanimous member agreement” « convention unanime des membres » “unanimous member agreement” means an agreement described in subsection 170(1) or a declaration of a member described in subsection 170(2). Affiliated bodies corporate C. 23 Canada Not-for-pr (2) For the purposes of this Act, (a) one body corporate is the affiliate of another body corporate if one of them is the subsidiary of the other or both are subsidiaries of the same body corporate or each of them is controlled by the same person; and (b) if two bodies corporate are affiliates of the same body corporate at the same time, they are deemed to be affiliates of each other. Control (3) For the purposes of this Act, a body corporate is controlled by a person or by two or more bodies corporate if (a) shares or memberships of the body corporate to which are attached more than 50 per cent of the votes that may be cast to elect directors of the body corporate are held, other than by way of security only, by or for the benefit of that person or by or for the benefit of those bodies corporate; and (b) the votes attached to those shares or memberships are sufficient, if exercised, to elect a majority of the directors of the body corporate. Holding body corporate (4) A body corporate is the holding body corporate of another if that other body corporate is its subsidiary. Subsidiary body corporate (5) A body corporate is a subsidiary of another body corporate if (a) it is controlled by (i) that other body corporate, (ii) that other body corporate and one or more bodies corporate each of which is controlled by that other body corporate, or (iii) two or more bodies corporate each of which is controlled by that other body corporate; or (b) it is a subsidiary of a body corporate that is itself a subsidiary of that other body corporate. 2009 Soliciting corporation Organisations à (5.1) A corporation becomes a soliciting corporation for a prescribed duration from the prescribed date, if it received, during the prescribed period, income in excess of the prescribed amount in the form of (a) donations or gifts or, in Quebec, gifts or legacies of money or other property requested from any person who is not (i) a member, director, officer or employee of the corporation at the time of the request, (ii) the spouse of a person referred to in subparagraph (i) or an individual who is cohabiting with that person in a conjugal relationship, having so cohabited for a period of at least one year, or (iii) a child, parent, brother, sister, grandparent, uncle, aunt, nephew or niece of a person referred to in subparagraph (i) or of the spouse or individual referred to in subparagraph (ii); (b) grants or similar financial assistance received from the federal government or a provincial or municipal government, or an agency of such a government; or (c) donations or gifts or, in Quebec, gifts or legacies of money or other property from a corporation or other entity that has, during the prescribed period, received income in excess of the prescribed amount in the form of donations, gifts or legacies referred to in paragraph (a) or grants or similar financial assistance referred to in paragraph (b). Application to be deemed nonsoliciting (6) On the application of a corporation, the Director may decide that the corporation is, for the purposes of this Act, to be considered as not being — or not having been — a soliciting corporation if the Director is satisfied that the determination would not be prejudicial to the public interest. APPLICATION Application of Act 3. (1) This Act applies to every corporation and, to the extent provided for in Part 19, to bodies corporate without share capital incorporated by a special Act of Parliament. C. 23 Certain Acts do not apply (2) The following do not apply to a corporation: Canada Not-for-pr (a) the Canada Business Corporations Act; (b) the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970; and (c) the Winding-up and Restructuring Act. Limitations on business that may be carried on (3) No corporation shall carry on the business of (a) a bank; (b) an association to which the Cooperative Credit Associations Act applies; (c) a company or society to which the Insurance Companies Act applies; or (d) a company to which the Trust and Loan Companies Act applies. Limitation — granting degrees or regulating activities (4) Incorporation or continuance under this Act does not confer any authority on a corporation to carry on activities as a degreegranting educational institution or to regulate any activity, including a profession or trade. PURPOSE Purpose 4. The purpose of this Act is to allow the incorporation or continuance of bodies corporate as corporations without share capital, including certain bodies corporate incorporated or continued under various other Acts of Parliament, for the purposes of carrying on legal activities and to impose obligations on certain bodies corporate without share capital incorporated by a special Act of Parliament. DESIGNATION OF MINISTER Power of Governor in Council 5. The Governor in Council may designate any member of the Queen’s Privy Council for Canada to be the Minister for the purposes of this Act. Organisations à PART 2 INCORPORATION Incorporators 6. (1) One or more individuals or bodies corporate may incorporate a corporation by signing articles of incorporation and complying with section 8. Individuals (2) No individual may incorporate a corporation under subsection (1) if that individual (a) is less than 18 years of age; (b) has been declared incapable by a court in Canada or in another country; or (c) has the status of a bankrupt. Articles of incorporation 7. (1) Articles of incorporation shall follow the form that the Director fixes and shall set out, in respect of the proposed corporation, (a) the name of the corporation; (b) the province where the registered office is to be situated; (c) the classes, or regional or other groups, of members that the corporation is authorized to establish and, if there are two or more classes or groups, any voting rights attaching to each of those classes or groups; (d) the number of directors or the minimum and maximum number of directors; (e) any restrictions on the activities that the corporation may carry on; (f) a statement of the purpose of the corporation; and (g) a statement concerning the distribution of property remaining on liquidation after the discharge of any liabilities of the corporation. Other required provisions (2) Articles of incorporation shall set out, in respect of the proposed corporation, any provision required by any other Act of Parliament to be set out in the articles. Additional provisions in articles (3) The articles may set out any provisions that may be set out in the by-laws. Equivalency (3.1) Any requirement under this Act to set out a provision in the by-laws is deemed met by setting out the provision in the articles. C. 23 Special majorities (4) Subject to subsection (5), if the articles or a unanimous member agreement requires a greater number of votes of directors or members than that required by this Act to effect any action, the provisions of the articles or of the unanimous member agreement prevail. Removal of directors (5) The articles may not require a greater number of votes of members to remove a director than the number required by section 130. Delivery of articles of incorporation 8. One of the incorporators shall send to the Director articles of incorporation and the documents required by sections 20 and 128. Certificate of incorporation 9. On receipt of articles of incorporation, the Director shall issue a certificate of incorporation in accordance with section 276. Effect of certificate 10. A corporation comes into existence on the date shown in the certificate of incorporation. Alternate name 11. (1) Subject to subsection 13(1), the name of a corporation may be set out in its articles in an English form, a French form, an English form and a French form, or a combined English and French form, so long as the combined form meets any prescribed criteria. The corporation may use and may be legally designated by any such form. Alternate name outside Canada (2) Subject to subsection 13(1), a corporation may, for use outside Canada, set out its name in its articles in any language form and it may use and may be legally designated by any such form outside Canada. Publication of name (3) A corporation shall set out its name in legible characters in all contracts, invoices, negotiable instruments and orders for goods or services issued or made by or on behalf of the corporation. Other name (4) Subject to subsections (3) and 13(1), a corporation may carry on activities under or identify itself by a name other than its corporate name. Canada Not-for-pr Organisations à Reserving name 12. (1) The Director may, on request, reserve for a prescribed period a name for an intended corporation or for a corporation about to change its name. Designating number (2) If requested to do so by the incorporators or a corporation, the Director shall assign to the corporation as its name a designating number followed by the word “Canada” and a prescribed term. Prohibited names 13. (1) A corporation shall not be incorporated or continued under this Act with, change its name to, or have, carry on activities under or identify itself by, a name that is prohibited by the regulations or that does not meet the prescribed requirements. Directing change of name (2) The Director may direct a corporation to change its name in accordance with section 197 if, through inadvertence or otherwise, the corporation acquires a name that is prohibited by the regulations or that does not meet the prescribed requirements. Directing change of numbered name (3) If a corporation has a designating number as its name, the Director may direct the corporation to change its name to a name other than a designating number in accordance with section 197. Undertaking to dissolve or change name (4) If a corporation acquires a name as a result of a person undertaking to dissolve or to change names, and the undertaking is not honoured, the Director may direct the corporation to change its name in accordance with section 197, unless the undertaking is honoured within the period specified in subsection (5). Revoking name (5) If a corporation has not followed a directive under subsection (2), (3) or (4) within the prescribed period, the Director may revoke the name of the corporation and assign a name to it and, until changed in accordance with section 197, the name of the corporation is the name assigned by the Director. Certificate of amendment 14. (1) If the Director assigns a new name to a corporation under subsection 13(5), the Director shall issue a certificate of amendment C. 23 Canada Not-for-pr showing the name and shall publish notice of the change of name as soon as practicable in a publication generally available to the public. Effect of certificate (2) The articles of the corporation are amended accordingly on the date shown in the certificate of amendment. Preincorporation and preamalgamation contracts 15. (1) Subject to this section and unless the contract expressly provides otherwise, a person who enters into, or purports to enter into, a written contract in the name of or on behalf of a corporation before it comes into existence is personally bound by the contract and is entitled to its benefits. Adoption or ratification of contract (2) The corporation may, within a reasonable time after it comes into existence, adopt or, in Quebec, ratify the contract by any action or conduct signifying its intention to be bound by the contract, and on the adoption or ratification (a) the corporation is bound by the contract and is entitled to its benefits as if the corporation had been in existence at the date of the contract and had been a party to it; and (b) the person ceases to be bound by or entitled to the benefits of the contract, except as provided for in subsection (3). Application to court (3) Whether or not a written contract made before the coming into existence of a corporation is adopted or, in Quebec, ratified by the corporation, a party to the contract may apply to a court for an order respecting the nature and extent of the obligations and liability under the contract of the corporation and the person who is bound by the contract under subsection (1). On the application, the court may make any order that it thinks fit. PART 3 CAPACITY AND POWERS Capacity of a corporation 16. (1) A corporation has the capacity and, subject to this Act, the rights, powers and privileges of a natural person. Activities (2) A corporation may carry on activities throughout Canada. Organisations à Extra-territorial capacity (3) A corporation has the capacity to carry on its activities, conduct its affairs and exercise its powers in a jurisdiction outside Canada to the extent that the laws of that jurisdiction permit. Powers of a corporation 17. (1) It is not necessary for a by-law to be passed in order to confer any particular power on a corporation or its directors. Restricted activities or powers (2) A corporation shall not carry on any activities or exercise any power in a manner contrary to its articles. Rights preserved (3) No act of a corporation, including any transfer of property to or by a corporation, is invalid by reason only that the act or transfer is contrary to its articles or this Act. No constructive notice 18. No person is affected by or is deemed to have notice or knowledge of the contents of a document concerning a corporation by reason only that the person can examine it under section 279 or at an office of the corporation. Authority of directors, officers, agents and mandataries 19. (1) No corporation, no guarantor of an obligation of a corporation and, in Quebec, no surety may assert against a person dealing with the corporation or against a person who acquired rights from the corporation that (a) the articles, the by-laws or any unanimous member agreement has not been complied with; (b) the individuals named in the last notice that was sent by the corporation in accordance with section 128 or 134 and received by the Director are not the directors of the corporation; (c) the place named in the last notice accepted by the Director under section 20 is not the registered office of the corporation; (d) a person held out by a corporation as a director, an officer, an agent or a mandatary of the corporation has not been duly appointed or has no authority to exercise the powers and perform the duties that are customary in the activities of the corporation or usual for a director, an officer, an agent or a mandatary; C. 23 Canada Not-for-pr (e) a document issued by any director, officer, agent or mandatary of a corporation with actual or usual authority to issue the document is not valid or not genuine; or (f) a sale, a lease or an exchange of property referred to in subsection 214(1) was not authorized. Exception (2) Subsection (1) does not apply in respect of a person who has, or ought to have, knowledge of a situation described in that subsection by virtue of their relationship to the corporation. PART 4 REGISTERED OFFICE AND RECORDS Registered office 20. (1) A corporation shall at all times have a registered office in the province in Canada specified in its articles. Notice of registered office (2) A notice of registered office in the form that the Director fixes shall be sent to the Director together with any articles that designate or change the province where the registered office of the corporation is to be located. Change of address (3) The directors of a corporation may change the corporation’s registered office to another place within the province specified in the articles, in which case the corporation shall send to the Director a notice of registered office in the form that the Director fixes. Notice of registered office effective on acceptance (4) A notice of registered office becomes effective when the Director accepts it. Corporate records 21. (1) A corporation shall prepare and maintain, at its registered office or at any other place in Canada designated by the directors, records containing (a) the articles and the by-laws, and amendments to them, and a copy of any unanimous member agreement; (b) the minutes of meetings of members and any committee of members; (c) the resolutions of members and any committee of members; Organisations à (d) if any debt obligation is issued by the corporation, a debt obligations register that complies with section 44; (e) a register of directors; (f) a register of officers; and (g) a register of members. Register (2) The registers referred to in paragraphs (1)(e) to (g) shall contain the prescribed information. Directors’ records (3) A corporation shall prepare and maintain adequate accounting records and records containing minutes of meetings of the directors and any committee of directors as well as resolutions adopted by the directors or any committee of directors. Retention of accounting records (4) Subject to any other Act of Parliament or of the legislature of a province that provides for a longer retention period, a corporation shall retain the accounting records referred to in subsection (3) for the prescribed period. Records of continued corporations (5) For the purposes of paragraphs (1)(b) and (c) and subsection (3), where a body corporate is continued under this Act, “records” includes similar records required by law to be maintained by the body corporate before it was so continued. Place of directors’ records (6) The records described in subsection (3) shall be kept at the registered office of the corporation or at any other place that the directors think fit. Directors’ access to records (7) The records described in subsections (1) and (3) shall at all reasonable times be open to inspection by the directors. The corporation shall, at the request of any director, provide them with any extract of the records free of charge. Records in Canada (8) If accounting records of a corporation are kept outside Canada, accounting records adequate to enable the directors to ascertain the financial position of the corporation with reasonable accuracy on a quarterly basis shall be kept at the registered office or any other place in Canada designated by the directors. C. 23 When records or registers kept outside Canada (9) Despite subsections (1) and (8), but subject to the Income Tax Act, the Excise Tax Act, the Customs Act and any other Act administered by the Minister of National Revenue, a corporation may keep all or any of its corporate records and accounting records referred to in subsection (1) or (3) at a place outside Canada, if Canada Not-for-pr (a) the records are available for inspection, by means of any technology, during regular office hours at the registered office or any other place in Canada designated by the directors; and (b) the corporation provides the technical assistance to facilitate an inspection referred to in paragraph (a). Access to corporate records 22. (1) A member, a member’s personal representative and a creditor of a corporation may examine and, on payment of any reasonable fee, take extracts from the records referred to in paragraphs 21(1)(a) to (f) during the corporation’s usual business hours. Requirement for statutory declaration — debt obligations register (2) Any person described in subsection (1) who wishes to examine the debt obligations register of a corporation shall first make a request to the corporation or its agent or mandatary accompanied by a statutory declaration referred to in subsection (5). Within the prescribed period, the corporation or its agent or mandatary shall allow the applicant access to the register during the corporation’s usual business hours and, on payment of any reasonable fee, provide the applicant with an extract from the register. Copies of corporate records (3) A member of a corporation is entitled on request and free of charge to one copy of the articles and by-laws, any amendments to them, and any unanimous member agreement. Debt obligation holders lists (4) Any person described in subsection (1), on payment of any reasonable fee and on sending to a corporation or its agent or mandatary the statutory declaration referred to in subsection (5), may on application require the corporation or its agent or mandatary to furnish within the prescribed period a list of debt Organisations à obligation holders setting out the prescribed information and updated in accordance with the regulations. Contents of statutory declaration (5) The statutory declaration required under subsection (2) or (4) shall (a) state the name and address of the applicant and, if the applicant is a body corporate, its address for service; and (b) state that the list of debt obligation holders or the information contained in the debt obligations register obtained under subsection (2) will not be used except as permitted under subsection (7). Person making statutory declaration (6) If the applicant is a body corporate, the statutory declaration shall be made by a director or officer of the body corporate. Use of information or list of debt obligation holders (7) A list of debt obligation holders or information from a debt obligations register obtained under this section shall not be used by any person except in connection with (a) an effort to influence the voting of debt obligation holders of the corporation; (b) an offer to acquire debt obligations of the corporation; or (c) any other matter relating to the debt obligations or affairs of the corporation. Requirement for statutory declaration — register of members 23. (1) A member or a member’s personal representative who wishes to examine the register of members of a corporation shall first make a request to the corporation or its agent or mandatary accompanied by a statutory declaration referred to in subsection (5). Within the prescribed period, the corporation or its agent or mandatary shall allow the applicant access to the register during the corporation’s usual business hours and, on payment of any reasonable fee, provide the applicant with an extract from the register. List of members (2) Any person described in subsection (1) and debt obligation holders, on payment of any reasonable fee and on sending to a corporation or its agent or mandatary the statutory declaration referred to in subsection (5), may on application require the corporation or its agent C. 23 Canada Not-for-pr or mandatary to furnish within the prescribed period a list of members setting out the prescribed information and updated in accordance with the regulations. Limitation (3) A person described in subsection (1) may only make an application under subsection (2) once in each calendar year. In addition, an application may be made before each special meeting of members of which the person receives notice. Application of debt obligation holder (4) A debt obligation holder may make an application to obtain a list of members only after receiving notice of a meeting of members at which the holder has the right to vote. Contents of statutory declaration (5) The statutory declaration required under subsection (1) or (2) shall (a) state the name and address of the applicant and, if the applicant is a body corporate, its address for service; and (b) state that the list of members or the information contained in the register of members obtained under subsection (1) will not be used except as permitted under subsection (7) or (8). Person making statutory declaration (6) If the applicant is a body corporate, the statutory declaration shall be made by a director or officer of the body corporate. Use of information or list by members (7) A member or a member’s personal representative who obtains a list of members or information from a register of members under this section shall not use the list or information except in connection with (a) an effort to influence the voting of members; (b) requisitioning a meeting of members; or (c) any other matter relating to the affairs of the corporation. Use of information or list by debt obligation holders (8) A debt obligation holder who obtains a list of members under this section shall not use the list except in connection with an effort to influence the voting of members on any issue that the holder has a right to vote on. Organisations à Examination by Director 24. (1) The Director may examine the records described in subsection 21(1) during the corporation’s usual business hours and may take extracts from the records free of charge. Requirement to provide list (2) The Director may require the corporation or its agent or mandatary to furnish to the Director within the prescribed period a list of members or debt obligation holders setting out the prescribed information and updated in accordance with the regulations. Application for authorization — corporation 25. (1) On the application of a corporation, the Director may authorize the corporation, on any terms that the Director thinks fit, to refuse, in whole or in part, to allow access to corporate records or to furnish information that the corporation is otherwise under this Part obligated to allow or furnish, if the Director reasonably believes that allowing the access or furnishing the information would be detrimental to any member or the corporation. Application for direction — member (2) On the application of any member, the Director may direct the corporation, on any terms that the Director thinks fit, not to allow, in whole or in part, access to corporate records or not to furnish, in whole or in part, information that the corporation is otherwise under this Part obligated to allow or furnish, if the Director reasonably believes that allowing the access or furnishing the information would be detrimental to any member or the corporation. Form of records 26. (1) All registers and other records required by this Act to be prepared and maintained may be in any form, provided that the records are capable of being reproduced in intelligible written form within a reasonable time. Precautions (2) A corporation and its agents and mandataries shall take reasonable precautions to prevent the loss or destruction of the registers and other records required under this Act, to prevent the falsification of entries in those registers and records and to facilitate the detection and correction of inaccuracies in them. Validity of unsealed documents 27. A document executed or, in Quebec, signed on behalf of a corporation is not invalid merely because a corporate seal is not affixed to it. C. 23 Canada Not-for-pr PART 5 CORPORATE FINANCE Borrowing powers 28. (1) Unless the articles, the by-laws or a unanimous member agreement otherwise provides, the directors of a corporation may, without authorization of the members, (a) borrow money on the credit of the corporation; (b) issue, reissue, sell, pledge or hypothecate debt obligations of the corporation; (c) give a guarantee on behalf of the corporation to secure performance of an obligation of any person; and (d) mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of the corporation, owned or subsequently acquired, to secure any obligation of the corporation. Delegation of borrowing powers (2) Despite subsection 138(2) and paragraph 142(a), unless the articles, the by-laws or a unanimous member agreement otherwise provides, the directors may, by resolution, delegate the powers referred to in subsection (1) to a director, a committee of directors or an officer. Repayment 29. (1) Debt obligations issued, pledged, hypothecated or deposited by a corporation are not redeemed by reason only that the indebtedness evidenced by the debt obligations or in respect of which the debt obligations are issued, pledged, hypothecated or deposited is repaid. Acquisition and reissue of debt obligations (2) Debt obligations issued by a corporation and purchased, redeemed or otherwise acquired by it may be cancelled or, subject to any applicable trust indenture or other agreement, may be reissued, pledged or hypothecated to secure any existing or future obligation of the corporation, and such an acquisition and reissue, pledge or hypothecation is not a cancellation of the debt obligations. Annual contributions or dues 30. Subject to the articles, the by-laws and any unanimous member agreement, the directors may require members to make an annual Organisations à contribution or pay annual dues and may determine the manner in which the contribution is to be made or the dues are to be paid. Ownership of property 31. A corporation owns any property of any kind that is transferred to or otherwise vested in the corporation and does not hold any property in trust unless that property was transferred to the corporation expressly in trust for a specific purpose or purposes. Directors not trustees 32. Directors are not, in that capacity, trustees for any property of the corporation, including property held in trust by the corporation. Investments by corporation 33. Subject to the limitations accompanying any gift and the articles or by-laws, a corporation may invest its funds as its directors think fit. Distribution of property, accretions or profits 34. (1) Subject to subsection (2), no part of a corporation’s profits or of its property or accretions to the value of the property may be distributed, directly or indirectly, to a member, a director or an officer of the corporation except in furtherance of its activities or as otherwise permitted by this Act. Distribution to member (2) If a member of a corporation is an entity that is authorized to carry on activities on behalf of the corporation, the corporation may distribute any of its money or other property to the member to carry on those activities. Surrendered memberships 35. A corporation may accept a membership in the corporation surrendered to it as a gift including, in Quebec, a legacy and may extinguish or reduce a liability respecting an amount unpaid on that membership. Liability 36. (1) The members of a corporation are not, in that capacity, liable for any liability of the corporation, including any arising under paragraph 253(3)(f) or (g), or any act or default of the corporation, except as otherwise provided by this Act. Lien on membership (2) Subject to subsection 42(2), the articles may provide that the corporation has a lien on a membership registered in the name of a member or the member’s personal representative for a debt of that member to the corporation, includ20 C. 23 Canada Not-for-pr ing an amount unpaid in respect of a membership issued by a body corporate on the date it was continued as a corporation under this Act. Enforcement of lien (3) A corporation may enforce a lien referred to in subsection (2) in accordance with its bylaws. PART 6 DEBT OBLIGATIONS, CERTIFICATES, REGISTERS AND TRANSFERS INTERPRETATION Definitions 37. (1) The following definitions apply in this Part. “adverse claim” « opposition » “adverse claim”, in respect of a debt obligation, includes a claim that a transfer was or would be wrongful or that a particular adverse person is the owner of or has an interest or right in the debt obligation. “bearer” « porteur » “broker” « courtier » “delivery” « livraison » ou « remise » “fiduciary” « représentant » “bearer” means the person who is in possession of a debt obligation that is payable to bearer or endorsed in blank. “broker” means a person who is engaged in whole or in part in the business of buying and selling debt obligations and who, in the transaction concerned, acts for, buys a debt obligation from or sells a debt obligation to a customer. “delivery” means voluntary transfer of possession. “fiduciary” means any person who acts in a fiduciary capacity or as the administrator of the property of others and includes a personal representative of a deceased person. “good faith” « bonne foi » “good faith” means honesty in fact in the conduct of the transaction concerned. “good faith purchaser” « acquéreur de bonne foi » “good faith purchaser” means a purchaser for value in good faith and without notice of any adverse claim who takes delivery of a debt obligation. “holder” « détenteur » “holder” means a person who is in possession of a debt obligation that is issued or endorsed to the person, to bearer or in blank. 2009 “overissue” « émission excédentaire » “purchaser” « acquéreur » Organisations à “overissue” means the issue of debt obligations in excess of any maximum number of debt obligations that the issuer is authorized by a trust indenture to issue. “purchaser” means a person who takes an interest or right in a debt obligation by sale, mortgage, hypothec, pledge, issue, reissue, gift or any other voluntary transaction. “transfer” « transfert » “transfer” includes transmission by operation of law. “trust indenture” « acte de fiducie » “trust indenture” means a trust indenture as defined in subsection 104(1). “valid” « valide » Negotiable instruments Registered form “valid” means issued in accordance with the applicable law and the by-laws of the issuer, or validated under section 54. (2) Except when a transfer is restricted and noted on a debt obligation in accordance with subsection 42(2), a debt obligation is a negotiable instrument. (3) A debt obligation is in registered form if (a) it specifies a person who is entitled to the debt obligation or to the rights it evidences, and its transfer is capable of being recorded in a debt obligations register; or (b) it bears a statement that it is in registered form. Order form (4) A debt obligation is in order form if, by its terms, it is payable to the order of a person specified with reasonable certainty in it or to a person to whom it is assigned. Bearer form (5) A debt obligation is in bearer form if it is payable to bearer according to its terms and not by reason of an endorsement. Guarantor or surety for issuer (6) A guarantor or, in Quebec, a surety for an issuer is deemed to be an issuer to the extent of the guarantee, whether or not the obligation is noted on the debt obligation. C. 23 Canada Not-for-pr DEBT OBLIGATION CERTIFICATES Debt obligation certificate 38. An issuer shall provide a debt obligation holder, on request, with (a) a debt obligation certificate that complies with this Act; or (b) a non-transferable written acknowledgement of their right to obtain a debt obligation certificate. Fee 39. An issuer may charge a reasonable fee for a debt obligation certificate issued in respect of a transfer. Jointly held debt obligations 40. If debt obligations are held by more than one person, (a) an issuer is not required to issue more than one debt obligation certificate in respect of those debt obligations; and (b) delivery of a debt obligation certificate to one of the holders is sufficient delivery to them all. Signatures 41. (1) A debt obligation certificate shall be signed by at least one of the following persons, or a facsimile of the signature shall be reproduced on the certificate: (a) a director or officer of the issuer; (b) a transfer agent or branch transfer agent of the issuer, or an individual acting on their behalf; or (c) a trustee who certifies it in accordance with a trust indenture. Former director or officer (2) An issuer may issue debt obligation certificates that contain the signature of a person who is no longer a director or officer and the validity of the certificate is not adversely affected. Contents of certificate 42. (1) The following information shall be stated on the face of each debt obligation certificate issued by an issuer: (a) the name of the issuer; (b) the words “Incorporated under the Canada Not-for-profit Corporations Act”, “constituée sous l’autorité de la Loi canadienne sur les organisations à but non lucratif”, “Subject to the Canada Not-for2009 Organisations à profit Corporations Act” or “assujettie à la Loi canadienne sur les organisations à but non lucratif”; (c) the name of the person to whom it was issued unless it is in bearer form; and (d) the value represented by the certificate. Restrictions (2) No restriction on transfer, lien or hypothec in favour of the issuer or unanimous member agreement is effective against a transferee of a debt obligation, issued by an issuer or by a body corporate before it is continued under this Act, who has no actual knowledge of the restriction, lien, hypothec or agreement unless it or a reference to it is noted conspicuously on the debt obligation certificate. Restrictions (3) If the issued debt obligations of an issuer remain outstanding and are held by more than one person, the issuer shall not restrict the transfer or ownership of its debt obligations of any class or series. Contents of certificate 43. (1) Every debt obligation certificate, if the articles authorize more than one class or series of debt obligations, shall legibly (a) state the rights, privileges, restrictions and conditions attached to the debt obligations of each class and series that exist when the debt obligation certificate is issued; or (b) state that the class or series of debt obligations that it represents has rights, privileges, restrictions or conditions attached to it and that the issuer will provide a debt obligation holder, on demand and without charge, with a full copy of the text of the rights, privileges, restrictions and conditions attached to each class or series authorized to be issued. Copy of text (2) If a debt obligation certificate contains a statement referred to in paragraph (1)(b), the issuer shall, on request, provide the debt obligation holder with the copy of the text referred to in that paragraph. C. 23 Canada Not-for-pr REGISTERS Registers 44. (1) A corporation that issues debt obligations shall maintain a debt obligations register in which it records the debt obligations issued by it in registered form, showing the prescribed information with respect to each class or series. Location of register (2) The debt obligations register shall be maintained at the issuer’s registered office or at any other place in Canada designated by the directors. Branch registers (3) An issuer may maintain additional branch debt obligations registers in other places designated by the directors. Contents of branch register (4) A branch debt obligations register shall only contain particulars of debt obligations issued or transferred at the branch. The same information shall also be recorded in the central register. Production of certificates (5) An issuer, its agent or mandatary, or a trustee as defined in subsection 104(1) is not required to produce a cancelled debt obligation certificate in registered form after the prescribed period. Agent or mandatary 45. An issuer may appoint an agent or mandatary to maintain debt obligations registers on its behalf. Registration 46. The registration of the issue or transfer of a debt obligation in any debt obligations register is complete and valid registration for all purposes. Trustee 47. An issuer or a trustee as defined in subsection 104(1) may treat the person whose name appears on the debt obligations register as the debt obligation’s owner for all purposes. Constructive registered holder 48. If an issuer restricts the right to transfer its debt obligations, the issuer may, despite section 47, treat a person as the registered holder of a debt obligation if the person provides the issuer with evidence that meets the requirements of the issuer that the person is (a) the heir or legatee of a deceased debt obligation holder or the fiduciary of the estate or succession of a deceased debt obligation Organisations à holder or of a registered debt obligation holder who is a minor, an incapable person or a missing person; or (b) a liquidator of, or a trustee in bankruptcy for, a registered debt obligation holder. Proof of ownership 49. An issuer shall treat a person, other than one described in section 48, as being entitled to exercise the rights and privileges attached to a debt obligation if the person provides proof that the person has acquired ownership of the debt obligation by operation of law or has legal authority to exercise the rights and privileges. Joint holder 50. If satisfactory proof of the death of a joint holder of a debt obligation with a right of survivorship is provided to an issuer, the issuer may treat any surviving joint holder as the owner of the debt obligation. Duties of issuer 51. An issuer is not required to inquire into the existence of, or see to the performance of, any duty owed to a third person by a registered holder, or a person who may be treated as a registered holder, of a debt obligation. Minors 52. If a minor exercises a right of ownership in a debt obligation of an issuer, no subsequent repudiation or avoidance or, in Quebec, nullity or reduction of obligations is effective against the issuer. Deceased owner 53. (1) Subject to any applicable law relating to the collection of taxes, a person who is an heir or a fiduciary of an estate or succession of a deceased debt obligation holder is entitled to become the registered holder or to designate a registered holder if the person deposits the following information with the issuer or its transfer agent, together with any reasonable assurances that the issuer may require: (a) the debt obligation certificate or, in default of one, a document proving that the deceased was the debt obligation holder; (b) a document proving the death of the debt obligation holder; and C. 23 Canada Not-for-pr (c) a document proving that the heir or fiduciary has the right under the law of the place in which the deceased was domiciled immediately before their death to deal with the debt obligation. Endorsement (2) A debt obligation certificate referred to in paragraph (1)(a) shall be endorsed (a) in the case of a transfer to an heir or fiduciary, by that person; and (b) in any other case, in a manner acceptable to the issuer. Right of issuer (3) Deposit of the documents required by subsection (1) empowers an issuer or its transfer agent to record in a debt obligations register the transmission of a debt obligation from the deceased holder to the heir or fiduciary or to any person that the heir or fiduciary may designate and to treat the person who becomes a registered holder as the owner of the debt obligation. Overissue 54. (1) Subject to this section, the provisions of this Part that validate a debt obligation or compel its issue or reissue do not apply if the validation, issue or reissue of a debt obligation would result in overissue. Identical debt obligation (2) A person who is entitled to a validation or issue may, if there has been an overissue and if a valid debt obligation that is similar in all respects to the debt obligation involved in the overissue is reasonably available for purchase, compel the issuer to purchase and deliver that debt obligation against the surrender of the debt obligation that the person holds. If identical debt obligation not available (3) If a valid debt obligation that is similar in all respects to the debt obligation involved in the overissue is not reasonably available for purchase, the person who is entitled to the validation or issue may recover from the issuer an amount equal to the price the last purchaser for value paid for the invalid debt obligation. Increase in capital (4) The overissued debt obligations are valid from the date they were issued only if the issuer increases the number of its authorized debt obligations to a number equal to or greater than Organisations à the number of debt obligations previously authorized plus the number of the debt obligations overissued. PROCEEDINGS Rules of action 55. The following rules apply in an action on a debt obligation: (a) each signature on the debt obligation certificate or in a necessary endorsement is admitted unless specifically denied in the pleadings; (b) a signature on the debt obligation is presumed to be genuine and authorized but, if the effectiveness of the signature is in issue, the burden of establishing that it is genuine and authorized is on the party claiming under the signature; (c) if a signature is admitted or established, production of a debt obligation certificate entitles the holder to recover on it unless the other party establishes a defence or defect going to the validity of the debt obligation; and (d) if the other party establishes the defence or defect, the plaintiff has the burden of establishing that the defence or defect is ineffective against the plaintiff or some other person under whom the claim is made. DELIVERY Delivery of debt obligations 56. (1) A person who is required to deliver debt obligations may deliver any debt obligation of the specified issue (a) in bearer form; (b) in registered form in the name of the transferee; or (c) endorsed to the person or in blank. Limitation (2) Subsection (1) is subject to any agreement to the contrary, to any applicable Act of Parliament or of the legislature of a province, to any applicable regulation or to any applicable rule of a stock exchange or other regulatory body. C. 23 Canada Not-for-pr GENERAL Incorporation by reference 57. (1) The terms of a debt obligation include those stated on the debt obligation and those incorporated by reference to another document, an Act of Parliament or of the legislature of a province, a regulation, a rule or an order to the extent that the incorporated terms do not conflict with those stated on the debt obligation. Purchaser without notice (2) Subsection (1) applies to a good faith purchaser but the incorporation by reference is itself not notice of a defect to the purchaser even if the debt obligation expressly states that a person accepting it admits that notice. Validity of debt obligation 58. A debt obligation is valid in the hands of a good faith purchaser. Defence 59. Subject to section 62, the fact that a debt obligation is not genuine is a complete defence for the issuer even against a good faith purchaser. Defences 60. All other defences of an issuer, including non-delivery and conditional delivery of a debt obligation, are ineffective against a good faith purchaser. Deemed notice 61. (1) A purchaser is deemed to have notice of any defect in the issue of a debt obligation or any defence of the issuer if the debt obligation becomes stale within the meaning of subsection (2). Stale debt obligation (2) A debt obligation becomes stale if (a) the purchaser takes the debt obligation later than the prescribed period that is after (i) the date on which performance of the principal obligation evidenced by the debt obligation was due, or (ii) the date on or after which the debt obligation is to be presented or surrendered for redemption or exchange; or (b) the payment of money or the delivery of debt obligations is required in order to present or surrender the debt obligation, the money or debt obligations are available on the day for Organisations à the payment or delivery and the purchaser takes the debt obligation later than the prescribed period that is after that day. Unauthorized signature 62. (1) Subject to subsection (2), an unauthorized signature on a debt obligation is ineffective. Limited effectiveness (2) An unauthorized signature on a debt obligation is effective in favour of a good faith purchaser if the signature was made by (a) an authenticating trustee, transfer agent or other person entrusted by the issuer with the duty to sign the debt obligation, or similar debt obligations, or to prepare them for signing; or (b) an employee of the issuer or a person referred to in paragraph (a) who handles the debt obligation in the ordinary course of their duties. Completion of debt obligation 63. If a debt obligation contains the signatures necessary for its issue or transfer but is incomplete in another respect, any person may complete it in accordance with their authority. Enforceability 64. A debt obligation that was completed incorrectly is enforceable by a good faith purchaser. Fraud 65. A completed debt obligation that was improperly altered, even if fraudulently altered, remains enforceable but only according to its original terms. Guarantees 66. (1) A person signing a debt obligation as an authenticating trustee, transfer agent or other person entrusted by the issuer with the duty to sign the debt obligation guarantees to a good faith purchaser that (a) the debt obligation is genuine; (b) the person’s acts in connection with the debt obligation are within the person’s authority; and (c) the person has reasonable grounds for believing that the debt obligation is in the form and within the amount the issuer is authorized to issue. C. 23 Liability (2) Unless agreed otherwise, a person referred to in subsection (1) does not assume any further liability for the validity of the debt obligation. Acquisition of rights 67. (1) On delivery of a debt obligation, the purchaser of the debt obligation acquires the rights in it that the transferor had or had authority to convey. Claim free (2) A good faith purchaser of a debt obligation acquires it free from any adverse claim. No better position (3) A purchaser who was a party to a fraud or illegality affecting a debt obligation or who, as a prior holder, had notice of an adverse claim does not have a better position by taking from a later good faith purchaser. Limitation of the purchase 68. A purchaser acquires rights only to the extent of the interest or right purchased. Deemed notice 69. (1) A purchaser of a debt obligation, or a broker for a seller or purchaser, is deemed to have notice of an adverse claim if Canada Not-for-pr (a) the debt obligation has been endorsed “for collection” or “for surrender” or for a purpose other than transfer; or (b) the debt obligation is in bearer form and has a statement on it that it belongs to a person other than the transferor. Name (2) The mere writing of a name on a debt obligation is not a statement for the purposes of paragraph (1)(b). No duty to inquire 70. (1) A purchaser of a debt obligation, or a broker for a seller or purchaser, has no duty to inquire into the rightfulness of the transfer and, subject to sections 69 and 71, has no notice of an adverse claim. Third party holding (2) Subsection (1) applies even if the purchaser or broker has notice that the debt obligation is held by a third person or is registered in the name of or endorsed by a fiduciary. Organisations à Deemed notice 71. A purchaser or broker who knows that the transaction is for the personal benefit of the fiduciary or is otherwise in breach of the fiduciary’s duty is deemed to have notice of an adverse claim. Staleness 72. (1) The following events do not constitute notice of an adverse claim except if the debt obligation becomes stale within the meaning of subsection (2): (a) an event that creates a right to performance of the principal obligation evidenced by the debt obligation; or (b) an event that sets the date on or after which the debt obligation is to be presented or surrendered for redemption or exchange. Staleness of debt obligation (2) A debt obligation becomes stale if (a) the purchaser takes the debt obligation later than the prescribed period that is after (i) the date on which performance of the principal obligation evidenced by the debt obligation was due, or (ii) the date on or after which the debt obligation was to be presented or surrendered for redemption or exchange; or (b) the payment of money or the delivery of debt obligations is required in order to present or surrender the debt obligation, the money or debt obligations are available on the day for the payment or delivery and the purchaser takes the debt obligation later than the prescribed period that is after that day. Guarantee 73. (1) A person who presents a debt obligation for registration of transfer or for payment or exchange guarantees to the issuer that the person is entitled to do so. Limitation on guarantee (2) A good faith purchaser who receives a new, reissued or re-registered debt obligation and who registers a transfer guarantees only that the purchaser has no knowledge of any unauthorized signature in a necessary endorsement. Content of guarantee 74. A person who transfers a debt obligation to a purchaser for value guarantees by the transfer only that (a) the transfer is effective and rightful; C. 23 Canada Not-for-pr (b) the debt obligation is genuine and has not been materially altered; and (c) the person knows of nothing that might impair the validity of the debt obligation. Guarantee of intermediary 75. An intermediary delivering a debt obligation to a purchaser who knows that the intermediary is an intermediary guarantees only its good faith. Guarantee of broker 76. A broker shall give to a customer, to the issuer and to a purchaser the guarantees provided in sections 73 to 75 and has the rights and privileges of a purchaser under those sections, and those guarantees of and in favour of the broker acting as an agent or mandatary are in addition to guarantees given by the customer and guarantees given in favour of the customer. Right to compel endorsement 77. If a registered debt obligation is delivered to a purchaser without a necessary endorsement, the purchaser has the right to demand the endorsement. The purchaser becomes a good faith purchaser after the endorsement. Definition of “appropriate” 78. (1) In section 79, subsections 86(1) and 94(1) and section 98, “appropriate”, with respect to a person, means that the person is (a) the person who is specified by the debt obligation or by a special endorsement to be entitled to the debt obligation; (b) if the person described in paragraph (a) is described as a fiduciary but is no longer serving as one, either that person or their successor; (c) if the debt obligation or endorsement mentioned in paragraph (a) specifies more than one person as fiduciaries and one or more of those persons is no longer a fiduciary, the remaining fiduciary or fiduciaries, whether or not a successor has been appointed or qualified; (d) if the person described in paragraph (a) is an individual and is without capacity to act by reason of death, minority or other incapacity, the person’s fiduciary; Organisations à (e) if the debt obligation or endorsement mentioned in paragraph (a) specifies more than one person with a right of survivorship and by reason of death not all of the persons can sign, the survivor or survivors; (f) a person who has the legal power to sign; or (g) to the extent that a person described in any of paragraphs (a) to (f) may act through an agent or mandatary, the person’s authorized agent or mandatary. Time for determination (2) The authority of a person signing is determined as of the time of signing. Endorsement 79. (1) An endorsement of a debt obligation in registered form for the purposes of assignment or transfer is made when an appropriate person signs either the debt obligation or a separate document, or when the signature of an appropriate person is written without more on the back of the debt obligation. Blank or special (2) An endorsement may be in blank or special. Blank endorsement (3) An endorsement in blank includes an endorsement to bearer. Special endorsement (4) A special endorsement specifies the person to whom the debt obligation is to be transferred or who has power to transfer it. Right of holder (5) A holder may convert an endorsement in blank into a special endorsement. Immunity of endorser 80. Unless agreed otherwise, the endorser does not, by the endorsement, assume any obligation that the debt obligation will be honoured by the issuer. Partial endorsement 81. An endorsement purporting to be an endorsement of only part of a debt obligation representing units intended by the issuer to be separately transferable is effective to the extent of the endorsement. Effect of failure by fiduciary to comply 82. Failure of a fiduciary to comply with the document that is the source of the fiduciary’s power or with the law of the jurisdiction governing the fiduciary relationship does not render the fiduciary’s endorsement unauthorized for the purposes of this Part. C. 23 Effect of endorsement 83. An endorsement of a debt obligation does not constitute a transfer until delivery of the debt obligation on which it appears or, if the endorsement is on a separate document, until delivery of both the debt obligation and the document. Endorsement in bearer form 84. An endorsement of a debt obligation in bearer form may give notice of an adverse claim under section 69 but does not otherwise affect any of the holder’s rights. Effect of unauthorized endorsement 85. (1) The owner of a debt obligation may assert the ineffectiveness of an endorsement against the issuer or a purchaser, other than a purchaser for value without notice of an adverse claim who has in good faith received a new, reissued or re-registered debt obligation on registration of transfer, unless the owner Canada Not-for-pr (a) has ratified an unauthorized endorsement of the debt obligation; or (b) is otherwise precluded from impugning the effectiveness of an unauthorized endorsement. Liability of issuer (2) An issuer who registers the transfer of a debt obligation on an unauthorized endorsement is liable for improper registration. Warranties of guarantor of signature 86. (1) A person who guarantees the signature of an endorser of a debt obligation warrants that, at the time of signing, the signer was an appropriate person to endorse and the signature was genuine. Limitation of liability (2) A person who guarantees the signature of an endorser does not otherwise warrant the rightfulness of the transfer to which the signature relates. Warranties of guarantor of endorsement (3) A person who guarantees the endorsement of a debt obligation warrants both the signature and the rightfulness, in all respects, of the transfer to which the signature relates, but an issuer may not require a guarantee of endorsement as a condition to registration of transfer. Organisations à Extent of liability (4) If a guarantee referred to in subsection (1) or (3) is made to any person who, relying on the guarantee, takes or deals with the debt obligation, the guarantor is liable to the person for any loss resulting from breach of warranty. Presumption of delivery 87. Delivery of a debt obligation to a purchaser occurs when (a) the purchaser or a person designated by the purchaser acquires possession of it; (b) the purchaser’s broker acquires possession of a debt obligation specially endorsed to or issued in the name of the purchaser; (c) the purchaser’s broker sends the purchaser confirmation of the purchase and the broker in the broker’s records identifies a specific debt obligation as belonging to the purchaser; or (d) in respect of an identified debt obligation to be delivered while still in the possession of a third person, that person acknowledges that it is held for the purchaser. Presumption of ownership 88. (1) A purchaser is the owner of a debt obligation held for the purchaser by a broker, but a purchaser is not a holder except in the cases described in paragraphs 87(b) and (c). Ownership of part of fungible bulk (2) If a debt obligation is part of a fungible bulk, by nature or usage of trade, a purchaser of the debt obligation is the owner of the proportionate share in the bulk. Notice to debt obligations broker of adverse claim (3) Notice of an adverse claim received by a broker or by a purchaser after the broker takes delivery as a holder for value is not effective against the broker or the purchaser, except that, as between the broker and the purchaser, the purchaser may demand delivery of an equivalent debt obligation in respect of which no notice of an adverse claim has been received. Delivery of debt obligation 89. (1) Unless agreed otherwise, if a sale of a debt obligation is made through brokers, on a stock exchange or otherwise, (a) the selling customer fulfils their duty to deliver when the customer delivers the debt obligation to the selling broker or to a person designated by the selling broker or when they C. 23 Canada Not-for-pr cause an acknowledgement to be made to the selling broker that the debt obligation is held for the selling broker; and (b) the selling broker, including a correspondence broker, acting for a selling customer fulfils their duty to deliver by delivering the debt obligation or a similar debt obligation to the buying broker or to a person designated by the buying broker or by effecting clearance of the sale in accordance with the rules of the exchange on which the transaction took place. Duty to deliver (2) Except as provided otherwise in this section and unless agreed otherwise, a transferor’s duty to deliver a debt obligation under a contract of purchase is not fulfilled until the transferor delivers the debt obligation in negotiable form to the purchaser or to a person designated by the purchaser, or causes an acknowledgement to be made to the purchaser that the debt obligation is held for the purchaser. Delivery to debt obligations broker (3) A sale to a broker purchasing for the broker’s own account is subject to subsection (2) and not subsection (1), unless the sale is made on a stock exchange. Right to reclaim possession 90. (1) A person against whom the transfer of a debt obligation is wrongful may, against anyone except a good faith purchaser, (a) reclaim possession of the debt obligation or obtain possession of a new debt obligation evidencing all or part of the same rights; or (b) claim damages. Recovery when unauthorized endorsement (2) If the transfer of a debt obligation is wrongful by reason of an unauthorized endorsement, the owner may reclaim possession of the debt obligation or a new debt obligation even from a good faith purchaser if the ineffectiveness of the purported endorsement is asserted against the purchaser under section 85. Right to requisites for registration 91. (1) Unless agreed otherwise, a transferor shall, on demand, supply a purchaser with proof of the transferor’s authority to transfer a debt obligation or with any other requisite that is necessary to obtain registration of the transfer of a debt obligation, but if the transfer is not for value, it is not necessary for the transferor to Organisations à provide authority to transfer unless the purchaser pays the reasonable and necessary costs of the proof and transfer. Rescission of transfer (2) If a transferor fails to comply with a demand under subsection (1) within a reasonable time, the purchaser may reject, rescind or resolve the transfer. Seizure of debt obligation 92. No seizure of a debt obligation or other interest or right evidenced by the debt obligation is effective until the person making the seizure obtains possession of the debt obligation. Not liable if good faith delivery 93. An agent or mandatary, or a bailee, who in good faith has received debt obligations and sold, pledged or delivered them according to the instructions of the principal or mandator is not in breach of their duties as a fiduciary or otherwise liable even though they have no right to dispose of the debt obligations. Duty to register transfer 94. (1) If a debt obligation in registered form is presented for transfer, the issuer shall register the transfer if (a) the debt obligation is endorsed by an appropriate person; (b) reasonable assurance is given that the endorsement is genuine and effective; (c) the issuer has no duty to inquire into adverse claims or has discharged that duty; (d) all applicable laws relating to the collection of taxes have been complied with; (e) the transfer is rightful or is to a good faith purchaser; and (f) any transfer fee referred to in section 39 has been paid. Liability for delay (2) An issuer who has a duty to register a transfer of a debt obligation is liable to the person presenting it for registration for any loss resulting from an unreasonable delay in registration or from the failure or refusal to register the transfer. C. 23 Assurance of endorsement 95. (1) An issuer may require an assurance that each necessary endorsement on a debt obligation is genuine and effective by requiring a guarantee of the signature of the person endorsing the debt obligation and by requiring Canada Not-for-pr (a) if the endorsement is by an agent or mandatary, reasonable assurance of authority to sign; (b) if the endorsement is by a fiduciary, evidence of appointment or incumbency; (c) if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and (d) in any other case, assurance that corresponds as closely as is feasible to the cases set out in paragraphs (a) to (c). Sufficiency of guarantee (2) For the purpose of subsection (1), a guarantee of the signature of a person is sufficient if it is signed by or on behalf of a person whom the issuer believes, on reasonable grounds, to be a responsible person. Standards (3) An issuer may adopt reasonable standards to determine responsible persons. Sufficiency of evidence of appointment or incumbency (4) For the purpose of paragraph (1)(b), the following constitute sufficient evidence of appointment or incumbency of a fiduciary: (a) in the case of a fiduciary of a deceased debt obligation holder’s estate or succession, a certified or notarial copy of the document referred to in paragraph 53(1)(c) and dated not earlier than the first day of the prescribed period before a debt obligation is presented for transfer; or (b) in the case of any other fiduciary, a copy of a document showing the appointment or other evidence believed by the issuer to be appropriate. Standards (5) An issuer may adopt reasonable standards with respect to evidence referred to in paragraph (4)(b). Organisations à No notice to issuer (6) An issuer is deemed not to have notice of the contents of a document referred to in subsection (4) that is obtained by the issuer except to the extent that the contents relate directly to appointment or incumbency. Notice from additional documentation 96. If an issuer, in relation to a transfer, demands assurance other than an assurance specified in subsection 95(1) and obtains a copy of a will, trust or partnership agreement or a bylaw or similar document, the issuer is deemed to have notice of all matters contained in the document that affect the transfer. Limited duty of inquiry 97. (1) An issuer to whom a debt obligation is presented for registration has a duty to inquire into adverse claims if (a) the issuer receives written notice of an adverse claim at a time and in a manner that provide the issuer with a reasonable opportunity to act on it before the issue of a new, reissued or re-registered debt obligation and the notice discloses the name and address of the claimant, the registered owner and the issue of which the debt obligation is a part; or (b) the issuer is deemed to have notice of an adverse claim from a document that it obtained under section 96. Discharge of duty (2) An issuer may discharge a duty of inquiry by any reasonable means, including notifying an adverse claimant by registered mail sent to the address provided by the adverse claimant or, if no such address has been provided, to the adverse claimant’s residence or regular place of business, that a debt obligation has been presented for registration of transfer by a named person and that the transfer will be registered unless, no later than the prescribed period after the date of sending the notice, the issuer (a) is served with a court order; or (b) is provided with an indemnity bond or, in Quebec, a guarantee sufficient in the issuer’s judgement to protect the issuer and any transfer agent or other agent or mandatary of the issuer from any loss that may be incurred by any of them as a result of complying with the adverse claim. C. 23 Inquiry into adverse claim 98. Unless an issuer is deemed to have notice of an adverse claim from a document that is obtained under section 96 or has received notice of an adverse claim under subsection 97(1), if a debt obligation presented for registration is endorsed by an appropriate person, the issuer has no duty to inquire into adverse claims and, in particular, Canada Not-for-pr (a) an issuer registering a debt obligation in the name of a person who is a fiduciary or who is described as a fiduciary is not bound to inquire into the existence, extent or correct description of the fiduciary relationship and the issuer may then assume without inquiry that the newly registered owner continues to be the fiduciary until the issuer receives written notice that the fiduciary is no longer acting as such with respect to the particular debt obligation; (b) an issuer registering a transfer on an endorsement by a fiduciary has no duty to inquire into whether the transfer is made in compliance with the document or with the law of the jurisdiction governing the fiduciary relationship; and (c) an issuer is deemed not to have notice of the contents of a court record or a registered document even if the record or document is in the issuer’s possession and the transfer is made on the endorsement of a fiduciary to the fiduciary specifically or to the fiduciary’s nominee. Duration of notice of adverse claim 99. A written notice of adverse claim received by an issuer is effective for the prescribed period unless the notice is renewed in writing. Limitation on issuer’s liability 100. (1) Except as provided otherwise in any applicable law relating to the collection of taxes, an issuer is not liable to the owner or any other person who incurs a loss as a result of the registration of a transfer of a debt obligation if (a) the necessary endorsements were on or with the debt obligation; and (b) the issuer had no duty to inquire into adverse claims or had discharged that duty. 2009 Duty of issuer on wrongful registration Organisations à (2) If an issuer has registered a transfer of a debt obligation to a person not entitled to it, the issuer shall on demand deliver a similar debt obligation to the owner unless (a) the issuer is not liable by virtue of subsection (1); (b) the owner is precluded by subsection 101(1) from asserting a claim; or (c) the delivery would result in an overissue to which section 54 applies. Lost or stolen debt obligation 101. (1) The owner of a debt obligation who fails to notify the issuer of an adverse claim, in writing, within a reasonable time after the owner knows of the loss, apparent destruction or wrongful taking of the debt obligation is precluded from asserting against the issuer a claim to a new debt obligation if the issuer has registered a transfer of the debt obligation. Duty to issue new debt obligation (2) If the owner of a debt obligation claims that the debt obligation has been lost, destroyed or wrongfully taken, the issuer shall issue a new debt obligation in place of the original one if the owner (a) so requests before the issuer has notice that the debt obligation has been acquired by a good faith purchaser; (b) provides the issuer with a sufficient indemnity bond or, in Quebec, a sufficient guarantee; and (c) satisfies any other reasonable requirements imposed by the issuer. Duty to register transfer (3) If, after the issue of a new debt obligation under subsection (2), a good faith purchaser of the original debt obligation presents the original one for registration of transfer, the issuer shall register the transfer unless registration would result in an overissue to which section 54 applies. Right of issuer to recover (4) In addition to the rights that an issuer has by reason of an indemnity bond or, in Quebec, a guarantee, the issuer may recover the new debt obligation issued under subsection (2) from the person to whom it was issued or any person taking under that person other than a good faith purchaser. C. 23 Duty 102. An authenticating trustee, transfer agent or other agent or mandatary of an issuer has, in respect of the issue, registration of transfer and cancellation of a debt obligation of the issuer, Canada Not-for-pr (a) a duty to the issuer to exercise good faith and reasonable diligence; and (b) the same obligations to the holder or owner of the debt obligation and the same rights, privileges and immunities as the issuer. Notice to agent or mandatary 103. Notice to an authenticating trustee, transfer agent or other agent or mandatary of an issuer is notice to the issuer in respect of the functions performed by the agent or mandatary. PART 7 TRUST INDENTURES Definitions 104. (1) The following definitions apply in this Part. “event of default” « défaut » “event of default” means an event specified in a trust indenture on the occurrence of which a security interest effected by the trust indenture becomes enforceable, or the principal, interest or other money payable under the trust indenture becomes or may be declared to be payable before maturity, once all conditions — such as the giving of notice or the lapse of time — provided for by the trust indenture in connection with the event have been satisfied. “trustee” « fiduciaire » “trust indenture” « acte de fiducie » “trustee” means any person appointed as trustee, including the administrator of the property of others, under the terms of a trust indenture to which a corporation is a party and includes any successor trustee. “trust indenture” means any deed, indenture or other instrument or act, including any supplement or amendment to one, made by a corporation after its incorporation or continuance under this Act, under which the corporation issues debt obligations and in which a person is appointed as trustee for the holders of the debt obligations issued under the deed, indenture or other instrument. Organisations à Application (2) This Part applies to a trust indenture if the debt obligations issued or to be issued under the trust indenture are part of a distribution to the public. Application for exemption (3) On application, the Director may exempt a trust indenture from the application of this Part if the trust indenture, the debt obligations issued under it and the security interest effected by it are subject to a law of a province or a country other than Canada that is substantially equivalent to this Part. Conflict of interest 105. (1) No person shall accept an appointment as trustee if there is a material conflict of interest between their role as trustee and their role in any other capacity. Eliminating conflict of interest (2) A trustee shall, within the prescribed period after becoming aware that a material conflict of interest exists, eliminate the conflict of interest or resign. Validity (3) A trust indenture, any debt obligations issued under it and a security interest effected by it are valid despite a material conflict of interest of the trustee. Removal of trustee (4) The court may, on the application of an interested person, order, on any terms that it thinks fit, that a trustee who has contravened subsection (1) or (2) be replaced. Qualification of trustee 106. A trustee, or at least one of the trustees if more than one is appointed, shall be a body corporate incorporated under the laws of Canada or a province and authorized to carry on the business of a trust company. List of debt obligation holders 107. (1) A holder of debt obligations issued under a trust indenture may, on payment to the trustee of any reasonable fee and on sending to the trustee the statutory declaration referred to in subsection (4), require the trustee to furnish, within the prescribed period, a list of debt obligation holders setting out the prescribed information and updated in accordance with the regulations. Duty of issuer (2) On the demand of a trustee, the issuer of debt obligations shall furnish the trustee with the information required to enable the trustee to comply with subsection (1). C. 23 Corporate applicant (3) If the applicant is a body corporate, the statutory declaration shall be made by a director or officer of the body corporate. Contents of statutory declaration Canada Not-for-pr (4) The statutory declaration shall (a) state the name and address of the applicant and, if the applicant is a body corporate, its address for service; and (b) state that the list will not be used except as permitted under subsection (5). Use of list (5) A list obtained under this section shall not be used by any person except in connection with (a) an effort to influence the voting of the holders of debt obligations; (b) an offer to acquire debt obligations; or (c) any other matter relating to the debt obligations or the affairs of the issuer, the guarantor or, in Quebec, the surety of the debt obligations. Evidence of compliance 108. (1) An issuer, a guarantor or, in Quebec, a surety of debt obligations issued or to be issued under a trust indenture shall, before taking any of the following actions, provide the trustee with evidence of compliance with the conditions, if any, in the trust indenture for taking that action: (a) the issue, certification or delivery of debt obligations under the trust indenture; (b) the release or release and substitution of property subject to a security interest effected by the trust indenture; or (c) the satisfaction and discharge of the trust indenture. Duty of issuer, guarantor or surety (2) On the demand of a trustee, the issuer, the guarantor or, in Quebec, the surety of debt obligations issued or to be issued under a trust indenture shall provide the trustee with evidence of compliance with the trust indenture by the issuer, guarantor or surety in respect of any act to be done by the trustee at their request. Contents of declaration, etc. 109. Evidence of compliance as required by section 108 shall consist of a statutory declaration or certificate made by a director or an officer of the issuer, the guarantor or, in Quebec, the surety stating that the conditions referred to Organisations à in that section have been complied with. If compliance with any of those conditions is subject to review by legal counsel, evidence of compliance also includes an opinion of legal counsel that those conditions have been complied with. If compliance with any of those conditions is subject to review by an auditor or accountant, evidence of compliance also includes an opinion or report of the public accountant of the issuer, guarantor or surety, or any other accountant that the trustee selects, that those conditions have been complied with. Further evidence of compliance 110. The evidence of compliance referred to in section 109 shall include a statement by the person giving the evidence (a) declaring that they have read and understand the conditions of the trust indenture referred to in section 108; (b) describing the nature and scope of the examination or investigation on which the statutory declaration, certificate, opinion or report is based; and (c) declaring that they have made the examination or investigation that they believe necessary to enable them to make their statutory declaration, certificate, opinion or report. Trustee may require evidence of compliance 111. (1) On the demand of a trustee, the issuer, the guarantor or, in Quebec, the surety of debt obligations issued under a trust indenture shall provide the trustee with evidence in any form that the trustee may require for compliance with any condition relating to any action required or permitted to be taken by the issuer, guarantor or surety under the trust indenture. Certificate of compliance (2) At least once in each prescribed period beginning on the date of the trust indenture and at any other time on the demand of a trustee, the issuer, the guarantor or, in Quebec, the surety of debt obligations issued under a trust indenture shall provide the trustee with (a) a certificate that the issuer, the guarantor or, in Quebec, the surety has complied with all requirements contained in the trust C. 23 Canada Not-for-pr indenture that, if not complied with, would, with the giving of notice, lapse of time or otherwise, constitute an event of default; or (b) a certificate of the particulars of any failure to comply with the requirements. Notice of default 112. The trustee shall give notice to the holders of debt obligations issued under a trust indenture of every event of default arising under the trust indenture and continuing at the time the notice is given, unless the trustee reasonably believes that it is in the best interests of the holders of the debt obligations to withhold the notice and so informs in writing the issuer, the guarantor or, in Quebec, the surety. The notice shall be given within the prescribed period. Duties of trustee 113. A trustee in exercising their powers and discharging their duties shall (a) act honestly and in good faith with a view to the best interests of the holders of the debt obligations issued under the trust indenture; and (b) exercise the care, diligence and skill of a reasonably prudent trustee. Reliance on statements 114. Despite section 113, a trustee is not liable if they rely in good faith on statements contained in a statutory declaration, certificate, opinion or report that complies with this Act or the trust indenture. No exculpation 115. No term of a trust indenture or of any agreement between a trustee and the holders of debt obligations issued under the trust indenture or between the trustee and the issuer, the guarantor or, in Quebec, the surety shall operate so as to relieve a trustee from the duties imposed on the trustee by section 113. PART 8 RECEIVERS, RECEIVER-MANAGERS AND SEQUESTRATORS Functions of receiver or sequestrator 116. A receiver or sequestrator of any property of a corporation may, subject to the rights of secured creditors, receive the income from the property, pay the liabilities connected with the property and realize the security interest of those on behalf of whom the receiver or sequestrator is appointed, but, except to the Organisations à extent permitted by a court, the receiver or sequestrator may not carry on the activities of the corporation. Functions of receivermanager 117. A receiver-manager of the corporation may carry on any activities of the corporation to protect the security interest of those on behalf of whom the receiver-manager is appointed. Directors’ powers cease 118. If a receiver-manager or sequestrator is appointed by a court or under an instrument or act, the powers of the directors of the corporation that a receiver-manager or sequestrator is authorized to exercise may not be exercised by the directors until the receiver-manager or sequestrator is discharged. Duty to act 119. A receiver, receiver-manager or sequestrator appointed by a court shall act in accordance with the orders of the court. Duty under instrument or act 120. A receiver, receiver-manager or sequestrator appointed under an instrument or act shall act in accordance with that instrument or act and any order of a court made under section 122. Duty of care 121. A receiver, receiver-manager or sequestrator of a corporation appointed under an instrument or act shall (a) act honestly and in good faith; and (b) deal with any property of the corporation in their possession or control in a commercially reasonable manner. Orders given by court 122. On the application of a receiver, receiver-manager or sequestrator, whether appointed by a court or under an instrument or act, or of any interested person, a court may make (a) an order appointing, replacing or discharging a receiver, receiver-manager or sequestrator and approving their accounts; (b) an order determining the notice to be given to any interested person or dispensing with notice to any person; (c) an order fixing the remuneration of the receiver, receiver-manager or sequestrator; (d) an order requiring the receiver, receivermanager or sequestrator, or a person by or on behalf of whom the receiver, receiver-manager or sequestrator is appointed, to make good any default in connection with the C. 23 Canada Not-for-pr receiver’s, receiver-manager’s or sequestrator’s custody or management of the property and activities of the corporation, or relieving the receiver, receiver-manager or sequestrator, or a person by or on behalf of whom the receiver, receiver-manager or sequestrator was appointed, from any default on any terms that the court thinks fit; (e) an order confirming any act of the receiver, receiver-manager or sequestrator; (f) an order giving directions on any matter relating to the duties of the receiver, receivermanager or sequestrator; and (g) any other order that it thinks fit. Duties of receiver and receivermanager 123. A receiver or receiver-manager shall (a) immediately notify the Director of their appointment and discharge; (b) take into their custody and control the property of the corporation in accordance with the court order, instrument or act under which they are appointed; (c) open and maintain a bank account in their name as receiver or receiver-manager of the corporation for the money of the corporation coming under their control; (d) keep detailed accounts of all transactions carried out as receiver or receiver-manager; (e) keep accounts of their administration that shall be available during usual business hours for inspection by the directors of the corporation; (f) prepare at least once in every prescribed period after the date of their appointment financial statements of their administration as far as is practicable in the form required by section 172; and (g) on completion of their duties, render a final account of their administration in the form adopted for interim accounts under paragraph (f). Organisations à PART 9 DIRECTORS AND OFFICERS Duty to manage or supervise management 124. Subject to this Act, the articles and any unanimous member agreement, the directors shall manage or supervise the management of the activities and affairs of a corporation. Number of directors 125. A corporation shall have one or more directors, but a soliciting corporation shall not have fewer than three directors, at least two of whom are not officers or employees of the corporation or its affiliates. Qualifications of directors 126. (1) The following persons are disqualified from being a director of a corporation: (a) anyone who is less than 18 years of age; (b) anyone who has been declared incapable by a court in Canada or in another country; (c) a person who is not an individual; and (d) a person who has the status of a bankrupt. Membership (2) Unless the by-laws otherwise provide, a director of a corporation is not required to be a member of the corporation. No alternate directors (3) No person shall act for an absent director at a meeting of directors. Organization meeting 127. (1) After the issue of the certificate of incorporation, the directors of a corporation shall hold a meeting at which the directors may (a) make by-laws; (b) adopt forms of debt obligation certificates and corporate records; (c) authorize the issue of debt obligations; (d) appoint officers; (e) appoint a public accountant to hold office until the first annual meeting of members; (f) issue memberships; (g) make banking arrangements; and C. 23 Canada Not-for-pr (h) transact any other business. Exception (2) Subsection (1) does not apply to a body corporate to which a certificate of amalgamation has been issued under subsection 208(4) or to which a certificate of continuance has been issued under subsection 211(5). Calling meeting (3) An incorporator or a director may call the meeting by giving notice of the time and place of the meeting to each director within the prescribed period. Waiver of notice (4) A director may waive notice of the meeting, and attendance of a director at the meeting is a waiver of notice of the meeting, except if the director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. Resolution in lieu of meeting (5) If all directors sign a resolution dealing with any matter referred to in paragraphs (1)(a) to (g), they are not required to hold the meeting referred to in subsection (1). Filing resolution (6) A copy of the resolution shall be kept with the minutes of the meetings of directors. Notice of directors 128. (1) At the time of sending articles of incorporation, a notice of directors in the form that the Director fixes shall be sent to the Director. Term of office (2) Each director named in the notice holds office from the issue of the certificate of incorporation until the first meeting of members. Election of directors (3) Members shall, by ordinary resolution at each annual meeting at which an election of directors is required, elect directors to hold office for a term expiring within the prescribed period. Staggered terms (4) It is not necessary that all directors elected at a meeting of members hold office for the same term. Organisations à No stated terms (5) A director not elected for an expressly stated term ceases to hold office at the close of the first annual meeting of members following the director’s election. Incumbent directors (6) Despite subsections (2), (3) and (5), if directors are not elected at a meeting of members, the incumbent directors continue in office until their successors are elected. Vacancy among candidates (7) If a meeting of members fails to elect the number or the minimum number of directors required by the articles by reason of the lack of consent, the disqualification, the incapacity or the death of any candidate, the directors elected at that meeting may exercise all the powers of the directors if the number of directors so elected constitutes a quorum. Appointment of directors (8) The directors may, if the articles of the corporation so provide, appoint one or more additional directors, who shall hold office for a term expiring not later than the close of the next annual meeting of members, but the total number of directors so appointed may not exceed one third of the number of directors elected at the previous annual meeting of members. Election or appointment as director (9) An individual who is elected or appointed to hold office as a director is not a director, and is deemed not to have been elected or appointed to hold office as a director, unless (a) the individual was present at the meeting when the election or appointment took place and did not refuse to hold office as a director; or (b) the individual was not present at the meeting when the election or appointment took place and (i) consented to hold office as a director in writing before the election or appointment or within the prescribed period, or (ii) has acted as a director after the election or appointment. Ceasing to hold office 129. (1) A director of a corporation ceases to hold office when the director dies, resigns, is removed in accordance with section 130 or becomes disqualified under section 126. C. 23 Effective date of resignation (2) A resignation of a director becomes effective at the time a written resignation is sent to the corporation or at the time specified in the resignation, whichever is later. Removal of directors 130. (1) The members of a corporation may by ordinary resolution at a special meeting remove any director or directors from office. Exception (2) A director elected by a class or group of members that has an exclusive right to elect the director may only be removed by an ordinary resolution of those members. Vacancy (3) A vacancy created by the removal of a director may be filled at the meeting of the members at which the director is removed or, if not so filled, may be filled under section 132. Resignation or removal (4) If all of the directors have resigned or have been removed without replacement, a person who manages or supervises the management of the activities or affairs of the corporation is deemed to be a director for the purposes of this Act. Exception Canada Not-for-pr (5) Subsection (4) does not apply to (a) an officer who manages the activities or affairs of the corporation under the direction or control of a member or other person; (b) a lawyer, a notary, an accountant or other professional who participates in the management of the corporation solely by providing professional services; or (c) a trustee in bankruptcy, receiver, receivermanager, sequestrator or secured creditor who participates in the management of the corporation or exercises control over its property solely for the purpose of the realization of security or, in the case of bankruptcy, the administration of a bankrupt’s estate. Statement of director 131. (1) Subject to the by-laws, a director is entitled to submit to the corporation a written statement giving reasons for resigning or for opposing the removal or replacement of the director if a meeting is called for that purpose. Organisations à Circulating statement (2) A corporation shall immediately give notice to the members of the statement in the manner referred to in section 162. Statement to Director (3) A corporation shall immediately send a copy of the statement to the Director. Immunity (4) No corporation or person acting on its behalf incurs any liability by reason only of complying with this section. Filling vacancy 132. (1) Subject to subsections (4) and (5), a quorum of directors may fill a vacancy among the directors, except a vacancy resulting from an increase in the number or the minimum or maximum number of directors provided for in the articles or a failure to elect the number or minimum number of directors provided for in the articles. Calling meeting (2) If there is not a quorum of directors or if there has been a failure to elect the number or minimum number of directors provided for in the articles, the directors then in office shall without delay call a special meeting of members to fill the vacancy and, if they fail to call a meeting or if there are no directors then in office, the meeting may be called by any member. Order of appointment (3) If a corporation has neither directors nor members, the court may, on the application of an interested party, make an order appointing the required number or minimum number of directors provided for in the articles. Director elected by class or group (4) If any class or group of members has an exclusive right to elect one or more directors and a vacancy occurs among those directors, (a) subject to subsection (5), the remaining directors elected by the class or group may fill the vacancy, except a vacancy resulting from an increase in the number or the minimum or maximum number of directors provided for in the articles for that class or group or from a failure to elect the number or minimum number of directors provided for in the articles for the class or group; or (b) if there are no remaining directors, any member of the class or group may call a meeting of the class or group to fill the vacancy. C. 23 Member filling vacancy (5) The by-laws may provide that a vacancy among the directors shall be filled only by a vote of the members, or by a vote of the members of any class or group having an exclusive right to elect one or more directors if the vacancy occurs among the directors elected by that class or group. Unexpired term (6) A director appointed or elected to fill a vacancy holds office for the unexpired term of their predecessor. Change in number of directors 133. (1) The members of a corporation may amend the articles to increase or decrease the number of directors, or the minimum or maximum number of directors, but no decrease shall shorten the term of an incumbent director. Election of directors where articles amended (2) If the members at a meeting adopt an amendment to the articles of a corporation to increase or decrease the number or minimum or maximum number of directors, the members may, at the meeting, elect the number of directors authorized by the amendment, and for that purpose, despite subsections 202(1) and 276(3), on the issue of a certificate of amendment the articles are deemed to be amended as of the date the members adopt the amendment. Fixing the number of directors (3) If a minimum and maximum number of directors is provided for in the articles, the members may, from time to time by ordinary resolution, fix the number of directors of the corporation and the number of directors to be elected at annual meetings of the members or delegate those powers to the directors. No decrease in the number of directors shall shorten the term of an incumbent director. Notice of change of director or director’s address 134. (1) A corporation shall send to the Director a notice, within the prescribed period and in the form that the Director fixes, setting out any change among its directors or of the address of a director. Director’s change of address (2) A director shall, within the prescribed period, send the corporation a notice of any change in his or her address. Canada Not-for-pr Organisations à Application to court (3) The court may, on the application of an interested person or the Director, make an order requiring a corporation to comply with subsection (1) and make any further order that it thinks fit. Attendance at meeting 135. A director is entitled to attend and be heard at every meeting of members. Meeting of directors 136. (1) Unless the articles or by-laws otherwise provide, the directors may meet at any place and on any notice that the by-laws require. Quorum (2) Subject to the articles or by-laws, a majority of the number of directors or minimum number of directors required by the articles constitutes a quorum at any meeting of directors, and, despite any vacancy among the directors, a quorum of directors may exercise all the powers of the directors. Notice of meeting (3) A notice of a meeting of directors shall specify any matter referred to in subsection 138(2) that is to be dealt with at the meeting but, unless the by-laws otherwise provide, need not specify the purpose of or the business to be transacted at the meeting. Waiver of notice (4) A director may waive notice of a meeting of directors, and attendance of a director at a meeting of directors is a waiver of notice of the meeting, except if the director attends a meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. Adjournment (5) Notice of an adjourned meeting of directors is not required to be given if the time and place of the adjourned meeting is announced at the original meeting. One director meeting (6) If a corporation has only one director, that director may constitute a meeting. Participation (7) Subject to the by-laws, a director may, in accordance with the regulations, if any, and if all the directors of the corporation consent, participate in a meeting of directors or of a committee of directors by means of a telephonic, an electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting. C. 23 Canada Not-for-pr A director so participating in a meeting is deemed for the purposes of this Act to be present at that meeting. Decisions made by consensus 137. (1) The by-laws may provide that the directors or members shall make any decision by consensus, including a decision required to be made by a vote, except a decision taken (a) by a resolution referred to in subsection 182(1); (b) by special resolution; or (c) by a vote if consensus cannot be reached. Meaning of consensus, etc. (2) By-laws that provide for consensus decision-making shall define the meaning of consensus, provide for how to determine when consensus cannot be reached and establish the manner of referring any matter on which consensus cannot be reached to a vote. Voting requirements satisfied (3) A decision made by consensus in accordance with this section is deemed to satisfy any requirement under this Act for the taking of a vote. Delegation 138. (1) Directors of a corporation may appoint from their number a managing director or a committee of directors and delegate to the managing director or committee any of the powers of the directors. Limits on authority (2) Despite subsection (1), no managing director and no committee of directors has authority to (a) submit to the members any question or matter requiring the approval of members; (b) fill a vacancy among the directors or in the office of public accountant or appoint additional directors; (c) issue debt obligations except as authorized by the directors; (d) approve any financial statements referred to in section 172; (e) adopt, amend or repeal by-laws; or (f) establish contributions to be made, or dues to be paid, by members under section 30. Organisations à Validity of acts of directors and officers 139. An act of a director or an officer is valid despite an irregularity in their election or appointment or a defect in their qualification. Validity of signed resolutions 140. (1) A resolution in writing, signed by all the directors entitled to vote on that resolution at a meeting of directors or of a committee of directors, is as valid as if it had been passed at a meeting of directors or committee of directors. Filing resolution (2) A copy of every resolution referred to in subsection (1) shall be kept with the minutes of the meetings of directors. Evidence (3) Unless a ballot is demanded, an entry in the minutes of a meeting to the effect that the chairperson of the meeting declared a resolution to be carried or defeated is, in the absence of evidence to the contrary, proof of the fact without proof of the number or proportion of the votes recorded in favour of or against the resolution. Disclosure of interest 141. (1) A director or an officer of a corporation shall disclose to the corporation, in writing or by requesting to have it entered in the minutes of meetings of directors or of committees of directors, the nature and extent of any interest that the director or officer has in a material contract or material transaction, whether made or proposed, with the corporation, if the director or officer (a) is a party to the contract or transaction; (b) is a director or an officer, or an individual acting in a similar capacity, of a party to the contract or transaction; or (c) has a material interest in a party to the contract or transaction. Time of disclosure for director (2) The disclosure required by subsection (1) shall be made, in the case of a director, (a) at the meeting at which a proposed contract or transaction is first considered; (b) if the director was not, at the time of the meeting referred to in paragraph (a), interested in the proposed contract or transaction, at the first meeting after the director becomes so interested; C. 23 Canada Not-for-pr (c) if the director becomes interested after a contract or transaction is made, at the first meeting after the director becomes so interested; or (d) if an individual who is interested in a contract or transaction later becomes a director, at the first meeting after the individual becomes a director. Time of disclosure for officer (3) The disclosure required by subsection (1) shall be made, in the case of an officer who is not a director, (a) immediately after the officer becomes aware that the contract, transaction, proposed contract or proposed transaction is to be considered or has been considered at a meeting; (b) if the officer becomes interested after a contract or transaction is made, immediately after the officer becomes so interested; or (c) if an individual who is interested in a contract or transaction later becomes an officer, immediately after the individual becomes an officer. Time of disclosure for director or officer (4) If a material contract or material transaction, whether entered into or proposed, is one that, in the ordinary course of the corporation’s activities, would not require approval by the directors or members, a director or an officer shall, immediately after they become aware of the contract or transaction, disclose in writing to the corporation, or request to have entered in the minutes of meetings of directors or of committees of directors, the nature and extent of their interest. Voting (5) A director required to make a disclosure under subsection (1) shall not vote on any resolution to approve the contract or transaction unless the contract or transaction (a) relates primarily to the director’s remuneration as a director, an officer, an employee, an agent or a mandatary of the corporation or an affiliate; (b) is for indemnity or insurance under section 151; or (c) is with an affiliate. Continuing disclosure Organisations à (6) For the purposes of this section, a general notice to the directors declaring that a director or an officer is to be regarded as interested, for any of the following reasons, in a contract or transaction made with a party, is a sufficient declaration of interest in relation to the contract or transaction: (a) the director or officer is a director or an officer, or acting in a similar capacity, of a party referred to in paragraph (1)(b) or (c); (b) the director or officer has a material interest in the party; or (c) there has been a material change in the nature of the director’s or the officer’s interest in the party. Access to disclosures (7) The members of the corporation may examine the portions of any minutes of meetings of directors or of committees of directors that contain disclosures under this section, and of any other documents that contain those disclosures, during the corporation’s usual business hours. Avoidance standards (8) A contract or transaction for which disclosure is required under subsection (1) is not invalid, and the director or officer is not accountable to the corporation or its members for any profit realized from the contract or transaction, because of the director’s or officer’s interest in the contract or transaction or because the director was present or was counted to determine whether a quorum existed at the meeting of directors or of the committee of directors that considered the contract or transaction, if (a) disclosure of the interest was made in accordance with this section; (b) the directors approved the contract or transaction; and (c) the contract or transaction was reasonable and fair to the corporation when it was approved. C. 23 Confirmation by members (9) Even if the conditions of subsection (8) are not met, a director or an officer, acting honestly and in good faith, is not accountable to the corporation or to its members for any profit realized from a contract or transaction for which disclosure is required under subsection (1), and the contract or transaction is not invalid by reason only of the interest of the director or officer in the contract or transaction, if Canada Not-for-pr (a) the contract or transaction is approved or confirmed by special resolution at a meeting of the members; (b) disclosure of the interest was made to the members in a manner sufficient to indicate its nature and extent before the contract or transaction was approved or confirmed; and (c) the contract or transaction was reasonable and fair to the corporation when it was approved or confirmed. Application to court (10) If a director or an officer of a corporation fails to comply with this section, a court may, on the application of the corporation or any of its members, set aside or annul the contract or transaction on any terms that it thinks fit, require the director or officer to account to the corporation for any profit or gain realized on the contract or transaction or make any other order that the court thinks fit. Officers 142. Subject to the articles, the by-laws and any unanimous member agreement, (a) the directors may designate the offices of the corporation, appoint as officers persons of full capacity, specify their duties and delegate to them powers to manage the activities and affairs of the corporation, except powers to do anything referred to in subsection 138(2); (b) a director may be appointed to any office of the corporation; and (c) two or more offices of the corporation may be held by the same person. Organisations à Remuneration 143. (1) Subject to the articles, the by-laws and any unanimous member agreement, the directors of a corporation may fix the reasonable remuneration of the directors, officers and employees of the corporation. Services performed in other capacity (2) Subject to the by-laws, a director, an officer or a member may receive reasonable remuneration and expenses for any services to the corporation that are performed in any other capacity. Indemnification 144. Unless the by-laws of the corporation otherwise provide, a director, an officer or an employee may receive indemnification for their expenses incurred on behalf of the corporation as a director, an officer or an employee. Directors’ liability 145. (1) Directors of a corporation who vote for or consent to a resolution authorizing any of the following are jointly and severally, or solidarily, liable to restore to the corporation any money or other property so paid or distributed and not otherwise recovered by the corporation: (a) a payment or distribution to a member, a director or an officer contrary to this Act; or (b) a payment of an indemnity contrary to this Act. Recovery of shares (2) A director who has satisfied a judgment rendered under this section is entitled to recover from the other directors who voted for or consented to the unlawful act on which the judgment was founded their respective shares. Recovery (3) A director liable under subsection (1) is entitled to apply to a court for an order compelling a member or other recipient to pay or deliver to the director any money or other property that was paid or distributed to the member or other recipient contrary to this Act. Order of court (4) On an application under subsection (3), a court may, if it is satisfied that it is equitable to do so, order a member or other recipient to pay or deliver to a director any money or other property that was paid or distributed to the member or other recipient contrary to this Act and make any further order that it thinks fit. C. 23 Limitation (5) An action to enforce a liability imposed by this section may not be commenced after two years from the date of the resolution authorizing the action complained of. Liability of directors for wages 146. (1) Directors of a corporation are jointly and severally, or solidarily, liable to employees of the corporation for all debts not exceeding six months’ wages payable to each employee for services performed for the corporation while they are directors. Conditions precedent to liability (2) A director is not liable under subsection (1) unless Canada Not-for-pr (a) the corporation has been sued for the debt within six months after it has become due and execution has been returned unsatisfied in whole or in part; (b) the corporation has commenced liquidation and dissolution proceedings or has been dissolved and a claim for the debt has been proved within six months after the earlier of the date of commencement of the liquidation and dissolution proceedings and the date of dissolution; or (c) the corporation has made an assignment or a receiving order has been made against it under the Bankruptcy and Insolvency Act and a claim for the debt has been proved within six months after the date of the assignment or receiving order. Limitation (3) A director, unless sued for a debt referred to in subsection (1) while a director or within two years after ceasing to be a director, is not liable under this section. Amount due after execution (4) If execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution. Subrogation of director (5) A director who pays a debt referred to in subsection (1) that is proved in liquidation and dissolution or bankruptcy proceedings is subrogated to any priority that the employee would have been entitled to and, if a judgment has been obtained, the director is (a) in Quebec, subrogated to the employee’s rights as declared in the judgment; and Organisations à (b) elsewhere in Canada, entitled to an assignment of the judgment. Recovery of shares (6) A director who has satisfied a claim under this section is entitled to recover from the other directors who were liable for the claim their respective shares. Dissent 147. (1) A director who is present at a meeting of directors or of a committee of directors is deemed to have consented to any resolution passed or action taken at the meeting unless (a) the director requests a dissent to be entered in the minutes of the meeting; (b) the director sends a written dissent to the secretary of the meeting before the meeting is adjourned; or (c) the director sends a dissent by registered mail or delivers it to the registered office of the corporation immediately after the meeting is adjourned. Loss of right to dissent (2) A director who votes for or consents to a resolution is not entitled to dissent under subsection (1). Dissent of absent director (3) A director who was not present at a meeting at which a resolution was passed or action taken is deemed to have consented to the resolution or action unless, within the prescribed period after becoming aware of the resolution or action, the director (a) causes a dissent to be placed with the minutes of the meeting; or (b) sends a dissent by registered mail or delivers it to the registered office of the corporation. Duties of directors and officers 148. (1) Every director and officer of a corporation in exercising their powers and discharging their duties shall (a) act honestly and in good faith with a view to the best interests of the corporation; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. C. 23 Duty to comply (2) Every director and officer of a corporation shall comply with Canada Not-for-pr (a) this Act and the regulations; and (b) the articles, the by-laws and any unanimous member agreement. Lawfulness of articles and purpose (3) Every director of a corporation shall verify the lawfulness of the articles and the purpose of the corporation. No exculpation (4) Subject to subsection 170(5), no provision in a contract, the articles, the by-laws or a resolution relieves a director or an officer from the duty to act in accordance with this Act or the regulations or relieves them from liability for a breach of this Act or the regulations. Director — reasonable diligence 149. (1) A director is not liable under section 145 or 146, and has complied with his or her duties under subsection 148(2) and (3), if the director exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on (a) financial statements of the corporation represented to the director by an officer of the corporation or in a written report of the public accountant of the corporation fairly to reflect the financial condition of the corporation; or (b) a report of a person whose profession lends credibility to a statement made by that person. Director — good faith (2) A director has complied with his or her duties under subsection 148(1) if the director relied in good faith on (a) financial statements of the corporation represented to the director by an officer of the corporation or in a written report of the public accountant of the corporation fairly to reflect the financial condition of the corporation; or (b) a report of a person whose profession lends credibility to a statement made by that person. Officer — reasonable diligence 150. (1) An officer has complied with his or her duties under subsection 148(2) if the officer exercised the care, diligence and skill that a reasonably prudent person would have exer2009 Organisations à cised in comparable circumstances, including reliance in good faith on a report of a person whose profession lends credibility to a statement made by that person. Officer — good faith (2) An officer has complied with his or her duties under subsection 148(1) if the officer relied in good faith on a report of a person whose profession lends credibility to a statement made by that person. Indemnification 151. (1) A corporation may indemnify a present or former director or officer of the corporation, or another individual who acts or acted at the corporation’s request as a director or an officer or in a similar capacity of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with the corporation or other entity. Advance of costs (2) A corporation may advance money to a director, an officer or other individual for the costs, charges and expenses of a proceeding referred to in subsection (1). The individual shall repay the money if the individual does not fulfil the conditions of subsection (3). Limitation (3) A corporation may not indemnify an individual under subsection (1) unless the individual (a) acted honestly and in good faith with a view to the best interests of the corporation or, as the case may be, to the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at the corporation’s request; and (b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, had reasonable grounds for believing that their conduct was lawful. Indemnification (4) A corporation may, with the approval of a court, indemnify an individual referred to in subsection (1), or advance money under subsection (2), in respect of an action by or on C. 23 Canada Not-for-pr behalf of the corporation or other entity to procure a judgment in its favour to which the individual is made a party because of the individual’s association with the corporation or other entity as described in subsection (1), against all costs, charges and expenses reasonably incurred by the individual in connection with the action, if the individual fulfils the conditions set out in subsection (3). Right to indemnity (5) Despite subsection (1), an individual referred to in that subsection is entitled to indemnity from the corporation in respect of all costs, charges and expenses reasonably incurred by the individual in connection with the defence of any civil, criminal, administrative, investigative or other proceeding to which the individual is subject because of the individual’s association with the corporation or other entity as described in that subsection, if the individual seeking indemnity (a) was not judged by the court or other competent authority to have committed any fault or to have omitted to do anything that the individual ought to have done; and (b) fulfils the conditions set out in subsection (3). Insurance (6) A corporation may purchase and maintain insurance for the benefit of an individual referred to in subsection (1) against any liability incurred by the individual (a) in the individual’s capacity as a director or an officer of the corporation; or (b) in the individual’s capacity as a director or an officer, or in a similar capacity, of another entity, if the individual acts or acted in that capacity at the corporation’s request. Application to court (7) On the application of a corporation or an individual or entity referred to in subsection (1), a court may approve an indemnity under this section and make any further order that it thinks fit. Other notice (8) On an application under subsection (7), the court may order notice to be given to any interested person and the person is entitled to appear and be heard in person or by counsel. Organisations à PART 10 BY-LAWS AND MEMBERS By-laws 152. (1) Unless the articles, the by-laws or a unanimous member agreement otherwise provides, the directors may, by resolution, make, amend or repeal any by-laws that regulate the activities or affairs of the corporation, except in respect of matters referred to in subsection 197(1). Member approval (2) The directors shall submit the by-law, amendment or repeal to the members at the next meeting of members, and the members may, by ordinary resolution, confirm, reject or amend the by-law, amendment or repeal. Effective date (3) Subject to subsection (5), the by-law, amendment or repeal is effective from the date of the resolution of the directors. If the by-law, amendment or repeal is confirmed, or confirmed as amended, by the members it remains effective in the form in which it was confirmed. Ceasing to have effect (4) The by-law, amendment or repeal ceases to have effect if it is not submitted by the directors to the members as required under subsection (2) or if it is rejected by the members. Subsequent resolution (5) If a by-law, an amendment or a repeal ceases to have effect, a subsequent resolution of the directors that has substantially the same purpose or effect is not effective until it is confirmed, or confirmed as amended, by the members. Member proposal (6) A member entitled to vote at an annual meeting of members may, in accordance with section 163, make a proposal to make, amend or repeal a by-law. Copies to Director 153. A corporation shall, within the prescribed period, send to the Director a copy of any by-law, amendment or repealed by-law, except for those that have been rejected by the members. C. 23 Conditions of membership 154. (1) The by-laws shall set out the conditions required for being a member of the corporation, including whether a corporation or other entity may be a member. Classes of membership (2) If the articles provide for two or more classes or groups of members, the by-laws shall provide Canada Not-for-pr (a) the conditions for membership in each class or group; (b) the manner of withdrawing from a class or group or transferring membership to another class or group and any conditions of transfer; and (c) the conditions on which membership in a class or group ends. Voting rights — one class or group (3) The members of a corporation that has only one class or group of members have the right to vote at any meeting of the members. Voting rights — several classes or groups (4) If the articles provide for two or more classes or groups of members, the articles shall provide the members of at least one class or group with the right to vote at a meeting of members. Right to vote (5) Unless the articles otherwise provide, each member is entitled to one vote at a meeting of members. Representative (6) The corporation shall recognize any individual authorized by a member corporation or other entity to represent the member at meetings. Powers of representative (7) The individual may exercise on behalf of the member corporation or other entity all the powers of that corporation or entity. Transfer of membership (8) Unless the by-laws otherwise provide, a membership may be transferred only to the corporation. Issuance of memberships 155. The directors may issue memberships in accordance with the articles and any conditions set out in the by-laws. Termination of membership 156. Unless the articles or by-laws of a corporation otherwise provide, a membership is terminated when (a) the member dies or resigns; Organisations à (b) the member is expelled or their membership is otherwise terminated in accordance with the articles or by-laws; (c) the member’s term of membership expires; or (d) the corporation is liquidated and dissolved under Part 14. Termination of member’s rights 157. Unless the articles or by-laws otherwise provide, the rights of a member, including any rights in the property of the corporation, cease to exist on termination of the membership. Power to discipline a member 158. The articles or by-laws may provide that the directors, the members or any committee of directors or members of a corporation have power to discipline a member or to terminate their membership. If the articles or by-laws provide for such a power, they shall set out the circumstances and the manner in which that power may be exercised. Place of meetings 159. (1) Meetings of members of a corporation shall be held within Canada at the place provided in the by-laws or, in the absence of such a provision, at the place that the directors determine. Meeting outside Canada (2) Despite subsection (1), a meeting of members of a corporation may be held at a place outside Canada if the place is specified in the articles or all the members entitled to vote at the meeting agree that the meeting is to be held at that place. Exception (3) A member who attends a meeting of members held outside Canada is deemed to have agreed to it being held outside Canada except when the member attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully held. Participation in meeting by electronic means (4) Unless the by-laws otherwise provide, any person entitled to attend a meeting of members may participate in the meeting, in accordance with the regulations, if any, by means of a telephonic, an electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the corporation makes available such a communication facility. C. 23 Canada Not-for-pr A person so participating in a meeting is deemed for the purposes of this Act to be present at the meeting. Meeting held by electronic means (5) If the directors or members of a corporation call a meeting of members under this Act and if the by-laws so provide, those directors or members, as the case may be, may determine that the meeting shall be held, in accordance with the regulations, if any, entirely by means of a telephonic, an electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting. Calling annual meetings 160. (1) The directors of a corporation shall call an annual meeting of members (a) not later than the prescribed period after the corporation comes into existence; and (b) subsequently, not later than the prescribed period after holding the preceding annual meeting but no later than the prescribed period after the end of the corporation’s preceding financial year. Authorization to delay calling of annual meeting (2) On application of the corporation, the Director may authorize the corporation, on any terms that the Director thinks fit, to extend the time for calling an annual meeting if the Director reasonably believes that members will not be prejudiced. Calling special meetings (3) The directors of a corporation may at any time call a special meeting of members. Fixing record date 161. (1) The directors may fix, as a record date for any of the following purposes, a date that is within the period that is prescribed in relation to that purpose, namely, record dates for (a) determining members entitled to receive notice of a meeting of members; (b) determining members entitled to vote at a meeting of members; (c) determining members entitled to participate in a liquidation distribution; or (d) determining members for any other purpose. 2009 No record date fixed Organisations à (2) If no record date is fixed by the directors, (a) the record date for the determination of members entitled to receive notice of a meeting of members is (i) at the close of business on the day immediately preceding the day on which the notice is given, or (ii) if no notice is given, the day on which the meeting is held; (b) the record date for the determination of members entitled to vote at a meeting of members is (i) if a record date has been fixed under paragraph (1)(a), the day that is the prescribed period after that date, and (ii) otherwise, the date that is the record date under paragraph (a); and (c) the record date for the determination of members for any purpose other than to establish a member’s right to receive notice of a meeting or to vote shall be at the close of business on the day on which the directors pass the resolution relating to the record date. Notice provided for in by-laws 162. (1) The corporation shall give members entitled to vote at a meeting of members notice of the time and place of the meeting in accordance with the by-laws and the regulations. The provisions of the by-laws respecting the giving of notice shall comply with any prescribed requirements. Non-compliance of by-laws (2) If the provisions of the by-laws do not comply with the prescribed requirements, the corporation shall send, unless the regulations provide otherwise, the notice to the members within the prescribed period. Notice to public accountant and directors (3) The corporation shall send the public accountant and directors notice of the time and place of any meeting of members within the prescribed period. Waiver of notice (4) Any person who is entitled to notice of a meeting of members may waive notice, and attendance of the person at the meeting is a waiver of notice of the meeting, unless the person attends the meeting for the express C. 23 Canada Not-for-pr purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. Application for authorization (5) On application of the corporation, the Director may authorize the corporation, on any terms that the Director thinks fit, to give notice of the meeting to members in any manner if the Director reasonably believes that members will not be prejudiced. Exception — members not registered (6) The corporation is not required to give notice to members who were not registered on the records of the corporation on the record date determined under paragraph 161(1)(a) or subsection 161(2), but a member that is not given notice of the meeting is not deprived of the right to vote at that meeting. Adjournment (7) If a meeting of members is adjourned for less than the prescribed period, it is not necessary, unless the by-laws otherwise provide, that any person be notified of the adjourned meeting, other than by announcement at the earliest meeting that is adjourned. Notice of adjourned meeting (8) If a meeting of members is adjourned by one or more adjournments for an aggregate of days that is more than the prescribed period, notice of the adjournment shall be given to members entitled to vote at the meeting, the directors and the public accountant in the manner referred to in subsections (1) to (4). Business (9) All business transacted at a special meeting of members and all business transacted at an annual meeting of members, except consideration of the financial statements, public accountant’s report, election of directors and reappointment of the incumbent public accountant, is special business. Notice of business (10) Notice of a meeting of members at which special business is to be transacted shall (a) state the nature of that business in sufficient detail to permit a member to form a reasoned judgment on the business; and (b) state the text of any special resolution to be submitted to the meeting. Right to submit and discuss 163. (1) A member entitled to vote at an annual meeting of members may Organisations à (a) submit to the corporation notice of any matter that the member proposes to raise at the meeting, referred to in this section as a “proposal”; and (b) discuss at the meeting any matter with respect to which the member would have been entitled to submit a proposal. Proposal set out in notice (2) A corporation shall include the proposal in the notice of meeting required under section 162. Supporting statement (3) If so requested by the member who submits a proposal, the corporation shall include in the notice of meeting a statement in support of the proposal by the member and the name and address of the member. The statement and the proposal shall together not exceed the prescribed maximum number of words. Payment (4) The member who submitted the proposal shall pay any cost of including the proposal and any statement in the notice of the meeting at which the proposal is to be presented, unless it is otherwise provided in the by-laws or in an ordinary resolution of the members present at the meeting. Proposal nominating directors (5) A proposal may include nominations for the election of directors if the proposal is signed by not less than the prescribed percentage of the members of a class or group of members of the corporation entitled to vote at the meeting at which the proposal is to be presented or any lesser number of members as provided in the by-laws, but this subsection does not preclude nominations made at a meeting of members. Exception (6) A corporation is not required to comply with subsections (2) and (3) if (a) the proposal is not submitted to the corporation within the prescribed period; (b) it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal grievance against the corporation or its directors, officers, members or debt obligation holders; C. 23 Canada Not-for-pr (c) it clearly appears that the proposal does not relate in a significant way to the activities or affairs of the corporation; (d) not more than the prescribed period before the receipt of the proposal, the member failed to present — in person or, if authorized by the by-laws, by proxy — at a meeting of members, a proposal that at the member’s request had been included in a notice of meeting; (e) substantially the same proposal was submitted to members in a notice of a meeting of members held not more than the prescribed period before the receipt of the proposal and did not receive the prescribed minimum amount of support at the meeting; or (f) the rights conferred by this section are being abused to secure publicity. Immunity (7) No corporation or person acting on its behalf incurs any liability by reason only of complying with this section. Notice of refusal (8) If a corporation refuses to include a proposal in a notice of meeting, it shall, within the prescribed period after the day on which it receives the proposal, notify in writing the member submitting the proposal of its intention to omit it from the notice of meeting and of the reasons for the refusal. Member may apply to court (9) On the application of a member submitting a proposal who is aggrieved by the refusal, a court may restrain the holding of the meeting at which the proposal is sought to be presented and make any further order that it thinks fit. Corporation’s application to court (10) On the application of the corporation or any other person aggrieved by a proposal, a court may, if it is satisfied that subsection (6) applies, make an order permitting the corporation to omit the proposal from the notice of meeting and may make any further order that it thinks fit. Director entitled to notice (11) An applicant under subsection (9) or (10) shall give the Director notice of the application and the Director is entitled to appear and be heard in person or by counsel. Organisations à Quorum set in by-laws 164. (1) The by-laws may set out the quorum for a meeting of members, but the quorum set out shall be in conformity with any prescribed requirements. Quorum in any other case (2) If the by-laws do not set out such a quorum, the quorum is a majority of members entitled to vote at the meeting. Opening quorum sufficient (3) If a quorum is present at the opening of a meeting of members, the members present may, unless the by-laws otherwise provide, proceed with the business of the meeting, even if a quorum is not present throughout the meeting. Adjournment (4) If a quorum is not present at the opening of a meeting of members, the members present may adjourn the meeting to a fixed time and place but may not transact any other business. One member meeting (5) If a corporation has only one member, or only one member in any class or group of members, the member present in person or who submits a vote that meets the requirements of section 171 constitutes a meeting. Voting 165. (1) Subject to section 171 and the bylaws, voting at a meeting of members shall be by show of hands, except if a ballot is demanded by a member entitled to vote at the meeting. Ballot (2) A member may demand a ballot either before or after any vote by show of hands. Electronic voting (3) Despite subsection (1), unless the bylaws otherwise provide, any vote referred to in that subsection may be held, in accordance with the regulations, if any, entirely by means of a telephonic, an electronic or other communication facility, if the corporation makes available such a communication facility. Voting while participating electronically (4) Unless the by-laws otherwise provide, any person participating in a meeting of members under subsection 159(4) or (5) and entitled to vote at that meeting may vote, and that vote may be held, in accordance with the regulations, if any, by means of the telephonic, electronic or other communication facility that the corporation has made available for that purpose. C. 23 Resolution in lieu of meeting 166. (1) Except where a written statement is submitted by a director under subsection 131(1) or by a public accountant under subsection 187(4), Canada Not-for-pr (a) a resolution in writing signed by all the members entitled to vote on that resolution at a meeting of members is as valid as if it had been passed at a meeting of the members; and (b) a resolution in writing dealing with all matters required by this Act to be dealt with at a meeting of members, and signed by all the members entitled to vote at that meeting, satisfies all the requirements of this Act relating to meetings of members. Filing resolution (2) A copy of every resolution referred to in subsection (1) shall be kept with the minutes of the meetings of members. Evidence (3) Unless a ballot is demanded, an entry in the minutes of a meeting to the effect that the chairperson of the meeting declared a resolution to be carried or defeated is, in the absence of evidence to the contrary, proof of the fact without proof of the number or proportion of the votes recorded in favour of or against the resolution. Requisition of meeting 167. (1) The members of a corporation who hold the prescribed percentage of votes that may be cast at a meeting of members sought to be held, or a lower percentage that is set out in the by-laws, may requisition the directors to call the meeting for the purposes stated in the requisition. Form (2) The requisition referred to in subsection (1), which may consist of several documents of similar form each signed by one or more members, shall state the business to be transacted at the meeting and shall be sent to each director and to the registered office of the corporation. Directors calling meeting (3) On receiving the requisition referred to in subsection (1), the directors shall call a meeting of members to transact the business stated in the requisition, unless (a) a record date has been fixed under paragraph 161(1)(a); Organisations à (b) the directors have called a meeting of members and have given notice of the meeting under section 162; or (c) the business of the meeting as stated in the requisition includes matters described in paragraphs 163(6)(b) to (f). Member calling meeting (4) If the directors do not call a meeting within the prescribed period after receiving the requisition referred to in subsection (1), any member who signed the requisition may call the meeting. Procedure (5) A meeting called under this section shall be called as nearly as possible in the manner in which meetings are to be called under the bylaws and this Part. Reimbursement (6) Unless the members otherwise resolve at a meeting called under subsection (4), the corporation shall reimburse the members for the expenses reasonably incurred by them in requisitioning, calling and holding the meeting. Meeting called by court 168. (1) A court, on the application of a director, a member who is entitled to vote at a meeting of members or the Director, may order a meeting of a corporation to be called, held and conducted in the manner that the court directs, if (a) it is not practicable to call the meeting within the time or in the manner in which it is otherwise to be called; (b) it is not practicable to conduct the meeting in the manner required by this Act or the by-laws; or (c) the court thinks that the meeting should be called, held and conducted within the time or in the manner that it directs for any other reason. Varying quorum (2) Without restricting the generality of subsection (1), the court may order that the quorum required by the by-laws or this Act be varied or dispensed with at a meeting called, held and conducted under this section. Valid meeting (3) A meeting called, held and conducted under this section is for all purposes a meeting of members of the corporation duly called, held and conducted. C. 23 Court review of election 169. (1) A corporation or a member or director may apply to a court to determine any controversy with respect to an election or appointment of a director or public accountant of the corporation. Powers of court (2) On an application under this section, the court may make Canada Not-for-pr (a) an order restraining a director or public accountant whose election or appointment is challenged from acting pending determination of the dispute; (b) an order declaring the result of the disputed election or appointment; (c) an order requiring a new election or appointment, and including in the order directions for the management of the activities and affairs of the corporation until a new election is held or appointment made; (d) an order determining the voting rights of members and of persons claiming to hold memberships; and (e) any other order that it thinks fit. Unanimous member agreement 170. (1) An otherwise lawful written agreement among all the members of a corporation that is not a soliciting corporation, or among all the members and one or more persons who are not members, that restricts, in whole or in part, the powers of the directors to manage, or supervise the management of, the activities and affairs of the corporation is valid. Declaration by sole member (2) A written declaration of the sole member of a corporation that similarly restricts the directors’ powers is valid. Constructive party (3) A person who becomes a member of a corporation that is subject to a unanimous member agreement is deemed to be a party to the agreement. When no notice given (4) If notice is not given to a member of the existence of a unanimous member agreement, in the manner referred to in subsection 42(2) or otherwise, the member may, no later than the prescribed period after they become aware of the existence of the agreement, rescind the Organisations à transaction by which they acquired the membership and, within that period, the member is entitled to the return of any amount paid in respect of the membership. Rights of member (5) To the extent that a unanimous member agreement restricts the powers of the directors to manage, or supervise the management of, the activities and affairs of the corporation, parties to the agreement who are given that power to manage or supervise the management of the activities and affairs of the corporation have all the rights, powers, duties and liabilities of a director of the corporation, whether they arise under this Act or otherwise, including any defences available to the directors, and the directors are relieved of their rights, powers, duties and liabilities, including their liabilities under section 146, to the same extent. Discretion of members (6) Nothing in this section prevents members from fettering their discretion when exercising the powers of directors under a unanimous member agreement. No absentee voting (7) Members that are party to a unanimous member agreement may not vote in accordance with section 171 when exercising the authority delegated to them under the agreement. Termination (8) If the unanimous member agreement does not provide for its termination, the members may terminate the agreement by a special resolution. Absentee voting 171. (1) The by-laws of a corporation may provide for any prescribed methods of voting by members not in attendance at a meeting of members. If the by-laws so provide, they shall set out procedures for collecting, counting and reporting the results of any vote. Application for authorization (2) On application of the corporation, the Director may authorize the corporation, on any terms that the Director thinks fit, to permit members to vote by any method if the Director reasonably believes that the members and the corporation will not be prejudiced. C. 23 Canada Not-for-pr PART 11 FINANCIAL DISCLOSURE Annual financial statements 172. (1) The directors of a corporation shall place before the members at every annual meeting (a) prescribed comparative financial statements that conform to any prescribed requirements and relate separately to (i) the period that began on the date the corporation came into existence and ended not more than six months before the annual meeting or, if the corporation has completed a financial year, the period that began immediately after the end of the last completed financial year and ended not more than six months before the annual meeting, and (ii) the immediately preceding financial year; (b) the report of the public accountant, if any; and (c) any further information respecting the financial position of the corporation and the results of its operations required by the articles, the by-laws or any unanimous member agreement. Exception (2) Despite paragraph (1)(a), the financial statements referred to in subparagraph (1)(a)(ii) may be omitted if the reason for the omission is set out in the financial statements, or in a note to those statements, to be placed before the members at an annual meeting. Application for exemption 173. On the application of a corporation, the Director may exempt the corporation, on any terms that the Director thinks fit, from any requirement in this Part if the Director reasonably believes that the detriment that may be caused to the corporation by the requirement outweighs its benefit to the members or, in the case of a soliciting corporation, the public. Organisations à Consolidated statements 174. (1) A corporation shall keep at its registered office a copy of the financial statements of each of its subsidiaries and of each body corporate the accounts of which are consolidated in the financial statements of the corporation. Examination (2) Members of a corporation and their personal representatives may on request examine the statements referred to in subsection (1) during the corporation’s usual business hours and make copies or take extracts free of charge. Barring examination (3) On the application of a corporation made within the prescribed period after a request to examine under subsection (2), a court may, if it is satisfied that the examination would be detrimental to the corporation or a subsidiary, bar the right to examine and make any further order that it thinks fit. Notice to Director (4) A corporation shall give the Director and the person asking to examine under subsection (2) notice of an application under subsection (3), and the Director and the person may appear and be heard in person or by counsel. Copies to members 175. (1) A corporation, within the prescribed period, shall send a copy or summary of the documents referred to in subsection 172(1) or a copy of a publication of the corporation reproducing the information contained in the documents or summary to each member, other than a member who, in writing, declines to receive such documentation. A corporation that sends a summary to a member shall also inform that member of the procedure for obtaining a copy of the documents free of charge. Notice (2) A corporation, instead of sending the documentation referred to in subsection (1), may, if the by-laws so provide, give members notice in the manner referred to in section 162 that the documents referred to in subsection 172(1) are available at the registered office of the corporation and that any member may, on request, obtain a copy free of charge at the office or by prepaid mail. C. 23 Copies to Director 176. (1) A soliciting corporation shall send a copy of the documents referred to in subsection 172(1) to the Director Canada Not-for-pr (a) not less than the prescribed period before each annual meeting of members, or without delay after a resolution referred to in paragraph 166(1)(b) is signed; and (b) in any event within the prescribed period after the preceding annual meeting should have been held or a resolution in lieu of the meeting should have been signed, but no later than the prescribed period after the end of the corporation’s preceding financial year. Subsidiary corporation exception (2) A subsidiary corporation is not required to comply with this section if (a) the financial statements of its holding corporation are in consolidated or combined form and include the accounts of the subsidiary; and (b) the consolidated or combined financial statements of the holding corporation are included in the documents sent to the Director by the holding corporation in compliance with this section. Copies to Director 177. A corporation shall, at the request of the Director, furnish the Director with a copy of the documents referred to in subsection 172(1). Approval of financial statements 178. (1) The directors of a corporation shall approve the financial statements referred to in section 172 and the approval shall be evidenced by the manual signature of one or more directors or a facsimile of the signatures reproduced in the statements. Condition precedent (2) A corporation shall not issue, publish or circulate copies of the financial statements referred to in section 172 unless the financial statements are (a) approved and signed in accordance with subsection (1); and (b) accompanied by the report of the public accountant of the corporation, if any. Organisations à PART 12 PUBLIC ACCOUNTANT Definition of “designated corporation” 179. In this Part, “designated corporation” means (a) a soliciting corporation that has gross annual revenues for its last completed financial year that are equal to or less than the prescribed amount or that is deemed to have such revenues under paragraph 190(a); and (b) a non-soliciting corporation that has gross annual revenues for its last completed financial year that are equal to or less than the prescribed amount. Qualification of public accountant 180. (1) In order to be a public accountant of a corporation, a person shall (a) be a member in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province; (b) meet any qualifications under an enactment of a province for performing any duty that the person is required to perform under sections 188 to 191; and (c) subject to subsection (6), be independent of the corporation, its affiliates, or the directors or officers of the corporation or its affiliates. Independence (2) For the purposes of this section, (a) independence is a question of fact; and (b) a person is deemed not to be independent if that person or their business partner (i) is a business partner, a director, an officer or an employee of the corporation or any of its affiliates, or is a business partner of any director, officer or employee of the corporation or any of its affiliates, (ii) beneficially owns or controls, directly or indirectly, a material interest in the debt obligations of the corporation or any of its affiliates, or (iii) has been a receiver, receiver-manager, sequestrator, liquidator or trustee in bankruptcy of the corporation or any of its C. 23 Canada Not-for-pr affiliates within two years before the person’s proposed appointment as public accountant of the corporation. Business partners (3) For the purposes of subsection (2), a person’s business partner includes a shareholder or member of that person. Duty to resign (4) A public accountant who becomes disqualified under this section shall, subject to subsection (6), resign immediately after becoming aware of the disqualification. Disqualification order (5) On the application of an interested person, a court may make an order declaring a public accountant to be disqualified under this section and the office of public accountant to be vacant. Relieving order (6) On the application of an interested person, a court may, if it is satisfied that the order would not unfairly prejudice the members of the corporation, make an order on any terms that it thinks fit relieving a public accountant from meeting any requirement under subsection (1). The order may have retroactive effect. Appointment of public accountant 181. (1) Subject to section 182, members of a corporation shall, by ordinary resolution, at each annual meeting, appoint a public accountant to hold office until the close of the next annual meeting. Eligibility (2) A public accountant appointed under section 127 is eligible for appointment under subsection (1). Incumbent public accountant (3) If a public accountant is not appointed at a meeting of members and if no resolution is taken under section 182, the incumbent public accountant continues in office until a successor is appointed. Remuneration (4) The remuneration of a public accountant may be fixed by ordinary resolution of the members or, if not so fixed, shall be fixed by the directors. Organisations à Dispensing with public accountant 182. (1) Members of a designated corporation may resolve not to appoint a public accountant, but the resolution is not valid unless all the members entitled to vote at an annual meeting of members consent to the resolution. Validity of resolution (2) The resolution is valid until the following annual meeting of members. Ceasing to hold office 183. (1) A public accountant of a corporation ceases to hold office when the public accountant (a) dies or resigns; or (b) is removed under section 184. Effective date of resignation (2) A resignation of a public accountant becomes effective at the time a written resignation is sent to the corporation or at the time specified in the resignation, whichever is later. Removal of public accountant 184. (1) The members of a corporation may by ordinary resolution at a special meeting remove a public accountant from office, other than a public accountant appointed by a court under section 186. Vacancy (2) A vacancy created by the removal of a public accountant may be filled at the meeting at which the public accountant is removed or, if not so filled, may be filled under section 185. Filling vacancy 185. (1) Subject to subsection (3), the directors shall immediately fill a vacancy in the office of public accountant. Calling meeting (2) If there is not a quorum of directors, the directors then in office shall, within the prescribed period after a vacancy in the office of public accountant occurs, call a special meeting of members to fill the vacancy and, if they fail to call a meeting or if there are no directors, the meeting may be called by any member. Members filling vacancy (3) The articles of a corporation may provide that a vacancy in the office of public accountant shall only be filled by vote of the members. Unexpired term (4) A public accountant appointed to fill a vacancy holds office for the unexpired term of the public accountant’s predecessor. C. 23 Court-appointed public accountant 186. (1) If a corporation does not have a public accountant, a court may, on the application of a member or the Director, appoint and fix the remuneration of a public accountant, who holds office until a public accountant is appointed by the members. Exception (2) Subsection (1) does not apply if the members have resolved under section 182 not to appoint a public accountant. Right to attend meeting 187. (1) The public accountant is entitled to attend a meeting of members at the expense of the corporation and be heard on matters relating to the public accountant’s duties. Duty to attend and answer questions (2) If a director or member, whether or not the member is entitled to vote at the meeting, gives written notice not less than the prescribed period before a meeting of members to the public accountant or a former public accountant of the corporation, the public accountant or former public accountant shall attend the meeting at the expense of the corporation and answer questions relating to their duties. Notice to corporation (3) A director or member who sends the notice shall send a copy of the notice to the corporation at the same time. Statement of public accountant (4) A public accountant is entitled to submit to the corporation a written statement giving reasons for resigning or for opposing their removal or replacement if a meeting of directors or members is called at which any of those matters will be dealt with. Other statements (5) If a meeting is called to replace the public accountant, the corporation shall make a statement respecting the reasons for the replacement and the proposed replacement public accountant may make a statement respecting the reasons. Circulating statement (6) The corporation shall immediately give notice to the members of the statements referred to in subsections (4) and (5) in the manner referred to in section 162 and shall immediately send a copy of the statements to the Director. Replacing public accountant (7) No person shall accept an appointment or consent to be appointed as public accountant of a corporation to replace a public accountant who has resigned, been removed or whose term of office has expired or is about to expire until the Canada Not-for-pr Organisations à person has requested and received from that public accountant a written statement of the circumstances and the reasons, in that public accountant’s opinion, for their replacement. Exception (8) A person otherwise qualified may accept an appointment or consent to be appointed as a public accountant if, within the prescribed period after making the request, the person does not receive a reply. Effect of noncompliance (9) The appointment of a person who does not make the request is void. Review engagement — designated corporations 188. (1) Subject to subsection (2), the public accountant of a designated corporation shall conduct a review engagement in the prescribed manner. Audit engagement — designated corporations (2) The public accountant of a designated corporation shall conduct an audit engagement in the prescribed manner if the corporation’s members pass an ordinary resolution requiring an audit engagement. Validity of resolution (3) The resolution is valid only until the following annual meeting of members or for the period specified in the resolution. Audit engagement — other corporations 189. (1) Subject to subsection (2), the public accountant of a corporation that is not a designated corporation shall conduct an audit engagement in the prescribed manner. Review engagement — other corporations (2) The public accountant of a soliciting corporation that is not a designated corporation shall conduct a review engagement in the prescribed manner if (a) the corporation has gross annual revenues for its last completed financial year that are equal to or less than the prescribed amount or is deemed to have such revenues under paragraph 190(b); and (b) its members pass a special resolution requiring a review engagement. Validity of resolution (3) The resolution is valid only until the following annual meeting of members. Deemed revenues 190. On the application of a soliciting corporation, the Director may, on any terms that the Director thinks fit and if the Director is C. 23 Canada Not-for-pr satisfied that doing so would not be prejudicial to the public interest, deem the corporation to have (a) revenues referred to in paragraph 179(a); or (b) revenues referred to in paragraph 189(2)(a), if the corporation is not a designated corporation. Report on financial statements 191. After conducting an audit engagement or a review engagement, the public accountant shall report in the prescribed manner on the financial statements required by this Act to be placed before the members, except any financial statements or part of those statements that relate to the period referred to in subparagraph 172(1)(a)(ii). Reliance on other public accountant 192. (1) Despite section 193, a public accountant of a holding corporation may reasonably rely on the report of a public accountant of a body corporate or an unincorporated business the accounts of which are included in whole or in part in the financial statements of the corporation. Reasonableness (2) For the purpose of subsection (1), reasonableness is a question of fact. Application (3) Subsection (1) applies whether or not the financial statements of the holding corporation reported on by the public accountant are in consolidated form. Right to information 193. (1) At the request of a public accountant of a corporation, the present or former directors, officers, employees, agents or mandataries of the corporation shall furnish the following, if they are reasonably able to do so and if, in the opinion of the public accountant, it is necessary to enable the public accountant to conduct the review or audit engagement required under section 188 or 189 and to make the report required under section 191: (a) any information and explanations; and (b) access to records, documents, books, accounts and vouchers of the corporation or any of its subsidiaries. 2009 Directors to obtain and furnish information Organisations à (2) On the demand of the public accountant of a corporation, the directors of the corporation shall (a) obtain from the present or former directors, officers, employees, agents or mandataries of any subsidiary of the corporation the information and explanations that they are reasonably able to furnish and that are, in the opinion of the public accountant, necessary to enable the public accountant to conduct the review or audit engagement required under section 188 or 189 and to make the report required under section 191; and (b) furnish the public accountant with the information and explanations so obtained. No civil liability (3) A person who in good faith makes an oral or written communication under subsection (1) or (2) is not liable in any civil proceeding arising from having made the communication. Audit committee 194. (1) A corporation may have an audit committee and, if it does, the committee shall be composed of not less than three directors, a majority of whom are not officers or employees of the corporation or any of its affiliates. Duty of committee (2) The audit committee shall review the financial statements of the corporation before they are approved under section 178. Public accountant’s attendance (3) The corporation shall send the public accountant notice of the time and place of any meeting of the audit committee. The public accountant is entitled to attend the meeting at the expense of the corporation and be heard, and shall attend every meeting of the committee if requested to do so by one of its members. Calling meeting (4) The public accountant or a member of the audit committee may call a meeting of the committee. Notice of errors 195. (1) A director or an officer of a corporation shall immediately notify any audit committee and the public accountant of any error or misstatement of which the director or officer becomes aware in a financial statement that the public accountant or a former public accountant has reported on. C. 23 Directors to be informed (2) A public accountant or former public accountant of a corporation who is notified or becomes aware of an error or misstatement in a financial statement on which they have reported shall, if in their opinion the error or misstatement is material, inform each director accordingly. Duty of directors (3) When the public accountant or former public accountant informs the directors of an error or misstatement in a financial statement, Canada Not-for-pr (a) the directors shall prepare and issue revised financial statements or otherwise inform the members; and (b) the corporation shall send the Director a copy of the revised financial statements or a notice of the error or misstatement, if the corporation is one that is required to comply with section 176. Qualified privilege — defamation 196. Any oral or written statement or report made under this Act by the public accountant or former public accountant of a corporation has qualified privilege. PART 13 FUNDAMENTAL CHANGES Amendment of articles or bylaws 197. (1) A special resolution of the members — or, if section 199 applies, of each applicable class or group of members — is required to make any amendment to the articles or the bylaws of a corporation to (a) change the corporation’s name; (b) change the province in which the corporation’s registered office is situated; (c) add, change or remove any restriction on the activities that the corporation may carry on; (d) create a new class or group of members; (e) change a condition required for being a member; (f) change the designation of any class or group of members or add, change or remove any rights and conditions of any such class or group; Organisations à (g) divide any class or group of members into two or more classes or groups and fix the rights and conditions of each class or group; (h) add, change or remove a provision respecting the transfer of a membership; (i) subject to section 133, increase or decrease the number of — or the minimum or maximum number of — directors fixed by the articles; (j) change the statement of the purpose of the corporation; (k) change the statement concerning the distribution of property remaining on liquidation after the discharge of any liabilities of the corporation; (l) change the manner of giving notice to members entitled to vote at a meeting of members; (m) change the method of voting by members not in attendance at a meeting of members; or (n) add, change or remove any other provision that is permitted by this Act to be set out in the articles. Revocation (2) The directors of a corporation may, if authorized by the members in the special resolution effecting an amendment under this section, revoke the resolution before it is acted on without further approval of the members. Amendment of number name (3) Despite subsection (1), if a corporation has a designating number as a name, the directors may amend its articles to change that name to a verbal name. Proposal to amend 198. (1) Subject to subsection (2), a director, or a member who is entitled to vote at an annual meeting of members, may, in accordance with section 163, propose to make an amendment referred to in subsection 197(1). Notice of amendment (2) Notice of a meeting of members at which a proposal to make an amendment referred to in subsection 197(1) is to be considered shall set out the proposed amendment. C. 23 Class vote 199. (1) The members of a class or group of members are, unless the articles otherwise provide in the case of an amendment referred to in paragraphs (a) and (e), entitled to vote separately as a class or group on a proposal to make an amendment referred to in subsection 197(1) to Canada Not-for-pr (a) effect an exchange, reclassification or cancellation of all or part of the memberships of the class or group; (b) add, change or remove the rights or conditions attached to the memberships of the class or group, including (i) to reduce or remove a liquidation preference, or (ii) to add, remove or change prejudicially voting or transfer rights of the class or group; (c) increase the rights of any other class or group of members having rights equal or superior to those of the class or group; (d) increase the rights of a class or group of members having rights inferior to those of the class or group to make them equal or superior to those of the class or group; (e) create a new class or group of members having rights equal or superior to those of the class or group; or (f) effect an exchange or create a right of exchange of all or part of the memberships of another class or group into the memberships of the class or group. Right to vote (2) Subsection (1) applies whether or not memberships of a class or group otherwise carry the right to vote. Separate resolutions (3) A proposal to make an amendment referred to in subsection (1) is adopted when the members of each class or group entitled to vote separately on the amendment as a class or group have approved the amendment by a special resolution. Organisations à Delivery of articles 200. Subject to any revocation under subsection 197(2), after an amendment to the articles has been adopted under section 197 or 199, articles of amendment in the form that the Director fixes shall be sent to the Director. Certificate of amendment 201. On receipt of articles of amendment, the Director shall issue a certificate of amendment in accordance with section 276. Effect of certificate 202. (1) An amendment to the articles becomes effective on the date shown in the certificate of amendment and the articles are amended accordingly. Rights preserved (2) No amendment to the articles affects an existing cause of action or claim or liability to prosecution in favour of or against the corporation or its directors or officers, or any civil, criminal or administrative action or proceeding to which a corporation or its directors or officers is a party. Restated articles 203. (1) The directors may at any time, and shall when so directed by the Director, restate the articles of incorporation. Delivery of articles (2) Restated articles of incorporation in the form that the Director fixes shall be sent to the Director. Restated certificate (3) On receipt of restated articles of incorporation, the Director shall issue a restated certificate of incorporation in accordance with section 276. Effect of certificate (4) Restated articles of incorporation are effective on the date shown in the restated certificate of incorporation and supersede the original articles of incorporation and all amendments to those articles. Amalgamation 204. Two or more corporations may amalgamate and continue as one corporation. Amalgamation agreement 205. (1) Each corporation proposing to amalgamate shall enter into an agreement setting out the terms and means of effecting the amalgamation and, in particular, setting out (a) the provisions that are required to be included in articles of incorporation under section 7 or in the by-laws under section 154; (b) the name and address of each proposed director of the amalgamated corporation; C. 23 Canada Not-for-pr (c) the manner in which the memberships of each amalgamating corporation are to be converted into memberships of the amalgamated corporation; (d) whether the by-laws of the amalgamated corporation are to be those of one of the amalgamating corporations and, if not, a copy of the proposed by-laws; and (e) details of any arrangements necessary to perfect the amalgamation and to provide for the subsequent management and operation of the amalgamated corporation. Cancellation (2) If a membership in an amalgamating corporation is held by or on behalf of another amalgamating corporation, the amalgamation agreement shall provide for the cancellation, without any repayment of capital, of the membership when the amalgamation becomes effective. No provision shall be made in the agreement for the conversion of the membership into membership of the amalgamated corporation. Member approval 206. (1) The directors of each amalgamating corporation shall submit the amalgamation agreement for approval to a meeting of the members of the amalgamating corporation of which they are directors and, subject to subsection (4), to the members of each class or group of members. Notice of meeting (2) Each amalgamating corporation shall give notice of a meeting of members in accordance with section 162 to its members and shall include in the notice a copy or summary of the amalgamation agreement. Right to vote (3) Each membership in an amalgamating corporation carries the right to vote in respect of an amalgamation agreement whether or not it otherwise carries the right to vote. Class vote (4) The members of a class or group of members of each amalgamating corporation are entitled to vote separately as a class or group in respect of an amalgamation agreement if the amalgamation agreement contains a provision that, if contained in a proposed amendment to the articles, would entitle the members to vote as a class or group under section 199. Organisations à Member approval (5) Subject to subsection (4), an amalgamation agreement is adopted when the members of each amalgamating corporation have approved the amalgamation by special resolutions. Termination (6) An amalgamation agreement may provide that at any time before the issue of a certificate of amalgamation the agreement may be terminated by the directors of an amalgamating corporation, despite approval of the agreement by the members of all or any of the amalgamating corporations. Vertical shortform amalgamation 207. (1) A holding corporation and one or more of its subsidiary corporations may amalgamate and continue as one corporation without complying with sections 205 and 206 if (a) the amalgamation is approved by a resolution of the directors of each amalgamating corporation; (b) all memberships in each amalgamating subsidiary corporation are held by one or more of the other amalgamating corporations; and (c) the resolutions provide that (i) the memberships in each amalgamating subsidiary corporation shall be cancelled without any repayment of capital in respect of those memberships, and (ii) except as may be prescribed, the articles of amalgamation shall be the same as the articles of the amalgamating holding corporation. Horizontal shortform amalgamation (2) Two or more wholly-owned subsidiary corporations of the same holding body corporate may amalgamate and continue as one corporation without complying with sections 205 and 206 if (a) the amalgamation is approved by a resolution of the directors of each amalgamating corporation; and (b) the resolutions provide that C. 23 Canada Not-for-pr (i) the memberships in all but one of the amalgamating subsidiary corporations shall be cancelled without any repayment of capital in respect of those memberships, and (ii) except as may be prescribed, the articles of amalgamation shall be the same as the articles of the amalgamating subsidiary corporation whose memberships are not cancelled. Sending of articles 208. (1) Subject to subsection 206(6), after an amalgamation has been adopted under section 206 or approved under section 207, articles of amalgamation in the form that the Director fixes shall be sent to the Director together with the documents required by sections 20 and 128. Attached declarations (2) The articles of amalgamation shall have attached to them a statutory declaration of a director or an officer of each amalgamating corporation that establishes to the satisfaction of the Director that (a) there are reasonable grounds for believing that (i) each amalgamating corporation is, and the amalgamated corporation will be, able to pay its liabilities as they become due, and (ii) the realizable value of the amalgamated corporation’s assets will not be less than the aggregate of its liabilities; and (b) there are reasonable grounds for believing that (i) no creditor will be prejudiced by the amalgamation, or (ii) adequate notice has been given to all known creditors of the amalgamating corporations and no creditor objects to the amalgamation otherwise than on grounds that are frivolous or vexatious. Adequate notice (3) For the purposes of subsection (2), adequate notice is given if (a) a notice in writing is sent to each known creditor having a claim against the corporation that exceeds the prescribed amount; Organisations à (b) a notice is published once in a newspaper published or distributed in the place where the corporation has its registered office and reasonable notice is given in each province where the corporation carries on activities; and (c) each notice states that the corporation intends to amalgamate with one or more specified corporations in accordance with this Act and that a creditor of the corporation may object to the amalgamation within the prescribed period. Certificate of amalgamation (4) On receipt of articles of amalgamation, the Director shall issue a certificate of amalgamation in accordance with section 276. Rights preserved 209. On the date shown in a certificate of amalgamation, the amalgamation of the amalgamating corporations and their continuance as one corporation become effective and from that date (a) the property of each amalgamating corporation continues to be the property of the amalgamated corporation; (a.1) for the purposes of determining whether the amalgamated corporation is a soliciting corporation or whether paragraph 235(1)(c) applies to the amalgamated corporation, the income received prior to that date by any of the amalgamating corporations is deemed to have been received by the amalgamated corporation; (b) the amalgamated corporation continues to be liable for the obligations of each amalgamating corporation; (c) an existing cause of action, claim or liability to prosecution is unaffected; (d) a civil, criminal or administrative action or proceeding pending by or against an amalgamating corporation may be continued by or against the amalgamated corporation; (e) a conviction against, or ruling, order or judgment in favour of or against, an amalgamating corporation may be enforced by or against the amalgamated corporation; and C. 23 Canada Not-for-pr (f) the articles of amalgamation are deemed to be the articles of incorporation of the amalgamated corporation and the certificate of amalgamation is deemed to be the certificate of incorporation of the amalgamated corporation. Amalgamation under other federal Acts 210. (1) Subject to subsection (2), a corporation may not amalgamate with one or more bodies corporate under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act unless the corporation is first authorized to do so by the members in accordance with section 206. Short-form amalgamations (2) A corporation may not amalgamate with one or more bodies corporate under the provisions of one of the Acts referred to in subsection (1) respecting short-form amalgamations unless the corporation is first authorized to do so by the directors in accordance with section 207. Discontinuance (3) On receipt of a notice that a corporation has amalgamated under one of the Acts referred to in subsection (1), the Director shall issue a certificate of discontinuance in accordance with section 276 if the Director is of the opinion that the corporation has been amalgamated in accordance with this section. Notice deemed to be articles (4) For the purposes of section 276, a notice referred to in subsection (3) is deemed to be articles that are in the form that the Director fixes. Act ceases to apply (5) This Act ceases to apply to the corporation on the date shown in the certificate of discontinuance. Non-application (6) For greater certainty, section 208 does not apply to a corporation that amalgamates under one of the Acts referred to in subsection (1). Continuance — import 211. (1) A body corporate incorporated or continued otherwise than by or under an Act of Parliament may apply to the Director for a certificate of continuance if so authorized by the laws of its jurisdiction and if the body corporate Organisations à satisfies, or by its articles of continuance would satisfy, the requirements for incorporation under this Act. Amendments in articles of continuance (2) A body corporate that applies for a certificate under subsection (1) may, without so stating in its articles of continuance, effect by those articles any amendment to its act of incorporation, articles, letters patent or memorandum or articles of association that a corporation incorporated under this Act may make to its articles. Share capital (3) If the body corporate is a body corporate with share capital, it shall establish the terms and conditions on which it is converted to a body corporate without share capital. Articles of continuance (4) If a body corporate wishes to apply for a certificate under subsection (1), articles of continuance in the form that the Director fixes shall be sent to the Director together with the documents required by sections 20 and 128. Certificate of continuance (5) On receipt of articles of continuance, the Director shall issue a certificate of continuance in accordance with section 276. Effect of certificate (6) From the date shown in the certificate of continuance (a) the body corporate becomes a corporation to which this Act applies as if it had been incorporated under this Act; (b) the articles of continuance are deemed to be the articles of incorporation of the continued corporation; (c) the certificate of continuance is deemed to be the certificate of incorporation of the continued corporation; and (d) any shareholders or members cease to be shareholders or members of the body corporate and become members of the continued corporation. Copy of certificate (7) The Director shall immediately send a copy of the certificate of continuance to the appropriate official or public body in the jurisdiction in which continuance under this Act was authorized. C. 23 Rights preserved (8) From the date of continuance of a body corporate as a corporation under this Act, Canada Not-for-pr (a) the property of the body corporate continues to be the property of the corporation; (b) the corporation continues to be liable for the obligations of the body corporate; (c) an existing cause of action, claim or liability to prosecution is unaffected; (d) any civil, criminal or administrative action or proceeding pending by or against the body corporate may be continued by or against the corporation; and (e) any conviction against, or ruling, order or judgment in favour of or against, the body corporate may be enforced by or against the corporation. Deemed compliance Definition of “charter” (9) A membership in a body corporate issued before the body corporate was continued under this Act is deemed to have been issued in compliance with this Act and the articles of continuance. 212. (1) In this section, “charter” includes (a) the text of an Act of incorporation and of any amendments to that Act; (b) any letters patent, supplementary letters patent, certificate of incorporation and certificate of amendment; and (c) in the case of a body corporate incorporated under the Pension Fund Societies Act, the text of that Act and the by-laws of the body corporate. Amendment of charter (2) In connection with a continuance under this Act, the shareholders or members of a body corporate incorporated or continued by or under a special Act of Parliament who are entitled to vote at annual meetings of shareholders or members may, despite the charter of the body corporate, (a) by special resolution, authorize the directors of the body corporate to apply under section 211 for a certificate of continuance; and Organisations à (b) by the same resolution, make any amendment to the charter of the body corporate that a corporation incorporated under this Act may make to its articles. Amendment of charter — other bodies corporate (3) In connection with a continuance under this Act, the shareholders or members of a body corporate incorporated or continued by or under an Act of Parliament, other than this Act or a special Act, who are entitled to vote at annual meetings of shareholders or members may, subject to any other Act of Parliament or the charter of the body corporate, (a) by special resolution, authorize the directors of the body corporate to apply under section 211 for a certificate of continuance; and (b) by the same resolution, make any amendment to the charter of the body corporate that a corporation incorporated under this Act may make to its articles. Change of class or group rights (4) Despite subsections (2) and (3), the members of a body corporate may not, by a special resolution under either of those subsections, make any amendment of the nature referred to in subsection 199(1) that affects a class or group of members, unless (a) the charter of the body corporate otherwise provides in respect of an amendment of the nature referred to in paragraph 199(1)(a) or (e); or (b) the members of the class or group approve the amendment in accordance with section 199. Change of class or series rights (5) Despite subsections (2) and (3), the shareholders of a body corporate with shares may not, by a special resolution under either of those subsections, make any amendment affecting a class or series of shares unless the shareholders of the class or series approve the amendment in accordance with section 199. C. 23 Authorizing continuance (6) Subject to subsection (9), the directors of a body corporate incorporated or continued by or under a special Act of Parliament may, despite the charter of the body corporate, apply under section 211 for a certificate of continuance if the articles of continuance do not make any amendment to the charter of the body corporate other than an amendment required to conform to this Act. Authorizing continuance — other bodies corporate (7) Subject to subsection (9), the directors of a body corporate incorporated or continued by or under an Act of Parliament, other than this Act or a special Act, may, subject to any other Act of Parliament or the charter of the body corporate, apply under section 211 for a certificate of continuance if the articles of continuance do not make any amendment to the charter of the body corporate other than an amendment required to conform to this Act. Financial institutions (8) For the purposes of this section, every body corporate that is incorporated or continued by or under an Act of Parliament and to which the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act applies is deemed to be incorporated or continued by or under an Act of Parliament other than this Act or a special Act. Discretionary continuance (9) The Governor in Council may, by order, require a body corporate without share capital incorporated by or under an Act of Parliament other than this Act to apply for a certificate of continuance under section 211 within any period that may be prescribed except for the following: Canada Not-for-pr (a) a bank; (b) an association to which the Cooperative Credit Associations Act applies; (c) a company or society to which the Insurance Companies Act applies; and (d) a company to which the Trust and Loan Companies Act applies. Fees (10) A body corporate that obtains a certificate of continuance under this section is not required to pay any fees in respect of the continuance. Organisations à Special Act no longer applicable (11) On the continuance of a body corporate without share capital incorporated by a special Act of Parliament as a corporation under this Act, the special Act ceases to apply to the corporation. Dissolution (12) A body corporate referred to in subsection (9) that does not make an application to obtain a certificate of continuance within the period prescribed is dissolved on the expiry of that period. Continuance — other jurisdictions 213. (1) Subject to subsection (10), a corporation may apply to the appropriate official or public body of another jurisdiction requesting that the corporation be continued as if it had been incorporated under the laws of that other jurisdiction if the corporation (a) is authorized by the members in accordance with subsections (3) to (5) to make the application; and (b) establishes to the satisfaction of the Director that its proposed continuance in the other jurisdiction will not adversely affect creditors or members of the corporation. Continuance — other federal Acts (2) A corporation that is authorized by the members in accordance with subsections (3) to (5) may apply to the appropriate Minister or the Director for its continuance under the Bank Act, the Canada Cooperatives Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act. Notice of meeting (3) The corporation shall give members notice of a meeting of members in accordance with section 162. Right to vote (4) Each membership in the corporation carries the right to vote in respect of a continuance whether or not it otherwise carries the right to vote. Member approval (5) An application for continuance is authorized when the members have approved of the continuance by a special resolution. C. 23 Termination (6) The directors of a corporation may, if authorized by the members at the time of approving an application for continuance, abandon the application without further approval of the members. Discontinuance (7) On receipt of a notice that the corporation has been continued under the laws of another jurisdiction or an Act referred to in subsection (2), the Director shall issue a certificate of discontinuance in accordance with section 276 if the Director is of the opinion that the corporation has been continued in accordance with this section. Notice deemed to be articles (8) For the purposes of section 276, a notice referred to in subsection (7) is deemed to be articles that are in the form that the Director fixes. Act ceases to apply (9) This Act ceases to apply to the corporation on the date shown in the certificate of discontinuance. Prohibition (10) A corporation shall not be continued as a body corporate under the laws of another jurisdiction unless those laws provide in effect that Canada Not-for-pr (a) the property of the corporation continues to be the property of the body corporate; (b) the body corporate continues to be liable for the obligations of the corporation; (c) an existing cause of action, claim or liability to prosecution is unaffected; (d) any civil, criminal or administrative action or proceeding pending by or against the corporation may be continued by or against the body corporate; and (e) any conviction against, or ruling, order or judgment in favour of or against, the corporation may be enforced by or against the body corporate. Extraordinary sale, lease or exchange 214. (1) A sale, a lease or an exchange of all or substantially all of the property of a corporation other than in the ordinary course of its activities requires the authorization of the members in accordance with subsections (2) to (6). Organisations à Notice of meeting (2) The corporation shall give members notice of a meeting of members in accordance with section 162 and shall include a copy or summary of the proposed agreement of sale, lease or exchange. Member approval (3) At the meeting of members, the members may authorize the sale, lease or exchange and may fix, or authorize the directors to fix, any of the terms and conditions of the sale, lease or exchange. Right to vote (4) Each membership in the corporation carries the right to vote in respect of the sale, lease or exchange whether or not it otherwise carries the right to vote. Class vote (5) The members of a class or group of members are entitled to vote separately as a class or group in respect of the sale, lease or exchange only if the class or group is affected by the sale, lease or exchange in a manner different from the members of another class or group. Member approval (6) The sale, lease or exchange is authorized when the members of each class or group entitled to vote on it have approved it by a special resolution. Abandonment (7) The directors of a corporation may, if authorized by the members approving a proposed sale, lease or exchange, and subject to the rights of third parties, abandon the sale, lease or exchange without further approval of the members. Definition of “reorganization” 215. (1) In this section, “reorganization” means a reorganization pursuant to (a) a court order made under section 253; (b) a court order made under the Bankruptcy and Insolvency Act approving a proposal; or (c) a court order made under any other Act of Parliament that affects the rights among a corporation and its members and creditors. Powers of court (2) If a corporation is subject to an order referred to in subsection (1), the order may also require any amendment of the articles or bylaws to effect any change that might be made under section 197. C. 23 Further powers (3) If a court makes an order referred to in subsection (1), the court may also Canada Not-for-pr (a) authorize the issue of debt obligations of the corporation and fix their terms; and (b) appoint directors in place of or in addition to all or any of the directors then in office. Articles of reorganization (4) After an order referred to in subsection (1) has been made, articles of reorganization in the form that the Director fixes shall be sent to the Director together with the documents required by section 20 and subsection 134(1), if applicable. Certificate of amendment (5) On receipt of articles of reorganization, the Director shall issue a certificate of amendment in accordance with section 276. Effect of certificate (6) A reorganization becomes effective on the date shown in the certificate of amendment and the articles are amended accordingly. Definition of “arrangement” 216. (1) In this section, “arrangement” includes (a) an amendment to the articles of a corporation; (b) an amalgamation of two or more corporations; (c) an amalgamation of a body corporate with a corporation that results in an amalgamated corporation subject to this Act; (d) a division of the activities carried on by a corporation; (e) a transfer of all or substantially all of the property of a corporation to another body corporate in exchange for money or other property, shares, memberships or debt obligations of the body corporate; (f) an exchange of debt obligations or memberships of a corporation for money or other property or other memberships or debt obligations of the corporation or money or other property, shares, memberships or debt obligations of another body corporate; (g) a liquidation and dissolution of a corporation; and Organisations à (h) any combination of operations referred to in paragraphs (a) to (g). Application to court for approval of arrangement (2) If it is not practicable for a corporation to effect a fundamental change in the nature of an arrangement under any other provision of this Act, the corporation may apply to a court for an order approving an arrangement proposed by the corporation. Powers of court (3) On an application under this section, the court may make any interim or final order that it thinks fit, including (a) an order determining the notice to be given to any interested person or dispensing with notice to any person other than the Director; (b) an order appointing counsel, at the expense of the corporation, to represent the interests of the members; (c) an order requiring a corporation to call, hold and conduct a meeting of members or holders of debt obligations issued by the corporation in any manner that the court directs; and (d) an order approving an arrangement as proposed by the corporation or as amended in any manner that the court directs. Notice to Director (4) An applicant for any interim or final order under this section shall give the Director notice of the application and the Director is entitled to appear and be heard in person or by counsel. Articles of arrangement (5) After an order referred to in paragraph (3)(d) has been made, articles of arrangement in the form that the Director fixes shall be sent to the Director together with the documents required by section 20 and subsection 134(1), if applicable. Certificate of arrangement (6) On receipt of articles of arrangement, the Director shall issue a certificate of arrangement in accordance with section 276. Effect of certificate (7) An arrangement becomes effective on the date shown in the certificate of arrangement. C. 23 Canada Not-for-pr PART 14 LIQUIDATION AND DISSOLUTION Definition of “court” 217. In this Part, “court”, in relation to a corporation, means a court having jurisdiction in the place where the corporation has its registered office. Application of Part 218. (1) This Part does not apply to a corporation for which there is a trustee in bankruptcy, a trustee under a proposal or an interim receiver under the Bankruptcy and Insolvency Act, or a receiver acting under a provincial law, until the end of the prescribed period after (a) the trustee or interim receiver has been discharged; or (b) the receiver has provided to the Superintendent of Bankruptcy the final report and statement of accounts required by subsection 246(3) of the Bankruptcy and Insolvency Act. Staying proceedings (2) Any proceedings under this Part to dissolve or to liquidate and dissolve a corporation that are pending when a trustee, interim receiver or receiver referred to in subsection (1) becomes entitled to act with respect to the corporation are stayed until the end of the prescribed period after (a) the trustee or interim receiver has been discharged; or (b) the receiver has provided to the Superintendent of Bankruptcy the final report and statement of accounts required by subsection 246(3) of the Bankruptcy and Insolvency Act. Revival 219. (1) If a corporation or other body corporate is dissolved under this Part, or if a body corporate created or continued under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970 — or that is subject to Part III of that Act — is dissolved under that Act, any interested person may apply to the Director to have the dissolved corporation or other body corporate revived as a corporation under this Act. Articles of revival (2) Articles of revival in the form that the Director fixes shall be sent to the Director. 2009 Certificate of revival Organisations à (3) On receipt of articles of revival, the Director shall issue a certificate of revival in accordance with section 276, if (a) the dissolved corporation or body corporate has fulfilled all conditions precedent that the Director considers reasonable; and (b) there is no valid reason for refusing to issue the certificate. Date of revival (4) A dissolved corporation or other body corporate is revived as a corporation under this Act on the date shown on the certificate of revival. Special Act no longer applicable (5) On the revival of a body corporate without share capital incorporated by a special Act of Parliament as a corporation under this Act, the special Act ceases to apply to the corporation. Rights preserved (6) Subject to any reasonable terms that may be imposed by the Director, to the rights acquired by any person after its dissolution and to any changes to the internal affairs of the corporation or body corporate after its dissolution, the revived corporation is, in the same manner and to the same extent as if it had not been dissolved, (a) restored to its previous position in law, including the restoration of any rights and privileges whether arising before its dissolution or after its dissolution but before its revival; and (b) liable for the obligations that it would have had if it had not been dissolved, whether they arise before its dissolution or after its dissolution but before its revival. Legal actions (7) Any legal action respecting the affairs of a revived corporation taken between the time of its dissolution and its revival is valid and effective. Definition of “interested person” (8) In this section, “interested person” includes (a) a member, a director, an officer, an employee and a creditor of a dissolved corporation or body corporate; C. 23 Canada Not-for-pr (b) a person who has a contract — other than, in Quebec, a contract by gratuitous title — with the dissolved corporation or body corporate; (c) a person who, although at the time of dissolution of the corporation or body corporate was not a person described in paragraph (a), would be such a person if a certificate of revival were issued under this section; and (d) a trustee in bankruptcy or a liquidator for the dissolved corporation or body corporate. Dissolution before commencing activities 220. (1) A corporation that has not issued any memberships may be dissolved at any time by resolution of all the directors. Dissolution if no property (2) A corporation that has no property and no liabilities may be dissolved by special resolution of the members or, if it has more than one class or group of members, by special resolution of each class or group whether or not the members are otherwise entitled to vote. Dissolution where property disposed of (3) A corporation that has property or liabilities or both may be dissolved by special resolution of the members or, if it has more than one class or group of members, by special resolution of each class or group whether or not the members are otherwise entitled to vote, if (a) by the special resolution or resolutions the members authorize the directors to cause the corporation to distribute any money or other property in accordance with sections 234 to 236 and discharge any liabilities; and (b) the corporation has distributed any money or other property and discharged any liabilities before it sends articles of dissolution to the Director under subsection (4). Articles of dissolution (4) Articles of dissolution in the form that the Director fixes shall be sent to the Director. Certificate of dissolution (5) On receipt of articles of dissolution, the Director shall issue a certificate of dissolution in accordance with section 276. Effect of certificate (6) The corporation ceases to exist on the date shown in the certificate of dissolution. Organisations à Proposing liquidation and dissolution 221. (1) The directors may propose the voluntary liquidation and dissolution of a corporation, or a member who is entitled to vote at an annual meeting of members may make such a proposal in accordance with section 163. Notice of meeting (2) Notice of any meeting of members at which voluntary liquidation and dissolution is to be proposed shall set out the terms of the proposal. Members’ resolution (3) A corporation may liquidate and dissolve by special resolution of the members or, if the corporation has more than one class or group of members, by special resolution of each class or group whether or not the members are otherwise entitled to vote. Statement of intent to dissolve (4) A statement of intent to dissolve in the form that the Director fixes shall be sent to the Director. Certificate of intent to dissolve (5) On receipt of a statement of intent to dissolve, the Director shall issue a certificate of intent to dissolve in accordance with section 276. Effect of certificate (6) On the issuance of a certificate of intent to dissolve, the corporation shall cease to carry on its activities except to the extent necessary for the liquidation, but its corporate existence continues until the Director issues a certificate of dissolution. Liquidation (7) After the issuance of a certificate of intent to dissolve, the corporation shall (a) immediately cause notice of the certificate to be sent to each known creditor of the corporation; (b) without delay take reasonable steps to give notice of it in each province in Canada where the corporation was carrying on activities at the time it sent the statement of intent to dissolve to the Director; (c) do all acts required to liquidate its property — including collecting its property, transferring property referred to in section 234 and converting any property not to be transferred or distributed in kind into money — and discharge all its liabilities; and C. 23 Canada Not-for-pr (d) after giving the notice required under paragraphs (a) and (b) and adequately providing for the discharge of all of its liabilities, distribute its remaining property, either in money or in kind, in accordance with sections 235 and 236. Supervision by court (8) On the application of the Director or any interested person made at any time during the liquidation of a corporation, a court may order that the liquidation be continued under the supervision of the court as provided in this Part and make any further order that it thinks fit. Notice to Director (9) An interested person who makes an application under this section shall give the Director notice of the application, and the Director is entitled to appear and be heard in person or by counsel. Revocation (10) At any time after the issue of a certificate of intent to dissolve and before the issue of a certificate of dissolution, a certificate of intent to dissolve may be revoked by sending to the Director a statement of revocation of intent to dissolve in the form that the Director fixes, if the revocation is approved in the same manner as the resolution under subsection (3). Certificate of revocation of intent to dissolve (11) On receipt of a statement of revocation of intent to dissolve, the Director shall issue a certificate of revocation of intent to dissolve in accordance with section 276. Effect of certificate (12) On the date shown in the certificate of revocation of intent to dissolve, the revocation is effective and the corporation may continue to carry on its activities. Right to dissolve (13) If a certificate of intent to dissolve has not been revoked and the corporation has complied with subsection (7), the corporation shall prepare articles of dissolution. Articles of dissolution (14) Articles of dissolution in the form that the Director fixes shall be sent to the Director. Certificate of dissolution (15) On receipt of articles of dissolution, the Director shall issue a certificate of dissolution in accordance with section 276. Effect of certificate (16) The corporation ceases to exist on the date shown in the certificate of dissolution. 2009 Dissolution by Director Organisations à 222. (1) Subject to subsections (2) and (3), the Director may (a) dissolve a corporation by issuing a certificate of dissolution under this section if the corporation (i) has not commenced its activities within the prescribed period after the date shown in its certificate of incorporation, (ii) has not carried on its activities for the prescribed period, (iii) is in default for a prescribed period in sending to the Director any fee, notice or other document required by this Act, or (iv) does not have any directors or is in the situation described in subsection 130(4); or (b) apply to a court for an order dissolving the corporation, in which case section 227 applies. Publication (2) The Director shall not dissolve a corporation under this section until the Director has (a) given notice of the decision to dissolve the corporation to the corporation and to each director; and (b) published notice of that decision in a publication generally available to the public. Certificate of dissolution (3) Unless cause to the contrary has been shown or an order has been made by a court under section 258, the Director may, after the expiry of the prescribed period, issue a certificate of dissolution. Exception — non-payment of incorporation fee (4) Despite anything in this section, the Director may dissolve a corporation by issuing a certificate of dissolution if the required fee for the issuance of a certificate of incorporation has not been paid. Effect of certificate (5) The corporation ceases to exist on the date shown in the certificate of dissolution. Grounds for dissolution 223. (1) The Director or any interested person may apply to a court for an order dissolving a corporation if the corporation has C. 23 Canada Not-for-pr (a) failed for the prescribed period to comply with the requirements of this Act with respect to the holding of annual meetings of members; (b) contravened subsection 17(2) or section 22, 23, 174 or 175; or (c) procured any certificate under this Act by misrepresentation. Notice to Director (2) An interested person who makes an application under this section shall give the Director notice of the application, and the Director is entitled to appear and be heard in person or by counsel. Dissolution order (3) On an application under this section or section 222, the court may order that the corporation be dissolved or that the corporation be liquidated and dissolved under the supervision of the court and may make any other order that it thinks fit. Certificate (4) On receipt of an order under this section or section 222 or 224, the Director shall (a) if the order is to dissolve the corporation, issue a certificate of dissolution; or (b) if the order is to liquidate and dissolve the corporation under the supervision of the court, issue a certificate of intent to dissolve and publish notice of the order in a publication generally available to the public. Effect of certificate (5) The corporation ceases to exist on the date shown in the certificate of dissolution. Further grounds 224. (1) On the application of a member, a court may order the liquidation and dissolution of a corporation or any of its affiliated corporations (a) if the court is satisfied that in respect of the corporation or any of its affiliates, any of the following is oppressive or unfairly prejudicial to, or unfairly disregards the interests of, any shareholder, creditor, director, officer or member, or causes such a result: (i) any act or omission of the corporation or any of its affiliates, Organisations à (ii) the conduct of the activities or affairs of the corporation or any of its affiliates, or (iii) the exercise of the powers of the directors of the corporation or any of its affiliates; or (b) if the court is satisfied that (i) a unanimous member agreement entitles a complaining member to demand dissolution of the corporation after the occurrence of a specified event and that event has occurred, or (ii) it is just and equitable that the corporation should be liquidated and dissolved. Faith-based defence (2) The court may not make an order under paragraph (1)(a) if the court is satisfied that (a) the corporation is a religious corporation; (b) the act or omission, the conduct or the exercise of powers is based on a tenet of faith held by the members of the corporation; and (c) it was reasonable to base the act or omission, the conduct or the exercise of powers on the tenet of faith, having regard to the activities of the corporation. Alternative order (3) On an application under this section, the court may make any order under this section or section 253 that it thinks fit. Application of s. 254 (4) Section 254 applies to an application under this section. Application for supervision 225. (1) An application to a court to supervise a voluntary liquidation and dissolution under subsection 221(8) shall state the reasons, verified by an affidavit of the applicant, why the court should supervise the liquidation and dissolution. Court supervision (2) If a court makes an order applied for under subsection 221(8), the liquidation and dissolution of the corporation shall continue under the supervision of the court in accordance with this Act. C. 23 Application to court 226. (1) An application to a court under subsection 224(1) shall state the reasons, verified by an affidavit of the applicant, why the corporation should be liquidated and dissolved. Show cause order (2) On the application, the court may make an order requiring the corporation and any interested person to show cause, at a time and place specified in the order, within the prescribed period after the date of the order, why the corporation should not be liquidated and dissolved. Powers of court (3) On the application, the court may order the directors and officers of the corporation to furnish the court with all material information known to or reasonably ascertainable by them, including Canada Not-for-pr (a) financial statements of the corporation; (b) the name and address of each member of the corporation; and (c) the name and address of each known creditor or claimant, including any creditor or claimant with unliquidated, future or contingent claims, and any person with whom the corporation has a contract. Publication (4) A copy of an order made under subsection (2) shall be (a) published as directed in the order, at a prescribed minimum frequency, before the time appointed for the hearing, in a newspaper published or distributed in the place where the corporation has its registered office; and (b) served on the Director and each person named in the order. Person responsible (5) Publication and service of an order under this section shall be effected by the corporation or by any other person, and in any manner, that the court orders. Powers of court 227. In connection with the dissolution or the liquidation and dissolution of a corporation, the court may, if it is satisfied that the corporation is able to pay or adequately provide for the discharge of all its liabilities, make (a) an order to liquidate; Organisations à (b) an order appointing or replacing a liquidator, with or without security, and fixing the remuneration of the liquidator or their replacement; (c) an order appointing or replacing inspectors or referees and specifying the powers and fixing the remuneration of the inspectors or referees or their replacements; (d) an order determining the notice to be given to any interested person, or dispensing with notice to any person; (e) an order determining the validity of any claims made against the corporation; (f) an order, at any stage of the proceedings, restraining the directors and officers (i) from exercising any of their powers, or (ii) from collecting or receiving any debt or other property of the corporation and from paying out or transferring any property of the corporation, except as permitted by the court; (g) an order determining and enforcing (i) the duty of any present or former director, officer or member to the corporation, or (ii) the liability of such a person for an obligation of the corporation; (h) an order approving the payment, satisfaction or compromise or, in Quebec, transaction of claims against the corporation and the retention of assets for that purpose, and determining the adequacy of provisions for the payment or discharge of liabilities of the corporation, whether liquidated, unliquidated, future or contingent; (i) an order determining the use of documents and records of the corporation or directing their disposition, including by destruction; (j) on the application of a creditor, the inspectors or the liquidator, an order giving directions on any matter arising in the liquidation; (k) an order specifying to whom the assets of the corporation will be distributed; C. 23 Canada Not-for-pr (l) after notice has been given to all interested parties, an order relieving a liquidator from any omission or default on any terms that the court thinks fit and confirming any act of the liquidator; (m) subject to sections 233 to 236, an order approving any proposed interim or final distribution of money or other property; (n) an order disposing of any property belonging to creditors or members who cannot be found; (o) on the application of any director, officer, member or creditor or the liquidator, (i) an order staying the liquidation on any terms and conditions that the court thinks fit, (ii) an order continuing or discontinuing the liquidation proceedings, or (iii) an order to the liquidator to restore to the corporation all its remaining property; (p) after the liquidator has rendered a final account to the court, an order dissolving the corporation; and (q) any other order that it thinks fit. Effect of order 228. The liquidation of a corporation commences when a court makes a liquidation order. Cessation of activities and powers 229. (1) If a court makes an order for the liquidation of a corporation, (a) the corporation continues in existence but shall cease to carry on activities, except activities that are, in the opinion of the liquidator, required for an orderly liquidation; and (b) the powers of the directors and members cease and vest in the liquidator, except as specifically authorized by the court. Delegation by liquidator (2) The liquidator may delegate any powers vested in the liquidator by paragraph (1)(b) to the directors or members. Organisations à Appointment of liquidator 230. (1) When making an order for the liquidation of a corporation or at any time after making the order, the court may appoint any person, including a director, an officer or a member of the corporation or any other body corporate, as liquidator of the corporation. Vacancy (2) If an order for the liquidation of a corporation has been made and the office of liquidator is or becomes vacant, the property of the corporation is under the control of the court until the office of liquidator is filled. Duties of liquidator 231. A liquidator shall (a) immediately after appointment give notice of the appointment to the Director and to each claimant and creditor known to the liquidator; (b) in each province where the corporation carries on activities, provide, without delay, notice in accordance with the regulations of the appointment (i) requiring any person indebted to the corporation to render an account and pay to the liquidator at the time and place specified any amount owing, (ii) requiring any person possessing property of the corporation to deliver it to the liquidator at the time and place specified, and (iii) requiring any person having a claim against the corporation, whether liquidated, unliquidated, future or contingent, to present particulars of the claim in writing to the liquidator within the prescribed period; (c) take into custody and control the property of the corporation; (d) open and maintain a trust account for the money of the corporation; (e) keep accounts of the money of the corporation received and paid out by the liquidator; (f) maintain separate lists of the members, creditors and other persons having claims against the corporation; C. 23 Canada Not-for-pr (g) if at any time the liquidator determines that the corporation is unable to pay or adequately provide for the discharge of its liabilities, apply to the court for directions; (h) deliver to the court and to the Director, at least once in the prescribed period after appointment or more often as the court may require, financial statements of the corporation in the form required by section 172 or in any other form that the liquidator may think proper or as the court may require; and (i) after the final accounts are approved by the court, distribute any remaining property of the corporation in accordance with sections 234 to 236. Powers of liquidator 232. (1) A liquidator may (a) retain legal counsel, accountants, engineers, appraisers and other professional advisers; (b) bring, defend or take part in any civil, criminal or administrative action or proceeding on behalf of the corporation; (c) carry on the activities of the corporation as required for an orderly liquidation; (d) sell by public auction or private sale any property of the corporation; (e) do all acts and execute or, in Quebec, sign any documents on behalf of the corporation; (f) borrow money on the security of the property of the corporation; (g) settle or compromise or, in Quebec, transact on any claims by or against the corporation; and (h) do all other things necessary for the liquidation of the corporation and distribution of its property. Due diligence (2) A liquidator is not liable if the liquidator exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on (a) financial statements of the corporation represented to the liquidator by an officer of the corporation or in a written report of the Organisations à public accountant of the corporation fairly to reflect the financial condition of the corporation; or (b) a report of a person whose profession lends credibility to a statement made by that person. Liability for environmental matters (3) Despite anything in federal or provincial law, a liquidator is not liable, in that capacity, for any environmental condition or environmental damage, unless the condition arose or the damage occurred after the liquidator’s appointment as a result of the liquidator’s gross negligence or wilful misconduct or, in Quebec, the liquidator’s gross or intentional fault. Application for examination (4) On the application of a liquidator, the court may — if it is satisfied that there are reasonable grounds to believe that any person has in their possession or under their control, or has concealed, withheld or misappropriated, any property of the corporation — make an order requiring that person to appear before the court at the time and place designated in the order and to be examined. Power of court (5) If the court is satisfied, on the examination, that the person has concealed, withheld or misappropriated property of the corporation, the court may order that person to restore it or pay compensation to the liquidator. Costs of liquidation 233. (1) A liquidator shall pay the costs of liquidation out of the property of the corporation and shall pay, or make adequate provision for, all claims against the corporation. Final accounts (2) Within the prescribed period after appointment, and after paying, or making adequate provision for, all claims against the corporation, the liquidator shall apply to the court (a) for approval of the final accounts and for an order permitting the liquidator to distribute in money or in kind the remaining property of the corporation in accordance with sections 234 to 236; or (b) for an extension of time, setting out the reasons for the extension. C. 23 Member application (3) On the application of a member of the corporation, the court may, if a liquidator fails to make the application required by subsection (2), order the liquidator to show cause why a final accounting and distribution should not be made. Publication (4) A liquidator shall give notice of their intention to make an application under subsection (2) to the Director, to each inspector appointed under paragraph 227(c), to each member and to any person who provided a security or fidelity bond or fidelity insurance for the liquidation, and shall publish the notice in a newspaper published or distributed in the place where the corporation has its registered office, or as otherwise directed by the court. Final order (5) If the court approves the final accounts rendered by a liquidator, the court shall make an order Canada Not-for-pr (a) directing the Director to issue a certificate of dissolution; (b) giving directions regarding the custody of documents and records of the corporation or their disposition, including by destruction; and (c) discharging the liquidator. Delivery of order (6) The liquidator discharged under subsection (5) shall immediately send a certified copy of the order referred to in that subsection to the Director. Certificate of dissolution (7) On receipt of a certified copy of the order referred to in subsection (5), the Director shall issue a certificate of dissolution. Effect of certificate (8) The corporation ceases to exist on the date shown in the certificate of dissolution. Transfer on condition of return 234. If a person has transferred property to a corporation subject to the condition that it be returned on the dissolution of the corporation, the liquidator shall transfer that property to that person. Application 235. (1) This section applies to (a) a corporation that is a registered charity within the meaning of subsection 248(1) of the Income Tax Act; (b) a soliciting corporation; and Organisations à (c) a corporation that has, in the prescribed period, received income in excess of the prescribed amount in the form of (i) donations or gifts or, in Quebec, gifts or legacies of money or other property requested from any person who is not (A) a member, director, officer or employee of the corporation at the time of the request, (B) a spouse of a person referred to in clause (A) or an individual who is cohabiting with that person in a conjugal relationship, having so cohabited for a period of at least one year, or (C) a child, parent, brother, sister, grandparent, uncle, aunt, nephew or niece of a person referred to in clause (A) or of a spouse or individual referred to in clause (B), (ii) grants or similar financial assistance received from the federal government or a provincial or municipal government, or an agency of such a government, or (iii) donations or gifts or, in Quebec, gifts or legacies of money or other property from a corporation or other entity that has, in the prescribed period, received income in excess of the prescribed amount in the form of donations, gifts or legacies referred to in subparagraph (i) or grants or similar financial assistance referred to in subparagraph (ii). Articles to provide for distribution of property (2) The articles of a corporation shall provide that any property remaining on liquidation after the discharge of any liabilities of the corporation, other than property referred to in section 234, shall be distributed to one or more qualified donees, within the meaning of subsection 248(1) of the Income Tax Act. C. 23 Distribution in accordance with order (3) If the articles of a corporation do not provide for distribution to one or more qualified donees, the liquidator shall apply for an order under section 227 for the distribution of the remaining property of the corporation, other than the property referred to in section 234, to one or more qualified donees. Notice of application (4) The liquidator shall give notice to the Director of the application, and the Director may appear and be heard in person or by counsel. Distribution in accordance with articles 236. (1) If the articles of a corporation, other than a corporation referred to in subsection 235(1), provide for the distribution of property remaining on liquidation after the discharge of any liabilities of the corporation, the liquidator shall distribute the remaining property, other than the property referred to in section 234, in accordance with the articles. Distribution to members (2) If the articles do not provide for the distribution of the remaining property, the liquidator shall divide the remaining property, other than the property referred to in section 234, into as many equal shares as there are memberships in the corporation and distribute one share to the holder of each membership. Right to distribution in money 237. (1) If in the course of liquidation of a corporation the members resolve or the liquidator proposes to do any of the following, a member may apply to the court for an order requiring the distribution of the property of the corporation to be in money: Canada Not-for-pr (a) exchange all or substantially all of the property of the corporation for securities, debt obligations or memberships of another body corporate that are to be distributed to the members; or (b) distribute all or part of the property of the corporation to the members in kind. Powers of court (2) On an application under subsection (1), the court may order all of the property of the corporation to be converted into and distributed in money. Custody of records 238. A person who has been granted custody of the documents and records of a dissolved corporation remains liable to produce those Organisations à documents and records until the expiry of the prescribed period after the corporation’s dissolution or of any shorter period fixed by an order made under subsection 233(5). Definition of “member” 239. (1) In this section, “member” includes the heirs and personal representatives of a member. Continuation of actions (2) Despite the dissolution of a corporation under this Act, (a) any civil, criminal or administrative action or proceeding commenced by or against the dissolved corporation before its dissolution may be continued as if the corporation had not been dissolved; (b) any civil, criminal or administrative action or proceeding may be brought against the dissolved corporation within two years after its dissolution as if the corporation had not been dissolved; and (c) any property that would have been available to satisfy any judgment or order if the corporation had not been dissolved remains available for that purpose. Service on corporation (3) Service of a document on a corporation after its dissolution may be effected by serving the document on a person whose name appears on the last notice that was sent by the corporation in accordance with section 128 or 134 and received by the Director. Service on company (4) Service of a document on a company to which the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, applied and that has been dissolved under subsection 297(5) may be effected by serving the document on a person shown as a director in the last annual summary filed by the company under that Act. Reimbursement (5) Despite the dissolution of a corporation under this Act, a member to whom any of its property has been distributed is liable to any person claiming under subsection (2) to the extent of the amount received by that member on that distribution, and an action to enforce that liability may be brought within two years after the date of the dissolution of the corporation. C. 23 Representative action (6) A court may order an action referred to in subsection (5) to be brought against the persons who were members as a class or group, subject to any conditions that the court thinks fit, and, if the plaintiff establishes a claim, the court may refer the proceedings to a referee or other officer of the court, who may Canada Not-for-pr (a) add as a party to the proceedings each person who was a member found by the plaintiff; (b) determine, subject to subsection (5), the amount that each person who was a member shall contribute towards satisfaction of the plaintiff’s claim; and (c) direct payment of the amounts so determined. Creditors or members not found 240. (1) On the dissolution of a corporation under this Act, the portion of the property distributable to a creditor or member who cannot be found shall be converted into money and paid to the Receiver General. Payment to be forwarded (2) If payment is made to the Receiver General under subsection (1) with respect to a creditor or member, the corporation or liquidator shall forward to the Director with the payment all documents, records and registers in the possession of the corporation or liquidator that relate to the entitlement of the creditor or member. Constructive satisfaction (3) A payment under subsection (1) is deemed to be in satisfaction of a debt or claim of the creditor or member. Recovery (4) A person who establishes an entitlement to any money paid to the Receiver General under this Act shall be paid by the Receiver General an equivalent amount out of the Consolidated Revenue Fund. Vesting in Crown 241. (1) Subject to subsection 239(2) and section 240, property of a dissolved corporation that has not been disposed of at the date of its dissolution under this Act vests in Her Majesty in right of Canada. 2009 Return of property on revival Organisations à (2) If a dissolved corporation is revived as a corporation under section 219, any property, other than money, that vested in Her Majesty under subsection (1) and that has not been disposed of shall be returned to the corporation and there shall be paid to the corporation out of the Consolidated Revenue Fund (a) an amount equal to any money received by Her Majesty under subsection (1); and (b) if property other than money vested in Her Majesty under subsection (1) and that property has been disposed of, an amount equal to the lesser of (i) the value of that property at the date it vested in Her Majesty, and (ii) the amount realized by Her Majesty from the disposition of that property. PART 15 INVESTIGATION Investigation 242. (1) On the application of a member, a debt obligation holder or the Director, ex parte or on any notice that the court requires, a court having jurisdiction in the place where a corporation has its registered office may direct an investigation to be made of the corporation and any of its affiliated corporations and may (a) appoint an inspector to conduct the investigation or replace an inspector and fix the remuneration of the inspector or their replacement; (b) determine the notice to be given to any interested person or, subject to subsection (3), dispense with notice to any person; (c) subject to section 244, authorize an inspector to enter any place if the court is satisfied that there are reasonable grounds to suspect that there is relevant information in that place and to examine any thing and make copies of any document or record found there; (d) require any person to produce documents or records to an inspector; C. 23 Canada Not-for-pr (e) authorize an inspector to conduct a hearing, administer oaths and examine any person on oath, and make rules for the conduct of the hearing; (f) require any person to attend a hearing conducted by an inspector and to give evidence on oath; (g) give directions to an inspector or any interested person on any matter arising in the investigation; (h) require an inspector to make an interim or final report to the court; (i) determine whether a report of an inspector should be published and, if so, order the Director to publish the report in whole or in part or to send copies to any person whom the court designates; (j) require an inspector to discontinue an investigation; (k) require the corporation to pay the costs of the investigation; and (l) make any other order that it thinks fit. Grounds (2) The court may make an order on an application under subsection (1) only if it appears to the court that (a) the activities of the corporation or any of its affiliates are or have been carried on with intent to defraud any person; (b) the activities or affairs of the corporation or any of its affiliates are or have been carried on or conducted, or the powers of the directors are or have been exercised, in a manner that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of a member or debt obligation holder; (c) the corporation or any of its affiliates was formed for a fraudulent or unlawful purpose or is to be dissolved for a fraudulent or unlawful purpose; or (d) persons concerned with the formation, activities or affairs of the corporation or any of its affiliates have acted fraudulently or dishonestly. Organisations à Notice to Director (3) A member or debt obligation holder who makes an application under subsection (1) shall give the Director reasonable notice of the application and the Director is entitled to appear and be heard in person or by counsel. No security for costs (4) An applicant under this section is not required to give security for costs. Hearings in camera (5) An ex parte application under this section shall be heard in camera. Consent to publish proceedings required (6) No person shall publish anything relating to ex parte proceedings under this section except with the authorization of the court or the written consent of the corporation being investigated. Power of inspector 243. (1) An inspector under this Part has the powers set out in the order appointing the inspector. Court order (2) An inspector shall on request produce to an interested person a copy of any order made under subsection 242(1). Entering dwelling 244. (1) If the place referred to in paragraph 242(1)(c) is a dwelling, the court shall not make an order under that paragraph unless it is satisfied that (a) entry to the dwelling is necessary to practically obtain the information; and (b) entry to the dwelling has been refused or there are reasonable grounds for believing that entry will be refused. Use of force (2) In acting under the authority of an order that authorizes entry to a dwelling, the inspector named in it shall not use force unless the inspector is accompanied by a peace officer and the use of force has been specifically authorized in the order. Hearing in camera 245. (1) On the application of an interested person, a court may make an order directing that a hearing conducted by an inspector under this Part be heard in camera or giving directions on any matter arising in the investigation. C. 23 Right to counsel (2) A person whose conduct is being investigated or who is being examined at a hearing conducted by an inspector under this Part has a right to be represented by counsel. Incriminating statements 246. No person is excused from attending and giving evidence and producing documents and records to an inspector under this Part by reason only that the evidence tends to incriminate that person or subject that person to any proceeding or penalty, but no such evidence shall be used or is receivable against that person in any proceeding instituted against that person under an Act of Parliament, other than a prosecution under section 132 of the Criminal Code for perjury in giving the evidence or a prosecution under section 136 of that Act in respect of the evidence. Exchange of information 247. (1) In addition to the powers set out in the order appointing the inspector, an inspector appointed to investigate a corporation may furnish information to, or exchange information and otherwise cooperate with, any public official in Canada or elsewhere who is authorized to exercise investigatory powers and who is investigating, in respect of the corporation, any allegation of improper conduct that is the same as or similar to the conduct described in subsection 242(2). Restriction (2) An inspector shall not furnish information that was obtained from any person in the course of an investigation under this Part to a public official outside Canada unless the inspector is satisfied that the information will not be used against that person in any proceeding instituted against that person for an offence. Absolute privilege — defamation 248. (1) Any oral or written statement or report made by an inspector or any other person in an investigation under this Part has absolute privilege. Copy of report (2) An inspector shall send to the Director a copy of every report made by the inspector under this Part. Canada Not-for-pr 2009 Solicitor-client privilege or professional secrecy Organisations à 249. Nothing in this Part shall be construed as affecting solicitor-client privilege or, in Quebec, the professional secrecy of advocates and notaries. PART 16 REMEDIES, OFFENCES AND PUNISHMENT Definitions “action” « poursuite » “complainant” « plaignant » 250. The following definitions apply in this Part. “action” means an action under this Act. “complainant” means (a) a former or present member or debt obligation holder of a corporation or any of its affiliates; (b) a present or former registered holder or beneficial owner of a share of an affiliate of a corporation; (c) a former or present director or officer of a corporation or any of its affiliates; (d) the Director; or (e) any other person who, in the discretion of a court, is a proper person to make an application under this Part. Derivative action 251. (1) On the application of a complainant, a court may make an order granting the complainant leave to bring an action in the name of and on behalf of a corporation or any of its subsidiaries, or intervene in an action to which such a body corporate is a party, for the purpose of prosecuting, defending or discontinuing the action on its behalf. Conditions precedent (2) The court may not make an order under subsection (1) unless the court is satisfied that (a) the complainant has given notice to the directors of the corporation or its subsidiary of the complainant’s intention to apply to the court under subsection (1) within the prescribed period before bringing the application, or as otherwise ordered by the court, if C. 23 Canada Not-for-pr the directors of the corporation or its subsidiary do not bring the action, prosecute or defend it diligently or discontinue it; (b) the complainant is acting in good faith; and (c) it appears to be in the interests of the corporation or its subsidiary that the action be brought, prosecuted, defended or discontinued. Faith-based defence (3) The court may not make an order under subsection (1) if the court is satisfied that (a) the corporation is a religious corporation; (b) the decision of the directors referred to in paragraph (2)(a) is based on a tenet of faith held by the members of the corporation; and (c) it was reasonable to base the decision on a tenet of faith, having regard to the activities of the corporation. Powers of court 252. In connection with an action brought or intervened in as a result of an application under subsection 251(1), the court may at any time make (a) an order authorizing the complainant or any other person to control the conduct of the action; (b) an order giving directions for the conduct of the action; (c) an order directing that any amount adjudged payable by a defendant in the action shall be paid, in whole or in part, directly to former or present shareholders, members and debt obligation holders of the corporation or its subsidiary instead of to the corporation or its subsidiary; (d) an order requiring the corporation or its subsidiary to pay reasonable legal costs incurred by the complainant in connection with the action; and (e) any other order that it thinks fit. Application to court re oppression 253. (1) On the application of a complainant, a court may make an order if it is satisfied that, in respect of a corporation or any of its affiliates, any of the following is oppressive or Organisations à unfairly prejudicial to or unfairly disregards the interests of any shareholder, creditor, director, officer or member, or causes such a result: (a) any act or omission of the corporation or any of its affiliates; (b) the conduct of the activities or affairs of the corporation or any of its affiliates; or (c) the exercise of the powers of the directors or officers of the corporation or any of its affiliates. Faith-based defence (2) The court may not make an order if the court is satisfied that (a) the corporation is a religious corporation; (b) the act or omission, the conduct or the exercise of powers is based on a tenet of faith held by the members of the corporation; and (c) it was reasonable to base the act or omission, the conduct or the exercise of powers on the tenet of faith, having regard to the activities of the corporation. Powers of court (3) The court may make any interim or final order that it thinks fit, including an order (a) restraining the conduct complained of; (b) appointing a receiver or receivermanager; (c) with respect to a corporation’s affairs, requiring the amendment of the articles or bylaws or the creation or amendment of a unanimous member agreement; (d) directing an issue or exchange of memberships, debt obligations or securities; (e) appointing directors in place of or in addition to all or any of the directors then in office; (f) directing a corporation, subject to subsection (5), or any other person, to purchase the debt obligation of a debt obligation holder; (g) directing a corporation, subject to subsection (5), or any other person, to pay a member all or part of the amount that the member paid for their membership; C. 23 Canada Not-for-pr (h) varying, setting aside or annulling a transaction or contract to which a corporation is a party and compensating the corporation or any other party to the transaction or contract; (i) requiring a corporation, within a time specified by the court, to produce to the court or an interested person financial statements in the form required by section 172 or an accounting in any other form that the court may determine; (j) compensating an aggrieved person; (k) directing rectification of the registers or other records of a corporation under section 255; (l) liquidating and dissolving a corporation; (m) directing an investigation under Part 15 to be made; and (n) requiring the trial of any issue. Duty of directors (4) If an order directs amendment of the articles or by-laws of a corporation, (a) the directors shall immediately comply with subsection 215(4); and (b) no other amendment to the articles or bylaws shall be made without the consent of the court, until a court otherwise orders. Limitation (5) A corporation shall not make a payment to a member under paragraph (3)(f) or (g) if there are reasonable grounds for believing that, after that payment, (a) the corporation is or would be unable to pay its liabilities as they become due; or (b) the realizable value of the corporation’s assets would be less than the aggregate of its liabilities. Organisations à Alternative order (6) An applicant under this section may apply in the alternative for an order under section 224. Evidence of members’ approval not decisive 254. (1) An application made or an action brought or intervened in under this Part shall not be stayed or dismissed by reason only that it is shown that an alleged breach of a right or duty owed to the corporation or its subsidiary has been or might be approved by the members of that body corporate, but evidence of approval by the members may be taken into account by the court in making an order under section 224, 252 or 253. Court approval to discontinue (2) An application made or an action brought or intervened in under this Part shall not be stayed, discontinued, settled or dismissed for want of prosecution or, in Quebec, failure to respect the agreement between the parties as to the conduct of the proceeding without the approval of the court given on any terms that the court thinks fit and, if the court determines that the interests of any complainant may be substantially affected by the stay, discontinuance, settlement, dismissal or failure, the court may order any party to the application or action to give notice to the complainant. No security for costs (3) A complainant is not required to give security for costs in any application made or action brought or intervened in under this Part. Interim costs (4) In an application made or an action brought or intervened in under this Part, the court may at any time order the corporation or its subsidiary to pay to the complainant interim costs, including legal costs and disbursements, but the complainant may be held accountable for those interim costs on final disposition of the application or action. Application to court to rectify records 255. (1) If the name of a person is alleged to be or to have been wrongly entered or retained in, or wrongly deleted or omitted from, the registers or other records of a corporation, the corporation, a debt obligation holder, director, officer or member of the corporation or any aggrieved person may apply to a court for an order that the registers or records be rectified. C. 23 Director’s right to appear (2) An applicant under this section shall give the Director notice of the application and the Director is entitled to appear before the court and be heard in person or by counsel. Powers of court (3) On an application under this section, the court may make Canada Not-for-pr (a) an order requiring the registers or other records of the corporation to be rectified; (b) an order restraining the corporation from calling or holding a meeting of members before that rectification; (c) an order determining the right of a party to the proceedings to have their name entered or retained in, or deleted or omitted from, the registers or records of the corporation; (d) an order compensating a party who has incurred a loss; and (e) any other order that it thinks fit. Application for directions 256. On the application of the Director for directions in respect of any matter concerning the Director’s duties under this Act, a court may give any directions and make any further order that it thinks fit. Notice of refusal by Director 257. (1) If the Director refuses to accept any document that takes effect under this Act on its acceptance or on the issuance of a certificate or other document, the Director shall, within the prescribed period, give written notice of the refusal to the person who sent the document, giving reasons. Deemed refusal (2) If the Director does not, within the prescribed period, accept the document, issue the certificate or other document or give the notice of refusal, the Director is deemed for the purposes of section 258 to have refused the document. Appeal from Director’s decision 258. A court may, on the application of a person aggrieved by any of the following decisions of the Director, make any order that it thinks fit, including an order requiring the Director to change the decision: Organisations à (a) to refuse to accept in the form submitted any articles or other document required by this Act to be sent to the Director; (b) to give a name, to change or revoke a name, or to refuse to reserve, accept, change or revoke a name under section 13; (c) not to accept a notice of registered office required by section 20; (d) to refuse to issue a certificate of discontinuance under section 213 or a certificate attesting that as of a certain date a corporation exists under subsection 290(2); (e) to issue, or to refuse to issue, a certificate of revival under section 219, or to impose terms for revival; (f) to dissolve a corporation under section 222; (g) to correct, or to refuse to correct, articles, a certificate or other document under section 288; (h) to cancel, or to refuse to cancel, the articles and any related certificate under section 289; or (i) to grant, or to refuse to grant, an application made under subsection 2(6), 25(1) or (2), 104(3), 160(2), 162(5) or 171(2) or section 173, 190 or 271. Compliance or restraining order 259. On the application of a complainant or a creditor of a corporation, a court may make an order directing a corporation or any director, officer, employee, agent or mandatary, public accountant, trustee, receiver, receiver-manager, sequestrator or liquidator of a corporation to comply with this Act, the regulations or the articles, the by-laws or a unanimous member agreement of the corporation or restraining any such person from acting in breach of them and make any further order that it thinks fit. Summary application to court 260. If this Act states that a person may apply to a court, the application may be made in a summary manner following applicable provincial law or as the rules of the court of C. 23 Canada Not-for-pr competent jurisdiction provide, and subject to any order respecting notice to interested parties or costs, or any other order that the court thinks fit. Appeal of final order 261. (1) An appeal lies to the court of appeal of a province from any final order made by a court of that province under this Act. Appeal with leave (2) An appeal lies to the court of appeal of a province from any order other than a final order made by a court of that province, only with leave of the court of appeal. Offence 262. (1) Every person who contravenes a provision of this Act, other than paragraph 148(2)(b), or the regulations is guilty of an offence and is liable on summary conviction to a fine of not more than $5,000 or to imprisonment for a term of not more than six months or to both. Offences with respect to reports (2) A person who makes, or assists in making, a false or misleading statement in a document required under this Act or the regulations to be sent to the Director or to any other person is guilty of an offence and liable on summary conviction to a fine of not more than $5,000 or to imprisonment for a term of not more than six months or to both. Offence — use of information (3) A person who uses information obtained from a register of members or debt obligation holders or a list of members or debt obligation holders required under this Act for a purpose other than those specified in sections 22, 23 and 107 without the written permission of the member or debt obligation holder about whom information is being used is guilty of an offence and liable on summary conviction to a fine of not more than $25,000 or to imprisonment for a term of not more than six months or to both. Officers, etc., of bodies corporate (4) If a body corporate commits an offence under this section, any director or officer of the body corporate who authorized, permitted or acquiesced in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction to a fine of not more than Organisations à $5,000 or to imprisonment for a term of not more than six months or to both, whether or not the body corporate has been prosecuted or convicted. Due diligence (5) No person shall be convicted of an offence under this section if the person establishes that they exercised due diligence to prevent the commission of the offence. Non-application of section 126 of the Criminal Code (6) Section 126 of the Criminal Code does not apply in respect of the obligation under paragraph 148(2)(b). Order to comply 263. (1) Where a person is guilty of an offence under this Act or the regulations, any court in which proceedings in respect of the offence are taken may, in addition to any punishment it may impose, order that person to comply with the provisions of this Act or the regulations for the contravention of which the person has been convicted. Limitation period (2) A prosecution for an offence under this Act may be instituted at any time within but not later than two years after the time when the subject matter of the complaint arose. Civil remedy not affected (3) No civil remedy for an act or omission is suspended or affected by reason that the act or omission is an offence under this Act. PART 17 DOCUMENTS IN ELECTRONIC OR OTHER FORM Definitions “electronic document” « document électronique » “information system” « système d’information » 264. The following definitions apply in this Part. “electronic document” means, except in section 269, any form of representation of information or of concepts fixed in any medium in or by electronic, optical or other similar means and that can be read or perceived by a person or by any means. “information system” means a system used to generate, send, receive, store or otherwise process an electronic document. C. 23 Application 265. This Part does not apply to information, including information in a notice or other document, sent to or issued by the Director under this Act or prescribed for the purposes of this section. Use not mandatory 266. (1) Nothing in this Act or the regulations requires a person to create or provide an electronic document. Consent and other requirements (2) Despite anything in this Part, a requirement under this Act or the regulations to provide a person with information, including information in a notice or other document, is not satisfied by the provision of an electronic document unless Canada Not-for-pr (a) the addressee has consented, in the manner prescribed, and has designated an information system for the receipt of the electronic document; and (b) either the electronic document is provided to the designated information system or any other prescribed action is taken. Revocation of consent (3) An addressee may revoke the consent referred to in paragraph (2)(a) in the manner prescribed. Creation and provision of information 267. A requirement under this Act or the regulations that information, including information in a notice or other document, be created or provided is satisfied by the creation or provision of an electronic document if (a) the by-laws or the articles of the corporation do not otherwise provide; and (b) the regulations, if any, have been complied with. Creation of information in writing 268. (1) A requirement under this Act or the regulations that information, including information in a notice or other document, be created in writing is satisfied by the creation of an electronic document if, in addition to the conditions set out in section 267, (a) the information in the electronic document is accessible so as to be usable for subsequent reference; and Organisations à (b) the regulations pertaining to this subsection, if any, have been complied with. Provision of information in writing (2) A requirement under this Act or the regulations that information, including information in a notice or other document, be provided in writing is satisfied by the provision of an electronic document if, in addition to the conditions set out in section 267, (a) the information in the electronic document is accessible by the addressee and capable of being retained by the addressee, so as to be usable for subsequent reference; and (b) the regulations pertaining to this subsection, if any, have been complied with. Copies (3) A requirement under this Act or the regulations for one or more copies of a document to be provided to a single addressee at the same time is satisfied by the provision of a single version of an electronic document. Registered mail (4) A requirement under this Act or the regulations to provide a document by registered mail cannot be satisfied by means of an electronic document unless the regulations so prescribe and, in such case, only in accordance with the prescribed requirements. Statutory declarations and affidavits 269. (1) A statutory declaration or an affidavit required under this Act or the regulations may be created or provided in an electronic document if (a) the person who makes the statutory declaration or affidavit signs it with his or her secure electronic signature; (b) the authorized person before whom the statutory declaration or affidavit is made signs it with his or her secure electronic signature; and (c) the requirements of sections 266 to 268 are complied with. Definitions (2) For the purposes of this section, “electronic document” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. C. 23 Clarification (3) For the purpose of complying with paragraph (1)(c), the references to an “electronic document” in sections 266 to 268 are to be read as references to an electronic document as defined in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. Signatures 270. Except with respect to a statutory declaration or an affidavit, a requirement under this Act or the regulations for a signature or for a document to be executed is satisfied in relation to an electronic document if the prescribed requirements, if any, pertaining to this section are met and if the signature results from the application by a person of a technology or a process that permits the following to be proven: Canada Not-for-pr (a) the signature resulting from the use by the person of the technology or process is unique to the person; (b) the technology or process is used by the person to incorporate, attach or associate the person’s signature to the electronic document; and (c) the technology or process can be used to identify its user. Application for dispensation 271. On application of the corporation, the Director may, on any terms that the Director thinks fit, relieve — including retroactively — a corporation from complying with any requirements of this Part if the Director reasonably believes that the members will not be prejudiced by the dispensation. PART 18 GENERAL NOTICE, CERTIFICATES AND OTHER DOCUMENTS Notice to directors and members 272. (1) A notice or other document required by this Act, the regulations, the articles or the by-laws to be sent to a member or director of a corporation may be sent by prepaid mail addressed to, or may be delivered personally to, Organisations à (a) the member at the member’s latest address as shown in the records of the corporation; and (b) the director at the director’s latest address as shown in the records of the corporation or in the last notice that was sent by the corporation in accordance with section 128 or 134 and received by the Director. Effect of notice (2) A director whose name appears on the last notice that was sent by a corporation in accordance with section 128 or 134 and received by the Director is presumed for the purposes of this Act to be a director of the corporation. Deemed receipt (3) A notice or other document sent in accordance with subsection (1) to a member or director of a corporation is deemed to be received at the time it would be delivered in the ordinary course of mail unless there are reasonable grounds for believing that the member or director did not receive the notice or document at that time or at all. Undelivered notices (4) If on two consecutive occasions a notice or other document sent to a member in accordance with subsection (1) is returned because the member cannot be found, the corporation is not required to send any further notices or documents to the member until the member informs the corporation in writing of the member’s new address. Notice to and service on a corporation 273. A notice or other document required to be sent to or served on a corporation may be sent by registered mail to the registered office of the corporation shown in the last accepted notice under section 20 and, if so sent, is deemed to be received or served at the time it would be delivered in the ordinary course of mail unless there are reasonable grounds for believing that the corporation did not receive the notice or document at that time or at all. Waiver of notice 274. Where a notice or other document is required by this Act or the regulations to be sent, the sending of the notice or document may be waived or the time for the notice or document may be waived or abridged at any time with the consent in writing of the person entitled to the notice or document. C. 23 Certificate of corporation 275. (1) A certificate issued on behalf of a corporation stating any fact that is set out in the articles, the by-laws, a unanimous member agreement, the minutes of the meetings of the directors, a committee of directors or the members, or in a trust indenture or other contract to which the corporation is a party, may be signed by a director or an officer of the corporation. Evidence of contents of certificate, certified extract and certified copy (2) In the absence of evidence to the contrary, the following documents, when introduced as evidence in any civil, criminal or administrative action or proceeding, are proof of their contents: Canada Not-for-pr (a) a certificate referred to in subsection (1); (b) a document certified to be a true extract from the corporation’s register of directors, officers, members and debt obligation holders; and (c) a document certified to be a true copy of minutes, or of an extract from minutes, of a meeting of members or directors or a committee of directors of the corporation. Proof of authenticity (3) A document that appears to be a certificate, certified extract or certified copy referred to in subsection (2) is presumed, in the absence of evidence to the contrary, to be authentic. Proof of membership or debt obligation (4) An entry of a person’s name in a register of members or debt obligation holders of a corporation, or an entry in a debt obligation certificate issued by a corporation, is, in the absence of evidence to the contrary, proof that the person holds the membership or debt obligation described in the register or in the certificate. Definition of “statement” 276. (1) In this section, “statement” means a statement of intent to dissolve, or a statement of revocation of intent to dissolve, referred to in section 221. Sending of articles and statements (2) If this Act requires that articles or a statement relating to a corporation be sent to the Director, on receiving the articles or statement in the form that the Director fixes, any other required documents and the required fees, the Director shall Organisations à (a) record the date of receipt; (b) issue the appropriate certificate; (c) send the certificate, or a copy, image or photographic, electronic or other reproduction of the certificate, to the corporation or its agent or mandatary; and (d) publish a notice of the issuance of the certificate in a publication generally available to the public. Date of certificate (3) A certificate referred to in subsection (2) issued by the Director may be dated as of the day the Director receives the articles, statement or court order under which the certificate is issued or as of any later day specified by the court or person who signed the articles or statement. Date of certificate (4) Despite subsection (3), a certificate of discontinuance may be dated as of the day on which the corporation amalgamates, or is continued, under another Act. Exception — failure to comply with Act (5) The Director may refuse to issue the certificate if a notice that is required by section 20 or 128 or subsection 134(1) indicates that the corporation, after the issuance of the certificate, would not be in compliance with this Act. Signature 277. (1) A signature required on a certificate issued by the Director under this Act may be printed or otherwise mechanically reproduced on the certificate. Execution of documents (2) Any articles, notice, resolution, requisition, statement or other document required or permitted to be executed or signed by more than one individual for the purposes of this Act may be executed or signed in several documents of similar form, each of which is executed or signed by one or more of the individuals. The documents, when duly executed or signed by all individuals required or permitted, as the case may be, to do so, are deemed to constitute one document for the purposes of this Act. Annual return 278. Every corporation shall send to the Director an annual return in the form and within the period that the Director fixes. C. 23 Inspection 279. (1) A person who has paid the required fee is entitled during usual business hours to examine and make copies of or take extracts from a document required by this Act or the regulations to be sent to the Director, except Canada Not-for-pr (a) extracts obtained under subsection 24(1); (b) a members or debt obligation holders list obtained under subsection 24(2); (c) a copy of the documents obtained under section 177; and (d) a report obtained under subsection 248(2). Copies or extracts (2) The Director shall, on request, furnish any person with a copy, extract, certified copy or certified extract of a document that may be examined under subsection (1). Payment of fees 280. A fee in respect of the receipt or copying of any document shall be paid to the Director on the reception or copying, and a fee in respect of the acceptance, examination or issuance of any document or in respect of any action that the Director is required or authorized to take under this Act shall be paid to the Director before the acceptance, examination or issuance or the taking of the action. DIRECTOR Appointment of Director 281. The Minister shall appoint a Director and may appoint one or more Deputy Directors to carry out the duties and exercise the powers of the Director under this Act. Content and form of notices and documents 282. The Director may establish the requirements for the content and fix the form, including electronic or other forms, of notices and other documents sent to or issued by the Director under this Act, including (a) the notices and documents that may be transmitted in electronic or other form; (b) the persons or classes of persons who may sign or transmit the notices and documents; Organisations à (c) their signature in electronic or other form, or the actions that are to have the same effect for the purposes of this Act as their signature; (d) the time and circumstances when electronic notices and documents are to be considered to be sent or received, and the place where they are considered to have been sent or received; and (e) any matter necessary for the purposes of the application of this section. Records of Director 283. (1) Documents received and accepted by the Director under this Act shall be kept by the Director in any form. Obligation to furnish (2) If documents are kept by the Director otherwise than in written form, (a) the Director shall furnish any copy required to be furnished under subsection 279(2) in intelligible form; and (b) a report respecting those documents, if it is certified by the Director, is admissible in evidence to the same extent as the original documents would have been. Retention of records (3) After the expiry of the prescribed period, the Director is not required to keep or produce a document other than (a) a document referred to in section 128, 134 or 153; (b) a certificate and attached articles or statement received under section 276; and (c) the most recent notice of registered office, if no notice under section 20 has been received during the prescribed period. Proof required by Director 284. (1) The Director may require that a document required by this Act or the regulations to be sent to the Director or a fact stated in such a document be verified in accordance with subsection (2). Form of proof (2) A document or fact required by the Director or by this Act to be verified may be verified by affidavit or by statutory declaration under the Canada Evidence Act before any commissioner for oaths or for taking affidavits. C. 23 Dispensation 285. The Director may relieve a person or class of persons, on any conditions that the Director considers appropriate, from sending to the Director any notice or other document or class of notice or document required under this Act to be so sent if the Director is satisfied that Canada Not-for-pr (a) information similar to what would be contained in the notice or other document or class of notice or document is contained in a document or a class of documents that is required to be made public under any other Act of Parliament or any Act of the legislature of a province; and (b) doing so would be in conformity with any prescribed requirements. Certificate of Director 286. (1) The Director shall sign any certificate or certification of fact that the Director is, under this Act, required or authorized to issue. Evidence of contents of certificate or certified copy (2) Except in a proceeding under section 223, a certificate issued by the Director under this Act or a copy of a document certified by the Director to be a true copy is conclusive proof in any civil, criminal or administrative action or proceeding of its contents. Evidence of contents of certification of fact (3) A certification of fact by the Director is, in the absence of evidence to the contrary, proof in any civil, criminal or administrative action or proceeding of its contents. Proof of authenticity (4) A document that appears to be a certificate or certified copy referred to in subsection (2) or a certification of fact referred to in subsection (3) is presumed, in the absence of evidence to the contrary, to be authentic. Alteration 287. The Director may alter a notice or other document, other than an affidavit or statutory declaration, if authorized by the person who sent the document or by that person’s representative. Corrections initiated by Director 288. (1) If there is an error in the articles, a certificate or other document except one required by section 20 or 128, subsection 134(1) or section 278, the directors or members of the corporation shall, on the request of the Director, pass the resolutions and send to the Director the documents required to comply with Organisations à this Act and take any other steps that the Director reasonably requires so that the Director can correct the document. No prejudice (2) Before proceeding under subsection (1), the Director shall be satisfied that the correction would not prejudice any of the members or creditors of the corporation. Corrections initiated by the corporation (3) The Director may, at the request of the corporation or of any other interested person, correct any of the documents referred to in subsection (1) if (a) the correction is approved by the directors of the corporation, or the error is obvious on the face of the document or was made by the Director; and (b) the Director is satisfied that the correction would not prejudice any of the members or creditors of the corporation and that it reflects the original intention of the corporation or the incorporators. Application to court (4) On the application of the Director, the corporation or any other interested person, a court may (a) order the correction of any of the documents referred to in subsection (1); (b) determine the rights of members or creditors of the corporation; and (c) make any other order that the court thinks fit. Notice to Director of application (5) An applicant under subsection (4) other than the Director shall give the Director notice of the application, and the Director is entitled to appear and to be heard in person or by counsel. Director may require surrender of document (6) The Director may demand the surrender of the original document and may issue a corrected certificate. Date of corrected document (7) A corrected document shall bear the date of the document it replaces unless (a) the correction is made with respect to the date of the document, in which case the document shall bear the corrected date; or (b) a court decides otherwise. C. 23 Notice (8) If a corrected certificate materially amends the terms of the original certificate, the Director shall without delay publish notice of the correction in a publication generally available to the public. Cancellation of articles by Director 289. (1) In the prescribed circumstances, the Director may cancel the articles and any related certificate of a corporation. No prejudice (2) Before proceeding under subsection (1), the Director shall be satisfied that the cancellation would not prejudice any of the members or creditors of the corporation. Request to Director to cancel articles (3) In the prescribed circumstances, the Director may, at the request of a corporation or of any other interested person, cancel the articles and any related certificate of the corporation if Canada Not-for-pr (a) the cancellation is approved by the directors of the corporation; and (b) the Director is satisfied that the cancellation would not prejudice any of the members or creditors of the corporation and that the cancellation reflects the original intention of the corporation or the incorporators. Application to court (4) On the application of the Director, the corporation or any other interested person, a court may (a) order the cancellation of the articles of a corporation and any related certificate; (b) determine the rights of members or creditors of the corporation; and (c) make any other order that the court thinks fit. Notice to Director (5) An applicant under subsection (4) other than the Director shall give the Director notice of the application, and the Director is entitled to appear and to be heard in person or by counsel. Return of certificate (6) The Director may demand the surrender of a cancelled certificate. Certificate 290. (1) The Director may provide any person with a certificate stating that a corporation (a) has sent to the Director a document required to be sent under this Act; Organisations à (b) has paid all required fees; or (c) exists as of a certain date. Director may refuse to issue certificate of existence (2) For greater certainty, the Director may refuse to issue a certificate described in paragraph (1)(c) if the Director has knowledge that the corporation is in default of sending a document required to be sent under this Act or of paying a required fee. Form of publication 291. Information or notices that the Director is required by this Act to publish in a publication generally available to the public may be made available to the public or published by any system of electronic data processing or other information storage device that is capable of reproducing any required information or notice in intelligible form within a reasonable time. Power to make inquiries 292. The Director may make inquiries of any person relating to compliance with this Act. REGULATIONS Regulations 293. (1) The Governor in Council may make regulations (a) prescribing any matter required or authorized by this Act to be prescribed; (b) defining, enlarging or restricting the meaning of any word or expression used but not defined in this Act; (c) requiring the payment of a fee in respect of the receipt, acceptance, examination, issuance or copying of any document, or in respect of any action that the Director is required or authorized to take under this Act, and prescribing the amount of the fee or the manner of determining the fee; (d) respecting the payment of fees, including the time when and the manner in which the fees are to be paid, the additional fees that may be charged for the late payment of fees and the circumstances in which any fees previously paid may be refunded in whole or in part; C. 23 Canada Not-for-pr (e) prescribing, for the purposes of paragraph 163(6)(e), the minimum amount of support required in relation to the number of times that a substantially similar proposal was submitted to members within the prescribed period; (f) respecting applications made under subsection 2(6), 25(1) or (2), 104(3), 160(2), 162(5) or 171(2) or section 173, 190 or 271 including prescribing the form and manner of, and time for, making the applications, the information and evidence to be submitted in connection with the applications, the procedure to be followed in the consideration of the applications, the factors to be taken into account in their consideration and, if applicable, any conditions that may or must form part of decisions on the applications; (g) prescribing any matter necessary for the purposes of the application of Part 17, including the time and circumstances when an electronic document is to be considered to have been provided or received and the place where it is considered to have been provided or received; (h) prescribing the manner of, and conditions for, participating in a meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting; (i) prescribing, for the purposes of subsections 165(3) and (4), the manner of, and conditions for, voting at a meeting of members by means of a telephonic, electronic or other communication facility; (j) respecting any matter relating to voting by members not in attendance at a meeting of members; and (k) generally, for carrying out the purposes and provisions of this Act. Incorporation by reference (2) The regulations may incorporate any material by reference regardless of its source and either as it exists on a particular date or as amended from time to time. 2009 Incorporated material is not a regulation Organisations à (3) Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference. PART 19 SPECIAL ACT BODIES CORPORATE WITHOUT SHARE CAPITAL Application to special Act bodies corporate 294. Part 3, subsections 160(1) and 168(1), sections 212, 221 to 223 and 278 and this Part apply to any body corporate without share capital incorporated by a special Act of Parliament and not continued under any other Act — other than a departmental corporation or a parent Crown corporation, as defined in section 2 of the Financial Administration Act — as if it were a corporation under this Act and any reference in Part 3 or those provisions to the articles of a corporation shall be read as a reference to the body corporate’s incorporating statute. Report listing Acts of continued or dissolved bodies corporate 295. (1) The Minister may cause to be laid before both Houses of Parliament a report listing every special Act of Parliament that incorporated a body corporate that was later continued under section 212 or dissolved under any of sections 221 to 223. Referral to committee (2) The report shall be referred to a committee of each House, or a joint committee of both Houses, that is designated or established for the purpose of reviewing it. Repeal of Acts (3) Every Act listed in the report — unless the Act is the subject of a resolution to the contrary of any committee to which the report is referred — is repealed on the day that is one year after the later of the day on which the report is laid before the Senate and the day on which it is laid before the House of Commons. Publication in the Canada Gazette (4) The Minister shall, within 60 days after their repeal, publish in the Canada Gazette a list of every Act repealed under subsection (3). C. 23 Change of name 296. (1) A body corporate may send to the Director notice of a change of its name that complies with subsections (4) and (5) and that has been approved by special resolution of the members. Certificate and notice (2) On receipt of the notice, the Director shall issue a certificate of change of name and give notice of the change as soon as practicable in a publication generally available to the public. Effective date (3) A change of name becomes effective on the date shown in the certificate. Alternate name (4) The name of a body corporate may be in an English form, a French form, an English form and a French form, or a combined English and French form, so long as the combined form meets any prescribed criteria. The body corporate may use and may be legally designated by any such form. Prohibited names (5) A body corporate shall not change its name to, or carry on activities under or identify itself by, a name that would not be permitted under subsection 13(1) if it were a corporation. Directing change of name (6) The Director may direct a body corporate to change its name in accordance with subsection (1) if, through inadvertence or otherwise, the body corporate, under this section, has acquired a name that does not comply with subsection (4) or (5). Undertaking to dissolve or change name (7) If a body corporate acquires a name as a result of a person undertaking to dissolve or to change names, and the undertaking is not honoured, the Director may direct the body corporate to change its name in accordance with subsection (1), unless the undertaking is honoured within the prescribed period referred to in subsection (8). Revoking name (8) If a body corporate has not followed a directive under subsection (6) or (7) within the prescribed period, the Director may revoke the name of the body corporate and assign a name to it and, until changed in accordance with subsection (1), the name of the body corporate is the name assigned by the Director. Canada Not-for-pr Organisations à PART 20 TRANSITIONAL PROVISIONS, CONSEQUENTIAL AMENDMENTS, COORDINATING AMENDMENTS, REPEALS AND COMING INTO FORCE TRANSITIONAL PROVISIONS Continuance — Part II of Canada Corporations Act 297. (1) A body corporate to which Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970 (in this section and section 298 referred to as the “Canada Corporations Act”), applies, other than a body corporate that is subject to a winding-up order made under the Winding-up and Restructuring Act before this subsection comes into force, shall apply for a certificate of continuance under section 211. Continuance — Part IV of Canada Corporations Act (2) A body corporate to which Part IV of the Canada Corporations Act applies, other than a body corporate that is subject to a winding-up order made under the Windingup and Restructuring Act before this subsection comes into force, shall apply for a certificate of continuance under section 187 of the Canada Business Corporations Act. Ogdensburg Bridge Authority (3) Despite subsection (2), the Ogdensburg Bridge Authority, created by An Act to incorporate Ogdensburg Bridge Authority, chapter 57 of the Statutes of Canada, 1952, shall apply for letters patent under section 156 of the Canada Corporations Act as if it were a corporation without share capital. Fees not payable (4) A body corporate that applies for a certificate of continuance under this section is not required to pay any fees in respect of the continuance. Time limit for continuance (5) Despite any provision of the Canada Corporations Act, the Director may, in accordance with section 222, dissolve a body corporate referred to in subsection (1) that does not apply for a certificate of continuance C. 23 Canada Not-for-pr under section 211 within three years after the day on which this subsection comes into force. Time limit for continuance (6) Despite any provision of the Canada Corporations Act, a body corporate referred to in subsection (2) that does not apply for a certificate of continuance under section 187 of the Canada Business Corporations Act within six months after the day on which this subsection comes into force is dissolved on the expiry of that period. Time limit for continuance of the Ogdensburg Bridge Authority (7) Despite any provision of the Canada Corporations Act, the Ogdensburg Bridge Authority is dissolved six months after the day on which this subsection comes into force if it does not apply for letters patent under section 156 of the Canada Corporations Act within that six-month period. No incorporation or continuance 298. After this section comes into force, no body corporate may be incorporated or continued under Part II of the Canada Corporations Act. Review of Act 299. (1) Within 10 years after the day on which this section comes into force, the Minister shall cause to be laid before both Houses of Parliament a report on the provisions and operation of this Act, including any recommendations for amendments to those provisions. Reference to parliamentary committee (2) The report stands referred to the committee of the Senate, the House of Commons or both Houses of Parliament that is designated or established for that purpose, which shall (a) as soon as possible after the laying of the report, review the report; and (b) report to the Senate, the House of Commons or both Houses of Parliament, as the case may be, within one year after the laying of the report of the Minister, or any further time authorized by the Senate, the House of Commons or both Houses of Parliament. Organisations à CONSEQUENTIAL AMENDMENTS 1955, c. 64 An Act to incorporate St. Mary’s River Bridge Company 300. Sections 3 to 7 of An Act to incorporate St. Mary’s River Bridge Company are repealed. 1957-58, c. 31, s. 1 301. Section 18 of the Act is repealed. 302. Section 23 of the Act is repealed. 1980-81-82-83, c. 85 An Act to incorporate the Jules and PaulÉmile Léger Foundation 303. Section 20 of An Act to incorporate the Jules and Paul-Émile Léger Foundation is replaced by the following: Application 20. Sections 3 and 21 of this Act and Part 19 of the Canada Not-for-profit Corporations Act apply, with any modifications that the circumstances require, to every subsidiary corporation incorporated under subsection 17(1). 1877, c. 67 An Act to incorporate the Pickering Harbour Company (Limited) and to authorize it to collect tolls 304. Section 2 of An Act to incorporate the Pickering Harbour Company (Limited) and to authorize it to collect tolls is repealed. 1984, c. 60 An Act to provide for the creation by amalgamation of The Wesleyan Church of Canada 305. Section 8 of An Act to provide for the creation by amalgamation of The Wesleyan Church of Canada is replaced by the following: Canada Not-forprofit Corporations Act to apply 1991, c. 46 2001, c. 9, s. 121 8. The Canada Not-for-profit Corporations Act applies to the Church in all matters not provided for in this Act as if the Church had been incorporated under that Act. Bank Act 306. Subsection 455.1(1) of the Bank Act is replaced by the following: C. 23 Designation of complaints body 455.1 (1) The Minister may, for the purposes of this section, designate a body corporate incorporated under the Canada Not-for-profit Corporations Act whose purpose, in the view of the Minister, is dealing with complaints, made by persons having requested or received products or services from its member financial institutions, that have not been resolved to the satisfaction of those persons under procedures established by those financial institutions under paragraph 455(1)(a). 1997, c. 26 Canada Not-for-pr Budget Implementation Act, 1997 307. Subsection 8(1) of the Budget Implementation Act, 1997 is replaced by the following: Acts not applicable to foundation 1998, c. 21 8. (1) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the foundation. Budget Implementation Act, 1998 308. Subsection 7(1) of the Budget Implementation Act, 1998 is replaced by the following: Acts not applicable to Foundation 7. (1) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Foundation. R.S., c. C-44; 1994, c. 24, s. 1(F) Canada Business Corporations Act 309. Subsection 3(3) of the Canada Business Corporations Act is amended by adding the following after paragraph (a): (a.1) the Canada Not-for-profit Corporations Act; 310. Subsection 209(1) of the Act is replaced by the following: Revival 209. (1) When a body corporate is dissolved under this Part or under section 268 of this Act, section 261 of chapter 33 of the Statutes of Canada, 1974-75-76, or subsection 297(6) of Organisations à the Canada Not-for-profit Corporations Act, any interested person may apply to the Director to have the body corporate revived as a corporation under this Act. 2007, c. 6, s. 401 311. (1) Subsections 268(4) and (4.1) of the Act are replaced by the following: Authorizing continuance (4) Subject to subsection (6), the directors of a body corporate incorporated or continued by or under a special Act of Parliament may, despite the charter of the body corporate, apply under section 187 for a certificate of continuance if the articles of continuance do not make any amendment to the charter of the body corporate other than an amendment required to conform to this Act. Authorizing continuance (4.1) Subject to subsection (6), the directors of a body corporate incorporated or continued by or under an Act of Parliament, other than this Act or a special Act, may, subject to any other Act of Parliament or the charter of the body corporate, apply under section 187 for a certificate of continuance if the articles of continuance do not make any amendment to the charter of the body corporate other than an amendment required to conform to this Act. 2007, c. 6, s. 401 (2) The portion of subsection 268(6) of the Act before paragraph (a) is replaced by the following: Discretionary continuance (6) The Governor in Council may, by order, require that a body corporate incorporated by or under an Act of Parliament to which Part I or II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, or the Canada Not-for-profit Corporations Act does not apply, apply for a certificate of continuance under section 187 within any period that may be prescribed except for the following: 2007, c. 6, s. 401 (3) Subsection 268(7) of the Act is repealed. (4) Section 268 of the Act is amended by adding the following after subsection (8): C. 23 Special Act no longer applicable (8.1) On the continuance of a body corporate incorporated by a special Act of Parliament as a corporation under this Act, the special Act ceases to apply to the corporation. Canada Not-for-pr (5) Subsection 268(10) of the Act is replaced by the following: Continuance prohibited 1998, c.1 (10) A body corporate to which Part II or III of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, or the Canada Not-for-profit Corporations Act applies or any similar body corporate incorporated otherwise than by or under an Act of Parliament may not apply for a certificate of continuance under section 187. Canada Cooperatives Act 312. Subsection 3(4) of the Canada Cooperatives Act is replaced by the following: Non-application of certain Acts R.S.C. 1970, c. C-32 (4) No provision of the Canada Business Corporations Act, the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, the Canada Not-for-profit Corporations Act or the Winding-up and Restructuring Act applies to a cooperative. Canada Corporations Act 313. The following provisions of the Canada Corporations Act are repealed: (a) the long title and section 1; (b) sections 2 to 4; (c) sections 5 to 5.5; (d) section 5.6; (e) section 5.7; (f) section 6; (g) sections 7 and 8; (h) sections 9 to 12; (i) sections 13 and 14; (j) sections 15 and 16; (k) sections 17 to 19; Organisations à (l) sections 20 to 25; (m) section 26; (n) sections 27 to 33; (o) sections 34 to 42; (p) section 43; (q) sections 44 to 64; (r) sections 65 to 67; (s) sections 68 to 73; (t) sections 74 to 92; (u) section 93; (v) sections 94 to 97; (w) sections 98 and 99; (x) sections 100 to 101; (y) section 102; (z) sections 103 to 105; (z.01) section 106; (z.02) sections 107 to 108.9; (z.03) section 109; (z.04) sections 110 and 111; (z.05) section 111.1; (z.06) sections 112 and 113; (z.07) sections 114.1 to 117; (z.08) sections 118 to 129.3; (z.09) sections 130 to 133; (z.1) sections 134 to 137; (z.2) sections 138 to 152; (z.3) sections 153 to 157.1; (z.4) sections 158 and 159; (z.5) sections 160 to 214; (z.6) sections 215 and 216; (z.7) sections 217 to 220; (z.8) the schedule; and (z.9) the headings not repealed by paragraphs (a) to (z.8). 162 2008, c. 28, s. 121 C. 23 Canada Not-for-pr Canada Employment Insurance Financing Board Act 314. Subsection 3(5) of the Canada Employment Insurance Financing Board Act is replaced by the following: Acts not applicable to Board 2001, c. 23 (5) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Board. Canada Foundation for Sustainable Development Technology Act 315. Subsection 8(3) of the Canada Foundation for Sustainable Development Technology Act is replaced by the following: Acts not applicable to Foundation (3) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Foundation. 316. Subsection 35(1) of the Act is replaced by the following: Designation by Governor in Council 1997, c. 40 35. (1) The Governor in Council may, by order, designate, for the purposes of this Act, any corporation incorporated under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, or the Canada Not-for-profit Corporations Act. Canada Pension Plan Investment Board Act 317. (1) Subsection 3(4) of the Canada Pension Plan Investment Board Act is replaced by the following: Acts not applicable to Board (4) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Board. (2) Subsection 3(4) of the Act, as enacted by subsection (1), is replaced by the following: Act not applicable to Board (4) The Canada Not-for-profit Corporations Act does not apply to the Board. 2009 1997, c. 6 Organisations à Canadian Food Inspection Agency Act 318. Section 21 of the Canadian Food Inspection Agency Act is replaced by the following: Object of agreements 21. The agreement referred to in section 20 may authorize the Minister, jointly with one or more provincial governments, to have a corporation incorporated under the Canada Business Corporations Act, the Canada Not-forprofit Corporations Act or an equivalent provincial statute, or to acquire shares or participate in any corporation, in order to implement the agreement. 2000, c. 6 Canadian Institutes of Health Research Act 319. Paragraph 26(c) of the Canadian Institutes of Health Research Act is replaced by the following: (c) with the approval of the Governor in Council, enter into a partnership, or incorporate by itself or with others a corporation, including a subsidiary of the CIHR, under the Canada Business Corporations Act, the Canada Not-for-profit Corporations Act or provincial legislation, or acquire or dispose of shares in any corporation; R.S., c. C-21; 2001, c. 9, s. 218 Canadian Payments Act 2001, c. 9, s. 242 320. Subsection 34(2) of the Canadian Payments Act is replaced by the following: Exemption from certain Acts (2) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Association. 1980-81-82-83, c. 108 Cooperative Energy Act 321. Section 10 of the Cooperative Energy Act is repealed. 164 1984, c. 18 C. 23 Canada Not-for-pr Cree-Naskapi (of Quebec) Act 322. Subsection 23(2) of the Cree-Naskapi (of Quebec) Act is replaced by the following: Acts not applicable to a band (2) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to a band. 1985, c. 55 Evangelical Lutheran Church in Canada Act 323. Section 13 of the Evangelical Lutheran Church in Canada Act is replaced by the following: Canada Not-for-profit Corporations Act 1995, c. 50 13. Despite section 294 of the Canada Notfor-profit Corporations Act, subsections 160(1) and 168(1) of that Act do not apply to the Church. Evangelical Missionary Church (Canada West District) Act 324. Section 7 of the Evangelical Missionary Church (Canada West District) Act is amended by adding the word “and” at the end of paragraph (e) and by repealing paragraph (f). 325. Subsection 8(3) of the Act is replaced by the following: Ultra vires not applicable (3) No act of the Church, including a transfer of property to or by the Church, is invalid by reason only that the act or transfer is contrary to its objects or to a provision of this Act or to a provision of the Canada Not-for-profit Corporations Act. 326. Sections 10 and 11 of the Act are replaced by the following: Governing statute 10. (1) The Canada Not-for-profit Corporations Act applies to the Church in all matters not provided for in this Act as if the Church had been continued in accordance with section 212 of that Act. Change of name, head office or objects (2) Despite subsection 4(1) and sections 5 and 6, the name of the Church or the place of its head office may be changed under the Canada Not-for-profit Corporations Act and the objects Organisations à of the Church may be changed in accordance with the requirements of that Act respecting a change in the statement of the purpose of a corporation. Application of governing statute 11. Despite subsection 10(1), sections 10, 13, 14, 16, 17, 21, 23 and 53, subsections 154(3) and 160(1), sections 161, 162 and 167, subsection 168(1), sections 220, 221 and 223, subsection 239(5) and Part 15 of the Canada Not-for-profit Corporations Act do not apply in respect of the Church. R.S., c. F-11 Financial Administration Act 2005, c. 30, s. 132 327. Section 7.4 of the Financial Administration Act is replaced by the following: Regulations 7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act, the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation. 2005, c. 9 First Nations Fiscal and Statistical Management Act 328. Subsection 66(1) of the First Nations Fiscal and Statistical Management Act is replaced by the following: Acts not applicable to Authority 1992, c. 56 66. (1) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Authority. Green Shield Canada Act 329. Subsection 15(1) of the Green Shield Canada Act is replaced by the following: C. 23 Acts not applicable to Association 15. (1) The Canada Not-for-profit Corporations Act and Parts IV to VI of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, do not apply to the Association. 1992, c. 53 1994, c. 27, s. 12 1991, c. 47 Canada Not-for-pr Gwich’in Land Claim Settlement Act 330. Section 8.1 of the Gwich’in Land Claim Settlement Act is repealed. Insurance Companies Act 2007, c. 6, s. 191 331. Subsection 39(2) of the Insurance Companies Act is replaced by the following: Continuance under the Canada Not-for-profit Corporations Act (2) A society may also, with the approval in writing of the Minister, apply under the Canada Not-for-profit Corporations Act, for a certificate of continuance under that Act. 2006, c. 4, s. 208 Mackenzie Gas Project Impacts Act 332. Section 8 of the Mackenzie Gas Project Impacts Act is replaced by the following: Acts not applicable to Corporation 1998, c. 24 8. The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Corporation. Mi’kmaq Education Act 333. Subsection 10(3) of the Mi’kmaq Education Act is replaced by the following: Application of Canada Not-for-profit Corporations Act (3) For greater certainty, Part 19 of the Canada Not-for-profit Corporations Act applies to the corporation and, in the application of section 160 of that Act to the corporation, a reference to members shall be read as a reference to directors. 2009 2003, c. 2 Organisations à Physical Activity and Sport Act 334. Subsection 31(3) of the Physical Activity and Sport Act is replaced by the following: Acts not applicable to Centre (3) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Centre. R.S., c. P-14 Pilotage Act 2001, c. 26, s. 317 335. Subsection 55(1) of the Pilotage Act is replaced by the following: Part 19 of the Canada Not-for-profit Corporations Act 55. (1) The CPHQ is deemed to be a corporation to which Part 19 of the Canada Not-for-profit Corporations Act applies. 1999, c. 34 Public Sector Pension Investment Board Act 336. Subsection 3(5) of the Public Sector Pension Investment Board Act is replaced by the following: Acts not applicable to Board (5) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Board. 1994, c. 27 Sahtu Dene and Metis Land Claim Settlement Act 337. Section 9 of the Sahtu Dene and Metis Land Claim Settlement Act is repealed. 1992, c. 59 United Grain Growers Act 338. Section 25 of the United Grain Growers Act is replaced by the following: Acts not applicable to the company 25. No provision of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, the Canada Not-for-profit Corporations Act or the Winding-up and Restructuring Act applies to the company. 168 1994, c. 34 C. 23 Canada Not-for-pr Yukon First Nations Land Claims Settlement Act 339. Section 10 of the Yukon First Nations Land Claims Settlement Act is repealed. Other Acts Deeming provision 340. Any reference to Part III of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, in any Act of Parliament is deemed to be a reference to Part 19 of the Canada Not-for-profit Corporations Act. COORDINATING AMENDMENTS 341. On the day on which paragraph 313(a) comes into force, subsection 3(2) is amended by adding the word “and” at the end of paragraph (a) and by repealing paragraph (b). 342. On the day on which paragraph 313(a) comes into force, subsection 8(1) of the Budget Implementation Act, 1997 is replaced by the following: Canada Not-for-profit Corporations Act 8. (1) The Canada Not-for-profit Corporations Act does not apply to the foundation. 343. On the day on which paragraph 313(a) comes into force, subsection 7(1) of the Budget Implementation Act, 1998 is replaced by the following: Canada Not-for-profit Corporations Act 7. (1) The Canada Not-for-profit Corporations Act does not apply to the Foundation. 344. On the day on which paragraph 313(a) comes into force, paragraph 3(3)(a) of the Canada Business Corporations Act is repealed. Organisations à 345. On the day on which paragraph 313(a) comes into force, the portion of subsection 268(6) of the Canada Business Corporations Act before paragraph (a) is replaced by the following: Discretionary continuance (6) The Governor in Council may, by order, require that a body corporate incorporated by or under an Act of Parliament to which the Canada Not-for-profit Corporations Act does not apply, apply for a certificate of continuance under section 187 within any period that may be prescribed except for the following: 346. On the day on which paragraph 313(a) comes into force, subsection 268(10) of the Canada Business Corporations Act is replaced by the following: Continuance prohibited (10) A body corporate to which the Canada Not-for-profit Corporations Act applies or any similar body corporate incorporated otherwise than by or under an Act of Parliament may not apply for a certificate of continuance under section 187. 347. On the day on which paragraph 313(a) comes into force, subsection 3(4) of the Canada Cooperatives Act is replaced by the following: Non-application of certain Acts (4) No provision of the Canada Business Corporations Act, the Canada Not-for-profit Corporations Act or the Winding-up and Restructuring Act applies to a cooperative. 348. On the day on which paragraph 313(a) comes into force, subsection 3(5) of the Canada Employment Insurance Financing Board Act is replaced by the following: Canada Not-for-profit Corporations Act (5) The Canada Not-for-profit Corporations Act does not apply to the Board. 349. On the day on which paragraph 313(a) comes into force, subsection 8(3) of the Canada Foundation for Sustainable Development Technology Act is replaced by the following: 170 Canada Not-for-profit Corporations Act C. 23 Canada Not-for-pr (3) The Canada Not-for-profit Corporations Act does not apply to the Foundation. 350. On the day on which paragraph 313(a) comes into force, subsection 35(1) of the Canada Foundation for Sustainable Development Technology Act is replaced by the following: Designation by Governor in Council 35. (1) The Governor in Council may, by order, designate, for the purposes of this Act, any corporation incorporated under the Canada Not-for-profit Corporations Act. 351. On the day on which paragraph 313(a) comes into force, subsection 34(2) of the Canadian Payments Act is replaced by the following: Exemption from Canada Not-for-profit Corporations Act (2) The Canada Not-for-profit Corporations Act does not apply to the Association. 352. On the day on which paragraph 313(a) comes into force, subsection 23(2) of the Cree-Naskapi (of Quebec) Act is replaced by the following: Canada Not-for-profit Corporations Act (2) The Canada Not-for-profit Corporations Act does not apply to a band. 353. On the day on which paragraph 313(a) comes into force, section 7.4 of the Financial Administration Act is replaced by the following: Regulations 7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act and the Canada Not-for-profit Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation. 354. On the day on which paragraph 313(a) comes into force, subsection 66(1) of the First Nations Fiscal and Statistical Management Act is replaced by the following: 2009 Canada Not-for-profit Corporations Act Organisations à 66. (1) The Canada Not-for-profit Corporations Act does not apply to the Authority. 355. On the day on which paragraph 313(a) comes into force, subsection 15(1) of the Green Shield Canada Act is replaced by the following: Canada Not-for-profit Corporations Act 15. (1) The Canada Not-for-profit Corporations Act does not apply to the Association. 356. On the day on which paragraph 313(a) comes into force, section 8 of the Mackenzie Gas Project Impacts Act is replaced by the following: Canada Not-for-profit Corporations Act 8. The Canada Not-for-profit Corporations Act does not apply to the Corporation. 357. On the day on which paragraph 313(a) comes into force, subsection 31(3) of the Physical Activity and Sport Act is replaced by the following: Canada Not-for-profit Corporations Act not applicable (3) The Canada Not-for-profit Corporations Act does not apply to the Centre. 358. On the day on which paragraph 313(a) comes into force, subsection 3(5) of the Public Sector Pension Investment Board Act is replaced by the following: Canada Not-for-profit Corporations Act (5) The Canada Not-for-profit Corporations Act does not apply to the Board. 359. On the day on which paragraph 313(a) comes into force, section 25 of the United Grain Growers Act is replaced by the following: Acts not applicable to the company 25. No provision of the Canada Not-forprofit Corporations Act or the Winding-up and Restructuring Act applies to the company. 2008, c. 28 360. (1) In this section, “other Act” means the Budget Implementation Act, 2008. C. 23 Canada Not-for-pr (2) If section 95 of the other Act comes into force before section 308 of this Act, then that section 308 and the heading before it are repealed. (3) If section 95 of the other Act and section 308 of this Act come into force on the same day, then that section 308 is deemed to have come into force before that section 95. REPEALS Repeal 361. An Act to change the name of “The Bytown Consumers Gas Company,” and to confirm, amend and extend their corporate powers, under the name of “The Ottawa Gas Company.”, chapter LXXXVIII of the Statutes of the Province of Canada, 1865, is repealed. Repeal 362. An Act to incorporate the Canada Atlantic Cable Company, chapter 96 of the Statutes of Canada, 1873, is repealed. Repeal 363. An Act to amend the Act incorporating “The Ottawa Gas Company,” to confirm a resolution of their Shareholders placing preferential and ordinary stock on the same footing, and to confirm, amend and extend their corporate powers, chapter 71 of the Statutes of Canada, 1876, is repealed. Repeal 364. An Act to incorporate the Bonaventure and Gaspé Telephone Company, Limited, chapter 64 of the Statutes of Canada, 1907, is repealed. Repeal 365. An Act to incorporate The British American Pipe Line Company, chapter 27 of the Statutes of Canada, 1949, is repealed. Repeal 366. An Act to incorporate Western Pipe Lines, chapter 38 of the Statutes of Canada, 1949, is repealed. Repeal 367. An Act to incorporate Ogdensburg Bridge Authority, chapter 57 of the Statutes of Canada, 1952, is repealed. Organisations à Repeal 368. An Act to incorporate Petroleum Transmission Company, chapter 76 of the Statutes of Canada, 1955, is repealed. Repeal 369. An Act to incorporate Trans-Border Pipeline Company Ltd., chapter 79 of the Statutes of Canada, 1955, is repealed. Repeal 370. An Act to incorporate Cabri Pipe Lines Ltd., chapter 44 of the Statutes of Canada, 1967-68, is repealed. Repeal 371. An Act to incorporate Vawn Pipe Lines Ltd., chapter 47 of the Statutes of Canada, 1967-68, is repealed. COMING INTO FORCE Order in council Canada Pension Plan Investment Board Act 372. (1) Subject to subsection (2), the provisions of this Act, other than subsections 297(2) to (4), (6) and (7) and sections 341 to 360, come into force on a day or days to be fixed by order of the Governor in Council. (2) Subsections 317(1) and (2) come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 7 An Act to amend the Indian Oil and Gas Act ASSENTED TO 14th MAY, 2009 BILL C-5 SUMMARY This enactment amends the Indian Oil and Gas Act to clarify and expand the existing regulation-making powers and to add new ones, particularly with respect to licences, permits and leases for the exploration and exploitation of oil and gas on reserve lands and the determination and payment of oil and gas royalties. It also puts in place sanctions for contraventions of the Act as well as provisions for its enforcement. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 7 An Act to amend the Indian Oil and Gas Act [Assented to 14th May, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. I-7 INDIAN OIL AND GAS ACT 1999, c. 31, s. 137(E) 1. The heading before section 2 and sections 2 to 5 of the Indian Oil and Gas Act are replaced by the following: INTERPRETATION AND APPLICATION Definitions “approval” « approbation » “condensate” « condensat » “contract” « contrat » 2. (1) The following definitions apply in this Act. “approval”, in relation to the council of a first nation, means approval evidenced by a written resolution of the council or, if the council has delegated its authority to any individual or corporation, approval in writing signed by that individual or by an individual authorized to sign for that corporation. “condensate” means a liquid mixture, consisting mainly of pentanes and heavier hydrocarbons, that is condensed from natural gas and that can be recovered at a well. “contract” means a licence, permit, lease or other instrument that confers a surface or subsurface right or interest in first nation lands, or an option to acquire such a permit or lease, that is granted under this Act for the purpose of oil or gas exploration or exploitation. 2 “council” « conseil » “exploitation” « exploitation » “exploration” « exploration » C. 7 Indian Oil “council”, in relation to a first nation, has the same meaning as the expression “council of the band” in the Indian Act. “exploitation”, in relation to oil and gas, means the drilling or testing of a well or production, recovery or subsurface storage, and includes the injection of a substance into an oil or gas reservoir and the subsurface disposal of a substance, but does not include refining. “exploration” means any operation to assess the geological conditions of the subsurface for the presence of oil or gas or any activity connected with such assessment, including the drilling of a test hole to a depth no greater than that prescribed by regulation. “first nation” « première nation » “first nation” means a band within the meaning of the Indian Act. “first nation lands” « terres de la première nation » “first nation lands” means (a) reserve lands that have been surrendered, other than absolutely, under the Indian Act for a purpose that includes oil or gas exploration or exploitation; (b) lands that have been absolutely surrendered under the Indian Act but not sold; (c) subsurface rights and interests in lands that have been absolutely surrendered under the Indian Act and of which only the surface rights and interests have been sold; or (d) rights and interests in reserve lands that have been granted to Her Majesty in right of Canada for oil or gas exploration or exploitation pursuant to a land code adopted under the First Nations Land Management Act. “first nation member” « membre de la première nation » “gas” « gaz » “inspector” « inspecteur » “first nation member”, in relation to a first nation, means a person whose name appears on the band list of the first nation or who is entitled to have their name appear on that list. “gas” means natural gas — including natural gas from a coal bed — that can be recovered from a well or any component of it, including condensate and marketable gas. “inspector” means an inspector designated under section 8. 2009 “lawful possession” « possession légale » “Minister” « ministre » “oil” « pétrole » “operator” « exploitant » Delegation by council Amounts owing Pétrole et gaz des “lawful possession”, in relation to first nation lands, means “lawful possession” within the meaning of subsection 20(1) or section 22 of the Indian Act. “Minister” means the Minister of Indian Affairs and Northern Development. “oil” means a mixture of hydrocarbons that can be recovered from a well in liquid form, with the exception of condensate. “operator” means a person who is engaged in exploration for or exploitation of oil or gas situated in first nation lands. (2) The council of a first nation may by written resolution delegate to any person any power of the council, or any right of the council to be consulted or notified, under this Act. (3) For the purposes of this Act, (a) a reference to payment of a royalty means payment of an amount equal to the value of the royalty or, if required by or under the regulations, payment of the royalty in kind; and (b) a reference to an amount owing includes the value of a royalty that is owing. Pooled oil or gas (4) A reference in this Act to oil or gas recovered from first nation lands includes oil or gas that is attributed to those lands under regulations made pursuant to paragraph 4.1(1)(s). Instruments under other Acts 3. (1) Any licence, permit, lease or other instrument granted under any other Act of Parliament for the purpose of exploration for or exploitation of oil or gas situated in first nation lands — other than an instrument granted under the First Nations Oil and Gas and Moneys Management Act or an instrument granted to a person other than Her Majesty in right of Canada under the First Nations Land C. 7 Indian Oil Management Act — is subject to this Act as if the instrument were a contract granted under this Act. Excluded lands (2) The Governor in Council may, by regulation, exclude from the application of this Act any first nation lands that, in the Governor in Council’s opinion, contain crude bitumen that is capable of being recovered by mining. ROYALTIES Royalties 4. (1) Despite the provisions of any contract but subject to subsection (2), whenever oil or gas is recovered from first nation lands, there is reserved to Her Majesty in right of Canada in trust for the first nation concerned a royalty consisting of the share of the oil or gas determined under the regulations, which the contract holder shall pay to Her Majesty in right of Canada in trust for the first nation in accordance with the regulations. Special agreements (2) The Minister may, with the approval of the council of a first nation, enter into a special agreement with any person, for any period and subject to any conditions set out in the agreement, for a reduction or increase in the royalty otherwise payable under subsection (1) or a variation in the method of determining that royalty. REGULATIONS Regulations 4.1 (1) The Governor in Council may make regulations respecting exploration for and exploitation of oil or gas situated in first nation lands, including regulations (a) respecting contracts and classes of contracts, including regulations in relation to (i) the granting, amendment, renewal, assignment and consolidation of contracts, (ii) the terms and conditions of contracts and the rights and obligations of contract holders, and (iii) the determination of rents or other amounts payable in respect of contracts, including by means of arbitration; Pétrole et gaz des (b) respecting the suspension and cancellation of contracts, and authorizing the Minister to suspend or cancel contracts in specified circumstances; (c) respecting the surrender of rights and interests under contracts, subject to any conditions that the Minister may specify; (d) respecting the conversion of contracts from one class to another or the continuation of contracts, subject to any conditions that the Minister may specify, and authorizing the Minister to convert or continue a contract when the Minister is satisfied that conditions specified by regulation have been met; (e) respecting the determination of the quantity or quality of oil or gas recovered under a contract; (f) respecting the determination of the value of oil or gas recovered under a contract, including its determination where oil or gas is the subject of a transaction between related parties and, for that purpose, defining “related parties”; (g) respecting royalties on any class of oil or gas recovered from first nation lands, including regulations (i) determining the share of oil or gas that constitutes a royalty and determining the value of that royalty, (ii) prescribing the costs and allowances that may be taken into account in determining the royalty or the value of the royalty, (iii) respecting the payment of royalties in cash or in kind, and authorizing the Minister to direct payment of a royalty in kind, (iv) specifying the circumstances in which the payment of a royalty is waived on oil or gas that is consumed as fuel in drilling for, producing, recovering, treating or processing oil or gas, (v) respecting the sale or other disposition of the share of oil or gas that constitutes a royalty, and C. 7 Indian Oil (vi) respecting the assessment by the Minister of royalties owing by a contract holder; (h) respecting the payment of interest on amounts owing under this Act and establishing the rate of interest or the manner of determining it, including the application of compound interest; (i) specifying the circumstances in which a compensatory royalty is payable and prescribing the amount of the royalty or the manner of determining it; (j) respecting the order in which payments received in respect of a contract will be applied towards royalties, rents, interest, penalties or other amounts owing by the contract holder; (k) respecting the security to be provided for the performance of obligations under this Act or a contract, including the amount of the security or the manner of determining the amount, and specifying the circumstances and manner in which it will be returned or realized; (l) prescribing measures that contract holders may be required to take when the Minister determines that there is a risk of drainage of oil or gas by a well outside a contract area, whether the well is in or outside first nation lands; (m) authorizing the Minister in specified circumstances to order the submission of plans for the exploitation of oil or gas situated in first nation lands, respecting the content of such plans and their approval by the Minister, requiring contract holders to comply with plans approved by the Minister and authorizing the Minister to order the modification of such plans; (n) respecting surveys of first nation lands for the purposes of this Act and authorizing the Minister to require surveys to be carried out in prescribed circumstances; (o) respecting the keeping, or the submission to the Minister or the council of a first nation, of documents and information related to the administration of this Act or the regulations Pétrole et gaz des by contract holders, operators, persons whose rights have been combined with those of a contract holder pursuant to regulations made under paragraph (s) or persons who have acquired oil or gas recovered from first nation lands or a right to such oil or gas, and authorizing the Minister on application to vary the location at which any such documents or information are to be kept; (p) respecting audits and examinations of documents and information referred to in paragraph (o) by first nations pursuant to agreements with the Minister, for the purpose of verifying the royalties payable on oil or gas recovered from first nation lands; (q) respecting inspections, by persons authorized by a written resolution of a first nation council, of facilities and operations on first nation lands that are related to exploration for or exploitation of oil or gas, in order to monitor compliance with this Act and the regulations; (r) respecting the confidentiality of and access to information obtained under this Act; (s) respecting the combining, with the approval of the Minister, of rights to oil or gas under a contract with rights to oil or gas under another contract, or with rights to oil or gas situated outside first nation lands, for the purpose of the joint exploitation of oil or gas, the prevention of waste or the sharing of oil or gas; (t) respecting the abandonment of oil and gas wells or their conversion to uses incidental to the exploitation of oil or gas, and authorizing the Minister to approve such abandonments or conversions; (u) establishing fees payable by individuals, corporations, partnerships or trusts in relation to contracts or for services provided in the administration of this Act; (v) requiring, to the extent that it is practicable and reasonably efficient, safe and economical to do so, an operator to employ persons who are resident on reserves that C. 7 Indian Oil include first nation lands on which the exploration or exploitation is being conducted; (w) specifying powers of the Minister that may only be exercised following notice or a hearing and prescribing the manner of giving notice, the content of notices and the procedure governing hearings; (x) respecting the protection of the environment from the effects of exploration for or exploitation of oil or gas situated in first nation lands, respecting environmental audits and authorizing the Minister to require such audits to be carried out in specified circumstances at the expense of contract holders; (y) respecting the conservation and equitable production of oil or gas situated in first nation lands; and (z) generally for carrying out the purposes of this Act. Provincial variations (2) Regulations made under subsection (1) may vary from province to province. Incorporation by reference 4.2 (1) Regulations made under subsection 4.1(1) — other than regulations made under paragraphs 4.1(1)(a) to (d), (f) to (r), (v) and (w) — may incorporate by reference laws of a province as amended from time to time, with any adaptations that the Governor in Council considers appropriate. Powers of provincial officials and bodies (2) Regulations incorporating laws of a province may confer any power or impose any duty that the Governor in Council considers necessary on any provincial official or body, to be exercised or performed on behalf of the federal government in the same circumstances Pétrole et gaz des and subject to the same conditions as those governing the exercise of that power or the performance of that duty under the laws of the province. Agreement with province (3) The Minister may enter into an agreement with the government of a province, or with a public body established by the laws of a province, respecting the administration or enforcement on first nation lands of any laws of the province that are incorporated by the regulations, including the exchange of information related to administration and enforcement of those laws. Inconsistency with regulations under other Acts (4) Regulations made under any other Act of Parliament prevail over laws of a province that are incorporated by the regulations made under this Act to the extent of any inconsistency, unless the incorporating regulations provide otherwise. Review by provincial courts (5) Unless the regulations provide otherwise, where a power is conferred or a duty is imposed by laws of a province that are incorporated by the regulations, the exercise of that power or the performance of that duty is subject to review by, or appeal to, the courts of the province in the same manner and to the same extent as if the laws of the province applied of their own force. Moneys (6) Unless otherwise provided by the regulations, moneys collected by a provincial official or body under laws of a province that are incorporated by the regulations are not Indian moneys for the purposes of the Indian Act or public money for the purposes of the Financial Administration Act. Immunity — acts or omissions (7) In respect of an act or omission occurring in the exercise of a power or the performance of a duty by a provincial official or body under laws of a province that are incorporated by the regulations, the official or body exercising that power or performing that duty is entitled, unless the regulations provide otherwise, to the same limits on liability, defences and immunities as those that would apply under the laws of the province to an official or body exercising a like power or performing a like duty. C. 7 Inconsistency with first nation laws 4.3 Regulations made under this Act prevail over any by-laws or other laws made by a first nation under another Act of Parliament to the extent of any inconsistency between them, unless otherwise provided by regulations made under this Act. Indian Oil GENERAL Powers of Minister 5. (1) The Minister may (a) order the suspension of exploration for or exploitation of oil or gas situated in first nation lands or order a contract holder or operator to take remedial action if, in the Minister’s opinion, the exploration or exploitation (i) presents a danger to property, risks the wasting of oil or gas or risks disturbing or damaging an oil or gas reservoir, the surface of land or the environment, or (ii) presents a risk of harm to a site of palaeontological, archaeological, ethnological or historical significance or to a site that is of cultural, spiritual or ceremonial importance to the first nation; (b) authorize the resumption of any exploration or exploitation suspended under paragraph (a) if, in the Minister’s opinion, the danger or risk no longer exists and if any remedial action ordered has been taken to the Minister’s satisfaction; (c) despite the regulations, where lands have been set apart as a reserve for purposes of the implementation of an agreement for the settlement of land claims arising under a treaty, grant a contract that includes terms and conditions similar to those that were in effect in respect of those lands immediately before they were set apart as a reserve; (d) fix a later time for a person to do anything under this Act or under a contract, even though the original time for doing it has passed, if the Minister is satisfied that a delay is or was unavoidable and that an extension would not prejudice any other person; and (e) prescribe any forms that are necessary for the purposes of this Act. Pétrole et gaz des Conditions (2) In exercising a power under subsection (1), the Minister may impose any conditions that the Minister considers appropriate. Limitation period 5.1 (1) Without limiting any other right or remedy available to the Minister, the Minister may commence an action to collect an amount owing to Her Majesty in right of Canada under this Act — and any interest owing on the amount — within 10 years after the end of the calendar year in which the amount became owing. Exception — fraud, misrepresentation (2) Despite subsection (1), the Minister may commence an action at any time to collect an amount owing to Her Majesty in right of Canada under this Act that was unpaid by reason of fraud or because of a misrepresentation that is attributable to neglect, carelessness or wilful default, together with any interest owing on that amount. 2. Section 6 of the Act is amended by adding the following after subsection (1): Approval or notice (1.1) The Governor in Council may, by regulation, (a) require that a power of the Minister under this Act in relation to first nation lands be exercised only if prior approval of the council of the first nation is obtained, if the council is first consulted or if prior notice is given to the council, as the case may be; (b) require that any such power of the Minister be exercised only if prior consent is given by any first nation member who is in lawful possession of the first nation lands; and (c) require that notice be given to the council of the first nation after the Minister exercises any such power. 3. The Act is amended by adding the following after section 6: C. 7 Canada Labour Code 7. This Act does not affect the application of the Canada Labour Code. Indian Oil INSPECTION, AUDIT AND EXAMINATION Designation of inspectors 8. (1) The Minister may designate any person as an inspector for the purpose of verifying compliance with this Act and the regulations. Certificate (2) The Minister shall provide every inspector with a certificate of designation, which the inspector shall, on request, show to the person appearing to be in charge of a place being inspected. Inspection on first nation lands 9. (1) An inspector and any person accompanying an inspector may, at any reasonable time, enter and inspect any place on first nation lands, other than a dwelling-place, if the inspector has reasonable grounds to believe that an activity to which this Act applies is being carried on, or has been carried on, in that place. Outside first nation lands (2) An inspector and any person accompanying an inspector may at any reasonable time, for the purpose of verifying the quantity or quality of oil or gas recovered from first nation lands or the amount of any costs or allowances prescribed under subparagraph 4.1(1)(g)(ii), enter and inspect any place outside first nation lands where such oil or gas is handled, treated or processed or its volume measured. Powers of inspectors (3) An inspector conducting an inspection of a place and any person accompanying the inspector may (a) examine anything found in the place that is used in exploration for or exploitation of oil or gas, or observe any operation in the place that is related to such exploration or exploitation; (b) take samples of anything relevant to the administration of this Act or the regulations and dispose of them afterwards; (c) conduct any tests or take any measurements; Pétrole et gaz des (d) examine any documents or information found in the place that the inspector has reasonable grounds to believe are relevant to the administration of this Act or the regulations and copy the documents or information, take extracts from them or require any person in the place to provide copies of them; (e) use or equipment documents purpose of cause to be used any copying at the place to reproduce such and remove the copies for the examination; (f) take photographs and make sketches or video recordings; (g) use or cause to be used any computer system or data processing system at the place to search and examine any data contained in or available to the system; (h) obtain, in the form of a printout or other output, a copy of any data referred to in paragraph (g) that the inspector has reasonable grounds to believe are relevant to the administration of this Act or the regulations, and remove it for the purpose of examination; and (i) require any person present in the place to accompany the inspector during the inspection and require that person to answer all proper questions and to give the inspector all reasonable assistance. Audits and examinations 10. (1) A person authorized by the Minister to do so may, at any reasonable time, (a) enter any place where a business is carried on, other than a dwelling-place, in which the person has reasonable grounds to believe that there are documents or information required to be kept under the regulations; and (b) conduct an audit or examination of any documents or information found in the place that the person has reasonable grounds to believe are relevant to the administration of this Act or the regulations. Powers of authorized persons (2) A person conducting an audit or examination under subsection (1) may (a) copy or take extracts of documents or information referred to in paragraph (1)(b); C. 7 Indian Oil (b) use or cause to be used any copying equipment at the place to reproduce any such documents and remove the copies for the purposes of the audit or examination; (c) use or cause to be used any computer system or data processing system at the place to search and examine any data contained in or available to the system; (d) obtain, in the form of a printout or other output, a copy of any data referred to in paragraph (c) that the person has reasonable grounds to believe are relevant to the administration of this Act or the regulations, and remove it for the purposes of the audit or examination; and (e) require any person present in the place to remain there during the audit or examination and require that person, or any other person having control of such documents or information, to answer all proper questions and to give all reasonable assistance to the authorized person. Persons accompanying (3) Subject to any conditions prescribed by the regulations, a person conducting an audit or examination under subsection (1) may be accompanied by any person so authorized by the Minister. Demand to produce documents 11. The Minister may, for the purposes of an audit or examination, order any person who is required by the regulations to keep documents or information to produce — at the place, within the time and in the manner specified by the Minister — any document or information that the Minister has reasonable grounds to believe is relevant to the administration of this Act or the regulations. Compliance order 12. (1) A judge may, on application, order a person to provide to the Minister, an inspector or a person conducting an audit or examination any access, assistance, document or information that the person was required or ordered to provide under section 9, 10 or 11, unless — in the case of a document or information — the Pétrole et gaz des document or information is protected from disclosure by the privilege between legal advisers and their clients. Conditions (2) The judge making an order under subsection (1) may impose any conditions in respect of the order that the judge considers appropriate. Contempt of court (3) If a person fails or refuses to comply with an order under subsection (1), a judge may find the person in contempt of court and the person is subject to the processes and the punishments of the court to which the judge is appointed. Appeal (4) An order by a judge under subsection (1) may be appealed to a court having appellate jurisdiction over decisions of the court to which the judge is appointed, but an appeal does not suspend the execution of the order unless it is so ordered by a judge of the appellate court. Definition of “judge” (5) In this section, “judge” means a judge of a superior court of the province in which the matter arises or a judge of the Federal Court. Prohibition 13. (1) No person shall interfere with or obstruct any person doing anything the person is authorized to do under this Act. Compliance (2) Every person shall, unless unable to do so, do everything that the person is required to do under subsection 9(3) or 10(2) or section 11. SEARCH AND SEIZURE Designation of enforcement officers 14. (1) The Minister may designate any person as an enforcement officer for the purpose of enforcing this Act and the regulations. Public officer (2) For greater certainty, an enforcement officer is a public officer for the purposes of sections 487, 487.11 and 489 of the Criminal Code. Certificate (3) The Minister shall provide every enforcement officer with a certificate of designation, which the officer shall, on request, show to the person appearing to be in charge of a place being searched. C. 7 Indian Oil DELEGATION Ministerial powers 15. Without derogating from paragraph 24(2)(d) of the Interpretation Act in relation to any other power of the Minister under this Act, the Minister may delegate in writing any of the Minister’s powers under subsections 8(1), 10(1) and (3) and 14(1) to any person employed in the Department of Indian Affairs and Northern Development. UNAUTHORIZED EXPLORATION AND EXPLOITATION Prohibition 16. No person shall explore for or exploit oil or gas situated in first nation lands except as authorized by or under this Act. OFFENCES AND PUNISHMENT Offence 17. (1) A person who contravenes any provision of this Act or the regulations, other than a provision in relation to the payment of royalties or other amounts, or who fails to do anything ordered by the Minister under this Act, is guilty of an offence punishable on summary conviction and liable to a fine not exceeding $100,000. False information (2) A person who provides information under this Act, knowing that it is false or misleading, or who knowingly misrepresents or fails to disclose a material fact, is guilty of an offence punishable on summary conviction and liable to a fine not exceeding the greater of $100,000 and any amount that was not paid by reason of the commission of the offence. Continuing offences 18. (1) When an offence under this Act is committed on more than one day or is continued for more than one day, it is deemed to be a separate offence for each day on which it is committed or continued. Officers, etc., of corporations (2) Any officer, director or agent of a corporation who directed, authorized, assented to, acquiesced in or participated in the commission of an offence by the corporation under this Pétrole et gaz des Act is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted. Offences by employees or agents (3) In the prosecution of a corporation for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the corporation, whether or not the employee or agent is identified or prosecuted. Exception to defence (4) Subsection (3) does not apply to a corporation that establishes that it exercised due diligence to prevent the commission of the offence. Time limit 19. (1) No prosecution for an offence under this Act may be commenced later than two years after the day on which the Minister became aware of the facts giving rise to the offence or later than 10 years after the day on which the offence was committed, whichever is earlier. Time limit — Contraventions Act (2) No proceedings may be commenced under the Contraventions Act in respect of an offence under this Act later than two years after the day on which the offence was committed. Compensation for loss of property 20. (1) When a person has been convicted of an offence for the contravention of section 16 in relation to oil or gas exploration, the drilling or testing of a well or the recovery of oil or gas, the convicting court may, at the time sentence is imposed and on the application of Her Majesty in right of Canada or the first nation affected, order the offender to pay to Her Majesty in right of Canada for the benefit of the first nation an amount by way of compensation for any ensuing loss of oil or gas suffered by the first nation or any ensuing reduction in the value of first nation lands. Enforcement (2) If compensation is not paid within 60 days after the issuance of an order under subsection (1), the applicant may, by filing the order, enter the amount of the compensation as a judgment in the superior court of the province in which the trial was held, and that judgment is C. 7 Indian Oil enforceable against the offender in the same manner as if it were a judgment rendered against the offender by that court in civil proceedings. Appeal rights (3) An order may not be filed under subsection (2) until all rights of the offender to appeal the conviction are exhausted. ADMINISTRATIVE MONETARY PENALTIES Regulations 21. (1) The Governor in Council may make regulations (a) designating any provision of this Act or the regulations as a provision whose contravention is a violation that may be proceeded with under sections 22 to 28; (b) prescribing for each violation a penalty not exceeding $10,000; (c) respecting the service of documents authorized or required to be served under sections 22 to 28, including their manner and proof of service and the circumstances under which documents are deemed to be served; (d) prescribing the manner of making representations to the Minister under section 23; and (e) generally, for carrying out the purposes and provisions of this section and sections 22 to 28. Commission of violation (2) The contravention of any provision that is designated under paragraph (1)(a) constitutes a violation and the person who commits the violation is liable to the penalty prescribed by the regulations. Continuing violation (3) A violation that is continued on more than one day constitutes a separate violation for each day on which it is continued, but the cumulative penalty imposed for those violations shall not exceed $10,000. Manner of proceeding (4) A contravention of a provision designated under paragraph (1)(a) may be proceeded with either as a violation or as an offence, but proceeding with it in one manner precludes proceeding in the other. Pétrole et gaz des Notice of violation 22. (1) When the Minister believes on reasonable grounds that a person has committed a violation, the Minister may issue a notice of violation and cause it to be served on the person. Contents of notice (2) A notice of violation must name the person believed to have committed the violation, identify the violation and notify the person (a) of the penalty prescribed for the violation by the regulations; (b) that the person may, within 30 days after the day on which the notice is served — or within any longer period specified by the regulations — pay the penalty or make representations to the Minister in respect of the violation; (c) that, if the person does not pay the penalty or make representations in accordance with the regulations, the person will be deemed to have committed the violation and will be liable for the penalty; and (d) that, if the person pays the penalty specified in the notice of violation, the person will be deemed to have committed the violation and proceedings in respect of it will be ended. Payment of penalty 23. (1) A person served with a notice of violation who pays the penalty specified in the notice is deemed to have committed the violation, and proceedings in respect of the violation are ended. Representations to Minister (2) A person served with a notice of violation may, in accordance with the regulations, make representations to the Minister in respect of the violation within 30 days after the day on which the notice of violation is served — or within any longer period specified by the regulations — in which case the Minister shall determine on a balance of probabilities whether the person committed the violation. Notice of decision (3) The Minister shall issue and cause to be served on a person referred to in subsection (2) a notice of any decision made under that subsection, and the notice shall inform the person of their right, if any, to appeal the decision under section 24. C. 7 Failure to make representations (4) A person who does not make representations in accordance with the regulations within 30 days after the day on which the notice of violation is served — or within any longer period specified by the regulations — is deemed to have committed the violation. Payment of penalty (5) Where the Minister determines that a person has committed a violation, or where a person is deemed by subsection (4) to have committed one, the person shall pay the penalty specified in the notice of violation. Right of appeal 24. (1) A person who is determined by the Minister to have committed a violation may, within 30 days after the day on which the notice of that decision is served, appeal the decision to the Federal Court. Powers of Court (2) On an appeal, the Federal Court may confirm or set aside the decision of the Minister. Debts to Her Majesty 25. (1) A penalty constitutes a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction. Certificate of default (2) In case of default of payment of any part of a debt referred to in subsection (1), the Minister may issue a certificate of default attesting to the amount unpaid. Registration in Federal Court (3) Registration in the Federal Court of a certificate of default has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs. Violations not offences 26. For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation. Evidence 27. A notice of violation purporting to be issued under subsection 22(1), a notice of decision purporting to be issued under subsection 23(3) or a certificate of default purporting to be issued under subsection 25(2) is admissible in evidence in a proceeding in respect of a violation without proof of the signature or official character of the person appearing to have signed it. Indian Oil Pétrole et gaz des Time limit 28. (1) No notice of violation may be issued later than two years after the day on which the Minister became aware of the facts giving rise to the violation. Certificate of Minister (2) A document appearing to have been issued by the Minister, certifying the day on which the Minister became aware of the facts giving rise to a violation, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is, in the absence of evidence to the contrary, proof of the matter asserted in it. REPORT TO PARLIAMENT Report 28.1 At least every two years after the coming into force of the present section, the Minister shall prepare a report on the administration of this Act during the two preceding years and shall table a copy of the report in each House of Parliament within the first fifteen days that it is sitting after the completion of the report, which shall include a summary addressing the following matters: (a) the progress of the consultations mentioned in paragraph 6(1.1)(a) and a list of concerns raised during such consultations; (b) any proposed regulation to be made under subsection 6(1.1); and (c) any regulations made under this Act and describe any variations in the regulations from province to province. TRANSITIONAL Prior amounts owing 29. If any amount is owing under this Act on the day on which this section comes into force, section 5.1 applies in respect of that amount and to any interest owing on it whether or not its recovery was previously barred by an Act of Parliament or a law of a province. COMING INTO FORCE Order in council 4. This Act comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 6 An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation ASSENTED TO 29th APRIL, 2009 BILL C-2 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation”. SUMMARY This enactment implements the Free Trade Agreement and the bilateral agreements between Canada and the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation signed at Davos on January 26, 2008. The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Free Trade Agreement or the bilateral agreements themselves, without the consent of the Attorney General for Canada. Part 1 of the enactment approves the Free Trade Agreement and the bilateral agreements and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Free Trade Agreement and the power of the Governor in Council to make orders for carrying out the provisions of the enactment. Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement and the bilateral agreements. Part 3 of the enactment provides for its coming into force. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO IMPLEMENT THE FREE TRADE AGREEMENT BETWEEN CANADA AND THE STATES OF THE EUROPEAN FREE TRADE ASSOCIATION (ICELAND, LIECHTENSTEIN, NORWAY, SWITZERLAND), THE AGREEMENT ON AGRICULTURE BETWEEN CANADA AND THE REPUBLIC OF ICELAND, THE AGREEMENT ON AGRICULTURE BETWEEN CANADA AND THE KINGDOM OF NORWAY AND THE AGREEMENT ON AGRICULTURE BETWEEN CANADA AND THE SWISS CONFEDERATION SHORT TITLE 1. Canada–EFTA Free Trade Agreement Implementation Act INTERPRETATION 2. Definitions 3. Interpretation consistent with agreements PURPOSE 4. Purpose HER MAJESTY 5. Binding on Her Majesty GENERAL 6. Causes of action under Part 1 7. Non-application of agreements to water 8. Construction PART 1 IMPLEMENTATION OF AGREEMENTS GENERALLY APPROVAL OF AGREEMENTS 9. Agreements approved ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 10. Representative on Joint Committee 11. Payment of expenditures 12. Administrative support i SUBCOMMITTEES AND WORKING GROUPS 13. Appointments to subcommittees and working groups 14. Costs ORDERS 15. Orders re Article 31 PART 2 RELATED AND CONSEQUENTIAL AMENDMENTS 16-22. Canadian International Trade Tribunal Act 23-29. Customs Act 30-37. Customs Tariff PART 3 COMING INTO FORCE 38. Order in council 57-58 ELIZABETH II —————— CHAPTER 6 An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation [Assented to 29th April, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Canada– EFTA Free Trade Agreement Implementation Act. INTERPRETATION Definitions “Agreement” « Accord » “bilateral agreement” « accord bilatéral » 2. (1) The definitions in this subsection apply in this Act. “Agreement” means the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), signed on January 26, 2008. “bilateral agreement” means (a) the Agreement on Agriculture between Canada and the Republic of Iceland, signed on January 26, 2008; (b) the Agreement on Agriculture between Canada and the Kingdom of Norway, signed on January 26, 2008; or C. 6 Canada–EFTA Free (c) the Agreement on Agriculture between Canada and the Swiss Confederation, signed on January 26, 2008. “EFTA state” « État de l’AELÉ » “EFTA state” means a member state of the European Free Trade Association, namely: (a) the Republic of Iceland; (b) the Principality of Liechtenstein; (c) the Kingdom of Norway; or (d) the Swiss Confederation. “federal law” « texte législatif fédéral » “federal law” means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament. “Joint Committee” « comité mixte » “Joint Committee” means the committee established pursuant to Article 26 of the Agreement. “Minister” « ministre » “Minister” means the Minister for International Trade. Publication of agreements (2) The Agreement and the bilateral agreements shall be published in the Canada Treaty Series. Interpretation consistent with agreements 3. For greater certainty, this Act, any provision of an Act enacted or amended by Part 2 and any other federal law that implements a provision of the Agreement or a bilateral agreement or fulfils an obligation of the Government of Canada under the Agreement or a bilateral agreement shall be interpreted in a manner consistent with the Agreement or bilateral agreement, as the case may be. PURPOSE Purpose 4. The purpose of this Act is to implement the Agreement and the bilateral agreements, the objectives of which, as elaborated more specifically through their provisions, are to (a) establish a free trade area in accordance with the Agreement and the bilateral agreements; (b) promote, through the expansion of reciprocal trade, the harmonious development of the economic relations between Canada and Accord de libre-écha the EFTA states in order to foster in Canada and in the EFTA states the advancement of economic activity; (c) provide fair conditions of competition affecting trade between Canada and the EFTA states; (d) establish a framework for further cooperation between Canada and the EFTA states in the light of developments in international economic relations, in particular with the aim of liberalizing trade in services and increasing investment opportunities; and (e) contribute, by the removal of barriers to trade, to the harmonious development and expansion of world trade. HER MAJESTY Binding on Her Majesty 5. This Act is binding on Her Majesty in right of Canada. GENERAL Causes of action under Part 1 6. (1) No person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of Part 1 or an order made under Part 1. Causes of action under agreements (2) No person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement or a bilateral agreement. Non-application of agreements to water 7. For greater certainty, nothing in this Act, the Agreement or the bilateral agreements applies to natural surface or ground water in liquid, gaseous or solid state. Construction 8. For greater certainty, nothing in this Act, by specific mention or omission, shall be construed to affect in any manner the right of Parliament to enact legislation to implement any provision of the Agreement or a bilateral agreement or fulfil any of the obligations of the Government of Canada under the Agreement or a bilateral agreement. C. 6 Canada–EFTA Free PART 1 IMPLEMENTATION OF AGREEMENTS GENERALLY APPROVAL OF AGREEMENTS Agreements approved 9. The Agreement and the bilateral agreements are approved. ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS Representative on Joint Committee 10. The Minister is the principal representative of Canada on the Joint Committee. Payment of expenditures 11. The Government of Canada shall pay its appropriate share of the aggregate of any expenditures incurred by or on behalf of the Joint Committee. Administrative support 12. The Minister shall designate an agency, division or branch of the Government of Canada to facilitate the operation of, and provide administrative assistance to arbitral tribunals established under, Chapter VIII of the Agreement. SUBCOMMITTEES AND WORKING GROUPS Appointments to subcommittees and working groups 13. The Minister may appoint any person to be a representative of Canada on the subcommittee referred to in Article 9 of the Agreement or on any subcommittee or working group established under Article 26 of the Agreement. Costs 14. The Government of Canada shall pay the costs of or its appropriate share of the costs of (a) the remuneration and expenses payable to members of arbitral tribunals, subcommittees and working groups; and (b) the general expenses incurred by arbitral tribunals, subcommittees and working groups. Accord de libre-écha 2009 ORDERS Orders re Article 31 15. (1) The Governor in Council may, for the purpose of suspending benefits or obligations in accordance with Article 31 of the Agreement, by order, do any one or more of the following: (a) suspend rights or privileges granted by Canada to an EFTA state or to goods of an EFTA state under the Agreement, a bilateral agreement or any federal law; (b) modify or suspend the application of any federal law enacted by Part 2, with respect to an EFTA state or to goods of an EFTA state; (c) extend the application of any federal law to an EFTA state or to goods of an EFTA state; and (d) take any other measure that the Governor in Council considers necessary for that purpose. Period of order (2) Unless revoked, an order made under subsection (1) has effect for the period specified in the order. PART 2 RELATED AND CONSEQUENTIAL AMENDMENTS R.S., c. 47 (4th Supp.) CANADIAN INTERNATIONAL TRADE TRIBUNAL ACT 2001, c. 28, s. 19(2) 16. Subsection 2(5) of the Canadian International Trade Tribunal Act is replaced by the following: Same meaning (4.1) In this Act, (a) “EFTA state” has the same meaning as in subsection 2(1) of the Canada–EFTA Free Trade Agreement Implementation Act; (b) “Iceland Tariff” means the rates of customs duty referred to in section 52.1 of the Customs Tariff; (c) “Norway Tariff” means the rates of customs duty referred to in section 52.2 of the Customs Tariff; and (d) “Switzerland–Liechtenstein Tariff” means the rates of customs duty referred to in section 52.3 of the Customs Tariff. C. 6 Goods imported from an EFTA state, a NAFTA country, Chile or Costa Rica (5) For the purposes of this Act, goods are imported from an EFTA state, from a NAFTA country, from Chile or from Costa Rica if they are shipped directly to Canada from the EFTA state, the NAFTA country, Chile or Costa Rica, as the case may be, within the meaning of sections 17 and 18 of the Customs Tariff. Canada–EFTA Free 17. The Act is amended by adding the following after section 19.013: Definition of “principal cause” 19.014 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Emergency measures — Iceland (2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Iceland Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report. Terms of reference (3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be. Tabling of report (4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report is so submitted. Notice of report (5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette. Definition of “principal cause” 19.015 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Accord de libre-écha Emergency measures — Norway (2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Norway Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report. Terms of reference (3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be. Tabling of report (4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report is so submitted. Notice of report (5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette. Definition of “principal cause” 19.016 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Emergency measures — Switzerland or Liechtenstein (2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Switzerland–Liechtenstein Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report. C. 6 Terms of reference (3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be. Tabling of report (4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report is so submitted. Notice of report (5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette. 2001, c. 28, s. 21 18. Section 21.1 of the Act is replaced by the following: Definition of “complaint” 21.1 In sections 23 to 30, “complaint” means a written complaint filed with the Tribunal under subsection 23(1), (1.01), (1.02), (1.03), (1.04), (1.05), (1.06), (1.07), (1.08), (1.09), (1.091) or (1.092) and, for the purposes of those subsections, a complaint is properly documented if the Tribunal is satisfied that it contains or is accompanied by the information required by section 23. Canada–EFTA Free 19. Section 23 of the Act is amended by adding the following after subsection (1.08): Filing of complaint — Iceland Tariff (1.09) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Iceland Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities and under such conditions as to alone constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods. Filing of complaint — Norway Tariff (1.091) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Norway Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Accord de libre-écha Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities and under such conditions as to alone constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods. Filing of complaint — SwitzerlandLiechtenstein Tariff (1.092) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Switzerland–Liechtenstein Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities and under such conditions as to alone constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods. 2001, c. 28, s. 23 20. Paragraph 25(2)(c) of the Act is replaced by the following: (c) in the case of a complaint filed under subsection 23(1.03), (1.06), (1.08), (1.09), (1.091) or (1.092), send to the Minister a copy of the complaint and the information examined by the Tribunal in making its determination. 21. Paragraph 26(1)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (i.8) and by adding the following after that subparagraph: (i.9) in the case of a complaint filed under subsection 23(1.09), the goods that are entitled to the Iceland Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, (i.91) in the case of a complaint filed under subsection 23(1.091), the goods that are entitled to the Norway Tariff are, as a result of that entitlement, being imported in C. 6 Canada–EFTA Free such increased quantities and under such conditions that they alone constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, (i.92) in the case of a complaint filed under subsection 23(1.092), the goods that are entitled to the Switzerland–Liechtenstein Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, or 22. Subsection 27(1) of the Act is amended by striking out the word “or” at the end of paragraph (a.8) and by adding the following after that paragraph: (a.9) in the case of a complaint filed under subsection 23(1.09), the goods that are entitled to the Iceland Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; (a.91) in the case of a complaint filed under subsection 23(1.091), the goods that are entitled to the Norway Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; (a.92) in the case of a complaint filed under subsection 23(1.092), the goods that are entitled to the Switzerland–Liechtenstein Tariff are, as a result of that entitlement, Accord de libre-écha being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; or R.S., c. 1 (2nd Supp.) CUSTOMS ACT 2001, c. 28, s. 26(1) 23. (1) The definitions “free trade agreement” and “free trade partner” in subsection 2(1) of the Customs Act are replaced by the following: “free trade agreement” « accord de libre-échange » “free trade agreement” means NAFTA, CCFTA, CCRFTA, CEFTA or CIFTA; “free trade partner” « partenaire de libre-échange » “free trade partner” means (a) a NAFTA country, (b) Chile, (c) Costa Rica, (d) Israel or another CIFTA beneficiary, or (e) an EFTA state; (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “CEFTA” « ALÉCA » “EFTA state” « État de l’AELÉ » “CEFTA” has the same meaning as “Agreement” in subsection 2(1) of the Canada–EFTA Free Trade Agreement Implementation Act; “EFTA state” has the same meaning as in subsection 2(1) of the Canada–EFTA Free Trade Agreement Implementation Act; “Iceland” « Islande » “Iceland” has the same meaning as in subsection 2(1) of the Customs Tariff; “Liechtenstein” « Liechtenstein » “Liechtenstein” has the same meaning as in subsection 2(1) of the Customs Tariff; “Norway” « Norvège » “Norway” has the same meaning as in subsection 2(1) of the Customs Tariff; C. 6 “Switzerland” « Suisse » “Switzerland” has the same meaning as in subsection 2(1) of the Customs Tariff; “preferential tariff treatment under CEFTA” « traitement tarifaire préferentiel de l’ALÉCA » Canada–EFTA Free “preferential tariff treatment under CEFTA” means, in respect of goods, entitlement to the rates of customs duty under the Customs Tariff in respect of one of the following tariffs: (a) the Iceland Tariff, (b) the Norway Tariff, or (c) the Switzerland–Liechtenstein Tariff; (3) Subsection 2(1.2) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) preferential tariff treatment under CEFTA. 1997, c. 14, s. 38 24. (1) The portion of paragraph 42.1(1)(a) of the Act before subparagraph (i) is replaced by the following: (a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement, other than CEFTA, is claimed (2) Section 42.1 of the Act is amended by adding the following after subsection (1): Method of verification under CEFTA (1.1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct a verification of origin of goods for which preferential tariff treatment under CEFTA is claimed by requesting in writing that the customs administration of the EFTA state of export conduct a verification and provide an opinion as to whether the goods are originating within the meaning of Annex C of CEFTA. 1997, c. 14, s. 38 (3) Subsection 42.1(2) of the Act is replaced by the following: Accord de libre-écha Withdrawal of preferential tariff treatment (2) If an exporter or producer of goods that are subject to a verification of origin under paragraph (1)(a) fails to comply with the prescribed requirements or, in the case of a verification of origin under subparagraph (1)(a)(i), does not consent to the verification of origin in the prescribed manner and within the prescribed time, preferential tariff treatment under a free trade agreement, other than CEFTA, may be denied or withdrawn from the goods. Withdrawal of preferential tariff treatment under CEFTA (3) Preferential tariff treatment under CEFTA may be denied or withdrawn from the goods (a) if the EFTA state of export fails to conduct a verification or provide an opinion as to whether the goods are originating; (b) if an officer or other person designated under subsection (1.1) is unable to determine whether the goods are originating; or (c) in any other prescribed circumstances. 25. Section 42.3 of the Act is amended by adding the following after subsection (4): Effect of detrimental reliance under CEFTA (5) If an exporter of goods from an EFTA state demonstrates, to the satisfaction of the Minister, that it has relied, in good faith and to its detriment, on a ruling made by the Agency or the customs administration of an EFTA state with respect to the tariff classification or value of a non-originating material used in the production of goods, a redetermination of origin by the Agency in respect of goods for which preferential tariff treatment under CEFTA is claimed shall apply only to importations of the goods made after the date of the redetermination. 2001, c. 28, s. 28; 2004, c. 16, s. 6(F) 26. Paragraph 43.1(1)(b) of the Act is replaced by the following: (b) in the case of goods exported from a NAFTA country, from Chile, from Costa Rica or from an EFTA state, any other matter concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA, in paragraph 1 of Article E-09 of CCFTA, in C. 6 Canada–EFTA Free paragraph 1 of Article V.9 or paragraph 10 of Article IX.2 of CCRFTA or in Article 28(2) of Annex C of CEFTA, as the case may be; and 27. Paragraph 74(1)(c.11) of the Act is replaced by the following: (c.11) the goods were imported from Costa Rica, from an EFTA state or from Israel or another CIFTA beneficiary but no claim for preferential tariff treatment under CCRFTA, CEFTA or CIFTA, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5); 28. The Act is amended by adding the following after section 97.2: Verification of origin on behalf of an EFTA state 97.201 (1) The customs administration of an EFTA state to which goods were exported may request in writing that the Agency conduct a verification and provide an opinion as to whether those goods are originating within the meaning of Annex C of CEFTA. Methods of verification (2) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct a verification of origin of goods referred to in subsection (1) (a) by entering any prescribed premises or place at any reasonable time; or (b) in any other prescribed manner. Statement of origin (3) On completion of a verification of origin requested under subsection (1), an officer or other person designated under subsection (2) shall (a) provide, in the prescribed manner, the customs administration of an EFTA state referred to in subsection (1) with the opinion Accord de libre-écha requested under that subsection and any relevant supporting documents that may be requested by that customs administration; and (b) determine whether the goods are originating within the meaning of Annex C of CEFTA. Notice requirement (4) The President shall without delay give notice of a decision made under paragraph (3)(b), including the rationale on which the decision is made, to the exporter or producer of the goods, as the case may be, subject to the verification of origin. Determination treated as redetermination (5) A determination made under paragraph (3)(b) is to be treated for the purposes of this Act as if it were a re-determination under paragraph 59(1)(a). 29. Section 164 of the Act is amended by adding the following after subsection (1.3): Regulations: CEFTA (1.4) The Governor in Council may, on the recommendation of the Minister, make regulations for the purpose of the uniform interpretation, application and administration of Chapter II and Annex C of CEFTA and any other matters that may be agreed on from time to time by the parties to CEFTA. 1997, c. 36 CUSTOMS TARIFF 30. Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order: “Canada–EFTA Free Trade Agreement” « Accord de libre-échange Canada–AELÉ » “Iceland” « Islande » “Canada–EFTA Free Trade Agreement” has the same meaning as “Agreement” in subsection 2(1) of the Canada–EFTA Agreement Implementation Act. “Iceland” means (a) the land territory, air space, internal waters and territorial sea of Iceland; and (b) the exclusive economic zone and continental shelf of Iceland. “Liechtenstein” « Liechtenstein » “Liechtenstein” means the land territory and air space of Liechtenstein. 16 “Norway” « Norvège » C. 6 Canada–EFTA Free “Norway” means (a) the land territory, air space, internal waters and territorial sea of Norway; and (b) the exclusive economic zone and continental shelf of Norway. “Switzerland” « Suisse » “Switzerland” means the land territory and air space of Switzerland. 2001, c. 28, s. 32 31. Section 5 of the Act is replaced by the following: Goods imported from an EFTA state, a NAFTA country, Chile or Costa Rica 5. For the purposes of this Act, goods are imported from one of the following countries if they are shipped directly to Canada from that country: (a) a NAFTA country; (b) Chile; (c) Costa Rica; (d) Iceland; (e) Liechtenstein; (f) Norway; or (g) Switzerland. 2001, c. 28, s. 36 32. Section 27 of the Act is replaced by the following: Abbreviations 27. For the purposes of the List of Tariff Provisions and the “F” Staging List, the abbreviations “UST”, “MT”, “MUST”, “CT”, “CRT”, “CIAT”, “GPT”, “LDCT”, “CCCT”, “AUT”, “NZT”, “IT”, “NT” and “SLT” refer, respectively, to “United States Tariff”, “Mexico Tariff”, “Mexico–United States Tariff”, “Chile Tariff”, “Costa Rica Tariff”, “Canada–Israel Agreement Tariff”, “General Preferential Tariff”, “Least Developed Country Tariff”, “Commonwealth Caribbean Countries Tariff”, “Australia Tariff”, “New Zealand Tariff”, “Iceland Tariff”, “Norway Tariff” and “Switzerland– Liechtenstein Tariff”. 33. The Act is amended by adding the following after section 52: Accord de libre-écha Iceland Tariff Application of IT 52.1 (1) Subject to section 24, goods that are entitled to the Iceland Tariff are entitled to the Iceland Tariff rates of customs duty. “A” final rate (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “IT” in relation to goods entitled to the Iceland Tariff, the Iceland Tariff rate of customs duty that applies to those goods is the final rate. “F” staging for IT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “IT” in relation to goods entitled to the Iceland Tariff, the Iceland Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Staging for IT (4) If “Q1” or “Q2” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “IT” in relation to goods entitled to the Iceland Tariff, the Iceland Tariff rate of customs duty that applies to those goods is the initial rate, reduced (a) if “Q1” is set out, (i) effective on the day that is three years after the day on which this subsection comes into force, to seven eighths of the initial rate, (ii) effective on the day that is four years after the day on which this subsection comes into force, to six eighths of the initial rate, (iii) effective on the day that is five years after the day on which this subsection comes into force, to five eighths of the initial rate, (iv) effective on the day that is six years after the day on which this subsection comes into force, to four eighths of the initial rate, (v) effective on the day that is seven years after the day on which this subsection comes into force, to three eighths of the initial rate, C. 6 Canada–EFTA Free (vi) effective on the day that is eight years after the day on which this subsection comes into force, to two eighths of the initial rate, (vii) effective on the day that is nine years after the day on which this subsection comes into force, to one eighth of the initial rate, and (viii) effective on the day that is 10 years after the day on which this subsection comes into force, to the final rate of “Free”; and (b) if “Q2” is set out, (i) effective on the day that is three years after the day on which this subsection comes into force, to twelve thirteenths of the initial rate, (ii) effective on the day that is four years after the day on which this subsection comes into force, to eleven thirteenths of the initial rate, (iii) effective on the day that is five years after the day on which this subsection comes into force, to ten thirteenths of the initial rate, (iv) effective on the day that is six years after the day on which this subsection comes into force, to nine thirteenths of the initial rate, (v) effective on the day that is seven years after the day on which this subsection comes into force, to eight thirteenths of the initial rate, (vi) effective on the day that is eight years after the day on which this subsection comes into force, to seven thirteenths of the initial rate, (vii) effective on the day that is nine years after the day on which this subsection comes into force, to six thirteenths of the initial rate, (viii) effective on the day that is 10 years after the day on which this subsection comes into force, to five thirteenths of the initial rate, Accord de libre-écha (ix) effective on the day that is 11 years after the day on which this subsection comes into force, to four thirteenths of the initial rate, (x) effective on the day that is 12 years after the day on which this subsection comes into force, to three thirteenths of the initial rate, (xi) effective on the day that is 13 years after the day on which this subsection comes into force, to two thirteenths of the initial rate, (xii) effective on the day that is 14 years after the day on which this subsection comes into force, to one thirteenth of the initial rate, and (xiii) effective on the day that is 15 years after the day on which this subsection comes into force, to the final rate of “Free”. Rounding of specific rates (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent. Rounding of amounts (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than two per cent (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately. Norway Tariff Application of NT 52.2 (1) Subject to section 24, goods that are entitled to the Norway Tariff are entitled to the Norway Tariff rates of customs duty. “A” final rate (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “NT” in relation to goods entitled to the Norway Tariff, the Norway Tariff rate of customs duty that applies to those goods is the final rate. C. 6 “F” staging for NT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “NT” in relation to goods entitled to the Norway Tariff, the Norway Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Staging for NT (4) If “Q1” or “Q2” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “NT” in relation to goods entitled to the Norway Tariff, the Norway Tariff rate of customs duty that applies to those goods is the initial rate, reduced Canada–EFTA Free (a) if “Q1” is set out, (i) effective on the day that is three years after the day on which this subsection comes into force, to seven eighths of the initial rate, (ii) effective on the day that is four years after the day on which this subsection comes into force, to six eighths of the initial rate, (iii) effective on the day that is five years after the day on which this subsection comes into force, to five eighths of the initial rate, (iv) effective on the day that is six years after the day on which this subsection comes into force, to four eighths of the initial rate, (v) effective on the day that is seven years after the day on which this subsection comes into force, to three eighths of the initial rate, (vi) effective on the day that is eight years after the day on which this subsection comes into force, to two eighths of the initial rate, (vii) effective on the day that is nine years after the day on which this subsection comes into force, to one eighth of the initial rate, and (viii) effective on the day that is 10 years after the day on which this subsection comes into force, to the final rate of “Free”; and Accord de libre-écha 2009 (b) if “Q2” is set out, (i) effective on the day that is three years after the day on which this subsection comes into force, to twelve thirteenths of the initial rate, (ii) effective on the day that is four years after the day on which this subsection comes into force, to eleven thirteenths of the initial rate, (iii) effective on the day that is five years after the day on which this subsection comes into force, to ten thirteenths of the initial rate, (iv) effective on the day that is six years after the day on which this subsection comes into force, to nine thirteenths of the initial rate, (v) effective on the day that is seven years after the day on which this subsection comes into force, to eight thirteenths of the initial rate, (vi) effective on the day that is eight years after the day on which this subsection comes into force, to seven thirteenths of the initial rate, (vii) effective on the day that is nine years after the day on which this subsection comes into force, to six thirteenths of the initial rate, (viii) effective on the day that is 10 years after the day on which this subsection comes into force, to five thirteenths of the initial rate, (ix) effective on the day that is 11 years after the day on which this subsection comes into force, to four thirteenths of the initial rate, (x) effective on the day that is 12 years after the day on which this subsection comes into force, to three thirteenths of the initial rate, (xi) effective on the day that is 13 years after the day on which this subsection comes into force, to two thirteenths of the initial rate, C. 6 Canada–EFTA Free (xii) effective on the day that is 14 years after the day on which this subsection comes into force, to one thirteenth of the initial rate, and (xiii) effective on the day that is 15 years after the day on which this subsection comes into force, to the final rate of “Free”. Rounding of specific rates (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent. Rounding of amounts (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than two per cent (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately. Switzerland–Liechtenstein Tariff Application of SLT 52.3 (1) Subject to section 24, goods that are entitled to the Switzerland–Liechtenstein Tariff are entitled to the Switzerland–Liechtenstein Tariff rates of customs duty. “A” final rate (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “SLT” in relation to goods entitled to the Switzerland– Liechtenstein Tariff, the Switzerland–Liechtenstein Tariff rate of customs duty that applies to those goods is the final rate. “F” staging for SLT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “SLT” in relation to goods entitled to the Switzerland– Liechtenstein Tariff, the Switzerland–LiechtenAccord de libre-écha stein Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Staging for SLT (4) If “Q1” or “Q2” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “SLT” in relation to goods entitled to the Switzerland– Liechtenstein Tariff, the Switzerland–Liechtenstein Tariff rate of customs duty that applies to those goods is the initial rate, reduced (a) if “Q1” is set out, (i) effective on the day that is three years after the day on which this subsection comes into force, to seven eighths of the initial rate, (ii) effective on the day that is four years after the day on which this subsection comes into force, to six eighths of the initial rate, (iii) effective on the day that is five years after the day on which this subsection comes into force, to five eighths of the initial rate, (iv) effective on the day that is six years after the day on which this subsection comes into force, to four eighths of the initial rate, (v) effective on the day that is seven years after the day on which this subsection comes into force, to three eighths of the initial rate, (vi) effective on the day that is eight years after the day on which this subsection comes into force, to two eighths of the initial rate, (vii) effective on the day that is nine years after the day on which this subsection comes into force, to one eighth of the initial rate, and (viii) effective on the day that is 10 years after the day on which this subsection comes into force, to the final rate of “Free”; and (b) if “Q2” is set out, C. 6 Canada–EFTA Free (i) effective on the day that is three years after the day on which this subsection comes into force, to twelve thirteenths of the initial rate, (ii) effective on the day that is four years after the day on which this subsection comes into force, to eleven thirteenths of the initial rate, (iii) effective on the day that is five years after the day on which this subsection comes into force, to ten thirteenths of the initial rate, (iv) effective on the day that is six years after the day on which this subsection comes into force, to nine thirteenths of the initial rate, (v) effective on the day that is seven years after the day on which this subsection comes into force, to eight thirteenths of the initial rate, (vi) effective on the day that is eight years after the day on which this subsection comes into force, to seven thirteenths of the initial rate, (vii) effective on the day that is nine years after the day on which this subsection comes into force, to six thirteenths of the initial rate, (viii) effective on the day that is 10 years after the day on which this subsection comes into force, to five thirteenths of the initial rate, (ix) effective on the day that is 11 years after the day on which this subsection comes into force, to four thirteenths of the initial rate, (x) effective on the day that is 12 years after the day on which this subsection comes into force, to three thirteenths of the initial rate, (xi) effective on the day that is 13 years after the day on which this subsection comes into force, to two thirteenths of the initial rate, Accord de libre-écha (xii) effective on the day that is 14 years after the day on which this subsection comes into force, to one thirteenth of the initial rate, and (xiii) effective on the day that is 15 years after the day on which this subsection comes into force, to the final rate of “Free”. Rounding of specific rates (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent. Rounding of amounts (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than two per cent (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately. 34. The Act is amended by adding the following after section 71.1: Bilateral Emergency Measures — Iceland Orders by Governor in Council 71.2 (1) Subject to subsections (2) to (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.014(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.09) of that Act, that goods that are entitled to the Iceland Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order C. 6 Canada–EFTA Free (a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 52.1; (b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection; and (c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Iceland Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of (i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection, and (ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made. Terms and conditions (2) An order under subsection (1) (a) may not, other than for tariff items referred to in subsection (3), be made more than once during the period beginning on the day on which this subsection comes into force and ending on the day before the day that is five years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during Accord de libre-écha that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may, other than for tariff items referred to in subsection (3), be made after the expiry of the period referred to in paragraph (a) only if it is based on an agreement between the Government of Canada and the Government of the Republic of Iceland relating to the application of subsection (1). Certain tariff items (3) An order under subsection (1) (a) may not, in the case of tariff item Nos. 8901.20.90, 8902.00.10, 8905.20.10, 8905.20.20, 8905.90.10 and 8906.90.99, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 10 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may not, in the case of tariff item Nos. 8901.10.90, 8901.90.99, 8904.00.00, 8905.10.00 and 8905.90.90, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 15 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order. Rate of duty when order ceases to have effect (4) If an order made under subsection (1) ceases to have effect in a particular calendar year, (a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 52.1; and C. 6 Canada–EFTA Free (b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (5). Specification of applicable rate (5) For the purposes of subsection (4), the Minister shall, by order, specify that the rate referred to in paragraph (4)(b) is (a) the rate of customs duty that would have been applicable on January 1 of the year following the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 52.1, reduced for subsequent years in accordance with that section; or (b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year following the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 52.1. Definition of “principal cause” (6) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat. Reference to customs duty in effect (7) For the purposes of paragraph (1)(b), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is (a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions. Bilateral Emergency Measures — Norway Orders by Governor in Council 71.3 (1) Subject to subsections (2) to (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry Accord de libre-écha made by the Canadian International Trade Tribunal under subsection 19.015(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.091) of that Act, that goods that are entitled to the Norway Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order (a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 52.2; (b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection; and (c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Norway Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of (i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection, and C. 6 Canada–EFTA Free (ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made. Terms and conditions (2) An order under subsection (1) (a) may not, other than for tariff items referred to in subsection (3), be made more than once during the period beginning on the day on which this subsection comes into force and ending on the day before the day that is five years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may, other than for tariff items referred to in subsection (3), be made after the expiry of the period referred to in paragraph (a) only if it is based on an agreement between the Government of Canada and the Government of the Kingdom of Norway relating to the application of subsection (1). Certain tariff items (3) An order under subsection (1) (a) may not, in the case of tariff item Nos. 8901.20.90, 8902.00.10, 8905.20.10, 8905.20.20, 8905.90.10 and 8906.90.99, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 10 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may not, in the case of tariff item Nos. 8901.10.90, 8901.90.99, 8904.00.00, 8905.10.00 and 8905.90.90, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 15 years after the day on which this subsection comes into force in respect of goods of a particular kind Accord de libre-écha and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order. Rate of duty when order ceases to have effect (4) If an order made under subsection (1) ceases to have effect in a particular calendar year, (a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 52.2; and (b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (5). Specification of applicable rate (5) For the purposes of subsection (4), the Minister shall, by order, specify that the rate referred to in paragraph (4)(b) is (a) the rate of customs duty that would have been applicable on January 1 of the year following the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 52.2, reduced for subsequent years in accordance with that section; or (b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages beginning on January 1 of the year following the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 52.2. Definition of “principal cause” (6) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat. Reference to customs duty in effect (7) For the purposes of paragraph (1)(b), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is C. 6 Canada–EFTA Free (a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions. Non-application (8) This section does not apply in respect of goods of the territory of Svalbard. Bilateral Emergency Measures — Switzerland–Liechtenstein Orders by Governor in Council 71.4 (1) Subject to subsections (2) to (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.016(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.092) of that Act, that goods that are entitled to the Switzerland–Liechtenstein Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order (a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 52.3; (b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty set out in the List of Tariff Provisions that is in effect in respect of those goods at that time, may not exceed the Most-Favoured-Nation Tariff rate of customs duty Accord de libre-écha that was in effect in respect of those goods immediately before the coming into force of this subsection; and (c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Switzerland–Liechtenstein Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of (i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection, and (ii) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made. Terms and conditions (2) An order under subsection (1) (a) may not, other than for tariff items referred to in subsection (3), be made more than once during the period beginning on the day on which this subsection comes into force and ending on the day before the day that is five years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may, other than for tariff items referred to in subsection (3), be made after the expiry of the period referred to in paragraph (a) only if it is based on an agreement between the Government of Canada and the Government of the Swiss Confederation relating to the application of subsection (1). Certain tariff items (3) An order under subsection (1) (a) may not, in the case of tariff item Nos. 8901.20.90, 8902.00.10, 8905.20.10, 8905.20.20, 8905.90.10 and 8906.90.99, be made more than once during the period C. 6 Canada–EFTA Free beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 10 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may not, in the case of tariff item Nos. 8901.10.90, 8901.90.99, 8904.00.00, 8905.10.00 and 8905.90.90, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 15 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order. Rate of duty when order ceases to have effect (4) If an order made under subsection (1) ceases to have effect in a particular calendar year, (a) the rate of customs duty applicable to the goods after the order ceases to have effect and until December 31 of that year is the rate that would otherwise have been applicable one year after the making of the order, as reduced in accordance with section 52.3; and (b) the rate of customs duty applicable to the goods beginning on January 1 of the following year is the rate specified by the Minister under subsection (5). Specification of applicable rate (5) For the purposes of subsection (4), the Minister shall, by order, specify that the rate referred to in paragraph (4)(b) is (a) the rate of customs duty that would have been applicable on January 1 of the year following the year in which the order ceases to have effect, if the rate of customs duty had been reduced in accordance with section 52.3, reduced for subsequent years in accordance with that section; or (b) the rate of customs duty that would have been applicable one year after the making of the order, reduced in equal annual stages Accord de libre-écha beginning on January 1 of the year following the year in which the order ceases to have effect and ending on the day on which the rate of customs duty for the goods would otherwise be reduced to the final rate in accordance with section 52.3. Definition of “principal cause” (6) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat. Reference to customs duty in effect (7) For the purposes of paragraph (1)(b), the Most-Favoured-Nation Tariff rate of customs duty in effect in respect of a fresh fruit or vegetable is (a) in respect of a fresh vegetable, the rate of customs duty applicable to that vegetable set out in the applicable tariff item referred to in Supplementary Note 2(b) in Chapter 7 of the List of Tariff Provisions; and (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 4(b) in Chapter 8 of the List of Tariff Provisions. 35. Section 87 of the Act is replaced by the following: Goods of tariff item No. 9971.00.00 87. (1) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Iceland Tariff, the Norway Tariff or the Switzerland–Liechtenstein Tariff is the value of the repairs or alterations made to those goods in Iceland, Norway, Switzerland or Liechtenstein, as the case may be. Limitation (2) Subsection (1) ceases to have effect on the day before the day that is 15 years after the day on which this subsection comes into force. 2001, c. 28, s. 45 36. Paragraph 133(j) of the Act is replaced by the following: (j) for the purpose of tariff item No. 9971.00.00, prescribing conditions under which goods that have been exported to a NAFTA country, Chile, Costa Rica, Israel or C. 6 Canada–EFTA Free another CIFTA beneficiary, Iceland, Norway, Switzerland or Liechtenstein for repair or alteration may be imported; (j.1) for the purpose of tariff item No. 9992.00.00, prescribing conditions under which goods that have been exported to a NAFTA country, Chile, Costa Rica, Israel or another CIFTA beneficiary for repair or alteration may be imported; 37. (1) The List of Tariff Provisions set out in the schedule to the Act is amended by (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CRT”, a reference to “IT:”; (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CRT”, a reference to “IT:”; (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “IT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “IT”, for all tariff items except tariff item No. 9971.00.00, tariff items under subheading 3504.00 and those set out in Schedules 1, 2 and 7 to this Act; (d) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “N/A” after the abbreviation “IT” for tariff items under subheading 3504.00 and those set out in Schedule 1 to this Act; (e) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “IT”, for each tariff item set out in Schedule 2 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule; (f) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “IT”, a reference to “NT:”; (g) adding in the column “Preferential Tariff / Final Rate”, below the reference to “IT”, a reference to “NT:”; Accord de libre-écha (h) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “NT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “NT”, for all tariff items except tariff item No. 9971.00.00, tariff items under subheading 3504.00 and those set out in Schedules 3, 4 and 7 to this Act; (i) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “N/A” after the abbreviation “NT” for tariff items under subheading 3504.00 and those set out in Schedule 3 to this Act; (j) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “NT”, for each tariff item set out in Schedule 4 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule; (k) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “NT”, a reference to “SLT:”; (l) adding in the column “Preferential Tariff / Final Rate”, below the reference to “NT”, a reference to “SLT:”; (m) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “SLT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “SLT”, for all tariff items except tariff item No. 9971.00.00, tariff items under subheading 3504.00 and those set out in Schedules 5, 6 and 7 to this Act; (n) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “N/A” after the abbreviation “SLT” for tariff items under subheading 3504.00 and those set out in Schedule 5 to this Act; and (o) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “SLT”, for each tariff item set out in C. 6 Canada–EFTA Free Schedule 6 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule. ( 2 ) Ta r i f f i t e m N o s . 0 2 0 8 . 4 0 . 0 0 , 1516.10.00, 1603.00.10, 2301.10.00, 8901.10.00, 8901.20.00, 8901.90.90 and 8906.90.90 in the List of Tariff Provisions set out in the schedule to the Act are repealed. (3) The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 7 to this Act. (4) The Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by (a) replacing the reference to “All the foregoing, regardless of the country of origin or tariff treatment, returned to Canada after having been exported to the United States, Mexico, Chile, Costa Rica, Israel or another CIFTA beneficiary for repair or alteration in that country” with a reference to “All the foregoing, regardless of the country of origin or tariff treatment, returned to Canada after having been exported to the United States, Mexico, Accord de libre-écha Chile, Costa Rica, Israel or another CIFTA beneficiary, Iceland, Norway, Switzerland or Liechtenstein for repair or alteration in that country.”; and (b) replacing Note 1 and Note 2 with the following new Note 1: Note 1: The Iceland Tariff, Norway Tariff and Switzerland–Liechtenstein Tariff rate of customs duty applicable to goods classified under this tariff item shall be, in respect of the value of the repair or alteration to the goods carried out only in Iceland, Norway, Switzerland or Liechtenstein determined under section 87 of this Act, in accordance with their classification in Chapters 1 to 97. (5) Tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by (a) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “See Note 1” after the abbreviation “IT”; (b) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “See Note 1” after the abbreviation “NT”; and (c) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “See Note 1” after the abbreviation “SLT”. PART 3 COMING INTO FORCE Order in council 38. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. C. 6 Canada–EFTA Free Trad SCHED (Paragraphs 37 0102.10.00 0102.90.00 0103.10.00 0103.91.00 0103.92.00 0104.10.00 0104.20.00 0105.11.10 0105.11.21 0105.11.22 0105.11.90 0105.12.10 0105.12.90 0105.19.10 0105.19.92 0105.19.93 0105.94.10 0105.94.91 0105.94.92 0105.99.11 0105.99.12 0105.99.90 0106.11.00 0106.12.00 0106.19.00 0106.20.00 0106.31.00 0106.32.00 0106.39.00 0106.90.00 0201.10.10 0201.10.20 0201.20.10 0201.20.20 0201.30.10 0201.30.20 0202.10.10 0202.10.20 0202.20.10 0202.20.20 0202.30.10 0202.30.20 0203.11.00 0203.12.00 0203.19.00 0203.21.00 0203.22.00 0203.29.00 0205.00.00 0206.10.00 0206.21.00 0206.22.00 0206.29.00 0206.30.00 0206.41.00 0206.49.00 0206.80.00 0206.90.00 0207.11.10 0207.11.91 0207.11.92 0207.12.10 0207.12.91 0207.12.92 0207.13.10 0207.13.91 0207.13.92 0207.13.93 0207.14.10 0207.14.21 0207.14.22 0207.14.91 0207.14.92 0207.14.93 0207.24.11 0207.24.12 0207.24.91 0207.24.92 0207.25.11 0207.25.12 0207.25.91 0207.25.92 0207.26.10 0207.26.20 0207.26.30 0207.27.11 0207.27.12 0207.27.91 0207.27.92 0207.27.93 0207.32.00 0207.33.00 0207.34.00 0207.35.00 0207.36.10 0207.36.90 0208.10.00 0208.30.00 0208.50.00 0208.90.00 0209.00.10 0209.00.21 0209.00.22 0209.00.23 0209.00.24 0209.00.29 0210.11 0210.12 0210.19 0210.20 0210.91 0210.92 0210.93 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0401.10 0401.10 0401.20 0401.20 0401.30 0401.30 0402.10 0402.10 0402.21 0402.21 0402.21 0402.21 0402.29 0402.29 0402.29 0402.29 0402.91 0402.91 0402.99 0402.99 0403.10 0403.90 0403.90 0403.90 0404.10 0404.10 0404.10 0404.10 0404.90 0404.90 0405.10 0405.10 0405.20 0405.20 0405.90 0405.90 0406.10 0406.20 2009 1104.29.12 1104.29.22 1104.30.12 1107.10.12 1107.10.92 1107.20.12 1107.20.92 1108.11.20 1108.19.12 1109.00.20 1517.10.20 1517.90.21 1517.90.22 1601.00.11 1601.00.19 1601.00.21 1601.00.22 1601.00.23 1601.00.31 1601.00.32 1601.00.90 1602.10.10 1602.10.90 1602.20.10 1602.20.21 1602.20.22 1602.20.31 1602.20.32 1602.20.90 1602.31.11 1602.31.12 1602.31.13 1602.31.14 1602.31.91 1602.31.92 1602.31.93 1602.31.94 1602.31.95 1602.32.11 1602.32.12 1602.32.13 1602.32.14 1602.32.91 1602.32.92 1602.32.93 1602.32.94 1602.32.95 1602.39.10 1602.39.91 1602.39.99 1602.41.10 1602.41.90 1602.42.10 1602.42.90 1602.49.10 1602.49.90 1602.50.10 1602.50.91 Accord de libre-échange C 1602.50.99 1602.90.10 1602.90.91 1602.90.99 1806.20.22 1806.90.12 1901.20.12 1901.20.15 1901.20.22 1901.20.24 1901.90.12 1901.90.32 1901.90.34 1901.90.52 1901.90.54 1902.11.21 1902.11.29 1902.19.23 1902.19.92 1902.19.93 1902.30.31 1902.30.39 1904.10.21 1904.10.29 1904.10.41 1904.10.49 1904.20.21 1904.20.29 1904.20.41 1904.20.49 1904.20.62 1904.20.64 1904.30.21 1904.30.29 1904.30.62 1904.90.21 1904.90.29 1904.90.40 1904.90.62 1904.90.64 1905.10.29 1905.10.51 1905.10.59 1905.10.72 1905.31.22 1905.31.23 1905.31.92 1905.31.93 1905.32.92 1905.32.93 1905.40.39 1905.40.61 1905.40.69 1905.90.32 1905.90.33 1905.90.35 1905.90.43 1905.90.44 1905.90 1905.90 1905.90 2001.10 2005.91 2005.99 2005.99 2005.99 2006.00 2006.00 2105.00 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2202.90 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2207.10 2207.10 2302.10 2302.30 2302.30 2302.40 2302.40 2302.40 2302.50 2303.10 2303.20 C. 6 Canada–EFTA Free Trade ANNE (alinéas 37 0102.10.00 0102.90.00 0103.10.00 0103.91.00 0103.92.00 0104.10.00 0104.20.00 0105.11.10 0105.11.21 0105.11.22 0105.11.90 0105.12.10 0105.12.90 0105.19.10 0105.19.92 0105.19.93 0105.94.10 0105.94.91 0105.94.92 0105.99.11 0105.99.12 0105.99.90 0106.11.00 0106.12.00 0106.19.00 0106.20.00 0106.31.00 0106.32.00 0106.39.00 0106.90.00 0201.10.10 0201.10.20 0201.20.10 0201.20.20 0201.30.10 0201.30.20 0202.10.10 0202.10.20 0202.20.10 0202.20.20 0202.30.10 0202.30.20 0203.11.00 0203.12.00 0203.19.00 0203.21.00 0203.22.00 0203.29.00 0205.00.00 0206.10.00 0206.21.00 0206.22.00 0206.29.00 0206.30.00 0206.41.00 0206.49.00 0206.80.00 0206.90.00 0207.11.10 0207.11.91 0207.11.92 0207.12.10 0207.12.91 0207.12.92 0207.13.10 0207.13.91 0207.13.92 0207.13.93 0207.14.10 0207.14.21 0207.14.22 0207.14.91 0207.14.92 0207.14.93 0207.24.11 0207.24.12 0207.24.91 0207.24.92 0207.25.11 0207.25.12 0207.25.91 0207.25.92 0207.26.10 0207.26.20 0207.26.30 0207.27.11 0207.27.12 0207.27.91 0207.27.92 0207.27.93 0207.32.00 0207.33.00 0207.34.00 0207.35.00 0207.36.10 0207.36.90 0208.10.00 0208.30.00 0208.50.00 0208.90.00 0209.00.10 0209.00.21 0209.00.22 0209.00.23 0209.00.24 0209.00.29 0210.11 0210.12 0210.19 0210.20 0210.91 0210.92 0210.93 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0401.10 0401.10 0401.20 0401.20 0401.30 0401.30 0402.10 0402.10 0402.21 0402.21 0402.21 0402.21 0402.29 0402.29 0402.29 0402.29 0402.91 0402.91 0402.99 0402.99 0403.10 0403.90 0403.90 0403.90 0404.10 0404.10 0404.10 0404.10 0404.90 0404.90 0405.10 0405.10 0405.20 0405.20 0405.90 0405.90 0406.10 0406.20 2009 1104.29.12 1104.29.22 1104.30.12 1107.10.12 1107.10.92 1107.20.12 1107.20.92 1108.11.20 1108.19.12 1109.00.20 1517.10.20 1517.90.21 1517.90.22 1601.00.11 1601.00.19 1601.00.21 1601.00.22 1601.00.23 1601.00.31 1601.00.32 1601.00.90 1602.10.10 1602.10.90 1602.20.10 1602.20.21 1602.20.22 1602.20.31 1602.20.32 1602.20.90 1602.31.11 1602.31.12 1602.31.13 1602.31.14 1602.31.91 1602.31.92 1602.31.93 1602.31.94 1602.31.95 1602.32.11 1602.32.12 1602.32.13 1602.32.14 1602.32.91 1602.32.92 1602.32.93 1602.32.94 1602.32.95 1602.39.10 1602.39.91 1602.39.99 1602.41.10 1602.41.90 1602.42.10 1602.42.90 1602.49.10 1602.49.90 1602.50.10 1602.50.91 Accord de libre-échange C 1602.50.99 1602.90.10 1602.90.91 1602.90.99 1806.20.22 1806.90.12 1901.20.12 1901.20.15 1901.20.22 1901.20.24 1901.90.12 1901.90.32 1901.90.34 1901.90.52 1901.90.54 1902.11.21 1902.11.29 1902.19.23 1902.19.92 1902.19.93 1902.30.31 1902.30.39 1904.10.21 1904.10.29 1904.10.41 1904.10.49 1904.20.21 1904.20.29 1904.20.41 1904.20.49 1904.20.62 1904.20.64 1904.30.21 1904.30.29 1904.30.62 1904.90.21 1904.90.29 1904.90.40 1904.90.62 1904.90.64 1905.10.29 1905.10.51 1905.10.59 1905.10.72 1905.31.22 1905.31.23 1905.31.92 1905.31.93 1905.32.92 1905.32.93 1905.40.39 1905.40.61 1905.40.69 1905.90.32 1905.90.33 1905.90.35 1905.90.43 1905.90.44 1905.90 1905.90 1905.90 2001.10 2005.91 2005.99 2005.99 2005.99 2006.00 2006.00 2105.00 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2106.90 2202.90 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2206.00 2207.10 2207.10 2302.10 2302.30 2302.30 2302.40 2302.40 2302.40 2302.50 2303.10 2303.20 C. 6 Canada–EFTA Free Trade SCHED (Paragraphs 37 Tariff Item Initial Rat 1704.10.00 4.5% 1704.90.20 5% 1806.20.90 3% 1806.31.00 3% 2103.20.10 6% 2103.20.90 6% 2104.20.00 5.5% 2105.00.10 5% 2106.10.00 5.5% 2106.90.91 5% 2106.90.92 5% 2106.90.96 19% 2106.90.98 5% 8902.00.10 25% 8904.00.00 25% 8905.10.00 25% 8905.20.10 20% 8905.20.20 25% 8905.90.10 20% 8905.90.90 25% Accord de libre-échange C ANNE (alinéas 37 Numéro tarifaire Taux initi 1704.10.00 4,5 % 1704.90.20 5 % 1806.20.90 3 % 1806.31.00 3 % 2103.20.10 6 % 2103.20.90 6 % 2104.20.00 5,5 % 2105.00.10 5 % 2106.10.00 5,5 % 2106.90.91 5 % 2106.90.92 5 % 2106.90.96 19 % 2106.90.98 5 % 8902.00.10 25 % 8904.00.00 25 % 8905.10.00 25 % 8905.20.10 20 % 8905.20.20 25 % 8905.90.10 20 % 8905.90.90 25 % C. 6 Canada–EFTA Free Trad SCHED (Paragraphs 37 0101.10.00 0101.90.00 0102.10.00 0102.90.00 0103.10.00 0103.91.00 0103.92.00 0104.10.00 0104.20.00 0105.11.10 0105.11.21 0105.11.22 0105.11.90 0105.12.10 0105.12.90 0105.19.10 0105.19.92 0105.19.93 0105.94.10 0105.94.91 0105.94.92 0105.99.11 0105.99.12 0105.99.90 0106.11.00 0106.12.00 0106.19.00 0106.20.00 0106.31.00 0106.32.00 0106.39.00 0106.90.00 0201.10.10 0201.10.20 0201.20.10 0201.20.20 0201.30.10 0201.30.20 0202.10.10 0202.10.20 0202.20.10 0202.20.20 0202.30.10 0202.30.20 0203.11.00 0203.12.00 0203.19.00 0203.21.00 0203.22.00 0203.29.00 0204.10.00 0204.21.00 0204.22.10 0204.22.20 0204.23.00 0204.30.10 0204.41.00 0204.42.10 0204.42.20 0204.43.10 0204.43.20 0205.00.00 0207.11.92 0207.12.92 0207.13.92 0207.13.93 0207.14.22 0207.14.92 0207.14.93 0207.24.12 0207.24.92 0207.25.12 0207.25.92 0207.26.20 0207.26.30 0207.27.12 0207.27.92 0207.27.93 0208.10.00 0208.30.00 0208.50.00 0208.90.00 0209.00.10 0209.00.21 0209.00.22 0209.00.23 0209.00.24 0209.00.29 0210.11.00 0210.91.00 0210.92.00 0210.93.00 0210.99.11 0210.99.12 0210.99.13 0210.99.14 0210.99.15 0210.99.16 0401.10.10 0401.10.20 0401.20.10 0401.20.20 0401.30.10 0401.30.20 0402.10.10 0402.10.20 0402.21 0402.21 0402.21 0402.21 0402.29 0402.29 0402.29 0402.29 0402.91 0402.91 0402.99 0402.99 0403.10 0403.90 0403.90 0403.90 0404.10 0404.10 0404.10 0404.10 0404.90 0404.90 0405.10 0405.10 0405.20 0405.20 0405.90 0405.90 0406.10 0406.10 0406.20 0406.20 0406.20 0406.20 0406.30 0406.30 0406.40 0406.40 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 2009 0707.00.99 0708.10.10 0708.10.91 0708.10.99 0708.20.10 0708.20.21 0708.20.22 0708.20.30 0708.20.90 0708.90.00 0709.20.10 0709.20.91 0709.20.99 0709.30.00 0709.40.11 0709.40.12 0709.40.90 0709.51.10 0709.51.90 0709.59.10 0709.59.20 0709.59.90 0709.60.10 0709.60.90 0709.70.00 0709.90.11 0709.90.19 0709.90.21 0709.90.29 0709.90.31 0709.90.32 0709.90.40 0709.90.50 0709.90.90 0710.10.00 0710.21.00 0710.22.00 0710.29.10 0710.29.90 0710.30.00 0710.80.10 0710.80.20 0710.80.30 0710.80.40 0710.80.50 0710.80.90 0710.90.00 0711.20.00 0711.39.19 0711.40.10 0711.40.90 0711.51.00 0711.59.00 0711.90.10 0712.20.00 0712.31.00 0712.32.10 0712.32.90 Accord de libre-échange C 0712.33.00 0712.39.11 0712.39.19 0712.39.20 0712.90.10 0712.90.20 0712.90.90 0713.10.10 0713.10.90 0713.20.00 0713.31.10 0713.31.90 0713.32.00 0713.33.10 0713.33.91 0713.33.99 0713.39.10 0713.39.90 0713.40.00 0713.50.10 0713.50.90 0713.90.10 0713.90.90 0714.10.00 0714.20.00 0714.90.10 0714.90.90 0801.11.00 0801.19.00 0801.21.00 0801.22.00 0801.31.00 0801.32.00 0802.11.00 0802.12.00 0802.21.00 0802.22.00 0802.31.00 0802.32.00 0802.40.00 0802.50.00 0802.60.00 0802.90.00 0803.00.00 0804.10.00 0804.20.00 0804.30.00 0804.40.00 0804.50.00 0805.10.00 0805.20.00 0805.40.00 0805.50.00 0805.90.00 0806.10.11 0806.10.19 0806.10.91 0806.10.99 0806.20 0807.11 0807.19 0807.20 0808.10 0808.10 0808.20 0808.20 0808.20 0808.20 0809.10 0809.10 0809.10 0809.30 0809.30 0809.30 0809.30 0809.30 0809.40 0809.40 0809.40 0809.40 0809.40 0809.40 0810.10 0810.20 0810.20 0810.20 0810.50 0810.60 0810.90 0810.90 0811.10 0811.10 0811.20 0811.90 0811.90 0811.90 0812.10 0812.10 0812.90 0812.90 0812.90 0813.10 0813.20 0813.30 0813.40 0813.50 0814.00 0903.00 0904.11 0904.12 0904.20 0904.20 0905.00 0906.11 0906.19 0906.20 48 1207.40.00 1207.50.00 1207.91.00 1207.99.00 1208.10.10 1208.10.20 1208.90.10 1208.90.20 1209.10.00 1209.21.00 1209.22.00 1209.23.00 1209.24.00 1209.25.00 1209.29.00 1209.30.10 1209.30.20 1209.91.10 1209.91.90 1209.99.10 1209.99.20 1210.10.00 1210.20.00 1211.20.10 1211.20.90 1211.30.00 1211.40.00 1211.90.10 1211.90.90 1212.20.00 1212.91.00 1212.99.10 1212.99.20 1212.99.90 1213.00.00 1214.10.00 1214.90.00 1301.20.00 1301.90.00 1302.11.00 1501.00.00 1502.00.00 1503.00.00 1505.00.00 1506.00.00 1507.10.00 1507.90.10 1507.90.90 1508.10.00 1508.90.00 1509.10.00 1509.90.00 1510.00.00 1511.10.00 1511.90.10 1511.90.20 1511.90.90 1512.11.00 C. 6 Canada–EFTA Free Trade 1512.19.10 1512.19.20 1512.21.00 1512.29.00 1513.11.00 1513.19.00 1513.21.00 1513.29.10 1513.29.90 1514.11.00 1514.19.00 1514.91.00 1514.99.00 1515.11.00 1515.19.00 1515.21.00 1515.29.00 1515.30.00 1515.50.10 1515.50.90 1515.90.10 1515.90.91 1515.90.99 1516.20.20 1516.20.90 1517.10.20 1517.90.21 1517.90.22 1518.00.90 1601.00.22 1601.00.32 1602.10.10 1602.10.90 1602.20.22 1602.20.32 1602.31.11 1602.31.12 1602.31.13 1602.31.14 1602.31.91 1602.31.92 1602.31.93 1602.31.94 1602.31.95 1602.32.11 1602.32.12 1602.32.13 1602.32.14 1602.32.94 1602.32.95 1602.39.10 1602.39.91 1602.39.99 1602.41.10 1602.41.90 1602.42.10 1602.42.90 1602.49.10 1602.49 1602.50 1602.50 1602.50 1701.11 1701.11 1701.11 1701.11 1701.11 1701.11 1701.12 1701.12 1701.91 1701.99 1702.11 1702.19 1702.20 1702.30 1702.30 1702.40 1702.60 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1703.10 1703.10 1703.90 1703.90 1801.00 1802.00 1806.20 1806.90 1901.20 1901.20 1901.20 1901.20 1901.90 1901.90 1901.90 1901.90 1901.90 1902.11 1902.11 1902.19 1902.19 1902.19 1902.30 1902.30 2009 2106.90.42 2106.90.51 2106.90.52 2106.90.93 2106.90.94 2106.90.95 2106.90.97 2202.90.43 2204.10.10 2204.10.90 2204.21.10 2204.21.21 2204.21.22 2204.21.23 2204.21.24 2204.21.25 2204.21.26 2204.21.27 2204.21.28 2204.21.31 2204.21.32 2204.21.41 2204.21.49 2204.29.10 2204.29.21 2204.29.22 2204.29.23 2204.29.24 2204.29.25 2204.29.26 2204.29.27 2204.29.28 2204.29.31 2204.29.32 2204.29.41 2204.29.49 2204.30.10 2204.30.90 2206.00.11 2206.00.12 2206.00.18 2206.00.19 2206.00.21 2206.00.22 2206.00.31 2206.00.39 2206.00.41 2206.00.49 2206.00.50 2206.00.61 2206.00.62 2206.00.63 2206.00.64 2206.00.65 2206.00.66 2206.00.67 2206.00.68 2206.00.71 Accord de libre-échange C 2206.00.72 2206.00.80 2206.00.91 2206.00.92 2206.00.93 2207.10.10 2207.10.90 2302.10.00 2302.30.10 2302.30.20 2302.40.11 2302.40.12 2302.40.90 2302.50.00 2303.10.00 2303.20.10 2303.20.90 2303.30.00 2304.00.00 2305.00.00 2306.10.00 2306.20.00 2306.30.00 2306.41.00 2306.49.00 2306.50.00 2306.60.00 2306.90.00 2307.00.00 2308.00.00 2309.10.00 2309.90.10 2309.90.20 2309.90.31 2309.90.32 2309.90.33 2309.90.34 2309.90.35 2309.90.36 2309.90.39 2309.90.91 2309.90.99 2401.10.10 2401.10.91 2401.10.99 2401.20.10 2401.20.90 2401.30.00 2402.10.00 2402.20.00 2402.90.00 2403.10.00 2403.91.10 2403.91.20 2403.91.90 2403.99.10 2403.99.20 2403.99.90 3502.11 3502.11 3502.19 3502.19 3502.20 3502.90 3505.10 3505.10 3505.10 3505.10 9801.20 9826.10 9826.20 9826.30 9826.40 9897.00 9898.00 9899.00 9904.00 9905.00 9929.00 9938.00 9990.00 9992.00 C. 6 Canada–EFTA Free Trad ANNE (alinéas 37 0101.10.00 0101.90.00 0102.10.00 0102.90.00 0103.10.00 0103.91.00 0103.92.00 0104.10.00 0104.20.00 0105.11.10 0105.11.21 0105.11.22 0105.11.90 0105.12.10 0105.12.90 0105.19.10 0105.19.92 0105.19.93 0105.94.10 0105.94.91 0105.94.92 0105.99.11 0105.99.12 0105.99.90 0106.11.00 0106.12.00 0106.19.00 0106.20.00 0106.31.00 0106.32.00 0106.39.00 0106.90.00 0201.10.10 0201.10.20 0201.20.10 0201.20.20 0201.30.10 0201.30.20 0202.10.10 0202.10.20 0202.20.10 0202.20.20 0202.30.10 0202.30.20 0203.11.00 0203.12.00 0203.19.00 0203.21.00 0203.22.00 0203.29.00 0204.10.00 0204.21.00 0204.22.10 0204.22.20 0204.23.00 0204.30.10 0204.41.00 0204.42.10 0204.42.20 0204.43.10 0204.43.20 0205.00.00 0207.11.92 0207.12.92 0207.13.92 0207.13.93 0207.14.22 0207.14.92 0207.14.93 0207.24.12 0207.24.92 0207.25.12 0207.25.92 0207.26.20 0207.26.30 0207.27.12 0207.27.92 0207.27.93 0208.10.00 0208.30.00 0208.50.00 0208.90.00 0209.00.10 0209.00.21 0209.00.22 0209.00.23 0209.00.24 0209.00.29 0210.11.00 0210.91.00 0210.92.00 0210.93.00 0210.99.11 0210.99.12 0210.99.13 0210.99.14 0210.99.15 0210.99.16 0401.10.10 0401.10.20 0401.20.10 0401.20.20 0401.30.10 0401.30.20 0402.10.10 0402.10.20 0402.21 0402.21 0402.21 0402.21 0402.29 0402.29 0402.29 0402.29 0402.91 0402.91 0402.99 0402.99 0403.10 0403.90 0403.90 0403.90 0404.10 0404.10 0404.10 0404.10 0404.90 0404.90 0405.10 0405.10 0405.20 0405.20 0405.90 0405.90 0406.10 0406.10 0406.20 0406.20 0406.20 0406.20 0406.30 0406.30 0406.40 0406.40 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 0406.90 2009 0707.00.99 0708.10.10 0708.10.91 0708.10.99 0708.20.10 0708.20.21 0708.20.22 0708.20.30 0708.20.90 0708.90.00 0709.20.10 0709.20.91 0709.20.99 0709.30.00 0709.40.11 0709.40.12 0709.40.90 0709.51.10 0709.51.90 0709.59.10 0709.59.20 0709.59.90 0709.60.10 0709.60.90 0709.70.00 0709.90.11 0709.90.19 0709.90.21 0709.90.29 0709.90.31 0709.90.32 0709.90.40 0709.90.50 0709.90.90 0710.10.00 0710.21.00 0710.22.00 0710.29.10 0710.29.90 0710.30.00 0710.80.10 0710.80.20 0710.80.30 0710.80.40 0710.80.50 0710.80.90 0710.90.00 0711.20.00 0711.39.19 0711.40.10 0711.40.90 0711.51.00 0711.59.00 0711.90.10 0712.20.00 0712.31.00 0712.32.10 0712.32.90 Accord de libre-échange C 0712.33.00 0712.39.11 0712.39.19 0712.39.20 0712.90.10 0712.90.20 0712.90.90 0713.10.10 0713.10.90 0713.20.00 0713.31.10 0713.31.90 0713.32.00 0713.33.10 0713.33.91 0713.33.99 0713.39.10 0713.39.90 0713.40.00 0713.50.10 0713.50.90 0713.90.10 0713.90.90 0714.10.00 0714.20.00 0714.90.10 0714.90.90 0801.11.00 0801.19.00 0801.21.00 0801.22.00 0801.31.00 0801.32.00 0802.11.00 0802.12.00 0802.21.00 0802.22.00 0802.31.00 0802.32.00 0802.40.00 0802.50.00 0802.60.00 0802.90.00 0803.00.00 0804.10.00 0804.20.00 0804.30.00 0804.40.00 0804.50.00 0805.10.00 0805.20.00 0805.40.00 0805.50.00 0805.90.00 0806.10.11 0806.10.19 0806.10.91 0806.10.99 0806.20 0807.11 0807.19 0807.20 0808.10 0808.10 0808.20 0808.20 0808.20 0808.20 0809.10 0809.10 0809.10 0809.30 0809.30 0809.30 0809.30 0809.30 0809.40 0809.40 0809.40 0809.40 0809.40 0809.40 0810.10 0810.20 0810.20 0810.20 0810.50 0810.60 0810.90 0810.90 0811.10 0811.10 0811.20 0811.90 0811.90 0811.90 0812.10 0812.10 0812.90 0812.90 0812.90 0813.10 0813.20 0813.30 0813.40 0813.50 0814.00 0903.00 0904.11 0904.12 0904.20 0904.20 0905.00 0906.11 0906.19 0906.20 52 1207.40.00 1207.50.00 1207.91.00 1207.99.00 1208.10.10 1208.10.20 1208.90.10 1208.90.20 1209.10.00 1209.21.00 1209.22.00 1209.23.00 1209.24.00 1209.25.00 1209.29.00 1209.30.10 1209.30.20 1209.91.10 1209.91.90 1209.99.10 1209.99.20 1210.10.00 1210.20.00 1211.20.10 1211.20.90 1211.30.00 1211.40.00 1211.90.10 1211.90.90 1212.20.00 1212.91.00 1212.99.10 1212.99.20 1212.99.90 1213.00.00 1214.10.00 1214.90.00 1301.20.00 1301.90.00 1302.11.00 1501.00.00 1502.00.00 1503.00.00 1505.00.00 1506.00.00 1507.10.00 1507.90.10 1507.90.90 1508.10.00 1508.90.00 1509.10.00 1509.90.00 1510.00.00 1511.10.00 1511.90.10 1511.90.20 1511.90.90 1512.11.00 C. 6 Canada–EFTA Free Trade 1512.19.10 1512.19.20 1512.21.00 1512.29.00 1513.11.00 1513.19.00 1513.21.00 1513.29.10 1513.29.90 1514.11.00 1514.19.00 1514.91.00 1514.99.00 1515.11.00 1515.19.00 1515.21.00 1515.29.00 1515.30.00 1515.50.10 1515.50.90 1515.90.10 1515.90.91 1515.90.99 1516.20.20 1516.20.90 1517.10.20 1517.90.21 1517.90.22 1518.00.90 1601.00.22 1601.00.32 1602.10.10 1602.10.90 1602.20.22 1602.20.32 1602.31.11 1602.31.12 1602.31.13 1602.31.14 1602.31.91 1602.31.92 1602.31.93 1602.31.94 1602.31.95 1602.32.11 1602.32.12 1602.32.13 1602.32.14 1602.32.94 1602.32.95 1602.39.10 1602.39.91 1602.39.99 1602.41.10 1602.41.90 1602.42.10 1602.42.90 1602.49.10 1602.49 1602.50 1602.50 1602.50 1701.11 1701.11 1701.11 1701.11 1701.11 1701.11 1701.12 1701.12 1701.91 1701.99 1702.11 1702.19 1702.20 1702.30 1702.30 1702.40 1702.60 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1702.90 1703.10 1703.10 1703.90 1703.90 1801.00 1802.00 1806.20 1806.90 1901.20 1901.20 1901.20 1901.20 1901.90 1901.90 1901.90 1901.90 1901.90 1902.11 1902.11 1902.19 1902.19 1902.19 1902.30 1902.30 2009 2106.90.42 2106.90.51 2106.90.52 2106.90.93 2106.90.94 2106.90.95 2106.90.97 2202.90.43 2204.10.10 2204.10.90 2204.21.10 2204.21.21 2204.21.22 2204.21.23 2204.21.24 2204.21.25 2204.21.26 2204.21.27 2204.21.28 2204.21.31 2204.21.32 2204.21.41 2204.21.49 2204.29.10 2204.29.21 2204.29.22 2204.29.23 2204.29.24 2204.29.25 2204.29.26 2204.29.27 2204.29.28 2204.29.31 2204.29.32 2204.29.41 2204.29.49 2204.30.10 2204.30.90 2206.00.11 2206.00.12 2206.00.18 2206.00.19 2206.00.21 2206.00.22 2206.00.31 2206.00.39 2206.00.41 2206.00.49 2206.00.50 2206.00.61 2206.00.62 2206.00.63 2206.00.64 2206.00.65 2206.00.66 2206.00.67 2206.00.68 2206.00.71 Accord de libre-échange C 2206.00.72 2206.00.80 2206.00.91 2206.00.92 2206.00.93 2207.10.10 2207.10.90 2302.10.00 2302.30.10 2302.30.20 2302.40.11 2302.40.12 2302.40.90 2302.50.00 2303.10.00 2303.20.10 2303.20.90 2303.30.00 2304.00.00 2305.00.00 2306.10.00 2306.20.00 2306.30.00 2306.41.00 2306.49.00 2306.50.00 2306.60.00 2306.90.00 2307.00.00 2308.00.00 2309.10.00 2309.90.10 2309.90.20 2309.90.31 2309.90.32 2309.90.33 2309.90.34 2309.90.35 2309.90.36 2309.90.39 2309.90.91 2309.90.99 2401.10.10 2401.10.91 2401.10.99 2401.20.10 2401.20.90 2401.30.00 2402.10.00 2402.20.00 2402.90.00 2403.10.00 2403.91.10 2403.91.20 2403.91.90 2403.99.10 2403.99.20 2403.99.90 3502.11 3502.11 3502.19 3502.19 3502.20 3502.90 3505.10 3505.10 3505.10 3505.10 9801.20 9826.10 9826.20 9826.30 9826.40 9897.00 9898.00 9899.00 9904.00 9905.00 9929.00 9938.00 9990.00 9992.00 C. 6 Canada–EFTA Free Trade SCHED (Paragraphs 37 Tariff Item Initial Rat 1704.10.00 4.5% 1704.90.20 5% 1806.20.90 3% 1806.31.00 3% 2103.20.10 6% 2103.20.90 6% 2104.20.00 5.5% 2105.00.10 5% 2106.10.00 5.5% 2106.90.91 5% 2106.90.92 5% 2106.90.96 19% 2106.90.98 5% 8902.00.10 25% 8904.00.00 25% 8905.10.00 25% 8905.20.10 20% 8905.20.20 25% 8905.90.10 20% 8905.90.90 25% Accord de libre-échange C ANNE (alinéas 37 Numéro tarifaire Taux initi 1704.10.00 4,5 % 1704.90.20 5 % 1806.20.90 3 % 1806.31.00 3 % 2103.20.10 6 % 2103.20.90 6 % 2104.20.00 5,5 % 2105.00.10 5 % 2106.10.00 5,5 % 2106.90.91 5 % 2106.90.92 5 % 2106.90.96 19 % 2106.90.98 5 % 8902.00.10 25 % 8904.00.00 25 % 8905.10.00 25 % 8905.20.10 20 % 8905.20.20 25 % 8905.90.10 20 % 8905.90.90 25 % C. 6 Canada–EFTA Free Trade SCHED (Paragraphs 37 0101.10.00 0101.90.00 0102.10.00 0102.90.00 0103.10.00 0103.91.00 0103.92.00 0104.10.00 0104.20.00 0105.11.10 0105.11.21 0105.11.22 0105.11.90 0105.12.10 0105.12.90 0105.19.10 0105.19.92 0105.19.93 0105.94.10 0105.94.91 0105.94.92 0105.99.11 0105.99.12 0105.99.90 0106.11.00 0106.12.00 0106.19.00 0106.20.00 0106.31.00 0106.32.00 0106.39.00 0106.90.00 0201.10.10 0201.10.20 0201.20.10 0201.20.20 0201.30.10 0201.30.20 0202.10.10 0202.10.20 0202.20.10 0202.20.20 0202.30.10 0202.30.20 0203.11.00 0203.12.00 0203.19.00 0203.21.00 0203.22.00 0203.29.00 0204.10.00 0204.21.00 0204.22.10 0204.22.20 0204.23.00 0204.30.00 0204.41.00 0204.42.10 0204.42.20 0204.43.10 0204.43.20 0204.50.00 0205.00.00 0206.10.00 0206.21.00 0206.22.00 0206.29.00 0206.30.00 0206.41.00 0206.49.00 0206.80.00 0206.90.00 0207.11.10 0207.11.91 0207.11.92 0207.12.10 0207.12.91 0207.12.92 0207.13.10 0207.13.91 0207.13.92 0207.13.93 0207.14.10 0207.14.21 0207.14.22 0207.14.91 0207.14.92 0207.14.93 0207.24.11 0207.24.12 0207.24.91 0207.24.92 0207.25.11 0207.25.12 0207.25.91 0207.25.92 0207.26.10 0207.26.20 0207.26.30 0207.27.11 0207.27.12 0207.27.91 0207.27.92 0207.27.93 0207.32.00 0207.33.00 0207.34 0207.35 0207.36 0207.36 0208.10 0208.30 0208.50 0208.90 0209.00 0209.00 0209.00 0209.00 0209.00 0209.00 0210.11 0210.91 0210.92 0210.93 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0401.10 0401.10 0401.20 0401.20 0401.30 0401.30 0402.10 0402.10 0402.21 0402.21 0402.21 0402.21 0402.29 0402.29 0402.29 0402.29 0402.91 0402.91 0402.99 0402.99 0403.10 0403.90 0403.90 0403.90 0404.10 0404.10 0404.10 2009 0704.90.10 0704.90.21 0704.90.29 0704.90.31 0704.90.39 0704.90.41 0704.90.49 0704.90.90 0705.11.11 0705.11.12 0705.11.90 0705.19.11 0705.19.12 0705.19.90 0705.21.00 0705.29.00 0706.10.11 0706.10.12 0706.10.20 0706.10.31 0706.10.32 0706.10.40 0706.10.50 0706.90.10 0706.90.21 0706.90.22 0706.90.30 0706.90.40 0706.90.51 0706.90.59 0706.90.90 0707.00.10 0707.00.91 0707.00.99 0708.10.10 0708.10.91 0708.10.99 0708.20.10 0708.20.21 0708.20.22 0708.20.30 0708.20.90 0708.90.00 0709.20.10 0709.20.91 0709.20.99 0709.30.00 0709.40.11 0709.40.12 0709.40.90 0709.51.10 0709.51.90 0709.59.10 0709.59.20 0709.59.90 0709.60.10 0709.60.90 0709.70.00 Accord de libre-échange C 0709.90.11 0709.90.19 0709.90.21 0709.90.29 0709.90.31 0709.90.32 0709.90.40 0709.90.50 0709.90.90 0710.10.00 0710.21.00 0710.22.00 0710.29.10 0710.29.90 0710.30.00 0710.80.10 0710.80.20 0710.80.30 0710.80.40 0710.80.50 0710.80.90 0710.90.00 0711.20.00 0711.39.19 0711.40.10 0711.40.90 0711.51.00 0711.59.00 0711.90.10 0712.20.00 0712.31.00 0712.32.10 0712.32.90 0712.33.00 0712.39.11 0712.39.19 0712.39.20 0712.90.10 0712.90.20 0712.90.90 0713.10.10 0713.10.90 0713.31.10 0713.31.90 0713.32.00 0713.33.10 0713.33.91 0713.33.99 0713.39.10 0713.39.90 0713.90.10 0713.90.90 0714.10.00 0714.20.00 0714.90.10 0714.90.90 0801.11.00 0801.19.00 0801.21 0801.22 0801.31 0801.32 0802.11 0802.12 0802.21 0802.22 0802.31 0802.32 0802.40 0802.50 0802.60 0802.90 0803.00 0804.10 0804.20 0804.30 0804.40 0804.50 0805.10 0805.20 0805.40 0805.50 0805.90 0806.10 0806.10 0806.10 0806.10 0807.20 0808.10 0808.10 0808.20 0808.20 0808.20 0808.20 0809.10 0809.10 0809.10 0809.20 0809.20 0809.20 0809.20 0809.20 0809.20 0809.30 0809.30 0809.30 0809.30 0809.30 0809.40 0809.40 0809.40 0809.40 0809.40 0809.40 0810.10 0810.10 58 1106.30.00 1107.10.11 1107.10.12 1107.10.91 1107.10.92 1107.20.11 1107.20.12 1107.20.91 1107.20.92 1108.11.10 1108.11.20 1108.12.00 1108.13.00 1108.14.00 1108.19.11 1108.19.12 1108.19.90 1108.20.00 1109.00.10 1109.00.20 1201.00.00 1202.10.00 1202.20.00 1203.00.00 1205.10.00 1205.90.00 1207.20.00 1207.40.00 1207.50.00 1207.91.00 1207.99.00 1208.10.10 1208.10.20 1208.90.10 1208.90.20 1209.10.00 1209.21.00 1209.22.00 1209.23.00 1209.24.00 1209.25.00 1209.29.00 1209.30.10 1209.30.20 1209.91.10 1209.91.90 1209.99.10 1209.99.20 1210.10.00 1210.20.00 1211.30.00 1211.40.00 1212.20.00 1212.91.00 1212.99.10 1212.99.20 1212.99.90 1213.00.00 C. 6 Canada–EFTA Free Trade 1214.10.00 1214.90.00 1301.20.00 1301.90.00 1302.11.00 1501.00.00 1502.00.00 1503.00.00 1505.00.00 1506.00.00 1507.10.00 1507.90.10 1507.90.90 1508.10.00 1508.90.00 1509.10.00 1509.90.00 1510.00.00 1511.10.00 1511.90.10 1511.90.20 1511.90.90 1512.11.00 1512.19.10 1512.19.20 1512.21.00 1512.29.00 1513.11.00 1513.19.00 1513.21.00 1513.29.10 1513.29.90 1514.11.00 1514.19.00 1514.91.00 1514.99.00 1515.11.00 1515.19.00 1515.21.00 1515.29.00 1515.30.00 1515.50.10 1515.50.90 1515.90.10 1515.90.91 1515.90.99 1516.20.20 1516.20.90 1517.10.20 1517.90.21 1517.90.22 1518.00.90 1601.00.11 1601.00.19 1601.00.21 1601.00.22 1601.00.23 1601.00.31 1601.00 1601.00 1602.10 1602.10 1602.20 1602.20 1602.20 1602.20 1602.20 1602.20 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.39 1602.39 1602.39 1602.42 1602.42 1602.49 1602.49 1602.50 1602.50 1602.50 1602.90 1602.90 1602.90 1701.11 1701.11 1701.11 1701.11 1701.11 1701.11 1701.12 1701.12 1701.91 1701.99 1702.11 1702.19 1702.20 1702.30 1702.30 1702.40 1702.60 2009 2008.92.90 2008.99.10 2008.99.20 2008.99.30 2008.99.40 2105.00.92 2106.90.32 2106.90.34 2106.90.51 2106.90.52 2106.90.93 2106.90.94 2106.90.95 2106.90.97 2202.90.43 2204.10.10 2204.10.90 2204.21.10 2204.21.21 2204.21.22 2204.21.23 2204.21.24 2204.21.25 2204.21.26 2204.21.27 2204.21.28 2204.21.31 2204.21.32 2204.21.41 2204.21.49 2204.29.10 2204.29.21 2204.29.22 2204.29.23 2204.29.24 2204.29.25 2204.29.26 2204.29.27 2204.29.28 2204.29.31 2204.29.32 2204.29.41 2204.29.49 2204.30.10 2204.30.90 2206.00.11 2206.00.12 2206.00.18 2206.00.19 2206.00.21 2206.00.22 2206.00.31 2206.00.39 2206.00.41 2206.00.49 2206.00.50 2206.00.61 2206.00.62 Accord de libre-échange C 2206.00.63 2206.00.64 2206.00.65 2206.00.66 2206.00.67 2206.00.68 2206.00.71 2206.00.72 2206.00.80 2206.00.91 2206.00.92 2206.00.93 2302.30.10 2302.30.20 2302.40.11 2302.40.12 2302.40.90 2302.50.00 2303.10.00 2303.20.10 2303.20.90 2303.30.00 2304.00.00 2305.00.00 2306.10.00 2306.20.00 2306.30.00 2306.41.00 2306.49.00 2306.50.00 2306.60.00 2306.90.00 2307.00.00 2308.00.00 2309.10.00 2309.90.10 2309.90.20 2309.90.31 2309.90.32 2309.90.33 2309.90.34 2309.90.35 2309.90.36 2309.90.39 2309.90.91 2309.90.99 2401.10.10 2401.10.91 2401.10.99 2401.20.10 2401.20.90 2401.30.00 2402.10.00 2402.20.00 2402.90.00 2403.10.00 2403.91.10 2403.91.20 2403.91 2403.99 2403.99 2403.99 3502.11 3502.11 3502.19 3502.19 3502.20 3502.90 3505.10 3505.10 3505.10 3505.10 9801.20 9826.10 9826.20 9826.30 9826.40 9897.00 9898.00 9899.00 9904.00 9905.00 9929.00 9938.00 9990.00 9992.00 C. 6 Canada–EFTA Free Trade ANNE (alinéas 37( 0101.10.00 0101.90.00 0102.10.00 0102.90.00 0103.10.00 0103.91.00 0103.92.00 0104.10.00 0104.20.00 0105.11.10 0105.11.21 0105.11.22 0105.11.90 0105.12.10 0105.12.90 0105.19.10 0105.19.92 0105.19.93 0105.94.10 0105.94.91 0105.94.92 0105.99.11 0105.99.12 0105.99.90 0106.11.00 0106.12.00 0106.19.00 0106.20.00 0106.31.00 0106.32.00 0106.39.00 0106.90.00 0201.10.10 0201.10.20 0201.20.10 0201.20.20 0201.30.10 0201.30.20 0202.10.10 0202.10.20 0202.20.10 0202.20.20 0202.30.10 0202.30.20 0203.11.00 0203.12.00 0203.19.00 0203.21.00 0203.22.00 0203.29.00 0204.10.00 0204.21.00 0204.22.10 0204.22.20 0204.23.00 0204.30.00 0204.41.00 0204.42.10 0204.42.20 0204.43.10 0204.43.20 0204.50.00 0205.00.00 0206.10.00 0206.21.00 0206.22.00 0206.29.00 0206.30.00 0206.41.00 0206.49.00 0206.80.00 0206.90.00 0207.11.10 0207.11.91 0207.11.92 0207.12.10 0207.12.91 0207.12.92 0207.13.10 0207.13.91 0207.13.92 0207.13.93 0207.14.10 0207.14.21 0207.14.22 0207.14.91 0207.14.92 0207.14.93 0207.24.11 0207.24.12 0207.24.91 0207.24.92 0207.25.11 0207.25.12 0207.25.91 0207.25.92 0207.26.10 0207.26.20 0207.26.30 0207.27.11 0207.27.12 0207.27.91 0207.27.92 0207.27.93 0207.32.00 0207.33.00 0207.34 0207.35 0207.36 0207.36 0208.10 0208.30 0208.50 0208.90 0209.00 0209.00 0209.00 0209.00 0209.00 0209.00 0210.11 0210.91 0210.92 0210.93 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0210.99 0401.10 0401.10 0401.20 0401.20 0401.30 0401.30 0402.10 0402.10 0402.21 0402.21 0402.21 0402.21 0402.29 0402.29 0402.29 0402.29 0402.91 0402.91 0402.99 0402.99 0403.10 0403.90 0403.90 0403.90 0404.10 0404.10 0404.10 2009 0704.90.10 0704.90.21 0704.90.29 0704.90.31 0704.90.39 0704.90.41 0704.90.49 0704.90.90 0705.11.11 0705.11.12 0705.11.90 0705.19.11 0705.19.12 0705.19.90 0705.21.00 0705.29.00 0706.10.11 0706.10.12 0706.10.20 0706.10.31 0706.10.32 0706.10.40 0706.10.50 0706.90.10 0706.90.21 0706.90.22 0706.90.30 0706.90.40 0706.90.51 0706.90.59 0706.90.90 0707.00.10 0707.00.91 0707.00.99 0708.10.10 0708.10.91 0708.10.99 0708.20.10 0708.20.21 0708.20.22 0708.20.30 0708.20.90 0708.90.00 0709.20.10 0709.20.91 0709.20.99 0709.30.00 0709.40.11 0709.40.12 0709.40.90 0709.51.10 0709.51.90 0709.59.10 0709.59.20 0709.59.90 0709.60.10 0709.60.90 0709.70.00 Accord de libre-échange C 0709.90.11 0709.90.19 0709.90.21 0709.90.29 0709.90.31 0709.90.32 0709.90.40 0709.90.50 0709.90.90 0710.10.00 0710.21.00 0710.22.00 0710.29.10 0710.29.90 0710.30.00 0710.80.10 0710.80.20 0710.80.30 0710.80.40 0710.80.50 0710.80.90 0710.90.00 0711.20.00 0711.39.19 0711.40.10 0711.40.90 0711.51.00 0711.59.00 0711.90.10 0712.20.00 0712.31.00 0712.32.10 0712.32.90 0712.33.00 0712.39.11 0712.39.19 0712.39.20 0712.90.10 0712.90.20 0712.90.90 0713.10.10 0713.10.90 0713.31.10 0713.31.90 0713.32.00 0713.33.10 0713.33.91 0713.33.99 0713.39.10 0713.39.90 0713.90.10 0713.90.90 0714.10.00 0714.20.00 0714.90.10 0714.90.90 0801.11.00 0801.19.00 0801.21 0801.22 0801.31 0801.32 0802.11 0802.12 0802.21 0802.22 0802.31 0802.32 0802.40 0802.50 0802.60 0802.90 0803.00 0804.10 0804.20 0804.30 0804.40 0804.50 0805.10 0805.20 0805.40 0805.50 0805.90 0806.10 0806.10 0806.10 0806.10 0807.20 0808.10 0808.10 0808.20 0808.20 0808.20 0808.20 0809.10 0809.10 0809.10 0809.20 0809.20 0809.20 0809.20 0809.20 0809.20 0809.30 0809.30 0809.30 0809.30 0809.30 0809.40 0809.40 0809.40 0809.40 0809.40 0809.40 0810.10 0810.10 62 1106.30.00 1107.10.11 1107.10.12 1107.10.91 1107.10.92 1107.20.11 1107.20.12 1107.20.91 1107.20.92 1108.11.10 1108.11.20 1108.12.00 1108.13.00 1108.14.00 1108.19.11 1108.19.12 1108.19.90 1108.20.00 1109.00.10 1109.00.20 1201.00.00 1202.10.00 1202.20.00 1203.00.00 1205.10.00 1205.90.00 1207.20.00 1207.40.00 1207.50.00 1207.91.00 1207.99.00 1208.10.10 1208.10.20 1208.90.10 1208.90.20 1209.10.00 1209.21.00 1209.22.00 1209.23.00 1209.24.00 1209.25.00 1209.29.00 1209.30.10 1209.30.20 1209.91.10 1209.91.90 1209.99.10 1209.99.20 1210.10.00 1210.20.00 1211.30.00 1211.40.00 1212.20.00 1212.91.00 1212.99.10 1212.99.20 1212.99.90 1213.00.00 C. 6 Canada–EFTA Free Trade 1214.10.00 1214.90.00 1301.20.00 1301.90.00 1302.11.00 1501.00.00 1502.00.00 1503.00.00 1505.00.00 1506.00.00 1507.10.00 1507.90.10 1507.90.90 1508.10.00 1508.90.00 1509.10.00 1509.90.00 1510.00.00 1511.10.00 1511.90.10 1511.90.20 1511.90.90 1512.11.00 1512.19.10 1512.19.20 1512.21.00 1512.29.00 1513.11.00 1513.19.00 1513.21.00 1513.29.10 1513.29.90 1514.11.00 1514.19.00 1514.91.00 1514.99.00 1515.11.00 1515.19.00 1515.21.00 1515.29.00 1515.30.00 1515.50.10 1515.50.90 1515.90.10 1515.90.91 1515.90.99 1516.20.20 1516.20.90 1517.10.20 1517.90.21 1517.90.22 1518.00.90 1601.00.11 1601.00.19 1601.00.21 1601.00.22 1601.00.23 1601.00.31 1601.00 1601.00 1602.10 1602.10 1602.20 1602.20 1602.20 1602.20 1602.20 1602.20 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.31 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.32 1602.39 1602.39 1602.39 1602.42 1602.42 1602.49 1602.49 1602.50 1602.50 1602.50 1602.90 1602.90 1602.90 1701.11 1701.11 1701.11 1701.11 1701.11 1701.11 1701.12 1701.12 1701.91 1701.99 1702.11 1702.19 1702.20 1702.30 1702.30 1702.40 1702.60 2009 2008.92.90 2008.99.10 2008.99.20 2008.99.30 2008.99.40 2105.00.92 2106.90.32 2106.90.34 2106.90.51 2106.90.52 2106.90.93 2106.90.94 2106.90.95 2106.90.97 2202.90.43 2204.10.10 2204.10.90 2204.21.10 2204.21.21 2204.21.22 2204.21.23 2204.21.24 2204.21.25 2204.21.26 2204.21.27 2204.21.28 2204.21.31 2204.21.32 2204.21.41 2204.21.49 2204.29.10 2204.29.21 2204.29.22 2204.29.23 2204.29.24 2204.29.25 2204.29.26 2204.29.27 2204.29.28 2204.29.31 2204.29.32 2204.29.41 2204.29.49 2204.30.10 2204.30.90 2206.00.11 2206.00.12 2206.00.18 2206.00.19 2206.00.21 2206.00.22 2206.00.31 2206.00.39 2206.00.41 2206.00.49 2206.00.50 2206.00.61 2206.00.62 Accord de libre-échange C 2206.00.63 2206.00.64 2206.00.65 2206.00.66 2206.00.67 2206.00.68 2206.00.71 2206.00.72 2206.00.80 2206.00.91 2206.00.92 2206.00.93 2302.30.10 2302.30.20 2302.40.11 2302.40.12 2302.40.90 2302.50.00 2303.10.00 2303.20.10 2303.20.90 2303.30.00 2304.00.00 2305.00.00 2306.10.00 2306.20.00 2306.30.00 2306.41.00 2306.49.00 2306.50.00 2306.60.00 2306.90.00 2307.00.00 2308.00.00 2309.10.00 2309.90.10 2309.90.20 2309.90.31 2309.90.32 2309.90.33 2309.90.34 2309.90.35 2309.90.36 2309.90.39 2309.90.91 2309.90.99 2401.10.10 2401.10.91 2401.10.99 2401.20.10 2401.20.90 2401.30.00 2402.10.00 2402.20.00 2402.90.00 2403.10.00 2403.91.10 2403.91.20 2403.91 2403.99 2403.99 2403.99 3502.11 3502.11 3502.19 3502.19 3502.20 3502.90 3505.10 3505.10 3505.10 3505.10 9801.20 9826.10 9826.20 9826.30 9826.40 9897.00 9898.00 9899.00 9904.00 9905.00 9929.00 9938.00 9990.00 9992.00 C. 6 Canada–EFTA Free Trade SCHED (Paragraphs 37 Tariff Item Initial Rat 1704.10.00 4.5% 1704.90.20 5% 1806.20.90 3% 1806.31.00 3% 2103.20.10 6% 2103.20.90 6% 2104.20.00 5.5% 2105.00.10 5% 2106.10.00 5.5% 2106.90.91 5% 2106.90.92 5% 2106.90.96 19% 2106.90.98 5% 8902.00.10 25% 8904.00.00 25% 8905.10.00 25% 8905.20.10 20% 8905.20.20 25% 8905.90.10 20% 8905.90.90 25% Accord de libre-échange C ANNE (alinéas 37( Numéro tarifaire Taux initi 1704.10.00 4,5 % 1704.90.20 5 % 1806.20.90 3 % 1806.31.00 3 % 2103.20.10 6 % 2103.20.90 6 % 2104.20.00 5,5 % 2105.00.10 5 % 2106.10.00 5,5 % 2106.90.91 5 % 2106.90.92 5 % 2106.90.96 19 % 2106.90.98 5 % 8902.00.10 25 % 8904.00.00 25 % 8905.10.00 25 % 8905.20.10 20 % 8905.20.20 25 % 8905.90.10 20 % 8905.90.90 25 % C. 6 Canada–EFTA Free Trade SCHED (Paragraphs 37(1)(c), (h) an Tariff Item Description of Goods 0208.40 -Of whales, dolphins and porpoises (mammals of the order Cetecea); of manatees and dugongs (mammals of the order Sirenia) 0208.40.10 ---Of whales 0208.40.90 ---Other 1516.10 -Animal fats and oils and their fractions 1516.10.10 ---Obtained entirely from fish or marine mammals Accord de libre-échange C Tariff Item Description of Goods 1516.10.90 ---Other ---Of meat: 1603.00.11 ----Of whales 1603.00.19 ----Other 2301.10 -Flours, meals and pellets, of meat or meat offal; greave 2301.10.10 ---Of whales C. 6 Canada–EFTA Free Trade Tariff Item Description of Goods 2301.10.90 ---Other 2309.90.37 ----Fish solubles 8901.10 -Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferry-boats of all kinds 8901.10.10 ---Of dimensions exceeding a length of 294.13 m and a beam of 32.31 m Accord de libre-échange C Tariff Item Description of Goods 8901.10.90 ---Other 8901.20 -Tankers 8901.20.10 ---Of dimensions exceeding a length of 294.13 m and a beam of 32.31 m 8901.20.90 ---Other ---Other: 8901.90.91 ----Of dimensions exceeding a length of 294.13 m and a beam of 32.31 m C. 6 Tariff Item Description of Goods 8901.90.99 ----Other Canada–EFTA Free Trade ---Other: 8906.90.91 ----Of dimensions exceeding a length of 294.13 m and a beam of 32.31 m 8906.90.99 ----Other Accord de libre-échange C ANNE (alinéas 37(1)c), h) et m Numéro tarifaire Dénomination des marchandises 0208.40 -De baleines, dauphins et marsouins (mammifères de l’ordre des cétacés); de lamantins et dugongs (mammifères de l’ordre des siréniens) 0208.40.10 ---De baleines 0208.40.90 ---Autres 1516.10 -Graisses et huiles animales et leurs fractions 1516.10.10 ---Provenant entièrement de poissons ou de mammifères marins 1516.10.90 ---Autres Numéro tarifaire C. 6 Canada–EFTA Free Trade Dénomination des marchandises ---De viande: 1603.00.11 ----De baleines 1603.00.19 ----Autres 2301.10 -Farines, poudres et agglomérés sous forme de pellets, de viandes ou d’abats; cretons 2301.10.10 ---De baleines Accord de libre-échange C Numéro tarifaire Dénomination des marchandises 2301.10.90 ---Autres 2309.90.37 ----Résidus solubles de poisson 8901.10 -Paquebots, bateaux de croisières et bateaux similaires principalement conçus pour le transport de personnes transbordeurs 8901.10.10 ---Dont la longueur est supérieure à 294,13 m et dont la largeur est supérieure à 32,31 m C. 6 Canada–EFTA Free Trade Numéro tarifaire Dénomination des marchandises 8901.10.90 ---Autres 8901.20 -Bateaux-citernes 8901.20.10 ---Dont la longueur est supérieure à 294,13 m et dont la largeur est supérieure à 32,31 m 8901.20.90 ---Autres ---Autres: 8901.90.91 ----Dont la longueur est supérieure à 294,13 m et dont la largeur est supérieure à 32,31 m Accord de libre-échange C Numéro tarifaire Dénomination des marchandises 8901.90.99 ----Autres ---Autres: 8906.90.91 ----Dont la longueur est supérieure à 294,13 m et dont la largeur est supérieure à 32,31 m 8906.90.99 ----Autres Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 22 An Act to amend the Criminal Code (organized crime and protection of justice system participants) ASSENTED TO 23rd JUNE, 2009 BILL C-14 SUMMARY This enactment amends the Criminal Code (a) to add to the sentencing provisions for murder so that any murder committed in connection with a criminal organization is first degree murder, regardless of whether it is planned and deliberate; (b) to create offences of intentionally discharging a firearm while being reckless about endangering the life or safety of another person, of assaulting a peace officer with a weapon or causing bodily harm and of aggravated assault of a peace officer; and (c) to extend the duration of a recognizance to up to two years for a person who it is suspected will commit a criminal organization offence, a terrorism offence or an intimidation offence under section 423.1 if they were previously convicted of such an offence, and to clarify that the recognizance may include conditions such as electronic monitoring, participation in a treatment program and a requirement to remain in a specified geographic area. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 22 An Act to amend the Criminal Code (organized crime and protection of justice system participants) [Assented to 23rd June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. C-46 CRIMINAL CODE 1. The Criminal Code is amended by adding the following after section 2: Further definitions — firearms 2.1 In this Act, “ammunition”, “antique firearm”, “automatic firearm”, “cartridge magazine”, “cross-bow”, “handgun”, “imitation firearm”, “prohibited ammunition”, “prohibited device”, “prohibited firearm”, “prohibited weapon”, “replica firearm”, “restricted firearm” and “restricted weapon”, as well as “authorization”, “licence” and “registration certificate” when used in relation to those words and expressions, have the same meaning as in subsection 84(1). 1995, c. 39, s. 139 2. (1) The portion of subsection 84(1) of the Act before the definition “ammunition” is replaced by the following: Definitions 2008, c. 6, s. 2 84. (1) In this Part, (2) Paragraph 84(5)(b) of the Act is replaced by the following: (b) an offence under section 244 or 244.2; or 1995, c. 39, s. 139; 2008, c. 6, s. 3 3. Subsection 85(1) of the Act is replaced by the following: C. 22 Using firearm in commission of offence 85. (1) Every person commits an offence who uses a firearm, whether or not the person causes or means to cause bodily harm to any person as a result of using the firearm, Criminal Code (organized crime and pr (a) while committing an indictable offence, other than an offence under section 220 (criminal negligence causing death), 236 (manslaughter), 239 (attempted murder), 244 (discharging firearm with intent), 244.2 (discharging firearm — recklessness), 272 (sexual assault with a weapon) or 273 (aggravated sexual assault), subsection 279(1) (kidnapping) or section 279.1 (hostage taking), 344 (robbery) or 346 (extortion); (b) while attempting to commit an indictable offence; or (c) during flight after committing or attempting to commit an indictable offence. 4. (1) Paragraph (a) of the definition “offence” in section 183 of the Act is amended by adding the following after subparagraph (xxxix): (xxxix.1) section 244 (discharging firearm with intent), (xxxix.2) section 244.2 (discharging firearm — recklessness), (2) Paragraph (a) of the definition “offence” in section 183 of the Act is amended by adding the following after subparagraph (xliii): (xliii.1) section 270.01 (assaulting peace officer with weapon or causing bodily harm), (xliii.2) section 270.02 (aggravated assault of peace officer), 1997, c. 23, s. 8; 2001, c. 32, ss. 9(1)(F) and (2), c. 41, s. 9 5. Subsections 231(6.01) to (6.2) of the Act are replaced by the following: Murder — terrorist activity (6.01) Irrespective of whether a murder is planned and deliberate on the part of a person, murder is first degree murder when the death is caused by that person while committing or attempting to commit an indictable offence Code criminel (crime organisé et protect judici under this or any other Act of Parliament if the act or omission constituting the offence also constitutes a terrorist activity. Murder — criminal organization (6.1) Irrespective of whether a murder is planned and deliberate on the part of a person, murder is first degree murder when (a) the death is caused by that person for the benefit of, at the direction of or in association with a criminal organization; or (b) the death is caused by that person while committing or attempting to commit an indictable offence under this or any other Act of Parliament for the benefit of, at the direction of or in association with a criminal organization. Intimidation (6.2) Irrespective of whether a murder is planned and deliberate on the part of a person, murder is first degree murder when the death is caused by that person while committing or attempting to commit an offence under section 423.1. 2008, c. 6, s. 16 6. Paragraph 239(2)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 2008, c. 6, s. 17 7. Paragraph 244(3)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244.2; or 8. The Act is amended by adding the following after section 244.1: Discharging firearm — recklessness 244.2 (1) Every person commits an offence (a) who intentionally discharges a firearm into or at a place, knowing that or being reckless as to whether another person is present in the place; or (b) who intentionally discharges a firearm while being reckless as to the life or safety of another person. C. 22 Definition of “place” (2) For the purpose of paragraph (1)(a), “place” means any building or structure — or part of one — or any motor vehicle, vessel, aircraft, railway vehicle, container or trailer. Punishment (3) Every person who commits an offence under subsection (1) is guilty of an indictable offence and Criminal Code (organized crime and pr (a) if a restricted firearm or prohibited firearm is used in the commission of the offence or if the offence is committed for the benefit of, at the direction of or in association with a criminal organization, is liable to imprisonment for a term of not more than 14 years and to a minimum punishment of imprisonment for a term of (i) five years, in the case of a first offence, and (ii) seven years, in the case of a second or subsequent offence; and (b) in any other case, is liable to imprisonment for a term of not more than 14 years and to a minimum punishment of imprisonment for a term of four years. Subsequent offences (4) In determining, for the purpose of paragraph (3)(a), whether a convicted person has committed a second or subsequent offence, if the person was earlier convicted of any of the following offences, that offence is to be considered as an earlier offence: (a) an offence under this section; (b) an offence under subsection 85(1) or (2) or section 244; or (c) an offence under section 220, 236, 239, 272 or 273, subsection 279(1) or section 279.1, 344 or 346 if a firearm was used in the commission of the offence. However, an earlier offence shall not be taken into account if 10 years have elapsed between the day on which the person was convicted of the earlier offence and the day on which the person was convicted of the offence for which sentence is being imposed, not taking into account any time in custody. 2009 Sequence of convictions only Code criminel (crime organisé et protect judici (5) For the purpose of subsection (4), the only question to be considered is the sequence of convictions and no consideration shall be given to the sequence of commission of offences or whether any offence occurred before or after any conviction. 9. The Act is amended by adding the following after section 270: Assaulting peace officer with weapon or causing bodily harm 270.01 (1) Everyone commits an offence who, in committing an assault referred to in section 270, (a) carries, uses or threatens to use a weapon or an imitation of one; or (b) causes bodily harm to the complainant. Punishment (2) Everyone who commits an offence under subsection (1) is guilty of (a) an indictable offence and liable to imprisonment for a term of not more than 10 years; or (b) an offence punishable on summary conviction and liable to imprisonment for a term of not more than 18 months. Aggravated assault of peace officer 270.02 Everyone who, in committing an assault referred to in section 270, wounds, maims, disfigures or endangers the life of the complainant is guilty of an indictable offence and liable to imprisonment for a term of not more than 14 years. 2008, c. 6, s. 28(2) 10. Paragraph 272(3)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 2008, c. 6, s. 29(2) 11. Paragraph 273(3)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 2008, c. 6, s. 30(2) 12. Paragraph 279(1.2)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 2008, c. 6, s. 31(3) 13. Paragraph 279.1(2.1)(b) of the Act is replaced by the following: C. 22 Criminal Code (organized crime and pr (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 2008, c. 6, s. 32(2) 14. Paragraph 344(2)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 2008, c. 6, s. 33(2) 15. Paragraph 346(1.2)(b) of the Act is replaced by the following: (b) an offence under subsection 85(1) or (2) or section 244 or 244.2; or 16. (1) Paragraph (a) of the definition “primary designated offence” in section 487.04 of the Act is amended by adding the following after subparagraph (vi): (vi.1) section 244.2 (discharging firearm — recklessness), (2) Paragraph (a) of the definition “primary designated offence” in section 487.04 of the Act is amended by adding the following after subparagraph (xi): (xi.1) section 270.01 (assaulting peace officer with weapon or causing bodily harm), (xi.2) section 270.02 (aggravated assault of peace officer), 2008, c. 6, s. 37(2) 17. Subparagraph 515(6)(a)(vii) of the Act is replaced by the following: (vii) that is an offence under section 244 or 244.2, or an offence under section 239, 272 or 273, subsection 279(1) or section 279.1, 344 or 346 that is alleged to have been committed with a firearm, or 18. The Act is amended by adding the following after section 718.01: Objectives — offence against peace officer or other justice system participant 718.02 When a court imposes a sentence for an offence under subsection 270(1), section 270.01 or 270.02 or paragraph 423.1(1)(b), the court shall give primary consideration to the objectives of denunciation and deterrence of the conduct that forms the basis of the offence. 2001, c. 41, s. 22(2) 19. (1) Subsection 810.01(3) of the Act is replaced by the following: Code criminel (crime organisé et protect judici Adjudication (3) If the provincial court judge before whom the parties appear is satisfied by the evidence adduced that the informant has reasonable grounds for the fear, the judge may order that the defendant enter into a recognizance to keep the peace and be of good behaviour for a period of not more than 12 months. Duration extended (3.1) However, if the provincial court judge is also satisfied that the defendant was convicted previously of an offence referred to in subsection (1), the judge may order that the defendant enter into the recognizance for a period of not more than two years. 1997, c. 23, s. 26 (2) Subsections 810.01(5) to (5.2) of the Act are replaced by the following: Conditions in recognizance (4.1) The provincial court judge may add any reasonable conditions to the recognizance that the judge considers desirable to secure the good conduct of the defendant, including conditions that require the defendant (a) to participate in a treatment program; (b) to wear an electronic monitoring device, if the Attorney General makes the request; (c) to remain within a specified geographic area unless written permission to leave that area is obtained from the judge; (d) to return to and remain at their place of residence at specified times; or (e) to abstain from the consumption of drugs, except in accordance with a medical prescription, of alcohol or of any other intoxicating substance. Conditions — firearms (5) The provincial court judge shall consider whether it is desirable, in the interests of the defendant’s safety or that of any other person, to prohibit the defendant from possessing any firearm, cross-bow, prohibited weapon, restricted weapon, prohibited device, ammunition, prohibited ammunition or explosive substance, or all of those things. If the judge decides that it is desirable to do so, the judge shall add that condition to the recognizance and specify the period during which the condition applies. C. 22 Surrender, etc. (5.1) If the provincial court judge adds a condition described in subsection (5) to a recognizance, the judge shall specify in the recognizance how the things referred to in that subsection that are in the defendant’s possession shall be surrendered, disposed of, detained, stored or dealt with and how the authorizations, licences and registration certificates that are held by the defendant shall be surrendered. Reasons (5.2) If the provincial court judge does not add a condition described in subsection (5) to a recognizance, the judge shall include in the record a statement of the reasons for not adding the condition. Criminal Code (organized crime and pr COMING INTO FORCE Order in council 20. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 13 An Act to amend the Royal Canadian Mounted Police Superannuation Act, to validate certain calculations and to amend other Acts ASSENTED TO 18th JUNE, 2009 BILL C-18 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Royal Canadian Mounted Police Superannuation Act, to validate certain calculations and to amend other Acts”. SUMMARY This enactment amends the Royal Canadian Mounted Police Superannuation Act to add the provisions necessary for the implementation of amendments made to that Act by the Public Sector Pension Investment Board Act that relate to elective service and pension transfer agreements. It also brings into force certain provisions enacted by the Public Sector Pension Investment Board Act. Finally, the enactment validates certain calculations and amends other Acts. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 13 An Act to amend the Royal Canadian Mounted Police Superannuation Act, to validate certain calculations and to amend other Acts [Assented to 18th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. R-11 ROYAL CANADIAN MOUNTED POLICE SUPERANNUATION ACT 1. The headings before section 3 of the Royal Canadian Mounted Police Superannuation Act are replaced by the following: INTERPRETATION 2. (1) The portion of subsection 3(1) of the Act before the definition “active service” is replaced by the following: Definitions 3. (1) In this Act, (2) The definitions “active service”, “disabled”, “member of the Force”, “service in the Force”, “World War I” and “World War II” in subsection 3(1) of the Act are replaced by the following: “active service” « activité de service » “active service” means any service that is specified in the regulations to be active service and is deemed for the purposes of this Act to have terminated on discharge or, in the case of a person who underwent treatment in a veterans’ C. 13 Royal Canadian Mounted hospital, as defined in the regulations, immediately following their discharge, on their release from that hospital; “disabled” « invalide » “disabled”, except in Part II, as applied to any member of the Force, means incapable, by reason of any condition, of performing their duties as a member of the Force, and, for the purposes of section 12 as applied to any person, means ordinarily incapable, by reason of any condition, of pursuing any substantially gainful occupation; “member of the Force” « membre de la Gendarmerie » “member of the Force” means a member of the Force, as those terms are defined in the Royal Canadian Mounted Police Act, holding a rank in the Force, and any other member of the Force, as those terms are defined in that Act, of a class designated in accordance with the regulations for the purposes of this Act; “service in the Force” « service dans la Gendarmerie » “service in the Force” includes any period of service (a) as a special constable of the Force before April 1, 1960, (b) as a police officer that is counted as pensionable service under subsection 24.1(9), (c) as a police officer that is described in clause 6(b)(ii)(A) or (L) if the contributor elects to pay for that service, and (d) as a police officer or as a member of the Force that forms part of any period of service described in any of clauses 6(b)(ii)(H), (I), (O) and (P) if the contributor elects to pay for that service; “World War I” « Première Guerre mondiale » “World War I” means the war that was declared on August 4, 1914 and that is deemed, for the purposes of this Act, to have terminated on August 31, 1921; “World War II” « Seconde Guerre mondiale » “World War II” means the war that was declared on September 10, 1939 and that is deemed, for the purposes of this Act, to have terminated on September 30, 1947. 2003, c. 22, par. 225(z.21)(E) (3) Subsections 3(2) and (3) of the Act are replaced by the following: Pension de retraite de la Gen References to Canadian Forces Superannuation Act (2) A reference in this Act to the Canadian Forces Superannuation Act includes a reference to any other Act of Parliament in force either before or after April 1, 1960 providing for the payment of pensions to members of the Canadian Forces based on length of service. Persons employed under Royal Canadian Mounted Police Act (3) For the purposes of this Act, the Public Service Superannuation Act and the Canadian Forces Superannuation Act, a person who is employed under the authority of the Royal Canadian Mounted Police Act but who is not a member of the Force is deemed to be employed in the public service, and any period of service of a person during which they were employed under the authority of that Act but were not a member of the Force or during which they were a person to whom Part VII of the former Act applied is deemed to be a period of service during which they were employed in the public service. 3. The Act is amended by adding the following after section 3: PART I SUPERANNUATION 4. Subsection 10(4) of the Act is amended by adding the following after paragraph (a): (b) a person who has to their credit pensionable service that includes any period described in any of clauses 6(b)(ii)(L), (O) and (P) and subsection 24.1(9) is deemed to have received during that period the annual rate of pay that is fixed by or determined in the manner prescribed by the regulations. 2003, c. 26, s. 45(4) 5. (1) Subsection 11(11) of the Act is replaced by the following: Return of contributions (11) Despite anything in this section, except as provided for in subsection (2), (7), (8), (10) or (11.1), a contributor who ceases to be a member of the Force after serving in the Force for a period less than the period prescribed by the regulations for the purposes of paragraph (7)(a) is entitled only to a return of contributions. C. 13 Entitlement to deferred annuity (11.1) A contributor who ceases to be a member of the Force after serving in the Force for a period less than the period prescribed by the regulations for the purposes of paragraph (7)(a) is entitled to a deferred annuity if they Royal Canadian Mounted (a) have to their credit two or more years of pensionable service in respect of which they have made an election under subsection 24(5) or under any regulations made under subsection 27(2); and (b) are not entitled to an immediate annuity. (2) Section 11 of the Act is amended by adding the following after subsection (12): Service in Force (13) For the purposes of this section, in calculating the length of service in the Force of a contributor, there shall not be included any period of service in respect of which they were paid a return of contributions or other lump sum payment under this Part and for which they did not elect to pay. 6. The Act is amended by adding the following after section 12.1: Return of contributions 12.2 (1) Any return of contributions to which a contributor is entitled shall be paid in accordance with section 12.1 in respect of any period of service that is included in the contributor’s pensionable service and in respect of which (a) a payment has been made into the Superannuation Account or the Royal Canadian Mounted Police Pension Fund (i) under an agreement entered into under section 24.1, or (ii) in respect of an election made by a contributor under this Part; and (b) at the time the payment was made, the Pension Benefits Standards Act, 1985 or a substantially similar provincial law required the locking-in of contributions. Pension de retraite de la Gen Deeming (2) For the purposes of this section, paragraph (b) of the definition “return of contributions” in subsection 9(1) is deemed to include a reference to the total payment made under an agreement entered into under section 24.1 or in respect of an election made by a contributor under this Part. Commuted value or transfer value 12.3 If a contributor is entitled to a return of contributions in respect of any period of service for which the contributor has made an election referred to in clause 6(b)(ii)(O), the return of contributions in respect of that period shall be paid in accordance with section 12.1. 7. Paragraph 26(d) of the Act is replaced by the following: (d) prescribing the circumstances under which and the terms and conditions on which an election under this Part may be revoked by any elector, either in whole or in part, and a new election made or deemed to have been made under this Part; 1999, c. 34, s. 194(1) 8. (1) Paragraph 26.1(1)(a) of the Act is replaced by the following: (a) fixing an annual rate of pay for the purposes of subsection 5(9) or paragraph 10(4)(b) or prescribing the manner of determining the annual rate of pay; (a.1) determining, for the purposes of paragraphs (b) to (d) of the definition “service in the force” in subsection 3(1), who is a police officer; 1992, c. 46, s. 77 (2) Subsection 26.1(2) of the Act is replaced by the following: Retroactive application of regulations (2) Regulations made under paragraph (1)(a), (c), (d), (h) or (h.4) may, if they so provide, have retroactive effect. 9. The Act is amended by adding the following before section 32: Definition of “service in the Force” 31.1 For the purposes of this Part, paragraphs (b), (c) and (d) of the definition “service in the Force” in subsection 3(1) apply only in respect of service as a member of a provincial or municipal police force with which the Minister has entered into an arrangement under section 20 of the Royal Canadian Mounted Police Act. C. 13 2000, c. 34, s. 46 10. Section 32 of the Act is replaced by the following: Eligibility for awards under Pension Act 32. Subject to this Part and the regulations, an award in accordance with the Pension Act shall be granted to or in respect of the following persons if the injury or disease — or the aggravation of the injury or disease — resulting in the disability or death in respect of which the application for the award is made arose out of, or was directly connected with, the person’s service in the Force: Royal Canadian Mounted (a) any person to whom Part VI of the former Act applied at any time before April 1, 1960 who, either before or after that time, has suffered a disability or has died; and (b) any person who served in the Force at any time after March 31, 1960 as a contributor under Part I of this Act and who has suffered a disability, either before or after that time, or has died. 11. Subsection 34(2) of the Act is repealed. VALIDATION Payments for part-time service 12. Every calculation made before October 26, 2006 of benefits payable under the Royal Canadian Mounted Police Superannuation Act — to or in respect of a former member of the Force within the meaning of subsection 3(1) of that Act — in respect of part-time service is valid to the extent that the result of the calculation is the same as it would have been if the calculation had been made in accordance with the Royal Canadian Mounted Police Superannuation Regulations, as those regulations read on October 26, 2006. Manner of determination 13. The manner in which any amount required to be paid in respect of a period of service referred to in clause 6(b)(ii)(A) of the Royal Canadian Mounted Police Superannu2009 Pension de retraite de la Gen ation Act is determined before the regulations referred to in paragraph 7(1)(c) of that Act come into force is valid. CONSEQUENTIAL AND RELATED AMENDMENTS 1992, c. 46 AN ACT TO AMEND CERTAIN ACTS IN RELATION TO PENSIONS AND TO ENACT THE SPECIAL RETIREMENT ARRANGEMENTS ACT AND THE PENSION BENEFITS DIVISION ACT 14. Subsection 69(3) of An Act to amend certain Acts in relation to pensions and to enact the Special Retirement Arrangements Act and the Pension Benefits Division Act is repealed. 1999, c. 34 PUBLIC SECTOR PENSION INVESTMENT BOARD ACT 15. Subsection 172(3) of the Public Sector Pension Investment Board Act is repealed. 2003, c. 26 AN ACT TO AMEND THE CANADIAN FORCES SUPERANNUATION ACT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS 16. Subsection 57(2) of An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts is repealed. COMING INTO FORCE Royal assent 17. Despite subsection 230(3) of the Public Sector Pension Investment Board Act and section 71 of An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts, chapter 26 of the Statutes of Canada, 2003, the following provisions come into force on the day on which this Act receives royal assent: (a) subsection 172(2) and section 191 of the Public Sector Pension Investment Board Act; C. 13 Royal Canadian Mounted (b) clauses 6(b)(ii)(L), (O) and (P) of the Royal Canadian Mounted Police Superannuation Act, as enacted by subsection 172(4) of the Public Sector Pension Investment Board Act; and (c) section 44 of An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts, chapter 26 of the Statutes of Canada, 2003. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 12 An Act to amend the Cree-Naskapi (of Quebec) Act ASSENTED TO 11th JUNE, 2009 BILL C-28 SUMMARY This enactment amends the Cree-Naskapi (of Quebec) Act, in respect of Cree bands and Category IA land, (a) to provide the Cree Regional Authority with additional responsibilities and powers, including by-law making powers; and (b) to recognize the Crees of Oujé-Bougoumou as a separate band and a local government under that Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 12 An Act to amend the Cree-Naskapi (of Quebec) Act [Assented to 11th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1984, c. 18 CREE-NASKAPI (OF QUEBEC) ACT 1. (1) The definitions “band” and “Cree band” in subsection 2(1) of the Cree-Naskapi (of Quebec) Act are replaced by the following: “band” « bande » “Cree band” « bande crie » “band” means a band incorporated by section 12 or 14 or the Oujé-Bougoumou Band referred to in section 12.1; “Cree band” means a band incorporated by section 12 or the Oujé-Bougoumou Band referred to in section 12.1; (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “OujéBougoumou Band Complementary Agreement” « convention complémentaire de la Bande de OujéBougoumou » “Oujé-Bougoumou Band Complementary Agreement” means the agreement made in accordance with the applicable amending provisions of the James Bay and Northern Quebec Agreement, which agreement provides for, among other things, the incorporation under this Act of the collectivity known as the Crees of Oujé-Bougoumou, to act as a local government; 2. The Act is amended by adding the following after section 9: C. 12 Cree-Naskapi CREE REGIONAL AUTHORITY BY-LAWS AND RESOLUTIONS Territorial limits of by-laws 9.1 A by-law of the Cree Regional Authority made under this Act may have application within the following territorial limits: (a) Category IA land; and (b) Category III land situated within the perimeter of Category IA land and the ownership of which was ceded by letters patent or by any other method before November 11, 1975. By-law may prohibit activities Statutory Instruments Act not to apply 9.2 A by-law of the Cree Regional Authority made under this Act may prohibit an activity. 9.3 The Statutory Instruments Act does not apply to a by-law or resolution of the Cree Regional Authority made or adopted under this Act. 3. The Act is amended by adding the following after section 12: OujéBougoumou Band 12.1 Pursuant to subparagraph 9.0.3A of the James Bay and Northern Quebec Agreement, the collectivity known as the Crees of OujéBougoumou is constituted as a corporation, and that corporation may be legally designated by its English name, Oujé-Bougoumou Band, its French name, Bande de Oujé-Bougoumou, or its Cree name, Oujé-Bougoumou Eenuch, subject to section 16. 4. The Act is amended by adding the following after section 13: Vesting of assets, etc., of collectivity in OujéBougoumou Band 13.1 (1) On the coming into force of this section, the assets, obligations and liabilities of the collectivity known as the Crees of OujéBougoumou shall vest in the Oujé-Bougoumou Band. OujéBougoumou Eenuch Association (2) On the coming into force of this section, the Oujé-Bougoumou Eenuch Association, a corporation established under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, ceases to Cris et Naskap exist, and all its rights, titles, interests, assets, obligations and liabilities shall vest in the OujéBougoumou Band. 5. Section 18 of the Act is replaced by the following: Provision for persons who are not Cree beneficiaries 18. A person, not being a Cree beneficiary, who immediately before July 3, 1984 was a member of one of the Indian Act Cree bands mentioned in subsection 12(1), or who immediately before the coming into force of section 12.1 was an Indian, as defined in subsection 2(1) of the Indian Act, who belonged to the collectivity known as the Crees of OujéBougoumou, (a) is deemed to be a member of that band’s successor band listed in subsection 12(2), or the Oujé-Bougoumou Band, as the case may be, for the purposes of paragraph 21(f), section 45, subsection 55(1), paragraph 62.01(d), subsection 62.1(1), paragraphs 90(2)(a) and (b) and subsections 94(3) and (4) and 103(1); (b) is, if 18 years of age or over and not declared mentally incompetent under the laws of the Province, deemed to be an elector of the successor band or of the Oujé-Bougoumou Band, as the case may be, for the purposes of section 63, subparagraph 66(1)(a)(i), sections 68 and 75 and subsection 97(2), but is not eligible to be elected chief of that band; and (c) is, if 18 years of age or over and not declared mentally incompetent under the laws of the Province, deemed to be an elector of the successor band or of the Oujé-Bougoumou Band, as the case may be, for the purposes of section 81, except where the matter submitted to a vote is a matter referred to in Part VI, VII, VIII or IX. 6. Subsection 19(1) of the Act is replaced by the following: C. 12 Special provision for Inuit of Fort George 19. (1) An Inuk of Fort George is deemed to be a member of the Chisasibi Band for the purposes of paragraph 21(f), section 45, subsection 55(1), paragraph 62.01(d), subsection 62.1(1), paragraphs 90(2)(a) and (b) and subsections 94(3) and (4) and 103(1), and is deemed to be a resident of the Category IA land of the Chisasibi Band for the purpose of paragraph 22(2)(b). Cree-Naskapi 7. Section 59 of the Act is replaced by the following: Board of directors of the OujéBougoumou Eenuch Association 58.1 Subject to section 59, the board of directors of the Oujé-Bougoumou Eenuch Association that is in office immediately before the coming into force of this section becomes the council of the Oujé-Bougoumou Band on that coming into force, and for that purpose the chairperson of that Association holds the office of chief of that band. The board of directors, including the chairperson, continues in office as such until the expiry of their term of office. Provisions of this Act to apply 59. For the transitional periods described in sections 58 and 58.1, the council has the powers and duties of a band council elected under this Act, and the provisions of this Act and the regulations apply, with any modifications that the circumstances require, to that council as if it had been elected under this Act. 8. The Act is amended by adding the following after section 60: Continuation in force of by-laws of the OujéBougoumou Eenuch Association 60.1 The by-laws of the Oujé-Bougoumou Eenuch Association that are in force immediately before the coming into force of this section remain in force on the territory, described in section 6, of the Oujé-Bougoumou Band for a period of one year commencing on that coming into force, unless repealed during that period pursuant to this Act. 9. The Act is amended by adding the following after section 62: PART I.1 CREE REGIONAL AUTHORITY Objects 62.01 The objects of the Cree Regional Authority are Cris et Naskap (a) to act as a regional government authority on Category IA land; (b) to regulate essential sanitation services — including water and sewer services, drainage and solid waste management — and housing situated on Category IA land and to regulate buildings used for the purposes of regional governance that are situated on those lands; (c) to use, manage and administer moneys and other assets; (d) to promote the general welfare of the members of the Cree bands; and (e) to promote and preserve the culture, values and traditions of the members of the Cree bands. Agreements between the Cree Regional Authority and the Government of Canada 62.02 For greater certainty, the Cree Regional Authority may assume any federal responsibilities agreed on by that Authority and the Government of Canada that are set out in the James Bay and Northern Quebec Agreement or any other agreement or in any federal Act or that are in relation to any program of the Government of Canada. By-laws respecting regional government 62.03 (1) The Council of the Cree Regional Authority may make by-laws respecting (a) the regulation — for the protection of public health and safety — of buildings used for housing or for regional governance, including their construction, maintenance, repair and demolition; (b) essential sanitation services — including water and sewer services, drainage and solid waste management — and health and hygiene in relation to those services and housing; (c) the establishment, maintenance and operation of fire departments; and (d) the protection of the environment, including natural resources, and the prevention of pollution. C. 12 Minimum standards (2) Standards established in the by-laws in respect of a matter referred to in subsection (1) must be at least equivalent in their effect to any standards established by federal or provincial laws of general application in respect of the matter. Adoption of bylaws by majority 62.04 A by-law of the Cree Regional Authority shall be made by means of the adoption, at a public meeting convened in accordance with An Act respecting the Cree Regional Authority, R.S.Q. c. A-6.1, as amended from time to time, of a resolution supported by a majority of all of the members of the Council of that Authority. Inconsistency with Cree band by-laws 62.05 (1) In the event of an inconsistency or conflict between a by-law of the Cree Regional Authority and a by-law of a Cree band, the bylaw of the Cree Regional Authority prevails to the extent of the inconsistency or conflict. Exception (2) Despite subsection (1), if the standards established in a by-law of a Cree band in respect of a matter are more stringent in their effect than the standards established in a by-law of the Cree Regional Authority, the provisions of the by-law of the Cree band that relate to those standards prevail to the extent that they are inconsistent with or conflict with the provisions of the bylaw of the Cree Regional Authority that relate to those standards. Exception 62.06 The powers conferred on the Cree Regional Authority under this Act do not affect Cree-Naskapi (a) any right, privilege or benefit set out in the James Bay and Northern Quebec Agreement that is conferred on persons who are enrolled or entitled to be enrolled as Inuit beneficiaries under section 3A of that Agreement; (b) any right, privilege or benefit set out in the Northeastern Quebec Agreement that is conferred on the Naskapi band or Naskapi beneficiaries; (c) any right, privilege or benefit set out in any other agreement that is conferred on persons referred to in paragraph (a) or Naskapi beneficiaries, if the agreement is one entered into between those persons or Naskapi beneficiaries, as the case may be — Cris et Naskap or any person who is authorized, according to the terms of the agreement, to enter into the agreement on behalf of those persons or beneficiaries — and the government of Canada or Quebec; (d) any right, privilege or benefit set out in this Act that is conferred on the Inuit of Fort George, the Naskapi band or Naskapi beneficiaries; or (e) any right, privilege or benefit conferred on persons referred to in paragraph (a), or Naskapi beneficiaries, by means of an undertaking given by the government of Canada or Quebec. Posting of bylaws 62.07 (1) Within one week after a by-law has been made by the Council of the Cree Regional Authority, the secretary of that Authority shall ensure that a copy of the bylaw is posted on the Authority’s website and at a public place designated by the Authority on the Category IA land of each Cree band. Coming into force of by-laws (2) The by-law comes into force on the day on which it is posted on the Authority’s website, whether or not it is posted within the time set out in subsection (1), or on any day, subsequent to the day on which it is posted, that may be specified in the by-law. Register of bylaws 62.08 (1) The secretary of the Cree Regional Authority shall maintain a register of by-laws made by the Council of that Authority under this Act in which shall be kept the original copy of those by-laws, including by-laws that have been repealed or are no longer in force. Recording of resolutions and votes (2) The secretary of the Cree Regional Authority shall, in respect of every resolution to make a by-law under this Act that is adopted by the Council of that Authority, record the full text of the resolution and the result of the vote in the minutes of the meeting at which it was adopted. By-laws to be sent to Minister (3) Within 30 days after the coming into force of a by-law of the Cree Regional Authority made under this Act, the secretary of that Authority shall forward a copy of the bylaw to the Minister. C. 12 Non-compliance (4) Non-compliance with this section does not affect the validity of the by-law or resolution. Obtaining copies of by-laws and resolutions 62.09 Any person is entitled to obtain a copy of a by-law or resolution of the Cree Regional Authority made or adopted under this Act on payment of any reasonable fee that is fixed by that Authority. Application to quash by-law 62.1 (1) Subject to section 62.2, a member of a Cree band or any other interested person may make application to the Court of Quebec or Superior Court of Quebec to have a by-law of the Cree Regional Authority made under this Act quashed, in whole or in part, for illegality or for irregularity in the manner or form of its making. Exclusion of Federal Court’s jurisdiction (2) Despite the Federal Courts Act, the Federal Court does not have the jurisdiction to hear applications described in subsection (1). Time limit for applying — irregularity 62.2 An application made under section 62.1 based on an irregularity in the manner or form of the making of a by-law may not be brought later than 90 days after the coming into force of the by-law. Subsequent actions 62.3 If a by-law of the Cree Regional Authority made under this Act is quashed, any action for anything done under that by-law lies only against the Cree Regional Authority and not against any other person. Cree-Naskapi 10. Paragraph 90(2)(c) of the Act is replaced by the following: (c) send a copy of it to the Minister and, in the case of a Cree band, to the Cree Regional Authority. 11. Subsection 91(2) of the Act is replaced by the following: Access to books and records (2) The Minister or a council member or elector of the Naskapi band, or any person authorized in writing by the Minister or by a council member or elector of the Naskapi band, may, at any reasonable time, inspect the books of account and financial records of the Naskapi band, and a person is guilty of an offence who (a) obstructs that person; or Cris et Naskap (b) having control or possession of those books or records, fails to give all reasonable assistance to that person. Access to books and records (2.1) The Minister or a council member or elector of a Cree band, or any person authorized in writing by the Minister, by a council member or elector of a Cree band or by the Cree Regional Authority, may, at any reasonable time, inspect the books of account and financial records of the Cree band, and a person is guilty of an offence who (a) obstructs that person; or (b) having control or possession of those books or records, fails to give all reasonable assistance to that person. 12. Subsection 93(5) of the Act is replaced by the following: If band fails to act (5) If a band fails to act under subsection (4), the Minister, or, in the case of a Cree band, the Cree Regional Authority if the Minister with the written consent of that Authority delegates to it the power, may appoint a new auditor and fix that auditor’s remuneration. Notice to band (5.1) The Minister or the Cree Regional Authority, as the case may be, shall inform the band in writing of the appointment. 13. Subsection 94(2) of the Act is replaced by the following: Where report delayed (2) If the auditor has not been able to prepare the report within the period mentioned in subsection (1), the auditor shall notify the band, the Minister and, in the case of a Cree band, the Cree Regional Authority, of the reasons for the delay. 14. (1) Subsection 100(1) of the Act is replaced by the following: When administrator may be appointed 100. (1) If, as a result of an inspection by the Minister or a person authorized by the Minister under subsection 91(2) or (2.1), the auditor’s report under subsection 94(1), or any noncompliance with the provisions of this Part, the Minister is of the opinion that the financial affairs of a band are in serious disorder, the Minister may give written notice to the band, with a copy to the Cree Regional Authority in the case of a Cree band, of his or her intention to C. 12 Cree-Naskapi appoint an administrator to administer the financial affairs of the band, setting out his or her reasons for so doing. (2) Subsection 100(3) of the Act is replaced by the following: Appointment of administrator (3) At any time between 60 days and one year after giving notice to the band under subsection (1), the Minister may, if the Minister is of the opinion that the situation referred to in the notice has not been adequately remedied, appoint, by order, an administrator to administer the financial affairs of the band, and the order shall set out the duties of the administrator. The Minister shall send a copy of the order without delay to the band and, in the case of a Cree band, to the Cree Regional Authority. 15. (1) Paragraph 104(1)(a) of the Act is replaced by the following: (a) was, immediately before November 11, 1975, residing on or occupying, by virtue of a right of residence or occupancy, land that became Category IA land by virtue of the James Bay and Northern Quebec Agreement, other than land referred to in subsection (1.1), and (2) Section 104 of the Act is amended by adding the following after subsection (1): Pre-agreement residence and occupation rights not affected (1.1) A person, not being a Cree beneficiary, who immediately before the coming into force of the Oujé-Bougoumou Band Complementary Agreement was residing on or occupying, by virtue of a right of residence or occupancy, land that became Category IA land of the OujéBougoumou Band by virtue of that Agreement, and who continues to reside on or occupy that land by virtue of that right on the coming into force of this subsection, may continue to reside on or occupy that land in accordance with that right until the expiry of that right. 16. (1) Section 105 of the Act is amended by adding the following after subsection (2): 2009 Indians who are not Cree beneficiaries Cris et Naskap (2.1) A person who, immediately before the coming into force of this subsection, was an Indian, as defined in subsection 2(1) of the Indian Act, who belonged to the collectivity known as the Crees of Oujé-Bougoumou but was not a Cree beneficiary has a right of access to the Category IA land of the Oujé-Bougoumou Band. (2) Paragraph 105(5)(d) of the Act is replaced by the following: (d) a holder of a mining right or other subsurface right referred to in section 114 or 115 or a person exercising a right under subsection 113(3) or (3.1); and 17. Subsections 113(2) and (3) of the Act are replaced by the following: Consent and compensation requirements (2) Subject to subsections (3) and (3.1), after November 11, 1975 (in the case of Category IA land other than land referred to in subsection 114(2)), on or after the day on which the OujéBougoumou Band Complementary Agreement came into force (in the case of Category IA land referred to in subsection 114(2)) or after January 31, 1978 (in the case of Category IA-N land) no mineral right or subsurface right on Category IA or IA-N land of a band may be granted or exercised and no mineral or other subsurface material or substance may be mined or extracted from such land without the consent of the band and payment to the band of compensation agreed to by the band. Exception (3) A holder of an exploration permit described in subsection 114(1) or of a right or title described in subsections 115(1) and (2) may, without the consent and payment referred to in subsection (2) but subject to subsections 116(1) and (3) and the payment of compensation as set out in subsections 116(2) and (4), explore for and exploit minerals on adjacent Category IA or IA-N land if those minerals extend continuously from the minerals that are the object of the permit, right or title. C. 12 Exception (3.1) A holder of an exploration permit described in subsection 114(2) or of a right or title described in subsection 115(1.1) may, without the consent and payment referred to in subsection (2) but subject to subsection 116(1.1) and the payment of compensation as set out in subsection 116(2), explore for and exploit minerals on adjacent Category IA land if those minerals extend continuously from the minerals that are the object of the permit, right or title. Cree-Naskapi 18. Section 114 of the Act is replaced by the following: Société de développement de la Baie James 114. (1) Where an exploration permit was granted by Quebec to the Société de développement de la Baie James before November 11, 1975 for land that subsequently became Category IA land pursuant to the James Bay and Northern Quebec Agreement, other than land referred to in subsection (2), the Société de développement de la Baie James may, in accordance with that exploration permit and subject to subsections 116(1) and (2), use that Category IA land to carry out exploration activities and exploit mineral deposits. OujéBougoumou Band (2) Where an exploration permit was, before the coming into force of the Oujé-Bougoumou Band Complementary Agreement, granted by Quebec to the Société de développement de la Baie James in respect of land that became Category IA land of the Oujé-Bougoumou Band by virtue of that Agreement, the Société de développement de la Baie James may, in accordance with that exploration permit and subject to subsections 116(1.1) and (2), use that Category IA land to carry out exploration activities and exploit mineral deposits. 19. Subsection 115(1) of the Act is replaced by the following: Holders of prior rights or titles to minerals 115. (1) A holder of a right or title (including a mining claim, development licence, exploration permit, mining concession and mining lease) to minerals (“minerals” as defined in the Mining Act (Quebec) as it read on November 11, 1975) granted before November Cris et Naskap 11, 1975 on land surrounded by or adjacent to land that subsequently became Category IA land pursuant to the James Bay and Northern Quebec Agreement, other than land that became Category IA land of the Oujé-Bougoumou Band by virtue of the Oujé-Bougoumou Band Complementary Agreement, may, subject to subsections 116(1) and (2), use that Category IA land to the extent necessary for the exercise of the holder’s right or title. Holders of prior rights or titles to minerals (1.1) A holder of a right or title (including a mining claim, development licence, exploration permit, mining concession and mining lease) to mineral substances (“mineral substances” as defined in the Mining Act, R.S.Q., c. M-13.1, as it read on October 24, 1988, or, if it is amended after that day, as it read on the day on which the Oujé-Bougoumou Band Complementary Agreement came into force) granted on or after November 11, 1975 and before the coming into force of the Oujé-Bougoumou Band Complementary Agreement, on land surrounded by or adjacent to land that became Category IA land of the Oujé-Bougoumou Band by virtue of that Agreement may, subject to subsections 116(1.1) and (2), use that Category IA land to the extent necessary for the exercise of the holder’s right or title. 20. (1) Subsection 116(1) of the Act is replaced by the following: Manner in which rights must be exercised 116. (1) The rights conferred by subsections 113(3), 114(1) and 115(1) may not be exercised otherwise than in accordance with Division XXII of the Mining Act (Quebec) as it read on November 11, 1975, except that the expropriation of servitudes provided for by that Division shall be restricted to temporary servitudes. Manner in which rights must be exercised (1.1) The rights conferred by subsections 113(3.1), 114(2) and 115(1.1) may not be exercised otherwise than in accordance with Division V of Chapter IV of the Mining Act, R.S.Q., c. M-13.1, as it read on October 22, C. 12 Cree-Naskapi 1999, or, if it is amended after that day, as it read on the day on which the Oujé-Bougoumou Band Complementary Agreement came into force, except that any expropriation that is required for the purpose of exercising those rights must be restricted to the acquisition of temporary servitudes. (2) The portion of subsection 116(2) of the Act before paragraph (a) is replaced by the following: Compensation to band (2) Where Category IA land is used pursuant to subsection 113(3) or (3.1), section 114 or subsection 115(1) or (1.1), compensation shall be paid to the Cree band in question 21. (1) Subsection 117(1) of the Act is replaced by the following: Certain preexisting rights on IA land to continue until expiry 117. (1) A holder of any lease, occupation permit or other grant or authorization the term of which had not expired on or before July 3, 1984, granted in writing by Quebec before November 11, 1975 on land that subsequently became Category IA land pursuant to the James Bay and Northern Quebec Agreement, other than land referred to in subsection (1.1), may continue to exercise the holder’s rights under that lease, permit, grant or authorization, as if the land were Category III land, until the end of the term fixed in it, or,where the term is renewed on or after November 11, 1975, until the end of the renewal period. Certain preexisting rights on IA land to continue until expiry (1.1) A holder of any lease, occupation permit or other grant or authorization the term of which had not expired on or before the coming into force of this subsection, granted in writing by Quebec — before the coming into force of the Oujé-Bougoumou Band Complementary Agreement — on land that became Category IA land of the Oujé-Bougoumou Band by virtue of that Agreement, may continue to exercise the holder’s rights under that lease, permit, grant or authorization, as if the land were Category III land, until the end of the term fixed in it, or, where the term is renewed on or after the day on which that Agreement came into force, until the end of the renewal period. Cris et Naskap (2) Section 117 of the Act is amended by adding the following after subsection (3): Previously held rights and interests — OujéBougoumou Band (3.1) If, immediately before the coming into force of this subsection, a person held a right or interest, lawfully granted by the Minister or the Oujé-Bougoumou Eenuch Association in land that became Category IA land of the OujéBougoumou Band by virtue of the OujéBougoumou Band Complementary Agreement, or in a building situated on that land, the OujéBougoumou Band shall, if that person so requests within two years after the coming into force of this subsection, without delay grant to that person under Part VIII a right or interest that is equivalent to the person’s former right or interest, at which time the person’s former right or interest expires. If the person does not make the request within two years after the coming into force of this subsection, that person’s former right or interest expires at the end of that period. (3) Section 117 of the Act is amended by adding the following after subsection (5): Previous possession or occupation — OujéBougoumou Band (5.1) If, immediately before the coming into force of this subsection, a person was in possession of, or occupied, with the explicit consent of the Oujé-Bougoumou Eenuch Association, land that became Category IA land of the Oujé-Bougoumou Band by virtue of the Oujé-Bougoumou Band Complementary Agreement, or a building owned by the OujéBougoumou Eenuch Association and situated on that land, but that person was not a holder of a right or interest in that land or building referred to in subsection (1.1) or (3.1), the OujéBougoumou Band shall, if that person so requests within two years after the coming into force of this subsection, without delay grant to that person under Part VIII a right or interest in that land or building that is equitable in the circumstances, taking into account that possession or occupation and all other relevant factors. (4) Subsection 117(7) of the Act is replaced by the following: C. 12 Certain restrictions applicable (7) Subsections 132(2) and (4) and section 137 apply, with any modifications that the circumstances require, in respect of a grant by a band of a right or interest in land pursuant to any of subsections (3) to (6). Cree-Naskapi 22. The portion of subsection 138(1) of the Act before paragraph (a) is replaced by the following: Consultation requirements before certain projects undertaken 138. (1) A Cree band shall consult with the department or agency of the Government of Quebec or other person designated by Quebec, the Cree Regional Authority and the Minister before permitting a person other than 23. Subsection 139(2) of the Act is replaced by the following: Land to be allocated for services or activities (1.1) A Cree band shall allocate Category IA land necessary for services provided or activities carried out by the Cree Regional Authority. Mode of allocation and fee (2) The allocation of land by a band pursuant to subsection (1) or (1.1) shall be effected by way of servitude, lease or similar contract, and for a fee not exceeding one dollar. 24. Subsection 166(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and’’ at the end of paragraph (d) and by adding the following after paragraph (d): (e) the Cree Regional Authority, if it is referred to in the representation. 25. Paragraph 187(2)(a) of the Act is replaced by the following: (a) that became the property of a band by virtue of section 13, 13.1 or 15 and had been purchased by Canada with money appropriated by Parliament, 26. Subsections 190(1) and (2) of the Act are replaced by the following: Cris et Naskap Property exempt from seizure, etc. 190. (1) Subject to this Part, movable and immovable property situated on Category IA or IA-N land and belonging to a Cree beneficiary, a Naskapi beneficiary or an Indian ordinarily resident on Category IA or IA-N land, and any right or interest of such a person in Category IA or IA-N land, is not subject to privilege, hypothec or any other charge, or to attachment, levy, seizure or execution, in favour of or at the instance of any person other than a Cree beneficiary, a Cree band, the Cree Regional Authority or an Indian ordinarily resident on Category IA land (in the case of property of a Cree beneficiary or of an Indian ordinarily resident on Category IA land) or a Naskapi beneficiary, the Naskapi band or an Indian ordinarily resident on Category IA-N land (in the case of property of a Naskapi beneficiary or of an Indian ordinarily resident on Category IA-N land). Property exempt from seizure, etc. (2) Subject to this Part, movable and immovable property situated on Category IA or IA-N land and belonging to a band is not subject to privilege, hypothec or any other charge, or to attachment, levy, seizure or execution, in favour of or at the instance of any person other than a Cree beneficiary, a Cree band, the Cree Regional Authority or an Indian ordinarily resident on Category IA land (in the case of property of a Cree band) or a Naskapi beneficiary, the Naskapi band or an Indian ordinarily resident on Category IA-N land (in the case of property of the Naskapi band). 27. Paragraph 191(a) of the Act is replaced by the following: (a) that became the property of a band by virtue of section 13, 13.1 or 15 and had been purchased with money appropriated by Parliament, 28. Section 194 of the Act is replaced by the following: Policing jurisdiction (Crees) 194. If the Cree Regional Authority establishes a regional police force under section 102.1 of the Police Act, R.S.Q., c. P-13.1, as it C. 12 Cree-Naskapi read on the day on which this section comes into force, that police force is recognized as having jurisdiction over the territory described in section 102.6 of that Act as it read on that day, including Category IA land, for the purpose of enforcing any by-law of a Cree band or the Cree Regional Authority, or any law of Canada or Quebec that is applicable within that territory. 29. Section 196 of the Act is amended by adding the following after subsection (1): Cree bands (1.1) Despite subsection (1), in the case of a Cree band, the band shall obtain the approval of the Cree Regional Authority before it enters into an agreement with a body referred to in any of paragraphs (1)(a) and (c) to (e). 30. Section 197 of the Act is replaced by the following: Offences under Act 197. Every person who commits an offence under subsection 38(6), section 44, subsection 91(2) or (2.1), section 95, subsection 100(4) or section 108 is liable on summary conviction to a fine not exceeding $2,000 or to imprisonment for a term not exceeding six months or to both. 31. Subsections 199(1) and (2) of the Act are replaced by the following: Contravention of by-law 199. (1) Every person who contravenes a by-law made under this Act is guilty of an offence and is liable on summary conviction to the punishment set out in the by-law. By-law may fix maximum punishment (2) A by-law made under this Act may stipulate a maximum fine or a maximum term of imprisonment, or both, for contravention of the by-law, but the maximum fine or maximum term of imprisonment may not exceed $2,000 or six months, respectively. PUBLICATION Publication 32. The Minister of Indian Affairs and Northern Development shall publish, in the Canada Gazette, a notice of the date that any land is set aside by the Governor in Council Cris et Naskap as Category IA land for the exclusive use and benefit of the collectivity known as the Crees of Oujé-Bougoumou, as soon as feasible after that land is set aside. COMING INTO FORCE Order in council 33. (1) Subject to subsection (2), the provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Coming into force (2) Sections 1, 3 to 5, 7, 8, 15 to 21, 25 and 27 come into force on the day on which — pursuant to any agreement made in accordance with the applicable amending provisions of the James Bay and Northern Quebec Agreement and providing for the incorporation of the collectivity known as the Crees of Oujé-Bougoumou — land is set aside by the Governor in Council as Category IA land for the exclusive use and benefit of that collectivity. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 8 An Act to amend the Energy Efficiency Act ASSENTED TO 14th MAY, 2009 BILL S-3 SUMMARY This enactment amends the Energy Efficiency Act to (a) clarify that classes of energy-using products may be established based on their common energy-consuming characteristics, the intended use of the products or the conditions under which the products are normally used; (b) require that all interprovincial shipments of energy-using products meet the requirements of that Act; (c) require dealers to provide the Minister of Natural Resources with prescribed information respecting the shipment or importation of energyusing products; (d) provide for the authority to prescribe as energy-using products manufactured products, or classes of manufactured products, that affect or control energy consumption; (e) broaden the scope of the labelling provisions; and (f) broaden the scope of the Minister’s report. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 8 An Act to amend the Energy Efficiency Act [Assented to 14th May, 2009] Preamble Whereas the Government of Canada is committed to ensuring sustained improvement in the efficient use of energy in all sectors of the Canadian economy; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1992, c. 36 1. The Energy Efficiency Act is amended by adding the following after section 2: Meaning of “class” 2.1 For greater certainty, a reference in this Act to a “class” in relation to energy-using products includes classes based on common energy-consuming characteristics, the intended use of the products or the conditions under which the products are normally used. 2. Subsection 4(1) of the Act is replaced by the following: Interprovincial trade and importation 4. (1) No dealer shall, for the purpose of sale or lease, ship an energy-using product from one province to another province, or import an energy-using product into Canada, unless (a) the product complies with the energy efficiency standard; and (b) the product or its package is labelled in accordance with the regulations, if any. 3. Section 5 of the Act is replaced by the following: C. 8 Information to be provided by dealers 5. (1) Every dealer who ships or imports energy-using products as described in subsection 4(1) shall provide the Minister, in the prescribed form and manner and at the prescribed time, with prescribed information respecting those products, including their energy efficiency, their shipment or their importation. Exceptions (2) A dealer is not required to provide prescribed information in respect of the energy efficiency of any particular energy-using products if the Minister is satisfied that Energy E (a) the information has previously been provided under subsection (1); or (b) information has previously been provided under subsection (1) in respect of the energy efficiency of comparable energy-using products that differ from those products only in a manner that does not relate to energy efficiency. 4. Sections 7 and 8 of the Act are replaced by the following: Retention of documents and records 7. Every dealer required by section 5 to provide the Minister with prescribed information shall keep, at the dealer’s place of business or other prescribed place in Canada, documents and records sufficient to enable the Minister to verify the accuracy and completeness of the information provided. Period of retention 8. Every dealer required by section 7 to keep documents and records shall, unless authorized by the Minister, retain each one of those documents or records until the expiry of six years after the day on which the Minister is provided with the prescribed information. 5. (1) Paragraph 20(1)(a) of the Act is replaced by the following: (a) prescribing as an energy-using product any manufactured product, or class of manufactured products, that is designed to operate using electricity, oil, natural gas or any other form or source of energy or that affects or controls energy consumption; Efficacité é (2) Paragraph 20(1)(b) of the English version of the Act is replaced by the following: (b) prescribing energy efficiency standards for energy-using products or classes of energy-using products; (3) Paragraph 20(1)(c) of the Act is replaced by the following: (c) respecting the labelling of energy-using products or their packages, or classes of energy-using products or their packages; 6. Section 36 of the Act is renumbered as subsection 36(1) and is amended by adding the following: Comparison of energy efficiency standards (2) Once every three years, in the report referred to in subsection (1), the Minister shall demonstrate the extent to which the energy efficiency standards prescribed under this Act are as stringent as comparable standards established by a province, the United Mexican States, the United States of America or a state of the United States of America. 7. Section 37 of the Act and the headings before it are replaced by the following: Report on extent energy efficiency standards established 37. Within four years after the day on which this section comes into force, the Minister shall, in the report referred to in subsection 36(1), demonstrate the extent to which energy efficiency standards have been prescribed under this Act for all energy-using products whose use has a significant impact on energy consumption in Canada. Coming into force 8. This Act comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 10 An Act to amend the Customs Act ASSENTED TO 11th JUNE, 2009 BILL S-2 SUMMARY This enactment amends the Customs Act to clarify certain provisions and to make technical amendments to others. It also imposes additional requirements in customs controlled areas, amends provisions respecting the determination of value for duty, and modifies the advance commercial reporting requirements. Finally, it provides that regulations may incorporate material by reference. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 10 An Act to amend the Customs Act [Assented to 11th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. 1 (2nd Supp.) CUSTOMS ACT 1998, c. 19, s. 262(1) 1. Subsection 2(4) of the French version of the Customs Act is replaced by the following: Délégation (4) Le ministre peut autoriser un agent ou une catégorie d’agents à exercer les pouvoirs et fonctions, y compris les pouvoirs et fonctions judiciaires ou quasi judiciaires, qui lui sont conférés en vertu de la présente loi. 2001, c. 25, s. 11 2. (1) Paragraph 11.3(a) of the Act is replaced by the following: (a) has been authorized by the Minister; or (2) Section 11.3 of the Act is renumbered as subsection 11.3(1) and is amended by adding the following: Amendment, etc., of authorization (2) The Minister may amend, suspend, renew, cancel or reinstate an authorization. 2001, c. 25, s. 11 3. (1) The portion of subsection 11.4(1) of the Act before paragraph (a) is replaced by the following: Presentation and reporting — when leaving customs controlled area 11.4 (1) Subject to subsection (2), every person who is leaving a customs controlled area shall, if requested to do so by an officer, C. 10 2001, c. 25, s. 11 (2) Paragraph 11.4(1)(b) of the Act is replaced by the following: Cust (b) report in the prescribed manner any goods that he or she has acquired through any means while in the customs controlled area; (b.1) present those goods and remove any covering from them, unload any conveyance or open any part of it, or open or unpack any package or container that an officer wishes to examine; and 2001, c. 25, s. 11 (3) Paragraph 11.4(1)(c) of the French version of the Act is replaced by the following: c) répondre véridiquement aux questions que lui pose un agent dans l’exercice des fonctions que lui confère la présente loi ou une autre loi fédérale. 2001, c. 25, s. 11 (4) Subsection 11.4(2) of the Act is replaced by the following: Presentation and reporting — within customs controlled area (1.1) Every person who is in a customs controlled area shall, if requested to do so by an officer, (a) present himself or herself in the prescribed manner to an officer and identify himself or herself; and (b) answer truthfully any questions asked by an officer in the performance of his or her duties under this or any other Act of Parliament. Non-application of subsections (1) and (1.1) (2) Subsections (1) and (1.1) do not apply to persons who are required to present themselves under section 11 or report goods under section 12. 2001, c. 25, s. 11 4. Paragraphs 11.5(a) to (e) of the Act are replaced by the following: (a) prescribing the persons or classes of persons who may be granted access under paragraph 11.3(1)(b); and (b) respecting the manner in which a person must present himself or herself under paragraphs 11.4(1)(a) and (1.1)(a) and report goods under paragraph 11.4(1)(b). 2009 1992, c. 28, s. 3(1) Doua 5. Paragraph 12(3)(b) of the Act is replaced by the following: (b) in the case of goods, other than goods referred to in paragraph (a) or goods imported as mail, on board a conveyance arriving in Canada, by prescribed persons; and 6. The Act is amended by adding the following after section 12: Advance information 12.1 The Governor in Council may make regulations (a) requiring persons to give, before a conveyance’s arrival in Canada, information about the conveyance and the persons and the goods on board the conveyance; (b) respecting the information that must be given; (c) prescribing the persons or classes of persons who must give the information; (d) prescribing the circumstances in which the information must be given; and (e) respecting the time within which and the manner in which the information must be given. 7. Paragraph 48(1)(c) of the Act is replaced by the following: (c) when any part of the proceeds of any subsequent resale, disposal or use of the goods by the purchaser is to accrue, directly or indirectly, to the vendor, the price paid or payable for the goods includes the value of that part of the proceeds or the price is adjusted in accordance with paragraph (5)(a); and 8. (1) The portion of subsection 49(1) of the French version of the Act before paragraph (a) is replaced by the following: Fixation de la valeur en douane fondée sur la valeur transactionnelle de marchandises identiques 49. (1) Sous réserve des paragraphes (2) à (5), la valeur en douane des marchandises, dans les cas où elle n’est pas déterminée par application de l’article 48, est, si elle est déterminable, la valeur transactionnelle de marchandises identiques vendues pour exportation au Canada et exportées au même moment ou à peu près au même moment que les C. 10 Cust marchandises à apprécier, pourvu que cette valeur transactionnelle soit la valeur en douane des marchandises identiques vendues : (2) Paragraph 49(1)(a) of the Act is replaced by the following: (a) at the same or substantially the same trade level as the goods being appraised; and (3) Paragraph 49(1)(b) of the French version of the Act is replaced by the following: b) en une quantité égale ou sensiblement égale à celle des marchandises à apprécier. (4) Paragraphs 49(2)(a) to (c) of the English version of the Act are replaced by the following: (a) at the same or substantially the same trade level as the goods being appraised but in different quantities; (b) at a trade level different from that of the goods being appraised but in the same or substantially the same quantities; or (c) at a trade level different from that of the goods being appraised and in different quantities. (5) Paragraph 49(3)(b) of the English version of the Act is replaced by the following: (b) if the transaction value is in respect of identical goods sold under the conditions described in any of paragraphs (2)(a) to (c), differences in the trade levels of the identical goods and the goods being appraised or the quantities in which the identical goods were sold and the goods being appraised were imported or both, as the case may be. 9. (1) The portion of subsection 50(1) of the French version of the Act before paragraph (a) is replaced by the following: Valeur en douane fondée sur la valeur transactionnelle de marchandises semblables 50. (1) Sous réserve des paragraphes (2) et 49(2) à (5), la valeur en douane des marchandises, dans les cas où elle n’est pas déterminée par application de l’article 48 ou 49, est, si elle est déterminable, la valeur transactionnelle de marchandises semblables vendues pour expor2009 Doua tation au Canada et exportées au même moment ou à peu près au même moment que les marchandises à apprécier, pourvu que cette valeur transactionnelle soit la valeur en douane des marchandises semblables vendues : (2) Paragraph 50(1)(a) of the Act is replaced by the following: (a) at the same or substantially the same trade level as the goods being appraised; and (3) Paragraph 50(1)(b) of the French version of the Act is replaced by the following: b) en une quantité égale ou sensiblement égale à celle des marchandises à apprécier. 2001, c. 25, s. 60 10. Subsections 99.2(1) and (2) of the Act are replaced by the following: Search of persons 99.2 (1) An officer may search any person who is in or is leaving a customs controlled area, other than a prescribed person or a member of a prescribed class of persons who may be searched under subsection (2), if the officer suspects on reasonable grounds that the person has secreted on or about their person anything in respect of which this Act or the regulations have been or might be contravened, anything that would afford evidence with respect to a contravention of this Act or the regulations or any goods the importation or exportation of which is prohibited, controlled or regulated under this or any other Act of Parliament. Search of prescribed persons (2) An officer may, in accordance with the regulations, search any prescribed person or member of a prescribed class of persons who is in or is leaving a customs controlled area. 2001, c. 25, s. 60 11. Section 99.3 of the Act is replaced by the following: Non-intrusive examination of goods 99.3 (1) An officer may, in accordance with the regulations and without individualized suspicion, conduct a non-intrusive examination of goods in the custody or possession of a person who is in or is leaving a customs controlled area. C. 10 Other examination of goods (2) An officer may examine any goods in the custody or possession of a person who is in or is leaving a customs controlled area and open or cause to be opened any baggage, package or container and take samples of the goods in reasonable amounts, if the officer suspects on reasonable grounds that this Act or any other Act of Parliament administered or enforced by the officer or any regulations made under it have been or might be contravened in respect of the goods. Examination of abandoned goods (3) An officer may, at any time, open or cause to be opened, examine and detain any goods, baggage, package or container that is found abandoned or that is not in the possession of any person in a customs controlled area. 2001, c. 25, s. 61 12. Subsection 107.1(1) of the Act is replaced by the following: Passenger information 107.1 (1) The Minister may, under prescribed circumstances and conditions, require any prescribed person or prescribed class of persons to provide, or to provide access to, within the prescribed time and in the prescribed manner, prescribed information about any person on board a conveyance. 2001, c. 25, s. 68 13. Paragraph 127.1(1)(b) of the French version of the Act is replaced by the following: Cust b) il y a eu infraction, mais le ministre est d’avis qu’une erreur a été commise concernant la somme établie, versée ou réclamée en garantie et que celle-ci doit être réduite. 2001, c. 25, s. 75 14. Subsection 139.1(4) of the French version of the Act is replaced by the following: Signification au ministre (4) Au plus tard le quinzième jour précédant la date d’audition de la requête, le requérant signifie au ministre, ou à l’agent que celui-ci désigne pour l’application du présent article, un avis de la requête et de l’audition. 2005, c. 38, s. 82 15. Section 149.1 of the French version of the Act is replaced by the following: Doua Preuve de l’absence d’appel 149.1 Constitue la preuve des énonciations qui y sont renfermées l’affidavit d’un agent — souscrit en présence d’un commissaire ou d’une autre personne autorisée à le recevoir — indiquant qu’il a la charge des registres pertinents, qu’il a connaissance de la pratique de l’Agence ou de l’Agence du revenu du Canada, selon le cas, qu’un examen des registres démontre qu’un avis de cotisation prévu à la partie V.1 a été posté ou autrement envoyé à une personne un jour donné, en application de la présente loi, et que, après avoir fait un examen attentif des registres et y avoir pratiqué des recherches, il lui a été impossible de constater qu’un avis d’opposition ou d’appel concernant la cotisation a été reçu dans le délai imparti à cette fin. 2001, c. 25, s. 85(1) 16. Paragraph 164(1)(b) of the Act is repealed. 17. The Act is amended by adding the following after section 164: Incorporation by reference 164.1 A regulation made under this Act may incorporate by reference any material regardless of its source and either as it exists on a particular date or as amended from time to time. COMING INTO FORCE Order in council 18. Section 5 comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 11 An Act to amend the Arctic Waters Pollution Prevention Act ASSENTED TO 11th JUNE, 2009 BILL C-3 SUMMARY This enactment amends the definition “arctic waters” in the Arctic Waters Pollution Prevention Act to extend the geographic application of the Act to the outer limit of the exclusive economic zone of Canada north of the 60th parallel of north latitude. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 11 An Act to amend the Arctic Waters Pollution Prevention Act [Assented to 11th June, 2009] R.S., c. A-12 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. The definition “arctic waters” in section 2 of the Arctic Waters Pollution Prevention Act is replaced by the following: “arctic waters” « eaux arctiques » “arctic waters” means the internal waters of Canada and the waters of the territorial sea of Canada and the exclusive economic zone of Canada, within the area enclosed by the 60th parallel of north latitude, the 141st meridian of west longitude and the outer limit of the exclusive economic zone; however, where the international boundary between Canada and Greenland is less than 200 nautical miles from the baselines of the territorial sea of Canada, the international boundary shall be substituted for that outer limit; Coming into force 2. This Act comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 9 An Act to amend the Transportation of Dangerous Goods Act, 1992 ASSENTED TO 14th MAY, 2009 BILL C-9 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Transportation of Dangerous Goods Act, 1992”. SUMMARY This enactment amends the Transportation of Dangerous Goods Act, 1992, in order to enhance public safety — the safety of human life and health and of property and the environment. The main amendments fall into two categories: new security requirements and safety amendments. These amendments include the following: (a) requirements for security plans and security training; (b) a requirement that prescribed persons must hold transportation security clearances to transport dangerous goods, and the establishment of regulatory authority in relation to appeals and reviews of any decision in respect of those clearances; (c) the creation of a choice of instruments — regulations, security measures and interim orders — to govern security in relation to dangerous goods; (d) the use of industry emergency response assistance plans approved by Transport Canada to respond to an actual or apprehended release of dangerous goods during their transportation; (e) the establishment of regulatory authority to require that dangerous goods be tracked during transport or reported if lost or stolen; (f) clarification of the Act to ensure that it is applicable uniformly throughout Canada, including to local works and undertakings; (g) reinforcement and strengthening of the Emergency Response Assistance Plan Program; and (h) authority for inspectors to inspect any place in which standardized means of containment are being manufactured, repaired or tested. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 9 An Act to amend the Transportation of Dangerous Goods Act, 1992 [Assented to 14th May, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1992, c. 34 1997, c. 9, s. 122 TRANSPORTATION OF DANGEROUS GOODS ACT, 1992 1. (1) The definitions “accidental release”, “import”, “safety requirements”, “safety standards” and “ship” in section 2 of the Transportation of Dangerous Goods Act, 1992 are repealed. (2) The definition “indication de danger” in section 2 of the French version of the Act is repealed. (3) The definitions “means of containment”, “means of transport”, “shipping record” and “standardized means of containment” in section 2 of the Act are replaced by the following: “means of containment” « contenant » “means of containment” means a container or packaging, or any part of a means of transport that is or can be used to contain goods; “means of transport” « moyen de transport » “means of transport” means a road or railway vehicle, aircraft, vessel, pipeline or any other contrivance that is or can be used to transport persons or goods; “shipping record” « registre d’expédition » “shipping record” means a record that relates to dangerous goods being imported, offered for transport, handled or transported and that describes or contains information relating to the goods, and includes electronic records of information; 2 “standardized means of containment” « contenant normalisé » C. 9 Transportation of Dan “standardized means of containment” means a means of containment to which a safety standard applies under the regulations. (4) The definition “safety mark” in section 2 of the English version of the Act is replaced by the following: “safety mark” « indication de sécurité » “safety mark” means a dangerous goods mark or a compliance mark; (5) The definition “sécurité publique” in section 2 of the French version of the Act is replaced by the following: « sécurité publique » “public safety” « sécurité publique » Sécurité pour la santé et la vie humaines, les biens et l’environnement. (6) Section 2 of the Act is amended by adding the following in alphabetical order: “compliance mark” « indication de conformité » “dangerous goods mark” « indication de marchandises dangereuses » “compliance mark” means a symbol, device, sign, label, placard, letter, word, number or abbreviation, or any combination of those things, that is to be displayed on a means of containment used or intended to be used in importing, offering for transport, handling or transporting dangerous goods to indicate compliance with a safety standard that applies under the regulations; “dangerous goods mark” means a symbol, device, sign, label, placard, letter, word, number or abbreviation, or any combination of those things, that is to be displayed to indicate the presence or nature of danger on dangerous goods, or on a means of containment or means of transport used in importing, offering for transport, handling or transporting dangerous goods; “organization” « organisation » “organization” has the same meaning as in section 2 of the Criminal Code; “person” « personne » “person” means an individual or an organization; “release” « rejet » “release” means, in relation to dangerous goods, Transport des marchand (a) a discharge, emission, explosion, outgassing or other escape of dangerous goods, or any component or compound evolving from dangerous goods, from a means of containment being used to handle or transport the dangerous goods, or (b) an emission, from a means of containment being used to handle or transport dangerous goods, of ionizing radiation that exceeds a level or limit established under the Nuclear Safety and Control Act; “safety requirement” « règle de sécurité » “safety requirement” means (a) a requirement for persons engaged in importing, offering for transport, handling or transporting dangerous goods, (b) a requirement for persons engaged in designing, manufacturing, repairing, testing or equipping a means of containment used or intended to be used in importing, offering for transport, handling or transporting dangerous goods, or (c) a requirement for reporting by persons referred to in paragraphs (a) and (b) or a requirement for their training or registration; “safety standard” « norme de sécurité » “security requirement” « règle de sûreté » “vessel” « bâtiment » “safety standard” means a standard for a means of containment used or intended to be used in importing, offering for transport, handling or transporting dangerous goods, including standards for the means of containment’s design, manufacture, repair, testing, equipping, functioning, use or performance; “security requirement” means a requirement for persons engaged in importing, offering for transport, handling or transporting dangerous goods established under regulations made under section 27.1; “vessel” has the same meaning as in section 2 of the Canada Shipping Act, 2001. (7) Section 2 of the French version of the Act is amended by adding the following in alphabetical order: « indication de sécurité » “safety mark” « indication de sécurité » Toute indication de marchandises dangereuses ou toute indication de conformité. C. 9 Transportation of Dan 2. The Act is amended by adding the following after section 2: Interpretation 2.1 For the purposes of this Act, a person who is named in a shipping record accompanying dangerous goods or a means of containment on entry into Canada as the person in Canada to whom the dangerous goods or the means of containment is to be delivered is deemed to be importing the dangerous goods or means of containment. 3. Subsections 3(2) to (4) of the Act are replaced by the following: Application (2) In addition to its application in Canada, this Act applies to vessels and aircraft outside Canada that are registered in Canada. Exceptions — regulations and certificates (3) This Act does not apply to the extent that its application is excluded by a regulation made under paragraph 27(1)(e) or by a certificate issued under section 31. Other exceptions (4) This Act does not apply in relation to (a) any activity or thing under the sole direction or control of the Minister of National Defence, including in circumstances in which the regulations provide that it is under that Minister’s sole direction or control; (b) commodities transported by a pipeline governed by the National Energy Board Act, the Canada Oil and Gas Operations Act or the law of a province; or (c) dangerous goods confined only by the permanent structure of a vessel. 4. Section 5 of the Act and the heading before it are replaced by the following: SAFETY AND SECURITY SAFETY REQUIREMENTS, SECURITY REQUIREMENTS, SAFETY STANDARDS AND SAFETY MARKS General prohibition 5. No person shall import, offer for transport, handle or transport any dangerous goods unless (a) the person complies with all safety requirements and security requirements that apply under the regulations; Transport des marchand (b) the goods are accompanied by all documents that are required under the regulations; (c) a means of containment is used for the goods that is required or permitted under the regulations; and (d) the means of containment and means of transport comply with all safety standards that apply under the regulations and display all applicable safety marks in accordance with the regulations. Prohibition — means of containment 5.1 No person shall design, manufacture, repair, test or equip a means of containment used or intended to be used in importing, offering for transport, handling or transporting dangerous goods unless the person complies with all safety requirements that apply under the regulations. 5. The Act is amended by adding the following after section 5.1: TRANSPORTATION SECURITY CLEARANCES Prohibition 5.2 (1) No prescribed person shall import, offer for transport, handle or transport dangerous goods in a quantity or concentration that is specified by regulation — or that is within a range of quantities or concentrations that is specified by regulation — unless the person has a transportation security clearance granted under subsection (2). Granting, suspending, etc. (2) The Minister may, for the purposes of this Act, grant or refuse to grant a transportation security clearance to any person or suspend or revoke such a clearance. 1994, c. 26, s. 69 6. Sections 6 and 7 of the Act are replaced by the following: COMPLIANCE MARKS AND DANGEROUS GOODS MARKS Prohibition — compliance mark 6. No person shall affix or display on a means of containment a compliance mark that is required or permitted under the regulations — or another mark that is likely to be mistaken for such a mark — in respect of the manufacture, C. 9 Transportation of Dan repair or testing of the means of containment, unless the manufacture, repair or testing was done in compliance with all safety requirements and safety standards applicable to that compliance mark. Prohibition — dangerous goods mark 6.1 No person shall affix or display on dangerous goods, a means of containment or a means of transport a dangerous goods mark that is required or permitted under the regulations — or another mark that is likely to be mistaken for such a mark — if the mark is misleading as to the presence of danger or the nature of any danger. EMERGENCY RESPONSE ASSISTANCE PLANS AND SECURITY PLANS EMERGENCY RESPONSE ASSISTANCE PLANS Emergency response assistance plan 7. (1) No person shall import, offer for transport, handle or transport dangerous goods in a quantity or concentration that is specified by regulation — or that is within a range of quantities or concentrations that is specified by regulation — unless the person has an emergency response assistance plan that is approved under this section before (a) importing the dangerous goods; (b) offering the dangerous goods for transport; or (c) handling or transporting the dangerous goods, in the case where no other person is required to have an emergency response assistance plan under paragraph (a) or (b) in respect of that handling or transporting. Contents (2) The plan shall outline what is to be done to respond to an actual or anticipated release of the dangerous goods in the course of their handling or transporting that endangers, or could endanger, public safety. Approval (3) The Minister may approve the plan for a specified period, if the Minister believes on reasonable grounds that it can be implemented and will be effective in responding to such a release. Transport des marchand Interim approval (4) The Minister may grant an interim approval of the plan for a specified period before finishing the investigation of the matters to be considered under subsection (3) if the Minister has no reason to suspect that the plan cannot be implemented or will be ineffective in responding to such a release. Revocation of approval (5) The Minister may revoke an approval of an emergency response assistance plan if (a) in the case of an interim approval, the Minister subsequently believes on reasonable grounds that the plan cannot be implemented or will be ineffective in responding to such a release; (b) the Minister believes on reasonable grounds that the plan can no longer be implemented or will no longer be effective in responding to such a release; (c) the Minister has requested changes to the plan that the Minister believes on reasonable grounds are needed to make it effective in responding to such a release and the changes have not been made within a reasonable time or have been refused; (d) the Minister believes on reasonable grounds that there has been a release of dangerous goods to which the plan applies — or that such a release has been anticipated — and that the plan was not used to respond to the actual or anticipated release; or (e) a direction made in respect of the plan under paragraph 7.1(a) has not been complied with. Direction and permission 7.1 The Minister may, if the Minister believes that doing so is necessary for the protection of public safety, (a) direct a person with an approved emergency response assistance plan to implement the plan, within a reasonable time as specified in the direction, in order to respond to an actual or anticipated release of dangerous goods to which the plan applies; or (b) authorize a person with an approved emergency response assistance plan to implement the plan in order to respond to an actual or anticipated release of dangerous C. 9 Transportation of Dan goods if the Minister does not know the identity of any person required under subsection 7(1) to have an emergency response assistance plan in respect of the release. Compensation 7.2 (1) The Minister shall compensate, in accordance with the regulations, any person who is authorized to implement an approved emergency response assistance plan under paragraph 7.1(b) for expenses authorized to be compensated under the regulations that are incurred by that person as a result of implementing the plan. Payment out of C.R.F. (2) The compensation shall be paid out of the Consolidated Revenue Fund. SECURITY PLANS Security plan 7.3 (1) No prescribed person shall import, offer for transport, handle or transport dangerous goods in a quantity or concentration that is specified by regulation — or that is within a range of quantities or concentrations that is specified by regulation — before the person has undergone security training in accordance with the regulations, has a security plan that meets the requirements of subsection (2) and has implemented the plan in accordance with the regulations. Contents (2) The plan shall, in accordance with the regulations, set out measures to prevent the dangerous goods from being stolen or otherwise unlawfully interfered with in the course of the importing, offering for transport, handling or transporting. 7. Section 8 of the Act is replaced by the following: Improper means of containment 8. No person shall sell, offer for sale, deliver, distribute, import or use a standardized means of containment unless it displays all applicable safety marks in accordance with the regulations. 8. (1) Subsection 9(1) of the French version of the Act is replaced by the following: Registre des clients 9. (1) Les fabricants ou les importateurs de contenants normalisés tiennent un registre des personnes à qui ils les fournissent. Transport des marchand (2) Subsection 9(2) of the Act is replaced by the following: Notice of defective construction or recall (2) If the Minister believes on reasonable grounds that any standardized means of containment is unsafe as supplied by the manufacturer or as imported for handling or transporting dangerous goods, the Minister may direct the manufacturer or importer to issue a notice of defective construction or recall to the person to whom it was supplied. Notice of defective repair or defective testing (3) The Minister may direct a person who repaired or tested a standardized means of containment to issue a notice of defective repair or defective testing, as the case may be, to the person for whom it was repaired or tested, or to publish the notice in a manner such that the notice is likely to come to that person’s attention, if the Minister believes on reasonable grounds that the person who repaired or tested the standardized means of containment (a) failed to comply with an applicable safety requirement or safety standard; and (b) affixed to the standardized means of containment — or did not remove from it — the safety mark that indicates that the safety requirement or safety standard had been complied with. 9. The heading before section 10 of the Act is replaced by the following: INSPECTORS 10. Subsections 10(1) and (2) of the Act are replaced by the following: Designation of inspectors 10. (1) The Minister may designate persons or classes of persons whom the Minister considers qualified to act as inspectors for any of the purposes of this Act, and may revoke such a designation. Certificate of designation (2) The Minister shall give every inspector a certificate of designation showing the matters in respect of which the inspector is designated, including the purposes, classes of dangerous goods, means of containment, means of transport and places for which the inspector is designated. C. 9 1994, c. 26, s. 70 11. Sections 11 and 12 of the Act are repealed. Transportation of Dan 12. Section 13 of the Act is replaced by the following: Obstruction of inspectors 13. (1) When an inspector is exercising powers or carrying out duties and functions under this Act, no person shall (a) fail to comply with any reasonable request of the inspector; (b) knowingly make any false or misleading statement either orally or in writing to the inspector; (c) except with the authority of the inspector, remove, alter or interfere in any way with anything detained or removed by or under the direction of the inspector; or (d) otherwise obstruct or hinder the inspector. Obstruction of qualified person (2) When a qualified person is exercising powers under subsection 15(3), no person shall (a) fail to comply with any reasonable request of the qualified person; (b) knowingly make any false or misleading statement either orally or in writing to the qualified person; or (c) otherwise obstruct or hinder the qualified person. 13. Subsections 14(1) and (2) of the Act are replaced by the following: Financial responsibility 14. (1) No person shall import, offer for transport, handle or transport dangerous goods, or manufacture or import standardized means of containment, unless the person is financially responsible in accordance with the regulations. Proof of financial responsibility (2) A person who carries on any of those activities shall provide to an inspector on request the proof that is required under the regulations of financial responsibility. 14. Section 15 of the Act is replaced by the following: 2009 Powers of inspector Transport des marchand 15. (1) For the purpose of ensuring compliance with this Act, an inspector may, subject to section 16 but at any reasonable time, stop any means of transport for which the inspector is designated and enter and inspect any place, or any such means of transport, if the inspector believes on reasonable grounds that in or on the place or means of transport there are (a) dangerous goods being offered for transport, handled or transported; (b) means of containment being manufactured, repaired or tested on which a compliance mark is displayed or will be affixed; (c) standardized means of containment; (d) books, shipping records, emergency response assistance plans, security plans or other documents that contain any information relevant to the purposes of this Act; or (e) computer systems, data processing systems or any other electronic devices or media that contain information relevant to the purposes of this Act, or that have such information available to them. Powers of inspector (2) In the course of carrying out an inspection under subsection (1), an inspector may (a) open and inspect, or request the opening and inspection of, any means of containment for which the inspector is designated, including any closures, valves, safety release devices or other appurtenances that are essential to the use of the means of containment to contain dangerous goods, if the inspector believes on reasonable grounds that it is being used to handle or transport dangerous goods or to contain dangerous goods offered for transport; (b) open and inspect, or request the opening and inspection of, any means of containment described in paragraph (1)(b) or (c), including any closures, valves, safety release devices or other appurtenances that are essential to the use of the means of containment to contain dangerous goods; C. 9 Transportation of Dan (c) for the purpose of analysis, take, or request the taking of, a reasonable quantity of anything the inspector believes on reasonable grounds to be dangerous goods; (d) examine, or request the examining of, information described in paragraph (1)(d) or (e) that the inspector believes on reasonable grounds is relevant to the purposes of this Act and make, or request the making of, copies of any of it; and (e) ask questions of any person for the purposes of this Act. Authorized person (3) An inspector may, in accordance with the regulations, authorize any qualified person to enter any place or means of transport that the inspector may enter under subsection (1) and to exercise any of the powers set out in subsection (2). 15. Paragraph 16(2)(b) of the English version of the Act is replaced by the following: (b) entry is necessary for the purposes of this Act, and 16. The Act is amended by adding the following after section 16: Certificate of inspection 16.1 (1) If an inspector or a person authorized under subsection 15(3) opens anything, or requests that anything be opened, for inspection or for the taking of a reasonable quantity of anything that is sealed or closed up, the inspector shall provide the person who has the charge, management or control of the thing that was opened with a certificate in prescribed form as proof that it was opened for that purpose. Effect of inspector’s certificate (2) The person to whom, or for whose benefit, the certificate is provided is not liable, either civilly or criminally, in respect of any act or omission of the inspector or authorized person in the course of the inspection of the thing or the taking of the reasonable quantity from it, but is not otherwise exempt from compliance with this Act and the regulations. 17. Section 17 of the Act is replaced by the following: 2009 Remedying noncompliance — dangerous goods Transport des marchand 17. (1) An inspector may remove to an appropriate place any dangerous goods, the means of containment being used to handle or transport them or a standardized means of containment, or direct a person to do so, and may detain the thing removed until satisfied that the activity will be done in compliance with this Act, if the inspector believes on reasonable grounds that any of the following activities is being carried out in a way that does not comply with this Act: (a) importing, offering for transport, handling or transporting dangerous goods; or (b) selling, offering for sale, delivering, distributing, importing or using a standardized means of containment. Other measures (2) The inspector may also take any other measures necessary to remedy the non-compliance or direct a person to take the necessary measures. Direction not to bring into Canada (3) If the dangerous goods or means of containment originates from outside Canada and the inspector believes on reasonable grounds that measures to remedy the noncompliance are not possible or desirable, the inspector may direct that the goods or means of containment not be brought into Canada or that they be returned to their place of origin. Persons liable to direction (4) A direction may be issued under this section only to a person who, at the time of the non-compliance or at any time afterward, owns, imports or has the charge, management or control of the dangerous goods or means of containment. 18. (1) Subsection 18(1) of the Act is replaced by the following: Duty to report 18. (1) Any person who has the charge, management or control of a means of containment shall report to every person prescribed for the purposes of this subsection any actual or anticipated release of dangerous goods that is or could be in excess of a quantity or concentration specified by regulation from the means of containment if the release endangers, or could endanger, public safety. C. 9 Transportation of Dan (2) Subsection 18(2) of the French version of the Act is replaced by the following: Obligation de prendre des mesures d’urgence (2) La personne tenue de faire rapport prend, dans les meilleurs délais possibles, les mesures d’urgence raisonnables pour atténuer ou prévenir tout danger pour la sécurité publique qui résulte d’un tel rejet ou qu’un tel rejet peut raisonnablement faire craindre. (3) Section 18 of the Act is amended by adding the following after subsection (2): Loss or theft (3) If dangerous goods in excess of a quantity or concentration that is specified by regulation are lost or stolen during their handling or transporting, any person who had the charge, management or control of the goods immediately before the loss or theft shall report it to every person prescribed for the purposes of this subsection. 19. Sections 19 and 20 of the Act are replaced by the following: Grounds for intervention 19. (1) If an inspector believes on reasonable grounds that doing so is necessary to prevent an anticipated release of dangerous goods that could endanger public safety, or to reduce any danger to public safety that results or could result from an actual release of dangerous goods, the inspector may do any of the following: (a) remove the dangerous goods, or a means of containment being used to handle or transport the dangerous goods, to an appropriate place, or direct a person to remove the dangerous goods or the means of containment to such a place; (b) direct a person to do anything else to prevent the release or reduce any resulting danger to public safety, or to refrain from doing anything that might impede the prevention of the release or the reduction of the danger; and (c) exercise any power set out in section 15. 2009 Persons liable to direction Transport des marchand (2) Such a direction may be issued only to any person (a) who, when the release occurs or is anticipated or at any time afterward, owns, imports or has the charge, management or control of the dangerous goods or means of containment; (b) who is required under section 7 to have an emergency response assistance plan that applies to the actual or anticipated release; (c) who is responding to the actual or anticipated release in accordance with an emergency response assistance plan approved under section 7; or (d) who causes or contributes to the occurrence of the actual or anticipated release. PERSONAL LIABILITY Personal liability 20. The following persons are not personally liable, either civilly or criminally, in respect of any act or omission done in good faith and without negligence: (a) any person who responds to an actual or anticipated release using an emergency response assistance plan that applies to the release, acts in accordance with the plan and informs the Canadian Transport Emergency Centre of the Department of Transport of their response to the release; (b) any person who is directed or required under paragraph 7.1(a), section 17, subsection 18(2) or paragraph 19(1)(a) or (b) to do or refrain from doing anything and acts in accordance with the direction or requirement; and (c) any person who acts in accordance with an authorization given under paragraph 7.1(b). 20. Subsection 21(1) of the Act is replaced by the following: Minister may order inquiry 21. (1) If a release of dangerous goods from a means of containment being used to handle or transport dangerous goods has resulted in death or injury to any person or damage to any property or the environment, the Minister may direct a public inquiry to be made, subject to the C. 9 Transportation of Dan Canadian Transportation Accident Investigation and Safety Board Act, and may authorize any person or persons that the Minister considers qualified to conduct the inquiry. 21. Subsection 22(3) of the French version of the Act is replaced by the following: Présomption (3) Le défendeur qui se livre à une activité visée par la présente loi est présumé, lors d’une action intentée en vertu du présent article, coupable de faute ou de négligence, sauf s’il établit, par prépondérance des probabilités, que lui-même et les personnes dont il est légalement responsable ont pris toutes les précautions voulues pour se conformer à la présente loi et à ses règlements. 22. Subsection 23(1) of the Act is replaced by the following: Notice for disclosure of information 23. (1) The Minister may, by registered mail, send a written notice to any manufacturer, producer, distributor or importer of any product, substance or organism requesting the disclosure of information relating to its formula, composition or chemical ingredients and any similar information that the Minister considers necessary for the administration or enforcement of this Act. 23. (1) Subsection 24(1) of the Act is amended by striking out the word “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) information in a record of a communication between any person and the Canadian Transport Emergency Centre of the Department of Transport relating to an actual or anticipated release of dangerous goods; and (c) information relating to security that is obtained under paragraph 15(2)(d). 1994, c. 26, s. 71(F) (2) Subsection 24(4) of the Act is replaced by the following: Disclosure (4) No person shall knowingly communicate privileged information or allow it to be communicated to any person, or allow any other person to have access to the information, except Transport des marchand (a) with the written consent of the person from whom the information was obtained under section 15 or who disclosed the information under section 23 or in a record of a communication referred to in paragraph (1)(b); (b) for the purposes of the administration or enforcement of this Act, in the case of information obtained under section 15 or disclosed under section 23; or (c) to an inspector for the purposes of emergency response analysis or training of inspectors, in the case of information obtained in a record of a communication referred to in paragraph (1)(b). 24. The heading before section 27 of the Act is replaced by the following: REGULATIONS, MEASURES AND ORDERS 25. (1) Paragraph 27(1)(b) of the French version of the Act is replaced by the following: b) déterminer des divisions, subdivisions et groupes pour les marchandises dangereuses ou pour chacune des classes de marchandises dangereuses; (2) Paragraphs 27(1)(e) to (u) of the Act are replaced by the following: (e) exempting from the application of this Act and the regulations, or any of their provisions, the importing, offering for transport, handling or transporting of dangerous goods; (f) respecting, for the purposes of paragraph (e), any quantities or concentrations of dangerous goods or ranges of them, respecting the manner of determining those quantities, concentrations or ranges and respecting any circumstances or conditions — including circumstances or conditions regarding premises, facilities or means of containment — under which an activity is exempted under paragraph (e); (g) respecting circumstances in which any activity or thing is under the sole direction or control of the Minister of National Defence; C. 9 Transportation of Dan (h) respecting circumstances in which dangerous goods must not be imported, offered for transport, handled or transported; (i) specifying dangerous goods that must not be imported, offered for transport, handled or transported in any circumstances; (j) respecting safety marks, safety requirements and safety standards of general or particular application; (j.1) requiring safety management systems to be established by prescribed persons or classes of persons with respect to specified quantities or concentrations of dangerous goods or ranges of them, specifying those quantities, concentrations or ranges, respecting the manner of determining those quantities, concentrations or ranges and respecting the content or requirements of those systems; (j.2) respecting, in respect of particular dangerous goods, or classes, divisions, subdivisions and groups of dangerous goods, the means of containment to be used in importing, offering for transport, handling or transporting those goods; (k) specifying quantities or concentrations of dangerous goods, or ranges of them, in relation to which emergency response assistance plans are required to be approved under section 7, and respecting the manner of determining those quantities, concentrations or ranges; (k.1) respecting the information to be provided in an application for approval of the emergency response assistance plan referred to in section 7; (k.2) respecting compensation of persons under section 7.2, and specifying the expenses that are authorized to be compensated; (l) respecting the manner in which records are to be kept under section 9, the information to be included in them and the notices to be issued under that section; (m) respecting the issuance of notices under section 9, and the contents of those notices; Transport des marchand (n) respecting shipping records and other documents to be used in offering for transport, handling or transporting dangerous goods, the information to be included in those documents and the persons by whom and the manner in which they are to be used and kept; (o) respecting the qualification, training and examination of inspectors, prescribing the forms of the certificates described in sections 10 and 16.1 and respecting the manner in which inspectors are to carry out their duties and functions under this Act; (p) respecting levels of financial responsibility required under subsection 14(1) in respect of any activity referred to in that subsection, and the nature and form of proof that may be requested under subsection 14(2); (p.1) respecting the authorization of qualified persons referred to in subsection 15(3) and the manner in which they may exercise powers set out in subsection 15(2); (q) specifying quantities or concentrations of dangerous goods or ranges of them for the purposes of section 18, and respecting the manner of determining those quantities, concentrations or ranges; (r) prescribing persons or classes of persons who are to receive reports under section 18, and respecting the manner of making the reports, the information to be included in them and the circumstances in which they are not required; (r.1) respecting the information to be provided in an application for a certificate under section 31; (s) respecting the manner of applying for, issuing and revoking approvals of emergency response assistance plans under section 7 or certificates under section 31 and providing for the appeal or review of a refusal to issue an approval or certificate or of a revocation of one; (t) providing for the notification of persons directed to do anything under paragraph 7.1(a), subsection 9(2) or (3), section 17, paragraph 19(1)(a) or (b) or subsection 32(1), C. 9 Transportation of Dan for the coming into effect, duration and appeal or review of those directions and for any other incidental matters; (u) respecting the manner in which amounts are to be paid under paragraph 34(1)(d); and (v) prescribing persons or classes of persons who are to be prescribed under this Act. (3) The portion of subsection 27(2) of the Act before paragraph (a) is replaced by the following: References in regulations (2) The regulations may refer to any document, in whole or in part, as it exists when the regulations are made and, for the purpose of providing for alternative ways of complying with this Act, may refer to any of the following documents as amended from time to time: 26. The Act is amended by adding the following after section 27: Security regulations 27.1 (1) The Governor in Council may make regulations respecting the security of the importing, offering for transport, handling or transporting of dangerous goods, including regulations (a) respecting the prevention of unlawful interference with the importing, offering for transport, handling or transporting of dangerous goods and the action that is to be taken if that interference occurs or is likely to occur; (b) prescribing persons or classes of persons, specifying quantities or concentrations of dangerous goods or ranges of them, and respecting the manner of determining those quantities, concentrations or ranges, for the purposes of section 5.2; (c) respecting the conditions that a person is to meet to receive a transportation security clearance; Transport des marchand (d) respecting the manner of applying for, issuing, suspending and revoking a transportation security clearance and providing for the appeal or review of a refusal to issue such a clearance or of a suspension or revocation of one; (e) prescribing persons or classes of persons, respecting the contents and implementation of security plans, and specifying quantities or concentrations of dangerous goods or ranges of them, for the purposes of subsection 7.3(1); (f) respecting security training, including its content and its implementation, and the measures described in subsection 7.3(2); (g) requiring security management systems to be established by prescribed persons or classes of persons with respect to specified quantities or concentrations of dangerous goods or ranges of them, specifying those quantities, concentrations or ranges and respecting the content or requirements of those systems; (h) establishing security requirements for equipment, systems and processes used in importing, offering for transport, handling or transporting dangerous goods, including means of transport tracking and identification protocols; (i) respecting the provision to the Minister of security-related information; (j) prescribing persons or classes of persons who are to receive reports under section 18, and respecting the manner of making the reports, the information to be included in them and the circumstances in which they are not required; and (k) prescribing persons or classes of persons who are to be prescribed under this Act. References in regulations (2) The regulations may refer to any document, in whole or in part, as it exists when the regulations are made. C. 9 Security measures 27.2 (1) The Minister may make measures — referred to in this Act as security measures — respecting the security of the importing, offering for transport, handling or transporting of dangerous goods. Restriction (2) The Minister may make a security measure in relation to a particular matter only if Transportation of Dan (a) a regulation could be made in relation to that matter under subsection 27.1(1); and (b) the publication of the regulation would compromise the security of the importing, offering for transport, handling or transporting of dangerous goods or would endanger public safety. Review (3) A security measure comes into force immediately when it is made, but the Minister shall review the security measure within two years after the day on which it is made and within every following two years to determine whether the disclosure of the particular matter that is the subject of the security measure would no longer compromise the security of the importing, offering for transport, handling or transporting of dangerous goods or endanger public safety. Suspension of s. 27.5(1) and repeal of security measure (4) If the Minister is of the opinion that the disclosure of the particular matter that is the subject of a security measure would no longer compromise the security of the importing, offering for transport, handling or transporting of dangerous goods or endanger public safety, the Minister shall (a) within 23 days after the day on which the Minister forms that opinion, publish in the Canada Gazette a notice that sets out the substance of the security measure and states that subsection 27.5(1) no longer applies in respect of the security measure; and (b) repeal the security measure before the earlier of (i) the day that is one year after the day on which the notice is published, and (ii) the day on which a regulation is made under subsection 27.1(1) in respect of the matter dealt with by the security measure. Transport des marchand Effect of notice (5) If a notice is published under paragraph (4)(a), subsection 27.5(1) ceases to apply in respect of the security measure as of the day the notice is published. Consultation (6) Before making a security measure, the Minister shall consult with any person or organization that the Minister considers appropriate in the circumstances. Exception (7) Subsection (6) does not apply if, in the opinion of the Minister, the security measure is immediately required for the security of the importing, offering for transport, handling or transporting of dangerous goods or for public safety. Deputy may make security measures 27.3 (1) The Minister may authorize his or her deputy to make, subject to any restrictions or conditions that the Minister specifies, security measures whenever the deputy is of the opinion that the measures are immediately required for public safety, provided that the conditions in paragraphs 27.2(2)(a) and (b) are met. Duration (2) The security measure comes into force immediately when it is made but ceases to have force 90 days after the day on which it is made unless the Minister or his or her deputy repeals it earlier. Relationship with regulations 27.4 (1) A security measure may provide that it applies in lieu of or in addition to any regulation under subsection 27.1(1). Conflict (2) If there is a conflict between a regulation under subsection 27.1(1) and a security measure, the security measure prevails to the extent of the conflict. Unauthorized disclosure — security measures 27.5 (1) Unless the Minister states under subsection 27.2(4) that this subsection does not apply in respect of a security measure, no person other than the person who made the security measure shall disclose its substance to any other person unless the disclosure is required by law or is necessary to give the security measure effect. Court to inform Minister (2) If, in any proceedings before a court or other body having jurisdiction to compel the production or discovery of information, a request is made for the production or discovery C. 9 Transportation of Dan of any security measure, the court or other body shall, if the Minister is not a party to the proceedings, cause a notice of the request to be given to the Minister, and, in camera, examine the security measure and give the Minister a reasonable opportunity to make representations with respect to it. Order (3) If the court or other body concludes in the circumstances of the case that the public interest in the proper administration of justice outweighs in importance the public interest in the security of the importing, offering for transport, handling or transporting of dangerous goods, the court or other body shall order the production or discovery of the security measure, subject to any restrictions or conditions that it considers appropriate, and may require any person to give evidence that relates to the security measure. Interim orders 27.6 (1) The Minister may make an interim order that contains any provision that may be contained in a regulation under subsection 27.1(1) if the Minister believes that immediate action is required to deal with an immediate threat to the security of the importing, offering for transport, handling or transporting of dangerous goods or to public safety. Deputy may make interim orders (2) The Minister may authorize his or her deputy to make, subject to any restrictions or conditions that the Minister specifies, an interim order whenever the deputy believes that immediate action is required to deal with an immediate threat to the security of the importing, offering for transport, handling or transporting of dangerous goods or to public safety. Duration (3) An interim order comes into force immediately when it is made but ceases to have effect on the earliest of (a) the day that is 14 days after the day on which it is made, unless it is approved by the Governor in Council, (b) the day on which it is repealed, (c) the day on which a regulation made under subsection 27.1(1) that has the same effect as the interim order comes into force, and Transport des marchand (d) the day that is two years after the day on which the interim order is made or that is at the end of any shorter period that the interim order specifies. Publication (4) An interim order shall be published in the Canada Gazette within 23 days after the day on which it is made. Tabling of order (5) A copy of each interim order shall be tabled in each House of Parliament within 15 days after the day on which it is made. House not sitting (6) In order to comply with subsection (5), the interim order may be sent to the Clerk of the House if the House is not sitting. Exemption from Statutory Instruments Act 27.7 (1) Security measures and interim orders are not statutory instruments for the purposes of the Statutory Instruments Act. Precondition for contravention (2) No person shall be found to have contravened any security measure, or any interim order that has not been published in the Canada Gazette under subsection 27.6(4) at the time of the alleged contravention, unless it is proved that, at the time of the alleged contravention, the person had been notified of the security measure or interim order or reasonable steps had been taken to bring its purport to the notice of those persons likely to be affected by it. Certificate (3) A certificate purporting to be signed by the Minister or the Secretary of the Department of Transport and stating that a notice containing the security measure or interim order was given to persons likely to be affected by it or that reasonable steps had been taken to bring its purport to their notice is, in the absence of evidence to the contrary, proof that notice was given to those persons. 27. Section 28 of the Act is repealed. 28. (1) The portion of subsection 29(1) of the Act before paragraph (a) is replaced by the following: Ministerial fees orders 29. (1) The Minister may make orders fixing any fees or charges, or determining the manner of calculating any fees or charges, to be paid C. 9 Transportation of Dan (2) Paragraph 29(1)(b) of the Act is replaced by the following: (b) in relation to applying for transportation security clearances described in subsection 5.2(2), equivalency certificates described in subsection 31(1), approvals or registrations under this Act. 29. (1) Subsection 30(1) of the Act is replaced by the following: Proposed regulations and orders to be published 30. (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under section 27 or 27.1 and each order that the Minister proposes to make under section 29 shall be published in the Canada Gazette and a reasonable opportunity shall be given to interested persons to make representations to the Minister with respect to the regulation or order. (2) Subsection 30(2) of the French version of the Act is replaced by the following: Exception (2) Ne sont pas visés les projets de règlement ou d’arrêté déjà publiés, qu’ils aient été modifiés ou non à la suite des observations. (3) Section 30 of the Act is amended by adding the following after subsection (2): Review of regulations — House of Commons (3) The Standing Committee on Transport, Infrastructure and Communities of the House of Commons or, if there is not a Standing Committee on Transport, Infrastructure and Communities, the appropriate committee of that House may review any regulations made under this Act, either on its own initiative or on receiving a written complaint regarding a specific safety concern. The Committee may hold public hearings and may table its report on its review in the House of Commons. Review of regulations — Senate (4) The Standing Senate Committee on Transport and Communications or, if there is not a Standing Senate Committee on Transport and Communications, the appropriate committee of the Senate may review any regulations made under this Act, either on its own initiative or on receiving a written complaint regarding a Transport des marchand specific safety concern. The committee may hold public hearings and may table its report on its review in the Senate. 1994, c. 26, ss. 72(F) and 73 30. The heading before section 31 and sections 31 to 33 of the Act are replaced by the following: CERTIFICATES AND DIRECTIONS Equivalency certificate 31. (1) The Minister may issue an equivalency certificate authorizing any activity to be carried on in a manner that does not comply with this Act if the Minister is satisfied that the manner in which the authorized activity will be carried on provides a level of safety at least equivalent to that provided by compliance with this Act. Emergency certificate (2) The Minister may issue an emergency certificate authorizing any activity to be carried on in a manner that does not comply with this Act if the Minister is satisfied that the authorized activity is necessary to deal with an emergency in which there is danger to public safety. Temporary certificate (2.1) The Minister may, in the public interest, issue a temporary certificate authorizing any activity to be carried on in a manner that does not comply with this Act. Immunity (2.2) No action lies against Her Majesty in right of Canada, the Minister, his or her Deputy or any person employed in the Department of Transport for anything done or omitted to be done in good faith under subsection (2.1). Exemption from Statutory Instruments Act (3) An equivalency, emergency or temporary certificate is not a statutory instrument for the purposes of the Statutory Instruments Act and the contents of an emergency certificate or a temporary certificate may be issued orally, but the emergency certificate or temporary certificate shall be issued in writing as soon as possible and the writing is conclusive proof of its content. Terms and conditions (4) An equivalency, emergency or temporary certificate may include terms and conditions governing the authorized activity and, if any of the terms or conditions is not complied with in C. 9 Transportation of Dan the course of carrying on the activity, the Act and regulations apply to the activity as though the certificate did not exist. Scope of certificate (5) An equivalency, emergency or temporary certificate may specify the persons who may carry on the activity and the dangerous goods or means of containment that it may involve. Revocation of certificate (6) The Minister may revoke an equivalency, emergency or temporary certificate — including an emergency or temporary certificate the contents of which have been issued orally — if the Minister is no longer satisfied of the matter described in subsection (1), (2) or (2.1), respectively, or the regulations have been amended and have the same effect as the certificate. Protective directions 32. (1) The Minister may, if satisfied of the conditions described in subsection (2), direct a person engaged in importing, offering for transport, handling or transporting dangerous goods, or supplying or importing standardized means of containment, to cease that activity or to conduct other activities to reduce any danger to public safety. Emergency (2) The Minister may not make the direction unless the Minister is satisfied that the direction is necessary to deal with an emergency that involves danger to public safety and that cannot be effectively dealt with under any other provision of this Act. Revocation of protective direction (3) The Minister may suspend or revoke the direction if the Minister is satisfied that it is no longer needed. OFFENCES AND PUNISHMENT Contraventions 33. (1) Every person is guilty of an offence who contravenes a provision of (a) this Act; (b) a direction issued under paragraph 7.1(a), subsection 9(2) or (3), section 17, paragraph 19(1)(a) or (b) or subsection 32(1); (c) the regulations; (d) a security measure; or Transport des marchand (e) an interim order. Punishment (2) Every person who commits an offence under subsection (1) (a) is liable on indictment to imprisonment for a term not exceeding two years; or (b) is liable on summary conviction to a fine not exceeding $50,000 for a first offence, and not exceeding $100,000 for each subsequent offence. Exemption from Statutory Instruments Act (3) For greater certainty, a direction referred to in paragraph (1)(b) is not a statutory instrument for the purposes of the Statutory Instruments Act, but no person shall be convicted of an offence under paragraph (1)(b) unless the person was notified of the direction and, if any applicable regulations have been made under paragraph 27(1)(t), the notification was in accordance with the regulations. 31. Paragraph 34(1)(d) of the Act is replaced by the following: (d) requiring the person to conduct programs of technical research and investigation into the development and improvement of safety marks, safety requirements and safety standards, or to pay an amount in accordance with the regulations to be used to conduct the research. 32. Section 35 of the Act is replaced by the following: Limitation period for summary conviction offences 35. Proceedings by way of summary conviction may be instituted at any time within, but not later than, five years after the day on which the subject matter of the proceedings arose. 33. Section 38 of the English version of the Act is replaced by the following: Offences by employee, agent or mandatary 38. In any prosecution for an offence, it is sufficient proof of the offence to establish that it was committed by an employee, agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or has been prosecuted for the offence. 34. Section 39 of the Act is replaced by the following: C. 9 Representative of organization 39. If an organization commits an offence, a representative who plays an important role in the establishment of the organization’s policies or is responsible for managing an important aspect of the organization’s activities — and, in the case of a corporation, an officer, director, agent or mandatary — who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the organization has been prosecuted for the offence. Transportation of Dan 35. Section 42 of the Act is replaced by the following: Prima facie proof Terminology 42. In any prosecution for an offence, evidence that a means of containment or transport bore a dangerous goods mark — or another mark that is likely to be mistaken for a dangerous goods mark — or was accompanied by a shipping record is, in the absence of evidence to the contrary, proof of the presence and identification of dangerous goods indicated by the dangerous goods mark or other mark or the shipping record. 36. The French version of the Act is amended by replacing “indications de danger” with “indications de sécurité” in the following provisions: (a) paragraph 25(a); and (b) paragraph 26(1)(a). COMING INTO FORCE Order in council 37. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 15 An Act to increase the availability of agricultural loans and to repeal the Farm Improvement Loans Act ASSENTED TO 18th JUNE, 2009 BILL C-29 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to increase the availability of agricultural loans and to repeal the Farm Improvement Loans Act”. SUMMARY This enactment amends the Farm Improvement and Marketing Cooperatives Loans Act to provide financial support for farmers, including beginning farmers, and farm products marketing cooperatives, as well as to allow for intergenerational farm transfers through a loan guarantee program. It also allows for the adjustment, by regulation, of amounts and percentages set out in the Act. Finally, it repeals the Farm Improvement Loans Act. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 15 An Act to increase the availability of agricultural loans and to repeal the Farm Improvement Loans Act [Assented to 18th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. 25 (3rd Supp.) FARM IMPROVEMENT AND MARKETING COOPERATIVES LOANS ACT 1. The long title of the Farm Improvement and Marketing Cooperatives Loans Act is replaced by the following: An Act to increase the availability of loans for the purpose of the establishment, improvement and development of farms and the processing, distribution or marketing of the products of farming by cooperative associations 2. Section 1 of the Act is replaced by the following: Short title 1. This Act may be cited as the Canadian Agricultural Loans Act. 3. (1) The definitions “farmer” and “farm products marketing cooperative” in section 2 of the Act are replaced by the following: 2 “farmer” « agriculteur » “farm products marketing cooperative” « coopérative de commercialisation des produits agricoles » C. 15 Canadian Agri “farmer” means any individual, partnership, corporation or cooperative association that is or intends to be engaged in farming in Canada; “farm products marketing cooperative” means a cooperative association, incorporated under the laws of Canada or a province for the purpose of processing, distributing or marketing on a cooperative basis the products of farming, with a majority of 50 per cent plus one of members or shareholders that are farmers; (2) The definition “lender” in section 2 of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) any other organization that is designated by the Minister, with the approval of the Minister of Finance, on the application of that organization as a lender for the purposes of this Act. 4. The heading before section 4 of the Act is replaced by the following: GUARANTEED FARM LOANS 5. (1) The portion of subsection 4(1) of the Act before paragraph (a) is replaced by the following: Payment of lenders’ losses 4. (1) Subject to this Act and, in particular, to the conditions set out in subsection (3), the Minister is liable to pay to a lender 95 per cent — or if another percentage of not more than 95 per cent has been fixed by the regulations for the purpose of this subsection, that other percentage — of any loss sustained by it as a result of a loan made by it to a farmer for any of the following purposes in relation to farming in Canada: (2) The portion of paragraph 4(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) subject to the regulations, if any, the purchase of livestock, including Loi canadienne sur (3) Paragraph 4(1)(g) of the Act is replaced by the following: (g) the purchase of land; (g.1) the purchase of shares in a corporation, of an interest in a partnership, or of a share or membership in a cooperative, if 90 per cent or more of the fair market value of the property of the corporation, the partnership, or the cooperative was attributable to property referred to in this subsection that was used principally in the course of carrying on the business of farming in Canada; (g.2) the purchase of shares in a corporation, of an interest in a partnership or of a share or membership in a cooperative, if 90 per cent or more of the fair market value of the property of the corporation, the partnership, or the cooperative was attributable to shares, an interest in a partnership or memberships in a corporation, partnership or cooperative referred to in paragraph (g.1) or to property referred to in this subsection that was used principally in the course of carrying on the business of farming in Canada; (g.3) the purchase of shares in a corporation, of an interest in a partnership or of a share or membership in a cooperative, if 90 per cent or more of the fair market value of the property of the corporation, the partnership, or the cooperative was attributable to shares, an interest in a partnership or memberships in a corporation, partnership or cooperative referred to in paragraph (g.2) or to property referred to in this subsection that was used principally in the course of carrying on the business of farming in Canada; (4) Subsection 4(2) of the Act is replaced by the following: Exclusion of home improvements (2) Subsection (1) does not apply in respect of a loan made for the purpose of financing the construction of or improvements to a private dwelling. (5) Paragraphs 4(3)(b) and (c) of the Act are replaced by the following: C. 15 Canadian Agri (b) if the loan is with respect to property and the regulations prescribe an interest or right that the farmer must hold or intends to hold in that property, the application stated the nature of that interest or right; (c) the principal amount of the loan did not at the time of the making of the loan, together with the amount owing in respect of other loans under this Act previously made to the farmer and disclosed in the farmer’s application or of which the lender has knowledge, exceed (i) for all the purposes set out in subsection (1), an aggregate amount of $500,000 or, if another amount has been fixed by the regulations, that other amount, and (ii) for all the purposes set out in paragraphs (1)(a) to (e) and (g.1) to (i), an amount of $350,000 or, if another amount has been fixed by the regulations, that other amount; 6. Subsection 5(1) of the Act is replaced by the following: Principal amount where joint borrowers 5. (1) For the purposes of paragraph 4(3)(c), the principal amount of a loan shall, where the loan was made jointly to two or more farmers each of whom held a prescribed interest in a separate farm, be deemed to be, in respect of each of those farmers, an amount equal to the amount obtained by dividing the principal amount of the loan by the number of farmers. 7. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following: Payment of lenders’ losses 6. (1) Subject to this Act and, in particular, to the conditions set out in subsection (2), the Minister is liable to pay to a lender 95 per cent — or if another percentage of not more than 95 per cent has been fixed by the regulations for the purpose of this subsection, that other percentage — of any loss sustained by it as a result of a loan made by it to a farm products Loi canadienne sur marketing cooperative for any of the following purposes in relation to the processing, distribution or marketing in Canada of the products of farming: (2) Paragraphs 6(2)(b) and (c) of the Act are replaced by the following: (b) the application stated that 50 per cent plus one of the members or shareholders, as the case may be, of the farm products marketing cooperative are farmers and, if the loan is with respect to property and the regulations prescribe an interest or right that the cooperative must hold in that property, the application stated the nature of that interest or right; (c) the principal amount of the loan did not at the time of the making of the loan, together with the amount owing in respect of other loans previously made to the farm products marketing cooperative and disclosed in the cooperative’s application or of which the lender has knowledge, exceed (i) for all the purposes set out in subsection (1), an aggregate amount of $500,000 or, if another amount has been fixed by the regulations or any greater amount approved by the Minister pursuant to subsection (3), that other amount, and (ii) for all the purposes set out in paragraphs (1)(d) and (e), an amount of $350,000 or, if another amount has been fixed by the regulations or any greater amount approved by the Minister pursuant to subsection (3), that other amount; (3) Subsection 6(3) of the Act is replaced by the following: Minister may increase limits (3) The Minister may, on the application of a lender made before the granting of a loan, approve an increase in each of the monetary limits referred to in paragraph (2)(c) to an aggregate amount not exceeding $3 million or, if another amount has been fixed by the regulations for the purpose of this subsection, that other amount. C. 15 1995, c. 13, s. 1 8. Section 7 of the Act is replaced by the following: Aggregate limit 7. The Minister is not liable under this Act to make any payment to a lender in respect of any loss sustained by it as a result of a loan made by it during a fiscal year after the aggregate principal amount of the loans under this Act made during that fiscal year and the four preceding fiscal years by all lenders exceeds $3 billion, or if another amount has been fixed by the regulations for the purpose of this section, that other amount. Canadian Agri 9. Sections 9 and 10 of the Act are replaced by the following: Limit re appraised value 9. The Minister is not liable under this Act to make any payment to a lender in respect of that portion of the loss sustained by it as a result of a loan that exceeds (a) in the case of a farmer who, on the date of a loan application referred to in paragraph 4(3)(b) or 6(2)(b), intends to be or has been engaged in farming in Canada for less than six years, 90 per cent — or if another percentage of not more than 90 per cent has been fixed by the regulations for the purpose of this paragraph, that other percentage — of the appraised value, determined as of the day the loan is made, of the property in respect of which the loan is made; and (b) in the case of any other farmer, 80 per cent — or if another percentage of not more than 80 per cent has been fixed by the regulations for the purpose of this paragraph, that other percentage — of that value. 10. Section 13 of the Act is replaced by the following: Legal fees 13. The Minister is not liable to pay the portion of a loss sustained by a lender that is attributable to legal fees, costs or disbursements incurred by the lender unless those fees, costs or disbursements are assessed in accordance with the rates established by the Minister in consultation with the Minister of Justice. 11. (1) Subsection 15(1) of the Act is amended by adding the following after paragraph (b): Loi canadienne sur (b.1) prescribing, for the purposes of paragraph 4(1)(c), the purpose for which the livestock is kept or the minimum period that the livestock must remain in the possession of the farmer; (b.2) fixing percentages for the purposes of subsections 4(1) and 6(1) and paragraphs 9(a) and (b); (b.3) fixing amounts for the purposes of paragraphs 4(3)(c) and 6(2)(c), subsection 6(3) and section 7; (2) Paragraph 15(1)(h) of the Act is replaced by the following: (h) prescribing the information to be furnished to the Minister by a lender in respect of loans made by it and the time when the information is to be furnished; (3) Subsection 15(2) of the Act is repealed. 12. Section 22 of the Act is replaced by the following: Annual report 22. The Minister shall, not later than June 30 in each year, prepare a report with respect to the administration of this Act during the fiscal year that ended on the preceding March 31 and shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day the Minister completes it. Five-year review 22.1 (1) Every five years after the coming into force of this subsection, the Minister shall review the provisions and administration of this Act in consultation with the Minister of Finance. Tabling of report (2) The Minister shall cause a copy of the report on the review to be laid before each House of Parliament on any of the first 30 days on which that House is sitting after the report is completed. 1991, c. 46 1998, c. 36, s. 21 CONSEQUENTIAL AMENDMENTS TO THE BANK ACT 13. (1) Subparagraph 427(1)(m)(v) of the Bank Act is replaced by the following: C. 15 Canadian Agri (v) any works for the improvement or development of an aquaculture operation for which a loan, as defined in the Canada Small Business Financing Act, or a business improvement loan, as defined in the Small Business Loans Act, may be made, (2) Subparagraphs 427(1)(n)(v) and (vi) of the Act are replaced by the following: (vi) any purpose for which a loan as defined in the Canadian Agricultural Loans Act may be made, REPEAL Repeal of R.S., c. F-3 14. The Farm Improvement Loans Act is repealed. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 29 An Act to amend the Criminal Code (limiting credit for time spent in pre-sentencing custody) ASSENTED TO 22nd OCTOBER, 2009 BILL C-25 SUMMARY This enactment amends the Criminal Code to specify the extent to which a court may take into account time spent in custody by an offender before sentencing. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 29 An Act to amend the Criminal Code (limiting credit for time spent in pre-sentencing custody) [Assented to 22nd October, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title R.S., c. C-46 1. This Act may be cited as the Truth in Sentencing Act. CRIMINAL CODE 2. Section 515 of the Criminal Code is amended by adding the following after subsection (9): Written reasons (9.1) Despite subsection (9), if the justice orders that the accused be detained in custody primarily because of a previous conviction of the accused, the justice shall state that reason, in writing, in the record. 1995, c. 22, s. 6 3. Subsection 719(3) of the Act is replaced by the following: Determination of sentence (3) In determining the sentence to be imposed on a person convicted of an offence, a court may take into account any time spent in custody by the person as a result of the offence but the court shall limit any credit for that time to a maximum of one day for each day spent in custody. Exception (3.1) Despite subsection (3), if the circumstances justify it, the maximum is one and onehalf days for each day spent in custody unless the reason for detaining the person in custody C. 29 Truth in S was stated in the record under subsection 515(9.1) or the person was detained in custody under subsection 524(4) or (8). Reasons (3.2) The court shall give reasons for any credit granted and shall cause those reasons to be stated in the record. Record of proceedings (3.3) The court shall cause to be stated in the record and on the warrant of committal the offence, the amount of time spent in custody, the term of imprisonment that would have been imposed before any credit was granted, the amount of time credited, if any, and the sentence imposed. Validity not affected (3.4) Failure to comply with subsection (3.2) or (3.3) does not affect the validity of the sentence imposed by the court. R.S., c. 27 (1st Supp.), s. 184(10); 1995, c. 22, s. 9 4. Form 21 in Part XXVIII of the Act is replaced by the following: FORM 21 (Sections 570 and 806) WARRANT OF COMMITTAL ON CONVICTION Canada, Province of ............, (territorial division). To the peace officers in (territorial division) and to the keeper of (prison) at ............: Whereas (name), in this Form called the offender, was, on the ........ day of ............ 20........, convicted by (name of judge and court) of having committed the following offence(s) and it was adjudged that the offender be sentenced as follows: Adéquation de la Offence Sentence Remarks (state offence of which offender was convicted) (state term of imprisonment for the offence and, in case of imprisonment for default of payment of fine, so indicate together with the amount of it and applicable costs and whether payable immediately or within a time fixed) (state the amount of time spent in custody before sentencing, the term of imprisonment that would have been imposed before any credit was granted under subsection 719(3) or (3.1), the amount of time credited, if any, and whether the sentence is consecutive or concurrent, and specify consecutive to or concurrent with what other sentence) 1. .................. 2. .................. .................... .................... .................... .................... 3. .................. 4. .................. .................... .................... .................... .................... You are hereby commanded, in Her Majesty’s name, to arrest the offender if it is necessary to do so in order to take the offender into custody, and to take and convey him or her safely to (prison) at ............ and deliver him or her to its keeper, who is hereby commanded to receive the accused into custody and to imprison him or C. 29 Truth in S her there for the term(s) of his or her imprisonment, unless, if a term of imprisonment was imposed only in default of payment of a fine or costs, those amounts and the costs and charges of the committal and of conveying the offender to that prison are paid sooner, and this is a sufficient warrant for so doing. Dated this ........ day of ............ 20........, at ............. .......................................................... Clerk of the Court, Justice, Judge or Provincial Court Judge Application — persons charged after coming into force 5. Subsections 719(3) to (3.4) of the Act, as enacted by section 3, apply only to persons charged after the day on which those subsections come into force. COMING INTO FORCE Order in council 6. This Act comes into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 28 An Act to amend the Criminal Code (identity theft and related misconduct) ASSENTED TO 22nd OCTOBER, 2009 BILL S-4 SUMMARY This enactment amends the Criminal Code to create offences of identity theft, trafficking in identity information and unlawful possession or trafficking in certain government-issued identity documents, to clarify and expand certain offences related to identity theft and identity fraud, to exempt certain persons from liability for certain forgery offences, and to allow for an order that the offender make restitution to a victim of identity theft or identity fraud for the expenses associated with rehabilitating their identity. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 28 An Act to amend the Criminal Code (identity theft and related misconduct) [Assented to 22nd October, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. C-46 CRIMINAL CODE 1. The heading before section 57 of the Criminal Code is replaced by the following: OFFICIAL DOCUMENTS Identity documents 56.1 (1) Every person commits an offence who, without lawful excuse, procures to be made, possesses, transfers, sells or offers for sale an identity document that relates or purports to relate, in whole or in part, to another person. For greater certainty (2) For greater certainty, subsection (1) does not prohibit an act that is carried out (a) in good faith, in the ordinary course of the person’s business or employment or in the exercise of the duties of their office; (b) for genealogical purposes; (c) with the consent of the person to whom the identity document relates or of a person authorized to consent on behalf of the person to whom the document relates, or of the entity that issued the identity document; or (d) for a legitimate purpose related to the administration of justice. Definition of “identity document” (3) For the purposes of this section, “identity document” means a Social Insurance Number card, a driver’s licence, a health insurance card, C. 28 Criminal Code (identity the a birth certificate, a death certificate, a passport as defined in subsection 57(5), a document that simplifies the process of entry into Canada, a certificate of citizenship, a document indicating immigration status in Canada, a certificate of Indian status or an employee identity card that bears the employee’s photograph and signature, or any similar document, issued or purported to be issued by a department or agency of the federal government or of a provincial or foreign government. Punishment (4) Every person who commits an offence under subsection (1) (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction. 2. Section 130 of the Act is replaced by the following: Personating peace officer 130. (1) Everyone commits an offence who (a) falsely represents himself to be a peace officer or a public officer; or (b) not being a peace officer or public officer, uses a badge or article of uniform or equipment in a manner that is likely to cause persons to believe that he is a peace officer or a public officer, as the case may be. Punishment (2) Everyone who commits an offence under subsection (1) (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction. 3. (1) Paragraph (a) of the definition “offence” in section 183 of the Act is amended by adding the following after subparagraph (iii): (iii.1) section 56.1 (identity documents), Code criminel (vol d’identi (2) Paragraph (a) of the definition “offence” in section 183 of the Act is amended by adding the following after subparagraph (lvi): (lvi.1) section 342.01 (instruments for copying credit card data or forging or falsifying credit cards), 2004, c. 15, s. 108 (3) Subparagraph (a)(lxvi) of the definition “offence” in section 183 of the Act is replaced by the following: (lxvi) section 368 (use, trafficking or possession of forged document), (lxvi.1) section 368.1 (forgery instruments), (4) Paragraph (a) of the definition “offence” in section 183 of the Act is amended by adding the following after subparagraph (lxx): (lxx.1) subsection 402.2(1) (identity theft), (lxx.2) subsection 402.2(2) (trafficking in identity information), (lxx.3) section 403 (identity fraud), 1997, c. 18, s. 16(2) 4. (1) The portion of subsection 342(3) of the Act before paragraph (a) is replaced by the following: Unauthorized use of credit card data (3) Every person who, fraudulently and without colour of right, possesses, uses, traffics in or permits another person to use credit card data, including personal authentication information, whether or not the data is authentic, that would enable a person to use a credit card or to obtain the services that are provided by the issuer of a credit card to credit card holders is guilty of (2) Subsection 342(4) of the Act is replaced by the following: Definitions “personal authentication information” « authentifiant personnel » (4) In this section, “personal authentication information” means a personal identification number or any other password or information that a credit card C. 28 Criminal Code (identity the holder creates or adopts to be used to authenticate his or her identity in relation to the credit card; “traffic” « trafic » “traffic” means, in relation to a credit card or credit card data, to sell, export from or import into Canada, distribute or deal with in any other way. 1997, c. 18, s. 17 5. Subsection 342.01(1) of the Act is replaced by the following: Instruments for copying credit card data or forging or falsifying credit cards 342.01 (1) Every person is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years, or is guilty of an offence punishable on summary conviction, who, without lawful justification or excuse, makes, repairs, buys, sells, exports from Canada, imports into Canada or possesses any instrument, device, apparatus, material or thing that they know has been used or know is adapted or intended for use (a) in the copying of credit card data for use in the commission of an offence under subsection 342(3); or (b) in the forging or falsifying of credit cards. 6. (1) Subsection 356(1) of the Act is replaced by the following: Theft from mail 356. (1) Everyone commits an offence who (a) steals (i) anything sent by post, after it is deposited at a post office and before it is delivered, or after it is delivered but before it is in the possession of the addressee or of a person who may reasonably be considered to be authorized by the addressee to receive mail, (ii) a bag, sack or other container or covering in which mail is conveyed, whether or not it contains mail, or (iii) a key suited to a lock adopted for use by the Canada Post Corporation; (a.1) with intent to commit an offence under paragraph (a), makes, possesses or uses a copy of a key suited to a lock adopted for use Code criminel (vol d’identi by the Canada Post Corporation, or a key suited to obtaining access to a receptacle or device provided for the receipt of mail; (b) has in their possession anything that they know has been used to commit an offence under paragraph (a) or (a.1) or anything in respect of which they know that such an offence has been committed; or (c) fraudulently redirects, or causes to be redirected, anything sent by post. (2) Section 356 of the Act is amended by adding the following after subsection (2): Punishment (3) Everyone who commits an offence under subsection (1) (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years; or (b) is guilty of an offence punishable on summary conviction. 7. Section 366 of the Act is amended by adding the following after subsection (4): Exception (5) No person commits forgery by reason only that the person, in good faith, makes a false document at the request of a police force, the Canadian Forces or a department or agency of the federal government or of a provincial government. 1992, c. 1, s. 60 (Sch. I, s. 26)(F); 1997, c. 18, s. 25 8. Subsection 368(1) of the Act is replaced by the following: Use, trafficking or possession of forged document 368. (1) Everyone commits an offence who, knowing or believing that a document is forged, C. 28 Criminal Code (identity the (a) uses, deals with or acts on it as if it were genuine; (b) causes or attempts to cause any person to use, deal with or act on it as if it were genuine; (c) transfers, sells or offers to sell it or makes it available, to any person, knowing that or being reckless as to whether an offence will be committed under paragraph (a) or (b); or (d) possesses it with intent to commit an offence under any of paragraphs (a) to (c). Punishment (1.1) Everyone who commits an offence under subsection (1) (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years; or (b) is guilty of an offence punishable on summary conviction. 9. Section 369 of the Act is replaced by the following: Forgery instruments 368.1 Everyone is guilty of an indictable offence and liable to imprisonment for a term of not more than 14 years, or is guilty of an offence punishable on summary conviction, who, without lawful authority or excuse, makes, repairs, buys, sells, exports from Canada, imports into Canada or possesses any instrument, device, apparatus, material or thing that they know has been used or know is adapted or intended for use by any person to commit forgery. Public officers acting in the course of their duties or employment 368.2 No public officer, as defined in subsection 25.1(1), is guilty of an offence under any of sections 366 to 368.1 if the acts alleged to constitute the offence were committed by the public officer for the sole purpose of establishing or maintaining a covert identity for use in the course of the public officer’s duties or employment. Exchequer bill paper, public seals, etc. 369. Everyone is guilty of an indictable offence and liable to imprisonment for a term of not more than 14 years who, without lawful authority or excuse, Code criminel (vol d’identi (a) makes, uses or possesses (i) any exchequer bill paper, revenue paper or paper that is used to make bank-notes, or (ii) any paper that is intended to resemble paper mentioned in subparagraph (i); or (b) makes, reproduces or uses a public seal of Canada or of a province, or the seal of a public body or authority in Canada or of a court of law. 1994, c. 44, s. 27 10. Section 403 of the Act and the heading before it are replaced by the following: IDENTITY THEFT AND IDENTITY FRAUD Definition of “identity information” 402.1 For the purposes of sections 402.2 and 403, “identity information” means any information — including biological or physiological information — of a type that is commonly used alone or in combination with other information to identify or purport to identify an individual, including a fingerprint, voice print, retina image, iris image, DNA profile, name, address, date of birth, written signature, electronic signature, digital signature, user name, credit card number, debit card number, financial institution account number, passport number, Social Insurance Number, health insurance number, driver’s licence number or password. Identity theft 402.2 (1) Everyone commits an offence who knowingly obtains or possesses another person’s identity information in circumstances giving rise to a reasonable inference that the information is intended to be used to commit an indictable offence that includes fraud, deceit or falsehood as an element of the offence. Trafficking in identity information (2) Everyone commits an offence who transmits, makes available, distributes, sells or offers for sale another person’s identity information, or has it in their possession for any of those purposes, knowing that or being reckless as to whether the information will be used to commit an indictable offence that includes fraud, deceit or falsehood as an element of the offence. C. 28 Clarification (3) For the purposes of subsections (1) and (2), an indictable offence referred to in either of those subsections includes an offence under any of the following sections: Criminal Code (identity the (a) section 57 (forgery of or uttering forged passport); (b) section 58 (fraudulent use of certificate of citizenship); (c) section 130 (personating peace officer); (d) section 131 (perjury); (e) section 342 (theft, forgery, etc., of credit card); (f) section 362 (false pretence or false statement); (g) section 366 (forgery); (h) section 368 (use, trafficking or possession of forged document); (i) section 380 (fraud); and (j) section 403 (identity fraud). Jurisdiction (4) An accused who is charged with an offence under subsection (1) or (2) may be tried and punished by any court having jurisdiction to try that offence in the place where the offence is alleged to have been committed or in the place where the accused is found, is arrested or is in custody. However, no proceeding in respect of the offence shall be commenced in a province without the consent of the Attorney General of that province if the offence is alleged to have been committed outside that province. Punishment (5) Everyone who commits an offence under subsection (1) or (2) (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction. Identity fraud 403. (1) Everyone commits an offence who fraudulently personates another person, living or dead, Code criminel (vol d’identi (a) with intent to gain advantage for themselves or another person; (b) with intent to obtain any property or an interest in any property; (c) with intent to cause disadvantage to the person being personated or another person; or (d) with intent to avoid arrest or prosecution or to obstruct, pervert or defeat the course of justice. Clarification (2) For the purposes of subsection (1), personating a person includes pretending to be the person or using the person’s identity information — whether by itself or in combination with identity information pertaining to any person — as if it pertains to the person using it. Punishment (3) Everyone who commits an offence under subsection (1) (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years; or (b) is guilty of an offence punishable on summary conviction. 11. Subsection 738(1) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in the case of an offence under section 402.2 or 403, by paying to a person who, as a result of the offence, incurs expenses to reestablish their identity, including expenses to replace their identity documents and to correct their credit history and credit rating, an amount that is not more than the amount of those expenses, to the extent that they are reasonable, if the amount is readily ascertainable. REVIEW Review 12. Within five years after the day on which this Act receives royal assent, a comprehensive review of its provisions and C. 28 Criminal Code (identity the operation shall be undertaken by the committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established by the Senate or the House of Commons, or by both Houses of Parliament, as the case may be, for that purpose. COMING INTO FORCE Order in council 13. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 14 An Act to amend certain Acts that relate to the environment and to enact provisions respecting the enforcement of certain Acts that relate to the environment ASSENTED TO 18th JUNE, 2009 BILL C-16 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend certain Acts that relate to the environment and to enact provisions respecting the enforcement of certain Acts that relate to the environment”. SUMMARY This enactment amends certain enforcement, offence, penalty and sentencing provisions of the following Acts: (a) the Antarctic Environmental Protection Act; (b) the Canada National Marine Conservation Areas Act; (c) the Canada National Parks Act; (d) the Canada Wildlife Act; (e) the Canadian Environmental Protection Act, 1999; (f) the International River Improvements Act; (g) the Migratory Birds Convention Act, 1994; (h) the Saguenay-St. Lawrence Marine Park Act; and (i) the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. It adds enforcement officer immunity to the Acts that did not expressly provide any. It also adds the power to designate analysts for the purposes of the Canada Wildlife Act and the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. It also adds inspection and search and seizure powers to the International River Improvements Act. It amends the penalty provisions of the Acts by establishing distinct ranges of fines for different offences, by creating minimum fines for the most serious offences, by increasing maximum fines, by specifying ranges of fines for individuals, other persons, small revenue corporations and ships of different sizes and by doubling the fine amounts for second and subsequent offenders. It amends the Acts to make the liability and duty provisions of directors, officers, agents and mandataries of corporations, and those of ship masters, chief engineers, owners and operators, consistent between the Acts. The enactment amends the sentencing provisions of the Acts by adding a purpose clause, by specifying aggravating factors that, if associated with an offence, must contribute to higher fines, by requiring courts to add profits gained or benefits realized from the commission of an offence to fine amounts, by requiring courts to order corporate offenders to disclose details of Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca convictions to their shareholders and by expanding the power of the courts to make additional orders having regard to the nature of the offence and the circumstances surrounding its commission. The enactment adds to each of the Acts a requirement that details of convictions of corporations be made available to the public and that all fines collected be credited to the Environmental Damages Fund and be available for environmental projects or the administration of that Fund. This enactment also creates the Environmental Violations Administrative Monetary Penalties Act which establishes an administrative monetary penalty scheme applicable to the Acts listed above as well as to the Canada Water Act. TABLE OF PROVISIONS AN ACT TO AMEND CERTAIN ACTS THAT RELATE TO THE ENVIRONMENT AND TO ENACT PROVISIONS RESPECTING THE ENFORCEMENT OF CERTAIN ACTS THAT RELATE TO THE ENVIRONMENT SHORT TITLE 1. Environmental Enforcement Act ANTARCTIC ENVIRONMENTAL PROTECTION ACT 2-19. Amendments CANADA NATIONAL MARINE CONSERVATION AREAS ACT 20-28. Amendments CANADA NATIONAL PARKS ACT 29-40. Amendments CANADA WILDLIFE ACT 41-51. Amendments CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999 52-88. Amendments INTERNATIONAL RIVER IMPROVEMENTS ACT 89-93. Amendments MIGRATORY BIRDS CONVENTION ACT, 1994 94-107. Amendments SAGUENAY-ST. LAWRENCE MARINE PARK ACT 108-115. Amendments i WILD ANIMAL AND PLANT PROTECTION AND REGULATION OF INTERNATIONAL AND INTERPROVINCIAL TRADE ACT 116-125. Amendments ENACTMENT OF THE ENVIRONMENTAL VIOLATIONS ADMINISTRATIVE MONETARY PENALTIES ACT 126. Enactment of Act AN ACT TO ESTABLISH A SYSTEM OF ADMINISTRATIVE MONETARY PENALTIES FOR THE ENFORCEMENT OF THE ANTARCTIC ENVIRONMENTAL PROTECTION ACT, THE CANADA NATIONAL MARINE CONSERVATION AREAS ACT, THE CANADA NATIONAL PARKS ACT, THE CANADA WATER ACT, THE CANADA WILDLIFE ACT, THE CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999, THE INTERNATIONAL RIVER IMPROVEMENTS ACT, THE MIGRATORY BIRDS CONVENTION ACT, 1994, THE SAGUENAY-ST. LAWRENCE MARINE PARK ACT, AND THE WILD ANIMAL AND PLANT PROTECTION AND REGULATION OF INTERNATIONAL AND INTERPROVINCIAL TRADE ACT SHORT TITLE 1. Environmental Violations Administrative Monetary Penalties Act 2. Definitions 3. Purpose of Act INTERPRETATION PURPOSE OF ACT HER MAJESTY 4. Binding on Her Majesty REGULATIONS 5. Regulations MINISTER’S POWERS 6. Powers regarding notices of violation COMMISSION OF VIOLATIONS 7. Commission ii 8. Liability of directors, officers, etc. of corporations 9. Proof of violations — persons 10. Issuance and service of notice of violation RULES ABOUT VIOLATIONS 11. Certain defences not available 12. Continuing violation 13. Violation or offence 14. Limitation period REVIEWS 15. Right to request review 16. Variation or cancellation of notice of violation 17. Review 18. Right to appear 19. Witnesses 20. Decision 21. Service of copy and reasons 22. Responsibility 23. Determination is final 24. Rules RESPONSIBILITY 25. Payment 26. Failure to act RECOVERY OF PENALTIES 27. Debts to Her Majesty 28. Certificate GENERAL 29. Admissibility of documents 127. Contraventions Act COORDINATING AMENDMENT COMING INTO FORCE 128. Order in council 57-58 ELIZABETH II —————— CHAPTER 14 An Act to amend environment specting the that relate to certain Acts that relate to the and to enact provisions reenforcement of certain Acts the environment [Assented to 18th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Environmental Enforcement Act. 2003, c. 20 ANTARCTIC ENVIRONMENTAL PROTECTION ACT 2. (1) Paragraph (b) of the definition “Canadian” in subsection 2(1) of the English version of the Antarctic Environmental Protection Act is replaced by the following: (b) a corporation established or continued under the laws of Canada or a province. (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “Chief Review Officer” « réviseur-chef » “Chief Review Officer” means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999 and includes any review officer designated under subsection 244(3) of that Act to perform the functions of the Chief Review Officer. 2 “vessel” « bâtiment » C. 14 Environmental “vessel” means a boat, ship or craft designed, used or capable of being used solely or partly for navigation in, on, through or immediately above water, without regard to the method or lack of propulsion, but does not include a fixed platform. 3. (1) Paragraph 26(1)(c) of the French version of the Act is replaced by the following: c) régir la délivrance, le renouvellement, l’annulation et la suspension des permis et les conditions dont le ministre peut assortir les permis; (2) Subsection 26(1) of the Act is amended by striking out “and” at the end of paragraph (j) and by adding the following after that paragraph: (j.1) designating provisions of the regulations for the purposes of paragraphs 50(1)(b) and 50.3(1)(b); and 4. The Act is amended by adding the following after section 29: Immunity 29.1 Enforcement officers and analysts are not personally liable for anything they do or omit to do in good faith under this Act. 5. (1) Subsection 30(7) of the Act is replaced by the following: Stopping and detaining conveyances (7) For the purposes of this Act, an enforcement officer may, at any reasonable time, direct that any conveyance be stopped — or be moved, by the route and in the manner that the officer may specify, to a place specified by the officer where an inspection can be carried out — and the officer may, for a reasonable time, detain any conveyance. (2) Paragraph 30(8)(a) of the Act is replaced by the following: (a) direct that the vessel be stopped — or be moved, by the route and in the manner that the officer may specify, to a place specified by the officer where an inspection can be carried out — and the officer may, for a reasonable time, detain the vessel; Contrôle d’application d (3) Subsection 30(11) of the Act is replaced by the following: Disposition of samples (11) An enforcement officer or analyst may dispose of a sample taken under paragraph (9)(d) in any manner that the officer or analyst considers appropriate. 6. Subsection 32(2) of the Act is replaced by the following: Warrant for seizure of vessel or aircraft (2) If, on ex parte application, a justice is satisfied by information on oath that there are reasonable grounds to believe that an offence has been committed by a Canadian vessel or any other vessel or the pilot in command of a Canadian aircraft, he or she may issue a warrant authorizing an enforcement officer, or authorizing any other person named in the warrant, to seize the vessel or aircraft anywhere in Canada. 7. The heading before section 37 of the Act is replaced by the following: DETENTION OF VESSELS 8. (1) Subsection 37(1) of the Act is replaced by the following: Detention 37. (1) An enforcement officer may make a detention order in respect of a Canadian vessel, or any other vessel in Canada, if the enforcement officer has reasonable grounds to believe that (a) the vessel has committed an offence under this Act; or (b) an authorized representative of the Canadian vessel or of the other vessel, or the master of the Canadian vessel, has committed an offence under this Act and that the vessel was used in connection with the commission of the offence. (2) Subsection 37(6) of the Act is replaced by the following: When clearance given (6) A person to whom a detention order is addressed and who has received notice of the order may give clearance in respect of the vessel to which the order relates if (a) the vessel or the authorized representative or master of the vessel, as the case may be, C. 14 Environmental (i) has not, within 30 days after the day on which the order was made, been charged with the offence that gave rise to the order, or (ii) has, within 30 days after the day on which the order was made, been charged with that offence and appears in Canada to answer to the charge; (b) security for payment of the maximum fine that might be imposed as a result of a conviction of the vessel or the person charged with that offence and of costs related to proceedings in connection with the charge, or security for payment of any lesser amount that is approved by the Minister or a person designated by the Minister for the purpose, is given to Her Majesty in right of Canada; or (c) proceedings in respect of the alleged offence that gave rise to the making of the detention order are discontinued. Foreign state to be notified (7) If a vessel to which a detention order relates is registered in a foreign state, that state is to be notified that the order was made. 9. The Act is amended by adding the following after section 37: DIRECTION OF VESSELS Power to direct 37.01 An enforcement officer may direct a Canadian vessel, or any other vessel in Canada, to proceed, by the route and in the manner that the enforcement officer may specify, to any place specified by the enforcement officer if the officer has reasonable grounds to believe that (a) the vessel is committing, has committed or is about to commit an offence under this Act; or (b) a person on board the vessel is committing, has committed or is about to commit such an offence and the vessel was, is being or is about to be used in connection with the commission of the offence. Contrôle d’application d ENVIRONMENTAL PROTECTION COMPLIANCE ORDERS Meaning of “order” 37.02 For the purpose of sections 37.03 to 37.12, “order” means an environmental protection compliance order issued under section 37.03. Order 37.03 (1) Whenever, during the course of an inspection or a search, an enforcement officer has reasonable grounds to believe that any provision of this Act or the regulations has been contravened by a person who is continuing the commission of the offence, or that any of those provisions are likely to be contravened, the enforcement officer may issue an environmental protection compliance order directing any person described in subsection (2) to take any of the measures referred to in subsection (3) that are reasonable in the circumstances and consistent with the protection of the Antarctic environment and dependent and associated ecosystems, and with public safety, in order to cease or refrain from committing the alleged contravention. Persons subject to order (2) Subsection (1) applies to (a) any person who causes or contributes to the alleged contravention; (b) any person who is likely to cause or contribute to the alleged contravention; or (c) in the case of an alleged contravention by a person to whom a permit applies, any person to whom that permit applies. Specific measures (3) The order may specify that the person to whom the order is directed take one or more of the following measures: (a) refrain from doing anything in contravention of this Act or the regulations, or do anything to comply with this Act or the regulations; (b) stop or shut down any activity, work, undertaking or thing for a specified period; (c) cease the operation of any activity or any part of a work, undertaking or thing until the enforcement officer is satisfied that the C. 14 Environmental activity, work, undertaking or thing will be operated in accordance with this Act and the regulations; (d) move any conveyance to another location including, in the case of a Canadian vessel, moving the vessel into port or, in the case of an aircraft, landing the aircraft; (e) unload or reload the contents of any conveyance; and (f) take any other measure that the enforcement officer considers necessary to facilitate compliance with the order — or to restore the components of the environment damaged by the alleged contravention or to protect the components of the environment put at risk by the alleged contravention — including, but not limited to, (i) maintaining records on any relevant matter, (ii) reporting periodically to the enforcement officer, and (iii) submitting to the enforcement officer any information, proposal or plan specified by the enforcement officer that sets out any action to be taken by the person with respect to the subject matter of the order. Contents of order (4) Subject to section 37.04, an order must be made in writing and must set out (a) the name of the person or persons to whom it is directed; (b) the provision of this Act or the regulations that is alleged to have been or that is likely to be contravened; (c) the relevant facts surrounding the alleged contravention; (d) the measures to be taken; (e) the time or the day when each measure is to begin or the period during which it is to be carried out; (f) subject to subsection (5), the duration of the order; (g) a statement that a request for a review may be made to the Chief Review Officer; and Contrôle d’application d (h) the period within which a request for a review may be made. Duration of order (5) An order may not be in force for a period of more than 180 days. Failing to file report (6) For the purposes of subsection (1), a person who commits an offence by failing to file a report required by this Act or the regulations is deemed to be continuing the commission of the offence each day that the report is not filed. Statutory Instruments Act (7) An order is not a statutory instrument for the purposes of the Statutory Instruments Act. Exigent circumstances 37.04 (1) In the case of exigent circumstances, an order may be given orally on the condition that it is followed, within seven days, by a written order issued in accordance with section 37.03. Meaning of “exigent circumstances” (2) For greater certainty, “exigent circumstances” includes circumstances in which the delay necessary to issue a written order that meets the requirements of subsection 37.03(4) would result in danger to human life or the environment. Notice of intent 37.05 (1) Except in exigent circumstances, an enforcement officer shall, whenever practicable, before issuing an order, (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to issue it; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (2) The notice of intent to issue the order must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the order is to be issued; and (c) a statement that the party notified may make oral representations to the enforcement officer within the period stated in the notice. Compliance with order 37.06 (1) A person to whom an order is directed shall, immediately on receipt of the order or a copy of it or on being directed by an C. 14 Environmental enforcement officer in an order given orally under subsection 37.04(1), comply with the order. No bar to proceedings (2) The issuance of or compliance with an order in respect of a person’s alleged contravention of this Act or the regulations is not a bar to any proceedings against the person under this or any other Act in relation to the alleged contravention. Intervention by enforcement officer 37.07 (1) If a person to whom an order is directed fails to take any measures specified in the order, an enforcement officer may take the measures or cause them to be taken. Access to property (2) An enforcement officer or other person authorized or required by an enforcement officer to take measures under subsection (1) may enter and have access to any place or property and may do any reasonable thing that may be necessary in the circumstances. Personal liability (3) Any person, other than a person described in paragraph 37.03(2)(a) or (b), who provides assistance or advice in taking the measures specified in an order or who takes any measures authorized or required by an enforcement officer under subsection (1) is not personally liable either civilly or criminally in respect of any act or omission in the course of providing assistance or advice or taking any measures under that subsection unless it is established that the person acted in bad faith. Recovery of reasonable costs and expenses by Her Majesty 37.08 (1) Her Majesty in right of Canada may recover the costs and expenses of and incidental to any measures taken under subsection 37.07(1) from any person referred to in paragraph 37.03(2)(a) to the extent of the person’s negligence in causing or contributing to the alleged contravention. Costs must have been reasonably incurred (2) The costs and expenses may only be recovered to the extent that they can be established to have been reasonably incurred in the circumstances. Liability (3) The persons referred to in subsection (1) are jointly and severally, or solidarily, liable for the costs and expenses referred to in that subsection. Contrôle d’application d Procedure (4) A claim under this section may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken in the name of Her Majesty in right of Canada in any court of competent jurisdiction. Recourse or indemnity (5) This section does not limit or restrict any right of recourse or indemnity that a person may have against any other person. Limitation period (6) If events giving rise to a claim under this section occur, no proceedings in respect of the claim may be instituted more than five years after the day on which the events occur or become evident to the Minister, whichever is later. Minister’s certificate (7) A document purporting to have been issued by the Minister certifying the day on which the events giving rise to a claim under this section came to the knowledge of the Minister shall be received in evidence and, in the absence of any evidence to the contrary, the document is to be considered as proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document and without further proof. Request for review 37.09 (1) Any person to whom an order is directed may, by notice in writing given to the Chief Review Officer within 30 days after the day on which the person receives a copy of the written order or after the oral order is given, make a request to the Chief Review Officer for a review of the order. Extension of period for request (2) The Chief Review Officer may extend the period within which a request for a review may be made if, in his or her opinion, it is in the public interest to do so. Variation or cancellation of order 37.1 (1) At any time before a notice requesting a review of an order is received by the Chief Review Officer, the enforcement officer may, after giving reasonable notice, (a) amend or suspend a term or condition of the order, or add a term or condition to, or delete a term or condition from, the order; (b) cancel the order; (c) correct a clerical error in the order; or C. 14 Environmental (d) extend the duration of the order for a period of not more than 180 days less the number of days that have passed since the day on which the order was received by the person who is subject to it. Notice of intent (2) Except in exigent circumstances, an enforcement officer shall, whenever practicable, before exercising a power under paragraph (1)(a) or (d), (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to exercise the power; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (3) The notice of intent to exercise a power under paragraph (1)(a) must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the power is to be exercised; and (c) a statement that the party notified may make oral representations to the enforcement officer within the period stated in the notice. Regulations 37.11 The Minister may make regulations (a) prescribing the form of reporting to enforcement officers under subparagraph 37.03(3)(f)(ii) and specifying the information required to be contained in or to accompany the report; and (b) of either particular or general application, respecting representations made to enforcement officers under paragraph 37.05(1)(b) or 37.1(2)(b). Review 37.12 Sections 257 to 271 of the Canadian Environmental Protection Act, 1999 apply, with any modifications that the circumstances require, to a review requested of any order. 10. The Act is amended by adding the following after section 44: Contrôle d’application d LIABILITY FOR COSTS Liability for costs 44.1 If a thing is seized under this Act, the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. 11. The Act is amended by adding the following after section 46: Immunity 46.1 Inspectors are not personally liable for anything they do or omit to do in good faith under this Act. 12. Sections 49 to 52 of the Act are replaced by the following: Knowingly providing false or misleading information, etc. 49. (1) No person in Canada, and no Canadian or permit holder in the Antarctic, shall, with respect to any matter related to this Act, knowingly (a) provide any person with false or misleading information, results or samples; or (b) file a document that contains false or misleading information. Negligently providing false or misleading information, etc. (2) No person in Canada, and no Canadian or permit holder in the Antarctic, shall, with respect to any matter related to this Act, negligently (a) provide any person with false or misleading information, results or samples; or (b) file a document that contains false or misleading information. Offence — persons 50. (1) Every person commits an offence who contravenes C. 14 Environmental (a) section 11, subsection 12(1) or 13(1), section 14, 16, 17 or 20, subsection 37(4) or 37.06(1), section 48 or subsection 49(1); (b) any provision of the regulations designated by regulations made under paragraph 26(1)(j.1); or (c) any order or direction made under this Act, including one made by a court. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than three years, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than five years, or to both; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than one year, or to both. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, Contrôle d’application d (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 50.2 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Offence — persons 50.1 (1) Every person commits an offence who contravenes (a) any provision of this Act or the regulations, other than a provision whose contravention is an offence under subsection 50(1); or (b) any obligation arising from this Act, whose contravention is not an offence under subsection 50(1). Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $100,000, and (ii) for a second or subsequent offence, to a fine of not more than $200,000; or (b) on summary conviction, C. 14 Environmental (i) for a first offence, to a fine of not more than $25,000, and (ii) for a second or subsequent offence, to a fine of not more than $50,000. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 50.2 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Determination of small revenue corporation status 50.2 For the purpose of sections 50 and 50.1, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day Contrôle d’application d on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Offence — vessels 50.3 (1) Every Canadian vessel or other vessel commits an offence that contravenes (a) subsection 9(1), section 11, subsection 13(1), any of sections 14 to 16, any of subsections 18(1) to (3) or section 20; (b) any provision of the regulations designated by regulations made under paragraph 26(1)(j.1); or (c) any order or direction made under this Act, including one made by a court. Penalty — vessels of 7 500 tonnes deadweight or over (2) Every Canadian vessel or other vessel of 7 500 tonnes deadweight or over that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — other vessels (3) Every Canadian vessel or other vessel of less than 7 500 tonnes deadweight that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or C. 14 Environmental (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Offences — vessels 50.4 (1) Every Canadian vessel or other vessel commits an offence that contravenes any provision of this Act or the regulations, other than a provision whose contravention is an offence under subsection 50.3(1). Penalty — vessels of 7 500 tonnes deadweight or over (2) Every Canadian vessel or other vessel of 7 500 tonnes deadweight or over that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — other vessels (3) Every Canadian vessel or other vessel of less than 7 500 tonnes deadweight that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and Contrôle d’application d (ii) for a second or subsequent offence, to a fine of not more than $100,000. Deeming — second and subsequent offence 50.5 (1) For the purposes of subsections 50(2) to (4), 50.1(2) to (4), 50.3(2) and (3) and 50.4(2) and (3), a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife conservation or protection — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. Relief from minimum fine 50.6 The court may impose a fine that is less than the minimum amount provided for in section 50 or 50.3, as the case may be, if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in any of those sections. Additional fine 50.7 If a person or a Canadian vessel or other vessel is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person — or, if the offender is a Canadian vessel or other vessel, the owner or operator of the vessel — acquired any property, benefit or advantage, the court shall order the offender to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 50.8 If a corporation that has shareholders is convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within C. 14 Environmental the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Fundamental purpose of sentencing 50.9 The fundamental purpose of sentencing for offences under this Act is to contribute to respect for the law protecting the Antarctic environment and dependent and associated ecosystems in light of the global significance of the Antarctic and the Treaty through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that damages or creates a risk of damage to the environment; and (c) to reinforce the “polluter pays” principle by ensuring that offenders are held responsible for effective clean-up and environmental restoration. Sentencing principles 50.91 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to the Antarctic environment or any dependent and associated ecosystem; (b) the damage caused by the offence is extensive, persistent or irreparable; Contrôle d’application d (c) the offender committed the offence intentionally or recklessly; (d) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; (e) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (f) the offender committed the offence despite having been warned by an enforcement officer or an inspector of the circumstances that subsequently became the subject of the offence; (g) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife conservation or protection; and (h) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) and (b), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. Proceedings against vessels 50.92 (1) The provisions of this Act and the Criminal Code relating to indictable or summary conviction offences that apply to persons C. 14 Environmental apply also to Canadian vessels and other vessels, with any modifications that the circumstances require. Direction binds vessel (2) For the purpose of prosecuting a Canadian vessel or any other vessel for contravening a direction made under subsection 30(8), section 37.01 or subsection 46(3), any direction made under any of those provisions that is given to the master or a crew member of the vessel binds the vessel as though it had been given to the vessel. Service (3) If a Canadian vessel or other vessel is charged with having committed an offence under this Act, the summons may be served by leaving it with the authorized representative, master or any officer of the vessel or by posting the summons on some conspicuous part of the vessel. Appearance at trial (4) If a Canadian vessel or other vessel is charged with having committed an offence under this Act, the vessel may appear by counsel or representative. Despite the Criminal Code, if the vessel does not so appear, a court may, on proof of service of the summons, proceed to hold the trial. Liability of directors, officers, etc., of corporations 51. (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Liability of directors and officers of corporate owners of vessels (2) If a Canadian vessel or other vessel commits an offence under this Act, every director or officer of a corporation that is an owner or an operator of the vessel who directed or influenced the corporation’s policies or activities in respect of conduct that is the subject matter of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual who commits an offence under subsection 50(1), whether or not the vessel has been prosecuted or convicted. 2009 Duties of directors and officers of corporations Contrôle d’application d (3) Every director and officer of a corporation, including every director and officer of a corporation that is the owner or operator of a Canadian vessel or other vessel who is in a position to direct or influence the corporation’s policies or activities relating to conduct prohibited by this Act, shall take all reasonable care to ensure that the corporation or the vessel, as the case may be, complies with (a) this Act and the regulations; and (b) any orders and directions of, and prohibitions and requirements imposed by, any court, the Minister, enforcement officers, inspectors and analysts. Liability of owners, operators, masters and chief engineers of vessels 52. (1) If a Canadian vessel or other vessel commits an offence under this Act and the owner, operator, master or chief engineer of the vessel directed, authorized, assented to, acquiesced in or participated in the commission of the offence, the owner, operator, master or chief engineer, as the case may be, is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual who commits an offence under subsection 50(1), whether or not the vessel has been prosecuted or convicted. Duties of owners, operators, masters and chief engineers of vessels (2) The owner, operator, master and the chief engineer of a Canadian vessel or other vessel shall take all reasonable care to ensure that the vessel complies with (a) this Act and the regulations; and (b) any orders and directions of, and prohibitions and requirements imposed by, any court, the Minister, enforcement officers, inspectors and analysts. 13. The Act is amended by adding the following after section 53: Offences involving more than one animal, plant, etc. 53.1 If an offence involves more than one animal or plant, or more than one native bird or native plant as defined in subsection 12(2), the fine to be imposed in respect of that offence may, despite sections 50, 50.1, 50.3 and 50.4, be the total of the fines that would have been imposed if each of the animals, plants, native birds or native plants had been the subject of a separate information. C. 14 Environmental 14. Section 57 of the Act is replaced by the following: Limitation period 57. No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. 15. Sections 60 and 61 of the Act are replaced by the following: Proof of offence 60. (1) In any prosecution of an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee, agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or prosecuted for the offence. Proof of offence (2) In any prosecution of the master of a Canadian vessel or any other vessel or the pilot in command of a Canadian aircraft for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by a crew member or other person on board the vessel or aircraft, whether or not the crew member or other person is identified or prosecuted for the offence. 16. Section 63 of the Act is repealed. 17. (1) Paragraph 66(1)(c) of the French version of the Act is replaced by the following: c) mener des études de suivi des effets sur l’environnement, de la façon que le ministre indique, ou verser, selon les modalités prescrites par le tribunal, une somme d’argent destinée à permettre ces études; (2) Subsection 66(1) of the Act is amended by adding the following after paragraph (c): (c.1) directing the offender to implement an environmental management system that meets a recognized Canadian or international standard specified by the court; (c.2) directing the offender to pay Her Majesty in right of Canada an amount of money that the court considers appropriate Contrôle d’application d for the purpose of promoting the conservation or protection of the Antarctic environment or dependent and associated ecosystems; (3) Paragraphs 66(1)(e) and (f) of the Act are replaced by the following: (e) directing the offender to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (f) directing the offender to notify, at the offender’s own cost and in the manner directed by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (4) Paragraph 66(1)(i) of the Act is replaced by the following: (i) directing the offender to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including the costs of assessing appropriate remedial or preventive action; (5) Paragraph 66(1)(k) of the Act is repealed. (5.1) Paragraph 66(1)(m) of the Act is replaced by the following: (m) directing the offender to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; (6) Paragraph 66(1)(n) of the Act is replaced by the following: C. 14 Environmental (n) requiring the offender to comply with any other conditions that the court considers appropriate in the circumstances for securing the offender’s good conduct and for deterring the offender and any other person from committing offences under this Act; (o) requiring the offender to surrender to the Minister any permit issued to the person; and (p) prohibiting the offender from applying for any new permit during any period that the court considers appropriate. (7) Subsections 66(2) and (3) of the Act are replaced by the following: Publication (2) If an offender fails to comply with an order made under paragraph (1)(e), the Minister may, in the manner that the court directed the offender to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the offender. Debt due to Her Majesty (3) If the court makes an order under paragraph (1)(c.2) or (i) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (2), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (4) If the court makes an order under paragraph (1)(i) directing an offender to pay an amount to a person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, the person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permits (5) If the court makes an order under paragraph (1)(o), any permit to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. 2009 Coming into force and duration of order Contrôle d’application d (6) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. 18. The Act is amended by adding the following after section 66: Compensation for loss of property 66.1 (1) If an offender has been convicted of an offence under this Act, the court may, at the time sentence is imposed and on the application of the person aggrieved, order the offender to pay to that person an amount by way of satisfaction or compensation for loss of or damage to property suffered by that person as a result of the commission of the offence. Enforcement (2) If the amount ordered to be paid under subsection (1) is not paid without delay, the aggrieved person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. 19. The Act is amended by adding the following after section 68: Application of fines 68.1 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). C. 14 Publication of information about contraventions 68.2 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Contraventions Act Environmental 68.3 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Review 68.4 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 50 to 68.3. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 2002, c. 18 CANADA NATIONAL MARINE CONSERVATION AREAS ACT 20. (1) Paragraph 16(1)(a) of the French version of the Canada National Marine Conservation Areas Act is replaced by the following: a) la protection des écosystèmes et de leurs composantes; (2) Subsection 16(1) of the Act is amended by striking out “and” at the end of paragraph (l), by adding “and” at the end of paragraph (m) and by adding the following after paragraph (m): (n) designating provisions of the regulations for the purpose of subsection 24(1). 21. Sections 20 and 21 of the Act are replaced by the following: Contraventions Act 19.1 (1) The Minister may designate persons or classes of persons employed in the federal public administration or by a provincial, municipal or local authority or by an aboriginal government for the purpose of the enforcement Contrôle d’application d of this Act or the regulations with respect to offences that have been designated as contraventions under the Contraventions Act. Limitations regarding designations (2) The Minister may specify that a designation is in respect of one or more marine conservation areas or in respect of all or specified offences under this Act that have been designated as contraventions under the Contraventions Act. Certificate of designation and oath 20. (1) Every marine conservation area warden, enforcement officer and person designated under section 19.1 shall be provided with a certificate of designation in a form approved by the Minister and shall take and subscribe an oath prescribed by the Minister. Limitations must be specified (2) The certificate must specify the limitations, if any, to which the designation is subject. Right of passage 20.1 In the discharge of their duties, marine conservation area wardens and enforcement officers and any persons accompanying them may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. Immunity 20.2 Marine conservation area wardens and enforcement officers are not personally liable for anything they do or omit to do in good faith under this Act. Arrest without warrant 21. A marine conservation area warden or enforcement officer may, in accordance with the Criminal Code, arrest without warrant any person (a) whom the warden or officer finds committing an offence under this Act; or (b) who the warden or officer believes, on reasonable grounds, has committed or is about to commit an offence under this Act. 22. Subsections 23(2) and (3) of the French version of the Act are replaced by the following: C. 14 Confiscation de plein droit (2) Dans le cas où leur propriétaire — ou la personne qui a droit à leur possession — ne peut être identifié dans les trente jours suivant la saisie, les objets, ou le produit de leur disposition, sont confisqués au profit de Sa Majesté du chef du Canada, si le garde ou l’agent saisissant est un fonctionnaire de l’administration publique fédérale, ou au profit de Sa Majesté du chef d’une province, si l’agent saisissant est un employé d’une autorité provinciale, municipale ou locale ou d’un gouvernement autochtone. Biens périssables (3) Le garde ou l’agent peut disposer, notamment par destruction, des objets saisis périssables; le produit de leur disposition est soit remis à leur propriétaire ou à la personne qui a droit à leur possession, soit, lorsque des poursuites fondées sur la présente loi ont été intentées dans les quatre-vingt-dix jours suivant la saisie, retenu par le garde ou l’agent jusqu’au règlement de l’affaire. Environmental 23. The Act is amended by adding the following after section 23: Liability for costs 23.1 If a thing is seized under this Act, the person who owned the thing at the time that it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. 24. (1) Subsection 24(1) of the Act is replaced by the following: Offence 24. (1) Every person who contravenes any provision of this Act or any provision of the regulations designated by regulations made under paragraph 16(1)(n) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000, and Contrôle d’application d (B) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (B) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000, and (iii) in the case of a corporation that the court has determined under section 24.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $5,000 and not more than $300,000, and (B) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000, and (iii) in the case of a corporation that the court has determined under section 24.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and C. 14 Environmental (B) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Contravention of other provisions of regulations or of conditions of permits, etc. (1.1) Every person who contravenes any provision of the regulations, other than a provision designated by regulations made under paragraph 16(1)(n), or any condition of a permit or other authorizing instrument issued under this Act is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not more than $100,000, and (B) for a second or subsequent offence, to a fine of not more than $200,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not more than $500,000, and (B) for a second or subsequent offence, to a fine of not more than $1,000,000, and (iii) in the case of a corporation that the court has determined under section 24.1 to be a small revenue corporation, (A) for a first offence, to a fine of not more than $250,000, and (B) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not more than $25,000, and (B) for a second or subsequent offence, to a fine of not more than $50,000, Contrôle d’application d (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not more than $250,000, and (B) for a second or subsequent offence, to a fine of not more than $500,000, and (iii) in the case of a corporation that the court has determined under section 24.1 to be a small revenue corporation, (A) for a first offence, to a fine of not more than $50,000, and (B) for a second or subsequent offence, to a fine of not more than $100,000. (2) Subsection 24(2) of the French version of the Act is replaced by the following: Infraction continue (2) Il est compté une infraction distincte à la présente loi pour chacun des jours au cours desquels se commet ou se continue l’infraction. (3) Section 24 of the Act is amended by adding the following after subsection (2): Offences involving more than one animal, plant or object (2.1) If an offence involves more than one animal, plant or object, the fine to be imposed in respect of that offence may, despite subsections (1) and (1.1), be the total of the fines that would have been imposed if each of the animals, plants or objects had been the subject of a separate information. Deeming — second and subsequent offence (2.2) For the purposes of this section, a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife protection or con32 C. 14 Environmental servation, or the protection of cultural, historical or archaeological resources — of a substantially similar offence. Application (2.3) Subsection (2.2) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. 25. The Act is amended by adding the following after section 24: Determination of small revenue corporation status 24.1 For the purpose of section 24, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Relief from minimum fine 24.2 The court may impose a fine that is less than the minimum amount provided for in subsection 24(1) if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in that subsection. Additional fine 24.3 If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person acquired any property, benefit or advantage, the court shall order the person to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 24.4 If a corporation that has shareholders is convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Contrôle d’application d Liability of directors, officers, etc., of corporations 24.5 (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Duties of directors and officers of corporations (2) Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with (a) this Act and the regulations; (b) orders made by a court, the Minister or the superintendent under this Act; and (c) directions of the superintendent, a marine conservation area warden or an enforcement officer made under this Act. Fundamental purpose of sentencing 24.6 The fundamental purpose of sentencing for offences under this Act is to contribute to respect for the law establishing and protecting marine conservation areas through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that damages or creates a risk of damage to marine conservation areas; and (c) to restore marine conservation area resources. Sentencing principles 24.7 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: C. 14 Environmental (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to any marine conservation area resources; (b) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable marine conservation area resources; (c) the damage caused by the offence is extensive, persistent or irreparable; (d) the offender committed the offence intentionally or recklessly; (e) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; (f) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (g) the offender committed the offence despite having been warned by the superintendent, a marine conservation area warden or an enforcement officer of the circumstances that subsequently became the subject of the offence; (h) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife protection or conservation or the protection of cultural, historical or archaeological resources; and (i) after the commission of the offence, the offender (i) attempted to conceal its commission, Contrôle d’application d (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) to (c), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. 26. The Act is amended by adding the following after section 26: Application of fines 26.1 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring marine conservation areas or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). 27. (1) Subsection 27(1) of the Act is replaced by the following: Orders of court 27. (1) If a person is convicted of an offence under this Act, in addition to any punishment imposed, the court may, having regard to the nature of the offence and the circumstances C. 14 Environmental surrounding its commission, make an order containing one or more of the following prohibitions, directions or requirements: (a) prohibiting the person from doing any act or engaging in any activity that may, in the court’s opinion, result in the continuation or repetition of the offence; (b) directing the person to take any action that the court considers appropriate to remedy or avoid any damage to any marine conservation area resources that resulted or may result from the commission of the offence; (c) directing the person to post a bond, provide surety or pay into court an amount of money that the court considers appropriate for the purpose of ensuring compliance with any prohibition, direction or requirement mentioned in this section; (d) directing the person to prepare and implement a pollution prevention plan or an environmental emergency plan; (e) directing the person to carry out, in the manner established by the Minister, monitoring of the environmental effects of any activity or undertaking on the resources of a marine conservation area or directing the person to pay, in the manner specified by the court, an amount for that purpose; (f) directing the person to implement an environmental management system approved by the Minister; (g) directing the person to have an environmental audit conducted by a person of a class and at the times specified by the Minister and directing the person to remedy any deficiencies revealed during the audit; (h) directing the person to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the protection, conservation or restoration of marine conservation areas; (i) directing the person to publish, in the manner specified by the court, the facts relating to the commission of the offence Contrôle d’application d and the details of the punishment imposed, including any orders made under this subsection; (j) directing the person to notify, at the person’s own cost and in the manner specified by the court, any person aggrieved or affected by the person’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (k) directing the person to submit to the Minister, when requested to do so by the Minister at any time within three years after the date of conviction, any information with respect to the person’s activities that the court considers appropriate in the circumstances; (l) directing the person to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including any costs of assessing appropriate remedial or preventive action; (m) directing the person to perform community service, subject to any reasonable conditions that may be imposed in the order; (n) directing the person to pay, in a manner specified by the court, an amount to enable research to be conducted into the protection, conservation or restoration of marine conservation areas; (o) requiring the person to surrender to the Minister any permit or other authorizing instrument issued under this Act to the person; (p) prohibiting the person from applying for any new permit or other authorizing instrument under this Act during any period that the court considers appropriate; (q) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work related to the marine conservation area where the offence was committed; C. 14 Environmental (r) directing the person to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; and (s) requiring the person to comply with any other conditions that the court considers appropriate. Publication (1.1) If a person fails to comply with an order made under paragraph (1)(i), the Minister may, in the manner that the court directed the person to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the person. Debt due to Her Majesty (1.2) If the court makes an order under paragraph (1)(h) or (l) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (1.1), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (1.3) If the court makes an order under paragraph (1)(l) directing a person to pay an amount to another person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, that other person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the person who was directed to pay the amount in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permit, etc. (1.4) If the court makes an order under paragraph (1)(o), any permit or other authorizing instrument to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. (2) Section 27 of the Act is amended by adding the following after subsection (3): 2009 Coming into force and duration of order Contrôle d’application d (4) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. 28. Section 28 of the Act is replaced by the following: Compensation for loss of property 28. (1) If a person has been convicted of an offence under this Act, the court may, at the time sentence is imposed and on the application of the person aggrieved, order the offender to pay to the aggrieved person an amount by way of satisfaction or compensation for loss of or damage to property suffered by that person as a result of the commission of the offence. Enforcement (2) If the amount ordered to be paid under subsection (1) is not paid without delay, the aggrieved person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Compensation for cost of remedial or preventive action 28.01 (1) A court shall not, under paragraph 27(1)(l), order a person to compensate another person for the cost of any remedial or preventive action referred to in that paragraph if the other person is entitled to make a claim for compensation for that cost under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. Compensation for loss or damage — property (2) A court shall not, under subsection 28(1), order a person to pay to another person an amount by way of satisfaction or compensation for loss of or damage to property if the other person is entitled to make a claim for compensation for that loss or damage under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. C. 14 Limitation period 28.1 No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. Contraventions Act Environmental 28.2 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Publication of information about contraventions 28.3 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Review 28.4 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 24 to 28.3. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 2000, c. 32 CANADA NATIONAL PARKS ACT 29. Paragraph 16(1)(y) of the Canada National Parks Act is replaced by the following: (y) designating provisions of the regulations for the purpose of subsection 24(1); and 30. Sections 20 and 21 of the Act are replaced by the following: Contraventions Act 19.1 (1) The Minister may designate persons or classes of persons employed in the federal public administration or by a provincial, municipal or local authority or by an aboriginal government for the purpose of the enforcement Contrôle d’application d of this Act or the regulations with respect to offences that have been designated as contraventions under the Contraventions Act. Limitations regarding designations (2) The Minister may specify that a designation is in respect of one or more parks or in respect of all or specified offences under this Act that have been designated as contraventions under the Contraventions Act. Certificate of designation and oath 20. (1) Every park warden, enforcement officer and person designated under section 19.1 shall be provided with a certificate of designation in a form approved by the Minister and shall take and subscribe an oath prescribed by the Minister. Limitations must be specified (2) The certificate must specify the limitations, if any, to which the designation is subject. Right of passage 20.1 In the discharge of their duties, park wardens and enforcement officers and any persons accompanying them may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. Immunity 20.2 Park wardens and enforcement officers are not personally liable for anything they do or omit to do in good faith under this Act. Arrest without warrant 21. A park warden or enforcement officer may, in accordance with the Criminal Code, arrest without warrant any person (a) whom the warden or officer finds committing an offence under this Act; or (b) who the warden or officer believes, on reasonable grounds, has committed or is about to commit an offence under this Act. 2002, c. 18, s. 31.4; 2003, c. 22, par. 224(q)(E) 31. Subsections 23(2) and (3) of the French version of the Act are replaced by the following: Confiscation de plein droit (2) Dans le cas où leur propriétaire — ou la personne qui a droit à leur possession — ne peut être identifié dans les trente jours suivant la saisie, les objets, ou le produit de leur disposition, sont confisqués au profit de Sa C. 14 Environmental Majesté du chef du Canada, si le garde ou l’agent saisissant est un fonctionnaire de l’administration publique fédérale, ou au profit de Sa Majesté du chef d’une province, si l’agent saisissant est un employé d’une autorité provinciale, municipale ou locale ou d’un gouvernement autochtone. Biens périssables (3) Le garde ou l’agent peut disposer, notamment par destruction, des objets saisis périssables; le produit de leur disposition est soit remis à leur propriétaire ou à la personne qui a droit à leur possession, soit, lorsque des poursuites fondées sur la présente loi ont été intentées dans les quatre-vingt-dix jours suivant la saisie, retenu par le garde ou l’agent jusqu’au règlement de l’affaire. 32. The Act is amended by adding the following after section 23: Liability for costs 23.1 If a thing is seized under this Act, the person who owned the thing at the time that it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. 33. Section 24 of the Act is replaced by the following: Offence 24. (1) Every person who contravenes section 13, subsection 32(1) or a provision of the regulations designated by regulations made under paragraph 16(1)(y) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000, and (B) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000, Contrôle d’application d (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (B) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $5,000 and not more than $300,000, and (B) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (B) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. C. 14 Contravention of other provisions of regulations or of conditions of permits, etc. (2) Every person who contravenes any provision of the regulations, other than a provision designated by regulations made under paragraph 16(1)(y), or any condition of a permit, licence or other authorizing instrument issued under the regulations, is guilty of an offence and liable Environmental (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not more than $100,000, and (B) for a second or subsequent offence, to a fine of not more than $200,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not more than $500,000, and (B) for a second or subsequent offence, to a fine of not more than $1,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not more than $250,000, and (B) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not more than $25,000, and (B) for a second or subsequent offence, to a fine of not more than $50,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not more than $250,000, and Contrôle d’application d (B) for a second or subsequent offence, to a fine of not more than $500,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not more than $50,000, and (B) for a second or subsequent offence, to a fine of not more than $100,000. 34. Subsections 25(1) and (2) of the Act are replaced by the following: Trafficking in wild animals, etc. 25. (1) Except as permitted by the regulations, no person shall traffic in any wild animal, whether living or dead, at any developmental stage, in any part of or any derivative of, or in any egg or embryo of, a wild animal — or in any plant or part of a plant or in any other naturally occurring object or product of natural phenomena — taken in or from a park. Offence (2) Every person who contravenes subsection (1) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $7,500 and not more than $500,000 or to imprisonment for a term of not more than one year, or to both, and (B) for a second or subsequent offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than one year, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $400,000 and not more than $5,000,000, and C. 14 Environmental (B) for a second or subsequent offence, to a fine of not less than $800,000 and not more than $10,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $25,000 and not more than $3,000,000, and (B) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $6,000,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $4,000 and not more than $225,000 or to imprisonment for a term of not more than six months, or to both, and (B) for a second or subsequent offence, to a fine of not less than $8,000 and not more than $450,000 or to imprisonment for a term of not more than six months, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $50,000 and not more than $3,000,000, and (B) for a second or subsequent offence, to a fine of not less than $100,000 and not more than $6,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $15,000 and not more than $1,250,000, and (B) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,500,000. Contrôle d’application d 35. (1) Subsections 26(1) to (4) of the Act are replaced by the following: Hunting, trafficking or possessing 26. (1) Except as permitted by the regulations, no person shall (a) hunt, in a park, any wild animal of a species named in Part 1 of Schedule 3; (b) traffic in or possess, in a park, any wild animal of a species named in Part 1 of Schedule 3, whether living or dead, at any developmental stage, or any egg or embryo, or any part or derivative, of any such animal; or (c) traffic in or possess any wild animal of a species named in Part 1 of Schedule 3, whether living or dead, at any developmental stage, taken from a park, or any egg or embryo, or any part or derivative, of any such animal that was taken from a park. Offence (2) Every person who contravenes subsection (1) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, and (B) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than five years, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (B) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000, and C. 14 Environmental (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (B) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (B) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Hunting, trafficking or possessing (3) Except as permitted by the regulations, no person shall Contrôle d’application d (a) hunt, in a park, any wild animal of a species named in Part 2 of Schedule 3; (b) traffic in or possess, in a park, any wild animal of a species named in Part 2 of Schedule 3, whether living or dead, at any developmental stage, or any egg or embryo, or any part or derivative, of any such animal; or (c) traffic in or possess any wild animal of a species named in Part 2 of Schedule 3, whether living or dead, at any developmental stage, taken from a park, or any egg or embryo, or any part or derivative, of any such animal that was taken from a park. Offence (4) Every person who contravenes subsection (3) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $10,000 and not more than $750,000 or to imprisonment for a term of not more than five years, or to both, and (B) for a second or subsequent offence, to a fine of not less than $20,000 and not more than $1,500,000 or to imprisonment for a term of not more than five years, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $450,000 and not more than $5,500,000, and (B) for a second or subsequent offence, to a fine of not less than $900,000 and not more than $11,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $50,000 and not more than $3,500,000, and C. 14 Environmental (B) for a second or subsequent offence, to a fine of not less than $100,000 and not more than $7,000,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $4,500 and not more than $250,000 or to imprisonment for a term of not more than six months, or to both, and (B) for a second or subsequent offence, to a fine of not less than $9,000 and not more than $500,000 or to imprisonment for a term of not more than six months, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $75,000 and not more than $3,500,000, and (B) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $7,000,000, and (iii) in the case of a corporation that the court has determined under section 27.1 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $20,000 and not more than $1,500,000, and (B) for a second or subsequent offence, to a fine of not less than $40,000 and not more than $3,000,000. (2) The definition “wildlife” in subsection 26(5) of the Act is repealed. (3) Subsection 26(6) of the Act is replaced by the following: 2009 Amendments to Schedule 3 Contrôle d’application d (6) The Governor in Council may, by regulation, amend Part 1 or 2 of Schedule 3 by adding the name of any species of wild animal or by deleting the name of any species of wild animal. 36. (1) Subsection 27(1) of the Act is replaced by the following: Offences involving more than one animal, plant or object 27. (1) If an offence involves more than one animal, plant or object, the fine to be imposed in respect of that offence may, despite sections 24 to 26, be the total of the fines that would have been imposed if each of the animals, plants or objects had been the subject of a separate information. (2) Subsection 27(3) of the Act is replaced by the following: Deeming — second and subsequent offence (3) For the purposes of sections 24 to 26, a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife protection or conservation, or the protection of cultural, historical or archaeological resources — of a substantially similar offence. Application (4) Subsection (3) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. 37. The Act is amended by adding the following after section 27: Determination of small revenue corporation status 27.1 For the purpose of sections 24 to 26, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. C. 14 Relief from minimum fine 27.2 The court may impose a fine that is less than the minimum amount provided for in section 24, 25 or 26 if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in any of those sections. Additional fine 27.3 If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person acquired any property, benefit or advantage, the court shall order the person to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 27.4 If a corporation that has shareholders is convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Liability of directors, officers, etc., of corporations 27.5 (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Duties of directors and officers of corporations (2) Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with Environmental (a) this Act and the regulations; (b) orders made by a court or the superintendent under this Act; and (c) directions of the superintendent, a park warden or an enforcement officer made under this Act. 2009 Fundamental purpose of sentencing Contrôle d’application d 27.6 The fundamental purpose of sentencing for offences under this Act is to contribute to respect for the law establishing and protecting parks through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that damages or creates a risk of damage to parks; and (c) to restore park resources. Sentencing principles 27.7 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to park resources; (b) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable park resources; (c) the damage caused by the offence is extensive, persistent or irreparable; (d) the offender committed the offence intentionally or recklessly; (e) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; C. 14 Environmental (f) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (g) the offender committed the offence despite having been warned by the superintendent, a park warden or an enforcement officer of the circumstances that subsequently became the subject of the offence; (h) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife protection or conservation or the protection of cultural, historical or archaeological resources; and (i) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) to (c), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, it shall give reasons for that decision. 38. The Act is amended by adding the following after section 29: Application of fines 29.1 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an Contrôle d’application d account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring parks or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or organization specified by the court for a purpose referred to in subsection (1). 39. (1) Paragraph 30(1)(a) of the French version of the Act is replaced by the following: a) s’abstenir de tout acte ou toute activité risquant d’entraîner, de l’avis du tribunal, la continuation de l’infraction ou la récidive; (2) Paragraphs 30(1)(b) and (c) of the Act are replaced by the following: (b) directing the person to take any action that the court considers appropriate to remedy or avoid any damage to any park resources that resulted or may result from the commission of the offence; (c) directing the person to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (3) Paragraph 30(1)(d) of the French version of the Act is replaced by the following: d) en garantie de l’exécution des obligations imposées au titre du présent article, fournir le cautionnement ou déposer auprès du tribunal la somme que celui-ci estime indiqué; (4) Subsection 30(1) of the Act is amended by striking out “or” at the end of paragraph (d) and by replacing paragraph (e) with the following: C. 14 Environmental (e) directing the person to prepare and implement a pollution prevention plan or an environmental emergency plan; (f) directing the person to carry out, in the manner established by the Minister, monitoring of the environmental effects of any activity or undertaking on park resources or directing the person to pay, in the manner specified by the court, an amount for that purpose; (g) directing the person to implement an environmental management system approved by the Minister; (h) directing the person to have an environmental audit conducted by a person of a class and at the times specified by the Minister and directing the person to remedy any deficiencies revealed during the audit; (i) directing the person to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the protection, conservation or restoration of parks; (j) directing the person to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (k) directing the person to notify, at the person’s own cost and in the manner specified by the court, any person aggrieved or affected by the person’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (l) directing the person to submit to the Minister, when requested to do so by the Minister at any time within three years after the date of conviction, any information with respect to the person’s activities that the court considers appropriate in the circumstances; (m) directing the person to perform community service, subject to any reasonable conditions that may be imposed in the order; Contrôle d’application d (n) directing the person to pay, in a manner specified by the court, an amount to enable research to be conducted into the protection, conservation or restoration of parks; (o) requiring the person to surrender to the Minister any permit, licence or other authorizing instrument issued under the regulations to the person; (p) prohibiting the person from applying for any new permit, licence or other authorizing instrument under the regulations during any period that the court considers appropriate; (q) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work related to the park; (r) directing the person to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; and (s) requiring the person to comply with any other conditions that the court considers appropriate. (5) Section 30 of the Act is amended by adding the following after subsection (3): Publication (4) If a person fails to comply with an order made under paragraph (1)(j), the Minister may, in the manner that the court directed the person to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the person. Debt due to Her Majesty (5) If the court makes an order under paragraph (1)(c) or (i) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (4), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (6) If the court makes an order under paragraph (1)(c) directing a person to pay an amount to another person, other than to Her C. 14 Environmental Majesty in right of Canada, and the amount is not paid without delay, that other person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the person who was directed to pay the amount in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permits, etc. (7) If the court makes an order under paragraph (1)(o), any permit, licence or other authorizing instrument to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. Coming into force and duration of order (8) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. 40. Section 31 of the Act is replaced by the following: Compensation for loss of property 31. (1) If a person has been convicted of an offence under this Act, the court may, at the time sentence is imposed and on the application of the person aggrieved, order the offender to pay to the aggrieved person an amount by way of satisfaction or compensation for loss of or damage to property suffered by that person as a result of the commission of the offence. Enforcement (2) If the amount ordered to be paid under subsection (1) is not paid without delay, the aggrieved person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Compensation for cost of remedial or preventive action 31.01 (1) A court shall not, under paragraph 30(1)(c), order a person to compensate another person for the cost of any remedial or preventive action referred to in that paragraph if the other person is entitled to make a claim for compen2009 Contrôle d’application d sation for that cost under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. Compensation for loss or damage — property (2) A court shall not, under subsection 31(1), order a person to pay to another person an amount by way of satisfaction or compensation for loss of or damage to property if the other person is entitled to make a claim for compensation for that loss or damage under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. Limitation period 31.1 No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. Contraventions Act 31.2 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Publication of information about contraventions 31.3 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Review 31.4 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 24 to 31.3. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 60 R.S., c. W-9; 1994, c. 23, s. 2(F) C. 14 Environmental CANADA WILDLIFE ACT 41. Subsection 2(1) of the Canada Wildlife Act is amended by adding the following in alphabetical order: “Chief Review Officer” « réviseur-chef » “Chief Review Officer” means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999 and includes any review officer designated under subsection 244(3) of that Act to perform the functions of the Chief Review Officer. 1994, c. 23, s.13 42. (1) Subsection 11(1) of the Act is replaced by the following: Designation of wildlife officers and analysts 11. (1) The Minister may designate any person or class of persons to act as wildlife officers or analysts for the purposes of this Act and the regulations. 1994, c. 23, s.13 (2) Subsection 11(3) of the Act is replaced by the following: Certificate of designation (3) Every wildlife officer and analyst must be provided with a certificate of his or her designation as a wildlife officer, or as an analyst, as the case may be, in a form approved by the Minister and, on entering any place under this Act, the officer or analyst shall, if so requested, show the certificate to the occupant or person in charge of the place. 1994, c. 23, s.13 (3) Subsection 11(6) of the Act is replaced by the following: Obstruction (6) When a wildlife officer or an analyst is carrying out duties or functions under this Act or the regulations, no person shall (a) knowingly make any false or misleading statement either orally or in writing to the wildlife officer or analyst; or (b) otherwise wilfully obstruct the wildlife officer or analyst. 1994, c. 23, s.13 43. Subsection 11.1(2) of the Act is replaced by the following: Contrôle d’application d Analysts (1.1) An analyst may, for the purposes of this Act, accompany a wildlife officer who is carrying out an inspection of a place under this section, and the analyst may, when accompanying the wildlife officer, enter the place and exercise any of the powers described in paragraphs (1)(a) and (b). Conveyance (2) For the purposes of carrying out the inspection, the wildlife officer may stop a conveyance or direct that it be moved, by the route and in the manner that the officer may specify, to a place specified by the officer where the inspection can be carried out. 44. The Act is amended by adding the following after section 11.1: Right of passage 11.11 While carrying out duties or functions under this Act, wildlife officers and analysts, and any persons accompanying them, may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. Assistance 11.12 The owner or person in charge of a place being inspected under section 11.1, and every person found in the place, shall (a) give the wildlife officer or analyst all reasonable assistance to enable the wildlife officer or analyst to carry out their duties or functions under this Act; and (b) provide the wildlife officer or analyst with any information with respect to the administration of this Act that he or she may reasonably require. Immunity 11.13 Wildlife officers, analysts and persons acting under a wildlife officer’s direction and control are not personally liable for anything they do or omit to do in good faith under this Act. 45. Section 11.4 of the French version of the Act is replaced by the following: Disposition par le ministre 11.4 Il est disposé des objets confisqués ou abandonnés au titre de la présente loi conformément aux instructions du ministre. C. 14 2001, c. 4, s. 128(E); 2004, c. 250, s. 118(F) 46. Section 11.5 of the Act is replaced by the following: Liability for costs 11.5 If a thing is seized under this Act or under a warrant issued under the Criminal Code, the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. Meaning of “order” 11.6 For the purpose of sections 11.7 to 11.97 “order” means a compliance order issued under section 11.7. Compliance order 11.7 (1) Whenever, during the course of an inspection or a search, a wildlife officer has reasonable grounds to believe that any provision of this Act or the regulations has been contravened by a person who is continuing the commission of the offence, or that any of those provisions are likely to be contravened, the wildlife officer may issue a compliance order directing any person who causes or contributes to the alleged contravention, or who is likely to do so, to take any of the measures referred to in subsection (2) that are reasonable in the circumstances and consistent with wildlife conservation and public safety in order to cease or refrain from committing the alleged contravention. Specific measures (2) The order may specify that the person to whom the order is directed take one or more of the following measures: Environmental (a) refrain from doing anything in contravention of this Act or the regulations, or do anything to comply with this Act or the regulations; (b) stop or shut down any activity, work, undertaking or thing for a specified period; Contrôle d’application d (c) cease the operation of any activity or any part of a work, undertaking or thing until the wildlife officer is satisfied that the activity, work, undertaking or thing will be operated in accordance with this Act and the regulations; (d) move any conveyance to another location including, in the case of a vessel, moving the vessel into port or, in the case of an aircraft, landing the aircraft; (e) unload or reload the contents of any conveyance; and (f) take any other measure that the wildlife officer considers necessary to facilitate compliance with the order or to protect and conserve wildlife and wildlife habitat, including, but not limited to, (i) maintaining records on any relevant matter, (ii) reporting periodically to the wildlife officer, and (iii) submitting to the wildlife officer any information, proposal or plan specified by the wildlife officer that sets out any action to be taken by the person with respect to the subject matter of the order. Contents of order (3) Subject to section 11.8, an order must be made in writing and must set out (a) the name of the person or persons to whom the order is directed; (b) the provision of this Act or the regulations that is alleged to have been or that is likely to be contravened; (c) the relevant facts surrounding the alleged contravention; (d) the measures to be taken; (e) the time or the day when each measure is to begin or the period during which it is to be carried out; (f) subject to subsection (4), the duration of the order; (g) a statement that a request for a review may be made to the Chief Review Officer; and C. 14 Environmental (h) the period within which a request for a review may be made. Duration of order (4) An order may not be in force for a period of more than 180 days. Failing to file report (5) For the purposes of subsection (1), a person who commits an offence by failing to file a report required by this Act or the regulations is deemed to be continuing the commission of the offence each day that the report is not filed. Statutory Instruments Act (6) An order is not a statutory instrument for the purposes of the Statutory Instruments Act. Exigent circumstances 11.8 (1) In the case of exigent circumstances, an order may be given orally on the condition that it is followed, within seven days, by a written order issued in accordance with section 11.7. Meaning of “exigent circumstances” (2) For greater certainty, “exigent circumstances” includes circumstances in which the delay necessary to issue a written order that meets the requirements of subsection 11.7(3) would result in danger to human life or to the environment, including wildlife. Notice of intent 11.9 (1) Except in exigent circumstances, a wildlife officer shall, whenever practicable, before issuing an order, (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to issue it; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (2) The notice of intent to issue the order must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the order is to be issued; and (c) a statement that the party notified may make oral representations to the wildlife officer within the period stated in the notice. Contrôle d’application d Compliance with the order 11.91 (1) A person to whom an order is directed shall, immediately on receipt of the order or a copy of it or on being directed by a wildlife officer in an order given orally under subsection 11.8(1), comply with the order. No bar to proceedings (2) The issuance of or compliance with an order in respect of a person’s alleged contravention of this Act or the regulations is not a bar to any proceedings against the person under this or any other Act in relation to the alleged contravention. Intervention by wildlife officer 11.92 (1) If a person to whom an order is directed fails to take any measures specified in the order, a wildlife officer may take the measures or cause them to be taken. Access to property (2) A wildlife officer or other person authorized or required by a wildlife officer to take measures under subsection (1) may enter and have access to any place or property and may do any reasonable thing that may be necessary in the circumstances. Personal liability (3) Any person, other than a person referred to in subsection 11.7(1), who provides assistance or advice in taking the measures specified in an order or who takes any measures authorized or required by a wildlife officer under subsection (1) is not personally liable either civilly or criminally in respect of any act or omission in the course of providing assistance or advice or taking any measures under that subsection unless it is established that the person acted in bad faith. Recovery of reasonable costs and expenses by Her Majesty 11.93 (1) Her Majesty in right of Canada may recover the costs and expenses of and incidental to any measures taken under subsection 11.92(1) from any person who caused or contributed to the alleged contravention, to the extent of the person’s negligence in causing or contributing to the alleged contravention. Costs must have been reasonably incurred (2) The costs and expenses may only be recovered to the extent that they can be established to have been reasonably incurred in the circumstances. C. 14 Procedure (3) A claim under this section may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken in the name of Her Majesty in right of Canada in any court of competent jurisdiction. Recourse or indemnity (4) This section does not limit or restrict any right of recourse or indemnity that a person may have against any other person. Limitation period (5) If events giving rise to a claim under this section occur, no proceedings in respect of the claim may be instituted more than five years after the day on which the events occur or become evident to the Minister, whichever is later. Minister’s certificate (6) A document purporting to have been issued by the Minister certifying the day on which the events giving rise to a claim under this section came to the knowledge of the Minister shall be received in evidence and, in the absence of any evidence to the contrary, the document is to be considered as proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document and without further proof. Request for review 11.94 (1) Any person to whom an order is directed may, by notice in writing given to the Chief Review Officer within 30 days after the day on which the person receives a copy of the written order or after the oral order is given, make a request to the Chief Review Officer for a review of the order. Extension of period for request (2) The Chief Review Officer may extend the period within which a request for a review may be made if, in his or her opinion, it is in the public interest to do so. Variation or cancellation of order 11.95 (1) At any time before a notice requesting a review of an order is received by the Chief Review Officer, the wildlife officer may, after giving reasonable notice, Environmental (a) amend or suspend a term or condition of the order, or add a term or condition to, or delete a term or condition from, the order; (b) cancel the order; (c) correct a clerical error in the order; or Contrôle d’application d (d) extend the duration of the order for a period of not more than 180 days less the number of days that have passed since the day on which the order was received by the person who is subject to it. Notice of intent (2) Except in exigent circumstances, a wildlife officer shall, whenever practicable, before exercising a power under paragraph (1)(a) or (d), (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to exercise the power; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (3) The notice of intent to exercise a power under paragraph (1)(a) must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the power is to be exercised; and (c) a statement that the party notified may make oral representations to the wildlife officer within the period stated in the notice. Regulations 11.96 The Minister may make regulations (a) prescribing the form of reporting to wildlife officers under subparagraph 11.7(2)(f)(ii) and specifying the information required to be contained in or to accompany the report; and (b) of either particular or general application, respecting representations made to wildlife officers under subsection 11.9(1) or 11.95(2). Review 11.97 Sections 257 to 271 of the Canadian Environmental Protection Act, 1999 apply, with any modifications that the circumstances require, to a review requested of any order. 2002, c. 29, s. 136(1) 47. (1) Paragraph 12(a) of the Act is replaced by the following: (a) respecting the prohibition against entry, generally or for any specified period or purpose, by persons on lands under the C. 14 Environmental administration of the Minister, or on public lands referred to in an order made under subsection 4(3), or on any part of those lands; (2) Section 12 of the Act is amended by striking out “and” at the end of paragraph (i), by adding “and” at the end of paragraph (j) and by adding the following after paragraph (j): (k) designating provisions of the regulations for the purposes of paragraph 13(1)(b). 1994, c. 23, s. 15 48. Section 13 of the Act is replaced by the following: Offence 13. (1) Every person commits an offence who contravenes (a) subsection 11(6) or 11.91(1); (b) any provision of the regulations designated by regulations made under paragraph 12(k); or (c) an order made by a court under this Act. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than five years, or to both; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both. 2009 Penalty — other persons Contrôle d’application d (3) Every person, other than an individual or a corporation referred to in subsection (4), who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 13.02 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Relief from minimum fine (5) The court may impose a fine that is less than the minimum amount provided for in this section if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The C. 14 Environmental court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in this section. Offence 13.01 (1) Every person commits an offence who contravenes (a) any provision of the Act or the regulations, other than a provision the contravention of which is an offence under subsection 13(1); or (b) an order made under this Act, other than an order the contravention of which is an offence under subsection 13(1). Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $100,000, and (ii) for a second or subsequent offence, to a fine of not more than $200,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $25,000, and (ii) for a second or subsequent offence, to a fine of not more than $50,000. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. 2009 Penalty — small revenue corporations Contrôle d’application d (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 13.02 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Determination of small revenue corporation status 13.02 For the purpose of sections 13 and 13.01, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Deeming — second and subsequent offence 13.03 (1) For the purposes of subsections 13(2) to (4) and 13.01(2) to (4), a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife conservation or protection — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. Additional fine 13.04 If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the C. 14 Environmental person acquired any property, benefit or advantage, the court shall order the person to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 13.05 If a corporation that has shareholders is convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Liability of directors and officers, etc., of corporation 13.06 If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Directors’ duties 13.07 Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with the provisions of this Act and the regulations and obligations and prohibitions arising from this Act or the regulations. Fundamental purpose of sentencing 13.08 The fundamental purpose of sentencing for offences under this Act is to contribute, in light of the significant and many threats to wildlife and the importance of wildlife to the well-being of Canadians, to respect for the law protecting wildlife through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that damages or creates a risk of damage to wildlife; and (c) to recover wildlife and restore wildlife habitat. Sentencing principles Contrôle d’application d 13.09 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to wildlife or wildlife habitat; (b) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable wildlife or wildlife habitat; (c) the damage caused by the offence is extensive, persistent or irreparable; (d) the offender committed the offence intentionally or recklessly; (e) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; (f) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (g) the offender committed the offence despite having been warned by a wildlife officer of the circumstances that subsequently became the subject of the offence; C. 14 Environmental (h) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife conservation or protection; and (i) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) to (c), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. Documents admissible in evidence 13.091 (1) A document made, given or issued under this Act and appearing to be signed by an analyst is admissible in evidence and, in the absence of evidence to the contrary, is proof of the statements contained in the document without proof of the signature or official character of the person appearing to have signed the document. Attendance of analyst (2) The party against whom the document is produced may, with leave of the court, require the attendance of the analyst who signed it. Notice (3) No document referred to in subsection (1) may be received in evidence unless the party intending to produce it has given to the party against whom it is intended to be produced reasonable notice of that intention together with a copy of the document. Contrôle d’application d Proof of offence 13.1 In any prosecution of an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee, agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or prosecuted for the offence. Continuing offence 13.11 A person who commits or continues an offence under this Act on more than one day is liable to be convicted for a separate offence for each day on which the offence is committed or continued. Offences involving more than one animal, plant or other organism 13.12 If an offence under this Act involves more than one animal, plant or other organism, the fine to be imposed in respect of that offence may, despite sections 13 and 13.01, be the total of the fines that would have been imposed if each of the animals, plants or other organisms had been the subject of a separate information. Application of fines 13.13 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). 1994, c. 23. s. 15 49. (1) Paragraphs 16(c) and (d) of the Act are replaced by the following: (b.1) directing the person to carry out environmental effects monitoring in the manner established by the Minister, or directing the person to pay, in the manner specified by the court, an amount for the purpose of environmental effects monitoring; C. 14 Environmental (b.2) directing the person to implement an environmental management system that meets a recognized Canadian or international standard specified by the court; (b.3) directing the person to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the proper management of wildlife or the conservation or protection of wildlife; (c) directing the person to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (c.1) directing the person to notify, at the person’s own cost and in the manner specified by the court, any person aggrieved or affected by the person’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (d) directing the person to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (d.1) directing the person to pay, in a manner specified by the court, an amount to enable research to be conducted into the protection or conservation of the wildlife or the wildlife habitat in respect of which the offence was committed; (d.2) directing the person to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; Contrôle d’application d (d.3) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work in or for the community where the offence was committed; 1994, c. 23. s. 15 (2) Paragraph 16(g) of the Act is replaced by the following: (g) requiring the person to comply with any other conditions that the court considers appropriate in the circumstances for securing the person’s good conduct and for deterring the person and any other persons from committing offences under this Act; (3) Section 16 of the Act is amended by adding the following after paragraph 16(h): (i) requiring the person to surrender to the Minister any permit or other authorization issued under this Act to the person; and (j) prohibiting the person from applying for any new permit or other authorization under this Act during any period that the court considers appropriate. 50. The Act is amended by adding the following after section 16: Coming into force and duration of order 16.1 An order made under section 16 comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. Publication 16.2 If a person fails to comply with an order made under paragraph 16(c), the Minister may, in the manner that the court directed the person to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the person. Debt due to Her Majesty 16.3 If the court makes an order under paragraph 16(b.3) or (d) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under section 16.2, the amount or the costs, as the case may be, constitute a debt due C. 14 Environmental to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement 16.4 If the court makes an order under paragraph 16(d) directing a person to pay an amount to another person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, that other person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the person who was directed to pay the amount in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permits, etc. 16.5 If the court makes an order under paragraph 16(i), any permit or other authorization to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. 1994, c. 23, s. 15 51. Section 18 of the Act is replaced by the following: Limitation period 18. No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. Publication of information about contraventions 18.1 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Minister may refuse or suspend permit, etc. 18.2 The Minister may refuse to issue a permit or other authorization under this Act, or may amend, suspend or cancel such a permit or other authorization, if the applicant or the holder has been convicted of an offence under this Act. 2009 Contraventions Act Contrôle d’application d 18.3 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Review 18.4 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 13 to 18.3. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 1999, c. 33 CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999 52. Subsection 159(3) of the Canadian Environmental Protection Act, 1999 is replaced by the following: Detention of vehicles or engines (3) The Minister may not detain any vehicle, engine, equipment or component for more than 90 days after completion of the tests conducted under subsection (2) unless, before that time, proceedings have been instituted in respect of an offence related to the vehicle, engine, equipment or component, in which case it may be detained until the proceedings are concluded. 53. The Act is amended by adding the following after section 217: Immunity 217.1 Enforcement officers and analysts are not personally liable for anything they do or omit to do in good faith while carrying out duties or exercising powers under this Act, including any failure to exercise a discretionary authority. 54. (1) Subsection 218(7) of the Act is replaced by the following: Stopping and detaining conveyances (7) For the purposes of this Act and the regulations, an enforcement officer may, at any reasonable time, direct that any conveyance be stopped — or be moved by the route and in the manner that the officer may specify, to a place specified by the officer where an inspection can C. 14 Environmental be carried out — and the officer may, for a reasonable time, detain any conveyance, platform or other structure. Moving and detaining shipping containers (7.1) For the purposes of this Act and the regulations, an enforcement officer may, at any reasonable time, direct that any shipping container be moved to a place specified by the officer and the officer may, for a reasonable time, detain the container. (2) Subsection 218(11) of the Act is replaced by the following: Disposition of samples (11) An enforcement officer may dispose a sample taken under paragraph (10)(d) in any manner that the enforcement officer considers appropriate. 55. Subsection 220(2) of the Act is replaced by the following: Warrant for seizure of ships, etc. (2) If on ex parte application a justice is satisfied by information on oath that there are reasonable grounds to believe that an offence under this Act has been committed by an owner of any ship, aircraft, platform or other structure, the justice may issue a warrant authorizing an enforcement officer, or authorizing any other person named in the warrant, to seize the ship, aircraft, platform or structure anywhere in Canada and, in the case of a ship, platform or structure, within Canadian waters. 56. Subsection 222(2) of the Act is replaced by the following: Seized ship, etc., to be returned unless proceedings instituted (2) Anything referred to in subsection (1) that has been seized under section 220, or any security given to the Minister under subsection (1), shall be returned or paid to the person from whom the thing was seized within 30 days after the seizure unless, before the expiry of those 30 days, proceedings are instituted in respect of an offence under this Act alleged to have been committed by the owner of the thing. 57. Subsection 225(1) of the Act is replaced by the following: Detention of ships 225. (1) If an enforcement officer has reasonable grounds to believe that the owner or master of a ship has committed an offence under Contrôle d’application d this Act and that a ship was used in connection with the commission of the offence, the enforcement officer may make a detention order in respect of the ship. 58. Section 226 of the Act is replaced by the following: Right of passage 226. While carrying out powers, duties or functions under this Act, enforcement officers and analysts, and any persons accompanying them, may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. 59. The Act is amended by adding the following after section 228: LIABILITY FOR COSTS Liability for costs 228.1 If a thing is seized under this Act, the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. 60. Section 231 of the Act is replaced by the following: Court may order forfeiture 231. If the owner of any ship, aircraft, platform or other structure has been convicted of an offence under this Act, the convicting court may, if the ship, aircraft, platform or structure was seized under section 220 or subsection 223(1), in addition to any other penalty imposed, order that the ship, aircraft, platform or structure, or any security given under subsection 222(1), be forfeited, and on the making of such an order the ship, aircraft, platform, structure or security is forfeited to Her Majesty in right of Canada. 61. (1) Subsection 235(1) of the Act is replaced by the following: C. 14 Order 235. (1) Whenever, during the course of an inspection or a search, an enforcement officer has reasonable grounds to believe that any provision of this Act or the regulations has been contravened in the circumstances described in subsection (2) by a person who is continuing the commission of the offence, or that any of those provisions are likely to be contravened in the circumstances described in that subsection, the enforcement officer may issue an environmental protection compliance order directing any person described in subsection (3) to take any of the measures referred to in subsection (4) and, if applicable, subsection (5) that are reasonable in the circumstances and consistent with the protection of the environment and public safety, in order to cease or refrain from committing the alleged contravention. Environmental (2) Subsection 235(3) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or’’ at the end of paragraph (b) and by adding the following after paragraph (b): (c) any person who is likely to cause or contribute to the alleged contravention. (3) The portion of subsection 235(4) of the English version of the Act before paragraph (a) is replaced by the following: Specific measures (4) For the purposes of subsection (1), an order in relation to an alleged contravention of any provision of this Act or the regulations may specify that the person to whom the order is directed take one or more of the following measures: (4) Paragraphs 235(4)(c) and (d) of the French version of the Act are replaced by the following: c) cesser l’exercice d’une activité ou l’exploitation d’une partie notamment d’un ouvrage ou d’une entreprise jusqu’à ce que l’agent de l’autorité soit convaincu qu’ils sont conformes à la présente loi et aux règlements; d) déplacer un moyen de transport vers un autre lieu, y compris faire entrer un navire au port ou faire atterrir un aéronef; Contrôle d’application d (5) The portion of paragraph 235(4)(f) of the Act before subparagraph (i) is replaced by the following: (f) take any other measure that the enforcement officer considers necessary to facilitate compliance with the order — or to restore the components of the environment damaged by the alleged contravention or to protect the components of the environment put at risk by the alleged contravention — including (6) Paragraph 235(6)(b) of the Act is replaced by the following: (b) the provision of this Act or the regulations that is alleged to have been or that is likely to be contravened; (7) Paragraphs 235(6)(d) and (e) of the Act are replaced by the following: (d) the measures to be taken; (e) the time or the day when each measure is to begin or the period during which it is to be carried out; (8) Subsection 235(7) of the Act is replaced by the following: Duration of order (7) An order may not be in force for a period of more than 180 days. Failing to file report (8) For the purposes of subsection (1), a person who commits an offence by failing to file a report required by this Act or the regulations is deemed to be continuing the commission of the offence each day that the report is not filed. Statutory Instruments Act (9) An order is not a statutory instrument for the purposes of the Statutory Instruments Act. 62. Subsection 236(1) of the English version of the Act is replaced by the following: Exigent circumstances 236. (1) In the case of exigent circumstances, an order may be given orally on the condition that it is followed, within seven days, by a written order issued in accordance with section 235. C. 14 Environmental 63. Paragraph 237(1)(b) of the English version of the Act is replaced by the following: (b) allow a reasonable opportunity in the circumstances for every such person to make oral representations. 64. Subsection 238(2) of the Act is replaced by the following: No bar to proceedings (2) The issuance of or compliance with an order in respect of a person’s alleged contravention of this Act or the regulations is not a bar to any proceedings against the person under this or any other Act in relation to the alleged contravention. 65. (1) Subsection 239(1) of the Act is replaced by the following: Intervention by enforcement officer 239. (1) If any person to whom an order is directed fails to take any measures specified in the order, an enforcement officer may take the measures or cause them to be taken. (2) Subsection 239(3) of the Act is replaced by the following: Personal liability (3) Any person, other than a person described in subsection 235(3), who provides assistance or advice in taking the measures specified in an order or who takes any measures authorized or required by an enforcement officer under subsection (1) is not personally liable either civilly or criminally in respect of any act or omission in the course of providing assistance or advice or taking any measures under that subsection unless it is established that the person acted in bad faith. 66. (1) Subsection 240(3) of the English version of the Act is replaced by the following: Liability (3) The persons referred to in subsection (1) are jointly and severally, or solidarily, liable for the costs and expenses referred to in that subsection. (2) Subsections 240(5) and (6) of the French version of the Act are replaced by the following: Contrôle d’application d Poursuites (5) Sa Majesté du chef du Canada peut recouvrer les créances, ainsi que les dépens afférents, par action en recouvrement devant tout tribunal compétent. Recours contre des tiers et indemnité (6) Le présent article ne limite pas les recours contre les tiers ni le droit à une indemnité. 67. (1) The portion of subsection 241(1) of the Act before paragraph (a) is replaced by the following: Variation or cancellation of order 241. (1) At any time before a notice requesting a review of an order is received by the Chief Review Officer, the enforcement officer may, after giving reasonable notice, (2) The portion of subsection 241(3) of the French version of the Act before paragraph (a) is replaced by the following: Teneur de l’avis d’intention (3) L’avis d’intention quant à l’exercice des pouvoirs prévus à l’alinéa (1)a) doit préciser les trois éléments suivants : 68. Section 247 of the Act is replaced by the following: Knowledge 247. A person is not eligible to be appointed as a review officer unless the person is knowledgeable about the conservation and protection of the Canadian environment, environmental and human health, administrative law as it relates to environmental regulation or traditional aboriginal ecological knowledge. 69. Section 257 of the Act is replaced by the following: Review 257. On receipt of a request made under subsection 256(1), the Chief Review Officer shall conduct a review of the order, including a hearing, or cause a review and hearing of the order to be conducted by a review officer, or by a panel of three review officers, assigned by the Chief Review Officer. The Chief Review Officer may be a member of that panel. 70. Section 266 of the Act is replaced by the following: Decision 266. The review officer or the panel, as the case may be, shall, within 15 days after the completion of the review of an order, render a C. 14 Environmental decision, with written reasons, and provide all persons to whom the order was directed and the Minister with a copy of the decision and the reasons. 71. Section 267 of the Act is renumbered as subsection 267(1) and is amended by adding the following: Rules for other Acts (2) The Chief Review Officer may make rules under subsection (1) with respect to the review of orders made under any Act of Parliament that provides for the review of those orders in accordance with sections 257 to 271 of this Act. 2005, c. 23, s. 37 72. Sections 272 to 275 of the Act are replaced by the following: Offence — persons 272. (1) Every person commits an offence who (a) contravenes subsection 16(3) or (4), any of subsections 81(1), (2), (3), (4), (10), (11) and (14), 84(2) and 96(3) and (4), section 101, any of subsections 106(1), (2), (3), (4), (10) and (11) and 109(2), section 117 or 123, any of subsections 124(1), (2) and (3), 125(1), (2), (3), (4) and (5), 126(1) and (2) and 139(1), section 142 or 144, subsection 150(3) or (4), section 152, subsection 153(1), section 154, subsection 155(5), section 171 or 181 or subsection 185(1), 186(2), 189(1), 202(3) or (4) or 213(3) or (4), paragraph 228(a) or subsection 238(1); (b) fails to comply with an obligation set out in section 70, 86, 95 or 111, subsection 169(1), 172(1), 179(1), 182(1), 201(1) or 212(1); (c) contravenes a prohibition imposed under subsection 82(1) or (2), paragraph 84(1)(b), subsection 107(1) or (2), paragraph 109(1)(b) or subsection 186(1) or 225(4); (d) contravenes a condition of a permission granted under paragraph 84(1)(a) or 109(1)(a); (e) contravenes an interim order made under subsection 94(1), 173(1), 183(1) or 200.1(1); (f) fails to comply with a direction given under section 99, 119 or 148; Contrôle d’application d (g) knowingly contravenes paragraph 228(b); (h) contravenes any provision of the regulations designated by regulations made under section 286.1 for the purpose of this paragraph; (i) contravenes an agreement as defined in section 295; (j) contravenes an order, direction or decision of a court made under this Act; (k) knowingly, with respect to any matter related to this Act or the regulations, provides any person with any false or misleading information, results or samples; or (l) knowingly, with respect to any matter related to this Act or the regulations, files a document that contains false or misleading information. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than three years, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than three years, or to both; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, C. 14 Environmental (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 272.3 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Offence — persons 272.1 (1) Every person commits an offence who (a) contravenes any provision of this Act, other than a provision the contravention of which is an offence under subsection 272(1); (b) fails to comply with an obligation arising from this Act, a requirement imposed under this Act or a request made under this Act, Contrôle d’application d other than an obligation, a requirement or a request the failure to comply with is an offence under 272(1); (c) contravenes a prohibition arising from this Act, other than a prohibition the contravention of which is an offence under subsection 272(1); (d) contravenes a condition of any permission granted under this Act, other than a condition of a permission the contravention of which is an offence under subsection 272(1); (e) fails to comply with a direction given under this Act, other than a direction the failure to comply with is an offence under 272(1); (f) contravenes any provision of the regulations, other than a provision the contravention of which is an offence under subsection 272(1) or 272.2(1); (g) negligently, with respect to any matter related to this Act or the regulations, provides any person with any false or misleading information, results or samples; or (h) negligently, with respect to any matter related to this Act or the regulations, files a document that contains false or misleading information. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $100,000, and (ii) for a second or subsequent offence, to a fine of not more than $200,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $25,000, and (ii) for a second or subsequent offence, to a fine of not more than $50,000. C. 14 Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, Environmental (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 272.3 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Offence — failure to comply with designated regulations 272.2 (1) Every person who fails to comply with a provision of a regulation designated under section 286.1 for the purpose of this subsection commits an offence and is liable (a) on conviction on indictment, (i) in the case of an individual, to a fine determined in accordance with the regulations or to imprisonment for a term of not more than three years, or to both, and Contrôle d’application d (ii) in the case of a person, other than an individual, to a fine determined in accordance with the regulations; or (b) on summary conviction, (i) in the case of an individual, to a fine determined in accordance with the regulations or to imprisonment for a term of not more than six months, or to both, and (ii) in the case of a person, other than an individual, to a fine determined in accordance with the regulations. Regulations (2) The Governor in Council may make regulations prescribing the method of calculating the fine in respect of the offence referred to in subsection (1) committed by individuals, other persons and corporations determined under section 272.3 to be small revenue corporations, which method may be based on a monetary range specified in the regulations. Tradeable units (3) If a person is convicted of an offence under subsection (1) by reason of having failed to comply with a provision that requires the remission or the cancellation of tradeable units described in regulations made under section 326, the court shall, in addition to any other punishment that may be imposed under subsection (1), make an order requiring the person to remit or cancel tradeable units of the type and number determined in accordance with regulations made under subsection (4) or, if there are no regulations made under that subsection, in accordance with subsection (5). In the case of an order to remit, the court shall specify in the order the name of the person or entity to whom the tradeable units are to be remitted. Regulations (4) The Governor in Council may make regulations prescribing the types of tradeable units described in regulations made under section 326 that a person may be required to remit or cancel in an order made under C. 14 Environmental subsection (3) and the manner of determining the number of those tradeable units that the person may be required to remit or cancel. Absence of regulations (5) If there are no regulations made under subsection (4), the court shall require the person to remit or cancel tradeable units of a type and in the number that, in the court’s opinion, the person failed to remit or cancel. Determination of small revenue corporation status 272.3 For the purpose of sections 272, 272.1 and 272.2, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Offence — ships 272.4 (1) Every ship commits an offence if it contravenes (a) section 123, subsection 124(1.1), 125(1), (2.1) or (3.1) or 126(1.1) or (3); (b) any provision of the regulations designated by regulations made under section 286.1; or (c) any order or a direction made under this Act, including one made by a court. Penalty — ships of 7 500 tonnes deadweight or over (2) Every ship of 7 500 tonnes deadweight or over that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — other ships Contrôle d’application d (3) Every other ship that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Offences — ships 272.5 (1) Every ship commits an offence if it contravenes (a) any provision of this Act that expressly applies to ships, other than a provision the contravention of which is an offence under subsection 272.4(1); or (b) any provision of the regulations other than a provision the contravention of which is an offence under subsection 272.4(1). Penalty — ship of 7 500 tonnes deadweight or over (2) Every ship of 7 500 tonnes deadweight or over that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. C. 14 Penalty — other ships (3) Every other ship that commits an offence under subsection (1) is liable, Environmental (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Relief from minimum fine 273. The court may impose a fine that is less than the minimum amount provided for in subsection 272(2), (3) or (4) or 272.4(2) or (3) if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in any of those subsections. Deeming — second and subsequent offence 273.1 (1) For the purposes of subsections 272(2) to (4), 272.1(2) to (4), 272.4(2) and (3) and 272.5(2) and (3), a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife conservation or protection — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. 2009 Damage to environment and risk of death or harm to persons Contrôle d’application d 274. (1) Every person is guilty of an offence and liable on conviction on indictment to a fine or to imprisonment for a term of not more than five years, or to both, who, in committing an offence under this Act, (a) intentionally or recklessly causes a disaster that results in a loss of the use or the non-use value of the environment; or (b) shows wanton or reckless disregard for the lives or safety of other persons and thereby causes a risk of death or harm to another person. Criminal negligence (2) Every person who, in committing an offence under this Act, shows wanton or reckless disregard for the lives or safety of other persons and thereby causes death or bodily harm to another person is subject to prosecution and punishment under section 220 or 221 of the Criminal Code. Additional fine 274.1 If a person or ship is convicted of an offence and the court is satisfied that, as a result of the commission of the offence, the person — or, if the offender is a ship, the owner or operator of the ship — acquired any property, benefit or advantage, the court shall order the offender to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 274.2 If a corporation that has shareholders is convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Limitation period 275. No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. C. 14 2005, c. 23, s. 41 73. Section 280 of the Act is replaced by the following: Liability of directors, officer, etc., of corporation 280. (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence, and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Liability of masters and chief engineers (2) If a ship commits an offence under this Act and the master or chief engineer of the ship directed, authorized, assented to, acquiesced in or participated in the commission of the offence, the master or chief engineer, as the case may be, is a party to and guilty of the offence, and is liable on conviction to the penalty provided for by this Act for an individual who commits an offence under subsection 272.1(1), whether or not the ship has been prosecuted or convicted. 2005, c. 23, s. 41 74. Subsection 280.1(3) of the Act is replaced by the following: Liability of directors and officers — Division 3 of Part 7 (3) If a corporation commits an offence arising out of a contravention of Division 3 of Part 7, a regulation made under that Division or an order or direction of, or prohibition or requirement imposed by, the Minister, an enforcement officer or a review officer in connection with an obligation or prohibition under that Division or a regulation made under that Division, every director and officer of the corporation who directed or influenced the corporation’s policies or activities in respect of conduct that is the subject matter of the offence is a party to and guilty of the offence, and is liable to the penalty provided by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. 2005, c. 23, s. 41 75. Subsection 280.2(2) of the Act is replaced by the following: Environmental Contrôle d’application d Liability of master and chief engineer (2) If a ship commits an offence arising out of a contravention of Division 3 of Part 7, a regulation made under that Division or an order or direction of, or prohibition or requirement imposed by, the Minister, an enforcement officer or a review officer in connection with an obligation or prohibition under that Division or a regulation made under that Division, the master and the chief engineer of the ship are a party to and guilty of the offence, and are liable to the penalty provided for by this Act for an individual who commits an offence under subsection 272(1), whether or not the ship has been prosecuted or convicted. 2005, c. 23, s. 41 76. Sections 280.3 to 280.5 of the Act are replaced by the following: Duties of ship owners 280.3 (1) Every owner of a ship — and, if the owner is a corporation, every director and officer of the corporation who is in a position to direct or influence its policies or activities relating to conduct prohibited by Division 3 of Part 7 — shall take all reasonable care to ensure that the ship complies, and all persons on board the ship comply, with (a) Division 3 of Part 7 and regulations made under that Division; and (b) orders and directions of, and prohibitions and requirements imposed by, the Minister, enforcement officers and review officers in connection with obligations or prohibitions under that Division or those regulations. Liability of ship’s owner — individual (2) If a ship commits an offence arising out of a contravention of Division 3 of Part 7, a regulation made under that Division or an order or direction of, or prohibition or requirement imposed by, the Minister, an enforcement officer or a review officer in connection with an obligation or prohibition under that Division or a regulation made under that Division and the owner of the ship, other than an owner that is a corporation, directed, authorized, assented to, acquiesced in or participated in the commission of the offence, the owner is a party to and guilty of the offence and is liable to the penalty provided by this Act for an individual who C. 14 Environmental commits an offence under subsection 272(1), whether or not the ship has been prosecuted or convicted. Liability of directors and officers of corporate ship owners (3) If a ship commits an offence arising out of a contravention of Division 3 of Part 7, a regulation made under that Division or an order or direction of, or prohibition or requirement imposed by, the Minister, an enforcement officer or a review officer in connection with an obligation or prohibition under that Division or a regulation made under that Division, every director or officer of a corporation that is an owner of the ship who directed or influenced the corporation’s policies or activities in respect of conduct that is the subject matter of the offence is a party to and guilty of the offence, and is liable to penalty provided by this Act for an individual who commits an offence under subsection 272(1), whether or not the ship has been prosecuted or convicted. For greater certainty 280.4 For greater certainty, section 283 applies to a person who is a party to an offence by reason of subsection 280.1(3), 280.2(2) or 280.3(2) or (3). Direction binds ship 280.5 For the purpose of prosecuting a ship for contravening a direction made under section 225.1, any direction made under that section that is given to the master or a crew member of the ship binds the ship as though it had been given to the ship. 2005, c. 23, s. 42 77. Subsection 281.1(2) of the Act is replaced by the following: Service on ship (2) If a ship is charged with having committed an offence under this Act, the summons may be served by leaving it with the owner, master or any officer of the ship or by posting the summons on some conspicuous part of the ship. Appearance at trial (3) If a ship is charged with having committed an offence under this Act, the ship may appear by counsel or representative. Despite the Contrôle d’application d Criminal Code, if the ship does not so appear, a court may, on proof of service of the summons, proceed to hold the trial. 78. Subsection 282(1) of the Act is replaced by the following: Proof of offence 282. (1) In any prosecution of an offence under this Act, other than an offence under paragraph 272(1)(k) or (l) or an offence of contravening section 228 or an offence under 274, it is sufficient proof of the offence to establish that it was committed by an employee, agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or prosecuted for the offence. 79. Section 283 of the Act is replaced by the following: Defence 283. No person shall be found guilty of an offence under this Act, other than an offence of contravening paragraph 228(a) or knowingly contravening paragraph 228(b), an offence under paragraph 272(1)(k) or (l) or an offence under section 274, if the person establishes that the person exercised all due diligence to prevent its commission. 80. The Act is amended by adding the following after section 286: Regulations 286.1 The Governor in Council may, by regulation, designate provisions of regulations made under this Act for the purposes of paragraph 272(1)(h) and subsection 272.2(1) and paragraph 272.4(1)(b). 81. Section 287 of the Act and the heading before it are replaced by the following: SENTENCING Fundamental purpose of sentencing 287. The fundamental purpose of sentencing for offences under this Act is to contribute, in light of the significant and many threats to the environment and to human health and to the importance of a healthy environment to the well-being of Canadians, to respect for the law protecting the environment and human health through the imposition of just sanctions that have as their objectives C. 14 Environmental (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that damages or creates a risk of damage to the environment or harms or creates a risk of harm to human health; and (c) to reinforce the “polluter pays” principle by ensuring that offenders are held responsible for effective clean-up and environmental restoration. Sentencing principles 287.1 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to the environment or environmental quality; (b) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable component of the environment; (c) the offence caused harm or risk of harm to human health; (d) the damage or harm caused by the offence is extensive, persistent or irreparable; (e) the offender committed the offence intentionally or recklessly; Contrôle d’application d (f) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; (g) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (h) the offender committed the offence despite having been warned by an enforcement officer of the circumstances that subsequently became the subject of the offence; (i) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife conservation or protection; and (j) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a), (b) and (d), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. 82. Subsection 288(2) of the Act is replaced by the following: Conditions of order (2) If an order is made under subsection (1) and the offender contravenes or fails to comply with it, or is convicted of an offence under this Act, the prosecutor may apply to the court to C. 14 Environmental revoke the discharge, convict the offender of the offence to which the discharge relates and impose any sentence that could have been imposed if the offender had been convicted at the time the order was made. 83. Subsection 289(2) of the Act is replaced by the following: Application by prosecutor (2) If the passing of sentence has been suspended under subsection (1) and the offender contravenes or fails to comply with an order made under section 291, or is convicted of an offence under this Act, the prosecutor may apply to the court to impose any sentence that could have been imposed if the passing of sentence had not been suspended. 84. Section 290 of the Act is repealed. 85. (1) Paragraph 291(1)(d) of the French version of the Act is replaced by the following: d) mener des études de suivi des effets sur l’environnement, de la façon que le ministre indique, ou verser, selon les modalités prescrites par le tribunal, une somme d’argent destinée à permettre ces études; (2) Paragraphs 291(1)(g) and (h) of the Act are replaced by the following: (f.1) directing the offender to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the conservation or protection of the environment; (g) directing the offender to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (h) directing the offender to notify, at the offender’s own cost and in the manner specified by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; Contrôle d’application d (3) Paragraph 291(1)(k) of the Act is replaced by the following: (k) directing the offender to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (4) Paragraph 291(1)(m) of the Act is repealed. (4.1) Paragraph 291(1)(p) of the Act is replaced by the following: (p) directing the offender to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; (5) Paragraph 291(1)(q) of the Act is replaced by the following: (q) requiring the offender to comply with any other conditions that the court considers appropriate in the circumstances for securing the offender’s good conduct and for deterring the offender and any other person from committing offences under this Act; (r) requiring the offender to surrender to the Minister any permit or other authorization issued under this Act to the offender; and (s) prohibiting the offender from applying for any new permit or other authorization under this Act during any period that the court considers appropriate. (6) Subsections 291(2) to (4) of the Act are replaced by the following: Publication (2) If an offender fails to comply with an order made under paragraph (1)(g), the Minister may, in the manner that the court directed the offender to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the offender. C. 14 Debt due to Her Majesty (3) If the court makes an order under paragraph (1)(f.1) or (k) directing an offender to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (2), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (4) If the court makes an order under paragraph (1)(k) directing an offender to pay an amount to a person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, the person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permits, etc. (5) If the court makes an order under paragraph (1)(r), any permit or other authorization to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. Coming into force and duration of order (6) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. Environmental 85.1 The Act is amended by adding the following after section 292: Compensation for cost of remedial or preventive action 292.1 (1) A court shall not, under paragraph 291(1)(k), order an offender to compensate a person for the cost of any remedial or preventive action referred to in that paragraph if the person is entitled to make a claim for compensation for that cost under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. 2009 Compensation for loss or damage — property Contrôle d’application d (2) A court shall not, under subsection 292(1), order an offender to pay to a person an amount by way of satisfaction or compensation for loss of or damage to property if the person is entitled to make a claim for compensation for that loss or damage under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. 86. The Act is amended by adding the following after section 294: Application of fines 294.1 (1) Subject to regulations made under section 278, all fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). Publication of information about contraventions 294.2 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Minister may refuse or suspend permit 294.3 The Minister may refuse to issue a permit or other authorization under this Act, or may cancel such a permit or other authorization, if the applicant or the holder has been convicted of an offence under this Act. 106 Contraventions Act C. 14 Environmental 294.4 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Review 294.5 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 272 to 294.4. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 87. Paragraph 296(1)(b) of the Act is replaced by the following: (b) the offence alleged to have been committed is an offence under this Act, except an offence (i) in respect of the contravention of subsection 16(4), 81(1), (2), (3) or (4), 82(1) or (2), 84(2) or 96(4), section 99, subsection 106(1), (2), (3) or (4), 107(1) or (2), 109(1) or (2), 119(1), 148(1), 202(4) or 213(4) or section 227 or 228, or any obligation or prohibition arising from any of those provisions, (ii) for failing to comply with (A) an order or a direction made under this Act; (B) an order, direction or decision of a court made under this Act; or (C) an agreement, or (iii) under any of paragraphs 272(1)(k) and (l) and subsections 274(1) and (2); 88. Section 297 of the Act is replaced by the following: Sentencing considerations 297. If an information in respect of an offence of contravening an agreement has been laid and proceedings in respect of the alleged offence for which the agreement was entered into have been recommenced, the court imposing a sentence for either offence shall take into account, in addition to the principles and factors Contrôle d’application d referred to in section 287.1, any sentence that has previously been imposed for the other offence. R.S., c. I-20 INTERNATIONAL RIVER IMPROVEMENTS ACT 89. Section 2 of the International River Improvements Act is amended by adding the following in alphabetical order: “Chief Review Officer” « réviseur-chef » “Chief Review Officer” means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999 and includes any review officer designated under subsection 244(3) of that Act to perform the functions of the Chief Review Officer; 90. (1) The portion of section 3 of the French version of the Act before paragraph (a) is replaced by the following: Règlements 3. Aux fins de l’aménagement et de l’utilisation des ressources en eau du Canada dans l’intérêt national, le gouverneur en conseil peut prendre des règlements : (2) Section 3 of the Act is amended by striking out “and” at the end of paragraph (c) and by replacing paragraph (d) with the following: (d) respecting the exemption of international river improvements from the operation of this Act; (e) authorizing the conduct of inspections under this Act in respect of any improvement exempted from the operation of this Act under the authority of regulations made under paragraph (d) and setting out the purposes for which those inspections may be carried out; and (f) designating provisions of the regulations for the purpose of paragraph 33(1)(b). 91. Sections 4 to 6 of the Act are replaced by the following: C. 14 Constructing, operating, etc., improvement without licence or contrary to a licence 4. Except in accordance with a licence issued under this Act, no person shall construct, operate or maintain an international river improvement. Environmental 92. Section 7 of the Act is renumbered as subsection 7(1) and is amended by adding the following: Inspections permitted (2) Despite subsection (1), inspections may be carried out under this Act in respect of any international river improvement referred to in paragraph (1)(c) to verify that the improvement is being constructed or continues to be operated or maintained solely for domestic, sanitary or irrigation purposes or other similar consumptive uses. 93. Section 10 of the Act is replaced by the following: ENFORCEMENT ENFORCEMENT OFFICERS AND ANALYSTS Designation 10. (1) The Minister may designate as an enforcement officer or analyst for the purpose of this Act or any provision of this Act any person or member of a class of persons who, in the Minister’s opinion, is qualified to be so designated. Powers (2) For the purposes of this Act, an enforcement officer has all the powers of a peace officer, but the Minister may specify limits on those powers when designating the enforcement officer. Limits (3) The Minister may limit the powers that may be exercised by an enforcement officer or analyst under this Act. Production of certificate (4) The Minister must provide every enforcement officer and analyst with a certificate of designation that includes any limits under subsection (2) or (3). On entering any place, the enforcement officer or analyst must, if so requested, produce the certificate to the person in charge of the place. Contrôle d’application d Immunity 11. Enforcement officers and analysts are not personally liable for anything they do or omit to do in good faith under this Act. Right of passage 12. While carrying out duties or functions under this Act, enforcement officers and analysts, and any persons accompanying them, may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. INSPECTIONS Power to enter and inspect 13. (1) Subject to subsection (2), for the purposes of this Act, an enforcement officer may, at any reasonable time, enter and inspect any place in which the officer believes, on reasonable grounds, there is anything to which this Act applies or any document relating to its administration. Dwelling-place (2) An enforcement officer may not enter a dwelling-place without the occupant’s consent or a warrant issued under subsection (3). Authority to issue warrant — dwelling-places (3) On ex parte application, a justice may issue a warrant authorizing an enforcement officer named in the warrant to conduct an inspection of a dwelling-place, subject to any conditions specified in the warrant — and authorizing any other person named in the warrant to accompany the enforcement officer and exercise any power specified in the warrant subject to any conditions specified in the warrant — if the justice is satisfied by information on oath that (a) the conditions for entry described in subsection (1) exist in relation to the dwelling-place; (b) entry to the dwelling-place is necessary for any purpose relating to the administration of this Act; and (c) entry to the dwelling-place has been refused or there are reasonable grounds for believing that entry will be refused. C. 14 Authority to issue warrant — non-dwellings (4) On ex parte application, a justice may issue a warrant authorizing an enforcement officer named in the warrant to conduct an inspection of a place other than a dwellingplace, subject to any conditions specified in the warrant — and authorizing any other person named in the warrant to accompany the enforcement officer and exercise any power specified in the warrant subject to any conditions specified in the warrant — if the justice is satisfied by information on oath that Environmental (a) the conditions for entry described in subsection (1) exist in relation to that place; (b) entry to the place is necessary for any purpose relating to the administration of this Act; (c) entry to the place has been refused, the enforcement officer was not able to enter without the use of force or the place was abandoned; and (d) subject to subsection (5), all reasonable attempts were made to notify the owner, operator or person in charge of the place. Waiving notice (5) The justice may waive the requirement to give notice under paragraph (4)(d) if he or she is satisfied that attempts to give the notice would be unsuccessful because the owner, operator or person in charge is absent from the jurisdiction of the justice or that it is not in the public interest to give the notice. Use of force (6) In executing a warrant issued under subsection (3) or (4), an enforcement officer shall not use force unless its use has been specifically authorized in the warrant. Stopping and detaining conveyances (7) For the purposes of this Act, an enforcement officer may, at any reasonable time, direct that any conveyance be stopped — or be moved, by the route and in the manner that the officer may specify, to a place specified by the officer where an inspection can be carried out — and the officer may, for a reasonable time, detain any conveyance. Enforcement officer’s powers (8) In carrying out an inspection of a place under this section, an enforcement officer may, for the purposes of this Act, Contrôle d’application d (a) examine any thing relevant to the administration of this Act that is found in the place; (b) open and examine any receptacle or package found that the officer believes on reasonable grounds contains any thing referred to in paragraph (a); (c) examine any books, records, electronic data or other documents that the officer believes on reasonable grounds contain any information relevant to the administration of this Act and make copies of them or take extracts from them; (d) take samples of anything relevant to the administration of this Act; and (e) conduct any tests or take any measurements. Analysts (9) An analyst may, for the purposes of this Act, accompany an enforcement officer who is carrying out an inspection of a place under this section, and the analyst may, when accompanying the enforcement officer, enter the place and exercise any of the powers described in subsection (8). Disposition of samples (10) An enforcement officer or analyst may dispose of a sample taken under paragraph 8(d) in any manner that the officer or analyst considers appropriate. Operation of computer systems and copying equipment (11) In carrying out an inspection, an enforcement officer may (a) use or cause to be used any computer system or data processing system at the place being inspected to examine any data contained in, or available to, the system; (b) reproduce any record, or cause it to be reproduced from the data, in the form of a printout or other intelligible output and remove the printout or other output for examination or copying; and (c) use or cause to be used any copying equipment at the place being inspected to make copies of any books, records, electronic data or other documents. C. 14 Duty of person in possession or control (12) Every person who is in possession or control of a place being inspected under this section shall permit the enforcement officer to do anything referred to in subsection (11). Production of documents and samples 14. (1) The Minister may, for the purposes of this Act, by registered letter or by a demand served personally, require any person, within any reasonable time and in any reasonable manner that may be stipulated in the letter or demand, Environmental (a) to produce at a place specified by the Minister any sample taken or any document; or (b) to conduct any tests or take any measurements or samples there. Compliance (2) Any person who is required to do anything under subsection (1) shall, despite any other law to the contrary, comply with the requirement. SEARCH AND SEIZURE Search and seizure without warrant 15. For the purpose of this Act and the regulations, an enforcement officer may exercise the powers of search and seizure provided in section 487 of the Criminal Code without a search warrant if the conditions for obtaining a warrant exist but by reason of exigent circumstances it would not be feasible to obtain it. ASSISTANCE TO ENFORCEMENT OFFICERS AND ANALYSTS Assistance 16. The owner or the person in charge of a place entered by an enforcement officer or analyst under this Act, and every person found in the place, shall (a) give the enforcement officer or analyst all reasonable assistance to enable the officer or analyst to carry out their duties or functions under this Act; and (b) provide the enforcement officer or analyst with any information with respect to the administration of this Act that the officer or analyst may reasonably require. Contrôle d’application d MISCELLANEOUS PROVISIONS Documents admissible in evidence 16.1 (1) A document made, given or issued under this Act and appearing to be signed by an analyst is admissible in evidence and, in the absence of evidence to the contrary, is proof of the statements contained in the document without proof of the signature or official character of the person appearing to have signed the document. Attendance of analyst (2) The party against whom the document is produced may, with leave of the court, require the attendance of the analyst who signed it. Notice (3) No document referred to in subsection (1) may be received in evidence unless the party intending to produce it has given to the party against whom it is intended to be produced reasonable notice of that intention together with a copy of the document. Custody of things seized 17. (1) Subject to subsection (2), if an enforcement officer seizes a thing under this Act or under a warrant issued under the Criminal Code, (a) sections 489.1 and 490 of the Criminal Code apply; and (b) the officer, or any person that the officer may designate, shall retain custody of the thing subject to any order made under section 490 of the Criminal Code. Forfeiture if ownership not ascertainable (2) If the lawful ownership of or entitlement to a seized thing cannot be ascertained within 30 days after the day on which it is seized, the thing, or any proceeds of its disposition, are forfeited to Her Majesty in right of Canada. Disposition by Minister 18. Any thing that has been forfeited under this Act may be dealt with and disposed of as the Minister may direct. Liability for costs 19. If a thing is seized under this Act or under a warrant issued under the Criminal Code, the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the C. 14 Environmental costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. COMPLIANCE ORDERS Meaning of “order” 20. For the purpose of sections 21 to 30, “order” means a compliance order issued under section 21. Order 21. (1) Whenever, during the course of an inspection or a search, an enforcement officer has reasonable grounds to believe that any provision of this Act or the regulations has been contravened by a person who is continuing the commission of the offence, or that any of those provisions are likely to be contravened, the enforcement officer may issue a compliance order directing any person who causes or contributes to the alleged contravention, or who is likely to do so, to take any of the measures referred to in subsection (2) that are reasonable in the circumstances in order to cease or refrain from committing the alleged contravention. Specific measures (2) The order may specify that the person to whom the order is directed take one or more of the following measures: (a) refrain from doing anything in contravention of this Act or the regulations, or do anything to comply with this Act or the regulations; (b) stop or shut down any activity, work, undertaking or thing for a specified period; (c) cease the operation of any activity or any part of a work, undertaking or thing until the enforcement officer is satisfied that the activity, work, undertaking or thing will be operated in accordance with this Act and the regulations; (d) move any conveyance to another location; (e) unload or reload the contents of any conveyance; and Contrôle d’application d (f) take any other measure that the enforcement officer considers necessary to facilitate compliance with the order, including, but not limited to, (i) maintaining records on any relevant matter, (ii) reporting periodically to the officer, and (iii) submitting to the enforcement officer any information, proposal or plan specified by the officer that sets out any action to be taken by the person with respect to the subject matter of the order. Contents of order (3) Subject to section 22, an order must be made in writing and must set out (a) the name of the person or persons to whom the order is directed; (b) the provision of this Act or the regulations that is alleged to have been or that is likely to be contravened; (c) the relevant facts surrounding the alleged contravention; (d) the measures to be taken; (e) the time or the day when each measure is to begin or the period during which it is to be carried out; (f) subject to subsection (4), the duration of the order; (g) a statement that a request for a review may be made to the Chief Review Officer; and (h) the period within which a request for a review may be made. Duration of order (4) An order may not be in force for a period of more than 180 days. Failing to file report (5) For the purposes of subsection (1), a person who commits an offence by failing to file a report required by this Act or the regulations is deemed to be continuing the commission of the offence each day that the report is not filed. Statutory Instruments Act (6) An order is not a statutory instrument for the purposes of the Statutory Instruments Act. C. 14 Exigent circumstances 22. (1) In the case of exigent circumstances, an order may be given orally on the condition that it is followed, within seven days, by a written order issued in accordance with section 21. Meaning of “exigent circumstances” (2) For greater certainty, “exigent circumstances” includes circumstances in which the delay that is necessary to issue a written order that meets the requirements of subsection 21(3) would result in danger to human life or to the environment. Notice of intent 23. (1) Except in exigent circumstances, an enforcement officer shall, whenever practicable, before issuing an order, Environmental (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to issue it; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (2) The notice of intent to issue the order must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the order is to be issued; and (c) a statement that the party notified may make oral representations to the enforcement officer within the period stated in the notice. Compliance with order 24. (1) A person to whom an order is directed shall, immediately on receipt of the order or a copy of it or on being directed by an enforcement officer in an order given orally under subsection 22(1), comply with the order. No bar to proceedings (2) The issuance of or compliance with an order in respect of a person’s alleged contravention of this Act or the regulations is not a bar to any proceedings against the person under this or any other Act in relation to the alleged contravention. Intervention by enforcement officer 25. (1) If a person to whom an order is directed fails to take any measures specified in it, an enforcement officer may take the measures or cause them to be taken. Contrôle d’application d Access to property (2) An enforcement officer or other person authorized or required by an enforcement officer to take measures under subsection (1) may enter and have access to any place or property and may do any reasonable thing that may be necessary in the circumstances. Personal liability (3) Any person, other than a person referred to in subsection 21(1), who provides assistance or advice in taking the measures specified in an order or who takes any measures authorized or required by an enforcement officer under subsection (1) is not personally liable either civilly or criminally in respect of any act or omission in the course of providing assistance or advice or taking any measures under that subsection unless it is established that the person acted in bad faith. Recovery of reasonable costs and expenses by Her Majesty 26. (1) Her Majesty in right of Canada may recover the costs and expenses of and incidental to any measures taken under subsection 25(1) from any person who caused or contributed to the alleged contravention, to the extent of the person’s negligence in causing or contributing to the alleged contravention. Costs must have been reasonably incurred (2) The costs and expenses may only be recovered to the extent that they can be established to have been reasonably incurred in the circumstances. Procedure (3) A claim under this section may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken in the name of Her Majesty in right of Canada in any court of competent jurisdiction. Recourse or indemnity (4) This section does not limit or restrict any right of recourse or indemnity that a person may have against any other person. Limitation period (5) If events giving rise to a claim under this section occur, no proceedings in respect of the claim may be instituted more than five years after the day on which the events occur or become evident to the Minister, whichever is later. Minister’s certificate (6) A document purporting to have been issued by the Minister certifying the day on which the events giving rise to a claim under this section came to the knowledge of the Minister shall be received in evidence and, in C. 14 Environmental the absence of any evidence to the contrary, the document is to be considered as proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document and without further proof. Request for review 27. (1) Any person to whom an order is directed may, by notice in writing given to the Chief Review Officer within 30 days after the day on which the person receives a copy of the written order or after the oral order is given, make a request to the Chief Review Officer for a review of the order. Extension of period for request (2) The Chief Review Officer may extend the period within which a request for a review may be made if, in his or her opinion, it is in the public interest to do so. Variation or cancellation of order 28. (1) At any time before a notice requesting a review of an order is received by the Chief Review Officer, the enforcement officer may, after giving reasonable notice, (a) amend or suspend a term or condition of the order, or add a term or condition to, or delete a term or condition from, the order; (b) cancel the order; (c) correct a clerical error in the order; or (d) extend the duration of the order for a period of not more than 180 days less the number of days that have passed after the day on which the order was received by the person who is subject to it. Notice of intent (2) Except in exigent circumstances, an enforcement officer shall, whenever practicable, before exercising a power under paragraph (1)(a) or (d), (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to exercise the power; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (3) The notice of intent to exercise a power under paragraph (1)(a) must include (a) a statement of the purpose of the notice; Contrôle d’application d (b) a reference to the statutory authority under which the power is to be exercised; and (c) a statement that the party notified may make oral representations to the enforcement officer within the period stated in the notice. Regulations 29. The Minister may make regulations (a) prescribing the form of reporting to enforcement officers under subparagraph 21(2)(f)(ii) and specifying the information required to be contained in or to accompany the report; and (b) of either particular or general application, respecting representations made to enforcement officers under paragraph 23(1)(b) or 28(2)(b). Review 30. Sections 257 to 271 of the Canadian Environmental Protection Act, 1999 apply, with any modifications that the circumstances require, to a review requested of any order. OBSTRUCTION AND FALSE INFORMATION Obstruction 31. No person shall obstruct an enforcement officer or analyst or hinder any of them in carrying out their functions under this Act. Knowingly providing false or misleading information, etc. 32. (1) No person shall, with respect to any matter related to this Act, knowingly (a) provide any person with false or misleading information, results or samples; or (b) file a document that contains false or misleading information. Negligently providing false or misleading information, etc. (2) No person shall, with respect to any matter related to this Act, negligently (a) provide any person with false or misleading information, results or samples; or (b) file a document that contains false or misleading information. C. 14 Environmental OFFENCES AND PUNISHMENT Offence 33. (1) Every person commits an offence who contravenes (a) section 4, subsection 24(1), section 31 or subsection 32(1); (b) any provision of the regulations designated by regulations made under paragraph 3(f); or (c) an order made by a court under this Act. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than five years, or to both; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), who commits and offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or Contrôle d’application d (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 37 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Offence 34. (1) Every person commits an offence who contravenes any provision of the Act or the regulations, other than a provision the contravention of which is an offence under subsection 33(1). Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $100,000, and (ii) for a second or subsequent offence, to a fine of not more than $200,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $25,000, and (ii) for a second or subsequent offence, to a fine of not more than $50,000. C. 14 Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, Environmental (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 37 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Continuing offences 35. If a contravention of a provision of this Act or of the regulations is committed or continued on more than one day, it constitutes a separate offence for each day on which it is committed or continued. Deeming — second and subsequent offence 36. (1) For the purposes of sections 33 and 34, a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is Contrôle d’application d satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to water resource management — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. Determination of small revenue corporation status 37. For the purpose of sections 33 and 34, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Relief from minimum fine 38. The court may impose a fine that is less than the minimum amount provided for in any of subsections 33(2) to (4) if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in that subsection. Additional fine 39. If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person acquired any property, benefit or advantage, the court shall order the person to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 40. If a corporation that has shareholders has been convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. C. 14 Liability of directors, officers, etc., of corporation 41. (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Directors’ and officers’ duties (2) Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with Environmental (a) this Act and the regulations; and (b) any orders and directions of, and prohibitions and requirements imposed by, any court, the Minister, enforcement officers and analysts. Fundamental purpose of sentencing 42. The fundamental purpose of sentencing for offences under this Act is to contribute to respect for this Act through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that harms water resources; and (c) to restore the environment harmed by the offence. Sentencing principles 43. (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and Contrôle d’application d (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to the environment; (b) the offence caused damage or risk of damage to any unique, particularly important or vulnerable environment; (c) the damage caused by the offence is extensive, persistent or irreparable; (d) the offender committed the offence intentionally or recklessly; (e) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; (f) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (g) the offender committed the offence despite having been warned by an enforcement officer of the circumstances that subsequently became the subject of the offence; (h) the offender has a history of noncompliance with federal or provincial legislation that relates to water resource management; and (i) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. C. 14 Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) to (c), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. Application of fines 44. (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). Orders of court 45. (1) If a person is convicted of an offence under this Act, in addition to any punishment imposed, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, make an order containing one or more of the following prohibitions, directions or requirements: Environmental (a) prohibiting the person from doing any act or engaging in any activity that may, in the opinion of the court, result in the continuation or repetition of the offence; (b) directing the person to take any action that the court considers appropriate to remedy or avoid any damage to the environment that resulted or may result from the commission of the offence; Contrôle d’application d (c) directing the person to post a bond, provide surety or pay into court an amount of money that the court considers appropriate for the purpose of ensuring compliance with any prohibition, direction or requirement mentioned in this section; (d) directing the person to carry out environmental effects monitoring in the manner established by the Minister or directing the person to pay, in the manner specified by the court, an amount for the purposes of environmental effects monitoring; (e) directing the person to implement an environmental management system that meets a recognized Canadian or international standard specified by the court; (f) directing the person to have an environmental audit conducted by a person of a class and at the times specified by the Minister and directing the person to remedy any deficiencies revealed during the audit; (g) directing the person to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting sustainable water resource management; (h) directing the person to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (i) directing the person to notify, at the person’s own cost and in the manner specified by the court, any person aggrieved or affected by the person’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (j) directing the person to submit to the Minister, when requested to do so by the Minister at any time within three years after the date of conviction, any information with respect to the person’s activities that the court considers appropriate in the circumstances; C. 14 Environmental (k) directing the person to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (l) directing the person to perform community service, subject to any reasonable conditions that may be imposed in the order; (m) requiring the person to surrender to the Minister any licence issued under the regulations to the person; (n) prohibiting the person from applying for any new licence under the regulations during any period that the court considers appropriate; (o) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work in or for a community near the place where the offence was committed; (p) directing the person to pay, in a manner specified by the court, an amount to enable research to be conducted into the protection, conservation or restoration of international rivers; (q) directing the person to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; and (r) requiring the person to comply with any other conditions that the court considers appropriate for securing the offender’s good conduct and for deterring the person and any other person from committing offences under this Act. Publication (2) If a person fails to comply with an order made under paragraph (1)(h), the Minister may, in the manner that the court directed the person to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the person. Contrôle d’application d Debt due to Her Majesty (3) If the court makes an order under paragraph (1)(g) or (k) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (2), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (4) If the court makes an order under paragraph (1)(k) directing a person to pay an amount to another person, other than to Her Majesty in right of Canada, that other person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the person who was directed to pay the amount in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of licences (5) If the court makes an order under paragraph (1)(m), any licence to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. Coming into force and duration of order (6) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. Forfeiture 46. (1) If a person is convicted of an offence under this Act, the court may, in addition to any punishment imposed, order that any seized thing by means of or in relation to which the offence was committed, or any proceeds of its disposition, be forfeited to Her Majesty in right of Canada. Return if no forfeiture ordered (2) If the court does not order the forfeiture, the seized thing or the proceeds of its disposition shall be returned or paid to its lawful owner or the person lawfully entitled to it. Retention or sale 47. If a fine is imposed on a person who is convicted of an offence, any seized thing, or any proceeds of its disposition, may be retained until C. 14 Environmental the fine is paid or the thing may be sold in satisfaction of the fine and the proceeds applied, in whole or in part, in payment of the fine. Compensation for loss of property 48. (1) If a person has been convicted of an offence under this Act, the court may, at the time sentence is imposed and on the application of the person aggrieved, order the offender to pay to the aggrieved person an amount by way of satisfaction or compensation for loss of or damage to property suffered by that person as a result of the commission of the offence. Enforcement (2) If the amount ordered to be paid under subsection (1) is not paid without delay, the aggrieved person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Limitation period 49. No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. Publication of information about contraventions 50. (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. REPORTS Report — operations under the Act 51. As soon as practicable after the 31st day of December of each year, the Minister shall prepare and cause a report of the operations under this Act for that year to be tabled in each House of Parliament. Review — sections 33 to 50 52. (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 33 to 50. Contrôle d’application d Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 1994, c. 22 MIGRATORY BIRDS CONVENTION ACT, 1994 94. Subsection 2(1) of the Migratory Birds Convention Act, 1994 is amended by adding the following in alphabetical order: “Chief Review Officer” « réviseur-chef » “Chief Review Officer” means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999 and includes any review officer designated under subsection 244(3) of that Act to perform the functions of the Chief Review Officer; 95. The Act is amended by adding the following after section 6: Immunity 6.1 Game officers and persons acting under a game officer’s direction and control are not personally liable for anything they do or omit to do in good faith under this Act. 2005, c. 23, s. 6(3) 96. Subsection 7(2) of the Act is replaced by the following: Stopping and detaining conveyances (2) A game officer may, at any reasonable time, direct that a conveyance be stopped — or be moved, by the route and in the manner that the officer may specify, to a place specified by the officer where an inspection can be carried out — and the officer may, for a reasonable time, detain a conveyance. 2005, c. 23, s. 7 97. Section 8.2 of the French version of the Act is replaced by the following: Droit de passage 8.2 La personne qui exerce des fonctions au titre de la présente loi, ainsi que toute personne agissant sous sa direction ou son autorité, peuvent pénétrer dans une propriété privée et y circuler sans engager de responsabilité à cet égard et sans que personne ne puisse s’y opposer. C. 14 Environmental 98. Section 10 of the French version of the Act is replaced by the following: Disposition par le ministre 10. Il est disposé des objets confisqués ou abandonnés au titre de la présente loi conformément aux instructions du ministre. 99. Section 11 of the Act is replaced by the following: Liability for costs 11. If a thing is seized under this Act or under a warrant issued under the Criminal Code, the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. 100. The Act is amended by adding the following after section 11.1: Definition of “order” 11.2 For the purpose of sections 11.21 to 11.3, “order” means a compliance order issued under section 11.21. Compliance order 11.21 (1) Whenever, during the course of an inspection or a search, a game officer has reasonable grounds to believe that any provision of this Act or the regulations has been contravened by a person that is continuing the commission of the offence, or that any of those provisions are likely to be contravened, the game officer may issue a compliance order directing any person described in subsection (2) to take any of the measures referred to in subsection (3) that are reasonable in the circumstances and consistent with the protection and conservation of migratory birds and their nests and with public safety in order to cease or refrain from committing the alleged contravention. Persons subject to order (2) Subsection (1) applies to any person who (a) owns or has the charge, management or control of the substance to which the alleged contravention relates or the property on which the substance is located; Contrôle d’application d (b) causes or contributes to the alleged contravention; or (c) is likely to cause or contribute to the alleged contravention. Specific measures (3) The order may specify that the person to whom the order is directed take one or more of the following measures: (a) refrain from doing anything in contravention of this Act or the regulations, or do anything to comply with this Act or the regulations; (b) stop or shut down any activity, work, undertaking or thing for a specified period; (c) cease the operation of any activity or any part of a work, undertaking or thing until the game officer is satisfied that the activity, work, undertaking or thing will be operated in accordance with this Act and the regulations; (d) move any conveyance to another location including, in the case of a vessel, moving the vessel into port or, in the case of an aircraft, landing the aircraft; (e) unload or reload the contents of any conveyance; and (f) take any other measure that the game officer considers necessary to facilitate compliance with the order or to protect or restore migratory birds or their nests, including, but not limited to, (i) maintaining records on any relevant matter, (ii) reporting periodically to the game officer, and (iii) submitting to the game officer any information, proposal or plan specified by the game officer that sets out any action to be taken by the person with respect to the subject matter of the order. Contents of order (4) Subject to section 11.22, an order must be made in writing and must set out (a) the name of the person or persons to whom the order is directed; C. 14 Environmental (b) the provision of this Act or the regulations that is alleged to have been or is likely to be contravened; (c) the relevant facts surrounding the alleged contravention; (d) the measures to be taken; (e) the time or the day when each measure is to begin or the period during which it is to be carried out; (f) subject to subsection (5), the duration of the order; (g) a statement that a request for a review may be made to the Chief Review Officer; and (h) the period within which a request for a review may be made. Duration of order (5) An order may not be in force for a period of more than 180 days. Failing to file report (6) For the purposes of subsection (1), a person who commits an offence by failing to file a report required by this Act or the regulations is deemed to be continuing the commission of the offence each day that the report is not filed. Statutory Instruments Act (7) An order is not a statutory instrument for the purposes of the Statutory Instruments Act. Exigent circumstances 11.22 (1) In the case of exigent circumstances, an order may be given orally on the condition that it is followed, within seven days, by a written order issued in accordance with section 11.21. Definition of “exigent circumstances” (2) For greater certainty, “exigent circumstances” includes circumstances in which the delay necessary to issue a written order that meets the requirements of subsection 11.21(4) would result in danger to human life or the environment, including migratory birds. Notice of intent 11.23 (1) Except in exigent circumstances, a game officer shall, whenever practicable, before issuing an order, (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to issue it; and Contrôle d’application d (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (2) The notice of intent to issue the order must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the order is to be issued; and (c) a statement that the party notified may make oral representations to the game officer within the period stated in the notice. Compliance with order 11.24 (1) A person to whom an order is directed shall, immediately on receipt of the order or a copy of it, or on being directed by a game officer in an order given orally under subsection 11.22(1), comply with the order. No bar to proceedings (2) The issuance of or compliance with an order in respect of a person’s alleged contravention of this Act or the regulations is not a bar to any proceedings against the person under this or any other Act in relation to the alleged contravention. Intervention by game officer 11.25 (1) If a person to whom an order is directed fails to take any measures specified in the order, a game officer may take the measures or cause them to be taken. Access to property (2) A game officer or other person authorized or required by a game officer to take measures under subsection (1) may enter and have access to any place or property and may do any reasonable thing that may be necessary in the circumstances. Personal liability (3) Any person, other than a person described in subsection 11.21(2), who provides assistance or advice in taking the measures specified in an order or who takes any measures authorized or required by a game officer under subsection (1) is not personally liable either civilly or criminally in respect of any act or omission in the course of providing assistance or advice or taking any measures under that subsection unless it is established that the person acted in bad faith. C. 14 Recovery of reasonable costs and expenses by Her Majesty 11.26 (1) Her Majesty in right of Canada may recover the costs and expenses of and incidental to any measures taken under subsection 11.25(1) from Environmental (a) any person referred to in paragraph 11.21(2)(a); or (b) any person referred to in paragraph 11.21(2)(b) to the extent of the person’s negligence in causing or contributing to the alleged contravention. Costs must have been reasonably incurred (2) The costs and expenses may only be recovered to the extent that they can be established to have been reasonably incurred in the circumstances. Liability (3) The persons referred to in subsection (1) are jointly and severally, or solidarily, liable for the costs and expenses referred to in that subsection. Limitation (4) A person referred to in paragraph 11.21(2)(b) may not be held liable under subsection (3) to an extent greater than the extent of their negligence in causing or contributing to the alleged contravention. Procedure (5) A claim under this section may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken in the name of Her Majesty in right of Canada in any court of competent jurisdiction. Recourse or indemnity (6) This section does not limit or restrict any right of recourse or indemnity that a person may have against any other person. Limitation period (7) If events giving rise to a claim under this section occur, no proceedings in respect of the claim may be instituted more than five years after the day on which the events occur or become evident to the Minister, whichever is later. Minister’s certificate (8) A document purporting to have been issued by the Minister certifying the day on which the events giving rise to a claim under this section came to the knowledge of the Minister shall be received in evidence and, in the absence of any evidence to the contrary, the document is to be considered as proof of that fact without proof of the signature or of the Contrôle d’application d official character of the person appearing to have signed the document and without further proof. Request for review 11.27 (1) Any person to whom an order is directed may, by notice in writing given to the Chief Review Officer within 30 days after the day on which the person receives a copy of the written order or after the oral order is given, make a request to the Chief Review Officer for a review of the order. Extension of period for request (2) The Chief Review Officer may extend the period within which a request for a review may be made if, in his or her opinion, it is in the public interest to do so. Variation or cancellation of order 11.28 (1) At any time before a notice requesting a review of an order is received by the Chief Review Officer, the game officer may, after giving reasonable notice, (a) amend or suspend a term or condition of the order, or add a term or condition to, or delete a term or condition from, the order; (b) cancel the order; (c) correct a clerical error in the order; or (d) extend the duration of the order for a period of not more than 180 days less the number of days that have passed since the day on which the order was received by the person who is subject to it. Notice of intent (2) Except in exigent circumstances, a game officer shall, whenever practicable, before exercising a power under paragraph (1)(a) or (d), (a) provide every person who will be subject to the order with an oral or written notice of the officer’s intention to exercise the power; and (b) allow a reasonable opportunity in the circumstances for the person to make oral representations. Contents of notice of intent (3) The notice of intent to exercise a power under paragraph (1)(a) must include (a) a statement of the purpose of the notice; (b) a reference to the statutory authority under which the power is to be exercised; and C. 14 Environmental (c) a statement that the party notified may make oral representations to the game officer within the period stated in the notice. Regulations 11.29 The Minister may make regulations (a) prescribing the form of reporting to game officers under subparagraph 11.21(3)(f)(ii) and specifying the information required to be contained in or to accompany the report; and (b) of either particular or general application, respecting representations made to game officers under paragraph 11.23(1)(b) or 11.28(2)(b). Review 11.3 Sections 257 to 271 of the Canadian Environmental Protection Act, 1999 apply, with any modifications that the circumstances require, to a review requested of any order. 101. Subsection 12(1) of the Act is amended by striking out “and” at the end of paragraph (j.1), by adding “and” at the end of paragraph (k) and by adding the following after paragraph (k): (l) designating provisions of the regulations for the purposes of paragraphs 13(1)(c) and 13.03(1)(b). 2005, c. 23, s. 9 102. Section 13 of the Act is replaced by the following: Offence — persons 13. (1) Every person commits an offence who (a) contravenes section 5, subsection 5.1(1) or (2), paragraph 5.2(a), (c) or (d), subsection 5.3(1), 8.1(6), or 11.24(1); (b) knowingly contravenes paragraph 5.2(b); (c) contravenes any provision of the regulations designated by regulations made under paragraph 12(1)(l); (d) contravenes an order made under subsection 8.1(1) or (2); or (e) contravenes an order made by a court under this Act. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, Contrôle d’application d (i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than three years, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than three years, or to both; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 13.02 to be a small revenue corporation is liable, (a) on conviction on indictment, C. 14 Environmental (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Offence — persons 13.01 (1) Every person commits an offence who (a) contravenes any provision of this Act or the regulations, other than a provision the contravention of which is an offence under subsection 13(1); (b) negligently contravenes paragraph 5.2(b); or (c) contravenes an order or direction made under this Act, other than an order the contravention of which is an offence under subsection 13(1). Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $100,000, and (ii) for a second or subsequent offence, to a fine of not more than $200,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $25,000, and (ii) for a second or subsequent offence, to a fine of not more than $50,000. 2009 Penalty — other persons Contrôle d’application d (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 13.02 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Determination of small revenue corporation status 13.02 For the purpose of sections 13 and 13.01, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. C. 14 Offence — vessels 13.03 (1) Every vessel commits an offence that contravenes Environmental (a) section 5.1; (b) any provision of the regulations designated by regulations made under paragraph 12(1)(l); or (c) an order or a direction made under this Act, including one made by a court. Penalty — vessels of 7 500 tonnes deadweight or over (2) Every vessel of 7 500 tonnes deadweight or over that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — other vessels (3) Every other vessel that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Contrôle d’application d Offences — vessels 13.04 (1) Every vessel commits an offence that contravenes any provision of this Act or the regulations, other than a provision the contravention of which is an offence under subsection 13.03(1). Penalty — vessels of 7 500 tonnes deadweight or over (2) Every vessel of 7 500 tonnes deadweight or over that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — other vessels (3) Every other vessel that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and (ii) for a second or subsequent offence, to a fine of not more than $100,000. Deeming — second and subsequent offence 13.05 (1) For the purposes of subsections 13(2) to (4), 13.01(2) to (4), 13.03(2) and (3) and 13.04(2) and (3), a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a C. 14 Environmental province, that relates to environmental or wildlife conservation or protection — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. Relief from minimum fine 13.06 The court may impose a fine that is less than the minimum amount provided for in section 13 or 13.03, as the case may be, if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in any of those sections. Additional fine 13.07 If a person or vessel is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person — or, if the offender is a vessel, the owner or operator of the vessel — acquired any property, benefit or advantage, the court shall order the offender to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 13.08 If a corporation that has shareholders is convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Fundamental purpose of sentencing 13.09 The fundamental purpose of sentencing for offences under this Act is to contribute, in light of the long-standing recognition of the social, cultural and environmental importance of migratory birds, to respect for the law protecting and conserving migratory birds and their nests through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; Contrôle d’application d (b) to denounce unlawful conduct that damages or creates a risk of damage to migratory birds or their nests; and (c) to reinforce the “polluter pays” principle and to restore migratory birds and their habitats. Sentencing principles 13.1 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to migratory birds or their nests; (b) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable population of migratory birds; (c) the damage caused by the offence is extensive, persistent or irreparable; (d) the offender committed the offence intentionally or recklessly; (e) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; C. 14 Environmental (f) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (g) the offender committed the offence despite having been warned by a game officer of the circumstances that subsequently became the subject of the offence; (h) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife conservation or protection; and (i) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) to (c), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. Proceedings against vessels 13.11 (1) The provisions of this Act and the Criminal Code relating to indictable or summary conviction offences that apply to persons apply also to vessels, with any modifications that the circumstances require. Direction binds vessel (2) For the purpose of prosecuting a vessel for contravening a direction or an order made under this Act, other than an order made under section 11.21, any direction or order made under Contrôle d’application d this Act that is given to the master or a crew member of the vessel binds the vessel as though it had been given to the vessel. Service (3) If a vessel is charged with having committed an offence under this Act, the summons may be served by leaving it with the owner, operator, master or any officer of the vessel or by posting the summons on some conspicuous part of the vessel. Appearance at trial (4) If a vessel is charged with having committed an offence under this Act, the vessel may appear by counsel or representative. Despite the Criminal Code, if the vessel does not so appear, a court may, on proof of service of the summons, proceed to hold the trial. Proof of offence — vessel (5) In a prosecution of a vessel for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by a person on board the vessel, whether or not the person is identified or prosecuted for the offence. Liability of directors, officers, etc., of corporation 13.12 If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Liability of masters, chief engineers, owners, etc. 13.13 (1) If a vessel commits an offence under this Act and the master, chief engineer, owner or operator of the vessel directed, authorized, assented to, acquiesced in or participated in the commission of the offence, the master, chief engineer, owner, or operator, as the case may be, is a party to the offence and is liable on conviction to the penalty provided for by this Act for an individual for the offence of contravening section 5.1, whether or not the vessel has been prosecuted or convicted. C. 14 Liability of directors and officers of corporate owners of vessels (2) If a vessel commits an offence under this Act and the owner or operator of the vessel is a corporation, every director and officer of the corporation who directed or influenced the corporation’s policies or activities in respect of conduct that is the subject matter of the offence is a party to an offence and is liable on conviction to the penalty provided for by this Act for an individual for the offence of contravening section 5.1, whether or not the vessel has been prosecuted or convicted. Proof of offence — corporation 13.14 In a prosecution of a corporation for an offence under this Act, other than an offence of contravening paragraph 5.2(a), knowingly contravening paragraph 5.2(b) or contravening paragraph 5.2(c) or (d) or section 5.4 or 5.5, it is sufficient proof of the offence to establish that it was committed by an employee, agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or prosecuted for the offence. Proof of offence — master or chief engineer 13.15 In a prosecution of a master or chief engineer of a vessel for an offence under this Act, other than an offence of contravening paragraph 5.2(a), knowingly contravening paragraph 5.2(b) or contravening paragraph 5.2(c) or (d) or section 5.4 or 5.5, it is sufficient proof of the offence to establish that it was committed by a person on board the vessel, whether or not the person is identified or prosecuted for the offence. Proof of offence — section 5.4 13.16 In a prosecution of an offence under section 5.4, it is sufficient proof of the offence to establish that a substance was deposited by the vessel contrary to section 5.1. Due diligence 13.17 A person or vessel that establishes that they exercised due diligence to prevent the commission of an offence under this Act, other than an offence of contravening paragraph 5.2(a), (c) or (d), knowingly contravening paragraph 5.2(b) or contravening section 5.3, shall not be found guilty of the offence. Environmental Contrôle d’application d Continuing offence 13.18 A person or vessel that commits or continues an offence under this Act on more than one day is liable to be convicted for a separate offence for each day on which the offence is committed or continued. Offences involving more than one bird or nest 13.19 If an offence under this Act involves more than one migratory bird or nest, the fine to be imposed in respect of that offence may, despite sections 13, 13.01, 13.03 and 13.04, be the total of the fines that would have been imposed if each of the migratory birds or nests had been the subject of a separate information. Application of fines 13.2 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). 2005, c. 23, s. 12(4)(E) 103. (1) Paragraphs 16(1)(c) and (d) of the Act are replaced by the following: (b.2) directing the offender to carry out environmental effects monitoring in the manner established by the Minister, or directing the offender to pay, in the manner specified by the court, an amount for the purpose of environmental effects monitoring; (b.3) directing the offender to implement an environmental management system that meets a recognized Canadian or international standard specified by the court; (b.4) directing the offender to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate C. 14 Environmental for the purpose of promoting the proper management, conservation or protection of migratory birds or their habitat; (b.5) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work in or for a community near the place where the offence was committed; (c) directing the offender to publish, in the manner directed by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (c.1) directing the offender to notify, at the offender’s own cost and in the manner directed by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (d) directing the offender to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (1.1) Paragraph 16(1)(d.2) of the Act is replaced by the following: (d.2) directing the offender to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; 2005, c. 23, s. 12(6)(E) (2) Paragraphs 16(1)(g) and (h) of the Act are replaced by the following: (g) directing the offender to post a bond, provide surety or pay into court an amount of money that the court considers appropriate to ensure compliance with any prohibition, direction or requirement under this section; Contrôle d’application d (h) requiring the offender to comply with any other conditions that the court considers appropriate in the circumstances for securing the offender’s good conduct and for deterring the offender and any other person from committing offences under this Act; (i) requiring the offender to surrender to the Minister any permit issued under this Act to the offender; and (j) prohibiting the offender from applying for any new permit under this Act during any period that the court considers appropriate. 2005, c. 23, s. 12(7) (3) Subsections 16(2) and (3) of the Act are replaced by the following: Coming into force and duration of order (1.1) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. Publication (1.2) If an offender fails to comply with an order made under paragraph (1)(c), the Minister may, in the manner that the court directed the offender to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the offender. Debt due to Her Majesty (1.3) If the court makes an order under paragraph (1)(b.4) or (d) directing an offender to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (1.2), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (1.4) If the court makes an order under paragraph (1)(d) directing an offender to pay an amount to a person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, the person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in C. 14 Environmental the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permits (1.5) If the court makes an order under paragraph (1)(i), any permit to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. Compensation for loss of property (2) The court may also, at the time sentence is imposed and on the application of a person who suffered loss of or damage to property as a result of the commission of the offence — other than an owner or operator of a vessel that committed the offence — order the offender to pay that person compensation for the loss. Enforcement (3) If the amount that is ordered to be paid under paragraph (1)(d) or subsection (2) is not paid immediately, the person to whom the amount was ordered to be paid may, by filing the order, enter the amount as a judgment in the superior court of the province in which the trial was held, and the judgment is enforceable against the offender as if it were a judgment rendered against them in that court in civil proceedings. 104. Subsection 17.1(3) of the Act is replaced by the following: Compensation for cost of remedial or preventive action (3) A court shall not, under paragraph 16(1)(d), order an offender to compensate a person for the cost of any remedial or preventive action referred to in that paragraph if the person is entitled to make a claim for compensation for that cost under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. Compensation for loss or damage — property (4) A court shall not, under subsection 16(2), order an offender to pay to a person compensation for loss of or damage to property if the person is entitled to make a claim for compensation for that loss or damage under the Marine Liability Act or the Arctic Waters Pollution Prevention Act. Contrôle d’application d 105. Section 18 of the Act is replaced by the following: Limitation period 18. No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. 106. The Act is amended by adding the following after section 18.2: Publication of information about contraventions 18.21 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Minister may refuse or suspend permit 18.22 The Minister may refuse to issue a permit under this Act, or may cancel such a permit, if the applicant or the holder has been convicted of an offence under this Act. Contraventions Act 18.23 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Review 18.24 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 13 to 18.23. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 2005, c. 23, s. 15 107. Section 18.5 of the Act is repealed. 154 1997, c. 37 C. 14 Environmental SAGUENAY-ST. LAWRENCE MARINE PARK ACT 108. The definition “enforcement officer” in section 2 of the Saguenay-St. Lawrence Marine Park Act is replaced by the following: “enforcement officer” « agent de l’autorité » “enforcement officer” means a person designated under section 13 or belonging to a class of persons so designated. 109. Sections 13 and 14 of the Act are replaced by the following: Designation of enforcement officers Contraventions Act 13. The Minister may designate persons or classes of persons employed in the federal public administration or by a provincial, municipal or local authority or by an aboriginal government, whose duties include law enforcement, to be enforcement officers for the purpose of the enforcement of specified provisions of this Act or the regulations, and for that purpose enforcement officers have the powers and are entitled to the protection provided by law to peace officers within the meaning of the Criminal Code. 13.1 (1) The Minister may designate persons or classes of persons employed in the federal public administration or by a provincial, municipal or local authority or by an aboriginal government for the purpose of the enforcement of this Act or the regulations with respect to offences that have been designated as contraventions under the Contraventions Act. Limitations regarding designations (2) The Minister may specify that a designation is in respect of all or specified offences under this Act that have been designated as contraventions under the Contraventions Act. Certificate of designation and oath 13.2 (1) Every park warden, enforcement officer and person designated under section 13.1 shall be provided with a certificate of Contrôle d’application d designation in a form approved by the Minister and shall take and subscribe an oath prescribed by the Minister. Limitations must be specified (2) The certificate must specify the limitations, if any, to which the designation is subject. Right of passage 14. In the discharge of their duties, park wardens and enforcement officers and any persons accompanying them may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. Immunity 14.1 Park wardens and enforcement officers are not personally liable for anything they do or omit to do in good faith under this Act. 110. Section 17 of the Act is amended by adding the following after paragraph (m): (m.1) designating provisions of the regulations for the purpose of subsection 20(1); 111. Section 18 of the Act is replaced by the following: Arrest without warrant 18. A park warden or enforcement officer may, in accordance with the Criminal Code, arrest without warrant any person (a) whom the warden or officer finds committing an offence under this Act; or (b) who the warden or officer believes, on reasonable grounds, has committed or is about to commit an offence under this Act. 112. (1) The portion of subsection 19(1) of the Act before paragraph (a) is replaced by the following: Search and seizure 19. (1) A park warden or enforcement officer may (2) The portion of subsection 19(2) of the Act after paragraph (b) is replaced by the following: the justice of the peace may issue a warrant authorizing the park warden or enforcement officer named in the warrant to enter and search C. 14 Environmental the place or to open and examine the package or receptacle, subject to any conditions specified in the warrant. (3) Subsection 19(3) of the Act is replaced by the following: When warrant not necessary (3) A park warden or enforcement officer may exercise any powers under subsection (1) without a warrant if the conditions for obtaining a warrant exist but by reason of exigent circumstances it would not be practical to obtain one. 113. The Act is amended by adding the following after section 19: Custody of things seized 19.1 (1) Subject to subsections (2) and (3) and sections 21.5 and 21.6, if a park warden or enforcement officer seizes a thing under this Act or under a warrant issued pursuant to the Criminal Code, (a) sections 489.1 and 490 of the Criminal Code apply; and (b) the warden or officer, or any person that the warden or officer may designate, shall retain custody of the thing, subject to any order made under section 490 of the Criminal Code. Forfeiture if ownership not ascertainable (2) If the ownership of or the lawful entitlement to a seized thing cannot be ascertained within 30 days after the day on which it was seized, the thing or any proceeds of its disposition are forfeited to Her Majesty in right of Canada if the thing was seized by a park warden or an enforcement officer employed in the federal public administration, or to Her Majesty in right of a province if the thing was seized by an enforcement officer employed by a provincial, municipal or local authority or by an aboriginal government. Perishable things (3) If a seized thing is perishable, the park warden or enforcement officer may dispose of it or destroy it, and any proceeds of its disposition must be paid to the lawful owner or person lawfully entitled to possession of the thing, Contrôle d’application d unless proceedings under this Act are commenced within 90 days after the day on which it was seized, in which case the proceeds must be retained by the warden or officer pending the outcome of those proceedings. Liability for costs 19.2 If a thing is seized under this Act, the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. 114. Sections 20 to 22 of the Act are replaced by the following: Offence 20. (1) Every person who contravenes any provision of this Act or any provision of the regulations designated by regulations made under paragraph 17(m.1) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, and (B) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000, or to imprisonment for a term of not more than five years, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (B) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000, and C. 14 Environmental (iii) in the case of a corporation that the court has determined under section 20.4 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (B) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (B) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000, and (iii) in the case of a corporation that the court has determined under section 20.4 to be a small revenue corporation, (A) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (B) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. 2009 Contravention of other provisions of regulations Contrôle d’application d (2) Every person who contravenes any provision of the regulations other than a provision designated by regulations made under paragraph 17(m.1) is guilty of an offence and liable (a) on conviction on indictment, (i) in the case of an individual, (A) for a first offence, to a fine of not more than $100,000, and (B) for a second or subsequent offence, to a fine of not more than $200,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not more than $500,000, and (B) for a second or subsequent offence, to a fine of not more than $1,000,000, and (iii) in the case of a corporation that the court has determined under section 20.4 to be a small revenue corporation, (A) for a first offence, to a fine of not more than $250,000, and (B) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) in the case of an individual, (A) for a first offence, to a fine of not more than $25,000, and (B) for a second or subsequent offence, to a fine of not more than $50,000, (ii) in the case of a person, other than an individual or a corporation referred to in subparagraph (iii), (A) for a first offence, to a fine of not more than $250,000, and (B) for a second or subsequent offence, to a fine of not more than $500,000, and (iii) in the case of a corporation that the court has determined under section 20.4 to be a small revenue corporation, C. 14 Environmental (A) for a first offence, to a fine of not more than $50,000, and (B) for a second or subsequent offence, to a fine of not more than $100,000. Continuing offences 20.1 If a contravention of a provision of this Act or of the regulations is committed or continued on more than one day, it constitutes a separate offence for each day on which it is committed or continued. Offences involving more than one animal, plant or object 20.2 If an offence under this Act involves more than one animal, plant or object, the fine to be imposed in respect of that offence may, despite section 20, be the total of the fines that would have been imposed if each of the animals, plants or objects had been the subject of a separate information. Deeming — second and subsequent offence 20.3 (1) For the purposes of section 20, a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife protection or conservation, or the protection of cultural, historical or archaeological resources — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province. Determination of small revenue corporation status 20.4 For the purpose of section 20, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 Contrôle d’application d months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Relief from minimum fine 20.5 The court may impose a fine that is less than the minimum amount provided for in subsection 20(1) if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in that subsection. Additional fine 20.6 If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person acquired any property, benefit or advantage, the court shall order the person to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 20.7 If a corporation that has shareholders has been convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Liability of directors, officers, etc., of corporation 20.8 (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Duties of directors and officers (2) Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with (a) this Act and the regulations; (b) orders made by a court or the superintendent under this Act; and C. 14 Environmental (c) directions of the superintendent, a park warden or an enforcement officer made under this Act. Fundamental purpose of sentencing 21. The fundamental purpose of sentencing for offences under this Act is to contribute to respect for the law protecting the park through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce unlawful conduct that damages or creates a risk of damage to the park; and (c) to restore park resources. Sentencing principles 21.1 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. Aggravating factors (2) The aggravating factors are the following: (a) the offence caused damage or risk of damage to any park resources; (b) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable park resources; (c) the damage caused by the offence is extensive, persistent or irreparable; (d) the offender committed the offence intentionally or recklessly; Contrôle d’application d (e) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so; (f) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs; (g) the offender committed the offence despite having been warned by the superintendent, a park warden or an enforcement officer of the circumstances that subsequently became the subject of the offence; (h) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife protection or conservation or the protection of cultural, historical or archaeological resources; and (i) after the commission of the offence, the offender (i) attempted to conceal its commission, (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or (iii) failed to take prompt action to reduce the risk of committing similar offences in the future. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) to (c), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. Application of fines 21.2 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited C. 14 Environmental to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the park or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). Orders of court 21.3 (1) If a person is convicted of an offence under this Act, in addition to any punishment imposed, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, make an order containing one or more of the following prohibitions, directions or requirements: (a) prohibiting the person from doing any act or engaging in any activity that may, in the opinion of the court, result in the continuation or repetition of the offence; (b) directing the person to take any action that the court considers appropriate to remedy or avoid any damage to any park resources that resulted or may result from the commission of the offence; (c) directing the person to post a bond, provide surety or pay into court an amount of money that the court considers appropriate for the purpose of ensuring compliance with any prohibition, direction or requirement mentioned in this section; (d) directing the person to prepare and implement a pollution prevention plan or an environmental emergency plan; (e) directing the person to carry out, in the manner established by the Minister, monitoring of the environmental effects of any activity or undertaking on park resources or directing the person to pay, in the manner specified by the court, an amount for that purpose; Contrôle d’application d (f) directing the person to implement an environmental management system approved by the Minister; (g) directing the person to have an environmental audit conducted by a person of a class and at the times specified by the Minister and directing the person to remedy any deficiencies revealed during the audit; (h) directing the person to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the protection, conservation or restoration of the park; (i) directing the person to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; (j) directing the person to notify, at the person’s own cost and in the manner specified by the court, any person aggrieved or affected by the person’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (k) directing the person to submit to the Minister, when requested to do so by the Minister at any time within three years after the date of conviction, any information with respect to the person’s activities that the court considers appropriate in the circumstances; (l) directing the person to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (m) directing the person to perform community service, subject to any reasonable conditions that may be imposed in the order; C. 14 Environmental (n) directing the person to pay, in a manner specified by the court, an amount to enable research to be conducted into the protection, conservation or restoration of the park; (o) requiring the person to surrender to the Minister any permit or other authorizing instrument issued under this Act to the person; (p) prohibiting the person from applying for any new permit or other authorizing instrument under this Act during any period that the court considers appropriate; (q) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work related to the park; (r) directing the person to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; and (s) requiring the person to comply with any other conditions that the court considers appropriate. Suspended sentence (2) If a person is convicted of an offence under this Act and the court suspends the passing of sentence under paragraph 731(1)(a) of the Criminal Code, the court may, in addition to any probation order made under that paragraph, make an order referred to in subsection (1). Imposition of sentence (3) If a person does not comply with an order made under subsection (2) or is convicted of another offence, the court may, within three years after the order was made, on the application of the prosecution, impose any sentence that could have been imposed if the passing of sentence had not been suspended. Publication (4) If a person fails to comply with an order made under paragraph (1)(i), the Minister may, in the manner that the court directed the person to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the person. Contrôle d’application d Debt due to Her Majesty (5) If the court makes an order under paragraph (1)(h) or (l) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (4), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (6) If the court makes an order under paragraph (1)(l) directing a person to pay an amount to another person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, that other person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the person who was directed to pay the amount in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Cancellation or suspension of permit, etc. (7) If the court makes an order under paragraph (1)(o), any permit or other authorizing instrument to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. Coming into force and duration of order (8) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. Forfeiture 21.4 (1) If a person is convicted of an offence under this Act, the court may, in addition to any punishment imposed, order that any seized thing by means of or in relation to which the offence was committed, or any proceeds of its disposition, be forfeited to Her Majesty in right of Canada. Return if no forfeiture ordered (2) If the court does not order the forfeiture, the seized thing or the proceeds of its disposition shall be returned or paid to its lawful owner or the person lawfully entitled to it. Retention or sale (3) If a fine is imposed on a person who is convicted of an offence, any seized thing, or any proceeds of its disposition, may be retained until C. 14 Environmental the fine is paid or the thing may be sold in satisfaction of the fine and the proceeds applied, in whole or in part, in payment of the fine. Disposition by Minister 21.5 Any seized thing that has been forfeited under this Act to Her Majesty in right of Canada or abandoned by its owner may be dealt with and disposed of as the Minister may direct. Compensation for loss of property 21.6 (1) If a person has been convicted of an offence under this Act, the court may, at the time sentence is imposed and on the application of the person aggrieved, order the offender to pay to the aggrieved person an amount by way of satisfaction or compensation for loss of or damage to property suffered by that person as a result of the commission of the offence. Enforcement (2) If the amount ordered to be paid under subsection (1) is not paid without delay, the aggrieved person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. Compensation for cost of remedial or preventive action 21.7 (1) A court shall not, under paragraph 21.3(1)(l), order a person to compensate another person for the cost of any remedial or preventive action referred to in that paragraph if the other person is entitled to make a claim for compensation for that cost under the Marine Liability Act. Compensation for loss or damage — property (2) A court shall not, under subsection 21.6(1), order a person to pay to another person an amount by way of satisfaction or compensation for loss of or damage to property if the other person is entitled to make a claim for compensation for that loss or damage under the Marine Liability Act. Limitation period 22. No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after Contrôle d’application d the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. Contraventions Act 22.1 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. Publication of information about contraventions 22.2 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. Review 22.3 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 20 to 22.2. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. 115. (1) The portion of subsection 23(1) of the Act before paragraph (a) is replaced by the following: Ticketing procedure 23. (1) In addition to the procedures set out in the Criminal Code for commencing a proceeding, proceedings in respect of any prescribed offence may be commenced by a park warden or enforcement officer by (2) Paragraph 23(2)(b) of the Act is replaced by the following: (b) include a statement, signed by the park warden or enforcement officer who completes the ticket, that the warden or officer has reasonable grounds to believe that the accused committed the offence; (3) Subsection 23(3) of the Act is replaced by the following: C. 14 Notice of forfeiture (3) If a thing is seized under this Act and proceedings relating to it are commenced by way of the ticketing procedure, the park warden or enforcement officer who completed the ticket shall give written notice to the accused that if the accused pays the prescribed fine within the period set out in the ticket, the thing, or any proceeds realized from its disposition, shall immediately be forfeited to Her Majesty. 2003, c. 22, s. 219(E) (4) Paragraph 23(4)(b) of the Act is replaced by the following: Environmental (b) anything seized from the accused under this Act relating to the offence described in the ticket, or any proceeds realized from its disposition, is forfeited to Her Majesty in right of Canada if the ticket was completed by a park warden or an enforcement officer who is a member of the federal public administration, or is forfeited to Her Majesty in right of Quebec if the ticket was completed by any other enforcement officer. 1992, c. 52 WILD ANIMAL AND PLANT PROTECTION AND REGULATION OF INTERNATIONAL AND INTERPROVINCIAL TRADE ACT 116. (1) Subsection 12(1) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act is replaced by the following: Officers and analysts 12. (1) The Minister may designate such persons or classes of persons as the Minister considers necessary to act as officers or analysts for the purposes of this Act or any provision of this Act, and if the person to be designated is an employee, or the class of persons to be designated consists of employees, of the government of a province, the Minister shall only designate that person or class with the agreement of that government. (2) Subsections 12(3) and (4) of the Act are replaced by the following: Contrôle d’application d Certificate to be shown (3) On entering any place under this Act, an officer or analyst shall, on request, show the person in charge or the occupant of the place a certificate, in the form approved by the Minister, certifying that the officer or analyst, as the case may be, has been designated under this section. Obstruction (4) No person shall knowingly make any false or misleading statement either orally or in writing to, or obstruct or hinder, an officer or analyst who is carrying out duties or functions under this Act or the regulations. Immunity (5) Officers and analysts are not personally liable for anything they do or omit to do in good faith under this Act. 116.1 The Act is amended by adding the following after section 12: Documents admissible in evidence 12.1 (1) A document made, given or issued under this Act and appearing to be signed by an analyst is admissible in evidence and, in the absence of evidence to the contrary, is proof of the statements contained in the document without proof of the signature or official character of the person appearing to have signed the document. Attendance of analyst (2) The party against whom the document is produced may, with leave of the court, require the attendance of the analyst who signed it. Notice (3) No document referred to in subsection (1) may be received in evidence unless the party intending to produce it has given to the party against whom it is intended to be produced reasonable notice of that intention together with a copy of the document. 117. Subsection 14(2) of the Act is replaced by the following: Analysts (1.1) An analyst may, for the purposes of this Act, accompany an officer who is carrying out an inspection of a place under this section, and the analyst may, when accompanying the officer, enter the place and exercise any of the powers described in paragraphs (1)(a) and (b). C. 14 Conveyance (2) For the purposes of carrying out the inspection, an officer may stop a conveyance or direct that it be moved by the route and in the manner that the officer may specify, to a place specified by the officer where the inspection can be carried out. Environmental 118. The Act is amended by adding the following after section 14: Right of passage 14.1 While carrying out duties or functions under this Act, officers and analysts, and any persons accompanying them, may enter on and pass through or over private property without being liable for doing so and without any person having the right to object to that use of the property. Assistance 14.2 The owner or person in charge of a place being inspected under section 14, and every person found in the place, shall (a) give the officer or analyst all reasonable assistance to enable the officer or analyst to carry out their duties or functions under this Act; and (b) provide the officer or analyst with any information with respect to the administration of this Act that he or she may reasonably require. 119. Subsection 20(2) of the Act is repealed. 120. The Act is amended by adding the following after section 20: Liability for costs 20.1 If a thing is seized under this Act or under a warrant issued under the Criminal Code, the importer or exporter, as the case may be, and the person who owned the thing at the time it was seized, the person who had charge or control of the thing immediately before it was seized and the person who possessed it immediately before it was seized are jointly and severally, or solidarily, liable for all the costs of seizure, detention, maintenance and forfeiture, including any destruction or disposal costs, incurred by Her Majesty in right of Canada in relation to the thing in excess of any proceeds of its disposition, if any. Contrôle d’application d 121. Subsection 21(1) of the Act is amended by adding the following after paragraph (g): (g.1) designating provisions of the regulations for the purposes of paragraph 22(1)(b); 1995, c. 22, s. 18, Sch. IV, item 27 122. Section 22 of the Act is replaced by the following: Offence — persons 22. (1) Every person commits an offence who contravenes (a) any provision of this Act; (b) any provision of the regulations designated by regulations made under paragraph 21(1)(g.1); or (c) any order made under this Act by a court. Penalty — individuals (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than five years, or to both; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and (ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, C. 14 Environmental (i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 22.02 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and (ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000. Relief from minimum fine (5) The court may impose a fine that is less than the minimum amount provided for in this section if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court shall provide reasons if it imposes a fine that is less than the minimum amount provided for in this section. Offence — persons 22.01 (1) Every person commits an offence who contravenes any provision of the regulations, other than a provision the contravention of which is an offence under subsection 22(1). 2009 Penalty — individuals Contrôle d’application d (2) Every individual who commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $100,000, and (ii) for a second or subsequent offence, to a fine of not more than $200,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $25,000, and (ii) for a second or subsequent offence, to a fine of not more than $50,000. Penalty — other persons (3) Every person, other than an individual or a corporation referred to in subsection (4), that commits an offence under subsection (1) is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $500,000, and (ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000. Penalty — small revenue corporations (4) Every corporation that commits an offence under subsection (1) and that the court determines under section 22.02 to be a small revenue corporation is liable, (a) on conviction on indictment, (i) for a first offence, to a fine of not more than $250,000, and (ii) for a second or subsequent offence, to a fine of not more than $500,000; or (b) on summary conviction, (i) for a first offence, to a fine of not more than $50,000, and C. 14 Environmental (ii) for a second or subsequent offence, to a fine of not more than $100,000. Determination of small revenue corporation status 22.02 For the purpose of sections 22 and 22.01, a court may determine a corporation to be a small revenue corporation if the court is satisfied that the corporation’s gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000. Deeming — second and subsequent offence 22.03 (1) For the purposes of subsections 22(2) to (4) and 22.01(2) to (4), a conviction for a particular offence under this Act is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to environmental or wildlife conservation or protection — of a substantially similar offence. Application (2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province, other than a procedure commenced by means of a ticket. Additional fine 22.04 If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, the person acquired any property, benefit or advantage, the court shall order the person to pay an additional fine in an amount equal to the court’s estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Act. Notice to shareholders 22.05 If a corporation that has shareholders has been convicted of an offence under this Act, the court shall make an order directing the corporation to notify its shareholders, in the Contrôle d’application d manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed. Contraventions Act Fundamental purpose of sentencing 22.06 If an offence under this Act is designated as a contravention under the Contraventions Act, subsection 8(5) of that Act does not apply in respect of the fine that may be established for that contravention. 22.07 The fundamental purpose of sentencing for offences under this Act is to contribute, in light of the numerous serious threats to plants and animals and their importance to the environment, to respect for the law regulating international and interprovincial trade in animals and plants through the imposition of just sanctions that have as their objectives (a) to deter the offender and any other person from committing offences under this Act; (b) to denounce the unlawful trade in certain animals and plants and to make it unprofitable; and (c) to recover, if possible, certain species of animals and plants unlawfully traded. Sentencing principles 22.08 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is convicted of an offence under this Act: (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence. C. 14 Aggravating factors (2) The aggravating factors are the following: Environmental (a) the offence caused damage or risk of damage, directly or indirectly, to animals or plants; (b) the offence caused damage or risk of damage to a unique, rare, particularly important or vulnerable species of animal or plant or population of animals or plants; (c) the offender committed the offence intentionally or recklessly; (d) the offender profited, or intended to profit, by committing the offence; (e) the offender has a history of noncompliance with federal or provincial legislation that relates to environmental or wildlife conservation or protection; and (f) the offence involved a high degree of planning. Absence of aggravating factor (3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor. Meaning of “damage” (4) For the purposes of paragraphs (2)(a) and (b), “damage” includes loss of use value and non-use value. Reasons (5) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision. Offences involving more than one animal or plant, etc. 22.09 If an offence under this Act involves more than one animal or plant, or part or derivative of an animal or plant, the fine to be imposed in respect of that offence may, despite sections 22 and 22.01, be the total of the fines that would have been imposed if each of the animals, plants, parts or derivatives had been the subject of a separate information. Contrôle d’application d Continuing offence 22.1 If an offence under this Act is committed or continued on more than one day, it is deemed to be a separate offence for each day on which the offence is committed or continued. Application of fines 22.11 (1) All fines received by the Receiver General in respect of the commission of an offence under this Act, other than fines collected under the Contraventions Act, are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Recommendations of court (2) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (1). Orders of court 22.12 (1) If a person is convicted of an offence under this Act, in addition to any punishment imposed, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, make an order containing one or more of the following prohibitions, directions or requirements: (a) prohibiting the person from doing any act or engaging in any activity that could, in the opinion of the court, result in the continuation or repetition of the offence; (b) directing the person to take any action that the court considers appropriate to remedy or avoid any harm to any animal or plant to which any provision of this Act applies that resulted or may result from the commission of the offence; (c) directing the person to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection; C. 14 Environmental (d) directing the person to notify, at the person’s own cost and in the manner specified by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection; (e) directing the person to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action; (f) directing the person to perform community service in accordance with any reasonable conditions that may be specified in the order; (f.1) directing the person to pay, in a manner specified by the court, an amount to enable research to be conducted into the protection or conservation of animals or plants; (f.2) directing the person to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to the environment; (f.3) directing the person to pay, in the manner prescribed by the court, an amount to environmental or other groups to assist in their work in relation to the protection of the species of animal or plant that was the subject of the offence; (g) directing the person to post a bond, provide surety or pay into court an amount of money that the court considers appropriate for the purpose of ensuring compliance with any prohibition, direction or requirement mentioned in this subsection; (h) directing the person to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the conservation or protection of animals or plants; Contrôle d’application d (i) directing the person to submit to the Minister, when requested to do so by the Minister at any time within three years after the date of the conviction, any information respecting the activities of the person that the court considers appropriate in the circumstances; (j) requiring the person to comply with any other conditions that the court considers appropriate in the circumstances for securing the person’s good conduct and for deterring the person and any other person from committing offences under this Act; (k) requiring the person to surrender to the Minister any permit issued under this Act to the person; and (l) prohibiting the person from applying for any new permit under this Act during any period that the court considers appropriate. Publication (2) If a person fails to comply with an order made under paragraph (1)(c), the Minister may, in the manner that the court directed the person to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the offender. Debt due to Her Majesty (3) If the court makes an order under paragraph (1)(e) or (h) directing a person to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (2), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Enforcement (4) If the court makes an order under paragraph (1)(e) directing a person to pay an amount to another person, other than to Her Majesty in right of Canada, and the amount is not paid without delay, that other person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the person who was directed to pay the amount in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings. C. 14 Cancellation or suspension of permits (5) If the court makes an order under paragraph (1)(k), any permit to which the order relates is cancelled unless the court makes an order suspending it for any period that the court considers appropriate. Coming into force and duration of order (6) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and shall not continue in force for more than three years after that day unless the court provides otherwise in the order. Suspended sentence 22.13 If a person is convicted of an offence under this Act and the court suspends the passing of sentence pursuant to paragraph 731(1)(a) of the Criminal Code, the court may, in addition to any probation order made under that paragraph, make an order directing the person to comply with any prohibition, direction or requirement mentioned in section 22.12. Imposition of sentence 22.14 If a person whose sentence has been suspended fails to comply with an order made under 22.12 or is convicted, within three years after the day on which the order was made, of another offence under this Act, the court may, on the application of the prosecution, impose any sentence that could have been imposed if the passing of sentence had not been suspended. Limitation period 22.15 No proceedings by way of summary conviction in respect of an offence under this Act may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years. Minister may refuse or suspend permit 22.16 The Minister may refuse to issue a permit under this Act, or may cancel such a permit, if the applicant or the holder has been convicted of an offence under this Act. Environmental 123. Section 24 of the Act is replaced by the following: Liability of directors, officers, etc., of corporation 24. (1) If a corporation commits an offence under this Act, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or Contrôle d’application d participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the penalty provided for by this Act for an individual in respect of the offence committed by the corporation, whether or not the corporation has been prosecuted or convicted. Directors’ duties (2) Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with (a) this Act and the regulations; and (b) orders made under this Act. 124. The Act is amended by adding the following after section 27: Publication of information about contraventions 27.1 (1) For the purpose of encouraging compliance with this Act and the regulations, the Minister shall maintain, in a registry accessible to the public, information about all convictions of corporations for offences under this Act. Retention (2) Information in the registry is to be maintained for a minimum of five years. 125. The Act is amended by adding the following after section 28: Review 28.1 (1) The Minister shall, 10 years after the day on which this section comes into force and every 10 years after that, undertake a review of sections 22 to 22.16. Report to Parliament (2) The Minister shall, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament. ENACTMENT OF THE ENVIRONMENTAL VIOLATIONS ADMINISTRATIVE MONETARY PENALTIES ACT Enactment of Act 126. The Environmental Violations Administrative Monetary Penalties Act is enacted as follows: An Act to establish a system of administrative monetary penalties for the enforcement of the Antarctic Environmental Protection Act, the Canada National Marine C. 14 Environmental Conservation Areas Act, the Canada National Parks Act, the Canada Water Act, the Canada Wildlife Act, the Canadian Environmental Protection Act, 1999, the International River Improvements Act, the Migratory Birds Convention Act, 1994, the Saguenay-St. Lawrence Marine Park Act and the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act SHORT TITLE Short title 1. This Act may be cited as the Environmental Violations Administrative Monetary Penalties Act. INTERPRETATION Definitions 2. The following definitions apply in this Act. “Chief Review Officer” « réviseur-chef » “Chief Review Officer” means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999 and includes any review officer designated under subsection 244(3) of that Act to perform the functions of the Chief Review Officer. “Environmental Act” « loi environnementale » “Minister” « ministre » “Environmental Act” means the Antarctic Environmental Protection Act, the Canada National Marine Conservation Areas Act, the Canada National Parks Act, the Canada Water Act, the Canada Wildlife Act, the Canadian Environmental Protection Act, 1999, the International River Improvements Act, the Migratory Birds Convention Act, 1994, the Saguenay-St. Lawrence Marine Park Act or the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. “Minister” means (a) with respect to violations that relate to the Antarctic Environmental Protection Act, the Canada Water Act, the Canada Wildlife Act, the Canadian Environmental Protection Act, 1999, the International River Improvements Contrôle d’application d Act, the Migratory Birds Convention Act, 1994 or the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act, the Minister of the Environment; and (b) with respect to violations that relate to the Canada National Marine Conservation Areas Act, the Canada National Parks Act or the Saguenay-St. Lawrence Marine Park Act, the Minister responsible for the Parks Canada Agency. “penalty” « pénalité » “prescribed” Version anglaise seulement “review officer” « réviseur » “penalty” means an administrative monetary penalty imposed under this Act for a violation. “prescribed” means prescribed by regulation. “review officer” means a person appointed as a review officer under the Canadian Environmental Protection Act, 1999. PURPOSE OF ACT Purpose of Act 3. The purpose of this Act is to establish, as an alternative to the existing penal system and as a supplement to existing enforcement measures, a fair and efficient administrative monetary penalty system for the enforcement of the Environmental Acts. HER MAJESTY Binding on Her Majesty 4. This Act is binding on Her Majesty in right of Canada or a province. REGULATIONS Regulations 5. (1) The Governor in Council may make regulations (a) designating as a violation that may be proceeded with in accordance with this Act C. 14 Environmental (i) the contravention of any specified provision of an Environmental Act or of any of its regulations, (ii) the contravention of any order or direction, or of any order or direction of any specified class of orders or directions, made under any provision of an Environmental Act or of any of its regulations, (iii) the failure to comply with any obligation, or with any obligation of any specified class of obligations, arising from an Environmental Act or any of its regulations, or (iv) the failure to comply with any condition of a permit, licence or other authorization, or any condition of any specified class of conditions of permits, licences or other authorizations, issued under an Environmental Act or any of its regulations; (b) respecting the determination of, or the method of determining, the amount payable as the penalty for each violation, penalties which may be different for individuals and other persons, and for ships and vessels; (c) respecting the service of documents required or authorized under this Act, including the manner and proof of service and the circumstances under which documents are deemed to be served; (d) respecting who can request a review under this Act on behalf of a ship or vessel in relation to an alleged violation by the ship or vessel; (e) prescribing anything that by this Act is to be prescribed; and (f) generally, for carrying out the purposes and provisions of this Act. Restriction (2) Only contraventions and failures to comply that are offences under an Environmental Act may be designated under paragraph (1)(a). Restriction — Canadian Environmental Protection Act, 1999 (3) With respect to the Canadian Environmental Protection Act, 1999, only a contravention or a failure to comply arising out of any provision of Part 7 and 9 or out of any provision Contrôle d’application d of any regulation made under either of those Parts, may be designated under paragraph (1)(a). Restriction — amount of penalty (4) The amount that may be determined under any regulations made under paragraph (1)(b) as the penalty for a violation may not be more than $5,000, in the case of an individual, and $25,000, in the case of any other person or a ship or a vessel. MINISTER’S POWERS Powers regarding notices of violation 6. The Minister may (a) establish the form of notices of violation; (b) designate persons, or classes of persons, who are authorized to issue notices of violation; and (c) establish, in respect of each violation, a short-form description to be used in notices of violation. COMMISSION OF VIOLATIONS Commission 7. Every person, ship or vessel that contravenes or fails to comply with a provision, order, direction, obligation or condition designated by regulations made under paragraph 5(1)(a) commits a violation and is liable to an administrative monetary penalty of an amount to be determined in accordance with the regulations. Liability of directors, officers, etc., of corporations 8. (1) If a corporation commits a violation, any director, officer, agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to the violation and is liable to an administrative monetary penalty of an amount to be determined in accordance with the regulations, whether or not the corporation has been proceeded against in accordance with this Act. Liability of directors and officers of corporate owners of ships and vessels (2) If a ship or vessel commits a violation, every director or officer of a corporation that is an owner or an operator of the ship or vessel who directed or influenced the corporation’s policies or activities in respect of conduct that is the subject matter of the violation is a party to the violation and is liable to an administrative monetary penalty of an amount to be deter188 C. 14 Environmental mined in accordance with the regulations, whether or not the ship or vessel has been proceeded against in accordance with this Act. Liability of owners, operators, masters and chief engineers of ships and vessels (3) If a ship or vessel commits a violation and the owner, operator, master or chief engineer of the ship or vessel directed, authorized, assented to, acquiesced in or participated in the commission of the violation, the owner, operator, master or chief engineer, as the case may be, is a party to the violation and is liable to an administrative monetary penalty of an amount to be determined in accordance with the regulations, whether or not the ship or vessel has been proceeded against in accordance with this Act. Proof of violation — persons 9. (1) In any proceedings under this Act against a person in relation to a violation, it is sufficient proof of the violation to establish that it was committed by an employee or agent or mandatary of the person, whether or not the agent or mandatary has been proceeded against in accordance with this Act. Proof of violation — masters of ships (2) In any proceedings under this Act against the master of a ship or vessel for a violation, it is sufficient proof of the violation to establish that it was committed by a crew member or other person on board the ship or vessel, whether or not the crew member or other person has been proceeded against in accordance with this Act. Proof of offence — pilots (3) In any proceedings under this Act against the pilot in command of an aircraft for a violation, it is sufficient proof of the violation to establish that it was committed by a crew member or other person on board the aircraft, whether or not the crew member or other person has been proceeded against in accordance with this Act. Issuance and service of notice of violation 10. (1) If a person designated under paragraph 6(b) believes on reasonable grounds that a person, ship or vessel has committed a violation, the designated person may issue a notice of violation and shall cause it to be served on the person, ship or vessel according to the Regulations. Contents (2) The notice of violation must Contrôle d’application d (a) name the person, ship or vessel that is believed to have committed the violation; (b) set out the relevant facts surrounding the violation; (c) set out the penalty for the violation; (d) inform the person, ship or vessel of their right to request a review with respect to the alleged violation or penalty, and of the period within which that right must be exercised; (e) inform the person, ship or vessel of the manner of paying the penalty set out in the notice; and (f) inform the person, ship or vessel that, if they do not pay the penalty or exercise their rights referred to in paragraph (d), they will be considered to have committed the violation and that they are liable for the penalty set out in the notice. RULES ABOUT VIOLATIONS Certain defences not available 11. (1) A person, ship or vessel named in a notice of violation does not have a defence by reason that the person or, in the case of a ship or vessel, its owner, operator, master or chief engineer (a) exercised due diligence to prevent the violation; or (b) reasonably and honestly believed in the existence of facts that, if true, would exonerate the person, ship or vessel. Common law principles (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under an Environmental Act applies in respect of a violation to the extent that it is not inconsistent with this Act. Continuing violation 12. A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued. Violation or offence 13. (1) Proceeding with any act or omission as a violation under this Act precludes proceeding with it as an offence under an Environmental Act, and proceeding with it as an offence under an Environmental Act precludes proceeding with it as a violation under this Act. C. 14 Violations not offences (2) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation. Limitation period 14. No notice of violation in respect of a violation may be issued more than two years after the day on which the subject matter of the violation arises. Environmental REVIEWS Right to request review 15. A person, ship or vessel that is served with a notice of violation may, within 30 days after the day on which the notice is served, or within any longer period that the Chief Review Officer allows, make a request to the Chief Review Officer for a review of the penalty or the facts of the alleged violation, or both. Variation or cancellation of notice of violation 16. At any time before a request for a review in respect of a notice of violation is received by the Chief Review Officer, a person designated under paragraph 6(b) may cancel the notice of violation or correct an error in it. Review 17. On receipt of a request made under section 15, the Chief Review Officer shall conduct the review or cause the review to be conducted by a review officer or by a panel of three review officers assigned by the Chief Review Officer. The Chief Review Officer may be a member of that panel. Right to appear 18. The person, ship or vessel that requests the review and the Minister may appear in person or may be represented by counsel or by any other representative. Witnesses 19. (1) The review officer or panel conducting the review may summon any person to appear as a witness and may order the witness to (a) give evidence orally or in writing; and (b) produce any documents and things that the review officer or panel considers necessary for the purpose of the review. Enforcement of summonses and orders (2) Any summons issued or order made under subsection (1) may be made a summons or an order of the Federal Court or of the Contrôle d’application d superior court of a province and is enforceable in the same manner as a summons or an order of that court. Procedure (3) To make a summons issued or an order made under subsection (1) a summons or an order of the Federal Court or of the superior court of a province, the usual practice and procedure of the court in such matters may be followed, or a certified copy of the summons or order may be filed with the court’s registrar and the summons or order then becomes a summons or an order of that court. Fees for witnesses (4) A witness who is served with a summons is entitled to receive the fees and allowances to which persons who are summoned to appear as witnesses before the Federal Court are entitled. Decision 20. (1) After giving the person, ship or vessel that requested the review and the Minister reasonable notice orally or in writing of a hearing and allowing a reasonable opportunity in the circumstances for the person, ship or vessel and the Minister to make oral representations, the review officer or panel conducting the review shall determine whether the person, ship or vessel committed a violation. Burden (2) The Minister has the burden of establishing, on a balance of probabilities, that the person, ship or vessel committed the violation. Correction of penalty (3) If the review officer or panel determines that the penalty for the violation was not determined in accordance with the regulations, the review officer or panel shall correct the amount of the penalty. Service of copy and reasons 21. The review officer or panel shall render their determination in writing within 30 days after the day on which the review is completed and, without delay, provide the Minister and the person, ship or vessel to which the determination relates with a copy of the determination and reasons. Responsibility 22. If the review officer or panel determines that a person, ship or vessel has committed a violation, the person, ship or vessel is liable for the amount of the penalty as set out in the decision. C. 14 Determination is final 23. A determination made under section 21 is final and binding and, except for judicial review under the Federal Courts Act, is not subject to appeal or to review by any court. Rules 24. The Chief Review Officer may make rules Environmental (a) to govern the practice and procedure in respect of reviews under this Act; (b) generally, to set out the work of review officers in respect of reviews under this Act; and (c) to prevent trade secrets and information described in section 20 of the Access to Information Act from being disclosed or made public as a result of their being used as evidence in a review under this Act, including rules to provide for hearings or parts of hearings to be held in public or in private. RESPONSIBILITY Payment 25. If a person, ship or vessel pays the penalty set out in a notice of violation, the person, ship or vessel is considered to have committed the violation and proceedings in respect of it are ended. Failure to act 26. A person, ship or vessel that neither pays a penalty imposed under this Act nor requests a review in the prescribed time is considered to have committed the violation and is liable for the penalty. RECOVERY OF PENALTIES Debts to Her Majesty 27. (1) A penalty constitutes a debt due to Her Majesty in right of Canada and may be recovered in the Federal Court or any other court of competent jurisdiction. Limitation period (2) No proceedings to recover the debt may be instituted more than five years after the day on which the debt becomes payable. Application of fines (3) All penalties received by the Receiver General in respect of the commission of a violation are to be credited to the Environmental Damages Fund, an account in the accounts of Contrôle d’application d Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund. Certificate 28. (1) The Minister may issue a certificate certifying the unpaid amount of any debt referred to in subsection 27(1). Registration in Federal Court (2) Registration in the Federal Court or in any other court of competent jurisdiction of a certificate issued under subsection (1) has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs. GENERAL Admissibility of documents 29. In the absence of evidence to the contrary, a document that appears to be a notice issued under subsection 10(1) is presumed to be authentic and is proof of its contents in any proceeding in respect of a violation. COORDINATING AMENDMENT Contraventions Act 127. (1) If section 2.2 of the schedule to the Contraventions Act comes into force before section 115 of this Act, section 115 of this Act is repealed. (2) If section 2.2 of the schedule to the Contraventions Act comes into force on the same day as section 115 of this Act, then section 115 of this Act is deemed to have come into force before that section 2.2. COMING INTO FORCE Order in council 128. The provisions of this Act, other than section 127, come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 16 An Act to implement the Free Trade Agreement between Canada and the Republic of Peru, the Agreement on the Environment between Canada and the Republic of Peru and the Agreement on Labour Cooperation between Canada and the Republic of Peru ASSENTED TO 18th JUNE, 2009 BILL C-24 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement the Free Trade Agreement between Canada and the Republic of Peru, the Agreement on the Environment between Canada and the Republic of Peru and the Agreement on Labour Cooperation between Canada and the Republic of Peru”. SUMMARY This enactment implements the Free Trade Agreement and the related agreements on the environment and labour cooperation entered into between Canada and the Republic of Peru and signed at Lima on May 29, 2008. The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Free Trade Agreement or the related agreements themselves, without the consent of the Attorney General of Canada. Part 1 of the enactment approves the Free Trade Agreement and the related agreements and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Free Trade Agreement and the power of the Governor in Council to make orders for carrying out the provisions of the enactment. Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement and the related agreement on labour cooperation. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO IMPLEMENT THE FREE TRADE AGREEMENT BETWEEN CANADA AND THE REPUBLIC OF PERU, THE AGREEMENT ON THE ENVIRONMENT BETWEEN CANADA AND THE REPUBLIC OF PERU AND THE AGREEMENT ON LABOUR COOPERATION BETWEEN CANADA AND THE REPUBLIC OF PERU SHORT TITLE 1. Canada–Peru Free Trade Agreement Implementation Act INTERPRETATION 2. Definitions 3. Interpretation consistent with agreements 4. Non-application of Act or Agreement to water 5. Construction HER MAJESTY 6. Binding on Her Majesty 7. Purpose PURPOSE CAUSES OF ACTION 8. Causes of action under Part 1 PART 1 IMPLEMENTATION OF THE AGREEMENT AND THE RELATED AGREEMENTS APPROVAL 9. Agreements approved ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 10. Canadian representative on Joint Commission 11. Payment of expenditures PANELS, COMMITTEES, SUBCOMMITTEES AND WORKING GROUPS 12. Powers of Minister i 13. Administrative support 14. Payment of costs 15. Orders re Article 2114 ORDERS PART 2 RELATED AMENDMENTS 16–22. 23. Canadian International Trade Tribunal Act Commercial Arbitration Act 24–30. Crown Liability and Proceedings Act 31–35. Customs Act 36–49. Customs Tariff 50–51. Department of Human Resources and Skills Development Act 52–54. Export and Import Permits Act 55. Financial Administration Act PART 3 COORDINATING AMENDMENTS AND COMING INTO FORCE COORDINATING AMENDMENTS 56. Bill C-2 COMING INTO FORCE 57. Order in council SCHEDULE 1 SCHEDULE 2 SCHEDULE 3 SCHEDULE 4 SCHEDULE 5 SCHEDULE 6 SCHEDULE 7 57-58 ELIZABETH II —————— CHAPTER 16 An Act to implement the Free Trade Agreement between Canada and the Republic of Peru, the Agreement on the Environment between Canada and the Republic of Peru and the Agreement on Labour Cooperation between Canada and the Republic of Peru [Assented to 18th June, 2009] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Canada– Peru Free Trade Agreement Implementation Act. INTERPRETATION Definitions “Agreement” « Accord » “federal law” « texte législatif fédéral » 2. The definitions in this section apply in this Act. “Agreement” means the Free Trade Agreement between Canada and the Republic of Peru, signed on May 29, 2008. “federal law” means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament. “Joint Commission” « Commission mixte » “Joint Commission” means the Joint Commission established under Article 2001 of the Agreement. “Minister” « ministre » “Minister” means the Minister for International Trade. 2 “related agreement” « accord connexe » C. 16 Canada–Peru Free “related agreement” means (a) the Agreement on the Environment between Canada and the Republic of Peru, signed on May 29, 2008; or (b) the Agreement on Labour Cooperation between Canada and the Republic of Peru, signed on May 29, 2008. Interpretation consistent with agreements 3. For greater certainty, this Act and any federal law that implements a provision of the Agreement or a related agreement or fulfils an obligation of the Government of Canada under the Agreement or a related agreement is to be interpreted in a manner consistent with the Agreement or related agreement, as the case may be. Non-application of Act or Agreement to water 4. For greater certainty, nothing in this Act or the Agreement applies to natural surface or ground water in liquid, gaseous or solid state. Construction 5. For greater certainty, nothing in this Act, by specific mention or omission, is to be construed to affect in any manner the right of Parliament to enact legislation to implement any provision of the Agreement or a related agreement or fulfil any of the obligations of the Government of Canada under the Agreement or a related agreement. HER MAJESTY Binding on Her Majesty 6. This Act is binding on Her Majesty in right of Canada. PURPOSE Purpose 7. The purpose of this Act is to implement the Agreement and the related agreements, the objectives of which, as elaborated more specifically through their provisions, are to (a) establish a free trade area in accordance with the Agreement; (b) promote, through the expansion of reciprocal trade, the harmonious development of the economic relations between Canada and the Republic of Peru in order to foster, in Canada and in the Republic of Peru, the advancement of economic activity; Accord de libre-écha (c) provide fair conditions of competition affecting trade between Canada and the Republic of Peru; (d) substantially increase investment opportunities in Canada and the Republic of Peru; (e) contribute, by the removal of barriers to trade, to the harmonious development and expansion of world trade; (f) enhance and enforce environmental laws and regulations and strengthen cooperation on environmental matters; (g) protect, enhance and enforce basic workers’ rights, strengthen cooperation and build on the respective international commitments of Canada and the Republic of Peru on labour matters; and (h) promote sustainable development. CAUSES OF ACTION Causes of action under Part 1 8. (1) No person has any cause of action and no proceedings of any kind shall be taken, without the consent in writing of the Attorney General of Canada, including the reasons why consent was given, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of Part 1 or an order made under that Part. Causes of action under the Agreement or a related agreement (2) Subject to Section B of Chapter Eight of the Agreement and Part Three and Annex 4 of the Agreement on Labour Cooperation between Canada and the Republic of Peru, signed on May 29, 2008, no person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement or a related agreement. C. 16 Canada–Peru Free PART 1 IMPLEMENTATION OF THE AGREEMENT AND THE RELATED AGREEMENTS APPROVAL Agreements approved 9. The Agreement and the related agreements are approved. ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS Canadian representative on Joint Commission 10. The Minister is the principal representative of Canada on the Joint Commission. Payment of expenditures 11. The Government of Canada shall pay its appropriate share of the aggregate of any expenditures incurred by or on behalf of the Joint Commission. PANELS, COMMITTEES, SUBCOMMITTEES AND WORKING GROUPS Powers of Minister 12. The Minister may (a) appoint any person to be a representative of Canada on any committee or subcommittee referred to in Annex 2001.1 of the Agreement; (b) appoint any person to be a panellist in accordance with Article 2108 of the Agreement; and (c) propose candidates to serve as the chair of panels in accordance with that Article. Administrative support 13. The Minister shall designate an agency, division or branch of the Government of Canada to facilitate the operation of Chapter Twentyone of the Agreement and to provide administrative assistance to panels established under that Chapter. Payment of costs 14. The Government of Canada shall pay the costs of or its appropriate share of the costs of (a) the remuneration and expenses payable to members of panels, committees, subcommittees and working groups and to the assistants of panel members; and (b) the general expenses incurred by panels, committees, subcommittees and working groups. Accord de libre-écha 2009 ORDERS Orders re Article 2114 15. (1) The Governor in Council may, for the purpose of suspending benefits in accordance with Article 2114 of the Agreement, by order, do any one or more of the following: (a) suspend rights or privileges granted by Canada to the Republic of Peru or to goods of the Republic of Peru under the Agreement or any federal law; (b) modify or suspend the application of any federal law, with respect to the Republic of Peru or to goods of the Republic of Peru; (c) extend the application of any federal law to the Republic of Peru or to goods of the Republic of Peru; and (d) take any other measure that the Governor in Council considers necessary for that purpose. Period of order (2) Unless repealed, an order made under subsection (1) has effect for the period specified in the order. PART 2 RELATED AMENDMENTS R.S., c. 47 (4th Supp.) CANADIAN INTERNATIONAL TRADE TRIBUNAL ACT 16. Subsection 2(5) of the Canadian International Trade Tribunal Act is replaced by the following: Definition of “Peru Tariff” (4.1) In this Act, “Peru Tariff” means the rates of customs duty referred to in section 49.5 of the Customs Tariff. Goods imported from a NAFTA country, Chile, Costa Rica or Peru (5) For the purposes of this Act, goods are imported from a NAFTA country, from Chile, from Costa Rica or from Peru if they are shipped directly to Canada from the NAFTA country, Chile, Costa Rica or Peru, as the case may be, within the meaning of sections 17 and 18 of the Customs Tariff. 17. The Act is amended by adding the following after section 19.013: C. 16 Definition of “principal cause” 19.014 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Emergency measures — Peru (2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Peru Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report. Terms of reference (3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be. Tabling of report (4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report is so submitted. Notice of report (5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette. Canada–Peru Free 18. The Act is amended by adding the following after section 20.03: Definition of “principal cause” 20.04 (1) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Determination in respect of Peruvian goods (2) Where, in an inquiry conducted pursuant to a reference under section 20 into goods imported from Peru that are specified by the Governor in Council or in an inquiry conducted pursuant to a complaint under subsection 23(1) into goods so imported that are specified by the Tribunal, the Tribunal finds that the specified Accord de libre-écha imported goods and goods of the same kind imported from other countries are being imported in such increased quantities and under such conditions as to be a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, the Tribunal shall determine whether the specified imported goods are a principal cause of the serious injury or threat of serious injury. Determinations (3) In the case of an inquiry to which subsection (2) applies, the Tribunal shall include in its report any determinations made under that subsection. Inquiry under section 30.07 (4) In an inquiry under section 30.07 into goods imported from Peru conducted pursuant to an extension request, the Tribunal shall determine whether the goods imported from Peru are a principal cause of the serious injury or threat of serious injury to domestic producers of like or directly competitive goods. 2001, c. 28, s. 21 19. Section 21.1 of the Act is replaced by the following: Definition of “complaint” 21.1 In sections 23 to 30, “complaint” means a written complaint filed with the Tribunal under subsection 23(1), (1.01), (1.02), (1.03), (1.04), (1.05), (1.06), (1.07), (1.08) or (1.09) and, for the purposes of those sections, a complaint is properly documented if the Tribunal is satisfied that it contains or is accompanied by the information required by section 23. 20. Section 23 of the Act is amended by adding the following after subsection (1.08): Filing of complaint — Peru Tariff (1.09) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Peru Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such C. 16 Canada–Peru Free conditions as to constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods. 21. Paragraph 26(1)(a) of the Act is amended by striking out “or” at the end of subparagraph (i.8) and by adding the following after that subparagraph: (i.9) in the case of a complaint filed under subsection 23(1.09), the goods that are entitled to the Peru Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such conditions as to constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, or 22. Subsection 27(1) of the Act is amended by striking out “or” at the end of paragraph (a.8) and by adding the following after that paragraph: (a.9) in the case of a complaint filed under subsection 23(1.09), the goods that are entitled to the Peru Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; or R.S., c. 17 (2nd Supp.) COMMERCIAL ARBITRATION ACT 23. Subsection 5(4) of the Commercial Arbitration Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): Accord de libre-écha (c) a claim under Article 819 or 820 of the Agreement, as defined in section 2 of the Canada–Peru Free Trade Agreement Implementation Act. R.S., c. C-50; 1990, c. 8, s. 21 CROWN LIABILITY AND PROCEEDINGS ACT 1994, c. 11. s. 1 24. The heading before section 20.1 of the Crown Liability and Proceedings Act is replaced by the following: ENVIRONMENTAL AND LABOUR COOPERATION TREATIES 1994, c. 11, s. 1; 1997, c. 14, s. 33 25. (1) The definitions “apppropriate Commission”, “Canada–Chile Environmental Cooperation Agreement”, “Canada–Chile Labour Cooperation Agreement”, “Environmental Cooperation Agreement” and “Labor Cooperation Agreement” in section 20.1 of the Act are repealed. 1997, c. 14, s. 33(1) (2) The definitions “panel” and “panel determination” in section 20.1 of the Act are replaced by the following: “panel” « groupe spécial » “panel determination” « décision d’un groupe spécial » “panel” means an arbitral panel or a review panel convened under an environmental cooperation treaty or a labour cooperation treaty; “panel determination” means a panel determination as defined in an environmental cooperation treaty or a labour cooperation treaty or, if that expression is not defined, a determination made by a panel under one of those treaties regarding the amount of a monetary assessment that Canada is required to pay. (3) Section 20.1 of the Act is amended by adding the following in alphabetical order: “appropriate party” « partie compétente » “appropriate party”, in respect of a panel determination, means (a) the Commission for Environmental Cooperation established under Article 8 of the treaty referred to in item 1 of Part 1 of the schedule, C. 16 Canada–Peru Free (b) the Canada–Chile Commission for Environmental Cooperation established under Article 8 of the treaty referred to in item 2 of Part 1 of the schedule, (c) the Commission for Labor Cooperation established under Article 8 of the treaty referred to in item 1 of Part 2 of the schedule, (d) the Canada–Chile Commission for Labour Cooperation established under Article 8 of the treaty referred to in item 2 of Part 2 of the schedule, or (e) any other party to whom Canada is required to pay a monetary assessment as a result of a panel determination; “environmental cooperation treaty” « traité sur l’environnement » “labour cooperation treaty” « traité sur le travail » “environmental cooperation treaty” means any treaty respecting environmental cooperation referred to in Part 1 of the schedule; “labour cooperation treaty” means any treaty respecting labour cooperation referred to in Part 2 of the schedule; 1994, c. 11, s. 1 26. Subsection 20.2(2) of the Act is replaced by the following: Procedure (2) To make a panel determination an order of the Federal Court, the appropriate party shall file a certified copy of the determination in the Registry of that Court and, on filing, the determination becomes an order of that Court. 1994, c. 11, s. 1 27. Subsection 20.3(2) of the Act is replaced by the following: Limitation (2) Proceedings for enforcement of a panel determination that is made an order of the Federal Court may be taken against the Crown only in that Court and only by the appropriate party. 1997, c. 14, s. 34 28. The portion of subsection 20.4(2) of the Act before paragraph (a) is replaced by the following: Limitation on proceedings (2) Subject to section 20.3, no panel determination, including a panel determination that is made an order of the Federal Court, no determination or proceedings of a panel made Accord de libre-écha or carried on or purporting to be made or carried on under any environmental cooperation treaty or labour cooperation treaty, no order or decision made by the Federal Court in any proceedings referred to in subsection 20.3(2) and no proceedings of that Court made or carried on or purporting to be made or carried on under that subsection shall be 1990, c. 8, s. 31; 2001, c. 4, s. 50(F) 29. Subsection 30(1) of the Act is replaced by the following: Payment of judgment 30. (1) On receipt of a certificate of judgment against the Crown issued under the regulations or the Federal Courts Rules, the Minister of Finance shall authorize the payment out of the Consolidated Revenue Fund of any money awarded by the judgment to any person against the Crown. 30. The Act is amended by adding, after section 36, the schedule set out in Schedule 1 to this Act. R.S., c. 1 (2nd Supp.) CUSTOMS ACT 2001, c. 28, s. 26(1) 31. (1) The definitions “free trade agreement” and “free trade partner” in subsection 2(1) of the Customs Act are replaced by the following: “free trade agreement” « accord de libre-échange » “free trade agreement” means NAFTA, CCFTA, CCRFTA, CIFTA or CPFTA; “free trade partner” « partenaire de libre-échange » “free trade partner” means (a) a NAFTA country, (b) Chile, (c) Costa Rica, (d) Israel or another CIFTA beneficiary, or (e) Peru; (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: 12 “CPFTA” « ALÉCP » “Peru” « Pérou » “preferential tariff treatment under CPFTA” « traitement tarifaire préférentiel de l’ALÉCP » C. 16 Canada–Peru Free “CPFTA” has the same meaning as “Agreement” in section 2 of the Canada–Peru Free Trade Agreement Implementation Act; “Peru” has the same meaning as in subsection 2(1) of the Customs Tariff; “preferential tariff treatment under CPFTA” means, in respect of goods, entitlement to the Peru Tariff rates of customs duty under the Customs Tariff; (3) Subsection 2(1.2) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) preferential CPFTA. 2001, c. 28, s. 27 tariff treatment under 32. Section 42.4 of the Act and the heading before it are replaced by the following: Denial or Withdrawal of Benefit of Preferential Tariff Treatment under NAFTA, CCFTA, CCRFTA or CPFTA Definition of “identical goods” 42.4 (1) In this section, “identical goods” has the meaning assigned to that expression by Article 514 of NAFTA, Article E-14 of CCFTA, Article V.14 of CCRFTA or Article 423 of CPFTA, as the case may be. Denial or withdrawal of benefit — NAFTA country, Chile, Costa Rica or Peru (2) Notwithstanding section 24 of the Customs Tariff, the Minister may, subject to the prescribed conditions, deny or withdraw preferential tariff treatment under NAFTA, CCFTA, CCRFTA or CPFTA in respect of goods for which that treatment is claimed if the exporter or producer of the goods has made false representations that identical goods exported or produced by that exporter or producer and for which that treatment was claimed were eligible for that treatment. 2001, c. 28, s. 28; 2004, c. 16, s. 6(F) 33. Paragraph 43.1(1)(b) of the Act is replaced by the following: Accord de libre-écha (b) in the case of goods exported from a NAFTA country, from Chile, from Costa Rica or from Peru, any matter, other than those referred to in paragraphs (a) and (c), concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA, in paragraph 1 of Article E-09 of CCFTA, in paragraph 1 of Article V.9 or paragraph 10 of Article IX.2 of CCRFTA or paragraph 1 of Article 419 of CPFTA, as the case may be; and 2001, c. 28, s. 29 34. Paragraph 74(1)(c.11) of the Act is replaced by the following: (c.11) the goods were imported from Costa Rica, from Israel or another CIFTA beneficiary or from Peru but no claim for preferential tariff treatment under CCRFTA, CIFTA or CPFTA, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5); 35. Section 164 of the Act is amended by adding the following after subsection (1.3): Regulations — CPFTA 1997, c. 36 (1.4) The Governor in Council may, on the recommendation of the Minister, make regulations for the purpose of the uniform interpretation, application and administration of Chapter Four of CPFTA and any other matters that may be agreed on from time to time by the parties to CPFTA. CUSTOMS TARIFF 36. Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order: “Canada–Peru Free Trade Agreement” « Accord de libre-échange Canada-Pérou » “Peru” « Pérou » “Canada–Peru Free Trade Agreement” has the same meaning as “Agreement” in section 2 of the Canada–Peru Free Trade Agreement Implementation Act. “Peru” means the mainland territory, the islands, the maritime zones and the air space above them, over which the Republic of Peru exercises C. 16 Canada–Peru Free sovereignty, or sovereign rights and jurisdiction, in accordance with its domestic law and international law. 2001, c. 28, s. 32 37. Section 5 of the Act is replaced by the following: Goods imported from a NAFTA country, Chile, Costa Rica or Peru 5. For the purposes of this Act, goods are imported from a NAFTA country, Chile, Costa Rica or Peru if they are shipped directly to Canada from that country. 2001, c. 28, s. 33 38. Paragraph 14(2)(c) of the Act is replaced by the following: (c) by way of compensation for any action taken under subsection 55(1), section 60 or subsection 63(1), 69(2), 70(2), 71(2), 71.1(2), 71.2(1), 72(1), 75(1), 76(1) or 76.1(1) or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act. 2001, c. 28, s. 35 39. Paragraph 24(1)(b) of the Act is replaced by the following: (b) the goods are entitled to that tariff treatment in accordance with regulations made under section 16 or an order made under paragraph 31(1)(a), 34(1)(a), 38(1)(a) or 42(1)(a), subsection 45(13), section 48 or subsection 49(2) or 49.5(8). 2001, c. 28, s. 36 40. Section 27 of the Act is replaced by the following: Abbreviations 27. For the purposes of the List of Tariff Provisions and the “F” Staging List, the abbreviations “UST”, “MT”, “MUST”, “CT”, “CRT”, “CIAT”, “GPT”, “LDCT”, “CCCT”, “AUT”, “NZT” and “PT” refer, respectively, to “United States Tariff”, “Mexico Tariff”, “Mexico–United States Tariff”, “Chile Tariff”, “Costa Rica Tariff”, “Canada–Israel Agreement Tariff”, “General Preferential Tariff”, “Least Developed Country Tariff”, “Commonwealth Caribbean Countries Tariff”, “Australia Tariff”, “New Zealand Tariff” and “Peru Tariff”. Accord de libre-écha 2009 2001, c. 28, s. 37 41. Subsection 49.3(1) of the Act is replaced by the following: Limits on reduction of duty 49.3 (1) The Governor in Council may, on the recommendation of the Minister, by order, specify limits on the aggregate quantity of goods of tariff item Nos. 1701.91.90, 1 7 0 1 . 9 9 . 9 0 , 1 7 0 2 . 9 0 . 11 , 1 7 0 2 . 9 0 . 1 2 , 1702.90.13, 1702.90.14, 1702.90.15, 1702.90.16, 1702.90.17, 1702.90.18 and 1702.90.89 and that are entitled to the Costa Rica Tariff, and the limits apply during the periods and subject to the conditions that may be specified in the order. 42. The Act is amended by adding the following after section 49.4: Peru Tariff Application of PT 49.5 (1) Subject to section 24, goods that originate in Peru are entitled to the Peru Tariff rates of customs duty. “A” final rate (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PT” in relation to goods entitled to the Peru Tariff, the Peru Tariff rate of customs duty that applies to those goods is the final rate of “Free”. “F” staging for PT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PT” in relation to goods entitled to the Peru Tariff, the Peru Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Staging for PT (4) If “R1” or “R2” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “PT” in relation to goods entitled to the Peru Tariff, the Peru Tariff rate of customs duty that applies to those goods is the initial rate, reduced (a) if “R1” is set out, (i) effective on the coming into force of this subsection, to two thirds of the initial rate, (ii) effective on January 1, 2010, to one third of the initial rate, and C. 16 Canada–Peru Free (iii) effective on January 1, 2011, to the final rate of “Free”; and (b) if “R2” is set out, (i) effective on the coming into force of this subsection, to six sevenths of the initial rate, (ii) effective on January 1, 2010, to five sevenths of the initial rate, (iii) effective on January 1, 2011, to four sevenths of the initial rate, (iv) effective on January 1, 2012, to three sevenths of the initial rate, (v) effective on January 1, 2013, to two sevenths of the initial rate, (vi) effective on January 1, 2014, to one seventh of the initial rate, and (vii) effective on January 1, 2015, to the final rate of “Free”. Rounding of specific rates (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent. Rounding of amounts (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than two per cent (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately. Extension of Peru Tariff (8) Notwithstanding any other provision of this Act, for the purposes of giving effect to Article 317 of the Canada–Peru Free Trade Agreement, the Minister may, by order, amend the schedule to extend entitlement to the Peru Tariff to any imported goods subject to any condition that may be specified in the order. Limits on reduction of duty (9) The Governor in Council may, on the recommendation of the Minister, by order, specify limits on the aggregate quantity of goods of tariff item Nos. 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, Accord de libre-écha 1702.90.70 and 1702.90.81 that are entitled to the Peru Tariff, and the limits apply during the periods and subject to the conditions that may be specified in the order. 43. Section 54 of the Act is amended by adding the following in alphabetical order: “principal cause” « cause principale » “principal cause”, in respect of goods imported from Peru, means an important cause that is no less important than any other cause. 44. The Act is amended by adding the following after section 59: Peru emergency measures 59.1 An order made under subsection 55(1) may exclude goods of any kind imported from Peru if it appears to the satisfaction of the Governor in Council, on the basis of a report under section 20 or 29 of the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods. 45. (1) The portion of subsection 63(1) of the Act before paragraph (a) is replaced by the following: Extension order 63. (1) Subject to subsections (4) and (4.1), if, at any time before the expiry of an order with respect to any goods made under this subsection, subsection 55(1) or section 60 or under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act, it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under section 30.07 of the Canadian International Trade Tribunal Act, that C. 16 Canada–Peru Free (2) Section 63 of the Act is amended by adding the following after subsection (4): Exception for goods imported from Peru (4.1) An order under subsection (1) may exclude goods of any kind imported from Peru if it appears to the satisfaction of the Governor in Council, on the basis of a report under the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods. 46. The Act is amended by adding the following after section 71.1: Bilateral Emergency Measures — Peru Order by Governor in Council 71.2 (1) Subject to subsections (2) to (4), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.014(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.09) of that Act, that goods that are entitled to the Peru Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order (a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.5; and (b) make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament Accord de libre-écha relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Peru Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of (i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and (ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods on January 1, 2007. Terms and conditions (2) An order under subsection (1) (a) may not be made more than twice during the period beginning on the day on which this subsection comes into force and ending on the day that is seven years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and (b) may not be made after the day that is seven years after the day on which this subsection comes into force. Application of measures a second time (3) A measure referred to in an order made under subsection (1) may be applied a second time if the period that has elapsed since the initial application of the measure ended is equal to at least one half of the initial period of application. Rate of duty when order ceases to have effect (4) If an order made under subsection (1) ceases to have effect in a particular calendar year, the rate of customs duty applicable to the goods after the order ceases to have effect is the rate of customs duty that is applicable in accordance with section 49.5. Definition of “principal cause” (5) In this section, “principal cause” means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat. 2001, c. 28, s. 40 47. Section 79 of the Act is replaced by the following: C. 16 Goods in transit 79. An order made under subsection 53(2) or 55(1), section 60 or subsection 63(1), 69(2), 70(2), 71.1(2), 71.2(1), 72(1), 75(1), 76(1) or 76.1(1) may provide that goods that are in transit to Canada at the time the order comes into force are entitled to the tariff treatment that was applicable to those goods immediately before that time. 2001, c. 28, s. 45 48. Paragraph 133(j) of the Act is replaced by the following: Canada–Peru Free (j) for the purpose of tariff item No. 9971.00.00 or 9992.00.00, prescribing conditions under which goods that have been exported to a NAFTA country, Chile, Costa Rica, Israel or another CIFTA beneficiary or Peru for repair or alteration may be imported; 49. (1) The List of Tariff Provisions set out in the schedule to the Act is amended by (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT”, a reference to “PT:”; (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT”, a reference to “PT:”; (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “PT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “PT”, for all tariff items except tariff items under subheading 3504.00 and those set out in each of Schedules 2 to 4 to this Act; (d) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” a reference to “N/A” after the abbreviation “PT” for tariff items under subheading 3504.00 and those set out in Schedule 2 to this Act; and (e) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “PT”, for each tariff item set out in Schedule 3 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule. Accord de libre-écha (2) The Description of Goods of tariff item No. 9929.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “imported from the United States, Mexico, Chile or Costa Rica” with a reference to “imported from the United States, Mexico, Chile, Costa Rica or Peru”. (3) The Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference beginning with “All the foregoing,” and ending with “in that country.” with a reference to “All the foregoing, regardless of the country of origin or tariff treatment, returned to Canada after having been exported to the United States, Mexico, Chile, Costa Rica, Israel or another CIFTA beneficiary or Peru for repair or alteration in that country.”. (4) The Description of Goods of tariff item No. 9990.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by (a) replacing the reference to “Commercial samples imported from the United States, Mexico, Chile or Costa Rica” with a reference to “Commercial samples imported from the United States, Mexico, Chile, Costa Rica or Peru”; and (b) replacing, in paragraph (i), the reference to “in Canadian, Chilean, Mexican or Costa Rican currency” with a reference to “in Canadian, Chilean, Mexican, Costa Rican or Peruvian currency”. (5) The Description of Goods of tariff item No. 9992.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended C. 16 Canada–Peru Free by replacing the reference to “exported to the United States, Mexico, Chile, Costa Rica, or Israel or another CIFTA beneficiary for repair or alteration in that country” with a reference to “exported to the United States, Mexico, Chile, Costa Rica, Israel or another CIFTA beneficiary or Peru for repair or alteration”. ( 6 ) Ta r i f f i t e m N o s . 1 7 0 1 . 9 1 . 0 0 , 1701.99.00, 1702.90.20, 1702.90.30 and 1702.90.60 in the List of Tariff Provisions set out in the schedule to the Act are repealed. (7) The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 4 to this Act. (8) The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by deleting tariff item Nos. 1701.91.00, 1701.99.00, 1702.90.20, 1702.90.30 and 1702.90.60. 2005, c. 34 DEPARTMENT OF HUMAN RESOURCES AND SKILLS DEVELOPMENT ACT 50. The Department of Human Resources and Skills Development Act is amended by adding the following after section 19: Crediting to Labour Cooperation Treaties Account 19.1 (1) All moneys received by Her Majesty as a result of a monetary assessment by a panel determination under any treaty respecting labour cooperation referred to in the schedule shall be paid into the Consolidated Revenue Fund and credited to a special account in the accounts of Canada to be known as the Labour Cooperation Treaties Account. Additional credits to the Account (2) If an amount is assessed against Canada by a panel determination under a treaty respecting labour cooperation referred to in the schedule, an amount equal to that amount shall be credited to the Account if the Account has been designated for the purposes of the treaty in accordance with its provisions. Accord de libre-écha Interest (3) On April 1 of every year there shall be credited to the Account an amount representing interest, at the rate fixed for the purposes of subsection 21(2) of the Financial Administration Act, on the balance to the credit of the Account. Payment of moneys (4) One or more amounts not exceeding in total the amount standing in the Account in relation to a treaty, including interest, may, on the requisition of the Minister of Labour, be paid out of the Consolidated Revenue Fund in accordance with the provisions of the treaty. The amount of all such payments is to be charged to the Account. 51. The Act is amended by adding, after section 85, the schedule set out in Schedule 5 to this Act. R.S., c. E-19 EXPORT AND IMPORT PERMITS ACT 52. Subsection 2(1) of the Export and Import Permits Act is amended by adding the following in alphabetical order: “Peru” « Pérou » “Peru” has the same meaning as in subsection 2(1) of the Customs Tariff; 53. Subsection 4.2(1) of the Act is amended by adding the following in alphabetical order: “principal cause” « cause principale » “principal cause”, in respect of goods imported from Peru, means an important cause that is no less important than any other cause; 54. Section 5 of the Act is amended by adding the following after subsection (3.3): Exception for goods imported from Peru (3.4) An order made under subsection (3) or (3.2) may exclude goods of any kind imported from Peru if it appears to the satisfaction of the Governor in Council, on the basis of a report under the Canadian International Trade Tribunal Act, that the quantity of those goods being C. 16 Canada–Peru Free imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods. R.S., c. F-11 FINANCIAL ADMINISTRATION ACT 55. The Financial Administration Act is amended by adding the following after section 89.5: Implementation of Canada–Peru Free Trade Agreement Directive 89.6 (1) Notwithstanding subsections 85(1) to (1.2), the Governor in Council may give a directive under subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Canada–Peru Free Trade Agreement that pertains to that Crown corporation. Regulations (2) The Governor in Council may, on the recommendation of the Treasury Board and the appropriate Minister made at the request of a Crown corporation, make any regulations in relation to that corporation that the Governor in Council considers necessary for the purpose of implementing any provision of the Canada–Peru Free Trade Agreement that pertains to that corporation. Definition of “Canada–Peru Free Trade Agreement” (3) In subsections (1) and (2), “Canada–Peru Free Trade Agreement” has the same meaning as “Agreement” in section 2 of the Canada– Peru Free Trade Agreement Implementation Act. PART 3 COORDINATING AMENDMENTS AND COMING INTO FORCE COORDINATING AMENDMENTS Bill C-2 56. (1) Subsections (2) to (20) apply if Bill C-2, introduced in the 2nd session of the 40th Parliament and entitled the Canada–EFTA Free Trade Agreement Implementation Act (referred to in this section as the “other Act”), receives royal assent. Accord de libre-écha (2) On the first day on which both subsection 2(4.1) of the Canadian International Trade Tribunal Act, as enacted by section 16 of the other Act, and subsection 2(4.1) of the Canadian International Trade Tribunal Act, as enacted by section 16 of this Act, are in force, subsection 2(4.1) of the Canadian International Trade Tribunal Act, as enacted by section 16 of this Act, is renumbered as subsection 2(4.2) and is repositioned accordingly if required. (3) On the first day on which both section 16 of the other Act and section 16 of this Act are in force, subsection 2(5) of the Canadian International Trade Tribunal Act is replaced by the following: Goods imported from an EFTA state, a NAFTA country, Chile, Costa Rica or Peru (5) For the purposes of this Act, goods are imported from an EFTA state, from a NAFTA country, from Chile, from Costa Rica or from Peru if they are shipped directly to Canada from the EFTA state, the NAFTA country, Chile, Costa Rica or Peru, as the case may be, within the meaning of sections 17 and 18 of the Customs Tariff. (4) On the first day on which both section 19.014 of the Canadian International Trade Tribunal Act, as enacted by section 17 of the other Act, and section 19.014 of the Canadian International Trade Tribunal Act, as enacted by section 17 of this Act, are in force, (a) section 19.014 of the Canadian International Trade Tribunal Act, as enacted by section 17 of this Act, is renumbered as section 19.017 and is repositioned accordingly if required; and (b) the reference to “19.014(2)” in the portion of subsection 71.2(1) of the Customs Tariff before paragraph (a), as enacted by section 46 of this Act, is replaced by a reference to “19.017(2)”. (5) On the first day on which both section 18 of the other Act and section 19 of this Act are in force, section 21.1 of the Canadian International Trade Tribunal Act is replaced by the following: C. 16 Definition of “complaint” 21.1 In sections 23 to 30, “complaint” means a written complaint filed with the Tribunal under subsection 23(1), (1.01), (1.02), (1.03), (1.04), (1.05), (1.06), (1.07), (1.08), (1.09), (1.091), (1.092) or (1.093) and, for the purposes of those sections, a complaint is properly documented if the Tribunal is satisfied that it contains or is accompanied by the information required by section 23. Canada–Peru Free (6) On the first day on which both subsection 23(1.09) of the Canadian International Trade Tribunal Act, as enacted by section 19 of the other Act, and subsection 23(1.09) of the Canadian International Trade Tribunal Act, as enacted by section 20 of this Act, are in force, (a) subsection 23(1.09) of the Canadian International Trade Tribunal Act, as enacted by section 20 of this Act, is renumbered as subsection 23(1.093) and is repositioned accordingly if required; and (b) every reference to “23(1.09)” is replaced by a reference to “23(1.093)” in the following provisions: (i) subparagraph 26(1)(a)(i.9) of the Canadian International Trade Tribunal Act, as enacted by section 21 of this Act, (ii) paragraph 27(1)(a.9) of the Canadian International Trade Tribunal Act, as enacted by section 22 of this Act, and (iii) the portion of subsection 71.2(1) of the Customs Tariff before paragraph (a), as enacted by section 46 of this Act. (7) On the first day on which both subparagraph 26(1)(a)(i.9) of the Canadian International Trade Tribunal Act, as enacted by section 21 of the other Act, and subparagraph 26(1)(a)(i.9) of the Canadian International Trade Tribunal Act, as enacted by section 21 of this Act, are in force, (a) subparagraph 26(1)(a)(i.9) of the Canadian International Trade Tribunal Act, as enacted by section 21 of this Act, is renumbered as subparagraph 26(1)(a)(i.93) and is repositioned accordingly if required; and Accord de libre-écha (b) paragraph 26(1)(a) of the English version of the Canadian International Trade Tribunal Act is amended by striking out “or” at the end of subparagraph (i.92). (8) On the first day on which both paragraph 27(1)(a.9) of the Canadian International Trade Tribunal Act, as enacted by section 22 of the other Act, and paragraph 27(1)(a.9) of the Canadian International Trade Tribunal Act, as enacted by section 22 of this Act, are in force, (a) paragraph 27(1)(a.9) of the Canadian International Trade Tribunal Act, as enacted by section 22 of this Act, is renumbered as paragraph 27(1)(a.93) and is repositioned accordingly if required; and (b) subsection 27(1) of the English version of the Canadian International Trade Tribunal Act is amended by striking out “or” at the end of paragraph (a.92). (9) On the first day on which both subsection 23(1) of the other Act and subsection 31(1) of this Act are in force, the definitions “free trade agreement” and “free trade partner” in subsection 2(1) of the Customs Act are replaced by the following: “free trade agreement” « accord de libre-échange » “free trade agreement” means NAFTA, CCFTA, CCRFTA, CEFTA, CIFTA or CPFTA; “free trade partner” « partenaire de libre-échange » “free trade partner” means (a) a NAFTA country, (b) Chile, (c) Costa Rica, (d) Israel or another CIFTA beneficiary, (e) an EFTA state, or (f) Peru; (10) On the first day on which both paragraph 2(1.2)(e) of the Customs Act, as enacted by subsection 23(3) of the other Act, C. 16 Canada–Peru Free and paragraph 2(1.2)(e) of the Customs Act, as enacted by subsection 31(3) of this Act, are in force, (a) paragraph 2(1.2)(e) of the Customs Act, as enacted by subsection 31(3) of this Act, is renumbered as paragraph 2(1.2)(f) and is repositioned accordingly if required; and (b) subsection 2(1.2) of the English version of the Customs Act is amended by (i) striking out “or” at the end of paragraph (d), and (ii) adding “or” at the end of paragraph (e). (11) On the first day on which both section 26 of the other Act and section 33 of this Act are in force, paragraph 43.1(1)(b) of the Customs Act is replaced by the following: (b) in the case of goods exported from a NAFTA country, from Chile, from Costa Rica, from an EFTA state or from Peru, any matter, other than those referred to in paragraphs (a) to (c), concerning those goods that is set out in paragraph 1 of Article 509 of NAFTA, in paragraph 1 of Article E-09 of CCFTA, in paragraph 1 of Article V.9 or paragraph 10 of Article IX.2 of CCRFTA, in Article 28(2) of Annex C of CEFTA or in paragraph 1 of Article 419 of CPFTA, as the case may be; and (12) On the first day on which both section 27 of the other Act and section 34 of this Act are in force, paragraph 74(1)(c.11) of the Customs Act is replaced by the following: (c.11) the goods were imported from Costa Rica, from an EFTA state, from Israel or another CIFTA beneficiary or from Peru but no claim for preferential tariff treatment under CCRFTA, CEFTA, CIFTA or CPFTA, as the case may be, was made in respect of those goods at the time they were accounted for under subsection 32(1), (3) or (5); Accord de libre-écha (13) On the first day on which both subsection 164(1.4) of the Customs Act, as enacted by section 29 of the other Act, and subsection 164(1.4) of the Customs Act, as enacted by section 35 of this Act, are in force, subsection 164(1.4) of the Customs Act, as enacted by section 35 of this Act, is renumbered as subsection 164(1.5) and is repositioned accordingly if required. (14) On the first day on which both section 31 of the other Act and section 37 of this Act are in force, section 5 of the Customs Tariff is replaced by the following: Goods imported from a NAFTA country, Chile, Costa Rica, an EFTA state or Peru 5. For the purposes of this Act, goods are imported from a NAFTA country, Chile, Costa Rica, Iceland, Norway, Switzerland, Liechtenstein or Peru if they are shipped directly to Canada from that country. (15) On the first day on which both section 32 of the other Act and section 40 of this Act are in force, section 27 of the Customs Tariff is replaced by the following: Abbreviations 27. For the purposes of the List of Tariff Provisions and the “F” Staging List, the abbreviations “UST”, “MT”, “MUST”, “CT”, “CRT”, “CIAT”, “GPT”, “LDCT”, “CCCT”, “AUT”, “NZT”, “IT”, “NT”, “SLT” and “PT” refer, respectively, to “United States Tariff”, “Mexico Tariff”, “Mexico–United States Tariff”, “Chile Tariff”, “Costa Rica Tariff”, “Canada–Israel Agreement Tariff”, “General Preferential Tariff”, “Least Developed Country Tariff”, “Commonwealth Caribbean Countries Tariff”, “Australia Tariff”, “New Zealand Tariff”, “Iceland Tariff”, “Norway Tariff”, “Switzerland–Liechtenstein Tariff” and “Peru Tariff”. (16) On the first day on which both section 71.2 of the Customs Tariff, as enacted by section 34 of the other Act, and section 71.2 of the Customs Tariff, as enacted by section 46 of this Act, are in force, C. 16 Canada–Peru Free (a) section 71.2 of the Customs Tariff, as enacted by section 46 of this Act, is renumbered as section 71.5 and, together with the heading before it, is repositioned accordingly if required; and (b) the references to “71.2(1)” in the following provisions are replaced by references to “71.5(1)”: (i) paragraph 14(2)(c) of the Customs Tariff, as enacted by section 38 of this Act, and (ii) section 79 of the Customs Tariff, as enacted by section 47 of this Act. (17) On the first day on which both section 36 of the other Act and section 48 of this Act are in force, paragraphs 133(j) and (j.1) of the Customs Tariff are replaced by the following: (j) for the purpose of tariff item No. 9971.00.00, prescribing conditions under which goods that have been exported to a NAFTA country, Chile, Costa Rica, Israel or another CIFTA beneficiary, Iceland, Norway, Switzerland, Liechtenstein or Peru for repair or alteration may be imported; (j.1) for the purpose of tariff item No. 9992.00.00, prescribing conditions under which goods that have been exported to a NAFTA country, Chile, Costa Rica, Israel or another CIFTA beneficiary or Peru for repair or alteration may be imported; (18) On the first day on which both subsection 37(1) of the other Act and subsection 49(7) of this Act are in force, the portions of tariff item Nos. 1701.91.10, 1701.91.90, 1701.99.10, 1701.99.90, 1702.90.21, 1702.90.29, 1702.90.61, 1702.90.69, 1702.90.70, 1702.90.81 and 1702.90.89 in the List of Tariff Provisions set out in the schedule to the Customs Tariff in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” are replaced by the portions of the corresponding tariff items set out in Schedule 6 to this Act. Accord de libre-écha (19) On the first day on which both subsection 37(3) of the other Act and subsection 49(1) of this Act are in force, the portions of tariff item Nos. 0208.40.10, 0208.40.90, 1 5 1 6 . 1 0 . 1 0 , 1 5 1 6 . 1 0 . 9 0 , 1 6 0 3 . 0 0 . 11 , 1603.00.19, 2301.10.10, 2301.10.90, 2309.90.37, 8901.10.10, 8901.10.90, 8901.20.10, 8901.20.90, 8901.90.91, 8901.90.99, 8906.09.91 and 8906.90.99 in the List of Tariff Provisions set out in the schedule to the Customs Tariff in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” are replaced by the portions of the corresponding tariff items set out in Schedule 7 to this Act. (20) On the first day on which both paragraph 37(4)(a) of the other Act and subsection 49(3) of this Act are in force, (a) if that paragraph 37(4)(a) has come into force before that subsection 49(3), then that subsection 49(3) is deemed never to have come into force and is repealed; (b) if that subsection 49(3) has come into force before that paragraph 37(4)(a), then that paragraph 37(4)(a) is deemed never to have come into force and is repealed; (c) if that paragraph 37(4)(a) comes into force on the same day as that subsection 49(3), then that paragraph 37(4)(a) is deemed to have come into force before that subsection 49(3) and paragraph (a) applies as a consequence; and (d) the Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by replacing the reference beginning with “All the foregoing,” and ending with “in that country.” with a reference to “All the foregoing, regardless of the country of origin or tariff treatment, returned to Canada after having been exported to the United States, Mexico, Chile, Costa Rica, Israel or another CIFTA beneficiary, Iceland, Norway, Switzerland, Liechtenstein or Peru for repair or alteration in that country.”. C. 16 Canada–Peru Free COMING INTO FORCE Order in council 57. (1) The provisions of this Act, other than section 56, come into force on a day or days to be fixed by order of the Governor in Council. Condition (2) No order may be made under subsection (1) unless the Governor in Council is satisfied that the Government of the Republic of Peru has taken satisfactory steps to implement the Agreement and the related agreements. Accord de libre-échange C SCHEDULE 1 (Section 30) SCHEDULE (Section 20.1) PART 1 ENVIRONMENTAL COOPERATION TREATIES 1. The North American Agreement on Environmental Cooperation entered into between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America and signed on September 14, 1993, as amended from time to time in accordance with Article 48 of that Agreement. 2. The Agreement on Environmental Cooperation entered into between the Government of Canada and the Government of the Republic of Chile and signed on February 6, 1997, as amended from time to time in accordance with Article 47 of that Agreement. PART 2 LABOUR COOPERATION TREATIES 1. The North American Agreement on Labor Cooperation entered into between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America and signed on September 14, 1993, as amended from time to time in accordance with Article 52 of that Agreement. 2. The Agreement on Labour Cooperation entered into between the Government of Canada and the Government of the Republic of Chile and signed on February 6, 1997, as amended from time to time in accordance with Article 47 of that Agreement. 3. The Agreement on Labour Cooperation between Canada and the Republic of Peru, signed on May 29, 2008, as amended from time to time in accordance with Article 30 of that Agreement. C. 16 Canada–Peru Free Trade SCHED (Subsectio 0105.11.22 0105.94.92 0105.99.12 0207.11.92 0207.12.92 0207.13.92 0207.13.93 0207.14.22 0207.14.92 0207.14.93 0207.24.12 0207.24.92 0207.25.12 0207.25.92 0207.26.20 0207.26.30 0207.27.12 0207.27.92 0207.27.93 0209.00.22 0209.00.24 0210.99.12 0210.99.13 0210.99.15 0210.99.16 0401.10.20 0401.20.20 0401.30.20 0402.10.20 0402.21.12 0402.21.22 0402.29.12 0402.29.22 0402.91.20 0402.99.20 0403.10.20 0403.90.12 0403.90.92 0404.10.22 0404.90.20 0405.10.20 0405.20.20 0405.90.20 0406.10.20 0406.20.12 0406.20.92 0406.30.20 0406.40.20 0406.90.12 0406.90.22 0406.90.32 0406.90.42 0406.90.52 0406.90.62 0406.90.72 0406.90.82 0406.90.92 0406.90.94 0406.90.96 0406.90.99 0407.00.12 0407.00.19 0408.11.20 0408.19.20 0408.91.20 0408.99.20 1517.10.20 1517.90.22 1601.00.22 1601.00.32 1602.20.22 1602.20.32 1602.31.13 1602.31.14 1602.31.94 1602.31.95 1602.32.13 1602.32.14 1602.32.94 1602.32.95 1702.90.11 1702.90.12 1702.90.13 1702.90.14 1702.90.15 1702.90.16 1702.90.17 1702.90.18 1806.20.22 1806.90.12 1901.20.12 1901.20.22 1901.90.32 1901.90.34 1901.90.52 1901.90.54 2105.00.92 2106.90.32 2106.90.34 2106.90.52 2106.90.94 2202.90.43 2309.90.32 3502.11.20 3502.19.20 9801.20.00 9826.10 9826.20 9826.30 9826.40 9897.00 9898.00 9899.00 9904.00 9938.00 9987.00 Accord de libre-échange C ANNE (paragrap 0105.11.22 0105.94.92 0105.99.12 0207.11.92 0207.12.92 0207.13.92 0207.13.93 0207.14.22 0207.14.92 0207.14.93 0207.24.12 0207.24.92 0207.25.12 0207.25.92 0207.26.20 0207.26.30 0207.27.12 0207.27.92 0207.27.93 0209.00.22 0209.00.24 0210.99.12 0210.99.13 0210.99.15 0210.99.16 0401.10.20 0401.20.20 0401.30.20 0402.10.20 0402.21.12 0402.21.22 0402.29.12 0402.29.22 0402.91.20 0402.99.20 0403.10.20 0403.90.12 0403.90.92 0404.10.22 0404.90.20 0405.10.20 0405.20.20 0405.90.20 0406.10.20 0406.20.12 0406.20.92 0406.30.20 0406.40.20 0406.90.12 0406.90.22 0406.90.32 0406.90.42 0406.90.52 0406.90.62 0406.90.72 0406.90.82 0406.90.92 0406.90.94 0406.90.96 0406.90.99 0407.00.12 0407.00.19 0408.11.20 0408.19.20 0408.91.20 0408.99.20 1517.10.20 1517.90.22 1601.00.22 1601.00.32 1602.20.22 1602.20.32 1602.31.13 1602.31.14 1602.31.94 1602.31.95 1602.32.13 1602.32.14 1602.32.94 1602.32.95 1702.90.11 1702.90.12 1702.90.13 1702.90.14 1702.90.15 1702.90.16 1702.90.17 1702.90.18 1806.20.22 1806.90.12 1901.20.12 1901.20.22 1901.90.32 1901.90.34 1901.90.52 1901.90.54 2105.00.92 2106.90.32 2106.90.34 2106.90.52 2106.90.94 2202.90.43 2309.90.32 3502.11.20 3502.19.20 9801.20.00 9826.10 9826.20 9826.30 9826.40 9897.00 9898.00 9899.00 9904.00 9938.00 9987.00 C. 16 Canada–Peru Free Trade SCHED (Subsectio Tariff Item Initial Rat 0105.94.91 1.90¢/kg 0105.99.11 1.90¢/kg 0207.11.10 8% 0207.11.91 5% but not 0207.13.10 4% 0207.13.91 5% but not 0207.24.11 5% but not 0207.24.91 5% but not 0209.00.21 5% but not 0209.00.23 5% but not 0210.99.11 5% but not 0210.99.14 5% but not 0401.10.10 7.5% 0401.20.10 7.5% 0401.30.10 7.5% 0402.10.10 3.32¢/kg 0402.21.11 3.32¢/kg 0402.21.21 6.5% 0402.29.11 3.32¢/kg 0402.29.21 6.5% 0402.99.10 2.84¢/kg 0403.10.10 6.5% 0403.90.11 3.32¢/kg 0403.90.91 7.5% 0404.10.10 4.94¢/kg 0404.10.21 3.32¢/kg 0404.10.90 11% 0404.90.10 6.5% 0405.10.10 11.38¢/kg 0405.20.10 7% 0405.90.10 7.5% 0406.10.10 3.32¢/kg 0406.20.11 2.84¢/kg 0406.90.11 2.84¢/kg 0406.90.21 3.32¢/kg 0406.90.31 3.32¢/kg 0406.90.41 3.32¢/kg Accord de libre-échange C Tariff Item Initial Rat 0406.90.51 3.32¢/kg 0406.90.61 3.32¢/kg 0406.90.71 3.32¢/kg 0406.90.81 3.32¢/kg 0406.90.91 3.32¢/kg 0406.90.93 3.32¢/kg 0406.90.95 3.32¢/kg 0407.00.11 1.51¢/doze 0407.00.18 1.51¢/doze 0408.11.10 8.5% 0408.19.10 6.63¢/kg 0408.91.10 8.5% 0408.99.10 6.63¢/kg 0603.11.00 10.5% 0603.14.00 8% 0603.19.00 6% 1517.90.21 7.5% 1602.31.11 11% 1602.31.12 7.5% 1602.31.93 5% but not 1602.32.11 11% 1602.32.12 7.5% 1602.32.93 5% but not 1702.40.00 6% 1901.20.11 4% 1901.20.21 3% 2105.00.91 6.5% 2106.90.31 5% 2106.90.33 5% 2106.90.51 6.68¢/kg 2106.90.93 7% 2202.90.41 11% 2202.90.42 7.5% 3825.30.20 15.5% 4015.11.00 15.5% 4015.19.90 15.5% 4015.90.90 14% 4203.21.90 15.5% 4203.29.90 15.5% 4303.10.10 15.5% C. 16 Canada–Peru Free Trade Tariff Item Initial Rat 4303.10.20 14% 4304.00.00 15.5% 5603.12.30 12.5% 5603.12.40 13.5% 5603.12.50 14% 5603.12.99 14% 5603.13.30 12.5% 5603.13.40 13.5% 5603.13.50 14% 5603.13.99 14% 5603.14.30 12.5% 5603.14.40 13.5% 5603.14.50 14% 5603.14.99 14% 5603.92.60 9% 5603.92.99 14% 5603.93.60 9% 5603.93.90 14% 5603.94.50 9% 5603.94.90 14% 5903.10.19 14% 5903.10.29 14% 5903.20.19 14% 5903.20.23 10% 5903.20.29 14% 5903.90.10 14% 5903.90.29 14% 6401.10.19 20% 6401.10.20 20% 6401.92.12 20% 6401.92.91 20% 6401.92.92 20% 6402.12.20 18% 6402.12.30 17.5% 6402.20.19 16% 6402.20.20 18% 6402.91.10 17.5% 6402.91.90 17.5% 6402.99.10 17.5% 6403.12.20 18% Accord de libre-échange C Tariff Item Initial Rat 6403.12.30 18% 6403.40.00 18% 6406.10.11 15.5% 6406.10.19 15.5% 6406.10.90 8% 6505.10.00 15.5% 6506.99.90 12.5% 6812.91.00 15.5% 7019.32.90 15.5% 7019.90.40 15.5% 8901.10.00 25% 8901.20.00 25% 8901.30.00 25% 8901.90.10 15% 8901.90.90 25% 8902.00.10 25% 8904.00.00 25% 8905.10.00 25% 8905.20.10 20% 8905.20.20 25% 8905.90.10 20% 8905.90.90 25% 8906.10.00 25% 8906.90.19 15% 8906.90.90 25% 8907.90.90 15.5% 8908.00.90 15.5% 9401.90.20 15.5% 9404.30.00 15.5% 9404.90.10 14% 9404.90.90 14% 9607.20.10 11.5% C. 16 Canada–Peru Free Trade ANNE (paragrap Numéro tarifaire Taux initi 0105.94.91 1,90 ¢/kg 0105.99.11 1,90 ¢/kg 0207.11.10 8% 0207.11.91 5 % mais p 0207.13.10 4% 0207.13.91 5 % mais p 0207.24.11 5 % mais p 0207.24.91 5 % mais p 0209.00.21 5 % mais p 0209.00.23 5 % mais p 0210.99.11 5 % mais p 0210.99.14 5 % mais p 0401.10.10 7,5 % 0401.20.10 7,5 % 0401.30.10 7,5 % 0402.10.10 3,32 ¢/kg 0402.21.11 3,32 ¢/kg 0402.21.21 6,5 % 0402.29.11 3,32 ¢/kg 0402.29.21 6,5 % 0402.99.10 2,84 ¢/kg 0403.10.10 6,5 % 0403.90.11 3,32 ¢/kg 0403.90.91 7,5 % 0404.10.10 4,94 ¢/kg 0404.10.21 3,32 ¢/kg 0404.10.90 11 % 0404.90.10 6,5 % 0405.10.10 11,38 ¢/kg 0405.20.10 7% 0405.90.10 7,5 % 0406.10.10 3,32 ¢/kg 0406.20.11 2,84 ¢/kg 0406.90.11 2,84 ¢/kg 0406.90.21 3,32 ¢/kg 0406.90.31 3,32 ¢/kg Accord de libre-échange C Numéro tarifaire Taux initi 0406.90.41 3,32 ¢/kg 0406.90.51 3,32 ¢/kg 0406.90.61 3,32 ¢/kg 0406.90.71 3,32 ¢/kg 0406.90.81 3,32 ¢/kg 0406.90.91 3,32 ¢/kg 0406.90.93 3,32 ¢/kg 0406.90.95 3,32 ¢/kg 0407.00.11 1,51 ¢/dou 0407.00.18 1,51 ¢/dou 0408.11.10 8,5 % 0408.19.10 6,63 ¢/kg 0408.91.10 8,5 % 0408.99.10 6,63 ¢/kg 0603.11.00 10,5 % 0603.14.00 8% 0603.19.00 6% 1517.90.21 7,5 % 1602.31.11 11 % 1602.31.12 7,5 % 1602.31.93 5 % mais p 1602.32.11 11 % 1602.32.12 7,5 % 1602.32.93 5 % mais p 1702.40.00 6% 1901.20.11 4% 1901.20.21 3% 2105.00.91 6,5 % 2106.90.31 5% 2106.90.33 5% 2106.90.51 6,68 ¢/kg 2106.90.93 7% 2202.90.41 11 % 2202.90.42 7,5 % 3825.30.20 15,5 % 4015.11.00 15,5 % 4015.19.90 15,5 % 4015.90.90 14 % 4203.21.90 15,5 % C. 16 Canada–Peru Free Trade Numéro tarifaire Taux initi 4203.29.90 15,5 % 4303.10.10 15,5 % 4303.10.20 14 % 4304.00.00 15,5 % 5603.12.30 12,5 % 5603.12.40 13,5 % 5603.12.50 14 % 5603.12.99 14 % 5603.13.30 12,5 % 5603.13.40 13,5 % 5603.13.50 14 % 5603.13.99 14 % 5603.14.30 12,5 % 5603.14.40 13,5 % 5603.14.50 14 % 5603.14.99 14 % 5603.92.60 9% 5603.92.99 14 % 5603.93.60 9% 5603.93.90 14 % 5603.94.50 9% 5603.94.90 14 % 5903.10.19 14 % 5903.10.29 14 % 5903.20.19 14 % 5903.20.23 10 % 5903.20.29 14 % 5903.90.10 14 % 5903.90.29 14 % 6401.10.19 20 % 6401.10.20 20 % 6401.92.12 20 % 6401.92.91 20 % 6401.92.92 20 % 6402.12.20 18 % 6402.12.30 17,5 % 6402.20.19 16 % 6402.20.20 18 % 6402.91.10 17,5 % Accord de libre-échange C Numéro tarifaire Taux initi 6402.91.90 17,5 % 6402.99.10 17,5 % 6403.12.20 18 % 6403.12.30 18 % 6403.40.00 18 % 6406.10.11 15,5 % 6406.10.19 15,5 % 6406.10.90 8% 6505.10.00 15,5 % 6506.99.90 12,5 % 6812.91.00 15,5 % 7019.32.90 15,5 % 7019.90.40 15,5 % 8901.10.00 25 % 8901.20.00 25 % 8901.30.00 25 % 8901.90.10 15 % 8901.90.90 25 % 8902.00.10 25 % 8904.00.00 25 % 8905.10.00 25 % 8905.20.10 20 % 8905.20.20 25 % 8905.90.10 20 % 8905.90.90 25 % 8906.10.00 25 % 8906.90.19 15 % 8906.90.90 25 % 8907.90.90 15,5 % 8908.00.90 15,5 % 9401.90.20 15,5 % 9404.30.00 15,5 % 9404.90.10 14 % 9404.90.90 14 % 9607.20.10 11,5 % C. 16 Canada–Peru Free Trade SCHED (Subsections 4 Tariff Item Description of Goods 1701.91 --Containing added flavouring or colouring matter 1701.91.10 ---If the aggregate quantity of goods of tariff item Nos 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 imported during the period specified in an order of the Governor in Council specifying limits on the aggregate quantity of such goods entitled to the Peru Tariff has not exceeded the aggregate quantity specified in the order during the period 1701.91.90 ---Other 1701.99 --Other 1701.99.10 ---If the aggregate quantity of goods of tariff item Nos 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 imported during the period specified in an order of the Governor in Council specifying limits on the aggregate quantity of such goods entitled to the Peru Tariff has not exceeded the aggregate quantity specified in the order during the period 1701.99.90 ---Other Tariff Item Accord de libre-échange C Description of Goods ---Artificial honey, whether or not mixed with natural honey: 1702.90.21 ----If the aggregate quantity of goods of tariff item No 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 imported during the period specified in an order of the Governor in Council specifying limits on the aggregate quantity of such goods entitled to the Peru Tariff has not exceeded the aggregate quantity specified in the order during the period 1702.90.29 ----Other ---Other sucrose sugars: 1702.90.61 ----If the aggregate quantity of goods of tariff item No 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 imported during the period specified in an order of the Governor in Council specifying limits on the aggregate quantity of such goods entitled to the Peru Tariff has not exceeded the aggregate quantity specified in the order during the period C. 16 Canada–Peru Free Trade Tariff Item Description of Goods 1702.90.69 ----Other 1702.90.70 ---Invert sugar and other sugar syrups containing, afte inversion, reducing sugars weighing 75% or more o the total solid weight and in receptacles where the gross weight exceeds 27 kg, if the aggregate quantit of goods of tariff item Nos. 1701.91.10, 1701.99.10 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 imported during the period specified in an order of the Governor in Council specifying limits on the aggregate quantity of such goods entitled to the Per Tariff has not exceeded the aggregate quantity specified in the order during the period ---Other invert sugars and other sugar syrups: 1702.90.81 ----If the aggregate quantity of goods of tariff item No 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 and 1702.90.81 imported during the period specified in an order of the Governor in Council specifying limits on the aggregate quantity of such goods entitled to the Peru Tariff has not exceeded the aggregate quantity specified in the order during the period 1702.90.89 ----Other Tariff Item Accord de libre-échange C Description of Goods C. 16 Canada–Peru Free Trade ANNE (paragraphes Numéro tarifaire Dénomination des marchandises 1701.91 --Additionnés d’aromatisants ou de colorants 1701.91.10 ---À condition que la quantité totale des marchandises visées aux nos tarifaires 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 et 1702.90.81 importée durant la période indiquée dans un décret d gouverneur en conseil portant sur la limitation de la quantité globale de ces marchandises qui bénéficien du Tarif du Pérou n’ait pas excédé la quantité totale précisée dans le décret durant cette période 1701.91.90 ---Autres 1701.99 --Autres 1701.99.10 ---À condition que la quantité totale des marchandises visées aux nos tarifaires 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 et 1702.90.81 importée durant la période indiquée dans un décret d gouverneur en conseil portant sur la limitation de la quantité globale de ces marchandises qui bénéficien du Tarif du Pérou n’ait pas excédé la quantité totale précisée dans le décret durant cette période Accord de libre-échange C Numéro tarifaire Dénomination des marchandises 1701.99.90 ---Autres ---Succédanés du miel, mélangés ou non avec du miel naturel : 1702.90.21 ----À condition que la quantité totale des marchandise visées aux nos tarifaires 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 et 1702.90.81 importée durant la période indiquée dans un décret d gouverneur en conseil portant sur la limitation de la quantité globale de ces marchandises qui bénéficie du Tarif du Pérou n’ait pas excédé la quantité totale précisée dans le décret durant cette période 1702.90.29 ----Autres ---Autres saccharoses : 1702.90.61 ----À condition que la quantité totale des marchandise Numéro tarifaire C. 16 Canada–Peru Free Trade Dénomination des marchandises visées aux nos tarifaires 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 et 1702.90.81 importée durant la période indiquée dans un décret d gouverneur en conseil portant sur la limitation de la quantité globale de ces marchandises qui bénéficie du Tarif du Pérou n’ait pas excédé la quantité totale précisée dans le décret durant cette période 1702.90.69 ----Autres 1702.90.70 ---Sucre inverti et autres sirops de sucre, contenant, après invertion, des sucres réducteurs qui pèsent 75 % ou plus du poids total des solides, en récipients où l poids brut excède 27 kg à condition que la quantité totale des marchandises visées aux nos tarifaires 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 et 1702.90.81 importée durant la périod indiquée dans un décret du gouverneur en conseil portant sur la limitation de la quantité globale de ce marchandises qui bénéficient du Tarif du Pérou n’a pas excédé la quantité totale précisée dans le décret durant cette période ---Autres sucres invertis et autres sirops du sucre : 1702.90.81 ----À condition que la quantité totale des marchandise visées aux nos tarifaires 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70 et 1702.90.81 importée durant la période indiquée dans un décret d gouverneur en conseil portant sur la limitation de la quantité globale de ces marchandises qui bénéficie du Tarif du Pérou n’ait pas excédé la quantité totale précisée dans le décret durant cette période Accord de libre-échange C Numéro tarifaire Dénomination des marchandises 1702.90.89 ----Autres C. 16 Canada–Peru Free Trade SCHEDULE 5 (Section 51) SCHEDULE (Subsections 19.1(1) and (2)) TREATIES 1. The Agreement on Labour Cooperation between Canada and the Republic of Peru, signed on May 29, 2008, as amended from time to time in accordance with Article 30 of that Agreement. Accord de libre-échange C SCHED (Subsectio Tariff Item 1701.91.10 1701.91.90 1701.99.10 1701.99.90 Tariff Item 1702.90.21 1702.90.29 1702.90.61 C. 16 Canada–Peru Free Trade Tariff Item 1702.90.69 1702.90.70 1702.90.81 1702.90.89 Accord de libre-échange C Tariff Item C. 16 Canada–Peru Free Trade Accord de libre-échange C ANNE (paragraph Numéro tarifaire 1701.91.10 1701.91.90 1701.99.10 1701.99.90 C. 16 Numéro tarifaire 1702.90.21 1702.90.29 1702.90.61 Canada–Peru Free Trade Numéro tarifaire 1702.90.69 1702.90.70 1702.90.81 Accord de libre-échange C C. 16 Numéro tarifaire 1702.90.89 Canada–Peru Free Trade Accord de libre-échange C SCHED (Subsectio Tariff Item 0208.40.10 0208.40.90 1516.10.10 1516.10.90 Tariff Item 1603.00.11 1603.00.19 2301.10.10 C. 16 Canada–Peru Free Trade Tariff Item 2301.10.90 2309.90.37 8901.10.10 8901.10.90 Accord de libre-échange C Tariff Item 8901.20.10 8901.20.90 8901.90.91 C. 16 Canada–Peru Free Trade Tariff Item 8901.90.99 8906.90.91 8906.90.99 Accord de libre-échange C C. 16 Canada–Peru Free Trade ANNE (paragraph Numéro tarifaire 0208.40.10 0208.40.90 1516.10.10 1516.10.90 Numéro tarifaire 1603.00.11 1603.00.19 2301.10.10 Accord de libre-échange C C. 16 Numéro tarifaire 2301.10.90 2309.90.37 8901.10.10 Canada–Peru Free Trade Numéro tarifaire 8901.10.90 8901.20.10 8901.20.90 8901.90.91 Accord de libre-échange C C. 16 Numéro tarifaire 8901.90.99 8906.90.91 8906.90.99 Canada–Peru Free Trade Accord de libre-échange C Numéro tarifaire Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 STATUTES OF CANADA 2009 CHAPTER 17 An Act to amend the Canada National Parks Act to enlarge Nahanni National Park Reserve of Canada ASSENTED TO 18th JUNE, 2009 BILL C-38 SUMMARY This enactment amends the Canada National Parks Act to enlarge Nahanni National Park Reserve of Canada while accommodating certain third party interests in the expansion area. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 57-58 ELIZABETH II —————— CHAPTER 17 An Act to amend the Canada National Parks Act to enlarge Nahanni National Park Reserve of Canada [Assented to 18th June, 2009] Preamble Whereas the expansion of Nahanni National Park Reserve of Canada is an opportunity to conserve a wilderness area of Canadian and international significance; Whereas the expansion of the Park Reserve will protect the waters flowing into the South Nahanni River, the ecology and wildlife resources of the area and its globally significant karst landscape; Whereas the Park Reserve was among the first World Heritage Sites designated under the UNESCO World Heritage Convention and its expansion will contribute to the Convention’s objective of preserving outstanding examples of the world’s common heritage; And whereas the Dehcho First Nations, having a treaty relationship with Canada, have worked collaboratively with the Parks Canada Agency to protect the greater Nahanni ecosystem, and support the expansion of the Park Reserve; Now therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: C. 17 Canada Nat SHORT TITLE Short title 1. This Act may be cited as An Act Creating One of the World’s Largest National Park Reserves. 2000, c. 32 CANADA NATIONAL PARKS ACT 2. Subsection 15(2) of the Canada National Parks Act is replaced by the following: Use of lands (2) Public lands in a park in which a right or interest is held for any purpose under this Act remain part of the park and, if those lands cease to be used for that purpose, the right or interest reverts to the Crown. 3. Section 24 of the Act is amended by adding the following after subsection (3): Contravention of land use permit or water licence in Nahanni (4) Every person who contravenes (a) a condition of a land use permit or water licence issued under subsection 41.1(3) or (4), is guilty of an offence and liable on summary conviction (i) in the case of a land use permit or type B water licence, to a fine not exceeding $15,000 or to imprisonment for a term not exceeding six months, or to both, or (ii) in the case of a type A water licence, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both; (b) an order or direction given by a superintendent, park warden or enforcement officer under subsection 41.1(3) or (4), is guilty of an offence and liable on summary conviction (i) in the case of an order in relation to a land use permit, to a fine not exceeding $15,000 or to imprisonment for a term not exceeding six months, or to both, or Parcs nationau (ii) in the case of a direction in relation to a water licence, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both. 4. Subsection 25(1) of the Act is replaced by the following: Trafficking in wildlife, etc. 25. (1) Except as permitted by this Act or the regulations, no person shall traffic in any wild mammal, amphibian, reptile, bird, fish or invertebrate, any part or an egg or embryo thereof, any plant or part of a plant, or any other naturally occurring object or product of natural phenomena, taken in or from a park. 5. (1) Subsection 26(1) of the Act is replaced by the following: Poaching and trafficking 26. (1) Except as permitted by this Act or the regulations, no person shall hunt, traffic in or possess, in a park, any wildlife of a species named in Part 1 of Schedule 3, or traffic in or possess such wildlife taken from a park. (2) Subsection 26(3) of the Act is replaced by the following: Poaching and trafficking (3) Except as permitted by this Act or the regulations, no person shall hunt, traffic in or possess, in a park, any wildlife of a species named in Part 2 of Schedule 3, or traffic in or possess such wildlife taken from a park. 6. Section 39 of the Act is replaced by the following: Application of Act to reserves 39. Subject to sections 40 to 41.1, this Act applies to a park reserve as if it were a park. 7. (1) The Act is amended by adding the following after section 41: C. 17 Definition of “expansion area” 41.1 (1) In this section, “expansion area” means the lands described in Parts II and III of the description of Nahanni National Park Reserve of Canada in Schedule 2. Powers of Minister re expansion area (2) The Minister may enter into leases or licences of occupation of, and easements over, public lands situated in the expansion area for the purposes of Canada Nat (a) a mining access road leading to the Prairie Creek Area, as that Area is described in Part II of the description of Nahanni National Park Reserve of Canada in Schedule 2, including the sites of storage and other facilities connected with that road; or (b) a mining access road following the existing route from Tungsten to Howard’s Pass and any alteration to or deviation from that route, including the sites of storage and other facilities connected with that road. Land use permits (3) The Minister may issue, amend, renew, suspend, cancel, and approve the assignment of, permits and authorizations for the use of lands in the expansion area for the purposes of the mining access roads referred to in subsection (2) and, in relation to such permits and authorizations, subsection 31(3) and sections 59, 62, 71 and 85 to 87 of the Mackenzie Valley Resource Management Act and the regulations made under that Act — other than any regulations respecting time limits and public hearings — apply, with any adaptations that may be necessary, as if the references in those provisions to the federal Minister or a board were references to the Minister responsible for the Parks Canada Agency and the references in those provisions to an inspector were references to the superintendent of the Park Reserve, a park warden or an enforcement officer designated for the purposes of this subsection. Water licences (4) The Minister may issue, amend, renew, suspend, cancel, and approve the assignment of, licences for the use of waters in the expansion area for the purposes of the mining access roads referred to in subsection (2) and, in relation to such licences, subsections 14(1), (4), (5) and (7) Parcs nationau and sections 15, 16 to 19, 32 and 36, subsections 37(1), (3) and (4) and sections 38, 39, 43 and 44 of the Northwest Territories Waters Act and the regulations made under that Act apply, with any adaptations that may be necessary, as if the references in those provisions to the Minister or the Board were references to the Minister responsible for the Parks Canada Agency and the references in those provisions to an inspector were references to the superintendent of the Park Reserve, a park warden or an enforcement officer designated for the purposes of this subsection. Outfitter licences (5) Outfitter licences issued under the Wildlife Act, R.S.N.W.T. 1988, c. W-4 that are in effect on the coming into force of this section in respect of public lands located in the expansion area, continue in effect according to their terms and may be renewed for periods ending not later than 10 years after the day on which this section comes into force, but no new outfitter licences may be issued in respect of those lands. Definition of “guide” (6) In subsections (7) and (8), “guide” means a person who holds a guide licence issued in accordance with the Wildlife Act, R.S.N.W.T. 1988, c. W-4 and who is, or is employed by, the holder of an outfitter licence referred to in subsection (5). Permitted hunting (7) A guide or a person accompanied by a guide may hunt, within the meaning of section 26, and may possess, within the meaning of section 26, or transport any wild animal or any part of one in the expansion area, in accordance with the Wildlife Act, R.S.N.W.T. 1988, c. W-4 and the applicable outfitter licence. Regulations (8) The Governor in Council may make regulations respecting the activities of guides, persons accompanied by guides and holders of outfitter licences in the expansion area, including regulations (a) respecting the hunting of wild animals, including with the use of firearms; C. 17 Canada Nat (b) authorizing the removal and disposal of any equipment or wild animals left by any person in contravention of the regulations or the Wildlife Act, R.S.N.W.T. 1988, c. W-4, and providing for the recovery of expenses incurred in their removal or disposal; and (c) authorizing the superintendent (i) to close areas to hunting for the purposes of management of the Park Reserve, public safety or the conservation of natural resources, (ii) to establish limits on the wild animals that may be harvested in any period, or to vary any such limits established by the regulations or under the Wildlife Act, R.S.N.W.T. 1988, c. W-4, for purposes of conservation, (iii) to prohibit or restrict the use of equipment in the expansion area for the purpose of protecting natural resources, and (iv) to suspend or revoke an outfitter licence or a guide licence, to the extent that it applies in the expansion area, for failure to comply with this Act or the regulations, the Wildlife Act, R.S.N.W.T. 1988, c. W-4 or the regulations under that Act, or the terms and conditions of the licence. Creation of park (9) For the purposes of subsections 5(1) and 6(2), leases, licences of occupation, easements, land use permits and authorizations and water licences relating to public lands in the expansion area are deemed not to encumber or affect title to those lands, but if those lands become part of a park they continue in effect according to their terms and conditions. Creation of park (10) After any public lands within the expansion area become a park, this section continues to apply in respect of those lands with any adaptations that may be necessary. Repeal (2) Subsections 41.1(5) to (8) of the Act are repealed. Parcs nationau 8. Schedule 2 to the Act is amended by replacing “(Sections 2, 6, 7 and 41)” after the heading “SCHEDULE 2” with “(Sections 2, 6, 7, 41 and 41.1)”. 9. The description of Nahanni National Park Reserve of Canada in Schedule 2 to the Act is replaced by the description set out in the schedule to this Act. TRANSITIONAL PROVISIONS Transitional 10. Leases of public lands situated in the expansion area — referred to in subsection 41.1(1) of Canada National Parks Act, as enacted by subsection 7(1) — that are in effect on the day on which this Act receives royal assent continue in effect in accordance with their terms and conditions as if they had been issued under that Act, and those terms and conditions prevail in the event of a conflict or inconsistency with that Act. Transitional 11. On the day on which this Act receives royal assent, the Minister responsible for the Parks Canada Agency shall issue permits, authorizations and licences in accordance with section 41.1 of the Canada National Parks Act, as enacted by subsection 7(1), in replacement of the existing land use permits and authorizations issued under the Mackenzie Valley Resource Management Act and the existing water licences issued under the Northwest Territories Waters Act and containing the same terms and conditions — with any adaptations that are necessary — to the extent that they apply in respect of the mining access roads situated in the expansion area referred to in that section including the sites of storage and other facilities connected with those roads. C. 17 Canada Nat COORDINATING AMENDMENTS Bill C-16 12. (1) Subsections (2) to (7) apply if Bill C-16, introduced in the 2nd session of the 40th Parliament and entitled the Environmental Enforcement Act (the “other Act”), receives royal assent. (2) If section 3 of this Act comes into force before section 33 of the other Act, then, on the day on which that section 33 comes into force, (a) subsection 24(4) of the Canada National Parks Act is repealed; and (b) the portion of subsection 24(2) of the Canada National Parks Act before paragraph (a) is replaced by the following: Offence (2) Every person who contravenes any provision of the regulations, other than a provision designated by regulations made under paragraph 16(1)(y), any condition of a permit, licence or other authorizing instrument issued under the regulations or under subsection 41.1(3) and (4), or any order or direction given by a superintendent, park warden or enforcement officer under subsection 41.1(3) or (4), is guilty of an offence and liable (3) If section 33 of the other Act comes into force before section 3 of this Act, then (a) that section 3 is deemed never to have come into force and is repealed; and (b) the portion of subsection 24(2) of the Canada National Parks Act before paragraph (a) is replaced by the following: Offence (2) Every person who contravenes any provision of the regulations, other than a provision designated by regulations made under paragraph 16(1)(y), any condition of a permit, licence or other authorizing instrument issued under the regulations or under subsection 41.1(3) and (4), or any order or direction given by a superintendent, park warden or enforcement officer under subsection 41.1(3) or (4), is guilty of an offence and liable Parcs nationau (4) If section 3 of this Act comes into force on the same day as section 33 of the other Act, then that section 33 is deemed to have come into force before that section 3 and subsection (3) applies as a consequence. (5) On the first day on which both section 4 of this Act and section 34 of the other Act are in force, subsection 25(1) of the Canada National Parks Act is replaced by the following: Trafficking in wild animals, etc. 25. (1) Except as permitted by this Act or the regulations, no person shall traffic in any wild animal, whether living or dead, at any developmental stage, in any part of or any derivative of, or in any egg or embryo of, a wild animal — or in any plant or part of a plant or in any other naturally occurring object or product of natural phenomena — taken in or from a park. (6) On the first day on which both subsection 5(1) of this Act and section 35 of the other Act are in force, subsection 26(1) of the Canada National Parks Act is replaced by the following: Hunting, trafficking or possessing 26. (1) Except as permitted by this Act or the regulations, no person shall (a) hunt, in a park, any wild animal of a species named in Part 1 of Schedule 3; (b) traffic in or possess, in a park, any wild animal of a species named in Part 1 of Schedule 3, whether living or dead, at any developmental stage, or any egg or embryo, or any part or derivative, of any such animal; or (c) traffic in or possess any wild animal of a species named in Part 1 of Schedule 3, whether living or dead, at any developmental stage, taken from a park, or any egg or embryo, or any part or derivative, of any such animal that was taken from a park. C. 17 Canada Nat (7) On the first day on which both subsection 5(2) of this Act and section 35 of the other Act are in force, subsection 26(3) of the Canada National Parks Act is replaced by the following: Hunting, trafficking or possessing (3) Except as permitted by this Act or the regulations, no person shall (a) hunt, in a park, any wild animal of a species named in Part 2 of Schedule 3; (b) traffic in or possess, in a park, any wild animal of a species named in Part 2 of Schedule 3, whether living or dead, at any developmental stage, or any egg or embryo, or any part or derivative, of any such animal; or (c) traffic in or possess any wild animal of a species named in Part 2 of Schedule 3, whether living or dead, at any developmental stage, taken from a park, or any egg or embryo, or any part or derivative, of any such animal that was taken from a park. COMING INTO FORCE 10 years after assent 13. Subsection 7(2) comes into force on the day that is 10 years after the day on which this Act receives royal assent. Parcs nationaux du SCHEDULE (Section 9) NAHANNI NATIONAL PARK RESERVE OF CANADA In the Northwest Territories; All of Parts I, II and III containing an area of approximately 30 000 square kilometres and described as follows: Part I Along the South Nahanni River: All that parcel being more particularly described as follows, all topographic features hereinafter referred to being according to the first edition of The Twisted Mountain map sheet number 95 G/4 of the National Topographic System, produced at a scale of 1:50,000 by the Department of Energy, Mines and Resources at Ottawa and according to the second editions of the Flat River, Virginia Falls and Sibbeston Lake map sheets and the first edition of the Glacier Lake Map sheet, numbers 95E, 95F, 95G and 95L respectively of the National Topographic System, produced at a scale of 1:250,000, by the Army Survey Establishment, R.C.E., at Ottawa: Commencing at National Topographic Survey Monument 63-A-152 being a brass plug located on Yohin Ridge, at approximate latitude 61°12′07″ and approximate longitude 123°50′51″; Thence southeasterly in a straight line to the more southwesterly of two peaks having an elevation of about 1432.6 metres, at approximate latitude 61°06′55″ and approximate longitude 123°44′55″; Thence southeasterly in a straight line to a peak having an elevation of about 1005.8 metres, at approximate latitude 61°04′45″ and approximate longitude 123°42′20″; Thence northeasterly in a straight line to latitude 61°05′45″ and longitude 123°39′00″; Thence northerly in a straight line, across the South Nahanni River, to the summit of Twisted Mountain, at approximate latitude 61°12′30″ and approximate longitude 123°36′30″; Thence northwesterly in a straight line to latitude 61°18′00″ and longitude 123°46′00″; Thence westerly in a straight line to latitude 61°17′00″ and longitude 123°56′00″; Thence northwesterly in a straight line to a peak at approximate latitude 61°24′00″ and approximate longitude 124°35′00″, said peak being approximately at the spot elevation 6,105 feet (1860.8 metres) shown on said Virginia Falls map sheet; Thence westerly in a straight line to latitude 61°24′00″ and longitude 124°51′00″; Thence northwesterly in a straight line to Army Survey Establishment Monument “Scrub”, being a cairn at approximate latitude 61°37′20″ and approximate longitude 125°18′03″; Thence northwesterly in a straight line to Army Survey Establishment Monument “Lock”, being a cairn at approximate latitude 61°45′26″ and approximate longitude 125°43′41″; C. 17 Canada National P Thence northwesterly in a straight line to Army Survey Establishment Monument “Next”, being a cairn at approximate latitude 61°53′09″ and approximate longitude 126°14′11″; Thence westerly in a straight line to Army Survey Establishment Monument “Dip”, being a cairn at approximate latitude 61°54′39″ and approximate longitude 126°35′40″; Thence northwesterly in a straight line to Army Survey Establishment Monument “Hop”, being a cairn at approximate latitude 62°00′31″ and approximate longitude 126°57′27″; Thence westerly in a straight line to Army Survey Establishment Monument “Flag”, being a bronze bolt at approximate latitude 61°58′14″ and approximate longitude 127°23′31″; Thence southerly in a straight line to Army Survey Establishment Monument “Skip”, being a cairn at approximate latitude 61°54′43″ and approximate longitude 127°24′03″; Thence southerly in a straight line to a peak at approximate latitude 61°50′00″ and approximate longitude 127°25′30″, the last aforesaid peak being approximately at the position indicated by the spot elevation 8,822 feet (2688.9 metres) shown on said Flat River map sheet; Thence southwesterly in a straight line to a peak having an elevation of about 2438.4 metres, at approximate latitude 61°45′40″ and approximate longitude 127°30′00″, the last aforesaid peak being on the height of land forming the southwesterly limit of the watershed area of Hole-in-the-Wall Creek; Thence in general southeasterly and easterly directions along the last aforesaid height of land to a peak at approximate latitude 61°45′30″ and approximate longitude 127°17′00″, the last aforesaid peak being approximately at the position indicated by the spot elevation 8,302 feet (2530.5 metres) shown on said Flat River map sheet; Thence easterly in a straight line to a peak having an elevation of about 1524 metres, at approximate latitude 61°46′00″ and approximate longitude 127°06′40″; Thence northerly in a straight line to a peak having an elevation of about 2286 metres, at approximate latitude 61°49′00″ and approximate longitude 127°05′00″; Thence easterly in a straight line to Army Survey Establishment Monument “Don”, being a cairn at approximate latitude 61°49′24″ and approximate longitude 126°59′17″, the last aforesaid Monument being approximately at the position indicated by the spot elevation 7,401 feet (2255.8 metres) shown on said Flat River map sheet; Thence easterly in a straight line to Army Survey Establishment Monument “Cross”, being a cairn at approximate latitude 61°50′26″ and approximate longitude 126°40′00″; Thence southeasterly in a straight line to Army Survey Establishment Monument “Saddle”, being a cairn at approximate latitude 61°46′08″ and approximate longitude 126°26′27″; Thence southeasterly in a straight line to Army Survey Establishment Monument “Mesa”, being a cairn at approximate latitude 61°42′34″ and approximate longitude 126°15′16″; Parcs nationaux du Thence southeasterly in a straight line to Army Survey Establishment Monument “Andy”, being a cairn at approximate latitude 61°38′11″ and approximate longitude 126°10′52″, the last aforesaid Monument being approximately at the position indicated by the spot elevation 5,022 feet (1530.7 metres) shown on said Flat River map sheet; Thence southwesterly in a straight line to a peak at approximate latitude 61°32′20″ and approximate longitude 126°42′40″, the last aforesaid peak being approximately at the position indicated by the spot elevation 6,687 feet (2038.2 metres) shown on said Flat River map sheet; Thence southeasterly in a straight line to a peak having an elevation of about 1524 metres, at approximate latitude 61°21′30″ and approximate longitude 126°35′20″; Thence northeasterly in a straight line to National Topographic Survey Monument 63-A-9, being a brass plug at approximate latitude 61°28′12″ and approximate longitude 126°18′39″; Thence southeasterly in a straight line to a peak at approximate latitude 61°22′00″ and approximate longitude 125°49′00″, the last aforesaid peak being approximately at the position indicated by the spot elevation 4,511 feet (1375 metres) shown on said Virginia Falls map sheet; Thence easterly in a straight line to a peak at approximate latitude 61°26′30″ and approximate longitude 125°21′00″, the last aforesaid peak being approximately at the position indicated by the spot elevation 4,497 feet (1370.7 metres) shown on said Virginia Falls map sheet; Thence easterly in a straight line to Army Survey Establishment Monument “Nubby”, being a cairn at approximate latitude 61°24′05″ and approximate longitude 125°04′19″; Thence southeasterly in a straight line to National Topographic Survey Monument 63-A-107, being a brass plug at approximate latitude 61°16′38″ and approximate longitude 124°42′32″; Thence southeasterly in a straight line to Army Survey Establishment Monument “Mary”, being a cairn at approximate latitude 61°08′04″ and approximate longitude 124°34′02″; Thence northeasterly in a straight line to latitude 61°16′00″ and longitude 124°09′00″; Thence southeasterly in a straight line to latitude 61°13′00″ and longitude 124°00′00″; Thence easterly in a straight line to the point of commencement; all co-ordinates described above being Geodetic, referred to the North American Datum of 1927; said parcel containing about 4766 square kilometres. C. 17 Canada National P Part II Commencing at a point on a southerly boundary of the Sahtu Settlement Area (as described in the Sahtu Dene and Metis Comprehensive Land Claim Agreement, Volume 1, Appendix “A”) at longitude 127°23′09″ West and approximate latitude 62°37′00″ North; Thence southeasterly in a straight line to a point at latitude 62°31′09″ North and longitude 127°12′ 31″ West; Thence southeasterly in a straight line to a point at latitude 62°24′18″ North and longitude 127°06′50″ West; Thence southwesterly in a straight line to a point at latitude 62°17′20″ North and longitude 127°11′41″ West; Thence southeasterly in a straight line to a point at latitude 62°16′22″ North and longitude 127°08′56″ West; Thence northeasterly in a straight line to a point at latitude 62°18′20″ North and longitude 127°06′07″ West; Thence southeasterly in a straight line to a point at latitude 62°14′38″ North and longitude 126°53′09″ West; Thence northeasterly in a straight line to a point at latitude 62°15′10″ North and longitude 126°47′11″ West; Thence southerly in a straight line to a point at latitude 62°13′38″ North and longitude 126°47′06″ West; Thence easterly in a straight line to a point at latitude 62°13′39″ North and longitude 126°45′28″ West; Thence northeasterly in a straight line to a point at latitude 62°16′19″ North and longitude 126°43′33″ West; Thence northeasterly in a straight line to a point at latitude 62°17′02″ North and longitude 126°41′23″ West; Thence northwesterly in a straight line to a point at latitude 62°18′21″ North and longitude 126°42′29″ West; Thence northeasterly in a straight line to a point at latitude 62°18′45″ North and longitude 126°41′00″ West; Thence southeasterly in a straight line to a point at latitude 62°18′14″ North and longitude 126°39′57″ West; Thence northeasterly in a straight line to a point at latitude 62°18′52″ North and longitude 126°34′21″ West; Parcs nationaux du Thence southeasterly in a straight line to a point at latitude 62°17′50″ North and longitude 126°27′16″ West; Thence northeasterly in a straight line to a point at latitude 62°18′07″ North and longitude 126°23′27″ West; Thence southerly in a straight line to a point at latitude 62°15′32″ North and longitude 126°24′12″ West; Thence southeasterly in a straight line to a point at latitude 62°14′24″ North and longitude 126°21′06″ West; Thence easterly in a straight line to a point at latitude 62°14′31″ North and longitude 126°18′52″ West; Thence southeasterly in a straight line to a point at latitude 62°11′31″ North and longitude 126°13′02″ West; Thence northeasterly in a straight line to a point at latitude 62°12′01″ North and longitude 126°04′48″ West; Thence southeasterly in a straight line to a point at latitude 62°10′37″ North and longitude 126°03′11″ West; Thence easterly in a straight line to a point at latitude 62°10′44″ North and longitude 125°59′05″ West; Thence southeasterly in a straight line to a point at latitude 62°09′40″ North and longitude 125°53′52″ West; Thence northeasterly in a straight line to a point at latitude 62°10′52″ North and longitude 125°46′43″ West; Thence southeasterly in a straight line to a point at latitude 62°08′55″ North and longitude 125°41′41″ West; Thence southerly in a straight line to a point at latitude 62°07′01″ North and longitude 125°42′17″ West; Thence easterly in a straight line to a point at latitude 62°06′48″ North and longitude 125°31′41″ West; Thence southeasterly in a straight line to a point at latitude 62°02′36″ North and longitude 125°04′24″ West; Thence southerly in a straight line to a point at latitude 62°00′49″ North and longitude 125°05′01″ West; Thence southeasterly in a straight line to a point at latitude 61°58′45″ North and longitude 125°02′37″ West; Thence southeasterly in a straight line to a point at latitude 61°55′32″ North and longitude 124°59′08″ West; Thence easterly in a straight line to a point at latitude 61°55′24″ North and longitude 124°54′35″ West; Thence northwesterly in a straight line to a point at latitude 61°58′14″ North and longitude 124°55′03″ West; Thence northeasterly in a straight line to a point at latitude 62°00′07″ North and longitude 124°49′46″ West; Thence southeasterly in a straight line to a point at latitude 61°59′53″ North and longitude 124°47′14″ West; Thence southeasterly in a straight line to a point at latitude 61°58′39″ North and longitude 124°46′10″ West; Thence northeasterly in a straight line to a point at latitude 62°00′45″ North and longitude 124°39′48″ West; C. 17 Canada National P Thence southeasterly in a straight line to a point at latitude 61°59′22″ North and longitude 124°38′05″ West; Thence northeasterly in a straight line to a point at latitude 62°00′26″ North and longitude 124°33′00″ West; Thence easterly in a straight line to a point at latitude 62°00′38″ North and longitude 124°20′20″ West; Thence northeasterly in a straight line to a point at latitude 62°01′24″ North and longitude 124°17′19″ West; Thence southeasterly in a straight line to a point at latitude 62°00′58″ North and longitude 124°13′44″ West; Thence northeasterly in a straight line to a point at latitude 62°01′30″ North and longitude 124°11′24″ West; Thence northeasterly in a straight line to a point at latitude 62°04′23″ North and longitude 124°06′41″ West; Thence southeasterly in a straight line to a point at latitude 62°01′26″ North and longitude 124°04′20″ West; Thence southeasterly in a straight line to a point at latitude 61°53′51″ North and longitude 123°56′28″ West; Thence southeasterly in a straight line to a point at latitude 61°49′36″ North and longitude 123°52′37″ West; Thence southeasterly in a straight line to a point at latitude 61°43′59″ North and longitude 123°35′04″ West; Thence southerly in a straight line to a point at latitude 61°27′05″ North and longitude 123°36′23″ West; Thence southeasterly in a straight line to a point at latitude 61°20′26″ North and longitude 123°33′01″ West; Thence southeasterly in a straight line to a point at latitude 61°15′49″ North and longitude 123°32′19″ West; Thence southwesterly in a straight line to a point on the boundary of the parcel described in Part I, at latitude 61°13′41″ North and approximate longitude 123°38′34″ West; Thence southeasterly and southwesterly along the Part I parcel boundary to the most southerly corner of the parcel described in Part I, described as “a peak having an elevation of about 1005.8 metres” at approximate latitude 61°04′44″ North and approximate longitude 123°42′26″ West; Thence northwesterly in a straight line to a point at latitude 61°05′42″ North and longitude 123°46′52″ West; Thence southwesterly in a straight line to a point at latitude 61°03′29″ North and longitude 123°52′16″ West; Thence southwesterly in a straight line to a point at latitude 61°00′29″ North and longitude 123°56′42″ West; Thence southwesterly in a straight line to a point at latitude 60°56′06″ North and longitude 124°01′12″ West; Thence southerly in a straight line to a point at latitude 60°53′26″ North and longitude 124°01′16″ West; Thence northwesterly in a straight line to a point at latitude 60°54′22″ North and longitude 124°13′08″ West; Parcs nationaux du Thence northwesterly in a straight line to a point at latitude 60°55′16″ North and longitude 124°17′53″ West; Thence northwesterly in a straight line to a point at latitude 60°56′31″ North and longitude 124°21′40″ West; Thence westerly in a straight line to a point at latitude 60°56′28″ North and longitude 124°24′00″ West; Thence southwesterly in a straight line to a point at latitude 60°54′47″ North and longitude 124°26′31″ West; Thence southwesterly in a straight line to a point at latitude 60°52′37″ North and longitude 124°27′43″ West; Thence southwesterly in a straight line to a point at latitude 60°50′28″ North and longitude 124°28′08″ West; Thence westerly in a straight line to a point on the Yukon/Northwest Territories Boundary at latitude 60°50′48″ North and approximate longitude 124°32′24″ West; Thence northerly, westerly and northwesterly along the Yukon/Northwest Territories Boundary to its intersection with latitude 61°17′50″ North at approximate longitude 127°03′10″ West; Thence northeasterly in a straight line to a point at latitude 61°19′01″ North and longitude 126°59′17″ West; Thence northeasterly in a straight line to a point at latitude 61°20′13″ North and longitude 126°56′10″ West; Thence northeasterly in a straight line to a point at latitude 61°21′18″ North and longitude 126°55′44″ West; Thence northerly in a straight line to a point at latitude 61°22′34″ North and longitude 126°55′55″ West; Thence northwesterly in a straight line to a point at latitude 61°23′31″ North and longitude 126°56′24″ West; Thence northwesterly in a straight line to a point at latitude 61°24′43″ North and longitude 126°57′22″ West; Thence northerly in a straight line to a point at latitude 61°25′41″ North and longitude 126°57′40″ West; Thence northwesterly in a straight line to a point at latitude 61°27′25″ North and longitude 126°59′06″ West; Thence northwesterly in a straight line to a point at latitude 61°28′41″ North and longitude 127°01′30″ West; Thence northwesterly in a straight line to a point at latitude 61°30′29″ North and longitude 127°04′05″ West; Thence northwesterly in a straight line to a point at latitude 61°31′34″ North and longitude 127°06′32″ West; Thence northwesterly in a straight line to a point at latitude 61°32′31″ North and longitude 127°09′00″ West; Thence northerly in a straight line to a point on the southerly bank of the Flat River at longitude 127°09′00″ West and approximate latitude 61°32′50″ North; Thence westerly and northerly along the southerly bank of said river to its intersection with longitude 127°41′53″ West, at approximate latitude 61°43′32″ North; C. 17 Canada National P Thence northerly in a straight line to a point at latitude 61°44′24″ North and longitude 127°42′18″ West; Thence northeasterly in a straight line to a point at latitude 61°45′32″ North and longitude 127°41′31″ West; Thence northwesterly in a straight line to a point at latitude 61°47′49″ North and longitude 127°42′22″ West; Thence northwesterly in a straight line to a point at latitude 61°49′23″ North and longitude 127°45′22″ West; Thence northwesterly in a straight line to a point at latitude 61°50′49″ North and longitude 127°50′46″ West; Thence northwesterly in a straight line to a point at latitude 61°52′19″ North and longitude 127°54′49″ West; Thence northwesterly in a straight line to a point at latitude 61°53′43″ North and longitude 127°56′18″ West; Thence northwesterly in a straight line to a point at latitude 61°54′03″ North and longitude 127°58′50″ West; Thence northeasterly in a straight line to a point at latitude 61°56′53″ North and longitude 127°57′37″ West; Thence northwesterly in a straight line to a point at latitude 62°00′13″ North and longitude 127°59′56″ West; Thence southwesterly in a straight line to a point at latitude 61°59′53″ North and longitude 128°02′47″ West; Thence westerly in a straight line to a point at latitude 61°59′52″ North and longitude 128°04′11″ West; Thence northwesterly in a straight line to a point at latitude 62°01′15″ North and longitude 128°06′29″ West; Thence northwesterly in a straight line to a point at latitude 62°03′07″ North and longitude 128°08′35″ West; Thence northeasterly in a straight line to a point at latitude 62°05′31″ North and longitude 128°07′34″ West; Thence northwesterly in a straight line to a point at latitude 62°07′19″ North and longitude 128°12′22″ West; Thence northwesterly in a straight line to a point at latitude 62°08′42″ North and longitude 128°17′31″ West; Thence westerly in a straight line to a point at latitude 62°08′53″ North and longitude 128°21′40″ West; Thence southwesterly in a straight line to a point at latitude 62°08′24″ North and longitude 128°25′34″ West; Thence southwesterly in a straight line to a point at latitude 62°06′43″ North and longitude 128°30′14″ West; Thence southwesterly in a straight line to a point on the Yukon/Northwest Territories Boundary at latitude 62°06′17″ North and approximate longitude 128°31′22″ West; Thence northerly and westerly along the Yukon/Northwest Territories Boundary to its intersection with longitude 128°41′50″ West and approximate latitude 62°07′51″ North; Thence northwesterly in a straight line to a point on a southerly boundary of the Sahtu Settlement Area at longitude 128°47′54″ West and approximate latitude 62°13′42″ North; Parcs nationaux du Thence northeasterly along the southerly boundary of the Sahtu Settlement Area to the point of commencement; Saving and Excepting thereout and therefrom, all those lands within Part I and those described as the Prairie Creek Area being described as follows: Commencing at a point at latitude 61°44′00″ North and longitude 124°45′55″ West; Thence southeasterly in a straight line to a point at latitude 61°43′08″ North and longitude 124°44′42″ West; Thence easterly in a straight line to a point at latitude 61°42′59″ North and longitude 124°42′40″ West; Thence southerly in a straight line to a point at latitude 61°41′59″ North and longitude 124°43′04″ West; Thence southerly in a straight line to a point at latitude 61°41′06″ North and longitude 124°43′15″ West; Thence southeasterly in a straight line to a point at latitude 61°40′15″ North and longitude 124°42′45″ West; Thence southeasterly in a straight line to a point at latitude 61°38′07″ North and longitude 124°40′32″ West; Thence southerly in a straight line to a point at latitude 61°36′47″ North and longitude 124°40′33″ West; Thence southwesterly in a straight line to a point at latitude 61°29′14″ North and longitude 124°44′27″ West; Thence southwesterly in a straight line to a point at latitude 61°29′00″ North and longitude 124°45′45″ West; Thence southwesterly in a straight line to a point at latitude 61°27′37″ North and longitude 124°48′27″ West; Thence westerly in a straight line to a point at latitude 61°27′37″ North and longitude 124°49′24″ West; Thence northwesterly in a straight line to a point at latitude 61°28′51″ North and longitude 124°50′26″ West; Thence northwesterly in a straight line to a point at latitude 61°29′56″ North and longitude 124°50′58″ West; Thence northwesterly in a straight line to a point at latitude 61°30′53″ North and longitude 124°52′52″ West; Thence northwesterly in a straight line to a point at latitude 61°31′14″ North and longitude 124°56′04″ West; Thence northwesterly in a straight line to a point at latitude 61°31′49″ North and longitude 124°56′24″ West; Thence northwesterly in a straight line to a point at latitude 61°35′16″ North and longitude 124°57′05″ West; Thence northeasterly in a straight line to a point at latitude 61°41′28″ North and longitude 124°54′30″ West; Thence northeasterly in a straight line to the point of commencement. Said Prairie Creek Area containing an area of approximately 300 square kilometres. C. 17 Canada National P The remainder of the parcel under Part II containing an area of approximately 25 200 square kilometres. All coordinates in Part II are referred to the 1983 North American Datum, Canadian Spatial Reference System (NAD83 CSRS) and any references to straight lines mean points joined directly on the NAD83 Universal Transverse Mercator (UTM) projection plane surface. Part III Commencing at the point of intersection of the Yukon/Northwest Territories Boundary with the southerly boundary of the Sahtu Settlement Area at approximate latitude 62°06′39″ North and approximate longitude 129°10′00″ West; Thence northeasterly along the southerly boundary of the Sahtu Settlement Area to a point on the southerly boundary of the Sahtu Settlement Area at longitude 128°59′34″ West and approximate latitude 62°10′00″ North; Thence southeasterly in a straight line to a point on the Yukon/Northwest Territories Boundary at longitude 128°53′58″ West and approximate latitude 62°07′18″ North; Thence westerly, southerly, northerly following said boundary to the point of commencement. Said parcel containing an area of approximately 44 square kilometres. All coordinates in Part III are referred to the 1983 North American Datum, Canadian Spatial Reference System (NAD83 CSRS) and any references to straight lines mean points joined directly on the NAD83 Universal Transverse Mercator (UTM) projection plane surface. Published under authority of the Speaker of the House of Commons Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: (613) 941-5995 or 1-800-635-7943 Fax: (613) 954-5779 or 1-800-565-7757 publications@tpsgc-pwgsc.gc.ca http://publications.gc.ca Also available on the Parliament of Can Aussi disponible sur le site Web du Par http://www Available from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 publications@pwgsc.gc.ca http://publications.gc.ca

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 6 An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures ASSENTED TO MAY 16, 2017 BILL C-30 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures”. SUMMARY This enactment implements the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016. The general provisions of the enactment set out rules of interpretation and specify that no recourse may be taken on the basis of sections 9 to 14 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada. Part 1 approves the Agreement and provides for the payment by Canada of its share of the expenses associated with the operation of the institutional and administrative aspects of the Agreement and for the power of the Governor in Council to make orders in accordance with the Agreement. Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement and to make other modifications. In addition to making the customary amendments that are made to certain Acts when implementing such agreements, Part 2 amends (a) the Export and Import Permits Act to, among other things, (i) authorize the Minister designated for the purposes of that Act to issue export permits for goods added to the Export Control List and subject to origin quotas in a country or territory to which the Agreement applies, (ii) authorize that Minister, with respect to goods subject to origin quotas in another country that are added to the Export Control List for certain purposes, to determine the quantities of goods subject to such quotas and to issue export allocations for such goods, and (iii) require that Minister to issue an export permit to any person who has been issued such an export allocation; (b) the Patent Act to, among other things, (i) create a framework for the issuance and administration of certificates of supplementary protection, for which patentees with patents relating to pharmaceutical products will be eligible, and ii Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SUMMARY (ii) provide further regulation-making authority in subsection 55.2(4) to permit the replacement of the current summary proceedings in patent litigation arising under regulations made under that subsection with full actions that will result in final determinations of patent infringement and validity; (c) the Trade-marks Act to, among other things, (i) protect EU geographical indications found in Annex 20-A of the Agreement, (ii) provide a mechanism to protect other geographical indications with respect to agricultural products and foods, (iii) provide for new grounds of opposition, a process for cancellation, exceptions for prior use for certain indications, for acquired rights and for certain terms considered to be generic, and (iv) transfer the protection of the Korean geographical indications listed in the Canada–Korea Economic Growth and Prosperity Act into the Trade-marks Act; (d) the Investment Canada Act to raise, for investors that are non-state-owned enterprises from countries that are parties to the Agreement or to other trade agreements, the threshold as of which investments are reviewable under Part IV of the Act; and (e) the Coasting Trade Act to (i) provide that the requirement in that Act to obtain a licence is not applicable for certain activities carried out by certain non-duty paid or foreign ships that are owned by a Canadian entity, EU entity or third party entity under Canadian or European control, and (ii) provide, with respect to certain applications for a licence for dredging made on behalf of certain of those ships, for exemptions from requirements that are applicable to the issuance of a licence. Part 3 contains consequential amendments and Part 4 contains coordinating amendments and the coming-into-force provision. 2015-2016-2017 ii TABLE OF PROVISIONS An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures Short Title 1 Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act Interpretation 2 Definitions Interpretation consistent with Agreement Non-application of Act and Agreement to water Construction Her Majesty 6 Binding on Her Majesty Purpose 7 Purpose Causes of Action 8 Causes of action under sections 9 to 14 PART 1 Implementation of the Agreement Approval and Representation on the CETA Joint Committee 9 Agreement approved Canadian representative on CETA Joint Committee Tribunals, Arbitration Panels and Panels of Experts 11 Powers of Minister Operation of Chapter Twenty-Nine Expenses 13 Payment of expenses 2015-2016-2017 v Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act TABLE OF PROVISIONS Orders 14 Orders re Article 29.14 of Agreement PART 2 Related Amendments 15 Export and Import Permits Act Financial Administration Act Food and Drugs Act Importation of Intoxicating Liquors Act Patent Act Trade-marks Act Investment Canada Act Customs Act Commercial Arbitration Act Coasting Trade Act Customs Tariff Pest Control Products Act Definition of Act Indications in Agreement Additional indications Investment Canada Act — Section 14.11 Transitional Provisions PART 3 Consequential Amendments 118 Canada Corporations Act Nuclear Energy Act Bankruptcy and Insolvency Act Competition Act Defence Production Act Federal Courts Act Public Servants Inventions Act Olympic and Paralympic Marks Act Canada–Korea Economic Growth and Prosperity Act Transitional Provisions 132 Korean indications PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments 133 2009, c. 23 2015-2016-2017 v Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act TABLE OF PROVISIONS 2014, c. 20 2014, c. 39 2015, c. 36 Bill C-13 Coming into Force 138 Order in council SCHEDULE 1 SCHEDULE 2 SCHEDULE 3 SCHEDULE 4 SCHEDULE 5 SCHEDULE 6 2015-2016-2017 vi 64-65-66 ELIZABETH II CHAPTER 6 An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures [Assented to 16th May, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act. Interpretation Definitions 2 The following definitions apply in this section and in sections 3 to 14. Agreement means the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016. (Accord) CETA Joint Committee means the CETA Joint Committee established under Article 26.1 of the Agreement. (Comité mixte de l’AÉCG) federal law means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament. (texte législatif fédéral) Minister means the Minister for International Trade. (ministre) 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act Interpretation Sections 3-7 Interpretation consistent with Agreement 3 For greater certainty, this Act and any federal law that implements a provision of the Agreement or fulfils an obligation of the Government of Canada under the Agreement is to be interpreted in a manner consistent with the Agreement. Non-application of Act and Agreement to water 4 For greater certainty, nothing in this Act or the Agreement, except Chapters Twenty-Two and Twenty-Four of the Agreement, applies to natural surface or ground water in liquid, gaseous or solid state. Construction 5 For greater certainty, nothing in this Act, by specific mention or omission, is to be construed to affect in any manner the right of Parliament to enact legislation to implement any provision of the Agreement or fulfil any of the obligations of the Government of Canada under the Agreement. Her Majesty Binding on Her Majesty 6 This Act is binding on Her Majesty in right of Canada. Purpose Purpose 7 The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to (a) establish a free trade area in accordance with the Agreement; (b) promote, through the expansion of reciprocal trade, the harmonious development of the economic relations between Canada and the European Union in order to create opportunities for economic development; (c) promote conditions of fair competition affecting trade between Canada and the European Union; (d) substantially increase investment opportunities in Canada and the European Union, while preserving the right of each of the parties to the Agreement to regulate to achieve legitimate policy goals; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act Purpose Sections 7-8 (e) eliminate barriers to trade in goods and services in order to contribute to the harmonious development and expansion of world and regional trade; (f) provide adequate and effective protection and enforcement of intellectual property rights in the territory where the Agreement applies; (g) protect, enhance and enforce basic workers’ rights, strengthen cooperation on labour matters, and build on the respective international commitments of Canada and the European Union on labour matters; (h) enhance and enforce environmental laws and regulations and strengthen cooperation between Canada and the European Union on environmental matters; and (i) promote sustainable development. Causes of Action Causes of action under sections 9 to 14 8 (1) No person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of sections 9 to 14 or an order made under those sections. Causes of action under Agreement (2) No person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement. Exception (3) Subsection (2) does not apply with respect to causes of action arising out of, and proceedings taken under, Section F of Chapter Eight or Article 13.21 of the Agreement. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 1 Implementation of the Agreement Sections 9-11 PART 1 Implementation of the Agreement Approval and Representation on the CETA Joint Committee Agreement approved 9 The Agreement is approved. Canadian representative on CETA Joint Committee 10 The Minister is the principal representative of Canada on the CETA Joint Committee. Tribunals, Arbitration Panels and Panels of Experts Powers of Minister 11 (1) The Minister may (a) propose the names of individuals to serve as members of the tribunals established under Section F of Chapter Eight of the Agreement; and (b) propose the names of individuals to be included in the sub-lists referred to in paragraph 1 of Article 29.8 of the Agreement. Power of Minister of Finance (2) The Minister of Finance may propose the names of individuals to be included in the sub-lists referred to in paragraph 3 of Article 13.20 of the Agreement. Powers of Minister of Labour (3) The Minister of Labour may propose the names of individuals to be included in the list established under paragraph 6 of Article 23.10 of the Agreement and propose, for inclusion in that list, the names of individuals to serve as the chairperson of a Panel of Experts established under that Article. Powers of Minister of the Environment (4) The Minister of the Environment may propose the names of individuals to be included in the list established under paragraph 6 of Article 24.15 of the Agreement and propose, for inclusion in that list, the names of individuals to serve as the chairperson of a Panel of Experts established under that Article. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 1 Implementation of the Agreement Tribunals, Arbitration Panels and Panels of Experts Sections 12-14 Operation of Chapter Twenty-Nine 12 The Minister is to designate an agency, division or branch of the Government of Canada to facilitate the operation of Chapter Twenty-Nine of the Agreement. Expenses Payment of expenses 13 The Government of Canada is to pay its appropriate share of the aggregate of (a) the expenses incurred by tribunals established under the Agreement and the remuneration and expenses payable to members of those tribunals; (b) the expenses incurred by arbitration panels and Panels of Experts established under the Agreement and the remuneration and expenses payable to those arbitrators, panellists on those Panels of Experts and mediators; and (c) the expenses incurred by the CETA Joint Committee and the specialized committees, bilateral dialogues, working groups and other bodies established under the Agreement and the remuneration and expenses payable to representatives on the CETA Joint Committee and those specialized committees and to members of those bilateral dialogues, working groups and other bodies. Orders Orders re Article 29.14 of Agreement 14 (1) The Governor in Council may, for the purpose of suspending obligations in accordance with Article 29.14 of the Agreement, by order, do any one or more of the following: (a) suspend rights or privileges granted by Canada to the European Union and its member states or to goods, service suppliers, investors or investments of investors of the European Union and its member states under the Agreement or any federal law; (b) modify or suspend the application of any federal law with respect to the European Union and its member states or to goods, service suppliers, investors or investments of investors of the European Union and its member states; (c) extend the application of any federal law to the European Union and its member states or to goods, service suppliers, investors or investments of investors of the European Union and its member states; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 1 Implementation of the Agreement Orders Sections 14-15 (d) take any other measure that the Governor in Council considers necessary. Period of order (2) Unless repealed, an order made under subsection (1) has effect for the period specified in the order. PART 2 Related Amendments R.S., c. E-19 Export and Import Permits Act 1994, c. 47, s. 100; 2006, c. 13, s. 109 15 (1) The definitions export allocation and import allocation in subsection 2(1) of the Export and Import Permits Act are replaced by the following: export allocation means an export allocation issued under paragraph 6.2(2)(b) or 6.3(3)(b); (autorisation d’exportation) import allocation means an import allocation issued under paragraph 6.2(2)(b); (autorisation d’importation) (2) The definition free trade partner in subsection 2(1) of the Act is amended by adding the following after paragraph (a): (a.1) an EU country or other CETA beneficiary, (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: CETA has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act; (AÉCG) EU country or other CETA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (pays de l’Union européenne ou autre bénéficiaire de l’AÉCG) 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Export and Import Permits Act Sections 15-17 2014, c. 14, s. 17(2) (4) Subsection 2(2) of the Act is replaced by the following: Goods imported from certain countries (2) For the purposes of this Act, goods are imported from one of the following countries or territories if they are shipped directly to Canada from that country or territory, within the meaning of sections 17 and 18 of the Customs Tariff: a NAFTA country an EU country or other CETA beneficiary Chile Costa Rica Honduras 2004, c. 15, s. 54; 2006, c. 13, s. 110 16 The portion of subsection 3(1) of the French version of the Act before paragraph (a) is replaced by the following: Liste : exportation contrôlée 3 (1) Le gouverneur en conseil peut dresser une liste des marchandises et des technologies dont, à son avis, il est nécessaire de contrôler l’exportation ou le transfert à l’une ou plusieurs des fins suivantes : 17 (1) The portion of subsection 5(1) of the French version of the Act before paragraph (a) is replaced by the following: Liste des marchandises d’importation contrôlée 5 (1) Le gouverneur en conseil peut dresser la liste des marchandises d’importation contrôlée comprenant les articles dont, à son avis, il est nécessaire de contrôler l’importation pour l’une ou plusieurs des fins suivantes : 2012, c. 26, s. 53 (2) Subsection 5(3.4) of the Act is replaced by the following: Exception for goods imported from certain countries (3.4) An order made under subsection (3) or (3.2) may exclude goods of any kind imported from a country listed in Schedule 1 if it appears to the satisfaction of the Governor in Council, on the basis of a report under the Canadian International Trade Tribunal Act, that the quantity of those goods being imported is not a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Export and Import Permits Act Sections 17-20 2014, c. 14, s. 18 18 Subsections 5.2(1) and (2) of the Act are replaced by the following: Addition to Export Control List or Import Control List — Schedule 2 5.2 (1) If at any time it appears to the satisfaction of the Governor in Council that it is advisable to collect information with respect to the exportation or importation of any goods in respect of which a specified quantity is eligible each year for the rate of duty provided for in provisions, set out in column 2 of Schedule 2, of an intergovernmental arrangement set out in column 1, the Governor in Council may, by order and without reference to that quantity, include those goods on the Export Control List or the Import Control List, or on both, in order to facilitate the collection of that information. Addition to Import Control List — Schedule 3 (2) If at any time it appears to the satisfaction of the Governor in Council that, for the purposes of implementing an intergovernmental arrangement set out column 1 of Schedule 3, it is advisable to collect information with respect to the importation of any goods listed in the provisions of that arrangement set out in column 2, the Governor in Council may, by order, include those goods on the Import Control List in order to facilitate the collection of that information. 1994, c. 47, s. 106 19 The heading before section 6.2 of the Act is replaced by the following: Import or Export Access 20 (1) Section 6.2 of the Act is amended by adding the following after subsection (1): Determination of quantities — export (1.1) If any goods, other than softwood lumber products to which section 6.3 applies, have been included on the Export Control List under paragraph 3(1)(d), for the purpose of implementing CETA, or under paragraph 3(1)(f), the Minister may determine export access quantities, or the basis for calculating them, for the purposes of subsection (2), 7(1) or (1.1) or section 8.31. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Export and Import Permits Act Sections 20-22 1994, c. 47, s. 106 (2) The portion of subsection 6.2(2) of the Act before paragraph (a) is replaced by the following: Allocation method (2) If the Minister has determined a quantity of goods under subsection (1) or (1.1), the Minister may 1994, c. 47, s. 106 (3) Paragraph 6.2(2)(b) of the Act is replaced by the following: (b) issue an import allocation or an export allocation, as the case may be, to any resident of Canada who applies for the allocation, subject to the regulations and any terms and conditions the Minister may specify in the allocation. 1994, c. 47, s. 106 (4) Subsection 6.2(3) of the Act is replaced by the following: Transfer of allocation (3) The Minister may consent to the transfer of an import allocation or an export allocation from one resident of Canada to another. 21 The Act is amended by adding the following after section 8.3: Export permits — allocation 8.31 Despite subsection 7(1), if goods have been included on the Export Control List, the Minister shall, at the request of any person who has been issued an export allocation under paragraph 6.2(2)(b) with respect to the goods, issue to that person a permit to export the goods, subject to (a) the export allocation; and (b) the person’s compliance with any regulations made under section 12. 2001, c. 28, s. 50; 2014, c. 14, s. 19 22 Section 9.1 of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Export and Import Permits Act Sections 22-27 Minister may issue certificate — Schedule 4 9.1 The Minister may, for the purpose of implementing an intergovernmental arrangement with a country listed in column 1 of Schedule 4 or with an international organization acting on behalf of such a country — or of implementing an intergovernmental arrangement applicable to a territory listed in column 1 — respecting the administration of the provisions set out in column 2, issue a certificate with respect to an exportation of goods to that country or territory stating the specific quantity of those goods that, on importation into the country or territory, is eligible for the rate of duty provided for in the provisions set out in column 3. 2012, c. 26, s. 54 23 The schedule to the Act is renumbered as Schedule 1. 24 The Act is amended by adding, after Schedule 1, the Schedules 2 to 4 set out in Schedule 1 to this Act. R.S., c. F-11 Financial Administration Act 25 Schedule VII to the Financial Administration Act is amended by adding the following in alphabetical order: Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016. R.S., c. F-27 Food and Drugs Act 26 Subsection 30(1) of the Food and Drugs Act is amended by striking out “and” at the end of paragraph (q) and by adding the following after paragraph (r): (s) respecting the implementation, in relation to any food, drug, cosmetic or device, of international agreements that affect them; and (t) prescribing anything that by this Act is to be prescribed. 1993, c. 34, s. 73; 2004, c. 23, s. 3 27 Section 37 of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Food and Drugs Act Section 27 Conditions under which exports exempt 37 (1) This Act does not apply to any packaged food, drug, cosmetic or device if (a) it is manufactured or prepared in Canada; (b) it is intended for export and is not manufactured or prepared for consumption or use in Canada nor sold for consumption or use in Canada; (c) a certificate that the package and its contents do not contravene any known requirement of the law of the country to which it is or is about to be consigned has been issued in respect of the package and its contents in prescribed form and manner; and (d) the packaged food, drug, cosmetic or device meets any other prescribed requirement. Exception — Act (1.1) Despite subsection (1), (a) section 4, subsection 5(1) and section 7 apply to any food; (b) section 8, subsection 9(1) and section 11 apply to any drug that is not a natural health product within the meaning of the Natural Health Products Regulations; (c) sections 16 and 18 apply to any cosmetic; and (d) section 19 and subsection 20(1) apply to any device. Exception — regulations (1.2) Despite subsection (1), any prescribed provision of the regulations respecting the method of manufacture, preparation, preserving, packaging, storing and testing of any food, drug, cosmetic or device continues to apply to any packaged food, drug, cosmetic or device. Exception — General Council Decision (2) Despite subsection (1), this Act applies in respect of any drug or device to be manufactured for the purpose of being exported in accordance with the General Council Decision, as defined in subsection 30(6), and the requirements of the Act and the regulations apply to the drug or device as though it were a drug or device to be manufactured and sold for consumption or use in Canada, unless the regulations provide otherwise. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Importation of Intoxicating Liquors Act Sections 28-32 R.S., c. I-3 Importation of Intoxicating Liquors Act 28 Section 2 of the Importation of Intoxicating Liquors Act is amended by adding the following in alphabetical order: EU country or other CETA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (pays de l’Union européenne ou autre bénéficiaire de l’AÉCG) 2012, c. 26, s. 58 29 The portion of paragraph 3(2)(f.1) of the Act before subparagraph (i) is replaced by the following: (f.1) the importation of bulk spirits into a province from a country or territory listed in column 1 of the schedule by a licensed distiller for the purpose of being packaged by the distiller, if the spirits 2012, c. 26, s. 59; 2014, c. 14, s. 22 30 The heading of column 1 of the schedule to the Act is replaced by “Country or Territory”. 31 The schedule to the Act is amended by adding, in alphabetical order, a reference to “EU country or other CETA beneficiary” in column 1 and a corresponding reference to “Canada–European Union Tariff in the List of Tariff Provisions set out in the schedule to the Customs Tariff” in column 2. R.S., c. P-4 Patent Act 32 (1) The definition regulation and rule in section 2 of the Patent Act is repealed. 1994, c. 47, s. 141 (2) The definition country in section 2 of the Act is replaced by the following: country includes a WTO Member, as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act; (pays) (3) The definition legal representatives in section 2 of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 32-34 legal representatives includes heirs, executors, administrators of the estate, liquidators of the succession, guardians, curators, tutors, transferees and all other persons claiming through applicants for patents and patentees of inventions or through holders of certificates of supplementary protection; (représentants légaux) (4) Section 2 of the Act is amended by adding the following in alphabetical order: regulation includes a rule or form; (règlement) rule includes a regulation or form; (règle) (5) Section 2 of the Act is amended by adding the following in alphabetical order: certificate of supplementary protection means a certificate issued by the Minister of Health under section 113; (certificat de protection supplémentaire) holder means, with respect to a certificate of supplementary protection, the person for the time being that is entitled to the benefit of the certificate; (titulaire) 33 Subsection 7(1) of the Act is replaced by the following: Officers of Patent Office not to deal in patents, etc. 7 (1) No officer or employee of the Patent Office shall buy, sell, acquire or traffic in any invention, patent, right to a patent, certificate of supplementary protection or right to such a certificate, or any interest in any of them, and every purchase, sale, acquisition or transfer of any of them, or of any interest in any of them, made by or to such an officer or employee is void or, in Quebec, null. R.S., c. 33 (3rd Supp.), s. 3 34 (1) Paragraph 12(1)(a) of the French version of the Act is replaced by the following: a) régir la forme et le contenu des demandes de brevet; R.S., c. 33 (3rd Supp.), s. 3 (2) Paragraph 12(1)(g) of the French version of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 34-37 g) régir le paiement des taxes réglementaires, y compris le moment et la manière selon laquelle ces taxes doivent être payées, les surtaxes qui peuvent être levées pour les paiements en souffrance, ainsi que les circonstances dans lesquelles les taxes peuvent être remboursées en tout ou en partie; 1993, c. 15, s. 29(2) (3) Paragraph 12(1)(j.8) of the Act is replaced by the following: (j.8) authorizing the Commissioner to extend, subject to any prescribed terms and conditions, the time fixed by or under this Act in respect of any business before the Patent Office for doing anything where the Commissioner is satisfied that the circumstances justify the extension; R.S., c. 33 (3rd Supp.), s. 7 35 Section 26 of the Act is replaced by the following: Annual report 26 The Commissioner shall, in each year, cause to be prepared and laid before each House of Parliament a report of the Commissioner’s activities under this Act. 1993, c. 15, s. 34 36 Section 29 of the Act is repealed. 37 (1) Section 47 of the Act is amended by adding the following after subsection (1): Certificate of supplementary protection (1.1) Subsection (1) also applies in the case where the original patent is set out in a certificate of supplementary protection and the original patent’s term has expired, except that in that case the issuance of the new patent, whose term remains expired, is for the purpose of establishing the rights, privileges and liberties granted under the certificate. (2) Subsection 47(2) of the French version of the Act is replaced by the following: Effet du nouveau brevet (2) L’abandon visé au paragraphe (1) ne prend effet qu’au moment de la délivrance du nouveau brevet, et ce nouveau brevet, ainsi que la description et spécification rectifiée, a le même effet en droit, dans l’instruction de toute action engagée par la suite pour tout motif survenu subséquemment, que si cette description et spécification rectifiée avait été originalement déposée dans sa forme corrigée, avant la délivrance du brevet original. Dans la 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 37-39 mesure où les revendications du brevet original et du brevet redélivré sont identiques, un tel abandon n’atteint aucune instance pendante au moment de la redélivrance, ni n’annule aucun motif d’instance alors existant, et le brevet redélivré, dans la mesure où ses revendications sont identiques à celles du brevet original, constitue une continuation du brevet original et est maintenu en vigueur sans interruption depuis la date du brevet original. 38 Subsection 53(3) of the Act is repealed. 1993, c. 2, s. 4; 2001, c. 10, s. 2(2) 39 Subsection 55.2(4) of the Act is replaced by the following: Regulations (4) The Governor in Council may make regulations respecting the infringement of any patent that, directly or indirectly, could result or results from the making, construction, use or sale of a patented invention in accordance with subsection (1), including regulations (a) respecting the conditions that must be fulfilled before a document — including a notice, certificate or permit — concerning any product to which a patent may relate may be issued to any person under any Act of Parliament that regulates the manufacture, construction, use or sale of that product, in addition to any conditions provided for by or under that Act; (b) respecting the earliest day on which such a document may be issued to a person and the earliest day on which it may take effect, and respecting the manner in which each day is to be determined; (c) respecting the issuance, suspension or revocation of such a document in circumstances where, directly or indirectly, the document’s issuance could result or results in the infringement of a patent; (d) respecting the prevention and resolution of disputes with respect to the day on which such a document may be issued or take effect; (e) respecting the prevention and resolution of disputes with respect to the infringement of a patent that could result directly or indirectly from the manufacture, construction, use or sale of a product referred to in paragraph (a); (f) respecting the resolution of disputes with respect to the infringement of a patent that results directly or indirectly from the manufacture, construction, use or sale of such a product; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 39-42 (g) conferring rights of action with respect to disputes referred to in any of paragraphs (d) to (f); (h) restricting or excluding the application of other rights of action under this Act or another Act of Parliament to disputes referred to in any of paragraphs (d) to (f); (i) designating the court of competent jurisdiction in which a proceeding with respect to rights of action referred to in paragraph (g) is to be heard; (j) respecting such proceedings, including the procedure of the court in the matter, the defences that may be pleaded, the remedies that may be sought, the joinder of parties and of rights of action and the consolidation of other proceedings, the decisions and orders the court may make and any appeals from those decisions and orders; and (k) specifying who may be an interested person for the purposes of subsection 60(1) with respect to disputes referred to in paragraph (e). 1993, c. 15, s. 49 40 Section 62 of the Act is replaced by the following: Judgment voiding patent 62 A patent, or part of a patent, that is voided by a judgment shall be and be held to have been void and of no effect, unless the judgment is reversed on appeal as provided in section 63. 41 Subsection 66(3) of the Act is repealed. 42 Subsection 68(2) of the Act is replaced by the following: Service (2) The Commissioner shall consider the matters alleged in the application and declarations referred to in subsection (1) and, if satisfied that the applicant has a bona fide interest and that a case for relief has been made, the Commissioner shall direct the applicant to serve copies of the application and declarations on the patentee and on any other persons appearing from the records of the Patent Office to be interested in the patent, and the applicant shall advertise the application both (a) in the Canada Gazette; and (b) on the website of the Canadian Intellectual Property Office or in any other prescribed location. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 43 43 Section 75 of the Act is replaced by the following: Offences 75 (1) Every person is guilty of an indictable offence and is liable to a fine of not more than $200 or to imprisonment for a term of not more than three months, or to both, who (a) without the consent of the patentee, marks in any way on anything made or sold by the person, and for the sole making or selling of which they are not the patentee, the name or any imitation of the name of any patentee for the sole making or selling of that thing; (b) without the consent of the patentee, marks in any way on anything not purchased from the patentee, the words “Patent”, “Letters Patent”, “Queen’s (or King’s) Patent”, “Patented” or any word or words with a similar meaning, with the intent of counterfeiting or imitating the stamp, mark or device of the patentee, or of deceiving the public and inducing them to believe that the thing in question was made or sold by or with the patentee’s consent; or (c) with intent to deceive the public, offers for sale as patented in Canada any article that is neither patented in Canada nor protected by a certificate of supplementary protection in Canada. Certificate of supplementary protection (2) Every person is guilty of an indictable offence and is liable to a fine of not more than $200 or to imprisonment for a term of not more than three months, or to both, who (a) during the term of a certificate of supplementary protection, without the consent of the certificate’s holder, marks in any way on anything made or sold by the person, and for the sole making or selling of which they are not the holder of a certificate of supplementary protection, the name or any imitation of the name of any holder of a certificate of supplementary protection for the sole making or selling of that thing; (b) after a certificate of supplementary protection has been issued and before the end of its term, without the consent of the certificate’s holder, marks in any way on anything not purchased from that holder the words “Certificate of Supplementary Protection”, “Protected by a Certificate of Supplementary Protection” or any words with a similar meaning, with the intent of counterfeiting or imitating that holder’s stamp, mark or 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 43-46 device, or of deceiving the public and inducing them to believe that the thing in question was made or sold by or with that holder’s consent; or (c) with the intent to deceive the public, offers for sale as protected by a certificate of supplementary protection in Canada any article that (i) is neither patented in Canada nor protected by a certificate of supplementary protection in Canada, or (ii) is patented in Canada but for which no certificate of supplementary protection has been issued. 44 Subsection 78(1) of the Act is replaced by the following: Time limit deemed extended 78 (1) If any time limit or period of limitation specified under this Act, in respect of any business before the Patent Office, expires on a day when the Patent Office is closed for business, that time limit or period of limitation shall be deemed to be extended to the next day when the Patent Office is open for business. 1993, c. 2, s. 7 45 The heading “Patented Medicines” before section 79 of the Act is replaced by the following: Patented or Protected Medicines 1993, c. 2. , s. 7 46 (1) The definition breveté ou titulaire d’un brevet in subsection 79(1) of the French version of the Act is replaced by the following: breveté ou titulaire d’un brevet La personne ayant pour le moment droit à l’avantage d’un brevet pour une invention liée à un médicament, ainsi que quiconque peut exercer tout droit d’un titulaire dans un cadre autre qu’une licence prorogée en vertu du paragraphe 11(1) de la Loi de 1992 modifiant la Loi sur les brevets. (patentee) (2) Subsection 79(1) of the Act is amended by adding the following in alphabetical order: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 46-47 medicine includes a drug, as defined in section 104, and a medicinal ingredient; (médicament) rights holder means, in respect of an invention pertaining to a medicine, a patentee and the person for the time being entitled to the benefit of a certificate of supplementary protection for that invention, and includes, if any other person is entitled to exercise rights in relation to the certificate, that other person in respect of those rights; (titulaire de droits) 1993, c. 2, s. 7 47 (1) The portion of subsection 80(1) of the Act before paragraph (a) is replaced by the following: Pricing information, etc., required by regulations 80 (1) A rights holder for an invention pertaining to a medicine shall, as required by and in accordance with the regulations, provide the Board with the information and documents that the regulations may specify respecting 1993, c. 2, s. 7 (2) Paragraph 80(1)(c) of the English version of the Act is replaced by the following: (c) the costs of making and marketing the medicine, if that information is available to the rights holder in Canada or is within the knowledge or control of the rights holder; 1993, c. 2, s. 7 (3) The portion of subsection 80(2) of the Act before paragraph (a) is replaced by the following: Former rights holder (2) Subject to subsection (3), a person who is a former rights holder for an invention pertaining to a medicine shall, as required by and in accordance with the regulations, provide the Board with the information and documents that the regulations may specify respecting 1993, c. 2, s. 7 (4) Paragraphs 80(2)(b) and (c) of the Act are replaced by the following: (b) the price at which the medicine was sold in any market in Canada and elsewhere during the period in which the person was a rights holder for the invention; (c) the costs of making and marketing the medicine produced during that period, whether incurred before or after the patent was issued or the certificate of supplementary protection took effect, if that information 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 47-48 is available to the person in Canada or is within the knowledge or control of the person; 1993, c. 2, s. 7 (5) Subsection 80(3) of the Act is replaced by the following: Limitation (3) Subsection (2) does not apply to a person who has not, for a period of three or more years, been entitled to the benefit of the patent or certificate of supplementary protection, as the case may be, or to exercise any rights in relation to the patent or certificate. 1993, c. 2, s. 7 48 (1) Subsection 81(1) of the Act is replaced by the following: Pricing information, etc. required by Board 81 (1) The Board may, by order, require a rights holder or former rights holder for an invention pertaining to a medicine to provide the Board with information and documents respecting (a) in the case of a rights holder, any of the matters referred to in paragraphs 80(1)(a) to (e); (b) in the case of a former rights holder, any of the matters referred to in paragraphs 80(2)(a) to (e); and (c) any other related matters that the Board may require. 1993, c. 2, s. 7 (2) Subsection 81(2) of the English version of the Act is replaced by the following: Compliance with order (2) A rights holder or former rights holder in respect of whom an order is made under subsection (1) shall comply with the order within the time that is specified in the order or as the Board may allow. 1993, c. 2, s. 7 (3) Subsection 81(3) of the Act is replaced by the following: Limitation (3) No order may be made under subsection (1) in respect of a former rights holder who, more than three years before the day on which the order is proposed to be made, ceased to be entitled to the benefit of the patent or certificate of supplementary protection, as the case may 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 48-50 be, or to exercise any rights in relation to the patent or certificate. 1993, c. 2, s. 7 49 (1) Subsections 82(1) and (2) of the Act are replaced by the following: Notice of introductory price 82 (1) A rights holder for an invention pertaining to a medicine who intends to sell the medicine in a market in Canada in which it has not previously been sold shall, as soon as practicable after determining the date on which the medicine will be first offered for sale in that market, notify the Board of its intention and of that date. Pricing information and documents (2) If the Board receives a notice under subsection (1) from a rights holder or otherwise has reason to believe that a rights holder for an invention pertaining to a medicine intends to sell the medicine in a market in Canada in which the medicine has not previously been sold, the Board may, by order, require the rights holder to provide the Board with information and documents respecting the price at which the medicine is intended to be sold in that market. 1993, c. 2, s. 7 (2) Subsection 82(3) of the English version of the Act is replaced by the following: Compliance with order (3) Subject to subsection (4), a rights holder in respect of whom an order is made under subsection (2) shall comply with the order within the time that is specified in the order or as the Board may allow. 1993, c. 2, s. 7 (3) Subsection 82(4) of the Act is replaced by the following: Limitation (4) No rights holder shall be required to comply with an order made under subsection (2) prior to the 60th day preceding the date on which the rights holder intends to first offer the medicine for sale in the relevant market. 1993, c. 2, s. 7; 1994, c. 26, s. 54(F) 50 Section 83 of the Act is replaced by the following: Order re excessive prices 83 (1) If the Board finds that a rights holder for an invention pertaining to a medicine is selling the medicine in any market in Canada at a price that, in the Board’s 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 50 opinion, is excessive, the Board may, by order, direct the rights holder to cause the maximum price at which the rights holder sells the medicine in that market to be reduced to the level that the Board considers not to be excessive and that is specified in the order. Order re excessive prices (2) Subject to subsection (4), if the Board finds that a rights holder for an invention pertaining to a medicine has, while a rights holder, sold the medicine in any market in Canada at a price that, in the Board’s opinion, was excessive, the Board may, by order, direct the rights holder to do any one or more of the following things that will, in the Board’s opinion, offset the amount of the excess revenues estimated by it to have been derived by the rights holder from the sale of the medicine at an excessive price: (a) reduce the price at which the rights holder sells the medicine in any market in Canada, to the extent and for the period that are specified in the order; (b) to the extent and for the period that are specified in the order, reduce the price at which the rights holder sells, in any market in Canada, any other medicine to which a patented invention, or invention protected by a certificate of supplementary protection, of the rights holder pertains; (c) pay to Her Majesty in right of Canada an amount that is specified in the order. Order re excessive prices (3) Subject to subsection (4), if the Board finds that a former rights holder for an invention pertaining to a medicine had, while a rights holder, sold the medicine in any market in Canada at a price that, in the Board’s opinion, was excessive, the Board may, by order, direct the former rights holder to do any one or more of the following things that will, in the Board’s opinion, offset the amount of the excess revenues estimated by it to have been derived by the former rights holder from the sale of the medicine at an excessive price: (a) to the extent and for the period that are specified in the order, reduce the price at which the former rights holder sells, in any market in Canada, a medicine to which a patented invention, or invention protected by a certificate of supplementary protection, of the former rights holder pertains; or (b) pay to Her Majesty in right of Canada an amount that is specified in the order. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 50-51 If policy to sell at excessive price (4) If the Board, having regard to the extent and duration of the sales of the medicine at an excessive price, is of the opinion that the rights holder or former rights holder has engaged in a policy of selling the medicine at an excessive price, the Board may, by order, in lieu of any order it may make under subsection (2) or (3), as the case may be, direct the rights holder or former rights holder to do any one or more of the things referred to in that subsection that will, in the Board’s opinion, offset not more than twice the amount of the excess revenues estimated by it to have been derived by the rights holder or former rights holder from the sale of the medicine at an excessive price. Excess revenues (5) In estimating the amount of excess revenues under subsection (2), (3) or (4), the Board shall not consider any revenues derived by a rights holder or former rights holder before December 20, 1991 or any revenues derived by a former rights holder after they ceased to be entitled to the benefit of the patent or certificate of supplementary protection, as the case may be, or to exercise any rights in relation to the patent or certificate. Right to hearing (6) Before the Board makes an order under this section, it shall provide the rights holder or former rights holder with a reasonable opportunity to be heard. Limitation period (7) No order may be made under this section in respect of a former rights holder who, more than three years before the day on which the proceedings in the matter commenced, ceased to be entitled to the benefit of the patent or certificate of supplementary protection, as the case may be, or to exercise any rights in relation to the patent or certificate. 1993, c. 2, s. 7 51 (1) Subsections 84(1) and (2) of the Act are replaced by the following: Compliance 84 (1) A rights holder or former rights holder who is required by any order made under section 83 to reduce the price of a medicine shall commence compliance with the order within one month after the date of the order or within a greater period after that date that the Board determines is practical and reasonable, having regard to the circumstances of the rights holder or former rights holder. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 51-53 Compliance (2) A rights holder or former rights holder who is directed by any order made under section 83 to pay an amount to Her Majesty shall pay that amount within one month after the date of the order or within a greater period after that date that the Board determines is practical and reasonable, having regard to the circumstances of the rights holder or former rights holder. 1993, c. 2, s. 7 (2) Subsection 84(3) of the English version of the Act is replaced by the following: Debt due to Her Majesty (3) An amount payable by a rights holder or former rights holder to Her Majesty under any order made under section 83 constitutes a debt due to Her Majesty and may be recovered in any court of competent jurisdiction. 1993, c. 2, s. 7 52 Subsection 85(3) of the Act is replaced by the following: Research costs (3) In determining under section 83 whether a medicine is being or has been sold in any market in Canada at an excessive price, the Board shall not take into consideration research costs other than the Canadian portion of the world costs related to the research that led to the invention pertaining to that medicine or to the development and commercialization of that invention, calculated in proportion to the ratio of sales by the rights holder in Canada of that medicine to total world sales. 1993, c. 2, s. 7 53 Subsections 88(1) and (2) of the Act are replaced by the following: Sales and expense information, etc., to be provided 88 (1) A rights holder for an invention pertaining to a medicine shall, as required by and in accordance with the regulations, or as the Board may, by order, require, provide the Board with the information and documents that the regulations or the order may specify respecting (a) the identity of the licensees in Canada of the rights holder; (b) the revenue of the rights holder, and details of the source of the revenue, whether direct or indirect, from sales of medicine in Canada; and 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 53-55 (c) the expenditures made by the rights holder in Canada on research and development relating to medicine. Additional information (2) If the Board believes on reasonable grounds that any person has information or documents pertaining to the value of sales of medicine in Canada by a rights holder or the expenditures made by a rights holder in Canada on research and development relating to medicine, the Board may, by order, require the person to provide the Board with any of the information or documents that are specified in the order, or with copies of them. 1993, c. 2, s. 7 54 (1) Subsection 89(1) of the Act is replaced by the following: Report 89 (1) The Board shall in each year submit to the Minister a report setting out (a) the Board’s estimate of the proportion, as a percentage, that the expenditures of each rights holder in Canada in the preceding year on research and development relating to medicine is of the revenues of those rights holders from sales of medicine in Canada in that year; and (b) the Board’s estimate of the proportion, as a percentage, that the total of the expenditures of rights holders in Canada in the preceding year on research and development relating to medicine is of the total of the revenues of those rights holders from sales of medicine in Canada in that year. 1993, c. 2, s. 7 (2) Subsection 89(3) of the Act is replaced by the following: Exception (3) The Board shall, in the report, identify the rights holders in respect of whom an estimate referred to in subsection (1) is given in the report, and may, in the report, identify any person who has failed to comply with subsection 88(1) or (2) at any time in the year in respect of which the report is made. 1993, c. 2, s. 7 55 Subsection 96(4) of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 55-57 Guidelines (4) Subject to subsection (5), the Board may issue guidelines with respect to any matter within its jurisdiction but such guidelines are not binding on the Board or any rights holder or former rights holder. 1993, c. 2, s. 7 56 Subsections 100(2) and (3) of the Act are replaced by the following: Contents (2) The report shall contain (a) a summary of pricing trends in the pharmaceutical industry; and (b) the name of each rights holder and former rights holder in respect of whom an order was made under subsection 81(1) or 82(2) or section 83 during the year and a statement as to the status of the matter in respect of which the order was made. Report summary (3) The summary referred to in paragraph (2)(a) may be based on information and documents provided to the Board by any rights holder or former rights holder under section 80, 81 or 82 or in any proceeding under section 83, but shall not be set out in a manner that would make it possible to identify that rights holder or former rights holder. 1993, c. 2, s. 7 57 (1) Paragraph 101(1)(d) of the English version of the Act is replaced by the following: (d) specifying factors for the purposes of subsection 85(1) or (2), including factors relating to the introductory price of any medicine to which a patented invention, or invention protected by a certificate of supplementary protection, pertains; 1993, c. 2, s. 7 (2) Paragraph 101(1)(h) of the English version of the Act is replaced by the following: (h) requiring or authorizing the Board to perform the duties, in addition to those provided for in this Act, that are specified in the regulations, including duties to be performed by the Board in relation to the introductory price of any medicine to which a patented invention, or invention protected by a certificate of supplementary protection, pertains; and 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 58-59 1999, c. 26, s. 50 58 Section 103 of the Act is replaced by the following: Agreements with provinces 103 The Minister may enter into agreements with any province respecting the distribution of, and may pay to that province out of the Consolidated Revenue Fund, amounts received or collected by the Receiver General under section 83 or 84 or in respect of an undertaking given by a rights holder or former rights holder that is accepted by the Board in lieu of holding a hearing or making an order under section 83, less any costs incurred in relation to the collection and distribution of those amounts. 1999, c. 26, s. 50 59 The Act is amended by adding the following after section 103: Supplementary Protection for Inventions — Medicinal Ingredients Interpretation Definitions 104 The following definitions apply in this section and in sections 105 to 134. authorization for sale has the meaning assigned by regulations. (autorisation de mise en marché) drug means a substance or a mixture of substances manufactured, sold or represented for use in (a) the diagnosis, treatment, mitigation or prevention of a disease, disorder or abnormal physical state, or its symptoms, in human beings or animals; or (b) restoring, correcting or modifying organic functions in human beings or animals. (drogue) Minister means the Minister of Health. (ministre) Interpretation 105 (1) For the purposes of this section and sections 106 to 134, if a patent is reissued under section 47, it is deemed to have been granted on the day on which the original patent was granted and its application filing date 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 is deemed to be the day on which the application for the original patent was filed. Human and veterinary uses (2) For the purposes of this section and sections 106 to 134, a medicinal ingredient or combination of medicinal ingredients contained in a drug authorized for human use and a medicinal ingredient or combination of medicinal ingredients contained in a drug authorized for veterinary use are to be treated as different medicinal ingredients or different combinations of medicinal ingredients, as the case may be. Same medicinal ingredient — human use (3) If medicinal ingredients contained in drugs authorized for human use differ from each other only with respect to a prescribed variation, they are to be treated as the same medicinal ingredient for the purposes of this section and sections 106 to 134. Same medicinal ingredient — veterinary use (4) If medicinal ingredients contained in drugs authorized for veterinary use differ from each other only with respect to a prescribed variation, they are to be treated as the same medicinal ingredient for the purposes of this section and sections 106 to 134. Same combination — human use (5) If combinations of medicinal ingredients contained in drugs authorized for human use differ from each other only with respect to a variation in the ratio between those ingredients, they are to be treated as the same combination of medicinal ingredients for the purposes of this section and sections 106 to 134. Same combination — veterinary use (6) If combinations of medicinal ingredients contained in drugs authorized for veterinary use differ from each other only with respect to a variation in the ratio between those ingredients, they are to be treated as the same combination of medicinal ingredients for the purposes of this section and sections 106 to 134. Application for Certificate of Supplementary Protection Application 106 (1) On the payment of the prescribed fee, a patentee may apply to the Minister for a certificate of 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 supplementary protection for a patented invention if all of the following conditions are met: (a) the patent is not void and it meets any prescribed requirements; (b) the filing date for the application for the patent is on or after October 1, 1989; (c) the patent pertains in the prescribed manner to a medicinal ingredient, or combination of medicinal ingredients, contained in a drug for which an authorization for sale of the prescribed kind was issued on or after the day on which this section comes into force; (d) the authorization for sale is the first authorization for sale that has been issued with respect to the medicinal ingredient or the combination of medicinal ingredients, as the case may be; (e) no other certificate of supplementary protection has been issued with respect to the medicinal ingredient or the combination of medicinal ingredients, as the case may be; (f) if an application for a marketing approval, equivalent to an authorization for sale, was submitted in a prescribed country with respect to the medicinal ingredient or combination of medicinal ingredients, as the case may be, before the application for the authorization for sale was filed with the Minister, the application for the authorization for sale was filed before the end of the prescribed period that begins on the day on which the first such application for a marketing approval was submitted. Issuance — paragraph (1)(e) (2) Another certificate of supplementary protection is considered to have been issued for the purposes of paragraph (1)(e) even if that other certificate is subsequently held to be invalid or void or it never takes effect or ceases to have effect. When application to be filed (3) An application for a certificate of supplementary protection shall be filed with the Minister before the end of the prescribed period that begins on (a) the day on which the authorization for sale is issued, if the patent is granted on or before that day; or (b) the day on which the patent is granted, if the patent is granted after the day on which the authorization for sale is issued. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 Exception (4) Despite subsection (3), no application shall be filed within the prescribed period preceding the expiry of the term of the patent under section 44 without taking into account section 46. Contents of application (5) An application for a certificate of supplementary protection shall (a) set out the number, as recorded in the Patent Office, of the patent — as well as the medicinal ingredient or combination of medicinal ingredients and the number of the authorization for sale — in relation to which the certificate is sought; (b) if paragraph (1)(f) applies with respect to the application, specify the day on which the first application for a marketing approval that is equivalent to an authorization for sale was made and the country in which that application was made; and (c) set out any prescribed information. One patent per application (6) Each application is permitted to set out only one patent. Information to be provided 107 (1) An applicant shall provide the Minister with any additional information that the Minister considers necessary. Refusal (2) Whenever the Minister is satisfied that any of the requirements set out in section 106 are not met with respect to an application for a certificate of supplementary protection, the Minister may refuse the application. The Minister shall notify the applicant of a refusal and of the grounds for it. Order of priority — same authorization for sale 108 (1) Subsections (2) to (4) apply in determining the priority of applications for a certificate of supplementary protection that set out the same authorization for sale. Patents granted on or before authorization for sale (2) An application setting out a patent that was granted on or before the day on which the authorization for sale 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 was issued has the same priority as every other such application. Priority over patents granted after authorization for sale (3) An application setting out a patent that was granted on or before the day on which the authorization for sale was issued has priority over an application setting out a patent that is granted after that date. Patents granted after authorization for sale — priority (4) Priority among applications setting out patents that were granted after the day on which the authorization for sale was issued is established according to the date on which the patent was granted, with an earlier date having priority over a later date and patents granted on the same date having the same priority. Applications with same authorization for sale and priority 109 If two or more pending applications set out the same authorization for sale and have the same priority, the Minister shall provide each applicant with a written notice setting out the name and contact information of all the applicants, as well as the number, as recorded in the Patent Office, of the patent set out in each application. Declaration of non-compliance 110 (1) A pending application for a certificate of supplementary protection may be declared invalid or void by the Federal Court for non-compliance with section 106 at the instance of another applicant whose application for a certificate sets out the same authorization for sale and the same priority. Limitation (2) A proceeding to obtain a declaration under subsection (1) shall be commenced before the end of the prescribed period that begins on the day that is specified by the Minister in the written notice sent under section 109. Copy to Minister (3) Anyone who commences such a proceeding, or an appeal or application for leave to appeal with respect to such a proceeding, shall provide the Minister with a copy of (a) any document that commences the proceeding, appeal or application, immediately after the document is filed with the court; and 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 (b) any document that marks the end of the proceeding, appeal or application, immediately after the document is issued by or filed with the court. Expiry of pending applications 111 (1) If two or more applications that set out the same authorization for sale and have the same priority are still pending at the end of the prescribed period that begins on the day specified in the written notice sent under section 109, all of those applications expire at that end of that period. However, if any proceedings are brought under section 110 with respect to any of those applications, all of those applications — if two or more are still pending — expire at the end of the prescribed period that begins on the day on which the last of any of the proceedings to be completed is finally disposed of. Expiry of application with lower priority (2) A pending application that sets out the same authorization for sale as another application of higher priority expires on the day on which the Minister issues a certificate of supplementary protection in respect of that other application. Withdrawal 112 An applicant for a certificate of supplementary protection may withdraw their application in accordance with the regulations. Certificate of Supplementary Protection Issue of certificate 113 The Minister shall issue, to the patentee, a certificate of supplementary protection for the patented invention set out in the patentee’s application if, on the day of issuance, (a) the Minister is satisfied that all requirements set out in section 106 are met; (b) the applicable period referred to in subsection 106(3) for filing the application has ended; (c) there is no other pending application that sets out the same authorization for sale and that has priority over, or the same priority as, the application; and (d) any court proceedings, brought under section 110 with respect to the application or to another pending application that sets out the same authorization for 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 sale and that has priority over, or the same priority as, the application, have been finally disposed of. Contents of certificate 114 A certificate of supplementary protection shall set out (a) the number, as recorded in the Patent Office, of the patent set out in the application; (b) the medicinal ingredient or combination of medicinal ingredients set out in the application; (c) a statement as to whether the certificate relates to use in humans or to veterinary use; (d) the number of the authorization for sale set out in the application; and (e) the day on which the certificate’s term begins and the day on which the term ends, as determined under section 116. Scope of supplementary protection 115 (1) The issuance of a certificate of supplementary protection grants the certificate’s holder and their legal representatives, during the certificate’s term, the same rights, privileges and liberties that are granted by the patent set out in the certificate, but only with respect to the making, constructing, using and selling of any drug that contains the medicinal ingredient, or combination of medicinal ingredients, set out in the certificate, by itself or in addition to any other medicinal ingredient. No infringement — export (2) Despite subsection (1), it is not an infringement of the certificate of supplementary protection for any person to make, construct, use or sell the medicinal ingredient or combination of medicinal ingredients for the purpose of export from Canada. Validity 116 (1) After the certificate is issued, it shall, in the absence of any evidence to the contrary, be valid and avail the holder and the holder’s legal representatives for its term. Taking effect (2) A certificate of supplementary protection takes effect on the expiry of the term under section 44, without taking 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 into account section 46, of the patent set out in the certificate, but the certificate takes effect only if the patent remains valid until, and not void before, the expiry of that term. Calculation of term (3) The certificate’s term is calculated by subtracting five years from the period beginning on the filing date of the application for the patent and ending on the day on which the authorization for sale set out in the certificate is issued, but in any event is for a maximum of two years. Reduction in period (4) Despite subsection (3), if the person to whom the authorization for sale set out in the certificate is issued is also the patentee, the Minister may, if he or she is of the opinion that that person’s failure to act resulted in a period of unjustified delay in the process of obtaining the authorization for sale, reduce the term of the certificate when issuing it by the amount of that period. Never takes effect (5) A certificate of supplementary protection that has been issued never takes effect if the calculation of its term, including any reduction under subsection (3), produces a result of zero or a negative value. Revocation of certificate 117 The Minister shall revoke a certificate of supplementary protection in the prescribed circumstances. Transfer Transfer of patent 118 (1) A certificate of supplementary protection, or an application for one, is not transferable other than by the transfer of the patent, or part of the patent, that is set out in the certificate or application. Whole of patent (2) If the whole of the patent is transferred, the certificate or application is transferred accordingly. Part of patent (3) If part of the patent is transferred, any part of the certificate or application — including, as the case may be, the whole of it — that corresponds to the transferred part of the patent is transferred accordingly. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 For greater certainty (4) For greater certainty, the transfer of part of an application for a certificate of supplementary protection does not result in its division into more than one application. Administrative Matters Applications, fees and documents 119 Applications, fees and documents relating to certificates of supplementary protection shall be submitted to the Minister. Inspection by public 120 (1) The Minister shall ensure that the prescribed contents of all certificates of supplementary protection and applications for a certificate are made available for public inspection under the conditions that may be prescribed. Non-application (2) Subsection (1) does not apply with respect to the contents of applications for a certificate that are refused, declared invalid or void, expired or withdrawn. Copy in case of loss or destruction 121 The Minister may issue a certified copy of a certificate of supplementary protection to replace one that is lost or destroyed. Issuance of patent under section 47 122 (1) If a patent set out in a certificate of supplementary protection or in a pending application for such a certificate is surrendered, and a new patent is issued, under section 47, the holder of the certificate or the applicant shall, before the end of the prescribed period that begins on the day on which the new patent is issued, provide the Minister with written notice of the number, as recorded in the Patent Office, of the new patent to which the certificate or application relates. One patent (2) If more than one new patent is issued under section 47, the holder of the certificate or the applicant shall provide the number for only one of the new patents. New certificate (3) If notice is provided under subsection (1) by a holder of a certificate, the Minister shall issue a new certificate of supplementary protection, setting out the new patent number, to replace the original certificate. The new 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 certificate’s term is the then unexpired term of the original certificate. Effect of new certificate (4) The new certificate is deemed to have been issued on the day on which the new patent is issued. The original certificate and the new certificate have the same effect in law, in any action commenced after the issuance of the new certificate for any cause accruing after that issuance, as if the new patent had been set out in the original certificate; however, insofar as the claims of the new patent and the original patent are identical, the issuance of the new certificate does not affect any action pending at the time of the issuance of the new certificate or abate any cause of action that existed at that time and the new certificate constitutes a continuation of the original certificate and has effect accordingly. Application (5) If notice is provided under subsection (1) by an applicant for a pending application, the Minister shall (a) amend the application to set out the new patent number; and (b) provide written notice of the amendment to any other applicant referred to in section 109 with respect to the application. Effect of amendment to application (6) The amended application has the same effect, for the purposes of sections 106 to 113, as if the pending application had been originally filed in its amended form. Use of Certificates of Supplementary Protection by Government Application 123 Sections 19 to 19.2 apply with respect to certificates of supplementary protection, with (a) any reference to “patented invention” to be read, with any grammatical adaptations, as a reference to “invention protected by a certificate of supplementary protection”; and (b) any reference to “patentee” to be read as a reference to “holder of the certificate of supplementary protection”. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 Infringement and Impeachment Action for infringement 124 (1) An action for the infringement of a certificate of supplementary protection may be brought in the same manner as an action for the infringement of a patent, and the following provisions apply to the action: (a) sections 54, 57 and 59, with any reference to “patent” to be read as a reference to “certificate of supplementary protection”; (b) subsection 55(1), and subsection 55(3) as it applies to that subsection (1), with any reference to “patent” to be read as a reference to “certificate of supplementary protection”, any reference to “patentee” to be read as a reference to “holder of the certificate of supplementary protection” and any reference to “grant” to be read as a reference to “taking of effect”; (c) section 55.01; (d) section 55.1, with any reference to “patent” to be read as a reference to “certificate of supplementary protection” and any reference to “patented process” to be read as a reference to “process protected by the certificate of supplementary protection”; (e) subsections 55.2(1) and (6), with any reference to “patent” to be read as a reference to “certificate of supplementary protection” and any reference to “patented invention” to be read as a reference to “invention protected by the certificate of supplementary protection”; (f) subsection 56(1), with any reference to “patentee” to be read as a reference to “holder of a certificate of supplementary protection that sets out that patent”; (g) section 58, with the reference to “a patent that contains two or more claims” to be read as a reference to a “two or more claims in a patent that is set out in a certificate of supplementary protection” and with the reference to “the patent as if it” to be read as a reference to “the certificate as if the patent set out in it”. Regulations — subsection 55.2(4) (2) The Governor in Council may make regulations respecting the infringement of any certificate of supplementary protection that, directly or indirectly, could result or results from the making, construction, use or sale of a patented invention or invention protected by a certificate of supplementary protection in accordance with 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 subsection 55.2(1), including regulations described in paragraphs 55.2(4)(a) to (k), with (a) any reference in those paragraphs to a “patent” to be read as a reference to a “certificate of supplementary protection”; and (b) the reference in paragraph 55.2(4)(k) to “subsection 60(1)” to be read as a reference to “subsection 125(1)”. Inconsistency or conflict (3) In the event of an inconsistency or conflict between regulations made under subsection (2) and any Act of Parliament or regulations made under such an Act, the regulations made under subsection (2) prevail to the extent of the inconsistency or conflict. Impeachment 125 (1) A certificate of supplementary protection, or any claim in the patent set out in such a certificate, may be declared invalid or void — including on the basis that the certificate was issued despite non-compliance with any of the requirements, as they existed at the time that the certificate was issued, of subsection 106(1) or that the patent set out in the certificate no longer complies with the requirements, as they existed at that time, set out in paragraph 106(1)(c) — by the Federal Court at the instance of the Attorney General of Canada or any interested person. Application (2) Subsections 60(2) and (3) apply with respect to a certificate of supplementary protection, with any reference to “patentee” to be read as a reference to “holder of a certificate of supplementary protection” and any reference to “patent” to be read as a reference to “certificate of supplementary protection”. Judgment voiding certificate or claim 126 (1) A certificate of supplementary protection, or a claim in the patent set out in such a certificate, that is voided by a judgment shall be and be held to have been void and of no effect, unless the judgment is reversed on appeal as provided in subsection (2). Appeal (2) Every judgment voiding a certificate of supplementary protection or any claim in the patent set out in such a certificate, and every judgment refusing to do so, is subject to appeal to any court having appellate jurisdiction in other cases decided by the court by which the judgment was rendered. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 Abuse of Rights Abuse of patent rights 127 (1) The Commissioner may, in respect of application under section 65, exercise any of the powers under any of paragraphs 66(1)(a), (d) and (e) with respect to an issued certificate of supplementary protection if he or she is satisfied that a case of abuse of the exclusive rights under the patent that is set out in the certificate has been established. Abuse — application to Commissioner (2) The Attorney General of Canada or an interested person may, at any time after a certificate of supplementary protection takes effect and after the expiry of three years from the date of the grant of the patent set out in the certificate, apply to the Commissioner alleging that there has been an abuse of the exclusive rights granted under a certificate of supplementary protection issued with respect to that patent and asking for relief under this Act. What amounts to abuse (3) The exclusive rights under a certificate of supplementary protection are abused in any of the following circumstances: (a) the demand in Canada for a drug that contains the medicinal ingredient or a combination of the medicinal ingredients set out in the certificate is not being met to an adequate extent and on reasonable terms; (b) by reason of the refusal of the certificate’s holder to grant a licence or licences on reasonable terms, the trade or industry of Canada or the trade of any person or class of persons trading in Canada, or the establishment of any new trade or industry in Canada, is prejudiced, and it is in the public interest that a licence or licences should be granted; (c) any trade or industry in Canada, or any person or class of persons engaged in such a trade or industry, is unfairly prejudiced by the conditions attached by the certificate’s holder to the purchase, hire, licence, use or working of the invention protected by the certificate. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 Provisions that apply 128 Sections 66 to 71, other than paragraph 66(1)(c), apply for the purposes of section 127, with (a) any reference to “patent”, other than with respect to the Patent Office, to be read as a reference to “certificate of supplementary protection”; (b) any reference to “patentee” to be read as a reference to “holder of the certificate of supplementary protection”; (c) any reference in paragraphs 66(1)(d) and (e) and subsection 68(1) to “section 65” to be read as a reference to “section 127”; (d) any reference in subsection 69(1) or section 71 to “sections 65 to 70” to be read as a reference to “sections 66 to 70 and 127”; and (e) the reference in subsection 69(3) to “the Minister” to be read as a reference to “the Minister of Industry”. General Electronic form and means 129 (1) Subject to the regulations, any document, information or fee that is submitted to the Minister under this Act may be submitted in any electronic form, and by any electronic means, that is specified by the Minister. Collection, storage, etc. (2) Subject to the regulations, the Minister may use electronic means to create, collect, receive, store, transfer, distribute, publish, certify or otherwise deal with documents or information under sections 106 to 134. Definition (3) In this section, electronic, in reference to a form or means, includes optical, magnetic and other similar forms or means. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 Certified copies as evidence 130 In any action or proceeding respecting a certificate of supplementary protection authorized to be had or taken in Canada under this Act, a copy purporting to be certified by the Minister of any such certificate, or of any other document that is made by or filed with the Minister and is connected to such a certificate, may be produced before the court or other tribunal, or a judge or member of the court or tribunal, and the copy purporting to be so certified may be admitted in evidence without production of the original and without proof of the Minister’s certification. Costs of proceedings 131 In all proceedings before any court under this Act, including, for greater certainty, an application for judicial review of a decision of the Minister under this Act, the costs of the Minister are in the discretion of the court, but the Minister shall not be ordered to pay the costs of any other of the parties. Time limit deemed extended 132 (1) If any time period fixed under any of sections 106 to 134 in respect of dealings with the Minister ends on a prescribed day or a day that is designated by the Minister, that time period is extended to the next day that is not a prescribed day or a designated day. Power to designate day (2) The Minister may, on account of unforeseen circumstances and if the Minister is satisfied that it is in the public interest to do so, designate any day for the purposes of subsection (1). If a day is designated, the Minister shall inform the public of that fact on the Department of Health’s website. User Fees Act 133 The User Fees Act does not apply in respect of the fees referred to in section 106 or 134. Regulations 134 (1) The Governor in Council may make rules or regulations (a) defining the term authorization for sale; (b) respecting the form and contents of applications for certificates of supplementary protection; (c) respecting the processing of such applications; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Section 59 (d) respecting the determination of when, for the purpose of paragraph 106(1)(f), an application for an authorization for sale was filed and, for the purpose of subsection 106(3), an application for a certificate of supplementary protection is filed; (e) prescribing the fees or the manner of determining the fees that may be charged in respect of the filing of applications for certificates of supplementary protection, the issuance of such certificates or the taking of other proceedings under sections 106 to 133 or under any rule or regulation made under this section, or in respect of any services or the use of any facilities provided by the Minister under those sections or such a rule or regulation; (f) respecting the payment of any prescribed fees including the time when and the manner in which such fees shall be paid, the additional fees that may be charged for the late payment of such fees and the circumstances in which any fees previously paid may be refunded in whole or in part; (g) respecting the submission, including in electronic form and by electronic means, of documents and information to the Minister, including the time at which they are deemed to be received by the Minister; (h) respecting the use of electronic means for the purposes of subsection 129(2), including requiring the use of those electronic means; (i) respecting the withdrawal of an application for a certificate of supplementary protection; (j) respecting communications between the Minister and any other person; (k) respecting the correction of obvious errors in documents submitted to the Minister, in certificates of supplementary protection or in other documents issued under sections 106 to 133, including (i) the determination by the Minister of what constitutes an obvious error, and (ii) the effect of the correction; and (l) generally, for carrying into effect the objects and purposes of sections 104 to 133 or for ensuring their due administration by the Minister. For greater certainty (2) For greater certainty, the Governor in Council may make rules or regulations under paragraphs 12(1)(d), (g), 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Patent Act Sections 59-61 (h) and (k) for the purposes of this section and sections 104 to 133. R.S., c. T-13 Trade-marks Act 1994, c. 47, s. 190(2) 60 The definitions confusing and geographical indication in section 2 of the Trade-marks Act are replaced by the following: confusing, when applied as an adjective to a trade-mark or trade-name, means, except in sections 11.13 and 11.21, a trade-mark or trade-name the use of which would cause confusion in the manner and circumstances described in section 6; (créant de la confusion) geographical indication means an indication that identifies a wine or spirit, or an agricultural product or food of a category set out in the schedule, as originating in the territory of a WTO Member, or a region or locality of that territory, if a quality, reputation or other characteristic of the wine or spirit or the agricultural product or food is essentially attributable to its geographical origin; (indication géographique) 1994, c. 47, s. 192 61 Sections 11.11 and 11.12 of the Act are replaced by the following: Geographical Indications Definitions 11.11 (1) The following definitions apply in this section and in sections 11.12 to 11.24. Minister means the Minister designated under subsection (2). (ministre) responsible authority means, in relation to a wine or spirit, or an agricultural product or food of a category set out in the schedule, the person, firm or other entity that, in the Minister’s opinion, is, by reason of state or commercial interest, sufficiently connected with and knowledgeable about that wine or spirit or that agricultural product or food to be a party to any proceedings under this Act. (autorité compétente) Designation of Minister (2) The Governor in Council may, by order, designate any federal minister to be the Minister for the purposes of this section and sections 11.12 to 11.24. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 61 When indication confusing with trade-mark (3) For the purposes of sections 11.13 and 11.21, an indication identifying an agricultural product or food is confusing with a trade-mark if the use of both the indication and the trade-mark in the same area would be likely to lead to the inference that the agricultural product or food associated with the indication originates from the same source as the goods or services associated with the trademark. What to be considered (4) For the purposes of sections 11.13 and 11.21, in determining whether an indication is confusing with a trademark, the Registrar or the Federal Court, as the case may be, shall have regard to all the surrounding circumstances, including (a) the length of time that the indication has been used to identify the agricultural product or food with which it is associated as originating in the territory, or the region or locality of a territory, and the extent to which it has become known; (b) the degree of resemblance between the indication and the trade-mark, including in appearance or sound or in the ideas suggested by them; and (c) with respect to the trade-mark, (i) its inherent distinctiveness and the extent to which it has become known, (ii) the length of time that it has been in use, and (iii) the nature of the goods, services or business that is associated with it. List 11.12 (1) There shall be kept under the supervision of the Registrar a list of geographical indications and, in the case of geographical indications identifying an agricultural product or food, translations of those indications. Statement of Minister — indication (2) If a statement by the Minister in respect of an indication is published on the website of the Canadian Intellectual Property Office setting out the information mentioned in subsection (3), the Registrar shall enter the indication, and any translation of the indication set out in the statement, on the list if (a) no statement of objection has been filed and served on the responsible authority in accordance with 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 61 subsection 11.13(1) and the time for the filing of a statement of objection has expired; or (b) a statement of objection has been so filed and served, but it has been withdrawn or deemed under subsection 11.13(6) to have been withdrawn or it has been rejected under subsection 11.13(7) or, if an appeal is taken, it is rejected in the final judgment given in the appeal. Statement of Minister — translation (2.1) If a statement by the Minister is published on the website of the Canadian Intellectual Property Office setting out the information mentioned in subsection (3.1) in respect of a translation of an indication on the list that identifies an agricultural product or food, the Registrar shall enter the translation on the list if (a) no statement of objection has been filed and served on the responsible authority in accordance with subsection 11.13(1) and the time for the filing of the statement of objection has expired; or (b) a statement of objection has been so filed and served, but it has been withdrawn or deemed under subsection 11.13(6) to have been withdrawn or it has been rejected under subsection 11.13(7) or, if an appeal is taken, it is rejected in the final judgment given in the appeal. Information — indication (3) For the purposes of subsection (2), the statement by the Minister must set out all of the following information: (a) that the Minister proposes that the indication and, if applicable, a translation of the indication, in the case of an indication that identifies an agricultural product or food, be entered on the list; (b) in the case of an indication that identifies a wine or spirit, that the indication identifies a wine or that the indication identifies a spirit; (b.1) in the case of an indication that identifies an agricultural product or food, the common name of the agricultural product or food and the category set out in the schedule to which it belongs; (c) the territory, or the region or locality of a territory, in which the wine or spirit or the agricultural product or food is identified as originating; (d) the name of the responsible authority in relation to the wine or spirit or the agricultural product or food 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 61 and the address of the responsible authority’s principal office or place of business in Canada or, if the responsible authority has no office or place of business in Canada, the name and address in Canada of a person or firm on whom any document may be served with the same effect as if it had been served on the responsible authority itself; (e) the quality, reputation or other characteristic of the wine or spirit or the agricultural product or food that, in the Minister’s opinion, qualifies that indication as a geographical indication; (f) that, except in the case of an indication identifying a wine or spirit or an agricultural product or food as originating in Canada, the indication is protected by the law applicable to the territory in which the wine or spirit or the agricultural product or food is identified as originating, as well as particulars of the protection. Information — translation (3.1) For the purposes of subsection (2.1), the statement by the Minister must set out all of the following information: (a) that the Minister proposes that the translation be entered on the list; (b) the indication on the list that corresponds to the translation; (c) the common name of the agricultural product or food that the indication identifies and the category set out in the schedule to which it belongs; (d) the name of the responsible authority in relation to the agricultural product or food and the address of the responsible authority’s principal office or place of business in Canada or, if the responsible authority has no office or place of business in Canada, the name and address in Canada of a person or firm on whom any document may be served with the same effect as if it had been served on the responsible authority itself. Removal from list (4) The Registrar shall remove an indication or any translation of an indication from the list (a) on the publication of a statement by the Minister on the website of the Canadian Intellectual Property Office specifying that the indication or the translation is to be removed; or 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 61-62 (b) if the Federal Court makes an order under subsection 11.21(1) for the removal of the indication or the translation. Obvious error (5) The Registrar may, within six months after the day on which an indication or a translation of an indication is entered on the list, correct any error in that entry that is obvious from the documents relating to the indication or the translation in question that are, at the time that the entry is made, on file in the Registrar’s office. Evidence of entry (6) A copy of any entry on the list purporting to be certified to be true by the Registrar is evidence of the facts set out in it. Evidence of statement (7) Evidence of a statement by the Minister may be given by the production of a copy of the statement purporting to be certified to be true by the Registrar. Certified copies (8) The Registrar shall, on request and on payment of the prescribed fee, furnish a copy certified by the Registrar of any entry on the list or of any statement by the Minister. 1994, c. 47, s. 192 62 (1) Subsections 11.13(1) and (2) of the Act are replaced by the following: Statement of objection 11.13 (1) Within two months after the publication of a statement referred to in subsection 11.12(2) or (2.1), any person interested may, on payment of the prescribed fee, file with the Registrar, and serve on the responsible authority in the prescribed manner, a statement of objection. Grounds — indication (2) A statement of objection with respect to an indication may be based on any of the following grounds: (a) that, when the statement by the Minister is published, the indication is not a geographical indication; (b) that, when the statement by the Minister is published, the indication is identical to a term customary in common language in Canada as the common name for the wine or spirit or the agricultural product or food; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 62 (c) that, except in the case of an indication identifying a wine or spirit or an agricultural product or food as originating in Canada, when the statement by the Minister is published, the indication is not protected by the law applicable to the territory in which the wine or spirit or the agricultural product or food is identified as originating; (d) in the case of an indication identifying an agricultural product or food, that, when the statement by the Minister is published, the indication is confusing with (i) a registered trade-mark, (ii) a trade-mark that was previously used in Canada and that has not been abandoned, or (iii) a trade-mark in respect of which an application for registration was previously filed in Canada and remains pending. Grounds — translation (2.1) A statement of objection with respect to a translation may be based on any of the following grounds: (a) that, when the statement by the Minister is published, the translation is not a faithful translation of the indication; (b) that, when the statement by the Minister is published, the translation is identical to a term customary in common language in Canada as the common name for the agricultural product or food; (c) that, when the statement by the Minister is published, the translation is confusing with (i) a registered trade-mark, (ii) a trade-mark that was previously used in Canada and that has not been abandoned, or (iii) a trade-mark in respect of which an application for registration was previously filed in Canada and remains pending. 1994, c. 47, s. 192 (2) Paragraph 11.13(3)(a) of the Act is replaced by the following: (a) each ground of objection in sufficient detail to enable the responsible authority to reply to it; and 1994, c. 47, s. 192 (3) Subsection 11.13(4) of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 62 Frivolous objection (3.1) At any time before the day on which the responsible authority files a counter statement, the Registrar may, at the responsible authority’s request or on his or her own initiative, reject the statement of objection if the Registrar considers that the statement does not raise a substantial issue for decision and shall give notice of his or her decision to the objector and to the responsible authority. Power to strike (3.2) At any time before the day on which the responsible authority files a counter statement, the Registrar may, at the responsible authority’s request, strike all or part of the statement of objection if the statement or part of it (a) is not based on any of the grounds set out in subsection (2) or (2.1); or (b) does not set out a ground of objection in sufficient detail to enable the responsible authority to reply to it. Counter statement (4) Within two months after a statement of objection has been served on the responsible authority, the responsible authority may file a counter statement with the Registrar and serve a copy on the objector in the prescribed manner, and if the responsible authority does not so file and serve a counter statement, the indication or the translation shall not be entered on the list kept under subsection 11.12(1). The counter statement need only state that the responsible authority intends to respond to the objection. 1994, c. 47, s. 192 (4) The portion of subsection 11.13(5) of the Act before paragraph (a) is replaced by the following: Evidence and hearing (5) Both the objector and the responsible authority shall be given an opportunity, in the prescribed manner and within the prescribed time, to submit evidence and to make representations to the Registrar unless 1994, c. 47, s. 192 (5) Subsections 11.13(6) and (7) of the Act are replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 62-63 Service (5.1) The objector and the responsible authority shall, in the prescribed manner and within the prescribed time, serve on each other any evidence and written representations that they submit to the Registrar. No evidence — objector (6) The objection is deemed to have been withdrawn if, in the prescribed circumstances, the objector does not submit and serve evidence or a statement that the objector does not wish to submit evidence. No evidence — responsible authority (6.1) The indication or the translation shall not be entered on the list if, in the prescribed circumstances, the responsible authority does not submit and serve evidence or a statement that the responsible authority does not wish to submit evidence. Decision (7) After considering the evidence and representations of the objector and the responsible authority, the Registrar shall accept or reject the objection, in whole or in part, and notify the parties of the decision and the reasons for it. Effect of decision on translations (8) The Registrar shall not enter any translation of an indication on the list if the Registrar accepts the objection with respect to the indication or, if an appeal is taken, the objection is accepted in the final judgment given in the appeal. 63 Section 11.14 of the Act is amended by adding the following after subsection (2): Prohibited use (3) No person shall use in connection with a business, as a trade-mark or otherwise, (a) a protected geographical indication identifying a wine in respect of a wine that originates in the territory indicated by the protected geographical indication if that wine was not produced or manufactured in accordance with the law applicable to that territory; or (b) a translation in any language of the geographical indication in respect of that wine. Prohibited adoption of indication for spirits (4) No person shall adopt in connection with a business, as a trade-mark or otherwise, 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 63-64 (a) a protected geographical indication identifying a spirit in respect of a spirit not originating in the territory indicated by the protected geographical indication; or (b) a translation in any language of the geographical indication in respect of that spirit. Prohibited use (5) No person shall use in connection with a business, as a trade-mark or otherwise, (a) a protected geographical indication identifying a spirit in respect of a spirit not originating in the territory indicated by the protected geographical indication or adopted contrary to subsection (4); or (b) a translation in any language of the geographical indication in respect of that spirit. Prohibited use (6) No person shall use in connection with a business, as a trade-mark or otherwise, (a) a protected geographical indication identifying a spirit in respect of a spirit that originates in the territory indicated by the protected geographical indication if that spirit was not produced or manufactured in accordance with the law applicable to that territory; or (b) a translation in any language of the geographical indication in respect of that spirit. 1994, c. 47, s. 192; 2001, c. 27, s. 271; 2014, c. 32, s. 53(F) 64 Sections 11.15 to 11.17 of the Act are replaced by the following: Prohibited adoption of indication for agricultural products or food 11.15 (1) No person shall adopt in connection with a business, as a trade-mark or otherwise, (a) a protected geographical indication identifying an agricultural product or food of a category set out in the schedule in respect of an agricultural product or food belonging to the same category that does not originate in the territory indicated by the protected geographical indication; or (b) a translation on the list kept under subsection 11.12(1) of the protected geographical indication in respect of that agricultural product or food. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 64 Prohibited use (2) No person shall use in connection with a business, as a trade-mark or otherwise, (a) a protected geographical indication identifying an agricultural product or food of a category set out in the schedule in respect of an agricultural product or food belonging to the same category that does not originate in the territory indicated by the protected geographical indication or adopted contrary to subsection (1); or (b) a translation on the list kept under subsection 11.12(1) of the protected geographical indication in respect of that agricultural product or food. Prohibited use (3) No person shall use in connection with a business, as a trade-mark or otherwise, (a) a protected geographical indication identifying an agricultural product or food of a category set out in the schedule in respect of an agricultural product or food belonging to the same category that originates in the territory indicated by the protected geographical indication if that agricultural product or food was not produced or manufactured in accordance with the law applicable to that territory; or (b) a translation on the list kept under subsection 11.12(1) of the protected geographical indication in respect of that agricultural product or food. Exception when authorized 11.16 (1) Sections 11.14 and 11.15 and paragraphs 12(1)(g) to (h.1) do not prevent the adoption, use or registration as a trade-mark or otherwise, in connection with a business, of a protected geographical indication, or any translation of it in any language, with the consent of the responsible authority. Exception for personal names (2) Sections 11.14 and 11.15 do not prevent a person from using, in the course of trade, the person’s name or the name of the person’s predecessor in title, except where the name is used in such a manner as to mislead the public. Exception for comparative advertising (3) Sections 11.14 and 11.15 do not prevent a person from using a protected geographical indication, or any 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 64 translation of it in any language, in comparative advertising. Exception not applicable to labels or packaging (4) Subsection (3) does not apply to comparative advertising on labels or packaging. Continued use — wines or spirits 11.17 (1) Section 11.14 does not apply to the continued and similar use of a protected geographical indication identifying a wine or spirit, or any translation of it in any language, by a Canadian who has used it in a continuous manner in relation to any business or commercial activity in respect of goods or services (a) in good faith before April 15, 1994; or (b) for at least 10 years before that date. Definition of Canadian (2) For the purposes of subsection (1), Canadian means (a) a Canadian citizen; (b) a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act who has been ordinarily resident in Canada for not more than one year after the day on which they first became eligible to apply for Canadian citizenship; and (c) an entity that carries on business in Canada. Use — certain cheeses (3) Section 11.15 does not apply to the use, in connection with a business, of any of the indications “Asiago”, “Feta”, “Φέτα” (Feta), “Fontina”, “Gorgonzola” or “Munster”, or any translation of them in any language, by a person if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of cheeses, as set out in the schedule, before October 18, 2013. Use with qualifying term (4) Section 11.15 does not apply to the use, in connection with a business, of any of the indications “Asiago”, “Feta”, “Φέτα” (Feta), “Fontina”, “Gorgonzola” or “Munster”, or any translation of them in any language, in respect of 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 64 an agricultural product or food of the category of cheeses, as set out in the schedule, if (a) a qualifying term such as “kind”, “type”, “style” or “imitation” is used in connection with the indication or the translation; and (b) the geographical origin of the cheese is clearly displayed on the cheese or on the packaging in which it is distributed, or is in any other manner associated with the cheese so that notice of the cheese’s origin is given to the person to whom the cheese is transferred. Use of the indication “Beaufort” (5) Section 11.15 does not apply to the use, in connection with a business, of the indication “Beaufort”, or any translation of it in any language, by a person if (a) the person or their predecessor in title used the indication or the translation for at least 10 years before October 18, 2013 in relation to any business or commercial activity in respect of an agricultural product or food of the category of cheeses, as set out in the schedule; or (b) the person uses the indication or the translation in relation to any business or commercial activity in respect of a cheese product that was produced in the proximity of the Beaufort Range on Vancouver Island in British Columbia. Use of the indication “Nürnberger Bratwürste” (6) Section 11.15 does not apply to the use, in connection with a business, of the indication “Nürnberger Bratwürste”, or any translation of it in any language, by a person, if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of fresh, frozen and processed meats, as set out in the schedule, for at least five years before October 18, 2013. Use of the indication “Jambon de Bayonne” (7) Section 11.15 does not apply to the use, in connection with a business, of the indication “Jambon de Bayonne”, or any translation of it in any language, by a person, if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of dry-cured meats, as set out in the schedule, for at least 10 years before October 18, 2013. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 64-65 Restriction (8) For the purposes of subsections (3) and (5) to (7), no person is a predecessor in title if they only transferred the right to use the indication or the translation, or both. 1994, c. 47, s. 192; SOR/2004-85, ss.1(1) to (3) 65 (1) Subsections 11.18(1) to (3) of the Act are replaced by the following: Exception for disuse 11.18 (1) Sections 11.14 and 11.15 and paragraphs 12(1)(g) to (h.1) do not prevent the adoption, use or registration as a trade-mark or otherwise, in connection with a business, of a protected geographical indication, or any translation of it in any language, if the indication has ceased to be protected by the law applicable to the territory in which the wine or spirit or the agricultural product or food is identified as originating, or has fallen into disuse in that territory. Exceptions for customary names (2) Sections 11.14 and 11.15 and paragraphs 12(1)(g) to (h.1) do not prevent the adoption, use or registration as a trade-mark or otherwise, in connection with a business, of a protected geographical indication that is identical to (a) a term customary in common language in Canada as the common name for the wine or spirit or the agricultural product or food; (b) a customary name of a grape variety existing in Canada on or before the day on which the WTO Agreement comes into force; or (c) a customary name of a plant variety or an animal breed existing in Canada on or before the day on which the indication is entered on the list kept under subsection 11.12(1). Exception for translation — customary term (2.1) Sections 11.14 and 11.15 and paragraphs 12(1)(g) to (h.1) do not prevent the adoption, use or registration as a trade-mark or otherwise, in connection with a business, of a translation of a protected geographical indication that is identical to a term customary in common language in Canada as the common name for a wine or spirit or an agricultural product or food. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 65 Exception for common names for wines (3) Subsections 11.14(1) to (3) and paragraph 12(1)(g) do not prevent the adoption, use or registration as a trademark or otherwise, in connection with a business, of the following indications in respect of wines: 1994, c. 47, s. 192 (2) The portion of subsection 11.18(4) of the Act before paragraph (a) is replaced by the following: Exception for common names for spirits (4) Subsections 11.14(4) to (6) and paragraph 12(1)(h) do not prevent the adoption, use or registration as a trademark or otherwise, in connection with a business, of the following indications in respect of spirits: 1994, c. 47, s. 192 (3) Subsection 11.18(5) of the Act is replaced by the following: Exception for common names for agricultural products or food (4.1) Section 11.15 and paragraph 12(1)(h.1) do not prevent the adoption, use or registration as a trade-mark or otherwise, in connection with a business, of the following indications in respect of an agricultural product or food: (a) Valencia Orange; (b) Orange Valencia; (c) Valencia; (d) Black Forest Ham; (e) Jambon Forêt Noire; (f) Tiroler Bacon; (g) Bacon Tiroler; (h) Parmesan; (i) St. George Cheese; (j) Fromage St-George; and (k) Fromage St-Georges. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 65-67 Spelling variations (4.2) For purposes of subsection (4.1), the indications set out in paragraphs (f) and (g) include spelling variations of those indications in English and French. Exception — “county” (4.3) Section 11.15 and paragraph 12(1)(h.1) do not prevent the adoption, use or registration as a trade-mark or otherwise, in connection with a business, of the term “county”, or any translation of it in any language, in association with an agricultural product or food if that term is used to refer to the name of a territorial division or an administrative division of a territory. Powers of Governor in Council (5) The Governor in Council may, by order, amend any of subsections (3) to (4.1) by adding or deleting an indication in respect of a wine or spirit or an agricultural product or food, as the case may be. 1994, c. 47, s. 192 66 Subsection 11.19(2) of the Act is replaced by the following: Proceedings after five years (2) In proceedings respecting a registered trade-mark commenced after the expiry of five years from the earlier of the date of registration of the trade-mark in Canada and the date on which use of the trade-mark by the person who filed the application for registration of the trademark or that person’s predecessor in title has become generally known in Canada, the registration must not be expunged or amended or held invalid on the basis of any of paragraphs 12(1)(g) to (h.1) unless it is established that the person who filed the application for registration of the trade-mark did so with knowledge that the trademark was in whole or in part a protected geographical indication. 1994, c. 47, s. 192 67 Section 11.2 of the Act is replaced by the following: Acquired rights — wines 11.2 (1) Section 11.14 and paragraph 12(1)(g) do not prevent the adoption, use or registration as a trade-mark in association with a wine of a protected geographical indication, or any translation of it in any language, by a person if they have, in good faith, before the later of January 1, 1996 and the day on which protection of the indication in the territory indicated by the indication begins, 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 67 (a) filed an application in accordance with section 30 for, or secured the registration of, the trade-mark in association with a wine; or (b) acquired rights through use to the trade-mark in respect of a wine. Acquired rights — spirits (2) Section 11.14 and paragraph 12(1)(h) do not prevent the adoption, use or registration as a trade-mark in association with a spirit of a protected geographical indication, or any translation of it in any language, by a person if they have, in good faith, before the later of January 1, 1996 and the day on which protection of the indication in the territory indicated by the indication begins, (a) filed an application in accordance with section 30 for, or secured the registration of, the trade-mark in association with a spirit; or (b) acquired rights through use to the trade-mark in respect of a spirit. Acquired rights — agricultural products and food (3) Section 11.15 and paragraph 12(1)(h.1) do not prevent the adoption, use or registration as a trade-mark in association with an agricultural product or food of a category set out in the schedule of a protected geographical indication, or any translation of it in any language, by a person if they have, in good faith, before the day on which a statement by the Minister is published under subsection 11.12(2) or (2.1) in respect of the indication or translation, (a) filed an application in accordance with section 30 for, or secured the registration of, the trade-mark in association with an agricultural product or food belonging to the same category; or (b) acquired rights through use to the trade-mark in respect of an agricultural product or food belonging to the same category. Removal from the list 11.21 (1) On the application of any person interested, the Federal Court has exclusive jurisdiction to order the 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 67 Registrar to remove an indication or a translation from the list of geographical indications kept under subsection 11.12(1) on any of the grounds set out in subsection (2) or (3), as the case may be. Grounds — indication (2) The grounds for the removal of an indication are (a) that, on the day on which the application is made, the indication is not a geographical indication; (b) that, on the day on which the application is made, the indication is identical to a term customary in common language in Canada as the common name for the wine or spirit or the agricultural product or food; (c) that, except in the case of an indication identifying a wine or spirit or an agricultural product or food as originating in Canada, when the statement by the Minister in respect of the indication is published or on the day on which the application is made, the indication is not protected by the law applicable to the territory in which the wine or spirit or the agricultural product or food is identified as originating; (d) in the case of an indication identifying an agricultural product or food, that, when the statement by the Minister is published, the indication is confusing with (i) a registered trade-mark, or (ii) a trade-mark that was previously used in Canada and that has not been abandoned; or (e) in the case of an indication identifying an agricultural product or food, that (i) when the statement by the Minister is published, the indication is confusing with a trade-mark in respect of which an application for registration was previously filed in Canada, and (ii) on the day on which the application is made, that application for registration remains pending or the trade-mark is registered. Grounds — translation (3) The grounds for the removal of a translation are (a) that, on the day on which the application is made, the translation is identical to a term customary in common language in Canada as the common name for the agricultural product or food; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 67 (b) that, when the statement by the Minister in respect of the translation is published, the translation is confusing with (i) a registered trade-mark, or (ii) a trade-mark that was previously used in Canada and that has not been abandoned; (c) that (i) when the statement by the Minister in respect of the translation is published, the translation is confusing with a trade-mark in respect of which an application for registration was previously filed in Canada, and (ii) on the day on which the application is made, that application for registration remains pending or the trade-mark is registered; or (d) that, when the statement by the Minister in respect of the translation is published, the translation is not a faithful translation of the indication. How application is made (4) An application shall be made by the filing of an originating notice of motion, by counter-claim in an action for an act contrary to section 11.14 or 11.15, or by statement of claim in an action claiming additional relief under this Act. Summary proceedings (5) The proceedings on an application shall be heard and determined summarily on evidence adduced by affidavit unless the Federal Court directs otherwise. Effect of order on translation (6) If the Federal Court orders the removal of an indication identifying an agricultural product or food from the list, the Registrar shall remove any translation of that indication from the list. CETA indications 11.22 Paragraph 11.18(2)(a) and section 11.21 do not apply with respect to a protected geographical indication that is listed in Part A of Annex 20-A, as amended from time to time, of Chapter Twenty of the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 67-68 Canada — Korea indications 11.23 Paragraphs 11.18(2)(a) and (c) and section 11.21 do not apply with respect to an indication that is a protected geographical indication and that is included in the following list: (a) GoryeoHongsam; (b) GoryeoBaeksam; (c) GoryeoSusam; (d) IcheonSsal; (e) ginseng rouge de Corée; (f) ginseng blanc de Corée; (g) ginseng frais de Corée; (h) riz Icheon; (i) Korean Red Ginseng; (j) Korean White Ginseng; (k) Korean Fresh Ginseng; (l) Icheon Rice. Powers of Governor in Council 11.24 The Governor in Council may, by order, amend the schedule by adding or deleting a category of agricultural product or food. 68 Paragraphs 12(1)(g) and (h) of the Act are replaced by the following: (g) in whole or in part a protected geographical indication identifying a wine, where the trade-mark is to be registered in association with a wine not originating in a territory indicated by the geographical indication; (h) in whole or in part a protected geographical indication identifying a spirit, where the trade-mark is to be registered in association with a spirit not originating in a territory indicated by the geographical indication; (h.1) in whole or in part a protected geographical indication, and the trade-mark is to be registered in association with an agricultural product or food — belonging to the same category, as set out in the schedule, as the agricultural product or food identified by the protected geographical indication — not 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 68-70 originating in a territory indicated by the geographical indication; and 1994, c. 47, s. 196 69 Subsection 20(2) of the Act is replaced by the following: Exception (2) The registration of a trade-mark does not prevent a person from making any use of any of the indications mentioned in subsection 11.18(3) in association with a wine, any of the indications mentioned in subsection 11.18(4) in association with a spirit or any of the indications mentioned in subsection 11.18(4.1) in association with an agricultural product or food. 2014, c. 32, s. 43 70 (1) The definition relevant registered trademark in section 51.02 of the Act is replaced by the following: relevant protected mark means (a) a trade-mark registered for goods that is identical to, or cannot be distinguished in its essential aspects from, a trade-mark on such goods, including their labels or packaging, that are detained by a customs officer; or (b) a protected geographical indication identifying, as the case may be, a wine or spirit, or an agricultural product or food of a category set out in the schedule, that is identical to, or cannot be distinguished in its essential aspects from, an indication on such a wine or spirit or such an agricultural product or food, or on their labels or packaging, that is detained by a customs officer. (marque protégée en cause) (2) Section 51.02 of the Act is amended by adding the following in alphabetical order: owner, with respect to a protected geographical indication identifying a wine or spirit or agricultural product or food, means the responsible authority, as defined in section 11.11, for the wine or spirit or agricultural product or food identified by the indication. (propriétaire) protected mark means a registered trade-mark or a protected geographical indication. (marque protégée) 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Section 71 2014, c. 32, s. 43 71 Subsection 51.03(3) of the Act is replaced by the following: Wine or spirits (2.1) Wine or spirits shall not be imported or exported if they, or their labels or packaging, bear a protected geographical indication and the wine or spirits (a) do not originate in the territory indicated by the indication; or (b) do originate in the territory indicated by the indication but were not produced or manufactured in accordance with the law applicable to that territory. Agricultural products or food (2.2) An agricultural product or food of a category set out in the schedule shall not be imported or exported if it, or its label or packaging, bears a protected geographical indication and the agricultural product or food (a) does not originate in the territory indicated by the indication; or (b) does originate in the territory indicated by the indication, but was not produced or manufactured in accordance with the law applicable to that territory. Exception (2.3) Subsections (2.1) and (2.2) do not apply if (a) the sale or distribution of the wine or spirit or the agricultural product or food — or, if the label or packaging of that wine, spirit or agricultural product or food bears a protected geographical indication and the sale or distribution of that wine, spirit or agricultural product or food in association with that label or packaging — would not be contrary to this Act; (b) the wine or spirit or the agricultural product or food is imported or exported by an individual in their possession or baggage and the circumstances, including the number of such goods, indicate that they are intended only for the individual’s personal use; or (c) the wine or spirit or the agricultural product or food, while being shipped from one place outside Canada to another, is in customs transit control or customs transhipment control in Canada. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 71-72 Restriction (3) The contravention of subsection (1), (2.1) or (2.2) does not give rise to a remedy under section 53.2. 2014, c. 32, s. 43 72 Section 51.04 of the Act is replaced by the following: Request for assistance 51.04 (1) The owner of a protected mark may file with the Minister, in the form and manner specified by the Minister, a request for assistance in pursuing remedies under this Act with respect to goods imported or exported in contravention of section 51.03. Information in request (2) The request for assistance shall include the name and address in Canada of the owner of the protected mark and any other information that is required by the Minister, including information about the trade-mark and the goods for which it is registered or, in the case of a geographical indication, the goods identified by the indication. Validity period (3) A request for assistance is valid for a period of two years beginning on the day on which it is accepted by the Minister. The Minister may, at the request of the owner of the protected mark, extend the period for two years, and may do so more than once. Security (4) The Minister may, as a condition of accepting a request for assistance or of extending a request’s period of validity, require that the owner of the protected mark furnish security, in an amount and form fixed by the Minister, for the payment of an amount for which the owner of the protected mark becomes liable under section 51.09. Update (5) The owner of the protected mark shall inform the Minister in writing, as soon as feasible, of any changes to (a) the validity of the protected mark that is the subject of the request for assistance; (b) the ownership of the protected mark; or (c) the goods for which the trade-mark is registered or, in the case of a geographical indication, the goods identified by the indication. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 72-76 2014, c. 32, s. 43 73 The portion of subsection 51.06(1) of the French version of the Act before paragraph (a) is replaced by the following: Fourniture de renseignements en vue de l’exercice de recours 51.06 (1) L’agent des douanes qui a des motifs raisonnables de soupçonner que des produits qu’il retient en vertu de l’article 101 de la Loi sur les douanes sont interdits d’importation ou d’exportation au titre de l’article 51.03 peut, à sa discrétion, fournir au propriétaire de la marque protégée en cause, si celui-ci a présenté une demande d’aide acceptée par le ministre à l’égard de cette marque, des échantillons des produits ainsi que des renseignements au sujet des produits qui pourraient lui être utiles pour l’exercice de ses recours au titre de la présente loi, tels que : 2002, c. 8, s. 177 74 Section 61 of the Act is replaced by the following: Judgments 61 An officer of the Registry of the Federal Court shall file with the Registrar a certified copy of every judgment or order made by the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada relating to any trade-mark on the register or to any protected geographical indication. 75 The Act is amended by adding the following before section 66: Regulations 65.2 The Governor in Council may make regulations (a) respecting the list to be kept under subsection 11.12(1), including information relating to the listed geographical indications and translations to be included on the list; and (b) respecting proceedings under section 11.13, including documents relating to those proceedings. 1993, c. 15, s. 71 76 The heading before section 69 of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 76-77 Transitional Provisions Use of the indication “Beaufort” 68.1 (1) During the period that begins on the day on which this subsection comes into force and ends on the fifth anniversary of that day, section 11.15 does not apply to the use, in connection with a business, of the indication “Beaufort”, or any translation of it in any language, by a person if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of cheeses, as set out in the schedule, for less than 10 years before October 18, 2013. Use of the indication “Nürnberger Bratwürste” (2) During the period that begins on the day on which this subsection comes into force and ends on the fifth anniversary of that day, section 11.15 does not apply to the use, in connection with a business, of the indication “Nürnberger Bratwürste”, or any translation of it in any language, by a person if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of fresh, frozen and processed meats, as set out in the schedule, for less than five years before October 18, 2013. Use of the indication “Jambon de Bayonne” (3) During the period that begins on the day on which this subsection comes into force and ends on the fifth anniversary of that day, section 11.15 does not apply to the use, in connection with a business, of the indication “Jambon de Bayonne”, or any translation of it in any language, by a person if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of dry-cured meats, as set out in the schedule, for less than 10 years before October 18, 2013. Restriction (4) For the purposes of subsections 68.1(1) to (3), no person is a predecessor in title if they only transferred the right to use the indication or the translation, or both. 77 The Act is amended by adding, at the end of the Act, the schedule set out in Schedule 2 to this Act. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Trade-marks Act Sections 78-80 Replacement of “relevant registered trade-mark” 78 The Act is amended by replacing “relevant registered trade-mark” with “relevant protected mark” wherever it occurs in the following provisions: (a) sections 51.05 and 51.06; (b) sections 51.08 and 51.09; (c) subsection 51.11(5); and (d) section 51.12. Replacement of “trade-mark owner” 79 The English version of the Act is amended by replacing “trade-mark owner” with “owner of the mark” wherever it occurs in the following provisions: (a) paragraph 51.06(3)(c); and (b) paragraphs 51.09(1)(b) and (c) and 5(a). R.S., c. 28 (1st Supp.) Investment Canada Act 2009, c. 2, s. 449 80 Section 14.2 of the Investment Canada Act is replaced by the following: Limits for trade agreement investors — paragraph 14(1)(a) or (b) 14.11 (1) Despite the limits set out in subsections 14(3) and 14.1(1), an investment described in paragraph 14(1)(a) or (b) by a trade agreement investor, other than a state-owned enterprise, or — if the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a trade agreement investor — by a non-Canadian other than a trade agreement investor and other than a stateowned enterprise, is reviewable under section 14 only if the enterprise value, calculated in the prescribed manner, of the assets described in paragraph 14(3)(a) or (b), as the case may be, is equal to or greater than (a) for an investment implemented at any time in the period that begins on the day on which this paragraph comes into force and that ends on December 31 of the following calendar year, $1,500,000,000, and (b) for an investment implemented in any subsequent calendar year, the amount determined in respect of that calendar year under subsection (3). 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Investment Canada Act Section 80 Limits for trade agreement investors — paragraph 14(1)(c) or (d) (2) Despite the limits set out in subsections 14(3) and (4), an investment described in paragraph 14(1)(c) or (d) by an investor described in any of the following paragraphs is reviewable under section 14 only if the enterprise value, calculated in the prescribed manner, of the assets described in paragraph 14(3)(b) or subsection 14(4), as the case may be, is equal to or greater than the applicable amount referred to under paragaph (1)(a) or (b): (a) a trade agreement investor that is neither a WTO investor as defined in subsection 14.1(6) nor a stateowned enterprise; or (b) a non-Canadian that is not a trade agreement investor, a WTO investor as defined in subsection 14.1(6) or a state-owned enterprise, if the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a trade agreement investor. Amount (3) The amount for any year for the purposes of paragraph (1)(b) shall be determined by the Minister in January of that year by rounding off to the nearest million dollars the amount arrived at by using the following formula: (Current Nominal GDP at Market Prices / Previous Year Nominal GDP at Market Prices) × amount determined for previous year where (a) the Current Nominal GDP at Market Prices is the average of the Nominal Gross Domestic Products at market prices for the most recent four consecutive quarters; and (b) the Previous Year Nominal GDP at Market Prices is the average of the Nominal Gross Domestic Products at market prices for the four consecutive quarters for the comparable period in the year preceding the year used in calculating the Current Nominal GDP at Market Prices. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Investment Canada Act Section 80 Publication in Canada Gazette (4) As soon as possible after determining the amount for any particular year, the Minister shall publish the amount in the Canada Gazette. Exception (5) This section does not apply in respect of an investment to acquire control of a Canadian business that is a cultural business, as defined in subsection 14.1(6). Definitions (6) The following definitions apply in this section. controlled by a trade agreement investor, with respect to a Canadian business, means, despite subsection 28(2), (a) the ultimate direct or indirect control in fact of the Canadian business by a trade agreement investor through the ownership of voting interests; or (b) the ownership by a trade agreement investor of all or substantially all of the assets used in carrying on the Canadian business. (sous le contrôle d’un investisseur (traité commercial)) trade agreement country means a country other than Canada that is a party either to the Agreement described in subparagraph (a)(i) of the definition trade agreement investor in this subsection or to a trade agreement listed in column 1 of the schedule. (pays (traité commercial)) trade agreement investor means (a) an individual, other than a Canadian, who is (i) a natural person within the meaning of Article 8.1 of the Agreement as defined in section 2 of the Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act, or (ii) a national within the meaning of any provision set out in column 2 of the schedule corresponding to a trade agreement set out in column 1; (b) the government of a trade agreement country, whether federal, state or local, or an agency of such a government; (c) an entity that is not a Canadian-controlled entity, as determined under subsection 26(1) or (2), and that is a trade agreement investor-controlled entity, as determined in accordance with subsection (7); 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Investment Canada Act Section 80 (d) a corporation or limited partnership that meets the following criteria: (i) it is not a Canadian-controlled entity, as determined under subsection 26(1), (ii) it is not an entity described in paragraph (c), (iii) less than a majority of its voting interests are owned by trade agreement investors, (iv) it is not controlled in fact through the ownership of its voting interests, and (v) two thirds of the members of its board of directors, or two thirds of its general partners, as the case may be, are any combination of Canadians and trade agreement investors; (e) a trust that meets the following criteria: (i) it is not a Canadian-controlled entity, as determined under subsection 26(1) or (2), (ii) it is not an entity described in paragraph (c), (iii) it is not controlled in fact through the ownership of its voting interests, and (iv) two thirds of its trustees are any combination of Canadians and trade agreement investors; or (f) any other form of business organization specified by the regulations that is controlled by a trade agreement investor. (investisseur (traité commercial)) Interpretation (7) For the purpose only of determining whether an entity is a trade agreement investor-controlled entity under paragraph (c) of the definition trade agreement investor in subsection (6), (a) subsections 26(1) and (2) and section 27 apply and, for that purpose, (i) every reference in those provisions to “Canadian” or “Canadians” shall be read and construed as a reference to “trade agreement investor” or “trade agreement investors”, respectively, (ii) every reference in those provisions to “nonCanadian” or “non-Canadians” shall be read and construed as a reference to “non-Canadian other than a trade agreement investor,” or “non-Canadians, other than trade agreement investors,” respectively, except for the reference to “non-Canadians” 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Investment Canada Act Sections 80-82 in subparagraph 27(d)(ii), which shall be read and construed as a reference to “not trade agreement investors”, (iii) every reference in those provisions to “Canadian-controlled” shall be read and construed as a reference to “trade agreement investor-controlled”, and (iv) the reference in subparagraph 27(d)(i) to “Canada” shall be read and construed as a reference to “a trade agreement country”; and (b) if two persons, one being a Canadian and the other being a trade agreement investor, own equally all of the voting shares of a corporation, the corporation is deemed to be trade agreement investor-controlled. Regulations 14.2 The Governor in Council may make any regulations that the Governor in Council considers necessary for carrying out the purposes and provisions of sections 14.1 and 14.11. Order 14.3 The Governor in Council may, by order, amend the schedule by adding, deleting or replacing the name of a trade agreement in column 1 or a corresponding provision setting out the meaning of “national” in column 2. 81 The Act is amended by adding, after section 51, the schedule set out in Schedule 3 to this Act. R.S., c. 1 (2nd Supp.) Customs Act 82 Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order: CETA has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Act Sections 82-83 Economic and Trade Agreement Implementation Act; (AÉCG) EU country or other CETA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff; (pays de l’Union européenne ou autre bénéficiaire de l’AÉCG) 2009, c. 6, s. 24(1) 83 (1) The portion of paragraph 42.1(1)(a) of the Act before subparagraph (i) is replaced by the following: (a) conduct a verification of origin of goods for which preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.1), is claimed 2009, c. 6, ss. 24(2) and (3) (2) Subsections 42.1(1.1) and (2) of the Act are replaced by the following: Method of verification — certain agreements (1.1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, or any person, or any person within a class of persons, designated by the President to act on behalf of such an officer, may, subject to any prescribed conditions, conduct any of the following: (a) a verification of origin of goods for which preferential tariff treatment under CEFTA is claimed, by requesting in writing that the customs administration of the EFTA state of export conduct a verification and provide an opinion as to whether the goods are originating within the meaning of Annex C of CEFTA; (b) a verification of origin of goods for which preferential tariff treatment under CETA is claimed, by requesting in writing that the customs administration of the EU country or other CETA beneficiary of export conduct a verification and provide a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA. Withdrawal of preferential tariff treatment (2) If an exporter or producer of goods that are subject to a verification of origin under paragraph (1)(a) fails to comply with the prescribed requirements or, in the case of a verification of origin under subparagraph (1)(a)(i), 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Act Sections 83-84 does not consent to the verification of origin in the prescribed manner and within the prescribed time, preferential tariff treatment under a free trade agreement, other than a free trade agreement referred to in subsection (1.1), may be denied or withdrawn from the goods. 2009, c. 6, s. 24(3) (3) The portion of subsection 42.1(3) of the Act before paragraph (b) is replaced by the following: Withdrawal of preferential tariff treatment — certain agreements (3) Preferential tariff treatment under a free trade agreement referred to in subsection (1.1) may be denied or withdrawn from the goods in any of the following circumstances: (a) in the case of CEFTA, if the EFTA state of export fails to conduct a verification or provide an opinion as to whether the goods are originating; (a.1) in the case of CETA, if the EU country or other CETA beneficiary of export fails to conduct a verification or provide a written report as to whether the goods are originating; 2009, c. 6, s. 28 84 (1) Subsection 97.201(1) of the Act is replaced by the following: Verification of origin — certain agreements 97.201 (1) The customs administration of any state or beneficiary referred to in subsection 42.1(1.1) to which goods were exported may request in writing that the Agency conduct a verification and provide, as the case may be (a) an opinion as to whether those goods are originating within the meaning of Annex C of CEFTA; or (b) a written report as to whether the goods are originating within the meaning of the Protocol on Rules of Origin and Origin Procedures of CETA. 2009, c. 6, s. 28 (2) Subsection 97.201(3) of the Act is replaced by the following: Statement of origin — certain agreements (3) On completion of a verification of origin requested under subsection (1), an officer or other person designated under subsection (2) shall 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Act Sections 84-89 (a) provide, in the prescribed manner, the customs administration of the state or beneficiary with the opinion or written report requested and any relevant supporting documents that may be requested by that customs administration; and (b) determine whether the goods are originating within the meaning of the applicable provision referred to in subsection (1). 2012, c. 18, s. 30 85 Subsection 164(1.1) of the Act is replaced by the following: Regulations (1.1) The Governor in Council may, on the recommendation of the Minister, make regulations for the purpose of the uniform interpretation, application and administration of a protocol, chapter or provision — set out in column 2 of Part 5 of the schedule — in an agreement set out in column 1, and any other matters that may be agreed on from time to time by the parties to that agreement. 86 Part 1 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “EU country or other CETA beneficiary” in column 1, a corresponding reference to “CETA” in column 2 and a corresponding reference to “Canada–European Union Tariff rates of customs duty under the Customs Tariff” in column 3. 87 Part 4 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “EU country or other CETA beneficiary” in column 1 and a corresponding reference to “CETA” in column 2. 88 The heading of column 2 of Part 5 of the schedule to the Act is replaced by “Protocol, Chapter or Provision”. 89 Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CETA” in column 1 and a corresponding reference to “Protocol on Rules of Origin and Origin Procedures” in column 2. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Commercial Arbitration Act Sections 90-91 R.S., c. 17 (2nd Supp.) Commercial Arbitration Act 90 Schedule 2 to the Commercial Arbitration Act is amended by adding, at the end of column 1, a reference to “Article 8.23” and a corresponding reference to “Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016” in column 2. 1992, c. 31 Coasting Trade Act 91 (1) The definition owner in subsection 2(1) of the English version of the Coasting Trade Act is replaced by the following: owner, in relation to a ship, means the person having for the time being, either by law or by contract, the rights of the owner of the ship with respect to its possession and use; (propriétaire) (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: Canadian entity means (a) a corporation that is incorporated in Canada, or (b) a trust, partnership, joint venture or other association that is formed in Canada; (entité canadienne) CETA has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act; (AÉCG) EU entity means (a) a corporation that is incorporated in the territory of the European Union, or (b) a trust, partnership, joint venture or other association that is formed in the territory of the European Union; (entité de l’Union européenne) territory of the European Union means the territory in which the Treaty on European Union, done at Maastricht on February 7, 1992, and the Treaty Establishing the European Economic Community, done at Rome on March 25, 1957 — renamed the Treaty on the Functioning of the European Union — as they are amended from time to time, are applicable, in accordance with the conditions 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Coasting Trade Act Sections 91-92 specified in those treaties; (territoire de l’Union européenne) 92 (1) Subsection 3(1) of the Act is replaced by the following: Prohibition 3 (1) No foreign ship or non-duty paid ship shall, except in accordance with a licence, engage in the coasting trade. (2) Section 3 of the Act is amended by adding the following after subsection (2): Repositioning of empty containers (2.1) Subsection (1) does not apply in respect of carriage between one place in Canada and another, without consideration, by any of the following ships, of empty containers that are owned or leased by the ship’s owner and any ancillary equipment that is permanently affixed to the containers: (a) a non-duty paid ship whose owner is a Canadian entity or an EU entity; (b) a foreign ship that is registered in the first, or domestic, register of a member state of the European Union and whose owner is a Canadian entity, an EU entity or an entity that is under Canadian or European control; (c) a foreign ship that is registered in a second, or international, register of a member state of the European Union and whose owner is a Canadian entity, an EU entity or an entity under Canadian or European control; and (d) a foreign ship that is registered in a register other than the Canadian Register of Vessels or a register referred to in paragraph (b) or (c), and whose owner is a Canadian entity or an EU entity. Dredging activities (2.2) Subsection (1) does not apply in respect of dredging activities — other than dredging activities that are provided under an agreement with Her Majesty in right of Canada or with an entity which is listed in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA — carried out by a ship described in any of paragraphs (2.1)(a) to (d). 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Coasting Trade Act Section 92 Feeder services — continual or single trip (2.3) Subsection (1) does not apply in respect of (a) the carriage of goods by a ship that is described in paragraph (2.1)(b), from the port of Halifax — where the goods are loaded — to the port of Montreal, or vice versa, if that carriage is one leg of the importation of the goods into Canada; or (b) the carriage of goods by the ship from the port of Montreal — where the goods are loaded — to the port of Halifax, or vice versa, if that carriage is one leg of the exportation of the goods from Canada. Feeder services — single trip (2.4) Subject to subsection (2.5), subsection (1) does not apply in respect of the carriage, by a ship that is described in paragraph (2.1)(c), of goods in a container from the port of Montreal to the port of Halifax, or vice versa, if (a) that carriage is one leg of the importation of the goods into or exportation from Canada; and (b) the container is at least 6.1 metres in length and has an internal volume of at least 14 cubic metres, is designed for carrying goods more than once and by one or more modes of transportation, and does not have wheels or is not otherwise built for being driven or drawn. Subsequent coasting trade subject to subsection (1) (2.5) Once a ship has completed a carriage of goods as described in subsection (2.4), subsection (1) applies to the ship in respect of any such subsequent carriage of goods by the ship, until it departs from the exclusive economic zone of Canada or from the inland waters, as defined in subsection 2(1) of the Customs Act, at a location where the inland waters are contiguous to the United States. Provision of information (2.6) Before a ship engages, without a licence, in any activities referred to in subsections (2.1) to (2.4) and for which the owner of the ship intends to rely on an exemption under any one of those subsections, the owner shall provide information to an enforcement officer, in the form and manner specified by the Minister, establishing that the ship meets the applicable conditions under any of paragraphs (2.1)(a) to (d). 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Coasting Trade Act Section 92 (3) Section 3 of the Act is amended by adding the following after subsection (5): Other laws apply (6) For greater certainty, any law of Canada that imposes safety or pollution prevention requirements applies to a foreign ship that is exempted from the application of subsection (1). Control (7) For the purposes of paragraphs (2.1)(b) and (c), an entity is under Canadian or European control (a) in the case of a third party entity that is a corporation, if securities of the corporation to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are directly or indirectly held, otherwise than through a subsidiary or by way of security only, by or for the benefit of any of, or any combination of, the following individuals: (i) a Canadian citizen, (ii) a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act, or (iii) a national of a member state of the European Union; or (b) in the case of a third party entity that is a trust, partnership, joint venture or other association, if an individual, or any combination of individuals, described in any of subparagraphs (a)(i) to (iii) holds, directly or indirectly, but not through a subsidiary, an interest in the trust, partnership, joint venture or other association that entitles the individual or combination of individuals to receive more than 50% of its profits or more than 50% of its assets on dissolution. Third party entity (8) For the purposes of subsection (7), third party entity means (a) a corporation, other than an entity referred to in paragraph (a) of the definition of either Canadian entity or EU entity, that is not incorporated under the law of the United States; or (b) a trust, partnership, joint venture or other association, other than an entity referred to in paragraph (b) of the definition of either Canadian entity or EU 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Coasting Trade Act Sections 92-94 entity, that is not formed under the law of the United States. 93 The Act is amended by adding the following after section 5: Dredging — provisions not applicable 5.1 (1) The following provisions do not apply with respect to licence applications relating to dredging activities that are to be provided under an agreement with Her Majesty in right of Canada or with an entity which is listed in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA: (a) for an application made on behalf of a ship described in paragraph 3(2.1)(a), paragraph 5(a); and (b) for an application made on behalf of a ship described in paragraph 3(2.1)(b) or (c), paragraph 4(1)(a). Total value of agreement (2) Subsection (1) applies only if the total value of the agreement of which the dredging activities form a part is equal to or greater than the threshold — the sum in Canadian dollars which the Minister for International Trade determines to be equivalent, for a period which he or she determines, to 5 million special drawing rights issued by the International Monetary Fund — that is applicable on the day of the issuance of the call or request for bids or tenders related to the activities. 94 Section 7 of the Act is replaced by the following: Regulations 7 The Governor in Council may, by regulation (a) specify that a territory is, or is not, a territory referred to in the definition of territory of the European Union in subsection 2(1); (b) indicate, for the purpose of paragraph 3(2.1)(c), the registers that are second, or international, registers of member states of the European Union; and (c) fix the maximum number of licences that may be issued under sections 4 and 5. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Sections 95-97 1997, c. 36 Customs Tariff 95 Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order: Canada–European Union Comprehensive Economic and Trade Agreement has the same meaning as Agreement in section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act. (Accord économique et commercial global entre le Canada et l’Union européenne) EU country or other CETA beneficiary has the meaning assigned by regulation. (pays de l’Union européenne ou autre bénéficiaire de l’AÉCG) 96 Section 27 of the Act is amended by adding the following in alphabetical order: CEUT refers to the Canada–European Union Tariff. (TCUE) 97 The Act is amended by adding the following after section 49.7: Canada–European Union Tariff Application of CEUT 49.8 (1) Subject to section 24, goods that originate in an EU country or other CETA beneficiary are entitled to the Canada–European Union Tariff rates of customs duty. “A” final rate for CEUT (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CEUT” in relation to goods entitled to the Canada–European Union Tariff, the Canada–European Union Tariff rate of customs duty that applies to those goods is the final rate of “Free”. “F” staging for CEUT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CEUT” in relation to goods entitled to the Canada–European Union Tariff, the Canada–European Union Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Section 97 Staging for CEUT (4) If “W1”, “W2”, “W3” or “W4” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CEUT” in relation to goods entitled to the Canada–European Union Tariff, the Canada–European Union Tariff rate of customs duty that applies to those goods is the initial rate, reduced (a) if “W1” is set out, (i) effective on the coming into force of this section, to three quarters of the initial rate, (ii) effective on January 1 of the first year after the year in which this section comes into force, to one half of the initial rate, (iii) effective on January 1 of the second year after the year in which this section comes into force, to one quarter of the initial rate, and (iv) effective on January 1 of the third year after the year in which this section comes into force, to the final rate of “Free”; (b) if “W2” is set out, (i) effective on the coming into force of this section, to five sixths of the initial rate, (ii) effective on January 1 of the first year after the year in which this section comes into force, to two thirds of the initial rate, (iii) effective on January 1 of the second year after the year in which this section comes into force, to one half of the initial rate, (iv) effective on January 1 of the third year after the year in which this section comes into force, to one third of the initial rate, (v) effective on January 1 of the fourth year after the year in which this section comes into force, to one sixth of the initial rate, and (vi) effective on January 1 of the fifth year after the year in which this section comes into force, to the final rate of “Free”; (c) if “W3” is set out, (i) effective on the coming into force of this section, to seven eighths of the initial rate, 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Section 97 (ii) effective on January 1 of the first year after the year in which this section comes into force, to three quarters of the initial rate, (iii) effective on January 1 of the second year after the year in which this section comes into force, to five eighths of the initial rate, (iv) effective on January 1 of the third year after the year in which this section comes into force, to one half of the initial rate, (v) effective on January 1 of the fourth year after the year in which this section comes into force, to three eighths of the initial rate, (vi) effective on January 1 of the fifth year after the year in which this section comes into force, to one quarter of the initial rate, (vii) effective on January 1 of the sixth year after the year in which this section comes into force, to one eighth of the initial rate, and (viii) effective on January 1 of the seventh year after the year in which this section comes into force, to the final rate of “Free”; and (d) if “W4” is set out, (i) effective on the fifth anniversary of the day on which this section comes into force, to two thirds of the initial rate, (ii) effective on January 1 of the sixth year after the year in which this section comes into force, to one third of the initial rate, and (iii) effective on January 1 of the seventh year after the year in which this section comes into force, to the final rate of “Free”. Rounding of specific rates (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent. Rounding of amounts (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent, the resulting percentage shall be rounded down to the nearest one tenth of one percent. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Section 97 Rounding of amounts — fraction other than 0.5 (7) If, for any goods other than motor vehicles of heading No. 87.02, 87.03 or 87.04, a reduction under subsection (3) or (4) or a rounding of rates under subsection (6) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than 2% (8) If, for any goods other than motor vehicles of heading No. 87.02, 87.03 or 87.04, a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately. Regulations 49.9 The Governor in Council may, on the recommendation of the Minister, make regulations defining the term EU country or other CETA beneficiary. Extension and withdrawal of entitlement 49.91 (1) The Governor in Council may, on the recommendation of the Minister, by order, amend the schedule to (a) extend entitlement to the Canada–European Union Tariff to any goods that originate in an EU country or other CETA beneficiary; or (b) withdraw entitlement to the Canada–European Union Tariff from any goods that originate in a country if, in the opinion of the Governor in Council, those goods are not entitled to that Tariff under the Canada–European Union Comprehensive Economic and Trade Agreement. Content of order (2) An order made under subsection (1) (a) must specify the date on which the order becomes effective; (b) must, if the order partially extends entitlement to the Canada–European Union Tariff, indicate the goods to which entitlement to that Tariff is extended; (c) may exempt goods from the conditions set out in subsection 24(1) and prescribe any conditions that apply; and (d) must, if the order wholly or partially withdraws entitlement to the Canada–European Union Tariff, 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Sections 97-101 indicate the goods to which the Most-FavouredNation Tariff applies as a consequence. 2011, c. 24, s. 130 98 The definition customs duties in section 80 of the Act is replaced by the following: customs duties, other than for the purposes of sections 95, 96 and 98.1, means customs duties imposed under Part 2, other than surtaxes or temporary duties imposed under Division 4 of Part 2. (droits de douane) 99 Section 87 of the Act is amended by adding the following after subsection (4): Goods of tariff item No. 9971.00.00 — EU (5) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Canada–European Union Tariff is the value of the repairs or alterations made to those goods in an EU country or other CETA beneficiary. Limitation (6) Subsection (5) ceases to have effect on January 1 of the seventh year after the year in which this subsection comes into force. 100 The portion of subsection 89(1) of the Act before paragraph (a) is replaced by the following: Relief 89 (1) Subject to subsection (2), sections 95 and 98.1 and any regulations made under section 99, if an application for relief is made within the prescribed time, in accordance with subsection (4), by a person of a prescribed class, relief may be granted from the payment of duties that would but for this section be payable in respect of imported goods that are 2002, c. 19, s. 21(4) 101 (1) The portion of subsection 94(1) of the Act before paragraph (a) is replaced by the following: Definition of customs duties 94 (1) In sections 95, 96 and 98.1, customs duties means customs duties imposed under Part 2, other than 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Sections 101-102 2002, c. 22, s. 351 (2) Subsection 94(2) of the Act is replaced by the following: For greater certainty (2) For greater certainty, in sections 95, 96 and 98.1, customs duties does not include any duties or taxes levied or imposed on imported goods under the Excise Act, 2001, the Excise Tax Act or the Special Import Measures Act. 102 The Act is amended by adding the following after section 98: Repayment of relief — EU 98.1 (1) If relief is granted under section 89 in respect of goods used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and that benefit, when imported into that country, from a preferential tariff under the Canada–European Union Comprehensive Economic Trade Agreement, (a) the person who exported the other goods shall, within 60 days after exporting them, report their exportation in the prescribed manner to an officer at a customs office and pay an amount equal to the portion of the duties relieved under section 89 that are customs duties; and (b) subject to subsection (4) but despite any other provision of this Part, the person and any other person who was granted that relief are, from the time the other goods are exported, jointly and severally or solidarily liable to pay to Her Majesty in right of Canada the amount referred to in paragraph (a). Debt to Her Majesty (2) While it remains unpaid, the amount referred to in subsection (1) is a debt owing to Her Majesty in right of Canada under the Customs Act. No refund or drawback (3) No refund or drawback may be granted under section 113 for customs duties paid in respect of goods for which 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Section 102 relief of all or a portion of the duties could have been, but was not, granted under section 89, if (a) the goods are used as materials, or identical, equivalent or similar substitutes for those goods are used as materials, in the production of other goods; and (b) those other goods are exported, on or after the third anniversary of the day on which section 49.8 comes into force, to an EU country or other CETA beneficiary and benefit, when imported into that country, from a preferential tariff under the Canada– European Union Comprehensive Economic Trade Agreement. Exceptions (4) Subsections (1) and (3) do not apply to (a) imported goods that originate in an EU country or other CETA beneficiary that are used as materials, or for which identical, equivalent or similar substitutes are used as materials, in the production of other goods that are exported to an EU country or other CETA beneficiary; (b) imported goods referred to in subsection 89(1) that are deemed to have been exported by reason of their having been (i) placed in a duty free shop for exportation, (ii) designated as ships’ stores by regulations made under paragraph 99(g), or (iii) supplied for use on board a conveyance of a class prescribed under paragraph 99(g); or (c) any other imported goods or any imported goods used as materials, or any class of such goods, that may, on the recommendation of the Minister, be prescribed by the Governor in Council on the basis of an agreement between the Government of Canada and the other parties to the Canada–European Union Comprehensive Economic and Trade Agreement. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Sections 102-107 Definition of materials (5) In this section, materials means goods that are used in the processing of other goods, and includes parts or ingredients. 103 The portion of subsection 107(1) of the Act before paragraph (a) is replaced by the following: Effect of relief 107 (1) Subject to sections 95 and 98.1, if relief is granted under section 89, 92, 101 or 106 from the payment of the whole or a portion of duties, 104 The portion of subsection 113(1) of the Act before paragraph (a) is replaced by the following: Refund or drawback 113 (1) Subject to subsection (2), sections 96 and 98.1 and any regulations made under subsection (4), a refund or drawback shall be granted of all or a portion of duties if 105 Section 123 of the Act is amended by adding the following after subsection (7): Interest on the payment of relief for CETA (8) A person who is liable under subsection 98.1(1) to pay an amount shall pay, in addition to the amount, interest at the specified rate for the period beginning on the sixty-first day after on which the day the amount became payable and ending on the day on which the amount is paid in full, calculated on the amount of the balance outstanding. 106 (1) Paragraph 133(j) of the Act is amended by adding, in alphabetical order, a reference to “an EU country or other CETA beneficiary” in the list of countries. (2) Paragraph 133(j.1) of the Act is amended by adding, in alphabetical order, a reference to “an EU country or other CETA beneficiary” in the list of countries. 107 (1) The List of Countries and Applicable Tariff Treatments set out in the schedule to the Act is amended (a) by striking out the references to “Antilles, Netherlands”, “North Africa, Spanish” and 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Section 107 “West Indies, French” in the column “Country Name”; (b) by striking out, in the column “MFN”, the symbol “X” opposite the reference to the countries listed in paragraph (a); and (c) by striking out, in the column “GPT”, the symbol “X” opposite the reference to “North Africa, Spanish”. (2) The List of Countries and Applicable Tariff Treatments set out in the schedule to the English version of the Act is amended (a) by striking out the reference to “Southern and Antarctic Territories French” in the column “Country Name” and the symbol “X” under the columns “MFN” and “GPT” opposite the reference to that country; and (b) by adding, in alphabetical order, a reference to “French Southern and Antarctic Territories” in the column “Country Name” and the symbol “X” in the columns “MFN” and “GPT” opposite the reference to that country. (3) The List of Countries and Applicable Tariff Treatments set out in the schedule to the Act is amended (a) by adding, in alphabetical order, in the column “Country Name”, the following: Aruba Bonaire, Sint Eustatius and Saba Canary Islands Ceuta and Melilla Curaçao Faroe Islands French Guiana Greenland Guadeloupe Martinique Mayotte Réunion Saint Barthélemy Saint Martin 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Sections 107-108 Saint Pierre and Miquelon Sint Maarten South Georgia and the South Sandwich Islands Wallis and Futuna (b) by adding, in the column “MFN”, the symbol “X” opposite the references to those entries added under paragraph (a); (c) by adding, in the column “GPT”, the symbol “X” opposite the references to “Canary Islands” and “Ceuta and Melilla”. 108 (1) The List of Tariff Provisions set out in the schedule to the Act is amended by (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT”, a reference to “CEUT:”; (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT”, a reference to “CEUT:”; (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CEUT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CEUT”, for all tariff items except those set out in Schedules 4 and 5 to this Act; (d) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate”, a reference to “N/A” after the abbreviation “CEUT” for the tariff items set out in Schedule 4 to this Act; and (e) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “CEUT”, for each tariff item set out in Schedule 5 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Customs Tariff Sections 108-110 (2) The Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in alphabetical order, a reference to “an EU country or other CETA beneficiary” in the list of countries. (3) Note 1 to the Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following: Note 1: The Canada–European Union Tariff, Iceland Tariff, Korea Tariff, Norway Tariff and Switzerland–Liechtenstein Tariff rate of customs duty applicable to goods classified under this tariff item shall be, in respect of the value of the repair or alteration to the goods carried out only in an EU country or other CETA beneficiary, Iceland, Korea, Norway, Switzerland or Liechtenstein, respectively, determined under section 87 of this Act, in accordance with their classification in Chapters 1 to 97. (4) The Description of Goods of tariff item No. 9992.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in alphabetical order, a reference to “an EU country or other CETA beneficiary” in the list of countries. 2002, c. 28 Pest Control Products Act 109 Subsection 7(2) of the Pest Control Products Act is replaced by the following: Use of information provided by registrants (2) If the Minister determines that the active ingredient of the applicant’s pest control product is equivalent to the active ingredient of a registered pest control product, the Minister shall, subject to and in accordance with the regulations, permit the applicant to use or rely on any information referred to in subsection (1) that has been provided by any registrant if the Minister is satisfied that the information (a) is relevant to the registered pest control product that contains the equivalent active ingredient; and (b) is necessary to support the application. 110 Subsection 16(5) of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Pest Control Products Act Sections 110-111 Provision of information if more than one registrant (5) If there is more than one registrant whose registered pest control products have active ingredients that the Minister has determined to be equivalent, (a) two or more registrants may provide the information required under subsection (3) or paragraph 19(1)(a) jointly; and (b) if the Minister is satisfied that the information required under subsection (3) or paragraph 19(1)(a) has been provided by one or more registrants, the Minister shall, subject to and in accordance with the regulations, permit another registrant to use or rely on that information to meet the requirements under that subsection or paragraph. If active ingredients not equivalent (5.1) If the active ingredients of the registered pest control product that is subject to the re-evaluation are not equivalent to the active ingredients in another registrant’s registered pest control product, the Minister shall, subject to and in accordance with the regulations, permit the registrant whose product is subject to the re-evaluation to use or rely on information provided by the other registrant if the Minister is satisfied that the information is necessary for the re-evaluation. 111 Subsection 18(3) of the Act is replaced by the following: Provision of information if more than one registrant (3) If there is more than one registrant whose registered pest control products have active ingredients that the Minister has determined to be equivalent, (a) two or more registrants may provide the information required under subsection (1) or paragraph 19(1)(a) jointly; and (b) if the Minister is satisfied that the information required under subsection (1) or paragraph 19(1)(a) has been provided by one or more registrants, the Minister shall, subject to and in accordance with the regulations, permit another registrant to use or rely on that information to meet the requirements under that subsection or paragraph. If active ingredients not equivalent (3.1) If the active ingredients of a registered pest control product that is subject to the special review are not equivalent to the active ingredients in another registrant’s registered pest control product, the Minister shall, subject to and in accordance with the regulations, permit 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Pest Control Products Act Sections 111-115 the registrant whose product is subject to the special review to use or rely on information provided by the other registrant if the Minister is satisfied that the information is necessary for the special review. 112 Subsection 66(2) of the Act is replaced by the following: Negotiation and arbitration (2) An agreement referred to in subsection (1) shall be entered into, and provide for the determination of compensation payable through negotiation and binding arbitration, in accordance with the regulations. 113 Subsection 67(1) of the Act is amended by adding the following after paragraph (z): (z.01) respecting the entering into of agreements and the determination of compensation payable through negotiations and binding arbitration, under section 66; Transitional Provisions Definition of Act 114 In sections 115 and 116, Act means the Trademarks Act. Indications in Schedule 115 (1) Despite subsection 11.12(2) and section 11.13 of the Act, the Registrar, as defined in section 2 of the Act, must, as soon as feasible after this section comes into force, enter the indications set out in Schedule 6 to this Act on the list of geographical indications kept under subsection 11.12(1) of the Act. Deemed entered on list (2) Those indications and all translations of those indications are deemed to have been entered on the list on the day on which this section comes into force. For greater certainty (3) For greater certainty, the Registrar is not required to enter those translations on the list. Geographical indications (4) Each of those indications, to the extent that it remains on the list, is deemed to be a geographical indication as defined in section 2 of the Act. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Transitional Provisions Sections 115-116 Acquired rights (5) For the purpose of subsection 11.2(3) of the Act, the reference to “the day on which a statement by the Minister is published under subsection 11.12(2) or (2.1)” is to be read, with respect to those indications, as a reference to “the day on which this section comes into force”. Indication “Feta” (6) For the purpose of section 11.22 of the Act, the indication “Feta” is deemed to be listed in Part A of Annex 20-A, as amended from time to time, of Chapter Twenty of the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016, to the extent that the indication “Φέτα” (Feta) remains listed in that Part A of Annex 20-A of that Agreement. Additional indications 116 (1) On the publication of a statement by the Minister, as defined in section 11.11 of the Act, that a geographical indication has been added to Part A of Annex 20-A, as amended from time to time, of Chapter Twenty of the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016, the Registrar, as defined in section 2 of the Act, must, despite subsection 11.12(2) and section 11.13 of the Act, enter the indication on the list kept under subsection 11.12(1) of the Act. Information in statement (2) The Minister’s statement must set out the information described in paragraphs 11.12(3)(b) to (d) and (f) of the Act in respect of the indication. Deemed entered on list (3) The indication and all translations of the indication are deemed to have been entered on the list on the date on which the indication is added to Part A of Annex 20-A of Chapter Twenty of that Agreement. For greater certainty (4) For greater certainty, the Registrar is not required to enter those translations on the list. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 2 Related Amendments Transitional Provisions Sections 116-118 Geographical indication (5) The indication, to the extent that it remains on the list, is deemed to be a geographical indication as defined in section 2 of the Act. Acquired rights (6) For the purpose of subsection 11.2(3) of the Act, the reference to “the day on which a statement by the Minister is published under subsection 11.12(2) or (2.1)” is to be read, with respect to the indication, as a reference to “the date on which the indication is added to Part A of Annex 20-A, as amended from time to time, of Chapter Twenty of the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016”. Investment Canada Act — Section 14.11 117 Any application that is filed under section 17 of the Investment Canada Act before the day on which section 14.11 of that Act as enacted by section 80 of this Act comes into force and in respect of which the Minister of Industry has not issued a decision before that day is deemed never to have been filed if (a) the investment to which the application relates would have been subject to subsections 14.11(1) or (2) of that Act, had the application been filed on that day; and (b) the enterprise value of the assets to which the application relates is less than the amount referred to in paragraph 14.11(1)(a) of that Act. PART 3 Consequential Amendments R.S.C. 1970, c. C-32 Canada Corporations Act 118 Paragraph 16(1)(b) of the Canada Corporations Act is replaced by the following: (b) to apply for, purchase or otherwise acquire any patents, patent rights, certificates of supplementary protection issued under the Patent Act, rights under such a certificate, copyrights, trade marks, formulae, licences, concessions and the like, conferring any exclusive or non-exclusive or limited right to use, or any secret or other information as to any invention that 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Canada Corporations Act Sections 118-121 may seem capable of being used for any of the purposes of the company, or the acquisition of which may seem calculated directly or indirectly to benefit the company, and to use, exercise, develop or grant licences in respect of, or otherwise turn to account, the property, rights or information so acquired; 119 Paragraph 68(1)(e) of the Act is replaced by the following: (e) a mortgage or charge on goodwill, on any patent or licence under a patent, on any certificate of supplementary protection issued under the Patent Act or licence under such a certificate, on any trade mark or on any copyright or licence under a copyright, R.S.C. 1970, c. 10 (1st Supp.), s. 15 120 Clause 121(1)(k)(iv)(C) of the Act is replaced by the following: (C) patents and certificates of supplementary protection issued under the Patent Act, R.S., c. A-16; 1997, c. 9, s. 89 Nuclear Energy Act 1997, c. 9, s. 92 121 Paragraphs 10(1)(c) and (d) of the Nuclear Energy Act are replaced by the following: (c) with the approval of the Governor in Council, lease or, by purchase, requisition or expropriation, acquire or cause to be acquired nuclear substances and any mines, deposits or claims of nuclear substances and patent rights or certificates of supplementary protection issued under the Patent Act relating to nuclear energy and any works or property for production or preparation for production of, or for research or investigations with respect to, nuclear energy; and (d) with the approval of the Governor in Council, license or otherwise make available or sell or otherwise dispose of discoveries and inventions relating to, and improvements in processes, apparatus or machines used in connection with, nuclear energy, patent rights and certificates of supplementary protection acquired under this Act and collect royalties and fees on and payments for those licences, discoveries, inventions, improvements, patent rights and certificates. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Nuclear Energy Act Sections 122-123 R.S., c. B-3; 1992, c. 27, s. 2 Bankruptcy and Insolvency Act 1993, c. 34, s. 10(E) 122 Section 82 of the Bankruptcy and Insolvency Act is replaced by the following: Trustee to have right to sell patented articles 82 (1) If any property of a bankrupt vesting in a trustee consists of articles that are subject to a patent or to a certificate of supplementary protection issued under the Patent Act and were sold to the bankrupt subject to any restrictions or limitations, the trustee is not bound by the restrictions or limitations but may sell and dispose of the articles free and clear of the restrictions or limitations. Right of manufacturer (2) If the manufacturer or vendor of the articles referred to in subsection (1) objects to the disposition of them by the trustee as provided by this section and gives to the trustee notice in writing of the objection before their sale or disposition, that manufacturer or vendor has the right to purchase the articles at their invoice prices, subject to any reasonable deduction for depreciation or deterioration. R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19 Competition Act 1990, c. 37, s. 29 123 (1) The portion of subsection 32(1) of the Competition Act before paragraph (a) is replaced by the following: Powers of Federal Court where certain rights used to restrain trade 32 (1) In any case where use has been made of the exclusive rights and privileges conferred by one or more patents for invention, by one or more certificates of supplementary protection issued under the Patent Act, by one or more trade-marks, by a copyright or by a registered integrated circuit topography, so as to 1990, c. 37, s. 29 (2) The portion of subsection 32(2) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Competition Act Sections 123-125 Orders (2) The Federal Court, on an information exhibited by the Attorney General of Canada, may, for the purpose of preventing any use in the manner defined in subsection (1) of the exclusive rights and privileges conferred by any patents for invention, certificates of supplementary protection issued under the Patent Act, trade-marks, copyrights or registered integrated circuit topographies relating to or affecting the manufacture, use or sale of any article or commodity that may be a subject of trade or commerce, make one or more of the following orders: 1990, c. 37, s. 29 (3) Paragraph 32(2)(c) of the Act is replaced by the following: (c) directing the grant of licences under any such patent, certificate of supplementary protection, copyright or registered integrated circuit topography to the persons and on the terms and conditions that the court may deem proper or, if the grant and other remedies under this section would appear insufficient to prevent that use, revoking the patent or certificate of supplementary protection; 2002, c. 16, s. 4(F) (4) Subsection 32(3) of the Act is replaced by the following: Treaties, etc. (3) No order shall be made under this section that is at variance with any treaty, convention, arrangement or engagement respecting patents, certificates of supplementary protection, trade-marks, copyrights or integrated circuit topographies to which Canada is a party. 2009, c. 2, s. 426 124 Paragraph 76(3)(c) of the Act is replaced by the following: (c) has the exclusive rights and privileges conferred by a patent, certificate of supplementary protection issued under the Patent Act, trade-mark, copyright, registered industrial design or registered integrated circuit topography. 1990, c. 37, s. 32 125 Paragraph 86(4)(b) of the Act is replaced by the following: 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Competition Act Sections 125-127 (b) a wider licensing of patents, certificates of supplementary protection issued under the Patent Act or registered integrated circuit topographies; R.S., c. D-1 Defence Production Act 1994, c. 47, s. 220 (Sch. IV, item 3) 126 Paragraph (b) of the definition royalties in section 2 of the Defence Production Act is replaced by the following: (b) claims for damages for the infringement or use of any registered topography within the meaning of the Integrated Circuit Topography Act or of any patent, certificate of supplementary protection issued under the Patent Act or registered industrial design; 1994, c. 47, s. 220 (Sch. IV, item 4) 127 (1) Subsections 22(1) and (2) of the Act are replaced by the following: Relief from claims and proceedings for royalties 22 (1) The Minister may, on behalf of Her Majesty, contract with any person that Her Majesty will relieve that person from any claims, actions or proceedings for the payment of royalties for the use or infringement of any patent, certificate of supplementary protection, registered industrial design or registered topography by that person in, or for the furnishing of any engineering or technical assistance or services to that person for, the performance of a defence contract. Relief from royalty payments (2) A person with whom the Minister has contracted under subsection (1) is not liable to pay royalties under any contract, statute or otherwise by reason of the use or infringement of a patent, certificate of supplementary protection, registered industrial design or registered topography in, or in respect of engineering or technical assistance or services furnished for, the performance of a defence contract and to which the contract under subsection (1) applies. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Defence Production Act Sections 127-128 1994, c. 47, s. 220 (Sch. IV, item 4) (2) Subsection 22(3) of the English version of the Act is replaced by the following: Compensation for use (3) A person who, but for subsection (2), would be entitled to a royalty from another person for the infringement or use of a patent, certificate of supplementary protection, registered industrial design or registered topography or in respect of engineering or technical assistance or services is entitled to reasonable compensation from Her Majesty for the infringement, use or services and, if the Minister and that person cannot agree as to the amount of the compensation, it shall be fixed by the Commissioner of Patents. 1994, c. 47, s. 220 (Sch. IV, item 4) (3) Subsection 22(5) of the Act is replaced by the following: Definitions (5) In this section, certificate of supplementary protection has the same meaning as in section 2 of the Patent Act and registered topography has the same meaning as in subsection 2(1) of the Integrated Circuit Topography Act. R.S., c. F-7; 2002, c. 8, s. 14 Federal Courts Act 1990, c. 37, s. 34(1); 2002, c. 8, s. 29 128 Section 20 of the Federal Courts Act is replaced by the following: Industrial property, exclusive jurisdiction 20 (1) The Federal Court has exclusive original jurisdiction, between subject and subject as well as otherwise, (a) in all cases of conflicting applications for any patent of invention or for any certificate of supplementary protection under the Patent Act, or for the registration of any copyright, trade-mark, industrial design or topography within the meaning of the Integrated Circuit Topography Act; and (b) in all cases in which it is sought to impeach or annul any patent of invention or any certificate of supplementary protection issued under the Patent Act, or to have any entry in any register of copyrights, trademarks, industrial designs or topographies referred to in paragraph (a) made, expunged, varied or rectified. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Federal Courts Act Sections 128-129 Industrial property, concurrent jurisdiction (2) The Federal Court has concurrent jurisdiction in all cases, other than those mentioned in subsection (1), in which a remedy is sought under the authority of an Act of Parliament or at law or in equity respecting any patent of invention, certificate of supplementary protection issued under the Patent Act, copyright, trade-mark, industrial design or topography referred to in paragraph (1)(a). R.S., c. P-32 Public Servants Inventions Act 129 (1) Subsection 9(1) of the Public Servants Inventions Act is replaced by the following: Administration and control of inventions 9 (1) The administration and control of any invention vested in Her Majesty by this Act and any patent or certificate of supplementary protection issued with respect to the invention are vested in the appropriate minister, and the appropriate minister may transfer that administration and control to any other minister or to any corporate agency of Her Majesty. (2) Subsection 9(3) of the Act is replaced by the following: Authority of Crown agencies (3) Despite anything in its charter or Act of incorporation, an agency to which the administration and control of any invention, patent or certificate of supplementary protection is transferred under this section has the capacity and power to receive, hold, administer, control, develop and exploit the invention, patent or certificate and generally to carry out the provisions of this Act with respect to the invention, patent or certificate. (3) Subsection 9(4) of the English version of the Act is replaced by the following: Administration of moneys (4) If the administration and control of any invention or patent has been transferred under this section to a corporate agency of Her Majesty, any money received by the corporate agency in the course of the administration and control of the invention, patent or certificate of supplementary protection may be retained by that corporate 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Public Servants Inventions Act Sections 129-132 agency, and shall be used for the purposes of this Act and the objects and purposes for which the agency was established. 2007, c. 25 Olympic and Paralympic Marks Act 130 Paragraph 3(4)(f) of the Olympic and Paralympic Marks Act is replaced by the following: (f) the use of a protected geographical indication identifying a wine or spirit or an agricultural product or food if the wine or spirit or the agricultural product or food originates in the territory indicated by the indication; 2014, c. 28 Canada–Korea Economic Growth and Prosperity Act 131 The heading before section 16 and sections 16 to 22 of the Canada–Korea Economic Growth and Prosperity Act are repealed. Transitional Provisions Korean indications 132 (1) Despite subsection 11.12(2) and section 11.13 of the Trade-marks Act, the Registrar, as defined in section 2 of that Act, must, as soon as practicable after this subsection comes into force, enter all of the following indications on the list of geographical indications kept under subsection 11.12(1) of that Act: (a) GoryeoHongsam; (b) GoryeoBaeksam; (c) GoryeoSusam; (d) IcheonSsal; (e) ginseng rouge de Corée; (f) ginseng blanc de Corée; (g) ginseng frais de Corée; (h) riz Icheon; 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 3 Consequential Amendments Transitional Provisions Sections 132-133 (i) Korean Red Ginseng; (j) Korean White Ginseng; (k) Korean Fresh Ginseng; (l) Icheon Rice. Deemed entry on list (2) The indications and all translations of those indications are deemed to have been entered on the list on the day on which this section comes into force. For greater certainty (3) For greater certainty, the Registrar is not required to enter those translations on the list. Geographical indications (4) Each of those indications, to the extent that it remains on the list, is deemed to be a geographical indication as defined in section 2 of that Act. Acquired rights — Canada–Korea (5) For the purpose of subsection 11.2(3) of that Act, the reference to “the day on which a statement by the Minister is published under subsection 11.12(2) or (2.1)” is to be read, with respect to the indication listed in section 11.23, as a reference to “January 1, 2015”. PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments 2009, c. 23 133 (1) In this section, other Act means the Canada Not-for-profit Corporations Act. (2) If paragraph 313(j) of the other Act comes into force before section 118 of this Act, then that section 118 is repealed. (3) If paragraph 313(j) of the other Act comes into force on the same day as section 118 of this Act, then that section 118 is deemed never to have come into force and is repealed. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Sections 133-134 (4) If paragraph 313(s) of the other Act comes into force before section 119 of this Act, then that section 119 is repealed. (5) If paragraph 313(s) of the other Act comes into force on the same day as section 119 of this Act, then that section 119 is deemed never to have come into force and is repealed. (6) If paragraph 313(z.08) of the other Act comes into force before section 120 of this Act, then that section 120 is repealed. (7) If paragraph 313(z.08) of the other Act comes into force on the same day as section 120 of this Act, then that section 120 is deemed never to have come into force and is repealed. 2014, c. 20 134 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1. (2) If section 362 of the other Act comes into force before section 60 of this Act, then every reference to “trade-name” in section 60 of the English version of this Act is replaced by a reference to “trade name”. (3) If section 362 of the other Act comes into force on the same day as section 60 of this Act, then that section 60 is deemed to have come into force before that section 362. (4) If section 366 of the other Act comes into force before this Act receives royal assent, then every reference to “trade-mark”, “trade-marks” and “Trade-marks” is replaced by a reference to “trademark”, “trademarks” and “Trademarks”, respectively, in the following provisions of the English version of this Act: (a) the heading before section 60; (b) sections 60 to 79; (c) sections 123 and 124; (d) section 128; and (e) subsection 132(1). (5) If section 366 of the other Act comes into force on the day on which this Act receives royal assent, then this Act is deemed to have received royal assent before that section 366 comes into force. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Section 134 (6) If section 355 of the other Act comes into force before section 74 of this Act, then that section 74 is replaced by the following: 74 Section 61(1) of the Act is replaced by the following: Judgments to be filed 61 (1) An officer of the Registry of the Federal Court shall file with the Registrar a certified copy of every judgment or order made by the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada relating to any trademark on the register or to any protected geographical indication. (7) If section 355 of the other Act comes into force on the same day as section 74 of this Act, then that section 74 is deemed to have come into force before that section 355. (8) If section 358.3 of the other Act comes into force before section 76 of this Act, then that section 76 is replaced by the following: 76 The Act is amended by adding the following before section 69: Use of the indication “Beaufort” 68.1 (1) During the period that begins on the day on which this subsection comes into force and ends on the fifth anniversary of that day, section 11.15 does not apply to the use, in connection with a business, of the indication “Beaufort”, or any translation of it in any language, by a person, if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of cheeses, as set out in the schedule, for less than 10 years before October 18, 2013. Use of the indication “Nürnberger Bratwürste” (2) During the period that begins on the day on which this subsection comes into force and ends on the fifth anniversary of that day, section 11.15 does not apply to the use, in connection with a business, of the indication “Nürnberger Bratwürste”, or any translation of it in any language, by a person, if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of fresh, frozen and processed meats, as set out in the schedule, for less than five years before October 18, 2013. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Sections 134-135 Use of the indication “Jambon de Bayonne” (3) During the period that begins on the day on which this subsection comes into force and ends on the fifth anniversary of that day, section 11.15 does not apply to the use, in connection with a business, of the indication “Jambon de Bayonne”, or any translation of it in any language, by a person, if they or their predecessor in title used the indication or the translation in relation to any business or commercial activity in respect of an agricultural product or food of the category of dry-cured meats, as set out in the schedule, for less than 10 years before October 18, 2013. Restriction (4) For the purposes of subsections 68.1(1) to (3), no person is a predecessor in title if they only transferred the right to use the indication or the translation, or both. (9) If section 76 of this Act comes into force before section 358.3 of the other Act, then that section 358.3 is repealed. (10) If section 358.3 of the other Act comes into force on the same day as section 76 of this Act, then that section 358.3 is deemed never to have come into force and is repealed. 2014, c. 39 135 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 2. (2) If subsection 32(3) of this Act comes into force before section 114 of the other Act, then that section 114 is replaced by the following: 114 The definition filing date in section 2 of the Patent Act is replaced by the following: filing date means the date on which an application for a patent in Canada is filed, as determined in accordance with section 28 or subsection 28.01(2) or 36(4); (date de dépôt) (3) If section 114 of the other Act comes into force on the same day as subsection 32(3) of this Act, then that section 114 is deemed to have come into force before that subsection 32(3). (4) If section 33 of this Act comes into force before section 116 of the other Act, then that section 116 is repealed. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Section 135 (5) If section 116 of the other Act comes into force on the same day as section 33 of this Act, then that section 116 is deemed never to have come into force and is repealed. (6) On the first day on which both subsection 118(5) of the other Act and subsection 34(3) of this Act are in force, paragraph 12(1)(j.8) of the Patent Act is replaced by the following: (j.8) authorizing the Commissioner to, during or after the end of the time period fixed under this Act in respect of any business before the Patent Office, for doing anything, extend that time period, subject to any prescribed terms and conditions, if the Commissioner considers that the circumstances justify the extension; (7) If section 126 of the other Act comes into force before section 36 of this Act, then that section 36 is repealed. (8) If section 36 of this Act comes into force before section 126 of the other Act, then that section 126 is repealed. (9) If section 126 of the other Act comes into force on the same day as section 36 of this Act, then that section 126 is deemed never to have come into force and is repealed. (10) On the first day on which both section 134 of the other Act and section 59 of this Act are in force, subsection 118(1) of the Patent Act is replaced by the following: Transfer of patent 118 (1) Despite subsection 49(1), a certificate of supplementary protection, or an application for one, is not transferable other than by the transfer of the patent, or part of the patent, that is set out in the certificate or application. (11) On the first day on which both section 136 of the other Act and section 59 of this Act are in force, subsection 124(1) of the Patent Act is amended by adding the following after paragraph (d): (d.1) section 55.11, with (i) in subsection (1), the reference to “the following patents” to be read as a reference to “certificates of supplementary protection that set out the following patents”, 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Sections 135-136 (ii) in subsections (2) and (4), any reference to “patent” to be read as a reference to “certificate of supplementary protection”, and (iii) in subsection (3), any reference to “a patent” to be read as a reference to “a patent, or the certificate of supplementary protection that sets out the patent,” and any reference to “the patent” to be read as a reference to “the certificate of supplementary protection”; 2015, c. 36 136 (1) In this section, other Act means the Economic Action Plan 2015 Act, No. 1. (2) On the first day on which both subsection 53(3) of the other Act and section 59 of this Act are in force, the portion of paragraph 12(1)(j.81) of the Patent Act before subparagraph (i) is replaced by the following: (j.81) respecting the correction of obvious errors in documents submitted to the Commissioner or the Patent Office or in patents or other documents granted or issued under this Act, other than under sections 106 to 134, including (3) If section 35 of this Act comes into force before section 55 of the other Act, then that section 55 is repealed. (4) If section 55 of the other Act comes into force on the same day as section 35 of this Act, then that section 55 is deemed never to have come into force and is repealed. (5) If section 60 of the other Act comes into force before section 40 of this Act, then that section 40 is replaced by the following: 40 The Act is amended by adding the following before section 63: Judgment voiding patent 62 A patent, or part of a patent, that is voided by a judgment shall be and be held to have been void and of no effect, unless the judgment is reversed on appeal as provided in section 63. (6) If section 40 of this Act comes into force before section 60 of the other Act, then that section 60 is repealed. (7) If section 60 of the other Act comes into force on the same day as section 40 of this Act, then 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Sections 136-137 that section 60 is deemed never to have come into force and is repealed. (8) If section 42 of this Act comes into force before subsection 61(2) of the other Act, then that subsection 61(2) is repealed. (9) If subsection 61(2) of the other Act comes into force on the same day as section 42 of this Act, then that subsection 61(2) is deemed never to have come into force and is repealed. (10) On the first day on which both section 63 of the other Act and section 44 of this Act are in force, subsection 78(1) of the Patent Act is replaced by the following: Time period extended 78 (1) If a time period fixed under this Act, in respect of any business before the Patent Office, for doing anything ends on a prescribed day or a day that is designated by the Commissioner, that time period is extended to the next day that is not a prescribed day or a designated day. Bill C-13 137 (1) Subsections (2) to (7) apply if Bill C-13, introduced in the 1st session of the 42nd Parliament and entitled An Act to amend the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act, 1999, the Pest Control Products Act and the Canada Consumer Product Safety Act and to make related amendments to another Act (in this section referred to as the “other Act”), receives royal assent. (2) If subsection 8(5) of the other Act comes into force before section 26 of this Act, then that section 26 is repealed. (3) If section 26 of this Act comes into force before subsection 8(5) of the other Act, then that subsection 8(5) is repealed. (4) If subsection 8(5) of the other Act comes into force on the same day as section 26 of this Act, then that section 26 is deemed never to have come into force and is repealed. (5) If section 11 of the other Act comes into force before section 27 of this Act, then that section 27 is repealed. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act PART 4 Coordinating Amendments and Coming into Force Coordinating Amendments Sections 137-138 (6) If section 27 of this Act comes into force before section 11 of the other Act, then that section 11 is repealed. (7) If section 11 of the other Act comes into force on the same day as section 27 of this Act, then that section 27 is deemed never to have come into force and is repealed. Coming into Force Order in council 138 (1) Subject to subsections (2) to (5), the provisions of this Act, other than sections 133 to 137, come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Subsection 8(3), paragraph 11(1)(a), subsection 11(2), paragraph 13(a) and section 90 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day referred to in subsection (1). Order in council (3) Subsections 32(1) and (4) come into force on a day to be fixed by order of the Governor in Council. Order in council (4) Subsections 32(2) and 34(1) and (2) and sections 36 and 38 to 42 come into force on a day or days to be fixed by order of the Governor in Council, but that day or those days must be on or before the day referred to in subsection (1). Order in council (5) Sections 45 to 58 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day referred to in subsection (1). 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 1 SCHEDULE 1 (Section 24) SCHEDULE 2 (Subsection 5.2(1)) Intergovernmental Arrangements — Collection of Information Relating to Quotas Column 1 Intergovernmental Arrangement Column 2 Provisions CCFTA Schedules to Annex C-02.2, in accordance with Appendix 5.1 of Annex C-00-B CCRFTA Schedule to Annex III.3.1, in accordance with Appendix III.1.6.1 of Annex III.1 CETA Schedules to Annex 2-A, in accordance with Annex 5-A to Annex 5 of the Protocol on Rules of Origin and Origin Procedures CHFTA Schedules to Annex 3.4.1, in accordance with Annex 3.1 NAFTA Schedules to Annex 302.2, in accordance with Appendix 6 of Annex 300-B SCHEDULE 3 (Subsection 5.2(2)) Intergovernmental Arrangements — Collection of Information Relating to Imports of Textile and Apparel Goods Column 1 Intergovernmental Arrangement Column 2 CCFTA Appendix 1.1 of Annex C-00-B CCRFTA Appendix III.1.1.1 of Annex III.1 2015-2016-2017 Provisions Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 1 Column 1 Intergovernmental Arrangement Column 2 CETA Tables C.3 and C.4 of Annex 5-A to Annex 5 of the Protocol on Rules of Origin and Origin Procedures CHFTA Section 1 of Annex 3.1 NAFTA Appendix 1.1 of Annex 300-B Provisions SCHEDULE 4 (Section 9.1) Intergovernmental Arrangements — Issuance of Certificates for the Export of Goods Subject to Foreign Import Quotas Column 1 Column 2 Country or Territory Provisions Column 3 Provisions Providing for Rates of Duty Chile Appendix 5.1 to Annex C-00-B of CCFTA Schedules to Annex C-02.2 of CCFTA, in accordance with Appendix 5.1 to Annex C-00-B of CCFTA Costa Rica Appendix III.1.6.1 to Annex III.1 of CCRFTA Schedules to Annex III.3.1 of CCRFTA, in accordance with Appendix III.1.6.1 to Annex III.1 of CCRFTA EU country or other CETA beneficiary Annex 5-A to Annex 5 of the Protocol on Rules of Origin and Origin Procedures of CETA Annex 2-A of CETA, in accordance with Annex 5-A to Annex 5 of the Protocol on Rules of Origin and Origin Procedures of CETA Honduras Section 5 of Schedules to Annex 3.4.1 of Annex 3.1 of CHFTA, in accordance with CHFTA section 5 of Annex 3.1 of CHFTA NAFTA country Appendix 6 to Annex 300-B of NAFTA 2015-2016-2017 Schedules to Annex 302.2 of NAFTA, in accordance with Appendix 6 to Annex 300-B of NAFTA Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 2 SCHEDULE 2 (Section 77) SCHEDULE (Section 2, subsection 11.11(1), paragraphs 11.12(3)(b.1) and (3.1)(c) paragraph 11.17(5)(a), subsections 11.17(6) and (7), section 11.24, pa 68.1(1) to (3)) Categories of Agricultural Products Item Categories* 1 2 3 Fresh, frozen and processed meats: produ Dry-cured meats: dry-cured meats produc Fresh, frozen and processed fish products 16.04 or 16.05 Butter: products falling under heading 04.0 Cheeses: products falling under heading 0 Fresh and processed vegetable products: p containing vegetables falling under Chapt Fresh and processed fruits and nuts: produ fruits or nuts falling under Chapter 20 Spices: products falling under Chapter 9 Cereals: products falling under Chapter 10 Products of the milling industry: products Oilseeds: products falling under Chapter 1 Hops: products falling under heading 12.1 Ginseng: ginseng products falling under h Beverages from plant extracts: products fa Oils and animal fats: products falling unde Confectionery and baked products: produc Sugars and syrups: products falling under Pasta: products falling under heading 19.0 Table and processed olives: products fallin Mustard paste: products falling under sub Beer: products falling under heading 22.03 Vinegar: products falling under heading 22 Essential oils: products falling under head Natural gums and resins – chewing gum: p 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 * All references in this schedule to chapters and headings are refer Description and Coding System as it read on October 30, 2016. 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 2 (French) ANNEXE 2 (article 77) ANNEXE (article 2, paragraphe 11.11(1), alinéas 11.12(3)b.1) et (3.1)c) et 11.15( paragraphes 11.17(6) et (7), article 11.24, alinéas 12(1)h.1) et 51.02b) Catégories de produits agricoles ou Article Catégories* Viandes fraîches, congelées et transformé positions 16.01 ou 16.02 Viandes salées à sec : produits de viandes positions 16.01 ou 16.02 Produits de poissons frais, congelés et tra positions 16.03, 16.04 ou 16.05 Beurre : produits mentionnés à la position Fromages : produits mentionnés à la posit Produits de légumes frais et transformés : contenant des légumes mentionnés au ch Fruits et noix frais et transformés : produit fruits ou des noix mentionnés au chapitre Épices : produits mentionnés au chapitre 9 Céréales : produits mentionnés au chapitr Produits de l’industrie meunière : produits Oléagineux : produits mentionnés au chap Houblon : produits mentionnés à la positio Ginseng : produits du ginseng mentionné Boissons d’extraits végétaux : produits me Huiles végétales et graisses animales : pro Produits de confiserie et de boulangerie : ou 19.05 Sirop et sucre : produits mentionnés à la p Pâtes : produits mentionnés à la position 1 Olives de table et transformées : produits Pâte de moutarde : produits mentionnés à Bière : produits mentionnés à la position 2 Vinaigre : produits mentionnés à la positio Huiles essentielles : produits mentionnés Gommes et résines naturelles : produits m 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 * Dans cette annexe, tous les renvois à un chapitre ou une position de désignation et de codification des marchandises, dans sa versio 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 3 SCHEDULE 3 (Section 81) SCHEDULE (Subsection 14.11(6) and section 14.3) Column 1 Trade Agreement Column 2 Provision NAFTA Agreement within the meaning of subsection 24(4) of this Act Article 201 Agreement within the meaning of subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act Article B-01 Agreement within the meaning of sec- Article 105 tion 2 of the Canada–Peru Free Trade Agreement Implementation Act Agreement within the meaning of sec- Article 106 tion 2 of the Canada–Colombia Free Trade Agreement Implementation Act Agreement within the meaning of sec- Article 1.01 tion 2 of the Canada–Panama Economic Growth and Prosperity Act Agreement within the meaning of sec- Article 2.1 tion 2 of the Canada–Honduras Economic Growth and Prosperity Act Agreement within the meaning of sec- Article 1.8 tion 2 of the Canada–Korea Economic Growth and Prosperity Act 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 4 SCHEDULE 4 (Paragraphs 108(1)(c) and (d)) 0105.11.22 0105.94.92 0105.99.12 0207.11.92 0207.12.92 0207.13.92 0207.13.93 0207.14.22 0207.14.92 0207.14.93 0207.24.12 0207.24.92 0207.25.12 0207.25.92 0207.26.20 0207.26.30 0207.27.12 0207.27.92 0207.27.93 0209.90.20 0209.90.40 0210.99.12 0210.99.13 0210.99.15 0210.99.16 0401.10.20 0401.20.20 0401.40.20 0401.50.20 0402.10.20 0402.21.12 0402.21.22 0402.29.12 0402.29.22 0402.91.20 0402.99.20 0403.10.20 0403.90.12 0403.90.92 0404.10.22 0404.90.20 0405.10.20 0405.20.20 2015-2016-2017 0405.90.20 0406.10.20 0406.20.12 0406.20.92 0406.30.20 0406.40.20 0406.90.12 0406.90.22 0406.90.32 0406.90.42 0406.90.52 0406.90.62 0406.90.72 0406.90.82 0406.90.92 0406.90.94 0406.90.96 0406.90.99 0407.11.12 0407.11.92 0407.21.20 0407.90.12 0408.11.20 0408.19.20 0408.91.20 0408.99.20 1517.10.20 1517.90.22 1601.00.22 1601.00.32 1602.20.22 1602.20.32 1602.31.13 1602.31.14 1602.31.94 1602.31.95 1602.32.13 1602.32.14 1602.32.94 1602.32.95 1701.91.10 1701.99.10 1702.90.21 1702.90.61 1702.90.70 1702.90.81 1806.20.22 1806.90.12 1901.20.12 1901.20.22 1901.90.32 1901.90.34 1901.90.52 1901.90.54 2105.00.92 2106.90.32 2106.90.34 2106.90.52 2106.90.94 2202.99.33 2309.90.32 3502.11.20 3502.19.20 9801.20.00 9826.10.00 9826.20.00 9826.30.00 9826.40.00 9897.00.00 9898.00.00 9899.00.00 9904.00.00 9938.00.00 9987.00.00 9990.00.00 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 5 SCHEDULE 5 (Paragraphs 108(1)(c) and (e)) Tariff Item Initial Rate Final Rate 0404.10.90 11% Free (W2) 0603.11.00 10.5% Free (W1) 0603.13.10 16% Free (W1) 0603.13.90 12.5% Free (W1) 0603.14.00 8% Free (W1) 1003.10.12 94.5% Free (W2) 1003.90.12 94.5% Free (W2) 1107.10.12 $157.00/tonne Free (W2) 1107.10.92 $160.10/tonne Free (W2) 1107.20.12 $141.50/tonne Free (W2) 1108.13.00 10.5% Free (W2) 1701.91.90 $30.86/tonne Free (W4) 1701.99.90 $30.86/tonne Free (W4) 8702.10.10 6.1% Free (W2) 8702.10.20 6.1% Free (W2) 8702.20.10 6.1% Free (W2) 8702.20.20 6.1% Free (W2) 8702.30.10 6.1% Free (W2) 8702.30.20 6.1% Free (W2) 8702.40.10 6.1% Free (W2) 8702.40.20 6.1% Free (W2) 8702.90.10 6.1% Free (W2) 8702.90.20 6.1% Free (W2) 8703.21.90 6.1% Free (W2) 8703.22.00 6.1% Free (W3) 8703.23.00 6.1% Free (W3) 8703.24.00 6.1% Free (W3) 8703.31.00 6.1% Free (W3) 8703.32.00 6.1% Free (W3) 8703.33.00 6.1% Free (W3) 8703.40.10 6.1% Free (W2) 8703.40.90 6.1% Free (W3) 8703.50.00 6.1% Free (W3) 8703.60.10 6.1% Free (W2) 8703.60.90 6.1% Free (W3) 8703.70.00 6.1% Free (W3) 8703.80.00 6.1% Free (W2) 8703.90.00 6.1% Free (W2) 8704.21.90 6.1% Free (W1) 8704.22.00 6.1% Free (W1) 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 5 Tariff Item Initial Rate Final Rate 8704.23.00 6.1% Free (W1) 8704.31.00 6.1% Free (W1) 8704.32.00 6.1% Free (W1) 8901.10.10 25% Free (W3) 8901.10.90 25% Free (W3) 8901.30.00 25% Free (W1) 8901.90.10 15% Free (W1) 8901.90.91 25% Free (W1) 8901.90.99 25% Free (W1) 8904.00.00 25% Free (W3) 8905.20.19 20% Free (W1) 8905.20.20 25% Free (W1) 8905.90.19 20% Free (W1) 8905.90.90 25% Free (W1) 8906.90.19 15% Free (W1) 8906.90.91 25% Free (W1) 8906.90.99 25% Free (W1) 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications SCHEDULE 6 (Subsection 115(1)) Indications Column 1 Column 2 Item Indication Transliteration (for information purposes only) 1 2 3 České pivo Žatecký Chmel Hopfen aus der Hallertau Nürnberger Bratwürste 4 5 Nürnberger Rostbratwürste Schwarzwälder Schinken Aachener Printen Nürnberger Lebkuchen Lübecker Marzipan Bremer Klaben 11 12 13 14 Hessischer Handkäse Hessischer Handkäs Tettnanger Hopfen Spreewälder Gurken 15 16 Danablu Ελιά Καλαμάτας Elia Kalamatas Μαστίχα Χίου Masticha Chiou 18 19 20 21 Φέτα Feta Ελαιόλαδο Καλαμάτας Ελαιόλαδο Κολυμβάρι Χανίων Κρήτης Ελαιόλαδο Σητείας Λασιθίου Κρήτης Ελαιόλαδο Λακωνία Κρόκος Κοζάνης Feta 22 23 24 2015-2016-2017 Elaiolado Kalamata Elaiolado Kolymvari Chanion Kritis Elaiolado Sitia Lasithiou Kritis Elaiolado Lakonia Krokos Kozanis Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications Column 1 Column 2 Indication Κεφαλογραβιέρα Γραβιέρα Κρήτης Γραβιέρα Νάξου Μανούρι Κασέρι Φασόλια Γίγαντες Ελέφαντες Καστοριάς Φασόλια Γίγαντες Ελέφαντες Πρεσπών Φλώρινας Κονσερβολιά Αμφίσσης Transliteration (for information purposes only) Kefalograviera Graviera Kritis Graviera Naxou Manouri Kasseri Fassolia Gigantes Elefantes Kastorias Fassolia Gigantes Elefantes Prespon Florinas Konservolia Amfissis Λουκούμι Γεροσκήπου Loukoumi Geroskipou 34 35 36 38 39 40 41 42 43 44 45 46 47 48 49 Baena Sierra Mágina Aceite del Baix EbreMontsía Oli del Baix EbreMontsía Aceite del Bajo Aragón Antequera Priego de Córdoba Sierra de Cádiz Sierra de Segura Sierra de Cazorla Siurana Aceite de Terra Alta Oli de Terra Alta Les Garrigues Estepa Guijuelo Jamón de Huelva Jamón de Teruel Salchichón de Vic Llonganissa de Vic Item 25 26 27 28 29 30 31 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications Column 1 Item 54 55 56 Indication Mahón-Menorca Queso Manchego Cítricos Valencianos Cîtrics Valancians Jijona Turrón de Alicante 60 61 62 63 64 65 Azafrán de la Mancha Comté Reblochon Reblochon de Savoie Roquefort Camembert de Normandie Brie de Meaux Emmental de Savoie Pruneaux d’Agen 66 67 68 69 70 71 72 73 74 75 76 77 78 Column 2 Transliteration (for information purposes only) Pruneaux d’Agen micuits Huîtres de MarennesOléron Canards à foie gras du Sud-Ouest: Chalosse Canards à foie gras du Sud-Ouest: Gascogne Canards à foie gras du Sud-Ouest: Gers Canards à foie gras du Sud-Ouest: Landes Canards à foie gras du Sud-Ouest: Périgord Canards à foie gras du Sud-Ouest: Quercy Jambon de Bayonne Huile d’olive de HauteProvence 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications Column 1 Item 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 Indication Huile essentielle de lavande de HauteProvence Morbier Epoisses Beaufort Maroilles Marolles Munster Munster Géromé Fourme d’Ambert Abondance Bleu d’Auvergne Livarot Cantal Fourme de Cantal Cantalet Petit Cantal Tomme de Savoie Pont-L’Evêque Neufchâtel Chabichou du Poitou Crottin de Chavignol Saint-Nectaire Piment d’Espelette Lentille verte du Puy Aceto balsamico Tradizionale di Modena Aceto balsamico di Modena Cotechino Modena Zampone Modena 107 108 Bresaola della Valtellina Mortadella Bologna 109 110 Prosciutto di Parma Prosciutto di S. Daniele 2015-2016-2017 Column 2 Transliteration (for information purposes only) Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications Column 1 Item 111 112 113 114 115 116 117 118 119 120 121 122 123 124 Indication Prosciutto Toscano Prosciutto di Modena Provolone Valpadana Taleggio Asiago Fontina Gorgonzola Grana Padano Mozzarella di Bufala Campana Parmigiano Reggiano Pecorino Romano Pecorino Sardo Pecorino Toscano Arancia Rossa di Sicilia Cappero di Pantelleria Kiwi Latina 127 128 Lenticchia di Castelluccio di Norcia Mela Alto Adige Südtiroler Apfel Pesca e nettarina di Romagna Pomodoro di Pachino 131 132 133 134 Column 2 Transliteration (for information purposes only) Radicchio Rosso di Treviso Ricciarelli di Siena Riso Nano Vialone Veronese Speck Alto Adige Südtiroler Markenspeck Südtiroler Speck 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications Column 1 Item 138 139 140 141 Indication Veneto Valpolicella Veneto Euganei e Berici Veneto del Grappa Culatello di Zibello Garda Lardo di Colonnata Szegedi téliszalámi Szegedi szalámi Tiroler Speck Steirischer Kren 155 156 Steirisches Kürbiskernöl Queijo S. Jorge Azeite de Moura Azeites de Trás-osMontes Azeite do Alentejo Interior Azeites da Beira Interior Azeites do Norte Alentejano Azeites do Ribatejo Pêra Rocha do Oeste Ameixa d’Elvas Ananás dos Açores / S. Miguel Chouriça de carne de Vinhais Linguiça de Vinhais Chouriço de Portalegre 149 150 151 152 153 154 2015-2016-2017 Column 2 Transliteration (for information purposes only) Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications Column 1 Item 162 Indication Presunto de Barrancos 163 164 165 Queijo Serra da Estrela Queijos da Beira Baixa Queijo de Castelo Branco Queijo Amarelo da Beira Baixa Queijo Picante da Beira Baixa Salpicão de Vinhais 169 170 171 Gouda Holland Edam Holland Kalix Löjrom Magiun de prune Topoloveni 166 167 2015-2016-2017 Column 2 Transliteration (for information purposes only) Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) ANNEXE 6 (paragraphe 115(1)) Indications Colonne 1 Colonne 2 Article Indication Translittération (à titre informatif seulement) 1 2 3 České pivo Žatecký Chmel Hopfen aus der Hallertau Nürnberger Bratwürste Nürnberger Rostbratwürste Schwarzwälder Schinken Aachener Printen 8 9 Nürnberger Lebkuchen Lübecker Marzipan Bremer Klaben 11 12 13 14 Hessischer Handkäse Hessischer Handkäs Tettnanger Hopfen Spreewälder Gurken 15 16 Danablu Ελιά Καλαμάτας Elia Kalamatas Μαστίχα Χίου Masticha Chiou 18 19 20 Φέτα Feta Feta Ελαιόλαδο Καλαμάτας Elaiolado Kalamata Ελαιόλαδο Κολυμβάρι Elaiolado Kolymvari Χανίων Κρήτης Chanion Kritis 2015-2016-2017 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Article 22 23 Colonne 1 Colonne 2 Indication Ελαιόλαδο Σητείας Λασιθίου Κρήτης Ελαιόλαδο Λακωνία Translittération (à titre informatif seulement) Elaiolado Sitia Lasithio Kritis Elaiolado Lakonia Κρόκος Κοζάνης Κεφαλογραβιέρα Γραβιέρα Κρήτης Γραβιέρα Νάξου Μανούρι Κασέρι Φασόλια Γίγαντες Ελέφαντες Καστοριάς Φασόλια Γίγαντες Ελέφαντες Πρεσπών Φλώρινας Κονσερβολιά Αμφίσσης Λουκούμι Γεροσκήπου Baena Sierra Mágina Aceite del Baix EbreMontsía Oli del Baix EbreMontsía Aceite del Bajo Aragón Antequera Priego de Córdoba Sierra de Cádiz Sierra de Segura Sierra de Cazorla Siurana Aceite de Terra Alta 24 25 26 27 28 29 30 31 32 33 37 38 2015-2016-2017 Krokos Kozanis Kefalograviera Graviera Kritis Graviera Naxou Manouri Kasseri Fassolia Gigantes Elefantes Kastorias Fassolia Gigantes Elefantes Prespon Flor Konservolia Amfissis Loukoumi Geroskipou Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Colonne 1 Article 46 Indication Oli de Terra Alta Les Garrigues Estepa Guijuelo Jamón de Huelva Jamón de Teruel Salchichón de Vic Llonganissa de Vic 54 55 56 Mahón-Menorca Queso Manchego Cítricos Valencianos Cîtrics Valancians Jijona Turrón de Alicante Azafrán de la Mancha Comté Reblochon Reblochon de Savoie Roquefort Camembert de Normandie Brie de Meaux Emmental de Savoie 61 62 63 64 65 66 67 2015-2016-2017 Colonne 2 Translittération (à titre informatif seulement) Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Colonne 1 Article 68 Indication Pruneaux d’Agen Pruneaux d’Agen mi-cuits Huîtres de Marennes-Oléron 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 2015-2016-2017 Colonne 2 Translittération (à titre informatif seulement) Canards à foie gras du Sud-Ouest : Chalosse Canards à foie gras du Sud-Ouest : Gascogne Canards à foie gras du Sud-Ouest : Gers Canards à foie gras du Sud-Ouest : Landes Canards à foie gras du Sud-Ouest : Périgord Canards à foie gras du Sud-Ouest : Quercy Jambon de Bayonne Huile d’olive de Haute-Provence Huile essentielle de lavande de HauteProvence Morbier Epoisses Beaufort Maroilles Marolles Munster Munster Géromé Fourme d’Ambert Abondance Bleu d’Auvergne Livarot Cantal Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Colonne 1 Article 92 93 94 95 96 97 98 99 100 101 102 103 Translittération (à titre Indication informatif seulement) Fourme de Cantal Cantalet Petit Cantal Tomme de Savoie Pont-L’Evêque Neufchâtel Chabichou du Poitou Crottin de Chavignol Saint-Nectaire Piment d’Espelette Lentille verte du Puy Aceto balsamico Tradizionale di Modena Aceto balsamico di Modena Cotechino Modena Zampone Modena Bresaola della Valtellina Mortadella Bologna 109 110 Prosciutto di Parma Prosciutto di S. Daniele Prosciutto Toscano Prosciutto di Modena Provolone Valpadana Taleggio Asiago Fontina Gorgonzola Grana Padano 111 112 113 114 115 116 117 118 2015-2016-2017 Colonne 2 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Colonne 1 Article 119 120 121 122 123 124 125 126 127 Translittération (à titre Indication informatif seulement) Mozzarella di Bufala Campana Parmigiano Reggiano Pecorino Romano Pecorino Sardo Pecorino Toscano Arancia Rossa di Sicilia Cappero di Pantelleria Kiwi Latina Lenticchia di Castelluccio di Norcia Mela Alto Adige Südtiroler Apfel Pesca e nettarina di Romagna Pomodoro di Pachino Radicchio Rosso di Treviso Ricciarelli di Siena 131 132 133 134 135 Riso Nano Vialone Veronese Speck Alto Adige Südtiroler Markenspeck Südtiroler Speck Veneto Valpolicella Veneto Euganei e Berici 2015-2016-2017 Colonne 2 Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Colonne 1 Article 140 Indication Veneto del Grappa Culatello di Zibello Garda Lardo di Colonnata Szegedi téliszalámi Szegedi szalámi Tiroler Speck Steirischer Kren Steirisches Kürbiskernöl Queijo S. Jorge Azeite de Moura 149 150 151 Azeites de Trás-osMontes Azeite do Alentejo Interior Azeites da Beira Interior Azeites do Norte Alentejano Azeites do Ribatejo Pêra Rocha do Oeste Ameixa d’Elvas Ananás dos Açores / S. Miguel 152 153 154 2015-2016-2017 Colonne 2 Translittération (à titre informatif seulement) Chapter 6: Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act SCHEDULE 6 Indications (French) Colonne 1 Article 159 Indication Chouriça de carne de Vinhais Linguiça de Vinhais Chouriço de Portalegre Presunto de Barrancos Queijo Serra da Estrela Queijos da Beira Baixa Queijo de Castelo Branco Queijo Amarelo da Beira Baixa Queijo Picante da Beira Baixa Salpicão de Vinhais 169 170 171 Gouda Holland Edam Holland Kalix Löjrom Magiun de prune Topoloveni 164 165 166 167 Colonne 2 Translittération (à titre informatif seulement) Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 7 An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts ASSENTED TO MAY 18, 2017 BILL C-37 SUMMARY This enactment amends the Controlled Drugs and Substances Act to, among other things, (a) simplify the process of applying for an exemption that would allow certain activities to take place at a supervised consumption site, as well as the process of applying for subsequent exemptions; (b) prohibit the importation of designated devices — unless the importation is registered with the Minister of Health — as well as prescribed activities in relation to designated devices; (c) expand the offence of possession, production, sale or importation of anything knowing that it will be used to produce or traffic in methamphetamine so that it applies to anything that is intended to be used to produce or traffic in any controlled substance; (d) authorize the Minister to temporarily add to a schedule to that Act substances that the Minister has reasonable grounds to believe pose a significant risk to public health or safety, in order to control them; (e) authorize the Minister to require a person who may conduct activities in relation to controlled substances, precursors or designated devices to provide the Minister with information or to take certain measures in respect of such activities; (f) add an administrative monetary penalties scheme; (g) streamline the disposition of seized, found or otherwise acquired controlled substances, precursors and chemical and non-chemical offence-related property; (h) modernize inspection powers; and (i) expand and amend certain regulation-making authorities, including in respect of the collection, use, retention, disclosure and disposal of information. It makes related amendments to the Customs Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to repeal provisions that prevent customs officers from opening mail that weighs 30 grams or less. It also makes other related amendments to the Criminal Code and the Seized Property Management Act. ii 64-65-66 ELIZABETH II CHAPTER 7 An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts [Assented to 18th May, 2017] Preamble Whereas Parliament recognizes that the objectives of the Controlled Drugs and Substances Act (“the Act”) are the protection of public health and the maintenance of public safety; Whereas the Act protects public health by providing mechanisms to regulate or otherwise authorize activities in relation to controlled substances and the precursors that are used to make them in order to allow access for legitimate medical, scientific or industrial purposes; Whereas harm reduction is an important component of a comprehensive, compassionate and evidencebased drug policy that complements prevention, treatment and enforcement measures; Whereas the Act maintains public safety by restricting activities in relation to controlled substances and precursors, including possession, trafficking, importing, exporting and production, and by establishing associated criminal offences and penalties; And whereas the illicit market for controlled substances and precursors is evolving and serious public health and safety concerns have emerged since the Act was enacted; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 1 1996, c. 19 Controlled Drugs and Substances Act 1 (1) The definition adjudicator in subsection 2(1) of the Controlled Drugs and Substances Act is repealed. (2) The definition praticien in subsection 2(1) of the French version of the Act is replaced by the following: praticien Personne qui est autorisée à exercer dans une province la profession de médecin, de dentiste ou de vétérinaire en vertu des lois de la province et est inscrite sous le régime de ces lois. Y sont assimilées toute autre personne ou catégorie de personnes désignées par règlement. (practitioner) (3) The portion of the definition produce in subsection 2(1) of the Act before paragraph (a) is replaced by the following: produce means, in respect of a substance included in any of Schedules I to V, to obtain the substance by any method or process including (4) The portion of the definition traffic in subsection 2(1) of the Act before paragraph (a) is replaced by the following: traffic means, in respect of a substance included in any of Schedules I to V, (5) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: customs office has the same meaning as in subsection 2(1) of the Customs Act; (bureau de douane) designated device means a device included in Schedule IX; (instrument désigné) (6) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: chemical offence-related property means offencerelated property that is a chemical or precursor and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 1-4 includes anything that contains such property or has such property on it; (bien infractionnel chimique) non-chemical offence-related property means offence-related property that is not chemical offencerelated property; (bien infractionnel non-chimique) 1995, c. 22, s. 18 (Sch. IV, item 26) 2 Subsection 3(2) of the Act is repealed. 3 (1) Subsections 5(1) and (2) of the Act are replaced by the following: Trafficking in substance 5 (1) No person shall traffic in a substance included in Schedule I, II, III, IV or V or in any substance represented or held out by that person to be such a substance. Possession for purpose of trafficking (2) No person shall, for the purpose of trafficking, possess a substance included in Schedule I, II, III, IV or V. 2012, c. 1, s. 39(1) (2) Clause 5(3)(a)(i)(D) of the French version of the Act is replaced by the following: (D) a, au cours des dix dernières années, été condamnée pour une infraction désignée ou purgé une peine d’emprisonnement relativement à une telle infraction, (3) The portion of paragraph 5(3)(b) of the Act before subparagraph (i) is replaced by the following: (b) if the subject matter of the offence is a substance included in Schedule III or V, 2012, c. 1, s. 39(2) (4) Subsection 5(5) of the Act is replaced by the following: Interpretation (5) For the purposes of applying subsection (3) in respect of an offence under subsection (1), a reference to a substance included in Schedule I, II, III, IV or V includes a reference to any substance represented or held out to be a substance included in that Schedule. 4 (1) The portion of paragraph 6(3)(b) of the Act before subparagraph (i) is replaced by the following: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 4-6 (b) if the subject matter of the offence is a substance included in Schedule III, V or VI, (2) The portion of paragraph 6(3)(c) of the Act before subparagraph (i) is replaced by the following: (c) if the subject matter of the offence is a substance included in Schedule IV, 5 (1) Subsection 7(1) of the Act is replaced by the following: Production of substance 7 (1) Except as authorized under the regulations, no person shall produce a substance included in Schedule I, II, III, IV or V. 2012, c. 1, s. 41(1) (2) The portion of paragraph 7(2)(a.1) of the English version of the Act before subparagraph (i) is replaced by the following: (a.1) if the subject matter of the offence is a substance included in Schedule II, other than cannabis (marihuana), is guilty of an indictable offence and liable to imprisonment for life, and to a minimum punishment of imprisonment 2012, c. 1, s. 41(1) (3) The portion of paragraph 7(2)(b) of the English version of the Act before subparagraph (i) is replaced by the following: (b) if the subject matter of the offence is cannabis (marihuana), is guilty of an indictable offence and liable to imprisonment for a term of not more than 14 years, and to a minimum punishment of (4) The portion of paragraph 7(2)(c) of the Act before subparagraph (i) is replaced by the following: (c) if the subject matter of the offence is a substance included in Schedule III or V, 2011, c. 14, s. 1 6 Section 7.1 of the Act is replaced by the following: Possession, sale, etc., for use in production of or trafficking in substance 7.1 (1) No person shall possess, produce, sell, import or transport anything intending that it will be used 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 6-7 (a) to produce a controlled substance, unless the production of the controlled substance is lawfully authorized; or (b) to traffic in a controlled substance. Punishment (2) Every person who contravenes subsection (1) (a) if the subject matter of the offence is a substance included in Schedule I, II, III or V, (i) is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years, or (ii) is guilty of an offence punishable on summary conviction and liable to imprisonment for a term of not more than 18 months; and (b) if the subject matter of the offence is a substance included in Schedule IV, (i) is guilty of an indictable offence and liable to imprisonment for a term of not more than three years, or (ii) is guilty of an offence punishable on summary conviction and liable to imprisonment for a term of not more than one year. 2012, c. 1, s. 43(1) 7 (1) The portion of subsection 10(2) of the French version of the Act before paragraph (a) is replaced by the following: Circonstances à prendre en considération (2) Le tribunal qui détermine la peine à infliger à une personne condamnée pour une infraction désignée — autre qu’une infraction pour laquelle il est tenu d’imposer une peine minimale d’emprisonnement — est tenu de considérer toute circonstance aggravante pertinente, notamment le fait que cette personne, selon le cas : (2) Subparagraphs 10(2)(a)(iii) and (iv) of the Act are replaced by the following: (iii) trafficked in a substance included in Schedule I, II, III, IV or V, or possessed such a substance for the purpose of trafficking, in or near a school, on or near school grounds or in or near any other public place usually frequented by persons under the age of 18 years, or (iv) trafficked in a substance included in Schedule I, II, III, IV or V, or possessed such a substance for 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 7-10 the purpose of trafficking, to a person under the age of 18 years; (3) Paragraph 10(2)(b) of the French version of the Act is replaced by the following: b) a déjà été condamnée pour une infraction désignée; (4) Paragraph 10(2)(c) of the English version of the Act is replaced by the following: (c) used the services of a person under the age of eighteen years to commit, or involved such a person in the commission of, the offence. 2012, c. 1, s. 43(2) (5) The portion of subsection 10(4) of the French version of the Act before paragraph (a) is replaced by the following: Programme judiciaire de traitement de la toxicomanie (4) Le tribunal qui détermine la peine à infliger à une personne condamnée pour une infraction prévue par la présente partie peut reporter la détermination de la peine : 8 The heading “Search, Seizure and Detention” before section 11 of the Act is repealed. 9 Subsection 11(4) of the Act is replaced by the following: Effect of endorsement (4) An endorsement that is made on a warrant as provided for in subsection (3) is sufficient authority to any peace officer to whom it was originally directed and to all peace officers within the jurisdiction of the justice by whom it is endorsed to execute the warrant and to dispose of or otherwise deal with the things seized in accordance with the law. 10 The Act is amended by adding the following after section 12: Report of seizure, finding, etc. 12.1 Subject to the regulations, every peace officer, inspector or prescribed person who seizes, finds or otherwise acquires a controlled substance, precursor or chemical offence-related property shall, within 30 days, (a) prepare a report setting out (i) the substance, precursor or property, 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 10-11 (ii) the amount of it that was seized, found or acquired, (iii) the place where it was seized, found or acquired, (iv) the date on which it was seized, found or acquired, (v) the name of the police force, agency or entity to which the peace officer, inspector or prescribed person belongs, (vi) the number of the file or police report related to the seizure, finding or acquisition, and (vii) any other prescribed information; (b) cause the report to be sent to the Minister; and (c) in the case of a seizure made under section 11 of this Act, the Criminal Code or a power of seizure at common law, cause a copy of the report to be filed with the justice who issued the warrant or another justice for the same territorial division or, if a warrant was not issued, a justice who would have had jurisdiction to issue a warrant. PART III Disposition 11 Subsections 13(2) to (6) of the Act are replaced by the following: Sections 489.1 and 490 of Criminal Code applicable (2) If a thing seized under this Act is non-chemical offence-related property, sections 489.1 and 490 of the Criminal Code apply subject to sections 16 to 22 and subsections 31(6) to (9) of this Act. Provisions of this Act applicable (3) If a controlled substance, precursor or chemical offence-related property is seized under this Act, any other Act of Parliament or a power of seizure at common law, the provisions of this Act and the regulations apply in respect of that substance, precursor or property. Recognizance (4) If, under this section, an order is made in accordance with paragraph 490(9)(c) of the Criminal Code for the 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 11-13 return of any non-chemical offence-related property seized under this Act, the judge or justice making the order may require the applicant for the order to enter into a recognizance before the judge or justice, with or without sureties, in the amount and with any conditions that the judge or justice directs and, if the judge or justice considers it appropriate, require the applicant to deposit with the judge or justice the sum of money or other valuable security that the judge or justice directs. 12 The heading before section 14 of the Act is replaced by the following: DIVISION 1 Non-chemical Offence-related Property Restraint Orders 13 (1) Subsection 14(1) of the Act is replaced by the following: Application for restraint order 14 (1) The Attorney General may make an application in accordance with this section for a restraint order in respect of any non-chemical offence-related property. (2) The portion of subsection 14(2) of the Act before paragraph (b) is replaced by the following: Procedure (2) The application for a restraint order may be made ex parte and shall be made in writing to a judge and be accompanied by an affidavit of the Attorney General or any other person deposing to the following matters: (a) the offence to which the property relates; (3) Paragraphs 14(2)(b) and (c) of the English version of the Act are replaced by the following: (b) the person who is believed to be in possession of the property; and (c) a description of the property. 2001, c. 32, s. 49(1) (4) Subsection 14(3) of the Act is replaced by the following: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 13-14 Restraint order (3) The judge to whom the application is made may, if satisfied that there are reasonable grounds to believe that the property is non-chemical offence-related property, make a restraint order prohibiting any person from disposing of, or otherwise dealing with any interest in, the property specified in the order other than in the manner that is specified in the order. 2001, c. 32, s. 50 14 Sections 14.1 and 15 of the Act are replaced by the following: Sections 489.1 and 490 of Criminal Code applicable 15 (1) Subject to sections 16 to 22, sections 489.1 and 490 of the Criminal Code apply, with any modifications that the circumstances require, to any property that is the subject of a restraint order made under section 14. Recognizance (2) If, under this section, an order is made in accordance with paragraph 490(9)(c) of the Criminal Code for the return of any property that is the subject of a restraint order made under section 14, the judge or justice making the order may require the applicant for the order to enter into a recognizance before the judge or justice, with or without sureties, in the amount and with any conditions that the judge or justice directs and, if the judge or justice considers it appropriate, require the applicant to deposit with the judge or justice the sum of money or other valuable security that the judge or justice directs. Management Orders Management order 15.1 (1) On application of the Attorney General or of any other person with the written consent of the Attorney General, a justice in the case of non-chemical offencerelated property seized under section 11 of this Act, the Criminal Code or a power of seizure at common law, or a judge in the case of property restrained under section 14, may, if they are of the opinion that the circumstances so require, (a) appoint a person to take control of and to manage or otherwise deal with all or part of the property in accordance with the directions of the judge or justice; and (b) require any person having possession of that property to give possession of the property to the person appointed under paragraph (a). 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 14 Appointment of Minister of Public Works and Government Services (2) If the Attorney General of Canada so requests, a judge or justice appointing a person under subsection (1) shall appoint the Minister of Public Works and Government Services. Power to manage (3) The power to manage or otherwise deal with property under subsection (1) includes (a) the power to make an interlocutory sale of perishable or rapidly depreciating property; (b) the power to destroy, in accordance with subsections (4) to (7), property that has little or no value; and (c) the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (8). Application for destruction order (4) Before a person who is appointed to manage property destroys property that has little or no value, they shall apply to a court for a destruction order. Notice required before destruction (5) Before making a destruction order, a court shall require notice in accordance with subsection (6) to be given to and may hear any person who, in the court’s opinion, appears to have a valid interest in the property. Manner of giving notice (6) A notice shall (a) be given in the manner that the court directs or that may be specified in the rules of the court; and (b) specify the effective period of the notice that the court considers reasonable or that may be set out in the rules of the court. Destruction order (7) A court shall order that the property be destroyed if it is satisfied that the property has little or no financial or other value. Application for forfeiture order (8) On application by a person who is appointed to manage the property, a court shall order that the property, 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 14-16 other than real property or a conveyance, be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the law if (a) a notice is given or published in the manner that the court directs or that may be specified in the rules of the court; (b) the notice specifies a period of 60 days during which a person may make an application to the court asserting their interest in the property; and (c) during that period, no one makes such an application. When management order ceases to have effect (9) A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty. For greater certainty (10) For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale. Application to vary conditions (11) The Attorney General may at any time apply to the judge or justice to cancel or vary any condition to which a management order is subject but may not apply to vary an appointment made under subsection (2). 15 The heading before section 16 of the Act is replaced by the following: Forfeiture 2001, c. 32, s. 51 16 (1) Subsections 16(1) and (2) of the Act are replaced by the following: Forfeiture of property 16 (1) Subject to sections 18 to 19.1, if a person is convicted, or discharged under section 730 of the Criminal Code, of a designated substance offence and, on application of the Attorney General, the court is satisfied, on a balance of probabilities, that non-chemical offencerelated property is related to the commission of the offence, the court shall (a) if the prosecution of the offence was commenced at the instance of the government of a province and conducted by or on behalf of that government, order that the property be forfeited to Her Majesty in right 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 16-17 of that province to be disposed of or otherwise dealt with in accordance with the law by the Attorney General or Solicitor General of that province; and (b) in any other case, order that the property be forfeited to Her Majesty in right of Canada to be disposed of or otherwise dealt with in accordance with the law by the member of the Queen’s Privy Council for Canada that is designated by the Governor in Council for the purposes of this paragraph. Property related to other offences (2) Subject to sections 18 to 19.1, if the evidence does not establish to the satisfaction of the court that property in respect of which an order of forfeiture would otherwise be made under subsection (1) is related to the commission of the designated substance offence of which a person is convicted or discharged, but the court is satisfied, beyond a reasonable doubt, that the property is nonchemical offence-related property, the court may make an order of forfeiture under subsection (1) in relation to that property. (2) Subsection 16(3) of the Act is replaced by the following: Appeal (3) A person who has been convicted or discharged of a designated substance offence or the Attorney General may appeal to the court of appeal from an order or a failure to make an order under subsection (1) as if the appeal were an appeal against the sentence imposed on the person in respect of the offence. 17 (1) Paragraphs 17(2)(a) and (b) of the Act are replaced by the following: (a) beyond a reasonable doubt that any property is non-chemical offence-related property, (b) that proceedings were commenced in respect of a designated substance offence to which the property referred to in paragraph (a) is related, and (2) Subsection 17(4) of the Act is replaced by the following: Who may dispose of forfeited property (4) For the purposes of subsection (2), (a) if the proceedings referred to in paragraph (2)(b) were commenced at the instance of the government of a province, the judge shall order that the property be forfeited to Her Majesty in right of that province and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 17-20 disposed of or otherwise dealt with in accordance with the law by the Attorney General or Solicitor General of that province; and (b) in any other case, the judge shall order that the property be forfeited to Her Majesty in right of Canada and disposed of or otherwise dealt with in accordance with the law by the member of the Queen’s Privy Council for Canada that is designated by the Governor in Council for the purposes of this paragraph. 18 Section 18 of the Act is replaced by the following: Voidable transfers 18 A court may, before ordering that property be forfeited under subsection 16(1) or 17(2), set aside any conveyance or transfer of the property that occurred after the property was seized or restrained, unless the conveyance or transfer was for valuable consideration to a person acting in good faith. 19 The portion of subsection 19(2) of the Act before paragraph (c) is replaced by the following: Manner of giving notice (2) A notice shall (a) be given in the manner that the court directs or that may be specified in the rules of the court; (b) specify the period that the court considers reasonable or that may be set out in the rules of the court during which a person may make an application to the court asserting their interest in the property; and 2001, c. 32, s. 53 20 (1) Subsection 19.1(1) of the Act is replaced by the following: Notice 19.1 (1) If all or part of the property that would otherwise be forfeited under subsection 16(1) or 17(2) is a dwelling-house, before making an order of forfeiture, a court shall require notice in accordance with subsection (2) to be given to and may hear any person who resides in the dwelling-house and is a member of the immediate family of the person charged with or convicted, or discharged under section 730 of the Criminal Code, of the indictable offence under this Act in relation to which the property would be forfeited. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 20-21 2001, c. 32, s. 53 (2) Paragraphs 19.1(2)(a) and (b) of the Act are replaced by the following: (a) be given in the manner that the court directs or that may be specified in the rules of the court; (b) specify the period that the court considers reasonable or that may be set out in the rules of the court during which a member of the immediate family who resides in the dwelling-house may make themselves known to the court; and 2001, c. 32, s. 53 (3) Subsection 19.1(3) of the Act is replaced by the following: Non-forfeiture of real property (3) Subject to an order made under subsection 19(3), if a court is satisfied that the impact of an order of forfeiture made under subsection 16(1) or 17(2) in respect of real property would be disproportionate to the nature and gravity of the offence, the circumstances surrounding the commission of the offence and the criminal record, if any, of the person charged with or convicted, or discharged under section 730 of the Criminal Code, of the offence, as the case may be, it may decide not to order the forfeiture of the property or part of the property and may revoke any restraint order made in respect of that property or part. 2001, c. 32, s. 53 (4) Paragraph 19.1(4)(a) of the Act is replaced by the following: (a) the impact of an order of forfeiture on any member of the immediate family of the person charged with or convicted or discharged of the offence, if the dwellinghouse was the member’s principal residence at the time the charge was laid and continues to be the member’s principal residence; and 21 The portion of subsection 20(1) of the Act before paragraph (b) is replaced by the following: Application 20 (1) If any property is forfeited to Her Majesty under an order made under subsection 16(1) or 17(2), any person who claims an interest in the property, other than (a) in the case of property forfeited under an order made under subsection 16(1), a person who was convicted, or discharged under section 730 of the Criminal Code, of the designated substance offence in relation to which the property was forfeited, 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 21-22 22 The headings before section 24 and sections 24 to 26 of the Act are replaced by the following: DIVISION 2 Controlled Substances, Precursors and Chemical Offence-related Property Return 23 (1) A peace officer, inspector or prescribed person who seizes, finds or otherwise acquires a controlled substance, precursor or chemical offence-related property may return it to the person who is its lawful owner or who is lawfully entitled to its possession if the peace officer, inspector or prescribed person is satisfied (a) that there is no dispute as to who is the lawful owner or is lawfully entitled to possession of the substance, precursor or property; and (b) that the continued detention of the substance, precursor or property is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament. Receipt (2) When the substance, precursor or property is returned, the peace officer, inspector or prescribed person shall obtain a receipt for it. Report by peace officer (3) In the case of a seizure made under section 11 of this Act, the Criminal Code or a power of seizure at common law, the peace officer shall make a report about the return to the justice who issued the warrant or another justice for the same territorial division or, if a warrant was not issued, a justice who would have had jurisdiction to issue a warrant. Application for return 24 (1) If a controlled substance, precursor or chemical offence-related property has been seized, found or otherwise acquired by a peace officer, inspector or 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 22 prescribed person, any person may, within 60 days after the date of the seizure, finding or acquisition, on prior notification being given to the Attorney General in the prescribed manner, apply, by notice in writing to a justice in the jurisdiction in which it is being detained, for an order to return it to the person. Order to return as soon as practicable (2) If, on the hearing of an application made under subsection (1), a justice is satisfied that an applicant is the lawful owner or is lawfully entitled to possession of the substance, precursor or property and the Attorney General does not indicate that it or a portion of it may be required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the justice shall, subject to subsection (5), order that it or the portion be returned as soon as practicable to the applicant. Order to return at specified time (3) If, on the hearing of an application made under subsection (1), a justice is satisfied that an applicant is the lawful owner or is lawfully entitled to possession of the substance, precursor or property but the Attorney General indicates that it or a portion of it may be required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the justice shall, subject to subsection (5), order that it or the portion be returned to the applicant (a) on the expiry of 180 days after the day on which the application was made, if no proceeding in relation to it has been commenced before that time; or (b) on the final conclusion of the proceeding or any other proceeding in relation to it, if the applicant is not found guilty in those proceedings of an offence committed in relation to it. Forfeiture order (4) If, on the hearing of an application made under subsection (1), a justice is not satisfied that an applicant is the lawful owner or is lawfully entitled to possession of the substance, precursor or property, and it or a portion of it is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the justice shall order that it or the portion be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the regulations 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 22-23 or, if there are no applicable regulations, in the manner that the Minister directs. Payment of compensation in lieu (5) If, on the hearing of an application made under subsection (1), a justice is satisfied that an applicant is the lawful owner or is lawfully entitled to possession of the substance, precursor or property, but it was disposed of or otherwise dealt with under section 26, the justice shall order that an amount equal to its value be paid to the applicant. Forfeiture if no application 25 If no application for the return of a controlled substance, precursor or chemical offence-related property has been made under subsection 24(1) within 60 days after the date of the seizure, finding or acquisition by a peace officer, inspector or prescribed person and it or a portion of it is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, it or the portion is forfeited to Her Majesty and may be disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs. Expedited disposition 26 If a precursor or chemical offence-related property — whose storage or handling poses a risk to health or safety — or a controlled substance, or a portion of any of them, is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, it or the portion may be disposed of or otherwise dealt with by the Minister, a peace officer or a prescribed person in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs. 23 (1) The portion of section 27 of the Act before paragraph (a) is replaced by the following: Disposition following proceedings 27 Subject to section 24, if, in a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the court before which the proceedings have been brought is satisfied that any controlled substance, precursor or chemical offence-related property that is the subject of proceedings before the court is no longer required by that court or any other court, the court (2) Subparagraphs 27(a)(i) and (ii) of the Act are replaced by the following: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 23-24 (i) if it is satisfied that the person from whom the substance, precursor or property was seized came into possession of it lawfully and continued to deal with it lawfully, order that it be returned to the person, or (ii) if it is satisfied that possession of the substance, precursor or property by the person from whom it was seized is unlawful and the person who is the lawful owner or is lawfully entitled to its possession is known, order that it be returned to the person who is the lawful owner or is lawfully entitled to its possession; and (3) Paragraph 27(b) of the Act is replaced by the following: (b) may, if it is not satisfied that the substance, precursor or property should be returned under subparagraph (a)(i) or (ii) or if possession of it by the person from whom it was seized is unlawful and the person who is the lawful owner or is lawfully entitled to its possession is not known, order that it be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs. 24 Sections 28 and 29 of the Act are replaced by the following: Disposition with consent 28 If a controlled substance, precursor or chemical offence-related property has been seized, found or otherwise acquired by a peace officer, inspector or prescribed person and it or a portion of it is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the person who is its lawful owner may consent to its disposition, and when that consent is given, it or the portion is forfeited to Her Majesty and may be disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs. Report of disposition 29 (1) Subject to the regulations, every peace officer, inspector or prescribed person who disposes of or otherwise deals with a controlled substance, precursor or chemical offence-related property under this Division shall, within 30 days, prepare a report setting out the following information and cause the report to be sent to the Minister: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 24-26 (a) the substance, precursor or property; (b) the amount of it that was disposed of or otherwise dealt with; (c) the manner in which it was disposed of or otherwise dealt with; (d) the date on which it was disposed of or otherwise dealt with; (e) the name of the police force, agency or entity to which the peace officer, inspector or prescribed person belongs; (f) the number of the file or police report related to the disposition of it or other dealing with it; and (g) any other prescribed information. Interpretation (2) For the purposes of subsection (1), dealing with a controlled substance, precursor or chemical offencerelated property by a peace officer includes using it to conduct an investigation or for training purposes. 2015, c. 22, s. 2 25 Subsection 30(2) of the Act is replaced by the following: Certificate (2) Every inspector shall be provided with a certificate of designation in a form established by the Minister and, on entering any place under subsection 31(1), shall, on request, produce the certificate to the person in charge of the place. 26 (1) The portion of subsection 31(1) of the Act before paragraph (b) is replaced by the following: Powers of inspector 31 (1) Subject to subsection (2), an inspector may, for a purpose related to verifying compliance or preventing non-compliance with the provisions of this Act or the regulations, enter any place, including a conveyance, referred to in subsection (1.1) and may for that purpose (a) open and examine any receptacle or package found in that place in which a controlled substance, precursor or designated device may be found; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 26 (2) Paragraph 31(1)(b) of the French version of the Act is replaced by the following: b) examiner toute chose trouvée sur les lieux et servant — ou susceptible de servir — à la production, à la conservation, à l’emballage ou à l’entreposage d’une substance désignée ou d’un précurseur; (3) Paragraph 31(1)(c) of the Act is replaced by the following: (c) examine any labels or advertising material or records, books, electronic data or other documents found in that place with respect to any controlled substance, precursor, or designated device other than the records of the medical condition of persons, and make copies thereof or take extracts therefrom; (4) Subsection 31(1) of the Act is amended by adding the following after paragraph (g): (g.1) take photographs and make recordings and sketches; (5) Subsection 31(1) of the Act is amended by striking out “and” at the end of paragraph (h) and by replacing paragraph (i) with the following: (i) seize and detain, in accordance with this Part, any controlled substance, precursor, designated device or conveyance found in that place the seizure and detention of which the inspector believes on reasonable grounds are necessary; (j) order the owner or person having possession, care or control of any controlled substance, precursor, designated device or other thing to which the provisions of this Act or the regulations apply that is found in that place to move it or, for any time that may be necessary, not to move it or to restrict its movement; (k) order the owner or person having possession, care or control of any conveyance that is found in that place and that the inspector believes on reasonable grounds contains a controlled substance, precursor or designated device to stop the conveyance, to move it or, for any time that may be necessary, not to move it or to restrict its movement; (l) order any person in that place to establish their identity to the inspector’s satisfaction; and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 26 (m) order a person who, at that place, conducts an activity to which the provisions of this Act or the regulations apply to stop or start the activity. 2015, c. 22, s. 3(1), (2)(E) and (3) (6) Subsections 31(1.1) to (3) of the Act are replaced by the following: Place (1.1) For the purposes of subsection (1), the inspector may only enter a place in which they believe on reasonable grounds (a) a controlled substance, precursor, designated device or document relating to the administration of this Act or the regulations is located; (b) an activity could be conducted under a licence, permit, authorization or exemption that is under consideration by the Minister; (c) an activity to which the provisions of this Act or the regulations apply is being conducted; or (d) an activity was being conducted under a licence, permit, authorization or exemption before the expiry or revocation of the licence, permit, authorization or exemption, in which case the inspector may enter the place only within 45 days after the day on which it expired or was revoked. Means of telecommunication (1.2) For the purposes of subsections (1) and (1.1), an inspector is considered to have entered a place when they access it remotely by a means of telecommunication. Limitation — access by means of telecommunication (1.3) An inspector who enters remotely, by a means of telecommunication, a place that is not accessible to the public must do so with the knowledge of the owner or person in charge of the place and only for the period necessary for any purpose referred to in subsection (1). Person accompanying inspector (1.4) An inspector may be accompanied by any other person that the inspector believes is necessary to help 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 26 them exercise their powers or perform their duties or functions under this section. Entering private property (1.5) An inspector and any person accompanying them may enter and pass through private property, other than a dwelling-house on that property, in order to gain entry to a place referred to in subsection (1.1). Warrant to enter dwelling-house (2) In the case of a dwelling-house, an inspector may enter it only with the consent of an occupant or under the authority of a warrant issued under subsection (3). Authority to issue warrant (3) A justice may, on ex parte application, issue a warrant authorizing the inspector named in it to enter a place and exercise any of the powers mentioned in paragraphs (1)(a) to (m), subject to any conditions that are specified in the warrant, if the justice is satisfied by information on oath that (a) the place is a dwelling-house but otherwise meets the conditions for entry described in subsections (1) and (1.1); (b) entry to the dwelling-house is necessary for the purpose of verifying compliance or preventing noncompliance with the provisions of this Act or the regulations; and (c) entry to the dwelling-house has been refused or there are reasonable grounds to believe that entry will be refused. 2015, c. 22, s. 3(4)(E) (7) Subsections 31(5) to (9) of the Act are replaced by the following: Assistance to inspector (5) The owner or other person in charge of a place entered by an inspector and every person found there shall give the inspector all reasonable assistance in that person’s power and provide the inspector with any information that the inspector may reasonably require. Storage (6) Anything that is seized and detained by an inspector under this section may, at the inspector’s discretion, be kept or stored at the place where it was seized or, at the inspector’s direction, be removed to any other proper place. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 26-27 Notice (7) An inspector who seizes anything under this section shall take any measures that are reasonable in the circumstances to give to the owner or other person in charge of the place where the seizure occurred notice of the seizure and of the location where the thing is being kept or stored. Return by inspector (8) If an inspector determines that to verify compliance or prevent non-compliance with the provisions of this Act or the regulations it is no longer necessary to detain anything seized by the inspector under this section, the inspector shall notify in writing the owner or other person in charge of the place where the seizure occurred of that determination and, on being issued a receipt for it, shall return the thing to that person. Return or disposition by Minister (9) Despite sections 24, 25 and 27, if a period of 120 days has elapsed after the date of a seizure under this section and the thing has not been returned in accordance with subsection (8), it shall be returned, disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs. (8) Subsection 31(9) of the Act is replaced by the following: Return or disposition by Minister (9) If a period of 120 days has elapsed after the date of a seizure under this section and the thing has not been returned, disposed of or otherwise dealt with in accordance with subsection (8) or any of sections 24 to 27, it shall be returned, disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs. 27 (1) Subsection 32(1) of the Act is replaced by the following: Obstructing inspector 32 (1) No person shall, by act or omission, obstruct an inspector who is engaged in the exercise of their powers or the performance of their duties or functions under this Act or the regulations. (2) Subsection 32(2) of the English version of the Act is replaced by the following: False statements (2) No person shall knowingly make any false or misleading statement verbally or in writing to an inspector 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 27-28 who is engaged in the exercise of their powers or the performance of their duties or functions under this Act or the regulations. (3) Subsection 32(3) of the French version of the Act is replaced by the following: Interdiction (3) Il est interdit, sans l’autorisation de l’inspecteur, de déplacer les choses saisies, retenues ou emportées en application de l’article 31 ou d’en modifier l’état de quelque manière que ce soit. 28 Part V of the Act is replaced by the following: PART V Administrative Monetary Penalties Violation Commission of violation 33 Every person who contravenes a provision designated by regulations made under paragraph 34(1)(a), or contravenes an order made under section 45.1 or 45.2 or reviewed under section 45.4, commits a violation and is liable to the penalty established in accordance with the provisions of this Act and the regulations. Powers of the Governor in Council and the Minister Regulations 34 (1) The Governor in Council may make regulations (a) designating as a violation that may be proceeded with in accordance with this Act the contravention of any specified provision of this Act — except a provision of Part I — or the regulations; (b) fixing a penalty, or a range of penalties, in respect of each violation; (c) classifying each violation as a minor violation, a serious violation or a very serious violation; and (d) respecting the circumstances under which, the criteria by which and the manner in which a penalty may be increased or reduced, including a reduction in the 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 amount that is provided for in a compliance agreement. Maximum penalty (2) The maximum penalty for a violation is $30,000. Criteria for penalty 35 Unless a penalty is fixed under paragraph 34(1)(b), the amount of a penalty shall, in each case, be determined taking into account (a) the history of compliance with the provisions of this Act or the regulations by the person who committed the violation; (b) the harm to public health or safety that resulted or could have resulted from the violation; (c) whether the person made reasonable efforts to mitigate or reverse the violation’s effects; (d) whether the person derived any competitive or economic benefit from the violation; and (e) any other prescribed criteria. Notices of violation 36 The Minister may (a) designate individuals, or classes of individuals, who are authorized to issue notices of violation; and (b) establish, in respect of each violation, a short-form description to be used in notices of violation. Proceedings Issuance of notice of violation 37 (1) If a person who is designated under paragraph 36(a) believes on reasonable grounds that a person has committed a violation, the designated person may issue, and shall provide the person with, a notice of violation that (a) sets out the person’s name; (b) identifies the alleged violation; (c) sets out the penalty for the violation that the person is liable to pay; and (d) sets out the particulars concerning the time and manner of payment. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 Summary of rights (2) A notice of violation shall clearly summarize, in plain language, the named person’s rights and obligations under this section and sections 38 to 43.7, including the right to have the acts or omissions that constitute the alleged violation or the amount of the penalty reviewed and the procedure for requesting that review. Penalties Payment 38 (1) If the person named in the notice pays, in the prescribed time and manner, the amount of the penalty, (a) they are deemed to have committed the violation in respect of which the amount is paid; (b) the Minister shall accept that amount as complete satisfaction of the penalty; and (c) the proceedings commenced in respect of the violation under section 37 are ended. Alternatives to payment (2) Instead of paying the penalty set out in a notice of violation, the person named in the notice may, in the prescribed time and manner, (a) if the penalty is $5,000 or more, request to enter into a compliance agreement with the Minister that ensures the person’s compliance with the order or the provision to which the violation relates; or (b) request a review by the Minister of the acts or omissions that constitute the alleged violation or the amount of the penalty. Deeming (3) If the person named in the notice of violation does not pay the penalty in the prescribed time and manner and does not exercise any right referred to in subsection (2) in the prescribed time and manner, they are deemed to have committed the violation identified in the notice. Compliance Agreements Compliance agreements 39 (1) After considering a request under paragraph 38(2)(a), the Minister may enter into a compliance agreement, as described in that paragraph, with the person making the request on any terms and conditions that are satisfactory to the Minister. The terms and conditions may 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 (a) include a provision for the giving of reasonable security, in a form and in an amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and (b) provide for the reduction, in whole or in part, of the penalty for the violation. Deeming (2) A person who enters into a compliance agreement with the Minister is, on doing so, deemed to have committed the violation in respect of which the compliance agreement was entered into. Notice of compliance (3) If the Minister is satisfied that a person who has entered into a compliance agreement has complied with it, the Minister shall cause a notice to that effect to be provided to the person, at which time (a) the proceedings commenced in respect of the violation under section 37 are ended; and (b) any security given by the person under the compliance agreement shall be returned to the person. Notice of default (4) If the Minister is of the opinion that a person who has entered into a compliance agreement has not complied with it, the Minister shall cause a notice of default to be provided to the person to the effect that (a) instead of the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, the person is liable to pay, in the prescribed time and manner, twice the amount of that penalty, and, for greater certainty, subsection 34(2) does not apply in respect of that amount; or (b) the security, if any, given by the person under the compliance agreement shall be forfeited to Her Majesty in right of Canada. Effect of notice of default (5) Once provided with the notice of default, the person may not deduct from the amount set out in the notice any amount that they spent under the compliance agreement and (a) the person is liable to pay the amount set out in the notice; or (b) if the notice provides for the forfeiture of the security given under the compliance agreement, that security is forfeited to Her Majesty in right of Canada and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 the proceedings commenced in respect of the violation under section 37 are ended. Effect of payment (6) If a person pays the amount set out in the notice of default in the prescribed time and manner, (a) the Minister shall accept the amount as complete satisfaction of the amount owing; and (b) the proceedings commenced in respect of the violation under section 37 are ended. Refusal to enter into compliance agreement 40 (1) If the Minister refuses to enter into a compliance agreement requested under paragraph 38(2)(a), the person who made the request is liable to pay the amount of the penalty in the prescribed time and manner. Effect of payment (2) If a person pays the amount referred to in subsection (1), (a) they are deemed to have committed the violation in respect of which the payment is made; (b) the Minister shall accept the amount as complete satisfaction of the penalty; and (c) the proceedings commenced in respect of the violation under section 37 are ended. Deeming (3) If a person does not pay the amount referred to in subsection (1) in the prescribed time and manner, they are deemed to have committed the violation identified in the notice of violation. Review by the Minister Review — facts 41 (1) On completion of a review requested under paragraph 38(2)(b) with respect to the acts or omissions that constitute the alleged violation, the Minister shall determine whether the person who requested the review committed the violation. If the Minister determines that the person committed the violation but that the amount of the penalty was not established in accordance with the provisions of this Act and the regulations, the Minister shall correct the amount. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 Violation not committed — effect (2) If the Minister determines under subsection (1) that the person who requested the review did not commit the violation, the proceedings commenced in respect of it under section 37 are ended. Review — penalty (3) On completion of a review requested under paragraph 38(2)(b) with respect to the amount of the penalty, the Minister shall determine whether the amount of the penalty was established in accordance with the provisions of this Act and the regulations and, if not, the Minister shall correct the amount. Notice of decision (4) The Minister shall cause a notice of any decision made under subsection (1) or (3) to be provided to the person who requested the review. Payment (5) The person is liable to pay, in the prescribed time and manner, the amount of the penalty that is confirmed or corrected in the Minister’s decision made under subsection (1) or (3). Effect of payment (6) If a person pays the amount referred to in subsection (5), (a) the Minister shall accept the amount as complete satisfaction of the penalty; and (b) the proceedings commenced in respect of the violation under section 37 are ended. Written evidence and submissions (7) The Minister shall consider only written evidence and written submissions in determining whether a person committed a violation or whether the amount of a penalty was established in accordance with the provisions of this Act and the regulations. Enforcement Debts to Her Majesty 42 (1) The following amounts constitute debts due to Her Majesty in right of Canada that may be recovered in the Federal Court: (a) the amount of a penalty, from the time the notice of violation setting out the penalty is provided; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 (b) every amount set out in a compliance agreement entered into with the Minister under subsection 39(1), from the time the compliance agreement is entered into; (c) the amount set out in a notice of default referred to in subsection 39(4), from the time the notice is provided; and (d) the amount of a penalty as set out in a decision of the Minister made under subsection 41(1) or (3), from the time the notice of that decision is provided. Time limit (2) No proceedings to recover a debt referred to in subsection (1) may be commenced later than five years after the debt became payable. Debt final (3) A debt referred to in subsection (1) is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 38 to 41. Certificate of default 43 (1) Any debt referred to in subsection 42(1) in respect of which there is a default of payment, or the part of any such debt that has not been paid, may be certified by the Minister. Judgments (2) On production to the Federal Court, the certificate shall be registered in that Court and, when registered, has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in that Court for a debt of the amount specified in it and all reasonable costs and charges associated with the registration of the certificate. Rules About Violations Certain defences not available 43.1 (1) A person named in a notice of violation does not have a defence by reason that the person (a) exercised due diligence to prevent the violation; or (b) reasonably and honestly believed in the existence of facts that, if true, would exonerate the person. Common law principles (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under this Act applies in 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 28 respect of a violation to the extent that it is not inconsistent with this Act. Burden of proof 43.2 In every case when the facts of a violation are reviewed by the Minister, he or she shall determine, on a balance of probabilities, whether the person named in the notice of violation committed the violation identified in the notice. Violation by corporate officers, etc. 43.3 If a person other than an individual commits a violation under this Act, any of the person’s directors, officers, agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to and liable for the violation whether or not the person who actually committed the violation is proceeded against under this Act. Vicarious liability — acts of employees and agents 43.4 A person is liable for a violation that is committed by any employee, agent or mandatary of the person acting in the course of the employee’s employment or the scope of the agent or mandatary’s authority, whether or not the employee, agent or mandatary who actually committed the violation is identified or proceeded against under this Act. Continuing violation 43.5 A violation that is continued on more than one day constitutes a separate violation in respect of each day on which it is continued. Other Provisions Evidence 43.6 In any proceeding in respect of a violation or a prosecution for an offence, a notice of violation purporting to be issued under this Act is admissible in evidence without proof of the signature or official character of the person appearing to have signed the notice of violation. Time limit 43.7 Proceedings in respect of a violation shall not be commenced later than six months after the Minister becomes aware of the acts or omissions that constitute the alleged violation. How act or omission may be proceeded with 43.8 If an act or omission may be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 28-30 Certification by Minister 43.9 A document appearing to have been issued by the Minister, certifying the day on which the acts or omissions that constitute the alleged violation became known to the Minister, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and, in the absence of evidence to the contrary, is proof that the Minister became aware of the acts or omissions on that day. Publication of information 43.91 The Minister may, for the purpose of encouraging compliance with the provisions of this Act and the regulations, publish information about any violation after proceedings in respect of it are ended. 29 Subsection 45(1) of the Act is replaced by the following: Analysis 45 (1) A peace officer, inspector or prescribed person may submit to an analyst for analysis or examination any substance or sample of it taken by the peace officer, inspector or prescribed person. 30 The Act is amended by adding the following after section 45: Ministerial Orders Provision of information 45.1 The Minister may, by order, require a person who is authorized under this Act to conduct activities in relation to controlled substances or precursors or a person who imports designated devices to provide the Minister, in the time and manner that the Minister specifies, with any information respecting those activities that the Minister considers necessary (a) to verify compliance or prevent non-compliance with the provisions of this Act or the regulations; or (b) to address an issue of public health or safety. Measures 45.2 The Minister may, by order, require a person who is authorized under this Act to conduct activities in relation to controlled substances or precursors to take measures, in the time and manner that the Minister specifies, to prevent non-compliance with the provisions of this Act or the regulations or, if the Minister has reasonable 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 30 grounds to believe that there is such non-compliance, to remedy it. Review officer 45.3 The Minister may designate any qualified individual or class of qualified individuals as review officers for the purpose of reviewing orders under section 45.4. Request for review 45.4 (1) Subject to any other provision of this section, an order that is made under section 45.1 or 45.2 shall be reviewed on the written request of the person who was ordered to provide information or to take measures — but only on grounds that involve questions of fact alone or questions of mixed law and fact — by a review officer other than the individual who made the order. Contents of and time for making request (2) The request shall state the grounds for review and set out the evidence — including evidence that was not considered by the individual who made the order — that supports those grounds and the decision that is sought. It shall be provided to the Minister within seven days after the day on which the order was provided. No authority to review (3) The review is not to be done if the request does not comply with subsection (2) or is frivolous, vexatious or not made in good faith. Reasons for refusal (4) The person who made the request shall, without delay, be notified in writing of the reasons for not doing the review. Review initiated by review officer (5) A review officer — other than the individual who made the order — may review an order, whether or not a request is made under subsection (1). Order in effect (6) An order continues to apply during a review unless the review officer decides otherwise. Completion of review (7) A review officer shall complete the review no later than 30 days after the day on which the request is provided to the Minister. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 30-32 Extension of period for review (8) The review officer may extend the review period by no more than 30 days if they are of the opinion that more time is required to complete the review. They may extend the review period more than once. Reasons for extension (9) If the review period is extended, the person who made the request shall, without delay, be notified in writing of the reasons for extending it. Decision on completion of review (10) On completion of a review, the review officer shall confirm, amend, terminate or cancel the order. Written notice (11) The person who made the request or, if there is no request, the person who was ordered to provide information or to take measures shall, without delay, be notified in writing of the reasons for the review officer’s decision under subsection (10). Effect of amendment (12) An order that is amended is subject to review under this section. Statutory Instruments Act 45.5 The Statutory Instruments Act does not apply in respect of an order made under section 45.1 or 45.2. 31 The portion of section 45.1 of the Act before paragraph (a) is replaced by the following: Provision of information 45.1 The Minister may, by order, require a person who is authorized under this Act to conduct activities in relation to controlled substances or precursors, who imports designated devices or who conducts other activities referred to in section 46.4 to provide the Minister, in the time and manner that the Minister specifies, with any information respecting those activities that the Minister considers necessary 32 Section 45.2 of the Act is replaced by the following: Measures 45.2 The Minister may, by order, require a person who is authorized under this Act to conduct activities in relation to controlled substances or precursors or who conducts activities referred to in section 46.4 in relation to designated devices, to take measures, in the time and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 32-34 manner that the Minister specifies, to prevent noncompliance with the provisions of this Act or the regulations or, if the Minister has reasonable grounds to believe that there is such non-compliance, to remedy it. 33 The portion of section 46 of the Act before paragraph (a) is replaced by the following: Penalty 46 Every person who contravenes a provision of this Act for which punishment is not otherwise provided, a provision of a regulation or an order made under section 45.1 or 45.2 34 The Act is amended by adding the following after section 46: Prohibitions Offence of making false or deceptive statements 46.1 No person shall knowingly make, or participate in, assent to or acquiesce in the making of, a false or misleading statement in any book, record, return or other document however recorded, required to be maintained, made or furnished under this Act or the regulations. Compliance with terms and conditions 46.2 The holder of a licence, permit, authorization or exemption shall comply with its terms and conditions. Importation of designated device 46.3 (1) No person shall import into Canada a designated device unless they register the importation with the Minister. Information for registration (2) The following information shall be submitted to the Minister for the purpose of registering the importation of a designated device: (a) the name of the person importing the designated device or, if the person is a corporation, the corporate name and any other name registered with a province, under which the person carries out its activities or identifies itself; (b) the person’s address or, if the person is a corporation, the address of its primary place of business in Canada; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 34-35 (c) a description of the designated device, including the model number, serial number, and the brand name or trademark associated with it, if any; (d) the address where the designated device will be delivered as well as the street address of the premises where it will be used by the person importing it; (e) the name of the customs office where the importation is anticipated; and (f) the anticipated date of importation. Registration (3) After the Minister receives the information, the Minister shall register the importation and provide proof of the registration to the person importing the designated device. Proof of registration (4) The person importing the designated device shall provide the proof of the registration of its importation to the customs office at the time specified by the regulations or, if no time is specified by the regulations, at the time of importation. Refusal or cancellation (5) The Minister may refuse to register or cancel the registration of the importation of a designated device if the Minister believes on reasonable grounds that false or misleading information was provided, or it is necessary to do so to protect public health or safety or for any other prescribed reason. Disclosure of information — designated device (6) The Minister is authorized to disclose to the Canada Border Services Agency or an officer, as defined in section 2(1) of the Customs Act, any information submitted under subsection (2) for the purpose of verifying compliance with the provisions of this Act or the regulations. Disclosure of information to police force (7) The Minister is authorized to disclose any information submitted under subsection (2) to a Canadian police force or a member of a Canadian police force who requests the information in the course of an investigation under this Act. 35 (1) Subsection 46.3(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 35-38 Importation of designated device 46.3 (1) No person shall import into Canada a designated device unless they register the importation with the Minister and the person imports it in accordance with the regulations. (2) Subsection 46.3(2) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f): (g) any other prescribed information. 36 The Act is amended by adding the following before section 47: Designated device — prescribed activity 46.4 No person shall conduct a prescribed activity in relation to a designated device except in accordance with the regulations. 37 Section 47 of the Act is replaced by the following: Time limit 47 (1) No summary conviction proceedings in respect of an offence under subsection 4(2) or 32(2) or the regulations or in respect of a contravention of an order made under section 45.1 or 45.2 shall be commenced after the expiry of one year after the time when the subject matter of the proceedings arose. Venue (2) Proceedings in respect of a contravention of any provision of this Act or the regulations or of an order made under section 45.1 or 45.2 may be held in the place where the offence was committed or where the subject matter of the proceedings arose or in any place where the accused is apprehended or happens to be located. 38 (1) Subsection 51(1) of the Act is replaced by the following: Certificate or report of analyst 51 (1) A certificate or report prepared by an analyst under subsection 45(2) is admissible in evidence in any prosecution for an offence under this Act or any other Act of Parliament and, in the absence of evidence to the contrary, is proof of the statements set out in the certificate or report, without proof of the signature or official character of the person appearing to have signed it. (2) Subsection 51(3) of the Act is repealed. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 39-40 39 The heading before section 55 of the Act is replaced by the following: Regulations and Exemptions 40 (1) The portion of subsection 55(1) of the Act before paragraph (a) is replaced by the following: Regulations 55 (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including the regulation of the medical, scientific and industrial applications and distribution of controlled substances and precursors and the enforcement of this Act, as well as the regulation of designated devices and, without restricting the generality of the foregoing, may make regulations (2) Paragraph 55(1)(b) of the French version of the Act is replaced by the following: b) régir les circonstances et les conditions dans lesquelles peuvent se faire les opérations visées à l’alinéa a), le mode d’autorisation de celles-ci, ainsi que les personnes ou catégories de personnes pouvant s’y livrer ou habilitées à les autoriser; (3) Paragraphs 55(1)(c) to (e) of the Act are replaced by the following: (c) respecting the issuance, suspension, cancellation, duration and terms and conditions of any licence or class of licences for the importation into Canada, exportation from Canada, production, packaging, sale, provision or administration of any substance included in Schedule I, II, III, IV, V or VI or any class of those substances; (d) respecting the issuance, suspension, cancellation, duration and terms and conditions of any permit for the importation into Canada, exportation from Canada or production of a substance included in Schedule I, II, III, IV, V or VI or any class of those substances as well as the amount of those substances or any class of those substances that may be imported, exported or produced under such a permit; (d.1) authorizing the Minister to impose terms and conditions on any licence or any permit including existing licences or permits, and to amend those terms and conditions; (e) prescribing the fees payable on application for any of the licences or permits; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 40 (4) Paragraph 55(1)(f) of the French version of the Act is replaced by the following: f) régir les méthodes de production, la conservation, l’essai, l’emballage ou l’entreposage de toute substance désignée ou de tout précurseur, ou d’une de leurs catégories; (5) Paragraph 55(1)(h) of the French version of the Act is replaced by the following: h) régir les compétences requises des personnes qui, sous la supervision du titulaire d’une licence réglementaire délivrée à cette fin, s’adonnent à toute opération — notamment la production, la conservation, l’essai, l’emballage, l’entreposage, la vente ou la fourniture — portant sur toute substance désignée ou tout précurseur, ou sur une de leurs catégories; 2015, c. 22, s. 4(1) (6) Paragraphs 55(1)(m) and (n) of the Act are replaced by the following: (m) respecting records, reports, electronic data or other documents in respect of controlled substances, precursors or designated devices that are required to be kept and provided by any person or class of persons; (n) respecting the qualifications for inspectors and their powers, duties and functions in relation to verifying compliance or preventing non-compliance with the provisions of this Act or the regulations; (7) Paragraphs 55(1)(p) and (q) of the Act are replaced by the following: (p) respecting the detention and disposition of or otherwise dealing with any controlled substance, precursor, designated device, offence-related property or conveyance; (8) Paragraph 55(1)(s) of the Act is replaced by the following: (s) respecting the collection, use, retention, disclosure and disposal of information; (9) Paragraph 55(1)(t) of the French version of the Act is replaced by the following: t) régir les modalités d’établissement, de signification ou de dépôt des notifications, avis, ordonnances, rapports ou autres documents prévus par la présente loi ou ses règlements ainsi que les modalités de preuve de leur signification; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 40 (10) Paragraph 55(1)(u) of the Act is replaced by the following: (u) authorizing the Minister to add to or delete from, by order, a schedule to Part J of the Food and Drug Regulations any item or portion of an item included in Schedule V; (11) Paragraphs 55(1)(w) to (z) of the Act are replaced by the following: (w) establishing classes or groups of controlled substances, precursors or designated devices; (x) respecting the provision of information under section 45.1; (y) respecting the measures referred to in section 45.2; (y.1) respecting the review of orders under section 45.4; (z) exempting, on any terms and conditions that are specified in the regulations, any person or class of persons or any controlled substance, precursor, designated device or any class of controlled substances, precursors or designated devices from the application of all or any of the provisions of this Act or the regulations; (z.01) respecting the registration of the importation of any designated device or class of designated devices, including the time that proof of registration must be provided; and (12) Subsection 55(1) of the Act is amended by striking out “and” at the end of paragraph (z.01) and by adding the following after that paragraph: (z.02) governing, controlling, limiting, authorizing the importation into Canada, exportation from Canada, sale, provision, possession of or other dealing in any designated device or any class of designated devices; (z.03) respecting the issuance, suspension, cancellation, duration and terms and conditions of any licence or class of licences or of any permit for the importation into Canada, exportation from Canada, sale, provision or possession of any designated device or class of designated devices; and (13) Subsection 55(1) of the Act is amended by striking out “and” at the end of paragraph (z.03) and by adding the following after that paragraph: 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 40 (z.04) prescribing exportation from Canada, sale, provision, or possession of any designated device or any class of designated devices as activities for the purpose of section 46.4; (z.05) respecting the circumstances in which, the conditions subject to which and the persons or classes of persons by whom any designated device or class of designated devices may be exported from Canada, sold, provided or possessed, as well as the means by which and the persons or classes of persons by whom such activities may be authorized; (z.06) respecting the registration of activities in relation to any designated device or any class of designated devices for the purpose of section 46.4; and 2015, c. 22, s. 4(2) (14) Subsection 55(1.1) of the Act is repealed. 2015, c. 22, s. 4(2) (15) Paragraphs 55(1.2)(b) to (f) of the Act are replaced by the following: (c) respecting any information to be submitted to the Minister and the manner in which it is to be submitted; (d) respecting the circumstances in which an exemption may be granted; (e) respecting requirements in relation to an application for an exemption made under subsection 56.1(1); and (f) respecting terms and conditions in relation to an exemption granted under subsection 56.1(1). 2005, c. 10, s. 15(1) (16) The portion of subsection 55(2) of the Act before paragraph (d) is replaced by the following: Regulations pertaining to law enforcement (2) The Governor in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, may make regulations that pertain to investigations and other law enforcement activities conducted under this Act by a member of a police force or of the military police and other persons acting under the direction and control of the member and, without restricting the generality of the foregoing, may make regulations (a) authorizing, for the purposes of this subsection, 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 40 (i) the Minister of Public Safety and Emergency Preparedness or the provincial minister responsible for policing in a province, as the case may be, to designate a police force within their jurisdiction, or (ii) the Minister of National Defence to designate military police; (b) exempting, on any terms and conditions that are specified in the regulations, a member of a police force or of the military police that has been designated under paragraph (a), and other persons acting under the direction and control of the member, from the application of any provision of Part I or the regulations; (c) respecting the issuance, suspension, cancellation, duration and terms and conditions of a certificate, other document or, in exigent circumstances, an approval to obtain a certificate or other document, that is issued to a member of a police force or of the military police that has been designated under paragraph (a) for the purpose of exempting the member from the application of any provision of this Act or the regulations; (17) Paragraph 55(2)(d) of the English version of the Act is replaced by the following: (d) respecting the detention, storage and disposition of or other dealing with any controlled substance or precursor; 2001, c. 32, s. 55; 2005, c. 10, s. 15(2) (18) The portion of subsection 55(2.1) of the Act before paragraph (d) is replaced by the following: Regulations pertaining to law enforcement under other Acts (2.1) The Governor in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, may, for the purpose of an investigation or other law enforcement activity conducted under another Act of Parliament, make regulations authorizing a member of a police force or of the military police or other person under the direction and control of the member to commit an act or omission — or authorizing a member of a police force or of the military police to direct the commission of an act or omission — that would otherwise constitute an offence under Part I or the regulations and, without restricting the generality of the foregoing, may make regulations (a) authorizing, for the purposes of this subsection, 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 40-42 (i) the Minister of Public Safety and Emergency Preparedness or the provincial minister responsible for policing in a province, as the case may be, to designate a police force within their jurisdiction, or (ii) the Minister of National Defence to designate military police; (b) exempting, on any terms and conditions that are specified in the regulations, a member of a police force or of the military police that has been designated under paragraph (a), and other persons acting under the direction and control of the member, from the application of any provision of Part I or the regulations; (c) respecting the issuance, suspension, cancellation, duration and terms and conditions of a certificate, other document or, in exigent circumstances, an approval to obtain a certificate or other document, that is issued to a member of a police force or of the military police that has been designated under paragraph (a) for the purpose of exempting the member from the application of any provision of Part I or the regulations; 2001, c. 32, s. 55 (19) Paragraph 55(2.1)(d) of the English version of the Act is replaced by the following: (d) respecting the detention, storage and disposition of or other dealing with any controlled substance or precursor; 2015, c. 22, s. 5 41 Subsection 56(2) of the Act is replaced by the following: Exception (2) The Minister is not authorized under subsection (1) to grant an exemption for a medical purpose that would allow activities in relation to a controlled substance or precursor that is obtained in a manner not authorized under this Act to take place at a supervised consumption site. 2015, c. 22, s. 5 42 Section 56.1 of the Act is replaced by the following: Exemption for medical purpose — supervised consumption site 56.1 (1) For the purpose of allowing certain activities to take place at a supervised consumption site, the Minister may, on any terms and conditions that the Minister considers necessary, exempt the following from the application of all or any of the provisions of this Act or the 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Section 42 regulations if, in the opinion of the Minister, the exemption is necessary for a medical purpose: (a) any person or class of persons in relation to a controlled substance or precursor that is obtained in a manner not authorized under this Act; or (b) any controlled substance or precursor or any class of either of them that is obtained in a manner not authorized under this Act. Application (2) An application for an exemption under subsection (1) shall include information, submitted in the form and manner determined by the Minister, regarding the intended public health benefits of the site and information, if any, related to (a) the impact of the site on crime rates; (b) the local conditions indicating a need for the site; (c) the administrative structure in place to support the site; (d) the resources available to support the maintenance of the site; and (e) expressions of community support or opposition. Subsequent application (3) An application for an exemption under subsection (1) that would allow certain activities to continue to take place at a supervised consumption site shall include any update to the information provided to the Minister since the previous exemption was granted, including any information related to the public health impacts of the activities at the site. Notice (4) The Minister may give notice, in the form and manner determined by the Minister, of any application for an exemption under subsection (1). The notice shall indicate the period of time — not less than 45 days or more than 90 days — in which members of the public may provide the Minister with comments. Public decision (5) After making a decision under subsection (1), the Minister shall, in writing, make the decision public and, if the decision is a refusal, include the reasons for it. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 42-46 56.2 A person who is responsible for the direct supervision, at a supervised consumption site, of the consumption of controlled substances, may offer a person using the site alternative pharmaceutical therapy before that person consumes a controlled substance that is obtained in a manner not authorized under this Act. 43 The Act is amended by adding the following before section 57: Miscellaneous 44 Section 59 of the Act is repealed. 45 Section 60 of the Act is replaced by the following: Schedules 60 The Governor in Council may, by order, amend any of Schedules I to IV and VI to IX by adding to them or deleting from them any item or portion of an item, if the Governor in Council considers the amendment to be necessary in the public interest. Schedule V 60.1 (1) The Minister may, by order, add to Schedule V any item or portion of an item for a period of up to one year, or extend that period by up to another year, if the Minister has reasonable grounds to believe that it (a) poses a significant risk to public health or safety; or (b) may pose a risk to public health or safety and (i) is being imported into Canada with no legitimate purpose, or (ii) is being distributed in Canada with no legitimate purpose. Deletions (2) The Minister may, by order, delete any item or portion of an item from Schedule V. 46 Schedule I to the Act is amended by replacing the references after the heading “SCHEDULE I” with the following: (Sections 2, 4 to 7.1, 10, 29, 55 and 60) 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Controlled Drugs and Substances Act Sections 47-54 47 Schedule II to the Act is amended by replacing the references after the heading “SCHEDULE II” with the following: (Sections 2, 4 to 7.1, 10, 29, 55 and 60) 48 Schedule III to the Act is amended by replacing the references after the heading “SCHEDULE III” with the following: (Sections 2, 4 to 7.1, 10, 29, 55 and 60) 49 Schedule IV to the Act is amended by replacing the references after the heading “SCHEDULE IV” with the following: (Sections 2, 4 to 7.1, 10, 29, 55 and 60) SOR/2002-361, s. 1; SOR/2003-32, s. 7 50 Schedule V to the Act is replaced by the Schedule V set out in Schedule 1 to this Act. 51 The Act is amended by adding, after Schedule VIII, the Schedule IX set out in Schedule 2 to this Act. Related Amendments R.S., c. 1 (2nd Supp.) Customs Act 2001, c. 25, s. 59(6) 52 Subsections 99(2) and (3) of the Customs Act are repealed. 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act 53 Subsections 17(2) and (3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are repealed. R.S., c. C-46 Criminal Code 2001, c. 41, s. 4 54 (1) Paragraphs 83.13(4)(a) and (b) of the Criminal Code are replaced by the following: (a) the power to make an interlocutory sale of perishable or rapidly depreciating property; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Section 54 (b) the power to destroy, in accordance with subsections (5) to (8), property that has little or no value; and (c) the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (8.1). 2001, c. 41, s. 4 (2) Subsection 83.13(5) of the Act is replaced by the following: Application for destruction order (5) Before a person who is appointed to manage property destroys property that has little or no value, they shall apply to a judge of the Federal Court for a destruction order. 2001, c. 41, s. 4 (3) Subsection 83.13(6) of the English version of the Act is replaced by the following: Notice (6) Before making a destruction order, a judge shall require notice in accordance with subsection (7) to be given to and may hear any person who, in the judge’s opinion, appears to have a valid interest in the property. 2001, c. 41, s. 4 (4) Subsections 83.13(7) to (9) of the Act are replaced by the following: Manner of giving notice (7) A notice shall (a) be given in the manner that the judge directs or that may be specified in the rules of the Federal Court; and (b) specify the effective period of the notice that the judge considers reasonable or that may be set out in the rules of the Federal Court. Destruction order (8) A judge shall order that the property be destroyed if they are satisfied that the property has little or no financial or other value. Forfeiture order (8.1) On application by a person who is appointed to manage the property, a judge of the Federal Court shall order that the property, other than real property or a 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 54-57 conveyance, be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the law if (a) a notice is given or published in the manner that the judge directs or that may be specified in the rules of the Federal Court; (b) the notice specifies a period of 60 days during which a person may make an application to the judge asserting their interest in the property; and (c) during that period, no one makes such an application. When management order ceases to have effect (9) A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty. For greater certainty (9.1) For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale. 2001, c. 41, s. 4 55 Subsection 83.14(5) of the French version of the Act is replaced by the following: Confiscation (5) S’il est convaincu, selon la prépondérance des probabilités, que les biens sont visés par les alinéas (1)a) ou b), le juge ordonne la confiscation des biens au profit de Sa Majesté; l’ordonnance prévoit qu’il est disposé de ces biens selon les instructions du procureur général ou autrement en conformité avec le droit applicable. 56 Paragraph (d) of the definition offence in section 183 of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii): (iv) section 7.1 (possession, sale, etc., for use in production or trafficking), R.S., c. 42 (4th Supp.), s. 2 57 Paragraph 462.32(4)(a) of the French version of the Act is replaced by the following: a) détenir — ou faire détenir — les biens saisis en prenant les précautions normales pour garantir leur préservation jusqu’à ce qu’il ait été statué à leur égard conformément au droit applicable; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Section 58 2001, c. 32, s. 16 58 (1) Paragraphs 462.331(3)(a) and (b) of the Act are replaced by the following: (a) the power to make an interlocutory sale of perishable or rapidly depreciating property; (b) the power to destroy, in accordance with subsections (4) to (7), property that has little or no value; and (c) the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (7.1). 2001, c. 32, s. 16 (2) Subsections 462.331(4) and (5) of the Act are replaced by the following: Application for destruction order (4) Before a person who is appointed to manage property destroys property that has little or no value, they shall apply to a court for a destruction order. Notice (5) Before making a destruction order, a court shall require notice in accordance with subsection (6) to be given to and may hear any person who, in the court’s opinion, appears to have a valid interest in the property. 2001, c. 32, s. 16 (3) Paragraphs 462.331(6)(a) and (b) of the Act are replaced by the following: (a) be given in the manner that the court directs or that may be specified in the rules of the court; and (b) specify the effective period of the notice that the court considers reasonable or that may be set out in the rules of the court. 2001, c. 32, s. 16 (4) Subsections 462.331(7) and (8) of the Act are replaced by the following: Destruction order (7) A court shall order that the property be destroyed if it is satisfied that the property has little or no financial or other value. Forfeiture order (7.1) On application by a person who is appointed to manage the property, a court shall order that the 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 58-59 property, other than real property or a conveyance, be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the law if (a) a notice is given or published in the manner that the court directs or that may be specified in the rules of the court; (b) the notice specifies a period of 60 days during which a person may make an application to the court asserting their interest in the property; and (c) during that period, no one makes such an application. When management order ceases to have effect (8) A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty. For greater certainty (8.1) For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale. 2001, c. 32, s. 19 59 (1) Subsections 462.37(1) and (2) of the Act are replaced by the following: Order of forfeiture of property 462.37 (1) Subject to this section and sections 462.39 to 462.41, if an offender is convicted, or discharged under section 730, of a designated offence and the court imposing sentence on or discharging the offender, on application of the Attorney General, is satisfied, on a balance of probabilities, that any property is proceeds of crime obtained through the commission of the designated offence, the court shall order that the property be forfeited to Her Majesty to be disposed of as the Attorney General directs or otherwise dealt with in accordance with the law. Proceeds of crime — other offences (2) If the evidence does not establish to the satisfaction of the court that property in respect of which an order of forfeiture would otherwise be made under subsection (1) was obtained through the commission of the designated offence of which the offender is convicted or discharged, but the court is satisfied, beyond a reasonable doubt, that the property is proceeds of crime, the court may make an order of forfeiture under subsection (1) in relation to that property. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 59-61 2005, c. 44, s. 6(1) (2) Subsection 462.37(2.01) of the French version of the Act is replaced by the following: Confiscation — circonstances particulières (2.01) Dans le cas où le contrevenant est condamné pour une infraction mentionnée au paragraphe (2.02), le tribunal qui détermine la peine à infliger est tenu, sur demande du procureur général et sous réserve des autres dispositions du présent article et des articles 462.4 et 462.41, d’ordonner la confiscation au profit de Sa Majesté des biens du contrevenant précisés par le procureur général dans la demande et de prévoir dans l’ordonnance qu’il est disposé de ces biens selon les instructions du procureur général ou autrement en conformité avec le droit applicable, s’il est convaincu, selon la prépondérance des probabilités, de l’un ou l’autre des faits suivants : a) le contrevenant s’est livré, dans les dix ans précédant l’inculpation relative à l’infraction en cause, à des activités criminelles répétées visant à lui procurer, directement ou indirectement, un avantage matériel, notamment pécuniaire; b) le revenu du contrevenant de sources non liées à des infractions désignées ne peut justifier de façon raisonnable la valeur de son patrimoine. 2001, c. 32, s. 20(2) 60 (1) Paragraph 462.38(2)(b) of the Act is replaced by the following: (b) that property was obtained through the commission of a designated offence in respect of which proceedings were commenced, and R.S., c. 42 (4th Supp.), s. 2 (2) The portion of subsection 462.38(2) of the French version of the Act after paragraph (c) is replaced by the following: L’ordonnance prévoit qu’il est disposé de ces biens selon les instructions du procureur général ou autrement en conformité avec le droit applicable. R.S., c. 42 (4th Supp.), s. 2 61 The portion of subsection 462.41(2) of the Act before paragraph (c) is replaced by the following: Manner of giving notice (2) A notice shall (a) be given in the manner that the court directs or that may be specified in the rules of the court; 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 61-64 (b) specify the period that the court considers reasonable or that may be set out in the rules of the court during which a person may make an application to the court asserting their interest in the property; and R.S., c. 42 (4th Supp.), s. 2 62 The portion of paragraph 462.43(1)(c) of the French version of the Act after subparagraph (ii) is replaced by the following: toutefois, si le saisi ou la personne qui l’a remis à l’administrateur n’en avait pas la possession légitime et si le véritable propriétaire ou la personne qui a droit à sa possession légitime est inconnu, le juge peut en ordonner la confiscation au profit de Sa Majesté, l’ordonnance prévoyant qu’il est disposé du bien selon les instructions du procureur général ou autrement en conformité avec le droit applicable. 1997, c. 18, s. 50(2) 63 The portion of subsection 490(9) of the French version of the Act after paragraph (d) is replaced by the following: en cas d’illégalité de la possession de cette chose par la personne entre les mains de qui elle a été saisie, ou si nul n’en avait la possession au moment de la saisie, et lorsque ne sont pas connus le propriétaire légitime ni la personne ayant droit à la possession de cette chose, le juge peut en outre ordonner qu’elle soit confisquée au profit de Sa Majesté; il en est alors disposé selon les instructions du procureur général ou autrement en conformité avec le droit applicable. 1997, c. 23, s. 15; 2007, c. 13, ss. 8(1) and (2) 64 Subsections 490.1(1) and (2) of the Act are replaced by the following: Order of forfeiture of property on conviction 490.1 (1) Subject to sections 490.3 to 490.41, if a person is convicted, or discharged under section 730, of an indictable offence under this Act or the Corruption of Foreign Public Officials Act and, on application of the Attorney General, the court is satisfied, on a balance of probabilities, that offence-related property is related to the commission of the offence, the court shall (a) if the prosecution of the offence was commenced at the instance of the government of a province and conducted by or on behalf of that government, order that the property be forfeited to Her Majesty in right of that province to be disposed of or otherwise dealt with in accordance with the law by the Attorney General or Solicitor General of that province; and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 64-66 (b) in any other case, order that the property be forfeited to Her Majesty in right of Canada to be disposed of or otherwise dealt with in accordance with the law by the member of the Queen’s Privy Council for Canada that is designated by the Governor in Council for the purpose of this paragraph. Property related to other offences (2) Subject to sections 490.3 to 490.41, if the evidence does not establish to the satisfaction of the court that property in respect of which an order of forfeiture would otherwise be made under subsection (1) is related to the commission of the indictable offence under this Act or the Corruption of Foreign Public Officials Act of which a person is convicted or discharged, but the court is satisfied, beyond a reasonable doubt, that the property is offence-related property, the court may make an order of forfeiture under subsection (1) in relation to that property. 1997, c. 23, s. 15 65 Paragraphs 490.2(4)(a) and (b) of the Act are replaced by the following: (a) if the prosecution of the offence was commenced at the instance of the government of a province and conducted by or on behalf of that government, order that the property be forfeited to Her Majesty in right of that province to be disposed of or otherwise dealt with in accordance with the law by the Attorney General or Solicitor General of that province; and (b) in any other case, order that the property be forfeited to Her Majesty in right of Canada to be disposed of or otherwise dealt with in accordance with the law by the member of the Queen’s Privy Council for Canada that is designated by the Governor in Council for the purpose of this paragraph. 1997, c. 23, s. 15 66 The portion of subsection 490.4(2) of the Act before paragraph (c) is replaced by the following: Manner of giving notice (2) A notice shall (a) be given in the manner that the court directs or that may be specified in the rules of the court; (b) specify the period that the court considers reasonable or that may be set out in the rules of the court during which a person may make an application to the court asserting their interest in the property; and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 67-68 2001, c. 32, s. 33 67 Paragraphs 490.41(2)(a) and (b) of the Act are replaced by the following: (a) be given in the manner that the court directs or that may be specified in the rules of the court; (b) specify the period that the court considers reasonable or that may be set out in the rules of the court during which a member of the immediate family who resides in the dwelling-house may make themselves known to the court; and 2001, c. 32, s. 36 68 (1) Paragraphs 490.81(3)(a) and (b) of the Act are replaced by the following: (a) the power to make an interlocutory sale of perishable or rapidly depreciating property; (b) the power to destroy, in accordance with subsections (4) to (7), property that has little or no value; and (c) the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (7.1). 2001, c. 32, s. 36 (2) Subsections 490.81(4) and (5) of the Act are replaced by the following: Application for destruction order (4) Before a person who is appointed to manage property destroys property that has little or no value, they shall apply to a court for a destruction order. Notice (5) Before making a destruction order, a court shall require notice in accordance with subsection (6) to be given to and may hear any person who, in the court’s opinion, appears to have a valid interest in the property. 2001, c. 32, s. 36 (3) Paragraphs 490.81(6)(a) and (b) of the Act are replaced by the following: (a) be given in the manner that the court directs or that may be specified in the rules of the court; and (b) specify the effective period of the notice that the court considers reasonable or that may be set out in the rules of the court. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Criminal Code Sections 68-69 2001, c. 32, s. 36 (4) Subsections 490.81(7) and (8) of the Act are replaced by the following: Destruction order (7) A court shall order that the property be destroyed if it is satisfied that the property has little or no financial or other value. Forfeiture order (7.1) On application by a person who is appointed to manage the property, a court shall order that the property, other than real property or a conveyance, be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the law if (a) a notice is given or published in the manner that the court directs or that may be specified in the rules of the court; (b) the notice specifies a period of 60 days during which a person may make an application to the court asserting their interest in the property; and (c) during that period, no one makes such an application. When management order ceases to have effect (8) A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty. For greater certainty (8.1) For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale. R.S., c. 27 (1st Supp.), s. 74 69 Paragraph 491.1(2)(b) of the French version of the Act is replaced by the following: b) confiscation au profit de Sa Majesté, si leur propriétaire légitime ou la personne qui a droit à leur possession légitime ne sont pas connus, pour qu’il en soit disposé selon que l’ordonne le procureur général ou autrement en conformité avec le droit applicable. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Seized Property Management Act Sections 70-72 1993, c. 37 Seized Property Management Act 2001, c. 41, ss. 135(6) and (7) 70 Paragraphs 4(1)(a) and (b) of the Seized Property Management Act are replaced by the following: (a) seized under a warrant issued under section 83.13, 462.32 or 487 of the Criminal Code or section 11 of the Controlled Drugs and Substances Act on the application of the Attorney General and that the Minister is appointed to manage under subsection 83.13(3), 462.331(2) or 490.81(2) of the Criminal Code or subsection 15.1(2) of the Controlled Drugs and Substances Act, as the case may be; (b) subject to a restraint order made under section 83.13, 462.33 or 490.8 of the Criminal Code or section 14 of the Controlled Drugs and Substances Act on the application of the Attorney General and that the Minister is appointed to manage under subsection 83.13(3), 462.331(2) or 490.81(2) of the Criminal Code or subsection 15.1(2) of the Controlled Drugs and Substances Act, as the case may be; 2001, c. 41, s. 135(8) 71 Subsection 5(1) of the Act is replaced by the following: Transfer of property 5 (1) Every person who has control of any property that is subject to a management order issued under subsection 83.13(2), 462.331(1) or 490.81(1) of the Criminal Code, subsection 15.1(1) of the Controlled Drugs and Substances Act or subsection 7(1) of this Act shall, as soon as practicable after the order is issued, transfer the control of the property to the Minister, except for any property or any part of the property that is needed as evidence or is necessary for the purposes of an investigation. 2001, c. 32, s. 77 72 (1) Paragraphs 7(2)(a) and (b) of the Act are replaced by the following: (a) the power to make an interlocutory sale of perishable or rapidly depreciating property; (b) the power to destroy, in accordance with subsections (2.1) to (2.4), property that has little or no value; and 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Seized Property Management Act Section 72 (c) the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (2.5). 2001, c. 32, s. 77 (2) Subsection 7(2.2) of the Act is replaced by the following: Notice (2.2) Before making a destruction order, a court shall require notice in accordance with subsection (2.3) to be given to and may hear any person who, in the court’s opinion, appears to have a valid interest in the property. 2001, c. 32, s. 77 (3) Paragraphs 7(2.3)(a) and (b) of the Act are replaced by the following: (a) be given in the manner that the court directs or that may be specified in the rules of the court; and (b) specify the effective period of the notice that the court considers reasonable or that may be set out in the rules of the court. 2001, c. 32, s. 77 (4) Subsections 7(2.4) and (3) of the Act are replaced by the following: Destruction order (2.4) A court shall order that the property be destroyed if it is satisfied that the property has little or no financial or other value. Forfeiture order (2.5) On application by the Minister, a court shall order that the property, other than real property or a conveyance, be forfeited to Her Majesty and disposed of or otherwise dealt with in accordance with the law if (a) a notice is given or published in the manner that the court directs or that may be specified in the rules of the court; (b) the notice specifies a period of 60 days during which a person may make an application to the court asserting their interest in the property; and (c) during that period, no one makes such an application. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts Related Amendments Seized Property Management Act Sections 72-73 When management order ceases to have effect (3) A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty. For greater certainty (4) For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale. Coming into Force Order in council 73 (1) Subsection 1(1) and section 28 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Subsection 1(6), section 2, subsections 3(2) and 7(1), (3) and (5), sections 8 and 10 to 24, subsection 26(8), sections 29, 54, 58 and 59, subsection 60(1) and sections 61, 64 to 68 and 70 to 72 come into force on a day to be fixed by order of the Governor in Council. Order in council (3) Sections 31, 32 and 36 and subsection 40(13) come into force on a day to be fixed by order of the Governor in Council, but this day must not be before the day fixed by the Governor in Council under subsection (5). Order in council (4) Section 35 comes into force on a day to be fixed by order of the Governor in Council. Order in council (5) Subsection 40(12) comes into force on a day to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts SCHEDULE 1 SCHEDULE 1 (Section 50) SCHEDULE V (Sections 2, 5 to 7.1, 10, 55 and 60.1) 2015-2016-2017 Chapter 7: An Act to amend the Controlled Drugs and Substances Act and to make related amendments to other Acts SCHEDULE 2 SCHEDULE 2 (Section 51) SCHEDULE IX (Sections 2 and 60) Manual, semi-automatic or fully automatic device that may be used to compact or mould powdered, granular or semi-solid material to produce coherent solid tablets Manual, semi-automatic or fully automatic device that may be used to fill capsules with any powdered, granular, semi-solid or liquid material Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 5 An Act respecting National Seal Products Day ASSENTED TO MAY 16, 2017 BILL S-208 SUMMARY This enactment designates May 20 as “National Seal Products Day”. ii 64-65-66 ELIZABETH II CHAPTER 5 An Act respecting National Seal Products Day [Assented to 16th May, 2017] Preamble Whereas human beings have depended on ocean resources, including seals and other marine animals, for nourishment for thousands of years; Whereas Canada’s Indigenous peoples and coastal communities have developed traditional knowledge of how to use ocean resources; Whereas this traditional knowledge and the traditions, culture and heritage of Canada’s Indigenous peoples and coastal communities respecting the use of ocean resources should be preserved and recognized; Whereas the use of ocean resources plays an important economic role for Canada’s Indigenous peoples and coastal communities; Whereas the extractors of Canada’s ocean resources play an important role in the sustainable management and preservation of populations of wild species and in the maintenance of ecosystemic balance; Whereas scientific knowledge of and methods for using ocean resources have evolved rapidly in recent years; Whereas the extraction and use of Canada’s ocean resources are compatible with the contemporary principles of animal protection, sustainable development, ecosystemic management and preventive regulation; Whereas the extraction and use of Canada’s ocean resources can be reconciled with a respectful and cruelty-free treatment of sea animals; Whereas the extraction and use of Canada’s ocean resources are compatible with the Convention on Biological Diversity’s objectives of conservation, sustainable use and a fair and equitable sharing; 2015-2016-2017 Chapter 5: An Act respecting National Seal Products Day Short Title Sections 1-3 Whereas the use of Canada’s ocean resources accords with the principle of rational use advocated by the International Union for Conservation of Nature; Whereas ecosystemic balance is the fruit of a constant interaction between predator and prey; Whereas the human species is an integral part of the ecosystem and, as a result, its role as a predator cannot be separated from the rest of nature; Whereas the European Union has declared May 20 to be European Maritime Day in order to recall “the importance of a healthy marine environment both for the sustainability of economic activities on the seas and for the quality of life in coastal regions”; And whereas the importance of the seal hunt for Canada’s Indigenous people, coastal communities and entire population should be recognized by designating May 20 as National Seal Products Day; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons, enacts as follows: Short Title Short title 1 This Act may be cited as the National Seal Products Day Act. National Seal Products Day National Seal Products Day 2 Throughout Canada, in each and every year, the 20th day of May is to be known as “National Seal Products Day”. Not a legal holiday or non-juridical day 3 For greater certainty, National Seal Products Day is not a legal holiday or a non-juridical day. Published under authority of the Senate of Canada 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 4 An Act to amend the Controlled Drugs and Substances Act (assistance — drug overdose) ASSENTED TO MAY 4, 2017 BILL C-224 SUMMARY This enactment amends the Controlled Drugs and Substances Act in order to exempt from charges for possession or charges related to the violation of certain conditions or orders a person who seeks emergency medical or law enforcement assistance for themselves or another person following overdosing on a controlled substance. ii 64-65-66 ELIZABETH II CHAPTER 4 An Act to amend the Controlled Drugs Substances Act (assistance — drug overdose) and [Assented to 4th May, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short Title 1 This Act may be cited as the Good Samaritan Drug Overdose Act. 1996, c. 19 Controlled Drugs and Substances Act 2 The Controlled Drugs and Substances Act is amended by adding the following after section 4: Definition of overdose 4.1 (1) For the purposes of this section, overdose means a physiological event induced by the introduction of a controlled substance into the body of a person that results in a life-threatening situation and that a reasonable person would believe requires emergency medical or law enforcement assistance. Exemption from possession of substance charges (2) No one who seeks emergency medical or law enforcement assistance because that person, or another person, is suffering from an overdose is to be charged or convicted under subsection 4(1) if the evidence in support of that offence was obtained or discovered as a result of that person having sought assistance or having remained at the scene. 2015-2016-2017 Chapter 4: An Act to amend the Controlled Drugs and Substances Act (assistance — drug overdose) Controlled Drugs and Substances Act Section 2 Precision (3) The exemption under subsection (2) also applies to any person, including the person suffering from the overdose, who is at the scene upon the arrival of the emergency medical or law enforcement assistance. Exemption — violation of conditions or orders (4) No one who seeks emergency medical or law enforcement assistance because that person, or another person, is suffering from an overdose, or who is at the scene upon the arrival of the assistance, is to be charged with an offence concerning a violation of a pre-trial release, probation order, conditional sentence or parole relating to an offence under subsection 4(1) if the evidence in support of that offence was obtained or discovered as a result of that person having sought assistance or having remained at the scene. Precision (5) Any condition of a person’s pre-trial release, probation order, conditional sentence or parole relating to an offence under subsection 4(1) that may be violated as a result of the person seeking emergency medical or law enforcement assistance for their, or another person’s, overdose, or as a result of having been at the scene upon the arrival of the assistance, is deemed not to be violated. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 1 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2017 ASSENTED TO MARCH 30, 2017 BILL C-40 SUMMARY This enactment grants the sum of $2,472,238,717 towards defraying charges and expenses of the federal public administration for the fiscal year ending March 31, 2017 that are not otherwise provided for. ii 64-65-66 ELIZABETH II CHAPTER 1 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2017 [Assented to 30th March, 2017] MOST GRACIOUS SOVEREIGN, Preamble Whereas it appears by message from His Excellency the Right Honourable David Johnston, Governor General and Commander-in-Chief of Canada, and the Estimates accompanying that message, that the sums mentioned below are required to defray certain expenses of the federal public administration, not otherwise provided for, for the fiscal year ending March 31, 2017, and for other purposes connected with the federal public administration; May it therefore please Your Majesty, that it may be enacted, and be it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, that: Short title 1 This Act may be cited as the Appropriation Act No. 5, 2016–17. $2,472,238,717 granted for 2016–17 2 There may be paid out of the Consolidated Revenue Fund a sum not exceeding in the aggregate $2,472,238,717 towards defraying the various charges and expenses of the federal public administration for the fiscal year ending March 31, 2017, not otherwise provided for, which is the total of the amounts of the items set out in the Supplementary Estimates (C) for that fiscal year as set out in Schedules 1 and 2. 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 Sections 3-6 Transfers of appropriations 3 The transfers of appropriations set out in the Estimates referred to in section 2 are deemed to have been authorized on April 1, 2016. Purpose of each item 4 (1) The amount authorized by this Act to be paid in respect of an item may be paid only for the purposes, and subject to any terms and conditions, specified in the item. Effective date (2) The provisions of each item in Schedules 1 and 2 are deemed to have effect as of April 1, 2016. Commitments 5 (1) Where an item in the Estimates referred to in section 2 confers authority to enter into commitments up to an amount stated in those Estimates or increases the amount up to which commitments may be entered into under any other Act, or where a commitment is to be entered into under subsection (2), the commitment may be entered into in accordance with the terms of that item or in accordance with that subsection if the amount of the commitment proposed to be entered into, together with all previous commitments entered into in accordance with this section or under that other Act, does not exceed the total amount of the commitment authority stated in that item or calculated in accordance with that subsection. Commitment limits — revenue-spending authority (2) Where an item in the Estimates referred to in section 2 or a provision of any Act confers authority to spend revenues, commitments may be entered into in accordance with the terms of that item or provision up to an amount equal to the aggregate of (a) the amount, if any, appropriated in respect of that item or provision, and (b) whichever is greater: the amount of revenues actually received or the amount of the estimated revenues set out in those Estimates for that item or in respect of that provision. Adjustments in accounts of Canada — Schedule 1 6 An appropriation that is granted by this Act or any other Act and set out in Schedule 1 may be charged after the end of the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that fiscal year are tabled in Parliament, for the purpose of making adjustments in the accounts of 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 Sections 6-7 Canada for that fiscal year that do not require payments out of the Consolidated Revenue Fund. Adjustments in accounts of Canada — Schedule 2 7 (1) An appropriation that is granted by this Act or any other Act and set out in Schedule 2 may be charged after the end of the fiscal year following the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that second fiscal year are tabled in Parliament, for the purpose of making adjustments in the accounts of Canada for that second fiscal year that do not require payments out of the Consolidated Revenue Fund. Order of payment (2) Despite any other provision of this Act, amounts appropriated by this Act and set out in Schedule 2 may be paid and applied at any time on or before March 31, 2018, so long as every payment is charged first against the relevant amount appropriated under any Act that is earliest in time until that amount is exhausted, next against the relevant amount appropriated under any other Act, including this Act, that is next in time until that amount is exhausted and so on. The balance of amounts so appropriated by this Act that have not been charged, subject to the adjustments referred to in section 37 of the Financial Administration Act, lapse at the end of the fiscal year following the fiscal year ending March 31, 2017. 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 SCHEDULE 1 Based on Supplementary Estimates (C), 2016–17, the amount gr items set out in this Schedule. Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items ADMINISTRATIVE TRIBUNALS SUPPORT SERVICE OF CAN Service canadien d’appui aux tribunaux administratifs 1c – Program expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A ATLANTIC CANADA OPPORTUNITIES AGENCY Agence de promotion économique du Canada atlantiqu 5c – The grants listed in any of the Estimates for the fiscal ye – Contributions CANADA COUNCIL FOR THE ARTS Conseil des Arts du Canada 1c – Payments to the Council to be used for the furtherance section 8 of the Canada Council for the Arts Act CANADA MORTGAGE AND HOUSING CORPORATION Société canadienne d’hypothèques et de logement 1c – Payments to reimburse the Corporation for the amount grants, contributions and expenditures made, and losse curred, (a) under the National Housing Act; or (b) in the course of the exercise of powers or the car functions conferred on the Corporation under any o accordance with the Corporation’s authority under t Housing Corporation Act CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY Agence canadienne d’évaluation environnementale 1c – Program expenditures – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the conduct of environmental assessments by a (b) the provision of training; and (c) the provision of internal support services under s CANADIAN INSTITUTES OF HEALTH RESEARCH Instituts de recherche en santé du Canada 5c – The grants listed in any of the Estimates for the fiscal ye CANADIAN SECURITY INTELLIGENCE SERVICE Service canadien du renseignement de sécurité 1c – Program expenditures 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items CANADIAN SPACE AGENCY Agence spatiale canadienne 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions COMMUNICATIONS SECURITY ESTABLISHMENT Centre de la sécurité des télécommunications 1c – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal including the provision of internal support services und DEPARTMENT OF AGRICULTURE AND AGRI-FOOD Ministère de l’Agriculture et de l’Agroalimentaire 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) collaborative research agreements and research (b) the grazing and breeding activities of the Commu (c) the administration of the AgriStability program; a (d) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – Capital expenditures DEPARTMENT OF CANADIAN HERITAGE Ministère du Patrimoine canadien 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the activities of the Canadian Conservation Instit itage Information Network and the Canadian Audio(b) activities undertaken under the Capital Experienc (c) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF CITIZENSHIP AND IMMIGRATION Ministère de la Citoyenneté et de l’Immigration 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. 1c Items – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year from the provision of services related to Canada — revenues that it receives in that fiscal year fro services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – Capital expenditures 7c – The writing off, as referred to in subsection 25(2) of the Act, of 2,804 debts due to Her Majesty in right of Canad to $1,991,528 related to immigration loans 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions, including the provision of goods and ser DEPARTMENT OF EMPLOYMENT AND SOCIAL DEVELOPM Ministère de l’Emploi et du Développement social 1c – Operating expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) the provision of Public Access Programs Sector s (b) the provision of services to assist provinces in th provincial programs funded under Labour Market D (c) the provision of services on behalf of other feder ments; (d) the provision of internal support services under s (e) any amount charged to a Crown corporation und Government Employees Compensation Act in relatio for subrogated claims for Crown corporations; and (f) the portion of the Government Employees Comp tal or agency subrogated claim settlements related t – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – The grants listed in any of the Estimates for the fiscal ye – Contributions 7c – The writing off, as referred to in subsection 25(2) of the Act, of 32,554 debts due to Her Majesty in right of Cana to $178,370,098 related to student loans made under th cial Assistance Act DEPARTMENT OF FINANCE Ministère des Finances 1c – Program expenditures 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State DEPARTMENT OF FISHERIES AND OCEANS Ministère des Pêches et des Océans 1c – Operating expenditures – Canada’s share of expenses of the international fisherie – Authority to provide free accommodation for the intern sions – Authority to make recoverable advances in the amount ternational fisheries commissions of joint cost projects – Authority to make recoverable advances for transportat er shipping services performed for individuals, outside ernments in the course of, or arising out of, the exercis tion, including aids to navigation and shipping – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) in the course of, or arising from, the activities of Guard; and (b) from the provision of internal support services u Act – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – Capital expenditures – Authority to make payments to provinces, municipalitie thorities as contributions towards construction done by – Authority for the purchase and disposal of commercial DEPARTMENT OF FOREIGN AFFAIRS, TRADE AND DEVEL Ministère des Affaires étrangères, du Commerce et du 1c – Operating expenditures, including those related to the a representatives abroad, to the staff of those representa ment of Canadians to the staffs of international organiz – Authority to make recoverable advances to internationa amounts not exceeding the amounts of the shares of th – Expenditures in respect of the provision of office accom tional Civil Aviation Organization – Authority to make recoverable expenditures for assistan distressed Canadian citizens and Canadian residents liv their dependants 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) trade and education fairs; (b) departmental publications; and (c) the following services: (i) training services provided by the Canadian Fo (ii) trade missions and other international busine (iii) investment development services, (iv) international telecommunication services, (v) other services provided abroad to other depa Crown corporations and non-federal organization (vi) specialized consular services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions, including payments for other specified p vision of goods and services for (a) the promotion of trade and investment; and (b) international humanitarian assistance and assist national security, international development and glo 17c – The forgiveness, as referred to in section 24.1 of the Fin Act, of certain debts due to Her Majesty in right of Cana to $18,009,733 related to loans made to the Republic of DEPARTMENT OF HEALTH Ministère de la Santé 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the provision of services or the sale of products r tion, regulatory activities and medical services; and (b) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions, in the form of monetary payments or the services DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEV Ministère des Affaires indiennes et du Nord canadien 1c – Operating expenditures – Expenditures on works, buildings and equipment 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items – Authority to make expenditures — recoverable or other formed on property that is not federal property and on spect of that property – Authority to provide, in respect of Indian and Inuit econ ties, for the capacity development for Indians and Inuit terials and equipment – Authority to sell electric power to private consumers in alternative local sources of supply are not available, in and conditions approved by the Governor in Council – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF INDUSTRY Ministère de l’Industrie 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the provision of internal support services under s and the provision of internal support services to the Property Office; (b) activities and operations related to communicati munications Research Centre; (c) services and insolvency processes under the Ban Act at the Office of the Superintendent of Bankruptc (d) activities and operations carried out by Corporat Canada Business Corporations Act, the Boards of Tr operatives Act, the Canada Not-for-profit Corporatio Corporations Act; and (e) services and regulatory processes for mergers an ters, including pre-merger notifications, advance rul ten opinions, under the Competition Act at the Com – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State DEPARTMENT OF JUSTICE Ministère de la Justice 5c – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF NATIONAL DEFENCE Ministère de la Défense nationale 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. 1c Items – Operating expenditures – Authority for total commitments, subject to allotment b of $28,421,006,756 for the purposes of Votes 1, 5 and 10 gardless of the year in which the payment of those com which it is estimated that $10,318,618,383 will come du years) – Authority, subject to the direction of the Treasury Board penditures or advances in respect of materials supplied formed on behalf of, individuals, corporations, outside departments and agencies and other governments – Authority to make payments (a) in respect of pension, insurance and social secur rangements for employees locally engaged outside (b) in respect of the administration of such program cluding premiums, contributions, benefit payments, tures made in respect of such employees and for an Treasury Board determines – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – Capital expenditures DEPARTMENT OF NATURAL RESOURCES Ministère des Ressources naturelles 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the sale of forestry and information products; (b) the issue of licences, permits and certificates und the Explosives Regulations, 2013; (c) training and certification activities related to the A ferred to in paragraph (b); (d) research, consultation, testing, analysis, and adm part of the departmental operations; and (e) the provision of internal support services under s cial Administration Act – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State DEPARTMENT OF PUBLIC SAFETY AND EMERGENCY PRE Ministère de la Sécurité publique et de la Protection civ 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT S Ministère des Travaux publics et des Services gouverne 1c – Operating expenditures for the provision of accommod tral services – Authority to make recoverable expenditures in relation Canada Pension Plan, the Employment Insurance Act a Management Act – Authority to expend revenues received during the fisca modation, common and central services – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – Capital expenditures including expenditures on works o ty – Authority to reimburse tenants of federal property for im by the Minister of Public Works and Government Servic DEPARTMENT OF THE ENVIRONMENT Ministère de l’Environnement 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions, including ones to developing countries b Fund for the Implementation of the Montreal Protocol t tary payments or the provision of goods, equipment or DEPARTMENT OF VETERANS AFFAIRS Ministère des Anciens Combattants 1c – Operating expenditures – Expenditures related to the upkeep of real property, inc other investigatory planning expenses that do not add ty, payment of taxes, insurance and public utilities – Expenditures related to, subject to the approval of the G (a) necessary remedial work on properties construct price contracts and sold under the Veterans’ Land A correct defects for which neither the veteran nor the financially responsible; and (b) other work on other properties that is required to terest in those properties 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5c – The grants listed in any of the Estimates for the fiscal ye listed for any grant may be increased or decreased, sub the Treasury Board – Contributions DEPARTMENT OF WESTERN ECONOMIC DIVERSIFICATIO Ministère de la Diversification de l’économie de l’Ouest 5c – The grants listed in any of the Estimates for the fiscal ye – Contributions IMMIGRATION AND REFUGEE BOARD Commission de l’immigration et du statut de réfugié 1c – Program expenditures LIBRARY AND ARCHIVES OF CANADA Bibliothèque et Archives du Canada 1c – Operating expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t viding access to the collection and from the reproductio collection NATIONAL CAPITAL COMMISSION Commission de la capitale nationale 5c – Payments to the Commission for capital expenditures NATIONAL RESEARCH COUNCIL OF CANADA Conseil national de recherches du Canada 10c – The grants listed in any of the Estimates for the fiscal ye – Contributions, including the provision of goods and ser Thirty Meter Telescope Observatory NATURAL SCIENCES AND ENGINEERING RESEARCH COU Conseil de recherches en sciences naturelles et en géni 5c – The grants listed in any of the Estimates for the fiscal ye OFFICE OF INFRASTRUCTURE OF CANADA Bureau de l’infrastructure du Canada 1c – Operating expenditures 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items PARLIAMENTARY PROTECTIVE SERVICE Service de protection parlementaire 1c – Program expenditures PRIVY COUNCIL OFFICE Bureau du Conseil privé 1c – Program expenditures, including operating expenditure quiry not otherwise provided for and the operation of t dence – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State PUBLIC HEALTH AGENCY OF CANADA Agence de la santé publique du Canada 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal products, inspection services and the provision of inter der section 29.2 of that Act ROYAL CANADIAN MOUNTED POLICE Gendarmerie royale du Canada 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se 5c – Capital expenditures 10c – The grants listed in any of the Estimates for the fiscal ye listed for any grant may be increased or decreased, sub the Treasury Board – Contributions SHARED SERVICES CANADA Services partagés Canada 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal of information technology services 5c – Capital expenditures SOCIAL SCIENCES AND HUMANITIES RESEARCH COUNC Conseil de recherches en sciences humaines 5c – The grants listed in any of the Estimates for the fiscal ye 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items STATISTICS CANADA Statistique Canada 1c – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se TELEFILM CANADA Téléfilm Canada 1c – Payments to the corporation to be used for the purpose Canada Act THE FEDERAL BRIDGE CORPORATION LIMITED La Société des ponts fédéraux Limitée 1c – Payments to the Corporation TREASURY BOARD SECRETARIAT Secrétariat du Conseil du Trésor 1c – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal of internal support services under section 29.2 of that A tivities – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 15c Compensation Adjustments – Authority granted to the Treasury Board to supplement for the fiscal year that may need to be partially or fully justments made to terms and conditions of service or e public administration, including the Royal Canadian Mo of members of the Canadian Forces, persons appointed Council and employees of “Crown corporations” as de of the Financial Administration Act 20c Public Service Insurance – Payments, in respect of insurance, pension or benefit p ments, or in respect of the administration of such progr cluding premiums, contributions, benefits, fees and oth respect of the federal public administration, or any part any other persons that the Treasury Board determines – Authority to expend any revenues or other amounts rec ance, pension or benefit programs or other arrangemen (a) to offset premiums, contributions, benefits, fees respect of those programs or arrangements; and (b) to provide for the return to eligible employees of der subsection 96(3) of the Employment Insurance A 30c Paylist Requirements – Authority granted to the Treasury Board to supplement for the fiscal year for 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 Vote No. Items (a) requirements related to parental and maternity a (b) entitlements on cessation of service or employm (c) adjustments that have not been provided from V justments, made to terms and conditions of service federal public administration, including the Royal Ca as well as of members of the Canadian Forces WINDSOR-DETROIT BRIDGE AUTHORITY Autorité du pont Windsor-Détroit 1c – Payments to the Authority for the discharge of its mand Letters Patent and the Canada-Michigan Crossing Agre 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) ANNEXE 1 D’après le Budget supplémentaire des dépenses (C) 2016-2017, la des postes figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes AGENCE CANADIENNE D’ÉVALUATION ENVIRONNEMEN Canadian Environmental Assessment Agency 1c – Dépenses du programme – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) la réalisation d’évaluations environnementales pa b) la formation; c) la prestation de services de soutien internes en ve cette loi. AGENCE DE LA SANTÉ PUBLIQUE DU CANADA Public Health Agency of Canada 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant de la vente de produits, de services d tion de services de soutien internes en vertu de l’article pensation des dépenses engagées au cours de l’exercic AGENCE DE PROMOTION ÉCONOMIQUE DU CANADA AT Atlantic Canada Opportunities Agency 5c – Subventions inscrites à tout budget des dépenses pour – Contributions AGENCE SPATIALE CANADIENNE Canadian Space Agency 10c – Subventions inscrites à tout budget des dépenses pour – Contributions AUTORITÉ DU PONT WINDSOR-DÉTROIT Windsor-Detroit Bridge Authority 1c – Paiements à l’Autorité pour l’exécution de son mandat lettres patentes et à l’Accord sur le passage Canada-Mi BIBLIOTHÈQUE ET ARCHIVES DU CANADA Library and Archives of Canada 1c – Dépenses de fonctionnement – Subventions inscrites à tout budget des dépenses pour – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des droits d’accès à la collection et d 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes d’éléments de celle-ci, à la compensation des dépenses cours de l’exercice BUREAU DE L’INFRASTRUCTURE DU CANADA Office of Infrastructure of Canada 1c – Dépenses de fonctionnement BUREAU DU CONSEIL PRIVÉ Privy Council Office 1c – Dépenses du programme, y compris les dépenses de fo missions d’enquête non prévues et le fonctionnement d ministre – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services de soutien internes cette loi, à la compensation des dépenses connexes en cice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an CENTRE DE LA SÉCURITÉ DES TÉLÉCOMMUNICATIONS Communications Security Establishment 1c – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant de ses activités, notamment la prest tien internes en vertu de l’article 29.2 de cette loi, à la c engagées au cours de l’exercice COMMISSION DE LA CAPITALE NATIONALE National Capital Commission 5c – Paiements à la Commission pour les dépenses en capit COMMISSION DE L’IMMIGRATION ET DU STATUT DE RÉF Immigration and Refugee Board 1c – Dépenses du programme CONSEIL DE RECHERCHES EN SCIENCES HUMAINES Social Sciences and Humanities Research Council 5c – Subventions inscrites à tout budget des dépenses pour CONSEIL DE RECHERCHES EN SCIENCES NATURELLES E Natural Sciences and Engineering Research Council 5c – Subventions inscrites à tout budget des dépenses pour 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes CONSEIL DES ARTS DU CANADA Canada Council for the Arts 1c – Paiements au Conseil devant servir aux fins générales p Loi sur le Conseil des Arts du Canada CONSEIL NATIONAL DE RECHERCHES DU CANADA National Research Council of Canada 10c – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris la fourniture de biens et de se international du Télescope de trente mètres GENDARMERIE ROYALE DU CANADA Royal Canadian Mounted Police 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci, notamment pour la prestation de services de sou l’article 29.2 de cette loi, à la compensation des dépens cours de l’exercice 5c – Dépenses en capital 10c – Subventions inscrites à tout budget des dépenses pour vu pour chaque subvention pouvant être modifié sous du Conseil du Trésor – Contributions INSTITUTS DE RECHERCHE EN SANTÉ DU CANADA Canadian Institutes of Health Research 5c – Subventions inscrites à tout budget des dépenses pour LA SOCIÉTÉ DES PONTS FÉDÉRAUX LIMITÉE The Federal Bridge Corporation Limited 1c – Paiements à la Société MINISTÈRE DE LA CITOYENNETÉ ET DE L’IMMIGRATION Department of Citizenship and Immigration 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services dans le cadre du pr nationale Canada, à la compensation des dépenses con de l’exercice pour la prestation de ces services – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Dépenses en capital 7c – Radiation, au titre du paragraphe 25(2) de la Loi sur la g bliques, de 2 804 dettes relatives à des prêts à des imm du chef du Canada et s’élevant au total à 1 991 528 $ 10c – Subventions inscrites à tout budget des dépenses pour – Contributions, notamment la fourniture de biens et de s 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes MINISTÈRE DE LA DÉFENSE NATIONALE Department of National Defence 1c – Dépenses de fonctionnement – Autorisation de contracter, sous réserve d’affectation p engagements totalisant 28 421 006 756 $ à l’égard des c tère, quelle que soit l’année au cours de laquelle sera e rent à l’un ou l’autre de ces engagements (et dont il est 10 318 618 383 $ deviendra payable dans les années à v – Autorisation de faire des dépenses ou des avances reco directives du Conseil du Trésor, à l’égard du matériel fo sociétés, des organismes extérieurs, d’autres ministère et d’autres administrations, ou des services rendus en l – Autorisation d’effectuer des paiements dans le cadre : a) de programmes de pension, d’assurance et de sé ententes pour les employés recrutés sur place à l’ex b) de l’administration de ces programmes ou entent contributions, avantages, frais et autres dépenses en recrutés sur place à l’extérieur du Canada et pour d’ nées par le Conseil du Trésor. – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci, notamment pour la prestation de services de sou l’article 29.2 de cette loi, à la compensation des dépens cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Dépenses en capital MINISTÈRE DE LA DIVERSIFICATION DE L’ÉCONOMIE DE Department of Western Economic Diversification 5c – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE L’AGRICULTURE ET DE L’AGROALIMENTA Department of Agriculture and Agri-Food 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les ententes de recherche concertée et les service b) les activités de pâturage et de reproduction du Pr communautaires; c) l’administration du programme Agri-stabilité; d) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Dépenses en capital MINISTÈRE DE LA JUSTICE Department of Justice 5c – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE LA SANTÉ Department of Health 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) la prestation de services ou la vente de produits s de la santé, aux activités de réglementation et aux s b) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 10c – Subventions inscrites à tout budget des dépenses pour – Contributions, sous forme de paiements en argent ou d services MINISTÈRE DE LA SÉCURITÉ PUBLIQUE ET DE LA PROTE Department of Public Safety and Emergency Preparedn 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant notamment de la prestation de servi vertu de l’article 29.2 de cette loi, à la compensation de gagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE L’EMPLOI ET DU DÉVELOPPEMENT SOCIA Department of Employment and Social Development 1c – Dépenses de fonctionnement – Autorisation dʼeffectuer des dépenses recouvrables liée de pensions du Canada et de la Loi sur l’assurance-emp 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens connexes engagées au cours de l’exercice : a) les services du Secteur des programmes d’accès b) les services visant à aider les provinces à adminis vinciaux financés aux termes des ententes sur le dé du travail; c) les services offerts au nom d’autres ministères féd d) les services de soutien internes fournis en vertu d e) tout montant facturé à une société d’État en vertu sur l’indemnisation des agents de l’État en lien avec recours par subrogation pour les sociétés d’État; f) la portion des coûts de litige découlant des règlem de réclamation auprès de tiers pour les ministères e vertu de la Loi sur l’indemnisation des agents de l’É – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Subventions inscrites à tout budget des dépenses pour – Contributions 7c – Radiation, au titre du paragraphe 25(2) de la Loi sur la g bliques, de 32 554 dettes relatives à des prêts d’études fédérale sur l’aide financière aux étudiants, dues à Sa M et s’élevant au total à 178 370 098 $ MINISTÈRE DE L’ENVIRONNEMENT Department of the Environment 10c – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris celles aux pays en développem ral pour l’application du Protocole de Montréal, sous fo gent ou de fourniture de biens, d’équipement ou de ser MINISTÈRE DE L’INDUSTRIE Department of Industry 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) la prestation de services de soutien internes en ve cette loi et de services de soutien internes à l’Office lectuelle du Canada; b) les activités liées aux recherches sur les commun recherches sur les communications; c) les services et la procédure d’insolvabilité, au titre l’insolvabilité, au Bureau du surintendant des faillite d) les activités de Corporations Canada au titre de la ciétés par actions, de la Loi sur les chambres de com enne sur les coopératives, de la Loi canadienne sur lucratif et de la Loi sur les corporations canadiennes 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes e) les services et la procédure réglementaire au Bure les fusions et toute chose s’y rapportant, y compris fusion, les certificats de décision préalable et les avi Loi sur la concurrence. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an MINISTÈRE DES AFFAIRES ÉTRANGÈRES, DU COMMERC Department of Foreign Affairs, Trade and Development 1c – Dépenses de fonctionnement, y compris celles liées à la tants du Canada à l’étranger, à leur personnel et aux Ca gouvernement canadien au personnel d’organismes in – Autorisation de faire des avances recouvrables à des or jusqu’à concurrence de la valeur des actions détenues – Dépenses relatives aux locaux de l’Organisation de l’av – Autorisation dʼeffectuer des dépenses recouvrables pou sidents canadiens domiciliés à l’extérieur du Canada qu l’étranger, y compris leurs personnes à charge, et pour – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens connexes engagées au cours de l’exercice : a) les foires commerciales et éducatives; b) les publications ministérielles; c) les services suivants : (i) la formation offerte par l’Institut canadien du s (ii) les missions commerciales et autres services commerce international, (iii) les services de développement des investisse (iv) les services de télécommunication internatio (v) les autres services fournis à l’étranger à d’aut nismes, sociétés d’État et autres organisations no (vi) les services consulaires spécialisés. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 10c – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris les paiements à d’autres fins p biens et de services pour : a) la promotion du commerce et de l’investissement b) l’aide humanitaire internationale et l’aide fournie ternationale, le développement international et la pa 17c – Renonciation, au titre de l’article 24.1 de la Loi sur la ge bliques, à certaines créances relatives à des prêts conse Cuba, dues à Sa Majesté du chef du Canada et s’élevan 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes MINISTÈRE DES AFFAIRES INDIENNES ET DU NORD CAN Department of Indian Affairs and Northern Developmen 1c – Dépenses de fonctionnement – Dépenses relatives aux ouvrages, bâtiments et matériel – Autorisation d’effectuer des dépenses — recouvrables o vaux effectués sur des propriétés n’appartenant pas au aux services fournis à l’égard de celles-ci – Autorisation d’affecter des fonds dans le cadre d’activit économique des Indiens et des Inuits, relatives au déve des Indiens et des Inuits et à l’approvisionnement en m – Autorisation de vendre de l’électricité, conformément a par le gouverneur en conseil, aux consommateurs qui s dans des centres éloignés lorsque ces derniers n’ont pa natives locales d’approvisionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services de soutien internes cette loi, à la compensation des dépenses connexes en cice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 10c – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES ANCIENS COMBATTANTS Department of Veterans Affairs 1c – Dépenses de fonctionnement – Dépenses afférentes à l’entretien de propriétés immobi latives à des travaux de génie et de recherche techniqu leur tangible à la propriété ainsi que le paiement des ta publics – Sous réserve de l’approbation du gouverneur en conse a) aux travaux de réparation nécessaires sur des pro tu de contrats particuliers à prix ferme et vendues co les terres destinées aux anciens combattants (S.R.C corriger des défectuosités dont ni l’ancien combatta peuvent être tenus financièrement responsables; b) à tout autre travail qui s’impose sur d’autres prop l’intérêt que le directeur y possède. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Subventions inscrites à tout budget des dépenses pour crit à chacune des subventions pouvant être modifié so tion du Conseil du Trésor – Contributions 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes MINISTÈRE DES FINANCES Department of Finance 1c – Dépenses du programme – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant de la prestation de services de soutie ticle 29.2 de cette loi, à la compensation des dépenses cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an MINISTÈRE DES PÊCHES ET DES OCÉANS Department of Fisheries and Oceans 1c – Dépenses de fonctionnement – Participation du Canada aux dépenses des commission pêches – Autorisation de fournir gratuitement des locaux aux com des pêches – Autorisation de faire des avances recouvrables équivale quote-part de ces commissions dans les programmes à – Autorisation de faire des avances recouvrables pour de d’arrimage et d’autres services de la marine marchande à des organismes indépendants et à d’autres gouverne cice de sa compétence en matière de navigation, y com tion et à la navigation maritime – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les activités de la Garde côtière canadienne; b) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Dépenses en capital – Autorisation de faire des paiements aux provinces, aux torités locales ou privées à titre de contributions à des trepris par ces administrations ou autorités – Autorisation d’acheter des bateaux de pêche commerci MINISTÈRE DES RESSOURCES NATURELLES Department of Natural Resources 1c – Dépenses de fonctionnement 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) la vente de produits d’information et de produits b) la délivrance de licences, de permis et de certifica explosifs et du Règlement de 2013 sur les explosifs; c) la formation et les attestations de formation liées sés à l’alinéa b); d) la perception, dans le cadre des activités du minis vices de recherche, de consultation, d’évaluation, d’ tion; e) la prestation de services de soutien internes en ve Loi sur la gestion des finances publiques. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an MINISTÈRE DES TRAVAUX PUBLICS ET DES SERVICES G Department of Public Works and Government Services 1c – Dépenses de fonctionnement pour la prestation de serv et de services communs et centraux – Autorisation dʼeffectuer des dépenses recouvrables liée de pensions du Canada, de la Loi sur l’assurance-emplo tration des biens saisis – Autorisation de dépenser les recettes perçues au cours vices de gestion des locaux et des services communs e – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant notamment de la prestation de servi vertu de l’article 29.2 de cette loi, à la compensation de cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Dépenses en capital, y compris les dépenses relatives à des biens fédéraux – Autorisation d’effectuer des remboursements à des loc raux relativement à des améliorations à ceux-ci autoris vaux publics et des Services gouvernementaux MINISTÈRE DU PATRIMOINE CANADIEN Department of Canadian Heritage 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes a) les activités de l’Institut canadien de conservation formation sur le patrimoine et du Bureau de certifica suels canadiens; b) les activités afférentes au programme Expérience c) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 5c – Subventions inscrites à tout budget des dépenses pour – Contributions SECRÉTARIAT DU CONSEIL DU TRÉSOR Treasury Board Secretariat 1c – Dépenses de programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant de la prestation de services de soutie ticle 29.2 de cette loi et de ses autres activités, à la com engagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr pas un département d’État, d’un traitement n’excédant nistres d’État qui dirigent un département d’État, au titr ments, rajusté en application de l’article 67 de la Loi su et au prorata, pour toute période inférieure à un an 15c Rajustements à la rémunération – Autorisation donnée au Conseil du Trésor d’augmenter l’exercice qui peut nécessiter un financement partiel ou tements effectués aux modalités de service ou d’emplo blique fédérale, notamment la Gendarmerie royale du C Forces canadiennes, des personnes nommées par le go employés des « sociétés d’État », au sens du paragraph tion des finances publiques 20c Assurances de la fonction publique – À l’égard de tout ou partie de la fonction publique et de déterminées par le Conseil du Trésor, paiements effect grammes d’assurance, de pension, d’avantages sociau tentes — ou de l’administration de ces programmes ou au titre des primes, contributions, avantages sociaux, f – Autorisation d’affecter tous revenus ou toutes autres so cadre des programmes d’assurance, de pension, d’avan ententes : a) pour compenser notamment les primes, contribu frais et autres dépenses liés à ces programmes ou a b) pour rembourser les employés éligibles, en appli de la Loi sur l’assurance-emploi, pour l’excédent de 30c Besoins en matière de rémunération – Autorisation donnée au Conseil du Trésor d’augmenter l’exercice pour : a) des prestations parentales et de maternité; b) des versements liés à la cessation de service ou d 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes c) des rajustements apportés aux modalités de serv nistration publique fédérale, notamment la Gendarm des membres des Forces canadiennes, qui n’ont pas 15, Rajustements à la rémunération. SERVICE CANADIEN D’APPUI AUX TRIBUNAUX ADMINIS Administrative Tribunals Support Service of Canada 1c – Dépenses du programme – Autorisation dʼeffectuer des dépenses recouvrables liée de pensions du Canada et de la Loi sur l’assurance-emp SERVICE CANADIEN DU RENSEIGNEMENT DE SÉCURITÉ Canadian Security Intelligence Service 1c – Dépenses du programme SERVICE DE PROTECTION PARLEMENTAIRE Parliamentary Protective Service 1c – Dépenses du programme SERVICES PARTAGÉS CANADA Shared Services Canada 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services de technologie de l’ sation des dépenses engagées au cours de l’exercice 5c – Dépenses en capital SOCIÉTÉ CANADIENNE D’HYPOTHÈQUES ET DE LOGEME Canada Mortgage and Housing Corporation 1c – Paiements à la Société visant à la rembourser pour les sur les prêts consentis, les subventions et contributions contractées, les pertes subies et les frais et débours eng a) au titre de la Loi nationale sur l’habitation; b) dans le cadre des attributions qui lui sont conféré rale et qu’elle exerce en conformité avec la Loi sur la pothèques et de logement. STATISTIQUE CANADA Statistics Canada 1c – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant notamment de la prestation de servi vertu de l’article 29.2 de cette loi, à la compensation de gagées au cours de l’exercice 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 1 (French) No du crédit Postes TÉLÉFILM CANADA Telefilm Canada – Paiements à la société devant servir aux fins prévues p Canada 2015-2016-2017 1c Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 2 SCHEDULE 2 Based on Supplementary Estimates (C), 2016–17, the amount gr items set out in this Schedule. Sums granted to Her Majesty by this Act for the fiscal year endin following fiscal year ending March 31, 2018 and the purposes for w Vote No. Items CANADA BORDER SERVICES AGENCY Agence des services frontaliers du Canada 1c – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) fees, related to border operations, for the provisi of a facility or for a product, right or privilege; and (b) payments received under contracts entered into 5c – Capital expenditures CANADA REVENUE AGENCY Agence du revenu du Canada 1c – Operating expenditures – Contributions – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A 5c – Capital expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A PARKS CANADA AGENCY Agence Parcs Canada 1c – Program expenditures – Capital expenditures – The grants listed in any of the Estimates for the fiscal y – Contributions, including (a) expenditures on other than federal property; and (b) payments to provinces and municipalities as con cost of undertakings carried out by those bodies 2015-2016-2017 Chapter 1: Appropriation Act No. 5, 2016–17 SCHEDULE 2 (French) ANNEXE 2 D’après le Budget supplémentaire des dépenses (C) 2016-2017, la des postes figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice en cours et à l’exercice suivant se terminant le 31 mars 2018, et fin No du crédit Postes AGENCE DES SERVICES FRONTALIERS DU CANADA Canada Border Services Agency 1c – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les droits — liés aux activités à la frontière — perç service, l’utilisation d’une installation, l’achat d’un p droit ou d’un privilège; b) les paiements reçus au titre de contrats conclus p 5c – Dépenses en capital AGENCE DU REVENU DU CANADA Canada Revenue Agency 1c – Dépenses de fonctionnement – Contributions – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc 5c – Dépenses en capital – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc AGENCE PARCS CANADA Parks Canada Agency 1c – Dépenses du programme – Dépenses en capital – Subventions inscrites à tout budget des dépenses pour – Contributions, notamment : a) les dépenses afférentes à des propriétés autres q ment fédéral; b) les paiements aux provinces et aux municipalités l’égard des engagements assumés par ces dernière Published under authority of the Speaker of the House of Commons 2015-2016-2017

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 3 An Act to prohibit and prevent genetic discrimination ASSENTED TO MAY 4, 2017 BILL S-201 SUMMARY This enactment prohibits any person from requiring an individual to undergo a genetic test or disclose the results of a genetic test as a condition of providing goods or services to, entering into or continuing a contract or agreement with, or offering specific conditions in a contract or agreement with, the individual. Exceptions are provided for health care practitioners and researchers. The enactment provides individuals with other protections related to genetic testing and test results. The enactment amends the Canada Labour Code to protect employees from being required to undergo or to disclose the results of a genetic test, and provides employees with other protections related to genetic testing and test results. It also amends the Canadian Human Rights Act to prohibit discrimination on the ground of genetic characteristics. ii 64-65-66 ELIZABETH II CHAPTER 3 An Act to prohibit and prevent genetic discrimination [Assented to 4th May, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Genetic Non-Discrimination Act. Interpretation Definitions 2 The following definitions apply in this Act. disclose includes to authorize disclosure. (communiquer) genetic test means a test that analyzes DNA, RNA or chromosomes for purposes such as the prediction of disease or vertical transmission risks, or monitoring, diagnosis or prognosis. (test génétique) health care practitioner means a person lawfully entitled under the law of a province to provide health services in the place in which the services are provided by that person. (professionnel de la santé) Prohibitions Genetic test 3 (1) It is prohibited for any person to require an individual to undergo a genetic test as a condition of (a) providing goods or services to that individual; 2015-2016-2017 Chapter 3: An Act to prohibit and prevent genetic discrimination Prohibitions Sections 3-7 (b) entering into or continuing a contract or agreement with that individual; or (c) offering or continuing specific terms or conditions in a contract or agreement with that individual. Refusal to undergo genetic test (2) It is prohibited for any person to refuse to engage in an activity described in any of paragraphs (1)(a) to (c) in respect of an individual on the grounds that the individual has refused to undergo a genetic test. Disclosure of results 4 (1) It is prohibited for any person to require an individual to disclose the results of a genetic test as a condition of engaging in an activity described in any of paragraphs 3(1)(a) to (c). Refusal to disclose results (2) It is prohibited for any person to refuse to engage in an activity described in any of paragraphs 3(1)(a) to (c) in respect of an individual on the grounds that the individual has refused to disclose the results of a genetic test. Written consent 5 It is prohibited for any person who is engaged in an activity described in any of paragraphs 3(1)(a) to (c) in respect of an individual to collect, use or disclose the results of a genetic test of the individual without the individual’s written consent. Exceptions: health care practitioners and researchers 6 Sections 3 to 5 do not apply to (a) a physician, a pharmacist or any other health care practitioner in respect of an individual to whom they are providing health services; or (b) a person who is conducting medical, pharmaceutical or scientific research in respect of an individual who is a participant in the research. Offences and Punishment Contravention of sections 3 to 5 7 Every person who contravenes any of sections 3 to 5 is guilty of an offence and is liable (a) on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both; or 2015-2016-2017 Chapter 3: An Act to prohibit and prevent genetic discrimination Offences and Punishment Sections 7-8 (b) on summary conviction, to a fine not exceeding $300,000 or to imprisonment for a term not exceeding twelve months, or to both. R.S., c. L-2 Canada Labour Code 8 The Canada Labour Code is amended by adding the following after section 247.97: DIVISION XV.3 Genetic Testing Definitions 247.98 (1) The following definitions apply in this Division. disclose includes to authorize disclosure. (communiquer) genetic test, in relation to an employee, means a test that analyzes the employee’s DNA, RNA or chromosomes for purposes such as the prediction of disease or vertical transmission risks, or monitoring, diagnosis or prognosis. (test génétique) Genetic test (2) Every employee is entitled not to undergo or be required to undergo a genetic test. Disclosure of results (3) Every employee is entitled not to disclose or be required to disclose the results of a genetic test. Disciplinary action (4) No employer shall dismiss, suspend, lay off or demote an employee, impose a financial or other penalty on an employee, or refuse to pay an employee remuneration in respect of any period that the employee would, but for the exercise of the employee’s rights under this Division, have worked, or take any disciplinary action against or threaten to take any such action against an employee (a) because the employee refused a request by the employer to undergo a genetic test; (b) because the employee refused to disclose the results of a genetic test; or (c) on the basis of the results of a genetic test undergone by the employee. 2015-2016-2017 Chapter 3: An Act to prohibit and prevent genetic discrimination Canada Labour Code Section 8 Disclosure by third party (5) No person shall disclose to an employer that an employee has undergone a genetic test, or disclose to an employer the results of a genetic test, without the written consent of the employee. Collection or use (6) No employer shall collect or use the results of a genetic test without the written consent of the employee who has undergone the test. Complaint to inspector 247.99 (1) An employee who alleges that an employer has taken action against the employee in contravention of subsection 247.98(4) may make a complaint in writing to an inspector. Time for making complaint (2) Subject to subsection (3), the complaint shall be made to the inspector not later than 90 days after the date on which the complainant knew, or in the inspector’s opinion ought to have known, of the action or circumstances giving rise to the complaint. Extension of time (3) The Minister may extend the period of time referred to in subsection (2) if the Minister is satisfied that a complaint was made in that period to a government official who had no authority to deal with the complaint but that the employee making the complaint believed the official had that authority. Inspector to assist parties (4) On receipt of a complaint made under subsection (1), an inspector shall endeavour to assist the parties to the complaint to settle the complaint or cause another inspector to do so. Where complaint not settled within reasonable time (5) Where a complaint is not settled under subsection (4) within such period as the inspector endeavouring to assist the parties pursuant to that subsection considers to be reasonable in the circumstances, the inspector shall, on the written request of the employee who made the complaint that the complaint be referred to an adjudicator under subsection (6), (a) report to the Minister that the endeavour to assist the parties to settle the complaint has not succeeded; and (b) deliver to the Minister the complaint made under subsection (1) and any other statements or documents the inspector has that relate to the complaint. 2015-2016-2017 Chapter 3: An Act to prohibit and prevent genetic discrimination Canada Labour Code Section 8 Reference to adjudicator (6) The Minister may, on receipt of a report pursuant to subsection (5), appoint any person that the Minister considers appropriate as an adjudicator to hear and adjudicate on the complaint in respect of which the report was made, and refer the complaint to the adjudicator. Decision of adjudicator (7) An adjudicator to whom a complaint has been referred under subsection (6) shall (a) consider whether the employer has contravened subsection 247.98(4) and render a decision on it; and (b) send a copy of the decision with the reasons for the decision to each party to the complaint and to the Minister. Orders (8) If an adjudicator decides pursuant to subsection (7) that an employer has contravened subsection 247.98(4), the adjudicator may, by order, require the employer to cease contravening that subsection and may, if applicable, by order, require the employer to (a) permit the employee to return to the duties of their employment; (b) reinstate the former employee; (c) pay to the employee or former employee compensation not exceeding the sum that, in the adjudicator’s opinion, is equivalent to the remuneration that would, but for the contravention, have been paid by the employer to the employee or former employee; (d) rescind any disciplinary action taken in respect of the contravention and pay compensation to the employee, not exceeding the sum that, in the adjudicator’s opinion, is equivalent to any financial or other penalty imposed on the employee by the employer; and (e) do any other like thing that it is equitable to require the employer to do in order to remedy or counteract any consequences of the contravention. Application of provisions (9) Subsection 242(2) applies to a complaint that has been referred to an adjudicator under subsection (6), sections 243 and 244 apply to an order of an adjudicator under subsection (8), and subsection 246(1) applies to an employee who makes a complaint under subsection (1), with any necessary modifications. 2015-2016-2017 Chapter 3: An Act to prohibit and prevent genetic discrimination Canada Labour Code Sections 9-11 R.S., c. H-6 Canadian Human Rights Act 9 Section 2 of the Canadian Human Rights Act is replaced by the following: Purpose 2 The purpose of this Act is to extend the laws in Canada to give effect, within the purview of matters coming within the legislative authority of Parliament, to the principle that all individuals should have an opportunity equal with other individuals to make for themselves the lives that they are able and wish to have and to have their needs accommodated, consistent with their duties and obligations as members of society, without being hindered in or prevented from doing so by discriminatory practices based on race, national or ethnic origin, colour, religion, age, sex, sexual orientation, marital status, family status, genetic characteristics, disability or conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered. 10 (1) Subsection 3(1) of the Act is replaced by the following: Prohibited grounds of discrimination 3 (1) For all purposes of this Act, the prohibited grounds of discrimination are race, national or ethnic origin, colour, religion, age, sex, sexual orientation, marital status, family status, genetic characteristics, disability and conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered. (2) Section 3 of the Act is amended by adding the following after subsection (2): Idem (3) Where the ground of discrimination is refusal of a request to undergo a genetic test or to disclose, or authorize the disclosure of, the results of a genetic test, the discrimination shall be deemed to be on the ground of genetic characteristics. Coordinating Amendments Bill C-16 11 (1) Subsections (2) and (3) apply if Bill C-16, introduced in the 1st session of the 42nd Parlia2015-2016-2017 Chapter 3: An Act to prohibit and prevent genetic discrimination Coordinating Amendments Section 11 ment and entitled An Act to amend the Canadian Human Rights Act and the Criminal Code (in this section referred to as the “other Act”), receives royal assent. (2) On the first day on which both section 1 of the other Act and section 9 of this Act are in force, section 2 of the Canadian Human Rights Act is replaced by the following: Purpose 2 The purpose of this Act is to extend the laws in Canada to give effect, within the purview of matters coming within the legislative authority of Parliament, to the principle that all individuals should have an opportunity equal with other individuals to make for themselves the lives that they are able and wish to have and to have their needs accommodated, consistent with their duties and obligations as members of society, without being hindered in or prevented from doing so by discriminatory practices based on race, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability or conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered. (3) On the first day on which both section 2 of the other Act and subsection 10(1) of this Act are in force, subsection 3(1) of the Canadian Human Rights Act is replaced by the following: Prohibited grounds of discrimination 3 (1) For all purposes of this Act, the prohibited grounds of discrimination are race, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability and conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered. Published under authority of the Senate of Canada 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 2 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2018 ASSENTED TO MARCH 30, 2017 BILL C-41 SUMMARY This enactment grants the sum of $30,140,965,114.44 towards defraying charges and expenses of the federal public administration for the fiscal year ending March 31, 2018 that are not otherwise provided for. ii 64-65-66 ELIZABETH II CHAPTER 2 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2018 [Assented to 30th March, 2017] MOST GRACIOUS SOVEREIGN, Preamble Whereas it appears by message from His Excellency the Right Honourable David Johnston, Governor General and Commander-in-Chief of Canada, and the Estimates accompanying that message, that the sums mentioned below are required to defray certain expenses of the federal public administration, not otherwise provided for, for the fiscal year ending March 31, 2018, and for other purposes connected with the federal public administration; May it therefore please Your Majesty, that it may be enacted, and be it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, that: Short title 1 This Act may be cited as the Appropriation Act No. 1, 2017–18. $30,140,965,114.44 granted for 2017–18 2 There may be paid out of the Consolidated Revenue Fund a sum not exceeding in the aggregate $30,140,965,114.44 towards defraying the various charges and expenses of the federal public administration for the fiscal year ending March 31, 2018, not otherwise provided for, which is the total of the following amounts: (a) $17,753,541,673.25, which is three twelfths of the total of the amounts of the items set out in the Proposed Schedules 1 and 2 set out in the Annex to the Main Estimates for the fiscal year ending March 31, 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 Sections 2-4 2018, except for those items set out in Schedules 1.1 to 1.5 to this Act; (b) $1,237,500,000.00, which is eleven twelfths of the total of the amounts of the items in those Estimates set out in Schedule 1.1 to this Act; (c) $1,376,303,147.92, which is seven twelfths of the total of the amounts of the items in those Estimates set out in Schedule 1.2 to this Act; (d) $1,547,065,649.50, which is six twelfths of the total of the amounts of the items in those Estimates set out in Schedule 1.3 to this Act; (e) $552,235,743.76, which is five twelfths of the total of the amounts of the items in those Estimates set out in Schedule 1.4 to this Act; and (f) $7,674,318,900.01, which is four twelfths of the total of the amounts of the items in those Estimates set out in Schedule 1.5 to this Act. Purpose of each item 3 The amount authorized by this Act to be paid in respect of an item may be paid only for the purposes, and subject to any terms and conditions, specified in the item. Commitments 4 (1) Where an item in the Estimates referred to in section 2 confers authority to enter into commitments up to an amount stated in those Estimates or increases the amount up to which commitments may be entered into under any other Act, or where a commitment is to be entered into under subsection (2), the commitment may be entered into in accordance with the terms of that item or in accordance with that subsection if the amount of the commitment proposed to be entered into, together with all previous commitments entered into in accordance with this section or under that other Act, does not exceed the total amount of the commitment authority stated in that item or calculated in accordance with that subsection. Commitment limits — revenue-spending authority (2) Where an item in the Estimates referred to in section 2 or a provision of any Act confers authority to spend revenues, commitments may be entered into in accordance with the terms of that item or provision up to an amount equal to the aggregate of (a) the amount, if any, appropriated in respect of that item or provision, and 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 Sections 4-6 (b) whichever is greater: the amount of revenues actually received or the amount of the estimated revenues set out in those Estimates for that item or in respect of that provision. Adjustments in accounts of Canada — section 2 amounts 5 Subject to section 6, an appropriation that is granted by this Act or any other Act and referred to in section 2 may be charged after the end of the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that fiscal year are tabled in Parliament, for the purpose of making adjustments in the accounts of Canada for that fiscal year that do not require payments out of the Consolidated Revenue Fund. Adjustments in accounts of Canada — Schedule 2 6 (1) An appropriation that is granted by this Act or any other Act and set out in Schedule 2 may be charged after the end of the fiscal year following the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that second fiscal year are tabled in Parliament, for the purpose of making adjustments in the accounts of Canada for that second fiscal year that do not require payments out of the Consolidated Revenue Fund. Order of payment (2) Despite any other provision of this Act, amounts appropriated by this Act and set out in Schedule 2 may be paid and applied at any time on or before March 31, 2019, so long as every payment is charged first against the relevant amount appropriated under any Act that is earliest in time until that amount is exhausted, next against the relevant amount appropriated under any other Act, including this Act, that is next in time until that amount is exhausted and so on. The balance of amounts so appropriated by this Act that have not been charged, subject to the adjustments referred to in section 37 of the Financial Administration Act, lapse at the end of the fiscal year following the fiscal year ending March 31, 2018. 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.1 SCHEDULE 1.1 Based on the Main Estimates 2017–18, the amount granted is amounts of the items in the Main Estimates that are set out in this Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items TREASURY BOARD SECRETARIAT Secrétariat du Conseil du Trésor Government Contingencies – Authority granted to the Treasury Board to supplement a priation for the fiscal year – Authority granted to the Treasury Board to provide for m gent or unforeseen expenditures not otherwise provided grants and contributions that are not listed in any of the fiscal year, and any increase to the amount of a grant th Estimates — as long as those expenditures are within th of the departments or other organizations for which the made – Authority to reuse any sums allotted and repaid to this a other appropriations 30 Paylist Requirements – Authority granted to the Treasury Board to supplement a priation for the fiscal year for (a) requirements related to parental and maternity al (b) entitlements on cessation of service or employme (c) adjustments that have not been provided from Vo tion Adjustments, made to terms and conditions of s ment of the federal public administration, including t an Mounted Police, as well as of members of the Can 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.1 (French) ANNEXE 1.1 D’après le Budget principal des dépenses 2017-2018, la somme acc montants des postes de ce budget, figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes SECRÉTARIAT DU CONSEIL DU TRÉSOR Treasury Board Secretariat Dépenses éventuelles du gouvernement – Autorisation donnée au Conseil du Trésor d’augmenter t pour l’exercice – Autorisation donnée au Conseil du Trésor de payer pour penses urgentes ou imprévues auxquelles il n’est pas po — notamment toute subvention ou contribution qui ne fi budget des dépenses pour l’exercice et l’augmentation d toute subvention qui y figure —, dans la mesure où ces conformes au mandat du ministère ou de l’organisme d ainsi augmenté – Autorisation de réemployer les sommes affectées à des d’autres crédits et versées au présent crédit 30 Besoins en matière de rémunération – Autorisation donnée au Conseil du Trésor d’augmenter t pour l’exercice pour : a) des prestations parentales et de maternité; b) des versements liés à la cessation de service ou d’ c) des rajustements apportés aux modalités de servic l’administration publique fédérale, notamment la Ge du Canada, et des membres des Forces canadiennes pourvus par le crédit 15, Rajustements à la rémunéra 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.2 SCHEDULE 1.2 Based on the Main Estimates 2017–18, the amount granted is amounts of the items in the Main Estimates that are set out in this Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items CANADIAN CENTRE FOR OCCUPATIONAL HEALTH AND S Centre canadien d’hygiène et de sécurité au travail 1 – Program expenditures CANADIAN NUCLEAR SAFETY COMMISSION Commission canadienne de sûreté nucléaire – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF HEALTH Ministère de la Santé 10 – Contributions, in the form of monetary payments or the goods or services PUBLIC HEALTH AGENCY OF CANADA Agence de la santé publique du Canada – The grants listed in any of the Estimates for the fiscal ye – Contributions 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.2 (French) ANNEXE 1.2 D’après le Budget principal des dépenses 2017-2018, la somme ac des montants des postes de ce budget, figurant à la présente anne Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes AGENCE DE LA SANTÉ PUBLIQUE DU CANADA Public Health Agency of Canada – Subventions inscrites à tout budget des dépenses pour l – Contributions CENTRE CANADIEN D’HYGIÈNE ET DE SÉCURITÉ AU TRAV Canadian Centre for Occupational Health and Safety 1 – Dépenses du programme COMMISSION CANADIENNE DE SÛRETÉ NUCLÉAIRE Canadian Nuclear Safety Commission – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour l – Contributions MINISTÈRE DE LA SANTÉ Department of Health 10 – Contributions, sous forme de paiements en argent ou de biens ou de services 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.3 SCHEDULE 1.3 Based on the Main Estimates 2017–18, the amount granted is $1,5 the items in the Main Estimates that are set out in this schedule. Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items ADMINISTRATIVE TRIBUNALS SUPPORT SERVICE OF CAN Service canadien d’appui aux tribunaux administratifs 1 – Program expenditures – Authority to make recoverable expenditures in relation t of the Canada Pension Plan and the Employment Insura CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY Agence canadienne d’évaluation environnementale 1 – Program expenditures – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from (a) the conduct of environmental assessments by a r (b) the provision of training; and (c) the provision of internal support services under se Act DEPARTMENT OF EMPLOYMENT AND SOCIAL DEVELOPM Ministère de l’Emploi et du Développement social 5 – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF JUSTICE Ministère de la Justice – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from (a) the provision of mandatory legal services to feder and agencies; (b) the provision to Crown corporations, non-federal international organizations of optional legal services with the Department’s mandate; and (c) the provision of internal support services under se Act – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of OFFICE OF INFRASTRUCTURE OF CANADA Bureau de l’infrastructure du Canada 5 – Capital expenditures ROYAL CANADIAN MOUNTED POLICE EXTERNAL REVIEW Comité externe d’examen de la Gendarmerie royale du 1 – Program expenditures 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.3 Vote No. Items STATISTICS CANADA Statistique Canada – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off ditures that it incurs in that fiscal year — revenues that i fiscal year including from the provision of internal supp section 29.2 of that Act 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.3 (French) ANNEXE 1.3 D’après le Budget principal des dépenses 2017-2018, la somme a des montants des postes de ce budget, figurant à la présente anne Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes AGENCE CANADIENNE D’ÉVALUATION ENVIRONNEMENT Canadian Environmental Assessment Agency 1 – Dépenses du programme – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les au cours de celui-ci et provenant des éléments ci-après, des dépenses engagées au cours de l’exercice : a) la réalisation d’évaluations environnementales par b) la formation; c) la prestation de services de soutien internes en ve de cette loi. BUREAU DE L’INFRASTRUCTURE DU CANADA Office of Infrastructure of Canada 5 – Dépenses en capital COMITÉ EXTERNE D’EXAMEN DE LA GENDARMERIE ROYA Royal Canadian Mounted Police External Review Comm 1 – Dépenses du programme MINISTÈRE DE LA JUSTICE Department of Justice – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les au cours de celui-ci et provenant des éléments ci-après, des dépenses engagées au cours de l’exercice : a) les services juridiques fournis de manière obligato et organismes fédéraux; b) les services juridiques — conformes au mandat du nis de manière facultative à des sociétés d’État et à d non fédérales ou internationales; c) les services de soutien internes fournis en vertu de cette loi. – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute rieure à un an MINISTÈRE DE L’EMPLOI ET DU DÉVELOPPEMENT SOCIAL Department of Employment and Social Development 5 – Subventions inscrites à tout budget des dépenses pour l – Contributions SERVICE CANADIEN D’APPUI AUX TRIBUNAUX ADMINIST Administrative Tribunals Support Service of Canada 1 – Dépenses du programme 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.3 (French) No du crédit Postes – Autorisation d’effectuer des dépenses recouvrables liées Régime de pensions du Canada et de la Loi sur l’assuran STATISTIQUE CANADA Statistics Canada 1 – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour l – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les au cours de celui-ci et provenant notamment de la prest de soutien internes en vertu de l’article 29.2 de cette loi, tion des dépenses connexes engagées au cours de l’exe 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.4 SCHEDULE 1.4 Based on the Main Estimates 2017–18, the amount granted is $55 the items in the Main Estimates that are set out in this schedule. Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items CANADA COUNCIL FOR THE ARTS Conseil des Arts du Canada – Payments to the Council to be used for the furtherance o out in section 8 of the Canada Council for the Arts Act CANADIAN FOOD INSPECTION AGENCY Agence canadienne d’inspection des aliments – Capital expenditures CANADIAN SPACE AGENCY Agence spatiale canadienne – Capital expenditures DEPARTMENT OF INDUSTRY Ministère de l’Industrie – Capital expenditures LIBRARY OF PARLIAMENT Bibliothèque du Parlement – Program expenditures – Authority to expend revenues that it receives in the fisca its activities MARINE ATLANTIC INC. Marine Atlantique S.C.C. 1 – Payments to the corporation in respect of the costs of its – Payments to the corporation for capital expenditures – Payments to the corporation for transportation services, ter transportation services between Nova Scotia and Ne Labrador and related vessels, terminals and infrastructu PUBLIC HEALTH AGENCY OF CANADA Agence de la santé publique du Canada 1 – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from the sale of products, inspection services and t ternal support services under section 29.2 of that Act TREASURY BOARD SECRETARIAT Secrétariat du Conseil du Trésor 1 – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from the provision of internal support services und that Act and from its other activities – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.4 Vote No. Items VIA RAIL CANADA INC. VIA Rail Canada Inc. – Payments to the corporation in respect of the costs of its – Payments to the corporation for capital expenditures – Payments to the corporation for the provision of rail pas Canada in accordance with contracts entered into pursu graph (c)(i) of Transport Vote 52d, Appropriation Act No 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.4 (French) ANNEXE 1.4 D’après le Budget principal des dépenses 2017-2018, la somme a des montants des postes de ce budget, figurant à la présente anne Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes AGENCE CANADIENNE D’INSPECTION DES ALIMENTS Canadian Food Inspection Agency – Dépenses en capital AGENCE DE LA SANTÉ PUBLIQUE DU CANADA Public Health Agency of Canada – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les au cours de celui-ci et provenant de la vente de produits pection et de la prestation de services de soutien interne ticle 29.2 de cette loi, à la compensation des dépenses e de l’exercice AGENCE SPATIALE CANADIENNE Canadian Space Agency 5 – Dépenses en capital BIBLIOTHÈQUE DU PARLEMENT Library of Parliament – Dépenses du programme – Autorisation de dépenser les recettes perçues au cours d provenant de ses activités CONSEIL DES ARTS DU CANADA Canada Council for the Arts 1 – Paiements au Conseil devant servir aux fins générales p de la Loi sur le Conseil des Arts du Canada MARINE ATLANTIQUE S.C.C. Marine Atlantic Inc. – Paiements à la société pour les dépenses liées à sa gesti – Paiements à la société pour les dépenses en capital – Paiements à la société pour les services de transport, y c vices de transport maritime entre la Nouvelle-Écosse et Labrador, et les navires, terminaux et infrastructures con MINISTÈRE DE L’INDUSTRIE Department of Industry 5 – Dépenses en capital SECRÉTARIAT DU CONSEIL DU TRÉSOR Treasury Board Secretariat – Dépenses de programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les au cours de celui-ci et provenant de la prestation de serv internes en vertu de l’article 29.2 de cette loi et de ses au compensation des dépenses engagées au cours de l’exe – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.4 (French) No du crédit Postes titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute rieure à un an VIA RAIL CANADA INC. VIA Rail Canada Inc. 1 – Paiements à la société pour les dépenses liées à sa gesti – Paiements à la société pour les dépenses en capital – Paiements à la société en vue de la prestation d’un servi Canada, conformément aux contrats conclus en vertu du du crédit 52d (Transports) de la Loi no 1 de 1977 portant dits 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 SCHEDULE 1.5 Based on the Main Estimates 2017–18, the amount granted is $7, of the items in the Main Estimates that are set out in this schedule Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items CANADIAN AIR TRANSPORT SECURITY AUTHORITY Administration canadienne de la sûreté du transport aér 1 – Payments to the Authority for operating and capital expe CANADIAN FOOD INSPECTION AGENCY Agence canadienne d’inspection des aliments – Operating expenditures – Contributions CANADIAN HIGH ARCTIC RESEARCH STATION Station canadienne de recherche dans l’Extrême-Arctiqu 1 – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions CANADIAN SPACE AGENCY Agence spatiale canadienne 10 – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF CANADIAN HERITAGE Ministère du Patrimoine canadien – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF CITIZENSHIP AND IMMIGRATION Ministère de la Citoyenneté et de l’Immigration – The grants listed in any of the Estimates for the fiscal ye – Contributions, including the provision of goods and serv DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEVE Ministère des Affaires indiennes et du Nord canadien 1 – Operating expenditures – Expenditures on works, buildings and equipment – Authority to make expenditures — recoverable or otherw performed on property that is not federal property and o ed in respect of that property – Authority to provide, in respect of Indian and Inuit econo activities, for the capacity development for Indians and I nishing of materials and equipment – Authority to sell electric power to private consumers in r when alternative local sources of supply are not availab with terms and conditions approved by the Governor in – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off ditures that it incurs in that fiscal year — revenues that i fiscal year from the provision of internal support service 29.2 of that Act – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 Vote No. Items the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of 5 – Capital expenditures – Expenditures on buildings, works, land and equipment t trol and ownership of which (a) may be transferred to provincial governments on tions approved by the Governor in Council; or (b) may be transferred to Indian bands, groups of Ind Indians at the discretion of the Minister of Indian Affa Development – Expenditures on buildings, works, land and equipment t than federal property – Authority to make recoverable expenditures on roads an amounts not exceeding the shares of provincial governm tures 10 – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF INDUSTRY Ministère de l’Industrie – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from (a) the provision of internal support services under s Act, and the provision of internal support services to tellectual Property Office; (b) activities and operations related to communicatio Communications Research Centre; (c) services and insolvency processes under the Bank vency Act at the Office of the Superintendent of Bank (d) activities and operations carried out by Corporatio the Canada Business Corporations Act, the Boards of Canada Cooperatives Act, the Canada Not-for-profit C and the Canada Corporations Act; and (e) services and regulatory processes for mergers an matters, including pre-merger notifications, advance and written opinions, under the Competition Act at th Bureau – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of 10 – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SE Ministère des Travaux publics et des Services gouverne 1 – Operating expenditures for the provision of accommoda central services – Authority to make recoverable expenditures in relation t of the Canada Pension Plan, the Employment Insurance Seized Property Management Act 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 Vote No. Items – Authority to expend revenues received during the fiscal accommodation, common and central services – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year including from the provision of internal support ser tion 29.2 of that Act – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of DEPARTMENT OF THE ENVIRONMENT Ministère de l’Environnement 1 – Operating expenditures – Authority for the Minister of the Environment to engage quired by different Boards at the remuneration that thos mine – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off ditures that it incurs in that fiscal year — revenues that i fiscal year from the provision of internal support service 29.2 of that Act and from the provision of services or the tion products arising from the operations of the departm this Vote, including (a) research, analysis and scientific services; (b) hydrometric surveys; (c) regulatory services; (d) monitoring services, including monitoring service the oil sands; (e) entry fees; (f) permits; and (g) real property services – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of HOUSE OF COMMONS Chambre des communes 1 – Program expenditures, including payments in respect of ating Members’ constituency offices – Contributions – Authority to expend revenues that it receives during the from its activities NATURAL SCIENCES AND ENGINEERING RESEARCH COU Conseil de recherches en sciences naturelles et en génie 5 – The grants listed in any of the Estimates for the fiscal ye PRIVY COUNCIL OFFICE Bureau du Conseil privé 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 Vote No. 1 Items – Program expenditures, including operating expenditures of Inquiry not otherwise provided for and the operation ister’s residence – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off ditures that it incurs in that fiscal year — revenues that i fiscal year from the provision of internal support service 29.2 of that Act – The payment to each member of the Queen’s Privy Coun who is a minister without portfolio, or a minister of Stat preside over a ministry of State, of a salary — paid annu any period less than a year — that does not exceed the s the Salaries Act, as adjusted under section 67 of the Par Act, to ministers of State who preside over ministries of PUBLIC SERVICE COMMISSION Commission de la fonction publique 1 – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from the provision of staffing, assessment and cou and products and the provision of internal support servi 29.2 of that Act ROYAL CANADIAN MOUNTED POLICE Gendarmerie royale du Canada 1 – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off ditures that it incurs in that fiscal year — revenues that i fiscal year including from the provision of internal supp section 29.2 of that Act SOCIAL SCIENCES AND HUMANITIES RESEARCH COUNCI Conseil de recherches en sciences humaines 5 – The grants listed in any of the Estimates for the fiscal ye 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 (French) ANNEXE 1.5 D’après le Budget principal des dépenses 2017-2018, la somme total des montants des postes de ce budget, figurant à la présente Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes ADMINISTRATION CANADIENNE DE LA SÛRETÉ DU TRAN Canadian Air Transport Security Authority 1 – Paiements à l’Administration pour les dépenses de fonct dépenses en capital AGENCE CANADIENNE D’INSPECTION DES ALIMENTS Canadian Food Inspection Agency – Dépenses de fonctionnement – Contributions AGENCE SPATIALE CANADIENNE Canadian Space Agency – Subventions inscrites à tout budget des dépenses pour l – Contributions BUREAU DU CONSEIL PRIVÉ Privy Council Office – Dépenses du programme, y compris les dépenses de fon commissions d’enquête non prévues et le fonctionneme du premier ministre – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci pour la prestation de services de soutie de l’article 29.2 de cette loi, à la compensation des dépe gagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute à un an CHAMBRE DES COMMUNES House of Commons 1 – Dépenses du programme, notamment les paiements liés des bureaux de circonscription des députés – Contributions – Autorisation de dépenser les recettes perçues au cours d venant de ses activités COMMISSION DE LA FONCTION PUBLIQUE Public Service Commission 1 – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci pour la fourniture de produits et service d’évaluation et de counseling et la prestation de service en vertu de l’article 29.2 de cette loi, à la compensation gées au cours de l’exercice CONSEIL DE RECHERCHES EN SCIENCES HUMAINES Social Sciences and Humanities Research Council 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 (French) No du crédit 5 Postes – Subventions inscrites à tout budget des dépenses pour l CONSEIL DE RECHERCHES EN SCIENCES NATURELLES ET Natural Sciences and Engineering Research Council 5 – Subventions inscrites à tout budget des dépenses pour l GENDARMERIE ROYALE DU CANADA Royal Canadian Mounted Police – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci, notamment pour la prestation de servi ternes en vertu de l’article 29.2 de cette loi, à la compen connexes engagées au cours de l’exercice MINISTÈRE DE LA CITOYENNETÉ ET DE L’IMMIGRATION Department of Citizenship and Immigration 10 – Subventions inscrites à tout budget des dépenses pour l – Contributions, y compris la fourniture de biens et de ser MINISTÈRE DE L’ENVIRONNEMENT Department of the Environment 1 – Dépenses de fonctionnement – Autorisation au ministre de l’Environnement d’engager d dont les commissions peuvent avoir besoin et versemen tements déterminés par celles-ci – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci et provenant de la prestation de service ternes en vertu de l’article 29.2 de cette loi et des éléme compensation des dépenses connexes engagées au cou a) les services de recherche, les services d’analyse et fiques; b) les relevés hydrologiques; c) les services de réglementation; d) les services de surveillance, notamment les activit des sables bitumineux; e) les droits d’entrée; f) les permis; g) les services de biens immobiliers. – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute à un an MINISTÈRE DE L’INDUSTRIE Department of Industry 1 – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci et provenant des éléments ci-après, à la dépenses engagées au cours de l’exercice : 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 (French) No du crédit Postes a) la prestation de services de soutien internes en ve de cette loi et de services de soutien internes à l’Offic tellectuelle du Canada; b) les activités liées aux recherches sur les communi recherches sur les communications; c) les services et la procédure d’insolvabilité, au titre faillite et l’insolvabilité, au Bureau du surintendant de d) les activités de Corporations Canada au titre de la les sociétés par actions, de la Loi sur les chambres d Loi canadienne sur les coopératives, de la Loi canadi sations à but non lucratif et de la Loi sur les corporat e) les services et la procédure réglementaire au Bure rence pour les fusions et toute chose s’y rapportant, préalables à une fusion, les certificats de décision pré consultatifs au titre de la Loi sur la concurrence. – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute à un an 10 – Subventions inscrites à tout budget des dépenses pour l – Contributions MINISTÈRE DES AFFAIRES INDIENNES ET DU NORD CANA Department of Indian Affairs and Northern Developmen 1 – Dépenses de fonctionnement – Dépenses relatives aux ouvrages, bâtiments et matériel – Autorisation d’effectuer des dépenses — recouvrables o aux travaux effectués sur des propriétés n’appartenant p ment fédéral et aux services fournis à l’égard de celles-c – Autorisation d’affecter des fonds dans le cadre d’activité grès économique des Indiens et des Inuits, relatives au d capacité des Indiens et des Inuits et à l’approvisionneme en matériel – Autorisation de vendre de l’électricité, conformément au prouvées par le gouverneur en conseil, aux consommat particuliers vivant dans des centres éloignés lorsque ces accès aux sources alternatives locales d’approvisionnem – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci pour la prestation de services de soutie de l’article 29.2 de cette loi, à la compensation des dépe gagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute à un an 5 – Dépenses en capital – Dépenses relatives aux bâtiments, ouvrages, terrains et tion, le contrôle et la propriété peuvent être cédés : a) soit aux gouvernements provinciaux, selon les con par le gouverneur en conseil; 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 1.5 (French) No du crédit Postes b) soit à des bandes indiennes ou à des Indiens, à titr culier, à la discrétion du ministre des Affaires indienn dien. – Dépenses relatives aux bâtiments, ouvrages, terrains et l’égard de propriétés n’appartenant pas au gouverneme – Autorisation d’effectuer des dépenses recouvrables pou dépassant pas la part des frais assumés par les gouvern pour des routes et ouvrages connexes 10 – Subventions inscrites à tout budget des dépenses pour l – Contributions MINISTÈRE DES TRAVAUX PUBLICS ET DES SERVICES GO Department of Public Works and Government Services 1 – Dépenses de fonctionnement pour la prestation de servi locaux et de services communs et centraux – Autorisation d’effectuer des dépenses recouvrables liées Régime de pensions du Canada, de la Loi sur l’assuranc sur l’administration des biens saisis – Autorisation de dépenser les recettes perçues au cours d des services de gestion des locaux et des services comm – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les cours de celui-ci et provenant notamment de la prestatio soutien internes en vertu de l’article 29.2 de cette loi, à l dépenses engagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de l Canada qui a qualité de ministre sans portefeuille ou de mais qui ne dirige pas un département d’État, d’un traite pas celui versé aux ministres d’État qui dirigent un dépa titre de la Loi sur les traitements, rajusté en application Loi sur le Parlement du Canada et au prorata, pour toute à un an MINISTÈRE DU PATRIMOINE CANADIEN Department of Canadian Heritage 5 – Subventions inscrites à tout budget des dépenses pour l – Contributions STATION CANADIENNE DE RECHERCHE DANS LʼEXTRÊME Canadian High Arctic Research Station 1 – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour l – Contributions 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 2 SCHEDULE 2 Based on the Main Estimates 2017–18, the amount granted is $1,5 of the items in the Main Estimates that are set out in this schedule Sums granted to Her Majesty by this Act for the fiscal year endin following fiscal year ending March 31, 2019 and the purposes for w Vote No. Items CANADA BORDER SERVICES AGENCY Agence des services frontaliers du Canada – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the Fi tration Act, to expend in the fiscal year — in order to off that it incurs in that fiscal year — revenues that it receiv year from (a) fees, related to border operations, for the provisio the use of a facility or for a product, right or privilege (b) payments received under contracts entered into b 5 – Capital expenditures CANADA REVENUE AGENCY Agence du revenu du Canada – Operating expenditures – Contributions – Authority to make recoverable expenditures in relation t of the Canada Pension Plan and the Employment Insura 5 – Capital expenditures – Authority to make recoverable expenditures in relation t of the Canada Pension Plan and the Employment Insura PARKS CANADA AGENCY Agence Parcs Canada 1 – Program expenditures – Capital expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions, including (a) expenditures on other than federal property; and (b) payments to provinces and municipalities as cont the cost of undertakings carried out by those bodies 5 – Amounts credited to the New Parks and Historic Sites Ac poses specified in subsection 21(3) of the Parks Canada 2015-2016-2017 Chapter 2: Appropriation Act No. 1, 2017–18 SCHEDULE 2 (French) ANNEXE 2 D’après le Budget principal des dépenses 2017-2018, la somme ac des montants des postes de ce budget, figurant à la présente anne Sommes accordées par la présente loi à Sa Majesté pour l’exercice en cours et à l’exercice suivant se terminant le 31 mars 2019, et fin No du crédit Postes AGENCE DES SERVICES FRONTALIERS DU CANADA Canada Border Services Agency – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi sur nances publiques, d’affecter, au cours de l’exercice, les au cours de celui-ci et provenant des éléments ci-après, des dépenses engagées au cours de l’exercice : a) les droits — liés aux activités à la frontière — perç tion d’un service, l’utilisation d’une installation, l’ach l’exercice d’un droit ou d’un privilège; b) les paiements reçus au titre de contrats conclus pa 5 – Dépenses en capital AGENCE DU REVENU DU CANADA Canada Revenue Agency – Dépenses de fonctionnement – Contributions – Autorisation d’effectuer des dépenses recouvrables liées Régime de pensions du Canada et de la Loi sur l’assuran 5 – Dépenses en capital – Autorisation d’effectuer des dépenses recouvrables liées Régime de pensions du Canada et de la Loi sur l’assuran AGENCE PARCS CANADA Parks Canada Agency 1 – Dépenses du programme – Dépenses en capital – Subventions inscrites à tout budget des dépenses pour l – Contributions, notamment : a) les dépenses afférentes à des propriétés autres qu vernement fédéral; b) les paiements aux provinces et aux municipalités tions à l’égard des engagements assumés par ces de 5 – Sommes créditées au Compte des nouveaux parcs et lie pour les fins visées au paragraphe 21(3) de la Loi sur l’A Canada Published under authority of the Speaker of the House of Commons 2015-2016-2017

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 32 An Act to give effect to the Anishinabek Nation Education Agreement and to make consequential amendments to other Acts ASSENTED TO DECEMBER 14, 2017 BILL C-61 SUMMARY This enactment gives effect to the Anishinabek Nation Education Agreement and makes consequential amendments to other Acts. i 64-65-66 ELIZABETH II CHAPTER 32 An Act to give effect to the Anishinabek Nation Education Agreement and to make consequential amendments to other Acts [Assented to 14th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Anishinabek Nation Education Agreement Act. Interpretation Definitions 2 The following definitions apply in this Act. Agreement means the Anishinabek Nation Education Agreement signed on August 16, 2017, including any amendments made to it. (Accord) band has the same meaning as in subsection 2(1) of the Indian Act. (bande) constitution means a constitution ratified by a participating First Nation in conformity with the Agreement. (constitution) education means education programs and services of a nature generally provided to students from junior kindergarten to the end of secondary school in Ontario. (éducatifs) First Nation law means a law made under section 7. (texte législatif autochtone) participating First Nation means a band that is named in the schedule. (première nation participante) 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act Interpretation Sections 2-8 student has the same meaning as in section 1.1 of the Agreement. (élève) Agreement prevails 3 (1) In the event of an inconsistency or conflict between the Agreement and the provisions of any Act of Parliament, or of any regulation made under an Act of Parliament, the Agreement prevails to the extent of the conflict or inconsistency. Act prevails (2) In the event of an inconsistency or conflict between the provisions of this Act and the provisions of any other Act of Parliament, or of any regulation made under any other Act of Parliament, the provisions of this Act prevail to the extent of the inconsistency or conflict. Agreement Application of Act 4 This Act applies to every participating First Nation. Agreement given effect 5 (1) The Agreement is approved, given effect and declared valid and has the force of law. For greater certainty (2) For greater certainty, the Agreement is binding on, and may be relied on by, all persons and bodies. Not a treaty 6 The Agreement is not a treaty within the meaning of section 35 of the Constitution Act, 1982. First Nation laws 7 A participating First Nation may, to the extent provided by the Agreement, make laws respecting education that are applicable on its reserve, as defined in subsection 2(1) of the Indian Act. Education 8 (1) A participating First Nation must provide or make provision for education for students to the extent provided by the Agreement. Transferability (2) The education provided must, if practicable, be comparable to education provided by the public school system of Ontario, in order to facilitate the transfer of 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act Agreement Sections 8-12 students without academic penalty to and from that school system. Kinoomaadziwin Education Body 9 (1) A corporation without share capital to be known as Kinoomaadziwin Education Body is established to support the delivery of education under this Act. Powers, duties, etc. (2) The powers, duties, functions, role and composition of the Kinoomaadziwin Education Body are to be determined in accordance with the Agreement. Regional Education Council 10 (1) A participating First Nation may, with one or more participating First Nations, establish a Regional Education Council, in accordance with the Agreement, to support the coordination and delivery of education. Powers, duties, etc. (2) The powers, duties, functions, role and composition of the Regional Education Council are to be determined, in accordance with the Agreement, by the participating First Nations that establish it. Local Education Authority 11 (1) A participating First Nation may establish a Local Education Authority, in accordance with the Agreement, to support it in the exercise of its powers, including the power to make First Nation laws. Powers, duties, etc. (2) The powers, duties, functions, role and composition of the Local Education Authority are to be determined, in accordance with the Agreement, by the participating First Nation that establishes it. General Indian Act 12 On the coming into force of a First Nation law, subsection 114(1) and sections 115 to 117 of the Indian Act cease to apply to the participating First Nation that made it. 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act General Sections 13-16 Judicial notice — First Nation laws 13 (1) Judicial notice must be taken of a First Nation law that is registered in the official registry of laws maintained by a participating First Nation in accordance with the Agreement. Evidence (2) In any proceedings, evidence of a First Nation law may be given by the production of a copy of the law, certified to be a true copy by a person authorized by the participating First Nation, without proof of that person’s signature or official character. Statutory Instruments Act 14 A First Nation law is not a statutory instrument for the purposes of the Statutory Instruments Act. Regulations and Orders Regulations and orders 15 The Governor in Council may make any regulations or orders that he or she considers necessary for the purpose of carrying out the provisions of this Act, the Agreement or other agreements related to the implementation of the Agreement. Amendment of Schedule Addition of name of participating First Nation 16 (1) The Governor in Council may, by order, add the name of any First Nation to the schedule if he or she is satisfied that the First Nation has, in a manner consistent with the Agreement, ratified the Agreement and has a constitution. Amendment or removal (2) The Governor in Council may, by order, amend the schedule to amend or remove the name of a participating First Nation if he or she is satisfied that consent to the amendment or removal was obtained in a manner consistent with the Agreement. 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act Consequential Amendments Sections 17-18 Consequential Amendments R.S., c. A-1 Access to Information Act 17 Subsection 13(3) of the Access to Information Act is amended by striking out “or” at the end of paragraph (g), by adding “or” at the end of paragraph (h) and by adding the following after paragraph (h): (i) the council of a participating First Nation, as defined in section 2 of the Anishinabek Nation Education Agreement Act. R.S., c. P-21 Privacy Act 2006, c. 10, s. 33(1) 18 (1) Paragraph 8(2)(f) of the Privacy Act is replaced by the following: (f) under an agreement or arrangement between the Government of Canada or any of its institutions and the government of a province, the council of the Westbank First Nation, the council of a participating First Nation as defined in subsection 2(1) of the First Nations Jurisdiction over Education in British Columbia Act, the council of a participating First Nation as defined in section 2 of the Anishinabek Nation Education Agreement Act, the government of a foreign state, an international organization of states or an international organization established by the governments of states, or any institution of any such government or organization, for the purpose of administering or enforcing any law or carrying out a lawful investigation; (2) Subsection 8(7) of the Act is amended by striking out “or” at the end of paragraph (g), by adding “or” at the end of paragraph (h) and by adding the following after paragraph (h): (i) the council of a participating First Nation as defined in section 2 of the Anishinabek Nation Education Agreement Act. 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act Coordinating Amendments Section 19 Coordinating Amendments 2013, c. 25 19 (1) In this section, other Act means the Yale First Nation Final Agreement Act. (2) If section 20 of the other Act comes into force before section 17 of this Act, then that section 17 is replaced by the following: 17 Subsection 13(3) of the Access to Information Act is amended by striking out “or” at the end of paragraph (h), by adding “or” at the end of paragraph (i) and by adding the following after paragraph (i): (j) the council of a participating First Nation as defined in section 2 of the Anishinabek Nation Education Agreement Act. (3) If section 17 of this Act comes into force before section 20 of the other Act, then that section 20 is replaced by the following: 20 Subsection 13(3) of the Access to Information Act is amended by striking out “or” at the end of paragraph (h), by adding “or” at the end of paragraph (i) and by adding the following after paragraph (i): (j) the Yale First Nation Government, within the meaning of subsection 2(2) of the Yale First Nation Final Agreement Act. (4) If section 20 of the other Act comes into force on the same day as section 17 of this Act, then that section 20 is deemed to have come into force before that section 17 and subsection (2) applies as a consequence. (5) If section 23 of the other Act comes into force before subsection 18(2) of this Act, then that subsection 18(2) is replaced by the following: (2) Subsection 8(7) of the Act is amended by striking out “or” at the end of paragraph (h), by adding “or” at the end of paragraph (i) and by adding the following after paragraph (i): (j) the council of a participating First Nation as defined in section 2 of the Anishinabek Nation Education Agreement Act. 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act Coordinating Amendments Sections 19-20 (6) If subsection 18(2) of this Act comes into force before section 23 of the other Act, then that section 23 is replaced by the following: 23 Subsection 8(7) of the Privacy Act is amended by striking out “or” at the end of paragraph (h), by adding “or’’ at the end of paragraph (i) and by adding the following after paragraph (i): (j) the Yale First Nation Government, within the meaning of subsection 2(2) of the Yale First Nation Final Agreement Act. (7) If section 23 of the other Act comes into force on the same day as subsection 18(2) of this Act, then that section 23 is deemed to have come into force before that subsection 18(2) and subsection (5) applies as a consequence. Coming into Force April 1, 2018 20 This Act, other than section 19, comes into force on April 1, 2018. 2015-2016-2017 Chapter 32: Anishinabek Nation Education Agreement Act SCHEDULE Participating First Nations SCHEDULE (Sections 2 and 16) Participating First Nations Aamjiwnaang First Nation Première Nation Aamjiwnaang Atikameksheng Anishnawbek Première Nation anishinabe Atikameksheng Aundeck Omni Kaning First Nation Première Nation Aundeck Omni Kaning Beausoleil First Nation Première Nation Beausoleil Biigtigong Nishnaabeg Première Nation anishinabe Biigtigong Biinjitiwaabik Zaaging Anishinaabek Première Nation anishinabe Biinjitiwaabik Zaaging Chippewas of Georgina Island Première Nation des Chippewas de l’île Georgina Chippewas of Rama First Nation Première Nation des Chippewas de Rama Dokis First Nation Première Nation Dokis Henvey Inlet First Nation Première Nation Henvey Inlet Long Lake #58 First Nation Première Nation Long Lake no 58 Magnetawan First Nation Première Nation Magnetawan Michipicoten First Nation Première Nation Michipicoten Mississaugas of Scugog Island First Nation Première Nation des Mississaugas de l’île Scugog Moose Deer Point First Nation Première Nation Moose Deer Point Munsee-Delaware Nation Nation des Munsees-Delawares Nipissing First Nation Première Nation Nipissing Pic Mobert First Nation Première Nation Pic Mobert Sheshegwaning First Nation Première Nation Sheshegwaning Wahnapitae First Nation Première Nation Wahnapitae Wasauksing First Nation Première Nation Wasauksing Whitefish River First Nation Première Nation de la rivière Whitefish Zhiibaahaasing First Nation Première Nation Zhiibaahaasing Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 26 An Act to correct certain anomalies, inconsistencies and errors and to deal with other matters of a non-controversial and uncomplicated nature in the Statutes of Canada and to repeal certain Acts and provisions that have expired, lapsed or otherwise ceased to have effect ASSENTED TO DECEMBER 12, 2017 BILL C-60 SUMMARY This enactment is the 12th in a series of bills introduced under the Miscellaneous Statute Law Amendment (MSLA) Program. It amends 41 Acts to correct grammatical, spelling, terminological, typographical and cross-referencing errors, update archaic wording and correct discrepancies between the two language versions. It also updates the names of certain organizations, for example, “Canadian Institute of Chartered Accountants” is replaced with “Chartered Professional Accountants of Canada”. Finally, it contains amendments repealing eight Acts that no longer have any application, for example, the Maintenance of Ports Operations Act, 1986. This enactment has been drafted based on the Thirteenth Report of the Standing Committee on Justice and Human Rights tabled in the House of Commons on May 31, 2017 and the Twenty-first Report of the Standing Senate Committee on Legal and Constitutional Affairs tabled in the Senate on June 21, 2017. BACKGROUND AND PROCESS The MSLA Program was established in 1975 to allow for minor non-controversial amendments to be made to a number of federal statutes at once, in one bill, instead of making such amendments incrementally when a particular statute is being opened for amendments of a more substantial nature. The legislative process for introducing an MSLA bill in Parliament is different from the usual legislative process and involves four main steps: the preparation of a document containing the proposed amendments; the tabling of that document in Parliament and its review by a committee of each House; the preparation of an MSLA bill, based on the committees’ reports, that contains the proposed amendments that were approved by both committees; and finally, the introduction of the bill in Parliament. The proposed amendments must meet all of the following criteria: (a) not be controversial; (b) not involve the spending of public funds; (c) not prejudicially affect the rights of persons; (d) not create a new offence or subject a new class of persons to an existing offence. The document containing the proposed amendments is tabled in the Senate and referred to its Standing Committee on Legal and Constitutional Affairs and in the House of Commons and referred to its Standing Committee on Justice and Human Rights. Each committee reviews the proposed amendments in the document, prepares a report of its findings and presents it to the appropriate House. i Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 SUMMARY Perhaps the most important feature of committee review is that, since a proposed amendment must not be controversial, its approval requires the consensus of the committee. Therefore, if a single member of a committee objects for any reason to a proposed amendment, that proposed amendment will not be included in the MSLA bill. After committee review, an MSLA bill is drafted based on the reports of the two committees and contains the proposed amendments that were approved by both committees. Once the bill is introduced in Parliament, it is subject to the ordinary enactment procedures; however, the bill usually receives three readings in each House without debate since the amendments contained in the bill have already been considered and approved by committees of both Houses. 2015-2016-2017 ii TABLE OF PROVISIONS An Act to correct certain anomalies, inconsistencies and errors and to deal with other matters of a noncontroversial and uncomplicated nature in the Statutes of Canada and to repeal certain Acts and provisions that have expired, lapsed or otherwise ceased to have effect Short Title 1 Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments 2 Aeronautics Act Bankruptcy and Insolvency Act Canada Health Act Competition Act Companies’ Creditors Arrangement Act International River Improvements Act Canada Labour Code Motor Vehicle Safety Act Employment Equity Act Tobacco Act Canadian Environmental Protection Act, 1999 Canada National Parks Act Canada Shipping Act, 2001 Immigration and Refugee Protection Act Yukon Act Species at Risk Act First Nations Fiscal Management Act Department of Employment and Social Development Act Wage Earner Protection Program Act Jobs, Growth and Long-term Prosperity Act Northwest Territories Act Economic Action Plan 2014 Act, No. 2 PART 2 Terminology 62 Replacement of “Canadian Institute of Chartered Accountants” Deletion of “but not limited to” 2015-2016-2017 v Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 TABLE OF PROVISIONS PART 3 Repeals 64 Maintenance of Ports Operations Act, 1986 Postal Services Continuation Act, 1987 Postal Services Continuation Act, 1991 West Coast Ports Operations Act, 1994 West Coast Ports Operations Act, 1995 Maintenance of Railway Operations Act, 1995 Postal Services Continuation Act, 1997 Railway Continuation Act, 2007 PART 4 Coordinating Amendments 72 2002, c. 7 Bill S-2 Bill S-5 2015-2016-2017 v 64-65-66 ELIZABETH II CHAPTER 26 An Act to correct certain anomalies, inconsistencies and errors and to deal with other matters of a noncontroversial and uncomplicated nature in the Statutes of Canada and to repeal certain Acts and provisions that have expired, lapsed or otherwise ceased to have effect [Assented to 12th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 Miscellaneous Statute Law Amendment Act, 2017. PART 1 Amendments R.S., c. A-2 Aeronautics Act 2 (1) Section 4.31 of the Aeronautics Act, as enacted by section 143 of the Economic Action Plan 2014 Act, No. 2, is renumbered as section 4.32. (2) Subsection 4.32(2) of the English version of the Act is replaced by the following: Exemption (2) An order under subsection (1) is exempt from examination, registration and publication under the Statutory Instruments Act. 3 Subsection 4.91(4) of the English version of the Act is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Aeronautics Act Sections 3-8 Exemption (4) An order under subsection (1) is exempt from examination, registration and publication under the Statutory Instruments Act. 4 Subsection 7.2(1) of the French version of the Act is replaced by the following: Appel 7.2 (1) Toute personne concernée peut faire appel au Tribunal de la décision rendue en vertu du paragraphe 6.72(4), de l’alinéa 7(7)a) ou du paragraphe 7.1(7); toute personne concernée ou le ministre peuvent faire appel de celle rendue en vertu du paragraphe 6.9(8) ou de l’alinéa 7(7)b). Dans tous les cas, le délai d’appel est de trente jours suivant la décision. R.S., c. B-3; 1992, c. 27, s. 2 Bankruptcy and Insolvency Act 5 Subsection 25(2) of the Bankruptcy and Insolvency Act is replaced by the following: Payment by cheque (2) All payments made by a trustee under subsection (1.3) shall be made by cheque drawn on the estate account or in such manner as is specified in directives of the Superintendent. 6 Paragraph 50.4(8)(c) of the English version of the Act is replaced by the following: (c) the trustee shall, within five days after the day the certificate mentioned in paragraph (b.1) is issued, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another licensed trustee in lieu of that trustee. 7 Subparagraph 57(c)(ii) of the Act is replaced by the following: (ii) if no quorum exists for the purpose of subparagraph (i), send notice, within five days after the day the certificate mentioned in paragraph (b.1) is issued, of the meeting of creditors under section 102, 8 Paragraph 61(2)(c) of the English version of the Act is replaced by the following: (c) the trustee shall, within five days after the day the certificate mentioned in paragraph (b.1) is issued, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Bankruptcy and Insolvency Act Sections 8-13 resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another licensed trustee in lieu of that trustee. 9 Paragraph 158(g) of the Act is replaced by the following: (g) make disclosure to the trustee of all property disposed of by transfer at undervalue within the period beginning on the day that is five years before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included; 10 Subsection 254(2) of the Act is replaced by the following: Application of transaction provisions (2) Sections 95 to 101 apply, with such modifications as the circumstances require, in respect of transactions of a customer with or through a securities firm relating to securities. R.S., c. C-6 Canada Health Act 11 Paragraph (c) of the definition insured person in section 2 of the English version of the Canada Health Act is replaced by the following: (c) a person serving a term of imprisonment in a penitentiary as defined in Part I of the Corrections and Conditional Release Act, or R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19 Competition Act 12 Subsection 18(1.1) of the Competition Act is replaced by the following: Certified copies (1.1) The Commissioner need not return any copy of a record produced under section 11 or obtained under section 15 or 16. 13 (1) Paragraph 103.3(1)(a) of the Act is replaced by the following: (a) to prevent the continuation of conduct that could be the subject of an order under any of sections 75 to 77, 79, 81, 84 or 90.1; or (2) Subsection 103.3(3) of the Act is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Competition Act Sections 13-17 Consultation (3) Before making an application for an order to prevent the continuation of conduct that could be the subject of an order under any of sections 75 to 77, 79, 81, 84 or 90.1 by an entity incorporated under the Bank Act, the Insurance Companies Act, the Trust and Loan Companies Act or the Cooperative Credit Associations Act or a subsidiary of such an entity, the Commissioner must consult with the Minister of Finance respecting the safety and soundness of the entity. R.S., c. C-36 Companies’ Creditors Arrangement Act 14 Subsection 36(7) of the Companies’ Creditors Arrangement Act is replaced by the following: Restriction — employers (7) The court may grant the authorization only if the court is satisfied that the company can and will make the payments that would have been required under paragraphs 6(5)(a) and (6)(a) if the court had sanctioned the compromise or arrangement. R.S., c. I-20 International River Improvements Act 15 Paragraph 7(1)(b) of the International River Improvements Act is replaced by the following: (b) situated within boundary waters; or R.S., c. L-2 Canada Labour Code 16 Subparagraph 251.05(1)(a)(iii) of the Canada Labour Code is replaced by the following: (iii) that the complaint has been settled between the employer and the employee, 1993, c. 16 Motor Vehicle Safety Act 17 Subsection 10.1(7) of the English version of the Motor Vehicle Safety Act is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Motor Vehicle Safety Act Sections 17-20 Power to order (7) The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to give a notice of non-compliance in the manner specified in the order, if the Minister considers that it is in the interest of safety. 1995, c. 44 Employment Equity Act 18 Subsection 28(4.1) of the Employment Equity Act is replaced by the following: Acting after expiration of appointment (4.1) A member whose appointment expires may, with the approval of the Chairperson, conclude any hearing that the member has begun, and a person performing duties under this section is deemed to be a part-time member for the purposes of subsection 48.2(2) of the Canadian Human Rights Act. Replacement of “aboriginal” 19 The English version of the Act is amended by replacing “aboriginal” with “Aboriginal” in the following provisions: (a) section 2; (b) the definitions aboriginal peoples, designated groups and members of visible minorities in section 3; (c) section 7; (d) subsection 9(2); (e) subsection 18(4); and (f) paragraph 25(1.1)(a). 1997, c. 13 Tobacco Act 20 The heading of the first column of the schedule to the French version of the Tobacco Act is replaced by “Article”. 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canadian Environmental Protection Act, 1999 Sections 21-23 1999, c. 33 Canadian Environmental Protection Act, 1999 21 Paragraph (a) of the definition entreprises fédérales in subsection 3(1) of the French version of the Canadian Environmental Protection Act, 1999 is replaced by the following: a) ceux qui se rapportent à la navigation et à la marine marchande, maritimes ou fluviales, notamment en ce qui concerne l’exploitation de navires et le transport par navire; 22 Paragraph 44(1)(f) of the English version of the Act is replaced by the following: (f) publish, arrange for the publication of or distribute through an information clearing-house (i) information respecting pollution prevention, (ii) pertinent information in respect of all aspects of environmental quality, and (iii) a periodic report on the state of the Canadian environment. 23 (1) The portion of subsection 81(1) of the English version of the Act before paragraph (a) is replaced by the following: Manufacture or import of substances 81 (1) Where a substance is not specified on the Domestic Substances List, no person shall manufacture or import the substance unless (2) Subsection 81(2) of the Act is repealed. (3) Subsection 81(5) of the Act is replaced by the following: Transfer of rights in respect of substance (5) Where prescribed information with respect to a substance has been provided under subsection (1), (3) or (4) by a person who subsequently transfers the right or privilege in relation to the substance for which the information was provided, the information is, subject to any conditions that may be prescribed, deemed to have been provided by the transferee of that right or privilege. (4) The portion of subsection 81(6) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canadian Environmental Protection Act, 1999 Sections 23-26 Application (6) Subsections (1), (3) and (4) do not apply to (5) The portion of subsection 81(8) of the Act before paragraph (a) is replaced by the following: Waiver of information requirements (8) On the request of any person to whom subsection (1), (3) or (4) applies, the Minister may waive any of the requirements to provide information under that subsection if 24 Subsections 82(2) and (3) of the Act are replaced by the following: Waiver of information requirements (2) On the request of any person required under subsection (1) to provide information, the Minister may waive any of the requirements for prescribed information if one of the conditions specified in paragraphs 81(8)(a) to (c) is met and, in that case, subsections 81(9) to (13) apply with respect to the waiver. 25 Paragraphs 89(1)(c) and (d) of the Act are replaced by the following: (c) respecting the information to be provided to the Minister under subsection 81(1), (3) or (4) or section 82; (d) prescribing dates on or before which information shall be provided under subsection 81(1), (3) or (4); 26 (1) The portion of subsection 106(1) of the English version of the Act before paragraph (a) is replaced by the following: Manufacture or import of living organisms 106 (1) Where a living organism is not specified on the Domestic Substances List, no person shall manufacture or import the living organism unless (2) Subsection 106(2) of the Act is repealed. (3) Subsection 106(5) of the Act is replaced by the following: Transfer of rights in respect of substance (5) Where prescribed information with respect to a substance has been provided under subsection (1), (3) or (4) by a person who subsequently transfers the right or privilege in relation to the substance for which the information was provided, the information is, subject to any 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canadian Environmental Protection Act, 1999 Sections 26-29 conditions that may be prescribed, deemed to have been provided by the transferee of that right or privilege. (4) The portion of subsection 106(6) of the Act before paragraph (a) is replaced by the following: Application (6) Subsections (1), (3) and (4) do not apply to (5) The portion of subsection 106(8) of the Act before paragraph (a) is replaced by the following: Waiver of information requirements (8) On the request of any person to whom subsection (1), (3) or (4) applies, the Minister may waive any of the requirements to provide information under that subsection if 27 Subsections 107(2) and (3) of the Act are replaced by the following: Waiver of information requirements (2) On the request of any person required under subsection (1) to provide information, the Minister may waive any of the requirements for prescribed information if one of the conditions specified in paragraphs 106(8)(a) to (c) is met and, in that case, subsections 106(9) to (13) apply with respect to the waiver. 28 Paragraphs 114(1)(c) and (d) of the Act are replaced by the following: (c) respecting the information that shall be provided to the Minister under subsection 106(1), (3) or (4) or section 107 and the form and manner in which it is to be provided; (d) prescribing dates on or before which information shall be provided under subsection 106(1), (3) or (4); 29 (1) Paragraph 272(1)(a) of the Act is replaced by the following: (a) contravenes subsection 16(3) or (4), any of subsections 81(1), (3), (4), (10), (11) and (14), 84(2) and 96(3) and (4), section 101, any of subsections 106(1), (3), (4), (10) and (11) and 109(2), section 117 or 123, any of subsections 124(1), (2) and (3), 125(1), (2), (3), (4) and (5), 126(1) and (2) and 139(1), section 142 or 144, subsection 150(3) or (4), section 152, subsection 153(1), section 154, subsection 155(5), section 171 or 181, subsection 185(1), 186(2), 189(1), 202(3) or (4) or 213(3) or (4), paragraph 228(a) or subsection 238(1); 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canadian Environmental Protection Act, 1999 Sections 29-33 (2) Paragraph 272(1)(c) of the Act is replaced by the following: (c) contravenes a prohibition imposed under subsection 82(1), paragraph 84(1)(b), subsection 107(1), paragraph 109(1)(b) or subsection 186(1) or 225(4); 30 Subparagraph 296(1)(b)(i) of the Act is replaced by the following: (i) in respect of the contravention of subsection 16(4), 81(1), (3) or (4), 82(1), 84(2) or 96(4), section 99, subsection 106(1), (3) or (4), 107(1), 109(1) or (2), 119(1), 148(1), 202(4) or 213(4) or section 227 or 228, or any obligation or prohibition arising from any of those provisions, 31 Subsection 343(1) of the French version of the Act is replaced by the following: Examen permanent 343 (1) Tous les cinq ans après l’entrée en vigueur de la présente loi, celle-ci est soumise à l’examen d’un comité, soit de la Chambre des communes, soit du Sénat, soit mixte, désigné ou constitué pour examiner son application. 2000, c. 32 Canada National Parks Act 32 Subsection 12(1) of the French version of the Canada National Parks Act is replaced by the following: Consultation du public 12 (1) Le ministre favorise, le cas échéant, la participation du public à l’échelle nationale, régionale et locale — notamment la participation des organisations autochtones, des organismes constitués dans le cadre d’accords sur des revendications territoriales et des représentants des collectivités —, tant à la création des parcs qu’à l’élaboration de la politique et des règlements à leur égard, des plans directeurs, de l’aménagement des terres et du développement des collectivités et des autres mesures qu’il juge utiles. 33 Paragraph 33(2)(a) of the French version of the Act is replaced by the following: a) être compatible avec le plan directeur du parc où est située la collectivité; 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canada National Parks Act Sections 34-39 34 The first paragraph of the description of Glacier National Park of Canada in Part 1 of Schedule 1 to the French version of the Act is replaced by the following: Toutes les latitudes et longitudes indiquées ci-après font référence au Système géodésique nord-américain de 1927 et tous les accidents topographiques indiqués sont conformes à la première édition de la carte « Map Compilation and Reproduction » MCR 219 (Parcs nationaux des Glaciers et du Mont-Revelstoke) compilée à partir des cartes 82N/3, 82N/4, 82N/5, 82N/6, 82L/16 et 82M/1 de la série 1:50 000 du système national de référence cartographique et d’information fournie par Environnement Canada Parcs; ladite carte MCR a été produite à l’échelle de 1:70 000 par la Direction des levés et de la cartographie, Énergie, Mines et Ressources Canada, 1987; 35 The thirty-seventh paragraph of the description of Jasper National Park of Canada in Part 2 of Schedule 1 to the Act is replaced by the following: Said parcel containing about 11 228 square kilometres; 36 The description of Georgian Bay Islands National Park of Canada in Part 5 of Schedule 1 to the French version of the Act is amended by replacing “Baie Georgienne” and “Île Gray” with “baie Georgienne” and “île Gray”, respectively. 37 The title of subpart (3) of Part 13 of Schedule 1 to the French version of the Act is replaced by the following: (3) Parc national Quttinirpaaq du Canada 38 The description of Quttinirpaaq National Park of Canada in Part 13 of Schedule 1 to the French version of the Act is amended by replacing “Île d’Ellesmere” with “île d’Ellesmere”. 39 (1) The second paragraph of the description of Mingan Archipelago National Park Reserve of Canada in Schedule 2 to the French version of the Act is amended by replacing “l’Île au Perroquet” with “l’île au Perroquet”. (2) The fourth paragraph of the description of Mingan Archipelago National Park Reserve of Canada in Schedule 2 to the Act is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canada National Parks Act Sections 39-41 Notwithstanding the generality of the foregoing, the following Isles and Islets (without cadastral designation) forming part of the Fief and Seigneurie of the Isles and Islets of Mingan are not included in the present description, namely: Perroquet Island, Havre de Mingan Island, Calculot des Betchouanes Island, De la Maison Island, Wreck Island, Innu Island and that part of Fright Island described in a deed registered at the Saguenay Registry Office on January 15, 1952, under number 13630. 2001, c. 26 Canada Shipping Act, 2001 40 Paragraph 40(1)(c) of the Canada Shipping Act, 2001 is replaced by the following: (c) subsection 20(2) (failure to return suspended or cancelled Canadian maritime document); and 41 The heading before section 87 and sections 87 to 89 of the French version of the Act are replaced by the following: Brevets Personnes occupant un poste à bord 87 Toute personne occupant à bord d’un bâtiment canadien un poste à l’égard duquel un brevet est exigé sous le régime de la présente partie doit être titulaire du brevet et en respecter les modalités. Citoyen canadien et résident permanent 88 (1) Seuls les citoyens canadiens et les résidents permanents au sens du paragraphe 2(1) de la Loi sur l’immigration et la protection des réfugiés peuvent être titulaires d’un brevet d’aptitude délivré sous le régime de la présente partie. Brevet étranger (2) Le ministre peut, à la demande d’une personne visée au paragraphe (1), délivrer un brevet d’aptitude relativement à certaines exigences prévues sous le régime de la présente loi au titulaire d’un brevet d’aptitude délivré en vertu de lois étrangères s’il est convaincu que les exigences afférentes à ce dernier brevet sont égales ou supérieures à celles prévues sous le régime de la présente loi. Il peut, au préalable, exiger que le titulaire subisse l’examen qu’il précise. 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canada Shipping Act, 2001 Sections 41-43 Acceptation d’un brevet étranger 89 (1) Dans le cas où le gouvernement d’un État étranger a conclu avec le gouvernement du Canada un arrangement réciproque en vue d’accepter, en remplacement des brevets d’aptitude délivrés par cet État, les brevets d’aptitude délivrés sous le régime de la présente partie, le ministre peut ordonner, sous réserve des conditions qu’il peut imposer, que le brevet d’aptitude étranger soit accepté en remplacement du brevet d’aptitude prévu par la présente partie, s’il est convaincu que les exigences afférentes au premier brevet sont égales ou supérieures à celles afférentes au second. Suspension ou révocation (2) Le brevet ainsi accepté peut, seulement en ce qui concerne sa validité au Canada, être suspendu ou révoqué par le ministre comme s’il s’agissait d’un document maritime canadien; le brevet ainsi suspendu ou révoqué doit être remis par le titulaire au ministre, qui le renvoie aussitôt à l’autorité qui l’a délivré. 42 (1) Subsections 90(1) to (3) of the French version of the Act are replaced by the following: Communication de renseignements au ministre 90 (1) Le médecin ou l’optométriste qui a des motifs raisonnables de croire que l’état du titulaire d’un brevet est susceptible de constituer un risque pour la sécurité maritime fait part sans délai de son avis motivé au ministre. Devoir du patient (2) Quiconque est titulaire d’un brevet assorti de normes médicales ou optométriques est tenu de dévoiler ce fait avant l’examen au médecin ou à l’optométriste. Utilisation des renseignements (3) Le ministre peut utiliser ces renseignements pour décider si le titulaire du brevet satisfait aux exigences afférentes à celui-ci. (2) Subsection 90(5) of the French version of the Act is replaced by the following: Présomption (5) Le titulaire du brevet est présumé avoir consenti à la communication au ministre des renseignements portant sur son état dans les circonstances qui sont mentionnées au paragraphe (1). 43 (1) Paragraph 100(c) of the French version of the Act is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Canada Shipping Act, 2001 Sections 43-45 c) déterminer les catégories et classes de certificats et de brevets qui peuvent être délivrés relativement aux postes à bord des bâtiments — ou catégories de bâtiments — canadiens; (2) Paragraphs 100(e) and (f) of the French version of the Act are replaced by the following: e) régir la façon de déterminer si une personne satisfait aux exigences visées à l’alinéa b) ou si un candidat possède les qualifications requises aux termes de l’alinéa d) pour l’obtention d’une catégorie ou classe de brevet d’aptitude ou d’autre document maritime canadien; f) préciser les modalités dont sont assortis les brevets d’aptitude et autres documents maritimes canadiens délivrés sous le régime de la présente partie; 2001, c. 27 Immigration and Refugee Protection Act 44 Section 121 of the Immigration and Refugee Protection Act is replaced by the following: Aggravating factors 121 The court, in determining the penalty to be imposed under section 120, shall take into account whether (a) bodily harm or death occurred, or the life or safety of any person was endangered, as a result of the commission of the offence; (b) the commission of the offence was for the benefit of, at the direction of or in association with a criminal organization; (c) the commission of the offence was for profit, whether or not any profit was realized; and (d) a person was subjected to humiliating or degrading treatment, including with respect to work or health conditions or sexual exploitation as a result of the commission of the offence. 45 (1) Paragraph 148(1)(a) of the Act is replaced by the following: (a) not carry to Canada a person who is prescribed or does not hold a prescribed document, or whom an officer directs not to be carried; 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Immigration and Refugee Protection Act Sections 45-47 (2) Paragraph 148(1)(d) of the French version of the Act is replaced by the following: d) fournir les documents, rapports et renseignements réglementaires; (3) Paragraph 148(1)(f) of the French version of the Act is replaced by the following: f) sur avis d’un agent ou dans les cas prévus par règlement faire sortir du Canada la personne qu’il a amenée ou fait amener; (4) Subsection 148(2) of the French version of the Act is replaced by the following: Saisie (2) Tout ou partie de la sûreté qu’il a fournie et tout véhicule ou autre marchandise réglementaire dont il est le propriétaire ou l’exploitant peuvent, si l’intéressé contrevient aux obligations prévues par la présente loi, être retenus, saisis ou confisqués au profit de Sa Majesté du chef du Canada. 2002, c. 7 Yukon Act 46 Paragraph 34(1)(a) of the Yukon Act is replaced by the following: (a) the consolidated financial statements present fairly, in all material respects and in accordance with accounting principles recommended for the public sector by that organization or its successor, the financial position of the Yukon Government as at the end of the fiscal year and the results of its operations in, and changes in its financial position for, the fiscal year; and 47 (1) The portion of subsection 64(1) of the French version of the Act before paragraph (a) is replaced by the following: Garantie du Yukon 64 (1) Le gouvernement du Yukon s’engage à indemniser le gouvernement fédéral, ainsi que les employés et mandataires de celui-ci, de tous les frais et dépens — y compris les sommes versées pour transiger ou pour exécuter un jugement — entraînés par toute réclamation ou tout recours exercés contre eux et découlant de faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires à l’égard : 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Yukon Act Sections 47-48 (2) Subsections 64(2) and (3) of the French version of the Act are replaced by the following: Indemnisation: obligations au titre de l’accord (2) Le gouvernement du Yukon s’engage à indemniser le gouvernement fédéral, ainsi que les employés et mandataires de celui-ci, de tous les frais et dépens — y compris les sommes versées pour transiger ou pour exécuter un jugement — entraînés par toute réclamation ou tout recours exercés contre eux et découlant d’un manquement de sa part ou de celle de ses employés et mandataires aux obligations qu’impose l’accord au gouvernement du Yukon relativement aux fonctionnaires fédéraux. Garantie envers les premières nations (3) Le gouvernement du Yukon s’engage à indemniser les premières nations, ainsi que les employés et mandataires de celles-ci, de tous les frais et dépens — y compris les sommes versées pour transiger ou pour exécuter un jugement — entraînés par toute réclamation ou tout recours exercés contre eux et découlant de faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires à l’égard de la remise en état de lieux effectuée, en conformité avec l’accord, sur les terres de ces premières nations. 48 (1) The portion of subsection 65(1) of the French version of the Act before paragraph (a) is replaced by the following: Garantie du gouvernement fédéral 65 (1) Le gouvernement fédéral s’engage à indemniser le gouvernement du Yukon, ainsi que les employés et mandataires de celui-ci, de tous les frais et dépens — y compris les sommes versées pour transiger ou pour exécuter un jugement — entraînés par toute réclamation ou tout recours exercés contre eux et découlant de faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires à l’égard : (2) Subsections 65(2) and (3) of the French version of the Act are replaced by the following: Garantie du gouvernement fédéral (2) Le gouvernement fédéral s’engage à indemniser le gouvernement du Yukon, ainsi que les employés et mandataires de celui-ci, de tous les frais et dépens — y compris les sommes versées pour transiger ou pour exécuter un jugement — entraînés par toute réclamation ou tout recours exercés contre eux et découlant de la prise de mesures au titre des articles 49 à 51 ou 55. 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Yukon Act Sections 48-51 Garantie envers les premières nations (3) Le gouvernement fédéral s’engage à indemniser les premières nations, ainsi que les employés et mandataires de celles-ci, de tous les frais et dépens — y compris les sommes versées pour transiger ou pour exécuter un jugement — entraînés par toute réclamation ou tout recours exercés contre eux et découlant de faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires à l’égard de la remise en état de lieux effectuée, en conformité avec l’accord, sur les terres de ces premières nations. 2002, c. 29 Species at Risk Act 49 Subsection 79(2) of the French version of the Species at Risk Act is replaced by the following: Réalisations escomptées (2) La personne détermine les effets nocifs du projet sur l’espèce et son habitat essentiel et, si le projet est réalisé, veille à ce que des mesures compatibles avec tout programme de rétablissement et tout plan d’action applicable soient prises en vue de les éviter ou de les amoindrir et les surveiller. 2005, c. 9; 2012, c. 19, s. 658 First Nations Fiscal Management Act 50 Subsection 41(2) of the First Nations Fiscal Management Act is replaced by the following: Appointment by AFOA Canada (2) AFOA Canada, or any other body prescribed by regulation, shall appoint up to three additional directors to hold office during pleasure for a term not exceeding five years. 2005, c. 34; 2013, c. 40, s. 205 Department of Employment and Social Development Act 51 The portion of subsection 71(1) of the Department of Employment and Social Development Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Department of Employment and Social Development Act Sections 51-53 Powers 71 (1) Subject to the regulations, the Minister may administer or enforce electronically the Acts, programs and activities referred to in paragraphs 70.1(a) to (e.1), (g) and (h), the Minister of Labour may administer or enforce electronically the Canada Labour Code and the Commission may administer or enforce electronically the Employment Insurance Act, including for the purposes of 2005, c. 47, s. 1 Wage Earner Protection Program Act 52 (1) The definition wages in subsection 2(1) of the Wage Earner Protection Program Act is replaced by the following: wages includes salaries, commissions, compensation for services rendered, vacation pay, termination pay, severance pay and any other amounts prescribed by regulation. (salaire) (2) The portion of paragraph (a) of the definition eligible wages in subsection 2(1) of the Act before subparagraph (i) is replaced by the following: (a) wages other than termination pay and severance pay that were earned during the longer of the following periods: (3) Paragraph (b) of the definition eligible wages in subsection 2(1) of the Act is replaced by the following: (b) termination pay and severance pay that relate to employment that ended during the period referred to in paragraph (a). (salaire admissible) 53 Subsection 7(1) of the Act is replaced by the following: Amount of payment 7 (1) The amount that may be paid under this Act to an individual is the amount of eligible wages owing to the individual up to a maximum of an amount equal to four times the maximum weekly insurable earnings under the Employment Insurance Act, less any amount prescribed by regulation. 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Jobs, Growth and Long-term Prosperity Act Sections 54-57 2012, c. 19 Jobs, Growth and Long-term Prosperity Act 54 Section 309 of the Jobs, Growth and Longterm Prosperity Act and the heading “Canadian Wheat Board Act” before it are repealed. 2014, c. 2, s. 2 Northwest Territories Act 55 Subsection 59(5) of the French version of the Northwest Territories Act is replaced by the following: Montant de l’indemnité (5) La personne ainsi choisie établit la valeur des améliorations par un moyen semblable à l’établissement de la valeur réelle juste de l’amélioration — au moment où le gouverneur en conseil reprend ou obtient, du fait de la renonciation du commissaire, la gestion et la maîtrise des terres —, déterminée conformément à la méthode de calcul de la valeur réelle juste des améliorations foncières prévue dans les lois de la législature d’application générale relatives aux évaluations de taxes foncières. Le montant de l’indemnité doit correspondre à cette valeur. 56 Paragraph (e) of the definition intérêt existant in section 68 of the French version of the Act is replaced by the following: e) tout permis qui : (i) soit est en vigueur à cette date et dont la délivrance était assujettie à la Loi sur les immeubles fédéraux et les biens réels fédéraux, (ii) soit est visé au sous-alinéa (i) et est renouvelé ou remplace un permis visé à ce sous-alinéa ou y succède, si le droit au renouvellement, au remplacement ou à la succession existait à cette date. 57 (1) The portion of subsection 73(1) of the French version of the Act before paragraph (a) is replaced by the following: Indemnisation par le gouvernement territorial 73 (1) Le gouvernement des Territoires du Nord-Ouest indemnise le gouvernement du Canada, ainsi que les employés et mandataires de celui-ci, des frais et dépens, notamment les sommes versées pour transiger ou pour exécuter un jugement, entraînés par toute réclamation ou tout recours exercés contre eux et découlant de 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Northwest Territories Act Sections 57-59 faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires et qui sont survenus : (2) Subsection 73(2) of the French version of the Act is replaced by the following: Indemnisation : obligations au titre de l’accord (2) Le gouvernement des Territoires du Nord-Ouest indemnise le gouvernement du Canada, ainsi que les employés et mandataires de celui-ci, des frais et dépens, notamment les sommes versées pour transiger ou pour exécuter un jugement, entraînés par toute réclamation ou tout recours exercés contre eux et découlant d’un manquement de sa part ou de celle de ses employés et mandataires aux obligations que lui impose l’accord relativement aux fonctionnaires fédéraux. 58 (1) The portion of subsection 74(1) of the French version of the Act before paragraph (a) is replaced by the following: Indemnisation par le gouvernement du Canada 74 (1) Le gouvernement du Canada indemnise le gouvernement des Territoires du Nord-Ouest, ainsi que les employés et mandataires de celui-ci, des frais et dépens, notamment les sommes versées pour transiger ou pour exécuter un jugement, entraînés par toute réclamation ou tout recours exercés contre eux et découlant de faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires et qui sont survenus : (2) Subsection 74(2) of the French version of the Act is replaced by the following: Indemnisation des parties autochtones (2) Le gouvernement du Canada indemnise la partie autochtone, ainsi que les employés et mandataires de celleci, des frais et dépens, notamment les sommes versées pour transiger ou pour exécuter un jugement, entraînés par toute réclamation ou tout recours exercés contre eux et découlant de faits — actes ou omissions — qui sont imputables à lui ou à ses employés et mandataires et qui sont survenus à l’égard de mesures d’assainissement exécutées au titre de l’accord sur des terres de cette partie autochtone visées par un règlement. 59 Section 75 of the French version of the Act is replaced by the following: Réserve : consentement écrit 75 En cas de règlement hors cour, les gouvernements du Canada et des Territoires du Nord-Ouest, les parties autochtones et leurs employés et mandataires ne peuvent être indemnisés en application des articles 73 ou 74 sans 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 1 Amendments Northwest Territories Act Sections 59-62 le consentement écrit du gouvernement qui est tenu d’indemniser. 2014, c. 39 Economic Action Plan 2014 Act, No. 2 60 Section 105 of the English version of the Economic Action Plan 2014 Act, No. 2 is amended by replacing the subsection 8.3(3) that it enacts with the following: Limitation (3) The prescribed date referred to in subsection (1) may not be later than the later of the date of registration of the design and 30 months after the filing date of the application for registration or, if a request for priority is made in respect of the application, the earliest filing date of a previously regularly filed application on which the request for priority is based. 61 Subsection 111(3) of the English version of the Act is amended by replacing the paragraph 25(g.2) that it enacts with the following: (g.2) respecting the recording or registration of transfers of applications for the registration of designs or transfers of registered designs; PART 2 Terminology Replacement of “Canadian Institute of Chartered Accountants” 62 Every reference to “Canadian Institute of Chartered Accountants” is replaced by “Chartered Professional Accountants of Canada” in the following provisions: (a) paragraph 12(3.1)(b) of the Pension Benefits Standards Act, 1985; (b) in the Trust and Loan Companies Act, (i) subsection 313(4), and (ii) subsection 328(2); (c) in the Bank Act, (i) subsection 308(4), (ii) subsection 323(2), 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 2 Terminology Section 62 (iii) subsection 840(4), and (iv) subsection 855(2); (d) in the Insurance Companies Act, (i) subsection 331(4), (ii) subsection 346(2), (iii) subsection 641(2), (iv) subsection 887(4), and (v) subsection 902(2); (e) in the Cooperative Credit Associations Act, (i) subsection 292(4), and (ii) subsection 307(2); (f) in the Nunavut Act, (i) section 45, and (ii) paragraph 46(1)(a); (g) subsection 23(3) of the Yukon Surface Rights Board Act; (h) paragraph 35(5)(i) of the Civil Air Navigation Services Commercialization Act; (i) in the Canada Pension Plan Investment Board Act, (i) subsection 39(5), and (ii) subsection 40(4); (j) subsection 26(2) of the Mackenzie Valley Resource Management Act; (k) subsection 35(5) of the Public Sector Pension Investment Board Act; (l) in the Yukon Act, (i) section 33, and (ii) the portion of subsection 34(1) before paragraph (a); (m) in the Nunavut Waters and Nunavut Surface Rights Tribunal Act, (i) subsection 32(2), and 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 2 Terminology Sections 62-63 (ii) subsection 114(2); (n) subsection 28(1) of the Yukon Environmental and Socio-economic Assessment Act; (o) in the First Nations Oil and Gas and Moneys Management Act, (i) sections 48 and 49, and (ii) subsection 50(1); (p) subsection 58(3) of the Pooled Registered Pension Plans Act; (q) subsection 39(2) of the Nunavut Planning and Project Assessment Act. Deletion of “but not limited to” 63 The English version of the following provisions is amended by striking out “but not limited to”: (a) the portion of paragraph 21(2)(f) of the International River Improvements Act before subparagraph (i); (b) the portion of paragraph 11.7(2)(f) of the Canada Wildlife Act before subparagraph (i); (c) the portion of paragraph 11.21(3)(f) of the Migratory Birds Convention Act, 1994 before subparagraph (i); (d) in the Canadian Environmental Protection Act, 1999, (i) the portion of the definition federal work or undertaking in subsection 3(1) before paragraph (a), (ii) the portion of subsection 47(1) before paragraph (a), (iii) subsection 65(3), (iv) the portion of subsection 91(5) before paragraph (a), (v) subparagraph 115(1)(a)(ii), 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 2 Terminology Sections 63-66 (vi) the portion of subsection 209(1) before paragraph (a), (vii) the portion of subsection 298(1) before paragraph (a), (viii) the portion of section 309 before paragraph (a), and (ix) the portion of section 325 before paragraph (a); (e) the portion of section 10.2 of the Species at Risk Act before paragraph (a); and (f) in the Antarctic Environmental Protection Act, (i) paragraph 26(1)(a), and (ii) the portion of paragraph 37.03(3)(f) before subparagraph (i). PART 3 Repeals 1986, c. 46 Maintenance of Ports Operations Act, 1986 64 The Maintenance of Ports Operations Act, 1986 is repealed. 1987, c. 40 Postal Services Continuation Act, 1987 65 The Postal Services Continuation Act, 1987 is repealed. 1991, c. 35 Postal Services Continuation Act, 1991 66 The Postal Services Continuation Act, 1991 is repealed. 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 3 Repeals West Coast Ports Operations Act, 1994 Sections 67-72 1994, c. 1 West Coast Ports Operations Act, 1994 67 The West Coast Ports Operations Act, 1994 is repealed. 1995, c. 2 West Coast Ports Operations Act, 1995 68 The West Coast Ports Operations Act, 1995 is repealed. 1995, c. 6 Maintenance of Railway Operations Act, 1995 69 The Maintenance of Railway Operations Act, 1995 is repealed. 1997, c. 34 Postal Services Continuation Act, 1997 70 The Postal Services Continuation Act, 1997 is repealed. 2007, c. 8 Railway Continuation Act, 2007 71 The Railway Continuation Act, 2007 is repealed. PART 4 Coordinating Amendments 2002, c. 7 72 (1) In this section, other Act means the Yukon Act. (2) If subparagraph 62(l)(ii) of this Act comes into force before section 72 of the other Act, then on the day on which that section 72 comes into force, the portion of subsection 34(1) of the other Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 4 Coordinating Amendments Sections 72-74 Annual audit 34 (1) The Auditor General of Yukon shall audit the accounts, including those related to the Yukon Consolidated Revenue Fund, and financial transactions of the Yukon Government in each fiscal year in accordance with auditing standards recommended by the Chartered Professional Accountants of Canada or its successor and shall express his or her opinion as to whether (3) If section 72 of the other Act comes into force on the same day as subparagraph 62(l)(ii) of this Act, then that section 72 is deemed to have come into force before that subparagraph 62(l)(ii). (4) If section 283 of the other Act comes into force before paragraph 62(g) of this Act, then that paragraph 62(g) is deemed never to have come into force and is repealed. (5) If section 283 of the other Act comes into force on the same day as paragraph 62(g) of this Act, then that paragraph 62(g) is deemed to have come into force before that section 283. Bill S-2 73 (1) Subsections (2) to (4) apply if Bill S-2, introduced in the 1st session of the 42nd Parliament and entitled the Strengthening Motor Vehicle Safety for Canadians Act (referred to in this section as the “other Act”) receives royal assent. (2) If section 8 of the other Act comes into force before section 17 of this Act, then that section 17 is deemed never to have come into force and is repealed. (3) If section 17 of this Act comes into force before section 8 of the other Act, then that section 8 is repealed. (4) If section 8 of the other Act comes into force on the same day as section 17 of this Act, then that section 17 is deemed never to have come into force and is repealed. Bill S-5 74 (1) Subsections (2) to (4) apply if Bill S-5, introduced in the 1st session of the 42nd Parliament and entitled An Act to amend the Tobacco Act and the Non-smokers’ Health Act and to make consequential amendments to other Acts (referred to in this section as the “other Act”) receives royal assent. 2015-2016-2017 Chapter 26: Miscellaneous Statute Law Amendment Act, 2017 PART 4 Coordinating Amendments Section 74 (2) If subsection 68(2) of the other Act comes into force before section 20 of this Act, then that section 20 is deemed never to have come into force and is repealed. (3) If section 20 of this Act comes into force before subsection 68(2) of the other Act, then that subsection 68(2) is repealed. (4) If subsection 68(2) of the other Act comes into force on the same day as section 20 of this Act, then that section 20 is deemed never to have come into force and is repealed. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 27 An Act respecting the preclearance of persons and goods in Canada and the United States ASSENTED TO DECEMBER 12, 2017 BILL C-23 SUMMARY This enactment implements the Agreement on Land, Rail, Marine, and Air Transport Preclearance between the Government of Canada and the Government of the United States of America (the Agreement), done at Washington on March 16, 2015, to provide for the preclearance in each country of travellers and goods bound for the other country. Part 1 of the enactment authorizes United States preclearance officers to conduct preclearance in Canada of travellers and goods bound for the United States and, among other things, it (a) authorizes a federal Minister to designate preclearance areas and preclearance perimeters in Canada, in which preclearance may take place; (b) provides United States preclearance officers with powers to facilitate preclearance; (c) establishes that the exercise of any power and performance of any duty or function by a United States preclearance officer is subject to Canadian law, including the Canadian Charter of Rights and Freedoms, the Canadian Bill of Rights and the Canadian Human Rights Act; (d) authorizes Canadian police officers and the officers of the Canada Border Services Agency to assist United States preclearance officers in the exercise of their powers and performance of their duties and functions; (e) allows a traveller bound for the United States to withdraw from the preclearance process, unless the traveller is detained under Part 1; and (f) limits the ability to request the extradition or provisional arrest of a current or former United States preclearance officer. Part 2 of the enactment provides for the preclearance in the United States, by Canadian officers, of travellers and goods bound for Canada. Among other things, Part 2 (a) specifies how the Immigration and Refugee Protection Act will apply to travellers bound for Canada who are in preclearance areas and preclearance perimeters in the United States, and extends the application of other Canadian legislation that relates to the entry of persons and importation of goods into Canada to those preclearance areas and preclearance perimeters; (b) authorizes the Governor in Council to make regulations adapting, restricting or excluding the application of provisions of the Immigration and Refugee Protection Act and that other Canadian legislation in preclearance areas and preclearance perimeters; (c) prevents, as required under the Agreement, the exercise of powers of Canadian officers under Canadian law with respect to questioning or interrogation, examination, search, seizure, forfeiture, detention and arrest in preclearance areas i Chapter 27: Preclearance Act, 2016 SUMMARY and preclearance perimeters, as similar powers will be conferred under the laws of the United States on Canadian officers; (d) allows a traveller bound for Canada to withdraw from the preclearance process, unless the traveller is detained under the laws of the United States; (e) deems an act or omission committed in a preclearance area or preclearance perimeter to be committed in Canada, if the act or omission would constitute, in Canada, an offence relating to the entry of persons or importation of goods into Canada; and (f) grants the Attorney General of Canada the exclusive authority to commence and conduct a prosecution of a Canadian officer with respect to an act or omission committed in the United States. Part 3 of the enactment makes related amendments to the Criminal Code to provide United States preclearance officers with an exemption from criminal liability under the Criminal Code and the Firearms Act with respect to the carriage of firearms and other regulated items. It also amends the Criminal Code to provide for a stay of proceedings against a United States preclearance officer when the Government of the United States provides notice under paragraph 14 of Article X of the Agreement. Part 3.1 of the enactment provides for an independent review relating to the administration and operation of the Preclearance Act, 2016. Part 4 of the enactment makes a consequential amendment to the Customs Act, repeals the Preclearance Act and contains the coming-into-force provision. 2015-2016-2017 ii TABLE OF PROVISIONS An Act respecting the preclearance of persons and goods in Canada and the United States Preamble Short Title 1 Preclearance Act, 2016 Interpretation and Application 2 Definitions Binding on Her Majesty Designation of Ministers 4 Act PART 1 Preclearance by the United States in Canada Definitions 5 Definitions Designation of Preclearance Areas and Preclearance Perimeters 6 Preclearance area Preclearance perimeter Modify or cancel Canadian law Powers, Duties and Functions in Preclearance Area and Preclearance Perimeter Preclearance 10 Preclearance powers, duties and functions Compliance with Canadian law Duties, taxes and fees Other Powers and Justification 13 Frisk search for dangerous thing Detention — offence Detention — public health Justification 2015-2016-2017 v Chapter 27: Preclearance Act, 2016 TABLE OF PROVISIONS Preclearance Area Access 17 Limited access Obligations 18 Traveller’s obligations Powers, Duties and Functions 19 Only in preclearance area General powers Frisk search — concealed goods Strip search Monitored bowel movement X-ray or body cavity search Right to be taken before senior officer Search by officer of same sex 26.1 Situation referred to in certain provisions Preclearance Perimeter 27 Traveller’s obligations Powers of preclearance officer Traveller may withdraw from preclearance Traveller’s obligations No preclearance on withdrawal Powers — suspected offence Limitation re information Withdrawal Seizure and Forfeiture 34 Preclearance officer Police Officers and Border Services Officers 35 Request for assistance — police officer Powers and obligations — peace officers False or deceptive statements Obstruction of officer Offences and Punishment Civil Liability and Immunity 39 Claim against the United States Decision not reviewable Reciprocity 2015-2016-2017 v Chapter 27: Preclearance Act, 2016 TABLE OF PROVISIONS Limitation on Requests for Extradition or Provisional Arrest 42 Request to third-party state Regulations and Orders 43 Regulations Amendment of schedule Authorization — access PART 2 Preclearance by Canada in the United States Definitions 46 Definitions Preclearance 47 Application of preclearance legislation Application of Immigration and Refugee Protection Act Limitation Proceeds of crime — reporting Detained goods Detention and Delivery under Laws of the United States 52 For greater certainty Exemption from Compliance on Entry into Canada 53 Exempt from further compliance Withdrawal 54 Traveller may withdraw from preclearance Traveller’s obligations Powers, duties and functions on withdrawal Regulations 57 Governor in Council Offences — Acts or Omissions in Preclearance Area or Preclearance Perimeter 58 Deemed commission in Canada Jurisdiction — Offence by Canadian Officer 59 Primary criminal jurisdiction 2015-2016-2017 vi Chapter 27: Preclearance Act, 2016 TABLE OF PROVISIONS Exclusive authority PART 3 Related Amendments to the Criminal Code 61 PART 3.1 Independent Review 62.1 Review and report PART 4 Consequential Amendment, Repeal and Coming into Force Consequential Amendment to the Customs Act 63 Repeal 64 Repeal Coming into Force 65 Order in council SCHEDULE 2015-2016-2017 vi 64-65-66 ELIZABETH II CHAPTER 27 An Act respecting the preclearance of persons and goods in Canada and the United States [Assented to 12th December, 2017] Preamble Whereas the Agreement on Land, Rail, Marine, and Air Transport Preclearance between the Government of Canada and the Government of the United States of America (the “Agreement”) was done at Washington on March 16, 2015; Whereas the Agreement builds on the Agreement on Air Transport Preclearance between the Government of Canada and the Government of the United States of America, done at Toronto on January 18, 2001; Whereas the Agreement imposes reciprocal obligations on both countries to facilitate travel and trade while enhancing the security of both countries; Whereas, under the Agreement, United States preclearance officers may be authorized to conduct preclearance in Canada of travellers and goods bound for the United States and, as part of preclearance, to exercise powers, and perform duties and functions, under the laws of the United States on the admission of travellers and goods into the United States; Whereas the exercise of any power and performance of any duty or function under United States law in Canada is subject to Canadian law, including the Canadian Charter of Rights and Freedoms, the Canadian Bill of Rights and the Canadian Human Rights Act; And whereas, under the Agreement, Canadian border services officers and other Canadian public officers may be authorized to conduct preclearance in the United States of travellers and goods bound for Canada and, as part of preclearance, to exercise powers and perform duties and functions under Canadian law concerning the admission of travellers and goods into Canada; 2015-2016-2017 Chapter 27: Preclearance Act, 2016 Short Title Sections 1-3 Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Preclearance Act, 2016. Interpretation and Application Definitions 2 (1) The following definitions apply in this Act. Agreement means the Agreement on Land, Rail, Marine, and Air Transport Preclearance between the Government of Canada and the Government of United States of America, done at Washington on March 16, 2015. (Accord) goods includes (a) currency and monetary instruments; and (b) for greater certainty, animals and plants and their products, conveyances and any document in any form. (biens) Minister means, in relation to section 6, 7 or 8, subsection 11(2) or 34(2), section 41 or 45 or subsection 59(1), a Minister designated under subsection 4(2) for the purpose of that provision or, in the absence of such a designation, the Minister who is responsible for this Act. (ministre) For greater certainty (2) For greater certainty, travellers or goods en route towards the United States or Canada on their way to another country are, for the purposes of this Act, bound for the United States or Canada, as the case may be. Definition of Act of Parliament (3) For greater certainty, in this Act Act of Parliament means an Act of the Parliament of Canada. Binding on Her Majesty 3 This Act is binding on Her Majesty in right of Canada or a province. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 Designation of Ministers Sections 4-5 Designation of Ministers Act 4 (1) The Governor in Council may, by order, designate a federal Minister as the Minister responsible for this Act. Provision (2) The Governor in Council may, by order, designate one or more federal Ministers as the Minister or Ministers for the purpose of section 6, 7 or 8, subsection 11(2) or 34(2), section 41 or 45 or subsection 59(1). More than one Minister (3) If more than one Minister is designated under subsection (2) for the purpose of a provision, the Governor in Council must, by order, specify the circumstances in which each Minister is to exercise the powers and perform the duties or functions set out in the provision. PART 1 Preclearance by the United States in Canada Definitions Definitions 5 The following definitions apply in this Part. biometric information means information that is derived from a person’s measurable physical characteristics. (renseignements biométriques) border services officer means a person who is (a) employed by the Canada Border Services Agency in the administration or enforcement of the Customs Act, the Customs Tariff or the Special Import Measures Act; (b) designated under subsection 9(2) of the Canada Border Services Agency Act; or (c) designated or authorized under section 6 of the Immigration and Refugee Protection Act. (agent des services frontaliers) facility means, except in the case of a medical facility, a facility in a preclearance area or preclearance perimeter 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Definitions Sections 5-7 or a facility in which there is a preclearance area or preclearance perimeter. (installation) frisk search means a search by hand or technical means of a person’s clothed body. (fouille par palpation) preclearance means the exercise of powers and the performance of duties and functions under the laws of the United States by a preclearance officer under section 10. (précontrôle) preclearance officer means a person authorized by the Government of the United States to conduct preclearance in Canada. (contrôleur) strip search means a visual inspection of a person’s unclothed or partially clothed body. (fouille à nu) Designation of Preclearance Areas and Preclearance Perimeters Preclearance area 6 (1) The Minister may designate an area in a location set out in the schedule as a preclearance area. The Minister may provide that the designated area is a preclearance area only during specified periods and in specified circumstances. Other preclearance areas (2) If the Minister has designated a preclearance area under subsection (1) and a conveyance — that is intended to be used to transport travellers or goods that are undergoing preclearance — is stationed in preparation for departure to the United States such that all or part of the conveyance is outside that preclearance area, the following are also preclearance areas during the period in which the conveyance is so stationed: (a) the conveyance; (b) a corridor between the preclearance area designated under subsection (1) and the conveyance; and (c) any other conveyance that is used to transport travellers or goods between the preclearance area designated under subsection (1) and the conveyance. Preclearance perimeter 7 The Minister may designate as a preclearance perimeter an area that is adjacent to where a conveyance referred to in paragraph 6(2)(a) will be stationed in preparation for departure to the United States, but the 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Designation of Preclearance Areas and Preclearance Perimeters Sections 7-11 designated area is only a preclearance perimeter during the period in which such a conveyance is so stationed. Modify or cancel 8 The Minister may modify or cancel anything that he or she has done under subsection 6(1) or section 7. Canadian law 9 For greater certainty, Canadian law applies, and may be administered and enforced, in preclearance areas and preclearance perimeters. Powers, Duties and Functions in Preclearance Area and Preclearance Perimeter Preclearance Preclearance powers, duties and functions 10 (1) Subject to subsection (2), a preclearance officer may, in a preclearance area or preclearance perimeter, exercise the powers and perform the duties and functions conferred on them under the laws of the United States on importation of goods, immigration, agriculture and public health and safety, in order to determine whether a traveller or goods bound for the United States is or are admissible into that country and, if applicable, to permit them to enter that country. Limitation (2) A preclearance officer is not permitted to exercise any powers of questioning or interrogation, examination, search, seizure, forfeiture, detention or arrest that are conferred under the laws of the United States. Compliance with Canadian law 11 (1) A preclearance officer must exercise their powers and perform their duties and functions under this Act in accordance with Canadian law, including the Canadian Charter of Rights and Freedoms, the Canadian Bill of Rights and the Canadian Human Rights Act. Training — preclearance officer (2) The Minister must, in accordance with paragraph 2 of Article IX of the Agreement, provide every preclearance officer with training on the Canadian law that applies to the exercise of the preclearance officer’s powers and the performance of their duties and functions under this Act. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Powers, Duties and Functions in Preclearance Area and Preclearance Perimeter Preclearance Sections 12-14 Duties, taxes and fees 12 (1) For greater certainty, in the course of preclearing travellers and goods, a preclearance officer may collect duties, taxes and fees in accordance with the laws of the United States on importation of goods, immigration, agriculture and public health and safety. Penalties or sanctions (2) For greater certainty, in the course of preclearing travellers and goods, a preclearance officer may impose administrative monetary penalties or other civil sanctions in accordance with those laws. Exception — Canadian prosecution (3) However, no such penalty or other sanction is to be imposed if a prosecution for an offence under an Act of Parliament is instituted in Canada with respect to the act or omission that would give rise to it. If such a prosecution is instituted after a penalty or sanction has been imposed, the penalty or sanction is a nullity and any payment in respect of it must be reimbursed. Other Powers and Justification Frisk search for dangerous thing 13 (1) A preclearance officer may, in a preclearance area or preclearance perimeter, conduct a frisk search of a person if the officer has reasonable grounds to suspect that the person has on their person anything that would present a danger to human life or safety. Power to detain things (2) The preclearance officer may detain anything found during the search that would present a danger to human life or safety. Detention — offence 14 (1) If a preclearance officer has reasonable grounds to believe that a person has committed an offence under an Act of Parliament, the officer may, in a preclearance area or preclearance perimeter, (a) detain the person; and (b) detain any goods they have on their person and any goods under their control, if the goods may be evidence of the offence. Delivery (2) The preclearance officer must, as soon as feasible, deliver the person and any detained goods into the custody of a police officer or border services officer. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Powers, Duties and Functions in Preclearance Area and Preclearance Perimeter Other Powers and Justification Sections 15-17 Detention — public health 15 (1) If a preclearance officer has reasonable grounds to believe that a traveller bound for the United States poses a risk of significant harm to public health, the officer may, in a preclearance area or preclearance perimeter, detain the traveller. Delivery (2) The preclearance officer must, as soon as feasible, deliver the traveller into the custody of a police officer, a border services officer or a person designated as a quarantine officer under subsection 5(2) of the Quarantine Act. Justification 16 (1) A preclearance officer is, if they act on reasonable grounds, justified in doing what they are required or authorized to do under this Act and in using as much force as is necessary for that purpose. Limitation (2) However, a preclearance officer is not justified in using force that is intended or is likely to cause death or grievous bodily harm unless the officer has reasonable grounds to believe that it is necessary for self-preservation or the preservation of anyone under the officer’s protection from death or grievous bodily harm. Preclearance Area Access Limited access 17 Only the following persons may enter a preclearance area: (a) travellers bound for the United States; (b) preclearance officers; (c) police officers and border services officers, for the purposes of exercising powers and performing duties and functions under this Part; (d) persons who are authorized by the Minister under section 45 or by regulation; and (e) subject to any regulations, persons who are authorized by the operator of a facility. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Preclearance Area Obligations Sections 18-20 Obligations Traveller’s obligations 18 (1) A traveller bound for the United States who is in a preclearance area must (a) have in their possession identification that is issued by the federal government, a provincial or local government or a foreign government and that, except in the circumstances that may be prescribed by regulation, contains their photograph; and (b) on entry, immediately report to a preclearance officer. Obligations subject to withdrawal (2) Unless they withdraw from preclearance under section 29, a traveller bound for the United States who is in a preclearance area must (a) answer truthfully any question that is asked by a preclearance officer in accordance with this Act; (b) as directed by a preclearance officer, present any goods in the traveller’s possession, open or unpack the goods, and unload a conveyance for which they are responsible or open any part of it; (c) comply with any other direction given to the traveller in accordance with this Act by a preclearance officer, police officer or border services officer; and (d) comply with any other requirement that is prescribed by regulation. Obligations of other persons (3) A person, other than a traveller bound for the United States, who is in a preclearance area must comply with any requirement that is prescribed by regulation. Powers, Duties and Functions Only in preclearance area 19 A preclearance officer may exercise the powers, and perform the duties and functions, set out in sections 20 to 26 only in a preclearance area. General powers 20 (1) A preclearance officer may, for the purpose of conducting preclearance, (a) question a traveller bound for the United States; 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Preclearance Area Powers, Duties and Functions Sections 20-22 (b) collect information from a traveller bound for the United States; (c) examine, search and detain goods bound for the United States, including by taking samples of the goods in reasonable amounts; (d) direct a person to report to a preclearance officer, identify themselves, and state their reason for being in a preclearance area; and (e) direct a traveller, or a person not authorized to be in a preclearance area, to leave a preclearance area. Biometric information (2) In the course of conducting preclearance, a preclearance officer may, for the purpose of verifying the identity of a traveller bound for the United States, collect biometric information from the traveller, other than from the traveller’s bodily substances. However, the officer is not permitted to collect biometric information unless notification that travellers may withdraw from preclearance is provided in the preclearance area, through signage or other means of communication. Frisk search — concealed goods 21 A preclearance officer may, for the purpose of conducting preclearance, conduct a frisk search of a traveller bound for the United States if the officer has reasonable grounds to suspect that the traveller has on their person concealed goods. Strip search 22 (1) A preclearance officer may, for the purpose of a strip search, detain a traveller bound for the United States if the officer has reasonable grounds to suspect that (a) the traveller has on their person concealed goods or anything that would present a danger to human life or safety; and (b) the search is necessary for the purpose of conducting preclearance. Request — border services officer (2) On detaining a traveller for the purpose of a strip search, the preclearance officer must immediately request that a border services officer conduct the search and advise of the grounds on which the traveller was detained. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Preclearance Area Powers, Duties and Functions Sections 22-23 Strip search — border services officer (3) A border services officer may conduct the strip search if they have reasonable grounds to suspect that (a) the traveller has on their person concealed goods or anything that would present a danger to human life or safety; and (b) the strip search is necessary for the purpose of conducting preclearance. Strip search — preclearance officer (4) A preclearance officer may conduct the strip search, in a manner consistent with section 11, if they have reasonable grounds to suspect that the conditions under paragraphs (1)(a) and (b) are still met and if (a) a border services officer declines to conduct it; (b) the Canada Border Services Agency advises the preclearance officer that no border services officer is able to conduct the search within a reasonable time; or (c) the Agency and the preclearance officer agree that a border services officer is to conduct the search within a specified period, but no border services officer arrives within that period. Observation by preclearance officer (5) A strip search conducted under subsection (3) may be observed by a preclearance officer who is of the same sex as the traveller or, if no such preclearance officer is available, by any suitable person of the same sex as the traveller that a preclearance officer may authorize. Monitored bowel movement 23 (1) A preclearance officer may, for the purpose of a monitored bowel movement, detain a traveller bound for the United States if the officer has reasonable grounds to suspect that (a) the traveller is concealing goods inside their body; (b) the monitoring would permit the finding or retrieval of the goods; and (c) the monitoring is necessary for the purpose of conducting preclearance. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Preclearance Area Powers, Duties and Functions Sections 23-24 Delivery to border services officer (2) On detaining a traveller for the purpose of a monitored bowel movement, the preclearance officer must deliver the traveller into the custody of a border services officer as soon as feasible and advise that officer of the grounds on which the traveller was detained. Monitoring by border services officer (3) A border services officer may conduct a monitored bowel movement if they have reasonable grounds to suspect that (a) the traveller is concealing goods inside their body; (b) the monitoring would permit the finding or retrieval of the goods; and (c) the monitoring is necessary for the purpose of conducting preclearance. X-ray or body cavity search 24 (1) A preclearance officer or border services officer may request that a traveller bound for the United States undergo an x-ray search or a body cavity search if the officer has reasonable grounds to suspect that (a) the traveller is concealing goods inside their body; (b) the x-ray search would permit the finding or identification of the goods or the body cavity search would permit the finding or retrieval of the goods; and (c) the search is necessary for the purpose of conducting preclearance. Traveller’s consent (2) Despite paragraph 18(2)(c), no x-ray search or body cavity search may be conducted unless the traveller consents. Transfer to medical facility (3) A police officer or border services officer may transfer the traveller to a medical facility for the search. A preclearance officer is not permitted to do so. Person conducting search (4) Only an x-ray technician may, with the consent of a physician, conduct an x-ray search, and only a physician may conduct a body cavity search. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Preclearance Area Powers, Duties and Functions Sections 24-26.1 Danger to traveller’s health or safety (5) Regardless of whether the traveller consents to an xray search or body cavity search, (a) if a preclearance officer has reasonable grounds to suspect that there is a clear and substantial danger to the traveller’s health or safety, the officer may deliver the traveller to a police officer or border services officer so that the police officer or border services officer may transfer the traveller to a medical facility; and (b) if a border services officer has reasonable grounds to suspect that there is such a danger, the officer may transfer the traveller to a medical facility. Right to be taken before senior officer 25 (1) A preclearance officer or border services officer must, before conducting a search of a traveller under any of sections 21 to 23, inform the traveller of their right to be taken before the officer’s senior officer and, if the traveller requests it, must take the traveller before the senior officer. Senior officer’s agreement (2) If the traveller is brought before a senior officer, the search is permitted only if that officer agrees that the preclearance officer or border services officer, as the case may be, is authorized under the applicable section to conduct the search. Search by officer of same sex 26 (1) Neither a preclearance officer nor a border services officer is permitted to conduct a search under any of sections 21 to 23 of a person of the opposite sex. If no such officer of the same sex as the person is available, the officer may authorize any suitable person of the same sex to conduct the search. Appointed observer (2) A preclearance officer or border services officer may authorize a person of the same sex as the traveller being searched to observe a search under any of sections 21 to 23 that is conducted by the officer. Situation referred to in certain provisions 26.1 Regardless of any applicable recourse, a traveller may, in a prescribed manner, inform the Canadian senior officials of the Preclearance Consultative Group established under the Agreement of any situation referred to in sections 22, 23 and 24, subsection 31(2) and section 32 of this Act. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Preclearance Perimeter Sections 27-28 Preclearance Perimeter Traveller’s obligations 27 (1) A traveller bound for the United States who is in a preclearance perimeter must comply with (a) any direction given to the traveller in accordance with this Act by a preclearance officer, police officer or border services officer; and (b) any requirement that is prescribed by regulation. Obligations of other persons (2) A person, other than a traveller bound for the United States, who is in a preclearance perimeter must (a) as directed by a preclearance officer, identify themselves and state their reason for being in the preclearance perimeter; and (b) comply with any requirement that is prescribed by regulation. Powers of preclearance officer 28 In a preclearance perimeter, a preclearance officer may, for the purpose of conducting preclearance or of maintaining the security of or control over the border between Canada and the United States, (a) direct that a person identify themselves and state their reason for being in the preclearance perimeter; (b) question a traveller bound for the United States; (c) direct a traveller bound for the United States to go to a preclearance area; (d) examine the exterior of a conveyance referred to in paragraph 6(2)(a); (e) examine, search and detain goods — including by taking samples of the goods in reasonable amounts — that are bound for the United States and that are to be loaded onto such a conveyance; and (f) return goods bound for the United States to a preclearance area, or direct a person with control of the goods to do so. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Withdrawal Sections 29-31 Withdrawal Traveller may withdraw from preclearance 29 Unless they are detained under this Act, every traveller bound for the United States may withdraw from preclearance and, subject to section 30, may leave a preclearance area or preclearance perimeter without departing for the United States. Traveller’s obligations 30 A traveller who withdraws from preclearance must (a) answer truthfully any question asked by a preclearance officer under paragraph 31(2)(b) for the purpose of identifying the traveller or of determining their reason for withdrawing; and (b) comply with any other direction given by a preclearance officer in accordance with subsection 31(2). No preclearance on withdrawal 31 (1) A preclearance officer is, after a traveller has indicated that he or she is withdrawing from preclearance, permitted to exercise only the powers, and perform only the duties and functions, under this section and sections 13 to 15 and 32 with respect to the traveller. Powers on withdrawal (2) A preclearance officer may, for the purpose of maintaining the security of or control over the border between Canada and the United States, exercise the following powers in a preclearance area or preclearance perimeter with respect to a traveller who is withdrawing from preclearance: (a) direct the traveller to identify themselves and to produce identification that contains their photograph and that is issued by the federal government, a provincial or local government or a foreign government; (b) question the traveller for the purposes of identifying them or determining their reason for withdrawing; (c) record and retain information obtained from the traveller under paragraph (a) or (b), including by making a copy of the traveller’s identification; (d) take and retain a photograph of the traveller, if the traveller has not produced identification that contains their photograph and allows their identity to be verified; (e) visually examine a conveyance used by the traveller and, if the conveyance transports goods on a 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Withdrawal Sections 31-32 commercial basis, open its cargo compartments to visually examine the contents; (f) examine, using means or devices that are minimally intrusive, a conveyance used by the traveller, without opening or entering it, if the preclearance officer has reasonable grounds to suspect that the traveller could compromise the security of or control over the border. Limitation (3) A preclearance officer may exercise the powers set out in subsection (2) only to the extent that doing so would not unreasonably delay the traveller’s withdrawal. Powers — suspected offence 32 (1) If a preclearance officer has reasonable grounds to suspect that a traveller who is withdrawing from preclearance has committed an offence under an Act of Parliament, the officer may, for the purpose of maintaining the security of or control over the border, exercise any of the following powers in a preclearance area or preclearance perimeter: (a) direct the traveller to identify themselves and to produce identification that contains their photograph and that is issued by the federal government, a provincial or local government or a foreign government; (b) take and retain a photograph of the traveller, if the traveller has not produced identification that contains their photograph and allows their identity to be verified; (c) question the traveller; (d) collect information from the traveller; (e) examine, search and detain goods in the traveller’s possession or control, including by taking samples of the goods in reasonable amounts; (f) conduct a frisk search of the traveller, if the officer also has reasonable grounds to suspect that the traveller has on their person concealed goods; and (g) detain the traveller for the purpose of a strip search, if the officer also has reasonable grounds to suspect that (i) the traveller has on their person concealed goods or anything that would present a danger to human life or safety, and 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Withdrawal Sections 32-34 (ii) the search is necessary for the purpose of maintaining the security of or control over the border. Strip search (2) A strip search referred to in paragraph (1)(g) may be conducted only in accordance with subsections 22(2) to (5) and sections 25 and 26, with the reference to “paragraphs (1)(a) and (b)” in subsection 22(4) to be read as a reference to “subparagraphs 32(1)(g)(i) and (ii)”. Detention of traveller (3) The exercise of any of the powers set out in subsection (1) with respect to a traveller constitutes a detention of the traveller. Limitation re information 33 (1) No person is permitted to disclose or use information obtained from a traveller after their withdrawal from preclearance except for the purpose of maintaining the security of or control over the border between Canada and the United States or as otherwise authorized by law. Limitation re biometric information (2) No person is permitted to (a) collect any biometric information in respect of a traveller after the traveller has indicated that they are withdrawing from preclearance; (b) use a photograph of the traveller obtained under paragraph 31(2)(d) or 32(1)(b) to produce biometric information; or (c) disclose such a photograph for the purpose of producing biometric information. Seizure and Forfeiture Preclearance officer 34 (1) Subject to subsection (2), in a preclearance area or preclearance perimeter, a preclearance officer may seize, including as forfeit, or accept if they are abandoned, goods that are detained by a preclearance officer under paragraph 20(1)(c) or 28(e) to the extent, and in a manner, that is consistent with the laws of the United States on importation of goods, immigration, agriculture and public health and safety. Transfer to Canadian officer (2) If the Minister has provided notice that the importation into Canada, exportation from Canada, possession or handling of goods of the type that are detained 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Seizure and Forfeiture Sections 34-35 contravenes Canadian law or if the preclearance officer suspects that the detained goods constitute evidence of an offence under Canadian law, the preclearance officer must transfer the detained goods to a person who is prescribed by regulation, if the goods are prescribed by regulation, or, if the goods are not so prescribed, to a police officer or border services officer. Return of goods to preclearance officer (3) If a person or officer to whom goods are transferred under subsection (2) subsequently returns the goods to a preclearance officer, the preclearance officer may seize them, including as forfeit, or accept them if they have been abandoned. Return or disposal of goods (4) Subject to any regulations, a preclearance officer may, to the extent and in a manner that is consistent with the laws referred to in subsection (1), return any goods that they have seized or dispose of any goods that they have seized or accepted. Police Officers and Border Services Officers Request for assistance — police officer 35 (1) At the request of a preclearance officer, a police officer may, for the purpose of maintaining public peace, (a) remove from a preclearance area a traveller, or a person not authorized to be in the preclearance area, who refuses to comply with a direction given under paragraph 20(1)(e); (b) bring to a preclearance area a traveller who refuses to comply with a direction given under paragraph 28(c); and (c) assist the preclearance officer in the exercise of their powers, and performance of their duties and functions, under this Part. Border services officer (2) At the request of a preclearance officer, a border services officer may assist the preclearance officer in conducting a frisk search under section 13. Frisk search (3) A border services officer or police officer may conduct a frisk search of a traveller if they have reasonable grounds to suspect that the traveller has anything on their person that would present a danger to human life or safety in the following circumstances: 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Police Officers and Border Services Officers Sections 35-38 (a) in the case of a border services officer, before conducting a strip search under subsection 22(3) or a monitored bowel movement under subsection 23(3); (b) in the case of either officer, before transferring the traveller to a medical facility under subsection 24(3). Powers and obligations — peace officer 36 (1) A border services officer who is designated under subsection 163.4(1) of the Customs Act and who is exercising powers or performing duties or functions under this Part has, in relation to an offence under any Act of Parliament, the powers and obligations of a peace officer under sections 495 to 497 of the Criminal Code, and subsections 495(3) and 497(3) of that Act apply to the officer as if he or she were a peace officer. Power to detain (2) The officer who arrests a person in the exercise of the powers conferred under subsection (1) may detain the person until the person can be delivered into the custody of a police officer. Offences and Punishment False or deceptive statements 37 (1) Every person who makes an oral or written statement to a preclearance officer, police officer or border services officer, with respect to the preclearance of a person or any goods, that the person knows to be false or deceptive or to contain information that the person knows to be false or deceptive is guilty of an offence punishable on summary conviction and is liable to a maximum fine of $5,000. No imprisonment (2) Despite subsection 787(2) of the Criminal Code, a term of imprisonment is not to be imposed for default of payment of a fine imposed under subsection (1). Obstruction of officer 38 Every person who resists or wilfully obstructs a preclearance officer, police officer or border services officer in the exercise of the officer’s powers or the performance of their duties and functions under this Part, or a person lawfully acting in aid of such an officer, 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Offences and Punishment Sections 38-42 (a) is guilty of an indictable offence and liable to imprisonment for a term of not more than two years; or (b) is guilty of an offence punishable on summary conviction. Civil Liability and Immunity Claim against the United States 39 (1) An action or other proceeding of a civil nature, in which the United States is not immune under the State Immunity Act from the jurisdiction of a court in Canada, may be brought against the United States in respect of anything that is, or is purported to be, done or omitted by a preclearance officer in the exercise of their powers or the performance of their duties and functions under this Part. Preclearance officer’s immunity (2) No action or other proceeding of a civil nature may be brought against a preclearance officer in respect of anything that is done or omitted in the exercise of their powers or the performance of their duties and functions under this Part. For greater certainty (3) For greater certainty, a preclearance officer is not a servant of the Crown for the purposes of the Crown Liability and Proceedings Act. Decision not reviewable 40 No decision of a preclearance officer to refuse to conduct preclearance, or to refuse the admission of persons or goods into the United States in accordance with the laws of the United States, is subject to judicial review in Canada. Reciprocity 41 The Governor in Council may, on the recommendation of the Minister, by order, restrict any immunity or privileges under section 39 or 40 with respect to an action or other proceeding of a civil nature if, in the opinion of the Governor in Council, the immunity or privileges exceed those accorded to Canada by the United States. Limitation on Requests for Extradition or Provisional Arrest Request to third-party state 42 No request under section 78 of the Extradition Act for the extradition or provisional arrest of a current or former preclearance officer may, without the consent of 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Limitation on Requests for Extradition or Provisional Arrest Sections 42-44 the Government of the United States, be made to a State or entity other than the United States with respect to an act or omission committed by the officer, if the Government of the United States has provided notice under paragraph 14 of Article X of the Agreement that it is exercising primary criminal jurisdiction over the act or omission. Regulations and Orders Regulations 43 (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Part, including regulations (a) authorizing persons or classes of persons to enter a preclearance area and establishing conditions of entry for those persons; (b) imposing conditions on the exercise of the authority of the operator of a facility to authorize the entry of persons into a preclearance area under paragraph 17(e), or prohibiting the operator of a facility from authorizing a person to enter a preclearance area; (c) respecting obligations on the operator of a facility, including with respect to access of people and goods to preclearance areas and preclearance perimeters, the security of preclearance areas and preclearance perimeters, the demarcation of preclearance areas and preclearance perimeters, and signage or other means of communication with respect to preclearance areas and preclearance perimeters; (d) respecting the disposal of seized, forfeited or abandoned goods and the return of seized goods; and (e) prescribing anything that by this Part is to be prescribed by regulation. Different treatment (2) The regulations may distinguish between individual preclearance areas or individual preclearance perimeters and between classes of such areas or perimeters. Amendment of schedule 44 The Governor in Council may, by order, amend the schedule by adding, amending or deleting the reference to a location in which an area may be designated as a preclearance area or a preclearance perimeter. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 1 Preclearance by the United States in Canada Regulations and Orders Sections 45-46 Authorization — access 45 The Minister may, by order, authorize a person who, or class of persons that, is not otherwise authorized to do so to enter a preclearance area and establish conditions of entry for those persons. PART 2 Preclearance by Canada in the United States Definitions Definitions 46 The following definitions apply in this Part. border services officer means a person who is assigned to conduct preclearance in the United States and is (a) employed by the Canada Border Services Agency in the administration or enforcement of the Customs Act, the Customs Tariff or the Special Import Measures Act; (b) designated under subsection 9(2) of the Canada Border Services Agency Act; or (c) designated or authorized under section 6 of the Immigration and Refugee Protection Act. (agent des services frontaliers) other public officer means a person, other than a border services officer, who is designated or authorized to exercise powers or perform duties or functions under preclearance legislation described in paragraph (a) of the definition of that expression in this section, and who is assigned to conduct preclearance in the United States. (autre fonctionnaire) preclearance means the exercise of powers and the performance of duties and functions by a border services officer or other public officer under sections 47 to 51 and regulations made under paragraph 57(1)(a). (précontrôle) preclearance area means an area in the United States that is (a) designated by the Government of the United States as a preclearance area under the Agreement; and (b) designated as a customs office under section 5 of the Customs Act. (zone de précontrôle) 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Definitions Sections 46-47 preclearance legislation means (a) the provisions — of an Act of Parliament other than this Act, or of regulations made under such an Act — that apply in respect of the entry of persons or the importation of goods into Canada, including provisions relating to customs, agriculture or public health and safety; and (b) the provisions — of an Act of a provincial legislature, or of regulations made under such an Act — that authorize the collection by a border services officer of taxes, fees, mark-ups or other amounts. It does not include any provision that creates an offence or any provision of the Immigration and Refugee Protection Act or its regulations. (législation relative au précontrôle) preclearance perimeter means an area in the United States that is (a) designated by the Government of the United States as a preclearance perimeter under the Agreement; and (b) designated as a customs office under section 5 of the Customs Act. (périmètre de précontrôle) Preclearance Application of preclearance legislation 47 (1) Subject to the regulations, preclearance legislation applies to a traveller and goods bound for Canada in a preclearance area or preclearance perimeter as if the traveller had entered, and the goods had been imported into, Canada. Powers, duties and functions (2) Subject to section 49 and the regulations, a border services officer or other public officer may, in a preclearance area or preclearance perimeter, exercise the powers and perform the duties and functions that are conferred on the officer under preclearance legislation with respect to travellers and goods bound for Canada, as if the officer were in Canada. Refusal (3) A border services officer or other public officer may, in a preclearance area or preclearance perimeter, refuse to permit travellers to proceed, or goods to be taken, to Canada through the preclearance area or preclearance 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Preclearance Sections 47-48 perimeter if the entry of the traveller, or the importation of the goods, into Canada does not comply with preclearance legislation. For greater certainty (4) For greater certainty, a border services officer or other public officer in a preclearance area or preclearance perimeter may, to the extent they are permitted to do so under the powers, duties and functions that are conferred on them under preclearance legislation, (a) subject to subsection 49(4), impose an administrative monetary penalty or other civil sanction in accordance with preclearance legislation; and (b) collect any amounts — including duties, taxes and fees — owing under preclearance legislation. Sections 20 and 21 of Customs Act (5) For the purposes of sections 20 and 21 of the Customs Act, goods, as defined in section 2 of that Act, are to be treated as if they have been transported entirely within Canada if they are transported from a preclearance area or preclearance perimeter to a place in Canada over territory or waters outside Canada. Application of Immigration and Refugee Protection Act 48 (1) For greater certainty, a traveller in a preclearance area or preclearance perimeter who is seeking to enter Canada is, for the purposes of the Immigration and Refugee Protection Act, outside Canada. No claim for refugee protection (2) No claim for refugee protection under section 99 of the Immigration and Refugee Protection Act may be made in a preclearance area or preclearance perimeter. Powers, duties and functions (3) Subject to section 49 and the regulations, a border services officer may, in a preclearance area or preclearance perimeter, exercise the powers and perform the duties and functions specified in their designation or authorization under section 6 of the Immigration and Refugee Protection Act with respect to travellers bound for Canada. Preparation of report — inadmissibility (4) A border services officer may prepare a report setting out the relevant facts, and transmit it to the Minister of 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Preclearance Sections 48-49 Public Safety and Emergency Preparedness, if the officer is of the opinion that a foreign national or permanent resident in a preclearance area or preclearance perimeter is inadmissible on any ground of inadmissibility that is set out in the Immigration and Refugee Protection Act and that is prescribed by regulations made under subsection (7). Refusal to permit entrance (5) If the Minister of Public Safety and Emergency Preparedness is of the opinion that the report is well-founded, he or she may refuse to permit the foreign national — or, despite subsections 19(2) and 27(1) of the Immigration and Refugee Protection Act, the permanent resident — from entering Canada through the preclearance area or preclearance perimeter. Delegation of powers (6) Anything that may be done by the Minister of Public Safety and Emergency Preparedness under subsection (5) may be done by a border services officer who is so authorized in writing by that Minister, without proof of the authenticity of the authorization. Regulations (7) The Governor in Council may make regulations prescribing grounds of inadmissibility that are set out in the Immigration and Refugee Protection Act for the purpose of subsection (4). The regulations may distinguish between foreign nationals and permanent residents and between classes of foreign nationals. Definitions (8) In this section, foreign national and permanent resident have the same meanings as in subsection 2(1) of the Immigration and Refugee Protection Act. Limitation 49 (1) A border services officer or other public officer is not permitted, in a preclearance area or preclearance perimeter, to exercise any powers of questioning or interrogation, examination, search, seizure, forfeiture, detention or arrest, except to the extent that such powers are conferred on the officer by the laws of the United States. Exception (2) Subsection (1) does not apply to an examination within the meaning of the Immigration and Refugee Protection Act. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Preclearance Sections 49-52 Restriction (3) The authority that may designate or authorize a border services officer or other public officer to exercise powers, or perform duties or functions, under preclearance legislation or the Immigration and Refugee Protection Act may restrict or exclude the exercise of a power, or the performance of a duty or function, in a preclearance area or preclearance perimeter by the officer or by a class of border service officers or other public officers. No penalty or sanction — United States prosecution (4) No administrative monetary penalty or other civil sanction may be imposed with respect to an act or omission committed by a person in a preclearance area or preclearance perimeter if a prosecution for an offence is instituted in the United States with respect to the act or omission that would give rise to it. If such a prosecution is instituted after a penalty or sanction has been imposed, the penalty or sanction is a nullity and any payment in respect of it must be reimbursed. Proceeds of crime — reporting 50 If a border services officer transfers, to a United States federal, state, tribal or local law enforcement agent, currency or a monetary instrument that was retained in a preclearance area or preclearance perimeter as a result of the application of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the officer must, without delay, report the circumstances of the transfer to the President of the Canada Border Services Agency and to the Financial Transactions and Reports Analysis Centre of Canada. The officer’s report must be provided in the form and manner that are specified by the Centre. Detained goods 51 If goods are detained under the laws of the United States by a border services officer or other public officer in the course of preclearance, a border services officer or other public officer may, to the extent permitted by the laws of the United States, deal with those goods as if they were detained under the applicable preclearance legislation. Detention and Delivery under Laws of the United States For greater certainty 52 (1) For greater certainty, section 19 and subsection 27(1) of the Immigration and Refugee Protection Act do not operate so as to prevent a border services officer 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Detention and Delivery under Laws of the United States Sections 52-53 from, under the laws of the United States, detaining a person in a preclearance area or preclearance perimeter and delivering them into the custody of a United States federal, state, tribal or local law enforcement agent. Information (2) If a person or goods are detained under the laws of the United States in a preclearance area or preclearance perimeter by a border services officer and delivered into the custody of a United States federal, state, tribal or local law enforcement agent, a border services officer may disclose to the agent any information — including personal information, as defined in section 3 of the Privacy Act — that relates to the circumstances of that detention and delivery. Exemption from Compliance on Entry into Canada Exempt from further compliance 53 (1) If a traveller bound for Canada has fully met, in a preclearance area or preclearance perimeter, an obligation under preclearance legislation or under the Immigration and Refugee Protection Act that applies on entry into Canada, the traveller is exempt from again complying with that obligation once they enter Canada, unless a border services officer or other public officer requires the traveller to do so. Obligation under regulations (2) If a traveller bound for Canada has fully met, in a preclearance area or preclearance perimeter, an obligation under the regulations that is an adaptation of an equivalent obligation under preclearance legislation or under the Immigration and Refugee Protection Act that applies on entry into Canada, the traveller is exempt from complying with that equivalent obligation once they enter Canada, unless a border services officer or other public officer requires the traveller to do so. Officers (3) In this section, a reference to a “border services officer or other public officer” includes a reference to a person who is employed, designated or authorized as set out 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Exemption from Compliance on Entry into Canada Sections 53-57 in the definition border services officer or other public officer in section 46 but who has not been assigned to conduct preclearance in the United States. Withdrawal Traveller may withdraw from preclearance 54 (1) Despite any preclearance legislation and the Immigration and Refugee Protection Act, every traveller bound for Canada, unless they are detained, may withdraw from preclearance and may leave a preclearance area or preclearance perimeter without departing for Canada. For greater certainty (2) For greater certainty, despite any obligation that would otherwise apply under section 47, under the Immigration and Refugee Protection Act or under the regulations, a traveller who withdraws from preclearance is not required to answer any question asked of them for the purpose of conducting preclearance. Traveller’s obligations 55 Subject to the laws of the United States, a traveller who withdraws from preclearance must (a) answer truthfully any question asked by a border services officer for the purpose of identifying the traveller or of determining their reason for withdrawing; and (b) comply with any other direction made by a border services officer that such an officer is authorized to make under the laws of the United States when a traveller withdraws. Powers, duties and functions on withdrawal 56 After a traveller has indicated that he or she is withdrawing from preclearance, a border services officer or other public officer is not permitted to exercise any powers, or perform any duties or functions, other than those authorized under the laws of the United States when a traveller withdraws. Regulations Governor in Council 57 (1) The Governor in Council may make regulations (a) adapting, for the purpose of applying it in a preclearance area or preclearance perimeter, 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Regulations Sections 57-58 (i) any preclearance legislation described in paragraph (a) of the definition of that expression in section 46, or (ii) any provision of the Immigration and Refugee Protection Act or of regulations made under that Act; and (b) restricting or excluding the application of any such preclearance legislation or provision in a preclearance area or preclearance perimeter. Different treatment (2) The regulations made under subsection (1) may distinguish between individual preclearance areas or individual preclearance perimeters and between classes of such areas or perimeters. Offences — Acts or Omissions in Preclearance Area or Preclearance Perimeter Deemed commission in Canada 58 (1) A person is deemed to have committed an act or omission in Canada if the act or omission is committed in a preclearance area or preclearance perimeter and, had it been committed in Canada, would constitute (a) an offence, under any Act of Parliament other than the Immigration and Refugee Protection Act, that relates to the entry of persons or importation of goods into Canada; or (b) a conspiracy to commit, an attempt to commit, being an accessory after the fact in relation to, or any counselling in relation to, such an offence. Element of offence — entry or importation (2) For the purpose of determining whether an act or omission would constitute an offence referred to in paragraph (1)(a) or (b), (a) if an element of the offence is the entry of a person into Canada, a person who is a traveller bound for Canada and who enters a preclearance area or preclearance perimeter is considered to have entered Canada; and (b) if an element of the offence is the importation of goods into Canada, goods that are bound for Canada and that are brought into a preclearance area or 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Offences — Acts or Omissions in Preclearance Area or Preclearance Perimeter Sections 58-59 preclearance perimeter are considered to have been imported into Canada. Jurisdiction (3) If a person is alleged to have committed an act or omission that is deemed to have been committed in Canada under subsection (1), proceedings for an offence in respect of that act or omission may be commenced in any territorial division in Canada. The person may be tried and punished for that offence as if the offence had been committed in that territorial division. Previously tried in the United States (4) If a person is alleged to have committed an act or omission that is deemed to have been committed in Canada under subsection (1) and they have been tried and dealt with in the United States for an offence in respect of the act or omission so that, if they had been tried and dealt with in Canada, they would be able to plead autrefois acquit, autrefois convict or pardon, they are deemed to have been so tried and dealt with in Canada. For greater certainty (5) For greater certainty, sections 135 and 136 of the Immigration and Refugee Protection Act apply with respect to an act or omission committed in a preclearance area or preclearance perimeter. Jurisdiction — Offence by Canadian Officer Primary criminal jurisdiction 59 (1) The Attorney General of Canada is responsible for advising the Minister with respect to the exercise or waiver of primary criminal jurisdiction under Article X of the Agreement in relation to an act or omission committed in the United States by a border services officer or other public officer in the exercise of their powers, and performance of their duties and functions, under this Part. Additional factors (2) The Attorney General of Canada may, in providing advice with respect to the waiver of primary criminal jurisdiction under paragraphs 15 and 16 of Article X of the Agreement, consider the following factors in addition to those set out in that paragraph 16: (a) the severity of the sentence a border services officer or other public officer accused of an offence is likely, if convicted, to receive in Canada as compared to the United States; 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 2 Preclearance by Canada in the United States Jurisdiction — Offence by Canadian Officer Sections 59-61 (b) the impact with respect to evidence if proceedings are held in Canada as compared to the United States; (c) the impact on witnesses if proceedings are held in Canada as compared to the United States; (d) the jurisdiction that has the greater interest in prosecuting the border services officer or other public officer for the act or omission in question; and (e) any other factor that the Attorney General considers relevant. Exclusive authority 60 The Attorney General of Canada has exclusive authority to commence and conduct a prosecution or other criminal proceedings with respect to an act or omission committed in the United States by a border services officer or other public officer in the exercise of their powers, and performance of their duties and functions, under this Part, and for that purpose the Attorney General of Canada may exercise any of the powers, or perform any of the duties and functions, assigned under the Criminal Code to an Attorney General. PART 3 R.S., c. C-46 Related Amendments to the Criminal Code 61 The Criminal Code is amended by adding the following after section 117.07: Preclearance officers 117.071 Despite any other provision of this Act, but subject to section 117.1, no preclearance officer, as defined in section 5 of the Preclearance Act, 2016, is guilty of an offence under this Act or the Firearms Act by reason only that the preclearance officer (a) possesses a firearm, a prohibited weapon, a restricted weapon, a prohibited device or any prohibited ammunition in the course of or for the purpose of their duties or employment; (b) transfers or offers to transfer a firearm, a prohibited weapon, a restricted weapon, a prohibited device, any ammunition or any prohibited ammunition in the course of their duties or employment; 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 3 Related Amendments to the Criminal Code Sections 61-62 (c) exports or imports a firearm, a prohibited weapon, a restricted weapon, a prohibited device or any prohibited ammunition in the course of their duties or employment; or (d) fails to report the loss, theft or finding of any firearm, prohibited weapon, restricted weapon, prohibited device, ammunition, prohibited ammunition or explosive substance that occurs in the course of their duties or employment or the destruction of any such thing in the course of their duties or employment. 62 The Act is amended by adding the following after section 579: Instruction to stay 579.001 (1) The Attorney General or counsel instructed by him or her for that purpose shall, at any time after proceedings in relation to an act or omission of a preclearance officer, as defined in section 5 of the Preclearance Act, 2016, are commenced and before judgment, direct the clerk or other proper officer of the court to make an entry on the record that the proceedings are stayed by direction of the Attorney General if the Government of the United States has provided notice of the exercise of primary criminal jurisdiction under paragraph 14 of Article X of the Agreement. Stay (2) The clerk or other officer of the court shall make the entry immediately after being so directed, and on the entry being made the proceedings are stayed and any recognizance relating to the proceedings is vacated. Recommencement (3) The proceedings may be recommenced without laying a new information or preferring a new indictment, if the Attorney General or counsel instructed by him or her gives notice to the clerk or other officer of the court that (a) the Government of the United States has provided notice of waiver under paragraph 15 of Article X of the Agreement; or (b) the Government of the United States has declined, or is unable, to prosecute the accused and the accused has returned to Canada. Proceedings deemed never commenced (4) However, if the Attorney General or counsel does not give notice under subsection (3) on or before the first anniversary of the day on which the stay of proceedings was 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 3 Related Amendments to the Criminal Code Sections 62-64 entered, the proceedings are deemed never to have been commenced. Definition of Agreement (5) In this section, Agreement means the Agreement on Land, Rail, Marine, and Air Transport Preclearance between the Government of Canada and the Government of the United States of America, done at Washington on March 16, 2015. PART 3.1 Independent Review Review and report 62.1 Five years after this Act comes into force, the Minister must cause to be conducted an independent review of this Act, and its administration and operation, and must cause a report on the review to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the review is completed. PART 4 Consequential Amendment, Repeal and Coming into Force R.S., c. 1 (2nd Supp.) Consequential Amendment to the Customs Act 63 Subsection 107(5) of the Customs Act is amended by adding the following after paragraph (l.2): (l.3) a United States federal, state, tribal or local law enforcement agent, solely for the purpose of communicating the circumstances of detention and delivery referred to in subsection 52(2) of the Preclearance Act, 2016; Repeal Repeal 64 The Preclearance Act, chapter 20 of the Statutes of Canada, 1999, is repealed. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 PART 4 Consequential Amendment, Repeal and Coming into Force Coming into Force Section 65 Coming into Force Order in council 65 The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 27: Preclearance Act, 2016 SCHEDULE Locations in Canada in which Preclearance Areas and Preclearance Perimeters May Be Designated SCHEDULE (Subsection 6(1) and section 44) Locations in Canada in which Preclearance Areas and Preclearance Perimeters May Be Designated Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 33 A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures ASSENTED TO DECEMBER 14, 2017 BILL C-63 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures”. SUMMARY Part 1 implements certain income tax measures proposed in the March 22, 2017 budget by (a) removing the classification of the costs of drilling a discovery well as “Canadian exploration expenses”; (b) eliminating the ability for small oil and gas companies to reclassify up to $1 million of “Canadian development expenses” as “Canadian exploration expenses”; (c) revising the anti-avoidance rules for registered education savings plans and registered disability savings plans; (d) eliminating the use of billed-basis accounting by designated professionals; (e) providing enhanced tax treatment for eligible geothermal energy equipment; (f) extending the base erosion rules to foreign branches of Canadian insurers; (g) clarifying who has factual control of a corporation for income tax purposes; (h) introducing an election that would allow taxpayers to mark to market their eligible derivatives; (i) introducing a specific anti-avoidance rule that targets straddle transactions; (j) allowing tax-deferred mergers of switch corporations into multiple mutual fund trusts and allowing tax-deferred mergers of segregated funds; and (k) enhancing the protection of ecologically sensitive land donated to conservation charities and broadening the types of donations permitted. It also implements other income tax measures by (a) closing loopholes surrounding the capital gains exemption on the sale of a principal residence; (b) providing additional authority for certain tax purposes to nurse practitioners; i Chapter 33: Budget Implementation Act, 2017, No. 2 SUMMARY (c) ensuring that qualifying farmers and fishers selling to agricultural and fisheries cooperatives are eligible for the small business deduction; (d) extending the types of reverse takeover transactions to which the corporate acquisition of control rules apply; (e) improving the consistency of rules applicable for expenditures in respect of scientific research and experimental development; (f) ensuring that the taxable income of federal credit unions is allocated among provinces and territories using the same allocation formula as applicable to the taxable income of banks; (g) ensuring the appropriate application of Canada’s international tax rules; and (h) improving the accuracy and consistency of the income tax legislation and regulations. Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures confirmed in the March 22, 2017 budget by (a) introducing clarifications and technical improvements to the GST/HST rules applicable to certain pension plans and financial institutions; (b) revising the GST/HST rules applicable to pension plans so that they apply to pension plans that use master trusts or master corporations; (c) revising and modernizing the GST/HST drop shipment rules to enhance the effectiveness of these rules and introduce technical improvements; (d) clarifying the application of the GST/HST to supplies of municipal transit services to accommodate the modern ways in which those services are provided and paid for; and (e) introducing housekeeping amendments to improve the accuracy and consistency of the GST/HST legislation. It also implements a GST/HST measure announced on September 8, 2017 by revising the timing requirements for GST/HST rebate applications by public service bodies. Part 3 amends the Excise Act to ensure that beer made from concentrate on the premises where it is consumed is taxed in a manner that is consistent with other beer products. Part 4 amends the Federal-Provincial Fiscal Arrangements Act to allow the Minister of Finance on behalf of the Government of Canada, with the approval of the Governor in Council, to enter into coordinated cannabis taxation agreements with provincial governments. It also amends that Act to make related amendments. Part 5 enacts and amends several Acts in order to implement various measures. Division 1 of Part 5 amends the Bretton Woods and Related Agreements Act to update and clarify certain powers of the Minister of Finance in relation to the Bretton Woods institutions. Division 2 of Part 5 enacts the Asian Infrastructure Investment Bank Agreement Act which provides the required authority for 2015-2016-2017 ii Chapter 33: Budget Implementation Act, 2017, No. 2 SUMMARY Canada to become a member of the Asian Infrastructure Investment Bank. Division 3 of Part 5 provides for the transfer from the Minister of Finance to the Minister of Foreign Affairs of the responsibility for three international development financing agreements entered into between Her Majesty in Right of Canada and the International Finance Corporation. Division 4 of Part 5 amends the Canada Deposit Insurance Corporation Act to clarify the treatment of, and protections for, eligible financial contracts in a bank resolution process. It also makes consequential amendments to the Payment Clearing and Settlement Act. Division 5 of Part 5 amends the Bank of Canada Act to specify that the Bank of Canada may make loans or advances to members of the Canadian Payments Association that are secured by real property or immovables situated in Canada and to allow such loans and advances to be secured by way of an assignment or transfer of a right, title or interest in real property or immovables situated in Canada. It also amends the Canada Deposit Insurance Corporation Act to specify that the Bank of Canada and the Canada Deposit Insurance Corporation are exempt from stays even where obligations are secured by real property or immovables. Division 6 of Part 5 amends the Payment Clearing and Settlement Act in order to expand and enhance the oversight powers of the Bank of Canada by further strengthening the Bank’s ability to identify and respond to risks to financial market infrastructures in a proactive and timely manner. Division 7 of Part 5 amends the Northern Pipeline Act to permit the Northern Pipeline Agency to annually recover from any company with a certificate of public convenience and necessity issued under that Act an amount equal to the costs incurred by that Agency with respect to that company. Division 8 of Part 5 amends the Canada Labour Code in order to, among other things, (a) provide employees with a right to request flexible work arrangements from their employers; (b) provide employees with a family responsibility leave for a maximum of three days, a leave for victims of family violence for a maximum of ten days and a leave for traditional Aboriginal practices for a maximum of five days; and (c) modify certain provisions related to work schedules, overtime, annual vacation, general holidays and bereavement leave, in order to provide greater flexibility in work arrangements. Division 9 of Part 5 amends the Economic Action Plan 2015 Act, No. 1 to repeal the paragraph 167(1.2)(b) of the Canada Labour Code that it enacts, and to amend the related regulation-making provisions accordingly. Division 10 of Part 5 approves and implements the Canadian Free Trade Agreement entered into by the Government of Canada and the governments of each province and territory to reduce or eliminate barriers to the free movement of persons, goods, services and investments. It also makes related amendments to the Energy Efficiency Act in order to facilitate, with respect to energy-using products or classes of energy-using products, the harmonization of requirements set out in regulations with those of a jurisdiction. Finally, it makes consequential 2015-2016-2017 iv Chapter 33: Budget Implementation Act, 2017, No. 2 SUMMARY amendments to the Financial Administration Act, the Department of Public Works and Government Services Act and the Procurement Ombudsman Regulations and it repeals the Timber Marking Act and the Agreement on Internal Trade Implementation Act. Division 11 of Part 5 amends the Judges Act (a) to allow for the payment of annuities, in certain circumstances, to judges and their survivors and children, other than by way of grant of the Governor in Council; (b) to authorize the payment of salaries to the new Associate Chief Justice of the Court of Queen’s Bench of Alberta; and (c) to change the title of “senior judge” to “chief justice” for the superior trial courts of the territories. It also makes consequential amendments to other Acts. Division 12 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada. Division 13 of Part 5 amends the Financial Administration Act to authorize, in an increased number of cases, the entering into of contracts or other arrangements that provide for a payment if there is a sufficient balance to discharge any debt that will be due under them during the fiscal year in which they are entered into. 2015-2016-2017 v TABLE OF PROVISIONS A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures Short Title 1 Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) 106 PART 3 Excise Act 165 PART 4 Federal-Provincial Fiscal Arrangements Act 169 PART 5 Various Measures DIVISION 1 Bretton Woods and Related Agreements Act 172 DIVISION 2 Asian Infrastructure Investment Bank Agreement Act 176 Enactment of Act 2015-2016-2017 vi Chapter 33: Budget Implementation Act, 2017, No. 2 TABLE OF PROVISIONS An Act to provide for the membership of Canada in the Asian Infrastructure Investment Bank 1 Asian Infrastructure Investment Bank Agreement Act Definitions Approval of Agreement Acceptance of Agreement and implementation Amendment to schedule Depository Payments out of Consolidated Revenue Fund — Initial subscription DIVISION 3 International Development Financing Agreements 177 DIVISION 4 Canada Deposit Insurance Corporation Act 180 DIVISION 5 Bank of Canada Act 185 DIVISION 6 Payment Clearing and Settlement Act 188 DIVISION 7 Northern Pipeline Act 194 DIVISION 8 Canada Labour Code 195 DIVISION 9 Economic Action Plan 2015 Act, No. 1 217 2015-2016-2017 vi Chapter 33: Budget Implementation Act, 2017, No. 2 TABLE OF PROVISIONS DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements 219 Enactment of Canadian Free Trade Agreement Implementation Act An Act to implement the Canadian Free Trade Agreement Short Title 1 Canadian Free Trade Agreement Implementation Act Interpretation 2 Definitions Purpose 3 Purpose Her Majesty 4 Binding on Her Majesty General 5 Prohibition of private cause of action — section 12 or 14 For greater certainty Implementation of Agreement Approval of Agreement 7 Agreement approved Designation of Minister 8 Order designating Minister Orders Made Under Chapter Ten of Agreement 9 Orders of Federal Court Enforcement Orders final and binding Orders: suspending benefits or imposing retaliatory measures Orders of Governor in Council Committee on Internal Trade 13 Appointment of representative Annual budget 2015-2016-2017 ix Chapter 33: Budget Implementation Act, 2017, No. 2 TABLE OF PROVISIONS Panels, Committees and Working Groups 15 Rosters Representatives on committees and working groups Appointments 17 Appointments DIVISION 11 Judges Act 230 DIVISION 12 Business Development Bank of Canada Act 260 DIVISION 13 Financial Administration Act 261 SCHEDULE 2015-2016-2017 x 64-65-66 ELIZABETH II CHAPTER 33 A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures [Assented to 14th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Budget Implementation Act, 2017, No. 2. PART 1 Amendments to the Income Tax Act and to Related Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 (1) Subsection 10(14) of the Income Tax Act is repealed. (2) Section 10 of the Act is amended by adding the following before subsection (15): Work in progress — transitional (14.1) If paragraph 34(a) applies in computing a taxpayer’s income from a business for the last taxation year of the taxpayer that begins before March 22, 2017, then (a) for the purpose of computing the income of the taxpayer from the business, at the end of the first taxation year that begins after March 21, 2017, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 2 (i) the amount of the cost of the taxpayer’s work in progress is deemed to be one-fifth of the amount of its cost determined without reference to this paragraph, and (ii) the amount of the fair market value of the taxpayer’s work in progress is deemed to be one-fifth of the amount of its fair market value determined without reference to this paragraph; (b) for the purpose of computing the income of the taxpayer from the business, at the end of the second taxation year that begins after March 21, 2017, (i) the amount of the cost of the taxpayer’s work in progress is deemed to be two-fifths of the amount of its cost determined without reference to this paragraph, and (ii) the amount of the fair market value of the taxpayer’s work in progress is deemed to be two-fifths of the amount of its fair market value determined without reference to this paragraph; (c) for the purpose of computing the income of the taxpayer from the business, at the end of the third taxation year that begins after March 21, 2017, (i) the amount of the cost of the taxpayer’s work in progress is deemed to be three-fifths of the amount of its cost determined without reference to this paragraph, and (ii) the amount of the fair market value of the taxpayer’s work in progress is deemed to be threefifths of the amount of its fair market value determined without reference to this paragraph; and (d) for the purpose of computing the income of the taxpayer from the business, at the end of the fourth taxation year that begins after March 21, 2017, (i) the amount of the cost of the taxpayer’s work in progress is deemed to be four-fifths of the amount of its cost determined without reference to this paragraph, and (ii) the amount of the fair market value of the taxpayer’s work in progress is deemed to be four-fifths of the amount of its fair market value determined without reference to this paragraph. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 2-3 (3) Subsection 10(14.1) of the Act, as enacted by subsection (2), is repealed. (4) Subsections (1) and (3) come into force on January 1, 2024. (5) Subsection (2) applies to taxation years ending after March 21, 2017. 3 (1) The Act is amended by adding the following after section 10: Mark-to-market election 10.1 (1) Subsection (4) applies to a taxpayer in respect of a taxation year and subsequent taxation years if the taxpayer elects to have subsection (4) apply to the taxpayer and has filed that election in prescribed form on or before its filing-due date for the taxation year. Revocation (2) The Minister may, on application by the taxpayer in prescribed form, grant permission to the taxpayer to revoke its election under subsection (1). The revocation applies to each taxation year of the taxpayer that begins after the day on which the taxpayer is notified in writing that the Minister concurs with the revocation, on such terms and conditions as are specified by the Minister. Subsequent election (3) Notwithstanding subsection (1), if a taxpayer has, under subsection (2), revoked an election, any subsequent election under subsection (1) shall result in subsection (4) applying to the taxpayer in respect of each taxation year that begins after the day on which the prescribed form in respect of the subsequent election is filed by the taxpayer. Application (4) If this subsection applies to a taxpayer in respect of a taxation year, (a) if the taxpayer is a financial institution (as defined in subsection 142.2(1)) in the taxation year, each eligible derivative held by the taxpayer at any time in the taxation year is, for the purpose of applying the provisions of this Act and with such modifications as the context requires, deemed to be mark-to-market property (as defined in subsection 142.2(1)) of the taxpayer for the taxation year; and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 3 (b) in any other case, subsection (6) applies to the taxpayer in respect of each eligible derivative held by the taxpayer at the end of the taxation year. Definition of eligible derivative (5) For the purposes of this section, an eligible derivative, of a taxpayer for a taxation year, means a swap agreement, a forward purchase or sale agreement, a forward rate agreement, a futures agreement, an option agreement or a similar agreement, held at any time in the taxation year by the taxpayer, if (a) the agreement is not a capital property, a Canadian resource property, a foreign resource property or an obligation on account of capital of the taxpayer; (b) either (i) the taxpayer has produced audited financial statements prepared in accordance with generally accepted accounting principles in respect of the taxation year, or (ii) if the taxpayer has not produced audited financial statements described in subparagraph (i), the agreement has a readily ascertainable fair market value; and (c) where the agreement is held by a financial institution (as defined in subsection 142.2(1)), the agreement is not a tracking property (as defined in subsection 142.2(1)), other than an excluded property (as defined in subsection 142.2(1)), of the financial institution. Deemed disposition (6) If this subsection applies to a taxpayer in respect of each eligible derivative held by the taxpayer at the end of a taxation year, for each eligible derivative held by the taxpayer at the end of the taxation year, the taxpayer is deemed (a) to have disposed of the eligible derivative immediately before the end of the year and received proceeds or paid an amount, as the case may be, equal to its fair market value at the time of disposition; and (b) to have reacquired, or reissued or renewed, the eligible derivative at the end of the year at an amount equal to the proceeds or the amount, as the case may be, determined under paragraph (a). 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 3 Election year — gains and losses (7) If a taxpayer holds, at the beginning of its first taxation year in respect of which an election referred to in subsection (1) applies (in this subsection referred to as the “election year”), an eligible derivative and, in the taxation year immediately preceding the election year, the taxpayer did not compute its profit or loss in respect of that eligible derivative in accordance with a method of profit computation that produces a substantially similar effect to subsection (6), then (a) the taxpayer is deemed (i) to have disposed of the eligible derivative immediately before the beginning of the election year and received proceeds or paid an amount, as the case may be, equal to its fair market value at that time, and (ii) to have reacquired, or reissued or renewed, the eligible derivative at the beginning of the election year at an amount equal to the proceeds or the amount, as the case may be, determined under subparagraph (i); (b) the profit or loss that would arise (determined without reference to this paragraph) on the deemed disposition in subparagraph (a)(i) (i) is deemed not to arise in the taxation year immediately preceding the election year, and (ii) is deemed to arise in the taxation year in which the taxpayer disposes of the eligible derivative (otherwise than because of paragraphs (6)(a) or 142.5(2)(a)); and (c) for the purpose of applying subsection 18(15) in respect of the disposition of the eligible derivative referred to in subparagraph (b)(ii), the profit or loss deemed to arise because of that subparagraph is included in determining the amount of the transferor’s loss, if any, from the disposition. Default realization method (8) If subsection (4) does not apply to a taxpayer referred to in paragraph (4)(b) in respect of a taxation year, a method of profit computation that produces a substantially similar effect to subsection (6) shall not be used for the purpose of computing the taxpayer’s income from a business or property in respect of a swap agreement, a forward purchase or sale agreement, a forward rate agreement, a futures agreement, an option agreement or a similar agreement for the taxation year. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 3-4 Interpretation (9) For the purposes of subsections (4) to (7), if an agreement that is an eligible derivative of a taxpayer is not a property of the taxpayer, the taxpayer is deemed (a) to hold the eligible derivative at any time while the taxpayer is a party to the agreement; and (b) to have disposed of the eligible derivative when it is settled or extinguished in respect of the taxpayer. (2) Subsection (1) applies to taxation years that begin after March 21, 2017. 4 (1) Subsection 12(1) of the Act is amended by adding the following after paragraph (d.1): (d.2) any amount deducted under paragraph 20(1)(m.3) as a reserve in computing the taxpayer’s income for the immediately preceding taxation year; (2) Subparagraphs 12(1)(z.7)(i) and (ii) of the Act are replaced by the following: (i) if the taxpayer acquires a property under a derivative forward agreement in the year, the portion of the amount by which the fair market value of the property at the time it is acquired by the taxpayer exceeds the cost to the taxpayer of the property that is attributable to an underlying interest other than an underlying interest referred to in subparagraphs (b)(i) to (iii) of the definition derivative forward agreement in subsection 248(1), or (ii) if the taxpayer disposes of a property under a derivative forward agreement in the year, the portion of the amount by which the proceeds of disposition (within the meaning assigned by subdivision c) of the property exceeds the fair market value of the property at the time the agreement is entered into by the taxpayer that is attributable to an underlying interest other than an underlying interest referred to in clauses (c)(i)(A) to (C) of the definition derivative forward agreement in subsection 248(1). (3) Subsection (1) applies in respect of bonds issued after 2000. (4) Subsection (2) applies to acquisitions and dispositions of property that occur after September 15, 2016. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 5 (1) Paragraph 18(12)(b) of the Act is replaced by the following: (b) if the conditions set out in subparagraph (a)(i) or (ii) are met, the amount for the work space that is deductible in computing the individual’s income for the year from the business shall not exceed the individual’s income for the year from the business, computed without reference to the amount and section 34.1; and (2) Paragraph 18(14)(c) of the Act is replaced by the following: (c) the disposition is not a disposition that is deemed to have occurred by subsection 10.1(6) or (7), section 70, subsection 104(4), section 128.1, paragraph 132.2(3)(a) or (c) or subsection 138(11.3) or 149(10); (3) Paragraph 18(14)(c) of the Act, as enacted by subsection (2), is replaced by the following: (c) the disposition is not a disposition that is deemed to have occurred by subsection 10.1(6) or (7), section 70, subsection 104(4), section 128.1, paragraph 132.2(3)(a) or (c) or subsection 138(11.3) or 138.2(4) or 149(10); (4) Section 18 of the Act is amended by adding the following after subsection (16): Definitions (17) The following definitions apply in this subsection and subsections (18) to (23). offsetting position, in respect of a particular position of a person or partnership (in this definition referred to as the “holder”), means one or more positions that (a) are held by (i) the holder, (ii) a person or partnership that does not deal at arm’s length with, or is affiliated with, the holder (in this subsection and subsections (20), (22) and (23) referred to as the “connected person”), or (iii) for greater certainty, by any combination of the holder and one or more connected persons; (b) have the effect, or would have the effect if each of the positions held by a connected person were held by the holder, of eliminating all or substantially all of the holder’s risk of loss and opportunity for gain or profit in respect of the particular position; and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 (c) if held by a connected person, can reasonably be considered to have been held with the purpose of obtaining the effect described in paragraph (b). (position compensatoire) position, of a person or partnership, means one or more properties, obligations or liabilities of the person or partnership, if (a) each property, obligation or liability is (i) a share in the capital stock of a corporation, (ii) an interest in a partnership, (iii) an interest in a trust, (iv) a commodity, (v) foreign currency, (vi) a swap agreement, a forward purchase or sale agreement, a forward rate agreement, a futures agreement, an option agreement or a similar agreement, (vii) a debt owed to or owing by the person or partnership that, at any time, (A) is denominated in a foreign currency, (B) would be described in paragraph 7000(1)(d) of the Income Tax Regulations if that paragraph were read without reference to the words “other than one described in paragraph (a), (b) or (c)”, or (C) is convertible into or exchangeable for an interest, or for civil law a right, in any property that is described in any of subparagraphs (i) to (iv), (viii) an obligation to transfer or return to another person or partnership a property identical to a particular property described in any of subparagraphs (i) to (vii) that was previously transferred or lent to the person or partnership by that other person or partnership, or (ix) an interest, or for civil law a right, in any property that is described in any of subparagraphs (i) to (vii); and (b) it is reasonable to conclude that, if there is more than one property, obligation or liability, each of them is held in connection with each other. (position) 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 successor position, in respect of a position (in this definition referred to as the “initial position”), means a particular position if (a) the particular position is an offsetting position in respect of a second position; (b) the second position was an offsetting position in respect of the initial position that was disposed of at a particular time; and (c) the particular position was entered into during the period that begins 30 days before, and ends 30 days after, the particular time. (position remplaçante) unrecognized loss, in respect of a position of a person or partnership at a particular time in a taxation year, means the loss, if any, that would be deductible in computing the income of the person or partnership for the year with respect to the position if it were disposed of immediately before the particular time at its fair market value at the time of disposition. (perte non constatée) unrecognized profit, in respect of a position of a person or partnership at a particular time in a taxation year, means the profit, if any, that would be included in computing the income of the person or partnership for the year with respect to the position if it were disposed of immediately before the particular time at its fair market value at the time of disposition. (bénéfice non constaté) Application of subsection (19) (18) Subject to subsection (20), subsection (19) applies in respect of a disposition of a particular position by a person or partnership (in this subsection and subsections (19), (20) and (22) referred to as the “transferor”), if 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 (a) the disposition is not a disposition that is deemed to have occurred by section 70, subsection 104(4), section 128.1 or subsection 138(11.3) or 149(10); (b) the transferor is not a financial institution (as defined in subsection 142.2(1)), a mutual fund corporation or a mutual fund trust; and (c) the particular position was, immediately before the disposition, not a capital property, or an obligation or liability on account of capital, of the transferor. Straddle losses (19) If this subsection applies in respect of a disposition of a particular position by a transferor, the portion of the transferor’s loss, if any, from the disposition of the particular position that is deductible in computing the transferor’s income for a particular taxation year is the amount determined by the formula A+B−C where A is (a) if the particular taxation year is the taxation year in which the disposition occurs, the amount of the loss determined without reference to this subsection (which is, for greater certainty, subject to subsection (15)), and (b) in any other taxation year, nil; B is (a) if the disposition occurred in a preceding taxation year, the amount determined for C in respect of the disposition for the immediately preceding taxation year, and (b) in any other case, nil; and C is the lesser of (a) the amount determined for A for the taxation year in which the disposition occurs, and (b) the amount determined by the formula D − (E + F) where D is the total of all amounts each of which is the amount of unrecognized profit at the end of the particular taxation year in respect of (i) the particular position, (ii) positions that are offsetting positions in respect of the particular position (or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 would be, to the extent that there is no successor position in respect of the particular position, if the particular position continued to be held by the transferor), (iii) successor positions in respect of the particular position (for this purpose, a successor position in respect of a position includes a successor position that is in respect of a successor position in respect of the position), and (iv) positions that are offsetting positions in respect of any successor position referred to in subparagraph (iii) (or would be, if any such successor position continued to be held by the holder), E is the total of all amounts each of which is the amount of unrecognized loss at the end of the particular taxation year in respect of positions referred to in subparagraphs (i) to (iv) of the description of D, and F is the total of all amounts each of which is an amount determined by the formula G−H where G is the amount determined for A for the taxation year in which the disposition occurs in respect of any position that was disposed of prior to the disposition of the particular position, if (i) the particular position was a successor position in respect of that position (for this purpose, a successor position in respect of a position includes a successor position that is in respect of a successor position in respect of the position), and (ii) that position was (A) an offsetting position in respect of the particular position, (B) an offsetting position in respect of a position in respect of which the particular position was a successor position (for this purpose, a successor position in respect of a position includes a successor position that is in respect of a successor position in respect of the position), or (C) the particular position, and H 2015-2016-2017 is the total of all amounts each of which is, in respect of a position described in G, Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 an amount determined under the first formula in this subsection for the particular taxation year or a preceding taxation year. Exceptions (20) Subsection (19) does not apply in respect of a particular position of a transferor if (a) it is the case that (i) either the particular position, or the offsetting position in respect of the particular position, consists of (A) commodities that the holder of the position manufactures, produces, grows, extracts or processes, or (B) debt that the holder of the position incurs in the course of a business that consists of one or any combination of the activities described in clause (A), and (ii) it can reasonably be considered that the position not described in subparagraph (i) — the particular position if the offsetting position is described in subparagraph (i) or the offsetting position if the particular position is described in that subparagraph — is held to reduce the risk, with respect to the position described in subparagraph (i), from (A) in the case of a position described in clause (i)(A), price changes or fluctuations in the value of currency with respect to the goods described in clause (i)(A), or (B) in the case of a position described in clause (i)(B), fluctuations in interest rates or in the value of currency with respect to the debt described in clause (i)(B); (b) the transferor or a connected person (in this paragraph referred to as the “holder”) continues to hold a position — that would be an offsetting position in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 respect of the particular position if the particular position continued to be held by the transferor — throughout a 30-day period beginning on the date of disposition of the particular position, and at no time during the period (i) is the holder’s risk of loss or opportunity for gain or profit with respect to the position reduced in any material respect by another position entered into or disposed of by the holder, or (ii) would the holder’s risk of loss or opportunity for gain or profit with respect to the position be reduced in any material respect by another position entered into or disposed of by a connected person, if the other position were entered into or disposed of by the holder; or (c) it can reasonably be considered that none of the main purposes of the series of transactions or events, or any of the transactions or events in the series, of which the holding of both the particular position and offsetting position are part, is to avoid, reduce or defer tax that would otherwise be payable under this Act. Application (21) For the purposes of subsections (17) to (23), (a) if a position of a person or partnership is not a property of the person or partnership, the person or partnership is deemed (i) to hold the position at any time while it is a position of the person or partnership, and (ii) to have disposed of the position when the position is settled or extinguished in respect of the person or partnership; (b) a disposition of a position is deemed to include a disposition of a portion of the position; (c) a position held by one or more persons or partnerships referred to in paragraph (a) of the definition offsetting position in subsection (17) is deemed to be an offsetting position in respect of a particular position of a person or partnership if (i) there is a high degree of negative correlation between changes in value of the position and the particular position, and (ii) it can reasonably be considered that the principal purpose of the series of transactions or events, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 or any of the transactions in the series, of which the holding of both the position and the particular position are part, is to avoid, reduce or defer tax that would otherwise be payable under this Act; and (d) one or more positions held by one or more persons or partnerships referred to in paragraph (a) of the definition offsetting position in subsection (17) are deemed to be a successor position in respect of a particular position of a person or partnership if (i) a portion of the particular position was disposed of at a particular time, (ii) the position is, or the positions include, as the case may be, a position that consists of the portion of the particular position that was not disposed of (in this paragraph referred to as the “remaining portion of the particular position”), (iii) where there is more than one position, the position or positions that do not consist of the remaining portion of the particular position were entered into during the period that begins 30 days before, and ends 30 days after, the particular time, (iv) the position is, or the positions taken together would be, as the case may be, an offsetting position in respect of a second position (within the meaning of the definition successor position in subsection (17)), (v) the second position was an offsetting position in respect of the particular position, and (vi) it can reasonably be considered that the principal purpose of the series of transactions or events, or any of the transactions in the series, of which the disposition of a portion of the particular position and the holding of one or more positions are part, is to avoid, reduce or defer tax that would otherwise be payable under this Act. Different taxation years (22) Subsection (23) applies if 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 5 (a) at any time in a particular taxation year of a transferor, a position referred to in any of subparagraphs (ii) to (iv) of the description of D in subsection (19) (in this subsection and subsection (23) referred to as the “gain position”) is held by a connected person; (b) the connected person disposes of the gain position in the particular taxation year; and (c) the taxation year of the connected person in which the disposition referred to in paragraph (b) occurs ends after the end of the particular taxation year. Different taxation years (23) If this subsection applies, for the purposes of the definition unrecognized profit in subsection (17) and subsection (19), the portion of the profit, if any, realized from the disposition of the gain position referred to in paragraph (22)(b) that is determined by the following formula is deemed to be unrecognized profit in respect of the gain position until the end of the taxation year of the connected person in which the disposition occurs: A × B/C where A is the amount of the profit otherwise determined; B is the number of days in the taxation year of the connected person in which the disposition referred to in paragraph (22)(b) occurs that are after the end of the particular taxation year; and C is the total number of days in the taxation year of the connected person in which the disposition referred to in paragraph (22)(b) occurs. (5) Subsection (1) applies to the 2011 and subsequent taxation years. (6) Subsection (2) applies to taxation years that begin after March 21, 2017. (7) Subsection (3) applies to taxation years that begin after 2017. (8) Subsection (4) applies in respect of a position (as defined in subsection 18(17) of the Act, as enacted by subsection (4)) of a person or partnership if (a) the position is acquired, entered into, renewed or extended, or becomes owing, by the person or partnership after March 21, 2017; or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 5-6 (b) an offsetting position (as defined in subsection 18(17) of the Act, as enacted by subsection (4)) in respect of the position is acquired, entered into, renewed or extended, or becomes owing, by the person or partnership or a connected person (within the meaning of subsection 18(17) of the Act, as enacted by subsection (4)) after March 21, 2017. 6 (1) Subsection 20(1) of the Act is amended by adding the following after paragraph (m.2): (m.3) the unamortized amount at the end of the year in respect of the amount that was received in excess of the principal amount of a bond (in this paragraph referred to as the “premium”) received by the issuer in the year, or a previous year, for issuing the bond (in this paragraph referred to as the “new bond”) if (i) the terms of the new bond are identical to the terms of bonds previously issued by the taxpayer (in this paragraph referred to as the “old bonds”), except for the date of issuance and total principal amount of the bonds, (ii) the old bonds were part of an issuance (in this paragraph referred to as the “original issuance”) of bonds by the taxpayer, (iii) the interest rate on the old bonds was reasonable at the time of the original issuance, (iv) the new bond is issued on the re-opening of the original issuance, (v) the amount of the premium at the time of issuance of the new bond is reasonable, and (vi) the amount of the premium has been included in the taxpayer’s income for the year or a previous taxation year; (2) Clauses (i)(A) and (B) of the description of A in paragraph 20(1)(xx) of the Act are replaced by the following: (A) if the taxpayer acquires a property under the agreement in the year or a preceding taxation year, the portion of the amount by which the cost to the taxpayer of the property exceeds the fair market value of the property at the time it is acquired by the taxpayer that is attributable to an underlying interest other than an underlying interest referred to 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 6-8 in subparagraphs (b)(i) to (iii) of the definition derivative forward agreement in subsection 248(1), or (B) if the taxpayer disposes of a property under the agreement in the year or a preceding taxation year, the portion of the amount by which the fair market value of the property at the time the agreement is entered into by the taxpayer exceeds the proceeds of disposition (within the meaning assigned by subdivision c) of the property that is attributable to an underlying interest other than an underlying interest referred to in clauses (c)(i)(A) to (C) of the definition derivative forward agreement in subsection 248(1), and (3) Subsection (1) applies in respect of bonds issued after 2000. (4) Subsection (2) applies in respect of acquisitions and dispositions of property that occur after September 15, 2016. 7 (1) Paragraph 34(a) of the Act is replaced by the following: (a) if the taxpayer so elects in the taxpayer’s return of income under this Part for the year and the year begins before March 22, 2017, there shall not be included any amount in respect of work in progress at the end of the year; and (2) Section 34 of the Act, as amended by subsection (1), is repealed. (3) Subsection (1) applies to taxation years ending after March 21, 2017. (4) Subsection (2) comes into force on January 1, 2024. 8 (1) Subclause 37(8)(a)(ii)(B)(II) of the English version of the Act is replaced by the following: (II) an expenditure of a current nature for the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer, (2) Subsection 37(11) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 8-9 Filing requirement (11) A prescribed form must be filed by a taxpayer with the Minister in respect of any expenditure, that would be incurred by the taxpayer in a taxation year that begins after 1995 if this Act were read without reference to subsection 78(4), that is claimed by the taxpayer for the year as a deduction under this section, on or before the day that is 12 months after the taxpayer’s filing due-date for the taxation year, containing (a) prescribed information in respect of the expenditure; and (b) claim preparer information, as defined in subsection 162(5.3). Failure to file (11.1) Subject to subsection (12), if the prescribed information in respect of an expenditure referred to in paragraph (11)(a) is not contained in the form referred to in subsection (11), no amount in respect of the expenditure may be deducted under subsection (1). (3) Subsection (1) applies in respect of expenditures incurred after September 16, 2016. 9 (1) Clause 39(1)(c)(iv)(B) of the Act is replaced by the following: (B) a bankrupt that was a small business corporation at the time it last became a bankrupt, or (2) Subsection 39(2.1) of the Act is replaced by the following: Upstream loan — transitional set-off (2.1) If at any time a corporation resident in Canada or a partnership of which such a corporation is a member (such corporation or partnership referred to in this subsection and subsections (2.2) and (2.3) as the “borrowing party”) has received a loan from, or become indebted to, a creditor that is a foreign affiliate (referred to in this subsection and subsections (2.2) and (2.3) as a “creditor affiliate”) of a qualifying entity, or that is a partnership (referred to in this subsection and subsection (2.3) as a “creditor partnership”) of which such an affiliate is a member, and the loan or indebtedness is at a later time repaid, in whole or in part, then the amount of the borrowing party’s capital gain or capital loss determined, in the absence of this subsection, under subsection (2) in respect of the repayment, is to be reduced (a) in the case of a capital gain 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 9 (i) if the creditor is a creditor affiliate, by an amount, not exceeding that capital gain, that is equal to twice the amount that would — in the absence of subparagraph 40(2)(g)(ii) and paragraph 95(2)(g.04) and on the assumption that the creditor affiliate’s capital loss in respect of the repayment of the loan or indebtedness were a capital gain of the creditor affiliate, the creditor affiliate had no other income, loss, capital gain or capital loss for any taxation year, and no other foreign affiliate of a qualifying entity had any income, loss, capital gain or capital loss for any taxation year — be the total of all amounts each of which is an amount that would be included in computing a qualifying entity’s income under subsection 91(1) for its taxation year that includes the last day of the taxation year of the creditor affiliate that includes the later time, or (ii) if the creditor is a creditor partnership, by an amount, not exceeding that capital gain, that is equal to twice the amount that is the total of each amount, determined in respect of a particular member of the creditor partnership that is a foreign affiliate of a qualifying entity, that would — in the absence of subparagraph 40(2)(g)(ii) and paragraph 95(2)(g.04) and on the assumption that the creditor partnership’s capital loss in respect of the repayment of the loan or indebtedness were a capital gain of the creditor partnership, the particular member had no other income, loss, capital gain or capital loss for any taxation year, and no other foreign affiliate of a qualifying entity had any income, loss, capital gain or capital loss for any taxation year — be the total of all amounts each of which is an amount that would be included in computing a qualifying entity’s income under subsection 91(1) for its taxation year that includes the last day of the taxation year of the particular member that includes the last day of the creditor partnership’s fiscal period that includes that later time; and (b) in the case of a capital loss (i) if the creditor is a creditor affiliate, by an amount, not exceeding that capital loss, that is equal to twice the amount, in respect of the creditor affiliate’s capital gain in respect of the repayment of the loan or indebtedness, that would — in the absence of paragraph 95(2)(g.04) and on the assumption that the creditor affiliate had no other income, loss, capital gain or capital loss for any taxation year, and no other foreign affiliate of a qualifying entity had any income, loss, capital gain or capital loss for any taxation year — be the total of all amounts each of which is an amount that would be included in computing a qualifying entity’s income 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 9 under subsection 91(1) for its taxation year that includes the last day of the taxation year of the creditor affiliate that includes the later time, or (ii) if the creditor is a creditor partnership, by an amount, not exceeding that capital loss, that is equal to twice the amount, in respect of the creditor partnership’s capital gain in respect of the repayment of the loan or indebtedness, that is the total of each amount, determined in respect of a particular member of the creditor partnership that is a foreign affiliate of a qualifying entity, that would — in the absence of paragraph 95(2)(g.04) and on the assumption that the particular member had no other income, loss, capital gain or capital loss for any taxation year, and no other foreign affiliate of a qualifying entity had any income, loss, capital gain or capital loss for any taxation year — be the total of all amounts each of which is an amount that would be included in computing a qualifying entity’s income under subsection 91(1) for its taxation year that includes the last day of the taxation year of the particular member that includes the last day of the creditor partnership’s fiscal period that includes the later time. Definition of qualifying entity (2.2) For purposes of subsections (2.1) and (2.3), qualifying entity means (a) in the case of a borrowing party that is a corporation, (i) the borrowing party, (ii) a corporation resident in Canada of which (A) the borrowing party is a subsidiary whollyowned corporation, or (B) a corporation described in this paragraph is a subsidiary wholly-owned corporation, (iii) a corporation resident in Canada 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 9 (A) each share of the capital stock of which is owned by (I) the borrowing party, or (II) a corporation that is described in this subparagraph or subparagraph (ii), or (B) all or substantially all of the capital stock of which is owned by one or more corporations resident in Canada that are borrowing parties in respect of the creditor affiliate because of subsection 90(7), or (iv) a partnership each member of which is (A) a corporation described in any of subparagraphs (i) to (iii), or (B) another partnership described in this subparagraph; and (b) in the case of a borrowing party that is a partnership, (i) the borrowing party, (ii) if each member — determined as if each member of a partnership that is a member of another partnership is a member of that other partnership — of the borrowing party is either a particular corporation resident in Canada (in this paragraph referred to as the “parent”) or a corporation resident in Canada that is a subsidiary wholly-owned corporation, as defined in subsection 87(1.4), of the parent, (A) the parent, or (B) a corporation resident in Canada that is a subsidiary wholly-owned corporation, as defined in subsection 87(1.4), of the parent, or (iii) a partnership each member of which is any of (A) the borrowing party, (B) a corporation described in subparagraph (ii), and (C) another partnership described in this subparagraph. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 9-10 Upstream loan — transitional set-off election (2.3) Subsection (2.1) and paragraph 95(2)(g.04) do not apply in respect of a repayment, in whole or in part, of a loan or indebtedness if an election has been filed with the Minister before 2019 jointly by (a) the borrowing party; (b) if the creditor is a creditor affiliate, each qualifying entity of which the creditor affiliate is a foreign affiliate; and (c) if the creditor is a creditor partnership, each qualifying entity of which a member of the creditor partnership is a foreign affiliate. (3) Subsection (1) applies in respect of bankruptcies that occur after April 26, 1995. (4) Subsection (2) applies in respect of portions of loans received and indebtedness incurred before August 20, 2011 that remain outstanding on August 19, 2011 and that are repaid, in whole or in part, before August 20, 2016. 10 (1) The description of B in paragraph 40(2)(b) of the Act is replaced by the following: B is (i) if the taxpayer was resident in Canada during the year that includes the acquisition date, one plus the number of taxation years that end after the acquisition date for which the property is the taxpayer’s principal residence and during which the taxpayer was resident in Canada, or (ii) if it is not the case that the taxpayer was resident in Canada during the year that includes the acquisition date, the number of taxation years that end after the acquisition date for which the property was the taxpayer’s principal residence and during which the taxpayer was resident in Canada, (2) Paragraphs 40(3)(d) and (e) of the Act are replaced by the following: (d) for the purposes of section 93 and subsections 116(6) and (6.1), the property is deemed to have been disposed of by the taxpayer at that time, and (e) for the purposes of subsection 2(3) and sections 110.6 and 150, the property is deemed to have been disposed of by the taxpayer in the year. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 10 (3) Paragraph 40(3.1)(b) of the Act is replaced by the following: (b) for the purposes of subsection 2(3), section 110.6, subsections 116(6) and (6.1) and section 150, the interest is deemed to have been disposed of by the member at that time. (4) The portion of subsection 40(6) of the Act before paragraph (a) is replaced by the following: Principal residence — property owned at end of 1981 (6) Subject to subsection (6.1), if a property was owned by a taxpayer, whether jointly with another person or otherwise, at the end of 1981 and continuously from the beginning of 1982 until disposed of by the taxpayer, the amount of the gain determined under paragraph (2)(b) in respect of the disposition shall not exceed the amount, if any, by which the total of (5) Section 40 of the Act is amended by adding the following after subsection (6): Principal residence — property owned at end of 2016 (6.1) If a trust owns property at the end of 2016, the trust is not in its first taxation year that begins after 2016 a trust described in subparagraph (c.1)(iii.1) of the definition principal residence in section 54, the trust disposes of the property after 2016, the disposition is the trust’s first disposition of the property after 2016 and the trust owns the property, whether jointly with another person or otherwise, continuously from the beginning of 2017 until the disposition, (a) subsection (6) does not apply to the disposition; and (b) the trust’s gain determined under paragraph (2)(b) in respect of the disposition is the amount, if any, determined by the formula A+B−C where A is the trust’s gain calculated in accordance with paragraph (2)(b) on the assumption that (i) the trust disposed of the property on December 31, 2016 for proceeds of disposition equal to its fair market value on that date, and (ii) paragraph (a) did not apply in respect of the disposition described in subparagraph (i), 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 10-12 B is the trust’s gain in respect of the disposition calculated in accordance with paragraph (2)(b) on the assumption that (i) the description of B in that paragraph is read without reference to “one plus”, and (ii) the trust acquired the property on January 1, 2017 at a cost equal to its fair market value on December 31, 2016, and C is the amount, if any, by which the fair market value of the property on December 31, 2016 exceeds the proceeds of disposition of the property determined without reference to this subsection. (6) Subsection (1) applies in respect of dispositions that occur after October 2, 2016. (7) Subsections (2) and (3) apply in respect of gains from dispositions that occur after September 15, 2016. 11 (1) The portion of subsection 43(2) of the Act before the formula in paragraph (a) is replaced by the following: Ecological gifts (2) For the purposes of subsection (1) and section 53, if at any time a taxpayer disposes of a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real or personal servitude, in circumstances where subsection 110.1(5) or 118.1(12) applies, (a) the portion of the adjusted cost base to the taxpayer of the land immediately before the disposition that can reasonably be regarded as attributable to the covenant, easement or servitude, as the case may be, is deemed to be equal to the amount determined by the formula (2) Subsection (1) applies in respect of gifts made after March 21, 2017. 12 (1) Clause 53(2)(c)(i)(C) of the Act is replaced by the following: (C) subsections 100(4), 112(3.1), (4), (4.2) as it read in its application to dispositions of property that occurred before April 27, 1995 and (5.2), (2) Subsection (1) is deemed to have come into force on September 16, 2016. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 13 13 (1) Paragraph (c.1) of the definition principal residence in section 54 of the Act is amended by striking out “and” at the end of subparagraph (iii) and by adding the following after that subparagraph: (iii.1) if the year begins after 2016, the trust is, in the year, (A) a trust (I) for which a day is to be determined under paragraph 104(4)(a), (a.1) or (a.4) by reference to the death or later death, as the case may be, that has not occurred before the beginning of the year, of an individual who is resident in Canada during the year, and (II) a specified beneficiary of which for the year is the individual referred to in subclause (I), (B) a trust (I) that is a qualified disability trust (as defined in subsection 122(3)) for the year, and (II) an electing beneficiary (in this clause, as defined in subsection 122(3)) of which for the year is 1 resident in Canada during the year, 2 a specified beneficiary of the trust for the year, and 3 a spouse, common-law partner, former spouse or common-law partner or child of the settlor (in this subparagraph, as defined in subsection 108(1)) of the trust, or (C) a trust (I) a specified beneficiary of which for the year is an individual 1 who is resident in Canada during the year, 2 who has not attained 18 years of age before the end of the year, and 3 a mother or father of whom is a settlor of the trust, and (II) in respect of which either of the following conditions is met: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 13-15 1 no mother or father of the individual referred to in subclause (I) is alive at the beginning of the year, or 2 the trust arose before the beginning of the year on and as a consequence of the death of a mother or father of the individual referred to in subclause (I), and (2) Paragraph (c) of the definition superficial loss in section 54 of the Act is replaced by the following: (c) a disposition deemed to have been made by subsection 45(1), section 48 as it read in its application before 1993, section 50 or 70, subsection 104(4), section 128.1, paragraph 132.2(3)(a) or (c), subsection 138(11.3) or 138.2(4) or 142.5(2), section 142.6 or any of subsections 144(4.1) and (4.2) and 149(10), (3) Subsection (2) applies to taxation years that begin after 2017. 14 (1) Paragraph 56(1)(z.3) of the Act is replaced by the following: Pooled registered pension plan (z.3) any amount required by section 147.5 to be included in computing the taxpayer’s income for the year other than an amount distributed under a PRPP as a return of all or a portion of a contribution to the plan to the extent that the amount (i) is a payment described 147.5(3)(d)(ii)(A) or (B), and under clause (ii) is not deducted in computing the taxpayer’s income for the year or a preceding taxation year; and (2) Subsection (1) is deemed to have come into force on December 14, 2012. 15 (1) Clause 56.4(7)(b)(ii)(A) of the Act is replaced by the following: (A) under which the vendor or the vendor’s eligible corporation disposes of property (other than property described in clause (B) or subparagraph (i)) to the purchaser, or the purchaser’s eligible corporation, for consideration that is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 15-16 received or receivable by the vendor, or the vendor’s eligible corporation, as the case may be, or (2) Subclause 56.4(7)(c)(i)(B)(I) of the Act is replaced by the following: (I) under which the vendor or the vendor’s eligible corporation disposes of property (other than property described in subclause (II) or clause (A)) to the eligible individual, or the eligible individual’s corporation, for consideration that is received or receivable by the vendor, or the vendor’s eligible corporation, as the case may be, or (3) Subparagraphs 56.4(7)(g)(i) and (ii) of the Act are replaced by the following: (i) in the case of subparagraph (b)(i), the vendor, or the vendor’s eligible corporation, if it is required to include the goodwill amount in computing its income, and the purchaser, or the purchaser’s eligible corporation, if it incurs the expenditure that is the goodwill amount to the vendor or the vendor’s eligible corporation, as the case may be, or (ii) in the case of clause (c)(i)(A), the vendor, or the vendor’s eligible corporation, if it is required to include the goodwill amount in computing its income, and the eligible individual, or the eligible individual’s eligible corporation, if it incurs the expenditure that is the goodwill amount to the vendor or the vendor’s eligible corporation, as the case may be. (4) Subsections (1) to (3) apply in respect of restrictive covenants granted after September 15, 2016. 16 (1) The definition eligible pension income in subsection 60.03(1) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) the lesser of (i) the total of all amounts received by the individual in the year on account of a retirement income security benefit payable to the individual under Part 2 of the Canadian Forces Members and Veterans Reestablishment and Compensation Act, and (ii) the amount, if any, by which the defined benefit limit (as defined in subsection 8500(1) of the Income Tax Regulations) for the year multiplied by 35 exceeds the total of the amounts determined 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 16-19 under paragraphs (a) and (b). (revenu de pension déterminé) (2) Subsection (1) applies to the 2015 and subsequent taxation years. 17 (1) Subsection 62(2) of the Act is replaced by the following: Moving expenses of students (2) There may be deducted in computing a taxpayer’s income for a taxation year the amount, if any, that the taxpayer would be entitled to deduct under subsection (1) if the definition eligible relocation in subsection 248(1) were read without reference to subparagraph (a)(i) of that definition and if the word “both” in paragraph (c) of that definition were read as “either or both”. (2) Subsection (1) applies to taxation years that end after October 2011. 18 (1) The portion of clause (i)(B) of the description of C in paragraph 63(2)(b) of the Act before subclause (I) is replaced by the following: (B) a person certified in writing by a medical doctor or a nurse practitioner to be a person who (2) Subsection (1) applies in respect of certifications made after September 7, 2017. 19 (1) Paragraph 66(12.601)(b) of the Act is replaced by the following: (b) during the period beginning on the particular day the agreement was entered into and ending on the earlier of December 31, 2018 and the day that is 24 months after the end of the month that included that particular day, the corporation incurred Canadian development expenses (excluding expenses that are deemed by subsection (12.66) to have been incurred on December 31, 2018) described in paragraph (a) or (b) of the definition Canadian development expense in subsection 66.2(5) or that would be described in paragraph (f) of that definition if the words “paragraphs (a) to (e)” in that paragraph were read as “paragraphs (a) and (b)”, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 19-21 (2) Subsection (1) comes into force on the day on which this Act receives royal assent except that, in its application in respect of agreements entered into after 2016 and before March 22, 2017, paragraph 66(12.601)(b) of the Act, as enacted by subsection (1), is to be read without reference to the phrase “the earlier of December 31, 2018 and”. 20 Subparagraph (d)(i) of the definition Canadian exploration expense in subsection 66.1(6) of the Act is amended by striking out “and” at the end of clause (A), by adding “and” at the end of clause (B) and by adding the following after clause (B): (C) the expense is incurred (I) before 2021 (excluding an expense that is deemed by subsection 66(12.66) to have been incurred on December 31, 2020), if the expense is incurred in connection with an obligation that was committed to in writing (including a commitment to a government under the terms of a license or permit) by the taxpayer before March 22, 2017, or (II) before 2019 (excluding an expense that is deemed by subsection 66(12.66) to have been incurred on December 31, 2018), in any other case, 21 (1) Paragraph 75(3)(d) of the Act is replaced by the following: (d) by a trust if (i) the trust acquired the property, or other property for which the property is a substitute, from a particular individual, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 21-23 (ii) the particular individual acquired the property or the other property, as the case may be, in respect of another individual as a consequence of the operation of subsection 122.61(1) or under section 4 of the Universal Child Care Benefit Act, and (iii) the trust has no beneficiaries (as defined in subsection 108(1)) who may for any reason receive directly from the trust any of the income or capital of the trust other than individuals in respect of whom the particular individual acquired property as a consequence of the operation of a provision described in subparagraph (ii). (2) Subsection (1) applies to taxation years that end after September 15, 2016. 22 (1) Section 80.03 of the English version of the Act is amended by adding the following before subsection (2): Definitions 80.03 (1) In this section, commercial debt obligation, commercial obligation, distress preferred share, forgiven amount and person have the meanings assigned by subsection 80(1). (2) Subsection (1) applies to taxation years that end after February 21, 1994. 23 (1) Section 85 of the Act is amended by adding the following after subsection (1.11): Eligible derivatives (1.12) Notwithstanding subsection (1.1), an eligible derivative (as defined in subsection 10.1(5)) of a taxpayer to which subsection 10.1(6) applies is not an eligible property of the taxpayer in respect of a disposition by the taxpayer to a corporation. (2) The portion of paragraph 85(2)(a) of the Act before subparagraph (i) is replaced by the following: (a) a partnership has disposed, to a taxable Canadian corporation for consideration that includes shares of the corporation’s capital stock, of any partnership property (other than an eligible derivative, as defined in subsection 10.1(5), of the partnership if subsection 10.1(6) applies to the partnership) that was 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 23-24 (3) Subsections (1) and (2) apply to taxation years that begin after March 21, 2017. 24 (1) Subsection 87(2) of the Act is amended by adding the following after paragraph (e.4): (e.41) if subsection 10.1(6) applied to a predecessor corporation in its last taxation year, each eligible derivative (as defined in subsection 10.1(5)) of the predecessor corporation immediately before the end of its last taxation year is deemed to have been reacquired, or reissued or renewed, as the case may be, by the new corporation at its fair market value immediately before the amalgamation; (e.42) for the purposes of subsection 10.1(7), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Section 87 of the Act is amended by adding the following after subsection (8.3): Taxable Canadian property — conditions for rollover (8.4) Subsection (8.5) applies at any time if (a) there is at that time a foreign merger of two or more predecessor foreign corporations (within the meaning assigned by subsection (8.1), if that subsection and subsection (8.2) were read without reference to the expression “otherwise than as a result of the distribution of property to one corporation on the winding-up of another corporation”) that were, immediately before that time, (i) resident in the same country, and (ii) related to each other (determined without reference to paragraph 251(5)(b)); (b) because of the foreign merger, (i) a predecessor foreign corporation (referred to in this subsection and subsection (8.5) as the “disposing predecessor foreign corporation”) disposes of a property (referred to in this subsection and subsection (8.5) as the “subject property”) that is, at that time, (A) a taxable Canadian property (other than treaty-protected property) of the disposing predecessor foreign corporation, and (B) any of the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 24 (I) a share of the capital stock of a corporation, (II) an interest in a partnership, and (III) an interest in a trust, and (ii) the subject property becomes property of a corporation that is a new foreign corporation for the purposes of subsection (8.1); (c) no shareholder (except any predecessor foreign corporation) that owned shares of the capital stock of a predecessor foreign corporation immediately before the foreign merger received consideration for the disposition of those shares on the foreign merger, other than shares of the capital stock of the new foreign corporation; (d) if the subject property is a share of the capital stock of a corporation or an interest in a trust, the corporation or trust is not, at any time in the 24-month period beginning at that time, as part of a transaction or event, or series of transactions or events including the foreign merger, subject to a loss restriction event; and (e) the new foreign corporation and the disposing predecessor foreign corporation jointly elect in writing under this paragraph in respect of the foreign merger and file the election with the Minister on or before the filing-due date of the disposing predecessor foreign corporation (or the date that would be its filing-due date, if subsection (8.5) did not apply in respect of the disposition of the subject property) for the taxation year that includes that time. Foreign merger — taxable Canadian property rollover (8.5) If this subsection applies at any time, (a) if the subject property is an interest in a partnership, (i) the disposing predecessor foreign corporation is deemed not to dispose of the subject property (other than for the purposes of subsection (8.4)), and (ii) the new foreign corporation is deemed 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 24-25 (A) to have acquired the subject property at a cost equal to the cost of the subject property to the disposing predecessor foreign corporation, and (B) to be the same corporation as, and a continuation of, the disposing predecessor foreign corporation in respect of the subject property; and (b) if the subject property is a share of the capital stock of a corporation or an interest in a trust, (i) the subject property is deemed to have been disposed of at that time by the disposing predecessor foreign corporation to the new foreign corporation (that is referred to in subparagraph (8.4)(b)(ii)) for proceeds of disposition equal to the adjusted cost base of the subject property to the disposing predecessor foreign corporation immediately before that time, and (ii) the cost of the subject property to the new foreign corporation is deemed to be the amount that is deemed by subparagraph (i) to be the proceeds of disposition of the subject property. (3) The portion of subsection 87(10) of the Act after paragraph (f) is replaced by the following: the new share is deemed, for the purposes of subsection 116(6), the definitions qualified investment in subsections 146(1), 146.1(1), 146.3(1) and 146.4(1), in section 204 and in subsection 207.01(1), and the definition taxable Canadian property in subsection 248(1), to be listed on the exchange until the earliest time at which it is so redeemed, acquired or cancelled. (4) Subsection (1) applies to taxation years that begin after March 21, 2017. (5) Subsection (2) applies to foreign mergers that occur after September 15, 2016, except that an election referred to in paragraph 87(8.4)(e) of the Act, as enacted by subsection (2), is deemed to have been filed on a timely basis if it is filed on or before the day that is six months after the day on which this Act receives royal assent. (6) Subsection (3) is deemed to have come into force on March 23, 2017. 25 (1) The portion of paragraph 88(1)(e.2) of the Act before subparagraph (i) is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 25-26 (e.2) paragraphs 87(2)(c), (d.1), (e.1), (e.3), (g) to (l), (l.21) to (u), (x), (z.1), (z.2), (aa), (cc), (ll), (nn), (pp), (rr) and (tt) to (ww), subsection 87(6) and, subject to section 78, subsection 87(7) apply to the winding-up as if the references in those provisions to (2) The portion of paragraph 88(1)(e.2) of the Act before subparagraph (i), as enacted by subsection (1), is replaced by the following: (e.2) paragraphs 87(2)(c), (d.1), (e.1), (e.3), (e.42), (g) to (l), (l.21) to (u), (x), (z.1), (z.2), (aa), (cc), (ll), (nn), (pp), (rr) and (tt) to (ww), subsection 87(6) and, subject to section 78, subsection 87(7) apply to the winding-up as if the references in those provisions to (3) Subsection 88(1) of the Act is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i): (j) for the purposes of subsection 10.1(6), the subsidiary’s taxation year in which an eligible derivative (as defined in subsection 10.1(5)) was distributed to, or assumed by, the parent on the winding-up is deemed to have ended immediately before the time when the eligible derivative was distributed or assumed. (4) Subsection (1) applies to taxation years that end after 2001. (5) Subsections (2) and (3) apply to taxation years that begin after March 21, 2017. 26 (1) The portion of paragraph (a) of the definition capital dividend account in subsection 89(1) of the Act before subparagraph (i) is replaced by the following: (a) the amount, if any, by which the total of (2) Paragraph (a) of the definition capital dividend account in subsection 89(1) of the Act is amended by adding “and” at the end of subparagraph (i) and by adding the following after that subparagraph: (i.1) all amounts each of which is an amount in respect of a distribution made, in the period and after September 15, 2016, by a trust to the corporation in respect of capital gains of the trust equal to the lesser of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 26-27 (A) the amount, if any, by which (I) the amount of the distribution exceeds (II) the amount designated under subsection 104(21) by the trust in respect of the net taxable capital gains of the trust attributable to those capital gains, and (B) the amount determined by the formula A×B where A is the fraction or whole number determined when 1 is subtracted from the reciprocal of the fraction under paragraph 38(a) applicable to the trust for the year, and B is the amount referred to in subclause (A)(II), (3) The portion of paragraph (f) of the definition capital dividend account in subsection 89(1) of the Act before subparagraph (i) is replaced by the following: (f) all amounts each of which is an amount in respect of a distribution made, in the period and before September 16, 2016, by a trust to the corporation in respect of capital gains of the trust equal to the lesser of 27 (1) Section 90 of the Act is amended by adding the following after subsection (6): Upstream loan continuity — reorganizations (6.1) Subsection (6.11) applies at any time if (a) immediately before that time, a person or partnership (referred to in this subsection and subsection (6.11) as the “original debtor”) owes an amount in respect of a loan or indebtedness (referred to in this subsection and subsection (6.11) as the “pre-transaction loan”) to another person or partnership (referred to in this subsection and subsection (6.11) as the “original creditor”); (b) the pre-transaction loan was, at the time it was made or entered into, a loan or indebtedness that is described in subsection (6); and (c) in the course of an amalgamation, a merger, a winding-up or a liquidation and dissolution, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 27 (i) the amount owing in respect of the pre-transaction loan becomes owing at that time by another person or partnership (the amount owing after that time and the other person or partnership are referred to in subsection (6.11) as the “post-transaction loan payable” and the “new debtor”, respectively), (ii) the amount owing in respect of the pre-transaction loan becomes owing at that time to another person or partnership (the amount owing after that time and the other person or partnership are referred to in subsection (6.11) as the “post-transaction loan receivable” and the “new creditor”, respectively), or (iii) the taxpayer in respect of which the original debtor was a specified debtor at the time referred to in paragraph (b) (A) ceases to exist, or (B) merges with one or more corporations to form one corporate entity (referred to in subsection (6.11) as the “new corporation”). Upstream loan continuity — reorganizations (6.11) If this subsection applies at any time, for the purposes of subsections (6) and (7) to (15) and 39(2.1) and (2.2) and paragraph 95(2)(g.04), (a) if the condition in subparagraph (6.1)(c)(i) is met, (i) the post-transaction loan payable is deemed to be the same loan or indebtedness as the pre-transaction loan, and (ii) the new debtor is deemed to be same debtor as, and a continuation of, the original debtor; (b) if the condition in subparagraph (6.1)(c)(ii) is met, (i) the post-transaction loan receivable is deemed to be the same loan or indebtedness as the pretransaction loan, and (ii) the new creditor is deemed to be same creditor as, and a continuation of, the original creditor; (c) if the condition in clause (6.1)(c)(iii)(A) is met, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 27 (i) subject to subparagraph (ii), each entity that held an equity interest in the taxpayer immediately before the winding-up (referred to in this paragraph as a “successor entity”) is deemed to be the same entity as, and a continuation of, the taxpayer, and (ii) for the purposes of applying subsection (13) and the description of A in subsection (14), an amount is deemed, in respect of a loan or indebtedness, to have been included under subsection (6) in computing the income of each successor entity equal to (A) if the taxpayer is a partnership, the amount that may reasonably be considered to be the successor entity’s share (determined in a manner consistent with the determination of the successor entity’s share of the income of the partnership under subsection 96(1) for the taxpayer’s final fiscal period) of the specified amount that was required to be included in computing the income of the taxpayer under subsection (6) in respect of the loan or indebtedness, and (B) in any other case, the proportion of the specified amount included in computing the taxpayer’s income under subsection (6), in respect of the loan or indebtedness, that the fair market value of the successor entity’s equity interest in the taxpayer, immediately before the distribution of the taxpayer’s assets on the winding-up, is of the total fair market value of all equity interests in the taxpayer at that time; and (d) if the condition in clause (6.1)(c)(iii)(B) is met, the new corporation is deemed to be the same corporation as, and a continuation of, the taxpayer. (2) The portion of subsection 90(7) of the Act before paragraph (a) is replaced by the following: Back-to-back loans (7) For the purposes of this subsection and subsections (6), (8) to (15) and 39(2.1) and (2.2) and paragraph 95(2)(g.04), if at any time a person or partnership 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 27 (referred to in this subsection as the “intermediate lender”) makes a loan to another person or partnership (in this subsection referred to as the “intended borrower”) because the intermediate lender received a loan from another person or partnership (in this subsection referred to as the “initial lender”) (3) Subparagraph 90(9)(a)(ii) of the Act is replaced with the following: (ii) the income of the corporation under subsection 91(5), in respect of the taxable surplus of a foreign affiliate of the corporation, unless the specified debtor is a person or partnership described in subclause (i)(D)(I) or (II); (4) Paragraph (b) of the definition specified debtor in subsection 90(15) of the Act is replaced by the following: (b) a person with which the taxpayer does not, at that time, deal at arm’s length, other than (i) a non-resident corporation that is at that time a controlled foreign affiliate, within the meaning assigned by section 17, of the taxpayer, or (ii) a non-resident corporation (other than a corporation that is described in subparagraph (i)) that is, at that time, a foreign affiliate of the taxpayer, if each share of the capital stock of the affiliate is owned at that time by any of (A) the taxpayer, (B) persons resident in Canada, (C) non-resident persons that deal at arm’s length with the taxpayer, (D) persons described in subparagraph (i), (E) partnerships, each member of which is described in any of clauses (A) to (F), and (F) a corporation each shareholder of which is described in any of clauses (A) to (F); 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 27-28 (5) Subsection (1) applies to transactions and events that occur after September 15, 2016. However, if a taxpayer files an election with the Minister before 2017, subsection (1) applies in respect of the taxpayer as of August 20, 2011. (6) Subsection (2) applies in respect of loans received and indebtedness incurred after August 19, 2011. However, subsection 90(7) of the Act, as amended by subsection (2), also applies in respect of any portion of a particular loan received or a particular indebtedness incurred before August 20, 2011 that remains outstanding on August 19, 2014 as if that portion were a separate loan or indebtedness that was received or incurred, as the case may be, on August 20, 2014 in the same manner and on the same terms as the particular loan or indebtedness. (7) Subsection (3) applies in respect of loans received and indebtedness incurred after August 19, 2011; however, subparagraph 90(9)(a)(ii) of the Act, as enacted by subsection (3), also applies in respect of any portion of a particular loan received or a particular indebtedness incurred before August 20, 2011 that remains outstanding on August 19, 2014 as if that portion were a separate loan or indebtedness that was received or incurred, as the case may be, on August 20, 2014 in the same manner and on the same terms as the particular loan or indebtedness. In respect of loans received and indebtedness incurred prior to September 16, 2016, subparagraph 90(9)(a)(ii) of the Act, as enacted by subsection (3), is to be read without reference to “unless the specified debtor is a person or partnership described in subclause (i)(D)(I) or (II)”. (8) Subsection (4) applies in respect of loans received and indebtedness incurred after August 19, 2011 and in respect of any portion of a particular loan received or indebtedness incurred before August 20, 2011 that remained outstanding on August 19, 2014. 28 (1) Section 91 of the Act is amended by adding the following after subsection (1): Conditions for application of subsection (1.2) (1.1) Subsection (1.2) applies at a particular time in respect of a particular foreign affiliate of a taxpayer resident in Canada if 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (a) an amount would be included under subsection (1) in computing the income of the taxpayer, in respect of a share of the particular affiliate or another foreign affiliate of the taxpayer that has an equity percentage (as defined in subsection 95(4)) in the particular affiliate, for the taxation year of the particular affiliate (determined without reference to subsection (1.2)) that includes the particular time (referred to in this subsection and subsection (1.3) as the “ordinary taxation year” of the particular affiliate), if the ordinary taxation year of the particular affiliate ended at the particular time; (b) immediately after the particular time, there is (i) an acquisition of control of the taxpayer, or (ii) a triggering event that can reasonably be considered to result in a change in the aggregate participating percentage of the taxpayer in respect of the particular affiliate for the ordinary taxation year of the particular affiliate; (c) if subparagraph (b)(i) applies, all or a portion of an amount described in paragraph 95(2)(f) that accrued to the particular affiliate during the portion of the ordinary taxation year of the particular affiliate before the particular time is excluded in computing the income of another taxpayer because paragraph 95(2)(f.1) applies as a result of the taxpayer being, at a time before the acquisition of control, a designated acquired corporation of the other taxpayer; and (d) if subparagraph (b)(ii) applies, none of the following is the case: (i) the change referred to in that subparagraph (A) is a decrease, and (B) is equal to the total of all amounts each of which is the increase — that can reasonably be considered to result from the triggering event — in the aggregate participating percentage of another taxpayer, in respect of the particular affiliate for the ordinary taxation year of the particular affiliate, if the other taxpayer (I) is a person resident in Canada, other than a person that is — or a trust, any of the beneficiaries under which is — by reason of a statutory provision, exempt from tax under this Part, and (II) is related to the taxpayer, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 1 if the triggering event results from a winding-up of the taxpayer to which subsection 88(1) applies, at the particular time, and 2 in any other case, immediately after the particular time, (ii) the triggering event is on an amalgamation as defined in subsection 87(1), (iii) the triggering event is an excluded acquisition or disposition, in respect of the ordinary taxation year of the particular affiliate, and (iv) if one or more triggering events — all of which are described in subparagraph (b)(ii) and in respect of which none of the conditions in subparagraphs (i) to (iii) are satisfied — occur in the ordinary taxation year of the particular affiliate, the percentage determined by the following formula is not greater than 5%: A—B where A is the total of all amounts each of which is the decrease — which can reasonably be considered to result from a triggering event described in subparagraph (b)(ii) (other than a triggering event that satisfies the conditions in subparagraph (i) or (ii)) — in the aggregate participating percentage of the taxpayer in respect of the particular affiliate for the ordinary taxation year of the particular affiliate, and B is the total of all amounts each of which is the increase — which can reasonably be considered to result from a triggering event described in subparagraph (b)(ii) (other than a triggering event that satisfies the conditions in subparagraph (i) or (ii)) — in the aggregate participating percentage of the taxpayer in respect of the particular affiliate for the ordinary taxation year of the particular affiliate. Deemed year-end (1.2) If this subsection applies at a particular time in respect of a foreign affiliate of a particular taxpayer resident in Canada, then for the purposes of this section and section 92, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (a) in respect of the particular taxpayer and each connected person, or connected partnership, in respect of the particular taxpayer, the affiliate’s taxation year that would, in the absence of this subsection, have included the particular time is deemed to have ended at the time (referred to in this section as the “stub-period end time”) that is immediately before the particular time; (b) if the affiliate is, immediately after the particular time, a foreign affiliate of the particular taxpayer or a connected person, or connected partnership, in respect of the particular taxpayer, the affiliate’s next taxation year after the stub-period end time is deemed, in respect of the particular taxpayer or the connected person or connected partnership, as the case may be, to begin immediately after the particular time; and (c) in determining the foreign accrual property income of the affiliate for the taxation year referred to in paragraph (a) in respect of the particular taxpayer or a connected person or connected partnership, in respect of the particular taxpayer, all transactions or events that occur at the particular time are deemed to occur at the stub-period end time. Definitions (1.3) The following definitions apply in this subsection and subsections (1.1) and (1.2). aggregate participating percentage, of a taxpayer in respect of a foreign affiliate of the taxpayer for a taxation year of the affiliate, means the total of all amounts, each of which is the participating percentage, in respect of the affiliate, of a share of the capital stock of a corporation that is owned by the taxpayer at the end of the taxation year. (pourcentage de participation total) connected person, in respect of a particular taxpayer, means a person that — at or immediately after the particular time at which subsection (1.2) applies in respect of a foreign affiliate of the particular taxpayer — is resident in Canada and (a) does not deal at arm’s length with the particular taxpayer; or (b) deals at arm’s length with the particular taxpayer, if (i) the foreign affiliate is a foreign affiliate of the person at the particular time, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (ii) the aggregate participating percentage of the person in respect of the foreign affiliate for the affiliate’s ordinary taxation year may reasonably be considered to have increased as a result of the triggering event that gave rise to the application of subsection (1.2). (personne rattachée) connected partnership, in respect of a particular taxpayer, means a partnership if, at or immediately after the particular time at which subsection (1.2) applies in respect of a foreign affiliate of the particular taxpayer, (a) the particular taxpayer or a connected person in respect of the particular taxpayer is, directly or indirectly through one or more partnerships, a member of the partnership; or (b) if paragraph (a) does not apply, (i) the foreign affiliate is a foreign affiliate of the partnership at the particular time, and (ii) the aggregate participating percentage of the partnership in respect of the foreign affiliate for the affiliate’s ordinary taxation year may reasonably be considered to have increased as a result of the triggering event that gave rise to the application of subsection (1.2). (société de personnes rattachée) excluded acquisition or disposition, in respect of a taxation year of a foreign affiliate of a taxpayer, means an acquisition or disposition of an equity interest in a corporation, partnership or trust that can reasonably be considered to result in a change in the aggregate participating percentage of the taxpayer in respect of the affiliate for the taxation year of the affiliate, if (a) the change is less than 1%; and (b) it cannot reasonably be considered that one of the main reasons the acquisition or disposition occurs as a separate acquisition or disposition from one or more other acquisitions or dispositions is to avoid the application of subsection (1.2). (acquisition ou disposition exclue) triggering event means (a) an acquisition or disposition of an equity interest in a corporation, partnership or trust; (b) a change in the terms or conditions of a share of the capital stock of a corporation or the rights as a member of a partnership or as a beneficiary under a trust; and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (c) a disposition or change of a right referred to in paragraph 95(6)(a). (événement déclencheur) Election for application of subsection (1.2) (1.4) If the conditions in subsection (1.1) are not met at a particular time in respect of a particular foreign affiliate of a taxpayer resident in Canada, subsection (1.2) applies in respect of the particular affiliate at that time if (a) the conditions in paragraph (1.1)(a) are met in respect of the particular affiliate at the particular time; (b) immediately after the particular time there is a disposition of shares of the capital stock of the particular affiliate or another foreign affiliate of the taxpayer that had an equity percentage (as defined in subsection 95(4)) in the particular affiliate by (i) the taxpayer, or (ii) a controlled foreign affiliate of the taxpayer; and (c) the taxpayer and all specified corporations jointly elect in writing to apply subsection (1.2) in respect of the disposition and file the election with the Minister on or before the day that is the earliest filing-due date for all taxpayers making the election in respect of the taxation year in which the transaction to which the election relates occurred, and for this purpose, a specified corporation means a corporation that at or immediately after the particular time meets the following conditions: (i) the corporation is resident in Canada, (ii) the corporation does not deal at arm’s length with the taxpayer, and (iii) the particular affiliate is a foreign affiliate of the corporation, or of a partnership of which the corporation is, directly or indirectly through one or more partnerships, a member. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 Election for application of subsection (1.2) (1.5) A particular taxpayer resident in Canada may elect, by filing with the Minister in prescribed manner a form containing prescribed information on or before the particular taxpayer’s filing-due date for its taxation year that includes a particular time, to have subsection (1.2) apply at the particular time in respect of a particular foreign affiliate of the particular taxpayer if (a) immediately after the particular time, there is an acquisition or disposition of shares of the capital stock of a foreign affiliate of another taxpayer that results in a decrease to the surplus entitlement percentage of the other taxpayer in respect of the particular affiliate; (b) as a result of the acquisition or disposition described in paragraph (a), subsection (1.2) applies to the other taxpayer resident in Canada in respect of the particular affiliate; (c) the surplus entitlement percentage of the particular taxpayer in respect of the particular affiliate increases as a result of the acquisition or disposition described in paragraph (a); (d) subsection (1.2) does not apply, in the absence of this subsection, to the particular taxpayer in respect of the acquisition or disposition; and (e) the particular affiliate is a foreign affiliate of the particular taxpayer at the particular time. (2) Subsection 91(1.5) of the Act, as enacted by subsection (1), is repealed. (3) Subsection 91(4.5) of the Act is replaced by the following: Exception — hybrid entities (4.5) For the purposes of subparagraph (4.1)(a)(i), a specified owner in respect of the taxpayer is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of a corporation that are considered to be owned for the purposes of this Act solely because the specified owner or the corporation is not treated as a corporation under the relevant foreign tax law. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (4) Subsection (1) is deemed to have come into force on July 12, 2013, except that (a) an election referred to in subsection 91(1.4) of the Act, as enacted by subsection (1), is deemed to have been filed by the particular taxpayer and all specified corporations (within the meaning assigned by subsection 91(1.4) of the Act) referred to in that subsection on a timely basis if the election is filed on or before the earliest filing-due date, for all taxpayers making the election, for the respective taxation year that includes the day on which this Act receives royal assent; (b) an election referred to in subsection 91(1.5) of the Act, as enacted by subsection (1), is deemed to have been filed by the particular taxpayer referred to in that subsection on a timely basis if the election is filed on or before the filing-due date for the particular taxpayer for its taxation year that includes the day on which this Act receives royal assent; (c) subject to paragraph (d), for the purpose of applying subsections 91(1.1) to (1.4) of the Act, as enacted by subsection (1), if the particular time referred to in subsection 91(1.1) of the Act, as enacted by subsection (1), is before September 8, 2017, those subsections are to be read as follows: Conditions for application of subsection (1.2) (1.1) Subsection (1.2) applies at a particular time in respect of a particular foreign affiliate of a taxpayer resident in Canada if (a) an amount would be included under subsection (1) in computing the income of the taxpayer, in respect of a share of the particular affiliate or another foreign affiliate of the taxpayer that has an equity percentage (as defined in subsection 95(4)) in the particular affiliate, for the taxation year of the particular affiliate (determined without reference to subsection (1.2)) that includes the particular time, if that taxation year ended at the particular time; and (b) immediately after the particular time, there is an acquisition or disposition of shares of the capital stock of a foreign affiliate of the taxpayer that results in a change to the surplus entitlement percentage of the taxpayer in respect of the particular affiliate 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (determined as if the taxpayer were a corporation resident in Canada), unless (i) the change is a decrease in the surplus entitlement percentage of the taxpayer (determined as if the taxpayer were a corporation resident in Canada) in respect of the particular affiliate and, as a result of the acquisition or disposition, one or more taxpayers, each of which is a taxable Canadian corporation that does not deal at arm’s length with the taxpayer immediately after the particular time, have increases to their surplus entitlement percentages in respect of the particular affiliate that are, in total, equal to the reduction in the taxpayer’s surplus entitlement percentage in respect of the particular affiliate immediately after the particular time, (ii) the acquisition or disposition is on an amalgamation as defined in subsection 87(1), or (iii) if one or more such acquisitions or dispositions in respect of which the conditions in subparagraphs (i) and (ii) are not satisfied occur in a particular taxation year of the particular affiliate (determined without reference to this subsection and subsection (1.2)), the percentage determined by the following formula is not greater than 5%: A–B where A is the total of all amounts each of which is the decrease in the surplus entitlement percentage of the taxpayer in respect of the particular affiliate resulting from such acquisition or disposition in the particular year (other than an acquisition or disposition described in subparagraph (i) or (ii)), and B is the total of all amounts each of which is the increase in the surplus entitlement percentage of the taxpayer in respect of the particular affiliate resulting from such acquisition or disposition in the particular year (other than an acquisition from a person that does not deal at arm’s length with the taxpayer). Deemed year-end (1.2) If this subsection applies at a particular time in respect of a foreign affiliate of a particular taxpayer resident in Canada, then for the purposes of this section and section 92, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 (a) in respect of the particular taxpayer and each corporation or partnership that is connected to the particular taxpayer, the affiliate’s taxation year that would, in the absence of this subsection, have included the particular time is deemed to have ended at the time (referred to in this section as the “stub-period end time”) that is immediately before the particular time; (b) if the affiliate is, immediately after the particular time, a foreign affiliate of the particular taxpayer or a corporation or partnership that is connected to the particular taxpayer, the affiliate’s next taxation year after the stub-period end time is deemed, in respect of the taxpayer or the connected corporation or partnership, as the case may be, to begin immediately after the particular time; and (c) in determining the foreign accrual property income of the affiliate for that taxation year in respect of the particular taxpayer or a corporation or partnership that is connected to the particular taxpayer, all transactions or events that occur at the particular time are deemed to occur at the stub-period end time. Connected — meaning (1.3) For the purposes of subsection (1.2), (a) a corporation is connected to the particular taxpayer if, at or immediately after the particular time, it is resident in Canada and does not deal at arm’s length with the taxpayer; and (b) a partnership is connected to the particular taxpayer if, at or immediately after the particular time, the particular taxpayer or a corporation described in paragraph (a) is, directly or indirectly through one or more partnerships, a member of the partnership. Election for application of subsection (1.2) (1.4) If the conditions in subsection (1.1) are not met at a particular time in respect of a particular foreign affiliate of a taxpayer resident in Canada, subsection (1.2) applies in respect of the particular affiliate at that time if (a) the conditions in paragraph (1.1)(a) are met in respect of the particular affiliate at the particular time; (b) immediately after the particular time there is a disposition of shares of the capital stock of the particular affiliate or another foreign affiliate of the taxpayer 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 28 that had an equity percentage (as defined in subsection 95(4)) in the particular affiliate by (i) the taxpayer, or (ii) a controlled foreign affiliate of the taxpayer, if the shares are not excluded property of the controlled foreign affiliate immediately after the particular time; and (c) the taxpayer and all specified corporations jointly elect, by filing with the Minister in prescribed manner a form containing prescribed information on or before the day that is the earliest filing-due date for all taxpayers making the election in respect of the taxation year in which the transaction to which the election relates occurred, and for this purpose, a specified corporation means a corporation that at or immediately after the particular time meets the following conditions: (i) the corporation is resident in Canada, (ii) the corporation does not deal at arm’s length with the taxpayer, and (iii) the particular affiliate is a foreign affiliate of the corporation, or of a partnership of which the corporation is, directly or indirectly through one or more partnerships, a member. (d) paragraph (c) does not apply in respect of a taxpayer if (i) the taxpayer and all connected persons and connected partnerships (within the meanings assigned by subsection 91(1.3) of the Act, as enacted by this subsection) in respect of the taxpayer jointly elect in writing, and (ii) the election is filed with the Minister by the later of the taxpayer’s filing-due date for its taxation year that includes September 8, 2017 and six months after the day on which this Act receives royal assent; and (e) if paragraph (c) does not apply in respect of a taxpayer because of paragraph (d), (i) section 91 of the Act, as amended by subsection (1), shall be read without reference to its subsection (1.5), and (ii) subsection 91(1.1) of the Act, as enacted by subsection (1), shall be read without reference to its subparagraph (b)(i) and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 28-30 paragraph (c) in respect of any acquisition of control of the taxpayer that occurs before September 8, 2017. (5) Subsection (2) applies to taxation years that begin after September 7, 2017. (6) Subsection (3) applies in respect of the computation of foreign accrual tax applicable to an amount included in computing a taxpayer’s income under subsection 91(1), for a taxation year of the taxpayer that ends after October 24, 2012, in respect of a foreign affiliate of the taxpayer. 29 (1) Clause 94(3)(b)(ii)(A) of the Act is replaced by the following: (A) the trust’s income for the particular taxation year (other than income — not including dividends or interest — from sources in Canada) is deemed to be from sources in that country and not to be from any other source, and (2) Subsection (1) applies to taxation years that end after September 15, 2016. 30 (1) The definition trust company in subsection 95(1) of the Act is replaced by the following: trust company includes a corporation that is resident in Canada and that is a loan company as defined in subsection 2(1) of the Canadian Payments Act. (société de fiducie) (2) The portion of paragraph 95(2)(a.1) of the Act after subparagraph (ii) and before subparagraph (iii) is replaced by the following: unless more than 90% of the gross revenue of the affiliate for the year from the sale of property (other than a property the income from the sale of which is not included in computing the income from a business other than an active business of the affiliate under this paragraph because of subsection (2.31)) is derived from the sale of such property (other than a property described in subparagraph (ii) the cost of which to any person is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 30 a cost referred to in subparagraph (i)) to persons with whom the affiliate deals at arm’s length (which, for this purpose, includes a sale of property to a non-resident corporation with which the affiliate does not deal at arm’s length for sale to persons with whom the affiliate deals at arm’s length) and, where this paragraph applies to include income of the affiliate from the sale of property in the income of the affiliate from a business other than an active business, (3) The portion of paragraph 95(2)(a.23) of the Act before subparagraph (i) is replaced by the following: (a.23) for the purposes of paragraphs (a.2), (a.21) and (a.24), specified Canadian risk means a risk in respect of (4) Subsection 95(2) of the Act is amended by adding the following after paragraph (a.23): (a.24) for the purposes of paragraph (a.2), (i) a risk is deemed to be a specified Canadian risk of a particular foreign affiliate of a taxpayer if (A) as part of a transaction or series of transactions, the particular affiliate insured or reinsured the risk, (B) the risk would not be a specified Canadian risk if this Act were read without reference to this paragraph, and (C) it can reasonably be concluded that one of the purposes of the transaction or series of transactions was to avoid the application of any of paragraphs (a.2) to (a.22), and (ii) if the particular affiliate — or a foreign affiliate of another taxpayer, if that other taxpayer or affiliate, or a partnership of which that other taxpayer or affiliate is a member, does not deal at arm’s length with the particular affiliate — enters into one or more agreements or arrangements in respect of the risk, (A) activities performed in connection with those agreements or arrangements are deemed to be a separate business, other than an active business, carried on by the particular affiliate or other affiliate, as the case may be, and (B) any income of the particular affiliate or other affiliate, as the case may be, from the business (including income that pertains to or is incident 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 30 to the business) is deemed to be income from a business other than an active business; (5) Paragraph 95(2)(f.13) of the Act is replaced by the following: (f.13) where the calculating currency of a foreign affiliate of a taxpayer is a currency other than Canadian currency, the foreign affiliate shall determine the amount included in computing its foreign accrual property income, in respect of the taxpayer for a taxation year of the foreign affiliate, attributable to its capital gain or taxable capital gain, from the disposition of an excluded property in the taxation year, in Canadian currency by converting the amount of the capital gain, or taxable capital gain, otherwise determined under subparagraph (f.12)(i) using its calculating currency for the taxation year into Canadian currency using the rate of exchange quoted by the Bank of Canada on the day on which the disposition was made, or another rate of exchange that is acceptable to the Minister; (6) Paragraph 95(2)(f.15) of the Act is replaced by the following: (f.15) for the purposes of applying subparagraph (f)(i), the references in subsection 39(2) to “Canadian currency” are to be read as “the taxpayer’s calculating currency” (i) in respect of a debt obligation owing by a foreign affiliate of a taxpayer, or a partnership of which the foreign affiliate is a member, that is a debt referred to in subparagraph (i)(i) or (ii), and (ii) in respect of an agreement described in subparagraph (i)(iii) entered into by a foreign affiliate of a taxpayer, or a partnership of which the foreign affiliate is a member; (7) Paragraph 95(2)(g.04) of the Act is replaced by the following: (g.04) if at any time a corporation resident in Canada or a partnership of which such a corporation is a member (such corporation or partnership referred to in this paragraph as the “borrowing party”) has 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 30 received a loan from, or become indebted to, a creditor that is a foreign affiliate (referred to in this paragraph as a “creditor affiliate”) of a qualifying entity (in this paragraph within the meaning assigned by subsection 39(2.2)), or that is a partnership (referred to in this paragraph as a “creditor partnership”) of which such an affiliate is a member, and the loan or indebtedness is at a later time repaid, in whole or in part, then the amount of the creditor affiliate’s or creditor partnership’s capital gain or capital loss, as the case may be, determined in the absence of this paragraph, in respect of the repayment, is to be reduced (i) in the case of a capital loss (A) if the creditor is a creditor affiliate, by an amount, not exceeding the amount of that capital loss so determined, that is determined by the formula A/B where A is the amount by which the borrowing party’s capital gain is reduced under paragraph 39(2.1)(a) in respect of that repayment, and B is the total of all participating percentages, determined at the end of the taxation year of the creditor affiliate that includes the later time, of shares of the capital stock of a foreign affiliate that are owned by qualifying entities and on which an amount would be included under subsection 91(1), on the assumptions that (I) the capital loss of the creditor affiliate, determined in the absence of this paragraph, in respect of the repayment of the loan or indebtedness were a capital gain of the creditor affiliate, and (II) neither the creditor affiliate nor any other foreign affiliate of a qualifying entity had any other income, gain or loss for any taxation year, and (B) if the creditor is a creditor partnership, by an amount, not exceeding the capital loss so determined, that is equal to the amount determined by the formula A/(B × C) where A 2015-2016-2017 is the amount by which the borrowing party’s capital gain is reduced under paragraph 39(2.1)(a) in respect of that repayment, Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 30 B is the proportion that the amount of the capital loss of the creditor partnership in respect of the repayment of the loan or indebtedness, determined in the absence of this paragraph, that would be included in the determination of the income, gain or loss of the members of the creditor partnership that are foreign affiliates of qualifying entities is of the amount of the capital loss so determined, and C is the total of all participating percentages, each of which is the participating percentage in respect of a share of the capital stock of a foreign affiliate of a qualifying entity, and that is owned by a qualifying entity, that is relevant in determining the amount that would be included in computing a qualifying entity’s income under subsection 91(1), on the assumptions that (I) the capital loss of the creditor partnership, determined in the absence of this paragraph, in respect of the repayment of the loan or indebtedness were a capital gain of the creditor partnership, and (II) neither the creditor partnership nor any foreign affiliate of a qualifying entity had any other income, gain or loss for any taxation year, and (ii) in the case of a capital gain, (A) if the creditor is a creditor affiliate, by an amount, not exceeding that capital gain so determined, that is equal to the amount determined by the formula A/B where A is the amount by which the borrowing party is required to reduce its capital loss under paragraph 39(2.1)(b) in respect of that repayment, and B is the total of all participating percentages, determined at the end of the taxation year of the creditor affiliate that includes the later time, of shares of the capital stock of a foreign affiliate that are owned by qualifying entities and on which an amount would be included under subsection 91(1), on the assumption that neither the creditor affiliate nor any foreign affiliate of a qualifying entity had any other income, gain or loss for any taxation year other than its capital gain, determined in the absence of this paragraph, in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 30 respect of the repayment of the loan or indebtedness, and (B) if the creditor is a creditor partnership, by an amount, not exceeding the capital loss so determined, that is equal to the amount determined by the following formula A/(B × C) where A is the amount by which the borrowing party is required to reduce its capital loss under paragraph 39(2.1)(b) in respect of that repayment, B is the proportion that the amount of the capital gain of the creditor partnership in respect of the repayment of the loan or indebtedness, determined in the absence of this paragraph, that would be included in the determination of the income, gain or loss of the members of the creditor partnership that are foreign affiliates of qualifying entities is of the amount of the capital gain so determined, and C is the total of all participating percentages, each of which is the participating percentage in respect of a share of the capital stock of a foreign affiliate of a qualifying entity, and that is owned by a qualifying entity, that is relevant in determining the amount that would be included in computing a qualifying entity’s income under subsection 91(1), on the assumption that neither the creditor partnership nor any foreign affiliate of a qualifying entity had any other income, gain or loss for any taxation year; (8) Subsection (1) is deemed to have come into force on October 24, 2001. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 30-32 (9) Subsection (2) applies in respect of taxation years of a foreign affiliate of a taxpayer that end after October 2012. (10) Subsections (3) and (4) apply to transactions that occur after March 21, 2017. (11) Subsection (5) is deemed to have come into force on March 1, 2017. (12) Subsection (6) applies in respect of taxation years of a foreign affiliate that begin after October 2, 2007. (13) Subsection (7) applies in respect of portions of loans received and indebtedness incurred before August 20, 2011 that remain outstanding on August 19, 2011 and that are repaid, in whole or in part, before August 20, 2016. 31 (1) The portion of subsection 96(3) of the Act before paragraph (a) is replaced by the following: Agreement or election of partnership members (3) If a taxpayer who was a member of a partnership at any time in a fiscal period has, for any purpose relevant to the computation of the taxpayer’s income from the partnership for the fiscal period, made or executed an agreement, designation or election under or in respect of the application of any of subsections 10.1(1), 13(4), (4.2) and (16), section 15.2, subsections 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B), subsections 44(1) and (6), 50(1) and 80(5) and (9) to (11), section 80.04, subsections 86.1(2), 88(3.1), (3.3) and (3.5) and 90(3), the definition relevant cost base in subsection 95(4) and subsections 97(2), 139.1(16) and (17) and 249.1(4) and (6) that, if this Act were read without reference to this subsection, would be a valid agreement, designation or election, (2) Subsection (1) applies to taxation years that begin after March 21, 2017. 32 (1) The portion of subsection 97(2) of the Act before paragraph (a) is replaced by the following: (2) Notwithstanding any other provision of this Act other than subsections (3) and 13(21.2), where a taxpayer at any time disposes of any property (other than an eligible derivative, as defined in subsection 10.1(5), of the taxpayer if subsection 10.1(6) applies to the taxpayer) that is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 32-35 a capital property, Canadian resource property, foreign resource property or inventory of the taxpayer to a partnership that immediately after that time is a Canadian partnership of which the taxpayer is a member, if the taxpayer and all the other members of the partnership jointly so elect in prescribed form within the time referred to in subsection 96(4), (2) Subsection (1) applies to taxation years that begin after March 21, 2017. 33 (1) Section 98 of the Act is amended by adding the following after subsection (6): Depreciable property — leasehold interests and options (7) For the purposes of paragraphs (3)(c) and (5)(c), a leasehold interest in a depreciable property and an option to acquire a depreciable property are depreciable properties. (2) Subsection (1) applies in respect of partnerships that cease to exist after September 15, 2016. 34 (1) Paragraph 100(1)(a) of the Act is replaced by the following: (a) 1/2 of such portion of the taxpayer’s capital gain for the year from the disposition as may reasonably be regarded as attributable to increases in the value of any partnership property of the partnership that is capital property (other than depreciable property) held directly by the partnership or held indirectly by the partnership through one or more other partnerships, and (2) Subsection (1) applies in respect of dispositions made after August 13, 2012. 35 (1) The portion of subsection 104(4) of the Act before paragraph (a) is replaced by the following: Deemed disposition by trust (4) Every trust is, at the end of each of the following days, deemed to have disposed of each property of the trust (other than exempt property) that was capital property (other than depreciable property) or land included in the inventory of a business of the trust for proceeds equal to its fair market value (determined with reference to subsection 70(5.3)) at the end of that day and to have reacquired the property immediately after that day for an 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 35-37 amount equal to that fair market value, and for the purposes of this Act those days are (2) The portion of subsection 104(5.8) of the Act before paragraph (a) is replaced by the following: Trust transfers (5.8) Where capital property, land included in inventory, Canadian resource property or foreign resource property is transferred at a particular time by a trust (in this subsection referred to as the “transferor trust”) to another trust (in this subsection referred to as the “transferee trust”) in circumstances in which subsection 107(2) or 107.4(3) or paragraph (f) of the definition disposition in subsection 248(1) applies, (3) Subsections (1) and (2) apply to taxation years that begin after 2016. 36 (1) The portion of subsection 107(4.1) of the Act before paragraph (a) is replaced by the following: Where subsection 75(2) applicable to trust (4.1) Subsection (2.1) applies (and subsection (2) does not apply) in respect of a distribution of any property of a particular personal trust or prescribed trust (other than an excluded property of the particular trust) by the particular trust to a taxpayer who was a beneficiary under the particular trust where (2) Subsection (1) applies to taxation years that begin after 2016. 37 (1) The definition excluded property in subsection 108(1) of the Act is replaced by the following: excluded property, of a trust, means property owned by the trust at, and distributed by the trust after, the end of 2016, if (a) the trust is not in its first taxation year that begins after 2016 a trust described in subparagraph (c.1)(iii.1) of the definition principal residence in section 54, and (b) the property is a property that would be the trust’s principal residence (as defined in section 54) for the taxation year in which the distribution occurs if 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 37 (i) that definition were read without reference to its subparagraph (c.1)(iii.1), and (ii) the trust designated the property under that definition as its principal residence for the taxation year; (bien exclu) (2) The portion of the definition eligible taxable capital gains in subsection 108(1) of the Act before paragraph (a) is replaced by the following: eligible taxable capital gains, of a trust for a taxation year, means the lesser of (3) Subsection 108(4) of the Act is replaced by the following: Trust not disqualified (4) For the purposes of the definition pre-1972 spousal trust in subsection (1), subparagraphs 70(6)(b)(ii) and (6.1)(b)(ii) and paragraphs 73(1.01)(c) and 104(4)(a), if a trust was created by a taxpayer whether by the taxpayer’s will or otherwise, no person is deemed to have received or otherwise obtained or to be entitled to receive or otherwise obtain the use of any income or capital of the trust solely because of (a) the payment, or provision for payment, as the case may be, by the trust of (i) any estate, legacy, succession or inheritance duty payable, in consequence of the death of the taxpayer, or a spouse or common-law partner of the taxpayer who is a beneficiary under the trust, in respect of any property of, or interest in, the trust, or (ii) any income or profits tax payable by the trust in respect of any income of the trust; or (b) the inhabiting at any time by an individual of a housing unit that is, or is in respect of, property that is owned at that time by the trust, if (i) the property is described in the definition principal residence in section 54 in respect of the trust for the trust’s taxation year that includes that time, and (ii) the individual is (A) the taxpayer, or (B) the taxpayer’s (I) spouse or common-law partner, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 37-38 (II) former spouse or common-law partner, or (III) child. (4) Subsections (1) and (3) apply to taxation years that begin after 2016. 38 (1) The portion of paragraph 110(1)(d) of the Act before subparagraph (ii) is replaced by the following: Employee options (d) an amount equal to 1/2 of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of a security that a particular qualifying person has agreed after February 15, 1984 to sell or issue under an agreement, in respect of the transfer or other disposition of rights under the agreement or as a result of the death of the taxpayer because the taxpayer immediately before death owned a right to acquire the security under the agreement, if (i) the security was acquired under the agreement (A) by the taxpayer or a person not dealing at arm’s length with the taxpayer in circumstances described in paragraph 7(1)(c), or (B) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, within the first taxation year of the graduated rate estate of the taxpayer, by (I) the graduated rate estate of the taxpayer, (II) a person who is a beneficiary (as defined in subsection 108(1)) under the graduated rate estate of the taxpayer, or (III) a person in whom the rights of the taxpayer under the agreement have vested as a result of the death, (i.1) the security (A) is a prescribed share at the time of its sale or issue, as the case may be, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 38 (B) would have been a prescribed share if it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement, (B.1) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, would have been a prescribed share if it were issued or sold to the taxpayer immediately before the death of the taxpayer, (C) would have been a unit of a mutual fund trust at the time of its sale or issue if those units issued by the trust that were not identical to the security had not been issued, (D) would have been a unit of a mutual fund trust if (I) it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement, and (II) those units issued by the trust that were not identical to the security had not been issued, or (E) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, would have been a unit of a mutual fund trust if (I) it were issued or sold to the taxpayer immediately before the death of the taxpayer, and (II) those units issued by the trust that were not identical to the security had not been issued, (2) Paragraphs 110(1.1)(c) and (d) of the Act are replaced by the following: (c) the particular qualifying person provides the taxpayer or, if the taxpayer is deceased, the graduated rate estate of the taxpayer, with evidence in writing of the election; and (d) the taxpayer or, if the taxpayer is deceased, the graduated rate estate of the taxpayer, files the evidence with the Minister with the taxpayer’s return of income for the year in which a deduction under paragraph (1)(d) is claimed. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 38-39 (3) Subsections (1) and (2) apply in respect of acquisitions of securities and transfers or dispositions of rights occurring after 4:00 pm Eastern Standard Time on March 4, 2010, except that for taxation years ending before 2016, the references to “graduated rate estate” in paragraphs 110(1)(d) and (1.1)(c) and (d) of the Act, as enacted by subsections (1) and (2), are to be read as “estate”. 39 (1) The portion of paragraph 110.1(1)(d) of the Act before subparagraph (i) is replaced by the following: Ecological gifts (d) the total of all amounts each of which is the eligible amount of a gift of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a personal servitude (the rights to which the land is subject and which has a term of not less than 100 years) or a real servitude) if (2) Clauses 110.1(1)(d)(iii)(B) to (D) of the Act are replaced by the following: (B) a municipality in Canada that is approved by that Minister or the designated person in respect of the gift, (C) a municipal or public body performing a function of government in Canada that is approved by that Minister or the designated person in respect of the gift, or (D) a registered charity (other than a private foundation) one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift. (3) The portion of paragraph 110.1(5)(b) of the Act before subparagraph (i) is replaced by the following: (b) where the gift is a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real or personal servitude, the greater of (4) Subsections (1) to (3) apply in respect of gifts made after March 21, 2017. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 40-41 40 (1) The definition exchange rate in subsection 111(8) of the Act is replaced by the following: exchange rate, at any time in respect of a currency of a country other than Canada, means the rate of exchange between that currency and Canadian currency quoted by the Bank of Canada on the day that includes that time or, if that day is not a business day, on the day that immediately precedes that day, or a rate of exchange acceptable to the Minister; (taux de change) (2) Subsection (1) is deemed to have come into force on March 1, 2017. 41 (1) Section 112 of the Act is amended by adding the following after subsection (10): Interest in a partnership — cost reduction (11) In computing the cost to a taxpayer, at any time, of an interest in a partnership that is property (other than capital property) of the taxpayer, there is to be deducted an amount equal to the total of all amounts each of which is the taxpayer’s share of any loss of the partnership from the disposition by the partnership, or another partnership of which the partnership is directly or indirectly a member, of a share of the capital stock of a corporation (referred to in this subsection and subsection (12) as the “partnership loss”) in a fiscal period of the partnership that includes that time or a prior fiscal period, computed without reference to subsections (3.1), (4) and (5.2), to the extent that the taxpayer’s share of the partnership loss has not previously reduced the taxpayer’s cost of the interest in the partnership because of the application of this subsection. Application (12) For the purposes of subsection (11), if a taxpayer disposes of an interest in a partnership at any particular time, the taxpayer’s share of a partnership loss is to be computed as if (a) the fiscal period of each partnership of which the taxpayer is directly or indirectly a member had ended immediately before the time that is immediately before the particular time; (b) any share of the capital stock of a corporation that was property of a partnership referred to in paragraph (a) at the particular time had been disposed of by the relevant partnership immediately before the end of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 41-43 that fiscal period for proceeds equal to its fair market value at the particular time; and (c) each member of a partnership referred to in paragraph (a) were allocated a share of any loss (computed without reference to subsections (3.1), (4) and (5.2)) in respect of dispositions described in paragraph (b) determined by reference to the member’s specified proportion for the fiscal period referred to in paragraph (a). Application (13) For the purposes of subsection (11), if a taxpayer (referred to as the “transferee” in this subsection) acquires an interest in a partnership at any time from another taxpayer (referred to as the “transferor” in this subsection), in computing the cost of the partnership interest to the transferee there is to be added an amount equal to the total of all amounts each of which is an amount deducted from the transferor’s cost of the partnership interest because of subsection (11), other than an amount to which subsection (3.1) would apply. (2) Subsection (1) is deemed to have come into force on September 16, 2016. 42 (1) The description of B in subsection 118(3) of the Act is replaced by the following: B is the lesser of (a) $2,000, and (b) the total of (i) the eligible pension income of the individual for the taxation year, and (ii) the total of all amounts received by the individual in the year on account of a retirement income security benefit payable to the individual under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act. (2) Subsection (1) applies to the 2015 and subsequent taxation years. 43 (1) The portion of paragraph (a) of the definition total ecological gifts in subsection 118.1(1) of the Act before subparagraph (i) is replaced by the following: (a) of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a personal servitude (the rights to which the land is subject and which has a term of not less than 100 years) or a real servitude) 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 43-44 (2) Subparagraphs (b)(i) and (ii) of the definition total ecological gifts in subsection 118.1(1) of the Act are replaced by the following: (i) Her Majesty in right of Canada or of a province, (i.1) a municipality in Canada, or a municipal or public body performing a function of government in Canada, that is approved by that Minister or the designated person in respect of the gift, or (ii) a registered charity (other than a private foundation) one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift, and (3) Paragraph 118.1(20)(b) of the Act is replaced by the following: (b) a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act. (4) Subsections (1) and (2) apply in respect of gifts made after March 21, 2017. (5) Subsection (3) is deemed to have come into force on October 24, 2001. 44 (1) Clauses 118.2(2)(l.9)(ii)(A) and (B) of the Act are replaced by the following: (A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, and (B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment, (2) Clauses 118.2(2)(l.92)(ii)(A) and (B) of the Act are replaced by the following: (A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or (B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 44 (3) Clauses 118.2(2)(l.92)(iii)(A) and (B) of the Act are replaced by the following: (A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or (B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment, and (4) Subsection 118.2(2) of the Act is amended by striking out “or” at the end of paragraph (t), by adding “or” at the end of paragraph (u) and by adding the following after paragraph (u): (v) on behalf of the patient who is authorized to possess marihuana for medical purposes under the Marihuana for Medical Purposes Regulations or section 56 of the Controlled Drugs and Substances Act, for the cost of marihuana purchased from (i) a licensed producer (as defined in subsection 1(1) of the Marihuana for Medical Purposes Regulations), in accordance with a medical document (as defined in subsection 1(1) of the Marihuana for Medical Purposes Regulations), (ii) a health care practitioner (as defined in subsection 1(1) of the Marihuana for Medical Purposes Regulations) in the course of treatment for a medical condition, (iii) a hospital, under subsection 65(2.1) of the Narcotics Control Regulations, or (iv) an individual who possesses an exemption for cultivation or production under section 56 of the Controlled Drugs and Substances Act. (5) Subsection 118.2(2) of the Act, as amended by subsection (4), is amended by adding “or” at the end of paragraph (t) and by replacing paragraphs (u) and (v) with the following: (u) on behalf of the patient who is authorized to possess marihuana, marihuana plants or seeds, cannabis or cannabis oil for their own medical use under the Access to Cannabis for Medical Purposes Regulations or section 56 of the Controlled Drugs and Substances Act, for the cost of marihuana, marihuana plants or seeds, cannabis or cannabis oil purchased in accordance with the Access to Cannabis for Medical Purposes Regulations or section 56 of the Controlled Drugs and Substances Act. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 44-46 (6) Subsections (1) to (3) apply in respect of expenses incurred after September 7, 2017. (7) Subsection (4) is deemed to have come into force on June 7, 2013. (8) Subsection (5) is deemed to have come into force on August 24, 2016. 45 (1) Paragraph 118.6(3)(b) of the Act is replaced by the following: (b) the individual has in the year a mental or physical impairment the effects of which on the individual have been certified in writing, to be such that the individual cannot reasonably be expected to be enrolled as a fulltime student while so impaired, by a medical doctor, a nurse practitioner or, where the impairment is (i) an impairment of sight, by a medical doctor, a nurse practitioner or an optometrist, (i.1) a speech impairment, by a medical doctor, a nurse practitioner or a speech-language pathologist, (ii) a hearing impairment, by a medical doctor, a nurse practitioner or an audiologist, (iii) an impairment with respect to the individual’s ability in feeding or dressing themself, by a medical doctor, a nurse practitioner or an occupational therapist, (iii.1) an impairment with respect to the individual’s ability in walking, by a medical doctor, a nurse practitioner, an occupational therapist or a physiotherapist, or (iv) an impairment with respect to the individual’s ability in mental functions necessary for everyday life (within the meaning assigned by paragraph 118.4(1)(c.1)), by a medical doctor, a nurse practitioner or a psychologist. (2) Subsection (1) applies in respect of certifications made after September 7, 2017. 46 (1) The formula in paragraph 122(1)(c) of the Act is replaced by the following: A − (B − C) 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 46-48 (2) Paragraph 122(1)(c) of the Act is amended by striking out “and” at the end of the description of A, by adding “and” at the end of the description of B and by adding the following after the description of B: C is the total of all amounts each of which is an amount determined for clause (ii)(B) of the description of A in determining the amount for A for the year. (3) Subsections (1) and (2) apply to taxation years that end after September 15, 2016. 47 (1) The formula in subparagraph (b)(i) of the description of A in subsection 122.51(2) of the Act is replaced by the following: (0.25/C) × D (2) Subsection (1) applies to the 2005 and subsequent taxation years. 48 (1) The portion of subparagraph (a)(i) of the definition specified corporate income in subsection 125(7) of the Act before clause (A) is replaced by the following: (i) the total of all amounts each of which is income (other than specified cooperative income) from an active business of the corporation for the year from the provision of services or property to a private corporation (directly or indirectly, in any manner whatever) if (2) Subsection 125(7) of the Act is amended by adding the following in alphabetical order: specified cooperative income, of a corporation (in this definition referred to as the “selling corporation”) for a taxation year, means income of the selling corporation (other than an amount included in the selling corporation’s income under subsection 135(7)) from the sale of the farming products or fishing catches of the selling corporation’s farming or fishing business to a corporation (in this definition referred to as the “purchasing corporation”) if (a) the purchasing corporation deals at arm’s length with the selling corporation, and (b) either 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 48-50 (i) the purchasing corporation would be a cooperative corporation, as defined in subsection 136(2), if the reference in paragraph (c) of that subsection to “business of farming” were read as “business of farming or fishing”, or (ii) the following conditions are met: (A) the selling corporation (or one of its shareholders) or a person who does not deal at arm’s length with the selling corporation (or one of its shareholders) holds a direct or indirect interest in a corporation that (I) would be a cooperative corporation, as defined in subsection 136(2), if the reference in paragraph (c) of that subsection to “business of farming” were read as “business of farming or fishing”, and (II) holds a direct or indirect interest in the purchasing corporation, and (B) the income from the sale of the farming products or fishing catches would not be an amount described in subparagraph (a)(i) of the definition specified corporate income if (I) the condition in subclause (A)(I) were not met, and (II) that subparagraph were read without reference to “(other than specified cooperative income)”; (revenu de société coopérative déterminé) (3) Subsections (1) and (2) apply to taxation years that begin after March 21, 2016. 49 (1) Paragraph 126(4.4)(a) of the Act is replaced by the following: (a) a disposition or acquisition of property deemed to be made by subsection 10(12) or (13) or 45(1), section 70, 128.1 or 132.2, subsections 138(11.3), 138.2(4) or 142.5(2), paragraph 142.6(1)(b) or subsections 142.6(1.1) or (1.2) or 149(10) is not a disposition or acquisition, as the case may be; and (2) Subsection (1) applies to taxation years that begin after 2017. 50 (1) The definition pre-production mining expenditure in subsection 127(9) of the English version of the Act is amended by adding “or” at the end of subparagraph (a)(i). 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 50-52 (2) Subparagraph (f.1)(i) of the definition specified percentage in subsection 127(9) of the Act is replaced by the following: (i) a qualified expenditure of a taxpayer under any of subsections (18) to (20), for the qualified expenditure incurred (A) before 2015, 20%, and (B) after 2014, 15%, (3) Subsection (1) is deemed to have come into force on March 21, 2013. (4) Subsection (2) applies to repayments made after September 16, 2016. 51 (1) Paragraph 129(1.1)(b) of the Act is replaced by the following: (b) was a bankrupt at any time during that taxation year of the particular corporation. (2) Subsection (1) applies in respect of bankruptcies that occur after April 26, 1995. 52 (1) The definition qualifying exchange in subsection 132.2(1) of the Act is replaced by the following: qualifying exchange means a transfer at any time (in this section referred to as the “transfer time”) if (a) the transfer is a transfer of all or substantially all of the property (including an exchange of a unit of a mutual fund trust for another unit of that trust) of (i) a mutual fund corporation (other than a SIFT wind-up corporation) to one or more mutual fund trusts, or (ii) a mutual fund trust to a mutual fund trust; (b) all or substantially all of the shares issued by the mutual fund corporation referred to in subparagraph (a)(i) or the first mutual fund trust referred to in subparagraph (a)(ii) (in this section referred to as the“transferor”) and outstanding immediately before the transfer time are within 60 days after the transfer time disposed of to the transferor; (c) no person disposing of shares of the transferor to the transferor within that 60-day period (otherwise than pursuant to the exercise of a statutory right of dissent) receives any consideration for the shares other than units of one or more mutual fund trusts 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 52 referred to in subparagraph (a)(i) or the second mutual fund trust referred to in subparagraph (a)(ii) (in this section referred to as a “transferee” and, together with the transferor, as the “funds”); (d) if property of the transferor has been transferred to more than one transferee, (i) all shares of each class of shares, that is recognized under securities legislation as or as part of an investment fund, of the transferor are disposed of to the transferor within 60 days after the transfer time, and (ii) the units received in consideration for a particular share of a class of shares, that is recognized under securities legislation as or as part of an investment fund, of the transferor are units of the transferee to which all or substantially all of the assets that were allocated to that investment fund immediately before the transfer time were transferred; and (e) the funds jointly so elect, by filing a prescribed form with the Minister on or before the election’s due date. (échange admissible) (2) The portion of paragraph 132.2(3)(a) of the Act before subparagraph (i) is replaced by the following: (a) each property of a fund, other than property disposed of by the transferor to a transferee at the transfer time and depreciable property, is deemed to have been disposed of, and to have been reacquired by the fund, at the first intervening time, for an amount equal to the lesser of (3) Subsection 132.2(3) of the Act is amended by adding the following after paragraph (a): 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 52 (a.1) in respect of each property transferred by the transferor to a transferee, including an exchange of a unit of a transferee for another unit of that transferee, the transferor is deemed to have disposed of the property to the transferee, and to have received units of the transferee as consideration for the disposition of the property, at the transfer time; (4) The portion of paragraph 132.2(3)(e) of the Act before subparagraph (i) is replaced by the following: (e) except as provided in paragraph (m), the transferor’s cost of any particular property received by the transferor from a transferee as consideration for the disposition of the property is deemed to be (5) Paragraph 132.2(3)(f) of the Act is replaced by the following: (f) the transferor’s proceeds of disposition of any units of a transferee that were disposed of by the transferor at any particular time that is within 60 days after the transfer time in exchange for shares of the transferor, are deemed to be equal to the cost amount of the units to the transferor immediately before the particular time; (6) The portion of paragraph 132.2(3)(g) of the Act before subparagraph (i) is replaced by the following: (g) if, at any particular time that is within 60 days after the transfer time, a taxpayer disposes of shares of the transferor to the transferor in exchange for units of a transferee (7) The portion of subparagraph 132.2(3)(g)(vi) of the Act before clause (A) is replaced by the following: (vi) if the taxpayer is at the particular time affiliated with the transferor or the transferee, (8) Paragraph 132.2(3)(h) of the Act is replaced by the following: (h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1), 146.3(1) or 146.4(1), section 204 or subsection 207.01(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 52 which it is disposed of in accordance with paragraph (g); (9) Paragraphs 132.2(3)(i) and (j) of the Act are replaced by the following: (i) there shall be added to the amount determined under the description of A in the definition refundable capital gains tax on hand in subsection 132(4) in respect of a transferee for its taxation years that begin after the transfer time the amount determined by the formula (A − B) × C/D where A is the transferor’s refundable capital gains tax on hand (within the meaning assigned by subsection 131(6) or 132(4), as the case may be) at the end of its taxation year that includes the transfer time, B is the transferor’s capital gains refund (within the meaning assigned by paragraph 131(2)(a) or 132(1)(a), as the case may be) for that year, C is the total fair market value of property of the transferor disposed of to, net of liabilities assumed by, the transferee on the qualifying exchange, and D is the total fair market value of property of the transferor disposed of to, net of liabilities assumed by, all transferees on the qualifying exchange; (j) no amount in respect of a non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss of a fund for a taxation year that began before the transfer time is deductible in computing the taxable income of any of the funds for a taxation year that begins after the transfer time; (10) Paragraph 132.2(3)(l) of the Act is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) for the purpose of subsection 131(1), a dividend that is made payable at a particular time after the acquisition time but within the 60-day period commencing immediately after the transfer time, and paid before the end of that period, by the transferor to taxpayers that held shares of a class of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 52 shares of the transferor, that was recognized under securities legislation as or as part of an investment fund, immediately before the transfer time is deemed to have become payable at the first intervening time if the transferor so elects in respect of the full amount of the dividend in prescribed manner on or before the day on which any part of the dividend was paid; (11) Subparagraph 132.2(3)(m)(ii) of the Act is replaced by the following: (ii) a transferee is deemed not to have acquired any property that was transferred to it on the qualifying exchange; and (12) Paragraph 132.2(3)(m) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after subparagraph (ii): (iii) the amounts determined under the descriptions of A and B in the definition capital gains redemptions shall be determined as if the year ended immediately before the transfer time; and (13) Paragraph 132.2(3)(n) of the Act is replaced by the following: (n) except as provided in subparagraph (l)(i), the transferor is, notwithstanding subsections 131(8) and (8.01) and 132(6), deemed to be neither a mutual fund corporation nor a mutual fund trust for taxation years that begin after the transfer time. (14) Clause 132.2(4)(b)(ii)(B) of the Act is replaced by the following: (B) the amount that the transferor and the transferee agree on in respect of the property in their election, and (15) Subsection 132.2(4) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) if the property is a unit of the transferee and the unit ceases to exist when the transferee acquires it (or, for greater certainty, when the transferee would but for that cessation have acquired it), paragraphs (a) and (b) do not apply to the transferee. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 52-53 (16) Clause 132.2(5)(c)(ii)(B) of the Act is replaced by the following: (B) the amount that the transferor and the transferee agree on in respect of the property in their election, and (17) Subsection 132.2(7) of the Act is replaced by the following: Amendment or revocation of election (7) The Minister may, on joint application by the funds on or before the due date of an election referred to in paragraph (e) of the definition qualifying exchange in subsection (1), grant permission to amend or revoke the election. (18) Subsections (1) to (7), (9) to (11) and (13) to (17) apply in respect of transfers that occur after March 21, 2017. (19) Subsection (8) is deemed to have come into force on March 23, 2017. (20) Subsection (12) applies in respect of qualifying exchanges where an election in respect of the qualifying exchange is filed or amended after September 7, 2017. 53 (1) Section 138 of the Act is amended by adding the following after subsection (2): Income — designated foreign insurance business (2.1) If a life insurer resident in Canada has a designated foreign insurance business in a taxation year, (a) for the purposes of computing the life insurer’s income or loss from carrying on an insurance business in Canada for that taxation year, the life insurer’s insurance business carried on in Canada is deemed to include the insurance of the specified Canadian risks that are insured as part of the designated foreign insurance business; (b) if, in the immediately preceding taxation year, the designated foreign insurance business was not a designated foreign insurance business, for the purposes of paragraph (4)(a), subsection (9), the definition designated insurance property in subsection (12) and paragraphs 12(1)(d) to (e), the life insurer is deemed to have carried on the business in Canada in that immediately preceding year and to have claimed the maximum amounts to which it would have been entitled under paragraphs (3)(a) (other than under 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 53 subparagraph (3)(a)(ii.1), (iii) or (v)), 20(1)(l) and (l.1) and 20(7)(c) in respect of those specified Canadian risks if that designated foreign insurance business had been a designated foreign insurance business in that immediately preceding year; and (c) for the purposes of subparagraph (3)(a)(ii.1) and subsection 20(22), (i) the life insurer is deemed to have carried on the business in Canada in that immediately preceding year, and (ii) the amounts, if any, that would have been prescribed in respect of the insurer for the purposes of paragraphs (4)(b) and 12(1)(e.1) for that immediately preceding year in respect of the insurance policies in respect of those specified Canadian risks are deemed to have been included in computing its income for that year. Insurance swaps (2.2) For the purposes of this section, one or more risks insured by a life insurer resident in Canada, as part of an insurance business carried on in a country other than Canada, that would not be specified Canadian risks if this Act were read without reference to this subsection, are deemed to be specified Canadian risks if those risks would be deemed to be specified Canadian risks because of paragraph 95(2)(a.21) if the life insurer were a foreign affiliate of a taxpayer. Insurance swaps (2.3) Subsection (2.4) applies in respect of one or more agreements or arrangements if (a) subsection (2.2) applies to deem one or more risks insured by a particular life insurer resident in Canada to be specified Canadian risks; and (b) those agreements or arrangements are in respect of risks described in paragraph (a) and have been entered into by any of the following (in subsection (2.4), referred to as an “agreeing party”): (i) the particular life insurer, (ii) another life insurer resident in Canada that does not deal at arm’s length with the particular life insurer, (iii) a partnership of which a life insurer described in subparagraph (i) or (ii) is a member, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 53 (iv) a foreign affiliate of either the particular life insurer or a person that does not deal at arm’s length with the particular life insurer, and (v) a partnership of which a foreign affiliate described in subparagraph (iv) is a member. Insurance swaps (2.4) If this subsection applies in respect of one or more agreements or arrangements, (a) to the extent that activities performed in connection with those agreements or arrangements can reasonably be considered to be performed for the purpose of obtaining the result described in subparagraph 95(2)(a.21)(ii) (with any modifications that the circumstances require), those activities are deemed to be, (i) if the agreeing party is a life insurer resident in Canada, or a partnership of which such a life insurer is a member, part of the life insurer’s insurance business carried on in Canada, and (ii) if the agreeing party is a foreign affiliate of a taxpayer, or a partnership of which such an affiliate is a member, a separate business, other than an active business, carried on by the affiliate; and (b) any income from those activities (including income that pertains to or is incident to those activities) is deemed to be, (i) if the agreeing party is a life insurer resident in Canada, income from the life insurer’s insurance business carried on in Canada, and (ii) if the agreeing party is a foreign affiliate of a taxpayer, income from the business, other than an active business. Ceding of Canadian risks (2.5) Any income of a life insurer resident in Canada for a taxation year, from its insurance business carried on in a country other than Canada, in respect of the ceding of specified Canadian risks that would, if the life insurer were a foreign affiliate of a taxpayer, be included in computing the life insurer’s income from a business, other than an active business, for the taxation year because of subparagraph 95(2)(a.2)(iii), is to be included in computing the life insurer’s income or loss for that taxation year from its insurance business carried on in Canada, except 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 53 to the extent it is already included because of subsection (2.1), (2.2) or (2.4). Anti-avoidance (2.6) For the purposes of this section, (a) a risk is deemed to be a specified Canadian risk that is insured as part of an insurance business carried on in Canada by a particular life insurer resident in Canada if (i) the particular life insurer insured the risk as part of a transaction or series of transactions, (ii) the risk would not be a specified Canadian risk if this Act were read without reference to this subsection, and (iii) it can reasonably be concluded that one of the purposes of the transaction or series of transactions was to avoid (A) having a designated foreign insurance business, or (B) the application of any of subsections (2.1) to (2.5) to the risk; and (b) if one or more agreements or arrangements in respect of the risk have been entered into by any of the persons or partnerships described in subparagraphs (2.3)(b)(i) to (v) (in this paragraph, referred to as an “agreeing party”), (i) any activities performed in connection with those agreements or arrangements are deemed to be (A) if the agreeing party is a life insurer resident in Canada, or a partnership of which such a life insurer is a member, part of the life insurer’s insurance business carried on in Canada, and (B) if the agreeing party is a foreign affiliate of a taxpayer, or a partnership of which such an affiliate is a member, a separate business, other than an active business, carried on by the affiliate, and (ii) any income from those activities (including income that pertains to or is incident to those activities) is deemed to be, (A) if the agreeing party is a life insurer resident in Canada, income from the life insurer’s insurance business carried on in Canada, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 53-54 (B) if the agreeing party is a foreign affiliate of a taxpayer, income from the business, other than an active business. (2) Paragraph 138(11.91)(d) of the Act is replaced by the following: (d) for the purposes of paragraph (4)(a), subsection (9), the definition designated insurance property in subsection (12) and paragraphs 12(1)(d), (d.1) and (e), the insurer is deemed to have carried on the business in Canada in that preceding year and to have claimed the maximum amounts to which it would have been entitled under paragraphs (3)(a) (other than under subparagraph (3)(a)(ii.1), (iii) or (v)), 20(1)(l) and (l.1) and 20(7)(c) for that year, (3) Subsection 138(12) of the Act is amended by adding the following in alphabetical order: designated foreign insurance business, of a life insurer resident in Canada in a taxation year, means an insurance business that is carried on by the life insurer in a country other than Canada in the year unless more than 90% of the gross premium revenue from the business for the year from the insurance of risks (net of reinsurance ceded) is in respect of the insurance of risks (other than specified Canadian risks) of persons with whom the life insurer deals at arm’s length. (entreprise d’assurance étrangère désignée) insurance, of a risk, includes the reinsurance of the risk. (assurance) specified Canadian risk has the same meaning as in paragraph 95(2)(a.23). (risques canadiens déterminés) (4) Subsections (1) to (3) apply to taxation years of a taxpayer that begin after March 21, 2017. 54 (1) The portion of paragraph 138.1(1)(a) of the Act before subparagraph (i) is replaced by the following: (a) a trust (in this section and section 138.2 referred to as the “related segregated fund trust”) is deemed to be created at the time that is the later of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 54-55 (2) Paragraph 138.1(1)(f) of the Act is replaced by the following: (f) the taxable income of the related segregated fund trust is deemed for the purposes of subsections 104(6), (13) and (24) to be an amount that has become payable in the year to the beneficiaries under the segregated fund trust and the amount therefor in respect of any particular beneficiary is equal to the amount determined by reference to the terms and conditions of the segregated fund policy; (3) Section 138.1 of the Act is amended by adding the following after subsection (2): Transition — pre-2018 non-capital losses (2.1) For the purpose of determining the taxable income of a related segregated fund trust for a taxation year that begins after 2017, the non-capital losses of the related segregated fund trust that arise in a taxation year that begins before 2018 are deemed to be nil. (4) Subsections (1) and (2) apply to taxation years that begin after 2017. 55 (1) The Act is amended by adding the following after section 138.1: Qualifying transfer of funds 138.2 (1) For the purposes of this section, a qualifying transfer occurs at a particular time (in this section referred to as the “transfer time”) if (a) all of the property that, immediately before the transfer time, was property of a related segregated fund trust has become, at the transfer time, the property of another related segregated fund trust (in this section referred to as the “transferor” and “transferee”, respectively, and collectively as the “funds”); (b) every person that had an interest in the transferor immediately before the transfer time (in this section referred to as a “beneficiary”) has ceased to be a beneficiary of the transferor at the transfer time and has received no consideration for the interest other than an interest in the transferee; (c) the trustee of the funds is a resident of Canada; and (d) the trustee of the funds so elects, by filing a prescribed form with the Minister on or before the election’s due date. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 55 General (2) If there has been a qualifying transfer, (a) the last taxation years of the funds that began before the transfer time are deemed to have ended at the transfer time and the next taxation year of the transferee is deemed to have begun immediately after the transfer time; (b) no amount in respect of a non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss of a fund for a taxation year that began before the transfer time is deductible in computing the taxable income of the funds for a taxation year that begins after the transfer time; (c) each beneficiary’s interest in the transferor is deemed to have been disposed of at the transfer time for proceeds of disposition, and each beneficiary’s interest in the transferee received in the qualifying transfer is deemed to have been acquired at a cost, equal to the cost amount to the beneficiary of the interest in the transferor immediately before the transfer time; (d) any amount determined under subsection 138.1(6) in respect of a policyholder’s interest in the transferor is deemed (i) to have been charged, transferred or paid in respect of the policyholder’s interest in the transferee that is acquired on the qualifying transfer, and (ii) to not have been charged, transferred or paid in respect of the policyholder’s interest in the transferor; and (e) subsections 138.1(4) and (5) do not apply in respect of any disposition of an interest in the transferor arising on the qualifying transfer. Transferor – capital gains and losses (3) In respect of a qualifying transfer, each property of the transferor held immediately before the transfer time is deemed to have been disposed of by the transferor immediately before the transfer time for proceeds of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 55 disposition, and to have been acquired by the transferee at the transfer time for a cost, equal to the lesser of (a) the fair market value of the property immediately before the transfer time, and (b) the greater of (i) the cost amount of the property to the transferor immediately before the transfer time, and (ii) the amount that is designated in respect of the property in the election in respect of the qualifying transfer. Transferee – capital gains and losses (4) In respect of a qualifying transfer, each property of the transferee held immediately before the transfer time is deemed to have been disposed of by the transferee immediately before the transfer time for proceeds of disposition, and to have been reacquired by the transferee at the transfer time for a cost, equal to the lesser of (a) the fair market value of the property immediately before the transfer time, and (b) the greater of (i) the cost amount of the property to the transferee immediately before the transfer time, and (ii) the amount that is designated in respect of the property in the election in respect of the qualifying transfer. Loss limitation (5) Subsection 138.1(3) does not apply to capital losses of a fund from the disposition of property on a qualifying transfer under subsection (3) or (4) to the extent that the amount of such capital losses exceeds the amount of capital gains of the fund from the disposition of property on the qualifying transfer under subsection (3) or (4), as the case may be. Due date (6) The due date of an election referred to in paragraph (1)(d) is the later of (a) the day that is six months after the day that includes the transfer time, and (b) a day that the Minister may specify. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 55-57 (2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2018. 56 (1) Clause (b)(iii)(B) of the definition retirement savings plan in subsection 146(1) of the Act is replaced by the following: (B) a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of the Canadian Payments Act, (2) Subsection 146(21.2) of the Act is replaced by the following: Specified pension plan — account (21.2) For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), subparagraph (a)(i) of the definition excluded right or interest in subsection 128.1(10), paragraph (b) of the definition excluded premium in subsection 146.01(1), paragraph (c) of the definition excluded premium in subsection 146.02(1), subsections 146.3(14) and 147(19), section 147.3 and paragraphs 147.5(21)(c) and 212(1)(j.1) and (m) and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant. (3) Subsection (1) is deemed to have come into force on October 24, 2001. (4) Subsection (2) is deemed to have come into force on January 1, 2010, except that in its application before December 14, 2012, subsection 146(21.2) of the Act, as enacted by subsection (2), is to be read without reference to “147.5(21)(c) and”. 57 (1) Paragraph (b) of the definition education savings plan in subsection 146.1(1) of the Act is replaced by the following: (b) a person (in this definition referred to as the “promoter”) 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 57 (2) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order: promoter, of an arrangement, means the person described as the promoter in the definition education savings plan; (promoteur) (3) Paragraphs 146.1(2.1)(a) and (b) of the Act are repealed. (4) Subsection 146.1(5) of the Act is replaced by the following: Trust not taxable (5) No tax is payable under this Part by a trust that is governed by a RESP on its taxable income for a taxation year, except that, if at any time in the taxation year, it holds one or more properties that are not qualified investments for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no income or losses from sources other than those properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose, (a) income includes dividends described in section 83; (b) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and (c) the trust’s income shall be computed without reference to subsection 104(6). (5) Subsection 146.1(7) of the Act is replaced by the following: Educational assistance payments (7) There shall be included in computing an individual’s income for a taxation year the total of all educational assistance payments paid out of registered education savings plans to or for the individual in the year that exceeds the total of all excluded amounts in respect of those plans and the individual for the year. (6) Paragraph 146.1(7.1)(a) of the Act is replaced by the following: (a) each accumulated income payment (other than an accumulated income payment made under subsection (1.2)) received in the year by the taxpayer under a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 57 registered education savings plan that exceeds the total of all excluded amounts in respect of those plans and the individual for the year; and (7) Subsection 146.1(7.2) of the Act is replaced by the following: Excluded amount (7.2) An excluded amount in respect of a registered education savings plan is, (a) for the purposes of subsection (7) and paragraph (7.1)(a), an amount in respect of which a subscriber pays a tax under section 207.05 in respect of the plan, or another plan for which the plan was substituted by the subscriber, that (i) has not been waived, cancelled or refunded, and (ii) has not reduced any other amount that would otherwise be included under subsections (7) or (7.1) in computing an individual’s income for the year or a preceding year; and (b) for the purposes of paragraph (7.1)(b), (i) any amount received under the plan, (ii) any amount received in satisfaction of a right to a refund of payments under the plan, or (iii) any amount received by a taxpayer under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the taxpayer and the taxpayer’s spouse or common- law partner or former spouse or common-law partner in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership. (8) Subsections (1), (2) and (5) to (7) are deemed to have come into force on March 23, 2017. (9) Subsections (3) and (4) apply in respect of (a) any investment acquired after March 22, 2017; and (b) any investment acquired before March 23, 2017 that ceases to be a qualified investment (as defined in subsection 146.1(1) of the Act) after March 22, 2017. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 58 58 (1) The portion of paragraph (d) of the definition contribution in subsection 146.4(1) of the Act before subparagraph (i) is replaced by the following: (d) other than for the purposes of paragraphs (4)(f) to (h) and (n), (2) The portion of subparagraph (a)(i) of the definition disability savings plan in subsection 146.4(1) of the Act before clause (A) is replaced by the following: (i) a corporation (in this definition referred to as the “issuer”) (3) The description of A in the definition specified maximum amount in subsection 146.4(1) of the Act is replaced by the following: A is 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definition qualified investment), and (4) Subparagraph (i) of the description of B in the definition specified maximum amount in subsection 146.4(1) of the Act is replaced by the following: (i) a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definition qualified investment) that is paid to the plan trust in the calendar year, or (5) The portion of the definition specified year in subsection 146.4(1) of the Act before paragraph (a) is replaced by the following: specified year, for a disability savings plan of a beneficiary means the particular calendar year in which a medical doctor or a nurse practitioner licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor or the nurse practitioner, the beneficiary is not likely to survive more than five years and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 58 (6) Subsection 146.4(1) of the Act is amended by adding the following in alphabetical order: issuer, of an arrangement, means the person described as the “issuer” in the definition disability savings plan. (émetteur) qualified investment, for a trust governed by a RDSP, means (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition qualified investment in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a RDSP” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”; (b) a contract for an annuity issued by a licensed annuities provider where (i) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, and (ii) the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract; (c) a contract for an annuity issued by a licensed annuities provider where (i) annual or more frequent periodic payments are or may be made under the contract to the holder of the contract, (ii) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, (iii) neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the plan, (iv) the day on which the periodic payments began or are to begin is not later than the end of the later of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 58 (A) the year in which the beneficiary under the plan attains the age of 60 years, and (B) the year following the year in which the contract was acquired by the trust, (v) the periodic payments are payable for the life of the beneficiary under the plan and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years, (vi) the periodic payments (A) are equal, or (B) are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and (vii) the contract requires that, in the event the plan must be terminated in accordance with paragraph (4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; and (d) a prescribed investment. (placement admissible) (7) Subsection 146.4(1.1) of the Act is replaced by the following: Specified disability savings plan (1.1) If, in respect of a beneficiary under a registered disability savings plan, a medical doctor or a nurse practitioner licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor or the nurse practitioner, the beneficiary is not likely to survive more than five years, the holder of the plan elects in prescribed form and provides the election and the medical certification in respect of the beneficiary to the issuer of the plan, and the issuer notifies the specified Minister of the election in a manner and format acceptable to the specified Minister, then the plan becomes a specified 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 58 disability savings plan at the time the notification is received by the specified Minister. (8) Subparagraph 146.4(4)(f)(i) of the Act is replaced by the following: (i) the beneficiary is not a DTC-eligible individual in respect of the taxation year that includes that time, unless the contribution is a specified RDSP payment in respect of the beneficiary and, at that time, there is a valid election referred to in subsection (4.1) in respect of the beneficiary, or (9) The description of A in paragraph 146.4(4)(l) of the Act is replaced by the following: A is the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definition qualified investment in subsection (1)), (10) Subparagraph (i) of the description of D in paragraph 146.4(4)(l) of the Act is replaced by the following: (i) a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definition qualified investment in subsection (1)) that is paid to the plan trust in the calendar year, or (11) Paragraph 146.4(4.1)(a) of the Act is replaced by the following: (a) a medical doctor or a nurse practitioner licensed to practise under the laws of a province certifies in writing that the nature of the beneficiary’s condition is such that, in the professional opinion of the medical doctor or the nurse practitioner, the beneficiary is likely to become a DTC-eligible individual for a future taxation year; (12) The portion of paragraph 146.4(5)(b) of the Act before subparagraph (i) is replaced by the following: (b) if the trust is not otherwise taxable under paragraph (a) on its taxable income for the year and, at any time in the year, it carries on one or more businesses or holds one or more properties that are not qualified investments for the trust, tax is payable under this 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 58 Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or losses other than from dispositions of those properties, and for this purpose, (13) Subsection 146.4(7) of the Act is replaced by the following: Non-taxable portion of disability assistance payment (7) The non-taxable portion of a disability assistance payment made at a particular time from a registered disability savings plan of a beneficiary is the lesser of the amount of the disability assistance payment and the amount determined by the formula A × B/C + D where A is the amount of the disability assistance payment; B is the amount, if any, by which (a) the total of all amounts each of which is the amount of a contribution made before the particular time to any registered disability savings plan of the beneficiary exceeds (b) the total of all amounts each of which is the amount that would be the non-taxable portion of a disability assistance payment made before the particular time from any registered disability savings plan of the beneficiary, if the formula in this subsection were read without reference to the description of D; C is the amount by which the fair market value of the property held by the plan trust immediately before the payment exceeds the assistance holdback amount in relation to the plan; and D is the amount in respect of which a holder of the plan pays a tax under section 207.05 in respect of the plan, or another plan for which the plan was substituted by the holder, that (a) has not been waived, cancelled or refunded; and (b) has not otherwise been used in the year or a preceding year in computing the non-taxable portion of a disability assistance payment made from the plan or another plan for which the plan was substituted. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 58-60 (14) Subsection 146.4(13) of the Act is amended by adding “and” at the end of paragraph (c) and by repealing paragraph (d). (15) Subsections (1) to (4), (6), (9), (10) and (12) to (14) are deemed to have come into force on March 23, 2017. (16) Subsections (5), (7) and (11) apply in respect of certifications made after September 7, 2017. (17) Subsection (8) applies to the 2014 and subsequent taxation years. 59 (1) Subparagraph 147.3(13.1)(a)(i) of the Act is replaced by the following: (i) the total of all amounts each of which is an amount included under clause 56(1)(a)(i)(C), paragraph 56(1)(z.3), subsections 146(8), (8.3) or (12) or 146.3(5), (5.1) or (11) in computing the individual’s income for the year, to the extent that the amount is not a prescribed withdrawal, (2) Subsection (1) is deemed to have come into force on January 1, 2010, except that in its application before December 14, 2012, subparagraph 147.3(13.1)(a)(i) of the Act, as enacted by subsection (1), is to be read without reference to “paragraph 56(1)(z.3)”. 60 (1) Subsection 147.5(12) of the English version of the Act is replaced by the following: Member’s account (12) For the purposes of paragraph 18(1)(u), subparagraph (a)(i) of the definition excluded right or interest in subsection 128.1(10), paragraph 146(8.2)(b), subsection 146(8.21), paragraphs 146(16)(a) and (b), subparagraph 146(21)(a)(i), paragraph (b) of the definition excluded premium in subsection 146.01(1), paragraph (c) of the definition excluded premium in subsection 146.02(1), subsections 146.3(14) and 147(19) to (21), section 147.3 and paragraphs 212(1)(j.1) and (m), and of regulations made under subsection 147.1(18), a member’s account under a PRPP is deemed to be a registered retirement savings plan under which the member is the annuitant. (2) Section 147.5 of the Act is amended by adding the following after subsection (32): 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 60-61 Contribution deemed not paid (32.1) Where a member of a PRPP or a participating employer in relation to the PRPP has, at any time in a taxation year, received a distribution from the member’s account under the PRPP that is a return of a contribution described in clause 147.5(3)(d)(ii)(A) or (B), the contribution is deemed not to have been a contribution made by the member or the participating employer, as the case may be, to the PRPP to the extent that the contribution is not deducted in computing the taxpayer’s income for the year or a preceding taxation year. (3) Subsections (1) and (2) are deemed to have come into force on December 14, 2012. 61 (1) Paragraph 148(2)(e) of the Act is replaced by the following: (e) a policyholder with an interest in a life insurance policy, issued after 2016, that gives rise to an entitlement (of the policyholder, beneficiary or assignee, as the case may be) to receive all or a portion of an excess described in subparagraph (iv) is deemed, at a particular time, to dispose of a part of the interest and to be entitled to receive proceeds of the disposition equal to that excess or portion, as the case may be, if (i) the policy is an exempt policy, (ii) a benefit on death (as defined in subsection 1401(3) of the Income Tax Regulations) under a coverage (as defined in section 310 of the Income Tax Regulations for the purposes of section 306 of the Income Tax Regulations) under the policy is paid at the particular time, (iii) the payment results in the termination of the coverage but not the policy, and (iv) the amount of the fund value benefit (as defined in subsection 1401(3) of the Income Tax Regulations) paid at the particular time in respect of the coverage exceeds the amount (A) in the case where there is no policy anniversary (as defined in section 310 of the Income Tax Regulations) before the date of death of the individual whose life is insured under the coverage, that would be determined — on the policy anniversary that is on or that first follows that date of death and as though the coverage were not terminated — in respect of the coverage under subclause (A)(I) of the description of B in subparagraph 306(4)(a)(iii) of the Income Tax Regulations, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 61 (B) in any other case, that is determined — on the last policy anniversary before the date of the death of the individual whose life is insured under the coverage — in respect of the coverage under subclause (A)(I) of the description of B in subparagraph 306(4)(a)(iii) of the Income Tax Regulations as it applies for the purpose of subparagraph 306(1)(b)(ii) of the Income Tax Regulations. (2) The portion of subsection 148(4.01) of the Act before paragraph (a) is replaced by the following: Repayment of policy loan on partial surrender (4.01) For the purposes of the definition adjusted cost basis in subsection (9) and paragraph 60(s), a particular amount is deemed to be a repayment made immediately before a particular time by a taxpayer in respect of a policy loan in respect of a life insurance policy if (3) Paragraph 148(4.01)(b) of the Act is replaced by the following: (b) the taxpayer disposes of a part of the taxpayer’s interest in the policy at the particular time; (4) Subparagraph 148(4.01)(d)(ii) of the Act is replaced by the following: (ii) described in subparagraph (i) of the description of C in paragraph (a) of the definition proceeds of the disposition in subsection (9); and (5) Paragraph (b) of the description of E.1 in the definition adjusted cost basis in subsection 148(9) of the Act is replaced by the following: (b) if the policy is issued after 2016 (and, in the case where the particular time at which the policy is issued is determined under subsection (11), the repayment is at or after the particular time), the portion of the loan applied, immediately after the loan, to pay a premium under the policy as provided for under the terms and conditions of the policy (except to the extent that the portion is described in subparagraph (i) of the description of C in paragraph (a) of the definition proceeds of the disposition in this subsection), and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 61 (6) The portion of the description of O in the definition adjusted cost basis in subsection 148(9) of the Act before the formula is replaced by the following: O is, in the case of a policy that is issued after 2016 and is not an annuity contract, the total of all amounts each of which is — if a benefit on death (as defined in subsection 1401(3) of the Income Tax Regulations) under a coverage (as defined in section 310 of the Income Tax Regulations for the purposes of section 306 of the Income Tax Regulations) under the policy is paid before that time as a consequence of the death of an individual whose life is insured under the coverage (and, in the case where the particular time at which the policy is issued is determined under subsection (11), at or after the particular time) and the payment results in the termination of the coverage — the amount, if any, determined with respect to the coverage by the formula (7) The portion of the definition adjusted cost basis in subsection 148(9) of the Act after the description of P is replaced by the following: Q is the amount of the fund value benefit (as defined in subsection 1401(3) of the Income Tax Regulations) under the policy paid in respect of the coverage (as defined in section 310 of the Income Tax Regulations for the purposes of section 306 of the Income Tax Regulations) on the termination, R is the total of all amounts — each of which is in respect of a coverage (as defined in subsection 1401(3) of the Income Tax Regulations) in respect of a specific life or two or more specific lives jointly insured under the coverage referred to in the description of O — that would be the present value, determined for the purposes of section 307 of the Income Tax Regulations, on the last policy anniversary (as defined in section 310 of the Income Tax Regulations) on or before the termination, of the fund value of the coverage (as defined in subsection 1401(3) of the Income Tax Regulations) if the fund value of the coverage on that policy anniversary were equal to the fund value of the coverage on the termination, S is the total of all amounts — each of which is in respect of a coverage (as defined in subsection 1401(3) of the Income Tax Regulations and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 61 referred to in this description as a “particular coverage”) in respect of a specific life or two or more specific lives jointly insured under the coverage referred to in the description of O — that would be determined, on that policy anniversary, for paragraph (a) of the description of C in the definition net premium reserve in subsection 1401(3) of the Income Tax Regulations in respect of the particular coverage, if the benefit on death under the particular coverage, and the fund value of the coverage (as defined in subsection 1401(3) of the Income Tax Regulations), on that policy anniversary were equal to the benefit on death under the particular coverage and the fund value of the coverage, as the case may be, on the termination, T is the amount that would be, on that policy anniversary, the net premium reserve (as defined in subsection 1401(3) of the Income Tax Regulations) in respect of the policy for the purposes of section 307 of the Income Tax Regulations, if the fund value benefit (as defined in subsection 1401(3) of the Income Tax Regulations) under the policy, the benefit on death under each coverage (as defined in subsection 1401(3) of the Income Tax Regulations) and the fund value of each coverage (as defined in subsection 1401(3) of the Income Tax Regulations) on that policy anniversary were equal to the fund value benefit, the benefit on death under each coverage and the fund value of each coverage, as the case may be, under the policy on the termination, and U is the amount, if any, determined under subsection (4) in respect of a disposition before that time of the interest because of paragraph (2)(e) in respect of the payment in respect of the fund value benefit under the policy paid in respect of the coverage (as defined in section 310 of the Income Tax Regulations for the purposes of section 306 of the Income Tax Regulations) on the termination; (coût de base rajusté) (8) The portion of subsection 148(11) of the Act before paragraph (b) is replaced by the following: Loss of grandfathering (11) For the purposes of determining at and after a particular time whether a life insurance policy (other than an annuity contract) issued before 2017 is treated as issued after 2016 under this section (other than this subsection) and sections 306 (other than subsections (9) and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 61-62 (10)), 307, 308, 310, 1401 and 1403 of the Income Tax Regulations (except as they apply for the purposes of subsection 211.1(3)), the policy is deemed to be a policy issued at the particular time if the particular time is the first time after 2016 at which life insurance — in respect of a life, or two or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies — is (a) if the insurance is term insurance, converted to permanent life insurance within the policy; or 62 (1) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.2): (b.3) the following conditions apply: (i) the taxpayer, or a partnership of which the taxpayer is a member (directly or indirectly through one or more partnerships), disposes in the year of real or immovable property, (ii) the taxpayer is not a real estate investment trust (as defined in subsection 122.1(1)) for the year, (iii) if the disposition is by a corporation or partnership, the property is capital property of the corporation or partnership, as the case may be, (iv) the disposition is not reported in (A) if the disposition is by the taxpayer, the return of income of the taxpayer under this Part for the year, or (B) if the disposition is by a partnership, the partnership’s return required to be filed for the year under section 229 of the Income Tax Regulations, and (v) in the case that the disposition is not reported in the return described in clause (iv)(A) or (B) and the taxpayer subsequently reports the disposition by filing a prescribed form amending the taxpayer’s return of income under this Part for the year, the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the prescribed form amending the return is filed; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 62-65 (2) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following: Extended period assessment (4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b), (b.1), (b.3) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to, (3) Subsection 152(4.01) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) if paragraph (4)(b.3) applies to the assessment, reassessment or additional assessment, the disposition referred to in that paragraph. (4) Subsections (1) to (3) apply to taxation years that end after October 2, 2016. 63 (1) Paragraph 181.1(3)(b) of the Act is replaced by the following: (b) that was a bankrupt at the end of the year; (2) Subsection (1) applies in respect of bankruptcies that occur after April 26, 1995. 64 (1) Paragraph 186.1(a) of the Act is replaced by the following: (a) that was, at any time in the year, a bankrupt; or (2) Subsection (1) applies in respect of bankruptcies that occur after April 26, 1995. 65 (1) Paragraph (a) of the description of J in subsection 204.2(1.2) of the Act is replaced by the following: (a) the total of all amounts each of which is an amount (other than the portion of it that reduces the amount on which tax is payable by the individual under subsection 204.1(1)) received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered retirement savings plan, a registered retirement income fund or a specified pension plan and included in computing the individual’s income for the year 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 65-68 (2) Subsection (1) is deemed to have come into force on January 1, 2010, except that in its application before December 14, 2012, paragraph (a) of the description of J in subsection 204.2(1.2) of the Act, as enacted by subsection (1), is to be read without reference to “a pooled registered pension plan”. 66 (1) Part XI of the Act is repealed. (2) Subsection (1) applies to transactions and events occurring, income earned, capital gains accruing and investments acquired after March 22, 2017. 67 (1) The heading of Part XI.01 of the Act is replaced by the following: Taxes in Respect of Registered Plans (2) Subsection (1) is deemed to have come into force on March 23, 2017. 68 (1) The portion of subsection 207.01(1) of the Act before the first definition is replaced by the following: Definitions 207.01 (1) The following definitions and the definitions in subsections 146(1) (other than the definition benefit), 146.1(1), 146.2(1), 146.3(1) and 146.4(1) apply in this Part and Part XLIX of the Income Tax Regulations. (2) The definition RRSP strip 207.01(1) of the Act is repealed. in subsection (3) The definitions controlling individual, registered plan and transitional prohibited property in subsection 207.01(1) of the Act are replaced by the following: controlling individual, of a registered plan, means (a) the holder of a TFSA; (b) a holder of a RDSP; (c) a subscriber of a RESP; or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 68 (d) the annuitant of a RRIF or RRSP. (particulier contrôlant) registered plan means a RDSP, RESP, RRIF, RRSP or TFSA. (régime enregistré) transitional prohibited property, at any time for a particular trust governed by a registered plan (other than a TFSA) of a controlling individual, means a property that is held by the particular trust at that time, that was held (a) on March 22, 2011 by a trust governed by a RRIF or RRSP of the controlling individual and that was a prohibited investment for that trust on March 23, 2011; or (b) on March 22, 2017 by a trust governed by a RDSP or RESP of the controlling individual and that was a prohibited investment for that trust on March 23, 2017. (bien interdit transitoire) (4) Subparagraphs (a)(iii) and (iv) of the definition advantage in subsection 207.01(1) of the Act are replaced by the following: (iii) a payment out of or under the registered plan in satisfaction of all or part of a beneficiary’s or controlling individual’s interest in the registered plan, (iv) the payment or allocation of any amount to the registered plan by the issuer, carrier or promoter, (iv.1) an amount paid under or because of the Canada Disability Savings Act, the Canada Education Savings Act or under a designated provincial program, and (5) The portion of subparagraph (c)(ii) of the definition advantage in subsection 207.01(1) of the Act before clause (A) is replaced by the following: (ii) in the case of a registered plan that is not a TFSA, an amount received by the controlling individual of the registered plan, or by a person who does not deal at arm’s length with the controlling individual (if it is reasonable to consider, having regard to all the circumstances, that the amount was paid in relation to, or would not have been paid but for, property held in connection with the registered 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 68 plan) and the amount was paid as, on account or in lieu of, or in satisfaction of, a payment (6) Paragraph (d) of the definition advantage in subsection 207.01(1) of the Act is replaced by the following: (d) a registered plan strip in respect of the registered plan; and (7) Paragraph (b) of the definition swap transaction in subsection 207.01(1) of the Act is replaced by the following: (b) a payment into the registered plan that is (i) a contribution, a premium or an amount transferred in accordance with paragraph 146.3(2)(f), (ii) described in paragraph (a) or (b) of the definition contribution in subsection 146.1(1), or (iii) described in any of paragraphs (a) to (d) of the definition contribution in subsection 146.4(1); (8) Paragraph (d) of the definition swap transaction in subsection 207.01(1) of the Act is amended by striking out “or” at the end of subparagraph (i) and by adding the following after subparagraph (ii): (iii) both registered plans are RDSPs, or (iv) both registered plans are RESPs; (9) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order: registered plan strip, in respect of a registered plan that is not a TFSA, means the amount of a reduction in the fair market value of property held in connection with the registered plan, if the value is reduced as part of a transaction or event or a series of transactions or events one of the main purposes of which is to enable the controlling individual of the registered plan, or a person who does not deal at arm’s length with the controlling individual, to obtain a benefit in respect of property held in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 68 connection with the registered plan or to obtain a benefit as a result of the reduction, but does not include an amount that is (a) included in the income of a person under section 146, 146.1, 146.3 or 146.4; (b) an excluded withdrawal under section 146.01 or 146.02; (c) described in subsection 146(16), 146.3(14.2) or 146.4(8); (d) a distribution to a trust governed by a RESP under circumstances to which subparagraph 204.9(5)(c)(i) or (ii) applies; (e) an accumulated income payment made to a RDSP under circumstances to which subsection 146.1(1.2) applies; (f) a refund of payments under a RESP; or (g) the non-taxable portion of a disability assistance payment made from a RDSP. (somme découlant d’un dépouillement de régime enregistré) (10) Subsection 207.01(5) of the Act is replaced by the following: Obligation of issuer (5) The issuer, carrier or promoter of a registered plan shall exercise the care, diligence and skill of a reasonably prudent person to minimize the possibility that a trust governed by the registered plan holds a non-qualified investment. (11) Subsection 207.01(7) of the Act is replaced by the following: Adjusted cost base (7) For the purpose of computing the adjusted cost base to a trust governed by a registered plan (other than a TFSA) of a property that is a transitional prohibited property for the trust, the cost to the trust of the property until the property is disposed of by the trust is deemed to be equal to the fair market value of the property, (a) in the case of a RRIF or RRSP, at the end of March 22, 2011; and (b) in the case of a RDSP or RESP, at the end of March 22, 2017. (12) Paragraph 207.01(8)(a) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 68 (a) the property would, in the absence of subsection (9), have ceased at any time (in this subsection and subsection (9) referred to as the “relevant time”) to be a prohibited investment for a trust governed by a registered plan (other than a TFSA) of a controlling individual; (13) Paragraph 207.01(8)(c) of the Act is replaced by the following: (c) in the case of a property held under a RRIF or RRSP, the controlling individual elected under subsection 207.05(4); and (14) Subsection 207.01(9) of the Act is replaced by the following: Prohibited investment status (9) If this subsection applies in respect of a property, the property is deemed to be a prohibited investment at and after the relevant time for every trust governed by a registered plan (other than a TFSA) of the controlling individual referred to in paragraph (8)(a). (15) Paragraph 207.01(12)(a) of the Act is replaced by the following: (a) the property is acquired at any time (in this subsection and subsection (13) referred to as the “exchange time”) by a trust (in this section and subsection (13) referred to as the “exchanging trust”) governed by a registered plan (other than a TFSA) of a controlling individual in exchange for another property (in this subsection referred to as the “exchanged property”) in a transaction to which any of section 51, subsection 85(1) and sections 85.1, 86 and 87 apply; (16) Paragraph 207.01(12)(d) of the Act is replaced by the following: (d) in the case of a property held under a RRIF or RRSP, the controlling individual elected under subsection 207.05(4). (17) Paragraphs 207.01(13)(a) and (b) of the Act are replaced by the following: (a) other than for the purposes of subsection (7), the property is deemed to be, at and after the exchange time, a property, (i) in the case of a trust governed by a RRIF or RRSP, that was (A) held on March 22, 2011 by a trust governed by a RRIF or RRSP of the controlling individual referred to in subsection (12), and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 68-69 (B) a prohibited investment for the trust on March 23, 2011, and (ii) in the case of a trust governed by a RDSP or RESP, that was (A) held on March 22, 2017 by a trust governed by a RDSP or RESP of the controlling individual referred to in subsection (12), and (B) a prohibited investment for the trust on March 23, 2017; and (b) if the property would, in the absence of this paragraph, not be a prohibited investment for the exchanging trust immediately after the exchange time, the property is deemed to be a prohibited investment at and after the exchange time for every trust governed by a registered plan (other than a TFSA) of the controlling individual. (18) Subsections (1) to (6) and (9) apply to transactions and events occurring, income earned, capital gains accruing and investments acquired after March 22, 2017. (19) Subsections (7) and (8) apply (a) after 2021 in relation to transactions undertaken to remove a property from a RDSP or RESP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if the property were retained in the RDSP or RESP; (b) after 2027 in relation to transactions undertaken to remove a transitional prohibited property (as defined in subsection 207.01(1) of the Act, as amended by subsection (3)), from a RDSP or RESP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if the property were retained in the RDSP or RESP; and (c) in any other case, after June 2017. (20) Subsections (10) to (17) are deemed to have come into force on March 23, 2017. 69 (1) Subsection 207.04(3) of the Act is replaced by the following: Both prohibited and non-qualified investment (3) For the purposes of this section and subsections 146(10.1), 146.1(5), 146.2(6), 146.3(9), 146.4(5) and 207.01(6), if a trust governed by a registered plan holds 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 69-71 property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust. (2) Section 207.04 of the Act is amended by adding the following after subsection (4): Apportionment of refund (5) If more than one person is entitled to a refund under subsection (4) for a calendar year in respect of the disposition of a property, the total of all amounts so refundable shall not exceed the amount that would be so refundable for the year to any one of those persons in respect of that disposition if that person were the only person entitled to a refund for the year under that subsection in respect of the disposition. If the persons cannot agree as to what portion of the refund each can so claim, the Minister may fix the portions. Liability for tax (6) Each person who is a holder of a RDSP or a subscriber of a RESP at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax. (3) Subsections (1) and (2) are deemed to have come into force on March 23, 2017. 70 (1) Paragraph 207.05(2)(c) of the Act is replaced by the following: (c) in the case of a registered plan strip, the amount of the registered plan strip. (2) Subsection 207.05(3) of the Act is replaced by the following: Liability for tax (3) Each controlling individual of a registered plan in connection with which a tax is imposed under subsection (1) is jointly and severally, or solidarily, liable to pay the tax except that, if the advantage is extended by the issuer, carrier or promoter of the registered plan or by a person with whom the issuer, carrier or promoter is not dealing at arm’s length, the issuer, carrier or promoter, and not the controlling individual, is liable to pay the tax. (3) Subsections (1) and (2) are deemed to have come into force on March 23, 2017. 71 (1) Section 207.07 of the Act is amended by adding the following after subsection (1): 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 71-73 Multiple holders or subscribers (1.1) If two or more holders of a RDSP, or two or more subscribers of a RESP, are jointly and severally, or solidarily, liable with each other to pay a tax under this Part for a calendar year in connection with the plan, (a) a payment by any of the holders, or any of the subscribers, on account of that tax liability shall to the extent of the payment discharge the joint liability; and (b) a return filed by one of the holders, or one of the subscribers, as required by this Part for the year is deemed to have been filed by each other holder, or each other subscriber, in respect of the joint liability to which the return relates. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 72 (1) Subsection 207.1(3) of the Act is repealed. (2) Subsection (1) applies in respect of (a) any investment acquired after March 22, 2017; and (b) any investment acquired before March 23, 2017 that ceases to be a qualified investment (as defined in subsection 146.1(1) of the Act) after March 22, 2017. 73 (1) Section 207.31 of the Act is replaced by the following: Ecological gift — tax payable 207.31 (1) A charity, municipality in Canada or municipal or public body performing a function of government in Canada (each of which is referred to in this section as the “recipient”) shall, in respect of a property, pay a tax under this Part in respect of a taxation year if (a) at any time in the year, the recipient (i) disposes of the property, or (ii) in the opinion of the Minister of the Environment, or a person designated by that Minister, changes the use of the property; (b) the property is described in paragraph 110.1(1)(d) or in the definition total ecological gifts in subsection 118.1(1); and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 73-75 (c) the disposition or change is made without the authorization of the Minister of the Environment or a person designated by that Minister. Ecological gift — amount of tax (2) The amount of tax to be paid under subsection (1) is equal to 50% of the amount that would be determined for the purposes of section 110.1 or 118.1, if this Act were read without reference to subsections 110.1(3) and 118.1(6), to be the fair market value of the property referred to in subsection (1) if the property were given to the recipient immediately before the disposition or change referred to in paragraph (1)(a). (2) Subsection (1) applies in respect of dispositions made, and changes of use that occur, after March 21, 2017. 74 (1) The portion of subparagraph 212(1)(h)(iii.1) of the Act before clause (A) is replaced by the following: (iii.1) the portion of the payment that is transferred by the payer on behalf of the non-resident person, pursuant to an authorization in prescribed form, to a pooled registered pension plan, registered pension plan, registered retirement savings plan, registered retirement income fund or specified pension plan and that (2) Subsection (1) is deemed to have come into force on January 1, 2010, except that in its application before December 14, 2012, the portion of subparagraph 212(1)(h)(iii.1) of the Act before clause (A), as enacted by subsection (1), is to be read without reference to “pooled registered pension plan”. 75 (1) Paragraph 212.3(1)(a) of the Act is replaced by the following: (a) the subject corporation is immediately after the investment time, or becomes as part of a transaction or event or series of transactions or events that includes the making of the investment, a foreign affiliate of (i) the CRIC, or (ii) a corporation that does not deal at arm’s length with the CRIC (if the condition in this paragraph is satisfied because of this subparagraph and not because of subparagraph (i), such a corporation is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 75 referred to in paragraph (b) as an “other Canadian corporation”); (2) The portion of paragraph 212.3(1)(b) of the Act before subparagraph (ii) is replaced by the following: (b) the CRIC or an other Canadian corporation is immediately after the investment time, or becomes after the investment time and as part of a transaction or event or series of transactions or events that includes the making of the investment, controlled by a non-resident corporation (in this section referred to as the “parent”), and any of the following conditions is satisfied: (i) if, at the investment time, the parent owned all shares of the capital stock of the CRIC and the other Canadian corporation, if applicable, that are owned — determined without reference to paragraph (25)(b) in the case of partnerships referred to in this subparagraph and as if all rights referred to in paragraph 251(5)(b), of the parent, each person that does not deal at arm’s length with the parent and all of those partnerships, were immediate and absolute and the parent and each of the other persons and partnerships had exercised those rights at the investment time — by the parent, persons that are not dealing at arm’s length with the parent and partnerships of which the parent or a non-resident person that is not dealing at arm’s length with the parent is a member (other than a limited partner within the meaning assigned by subsection 96(2.4)), the parent would own shares of the capital stock of the CRIC or the other Canadian corporation that (A) give the holders of those shares 25% or more of all of the votes that could be cast at any annual meeting of the shareholders in respect of all shares of the capital stock of the CRIC or the other Canadian corporation, as the case may be, or (B) have a fair market value of 25% or more of the fair market value of all of the issued and outstanding shares of the capital stock of the CRIC or the other Canadian corporation, as the case may be, (3) Section 212.3 of the Act is amended by adding the following after subsection (7): 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 75-76 Election to not reduce deemed dividend (7.1) Subsection (7) does not apply in respect of an investment made by a CRIC if (a) the investment was made after March 28, 2012 and before August 16, 2013; (b) at the investment time, each share of the capital stock of the CRIC, and each qualifying substitute corporation in respect of the CRIC, that was not owned by the parent was owned by persons or partnerships with which the parent did not deal at arm’s length; and (c) the CRIC files an election with the Minister before 2017 to have this subsection apply in respect of the investment. (4) Subsections (1) and (2) apply in respect of transactions or events that occur after September 15, 2016. For this purpose, a portion of a particular amount owing by, or debt obligation of, a subject corporation is deemed to be a separate amount owing or debt obligation that became owing or was acquired, as the case may be, on January 1, 2017 in the same manner and on the same terms as the particular amount owing or debt obligation, if (a) subsection 212.3(2) of the Act would not apply in respect of the separate amount owing or debt obligation absent the application of subsections (1) and (2); (b) the particular amount owing or debt obligation became owing to, or was acquired by, a CRIC (i) after March 28, 2012 and before September 16, 2016, or (ii) before March 29, 2012, if its maturity date was extended after March 28, 2012 and before September 16, 2016; and (c) the portion is the amount outstanding in respect of the particular amount owing or debt obligation on January 1, 2017. (5) Subsection (3) is deemed to have come into force on March 29, 2012. 76 (1) Subsection 220(3.21) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 76-78 (a.1) a designation is deemed to be an election under a prescribed provision of this Act if the designation is made under the definition principal residence in section 54; and (2) Subsection (1) applies to taxation years that end after October 2, 2016. 77 (1) Paragraph (b) of the definition derivative forward agreement in subsection 248(1) of the Act is amended by striking out “or” at the end of subparagraph (i), by replacing “and” at the end of subparagraph (ii) with “or” and by adding the following after subparagraph (ii): (iii) an underlying interest that relates to a purchase of currency, if it can reasonably be considered that the purchase is agreed to by the taxpayer in order to reduce its risk of fluctuations in the value of the currency in which a purchase or sale by the taxpayer of a capital property is denominated, in which an obligation that is a capital property of the taxpayer is denominated or from which a capital property of the taxpayer derives its value, and (2) Subparagraph (c)(i) of the definition derivative forward agreement in subsection 248(1) of the Act is amended by striking out “or” at the end of clause (A), by replacing “and” at the end of clause (B) with “or” and by adding the following after clause (B): (C) an underlying interest that relates to a sale of currency, if it can reasonably be considered that the sale is agreed to by the taxpayer in order to reduce its risk of fluctuations in the value of the currency in which a purchase or sale by the taxpayer of a capital property is denominated, in which an obligation that is a capital property of the taxpayer is denominated or from which a capital property of the taxpayer derives its value, and (3) Subsections (1) and (2) are deemed to have come into force on March 21, 2013. 78 (1) Section 249.1 of the Act is amended by adding the following after subsection (9): When subsection (9) ceases to apply (9.1) If paragraph (1)(c) did not apply to end the fiscal period of a partnership on December 31 of a calendar year (in this subsection referred to as the “preceding year”) because subsection (9) applies to the partnership, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 78 and to each other partnership described in relation to the partnership by any of subparagraphs (1)(c)(ii) to (iv), (in this subsection referred to collectively as the “aligned multi-tier partnerships” and each individually as an “aligned multi-tier partnership”), (a) subsection (9) ceases to apply — for the purpose of applying paragraph (1)(c) to each of the aligned multitier partnerships — in the calendar year following the preceding year (in this subsection referred to as the “current year”) if another partnership (in this subsection referred to as the “new partnership”) becomes in the current year a member of any of the aligned multitier partnerships, or any of the aligned multi-tier partnerships becomes in the current year a member of the new partnership, unless (i) the fiscal period of the new partnership, and each other partnership described in relation to the new partnership by any of subparagraphs (1)(c)(ii) to (iv), ends in the current year on the same day as the fiscal period of each of the aligned multi-tier partnerships, and (ii) each member (other than a partnership) of each aligned multi-tier partnership — or a subsidiary wholly-owned corporation of such a member — has been a member of the aligned multi-tier partnership from the end of the last fiscal period ending in the preceding year until the time at which the new partnership becomes a member of an aligned multitier partnership, or any of the aligned multi-tier partnerships becomes a member of the new partnership, as the case may be; and (b) if paragraph (a) does not apply because the conditions in subparagraphs (a)(i) and (ii) are met, the new partnership is deemed — for the purpose of applying paragraph (1)(c) to each of the aligned multi-tier partnerships and the new partnership in the current year and subsequent years — to have made the multi-tier alignment election referred to in subsection (9). (2) Subsection (1) applies to fiscal periods of partnerships that end after March 2014. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 79 79 (1) Section 256 of the Act is amended by adding the following after subsection (5.1): Factual control — interpretation (5.11) For the purposes of the Act, the determination of whether a taxpayer has, in respect of a corporation, any direct or indirect influence that, if exercised, would result in control in fact of the corporation, shall (a) take into consideration all factors that are relevant in the circumstances; and (b) not be limited to, and the relevant factors need not include, whether the taxpayer has a legally enforceable right or ability to effect a change in the board of directors of the corporation, or its powers, or to exercise influence over the shareholder or shareholders who have that right or ability. (2) Subsection 256(7) of the Act is amended by adding the following after paragraph (c.1): (c.2) subject to paragraph (a), if, at any particular time, as part of a series of transactions or events, two or more persons acquire shares of a corporation (in this paragraph referred to as the “acquiring corporation”) in exchange for or upon a redemption or surrender of interests in, or as a consequence of a distribution from, a partnership or trust, control of the acquiring corporation and of each corporation controlled by it immediately before the particular time is deemed to have been acquired by a person or group of persons at the particular time unless (i) in respect of each of the corporations, a person affiliated with the partnership or trust owned immediately before the particular time shares of the particular corporation having a total fair market value of more than 50% of the fair market value of all the issued and outstanding shares of the particular corporation immediately before the particular time, (ii) if all the securities (in this subparagraph as defined in subsection 122.1(1)) of the acquiring corporation that were acquired at or before the particular time as part of the series were acquired by one person, the person would (A) not at the particular time control the acquiring corporation, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 79-81 (B) have at the particular time acquired securities of the acquiring corporation having a fair market value of not more than 50% of the fair market value of all the issued and outstanding shares of the acquiring corporation, or (iii) paragraph (c.1) applies, or this paragraph or paragraph (c.1) previously applied, to deem an acquisition of control of the acquiring corporation upon an acquisition of shares that was part of the same series of transactions or events; (3) Subsection (1) applies to taxation years that begin after March 21, 2017. (4) Subsection (2) applies to transactions completed after September 15, 2016, other than transactions the parties to which are obligated to complete pursuant to the terms of an agreement in writing between the parties entered into before September 16, 2016. However, for this purpose, the parties to a transaction shall be considered not to be obligated to complete the transaction if one or more of those parties may be excused from completing the transaction as a result of amendments to the Act. 80 (1) The definition designated provisions in subsection 259(5) of the Act is replaced by the following: designated provisions means sections 146 and 146.1 to 146.4 and Parts X, XI.01 and XI.1, as they apply in respect of investments that are not qualified investments for a trust, and Part X.2; (dispositions désignées) (2) Subsection (1) is deemed to have come into force on March 23, 2017. 81 (1) The definition relevant spot rate in subsection 261(1) of the Act is replaced by the following: relevant spot rate, for a particular day, means, in respect of a conversion of an amount from a particular currency to another currency, (a) if the particular currency or the other currency is Canadian currency, the rate quoted by the Bank of Canada on the particular day (or, if the Bank of Canada ordinarily quotes such a rate, but there is no such rate quoted for the particular day, the closest preceding day for which such a rate is quoted) for the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 81-82 exchange of the particular currency for the other currency, or, in applying paragraphs (2)(b) and (5)(c), another rate of exchange that is acceptable to the Minister; and (b) if neither the particular currency nor the other currency is Canadian currency, the rate — calculated by reference to the rates quoted by the Bank of Canada on the particular day (or, if the Bank of Canada ordinarily quotes such rates, but either of such rates is not quoted for the particular day, the closest preceding day for which both such rates are quoted) for the exchange of Canadian currency for each of those currencies — for the exchange of the particular currency for the other currency, or, in applying paragraphs (2)(b) and (5)(c), another rate of exchange that is acceptable to the Minister. (taux de change au comptant) (2) Subparagraph 261(5)(h)(ii) of the Act is replaced by the following: (ii) the reference in paragraph 95(2)(f.13) to “the rate of exchange quoted by the Bank of Canada on” is to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as a reference to “the relevant spot rate for”. (3) Subsections (1) and (2) are deemed to have come into force on March 1, 2017. 2013, c. 40 Economic Action Plan 2013 Act, No. 2 82 If an individual has filed the election referred to in subsection 60(4) of the Economic Action Plan 2013 Act, No. 2, as and when allowed under that subsection, then for the individual (a) the reference in paragraph 60(4)(a) of that Act to “2006” is to be read as “2003”; and (b) the references in paragraph 60(4)(b) of that Act to “2005” and “2006” are to be read as “2002” and “2003”, respectively. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 83-85 C.R.C., c. 945 Income Tax Regulations 83 (1) Subsection 221(2) of the Income Tax Regulations is replaced by the following: (2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 146.4, 204 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 84 (1) The Regulations are amended by adding the following after section 221: 222 The issuer of a RDSP, or the promoter of a RESP, that governs a trust shall notify the holders of the RDSP, or subscribers of the RESP, in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year, (a) the trust acquires or disposes of property that is a not a qualified investment for the trust; or (b) property held by the trust becomes or ceases to be a qualified investment for the trust. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 85 (1) The portion of paragraph 306(3)(a) of the Regulations before subparagraph (i) is replaced by the following: (a) in the case of a life insurance policy issued before 2017, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of the life insurance policy (2) The portion of subparagraph 306(3)(a)(ii) of the Regulations before clause (A) is replaced by the following: (ii) on each policy anniversary of the life insurance policy on which 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Section 85 (3) The portion of paragraph 306(3)(b) of the Regulations before clause (i)(A) is replaced by the following: (b) in the case of a life insurance policy issued after 2016, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of each coverage under the life insurance policy (i) on the date of (4) The portion of subparagraph 306(3)(b)(ii) of the Regulations before clause (A) is replaced by the following: (ii) on each policy anniversary of the life insurance policy on which (5) The portion of subparagraph 306(3)(b)(iii) of the Regulations before clause (A) is replaced by the following: (iii) on each policy anniversary of the life insurance policy — except to the extent that another exemption test policy has been issued on that date under this subparagraph in respect of a coverage under the life insurance policy — on which (6) The portion of subsection 306(4) of the Regulations before paragraph (a) is replaced by the following: (4) For the purpose of determining whether the condition in paragraph (1)(a) is met on a policy anniversary of a life insurance policy, each exemption test policy issued in respect of the life insurance policy, or in respect of a coverage under the life insurance policy, is deemed (7) The portion of subsection 306(5) of the Regulations before paragraph (a) is replaced by the following: (5) For the purpose of determining the amount of a benefit on death under an exemption test policy, (8) Paragraph 306(6)(b) of the Regulations is replaced by the following: (b) the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds 250% of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Section 85 (i) in the case where the particular time at which the policy is issued is determined under subsection 148(11) of the Act and the policy’s third preceding policy anniversary is before the particular time, the accumulating fund (computed without regard to any amount payable in respect of a policy loan and as though the policy were issued after 2016) in respect of the policy on that third preceding policy anniversary, and (ii) in any other case, the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy on its third preceding policy anniversary; and (9) Subparagraph 306(7)(a)(ii) of the Regulations is replaced by the following: (ii) the date on which it was deemed by subsection (3) or (10), as the case may be, to be issued (determined immediately before that time); and (10) Subsection 306(10) of the Regulations is replaced by the following: (10) Notwithstanding subsections (3) and (4), if a life insurance policy is issued for any purpose at a particular time determined under subsection 148(11) of the Act, then for the purposes of applying this section (other than this subsection and subsection (9)) and section 307 in respect of the life insurance policy at and after the particular time, (a) in respect of each coverage issued before the particular time under the life insurance policy, a separate exemption test policy is deemed to be issued in respect of a coverage under the life insurance policy (i) on the date of issue of the life insurance policy, and (ii) on each policy anniversary that ends before the particular time of the life insurance policy on which (A) the amount of the benefit on death under the life insurance policy exceeds (B) 108% of the amount of the benefit on death under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 85-86 (b) in respect of each coverage issued before the particular time under the life insurance policy, subsection (3) does not apply to deem an exemption test policy to be issued in respect of the policy, or in respect of a coverage under the policy, at any time before the particular time; (c) in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(i), the references in subparagraph (4)(a)(iii) and paragraph (5)(b) to “subparagraph (3)(b)(i)” are to be read as references to “subparagraph (10)(a)(i)”; (d) in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(ii), subparagraph (4)(a)(iv) is to be read as follows: (iv) if the date on which the exemption test policy is issued is determined by subparagraph (10)(a)(ii) at a time before a particular time, the portion of the amount – that amount being the amount that would be determined, at the time immediately before the particular time, under subparagraph (a)(ii), if the exemption test policy were issued in respect of the policy on the same date as the date determined for it under subparagraph (10)(a)(ii) – that can be reasonably allocated to the coverage in the circumstances (and for these purposes, an allocation is considered not to be reasonable if the total of the amounts determined for A and B in subparagraph (a)(iii) is less than the amount determined for C in that subparagraph in respect of the exemption test policy the date of issuance of which is determined under subparagraph (10)(a)(i) in respect of the coverage), and and (e) in applying paragraph (5)(b), the reference in that paragraph to “any time” is to be read as “any time at or after the particular time referred to in subsection (10) in respect of the life insurance policy”. 86 (1) The portion of subsection 404(1) of the French version of the Regulations before paragraph (a) is replaced by the following: 404 (1) Malgré les paragraphes 402(3) et (4), le montant de revenu imposable qu’une banque est réputée avoir gagné au cours d’une année d’imposition dans une province où elle avait un établissement stable correspond au tiers du total des sommes suivantes : 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 86-87 (2) Paragraphs 404(1)(a) and (b) of the Regulations are replaced by the following: (a) the proportion of its taxable income for the year that the total of the salaries and wages paid in the year by the bank to employees of its permanent establishment in the province is of the total of all salaries and wages paid in the year by the bank; and (b) twice the proportion of its taxable income for the year that the total amount of loans and deposits of its permanent establishment in the province for the year is of the total amount of all loans and deposits of the bank for the year. (3) Subsections 404(2) and (3) of the Regulations are replaced by the following: (2) For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the total of the amounts outstanding, on the loans made by the bank, at the close of business on the last day of each month in the year. (3) For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the total of the amounts on deposit with the bank at the close of business on the last day of each month in the year. (4) Subsections (1) to (3) are deemed to have come into force on September 16, 2016. 87 (1) The Regulations are amended by adding the following after section 404: 404.1 (1) Notwithstanding subsections 402(3) and (4), the amount of taxable income that is deemed to have been earned by a federal credit union in a taxation year in a province in which it had a permanent establishment is 1/3 of the total of (a) the proportion of its taxable income for the year that the total of the salaries and wages paid in the year by the federal credit union to employees of its permanent establishment in the province is of the total of all salaries and wages paid in the year by the federal credit union, and (b) twice the proportion of its taxable income for the year that the total amount of loans and deposits of its permanent establishment in the province for the year is of the total amount of all loans and deposits of the federal credit union for the year. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 87-89 (2) For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the total of the amounts outstanding, on the loans made by the federal credit union, at the close of business on the last day of each month in the year. (3) For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the total of the amounts on deposit with the federal credit union at the close of business on the last day of each month in the year. (4) For the purposes of subsections (2) and (3), loans and deposits do not include bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada. (2) Subsection (1) is deemed to have come into force on September 16, 2016. 88 (1) The portion of section 412 of the Regulations before paragraph (a) is replaced by the following: 412 If part of the business of a corporation for a taxation year, other than a corporation described in any of sections 403, 404, 404.1, 405, 406, 407, 408, 409, 410 and 411, consisted of operations normally conducted by a corporation described in one of those sections, the corporation and the Minister may agree to determine the amount of taxable income deemed to have been earned in the year in a particular province to be the total of the amounts computed (2) Subsection (1) is deemed to have come into force on September 16, 2016. 89 (1) Paragraph 600(b) of the Regulations is replaced by the following: (b) subsections 13(4), (7.4) and (29), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 89-92 82(3), 83(2), 91(1.4), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act; (2) Subsection (1) is deemed to have come into force on July 12, 2013. 90 (1) Sections 806 and 806.1 of the Regulations are replaced by the following: 806 For the purposes of paragraph (c) of the definition fully exempt interest in subsection 212(3) of the Act, the Bank for International Settlements and the European Bank for Reconstruction and Development are prescribed. (2) Subsection (1) is deemed to have come into force on January 1, 2008. 91 (1) Paragraph 1104(17)(a) of the Regulations is replaced by the following: (a) the property is included in Class 43.1 because of its subparagraph (c)(i) or is described in any of subparagraphs d(vii) to (ix), (xi), (xiii), (xiv) and (xvi) of Class 43.1 and paragraph (a) of Class 43.2; and (2) Subsection (1) applies in respect of property acquired for use after March 21, 2017 that has not been used or acquired for use before March 22, 2017. 92 (1) Paragraph 1219(1)(f) of the Regulations is replaced by the following: (f) for the drilling or completion of a well for the project, other than (i) a well that is, or can reasonably be expected to be, used for the installation of underground piping that is included in paragraph (d) of Class 43.1 or paragraph (b) of Class 43.2 in Schedule II, or (ii) a well referred to in paragraph (h); (2) Subsection 1219(1) of the Regulations is amended by adding “or” at the end of paragraph (g) and by adding the following after that paragraph: (h) if at least 50% of the depreciable property to be used in the project, determined by reference to its capital cost, is described in subparagraph (d)(vii) of Class 43.1, (i) for the drilling of a well, or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 92-93 (ii) solely for the purpose of determining the extent and quality of a geothermal resource. (3) Subparagraphs 1219(2)(b)(iv) and (v) of the Regulations are replaced by the following: (iv) included in the capital cost of property that, but for this section, would be depreciable property (other than property that would be included in Class 14.1 of Schedule II), except as provided by paragraph (1)(b), (d), (e), (f), (g) or (h), (v) included in the capital cost of property that, but for this section, would be property included in Class 14.1 of Schedule II, except as provided by any of paragraphs (1)(a) to (e) or subparagraph (h)(ii), (4) Clause 1219(2)(b)(xi)(A) of the Regulations is replaced by the following: (A) the construction, renovation or alteration of the property, except as provided by paragraph (1)(b), (f), (g) or (h), or (5) Section 1219 of the Regulations is amended by adding the following after subsection (4): (5) A Canadian renewable and conservation expense does not include an expense incurred by a taxpayer at any time that is in respect of a geothermal project (a) that at that time is described in paragraph (1)(h); and (b) in respect of which the taxpayer is not at that time in compliance with the requirements of all environmental laws, by-laws and regulations of (i) Canada, (ii) a province or a municipality in Canada, or (iii) a municipal or public body performing a function of government in Canada. (6) Subsections (1) to (5) apply in respect of expenses incurred after March 21, 2017. 93 The portion of paragraph 1401(5)(b) of the Regulations before subparagraph (i) is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 93-95 (b) if the policy is issued before 2017 and at a particular time after 2016 life insurance — in respect of a life, or two or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies — is added to the policy or is term insurance that is converted into permanent life insurance within the policy, then that insurance is deemed to be a separate life insurance policy issued at the particular time unless 94 The definitions official receipt and other recipient of a gift in section 3500 of the Regulations are replaced by the following: official receipt means a receipt for the purposes of paragraph 110.1(2)(a) or 118.1(2)(a) of the Act, containing information required by section 3501 or 3502; (reçu officiel) other recipient of a gift means a person, to whom a gift is made by a taxpayer, referred to in any of paragraph 110.1(1)(c), subparagraph 110.1(2.1)(a)(ii) and paragraphs (a) and (d) of the definition qualified donee in subsection 149.1(1) of the Act; (autre bénéficiaire d’un don) 95 (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following: 4900 (1) For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act, paragraph (h) of the definition qualified investment in section 204 of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is (2) The portion of paragraph 4900(1)(g) of the Regulations before subparagraph (i) is replaced by the following: (g) a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Section 95 person who is a connected person under the governing plan of the plan trust, as a result of the ownership by (3) Subsection 4900(5) of the Regulations is replaced by the following: (5) For the purposes of paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year. (4) The portion of subsection 4900(6) of the Regulations before paragraph (b) is replaced by the following: (6) Subject to subsection (9), for the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act and paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered retirement savings plan, a registered education savings plan and a registered retirement income fund at any time if at that time the property is not a prohibited investment for the trust and is (a) a share of the capital stock of an eligible corporation (as defined in subsection 5100(1)); (5) Subsection 4900(8) of the Regulations is repealed. (6) Subsections 4900(12) and (13) of the Regulations are repealed. (7) The portion of subsection 4900(14) of the Regulations before paragraph (a) is replaced by the following: (14) For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 95-97 Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a RESP, RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the property (8) Subparagraph 4900(14)(a)(iii) of the Regulations is replaced by the following: (iii) a qualifying share in respect of a specified cooperative corporation and the RESP, RRIF, RRSP or TFSA; and (9) Subsection 4900(15) of the Regulations is replaced by the following: (15) For the purposes of the definition prohibited investment in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a RESP, RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii). (10) Subsections (1) and (3) are deemed to have come into force on March 23, 2017. (11) Subsections (2) and (4) to (9) apply in respect of (a) any investment acquired after March 22, 2017; and (b) any investment acquired before March 23, 2017 that ceases to be a qualified investment (as defined in subsection 146.1(1) of the Act) after March 22, 2017. 96 Section 5600 of the Regulations is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i): (j) the distribution by BHP Billiton Limited, on May 24, 2015 to its common shareholders, of common shares of South32 Limited. 97 (1) Subsection 5907(1.07) of the Regulations is replaced by the following: (1.07) For the purposes of paragraph (1.03)(a), a specified owner in respect of the particular corporation is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of another corporation that are considered to be owned for the purposes of the Act solely because the specified owner or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Section 97 the other corporation is not treated as a corporation under the relevant foreign tax law. (2) Subsection 5907(8) of the Regulations is replaced by the following: (8) For the purposes of computing the various amounts referred to in this section, (a) the first taxation year of a foreign affiliate, of a corporation resident in Canada, that is formed as a result of a foreign merger (within the meaning assigned by subsection 87(8.1) of the Act) is deemed to have commenced at the time of the merger, and a taxation year of a predecessor corporation (within the meaning assigned by subsection 5905(3)) that would otherwise have ended after that time is deemed to have ended immediately before that time; and (b) if subsection 91(1.2) of the Act applies at any particular time in respect of a foreign affiliate of a corporation, the various amounts are to be computed, in respect of attributed amounts for the stub period in respect of the particular time, as if (i) the affiliate’s taxation year that would have included the particular time ended at the stub-period end time in respect of the particular time, and (ii) all transactions or events, giving rise to attributed amounts, that occurred at the particular time, occurred at the stub-period end time in respect of the particular time. (8.1) The following definitions apply in paragraph 5907(8)(b). attributed amounts, for a stub period, in respect of a particular time referred to in paragraph (8)(b), of a foreign affiliate of a corporation, means (a) the amounts of any income, gain or loss of the affiliate for the stub period that are relevant in determining amounts that are to be included or may be deducted under section 91 of the Act in respect of the affiliate for the particular stub period, in computing the income of the corporation; (b) any portion of the affiliate’s capital gain or capital loss – from a disposition, in the stub period or at the particular time referred to in paragraph (8)(b), of a property that is not an excluded property – that is not described in paragraph (a); and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Section 97 (c) any income or profits tax paid to the government of a country, in respect of amounts described in paragraph (a) or (b). (sommes attribuées) stub period, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means a period that ends at the stub-period end time in respect of the particular time and begins immediately after the later of (a) the last time, if any, before the particular time that subsection 91(1.2) applied in respect of the affiliate, and (b) the end of the affiliate’s last taxation year before the particular time. (période tampon) stub-period end time, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means the time that is immediately before the particular time. (fin de la période tampon) (3) Subsection (1) applies to income or profits tax paid, and amounts referred to in subsections 5907(1.1) and (1.2) of the Regulations, in respect of the income of a foreign affiliate of a corporation for taxation years of the foreign affiliate that end in taxation years of the corporation that end after October 24, 2012. (4) Subsection (2) is deemed to have come into force on July 12, 2013, except that if at any time in the period that begins on July 12, 2013 and ends on September 7, 2017, subsection 91(1.2) of the Act (as enacted by subsection 28(1)) applies in respect of a taxpayer, and the taxpayer and all corporations that are connected persons (within the meaning assigned by paragraph (a) of the definition connected person in subsection 91(1.3) of the Act (as enacted by subsection 28(1))) to the taxpayer at the time file with the Minister an election in prescribed manner on or before the earliest of the filing-due date of the taxpayer and those corporations for their taxation year that includes the day on which this Act receives royal assent, for the taxpayer and those corporations, subsection (2) is deemed to have come into force on September 8, 2017 and not on July 12, 2013. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 98-101 98 (1) The portion of subsection 6204(1) of the Regulations before paragraph (a) is replaced by the following: 6204 (1) For the purposes of subparagraph 110(1)(d)(i.1) of the Act, a share is a prescribed share of the capital stock of a corporation at the time of its sale or issue, as the case may be, if, at that time, (2) Subsection (1) applies in respect of acquisitions of securities and transfers or dispositions of rights that occur after 4:00 pm Eastern Standard Time on March 4, 2010. 99 (1) Section 6503 of the Regulations is replaced by the following: 6503 For the purposes of paragraphs 60(j.02) to (j.04) of the Act, subsection 41(5) of the Canadian Forces Superannuation Act, subsections 39(7) and 42(8) of the Public Service Superannuation Act and subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act are prescribed. (2) Subsection (1) applies in respect of repayments made after March 2007. 100 (1) Section 7300 of the Regulations is amended by striking out “or” at the end of paragraph (c) and by adding the following after that paragraph: (c.1) an amount that is the portion of a student loan forgiven under a provincial program that would be a prescribed amount because of paragraph (c) if section 11.1 of the Canada Student Loans Act or 9.2 of the Canada Student Financial Assistance Act applied to loans under that program; or (2) Subsection (1) is deemed to have come into force on January 1, 2013. 101 (1) Subparagraph 8302(4)(b)(i) of the Regulations is replaced by the following: (i) the election may be made only if the life expectancy of the individual is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the individual resides, and (2) Subsection (1) applies in respect of certifications made after September 7, 2017. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Section 102 102 (1) Clause 8503(3)(a)(v)(A) of the Regulations is replaced by the following: (A) both (I) subparagraph (v.1) does not apply, and (II) benefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, or (2) Paragraph 8503(3)(a) of the Regulations is amended by adding the following after subparagraph (v): (v.1) a portion — determined by reference to the proportion of property that has been transferred, as described in clause (B) — of a period in respect of which (A) benefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, and (B) pursuant to the Pension Benefits Standards Act, 1985 or a similar law of a province, a portion of property held in connection with the benefits described in clause (A) has been transferred to the provision and the balance of property is required to be transferred to the provision at a later date, (3) Paragraphs 8503(4)(e) and (f) of the Regulations are replaced by the following: (e) where additional lifetime retirement benefits are provided under the provision to a member because the member is totally and permanently disabled, the additional benefits are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the member is totally and permanently disabled; and (f) where lifetime retirement benefits are provided under the provision to a member in respect of a period of disability of the member, the benefits, to the extent that they would not be in accordance with paragraph 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 102-104 (3)(a) if that paragraph were read without reference to subparagraph (iv) thereof, are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the period is a period of disability. (4) Subsections (1) and (2) apply in respect of transfers of property that occur after 2012. (5) Subsection (3) applies in respect of reports made after September 7, 2017. 103 (1) Clause 8517(6)(b)(ii)(A) of the Regulations is replaced by the following: (A) the election may be made only if the life expectancy of the person is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the person resides, and (2) Subsection (1) applies in respect of certifications made after September 7, 2017. 104 (1) Subparagraph (d)(iv) of Class 43.1 in Schedule II to the Regulations is replaced by the following: (iv) heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, reducing the requirement to acquire energy or extracting heat for sale, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in reusing the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment), is a building or is equipment that recovers heat primarily for use for heating water in a swimming pool, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 104-105 (2) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations is replaced by the following: (vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy or heat energy, or both electrical and heat energy, solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of completing a well (including the wellhead and production string), or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, equipment used to heat water for use in a swimming pool, equipment described in subclause (i)(A)(II), property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its paragraph (a.1), (3) Clause (d)(xv)(B) of Class 43.1 in Schedule II to the Regulations is replaced by the following: (B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv), (vii) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and (4) Subsection (1) applies to property acquired after March 3, 2010. (5) Subsections (2) and (3) apply in respect of property acquired for use after March 21, 2017 that has not been used or acquired for use before March 22, 2017. SOR/2011-188 Regulations Amending the Income Tax Regulations (Omnibus, No. 3) 105 The reference in subsection 29(14) of the Regulations Amending the Income Tax Regulations (Omnibus, No. 3) to “1984” is deemed to have always been a reference to “1994”. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Section 106 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) R.S., c. E-15 Excise Tax Act 106 (1) The definition Agency in subsection 123(1) of the Excise Tax Act is repealed. (2) The definition credit union in subsection 123(1) of the Act is replaced by the following: credit union has the meaning assigned by subsection 137(6) of the Income Tax Act and includes a corporation described in paragraph (a) of the definition deposit insurance corporation in subsection 137.1(5) of that Act; (caisse de crédit) (3) The definition coopérative in subsection 123(1) of the French version of the Act is replaced by the following: coopérative S’entend d’une coopérative d’habitation ou de toute autre société coopérative, au sens du paragraphe 136(2) de la Loi de l’impôt sur le revenu. (cooperative corporation) (4) Paragraph (a) of the definition pension entity in subsection 123(1) of the Act is replaced by the following: (a) a trust governed by the pension plan, (5) Paragraph (a) of the definition pension plan in subsection 123(1) of the Act is replaced by the following: (a) that governs a trust, (6) Subsection 123(1) of the Act is amended by adding the following in alphabetical order: master pension entity of a pension plan means a person that is not a pension entity of the pension plan and that is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 106-107 (a) a corporation described in paragraph 149(1)(o.2) of the Income Tax Act, one or more shares of which are owned by a pension entity of the pension plan, or (b) a trust prescribed to be a master trust for the purposes of paragraph 149(1)(o.4) of the Income Tax Act, one or more units of which are owned by a pension entity of the pension plan; (entité de gestion principale) master pension factor means, in respect of a pension plan for a fiscal year of a master pension entity, the amount (expressed as a percentage) determined by the formula A/B where A is the total value, on the first day of the fiscal year, of the units or shares of the master pension entity that are held by pension entities of the pension plan on that day, and B is the total value, on the first day of the fiscal year, of the units or shares of the master pension entity; (facteur d’entité de gestion principale) (7) Subsections (2) and (3) are deemed to have come into force on March 1, 1994. (8) Subsections (4) and (5) are deemed to have come into force on July 23, 2016. (9) The definition master pension entity in subsection 123(1) of the Act, as enacted by subsection (6), is deemed to have come into force on September 23, 2009. (10) The definition master pension factor in subsection 123(1) of the Act, as enacted by subsection (6), is deemed to have come into force on July 22, 2016. 107 (1) The Act is amended by adding the following after section 130: Arrangements deemed to be trusts 130.1 If an arrangement is deemed to be a trust under paragraph 248(3)(b) or (c) of the Income Tax Act, the following rules apply for the purposes of this Part: (a) the arrangement is deemed to be a trust; (b) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 107-108 (c) in the case of an arrangement referred to in paragraph 248(3)(b) of that Act, a person that has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in that paragraph is deemed to be beneficially interested in the trust; and (d) in the case of an arrangement referred to in paragraph 248(3)(c) of that Act, any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor. (2) Subsection (1) is deemed to have come into force on July 23, 2016. 108 (1) The portion of subsection 141.01(1.2) of the French version of the Act before paragraph (a) is replaced by the following: Primes et subventions (1.2) Pour l’application du présent article, le montant d’aide — prime, subvention, prêt à remboursement conditionnel ou autre montant semblable — qu’un inscrit reçoit d’une des personnes suivantes et qui n’est pas la contrepartie d’une fourniture, mais qu’il est raisonnable de considérer comme étant accordé en vue de financer une activité de l’inscrit comportant la réalisation de fournitures taxables sans contrepartie, est réputé être la contrepartie de ces fournitures : (2) The portion of subsection 141.01(4) of the French version of the Act before paragraph (a) is replaced by the following: Fournitures gratuites (4) Lorsqu’un fournisseur effectue, dans le cadre de son initiative, la fourniture taxable (appelée « fourniture gratuite » au présent paragraphe) d’un bien ou d’un service sans contrepartie ou pour une contrepartie symbolique et qu’il est raisonnable de considérer que la fourniture gratuite a pour objet notamment de faciliter, de favoriser ou de promouvoir soit une initiative, soit l’acquisition, la consommation ou l’utilisation d’autres biens ou services par une autre personne, les présomptions suivantes s’appliquent : (3) Subsections 141.01(6) and (7) of the French version of the Act are replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 108-109 Présomption de faits ou de circonstances (6) Lorsqu’une présomption de faits ou de circonstances prévue par une disposition de la présente partie, sauf les paragraphes (2) à (4), s’applique à la condition qu’un bien ou un service soit, ou ait été, consommé ou utilisé, ou acquis, importé ou transféré dans une province participante pour consommation ou utilisation, dans une certaine mesure dans le cadre des activités, commerciales ou autres, d’une personne, ou hors de ce cadre, cette mesure est déterminée en conformité avec les paragraphes (2) ou (3) en vue d’établir si la condition est remplie. Toutefois, si cette condition est ainsi remplie et que les autres conditions d’application de la disposition sont réunies, la présomption prévue par cette disposition s’applique malgré les paragraphes (2) et (3). Exception (7) Les dispositions de la présente partie portant que la contrepartie d’une fourniture est réputée ne pas en être une, qu’une fourniture est réputée effectuée sans contrepartie ou qu’une personne est réputée ne pas avoir effectué une fourniture ne s’appliquent pas aux paragraphes (1) à (4). 109 (1) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (iv): (iv.1) a TFSA, (2) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (vi): (vi.1) a registered disability savings plan, (3) Subparagraph 149(5)(a)(xi) of the Act is repealed. (4) Paragraphs 149(5)(b) to (e) of the French version of the Act are replaced by the following: b) la société de placement, au sens de cette loi; c) la société de placement hypothécaire, au sens de cette loi; d) la société de placement à capital variable, au sens de cette loi; e) la société de placement appartenant à des non-résidents, au sens de cette loi; (5) Paragraph 149(5)(g) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 109-111 (g) a prescribed person or a person of a prescribed class. (6) Subsections (1) to (3) and (5) apply in respect of any taxation year of a person that begins after July 22, 2016. (7) Subsection (4) is deemed to have come into force on March 1, 1994. 110 Subsection 155(1) of the French version of the Act is replaced by the following: Fourniture entre personnes ayant un lien de dépendance 155 (1) Pour l’application de la présente partie, les règles ci-après s’appliquent lorsque la fourniture d’un bien ou d’un service est effectuée entre personnes ayant entre elles un lien de dépendance, sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service au moment de la fourniture, et que l’acquéreur n’est pas un inscrit qui acquiert le bien ou le service pour le consommer, l’utiliser ou le fournir exclusivement dans le cadre de ses activités commerciales : a) si la fourniture est effectuée sans contrepartie, la fourniture est réputée être effectuée pour une contrepartie, payée au moment de la fourniture, égale à la juste valeur marchande du bien ou du service à ce moment; b) si la fourniture est effectuée pour une contrepartie, la valeur de la contrepartie est réputée égale à la juste valeur marchande du bien ou du service au moment de la fourniture. 111 (1) Section 157 of the Act is amended by adding the following after subsection (2): Election for nil consideration — master pension entity (2.1) A person that is a participating employer of a pension plan and a master pension entity of the pension plan may jointly make an election in respect of taxable supplies made by the person to the master pension entity if A ≥ 90% where A is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year of the master pension entity that includes the day on which the election becomes effective. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 111 Effect of subsection (2.1) election (2.2) For the purposes of this Part, every taxable supply made by a participating employer to a master pension entity at a time when a joint election made under subsection (2.1) by the participating employer and the master pension entity is in effect is deemed to have been made for no consideration. (2) Subsection 157(4) of the Act is replaced by the following: Non-application of subsection (2.2) (3.1) Subsection (2.2) does not apply to (a) a supply deemed under section 172.1 to have been made; (b) a supply of property or a service that is not acquired by a master pension entity of a pension plan for consumption, use or supply by the master pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan; (c) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; (d) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; or (e) a supply made in prescribed circumstances or made by a prescribed person. Joint revocation (4) The persons that have jointly made an election under subsection (2) or (2.1) may jointly revoke the election. (3) The portion of subsection 157(5) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 111 Form of election and revocation (5) An election under subsection (2) or (2.1) and a revocation of an election under subsection (4) must (4) Subsections 157(6) to (10) of the Act are replaced by the following: Cessation (6) An election made jointly under subsection (2) or (2.1) by a person that is a participating employer of a pension plan and by another person that is a pension entity of the pension plan or a master pension entity of the pension plan ceases to have effect on the earliest of (a) the day on which the person ceases to be a participating employer of the pension plan, (b) the day on which the other person ceases to be a pension entity of the pension plan or a master pension entity of the pension plan, as the case may be, (c) the day on which a joint revocation of the election under subsection (4) becomes effective, (d) the day specified in a notice of revocation of the election sent to the person under subsection (9), and (e) in the case of an election under subsection (2.1), the first day of a fiscal year of the other person for which A < 90% where A is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year. Notice of intent (7) If an election made jointly under subsection (2) or (2.1) by a participating employer of a pension plan and by a pension entity of the pension plan or a master pension entity of the pension plan is in effect at any time in a fiscal year of the participating employer and if the participating employer fails to account for, as and when required under this Part, any tax deemed to have been collected by the participating employer on the last day of the fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the participating employer and to the pension entity or the master pension entity, as the case may be, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 111 that the Minister proposes to revoke the election as of the first day of the fiscal year. Representations to Minister (8) Upon receipt of a notice of intent, a participating employer must establish to the satisfaction of the Minister that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer under any of subsections 172.1(5) to (6.1) in respect of the pension plan. Notice of revocation (9) If, after 60 days after the day on which the notice of intent was sent by the Minister to the participating employer, the Minister is not satisfied that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer on the last day of a particular fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of revocation”) to the participating employer and to the pension entity or master pension entity with which the participating employer made the election that the election is revoked as of the day specified in the notice of revocation, and that day is not to be earlier than the day specified in the notice of intent and must be the first day of any particular fiscal year. Revocation — effect (10) For the purposes of this Part, an election under subsection (2) or (2.1) that has been revoked by the Minister under subsection (9) is deemed never to have been in effect on any day on or after the day specified in the notice of revocation. (5) Subsections (1) to (4) apply in respect of supplies made after July 21, 2016, other than (a) a supply made by a person of all or part of property or a service, if the person acquired the property or service before the first fiscal year of the person that begins after July 21, 2016; and (b) a supply made by a person of property or a service, if the person, before the first fiscal year of the person that begins after July 21, 2016, consumes or uses an employer resource, as defined in subsection 172.1(1) of the Act, of the person for the purpose of making the supply. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 112-114 112 The portion of subsection 167(1.1) of the French version of the Act before paragraph (a) is replaced by the following: Effet du choix (1.1) Dans le cas où un fournisseur et un acquéreur font conjointement le choix prévu au paragraphe (1) et que ce dernier, s’il est un inscrit, présente le choix au ministre au plus tard le jour où il est tenu de produire aux termes de la section V la déclaration visant sa première période de déclaration au cours de laquelle une taxe serait, sans le présent paragraphe, devenue payable relativement à la fourniture d’un bien ou d’un service effectuée aux termes de la convention portant sur la fourniture de l’entreprise ou de la partie d’entreprise visée par le choix, ou à la date ultérieure fixée par le ministre sur demande de l’acquéreur, les règles suivantes s’appliquent : 113 Subsection 168(9) of the French version of the Act is replaced by the following: Dépôt (9) Pour l’application du présent article, un dépôt (sauf celui afférent à une enveloppe ou un contenant auxquels l’article 137 s’applique), remboursable ou non, versé au titre d’une fourniture n’est considéré comme la contrepartie payée à ce titre que lorsque le fournisseur le considère ainsi. 114 (1) The portion of subsection 172.1(1) of the Act before the first definition is replaced by the following: Definitions 172.1 (1) The following definitions apply in this section and in section 172.2. (2) The definition excluded activity in subsection 172.1(1) of the Act is replaced by the following: excluded activity, in respect of a pension plan, means an activity undertaken exclusively (a) for compliance by a participating employer of the pension plan as an issuer, or prospective issuer, of securities with reporting requirements under a law of Canada or of a province in respect of the regulation of securities; (b) for evaluating the feasibility or financial impact on a participating employer of the pension plan of establishing, altering or winding-up the pension plan, other than an activity that relates to the preparation of an 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 actuarial report in respect of the plan required under a law of Canada or of a province; (c) for evaluating the financial impact of the pension plan on the assets and liabilities of a participating employer of the pension plan; (d) for negotiating changes to the benefits under the pension plan with a union or similar organization of employees; (e) if the pension plan is a pooled registered pension plan, for compliance by a participating employer of the pension plan as a PRPP administrator of the pension plan with requirements under the Pooled Registered Pension Plans Act or a similar law of a province, provided the activity is undertaken exclusively for the purpose of making a taxable supply of a service to a pension entity of the pension plan that is to be made (i) for consideration that is not less than the fair market value of the service, and (ii) at a time when no election under subsection 157(2) made jointly by the participating employer and the pension entity is in effect; or (f) in relation to a part of the pension plan that is a defined contribution pension plan or that is a defined benefits pension plan, if no pension entity of the pension plan administers that part of the pension plan or holds assets in respect of that part of the pension plan; or (g) for prescribed purposes. (activité exclue) (3) Paragraphs (a) and (b) of the definition pension activity in subsection 172.1(1) of the Act are replaced by the following: (a) the establishment, management or administration of the pension plan or of a pension entity or master pension entity of the pension plan; or (b) the management or administration of assets in respect of the pension plan, including assets held by a pension entity or master pension entity of the pension plan. (activité de pension) (4) Paragraphs (a) to (c) of the definition specified supply in subsection 172.1(1) of the Act are replaced by the following: (a) a taxable supply deemed to have been made under subsection (5) or (5.1) of all or part of property or a service that the participating employer acquired for 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 the purpose of making a supply of all or part of the property or service to a pension entity or master pension entity of the pension plan; (b) a taxable supply deemed to have been made under subsection (6) or (6.1) of an employer resource of the participating employer that the participating employer consumed or used for the purpose of making a supply of property or a service to a pension entity or master pension entity of the pension plan; or (c) a taxable supply deemed to have been made under subsection (7) or (7.1) of an employer resource of the participating employer that the participating employer consumed or used in the course of pension activities in respect of the pension plan. (fourniture déterminée) (5) Subsection 172.1(1) of the Act is amended by adding the following in alphabetical order: defined benefits pension plan means the part of a pension plan that is in respect of benefits under the plan that are determined in accordance with a formula set forth in the plan and under which the employer contributions are not determined in accordance with a formula set forth in the plan. (régime de pension à prestations déterminées) defined contribution pension plan means the part of a pension plan that is not a defined benefits pension plan. (régime de pension à cotisations déterminées) master pension group in respect of a particular person and another person means the group of one or more pension plans that consists of every pension plan that meets the following conditions: (a) the particular person is a participating employer of the pension plan; and (b) the other person is a master pension entity of the pension plan. (groupe de pension principal) specified resource means property or a service that is acquired by a person for the purpose of making a supply of all or part of the property or service to a pension entity or a master pension entity of a pension plan of which the person is a participating employer. (ressource déterminée) (6) Paragraph 172.1(2)(a) of the Act is replaced by the following: (a) for each pension entity and master pension entity of the pension plan, no tax would become payable under this Part in respect of the supply if 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (i) the supply were made by the other person to the pension entity or to the master pension entity, as the case may be, and not to the particular person, and (ii) the pension entity or the master pension entity, as the case may be, and the other person were dealing at arm’s length; and (7) The portion of subsection 172.1(4) of the Act before paragraph (a) is replaced by the following: Specified pension entity (4) For the purposes of this section, if a person is a participating employer of a pension plan and the pension plan has, (8) The portion of subsection 172.1(5) of the Act before paragraph (a) is replaced by the following: Acquisition for supply to pension entity (5) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a selected qualifying employer of the pension plan at that time, if the person acquires at that time a specified resource for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply: (9) Subparagraph 172.1(5)(d)(ii) of the Act is replaced by the following: (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula A−B where A is (A) if the pension entity is a selected listed financial institution on that day, the amount determined for A in paragraph (c), and (B) in any other case, the amount of tax determined under paragraph (c), and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 B is the total of all amounts, each of which is a part of the amount determined for A (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and (10) Section 172.1 of the Act is amended by adding the following after subsection (5): Acquisition for supply to master pension entity (5.1) If a person that is a registrant acquires at any time in a particular fiscal year of the person a specified resource for the purpose of making a supply of all or part of the specified resource to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, if the person is not at that time a selected qualifying employer of any pension plan in the master pension group and if it is not the case that the specified resource is an excluded resource of the person in respect of any pension plan in the master pension group, the following rules apply: (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year; (b) for the purposes of this Part, tax in respect of the taxable supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the total of all amounts, each of which is determined for each pension plan in the master pension group by the formula A+B where A is the amount determined by the formula C×D×E 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 where B C is the fair market value of the specified resource or part at the time it was acquired by the person, D is the rate set out in subsection 165(1), and E is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year, and is the total of all amounts, each of which is determined for a participating province by the following formula F×G×H where F is the amount determined for C, G is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, and H is the master pension factor determined for E; and (d) for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed for the purpose of determining an input tax credit of the specified pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, (i) to have received a supply of the specified resource or part on the last day of the particular fiscal year, (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula A−B where A is (A) if the specified pension entity is a selected listed financial institution on that day, the amount determined for the pension plan under the description of A in paragraph (c), and (B) in any other case, the amount of tax determined for the pension plan under paragraph (c), and B is the total of all amounts, each of which is a part of the amount determined for A 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and (iii) to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the master pension entity for consumption, use or supply by the master pension entity in the course of pension activities of the master pension entity that are commercial activities of the master pension entity. (11) Subparagraph 172.1(6)(d)(ii) of the Act is replaced by the following: (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula A−B where A is (A) if the pension entity is a selected listed financial institution on that day, the amount determined for A in paragraph (c), and (B) in any other case, the amount of tax determined under paragraph (c), and B is the total of all amounts, each of which is a part of the amount determined for A (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (12) Section 172.1 of the Act is amended by adding the following after subsection (6): Employer resource for supply to master pension entity (6.1) If a person that is a registrant consumes or uses at any time in a particular fiscal year of the person an employer resource of the person for the purpose of making a supply of property or a service (in this subsection referred to as the “pension supply”) to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, if the person is not at that time a selected qualifying employer of any pension plan in the master pension group and if it is not the case that the employer resource is an excluded resource of the person in respect of any pension plan in the master pension group, the following rules apply: (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year; (b) for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the total of all amounts, each of which is determined for each pension plan in the master pension group by the formula A+B where A is the amount determined by the formula C×D×E where C is (i) if the employer resource was consumed by the person during the particular fiscal year for the purpose of making the pension supply, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, or (ii) otherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) for the purpose of making the pension supply when the person was both a registrant and a participating employer of the pension plan, B D is the rate set out in subsection 165(1), and E is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year, and is the total of all amounts, each of which is determined for a participating province by the following formula F×G×H where F is the amount determined for C, G is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, and H is the master pension factor determined for E; and (d) for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed for the purpose of determining an input tax credit of the specified pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, (i) to have received a supply of the employer resource on the last day of the particular fiscal year, (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula A−B where A is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (A) if the specified pension entity is a selected listed financial institution on that day, the amount determined for the pension plan under the description of A in paragraph (c), and (B) in any other case, the amount of tax determined for the pension plan under paragraph (c), and B is the total of all amounts, each of which is a part of the amount determined for A (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and (iii) to have acquired the employer resource for consumption, use or supply in the course of its commercial activities to the same extent that the property or service supplied in the pension supply was acquired by the master pension entity for consumption, use or supply by the master pension entity in the course of pension activities of the master pension entity that are commercial activities of the master pension entity. (13) The portion of subsection 172.1(7) of the Act before paragraph (a) is replaced by the following: Employer resource other than for supply — pension entity (7) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person in the course of pension activities in respect of the pension plan (other than the establishment, management or administration of a master pension entity of the pension plan and the management or administration of assets in respect of the pension plan that are held by a master pension entity of the pension plan), if the employer resource is not an excluded resource of the person in respect of the pension plan and if subsection (6) does not apply to that consumption or use, the following rules apply: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (14) The portion of subsection 172.1(7) of the Act before paragraph (a), as enacted by subsection (13), is replaced by the following: Employer resource other than for supply — pension entity (7) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person in the course of pension activities in respect of the pension plan, if the employer resource is not an excluded resource of the person in respect of the pension plan and if none of subsections (6), (6.1) and (7.1) applies to that consumption or use, the following rules apply: (15) Paragraph 172.1(7)(d) of the Act is replaced by the following: (d) for the purposes of determining, under section 261.01, an eligible amount of the specified pension entity of the pension plan in respect of the person for the particular fiscal year, the specified pension entity is deemed to have paid tax on the last day of the particular fiscal year equal to the amount determined by the formula A−B where A is (i) if the specified pension entity is a selected listed financial institution on that day, the amount determined for A in paragraph (c), and (ii) in any other case, the amount of tax determined under paragraph (c), and B is the total of all amounts, each of which is a part of the amount determined for A (i) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or (ii) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament. (16) Subsection 172.1(8) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 Employer resource other than for supply — master pension entity (7.1) If a person that is a registrant consumes or uses at any time in a particular fiscal year of the person an employer resource of the person in the course of pension activities in respect of one or more pension plans that are in the master pension group in respect of the person and a master pension entity at that time, if the person is not at that time a qualifying employer of any pension plan in the master pension group, if it is not the case that the employer resource is an excluded resource of the person in respect of any pension plan in the master pension group, if the pension activities relate exclusively to the establishment, management or administration of the master pension entity or the management or administration of assets held by the master pension entity and if neither of subsections (6) and (6.1) applies to that consumption or use, the following rules apply: (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year; (b) for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the total of all amounts, each of which is determined for each particular pension plan in the master pension group by the formula A+B where A is the amount determined by the formula C×D×E where C is (i) if the employer resource was consumed by the person during the particular fiscal year in the course of those pension activities, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 occurred when the person was both a registrant and a participating employer of any pension plan in the master pension group, or (ii) otherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) in the course of those pension activities when the employer was both a registrant and a participating employer of any pension plan in the master pension group, B D is the rate set out in subsection 165(1), and E is the master pension factor in respect of the particular pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year, and is the total of all amounts, each of which is determined for a participating province by the following formula F×G×H where F is the amount determined for C, G is the provincial factor in respect of the particular pension plan and the participating province for the particular fiscal year, and H is the master pension factor determined for E; and (d) for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed — for the purposes of determining, under section 261.01, an eligible amount of the specified pension entity of the pension plan in respect of the person for the particular fiscal year — to have paid tax on the last day of the particular fiscal year equal to the amount determined by the formula A−B where A is (i) if the specified pension entity is a selected listed financial institution on that day, the amount determined for the pension plan under the description of A in paragraph (c), and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (ii) in any other case, the amount of tax determined for the pension plan under paragraph (c), and B is the total of all amounts, each of which is a part of the amount determined for A (i) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or (ii) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament. Provision of information to pension entity (8) If any of subsections (5) to (7.1) applies in respect of a person that is a participating employer of a pension plan, the person shall, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information to the pension entity of the pension plan that is deemed to have paid tax under that subsection. Provision of information by master pension entity (8.1) A master pension entity of a pension plan shall, in a manner satisfactory to the Minister, provide the master pension factor in respect of the pension plan for a fiscal year of the master pension entity, and any other information that the Minister may specify, to each participating employer of the pension plan on or before the day that is 30 days after the first day of the fiscal year. (17) The portion of subsection 172.1(9) of the Act before the formula is replaced by the following: Selected qualifying employer (9) For the purposes of this section, a particular participating employer of a pension plan is a selected qualifying employer of the pension plan for a particular fiscal year of the particular participating employer if no election under subsection 157(2) made jointly by the particular participating employer and a pension entity of the pension plan is in effect in the particular fiscal year, if no election under subsection 157(2.1) made jointly by the particular participating employer and a master pension entity of the pension plan is in effect in the particular fiscal year, if the particular participating employer did not become a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 participating employer of the pension plan in the particular fiscal year, if the amount determined for A in the following formula is less than $5,000 and if the amount (expressed as a percentage) determined by the following formula is less than 10%: (18) Paragraphs (a) to (f) of the description of A in subsection 172.1(9) of the Act are replaced by the following: (a) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by the particular participating employer in respect of a specified supply of the particular participating employer to the pension plan during the fiscal year (in this subsection referred to as the “preceding fiscal year”) of the particular participating employer preceding the particular fiscal year less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, (b) if the particular participating employer is a selected qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under any of subsections (5) to (6.1) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a selected qualifying employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, (c) if the particular participating employer is a qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a qualifying employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (d) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by another participating employer of the pension plan in respect of a specified supply of the other participating employer to the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer, less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, (e) an amount of tax that would have been deemed to have been collected under any of subsections (5) to (6.1) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a selected qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a selected qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or (f) an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (19) Paragraph (b) of the description of B in subsection 172.1(9) of the Act is replaced by the following: (b) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by a participating employer of the pension plan, including the particular participating employer, during a fiscal year of the participating employer that ends in the preceding fiscal year in respect of a specified supply of the participating employer to the pension plan less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or (20) Paragraph (b) of the description of C in subsection 172.1(9) of the Act is replaced by the following: (b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity of the pension plan in respect of a claim period ending in a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the recoverable amount is in respect of an amount determined for A under paragraph (c) of whichever of subsections (5) to (7.1) is applicable in determining an amount of tax deemed to have been paid by the pension entity under this section for the purposes of section 261.01. (21) Paragraphs (a) to (d) of the description of A in subsection 172.1(10) of the Act are replaced by the following: (a) an amount of tax deemed to have been collected under subsection (7) or (7.1) by the particular participating employer in respect of a specified supply of the particular participating employer to the pension plan during the fiscal year (in this subsection referred to as the “preceding fiscal year”) of the particular participating employer preceding the particular fiscal year less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, (b) if the particular participating employer is a qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a qualifying employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, (c) an amount of tax deemed to have been collected under subsection (7) or (7.1) by another participating employer of the pension plan in respect of a specified supply of the other participating employer to the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer, less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or (d) an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax; (22) Paragraph (b) of the description of B in subsection 172.1(10) of the Act is replaced by the following: (b) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by a participating employer of the pension plan, including the particular participating employer, during a fiscal year of the participating employer that ends in the preceding fiscal year in respect of a specified supply of the participating employer to the pension plan less the amount, if any, determined for B under paragraph (c) of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 whichever of those subsections is applicable in determining that amount of tax, or (23) Paragraph (b) of the description of C in subsection 172.1(10) of the Act is replaced by the following: (b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity of the pension plan in respect of a claim period ending in a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the recoverable amount is in respect of an amount determined for A under paragraph (c) of whichever of subsections (5) to (7.1) is applicable in determining an amount of tax deemed to have been paid by the pension entity under this section for the purposes of section 261.01. (24) Paragraphs 172.1(12)(b) and (c) of the Act are replaced by the following: (b) any amount of tax deemed to have been collected under any of subsections (5) to (7.1) by a predecessor, or that would have been deemed to have been collected under any of those subsections if the predecessor were neither a selected qualifying employer nor a qualifying employer, at any time during the period of 365 days preceding the first fiscal year of the new corporation is deemed to have been collected under the same subsection by the new corporation, and not by a predecessor, on the last day of the prior fiscal year of the new corporation; (c) any specified supply of a predecessor to the pension plan in respect of a taxable supply deemed to have been made under any of subsections (5) to (7.1), or that would have been deemed to have been made under any of those subsections if the predecessor were neither a selected qualifying employer nor a qualifying employer, at any time during the period of 365 days preceding the first fiscal year of the new corporation is deemed to be a specified supply of the new corporation to the pension plan and not of the predecessor; and (25) Subsections (1), (3) and (4) and the definitions master pension group and specified resource, as enacted by subsection (5), are deemed to have come into force on July 22, 2016. (26) Subsection (2) and the definitions defined benefits pension plan and defined contribution pension plan, as enacted by subsection (5), apply in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 respect of any fiscal year of a person that begins after July 22, 2016. (27) Subsections (6) to (8), (10), (12), (14) and (16) to (24) apply in respect of any fiscal year of a person that begins after July 21, 2016. (28) Subsections (9) and (11) are deemed to have come into force on September 23, 2009, but do not apply (a) for the purposes of determining an input tax credit of a pension entity if the input tax credit is claimed in a return under Division V of Part IX of the Act for a reporting period of the pension entity that is filed on or before July 22, 2016; (b) in respect of a tax adjustment note issued under subsection 232.01(3) or 232.02(2) of the Act on or before July 22, 2016; and (c) for the purposes of determining the pension rebate amount, as defined in subsection 261.01(1) of the Act, of a pension entity for a claim period of the pension entity if (i) an application for a rebate under subsection 261.01(2) of the Act for the claim period is filed on or before July 22, 2016, or (ii) an election made under subsection 261.01(9) of the Act for the claim period is filed on or before July 22, 2016. (29) Subsection (13) applies in respect of any fiscal year of a person that begins after September 22, 2009 but before July 22, 2016. (30) Subsection (15) is deemed to have come into force on September 23, 2009, but does not apply for the purposes of determining the pension rebate amount, as defined in subsection 261.01(1) of the Act, of a specified pension entity for a claim period of the specified pension entity if (a) an application for a rebate under subsection 261.01(2) of the Act for the claim period is filed on or before July 22, 2016; or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 114 (b) an election made under subsection 261.01(9) of the Act for the claim period is filed on or before July 22, 2016. (31) If, in assessing under section 296 of the Act the net tax for a reporting period of a person that is a participating employer of a pension plan, an amount was included in determining the net tax for the reporting period as an amount of tax in respect of an employer resource, as defined in subsection 172.1(1) of the Act, that was deemed to have been collected on a particular day in the reporting period by the person under paragraph 172.1(7)(b) of the Act and if, as a result of the application of subsection 172.1(7) of the Act, as amended by subsection (13), the amount is not deemed to have been collected by the person under that paragraph, then the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount is not deemed to have been collected by the particular person under that paragraph and, on receipt of the request and with all due dispatch, (a) the Minister must consider the request; (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the amount is not deemed to have been collected by the person under paragraph 172.1(7)(b) of the Act; (c) if a pension entity of the pension plan makes an election under subsection 261.01(5), (6) or (9) of the Act with a qualifying employer of the pension plan for the claim period (as those terms are defined in subsection 261.01(1) of the Act) of the pension entity that includes the particular day, if the qualifying employer deducts, in determining its net tax for a reporting period, an amount as all or part of a particular amount in respect of the employer resource that was deemed to have been paid by the pension entity under paragraph 172.1(7)(d) of the Act and if, as a result of the application of subsection 172.1(7) of the Act, as amended by subsection (13), the particular amount is not deemed to have been paid by the pension 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 114-115 entity under that paragraph, then the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the qualifying employer, solely for the purpose of taking into account that the particular amount is not deemed to have been paid by the pension entity under that paragraph; and (d) if, in assessing under section 297 of the Act the amount of a rebate under subsection 261.01(2) of the Act for a claim period (as defined in subsection 261.01(1) of the Act) of a pension entity, a particular amount was included in determining the pension rebate amount (as defined in subsection 261.01(1) of the Act) for the claim period as an amount in respect of the employer resource that was deemed to have been paid by the pension entity under paragraph 172.1(7)(d) and if, as a result of the application of subsection 172.1(7) of the Act, as amended by subsection (13), the particular amount is not deemed to have been paid by the pension entity under that paragraph, then the Minister must under sections 296 and 297 of the Act assess, reassess or make an additional assessment of the rebate, and of any interest, penalty or other obligation of the pension entity, solely for the purpose of taking into account that the particular amount was not deemed to have been paid by the pension entity under that paragraph. 115 (1) The Act is amended by adding the following after section 172.1: Excluded amount 172.2 (1) For the purposes of this section, an excluded amount of a master pension entity is an amount of tax that (a) is deemed to have been paid by the master pension entity under this Part (other than section 191); (b) became payable, or was paid without having become payable, by the master pension entity at a time when it was entitled to claim a rebate under section 259; or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 115 (c) is payable under subsection 165(1), or is deemed under section 191 to have been paid, by the master pension entity in respect of a taxable supply to the master pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the master pension entity is entitled to claim a rebate under section 256.2 or would be so entitled after paying the tax payable in respect of that supply. Designated pension entity (2) For the purposes of this section, (a) if a person is a master pension entity of a pension plan having, at any time, only one pension entity, that pension entity is, at that time, the designated pension entity of the pension plan in respect of the person; and (b) if a person is a master pension entity of a pension plan having, at any time, two or more pension entities and if an election made jointly under subsection (4) by the person and one of those pension entities is in effect at that time, that pension entity is, at that time, the designated pension entity of the pension plan in respect of the person. Tax deemed paid by designated pension entity — section 261.01 (3) For the purposes of section 261.01, if a particular amount of tax becomes payable, or is paid without having become payable, by a master pension entity of one or more pension plans at any time in a fiscal year of the master pension entity and if the particular amount of tax is not an excluded amount of the master pension entity, then, for each of those pension plans, the designated pension entity of the pension plan at that time in respect of the master pension entity is deemed to have paid at that time an amount of tax equal to the amount determined by the formula A×B where A is (a) if the designated pension entity is a selected listed financial institution and the particular amount of tax is payable under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, zero, and (b) in any other case, the amount determined by the formula A1 − A2 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 115 where A1 is the particular amount of tax, and A2 is the total of all amounts, each of which is included in the particular amount of tax and is (i) an input tax credit that the master pension entity is entitled to claim in respect of the particular amount of tax, (ii) an amount for which it can reasonably be regarded that the master pension entity has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament, or (iii) an amount that can reasonably be regarded as being included in an amount adjusted, refunded or credited to or in favour of the master pension entity for which a credit note referred to in subsection 232(3) has been received by the master pension entity or a debit note referred to in that subsection has been issued by the master pension entity; and B is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes that time. Designated pension entity election (4) A master pension entity of a pension plan having two or more pension entities may jointly elect with one of those pension entities, in prescribed form containing prescribed information, to have that pension entity be, while the election is in effect, the designated pension entity of the pension plan in respect of the master pension entity for the purposes of this section. Effective period of election (5) An election made under subsection (4) by a particular person that is a master pension entity of a pension plan and by another person that is a pension entity of the pension plan becomes effective on the day set out in the election and ceases to have effect on the earliest of (a) the day on which the particular person ceases to be a master pension entity of the pension plan, (b) the day on which the other person ceases to be a pension entity of the pension plan, (c) the day on which an election made under subsection (4) by the particular person and by a third person 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 115-118 that is a pension entity of the pension plan becomes effective, and (d) the day specified in a revocation of the election made under subsection (6). Revocation (6) A master pension entity and a pension entity that have jointly made an election under subsection (4) may jointly revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation. (2) Subsection (1) applies in respect of amounts of tax that become payable, or that are paid without having become payable, by a person after July 21, 2016. 116 Paragraph 178(18)(c) of the French version of the Act is replaced by the following: c) la fourniture est effectuée sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service, 117 Subparagraphs 178.3(4)(b)(ii) and (iii) of the French version of the Act are replaced by the following: (ii) fournit le produit à une personne autre qu’un entrepreneur indépendant du démarcheur pour une contrepartie non symbolique mais inférieure à son prix de vente au détail suggéré au moment donné et sur laquelle est calculée la taxe payée par la personne, (iii) fournit le produit à une personne autre qu’un entrepreneur indépendant du démarcheur sans contrepartie ou pour une contrepartie symbolique ou réserve le produit pour sa consommation ou son utilisation personnelles; 118 Subparagraphs 178.4(4)(b)(ii) and (iii) of the French version of the Act are replaced by the following: (ii) fournit le produit à une personne autre qu’un entrepreneur indépendant du démarcheur pour une contrepartie non symbolique mais inférieure à son prix de vente au détail suggéré au moment donné et sur laquelle est calculée la taxe payée par la personne, (iii) fournit le produit à une personne autre qu’un entrepreneur indépendant du démarcheur sans 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 118-121 contrepartie ou pour une contrepartie symbolique ou réserve le produit pour sa consommation ou son utilisation personnelles; 119 Paragraph 178.5(8)(a) of the French version of the Act is replaced by the following: a) la fourniture est effectuée sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service; 120 Paragraph 178.6(5)(d) of the English version of the Act is replaced by the following: (d) despite paragraph (c), the person and the ultimate recipient are jointly and severally, or solidarily, liable for the payment of the tax in respect of the supply made by the original supplier; and 121 (1) Subparagraph 179(1)(a)(i) of the Act is replaced by the following: (i) makes a taxable supply in Canada of tangible personal property by way of sale, or a taxable supply in Canada of a service of manufacturing or producing tangible personal property, to the non-resident person, or acquires physical possession of tangible personal property (other than property of a person that is resident in Canada) for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the nonresident person, and (2) Paragraph 179(1)(c) of the Act is replaced by the following: (c) the registrant is deemed to have made a taxable supply in Canada of the property to the non-resident person and the non-resident person is deemed to have received that supply from the registrant, (3) Subparagraph 179(2)(a)(i) of the Act is replaced by the following: (i) makes a taxable supply in Canada of tangible personal property by way of sale, or a taxable supply in Canada of a service of manufacturing or producing tangible personal property, to the non-resident person, or acquires physical possession of tangible personal property (other than property of a person that is resident in Canada) for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the nonresident person, and (4) Subsection 179(2) of the Act is amended by striking out “and” at the end of paragraph (b) 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 and by replacing paragraph (c) with the following: (b.1) the consignee is acquiring physical possession of the property (i) as the recipient of a taxable supply of the property made by any non-resident person that is not registered under Subdivision D of Division V, (ii) for the purpose of making a taxable supply in Canada of a service of manufacturing or producing other tangible personal property to any non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the service, if the property (A) is incorporated or transformed into, attached to, or combined or assembled with, the other tangible personal property in the manufacture or production of the other tangible personal property, or (B) is directly consumed or expended in the manufacture or production of the other tangible personal property, (iii) if the property is not property of a person that is resident in Canada, for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to any non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the commercial service, or (iv) for the purpose of making a taxable supply in Canada of a commercial service in respect of other tangible personal property (other than property of a person that is resident in Canada) to any non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the commercial service, if the property (A) is incorporated into, attached to, or combined or assembled with, the other tangible personal property in the provision of the commercial service, or (B) is directly consumed or expended in the provision of the commercial service, and (c) the consignee gives to the registrant, and the registrant retains, a certificate that (i) states the consignee’s name and registration number assigned under section 241, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (ii) acknowledges that the consignee is acquiring physical possession of the property as the recipient of a supply referred to in subparagraph (b.1)(i) or for a purpose referred to in any of subparagraphs (b.1)(ii) to (iv), and (iii) acknowledges that the consignee, on taking physical possession of the property, is assuming liability to pay or remit any amount that is or may become payable or remittable by the consignee (A) under Division IV in respect of the property, or (B) under this Part in respect of a supply, deemed under paragraph (1)(c) to have been made by the consignee, of the property or of the other tangible personal property referred to in either of subparagraphs (b.1)(ii) or (iv), (5) Section 179 of the Act is amended by adding the following after subsection (2): Exception — certificate of registered owner (2.1) For the purposes of this Part, if (a) a registrant, under an agreement between the registrant and a non-resident person that is not registered under Subdivision D of Division V, (i) makes a taxable supply in Canada of tangible personal property by way of sale to the non-resident person, (ii) makes a taxable supply in Canada of a service of manufacturing or producing tangible personal property to the non-resident person, or (iii) acquires physical possession of tangible personal property (other than property of a person that is resident in Canada) for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person, (b) under the agreement, the registrant causes, at a particular time, physical possession of the property to be transferred, at a place in Canada, to a third person (in this subsection referred to as the “consignee”), (c) the non-resident person is not a consumer of the property or service supplied by the registrant under the agreement, (d) a particular person (other than the registrant) that is registered under Subdivision D of Division V makes a taxable supply of the property to the consignee, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (e) the consignee is acquiring physical possession of the property at the particular time as the recipient of the taxable supply referred to in paragraph (d), and (f) the registrant retains a certificate that (i) is given to the registrant by the particular person, or by the consignee provided that the consignee is registered under Subdivision D of Division V, (ii) states the particular person’s name and registration number assigned under section 241, and (iii) if the certificate is given by the consignee, states the consignee’s name and registration number assigned under section 241, subsection (1) does not apply to a supply referred to in paragraph (a) and, except in the case of a supply of a service of shipping the property, any supply made by the registrant and referred to in that paragraph is deemed to have been made outside Canada. (6) Paragraphs 179(2.1)(d) to (f) of the Act, as enacted by subsection (5), are replaced by the following: (d) the consignee is not entitled, under subsection (2), to give to the registrant a certificate described in paragraph (2)(c) in respect of the transfer of physical possession of the property to the consignee, (e) either (i) the property is, immediately after the particular time, property of a particular person that is registered under Subdivision D of Division V and that is neither the registrant nor the consignee, and the registrant retains a certificate that (A) is given to the registrant by the particular person, (B) states the particular person’s name and registration number assigned under section 241, (C) acknowledges that the property is, immediately after the particular time, property of the particular person, and (D) if the property was acquired by the particular person by way of sale from a non-resident person that is not registered under Subdivision D of Division V, acknowledges that the particular 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 person is assuming liability to pay any amount that is or may become payable by the particular person under Division IV in respect of the property, or (ii) a particular person, other than the registrant, that is registered under Subdivision D of Division V makes a taxable supply by way of sale of the property to the consignee before the particular time, the consignee is acquiring physical possession of the property at the particular time as the recipient of that taxable supply, and the registrant retains a certificate that (A) is given to the registrant by the particular person, or by the consignee provided that the consignee is registered under Subdivision D of Division V, (B) states the particular person’s name and registration number assigned under section 241, (C) if the certificate is given by the consignee, states the consignee’s name and registration number assigned under section 241, and (D) acknowledges that the particular person made a taxable supply by way of sale of the property to the consignee before the particular time and that the consignee acquired physical possession of the property at the particular time as the recipient of that taxable supply, and (f) if subparagraph (a)(i) applies, the property is delivered or made available to the particular person referred to in subparagraph (e)(i) or (ii), as the case may be, after the property is delivered or made available to the non-resident person under the agreement, (7) Subparagraph 179(3)(a)(iii) of the Act is replaced by the following: (iii) acquires physical possession of tangible personal property (other than property of a person that is resident in Canada) for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person, (8) The portion of subsection 179(4) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 Retention of possession (4) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if (9) Subparagraph 179(4)(b)(i) of the English version of the Act is replaced by the following: (i) transferring physical possession of the property to the non-resident person, a person (in this subsection referred to as a “subsequent purchaser”) that subsequently acquires ownership of the property or a person designated by the non-resident person or a subsequent purchaser, (10) Subparagraph 179(4)(b)(ii) of the Act is replaced by the following: (ii) making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person or a subsequent purchaser, or (11) Paragraphs 179(4)(c) and (d) of the Act are replaced by the following: (c) if the particular registrant so retains physical possession of the property after that time, (i) the particular registrant is deemed to have, under the agreement referred to in paragraph (a), caused at that time physical possession of the property to be transferred, at a place in Canada, to another person that is a registrant, (ii) the other person referred to in subparagraph (i) is deemed to have given to the particular registrant a certificate described in paragraph (2)(c) in respect of that transfer of physical possession of the property, (iii) if subparagraph (b)(i) or (ii) applies, the particular registrant is deemed (A) except if clause (B) applies, to have acquired, at that time, physical possession of the property, under the agreement referred to in paragraph (a), for the purpose of making a taxable supply in Canada to the non-resident person of a commercial service in respect of the property that is not a storage service, or (B) if subparagraph (b)(ii) applies and the supply referred to in that subparagraph is to be made to the non-resident person, or to a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 non-resident subsequent purchaser that is not registered under Subdivision D of Division V and is not a consumer of the commercial service referred to in that subparagraph, to have acquired, at that time, physical possession of the property, under the agreement for that supply, for the purpose referred to in that subparagraph, and (iv) if subparagraph (b)(iii) applies, (A) the particular registrant is deemed to have acquired physical possession of the property, as the recipient of the supply under the agreement referred to in that subparagraph, from another person that is a registrant and that has made a supply in Canada of the property by way of sale to a non-resident person, (B) that acquisition of physical possession of the property is deemed to have occurred at the time when, and at the place where, the property is delivered or made available to the particular registrant under the agreement referred to in that subparagraph, and (C) the particular registrant is deemed to have given to the other person referred to in clause (A) a certificate described in paragraph (2)(c) in respect of that acquisition of physical possession of the property, and (d) if another registrant so retains physical possession of the property after that time, (i) if subparagraph (b)(i) or (ii) applies, (A) the particular registrant is deemed to have, under the agreement referred to in paragraph (a), caused at that time physical possession of the property to be transferred at a place in Canada to the other registrant, and (B) the other registrant is deemed (I) except if subclause (II) applies, to have acquired, at that time, physical possession of the property, under an agreement between the other registrant and the non-resident person, for the purpose of making a taxable supply in Canada to the non-resident person of a commercial service in respect of the property that is not a storage service, or (II) if subparagraph (b)(ii) applies and the supply referred to in that subparagraph is to be made to the non-resident person, or to a non-resident subsequent purchaser that is not 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 registered under Subdivision D of Division V and is not a consumer of the commercial service referred to in that subparagraph, to have acquired, at that time, physical possession of the property, under the agreement for that supply, for the purpose referred to in that subparagraph, and (ii) if subparagraph (b)(iii) applies, (A) the particular registrant is deemed to have, under the agreement referred to in paragraph (a), caused physical possession of the property to be transferred to the other registrant, (B) the other registrant is deemed to have acquired physical possession of the property from the particular registrant as the recipient of the supply under the agreement referred to in that subparagraph, and (C) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the property, at the time when, and at the place where, the property is delivered or made available to the other registrant under the agreement referred to in that subparagraph. (12) The portion of subsection 179(5) of the Act before paragraph (a) is replaced by the following: Transfer of possession to bailee (5) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a registrant at any time transfers physical possession of tangible personal property to a bailee solely for the purpose of storing or shipping the property and either (13) The portion of subsection 179(6) of the Act before paragraph (a) is replaced by the following: Goods transferred to bailee by non-resident (6) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a non-resident person that is not registered under Subdivision D of Division V transfers physical possession of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 tangible personal property to a bailee that is a registrant for the sole purpose of storing or shipping the property and the bailee (14) Section 179 of the Act, as amended by subsections (1) to (13), is replaced by the following: Drop shipment — deemed supply 179 (1) For the purposes of this Part, if (a) a registrant (i) makes a taxable supply in Canada of particular tangible personal property by way of sale to a nonresident person that is not registered under Subdivision D of Division V, (ii) makes a taxable supply in Canada of a service of manufacturing or producing particular tangible personal property to a non-resident person that is not registered under Subdivision D of Division V, (iii) acquires physical possession of particular tangible personal property (other than property of a person that is resident in Canada) for the purpose of making a taxable supply in Canada of a commercial service in respect of the particular property to a non-resident person that is not registered under Subdivision D of Division V, or (iv) acquires — as the recipient of a supply of particular tangible personal property made by way of lease, licence or similar arrangement by a non-resident person that is not registered under Subdivision D of Division V — physical possession of the particular property and either (A) gives a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the particular property, or (B) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the registrant under subsection 178.8(2) or paragraph 180(d) in respect of the particular property, (b) the registrant, at a particular time, causes physical possession of the particular property to be transferred, at a place in Canada, to a third person (in this subsection referred to as the “consignee”) or to the non-resident person, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (c) the non-resident person is not a consumer of the particular property, the following rules apply: (d) the registrant is deemed to have made a particular taxable supply in Canada of the particular property to the non-resident person and the non-resident person is deemed to have received the particular taxable supply from the registrant, (e) if the transfer of physical possession of the particular property occurs at a place in a participating province, the particular taxable supply is deemed to have been made in that province, (f) the particular taxable supply is deemed to have been made for consideration, that becomes due and is paid at the particular time, equal to (i) except if subparagraph (ii) applies, the fair market value of the particular property at the particular time, and (ii) if the registrant has caused physical possession of the particular property to be transferred to a consignee that is acquiring physical possession of the particular property as the recipient of a supply made by the non-resident person by way of sale for no consideration, nil, and (g) the registrant is deemed not to have made the taxable supply referred to in any of subparagraphs (a)(i) to (iii) in respect of the particular property to the nonresident person, unless that supply is a supply of a service of storing the particular property. Exception — certificate of registered consignee (2) For the purposes of this Part, if (a) paragraphs (1)(a) to (c) apply to (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), (b) the transfer referred to in paragraph (1)(b) of physical possession of the particular property is to a person (in this subsection referred to as the “consignee”) that is registered under Subdivision D of Division V, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (c) the consignee is acquiring physical possession of the particular property (i) as the recipient of a taxable supply of the particular property made by a non-resident person that is not registered under Subdivision D of Division V, (ii) for the purpose of making a taxable supply in Canada of a service of manufacturing or producing other tangible personal property to a non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the other property, if the particular property (A) is incorporated or transformed into, attached to, or combined or assembled with, the other property in the manufacture or production of the other property, or (B) is directly consumed or expended in the manufacture or production of the other property, (iii) if the particular property is not property of a person that is resident in Canada, for the purpose of making a taxable supply in Canada of a commercial service in respect of the particular property to a non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the particular property, or (iv) for the purpose of making a taxable supply in Canada of a commercial service in respect of other tangible personal property (other than property of a person that is resident in Canada) to a non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the other property, if the particular property (A) is incorporated into, attached to, or combined or assembled with, the other property in the provision of the commercial service, or (B) is directly consumed or expended in the provision of the commercial service, and (d) the consignee gives to the registrant, and the registrant retains, a certificate that (i) states the consignee’s name and registration number assigned under section 241, (ii) acknowledges that the consignee is acquiring physical possession of the particular property as the recipient of a supply referred to in subparagraph (c)(i) or for a purpose referred to in any of subparagraphs (c)(ii) to (iv), and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (iii) acknowledges that the consignee is assuming liability to pay or remit any amount that is or may become payable or remittable by the consignee (A) under Division IV in respect of the particular property, or (B) under this Part in respect of a supply, deemed under paragraph (1)(d) to have been made by the consignee, of the particular property or of the other property referred to in either of subparagraphs (c)(ii) or (iv), the following rules apply: (e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and (f) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. Exception — certificate of registered owner (3) For the purposes of this Part, if (a) paragraphs (1)(a) to (c) apply to (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), (b) the transfer referred to in paragraph (1)(b) of physical possession of the particular property is to a person (in this subsection referred to as the “consignee”) that is not entitled, under subsection (2), to give to the registrant a certificate described in paragraph (2)(d) in respect of that transfer, (c) either (i) the particular property is, immediately after the particular time referred to in paragraph (1)(b), property of a particular person that is registered under Subdivision D of Division V and that is neither the registrant nor the consignee, and the registrant retains a certificate that 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (A) is given to the registrant by the particular person, (B) states the particular person’s name and registration number assigned under section 241, (C) acknowledges that the particular property is, immediately after the particular time, property of the particular person, and (D) if the particular property was acquired by the particular person by way of sale from a nonresident person that is not registered under Subdivision D of Division V, acknowledges that the particular person is assuming liability to pay any amount that is or may become payable by the particular person under Division IV in respect of the particular property, or (ii) a particular person, other than the registrant, that is registered under Subdivision D of Division V makes a taxable supply by way of sale of the particular property to the consignee before the particular time, the consignee is acquiring physical possession of the particular property at the particular time as the recipient of that taxable supply, and the registrant retains a certificate that (A) is given to the registrant by the particular person, or by the consignee provided that the consignee is registered under Subdivision D of Division V, (B) states the particular person’s name and registration number assigned under section 241, (C) if the certificate is given by the consignee, states the consignee’s name and registration number assigned under section 241, and (D) acknowledges that the particular person made a taxable supply by way of sale of the particular property to the consignee before the particular time and that the consignee acquired physical possession of the particular property at the particular time as the recipient of that taxable supply, and (d) if subparagraph (1)(a)(i) applies, the property is delivered or made available to the particular person referred to in subparagraph (c)(i) or (ii), as the case may be, after the property is delivered or made available to the non-resident person referred to in subparagraph (1)(a)(i) under the agreement for the taxable supply referred to in that subparagraph, the following rules apply: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and (f) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. Exception — export (4) For the purposes of this Part, if (a) paragraphs (1)(a) and (c) apply to (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), and (b) either (i) the registrant (A) causes physical possession of the particular property to be transferred at a place outside Canada, (B) ships the particular property to a destination outside Canada that is specified in the contract for carriage of the particular property, (C) causes physical possession of the particular property to be transferred to a common carrier or consignee that has been retained to ship the particular property to a destination outside Canada, or (D) sends the particular property by mail or courier to an address outside Canada, or (ii) the following conditions are met: (A) the registrant causes physical possession of the particular property to be transferred at a place in Canada to a person (referred to in this subparagraph as the “exporter”) for export, (B) after that transfer, the exporter exports the particular property as soon as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, the normal business practices of the exporter and of the owner of the particular property, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (C) the particular property has not been acquired by any owner of the particular property for consumuption use or supply in Canada at any time after that transfer and before the property is exported, (D) after that transfer but before the particular property is exported, the particular property is not further processed, transformed or altered except to the extent reasonably necessary or incidental to its transportation, and (E) the registrant maintains evidence satisfactory to the Minister of the exportation of the particular property or, if the exporter is authorized under subsection 221.1(2), the exporter provides the registrant with a certificate in which the exporter certifies that the particular property will be exported in the circumstances described in clauses (B) to (D), the following rules apply: (c) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and (d) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. Retention of possession (5) If (a) a particular registrant makes a particular taxable supply in Canada of particular tangible personal property by way of sale to a particular non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the particular property, and (b) the particular registrant or another registrant has physical possession of the particular property at the particular time at which the particular property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply and retains physical possession of the particular property after the particular time (i) solely for the purpose of transferring physical possession of the particular property to the particular non-resident person, a person (in this subsection referred to as a “subsequent purchaser”) that subsequently acquires ownership of the particular property or a person designated by the particular non-resident person or a subsequent purchaser, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (ii) for the purpose of making another taxable supply in Canada of a commercial service in respect of the particular property to the particular non-resident person or a subsequent purchaser, (iii) for the purpose of making another taxable supply in Canada of a service of manufacturing or producing other tangible personal property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property (A) is incorporated or transformed into, attached to, or combined or assembled with, the other property in the manufacture or production of the other property, or (B) is directly consumed or expended in the manufacture or production of the other property, (iv) for the purpose of making another taxable supply in Canada of a commercial service in respect of other tangible personal property (other than property of a person that is resident in Canada) to the particular non-resident person or to another nonresident person that is not registered under Subdivision D of Division V, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property (A) is incorporated into, attached to, or combined or assembled with, the other property in the provision of the commercial service, or (B) is directly consumed or expended in the provision of the commercial service, or (v) if subsection (9) does not apply in respect of the particular taxable supply, as the recipient of another supply of the particular property made by the particular non-resident person, by a subsequent purchaser or by a lessee or sub-lessee of a subsequent purchaser, the following rules apply: (c) if the particular registrant has physical possession of the particular property at the particular time, (i) for the purposes of this Part, the particular taxable supply is deemed to have been made outside of Canada, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (ii) if any of subparagraphs (b)(i) to (iv) applies, the particular registrant is deemed for the purposes of this section (A) except if clause (B) applies, to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Canada to the particular nonresident person of a commercial service in respect of the particular property that is not a storage service, or (B) if subparagraph (b)(ii) applies and the other taxable supply referred to in that subparagraph is to be made to the particular non-resident person or to a non-resident subsequent purchaser that is not registered under Subdivision D of Division V and is not a consumer of the particular property or if subparagraph (b)(iii) or (iv) applies, to have acquired, at the particular time, physical possession of the particular property for the purpose referred to in whichever of subparagraphs (b)(ii) to (iv) applies, and (iii) if subparagraph (b)(v) applies, for the purposes of this section and the definition imported taxable supply in section 217, (A) the particular registrant is deemed to have acquired physical possession of the particular property, as the recipient of the other supply referred to in that subparagraph, from another person that is a registrant, (B) that acquisition of physical possession of the particular property is deemed to have occurred at the time when, and at the place where, the particular property is delivered or made available to the particular registrant under the agreement for that other supply, and (C) the particular registrant is deemed to have given to the other person referred to in clause (A) a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the particular property, and (d) if another registrant has physical possession of the particular property at the particular time, for the purposes of this section and the definition imported taxable supply in section 217, (i) if subparagraph (b)(i) applies and the other registrant gives to the particular registrant a certificate that contains the information set out in paragraph (2)(d) in respect of the particular property, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (A) the particular registrant is deemed to have caused, at the particular time, physical possession of the particular property to be transferred at a place in Canada to the other registrant, (B) the other registrant is deemed to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Canada to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, and (C) the certificate is deemed to be a certificate described in paragraph (2)(d) in respect of the transfer referred to in clause (A) and the acquisition referred to in clause (B), (ii) if any of subparagraphs (b)(ii) to (iv) applies, (A) the particular registrant is deemed to have caused physical possession of the particular property to be transferred at a place in Canada to the other registrant, (B) the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant for the purpose referred to in whichever of those subparagraphs applies, and (C) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at (I) except if subclause (II) applies, the particular time, or (II) if subparagraph (b)(ii) applies and the other taxable supply referred to in that subparagraph is to be made to a subsequent purchaser that is registered under Subdivision D of Division V, the time at which the particular property is delivered or made available to the subsequent purchaser, and (iii) if subparagraph (b)(v) applies, (A) the particular registrant is deemed to have caused physical possession of the particular property to be transferred to the other registrant, (B) the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant as the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 recipient of the other supply referred to in that subparagraph, and (C) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at the time when, and at the place where, the particular property is delivered or made available to the other registrant under the agreement for that other supply. Transfer of possession to bailee (6) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a registrant at a particular time transfers physical possession of tangible personal property to a bailee solely for the purpose of storing or shipping the property and if the bailee does not, at or before the particular time, give to the registrant a certificate described in paragraph (2)(d) in respect of the transfer of physical possession of the property, the following rules apply: (a) if, under the agreement with the bailee for storing or shipping the property, the bailee is required to transfer physical possession of the property to another person, other than the registrant, that is named at the particular time in the agreement, (i) the registrant is deemed not to have caused physical possession of the property to be transferred to the bailee and the bailee is deemed not to have acquired physical possession of the property, (ii) the registrant is deemed to have caused physical possession of the property to be transferred to the other person at the particular time and at the place where physical possession of the property is transferred to the other person by the bailee, (iii) the other person is deemed to have acquired physical possession of the property from the registrant for the purpose for which the other person is acquiring physical possession of the property from the bailee, and (iv) that acquisition of physical possession of the property is deemed to have occurred at the particular time and at the place where physical possession of the property is transferred to the other person by the bailee; and (b) if, under the agreement with the bailee for storing or shipping the property, the bailee is required to transfer physical possession of the property to the registrant or to another person (in this paragraph 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 referred to as the “consignee”) that is to be identified after the particular time, (i) the registrant is deemed to retain physical possession of the property, and the bailee is deemed not to have acquired physical possession of the property, throughout the period beginning at the particular time and ending at another time that is the earliest of (A) the time at which the bailee transfers physical possession of the property to the registrant, (B) the time at which the registrant gives to the consignee sufficient documentation to enable the consignee to require the bailee to transfer physical possession of the property to the consignee, (C) the time at which the registrant directs the bailee in writing to transfer physical possession of the property to the consignee, (D) the time at which the bailee transfers physical possession of the property to the consignee, and (E) if the bailee is acquiring physical possession of the property for the purpose of storing the property, the time at which the bailee gives to the registrant a certificate that contains the information set out in paragraph (2)(d) in respect of the property, and (ii) if the other time referred to in subparagraph (i) is (A) described in any of clauses (i)(B) to (D), (I) the registrant is deemed to have caused physical possession of the property to be transferred to the consignee at the other time and at the place where physical possession of the property is transferred to the consignee by the bailee, (II) the consignee is deemed to have acquired physical possession of the property from the registrant for the purpose for which the consignee is acquiring physical possession of the property from the bailee, and (III) that acquisition of physical possession of the property is deemed to have occurred at the other time and at the place where physical possession of the property is transferred to the consignee by the bailee, or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (B) described in clause (i)(E), (I) the transfer of physical possession of the property by the registrant to the bailee, and the acquisition of physical possession of the property by the bailee from the registrant, are deemed to have occurred at the other time and not at the particular time, and (II) the certificate referred to in that clause is deemed to be a certificate described in paragraph (2)(d) in respect of that transfer and that acquisition. Goods transferred to bailee by non-resident (7) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a non-resident person that is not registered under Subdivision D of Division V transfers physical possession of tangible personal property to a bailee that is a registrant for the sole purpose of storing or shipping the property and if the bailee either is a carrier that is acquiring physical possession of the property for the sole purpose of shipping the property or does not claim an input tax credit in respect of the property, the bailee is deemed not to have acquired physical possession of the property. Beginning of lease from unregistered non-resident (8) For the purposes of this section and the definition imported taxable supply in section 217, if (a) a registrant (in this subsection referred to as the “lessee”) (i) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular nonresident person that is not registered under Subdivision D of Division V, and (ii) is not deemed under clause (9)(c)(ii)(A) or subparagraph (9)(d)(ii) to have acquired physical possession of the property as the recipient of the particular taxable supply, (b) either (i) immediately before the particular time at which the property is delivered or made available to the lessee under the agreement for the particular taxable supply, another registrant has possession or use of the property as the recipient of another 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, or (ii) the following conditions are met: (A) subparagraph (i) does not apply, (B) another registrant has physical possession of the property immediately after the particular time, and (C) the lessee did not have possession or use of the property immediately before the particular time as the recipient of another taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, and (c) it is not the case that a person that is a registrant acquired physical possession of the property before the particular time for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V and continues to retain physical possession of the property until a time that is after the particular time, the following rules apply: (d) the other registrant referred to in subparagraph (b)(i) or (ii), as the case may be, is deemed to have caused physical possession of the property to be transferred to the lessee at the particular time and at the place where the property is delivered or made available to the lessee under the agreement for the particular taxable supply, (e) the lessee is deemed to have acquired physical possession of the property from the other registrant as the recipient of the particular taxable supply, and (f) that acquisition of physical possession of the property is deemed to have occurred at the particular time and at the place where the property is delivered or made available to the lessee under the agreement for the particular taxable supply. Lease subsequent to sale (9) If 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (a) a particular registrant makes a particular taxable supply in Canada of tangible personal property by way of sale to a particular non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the property, and (b) at the particular time at which the property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply, the particular registrant or another registrant is, or is intended to be, the recipient of another supply of the property made by way of lease, licence or similar arrangement by the particular nonresident person or by another non-resident person that is not registered under Subdivision D of Division V, the following rules apply: (c) if the particular registrant is, or is intended to be, at the particular time the recipient of the other supply, (i) for the purposes of this Part, the particular taxable supply is deemed to have been made outside of Canada, (ii) for the purposes of this section and the definition imported taxable supply in section 217, (A) the particular registrant is deemed to have acquired physical possession of the property, as the recipient of the other supply, from another person that is a registrant, (B) that acquisition of physical possession of the property is deemed to have occurred at the time when, and at the place where, the property is delivered or made available to the particular registrant under the agreement for the other supply, and (C) the particular registrant is deemed to have given to the other person referred to in clause (A) a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the property, and (d) if another registrant is, or is intended to be, at the particular time the recipient of the other supply, for the purposes of this section and the definition imported taxable supply in section 217, (i) the particular registrant is deemed to have caused physical possession of the property to be transferred to the other registrant, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (ii) the other registrant is deemed to have acquired physical possession of the property, as the recipient of the other supply, from the particular registrant, and (iii) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the property, at the time when, and at the place where, the property is delivered or made available to the other registrant under the agreement for the other supply. Deemed possession during lease (10) For the purposes of this section and the definition imported taxable supply in section 217, if a registrant (in this subsection referred to as the “lessee”) acquires — as the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V — physical possession of the property at a particular time and either (a) gives a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the property, or (b) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the lessee under subsection 178.8(2) or paragraph 180(d) in respect of the property, the lessee is deemed to retain physical possession of the property at all times throughout the period that begins at the particular time and ends at the earliest of (c) the time at which the lessee causes physical possession of the property to be transferred to another registrant that (i) is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and (ii) retains physical possession of the property during a part of the period during which possession or use of the property is provided to the lessee under the arrangement, (d) the time at which the lessee causes physical possession of the property to be transferred to the particular non-resident person or to another non-resident 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 person that is not registered under Subdivision D of Division V, and (e) the time at which the lessee causes physical possession of the property to be transferred to a person that is not referred to in paragraph (c) or (d), if that time is not included in (i) the period during which possession or use of the property is provided to the lessee under the arrangement, or (ii) another period during which the lessee has possession or use of the property as the recipient of another taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V. Possession by service provider during lease (11) For the purposes of this section and the definition imported taxable supply in section 217, if (a) a registrant (in this subsection referred to as the “lessee”) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V, (b) another registrant acquires physical possession of the property at a particular time for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and (c) the other registrant retains physical possession of the property during a part of the particular period during which possession or use of the property is provided to the lessee under the arrangement, the following rules apply: (d) if a third person other than the lessee causes physical possession of the property to be transferred to the other registrant at the particular time, if the particular time is during the particular period and if the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in paragraphs (b) and (c), 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 (i) the third person is deemed not to have caused that transfer of physical possession of the property, and (ii) the lessee is deemed to have caused, at the particular time, physical possession of the property to be transferred to the other registrant at the place where the other registrant acquires physical possession of the property, and (e) if the other registrant causes, at a later time that is after the particular time but during the particular period, physical possession of the property to be transferred at a particular place to a third person other than the lessee and the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in paragraphs (b) and (c), (i) the other registrant is deemed to have caused, at the later time, physical possession of the property to be transferred to the lessee at the particular place, (ii) the lessee is deemed to have acquired physical possession of the property as the recipient of the particular taxable supply at the later time and at the place where the property is delivered or made available to the lessee under the arrangement, and (iii) the other registrant is deemed not to have caused physical possession of the property to be transferred to the third person, and the third person is deemed not to have acquired physical possession of the property. End of lease period (12) For the purposes of this section and the definition imported taxable supply in section 217, if (a) a registrant (in this subsection referred to as the “lessee”) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V, (b) a particular person other than the lessee has physical possession of the property immediately after the particular time that is at the end of the period during which possession or use of the property is provided to the lessee under the arrangement, (c) if the particular person is a registrant, the particular person did not acquire physical possession of the property before the particular time for the purpose of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 121 making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, (d) the lessee does not retain possession or use of the property after the particular time as the recipient of a taxable supply of the property made by way of lease, licence or similar arrangement by the particular nonresident person or by another non-resident person that is not registered under Subdivision D of Division V, and (e) another registrant does not have possession or use of the property immediately after the particular time as the recipient of a taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, the following rules apply: (f) the lessee is deemed to have caused, at the particular time, physical possession of the property to be transferred to the particular person at the place where the particular person has physical possession of the property immediately after the particular time, (g) if the particular person is a registrant and has physical possession of the property immediately after the particular time as the recipient of a supply referred to in subparagraph (2)(c)(i), the particular person is deemed to have acquired, at the particular time and at the place referred to in paragraph (f), physical possession of the property as the recipient of that supply, and (h) if the particular person is a registrant and has physical possession of the property immediately after the particular time for the purpose of making a supply referred to in any of subparagraphs (2)(c)(ii) to (iv), the particular person is deemed to have acquired, at the particular time and at the place referred to in paragraph (f), physical possession of the property for that purpose. Use of railway rolling stock (13) For the purpose of clause (4)(b)(ii)(C), if the only use of railway rolling stock after physical possession of it is transferred as described in that clause and before it is next exported is for the purpose of transporting tangible personal property or passengers in the course of that exportation and that exportation occurs within 60 days after the day on which the transfer takes place, that use of 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 121-123 the rolling stock is deemed to take place entirely outside Canada. (15) Subsections (1) to (3), (6) to (8), (12) and (13) apply in respect of supplies made after July 22, 2016. (16) Subsections (4) and (9) to (11) apply in respect of (a) supplies made after July 22, 2016; and (b) supplies made before July 23, 2016 in respect of which, before that day, an amount was charged, collected or remitted as or on account of tax under Part IX of the Act. (17) Subsection (5) applies in respect of supplies made before July 23, 2016 in respect of which no amount is charged, collected or remitted as or on account of tax under Part IX of the Act. (18) Subsection (14) applies in respect of supplies made after the day on which this Act receives royal assent. 122 (1) Subparagraph 180(a)(ii) of the Act is replaced by the following: (ii) if the particular person is a registrant, causes physical possession of tangible personal property (other than property of a person that is resident in Canada) to be transferred in Canada to the particular person in circumstances in which the particular person is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person, (2) Subsection (1) applies in respect of supplies made after July 22, 2016. 123 (1) Paragraph 183(1)(b) of the French version of the Act is replaced by the following: b) pour l’application de la présente partie, sauf les articles 193 et 257, cette fourniture est réputée avoir été effectuée sans contrepartie; (2) Paragraph 183(10.1)(d) of the French version of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 123-125 d) le rachat du bien est réputé en être une fourniture par vente effectuée sans contrepartie par l’acquéreur de la première fourniture au profit du débiteur; 124 Paragraph 184(1)(b) of the French version of the Act is replaced by the following: b) pour l’application de la présente partie, sauf les articles 193 et 257, cette fourniture est réputée avoir été effectuée sans contrepartie; 125 (1) Paragraph (b) of the definition imported taxable supply in section 217 of the Act is replaced by the following: (b) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if (i) the recipient gives to another registrant a certificate described in paragraph 179(2)(d) in respect of an acquisition of physical possession of the property by the recipient, and (ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act; (2) The definition imported taxable supply in section 217 of the Act is amended by adding the following after paragraph (b): (b.01) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by way of sale by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if (i) the recipient gives to another registrant a certificate described in subparagraph 179(2.1)(e)(i) in respect of an acquisition of physical possession of the property by a third person, and (ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 125 a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act; (3) Subparagraph (b.01)(i) of the definition imported taxable supply in section 217 of the Act, as enacted by subsection (2), is replaced by the following: (i) the recipient gives to another registrant a certificate described in subparagraph 179(3)(c)(i) in respect of an acquisition of physical possession of the property by a third person, and (4) Paragraph (b.1) of the definition imported taxable supply in section 217 of the Act is replaced by the following: (b.1) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by way of sale at a particular time by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if (i) the recipient acquires physical possession of the property as the recipient of another supply of the property made by way of lease, licence or similar arrangement and either (A) gives to another registrant a certificate described in paragraph 179(2)(d) in respect of that acquisition of physical possession of the property, or (B) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the recipient under subsection 178.8(2) or paragraph 180(d) in respect of the property, and (ii) the recipient is not acquiring, as the recipient of the taxable supply, the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 125-126 (5) Paragraph (f) of the definition permitted deduction in section 217 of the English version of the Act is replaced by the following: (f) qualifying compensation of an employee of the qualifying taxpayer that is paid in the specified year by the qualifying taxpayer if the employee was primarily in Canada while performing the employee’s duties during the specified year; (6) Subsections (1), (3) and (4) apply in respect of supplies made after the day on which this Act receives royal assent. (7) Subsection (2) applies in respect of supplies made after July 22, 2016. 126 (1) The portion of subsection 217.1(6) of the Act before paragraph (a) is replaced by the following: Qualifying rule for credits and rebates (6) If an amount (in this subsection referred to as a “qualifying expenditure”) of qualifying consideration, or of an external charge, of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada is greater than zero and, during a reporting period of the qualifying taxpayer during which the qualifying taxpayer is a registrant, tax under section 218.01 or subsection 218.1(1.2) in respect of the qualifying expenditure becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable, the following rules apply for the purpose of determining an input tax credit or an eligible amount, as defined in subsection 261.01(1), of the qualifying taxpayer: (2) The portion of subsection 217.1(7) of the Act before paragraph (a) is replaced by the following: Qualifying rule for credits and rebates — internal charge (7) If tax (in this subsection referred to as “internal tax”) under section 218.01 or subsection 218.1(1.2) in respect of an internal charge becomes payable by a qualifying taxpayer, or is paid by the qualifying taxpayer without having become payable, and the internal charge is determined based in whole or in part on the inclusion of an outlay made, or an expense incurred, outside Canada by the qualifying taxpayer, the following rules apply for the purpose of determining an input tax credit or an eligible amount, as defined in subsection 261.01(1), of the qualifying taxpayer: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 126 (3) Subsections (1) and (2) apply in respect of any claim period of a person, as defined in subsection 259(1) of the Act, that begins after September 22, 2009. (4) If, in assessing under section 297 of the Act a rebate under subsection 261.01(2) of the Act for a claim period of a pension entity, one or more particular amounts were not included as eligible amounts, as defined in subsection 261.01(1) of the Act, for the claim period in determining the amount of the rebate and, as a result of the application of subsections (1) and (2), those particular amounts are eligible amounts for the claim period, the pension entity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that those particular amounts are eligible amounts for the claim period and, on receipt of the request, the Minister must with all due dispatch (a) consider the request; and (b) under sections 296 and 297 of the Act assess, reassess or make an additional assessment of the rebate under subsection 261.01(2) of the Act for the claim period, and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the particular amounts are eligible amounts for the claim period. (5) If, in assessing under section 296 of the Act the net tax for a reporting period of a qualifying employer, as defined in subsection 261.01(1) of the Act, of a pension plan that includes the day on which an election — made jointly under subsection 261.01(5), (6) or (9) of the Act by the qualifying employer and a pension entity of the pension plan — is filed with the Minister of National Revenue, an amount was not deducted under any of subsections 261.01(5), (6) and (9) of the Act and, as a result of the application of subsections (1) and (2), the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period, the qualifying employer is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 126-127 Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period and, on receipt of the request, the Minister must with all due dispatch (a) consider the request; and (b) under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the qualifying employer, solely for the purpose of taking into account that the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period. 127 (1) The portion of paragraph 218.1(1)(a) of the Act before the formula is replaced by the following: (a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply in participating provinces to an extent that is prescribed must, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula (2) The description of C in paragraph 218.1(1)(a) of the Act is replaced by the following: C is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province; and (3) Subparagraph 218.1(1)(b)(ii) of the Act is replaced by the following: (ii) is the recipient of a supply, included in any of paragraphs (b.01) to (b.3) of the definition imported taxable supply in section 217, of property that is delivered or made available to the person in a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 127 particular participating province and is either resident in that province or is a registrant, or (4) Clause (B) of the description of C in paragraph 218.1(1)(b) of the Act is replaced by the following: (B) in any other case, the extent (expressed as a percentage) to which the person acquired the property for consumption, use or supply in the particular participating province. (5) The description of A2 in the description of A in paragraph 218.1(1.2)(a) of the Act is replaced by the following: A2 is the extent (expressed as a percentage) to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province, and (6) The description of B2 in the description of B in paragraph 218.1(1.2)(a) of the Act is replaced by the following: B2 is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province; and (7) The description of D in paragraph 218.1(1.2)(b) of the Act is replaced by the following: D is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 127-129 (8) Subsections (1) to (4) apply in respect of any supply made after July 22, 2016. (9) Subsections (5) to (7) apply in respect of any specified year of a person that ends after July 22, 2016. 128 (1) Subsection 220.05(3.1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero; (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero. (2) Subsection (1) is deemed to have come into force on July 22, 2016. 129 (1) Subsection 220.08(1) of the Act is replaced by the following: Tax in participating province 220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part in any participating province that is not the particular province must pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 129-130 (2) Subsection 220.08(3.1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero; (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero. (3) Subsection (1) applies in respect of any supply made after July 22, 2016. (4) Subsection (2) is deemed to have come into force on July 22, 2016. 130 (1) The description of B in subsection 225.1(2) of the Act is amended by adding the following after paragraph (b): (b.1) 60% of the total of all amounts that may be deducted by the charity under paragraph 232.01(5)(a) or 232.02(4)(a) in determining the net tax for the particular reporting period and that are claimed in the return under this Division filed for that reporting period, (2) Subsection (1) applies in respect of any reporting period of a person that ends after September 22, 2009. (3) If, in assessing under section 296 of the Act the net tax for a reporting period of a charity, an amount was not included in the total for B in subsection 225.1(2) of the Act and, as a result of the application of subsection (1), the amount is to be included in paragraph (b.1) of the description of B in subsection 225.1(2) of the Act in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 130-131 determining the net tax for the reporting period, the charity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount is to be included in that paragraph in determining the net tax for the reporting period and, on receipt of the request, the Minister must with all due dispatch (a) consider the request; and (b) under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the charity, solely for the purpose of taking into account that the amount is to be included in paragraph (b.1) of the description of B in subsection 225.1(2) of the Act in determining the net tax for the reporting period. 131 (1) Paragraph (c) of the description of A in subsection 225.2(2) of the Act is replaced by the following: (c) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have this paragraph apply, equal to tax calculated at the rate set out in subsection 165(1) on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part; (2) Paragraph (c) of the description of A in subsection 225.2(2) of the Act, as enacted by subsection (1), is replaced by the following: (c) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have this paragraph apply — equal to tax 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 131 calculated at the rate set out in subsection 165(1) on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part; (3) Paragraph (b) of the description of F in subsection 225.2(2) of the Act is replaced by the following: (b) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have paragraph (c) of the description of A apply — equal to tax payable by the other person under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution; and (4) Subsections 225.2(4) and (5) of the Act are replaced by the following: Election (4) If a person, other than a prescribed person or a person of a prescribed class, and a selected listed financial institution have made jointly an election under section 150, the financial institution may make an election, in prescribed form containing prescribed information, to have paragraph (c) of the description of A in subsection (2) apply to every supply to which subsection 150(1) applies that is made by the person to the financial institution at a time the election made under this subsection is in effect. (5) The portion of subsection 225.2(6) of the Act before paragraph (a) is replaced by the following: Effective period of election (6) An election made under subsection (4) by a selected listed financial institution in respect of supplies made by a person to the financial institution shall be effective for the period beginning on the day specified in the election and ending on the earliest of (6) Paragraph 225.2(6)(b) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 131-132 (b) the day specified in a revocation of the election made under subsection (6.1), (7) Section 225.2 of the Act is amended by adding the following after subsection (6): Revocation (6.1) A selected listed financial institution that has made an election under subsection (4) may revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation, which day is at least 365 days after the day on which the election becomes effective. Notice of election (6.2) If a particular selected listed financial institution has made an election under subsection (4) in respect of supplies made by another selected listed financial institution to the particular financial institution, the particular financial institution shall, in a manner satisfactory to the Minister, (a) notify the other financial institution of the election and of the day it becomes effective on or before that day or any later day that the Minister may allow; and (b) if the election ceases to be effective, notify the other financial institution of the day that the election ceases to be effective on or before that day or any later day that the Minister may allow. (8) Subsection (1) applies in respect of any reporting period of a person that ends after June 2010. (9) Subsections (2) to (5) and subsection 225.2(6.2) of the Act, as enacted by subsection (7), apply in respect of any election made under subsection 225.2(4) of the Act that becomes effective after the day on which this Act receives royal assent. (10) Subsection (6) and subsection 225.2(6.1) of the Act, as enacted by subsection (7), apply in respect of any revocation that becomes effective after the day on which this Act receives royal assent. 132 (1) Subsection 232.01(3) of the Act is replaced by the following: Tax adjustment note — subsections 172.1(5) and (5.1) (3) A person may, on a particular day, issue to a pension entity of a pension plan a note (in this section referred to 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 132 as a “tax adjustment note”) in respect of all or part of a specified resource, specifying an amount determined in accordance with paragraph (4)(a) (in this section referred to as the “federal component amount” of the tax adjustment note) and an amount determined in accordance with paragraph (4)(b) (in this section referred to as the “provincial component amount” of the tax adjustment note), if (a) the person is deemed under paragraph 172.1(5)(b) or (5.1)(b) to have collected tax, on or before the particular day, in respect of a taxable supply of the specified resource or part deemed to have been made by the person under paragraph 172.1(5)(a) or (5.1)(a); (b) a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax in respect of that supply is deemed to have been paid under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) by the pension entity; and (c) an amount of tax becomes payable, or is paid without having become payable, on or before the particular day to the person (otherwise than by the operation of section 172.1) in respect of a taxable supply of the specified resource or part (i) by the pension entity, if the taxable supply referred to in paragraph (a) is deemed to have been made under paragraph 172.1(5)(a), or (ii) by a master pension entity of the pension plan, if the taxable supply referred to in paragraph (a) is deemed to have been made under paragraph 172.1(5.1)(a). (2) The description of A in paragraph 232.01(4)(a) of the Act is replaced by the following: A is (i) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5)(a), the lesser of (A) the amount determined for A in paragraph 172.1(5)(c) in respect of the specified resource or part, and (B) the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 132 taxable supply of the specified resource or part on or before the particular day, and (ii) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5.1)(a), the lesser of (A) the amount determined for the pension plan under the description of A in paragraph 172.1(5.1)(c) in respect of the specified resource or part, and (B) the amount determined by the formula A1 × A 2 where A1 is the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subparagraph (3)(c)(ii) in respect of a taxable supply of the specified resource or part on or before the particular day, and A2 is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and (3) The description of C in paragraph 232.01(4)(b) of the Act is replaced by the following: C is (i) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5)(a), the lesser of (A) the amount determined for B in paragraph 172.1(5)(c) in respect of the specified resource or part, and (B) the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of a taxable supply of the specified resource or part on or before the particular day, and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 132 (ii) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5.1)(a), the lesser of (A) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of the specified resource or part, and (B) the amount determined by the formula and C1 × C2 where C1 is the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subparagraph (3)(c)(ii) in respect of a taxable supply of the specified resource or part on or before the particular day, and C2 is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and (4) The portion of subsection 232.01(5) of the Act before paragraph (a) is replaced by the following: Effect of tax adjustment note (5) If a person issues a tax adjustment note to a pension entity under subsection (3) in respect of all or part of a specified resource, a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in respect of that supply is deemed to have been paid on a particular day under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) by the pension entity, the following rules apply: (5) The portion of paragraph 232.01(5)(c) of the Act before the formula is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 132 (c) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a particular claim period of the pension entity, the pension entity shall pay to the Receiver General — on or before the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula (6) The portion of paragraph 232.01(5)(c) of the Act before the description of A, as amended by subsection (5), is replaced by the following: (c) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a particular claim period of the pension entity, the pension entity shall pay to the Receiver General — on or before the day that is the later of the day on which the application for the rebate is filed and the day that is the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula A × B × (C/D) × (E/F) where (7) The descriptions of E and F in paragraph 232.01(5)(c) of the Act are replaced by the following: E is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and F is the pension rebate amount of the pension entity for the particular claim period; and (8) The portion of paragraph 232.01(5)(d) of the Act before the formula is replaced by the following: (d) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a claim period of the pension entity and if the pension entity makes an election for the claim period under any of subsections 261.01(5), (6) or (9) jointly with all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day on which the tax adjustment note is issued, the amount determined by the formula 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 132 (9) The portion of paragraph 232.01(5)(d) of the Act before the formula, as enacted by subsection (8), is replaced by the following: (d) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a claim period of the pension entity and if the pension entity makes an election for the claim period under any of subsections 261.01(5), (6) or (9) jointly with all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day that is the later of the day on which the tax adjustment note is issued and the day on which the election is filed with the Minister, the amount determined by the formula (10) The description of F in paragraph 232.01(5)(d) of the Act is replaced by the following: F is the pension rebate amount of the pension entity for the claim period. (11) Subsections (1) to (4) are deemed to have come into force on July 22, 2016. (12) Subsection (5) applies in respect of any claim period that begins after September 22, 2009 and ends before July 23, 2016. (13) Subsections (6) and (7) apply in respect of any claim period that ends after July 22, 2016. (14) Subsection (8) applies in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after September 22, 2009 but only if the return was required under that Division to be filed on or before a day that is before July 23, 2016. (15) Subsections (9) and (10) apply in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after July 22, 2016 or is required under that Division to be filed on or before a day that is after July 22, 2016. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 132 (16) If a particular amount was assessed under section 296 of the Act as an amount payable under paragraph 232.01(5)(c) of the Act by a pension entity of a pension plan in respect of a tax adjustment note issued to the pension entity, if an eligible amount (as defined in subsection 261.01(1) of the Act) of the pension entity for a particular claim period (as defined in subsection 259(1) of the Act) of the pension entity was included in the determination of the particular amount, if the eligible amount is not included in the determination of the pension rebate amount (as defined in subsection 261.01(1) of the Act) of the pension entity for the particular claim period and if July 23, 2016 is after the last day of the claim period of the pension entity that immediately follows the claim period of the pension entity that includes the day on which the tax adjustment note is issued, then the pension entity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the eligible amount is not an amount payable under paragraph 232.01(5)(c) of the Act, as amended by subsection (5), and, on receipt of the request and with all due dispatch, (a) the Minister must consider the request; and (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the particular amount, and of any interest, penalty or other obligation of the pension entity, solely for the purpose of taking into account that the eligible amount is not an amount payable under that paragraph 232.01(5)(c). (17) If a particular amount was assessed under section 296 of the Act as an amount payable under paragraph 232.01(5)(d) of the Act by a participating employer of a pension plan in respect of a tax adjustment note that was issued to a pension entity of the pension plan, if an eligible amount (as defined in subsection 261.01(1) of the Act) of the pension entity for a particular claim period (as defined in subsection 259(1) of the Act) of the pension entity was included in the determination of the particular amount, if the eligible amount is not included in the determination of the pension rebate amount (as defined in subsection 261.01(1) of the Act) of the pension entity for the particular claim period and if July 23, 2016 is after the day 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 132-133 on which the return is filed under Division V of Part IX of the Act for the reporting period of the participating employer that includes the day on which the tax adjustment note is issued, then the participating employer is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the eligible amount is not an amount payable under paragraph 232.01(5)(d) of the Act, as amended by subsection (8), and, on receipt of the request and with all due dispatch, (a) the Minister must consider the request; and (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the particular amount, and of any interest, penalty or other obligation of the participating employer, solely for the purpose of taking into account that the eligible amount is not an amount payable under that paragraph 232.01(5)(d). 133 (1) Subsection 232.02(2) of the Act is replaced by the following: Tax adjustment note — subsections 172.1(6) and (6.1) (2) A person may, on a particular day, issue to a pension entity of a pension plan a note (in this section referred to as a “tax adjustment note“) in respect of employer resources consumed or used for the purpose of making a supply (in this section referred to as the “actual pension supply”) of property or a service to the pension entity or to a master pension entity of the pension plan, specifying an amount determined in accordance with paragraph (3)(a) (in this section referred to as the “federal component amount” of the tax adjustment note) and an amount determined in accordance with paragraph (3)(b) (in this section referred to as the “provincial component amount” of the tax adjustment note), if (a) the person is deemed under paragraph 172.1(6)(b) or (6.1)(b) to have collected tax, on or before the particular day, in respect of one or more taxable supplies, deemed to have been made by the person under paragraph 172.1(6)(a) or (6.1)(a), of the employer resources; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 133 (b) a supply of each of those employer resources is deemed to have been received by the pension entity under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) and tax in respect of each of those supplies is deemed to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) by the pension entity; and (c) an amount of tax becomes payable, or is paid without having become payable, on or before the particular day, to the person (otherwise than by the operation of section 172.1) in respect of the actual pension supply (i) by the pension entity, if the taxable supplies referred to in paragraph (a) are deemed to have been made under paragraph 172.1(6)(a), or, (ii) by the master pension entity, if the taxable supplies referred to in paragraph (a) are deemed to have been made under paragraph 172.1(6.1)(a). (2) The description of A in paragraph 232.02(3)(a) of the Act is replaced by the following: A is (i) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6)(a), the lesser of (A) the total of all amounts, each of which is an amount determined for A in paragraph 172.1(6)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6)(b) to have become payable and to have been collected on or before the particular day, and (B) the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of the actual pension supply on or before the particular day, and (ii) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6.1)(a), the lesser of (A) the total of all amounts, each of which is an amount determined for the pension plan under the description of A in paragraph 172.1(6.1)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6.1)(b) to have become payable 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 133 and to have been collected on or before the particular day, and (B) the amount determined by the formula A1 × A2 where A1 is the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subsection (2) in respect of the actual pension supply on or before the particular day, and A2 is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and (3) The description of C in paragraph 232.02(3)(b) of the Act is replaced by the following: C is (i) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6)(a), the lesser of (A) the total of all amounts, each of which is an amount determined for B in paragraph 172.1(6)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6)(b) to have become payable and to have been collected on or before the particular day, and (B) the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of the actual pension supply on or before the particular day, and (ii) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6.1)(a), the lesser of (A) the total of all amounts, each of which is an amount determined for the pension plan under the description of B in paragraph 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 133 172.1(6.1)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6.1)(b) to have become payable and to have been collected on or before the particular day, and (B) the amount determined by the formula C1 × C2 where C1 is the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subsection (2) in respect of the actual pension supply on or before the particular day, and C2 is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and (4) The portion of subsection 232.02(4) of the Act before paragraph (a) is replaced by the following: Effect of tax adjustment note (4) If a person issues a tax adjustment note to a pension entity under subsection (2) in respect of particular employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those particular employer resources (each of which in this subsection is referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in respect of each of the particular supplies is deemed to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) by the pension entity, the following rules apply: (5) The portion of paragraph 232.02(4)(c) of the Act before the formula is replaced by the following: (c) for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity, the pension entity shall pay to the Receiver 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 133 General — on or before the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula (6) The portion of paragraph 232.02(4)(c) of the Act before the description of A, as amended by subsection (5), is replaced by the following: (c) for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity, the pension entity shall pay to the Receiver General — on or before the day that is the later of the day on which the application for the rebate is filed and the day that is the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula A × B × (C/D) × (E/F) where (7) The descriptions of E and F in paragraph 232.02(4)(c) of the Act are replaced by the following: E is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and F is the pension rebate amount of the pension entity for the particular claim period; and (8) The portion of paragraph 232.02(4)(d) of the Act before the formula is replaced by the following: (d) for each claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity and for which an election under any of subsections 261.01(5), (6) or (9) is made jointly by the pension entity and all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day on which the tax adjustment note is issued, the amount determined by the formula (9) The portion of paragraph 232.02(4)(d) of the Act before the formula, as enacted by subsection (8), is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 133 (d) for each claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity and for which an election under any of subsections 261.01(5), (6) or (9) is made jointly by the pension entity and all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day that is the later of the day on which the tax adjustment note is issued and the day on which the election is filed with the Minister, the amount determined by the formula (10) The description of F in paragraph 232.02(4)(d) of the Act is replaced by the following: F is the pension rebate amount of the pension entity for the claim period. (11) Subsections (1) to (4) are deemed to have come into force on July 22, 2016. (12) Subsection (5) applies in respect of any claim period that begins after September 22, 2009 and ends before July 23, 2016. (13) Subsections (6) and (7) apply in respect of any claim period that ends after July 22, 2016. (14) Subsection (8) applies in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after September 22, 2009 but only if the return is required under that Division to be filed on or before a day that is before July 23, 2016. (15) Subsections (9) and (10) apply in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after July 22, 2016 or is required under that Division to be filed on or before a day that is after July 22, 2016. (16) If a particular amount was assessed under section 296 of the Act as an amount payable under paragraph 232.02(4)(c) of the Act by a pension entity of a pension plan in respect of a tax adjustment note issued to the pension entity, if an 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 133 eligible amount (as defined in subsection 261.01(1) of the Act) of the pension entity for a particular claim period (as defined in subsection 259(1) of the Act) of the pension entity was included in the determination of the particular amount, if the eligible amount is not included in the determination of the pension rebate amount (as defined in subsection 261.01(1) of the Act) of the pension entity for the particular claim period and if July 23, 2016 is after the last day of the claim period of the pension entity that immediately follows the claim period of the pension entity that includes the day on which the tax adjustment note is issued, then the pension entity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the eligible amount is not an amount payable under paragraph 232.02(4)(c) of the Act, as amended by subsection (5), and, on receipt of the request and with all due dispatch, (a) the Minister must consider the request; and (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the particular amount, and of any interest, penalty or other obligation of the pension entity, solely for the purpose of taking into account that the eligible amount is not an amount payable under that paragraph 232.02(4)(c). (17) If a particular amount was assessed under section 296 of the Act as an amount payable under paragraph 232.02(4)(d) of the Act by a participating employer of a pension plan in respect of a tax adjustment note that was issued to a pension entity of the pension plan, if an eligible amount (as defined in subsection 261.01(1) of the Act) of the pension entity for a particular claim period (as defined in subsection 259(1) of the Act) of the pension entity was included in the determination of the particular amount, if the eligible amount is not included in the determination of the pension rebate amount (as defined in subsection 261.01(1) of the Act) of the pension entity for the particular claim period and if July 23, 2016 is after the day on which the return is filed under Division V of Part IX of the Act for the reporting period of the participating employer that includes the day on which the tax adjustment note is issued, then the participating employer is entitled until the day 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 133-134 that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the eligible amount is not an amount payable under paragraph 232.02(4)(d) of the Act, as amended by subsection (8), and, on receipt of the request and with all due dispatch, (a) the Minister must consider the request; and (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the particular amount, and of any interest, penalty or other obligation of the participating employer, solely for the purpose of taking into account that the eligible amount is not an amount payable under that paragraph 232.02(4)(d). 134 (1) The portion of subsection 235(1) of the French version of the Act before the formula is replaced by the following: Taxe nette en cas de location de voiture de tourisme 235 (1) Lorsque la taxe relative aux fournitures d’une voiture de tourisme, effectuées aux termes d’un bail, devient payable par un inscrit, ou est payée par lui sans être devenue payable, au cours de son année d’imposition, et que le total de la contrepartie des fournitures qui serait déductible dans le calcul du revenu de l’inscrit pour l’année pour l’application de la Loi de l’impôt sur le revenu s’il était un contribuable aux termes de cette loi et s’il n’était pas tenu compte de l’article 67.3 de cette loi, excède le montant, relatif à cette contrepartie, qui serait déductible dans le calcul du revenu de l’inscrit pour l’année pour l’application de cette loi s’il était un contribuable aux termes de cette loi et s’il n’était pas tenu compte de l’élément B des formules figurant aux alinéas 7307(1)b) et (3)b) du Règlement de l’impôt sur le revenu, le montant obtenu par la formule ci-après est ajouté dans le calcul de la taxe nette de l’inscrit pour la période de déclaration indiquée : (2) Subsection (1) applies in respect of reporting periods that end after November 27, 2006 and in respect of any reporting period that ends on or before that day unless (a) an amount was added pursuant to section 235 of the Act in determining the net tax for the reporting period; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 134-137 (b) the amount was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales tax; and (c) the return for the reporting period was filed under Division V of Part IX of the Act on or before that day. 135 Subsection 252.41(3) of the English version of the Act is replaced by the following: Joint and several liability (3) If, under subsection (2), a supplier pays to, or credits in favour of, a person an amount on account of a rebate and the supplier knows or ought to know that the person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the person is entitled, the supplier and the person are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount that was paid or credited on account of the rebate or the excess amount, as the case may be. 136 Paragraph 252.5(c) of the English version of the Act is replaced by the following: (c) if, at the particular time, the registrant knows or ought to know that the person does not satisfy the eligibility condition or that the amount paid or credited exceeds the rebate to which the person is entitled, the registrant and the person are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time as a rebate under this Division to the registrant and the person, and 137 Subsection 254(6) of the English version of the Act is replaced by the following: Joint and several liability (6) If the builder of a single unit residential complex or a residential condominium unit pays or credits a rebate to or in favour of an individual under subsection (4) and the builder knows or ought to know that the individual is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the individual is entitled, the builder and the individual are jointly and severally, or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 137-139 solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. 138 Subsection 254.1(6) of the English version of the Act is replaced by the following: Joint and several liability (6) If the builder of a residential complex pays or credits a rebate under subsection (4) and the builder knows or ought to know that the individual is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the individual is entitled, the builder and the individual are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. 139 (1) Subsection 259 of the Act is amended by adding the following after subsection (6): Application for rebate — subsequent claim period (6.1) If a rebate under this section in respect of property or a service for a particular claim period of a person is not claimed in an application for the particular claim period, the rebate may be claimed by the person in an application for a subsequent claim period of the person if the following conditions are met: (a) the rebate has not been claimed in any application for any claim period of the person; (b) the application for the subsequent claim period is filed by the person within two years after (i) if the person is a registrant, the day on or before which the person is required to file the return under Division V for the particular claim period, and (ii) if the person is not a registrant, the day that is three months after the last day of the particular claim period; (c) the person does not, at any time throughout the period (in this subsection referred to as the “specified period”) beginning on the first day of the particular claim period and ending on the last day of the subsequent claim period, become or cease to be (i) a charity, (ii) a public institution, (iii) a qualifying non-profit organization, (iv) a person designated to be a municipality, or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 139-140 (v) one of the bodies described in paragraphs (a) to (g) of the definition selected public service body in subsection (1); and (d) throughout the specified period, the percentages — being the specified percentage, the specified provincial percentage or any other percentage specified in this section or in a regulation made under this Part that applies for the purposes of this section — that would be applicable in determining the amount of a rebate under this section in respect of the property or service, if tax in respect of the property or service had become payable and had been paid by the person on each day in the specified period, remain constant. (2) Subsection (1) applies in respect of subsequent claim periods that end after September 8, 2017. 140 (1) Paragraph (b) of the definition eligible amount in subsection 261.01(1) of the Act is replaced by the following: (b) is deemed to have been paid by the pension entity under section 172.1 or 172.2 during the claim period. (montant admissible) (2) The description of B in the definition pension rebate amount in subsection 261.01(1) of the Act is replaced by the following: B is the amount determined by the formula G+H where G is the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (a) of the definition eligible amount, and H is (i) if an application for a rebate under subsection (2) for the claim period is filed in accordance with subsection (3), the total amount indicated on the application under subsection (3.1), (ii) if an election made under subsection (9) for the claim period is filed in accordance with subsection (10), the total amount indicated on the election in accordance with paragraph (10)(c), or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Section 140 (iii) in any other case, zero. (montant de remboursement de pension) (3) Section 261.01 of the Act is amended by adding the following after subsection (3): Application for rebate — pension rebate amount election (3.1) An application for a rebate under subsection (2) for a claim period of a pension entity shall indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period (a) that is described in paragraph (b) of the definition eligible amount in subsection (1); and (b) that the pension entity elects to include in the determination of the pension rebate amount of the pension entity for the claim period. (4) Paragraph 261.01(8)(b) of the Act is replaced by the following: (b) be filed by the pension entity with the Minister in prescribed manner (i) at the same time the application for the rebate under subsection (2) for the claim period is filed by the pension entity, and (ii) within two years after the day that is (A) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period, and (B) in any other case, the last day of the claim period; (5) Subsection 261.01(10) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period (i) that is described in paragraph (b) of the definition eligible amount in subsection (1), and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 140-142 (ii) that the pension entity elects to include in the determination of the pension rebate amount of the pension entity for the claim period. (6) Subsection (1) is deemed to have come into force on July 22, 2016. (7) Subsections (2), (3) and (5) apply in respect of any claim period of a pension entity beginning after September 22, 2009. (8) Subsection (4) applies in respect of any election made under subsection 261.01(5) or (6) of the Act other than an election that is filed before July 23, 2016. 141 Subsection 261.31(7) of the English version of the Act is replaced by the following: Joint and several liability (7) If an insurer, in determining its net tax for a reporting period, deducts an amount under subsection 234(5) that the insurer paid or credited to a segregated fund of the insurer on account of a rebate under subsection (2) and the insurer knows or ought to know that the segregated fund is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the segregated fund is entitled, the insurer and the segregated fund are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. 142 (1) The portion of paragraph 266(2)(d) of the English version of the Act before subparagraph (i) is replaced by the following: (d) the person and the receiver are jointly and severally, or solidarily, liable for the payment or remittance of all amounts that become payable or remittable by the person under this Part before or during the period during which the receiver is acting as receiver of the person to the extent that the amounts can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amounts became payable or remittable, as the case may be, except that (2) Subparagraph 266(2)(d)(iii) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 142-145 (iii) the payment or remittance by the person or the receiver of an amount in respect of the liability shall discharge their liability to the extent of that amount; 143 (1) The portion of subsection 267.1(3) of the English version of the Act before paragraph (a) is replaced by the following: Joint and several liability (3) A trustee of a trust is jointly and severally, or solidarily, liable with the trust and each of the other trustees, if any, for the payment or remittance of all amounts that become payable or remittable by the trust under this Part before or during the period during which the trustee acts as trustee of the trust except that (2) Paragraph 267.1(3)(b) of the Act is replaced by the following: (b) the payment or remittance by the trust or the trustee of an amount in respect of the liability discharges their liability to the extent of that amount. 144 (1) The portion of subsection 272.1(5) of the English version of the Act before paragraph (a) is replaced by the following: Joint and several liability (5) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the partnership (other than a member who is a limited partner and is not a general partner) are jointly and severally, or solidarily, liable for (2) Subparagraph 272.1(5)(a)(ii) of the Act is replaced by the following: (ii) the payment or remittance by the partnership or by any member thereof of an amount in respect of the liability discharges their liability to the extent of that amount; and 145 Subsection 273.1(6) of the French version of the Act is replaced by the following: Opérations entre personnes ayant un lien de dépendance (6) Lorsqu’il s’agit de déterminer le pourcentage de recettes d’exportation d’une personne donnée ou l’un des montants prévus aux paragraphes (2) à (5) relativement à des stocks finis d’une personne donnée ou à des produits de clients qui la concernent, dans le cas où une fourniture est effectuée sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande entre la personne donnée et une autre personne avec laquelle elle a un lien 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 145-150 de dépendance et où tout ou partie de la contrepartie de la fourniture serait incluse dans le calcul du revenu tiré d’une entreprise de la personne donnée pour une année, la fourniture est réputée avoir été effectuée pour une contrepartie égale à la juste valeur marchande, et cette contrepartie est réputée être incluse dans le calcul du revenu en question. 146 The portion of subsection 289(3) of the Act before paragraph (a) is replaced by the following: Judicial authorization (3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this subsection referred to as the “group”) if the judge is satisfied by information on oath that 147 (1) Paragraph 296(1)(d) of the Act is replaced by the following: (d) any amount payable by a person under any of paragraphs 228(2.1)(b) and (2.3)(d), section 230.1 and paragraphs 232.01(5)(c) and 232.02(4)(c), and (2) Subsection (1) is deemed to have come into force on September 23, 2009. 148 (1) Paragraph 298(1)(a.1) of the Act is replaced by the following: (a.1) in the case of an assessment of an amount payable under paragraph 228(2.1)(b) or (2.3)(d), 232.01(5)(c) or 232.02(4)(c) that a person is required to pay on or before a day, more than four years after that day; (2) Subsection (1) is deemed to have come into force on September 23, 2009. 149 Subparagraph 304(5)(b)(iv) of the French version of the Act is repealed. 150 (1) The portion of subsection 324(1) of the English version of the Act before paragraph (a) is replaced by the following: Compliance by unincorporated bodies 324 (1) If any amount is required to be paid or remitted or any other thing is required to be done by or under this Part or the regulations made under this Part by a person (in this section referred to as the “body”) that is not an 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 150-151 individual, corporation, partnership, trust or estate, it shall be the joint and several, or solidary, liability and responsibility of (2) Paragraphs 324(3)(a) to (c) of the English version of the Act are replaced by the following: (a) include any amount that the body was liable to pay or remit before the day the person became jointly and severally, or solidarily, liable; (b) include any amount that the body became liable to pay or remit after the day the person ceased to be jointly and severally, or solidarily, liable; or (c) be made more than two years after the day the person ceased to be jointly and severally, or solidarily, liable unless the person was grossly negligent in the carrying out of any duty or obligation imposed on the body by or under this Part or made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer made by the body. 151 (1) The portion of subsection 325(1) of the English version of the Act after paragraph (c) and before paragraph (d) is replaced by the following: the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Part an amount equal to the lesser of (2) Subsection 325(2) of the French version of the Act is replaced by the following: Cotisation (2) Le ministre peut, en tout temps, établir une cotisation à l’égard d’un cessionnaire pour tout montant payable en application du présent article. Dès lors, les articles 296 à 311 s’appliquent, compte tenu des adaptations de circonstance. (3) The portion of subsection 325(3) of the Act before paragraph (b) is replaced by the following: Discharge of liability (3) If a transferor and transferee have, by reason of subsection (1), become jointly and severally, or solidarily, liable in respect of part or all of the liability of the transferor under this Part, the following rules apply: (a) a payment by the transferee on account of the transferee’s liability shall, to the extent of the payment, discharge their liability; and 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 151-152 (4) Paragraph 325(3)(b) of the English version of the Act is replaced by the following: (b) a payment by the transferor on account of the transferor’s liability only discharges the transferee’s liability to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee was, by subsection (1), made jointly and severally, or solidarily, liable. 152 (1) Subsections 335(6) and (7) of the Act are replaced by the following: Proof of no appeal (6) An affidavit of an officer of the Canada Revenue Agency or the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and has knowledge of the practice of the Canada Revenue Agency or the Canada Border Services Agency, as the case may be, and that an examination of the records shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this Part and that, after careful examination and search of the records, the officer has been unable to find that a notice of objection or of appeal from the assessment, as the case may be, was received within the time allowed, is evidence of the statements contained in the affidavit. Presumption (7) If evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Canada Revenue Agency or the Canada Border Services Agency, as the case may be, it is not necessary to prove the signature of the person or that the person is such an officer, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn. (2) Subsection 335(10) of the Act is replaced by the following: Mailing or sending date (10) For the purposes of this Part, if any notice or demand that the Minister is required or authorized under this Part to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, shall be presumed to be the date of the notice or demand. (3) Subsection 335(10.1) of the French version of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 152-153 Date d’envoi d’un avis électronique (10.1) Pour l’application de la présente partie, tout avis ou autre communication concernant une personne qui est rendu disponible sous une forme électronique pouvant être lue ou perçue par une personne ou par un système informatique ou un dispositif semblable est présumé être envoyé à la personne, et être reçu par elle, à la date où un message électronique est envoyé — à l’adresse électronique la plus récente que la personne a fournie avant cette date au ministre pour l’application du présent paragraphe — pour l’informer qu’un avis ou une autre communication nécessitant son attention immédiate se trouve dans son compte électronique sécurisé. Un avis ou une autre communication est considéré comme étant rendu disponible s’il est affiché par le ministre sur le compte électronique sécurisé de la personne et si celle-ci a donné son autorisation pour que des avis ou d’autres communications soient rendus disponibles de cette manière et n’a pas retiré cette autorisation avant cette date selon les modalités fixées par le ministre. 153 (1) The definitions municipal transit service and transit authority in section 1 of Part VI of Schedule V to the Act are replaced by the following: municipal transit service means a public passenger transportation service (other than a charter service or a service that is part of a tour), or a right that exclusively entitles an individual to use the service, that is supplied by a transit authority; transit authority means an entity that meets the following conditions: (a) the entity is (i) a division, department or agency of a government, municipality or school authority, the primary purpose of which is to supply public passenger transportation services, or (ii) a non-profit organization that (A) receives funding from a government, municipality or school authority to support the supply of public passenger transportation services, or (B) is established and operated for the purpose of providing public passenger transportation services to individuals with a disability, and (b) all or substantially all of the supplies made by the entity are (i) supplies of public passenger transportation services provided within a particular municipality and its environs, or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 153-155 (ii) supplies of rights for individuals to use public passenger transportation services referred to in subparagraph (i); (2) Subsection (1) applies to (a) any supply made after July 22, 2016; and (b) any supply made on or before July 22, 2016 unless, on or before that day, an amount was charged, collected or remitted in respect of the supply as or on account of tax under Part IX of the Act. 154 Paragraphs 20(f) to (i) of Part VI of Schedule V to the French version of the Act are replaced by the following: f) la fourniture de services qui consistent à donner des renseignements en vertu de la Loi sur la protection des renseignements personnels, de la Loi sur l’accès à l’information ou d’une loi provinciale semblable; g) la fourniture de services de police ou d’incendie effectuée au profit d’un gouvernement ou d’une municipalité, ou d’une commission ou autre organisme établi par ceux-ci; h) la fourniture de services de collecte des ordures, y compris les matières recyclables; i) la fourniture d’un droit de laisser des ordures à un lieu destiné à les recevoir. 155 (1) Section 24 of Part VI of Schedule V to the Act is replaced by the following: 24 A supply (other than a supply made to a transit authority) of (a) a municipal transit service; (b) a right that exclusively entitles an individual to use a public passenger transportation service (other than a charter service or a service that is part of a tour) that is operated by a transit authority; (c) a public passenger transportation service designated by the Minister to be a municipal transit service; or (d) a right that exclusively entitles an individual to use a public passenger transportation service referred to in paragraph (c). 24.1 A supply made to a particular transit authority of intangible personal property that is a right evidenced by 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 155-157 a ticket, pass, voucher, or other similar physical or electronic media, if (a) the property exclusively entitles an individual to use a public passenger transportation service (other than a charter service or a service that is part of a tour) that is operated by another transit authority, or to use a public passenger transportation service designated by the Minister to be a municipal transit service under paragraph 24(c), and the particular transit authority acquires the property exclusively for the purpose of making a supply of the property; or (b) the property exclusively entitles an individual to use a public passenger transportation service (other than a charter service or a service that is part of a tour) that is operated by the particular transit authority and the particular transit authority previously supplied the property. (2) Subsection (1) applies to (a) any supply made after July 22, 2016; and (b) any supply made on or before July 22, 2016 unless, on or before that day, an amount was charged, collected or remitted in respect of the supply as or on account of tax under Part IX of the Act. 156 Section 26 of Part VI of Schedule V to the French version of the Act is replaced by the following: 26 Une fourniture, effectuée par un organisme à but non lucratif constitué principalement au profit d’une organisation syndicale, au profit d’un des organismes suivants ou une fourniture effectuée par un de ceux-ci au profit d’un tel organisme à but non lucratif : a) un syndicat, une association ou un organisme, visé aux alinéas 189a) à c) de la loi, qui est membre de l’organisme à but non lucratif ou y est affilié; b) un autre organisme à but non lucratif constitué principalement au profit d’une organisation syndicale. 157 Paragraph 3(b) of Schedule VII to the French version of the Act is replaced by the following: b) sont importés par une chambre de commerce, une association municipale, une association d’automobilistes ou un organisme semblable auxquels ils ont été fournis sans contrepartie, mis à part les frais d’expédition et de manutention. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 157-161 158 Sections 5 and 5.1 of Schedule VII to the French version of the Act are replaced by the following: 5 Les produits importés par une personne, qui lui sont fournis par une personne non-résidente sans contrepartie, mis à part les frais de manutention et d’expédition, et qui sont des pièces de rechange ou des biens de remplacement visés par une garantie. 5.1 Les produits importés dans l’unique but de remplir une obligation, prévue par une garantie, de réparer ou de remplacer les produits défectueux, à condition que les produits de remplacement soient fournis sans contrepartie, mis à part les frais d’expédition et de manutention, et exportés sans être consommés ou utilisés au Canada, sauf dans la mesure qu’il est raisonnable de considérer comme nécessaire ou accessoire à leur transport. 159 Paragraph 12(b) of Part I of Schedule X to the French version of the Act is replaced by the following: b) par une chambre de commerce, une association municipale, une association d’automobilistes ou un organisme semblable auxquels ils ont été fournis sans contrepartie, mis à part les frais de manutention et d’expédition. 160 Section 14 of Part I of Schedule X to the French version of the Act is replaced by the following: 14 Les biens transférés dans une province participante par une personne, qui lui sont fournis sans contrepartie, mis à part les frais de manutention et d’expédition, et qui sont des pièces de rechange ou des biens de remplacement visés par une garantie. 161 The Act is amended by replacing “Agency” with “Canada Revenue Agency” in the following provisions: (a) subsection 276(1); (b) subsection 291(1); (c) subparagraph 295(5)(d)(ix); (d) subsection 303(3); (e) subsection 332(1); and (f) subsections 335(1) to (5) and (14). 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 2 Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) Excise Tax Act Sections 162-165 162 The French version of the Act is amended by replacing “mandataire désigné” with “mandataire de la Couronne désigné” in the following provisions: (a) the definition mandataire désigné in subsection 123(1); (b) clause 200(4)(a)(i)(A); (c) subsection 209(2); and (d) paragraph 273(1.1)(a). SOR/91-37; SOR/2010-152, s. 3 Public Service Body Rebate (GST/ HST) Regulations 163 Section 2.1 of the French version of the Public Service Body Rebate (GST/HST) Regulations is amended by replacing “mandataire déterminé” with “mandataire de la Couronne désigné”. SOR/99-175 Specified Crown Agents (GST/HST) Regulations 164 The French version of the Specified Crown Agents (GST/HST) Regulations is amended by replacing “mandataire désigné” and “mandataires désignés” with “mandataire de la Couronne désigné” and “mandataires de la Couronne désignés”, respectively, in the following provisions: (a) the title; and (b) section 1 and the heading before it. PART 3 R.S., c. E-14 Excise Act 165 (1) The Excise Act is amended by adding the following after section 1.1: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 3 Excise Act Sections 165-166 Non-application — transformation of beer concentrate 1.2 (1) This Act does not apply to the transformation, by dilution or hydration, of beer concentrate into beer for consumption as a beverage on the premises where it is transformed if the transformation is done in a manner approved by the Minister. Meaning of beer (2) For the purposes of subsection (1), beer means a product that would be beer or malt liquor, as defined in section 4, if that definition were read without reference to its paragraph (b). (2) Subsection (1) is deemed to have come into force on June 5, 2017. 166 (1) The definition beer or malt liquor in section 4 of the Act is replaced by the following: beer or malt liquor means any product (other than wine, as defined in section 2 of the Excise Act, 2001) that is (a) a fermented liquor that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, or (b) beer concentrate; (bière ou liqueur de malt) (2) Section 4 of the Act is amended by adding the following in alphabetical order: beer concentrate means any product (a) that has an alcoholic strength in excess of 11.9% absolute ethyl alcohol by volume, (b) that is either (i) made by dehydrating a fermented liquor (other than wine, as defined in section 2 of the Excise Act, 2001) that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, or (ii) intended, before being offered for consumption as a beverage, to be transformed by dilution or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 3 Excise Act Sections 166-167 hydration into a fermented liquor (other than wine, as defined in section 2 of the Excise Act, 2001) that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, if the production of the product (A) involves in whole or in part brewing malt, grain or any saccharine matter, and (B) does not involve any process of distillation, (c) that is not intended or marketed for consumption as a beverage without further transformation on the premises where it is to be consumed as a beverage, and (d) for which the manner of the further transformation is approved by the Minister; (concentré de bière) (3) Subsections (1) and (2) are deemed to have come into force on June 5, 2017. 167 (1) Subsection 170(1) of the Act is replaced by the following: Duties — beer or malt liquor 170 (1) There shall be imposed, levied and collected on every hectolitre of beer or malt liquor, other than beer concentrate, the duties of excise set out in Part II of the schedule, which duties shall be paid to the collector as provided in this Act. Duties — beer concentrate (1.1) There shall be imposed, levied and collected, and paid to the collector as provided in this Act, on beer concentrate the duties of excise determined by the following formula: A×B×C where A is the quantity in litres of beer concentrate, B is the maximum quantity, determined in hectolitres, of any particular beer product that can be transformed in a manner approved by the Minister from a litre of that beer concentrate, and C is the rate of duties of excise set out in Part II of the schedule that is applicable in respect of a hectolitre of that particular beer product. (2) Subsection (1) is deemed to have come into force on June 5, 2017. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 3 Excise Act Sections 168-170 168 (1) Section 170.1 of the Act is amended by adding the following after subsection (1): Exclusion — beer concentrate (1.1) Despite subsection (1), the duties of excise set out in Part II.1 of the schedule do not apply to beer concentrate or beer transformed from beer concentrate and that beer concentrate or beer transformed from beer concentrate does not count toward the determination under subsection (1) of the first 75,000 hectolitres of beer and malt liquor brewed in Canada per year. (2) Subsection (1) is deemed to have come into force on June 5, 2017. PART 4 R.S., c. F-8; 1995, c. 17, s. 45(1) Federal-Provincial Fiscal Arrangements Act 169 Subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act is amended by adding the following in alphabetical order: coordinated cannabis taxation agreement means an agreement or arrangement entered into by the Minister on behalf of the Government of Canada under Part III.2, including any amendments or variations to the agreement or arrangement made in accordance with that Part; (accord de coordination de la taxation du cannabis) 170 The Act is amended by adding the following after section 8.7: PART III.2 Coordinated Cannabis Taxation Agreements Coordinated Cannabis Taxation Agreement 8.8 (1) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement or arrangement with the government of a province respecting cannabis taxation and, without restricting the generality of the foregoing, respecting 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 4 Federal-Provincial Fiscal Arrangements Act Section 170 (a) the collection, administration and enforcement of cannabis taxes in respect of the province under a single Act of Parliament; (b) the provision to the Government of Canada by the government of the province, or to the government of the province by the Government of Canada, of (i) information acquired in the administration and enforcement of Acts imposing cannabis taxes and Acts providing for rebates, refunds or reimbursements of cannabis taxes, paid or payable, or of amounts paid or payable as or on account of cannabis taxes, and (ii) other information related to cannabis legalization and distribution relevant to the system of cannabis taxation under a single Act of Parliament; (c) the accounting for taxes collected in accordance with the agreement; (d) the implementation of and transition to the system of cannabis taxation contemplated under the agreement; (e) payments, and the eligibility for payments, by the Government of Canada to the government of the province in respect of the revenues from the system of taxation contemplated under the agreement and to which the province is entitled under the agreement, the time when such payments will be made, and the remittance by the government of the province to the Government of Canada of any overpayments by the Government of Canada or the right of the Government of Canada to set off any overpayments against other amounts payable by the Government of Canada to the government of the province, whether under the agreement or any other agreement or arrangement or any Act of Parliament; (f) the payment by the Government of Canada and its agents and subservient bodies, and by the government of the province and its agents and subservient bodies, of the cannabis taxes payable under the system of cannabis taxation contemplated under the agreement and the accounting for the cannabis taxes so paid; (g) the compliance by the Government of Canada and its agents and subservient bodies, and by the government of the province and its agents and subservient bodies, with the Act of Parliament under which the system of cannabis taxation is administered and regulations made under that Act; and (h) other matters that relate to, and that are considered advisable for the purposes of implementing or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 4 Federal-Provincial Fiscal Arrangements Act Sections 170-171 administering, the system of cannabis taxation contemplated under the agreement. Amending agreements (2) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the government of a province amending or varying an agreement or arrangement with the province entered into under subsection (1) or this subsection. Payments 8.81 If there is a coordinated cannabis taxation agreement with the government of a province, the appropriate minister may pay to the province out of amounts received in a fiscal year under the Act of Parliament referred to in paragraph 8.8(1)(a) (a) amounts determined in accordance with the agreement as provided, and at such times as are specified, in the agreement; and (b) subject to the regulations, advances in respect of the amounts referred to in paragraph (a). Statutory authority to make payments 8.82 Despite any other Act, the payments paid under a coordinated cannabis taxation agreement under the authority of section 8.81 may be made without any other or further appropriation or authority. 171 (1) Paragraph 40(b) of the Act is replaced by the following: (b) respecting the calculation and payment to a province of advances on account of any amount that may become payable to the province under this Act, an administration agreement, a reciprocal taxation agreement, a sales tax harmonization agreement or a coordinated cannabis taxation agreement and the adjustment, by way of reduction or set off, of other payments to the province because of those advances; (2) Paragraph 40(d) of the Act is replaced by the following: (d) prescribing the time and manner of making any payment under this Act, an administration agreement, a sales tax harmonization agreement or a coordinated cannabis taxation agreement; 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures Sections 172-173 PART 5 Various Measures DIVISION 1 R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3 Bretton Woods and Related Agreements Act 172 Subsection 8(1) of the Bretton Woods and Related Agreements Act is replaced by the following: Financial assistance 8 (1) The Minister of Finance may provide financial assistance to the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation and the Multilateral Investment Guarantee Agency, directly or through any trust or body established by those institutions, by way of (a) direct payments, grants and loans; (b) the issuance of non-interest bearing, non-negotiable demand notes; (c) the purchase of shares on behalf of Her Majesty in right of Canada; (d) the issuance of guarantees; and (e) any other manner that the Minister considers appropriate. 173 (1) Subsection 8.1(1) of the Act is replaced by the following: Loans — trust or body 8.1 (1) The Minister of Finance may lend to the International Monetary Fund, at any rate of interest and on any other terms and conditions that the Governor in Council may approve, any sum or sums of money that may be required for funding any trust or body established by the Fund to assist in fulfilling the purposes of the Fund, at no time exceeding one billion Special Drawing Rights, or any other amount that may be fixed by the Governor in Council. Loans — purpose of Fund (1.1) The Minister of Finance may lend to the International Monetary Fund, at any rate of interest and on any 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 1 Bretton Woods and Related Agreements Act Sections 173-175 other terms and conditions that the Governor in Council may approve, any sum or sums of money that may be required to assist the Fund in fulfilling the purpose of safeguarding global economic and financial stability, at no time exceeding 13 billion Special Drawing Rights, or any other amount that may be fixed by the Governor in Council. (2) Subsection 8.1(3) of the Act is replaced by the following: Payment out of C.R.F. (3) The Minister of Finance may make payments out of the Consolidated Revenue Fund for the purposes mentioned in subsections (1), (1.1) and (2). Reassignment of resources (4) The Minister of Finance may direct the reassignment of funds subscribed or contributed by Canada to the International Monetary Fund, or owed to Canada by the Fund, for a similar purpose within the Fund, subject to any terms and conditions that the Minister considers appropriate. 174 The Act is amended by adding the following after section 8.1: Special Drawing Rights — financial transactions 8.11 For greater certainty, the Minister of Finance may carry out financial transactions in respect of Special Drawing Rights under section 17.2 of the Currency Act, in accordance with the policy established under subsection 17.1(1) of that Act. 175 Section 14 of the Act is replaced by the following: Tabling of communiqués 14 The Minister of Finance shall cause to be laid before each House of Parliament the communiqués issued by the International Monetary and Financial Committee of the International Monetary Fund and the Development Committee of the International Bank for Reconstruction and Development and the International Monetary Fund. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 2 Asian Infrastructure Investment Bank Agreement Act Section 176 DIVISION 2 Asian Infrastructure Investment Bank Agreement Act Enactment of Act 176 The Asian Infrastructure Investment Bank Agreement Act, whose text is as follows and whose schedule is set out in the schedule to this Act, is enacted: An Act to provide for the membership of Canada in the Asian Infrastructure Investment Bank Short title 1 This Act may be cited as the Asian Infrastructure Investment Bank Agreement Act. Definitions 2 The following definitions apply in this Act. Agreement means the Agreement respecting the Asian Infrastructure Investment Bank set out in the schedule. (accord) Bank means the Asian Infrastructure Investment Bank. (Banque) Approval of Agreement 3 The Agreement is approved. Acceptance of Agreement and implementation 4 The Governor in Council may authorize the acceptance of the Agreement on behalf of Canada and take any measure that is necessary in the opinion of the Governor in Council, including making appointments, orders and regulations, for carrying out the obligations or exercising the rights of Canada under the Agreement, and in particular for granting the privileges and immunities set out in the Agreement. Amendment to schedule 5 The Governor in Council may, by order, amend the schedule to take into account amendments to the Agreement that are consistent with the purpose and functions of the Bank. Depository 6 The Bank of Canada is the depository in Canada for the assets of the Bank. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 2 Asian Infrastructure Investment Bank Agreement Act Sections 176-178 Payments out of Consolidated Revenue Fund — Initial subscription 7 The Minister of Finance may make payments out of the Consolidated Revenue Fund to the Bank in respect of Canada’s initial subscription of shares in an aggregate amount not more than US$ 375,000,000, or any greater amount that is specified in an appropriation Act. DIVISION 3 International Development Financing Agreements Definition of Agreements 177 In this Division, Agreements means the following agreements, as amended from time to time: (a) the Administration Agreement for the Financial Support of the Private Sector Window of the Global Agriculture and Food Security Program (TFC-3), entered into between Her Majesty the Queen in right of Canada, as represented by the Minister of Finance, and the International Finance Corporation on March 14, 2011; (b) the Administration Agreement for the Financial Support of the Financial Mechanisms for Climate Change (FMCC) Facility — Concessional Finance (TFC-4), entered into between Her Majesty the Queen in right of Canada, as represented by the Minister of Finance, and the International Finance Corporation on March 8, 2011; and (c) the Administration Agreement for the Financial Support of the Financial Mechanisms for Climate (FMCC) Change Facility — Technical Assistance (TF 071589) entered into between Her Majesty the Queen in right of Canada, as represented by the Minister of Finance, and the International Finance Corporation on March 8, 2011. Powers, duties and functions 178 (1) The Minister of Foreign Affairs is responsible for the Agreements. Share — acquisition (2) For the purposes of section 90 of the Financial Administration Act, shares of a corporation that, on acquisition, would be held by, on behalf of or in trust for the Crown may be acquired in the course of the administration of the Agreements. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 3 International Development Financing Agreements Sections 179-180 Coming into force 179 This Division comes into force on a day to be fixed by order of the Governor in Council. DIVISION 4 R.S., c. C-3 Canada Deposit Insurance Corporation Act Amendments to the Act 180 (1) Subsection 39.15(4) of the English version of the Canada Deposit Insurance Corporation Act is replaced by the following: Rights subject to set-off or compensation (4) A federal member institution in respect of which an order is made under subsection 39.13(1) may not enforce against a person a right to receive an amount against which the person, but for paragraph (1)(d), would have a right of set-off or compensation. (2) Paragraph 39.15(7)(c) of the Act is replaced by the following: (c) the exercise of remedies for a failure to satisfy an obligation under or in connection with the contract, including the payment of an amount payable — or the delivery of property deliverable — under or in connection with the contract; (3) Subsection 39.15(7) of the Act is amended by striking out “or” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) any dealing with financial collateral (i) to satisfy an amount payable — or the delivery of property deliverable — under or in connection with the contract, (ii) for the purpose of calculating an amount payable under or in connection with the contract by way of netting, setting off or compensation of the financial collateral or application of the proceeds or value of the financial collateral, or (iii) as a remedy for a failure described in paragraph (c); or (f) any dealing with financial collateral, other than a dealing set out in paragraph (e). 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 4 Canada Deposit Insurance Corporation Act Amendments to the Act Section 180 (4) Subsection 39.15(7.01) of the Act is replaced by the following: Interpretation (7.01) For the purposes of paragraphs (7)(e) and (f), dealings with financial collateral include (a) the sale or foreclosure or, in Quebec, the surrender of financial collateral; and (b) the netting, setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral. (5) The portion of subsection 39.15(7.1) of the Act before paragraph (a) is replaced by the following: Stay — eligible financial contracts (7.1) If an order is made under subsection 39.13(1), the actions referred to in paragraphs (7)(a), (b) and (f) are not to be taken by reason only of (6) Subsections 39.15(7.101) and (7.102) of the Act are replaced by the following: Stay terminated — notice (7.101) If the Corporation considers that all or substantially all of the federal member institution’s assets will be transferred to a third party and that an eligible financial contract of that institution will not be assigned to a third party, it may give notice to that effect to the parties to that contract, in which case paragraphs (7.1)(a) and (c) cease to apply in respect of that contract at the date and time the notice is issued. Stay terminated (7.102) Paragraph (7.1)(a) and, if the order made under subsection 39.13(1) directs the incorporation of a bridge institution, paragraph (7.1)(c) cease to apply to an eligible financial contract at 5:00 p.m. at the location of the Corporation’s head office on the second business day after the day on which the order is made under subsection 39.13(1), unless the Corporation has undertaken, before that time, to assign the contract to a bridge institution. Interpretation (7.103) For greater certainty, paragraph (7.1)(a) and, if applicable, paragraph (7.1)(c) cease to apply in respect of an eligible financial contract to which both subsection (7.101) and (7.102) apply on the earlier of the date and time that a notice is issued under subsection (7.101) and the date and time set out in subsection (7.102). 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 4 Canada Deposit Insurance Corporation Act Amendments to the Act Section 180 Insolvency or deteriorated financial condition (7.104) Despite subsections (7.101) and (7.102), an action set out in paragraph (7)(a), (b) or (f) may only be taken by reason of the insolvency or deteriorated financial condition described in paragraph (7.1)(a) if that insolvency or deteriorated financial condition exists on the date and time paragraph (7.1)(a) ceases to apply. Evidence (7.105) Nothing in paragraphs (7.1)(b) to (e) prevents a person from relying on the facts that led to the making of an order under subsection 39.13(1) as evidence of the insolvency or deteriorated financial condition described in paragraph (7.1)(a). (7) Paragraphs 39.15(7.11)(a) and (b) of the Act are replaced by the following: (a) has the effect of providing for or permitting anything that, in substance, is contrary to subsection (7.1); or (b) provides, in substance, that, by reason of the occurrence of any circumstance described in paragraphs (7.1)(a) to (e), the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have. (8) Subsection 39.15(7.12) of the Act is replaced by the following: Exception (7.12) Subsection (7.1) does not apply in respect of an eligible financial contract between the federal member institution and a clearing house unless the Corporation has given the undertaking referred to in subsection (3.3) in respect of the institution. (9) Paragraph 39.15(7.21)(d) of the Act is replaced by the following: (d) its creditworthiness, taking into account any credit support or guarantee in respect of its obligations under the assigned contracts, is at least as good as the federal member institution’s creditworthiness was immediately before the order was made under subsection 39.13(1), taking into account any credit support or guarantee in respect of the federal member institution’s obligations under those contracts. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 4 Canada Deposit Insurance Corporation Act Amendments to the Act Sections 180-183 (10) The definition business day in subsection 39.15(9) of the Act is replaced by the following: business day means a day, other than a Saturday or a holiday at the location of the head office of the federal member institution. (jour ouvrable) 181 (1) The portion of subsection 39.18(1) of the Act before paragraph (a) is replaced by the following: Termination 39.18 (1) Subject to subsection (2), sections 39.14 and 39.15 cease to apply in respect of a federal member institution (2) The portion of subsection 39.18(2) of the Act before paragraph (a) is replaced by the following: Exceptions (2) If a notice referred to in paragraph (1)(a) has been published but an order described in paragraph (1)(b) has not been made, (3) Paragraph 39.18(2)(b) of the Act is replaced by the following: (b) subsections 39.15(7.1) to (7.3) continue to apply. 1996, c. 6, Sch. Consequential Amendments to the Payment Clearing and Settlement Act 182 Paragraph 8(3.1)(a) of the Payment Clearing and Settlement Act is replaced by the following: (a) no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.1), (7.104), (7.11), (7.12) or (7.2) or section 39.152 of that Act; and 183 Subsection 13(1.2) of the Act is replaced by the following: Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act (1.2) Despite subsections (1) and (1.1), no action may be taken in respect of an eligible financial contract, as 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 4 Canada Deposit Insurance Corporation Act Consequential Amendments to the Payment Clearing and Settlement Act Sections 183-186 defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.1), (7.104), (7.11), (7.12) or (7.2) or section 39.152 of that Act. 184 Subsection 13.1(1.1) of the Act is replaced by the following: Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act (1.1) Despite subsection (1), no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.1), (7.104), (7.11), (7.12) or (7.2) or section 39.152 of that Act. DIVISION 5 R.S., c. B-2 Bank of Canada Act Amendment to the Act 185 Paragraph 18(h) of the Bank of Canada Act is replaced by the following: (h) make loans or advances for periods of not more than six months to any member of the Canadian Payments Association on taking (i) security in any property, including in any real property or immovable situated in Canada, or (ii) an assignment or transfer of the member’s right, title or interest in any real property or immovable situated in Canada, including any mortgage or hypothec on that real property or immovable; R.S., c. C-3 Related Amendments to the Canada Deposit Insurance Corporation Act 186 (1) The portion of subsection 39.15(6) of the Canada Deposit Insurance Corporation Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 5 Bank of Canada Act Related Amendments to the Canada Deposit Insurance Corporation Act Sections 186-187 Security agreements, assignments and transfers (6) Paragraphs (1)(b) to (e) and subsection (2) do not apply in respect of a remedy under, or a stipulation of, a security agreement creating a security interest in assets of a federal member institution or an agreement assigning or transferring the institution’s right, title or interest in any real property or immovable situated in Canada, including any mortgage or hypothec on that real property or immovable, if (2) Paragraph 39.15(6)(a) of the English version of the Act is replaced by the following: (a) an obligation secured by the agreement is to the Bank of Canada or the Corporation; or (3) The portion of paragraph 39.15(6)(b) of the English version of the Act before subparagraph (i) is replaced by the following: (b) the Superintendent, on the application of the federal member institution, exempted the agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and the Corporation does not undertake (4) Subparagraphs 39.15(6)(b)(i) and (ii) of the Act are replaced by the following: (i) to ensure that the obligations secured by the security interest or the assignment or transfer will be assumed by a bridge institution or a third party, or (ii) to provide the federal member institution with the financial assistance that it needs to discharge the obligations secured by the security interest or the assignment or transfer as they become due. Coordinating Amendment 2014, c. 39, s. 266 187 On the first day on which both section 266 of the Economic Action Plan 2014 Act, No. 2 and section 185 of this Act are in force, paragraph 18(h) of the Bank of Canada Act is replaced by the following: (h) subject to section 19.1, make loans or advances for periods of not more than six months to any member of the Canadian Payments Association on taking (i) security in any property, including in any real property or immovable situated in Canada, or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 5 Bank of Canada Act Coordinating Amendment Sections 187-189 (ii) an assignment or transfer of the member’s right, title or interest in any real property or immovable situated in Canada, including any mortgage or hypothec on that real property or immovable; DIVISION 6 1996, c. 6, Sch. Payment Clearing and Settlement Act 188 The definition participant in section 2 of the Payment Clearing and Settlement Act is replaced by the following: participant means a party to an arrangement that establishes a clearing and settlement system; (établissement participant) 189 (1) Subsection 6(1) of the Act is replaced by the following: Directive to clearing house 6 (1) The Governor of the Bank may issue a directive in writing to a clearing house of a designated clearing and settlement system that requires the clearing house, within any period that may be specified in the directive, to take — and to have the participants take — any corrective measures that the Governor considers necessary, if the Governor is of the opinion that systemic risk or payments system risk could be inadequately controlled because of (a) the design or operation of the clearing and settlement system; (b) the ownership or control of the clearing and settlement system; (c) aspects of organizational structure or corporate governance of the clearing house that are related to risk management; (d) the management or operation of the clearing house; or (e) actual or anticipated acts or omissions of the clearing house or of a participant. (2) The portion of subsection 6(2) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 6 Payment Clearing and Settlement Act Sections 189-190 Directive to participants (2) The Governor of the Bank may issue a directive in writing to a participant that requires the participant, within any period that may be specified in the directive, to take any corrective measures that the Governor considers necessary if the Governor has formed an opinion referred to in subsection (1) that systemic risk or payments system risk could be inadequately controlled and (3) Paragraph 6(2)(c) of the Act is replaced by the following: (c) in the opinion of the Governor, (i) the risk could be inadequately controlled because of an actual or anticipated act or omission by a participant, and (ii) the actual or anticipated act or omission is not subject to the by-laws, agreements, rules, procedures, guides or other documentation governing the designated clearing and settlement system. (4) Section 6 of the Act is amended by adding the following after subsection (2): Factors to be taken into account (2.1) In determining the corrective measures that are necessary, the Governor of the Bank shall take into account the nature, severity and imminence of the risk and any other risk-related factors that the Governor considers appropriate. 190 The Act is amended by adding the following after section 6: Representations 6.1 (1) Before issuing a directive to a clearing house or a participant, the Governor of the Bank shall provide the clearing house or participant, as the case may be, with an opportunity to make representations. Exception (2) If, in the opinion of the Governor of the Bank, providing the clearing house or participant with an opportunity to make representations would undermine the effectiveness of the directive, the Governor of the Bank may, without providing that opportunity, issue a directive under section 6 to the clearing house or participant that has effect for a period of not more than 15 days and may extend the directive once, in writing, for a further period of not more than 15 days. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 6 Payment Clearing and Settlement Act Sections 191-192 191 Section 9 of the Act and the heading before it are replaced by the following: Notice and Approvals Significant change 9 (1) For the purposes of this section, a change is significant if it could reasonably be expected to have a material impact on the efficiency, safety or soundness of the designated clearing and settlement system. Notice required (2) A clearing house shall provide the Bank with reasonable notice before making (a) any significant change in relation to the designated clearing and settlement system; (b) any change in relation to the design or operation of the system or to the by-laws, agreements, rules, procedures, guides or other documentation governing the system; or (c) any change to the constating documents and bylaws of the clearing house. Approval required (3) If the Governor of the Bank is of the opinion that a significant change that the clearing house intends to make in relation to the designated clearing and settlement system would have an effect on the control of risk for the system, the clearing house, the participants or the financial system in Canada, that change shall not take effect unless it is approved in writing by the Governor, subject to any conditions that the Governor considers appropriate. Notice required of other changes (4) A clearing house shall, without delay after it makes any change in relation to the designated clearing and settlement system, other than a change referred to in subsection (2), provide the Bank with written notice of the change, including any change affecting (a) the composition of a board of directors of the clearing house due to resignation or otherwise; or (b) the appointed auditor of the clearing house. 192 Section 13.2 of the Act is amended by striking out “and” at the end of paragraph (e) and by adding the following after that paragraph: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 6 Payment Clearing and Settlement Act Sections 192-194 (e.1) the exercise of the Bank’s powers and the performance of its duties and functions; and 193 Subsection 22.1(2) of the Act is replaced by the following: Prohibition or conditions (2) The Governor of the Bank may prohibit the authorized foreign bank or foreign institution from being a participant in the designated clearing and settlement system or may require it to comply with any conditions with respect to its participation that the Governor considers necessary if the Governor is of the opinion, on the basis of the information provided under subsection (1) or of any other information that the Governor considers relevant, that its participation could pose a systemic risk or a payments system risk or could pose an unacceptable risk to the Bank in guaranteeing settlement of the authorized foreign bank’s or foreign institution’s obligations. DIVISION 7 R.S., c. N-26 Northern Pipeline Act 194 Section 29 of the Northern Pipeline Act is replaced by the following: Costs of Agency to be recovered 29 (1) Every certificate of public convenience and necessity declared to be issued by subsection 21(1) to a company is subject to the condition that the company shall annually pay to the Receiver General an amount equal to the costs that are attributable to the Agency’s responsibilities under this Act and that are incurred by the Agency in the previous fiscal year with respect to that company. Invoicing (2) The Agency shall, no later than November 15 in each year, issue to each company an invoice for the amount payable under subsection (1). Payment period (3) Any amount that is payable under subsection (1) shall be paid no later than the 30th day after the date of the invoice. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 7 Northern Pipeline Act Sections 194-195 Interest (4) If a company fails to pay any amount invoiced within the required period, the company shall pay interest on the outstanding amount at a rate of 1.5% per month, compounded monthly, beginning on the 31st day after the date of the invoice. DIVISION 8 R.S., c. L-2 Canada Labour Code Amendments to the Act 195 (1) The portion of subsection 170(1) of the Canada Labour Code before paragraph (a) is replaced by the following: Modified work schedule — collective agreement 170 (1) An employer may, in respect of one or more employees subject to a collective agreement, establish, modify or cancel a work schedule under which the hours exceed the standard hours of work set out in paragraph 169(1)(a) if (2) The portion of subsection 170(2) of the Act before paragraph (a) is replaced by the following: Modified work schedule (2) Subject to subsection (3), an employer may, in respect of one or more employees not subject to a collective agreement, establish, modify or cancel a work schedule under which the hours exceed the standard hours of work set out in paragraph 169(1)(a) if (3) Paragraph 170(2)(b) of the Act is replaced by the following: (b) the schedule, or its modification or cancellation, has been approved (i) in the case of one employee’s schedule, in writing by that employee, or (ii) in the case of more than one employee’s schedule, by at least 70% of the affected employees. (4) Section 170 of the Act is amended by adding the following after subsection (3): 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 195-197 Exception (4) Subsection (3) does not apply to the establishment, modification or cancellation of one employee’s work schedule that results from a request made under subsection 177.1(1). 196 (1) The portion of subsection 172(1) of the Act before paragraph (a) is replaced by the following: Maximum hours of work — collective agreement 172 (1) An employer may, in respect of one or more employees subject to a collective agreement, establish, modify or cancel a work schedule under which the hours exceed the maximum set out in section 171 or in regulations made under section 175 if (2) The portion of subsection 172(2) of the Act before paragraph (a) is replaced by the following: Maximum hours of work (2) Subject to subsection (3), an employer may, in respect of one or more employees not subject to a collective agreement, establish, modify or cancel a work schedule under which the hours exceed the maximum set out in section 171 or in regulations made under section 175 if (3) Paragraph 172(2)(b) of the Act is replaced by the following: (b) the schedule, or its modification or cancellation, has been approved (i) in the case of one employee’s schedule, in writing by that employee, or (ii) in the case of more than one employee’s schedule, by at least 70% of the affected employees. (4) Section 172 of the Act is amended by adding the following after subsection (3): Exception (4) Subsection (3) does not apply to the establishment, modification or cancellation of one employee’s work schedule following a request made under subsection 177.1(1). 197 Section 174 of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Section 197 Shift changes 173.1 (1) If an employer changes a period or shift during which an employee is due to work or adds another work period or shift to the employee’s schedule, the employer shall give the employee written notice of the change or addition at least 24 hours before (a) in the case of a change, the employee’s original work period or shift is to begin or, if the work period or shift that results from the change is to begin earlier than the original work period or shift, before the period or shift that results from the change is to begin; and (b) in the case of an addition, the work period or shift that was added is to begin. Exceptions — threat (2) Subsection (1) does not apply if the change to or addition of a work period or shift is necessary to deal with a situation that the employer could not have reasonably foreseen and that presents or could reasonably be expected to present an imminent or serious (a) threat to the life, health or safety of any person; (b) threat of damage to or loss of property; or (c) threat of serious interference with the ordinary working of the employer’s industrial establishment. Exception — subsection 177.1(1) (3) Subsection (1) does not apply to a change to or addition of a work period or shift following a request made under subsection 177.1(1). Overtime pay or time off 174 (1) Subject to any regulations made under section 175, when an employee is required or permitted to work overtime, they are entitled to (a) be paid for the overtime at a rate of wages not less than one and one-half times their regular rate of wages; or (b) be granted not less than one and one-half hours of time off with pay for each hour of overtime worked, subject to subsections (2) to (5). 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Section 197 Conditions (2) An employee is entitled to time off for overtime worked only if, (a) at their request, they and the employer enter into an agreement in writing providing for the taking of time off, subject to paragraph (b) and subsections (3) to (5), on a date or dates agreed on by them and the employer; and (b) the time off is taken within a period of three months after the end of the pay period in which the overtime was worked, or within any longer period set out in (i) if the employee is subject to a collective agreement, the collective agreement, or (ii) if the employee is not subject to a collective agreement, the agreement referred to in paragraph (a) or any other agreement in writing entered into by them and the employer. Maximum period (3) The longer period referred to in paragraph (2)(b) shall not be more than 12 months for an employee who is not subject to a collective agreement. Time off not taken within specified period (4) If the employee does not take all or part of the time off within the applicable period referred to in paragraph (2)(b), the employer shall, within 30 days after the day on which that period ends, pay the employee’s wages for the overtime for which the time off was not taken, at a rate of wages not less than one and one-half times the employee’s regular rate of wages on the day on which they worked the overtime. Termination of employment (5) If an employee ceases to be employed before the employee takes all or part of the time off referred to in paragraph (1)(b), the employer shall, within 30 days after the day on which the employee ceases to be employed, pay the employee’s wages for the overtime for which the time off was not taken, at a rate of wages not less than one and one-half times the employee’s regular rate of wages on the day on which the employee worked the overtime. Application of section 189 (6) Section 189 applies for the purposes of this section. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 197-199 Right to refuse 174.1 (1) Subject to subsections (2) and (3), an employee may refuse to work the overtime requested by the employer in order to fulfil any family responsibility set out in subsection 206.6(1). Reasonable steps (2) An employee may refuse to work overtime only if (a) they have taken reasonable steps to carry out their family responsibility by other means, so as to enable them to work overtime; and (b) even though the steps referred to in paragraph (a) have been taken, they are still required to carry out that responsibility during the period of the overtime. Exceptions (3) An employee is not to refuse to work overtime if it is necessary for them to work overtime to deal with a situation that the employer could not have reasonably foreseen and that presents or could reasonably be expected to present an imminent or serious (a) threat to the life, health or safety of any person; (b) threat of damage to or loss of property; or (c) threat of serious interference with the ordinary working of the employer’s industrial establishment. Prohibition (4) An employer shall not dismiss, suspend, lay off, demote or discipline an employee because the employee has refused to work overtime under subsection (1) or take such a refusal into account in any decision to promote or train the employee. 198 Subsection 175(2) of the Act is repealed. 199 The Act is amended by adding the following after section 177: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Section 199 DIVISION I.1 Flexible Work Arrangements Right to request 177.1 (1) An employee who has completed six consecutive months of continuous employment with an employer may request from the employer a change to the following terms and conditions of employment: (a) the number of hours that the employee is required to work; (b) the employee’s work schedule; (c) the employee’s location of work; and (d) any terms and conditions that apply to the employee and that are prescribed by regulation. Contents of request (2) The request shall be made in writing and shall include (a) the employee’s name; (b) the date on which the request is made; (c) a description of the change to the terms and conditions of employment that is requested; (d) the date on which the change would take effect and, if the change is intended to be temporary, the date on which the change would cease to have effect; (e) an explanation of the effect that, in the employee’s opinion, the requested change would have on the employer and the manner in which, in the employee’s opinion, the employer could manage that effect; and (f) any information that may be prescribed by regulation. Employer’s decision (3) An employer to whom a request is made shall make one of the following decisions: (a) grant the request; (b) offer to grant the request in part or to make an alternative change to the terms and conditions of employment; or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Section 199 (c) refuse the request on one or more of the following grounds: (i) the requested change would result in additional costs that would be a burden on the employer, (ii) the requested change would have a detrimental impact on the quality or quantity of work within the employer’s industrial establishment, on the ability to meet customer demand or on any other aspect of performance within that industrial establishment, (iii) the employer is unable to reorganize work among existing employees or to recruit additional employees in order to manage the requested change, (iv) there would be insufficient work available for the employee if the requested change was granted, and (v) any ground prescribed by regulation. Notice of decision (4) The employer shall, as soon as possible and not later than 30 days after receiving the request, give written notice to the employee of their decision. The notice in respect of a decision made under paragraph (3)(b) or (c) shall include written reasons for refusing the requested change or for not granting a part of it. Power to change terms and conditions (5) The employer may, for the purpose of granting a request made by an employee under paragraph (3)(a) or for the purpose of giving effect to a written agreement with the employee following an offer made under paragraph (3)(b), change the employee’s terms and conditions of employment. However, when there is any other provision under this Part or any provision of any regulations made under this Part that authorizes the employer to make a change to those terms and conditions, they shall make the change under that provision. Collective agreement (6) An employer shall not change, under subsection (5), a term or condition of employment contained in a collective agreement unless the change is agreed to in writing by the employer and the trade union. Prohibition (7) An employer shall not dismiss, suspend, lay off, demote or discipline an employee because the employee has made a request under subsection (1) or take such a 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 199-202 request into account in any decision to promote or train the employee. Regulations (8) The Governor in Council may make regulations limiting the number of requests that an employee may make in any year and specifying the information that shall be included in a notice under subsection (4) or an agreement referred to in subsection (5). For greater certainty (9) For greater certainty, nothing in this section limits an employer’s duty to accommodate an employee under any other Act of Parliament. 200 The Act is amended by adding the following after section 184: Entitlement to vacation in one or more periods 184.1 A vacation granted to an employee under this Division is to be taken only in one period or, if the employee makes a request in writing and the employer approves it in writing, in more than one period. 201 Paragraph 185(b) of the Act is replaced by the following: (b) shall, at any time that is prescribed by the regulations, pay to the employee (i) if the vacation is taken in one period, the vacation pay to which the employee is entitled in respect of that vacation, or (ii) if the vacation is taken in more than one period, for each period, the proportion of the vacation pay that the vacation taken is of the annual vacation to which the employee is entitled. 202 The Act is amended by adding the following after section 187: Interruption 187.1 (1) An employee may interrupt a vacation granted to them under this Division in order to permit them to take a leave of absence under Division VII or VIII or section 247.5 or to be absent due to a reason referred to in subsection 239(1) or 239.1(1). Application of section 209.1 (2) If an employee interrupts a vacation to take leave under any of sections 205.1, 206, 206.1 and 206.3 to 206.8 and resumes the vacation immediately at the end of that 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Section 202 leave, section 209.1 applies to them as if they did not resume the vacation before returning to work. Application of subsection 239(1.1) (3) If an employee interrupts a vacation to be absent due to a reason referred to in subsection 239(1) and resumes the vacation immediately at the end of that leave, subsection 239(1.1) applies to them as if they did not resume the vacation before returning to work. Application of subsections 239.1(3) and (4) (4) If an employee interrupts a vacation to be absent due to a reason referred to in subsection 239.1(1) and resumes the vacation immediately at the end of that leave, subsections 239.1(3) and (4) apply to them as if they did not resume the vacation before returning to work. Application of sections 247.93 to 247.95 (5) If an employee interrupts a vacation to take leave under section 247.5 and resumes the vacation immediately at the end of that leave, sections 247.93 to 247.95 apply to that employee as if they did not resume the vacation before returning to work. Notice to employer — interruption of vacation (6) An employee who intends to interrupt their vacation shall provide the employer with written notice of the interruption before or as soon as possible after the interruption begins. Notice to employer — resumption of vacation (7) An employee who interrupts their vacation and who intends to resume it immediately after the interruption ends shall provide the employer with written notice of the day on which they resume their vacation before or as soon as possible after that day. Postponement 187.2 (1) Despite paragraph 185(a) or any term or condition of employment, an employee may postpone their vacation until after the day on which a leave of absence taken under Division VII or VIII or section 247.5, or an absence due to a reason referred to in subsection 239(1) or 239.1(1), ends. Notice to employer (2) An employee who intends to postpone their vacation shall, as soon as possible, provide the employer with prior written notice of the postponement. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 203-204 203 (1) Subsections 195(1) and (2) of the Act are replaced by the following: Substitution — employees subject to collective agreement 195 (1) An employer may, in respect of one or more employees subject to a collective agreement, substitute any other day for a general holiday if the substitution is agreed to in writing by the employer and the trade union, and the substituted day shall, for that employee or those employees, be deemed to be a general holiday for the purposes of this Part. Substitution — employees not subject to collective agreement (2) Subject to subsection (3), an employer may, in respect of one or more employees not subject to a collective agreement, substitute any other day for a general holiday and the substituted day shall, for that employee or those employees, be deemed to be a general holiday for the purposes of this Part, if the substitution has been approved (a) in the case of a substitution that affects one employee, by that employee in writing; or (b) in the case of a substitution that affects more than one employee, by at least 70% of the affected employees. (2) Subsection 195(3) of the English version of the Act is replaced by the following: Posting of notice (3) If any other day is to be substituted for a general holiday under subsection (2), the employer shall post a notice of the substitution in readily accessible places where it is likely to be seen by the affected employees, for at least 30 days before the substitution takes effect. (3) Section 195 of the Act is amended by adding the following after subsection (3): Exception (4) Subsection (3) does not apply to a substitution in respect of one employee following a request made under subsection 177.1(1). 204 Paragraph 203(2)(b) of the Act is replaced by the following: (b) modifying, to the extent that the Governor in Council considers necessary, the provisions of Division I.1, IV, V, VII, VIII, X, XI, XIII or XIV so that, as far as practicable, employees engaged in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 204-206 multi-employer employment will be entitled to the same rights and benefits under that Division as employees employed by one employer. 205 The heading of Division VII of Part III of the Act is replaced by the following: Reassignment, Maternity Leave, Parental Leave, Compassionate Care Leave, Leave Related to Critical Illness, Leave Related to Death or Disappearance, Family Responsibility Leave, Leave for Victims of Family Violence and Leave for Traditional Aboriginal Practices 206 The Act is amended by adding the following after section 206.5: Family Responsibility Leave Leave — three days 206.6 (1) Every employee who has completed three consecutive months of continuous employment with an employer is entitled to and shall be granted a leave of absence from employment of up to three days in every calendar year, to carry out the employee’s responsibilities related to (a) the health or care of any of their family members; or (b) the education of any of their family members who are less than 18 years of age. Division of leave (2) The leave of absence may be taken in one or more periods. The employer may require that each period of leave be of not less than one day’s duration. Documentation (3) The employer may, in writing and no later than 15 days after an employee’s return to work, request the employee to provide documentation to support the reasons for the leave. The employee shall provide that documentation only if it is reasonably practicable for them to obtain and provide it. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Section 206 Family member (4) The Governor in Council may make regulations specifying the persons who are the employee’s family members for the purposes of subsection (1). Leave for Victims of Family Violence Definitions 206.7 (1) The definitions child and parent set out in subsection 206.5(1) apply in subsection (2). Leave — 10 days (2) Every employee who is a victim of family violence or who is the parent of a child who is a victim of family violence is entitled to and shall be granted a leave of absence from employment of up to 10 days in every calendar year, in order to enable the employee, in respect of such violence, (a) to seek medical attention for themselves or their child in respect of a physical or psychological injury or disability; (b) to obtain services from an organization which provides services to victims of family violence; (c) to obtain psychological or other professional counselling; (d) to relocate temporarily or permanently; (e) to seek legal or law enforcement assistance or to prepare for or participate in any civil or criminal legal proceeding; or (f) to take any measures prescribed by regulation. Exception (3) An employee is not entitled to a leave of absence with respect to any act of family violence if the employee is charged with an offence related to that act or if it is probable, considering the circumstances, that the employee committed that act. Division of leave (4) The leave of absence may be taken in one or more periods. The employer may require that each period of leave be of not less than one day’s duration. Documentation (5) The employer may, in writing and no later than 15 days after an employee’s return to work, request the employee to provide documentation to support the reasons 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 206-207 for the leave. The employee shall provide that documentation only if it is reasonably practicable for them to obtain and provide it. Leave for Traditional Aboriginal Practices Leave — five days 206.8 (1) Every employee who is an Aboriginal person and who has completed three consecutive months of continuous employment with an employer is entitled to and shall be granted a leave of absence from employment of up to five days in every calendar year, in order to enable the employee to engage in traditional Aboriginal practices, including (a) hunting; (b) fishing; (c) harvesting; and (d) any practice prescribed by regulation. Division of leave (2) The leave of absence may be taken in one or more periods. The employer may require that each period of leave be not less than one day’s duration. Documentation (3) The employer may, in writing and no later than 15 days after an employee’s return to work, request the employee to provide documentation that shows the employee as an Aboriginal person. The employee shall provide that documentation only if it is reasonably practicable for him or her to obtain and provide it. Definition of Aboriginal (4) For the purposes of this section, Aboriginal means Indian, Inuit or Métis. 207 (1) Subsection 207.3(1) of the Act is replaced by the following: Notice to employer of leave 207.3 (1) Every employee who takes a leave of absence from employment under any of sections 206.3 to 206.8 shall, as soon as possible, provide the employer with a notice in writing of the reasons for the leave, and the length of the leave that they intend to take. (2) Subsection 207.3(2) of the English version of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 207-210 Notice of change in length of leave (2) Every employee who is on a leave of absence from employment under any of sections 206.3 to 206.8 shall, as soon as possible, provide the employer with a notice in writing of any change in the length of the leave that they intend to take. 208 Subsection 209.3(2) of the Act is replaced by the following: Prohibition (2) The prohibitions set out in subsection (1) also apply in respect of an employee who has taken a leave of absence under any of sections 206.3 to 206.8. 209 (1) Paragraph 209.4(a) of the Act is replaced by the following: (a) specifying the absences from employment that are considered not to have interrupted continuous employment referred to in any of sections 206, 206.1, 206.4 to 206.6 and 206.8; (2) Paragraph 209.4(g) of the Act is replaced by the following: (g) prescribing shorter periods of continuous employment for the purposes of subsections 206.4(2), 206.5(2) and (3), 206.6(1) and 206.8(1); (3) Section 209.4 of the Act is amended by adding the following after paragraph (h): (h.1) defining family violence for the purposes of section 206.7; (h.2) prescribing cases, other than those set out in subsection 206.7(3), in which an employee is not entitled to a leave of absence and cases in which, despite that subsection, an employee is entitled to a leave of absence under subsection 206.7(2); (h.3) prescribing documentation that the employer may request under any of subsections 206.6(3), 206.7(5) and 206.8(3); 210 Subsections 210(1) and (2) of the Act are replaced by the following: Employee entitled 210 (1) Every employee is entitled to and shall be granted, in the event of the death of a member of their immediate family, a leave of absence from employment of up to five days that may be taken during the period that begins on the day on which the death occurs and ends six weeks after the latest of the days on which any funeral, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Amendments to the Act Sections 210-214 burial or memorial service of that immediate family member occurs. Extension (1.1) At the request of the employee, the employer may extend, in writing, the period during which the leave of absence from employment may be taken. Division of leave (1.2) The leave of absence may be taken in one or two periods. The employer may require that any period of leave be of not less than one day’s duration. Notice to employer (1.3) Every employee who takes the leave of absence shall, as soon as possible, provide the employer with written notice of the beginning of any period of leave of absence and of the length of that leave. Bereavement leave with pay (2) If the employee has completed three consecutive months of continuous employment with the employer, the employee is entitled to the first three days of the leave with pay at their regular rate of wages for their normal hours of work, and such pay shall for all purposes be considered to be wages. 211 Section 247.9 of the Act is repealed. 212 Paragraph 247.97(h) of the Act is replaced by the following: (h) specifying the circumstances in which section 247.7, subsection 247.8(1) or subsection 247.91(2) does not apply; 213 Section 251.01 of the Act is amended by adding the following after subsection (4): Limitation — section 177.1 (4.1) With respect to a request made under subsection 177.1(1), an employee may make a complaint under subsection (1) only on the grounds that the employer has refused the request on any ground other than those referred to in subparagraphs 177.1(3)(c)(i) to (v) or has failed to comply with any requirement set out in section 177.1(4). Transitional Provision Subsection 175(2) of Canada Labour Code 214 Subsection 175(2) of the Canada Labour Code continues to apply in respect of the making 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 8 Canada Labour Code Transitional Provision Sections 214-217 of any regulations under paragraph 175(1)(a) or (b) of that Act for which the Minister of Labour has, before the coming into force of section 198 of this Act, caused an inquiry to be made under section 248 of that Act. Coordinating Amendments 2017, c. 20 215 (1) On the first day on which both subsection 267(3) of the Budget Implementation Act, 2017, No. 1 and subsection 209(2) of this Act are in force, paragraph 209.4(g) of the Canada Labour Code is replaced by the following: (g) prescribing shorter periods of continuous employment for the purposes of subsections 206(1), 206.1(1), 206.4(2) and (2.1), 206.5(2) and (3), 206.6(1) and 206.8(1); (2) On the first day on which both subsection 356(1) of the Budget Implementation Act, 2017, No. 1 and section 197 of this Act are in force, paragraph 246.1(1)(a) of the Canada Labour Code is replaced by the following: (a) the employer has taken action against the employee in contravention of subsection 174.1(4) or 177.1(7) or of section 208, 209.3, 238, 239, 239.1 or 247.96; Coming into Force Order in council 216 (1) Sections 195 to 204 and 210 to 214 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Sections 205 to 209 come into force on a day to be fixed by order of the Governor in Council. DIVISION 9 2015, c. 36 Economic Action Plan 2015 Act, No. 1 217 Section 89 of the Economic Action Plan 2015 Act, No. 1 is amended by replacing the subsection 167(1.2) that it enacts with the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 9 Economic Action Plan 2015 Act, No. 1 Sections 217-219 Exception (1.2) Except to the extent provided for in the regulations, this Part does not apply to a person referred to in subsection (1.1) or, in relation to the person, the employer, if the person performs the activities to fulfil the requirements of a program that is offered by a secondary or post-secondary educational institution, vocational school, or equivalent educational institution outside Canada, specified or described in the regulations. 218 Subsection 92(1) of the Act is amended by replacing the paragraphs 264(a.2) to (a.9) that it enacts with the following: (a.2) respecting the information that an employer must provide to the Minister for the purpose of establishing that the performance of activities referred to in subsection 167(1.2) fulfils the requirements of a program referred to in that subsection, and the circumstances in which an employer must provide it; (a.3) specifying the circumstances in which a person who performs activities referred to in subsection 167(1.2) must provide to an employer the information referred to in paragraph (a.2); (a.4) for the purpose of subsection 167(1.2), specifying or describing secondary or post-secondary educational institutions, vocational schools, or equivalent educational institutions outside Canada; DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Canadian Free Trade Agreement Implementation Act Enactment of Act 219 The Canadian Free Trade Agreement Implementation Act is enacted as follows: An Act to implement the Canadian Free Trade Agreement Preamble Whereas the Government of Canada together with the Governments of Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Prince Edward Island, Saskatchewan, Alberta, 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Canadian Free Trade Agreement Implementation Act Section 219 Newfoundland and Labrador, Yukon, the Northwest Territories and Nunavut have entered into the Canadian Free Trade Agreement; And whereas the reduction or elimination of barriers to the free movement of persons, goods, services and investments is essential for the promotion of an open, efficient and stable domestic market to enhance the competitiveness of Canadian business and to promote sustainable and environmentally sound development; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Canadian Free Trade Agreement Implementation Act. Interpretation Definitions 2 The following definitions apply in this Act. Agreement means the Canadian Free Trade Agreement signed in 2017, as amended from time to time. (Accord) Minister means the member of the Queen’s Privy Council for Canada who is designated as the Minister for the purposes of any provision of this Act under section 8. (ministre) Purpose Purpose 3 The purpose of this Act is to implement the Agreement. Her Majesty Binding on Her Majesty 4 This Act is binding on Her Majesty in right of Canada. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Canadian Free Trade Agreement Implementation Act Section 219 General Prohibition of private cause of action — section 12 or 14 5 (1) There is no cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of section 12 or 14 or an order made under section 12. Prohibition of private cause of action — Chapter Ten (2) Except to the extent provided in Chapter Ten of the Agreement, there is no cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement. For greater certainty 6 For greater certainty, nothing in this Act, by specific mention or omission, limits in any manner the right of Parliament to enact legislation to implement any provision of the Agreement or fulfil any of the obligations of the Government of Canada under the Agreement. Implementation of Agreement Approval of Agreement Agreement approved 7 The Agreement is approved. Designation of Minister Order designating Minister 8 The Governor in Council may, by order, designate any member of the Queen’s Privy Council for Canada as the Minister for the purposes of any provision of this Act. Orders Made Under Chapter Ten of Agreement Orders of Federal Court 9 (1) An order to pay a monetary penalty or tariff costs made under Chapter Ten of the Agreement may, for the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Canadian Free Trade Agreement Implementation Act Section 219 purpose of its enforcement only, be made an order of the Federal Court. Procedure (2) To make the order an order of the Federal Court, the party to the Agreement or the person in favour of whom the order is made must file a certified copy of the order in the Registry of the Federal Court and, on filing, the order becomes an order of that Court. Enforcement 10 An order that is made an order of the Federal Court is enforceable in the same manner as any other order of that Court. Orders final and binding 11 An order that is made an order of the Federal Court is final and binding and is not subject to appeal to any court. Orders of Governor in Council Orders: suspending benefits or imposing retaliatory measures 12 (1) For the purpose of suspending benefits of equivalent effect or imposing retaliatory measures of equivalent effect under Article 1013 of the Agreement, the Governor in Council may, by order, do any one or more of the following: (a) suspend rights or privileges granted by the Government of Canada to a province under the Agreement or any federal law; and (b) modify or suspend the application of any federal law with respect to a province. Definition of federal law (2) In this section, federal law means the whole or any portion of any Act of Parliament or any regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament. Order subject to Chapter Ten (3) For greater certainty, the making of an order under subsection (1) must be in accordance with and subject to Chapter Ten of the Agreement and, in particular, (a) the requirements for standing set out in Article 1004.8 of the Agreement; and (b) the conditions and limitations set out in Articles 1013.3, 1013.4 and 1013.10 of the Agreement. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Canadian Free Trade Agreement Implementation Act Sections 219-220 Committee on Internal Trade Appointment of representative 13 The Governor in Council may appoint a Minister to be a representative on the Committee on Internal Trade continued under Article 1100 of the Agreement. Annual budget 14 The Government of Canada must pay its portion of the Internal Trade Secretariat’s annual operating budget referred to in Article 1102.3 of the Agreement. Panels, Committees and Working Groups Rosters 15 The Governor in Council may appoint any person who meets the requirements set out in Annex 1005.2 of the Agreement to be on the rosters referred to in Article 1005.2 of the Agreement. Representatives on committees and working groups 16 The Minister may appoint any person to be a representative of Canada on any committee or working group referred to in the Agreement, other than the Committee on Internal Trade continued under Article 1100 of the Agreement. Appointments Appointments 17 (1) The Governor in Council may, by order, appoint any person to fill any position that may be necessary or advisable, in the opinion of the Governor in Council, for the carrying out of the purposes of the Agreement. Remuneration (2) A person appointed under subsection (1) may be paid the remuneration and expenses for their services that are fixed by the Governor in Council. Transitional Provision Complaints filed between July 1, 2017 and date of royal assent 220 Any complaint referred to in paragraph 22.1(3)(b) of the Department of Public Works and Government Services Act that is filed with the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Transitional Provision Sections 220-221 Procurement Ombudsman during the period beginning on July 1, 2017 and ending on the day on which this Act receives royal assent is deemed to be a complaint referred to in paragraph 22.1(3)(b) of the Department of Public Works and Government Services Act as enacted by section 224 of this Act. 1992, c. 36 Related Amendments to the Energy Efficiency Act 221 The Energy Efficiency Act is amended by adding the following after section 20: Definitions 20.1 (1) The following definitions apply in this section and in section 20.2: harmonize means, with respect to requirements, to make them correspond substantively. (harmoniser) jurisdiction means (a) the government of a province; (b) any agency or body that is established under an Act of the legislature of a province; (c) a government or court of a foreign state or of a subdivision of a foreign state, or any agency, body or institution of such a government; and (d) an international organization of states or any agency, body, court or institution of such an organization. (instance) requirement means energy efficiency standards, testing or information that must be provided by a dealer under section 5. (exigence) Ministerial regulations (2) The Minister may, by regulation — with respect to energy-using products or classes of energy-using products that are specified in regulations made by the Governor in Council under paragraph 25(c) — amend regulations made under paragraph 20(1)(b) or (d) or 25(b) for the purpose of maintaining harmonization between a requirement set out in those regulations and that of a jurisdiction. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Related Amendments to the Energy Efficiency Act Sections 221-223 Restrictions (3) In exercising the power under subsection (2), the Minister may (a) update an erroneous reference to a document incorporated by reference, as it is amended from time to time; (b) modify an energy efficiency standard for energyusing products or classes of energy-using products; (c) provide for modified or alternative testing of energy-using products to determine their energy efficiency; and (d) prescribe information respecting energy-using products, including their energy efficiency, that must be provided by a dealer under section 5. Definition of technical standards document 20.2 (1) In this section, technical standards document means a document that is published in both official languages by the Minister and that adapts, combines or reproduces, in whole or in part, documents that are produced by jurisdictions, standards development organizations or industry associations and that, for energy-using products or classes of energy-using products, set out requirements or guidance related to those requirements. The adaptations may include modifications to the content of the originating document. Incorporation of technical standards document (2) Regulations made under paragraphs 20(1)(b) or (d) or 25(b) may, for the purpose of harmonizing the requirements set out in those regulations with those of a jurisdiction to which those regulations or a technical standards documents refers, incorporate by reference, in whole or in part, a technical standards document, as it is amended from time to time. 222 Section 26 of the Act is repealed. Consequential Amendments R.S., c. F-11 Financial Administration Act 223 Section 89.3 of the Financial Administration Act and the heading before it are replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Consequential Amendments Sections 223-226 Implementation of Canadian Free Trade Agreement Directive 89.3 Despite subsections 85(1) to (1.2), the Governor in Council may give a directive under subsection 89(1) to any parent Crown corporation for the purpose of implementing any provision of the Agreement, as defined in section 2 of the Canadian Free Trade Agreement Implementation Act, that pertains to that Crown corporation. 1996, c. 16 Department of Public Works and Government Services Act 224 (1) Paragraph 22.1(3)(b) of the Department of Public Works and Government Services Act is replaced by the following: (b) review any complaint respecting the compliance with any regulations made under the Financial Administration Act of the award of a contract for the acquisition of materiel or services by a department to which the Agreement, as defined in section 2 of the Canadian Free Trade Agreement Implementation Act, would apply if the value of the contract were not less than the amount referred to in Article 504 of that Agreement. (2) Paragraph 22.1(3)(c) of the French version of the Act is replaced by the following: c) examiner toute plainte relative à la gestion de tout marché en vue de l’acquisition de matériel ou de services par un ministère; 225 Subsection 22.2(1) of the Act is replaced by the following: Person who may complain 22.2 (1) A person may only file a complaint referred to in paragraph 22.1(3)(b) or (c) if that person is a Canadian supplier within the meaning of article 521 of the agreement referred to in paragraph 22.1(3)(b) and meets any requirements prescribed by the regulations. SOR/2008-143 Procurement Ombudsman Regulations 226 Paragraph 9(1)(a) of the Procurement Ombudsman Regulations is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 10 Trade within Canada and Harmonization of Energy Efficiency Requirements Consequential Amendments Sections 226-232 (a) the contract, the award of which is the subject of the complaint, is not covered by any of the exceptions in the Agreement, as defined in section 2 of the Canadian Free Trade Agreement Implementation Act, including those made under articles 800, 801, 802, 809 and 1205.1 of that Agreement, and is one to which that Agreement would apply if its value, as determined under article 505 of that Agreement, were not less than the amount set out in article 504 of that Agreement; Repeals Repeal 227 The Timber Marking Act, chapter T-11 of the Revised Statutes of Canada, 1985, is repealed. Repeal 228 The Agreement on Internal Trade Implementation Act, chapter 17 of the Statutes of Canada, 1996, is repealed. Coming into Force July 1, 2017 229 This Division is deemed to have come into force on July 1, 2017. DIVISION 11 R.S., c. J-1 Judges Act Amendments to the Act 230 The definition judge in section 2 of the Judges Act is replaced by the following: judge includes a chief justice, senior associate chief justice, associate chief justice, supernumerary judge and regional senior judge; (juge) 231 Paragraph 20(c) of the Act is replaced by the following: (c) the Chief Justice and the two Associate Chief Justices of the Court of Queen’s Bench, $344,400 each; and 232 (1) Paragraph 22(1)(a) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 232-234 (a) the Chief Justice, $344,400; and (2) Paragraph 22(2)(a) of the Act is replaced by the following: (a) the Chief Justice, $344,400; and (3) Paragraph 22(2.1)(a) of the Act is replaced by the following: (a) the Chief Justice, $344,400; and (4) Subsection 22(3) of the Act is repealed. 233 (1) Paragraph 27(6)(e) of the Act is replaced by the following: (e) the Chief Justices of the Court of Appeal of Yukon, the Court of Appeal of the Northwest Territories, the Court of Appeal of Nunavut, the Supreme Court of Yukon, the Supreme Court of the Northwest Territories and the Nunavut Court of Justice, $10,000 each; (2) Subsection 27(9) of the Act is replaced by the following: Definition of chief justice (9) In this section, except in paragraphs (6)(a) and (c), chief justice includes a senior associate chief justice and an associate chief justice. 234 (1) Paragraph 29(3)(b) of the Act is replaced by the following: (b) in the case of a supernumerary judge of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice, by the Chief Justice of that Court. (2) Subsection 29(4) of the English version of the Act is replaced by the following: Salary of supernumerary judge (4) The salary of each supernumerary judge of a superior court is the salary annexed to the office of a judge of that court other than a chief justice, senior associate chief justice or associate chief justice. (3) Subsection 29(6) of the Act is repealed. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 235-238 235 The heading before section 31 of the Act is replaced by the following: Chief Justice Continuing as Judge 236 (1) Subsections 32.1(1) to (3) of the Act are replaced by the following: Chief Justice 32.1 (1) If the Chief Justice of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice has notified the Minister of Justice of Canada and the attorney general of the territory of his or her election to cease to perform the duties of chief justice and to perform only the duties of a judge, he or she shall then hold only the office of a judge, other than the chief justice, of that court and shall be paid the salary annexed to the office of a judge, other than the chief justice, of that court until he or she reaches the age of retirement, resigns or is removed from or otherwise ceases to hold office. Restriction on election (2) A chief justice may make the election referred to in subsection (1) only if he or she has continued in that office for at least five years. Duties (3) A chief justice who has made the election referred to in subsection (1) shall perform all of the judicial duties normally performed by a judge, other than the chief justice, of the applicable court. (2) Subsection 32.1(4) of the English version of the Act is replaced by the following: Salary (4) The salary of a chief justice who has made the election referred to in subsection (1) is the salary annexed to the office of a judge, other than the chief justice, of the applicable court. 237 The heading before section 42 of the English version of the Act is replaced by the following: Annuities for Judges 238 (1) Subsection 42(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Section 238 Payment of annuities 42 (1) A judge shall be paid an annuity equal to two thirds of the salary annexed to the office held by the judge at the time of his or her resignation, removal or attaining the age of retirement, as the case may be, if the judge (a) has continued in judicial office for at least 15 years, has a combined age and number of years in judicial office that is not less than 80 and resigns from office; (b) has attained the age of retirement and has held judicial office for at least 10 years; or (c) has continued in judicial office on the Supreme Court of Canada for at least 10 years and resigns from office. Grant of annuities (1.1) The Governor in Council shall grant to a judge an annuity equal to two thirds of the salary annexed to the office held by the judge at the time of his or her resignation, removal or attaining the age of retirement, as the case may be, if the judge (a) has continued in judicial office for at least 15 years and resigns his or her office, if in the opinion of the Governor in Council the resignation is conducive to the better administration of justice or is in the national interest; or (b) has become afflicted with a permanent infirmity disabling him or her from the due execution of the office of judge and resigns his or her office or by reason of that infirmity is removed from office. (2) Subsections 42(2) and (3) of the English version of the Act are replaced by the following: Prorated annuity (2) If a judge who has attained the age of retirement has held judicial office for less than 10 years, an annuity shall be paid to that judge that bears the same ratio to the annuity described in subsection (1) as the number of years the judge has held judicial office, to the nearest one tenth of a year, bears to 10 years. Duration of annuities (3) An annuity granted or paid to a judge under this section shall commence on the day of his or her resignation, removal or attaining the age of retirement and shall continue during the life of the judge. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Section 239 239 (1) Subsection 43(1) of the Act is replaced by the following: Annuity payable to supernumerary judge 43 (1) If a supernumerary judge, before becoming one, held the office of chief justice, senior associate chief justice or associate chief justice, the annuity payable to the judge under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office of chief justice, senior associate chief justice or associate chief justice previously held by him or her. (2) Subsection 43(1.1) of the English version of the Act is replaced by the following: Annuity for former supernumerary judge (1.1) If a supernumerary judge to whom subsection (1) applies is appointed to a different court to perform only the duties of a judge, the annuity payable to the judge under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office of chief justice, senior associate chief justice or associate chief justice previously held by him or her. (3) Subsection 43(2) of the Act is replaced by the following: Annuity — election under section 31, 32 or 32.1 (2) If the Chief Justice of the Federal Court of Appeal or the Federal Court or the Chief Justice or Associate Chief Justice of the Tax Court of Canada, in accordance with section 31, or a chief justice of a superior court of a province, in accordance with section 32, or the Chief Justice of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice, in accordance with section 32.1, has elected to cease to perform his or her duties and to perform only the duties of a judge, the annuity payable to him or her under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office held by him or her immediately before his or her election. (4) Subsection 43(2.2) of the Act is replaced by the following: Annuity payable to chief justice (2.2) If a chief justice is appointed to a different court to perform only the duties of a judge, the annuity payable to him or her under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 239-241 the office of chief justice, if he or she had continued in that office for at least five years or had continued in that office and any other office of chief justice for at least five years. 240 (1) Subsection 43.1(1) of the Act is replaced by the following: 55 years of age and 10 years in office 43.1 (1) A judge who has attained the age of 55 years, has continued in judicial office for at least 10 years and elects early retirement shall be paid an immediate annuity or a deferred annuity, at the option of the judge, calculated in accordance with this section. (2) Paragraph 43.1(2)(b) of the Act is replaced by the following: (b) the denominator is the number of years, to the nearest one tenth of a year, during which the judge would have been required to continue in judicial office in order to be eligible to be paid an annuity under paragraph 42(1)(a) or (b). (3) Subsections 43.1(4) and (5) of the Act are replaced by the following: Second exercise of option (4) A judge whose option was to receive a deferred annuity may, between the date of that option and the date on which the deferred annuity would be payable, opt for an immediate annuity. An immediate annuity shall be paid to the judge from the date of the second option. Survivor’s annuity (5) On the death of a judge who has been paid an immediate annuity or a deferred annuity under subsection (1) or (4), the annuity paid to a survivor under subsection 44(2) shall be determined as if the judge were in receipt of a deferred annuity. 241 The heading before section 44 of the English version of the Act is replaced by the following: Annuities for Survivors 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Section 242 242 (1) The portion of subsection 44(1) of the Act before paragraph (a) is replaced by the following: Annuity for surviving spouse 44 (1) Subject to this section, if a judge of a superior court while holding office died or dies after July 10, 1955, the survivor of the judge shall be paid, commencing on July 18, 1983 or immediately after the death of the judge, whichever is later, and continuing during the life of the survivor, an annuity equal to one third of (2) The portion of subsection 44(1) of the English version of the Act after paragraph (b) is repealed. (3) The portion of subsection 44(2) of the Act before paragraph (a) is replaced by the following: Judge receiving annuity (2) Subject to this section, if a judge who, before, on or after July 11, 1955, was granted or paid a pension or annuity under this Act or any other Act of Parliament providing for pensions or annuities to be granted or paid to judges, died or dies after July 10, 1955, the survivor of the judge shall be paid (4) Paragraph 44(2)(a) of the English version of the Act is replaced by the following: (a) an annuity equal to one half of the pension or annuity granted or paid to the judge, commencing on July 18, 1983 or immediately after the death of the judge, whichever is later, and continuing during the life of the survivor; or (5) Paragraph 44(2)(b) of the Act is replaced by the following: (b) if a division of the judge’s annuity benefits has been made under section 52.14, an annuity equal to one half of the annuity that would have been granted or paid to the judge had the annuity benefits not been divided, commencing immediately after the death of the judge and continuing during the life of the survivor. (6) Subsections 44(3) and (4) of the English version of the Act are replaced by the following: Prothonotaries (3) No annuity shall be paid under this section to the survivor of a prothonotary of the Federal Court if the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 242-244 prothonotary ceased to hold the office of prothonotary before the day on which this subsection comes into force. Limitation on annuity for survivor (4) No annuity shall be paid under this section to the survivor of a judge if the survivor became the spouse or began to cohabit with the judge in a conjugal relationship after the judge ceased to hold office. 243 (1) Subsection 44.01(1) of the English version of the Act is replaced by the following: Election for enhanced annuity for survivor 44.01 (1) Subject to the regulations, a judge may elect to have the annuity to be paid to his or her survivor increased so that it is calculated as if the reference to “one half” in subsection 44(2) were read as a reference to “60%” or “75%”. (2) Subsection 44.01(2) of the Act is replaced by the following: Reduction of annuity (2) If a judge makes the election, the amount of the annuity granted or paid to the judge shall be reduced in accordance with the regulations as of the date the election takes effect, but the combined actuarial present value of the reduced annuity and the annuity that would be paid to the survivor must not be less than the combined actuarial present value of the annuity granted or paid to the judge and the annuity that would be paid to the survivor, immediately before the reduction is made. 244 Subsections 44.2(1) to (3) of the Act are replaced by the following: Election for former judges 44.2 (1) Subject to the regulations, a judge to whom an annuity has been granted or paid may elect to reduce his or her annuity so that an annuity may be paid to a person who, at the time of the election, is the spouse or common-law partner of the judge but to whom an annuity under section 44 must not be paid. Reduction of annuity (2) If a judge makes the election, the amount of the annuity granted or paid to the judge shall be reduced in accordance with the regulations, but the combined actuarial present value of the reduced annuity and the annuity that would be paid to the spouse or common-law partner under subsection (3) must not be less than the actuarial present value of the annuity granted or paid to the judge immediately before the reduction is made. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 244-247 Payment to person in respect of whom election is made (3) When the judge dies, the spouse or common-law partner in respect of whom an election was made shall be paid an annuity in an amount determined in accordance with the election, subsection (2) and the regulations. 245 The heading before section 47 of the English version of the Act is replaced by the following: Annuities for Surviving Children 246 (1) Subsection 47(3) of the Act is replaced by the following: Annuity for surviving children (3) If a judge of a superior or county court dies while holding office, or a judge who was granted or paid an annuity after October 5, 1971 dies, an annuity shall be paid to each surviving child of that judge as provided in subsections (4) and (5). (2) The portion of subsection 47(4) of the Act before paragraph (a) is replaced by the following: Annuity for children if survivor (4) Each child of a judge described in subsection (3) shall be paid 247 (1) Subsection 48(1) of the English version of the Act is replaced by the following: Apportionment of annuities among surviving children 48 (1) If, in computing the annuities to be paid under subsection 47(3) to the children of a judge referred to in that subsection, it is determined that there are more than four children of the judge to whom an annuity shall be paid, the total amount of the annuities paid shall be apportioned among the children in the shares that the Minister of Justice of Canada considers just and proper under the circumstances. (2) Subsection 48(2) of the Act is replaced by the following: Children’s annuities, to whom paid (2) If an annuity under this Act is paid to a child of a judge, payment shall, if the child is less than 18 years of age, be made to the person having the custody and control of the child or, if there is no person having the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 247-249 custody and control of the child, to any person that the Minister of Justice of Canada directs and, for the purposes of this subsection, the survivor of the judge, except if the child is living apart from the survivor, shall be presumed, in the absence of evidence to the contrary, to be the person having the custody and control of the child. 248 Section 49 of the English version of the Act is replaced by the following: Payment of certain taxes out of C.R.F. 49 The Governor in Council may make regulations providing for the payment out of the Consolidated Revenue Fund, on the payment of an annuity under this Act to the survivor or children of a judge or a retired judge, of the whole or any part of the portion of any estate, legacy, succession or inheritance duties or taxes that are payable by the survivor or children with respect to the annuity, as is determined in accordance with the regulations to be attributable to that annuity, and prescribing the amount by which and the manner in which the annuity in that case shall be reduced. 249 Subsections 51(1) and (2) of the English version of the Act are replaced by the following: Return of contributions if no annuity 51 (1) If a judge has ceased to hold office otherwise than by reason of death and, at the time he or she ceased to hold office, no annuity under this Act was granted or could be paid to that judge, there shall be paid to the judge, in respect of his or her having ceased to hold that office, an amount equal to the total contributions made by him or her under subsection 50(1) or paragraph 50(2)(a), together with interest, if any, calculated in accordance with subsection (4). Return of contributions if annuity (2) If a judge to whom subsection 50(1) applies has ceased to hold office otherwise than by reason of death and that judge is granted or paid an annuity under this Act, there shall be paid to the judge in respect of his or her having ceased to hold that office an amount equal to the total contributions made by the judge under subsection 50(1), together with interest, if any, calculated in accordance with subsection (4), if, (a) at the time the judge ceased to hold office, there is no person to whom an annuity under this Act could be paid in respect of the judge on his or her death; or (b) at any time after the judge ceased to hold office but before his or her death, all persons to whom an annuity under this Act could be paid in respect of the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 249-251 judge on his or her death have died or ceased to be eligible to be paid an annuity. 250 The definition judge in section 52.1 of the English version of the Act is replaced by the following: judge includes a former judge who has been granted or paid an annuity. (juge) 251 (1) The portion of subsection 52.14(3) of the English version of the Act before paragraph (a) is replaced by the following: Return of contributions (3) Subject to subsections (3.1) and (4), if the Minister approves the division of the annuity benefits of a judge who was not eligible to be paid an annuity at the end of the period subject to division, the spouse, former spouse or former common-law partner shall be accorded a share of the annuity benefits consisting of (2) The portion of subsection 52.14(3.1) of the English version of the Act before paragraph (a) is replaced by the following: Return of contributions — infirm annuitant (3.1) Subject to subsection (4), if the Minister approves the division of the annuity benefits of a judge who had been granted an annuity by reason of an infirmity but was not otherwise eligible to be paid an annuity at the end of the period subject to division, the spouse, former spouse or former common-law partner shall be accorded a share of the annuity benefits consisting of (3) Subsections 52.14(4) and (5) of the English version of the Act are replaced by the following: Election by spouse (4) A judge’s spouse, former spouse or former commonlaw partner who is entitled to be accorded a share of the judge’s annuity benefits under subsection (3) or (3.1) may elect in the manner prescribed by the regulations, in lieu of receiving that share, to receive — at the time the judge becomes eligible to be granted or paid an annuity, or at the time the judge would have become eligible to be paid an annuity had the judge not resigned or been removed from office by reason of an infirmity — a share of the annuity benefits for which the judge is or would have been eligible, determined as provided in subsection (1). Death or resignation of judge (5) If an election has been made under subsection (4) and, before becoming eligible to be paid an annuity, the 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Amendments to the Act Sections 251-254 judge dies, resigns, is removed from office or otherwise ceases to hold office, the spouse, former spouse or former common-law partner shall instead be paid immediately the portion of the judge’s contributions to which the spouse was otherwise entitled under subsection (3) or (3.1). 252 (1) Paragraph 54(1)(a) of the Act is replaced by the following: (a) of six months or less, except with the approval of the chief justice of the superior court; or (2) Subsections 54(1.1) to (2) of the Act are replaced by the following: Notification of leave by chief justice (1.1) Whenever a leave of absence is granted under paragraph (1)(a), the chief justice of the superior court shall, without delay, notify the Minister of Justice of Canada and, in the case of provincial or territorial courts, the minister of justice or the attorney general of the province or territory. Notification of leave by Minister of Justice of Canada (1.2) Whenever a leave of absence is granted under paragraph (1)(b), the Minister of Justice of Canada shall, without delay, notify the chief justice of the superior court and, in the case of provincial or territorial courts, the minister of justice or the attorney general of the province or territory. Report by chief justice of absence (2) If it appears to the chief justice of a superior court that a judge of the court is absent from the judge’s judicial duties without the approval required by subsection (1), the chief justice shall report the absence to the Minister of Justice of Canada. (3) Subsection 54(4) of the Act is repealed. 253 Subsection 59(1) of the Act is amended by adding “and” at the end of paragraph (b) and by repealing paragraph (c). Transitional Provisions Definition of senior judge 254 (1) In this section, senior judge has the same meaning as in subsection 22(3) of the Judges Act as it read immediately before the day on which subsection 232(4) of this Act comes into force. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Transitional Provisions Sections 254-257 Rights preserved (2) For the purposes of the Judges Act, the years during which a senior judge of the Supreme Court of Yukon, the Supreme Court of Northwest Territories or the Nunavut Court of Justice has continued in office are deemed to be years during which a chief justice has continued in judicial office. Consequential Amendments R.S., c. C-46 Criminal Code 255 (1) Paragraph 188(4)(c) of the Criminal Code is replaced by the following: (c) in the Provinces of Nova Scotia, British Columbia and Prince Edward Island, and in the Yukon and the Northwest Territories, the Chief Justice of the Supreme Court; (2) Paragraph 188(4)(f) of the Act is replaced by the following: (f) in Nunavut, the Chief Justice of the Nunavut Court of Justice. 1993, c. 28 Nunavut Act 256 Section 10 of the Nunavut Act is replaced by the following: Absence or incapacity 10 If both the Commissioner and the Deputy Commissioner are absent, ill or unable to act or both those offices are vacant, the Chief Justice of the Nunavut Court of Justice has and may exercise and perform all of the powers, duties and functions of the Commissioner. 2002, c. 7 Yukon Act 257 Subsection 5(2) of the Yukon Act is replaced by the following: Absence or inability (2) The Chief Justice of the Supreme Court of Yukon may act as Administrator during the Administrator’s absence or illness or other inability or when that office is vacant. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 11 Judges Act Consequential Amendments Sections 258-260 2014, c. 2, s. 2 Northwest Territories Act 258 Subsection 5(2) of the Northwest Territories Act is replaced by the following: Absence, inability or vacancy (2) The Chief Justice of the Supreme Court of the Northwest Territories is authorized to act as Deputy Commissioner during the Deputy Commissioner’s absence or inability or when that office is vacant. Coming into Force Order in council 259 (1) Sections 230, 232 to 236, 239, 252, 253 and 255 to 258 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Sections 237, 238 and 240 to 251 come into force on a day to be fixed by order of the Governor in Council. DIVISION 12 1995, c. 28 Business Development Bank of Canada Act 260 Subsection 23(1) of the Business Development Bank of Canada Act is replaced by the following: Authorized capital 23 (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed $4,500,000,000. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 PART 5 Various Measures DIVISION 13 Financial Administration Act Section 261 DIVISION 13 R.S., c. F-11 Financial Administration Act 261 Subsection 32(1) of the Financial Administration Act is replaced by the following: Control of commitments 32 (1) No contract or other arrangement providing for a payment shall be entered into unless, to discharge any debt that will be due under the contract or other arrangement during the fiscal year in which the contract or other arrangement is entered into, there is a sufficient unencumbered balance available out of (a) an appropriation by Parliament to which the payment will be charged; (b) an item included in estimates then before the House of Commons to which the payment will relate; (c) a commitment limit in an appropriation Act to which the payment will relate; or (d) revenues received or estimated revenues set out in estimates, in the case of a payment that will be charged to an authority — under an appropriation Act or any other Act of Parliament — to expend revenues. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE SCHEDULE (Section 176) SCHEDULE (Sections 2 and 5) Asian Infrastructure Investment Bank Articles of Agreement The countries on whose behalf the present Agreement is signed agree as follows: CONSIDERING the importance of regional cooperation to sustain growth and promote economic and social development of the economies in Asia and thereby contribute to regional resilience against potential financial crises and other external shocks in the context of globalization; ACKNOWLEDGING the significance of infrastructure development in expanding regional connectivity and improving regional integration, thereby promoting economic growth and sustaining social development for the people in Asia, and contributing to global economic dynamism; REALIZING that the considerable long-term need for financing infrastructure development in Asia will be met more adequately by a partnership among existing multilateral development banks and the Asian Infrastructure Investment Bank (hereinafter referred to as the “Bank”); CONVINCED that the establishment of the Bank as a multilateral financial institution focused on infrastructure development will help to mobilize much needed additional resources from inside and outside Asia and to remove the financing bottlenecks faced by the individual economies in Asia, and will complement the existing multilateral development banks, to promote sustained and stable growth in Asia; HAVE AGREED to establish the Bank, which shall operate in accordance with the following: CHAPTER I PURPOSE, FUNCTIONS AND MEMBERSHIP Article 1 Purpose 1. The purpose of the Bank shall be to: (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors; and (ii) promote regional cooperation and partnership in addressing development 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE challenges by working in close collaboration with other multilateral and bilateral development institutions. 2. Wherever used in this Agreement, references to “Asia” and “region” shall include the geographical regions and composition classified as Asia and Oceania by the United Nations, except as otherwise decided by the Board of Governors. Article 2 Functions To implement its purpose, the Bank shall have the following functions: (i) to promote investment in the region of public and private capital for development purposes, in particular for development of infrastructure and other productive sectors; (ii) to utilize the resources at its disposal for financing such development in the region, including those projects and programs which will contribute most effectively to the harmonious economic growth of the region as a whole and having special regard to the needs of less developed members in the region; (iii) to encourage private investment in projects, enterprises and activities contributing to economic development in the region, in particular in infrastructure and other productive sectors, and to supplement private investment when private capital is not available on reasonable terms and conditions; and (iv) to undertake such other activities and provide such other services as may further these functions. Article 3 Membership 1. Membership in the Bank shall be open to members of the International Bank for Reconstruction and Development or the Asian Development Bank. (a) Regional members shall be those members listed in Part A of Schedule A and other members included in the Asia region in accordance with paragraph 2 of Article 1. All other members shall be non-regional members. (b) Founding Members shall be those members listed in Schedule A which, on or before the date specified in Article 57, shall have signed this Agreement and shall have fulfilled all other conditions of membership before the final date specified under paragraph 1 of Article 58. 2. Members of the International Bank for Reconstruction and Development or the Asian Development Bank which do not become members in accordance with Article 58 may be admitted, under such terms and conditions as the Bank shall determine, to membership in the Bank by a Special Majority vote of the Board of Governors as provided in Article 28. 3. In the case of an applicant which is not sovereign or not responsible for the conduct of its international relations, application for membership in the Bank shall be presented or agreed by the member of the Bank responsible for its international relations. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE CHAPTER II CAPITAL Article 4 Authorized Capital 1. The authorized capital stock of the Bank shall be one hundred billion United States dollars ($100,000,000,000), divided into one million (1,000,000) shares having a par value of 100,000 dollars ($100,000) each, which shall be available for subscription only by members in accordance with the provisions of Article 5. 2. The original authorized capital stock shall be divided into paid-in shares and callable shares. Shares having an aggregate par value of twenty billion dollars ($20,000,000,000) shall be paid-in shares, and shares having an aggregate par value of eighty billion dollars ($80,000,000,000) shall be callable. 3. The authorized capital stock of the Bank may be increased by the Board of Governors by a Super Majority vote as provided in Article 28, at such time and under such terms and conditions as it may deem advisable, including the proportion between paid-in and callable shares. 4. The term “dollar” and the symbol “$” wherever used in this Agreement shall be understood as being the official currency of payment of the United States of America. Article 5 Subscription of Shares 1. Each member shall subscribe to shares of the capital stock of the Bank. Each subscription to the original authorized capital stock shall be for paid-in shares and callable shares in the proportion two (2) to eight (8). The initial number of shares available to be subscribed by countries which become members in accordance with Article 58 shall be that set forth in Schedule A. 2. The initial number of shares to be subscribed by countries which are admitted to membership in accordance with paragraph 2 of Article 3 shall be determined by the Board of Governors; provided, however, that no such subscription shall be authorized which would have the effect of reducing the percentage of capital stock held by regional members below seventy-five (75) per cent of the total subscribed capital stock, unless otherwise agreed by the Board of Governors by a Super Majority vote as provided in Article 28. 3. The Board of Governors may, at the request of a member, increase the subscription of such member on such terms and conditions as the Board may determine by a Super Majority vote as provided in Article 28; provided, however, that no such increase in the subscription of any member shall be authorized which would have the effect of reducing the percentage of capital stock held by regional members below seventyfive (75) per cent of the total subscribed capital stock, unless otherwise agreed by the Board of Governors by a Super Majority vote as provided in Article 28. 4. The Board of Governors shall at intervals of not more than five (5) years review the capital stock of the Bank. In case of an increase in the authorized capital stock, each member shall have a reasonable opportunity to subscribe, under such terms and conditions as the Board of Governors shall determine, to a proportion of the increase of stock equivalent to the proportion which its stock theretofore subscribed bears to the total subscribed capital stock immediately prior to such increase. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE No member shall be obligated to subscribe to any part of an increase of capital stock. Article 6 Payment of Subscriptions 1. Payment of the amount initially subscribed by each Signatory to this Agreement which becomes a member in accordance with Article 58 to the paid-in capital stock of the Bank shall be made in five (5) installments, of twenty (20) per cent each of such amount, except as provided in paragraph 5 of this Article. The first installment shall be paid by each member within thirty (30) days after entry into force of this Agreement, or on or before the date of deposit on its behalf of its instrument of ratification, acceptance or approval in accordance with paragraph 1 of Article 58, whichever is later. The second installment shall become due one (1) year from the entry into force of this Agreement. The remaining three (3) installments shall become due successively one (1) year from the date on which the preceding installment becomes due. 2. Each installment of the payment of initial subscriptions to the original paid-in capital stock shall be paid in dollars or other convertible currency, except as provided in paragraph 5 of this Article. The Bank may at any time convert such payments into dollars. All rights, including voting rights, acquired in respect of paid-in and associated callable shares for which such payments are due but have not been received shall be suspended until full payment is received by the Bank. 3. Payment of the amount subscribed to the callable capital stock of the Bank shall be subject to call only as and when required by the Bank to meet its liabilities. In the event of such a call, payment may be made at the option of the member in dollars or in the currency required to discharge the obligations of the Bank for the purpose of which the call is made. Calls on unpaid subscriptions shall be uniform in percentage on all callable shares. 4. The Bank shall determine the place for any payment under this Article, provided that, until the inaugural meeting of the Board of Governors, the payment of the first installment referred to in paragraph 1 of this Article shall be made to the Government of the People’s Republic of China, as Trustee for the Bank. 5. A member considered as a less developed country for purposes of this paragraph may pay its subscription under paragraphs 1 and 2 of this Article, as an alternative, either: (a) entirely in dollars or other convertible currency in up to ten (10) installments, with each such installment equal to ten (10) percent of the total amount, the first and second installments due as provided in paragraph 1, and the third through tenth installments due on the second and subsequent anniversary dates of the entry into force of this Agreement; or (b) with a portion in dollars or other convertible currency and a portion of up to fifty (50) per cent of each installment in the currency of the member, following the schedule of installments provided in paragraph 1 of this Article. The following provisions shall apply to payments under this sub-paragraph (b): (i) The member shall advise the Bank at the time of subscription under paragraph 1 of this Article of the proportion of payments to be made in its own currency. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE (ii) Each payment of a member in its own currency under this paragraph 5 shall be in such amount as the Bank determines to be equivalent to the full value in terms of dollars of the portion of the subscription being paid. The initial payment shall be in such amount as the member considers appropriate hereunder but shall be subject to such adjustment, to be effected within ninety (90) days of the date on which such payment was due, as the Bank shall determine to be necessary to constitute the full dollar equivalent of such payment. (iii) Whenever in the opinion of the Bank, the foreign exchange value of a member’s currency has depreciated to a significant extent, that member shall pay to the Bank within a reasonable time an additional amount of its currency required to maintain the value of all such currency held by the Bank on account of its subscription. (iv) Whenever in the opinion of the Bank, the foreign exchange value of a member’s currency has appreciated to a significant extent, the Bank shall pay to that member within a reasonable time an amount of that currency required to adjust the value of all such currency held by the Bank on account of its subscription. (v) The Bank may waive its rights to payment under sub-paragraph (iii) and the member may waive its rights to payment under sub-paragraph (iv). 6. The Bank shall accept from any member paying its subscription under sub-paragraph 5 (b) of this Article promissory notes or other obligations issued by the Government of the member, or by the depository designated by such member, in lieu of the amount to be paid in the currency of the member, provided such amount is not required by the Bank for the conduct of its operations. Such notes or obligations shall be non-negotiable, non-interest-bearing, and payable to the Bank at par value upon demand. Article 7 Terms of Shares 1. Shares of stock initially subscribed by members shall be issued at par. Other shares shall be issued at par unless the Board of Governors by a Special Majority vote as provided in Article 28 decides in special circumstances to issue them on other terms. 2. Shares of stock shall not be pledged or encumbered in any manner whatsoever, and they shall be transferable only to the Bank. 3. The liability of the members on shares shall be limited to the unpaid portion of their issue price. 4. No member shall be liable, by reason of its membership, for obligations of the Bank. Article 8 Ordinary Resources 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE As used in this Agreement, the term "ordinary resources" of the Bank shall include the following: (i) authorized capital stock of the Bank, including both paid-in and callable shares, subscribed pursuant to Article 5; (ii) funds raised by the Bank by virtue of powers conferred by paragraph 1 of Article 16, to which the commitment to calls provided for in paragraph 3 of Article 6 is applicable; (iii) funds received in repayment of loans or guarantees made with the resources indicated in sub-paragraphs (i) and (ii) of this Article or as returns on equity investments and other types of financing approved under sub-paragraph 2 (vi) of Article 11 made with such resources; (iv) income derived from loans made from the aforementioned funds or from guarantees to which the commitment to calls set forth in paragraph 3 of Article 6 is applicable; and (v) any other funds or income received by the Bank which do not form part of its Special Funds resources referred to in Article 17 of this Agreement. CHAPTER III OPERATIONS OF THE BANK Article 9 Use of Resources The resources and facilities of the Bank shall be used exclusively to implement the purpose and functions set forth, respectively, in Articles 1 and 2, and in accordance with sound banking principles. Article 10 Ordinary and Special Operations 1. The operations of the Bank shall consist of: (i) ordinary operations financed from the ordinary resources of the Bank, referred to in Article 8; and (ii) special operations financed from the Special Funds resources referred to in Article 17. The two types of operations may separately finance elements of the same project or program. 2. The ordinary resources and the Special Funds resources of the Bank shall at all times and in all respects be held, used, committed, invested or otherwise disposed of entirely separately from each other. The financial statements of the Bank shall show the ordinary operations and special operations separately. 3. The ordinary resources of the Bank shall, under no circumstances, be charged with, or used to discharge, losses or liabilities arising out of special operations or other activities for which Special Funds resources were originally used or committed. 4. Expenses appertaining directly to ordinary operations shall be charged to the ordinary resources of the Bank. Expenses appertaining directly to special operations shall be charged to the Special Funds resources. Any other expenses shall be charged as the Bank shall determine. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE Article 11 Recipients and Methods of Operation 1. (a) The Bank may provide or facilitate financing to any member, or any agency, instrumentality or political subdivision thereof, or any entity or enterprise operating in the territory of a member, as well as to international or regional agencies or entities concerned with economic development of the region. (b) The Bank may, in special circumstances, provide assistance to a recipient not listed in sub-paragraph (a) above only if the Board of Governors, by a Super Majority vote as provided in Article 28: (i) shall have determined that such assistance is designed to serve the purpose and come within the functions of the Bank and is in the interest of the Bank’s membership; and (ii) shall have specified the types of assistance under paragraph 2 of this Article that may be provided to such recipient. 2. The Bank may carry out its operations in any of the following ways: (i) by making, co-financing or participating in direct loans; (ii) by investment of funds in the equity capital of an institution or enterprise; (iii) by guaranteeing, whether as primary or secondary obligor, in whole or in part, loans for economic development; (iv) by deploying Special Funds resources in accordance with the agreements determining their use; (v) by providing technical assistance in accordance with Article 15; or (vi) through other types of financing as may be determined by the Board of Governors, by a Special Majority vote as provided in Article 28. Article 12 Limitations on Ordinary Operations 1. The total amount outstanding of loans, equity investments, guarantees and other types of financing provided by the Bank in its ordinary operations under sub-paragraphs 2 (i), (ii), (iii) and (vi) of Article 11 shall not at any time be increased, if by such increase the total amount of its unimpaired subscribed capital, reserves and retained earnings included in its ordinary resources would be exceeded. Notwithstanding the provisions of the preceding sentence, the Board of Governors may, by a Super Majority vote as provided in Article 28, determine at any time that, based on the Bank’s financial position and financial standing, the limitation under this paragraph may be increased, up to 250% of the Bank’s unimpaired subscribed capital, reserves and retained earnings included in its ordinary resources. 2. The amount of the Bank’s disbursed equity investments shall not at any time exceed an amount corresponding to its total unimpaired paid-in subscribed capital and general reserves. Article 13 Operating Principles 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE The operations of the Bank shall be conducted in accordance with the principles set out below: 1. The Bank shall be guided by sound banking principles in its operations. 2. The operations of the Bank shall provide principally for the financing of specific projects or specific investment programs, for equity investment, and for technical assistance in accordance with Article 15. 3. The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing. 4. The Bank shall ensure that each of its operations complies with the Bank’s operational and financial policies, including without limitation, policies addressing environmental and social impacts. 5. In considering an application for financing, the Bank shall pay due regard to the ability of the recipient to obtain financing or facilities elsewhere on terms and conditions that the Bank considers reasonable for the recipient, taking into account all pertinent factors. 6. In providing or guaranteeing financing, the Bank shall pay due regard to the prospects that the recipient and guarantor, if any, will be in a position to meet their obligations under the financing contract. 7. In providing or guaranteeing financing, the financial terms, such as rate of interest and other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the financing concerned and the risk to the Bank. 8. The Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any financing undertaken in the ordinary or special operations of the Bank. 9. The Bank shall take the necessary measures to ensure that the proceeds of any financing provided, guaranteed or participated in by the Bank are used only for the purposes for which the financing was granted and with due attention to considerations of economy and efficiency. 10. The Bank shall pay due regard to the desirability of avoiding a disproportionate amount of its resources being used for the benefit of any member. 11. The Bank shall seek to maintain reasonable diversification in its investments in equity capital. In its equity investments, the Bank shall not assume responsibility for managing any entity or enterprise in which it has an investment and shall not seek a controlling interest in the entity or enterprise concerned, except where necessary to safeguard the investment of the Bank. Article 14 Terms and Conditions for Financing 1. In the case of loans made or participated in or loans guaranteed by the Bank, the contract shall establish, in conformity with the operating principles set forth in Article 13 and subject to the other provisions of this Agreement, the terms and conditions for the loan or the guarantee concerned. In setting 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE such terms and conditions, the Bank shall take fully into account the need to safeguard its income and financial position. 2. Where the recipient of loans or guarantees of loans is not itself a member, the Bank may, when it deems it advisable, require that the member in whose territory the project concerned is to be carried out, or a public agency or any instrumentality of that member acceptable to the Bank, guarantee the repayment of the principal and the payment of interest and other charges on the loan in accordance with the terms thereof. 3. The amount of any equity investment shall not exceed such percentage of the equity capital of the entity or enterprise concerned as permitted under policies approved by the Board of Directors. 4. The Bank may provide financing in its operations in the currency of the country concerned, in accordance with policies that minimize currency risk. Article 15 Technical Assistance 1. The Bank may provide technical advice and assistance and other similar forms of assistance which serve its purpose and come within its functions. 2. Where expenditures incurred in furnishing such services are not reimbursable, the Bank shall charge such expenditures to the income of the Bank. CHAPTER IV FINANCES OF THE BANK Article 16 General Powers In addition to the powers specified elsewhere in this Agreement, the Bank shall have the powers set out below. 1. The Bank may raise funds, through borrowing or other means, in member countries or elsewhere, in accordance with the relevant legal provisions. 2. The Bank may buy and sell securities the Bank has issued or guaranteed or in which it has invested. 3. The Bank may guarantee securities in which it has invested in order to facilitate their sale. 4. The Bank may underwrite, or participate in the underwriting of, securities issued by any entity or enterprise for purposes consistent with the purpose of the Bank. 5. The Bank may invest or deposit funds not needed in its operations. 6. The Bank shall ensure that every security issued or guaranteed by the Bank shall bear on its face a conspicuous statement to the effect that it is not an obligation of any Government, unless it is in fact the obligation of a particular Government, in which case it shall so state. 7. The Bank may establish and administer funds held in trust for other parties, provided such trust funds are designed to serve the purpose and come within the functions of the Bank, under a trust fund framework which shall have been approved by the Board of Governors. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 8. The Bank may establish subsidiary entities which are designed to serve the purpose and come within the functions of the Bank, only with the approval of the Board of Governors by a Special Majority vote as provided in Article 28. 9. The Bank may exercise such other powers and establish such rules and regulations as may be necessary or appropriate in furtherance of its purpose and functions, consistent with the provisions of this Agreement. Article 17 Special Funds 1. The Bank may accept Special Funds which are designed to serve the purpose and come within the functions of the Bank; such Special Funds shall be resources of the Bank. The full cost of administering any Special Fund shall be charged to that Special Fund. 2. Special Funds accepted by the Bank may be used on terms and conditions consistent with the purpose and functions of the Bank and with the agreement relating to such Funds. 3. The Bank shall adopt such special rules and regulations as may be required for the establishment, administration and use of each Special Fund. Such rules and regulations shall be consistent with the provisions of this Agreement, except for those provisions expressly applicable only to ordinary operations of the Bank. 4. The term "Special Funds resources" shall refer to the resources of any Special Fund and shall include: (i) funds accepted by the Bank for inclusion in any Special Fund; (ii) funds received in respect of loans or guarantees, and the proceeds of any equity investments, financed from the resources of any Special Fund which, under the rules and regulations of the Bank governing that Special Fund, are received by such Special Fund; (iii) income derived from investment of Special Funds resources; and (iv) any other resources placed at the disposal of any Special Fund. Article 18 Allocation and Distribution of Net Income 1. The Board of Governors shall determine at least annually what part of the net income of the Bank shall be allocated, after making provision for reserves, to retained earnings or other purposes and what part, if any, shall be distributed to the members. Any such decision on the allocation of the Bank’s net income to other purposes shall be taken by a Super Majority vote as provided in Article 28. 2. The distribution referred to in the preceding paragraph shall be made in proportion to the number of shares held by each member, and payments shall be made in such manner and in such currency as the Board of Governors shall determine. Article 19 Currencies 1. Members shall not impose any restrictions on currencies, including the receipt, holding, use or transfer by the Bank or by any recipient from the Bank, for payments in any country. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 2. Whenever it shall become necessary under this Agreement to value any currency in terms of another or determine whether any currency is convertible, such valuation or determination shall be made by the Bank. Article 20 Methods of Meeting Liabilities of the Bank 1. In the Bank’s ordinary operations, in cases of arrears or default on loans made, participated in, or guaranteed by the Bank, and in cases of losses on equity investment or other types of financing under sub-paragraph 2 (vi) of Article 11, the Bank shall take such action as it deems appropriate. The Bank shall maintain appropriate provisions against possible losses. 2. Losses arising in the Bank’s ordinary operations shall be charged: (i) first, to the provisions referred to in paragraph 1 above; (ii) second, to net income; (iii) third, against reserves and retained earnings; (iv) fourth, against unimpaired paid-in capital; and (v) last, against an appropriate amount of the uncalled subscribed callable capital which shall be called in accordance with the provisions of paragraph 3 of Article 6. CHAPTER V GOVERNANCE Article 21 Structure The Bank shall have a Board of Governors, a Board of Directors, a President, one or more Vice-Presidents, and such other officers and staff as may be considered necessary. Article 22 Board of Governors: Composition 1. Each member shall be represented on the Board of Governors and shall appoint one Governor and one Alternate Governor. Each Governor and Alternate Governor shall serve at the pleasure of the appointing member. No Alternate Governor may vote except in the absence of his principal. 2. At each of its annual meetings, the Board shall elect one of the Governors as Chairman who shall hold office until the election of the next Chairman. 3. Governors and Alternate Governors shall serve as such without remuneration from the Bank, but the Bank may pay them reasonable expenses incurred in attending meetings. Article 23 Board of Governors: Powers 1. All the powers of the Bank shall be vested in the Board of Governors. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 2. The Board of Governors may delegate to the Board of Directors any or all its powers, except the power to: (i) admit new members and determine the conditions of their admission; (ii) increase or decrease the authorized capital stock of the Bank; (iii) suspend a member; (iv) decide appeals from interpretations or applications of this Agreement given by the Board of Directors; (v) elect the Directors of the Bank and determine the expenses to be paid for Directors and Alternate Directors and remuneration, if any, pursuant to paragraph 6 of Article 25; (vi) elect the President, suspend or remove him from office, and determine his remuneration and other conditions of service; (vii) approve, after reviewing the auditors’ report, the general balance sheet and the statement of profit and loss of the Bank; (viii) determine the reserves and the allocation and distribution of the net profits of the Bank; (ix) amend this Agreement; (x) decide to terminate the operations of the Bank and to distribute its assets; and (xi) exercise such other powers as are expressly assigned to the Board of Governors in this Agreement. 3. The Board of Governors shall retain full power to exercise authority over any matter delegated to the Board of Directors under paragraph 2 of this Article. Article 24 Board of Governors: Procedure 1. The Board of Governors shall hold an annual meeting and such other meetings as may be provided for by the Board of Governors or called by the Board of Directors. Meetings of the Board of Governors shall be called by the Board of Directors whenever requested by five (5) members of the Bank. 2. A majority of the Governors shall constitute a quorum for any meeting of the Board of Governors, provided such majority represents not less than two-thirds of the total voting power of the members. 3. The Board of Governors shall by regulation establish procedures whereby the Board of Directors may obtain a vote of the Governors on a specific question without a meeting and provide for electronic meetings of the Board of Governors in special circumstances. 4. The Board of Governors, and the Board of Directors to the extent authorized, may establish such subsidiary entities, and adopt such rules and regulations, as may be necessary or appropriate to conduct the business of the Bank. Article 25 Board of Directors: Composition 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 1. The Board of Directors shall be composed of twelve (12) members who shall not be members of the Board of Governors, and of whom: (i) nine (9) shall be elected by the Governors representing regional members; and (ii) three (3) shall be elected by the Governors representing non-regional members. Directors shall be persons of high competence in economic and financial matters and shall be elected in accordance with Schedule B. Directors shall represent members whose Governors have elected them as well as members whose Governors assign their votes to them. 2. The Board of Governors shall, from time to time, review the size and composition of the Board of Directors, and may increase or decrease the size or revise the composition as appropriate, by a Super Majority vote as provided in Article 28. 3. Each Director shall appoint an Alternate Director with full power to act for him when he is not present. The Board of Governors shall adopt rules enabling a Director elected by more than a specified number of members to appoint an additional Alternate Director. 4. Directors and Alternate Directors shall be nationals of member countries. No two or more Directors may be of the same nationality nor may any two or more Alternate Directors be of the same nationality. Alternate Directors may participate in meetings of the Board but may vote only when the Alternate Director is acting in place of the Director. 5. Directors shall hold office for a term of two (2) years and may be re-elected: (a) Directors shall continue in office until their successors shall have been chosen and assumed office. (b) If the office of a Director becomes vacant more than one hundred and eighty (180) days before the end of his term, a successor shall be chosen in accordance with Schedule B, for the remainder of the term, by the Governors who elected the former Director. A majority of the votes cast by such Governors shall be required for such election. The Governors who elected a Director may similarly choose a successor if the office of a Director becomes vacant one hundred and eighty (180) days or less before the end of his term. (c) While the office of a Director remains vacant, an Alternate Director of the former Director shall exercise the powers of the latter, except that of appointing an Alternate Director. 6. Directors and Alternate Directors shall serve without remuneration from the Bank, unless the Board of Governors shall decide otherwise, but the Bank may pay them reasonable expenses incurred in attending meetings. Article 26 Board of Directors: Powers 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE The Board of Directors shall be responsible for the direction of the general operations of the Bank and, for this purpose, shall, in addition to the powers assigned to it expressly by this Agreement, exercise all the powers delegated to it by the Board of Governors, and in particular: (i) prepare the work of the Board of Governors; (ii) establish the policies of the Bank, and, by a majority representing not less than three-fourths of the total voting power of the members, take decisions on major operational and financial policies and on delegation of authority to the President under Bank policies; (iii) take decisions concerning operations of the Bank under paragraph 2 of Article 11, and, by a majority representing not less than three-fourths of the total voting power of the members, decide on the delegation of such authority to the President; (iv) supervise the management and the operation of the Bank on a regular basis, and establish an oversight mechanism for that purpose, in line with principles of transparency, openness, independence and accountability; (v) approve the strategy, annual plan and budget of the Bank; (vi) appoint such committees as deemed advisable; and (vii) submit the audited accounts for each financial year for approval of the Board of Governors. Article 27 Board of Directors: Procedure 1. The Board of Directors shall meet as often as the business of the Bank may require, periodically throughout the year. The Board of Directors shall function on a non-resident basis except as otherwise decided by the Board of Governors by a Super Majority vote as provided in Article 28. Meetings may be called by the Chairman or whenever requested by three (3) Directors. 2. A majority of the Directors shall constitute a quorum for any meeting of the Board of Directors, provided such majority represents not less than two-thirds of the total voting power of the members. 3. The Board of Governors shall adopt regulations under which, if there is no Director of its nationality, a member may send a representative to attend, without right to vote, any meeting of the Board of Directors when a matter particularly affecting that member is under consideration. 4. The Board of Directors shall establish procedures whereby the Board can hold an electronic meeting or vote on a matter without holding a meeting. Article 28 Voting 1. The total voting power of each member shall consist of the sum of its basic votes, share votes and, in the case of a Founding Member, its Founding Member votes. (i) The basic votes of each member shall be the number of votes that results from the equal distribution among all the members of twelve (12) per cent of the aggregate 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE sum of the basic votes, share votes and Founding Member votes of all the members. (ii) The number of the share votes of each member shall be equal to the number of shares of the capital stock of the Bank held by that member. (iii) Each Founding Member shall be allocated six hundred (600) Founding Member votes. In the event a member fails to pay any part of the amount due in respect of its obligations in relation to paid-in shares under Article 6, the number of share votes to be exercised by the member shall, as long as such failure continues, be reduced proportionately, by the percentage which the amount due and unpaid represents of the total par value of paid-in shares subscribed to by that member. 2. In voting in the Board of Governors, each Governor shall be entitled to cast the votes of the member he represents. (i) Except as otherwise expressly provided in this Agreement, all matters before the Board of Governors shall be decided by a majority of the votes cast. (ii) A Super Majority vote of the Board of Governors shall require an affirmative vote of two-thirds of the total number of Governors, representing not less than three-fourths of the total voting power of the members. (iii) A Special Majority vote of the Board of Governors shall require an affirmative vote of a majority of the total number of Governors, representing not less than a majority of the total voting power of the members. 3. In voting in the Board of Directors, each Director shall be entitled to cast the number of votes to which the Governors who elected him are entitled and those to which any Governors who have assigned their votes to him, pursuant to Schedule B, are entitled. (i) A Director entitled to cast the votes of more than one member may cast the votes for those members separately. (ii) Except as otherwise expressly provided in this Agreement, all matters before the Board of Directors shall be decided by a majority of the votes cast. Article 29 The President 1. The Board of Governors, through an open, transparent and merit-based process, shall elect a president of the Bank by a Super Majority vote as provided in Article 28. He shall be a national of a regional member country. The President, while holding office, shall not be a Governor or a Director or an Alternate for either. 2. The term of office of the President shall be five (5) years. He may be re-elected once. The President may be suspended or removed from office when the Board of Governors so decides by a Super Majority vote as provided in Article 28. (a) If the office of the President for any reason becomes vacant during his term, the Board of Governors shall appoint an Acting President for a temporary period or elect a new President, in accordance with paragraph 1 of this Article. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 3. The President shall be Chairman of the Board of Directors but shall have no vote, except a deciding vote in case of an equal division. He may participate in meetings of the Board of Governors but shall not vote. 4. The President shall be the legal representative of the Bank. He shall be chief of the staff of the Bank and shall conduct, under the direction of the Board of Directors, the current business of the Bank. Article 30 Officers and Staff of the Bank 1. One or more Vice-Presidents shall be appointed by the Board of Directors on the recommendation of the President, on the basis of an open, transparent and merit-based process. A Vice-President shall hold office for such term, exercise such authority and perform such functions in the administration of the Bank, as may be determined by the Board of Directors. In the absence or incapacity of the President, a Vice-President shall exercise the authority and perform the functions of the President. 2. The President shall be responsible for the organization, appointment and dismissal of the officers and staff in accordance with regulations adopted by the Board of Directors, with the exception of Vice-Presidents to the extent provided in paragraph 1 above. 3. In appointing officers and staff and recommending VicePresidents, the President shall, subject to the paramount importance of securing the highest standards of efficiency and technical competence, pay due regard to the recruitment of personnel on as wide a regional geographical basis as possible. Article 31 The International Character of the Bank 1. The Bank shall not accept Special Funds, loans or assistance that may in any way prejudice, limit, deflect or otherwise alter its purpose or functions. 2. The Bank, its President, officers and staff shall not interfere in the political affairs of any member, nor shall they be influenced in their decisions by the political character of the member concerned. Only economic considerations shall be relevant to their decisions. Such considerations shall be weighed impartially in order to achieve and carry out the purpose and functions of the Bank. 3. The President, officers and staff of the Bank, in the discharge of their offices, owe their duty entirely to the Bank and to no other authority. Each member of the Bank shall respect the international character of this duty and shall refrain from all attempts to influence any of them in the discharge of their duties. CHAPTER VI GENERAL PROVISIONS Article 32 Offices of the Bank 1. The principal office of the Bank shall be located in Beijing, People’s Republic of China. 2. The Bank may establish agencies or offices elsewhere. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE Article 33 Channel of Communication; Depositories 1. Each member shall designate an appropriate official entity with which the Bank may communicate in connection with any matter arising under this Agreement. 2. Each member shall designate its central bank, or such other institution as may be agreed upon with the Bank, as a depository with which the Bank may keep its holdings of currency of that member as well as other assets of the Bank. 3. The Bank may hold its assets with such depositories as the Board of Directors shall determine. Article 34 Reports and Information 1. The working language of the Bank shall be English, and the Bank shall rely on the English text of this Agreement for all decisions and for interpretations under Article 54. 2. Members shall furnish the Bank with such information it may reasonably request of them in order to facilitate the performance of its functions. 3. The Bank shall transmit to its members an annual report containing an audited statement of its accounts and shall publish such report. It shall also transmit quarterly to its members a summary statement of its financial position and a profit and loss statement showing the results of its operations. 4. The Bank shall establish a policy on the disclosure of information in order to promote transparency in its operations. The Bank may publish such reports as it deems desirable in the carrying out of its purpose and functions. Article 35 Cooperation with Members and International Organizations 1. The Bank shall work in close cooperation with all its members, and, in such manner as it may deem appropriate within the terms of this Agreement, with other international financial institutions, and international organizations concerned with the economic development of the region or the Bank’s operational areas. 2. The Bank may enter into arrangements with such organizations for purposes consistent with this Agreement, with the approval of the Board of Directors. Article 36 References 1. References in this Agreement to Article or Schedule refer to Articles and Schedules of this Agreement, unless otherwise specified. 2. References in this Agreement to a specific gender shall be equally applicable to any gender. CHAPTER VII WITHDRAWAL AND SUSPENSION OF MEMBERS Article 37 Withdrawal of Membership 1. Any member may withdraw from the Bank at any time by delivering a notice in writing to the Bank at its principal office. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 2. Withdrawal by a member shall become effective, and its membership shall cease, on the date specified in its notice but in no event less than six (6) months after the date that notice has been received by the Bank. However, at any time before the withdrawal becomes finally effective, the member may notify the Bank in writing of the cancellation of its notice of intention to withdraw. 3. A withdrawing member shall remain liable for all direct and contingent obligations to the Bank to which it was subject at the date of delivery of the withdrawal notice. If the withdrawal becomes finally effective, the member shall not incur any liability for obligations resulting from operations of the Bank effected after the date on which the withdrawal notice was received by the Bank. Article 38 Suspension of Membership 1. If a member fails to fulfill any of its obligations to the Bank, the Board of Governors may suspend such member by a Super Majority vote as provided in Article 28. 2. The member so suspended shall automatically cease to be a member one (1) year from the date of its suspension, unless the Board of Governors decides by a Super Majority vote as provided in Article 28 to restore the member to good standing. 3. While under suspension, a member shall not be entitled to exercise any rights under this Agreement, except the right of withdrawal, but shall remain subject to all its obligations. Article 39 Settlement of Accounts 1. After the date on which a country ceases to be a member, it shall remain liable for its direct obligations to the Bank and for its contingent liabilities to the Bank so long as any part of the loans, guarantees, equity investments or other forms of financing under paragraph 2 (vi) of Article 11 (hereinafter, other financing) contracted before it ceased to be a member is outstanding, but it shall not incur liabilities with respect to loans, guarantees, equity investments or other financing entered into thereafter by the Bank nor share either in the income or the expenses of the Bank. 2. At the time a country ceases to be a member, the Bank shall arrange for the repurchase of such country’s shares by the Bank as a part of the settlement of accounts with such country in accordance with the provisions of paragraphs 3 and 4 of this Article. For this purpose, the repurchase price of the shares shall be the value shown by the books of the Bank on the date the country ceases to be a member. 3. The payment for shares repurchased by the Bank under this Article shall be governed by the following conditions: (i) Any amount due to the country concerned for its shares shall be withheld so long as that country, its central bank or any of its agencies, instrumentalities or political subdivisions remains liable, as borrower, guarantor or other contracting party with respect to equity investment or other financing, to the Bank and such amount may, at the option of the Bank, be applied on any such liability as it matures. No amount shall be withheld on account of the contingent liability of the country for future calls on its subscription for shares in 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE accordance with paragraph 3 of Article 6. In any event, no amount due to a member for its shares shall be paid until six (6) months after the date on which the country ceases to be a member. (ii) Payments for shares may be made from time to time, upon surrender of the corresponding stock certificates by the country concerned, to the extent by which the amount due as the repurchase price in accordance with paragraph 2 of this Article exceeds the aggregate amount of liabilities, on loans, guarantees, equity investments and other financing referred to in sub-paragraph (i) of this paragraph, until the former member has received the full repurchase price. (iii) Payments shall be made in such available currencies as the Bank determines, taking into account its financial position. (iv) If losses are sustained by the Bank on any loans, guarantees, equity investments or other financing which were outstanding on the date when a country ceased to be a member and the amount of such losses exceeds the amount of the reserve provided against losses on that date, the country concerned shall repay, upon demand, the amount by which the repurchase price of its shares would have been reduced if the losses had been taken into account when the repurchase price was determined. In addition, the former member shall remain liable on any call for unpaid subscriptions in accordance with paragraph 3 of Article 6, to the same extent that it would have been required to respond if the impairment of capital had occurred and the call had been made at the time the repurchase price of its shares was determined. 4. If the Bank terminates its operations pursuant to Article 41 within six (6) months of the date upon which any country ceases to be a member, all rights of the country concerned shall be determined in accordance with the provisions of Articles 41 to 43. Such country shall be considered as still a member for purposes of such Articles but shall have no voting rights. CHAPTER VIII SUSPENSION AND TERMINATION OF OPERATIONS OF THE BANK Article 40 Temporary Suspension of Operations In an emergency, the Board of Directors may temporarily suspend operations in respect of new loans, guarantees, equity investment and other forms of financing under sub-paragraph 2 (vi) of Article 11, pending an opportunity for further consideration and action by the Board of Governors. Article 41 Termination of Operations 1. The Bank may terminate its operations by a resolution of the Board of Governors approved by a Super Majority vote as provided in Article 28. 2. After such termination, the Bank shall forthwith cease all activities, except those incident to the orderly realization, conservation and preservation of its assets and settlement of its obligations. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE Article 42 Liability of Members and Payments of Claims 1. In the event of termination of the operation of the Bank, the liability of all members for uncalled subscriptions to the capital stock of the Bank and in respect of the depreciation of their currencies shall continue until all claims of creditors, including all contingent claims, shall have been discharged. 2. All creditors holding direct claims shall first be paid out of the assets of the Bank and then out of payments to the Bank or unpaid or callable subscriptions. Before making any payments to creditors holding direct claims, the Board of Directors shall make such arrangements as are necessary, in its judgment, to ensure a pro rata distribution among holders of direct and contingent claims. Article 43 Distribution of Assets 1. No distribution of assets shall be made to members on account of their subscriptions to the capital stock of the Bank until: (i) all liabilities to creditors have been discharged or provided for; and (ii) the Board of Governors has decided, by a Super Majority vote as provided in Article 28, to make such distribution. 2. Any distribution of the assets of the Bank to the members shall be in proportion to the capital stock held by each member and shall be effected at such times and under such conditions as the Bank shall deem fair and equitable. The shares of assets distributed need not be uniform as to type of asset. No member shall be entitled to receive its share in such a distribution of assets until it has settled all of its obligations to the Bank. 3. Any member receiving assets distributed pursuant to this Article shall enjoy the same rights with respect to such assets as the Bank enjoyed prior to their distribution. CHAPTER IX STATUS, IMMUNITIES, PRIVILEGES AND EXEMPTIONS Article 44 Purposes of Chapter 1. To enable the Bank to fulfill its purpose and carry out the functions entrusted to it, the status, immunities, privileges and exemptions set forth in this Chapter shall be accorded to the Bank in the territory of each member. 2. Each member shall promptly take such action as is necessary to make effective in its own territory the provisions set forth in this Chapter and shall inform the Bank of the action which it has taken. Article 45 Status of the Bank 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE The Bank shall possess full juridical personality and, in particular, the full legal capacity: (i) to contract; (ii) to acquire, and dispose of, immovable and movable property; (iii) to institute and respond to legal proceedings; and (iv) to take such other action as may be necessary or useful for its purpose and activities. Article 46 Immunity from Judicial Proceedings 1. The Bank shall enjoy immunity from every form of legal process, except in cases arising out of or in connection with the exercise of its powers to raise funds, through borrowings or other means, to guarantee obligations, or to buy and sell or underwrite the sale of securities, in which cases actions may be brought against the Bank only in a court of competent jurisdiction in the territory of a country in which the Bank has an office, or has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. 2. Notwithstanding the provisions of paragraph 1 of this Article, no action shall be brought against the Bank by any member, or by any agency or instrumentality of a member, or by any entity or person directly or indirectly acting for or deriving claims from a member or from any agency or instrumentality of a member. Members shall have recourse to such special procedures for the settlement of controversies between the Bank and its members as may be prescribed in this Agreement, in the by-laws and regulations of the Bank, or in the contracts entered into with the Bank. 3. Property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank. Article 47 Immunity of Assets and Archives 1. Property and assets of the Bank, wheresoever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or legislative action. 2. The archives of the Bank, and, in general, all documents belonging to it, or held by it, shall be inviolable, wheresoever located and by whomsoever held. Article 48 Freedom of Assets from Restrictions To the extent necessary to carry out the purpose and functions of the Bank effectively, and subject to the provisions of this Agreement, all property and assets of the Bank shall be free from restrictions, regulations, controls and moratoria of any nature. Article 49 Privilege for Communications Official communications of the Bank shall be accorded by each member the same treatment that it accords to the official communications of any other member. Article 50 Immunities and Privileges of Officers and Employees 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE All Governors, Directors, Alternates, the President, Vice-Presidents and other officers and employees of the Bank, including experts and consultants performing missions or services for the Bank: (i) shall be immune from legal process with respect to acts performed by them in their official capacity, except when the Bank waives the immunity and shall enjoy inviolability of all their official papers, documents and records; (ii) where they are not local citizens or nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations, and the same facilities as regards exchange regulations, as are accorded by members to the representatives, officials and employees of comparable rank of other members; and (iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members. Article 51 Exemption from Taxation 1. The Bank, its assets, property, income and its operations and transactions pursuant to this Agreement, shall be exempt from all taxation and from all customs duties. The Bank shall also be exempt from any obligation for the payment, withholding or collection of any tax or duty. 2. No tax of any kind shall be levied on or in respect of salaries, emoluments and expenses, as the case may be, paid by the Bank to Directors, Alternate Directors, the President, Vice-Presidents and other officers or employees of the Bank, including experts and consultants performing missions or services for the Bank, except where a member deposits with its instrument of ratification, acceptance, or approval a declaration that such member retains for itself and its political subdivisions the right to tax salaries, and emoluments , as the case may be, paid by the Bank to citizens or nationals of such member. 3. No tax of any kind shall be levied on any obligation or security issued by the Bank, including any dividend or interest thereon, by whomsoever held: (i) which discriminates against such obligation or security solely because it is issued by the Bank; or (ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Bank. 4. No tax of any kind shall be levied on any obligation or security guaranteed by the Bank, including any dividend or interest thereon, by whomsoever held: (i) which discriminates against such obligation or security solely because it is guaranteed by the Bank; or 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE (ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Bank. Article 52 Waivers 1. The Bank at its discretion may waive any of the privileges, immunities and exemptions conferred under this Chapter in any case or instance, in such manner and upon such conditions as it may determine to be appropriate in the best interests of the Bank. CHAPTER X AMENDMENT, INTERPRETATION AND ARBITRATION Article 53 Amendments 1. This Agreement may be amended only by a resolution of the Board of Governors approved by a Super Majority vote as provided in Article 28. 2. Notwithstanding the provisions of paragraph 1 of this Article, the unanimous agreement of the Board of Governors shall be required for the approval of any amendment modifying: (i) the right to withdraw from the Bank; (ii) the limitations on liability provided in paragraphs 3 and 4 of Article 7; and (iii) the rights pertaining to purchase of capital stock provided in paragraph 4 of Article 5. 3. Any proposal to amend this Agreement, whether emanating from a member or the Board of Directors, shall be communicated to the Chairman of the Board of Governors, who shall bring the proposal before the Board of Governors. When an amendment has been adopted, the Bank shall so certify in an official communication addressed to all members. Amendments shall enter into force for all members three (3) months after the date of the official communication unless the Board of Governors specifies therein a different period. Article 54 Interpretation 1. Any question of interpretation or application of the provisions of this Agreement arising between any member and the Bank, or between two or more members of the Bank, shall be submitted to the Board of Directors for decision. If there is no Director of its nationality on that Board, a member particularly affected by the question under consideration shall be entitled to direct representation in the Board of Directors during such consideration; the representative of such member shall, however, have no vote. Such right of representation shall be regulated by the Board of Governors. 2. In any case where the Board of Directors has given a decision under paragraph 1 of this Article, any member may require that the question be referred to the Board of Governors, whose decision shall be final. Pending the decision of the Board of Governors, the Bank may, so far as it deems necessary, act on the basis of the decision of the Board of Directors. Article 55 Arbitration 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE If a disagreement should arise between the Bank and a country which has ceased to be a member, or between the Bank and any member after adoption of a resolution to terminate the operations of the Bank, such disagreement shall be submitted to arbitration by a tribunal of three arbitrators. One of the arbitrators shall be appointed by the Bank, another by the country concerned, and the third, unless the parties otherwise agree, by the President of the International Court of Justice or such other authority as may have been prescribed by regulations adopted by the Board of Governors. A majority vote of the arbitrators shall be sufficient to reach a decision which shall be final and binding upon the parties. The third arbitrator shall be empowered to settle all questions of procedure in any case where the parties are in disagreement with respect thereto. Article 56 Approval Deemed Given Whenever the approval of any member is required before any act may be done by the Bank except under paragraph 2 of Article 53, approval shall be deemed to have been given unless the member presents an objection within such reasonable period as the Bank may fix in notifying the member of the proposed act. CHAPTER XI FINAL PROVISIONS Article 57 Signature and Deposit 1. This Agreement, deposited with the Government of the People’s Republic of China (hereinafter called the “Depository”), shall remain open until December 31, 2015 for signature by the Governments of countries whose names are set forth in Schedule A. 2. The Depository shall send certified copies of this Agreement to all the Signatories and other countries which become members of the Bank. Article 58 Ratification, Acceptance or Approval 1. This Agreement shall be subject to ratification, acceptance or approval by the Signatories. Instruments of ratification, acceptance or approval shall be deposited with the Depository not later than December 31, 2016, or if necessary, until such later date as may be decided by the Board of Governors by a Special Majority vote as provided in Article 28. The Depository shall duly notify the other Signatories of each deposit and the date thereof. 2. A Signatory whose instrument of ratification, acceptance or approval is deposited before the date on which this Agreement enters into force, shall become a member of the Bank, on that date. Any other Signatory which complies with the provisions of the preceding paragraph, shall become a member of the Bank on the date on which its instrument of ratification, acceptance or approval is deposited. Article 59 Entry into Force This Agreement shall enter into force when instruments of ratification, acceptance or approval have been deposited by at least ten (10) Signatories whose initial subscriptions, as set forth in Schedule A to this Agreement, in the aggregate comprise not less than fifty (50) per cent of total of such subscriptions. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE Article 60 Inaugural Meeting and Commencement of Operations 1. As soon as this Agreement enters into force, each member shall appoint a Governor, and the Depository shall call the inaugural meeting of the Board of Governors. 2. At its inaugural meeting, the Board of Governors: (i) shall elect the President; (ii) shall elect the Directors of the Bank in accordance with paragraph 1 of Article 25, provided that the Board of Governors may decide to elect fewer Directors for an initial period shorter than two years in consideration of the number of members and Signatories which have not yet become members; (iii) shall make arrangements for the determination of the date on which the Bank shall commence its operations; and (iv) shall make such other arrangements as necessary to prepare for the commencement of the Bank’s operations. 3. The Bank shall notify its members of the date of the commencement of its operations. DONE at Beijing, People’s Republic of China on June 29, 2015, in a single original deposited in the archives of the Depository, whose English, Chinese and French texts are equally authentic. SCHEDULE A Initial Subscriptions to the Authorized Capital Stock for Countries Which May Become Members in Accordance with Article 58 PART A. REGIONAL MEMBERS Australia Azerbaijan Bangladesh Brunei Darussalam Cambodia China Georgia India Indonesia Iran Israel Jordan Kazakhstan Korea Kuwait Kyrgyz Republic Lao People’s Democratic Republic Malaysia 2015-2016-2017 Number of Shares Capital Subscription (in million $) 36,912 2,541 6,605 524 623 297,804 539 83,673 33,607 15,808 7,499 1,192 7,293 37,388 5,360 268 430 3,691.2 254.1 660.5 52.4 62.3 29,780.4 53.9 8,367.3 3,360.7 1,580.8 749.9 119.2 729.3 3,738.8 536.0 26.8 43.0 1,095 109.5 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE PART A. REGIONAL MEMBERS Maldives Mongolia Myanmar Nepal New Zealand Oman Pakistan Philippines Qatar Russia Saudi Arabia Singapore Sri Lanka Tajikistan Thailand Turkey United Arab Emirates Uzbekistan Vietnam Unallocated TOTAL PART B. NON-REGIONAL MEMBERS Austria Brazil Denmark Egypt Finland France Germany Iceland Italy Luxembourg Malta Netherlands Norway Poland Portugal South Africa Spain Sweden Switzerland United Kingdom Unallocated TOTAL GRAND TOTAL 2015-2016-2017 Number of Shares Capital Subscription (in million $) 72 411 2,645 809 4,615 2,592 10,341 9,791 6,044 65,362 25,446 2,500 2,690 309 14,275 26,099 11,857 2,198 6,633 7.2 41.1 264.5 80.9 461.5 259.2 1,034.1 979.1 604.4 6,536.2 2,544.6 250.0 269.0 30.9 1,427.5 2,609.9 1,185.7 219.8 663.3 16,150 750,000 1,615.0 75,000.0 Number of Shares Capital Subscription (in million $) 5,008 31,810 3,695 6,505 3,103 33,756 44,842 176 25,718 697 136 10,313 5,506 8,318 650 5,905 17,615 6,300 7,064 30,547 500.8 3,181.0 369.5 650.5 310.3 3,375.6 4,484.2 17.6 2,571.8 69.7 13.6 1,031.3 550.6 831.8 65.0 590.5 1,761.5 630.0 706.4 3,054.7 2,336 250,000 1,000,000 233.6 25,000.0 100,000.0 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE SCHEDULE B ELECTION OF DIRECTORS The Board of Governors shall prescribe rules for the conduct of each election of Directors, in accordance with the following provisions. 1. Constituencies. Each Director shall represent one or more members in a constituency. The total aggregate voting power of each constituency shall consist of the votes which the Director is entitled to cast under paragraph 3 of Article 28. 2. Constituency Voting Power. For each election, the Board of Governors shall establish a Minimum Percentage for constituency voting power for Directors to be elected by Governors representing regional members (Regional Directors) and a Minimum Percentage for constituency voting power for Directors to be elected by Governors representing non-regional members (Non-Regional Directors). (a) The Minimum Percentage for Regional Directors shall be set as a percentage of the total votes eligible to be cast in the election by the Governors representing regional members (Regional Governors). The initial Minimum Percentage for Regional Directors shall be 6%. (b) The Minimum Percentage for Non-Regional Directors shall be set as a percentage of the total votes eligible to be cast in the election by the Governors representing non-regional members (Non-Regional Governors). The initial Minimum Percentage for Non-Regional Directors shall be 15%. 3. Adjustment Percentage. In order to adjust voting power across constituencies when subsequent rounds of balloting are required under paragraph 7 below, the Board of Governors shall establish, for each election, an Adjustment Percentage for Regional Directors and an Adjustment Percentage for Non-Regional Directors. Each Adjustment Percentage shall be higher than the corresponding Minimum Percentage. (a) The Adjustment Percentage for Regional Directors shall be set as a percentage of the total votes eligible to be cast in the election by the Regional Governors. The initial Adjustment Percentage for Regional Directors shall be 15%. (b) The Adjustment Percentage for Non-Regional Directors shall be set as a percentage of the total votes eligible to be cast in the election by the Non-Regional Governors. The initial Adjustment Percentage for Non-Regional Directors shall be 60%. 4. Number of Candidates. For each election, the Board of Governors shall establish the number of Regional Directors and Non-Regional Directors to be elected, in light of its decisions on the size and composition of the Board of Directors pursuant to paragraph 2 of Article 25. (a) The initial number of Regional Directors shall be nine. (b) The initial number of Non-Regional Directors shall be three. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 5. Nominations. Each Governor may only nominate one person. Candidates for the office of Regional Director shall be nominated by Regional Governors. Candidates for the office of Non-Regional Director shall be nominated by Non-Regional Governors. 6. Voting. Each Governor may vote for one candidate, casting all of the votes to which the member appointing him is entitled under paragraph 1 of Article 28. The election of Regional Directors shall be by ballot of Regional Governors. The election of Non-Regional Directors shall be by ballot of NonRegional Governors. 7. First Ballot. On the first ballot, candidates receiving the highest number of votes, up to the number of Directors to be elected, shall be elected as Directors, provided that, to be elected, a candidate shall have received a sufficient number of votes to reach the applicable Minimum Percentage. (a) If the required number of Directors is not elected on the first ballot, and the number of candidates was the same as the number of Directors to be elected, the Board of Governors shall determine the subsequent actions to complete the election of Regional Directors or the election of Non-Regional Directors, as the case may be. 8. Subsequent Ballots. If the required number of Directors is not elected on the first ballot, and there were more candidates than the number of Directors to be elected on the ballot, there shall be subsequent ballots, as necessary. For subsequent ballots: (a) The candidate receiving the lowest number of votes in the preceding ballot shall not be a candidate in the next ballot. (b) Votes shall be cast only by: (i) Governors who voted in the preceding ballot for a candidate who was not elected; and (ii) Governors whose votes for a candidate who was elected are deemed to have raised the votes for that candidate above the applicable Adjustment Percentage under (c) below. (c) The votes of all the Governors who cast votes for each candidate shall be added in descending order of number, until the number of votes representing the applicable Adjustment Percentage has been exceeded. Governors whose votes were counted in that calculation shall be deemed to have cast all their votes for that Director, including the Governor whose votes brought the total over the Adjustment Percentage. The remaining Governors whose votes were not counted in that calculation shall be deemed to have raised the candidate’s total votes above the Adjustment Percentage, and the votes of those Governors shall not count towards the election of that candidate. These remaining Governors may vote in the next ballot. (d) If in any subsequent ballot, only one Director remains to be elected, the Director may be elected by a simple majority of the remaining votes. All such remaining votes shall be deemed to have counted towards the election of the last Director. 2015-2016-2017 Chapter 33: Budget Implementation Act, 2017, No. 2 SCHEDULE 9. Assignment of Votes. Any Governor who does not participate in voting for the election or whose votes do not contribute to the election of a Director may assign the votes to which he is entitled to an elected Director, provided that such Governor shall first have obtained the agreement of all those Governors who have elected that Director to such assignment. 10. Founding Member Privileges. The nomination and voting by Governors for Directors and the appointment of Alternate Directors by Directors shall respect the principle that each Founding Member shall have the privilege to designate the Director or an Alternate Director in its constituency permanently or on a rotating basis. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 25 An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) ASSENTED TO DECEMBER 12, 2017 BILL S-3 SUMMARY This enactment amends the Indian Act to provide new entitlements to registration in the Indian Register in response to the decision in Descheneaux c. Canada (Procureur général) that was rendered by the Superior Court of Quebec on August 3, 2015, and to provide that the persons who become so entitled also have the right to have their name entered in a Band List maintained by the Department of Indian Affairs and Northern Development. This enactment requires the Minister of Indian and Northern Affairs to initiate consultations on issues related to registration and band membership and to conduct reviews on sex-based inequities under the Indian Act, and to report to Parliament on those activities. ii 64-65-66 ELIZABETH II CHAPTER 25 An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) [Assented to 12th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. I-5 Indian Act 1 Section 5 of the Indian Act is amended by adding the following after subsection (5): Unknown or unstated parentage (6) If a parent, grandparent or other ancestor of a person in respect of whom an application is made is unknown — or is unstated on a birth certificate that, if the parent, grandparent or other ancestor were named on it, would help to establish the person’s entitlement to be registered — the Registrar shall, without being required to establish the identity of that parent, grandparent or other ancestor, determine, after considering all of the relevant evidence, whether that parent, grandparent or other ancestor is, was or would have been entitled to be registered. In making the determination, the Registrar shall rely on any credible evidence that is presented by the applicant in support of the application or that the Registrar otherwise has knowledge of and shall draw from it every reasonable inference in favour of the person in respect of whom the application is made. No presumption (7) For greater certainty, if the identity of a parent, grandparent or other ancestor of an applicant is unknown or unstated on a birth certificate, there is no presumption that this parent, grandparent or other ancestor 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Sections 1-2 is not, was not or would not have been entitled to be registered. 2010, c. 18, s. 2(2) 2 (1) Paragraph 6(1)(a) of the Act is replaced by the following: (a) that person was registered or entitled to be registered immediately before April 17, 1985; 2010, c. 18, s. 2(3) (2) Paragraph 6(1)(c) of the Act is replaced by the following: (c) the name of that person was omitted or deleted from the Indian Register, or from a band list before September 4, 1951, under subparagraph 12(1)(a)(iv), paragraph 12(1)(b) or subsection 12(2) or under subparagraph 12(1)(a)(iii) pursuant to an order made under subsection 109(2), as each provision read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as any of those provisions; (c.01) that person meets the following conditions: (i) the name of one of their parents was, as a result of that parent’s mother’s marriage, omitted or deleted from the Indian Register on or after September 4, 1951 under subparagraph 12(1)(a)(iii) pursuant to an order made under subsection 109(2), as each provision read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as either of those provisions, (ii) their other parent is not entitled to be registered or, if that other parent is no longer living, was not at the time of death entitled to be registered or was not an Indian at that time if the death occurred before September 4, 1951, and (iii) they were born before April 17, 1985, whether or not their parents were married to each other at the time of the birth, or they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; (c.02) that person meets the following conditions: (i) the name of one of their parents was omitted or deleted from the Indian Register on or after September 4, 1951 under subparagraph 12(1)(a)(iv) or subsection 12(2), as each provision read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as either of those provisions, 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Section 2 (ii) their other parent is not entitled to be registered or, if that other parent is no longer living, was not at the time of death entitled to be registered or was not an Indian at that time if the death occurred before September 4, 1951, and (iii) they were born before April 17, 1985, whether or not their parents were married to each other at the time of the birth, or they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; (3) Subsection 6(1) of the Act is amended by adding the following after paragraph (c.1): (c.2) that person meets the following conditions: (i) one of their parents is entitled to be registered under paragraph (c.1) or, if that parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which that paragraph came into force, had he or she not died, and (ii) they were born before April 17, 1985, whether or not their parents were married to each other at the time of the birth, or they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; (c.3) that person meets the following conditions: (i) they were born female during the period beginning on September 4, 1951 and ending on April 16, 1985 and their parents were not married to each other at the time of the birth, (ii) their father was at the time of that person’s birth entitled to be registered or, if he was no longer living at that time, was at the time of death entitled to be registered, and (iii) their mother was not at the time of that person’s birth entitled to be registered; (c.4) that person meets the following conditions: (i) one of their parents is entitled to be registered under paragraph (c.2) or (c.3) or, if that parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which that paragraph came into force, had he or she not died, 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Section 2 (ii) their other parent is not entitled to be registered or, if that other parent is no longer living, was not at the time of death entitled to be registered or was not an Indian at that time if the death occurred before September 4, 1951, and (iii) they were born before April 17, 1985, whether or not their parents were married to each other at the time of the birth, or they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; (c.5) that person meets the following conditions: (i) one of their parents is entitled to be registered under paragraph (c.4) and one of that parent’s parents is entitled to be registered under paragraph (c.3) or, if that parent or parent’s parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which paragraph (c.4) or (c.3), as the case may be, came into force, had he or she not died, (ii) their other parent is not entitled to be registered or, if that other parent is no longer living, was not at the time of death entitled to be registered or was not an Indian at that time if the death occurred before September 4, 1951, and (iii) they were born before April 17, 1985, whether or not their parents were married to each other at the time of the birth, or they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; (c.6) that person meets the following conditions: (i) one of their parents is entitled to be registered under paragraph (c.02) — or, if that parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which that paragraph came into force, had he or she not died — and the name of one of that parent’s parents was omitted or deleted from the Indian Register on or after September 4, 1951 under subsection 12(2), as that provision read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as that provision, (ii) their other parent is not entitled to be registered or, if that other parent is no longer living, was not at the time of death entitled to be registered or was not an Indian at that time if the death occurred before September 4, 1951, and (iii) they were born before April 17, 1985, whether or not their parents were married to each other at 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Sections 2-2.1 the time of the birth, or they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; R.S., c. 32 (1st Supp.), s. 4 (4) Paragraph 6(1)(f) of the Act is replaced by the following: (f) both parents of that person are entitled to be registered under this section or, if the parents are no longer living, were so entitled at the time of death. R.S., c. 32 (1st Supp.), s. 4 (5) Subsection 6(2) of the Act is replaced by the following: Persons entitled to be registered (2) Subject to section 7, a person is entitled to be registered if one of their parents is entitled to be registered under subsection (1) or, if that parent is no longer living, was so entitled at the time of death. Clarification (2.1) A person who is entitled to be registered under both paragraph (1)(f) and any other paragraph of subsection (1) is considered to be entitled to be registered under that other paragraph only, and a person who is entitled to be registered under both subsection (2) and any paragraph of subsection (1) is considered to be entitled to be registered under that paragraph only. (6) Subsection 6(3) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) a person who is described in paragraph (1)(c.01) or (c.02) or any of paragraphs (1) (c.2) to (c.6) and who was no longer living on the day on which that paragraph came into force is deemed to be entitled to be registered under that paragraph. 2.1 (1) Paragraphs 6(1)(c.01) to (c.2) of the Act are repealed. (2) Paragraphs 6(1)(c.4) to (c.6) of the Act are repealed. (3) Paragraph 6(1)(c) of the Act is renumbered as paragraph (a.1) and is repositioned accordingly. (4) Paragraph 6(1)(c.3) of the Act is renumbered as paragraph (a.2) and is repositioned accordingly. 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Sections 2.1-3 (5) Subsection 6(1) of the Act is amended by adding the following after paragraph (a.2): (a.3) that person is a direct descendant of a person who is, was or would have been entitled to be registered under paragraph (a.1) or (a.2) and (i) they were born before April 17, 1985, whether or not their parents were married to each other at the time of the birth, or (ii) they were born after April 16, 1985 and their parents were married to each other at any time before April 17, 1985; (6) The portion of subsection 6(3) of the Act before paragraph (a) is replaced by the following: Deeming provision (3) For the purposes of paragraphs (1)(a.3) and (f) and subsection (2), (7) Paragraph 6(3)(b) of the Act is replaced by the following: (b) a person who is described in paragraph (1)(a.1), (d), (e) or (f) or subsection (2) and who was no longer living on April 17, 1985 is deemed to be entitled to be registered under that paragraph or subsection; and (8) Paragraph 6(3)(c) of the Act is repealed. (9) Paragraph 6(3)(d) of the Act is replaced by the following: (d) a person who is described in paragraph (1)(a.2) or (a.3) and who was no longer living on the day on which that paragraph came into force is deemed to be entitled to be registered under that paragraph. 3 (1) Subsection 11(3) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) a person who would have been entitled to be registered under any of paragraphs 6(1)(c.01) to (c.6), had they been living on the day on which that paragraph came into force, and who would otherwise have been entitled, on that day, to have their name entered in a Band List, is deemed to be entitled to have their name so entered; and 2010, c. 18, s. 3 (2) Subsection 11(3.1) of the Act is replaced by the following: 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Section 3 Additional membership rules — paragraphs 6(1)(c.01) to (c.6) (3.1) A person is entitled to have their name entered in a Band List that is maintained in the Department for a band if (a) they are entitled to be registered under paragraph 6(1)(c.01) and one of their parents ceased to be a member of that band by reason of the circumstances set out in subparagraph 6(1)(c.01)(i); (b) they are entitled to be registered under paragraph 6(1)(c.02) and one of their parents ceased to be a member of that band by reason of the circumstances set out in subparagraph 6(1)(c.02)(i); (c) they are entitled to be registered under paragraph 6(1)(c.1) and their mother ceased to be a member of that band by reason of the circumstances set out in subparagraph 6(1)(c.1)(i); (d) they are entitled to be registered under paragraph 6(1)(c.2) and one of their parents is entitled to be registered under paragraph 6(1)(c.1) and to have his or her name entered in the Band List or, if that parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which paragraph 6(1)(c.1) came into force, had he or she not died; (e) they are entitled to be registered under paragraph 6(1)(c.3) and their father is entitled to have his name entered in the Band List or, if their father is no longer living, was so entitled at the time of death; (f) they are entitled to be registered under paragraph 6(1)(c.4) and one of their parents is entitled to be registered under paragraph 6(1)(c.2) and to have his or her name entered in the Band List or, if that parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which paragraph 6(1)(c.2) came into force, had he or she not died; (g) they are entitled to be registered under paragraph 6(1)(c.4) and their mother is entitled to be registered under paragraph 6(1)(c.3) and to have her name entered in the Band List or, if their mother is no longer living, was so entitled at the time of death or would have been so entitled on the day on which paragraph 6(1)(c.3) came into force, had she not died; (h) they are entitled to be registered under paragraph 6(1)(c.5) and one of their parents is entitled to be registered under paragraph 6(1)(c.4) and to have his or her name entered in the Band List or, if that parent is 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Sections 3-3.1 no longer living, was so entitled at the time of death or would have been so entitled on the day on which paragraph 6(1)(c.4) came into force, had he or she not died; or (i) they are entitled to be registered under paragraph 6(1)(c.6) and one of their parents is entitled to be registered under paragraph 6(1)(c.02) and to have his or her name entered in the Band List or, if that parent is no longer living, was so entitled at the time of death or would have been so entitled on the day on which paragraph 6(1)(c.02) came into force, had he or she not died. 3.1 (1) Paragraph 11(1)(c) of the Act is replaced by the following: (c) that person is entitled to be registered under paragraph 6(1)(a.1) and ceased to be a member of that band by reason of the circumstances set out in that paragraph; or (2) Paragraphs 11(3)(a) and (a.1) of the Act are replaced by the following: (a) a person whose name was omitted or deleted from the Indian Register or a Band List in the circumstances set out in paragraph 6(1)(a.1), (d) or (e) and who was no longer living on the first day on which the person would otherwise be entitled to have the person’s name entered in the Band List of the band of which the person ceased to be a member is deemed to be entitled to have the person’s name so entered; (a.1) a person who would have been entitled to be registered under paragraph 6(1)(a.2) or (a.3), had they been living on the day on which that paragraph came into force, and who would otherwise have been entitled, on that day, to have their name entered in a Band List, is deemed to be entitled to have their name so entered; and (3) Paragraphs 11(3.1)(a) to (i) of the Act are replaced by the following: (a) they are entitled to be registered under paragraph 6(1)(a.2) and their father is entitled to have his name entered in the Band List or, if their father is no longer living, was so entitled at the time of death; or (b) they are entitled to be registered under paragraph 6(1)(a.3) and one of their parents, grandparents or other ancestors (i) ceased to be entitled to be a member of that band by reason of the circumstances set out in paragraph 6(1)(a.1), or 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Indian Act Sections 3.1-4 (ii) was not entitled to be a member of that band immediately before April 17, 1985. 3.2 Subsections 64.1(1) and (2) of the Act are replaced by the following: Expenditure of capital moneys with consent 64.1 (1) A person who has received an amount that exceeds $1,000 under paragraph 15(1)(a), as it read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as that paragraph, by reason of ceasing to be a member of a band in the circumstances set out in paragraph 6(1)(a.1), (d) or (e) is not entitled to receive an amount under paragraph 64(1)(a) until such time as the aggregate of all amounts that the person would, but for this subsection, have received under paragraph 64(1)(a) is equal to the amount by which the amount that the person received under paragraph 15(1)(a), as it read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as that paragraph, exceeds $1,000, together with any interest. Expenditure of capital moneys in accordance with bylaws (2) If the council of a band makes a by-law under paragraph 81(1)(p.4) bringing this subsection into effect, a person who has received an amount that exceeds $1,000 under paragraph 15(1)(a), as it read immediately before April 17, 1985, or under any former provision of this Act relating to the same subject matter as that paragraph, by reason of ceasing to be a member of the band in the circumstances set out in paragraph 6(1)(a.1), (d) or (e) is not entitled to receive any benefit afforded to members of the band as individuals as a result of the expenditure of Indian moneys under paragraphs 64(1)(b) to (k), subsection 66(1) or subsection 69(1) until the amount by which the amount so received exceeds $1,000, together with any interest, has been repaid to the band. Transitional Provisions Definition of declaration 4 (1) In sections 5 to 8 and 15, declaration means the declaration made on August 3, 2015 by the Superior Court of Quebec in Descheneaux c. Canada (Procureur général), 2015 QCCS 3555, that paragraphs 6(1)(a), (c) and (f) and subsection 6(2) of the Indian Act are inoperative. 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Transitional Provisions Sections 4-9 Same meaning (2) Words and expressions used in sections 5 to 10.1 have the same meaning as in the Indian Act. Application 5 Sections 6 to 8 apply if the suspension of the declaration expires before the day on which the order referred to in subsection 15(1) is made. Registration continued 6 For greater certainty, subject to any deletions made by the Registrar under subsection 5(3) of the Indian Act, any person who was, immediately before the suspension of the declaration expires, registered and entitled to be registered under paragraph 6(1)(a), (c) or (f) or subsection 6(2) of that Act continues to be registered. Registration entitlements recognized 7 For greater certainty, subject to any deletions made by the Registrar under subsection 5(3) of the Indian Act, for the purposes of paragraph 6(1)(f) and subsection 6(2) of that Act, the Registrar must, in respect of the period beginning on the day after the day on which the suspension of the declaration expires and ending on the day on which the order referred to in subsection 15(1) is made, recognize any entitlements to be registered that existed under paragraph 6(1)(a), (c) or (f) or subsection 6(2) of the Indian Act immediately before the suspension of the declaration expires. Membership continued 8 For greater certainty, any person whose name appeared immediately before the expiry of the suspension of the declaration on a Band List maintained in the Department is not deprived of the right to have their name entered on that Band List by reason only of the declaration. Related Provisions Construction 9 The provisions of the Indian Act that are amended by this Act are to be liberally construed and interpreted so as to remedy any disadvantage to a woman, or her descendants, born before April 17, 1985, with respect to registration under the Indian Act as it read on April 17, 1985, and to enhance the equal treatment of women 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Related Provisions Sections 9-11 and men and their descendants under the Indian Act. No liability 10 For greater certainty, no person or body has a right to claim or receive any compensation, damages or indemnity from Her Majesty in right of Canada, any employee or agent of Her Majesty in right of Canada, or a council of a band, for anything done or omitted to be done in good faith in the exercise of their powers or the performance of their duties, only because (a) a person was not registered, or did not have their name entered in a Band List, immediately before the day on which this section comes into force; and (b) one of the person’s parents is entitled to be registered under paragraph 6(1)(c.01) or (c.02) or any of paragraphs 6(1)(c.2) to (c.6) of the Indian Act. No liability 10.1 For greater certainty, no person or body has a right to claim or receive any compensation, damages or indemnity from Her Majesty in right of Canada, any employee or agent of Her Majesty in right of Canada, or a council of a band, for anything done or omitted to be done in good faith in the exercise of their powers or the performance of their duties, only because (a) a person was not registered, or did not have their name entered in a Band List, immediately before the day on which this section comes into force; and (b) that person or one of the person’s parents, grandparents or other ancestors is entitled to be registered under paragraph 6(1)(a.1), (a.2) or (a.3) of the Indian Act. Consultations and Reports Consultations by Minister 11 (1) The Minister must, within six months after the day on which this Act receives royal assent, initiate consultations with First Nations and other interested parties in order to address, in collaboration with those First Nations and other parties, issues raised by the provisions of the Indian Act related to registration and band membership, including consultations on 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Consultations and Reports Section 11 (a) issues relating to adoption; (b) the 1951 cut-off date for entitlement to registration; (c) the second-generation cut-off rule; (d) unknown or unstated paternity; (e) enfranchisement; (f) the continued federal government role in determining Indian status and band membership; and (g) First Nations’ authorities to determine band membership. Requirement (2) The Minister, the First Nations and the other interested parties must, during the consultations, consider the impact of the Canadian Charter of Rights and Freedoms, of the United Nations Declaration on the Rights of Indigenous Peoples and, if applicable, of the Canadian Human Rights Act, in regard to those issues. Report to Parliament — design of consultation process (3) The Minister must cause to be laid before each House of Parliament, within five months after the day on which this Act receives royal assent, a report on the design of a process by which the Minister is to carry out the consultations described to in subsection (1). Report to Parliament — results of consultations (4) The Minister must cause to be laid before each House of Parliament, within 12 months after the day on which the consultations begin, a report on the progress made as a result of the consultations and collaboration. The report must set out details as to the consultations carried out, including details related to (a) issues relating to adoption; (b) the 1951 cut-off date for entitlement to registration; (c) the second-generation cut-off rule; (d) unknown or unstated paternity; 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Consultations and Reports Sections 11-12 (e) enfranchisement; (f) the continued federal government role in determining Indian status and band membership; and (g) First Nations’ authorities to determine band membership. Referral to committee (5) Each report stands referred to any committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established to review matters related to Aboriginal affairs. Report to Parliament 12 (1) The Minister must, within three years after the day on which this Act receives royal assent, (a) undertake the following reviews: (i) a review of the provisions of section 6 of the Indian Act that are enacted by this Act in order to determine whether all of the sexbased inequities have been eliminated with respect to those provisions, and (ii) a review of the operation of the provisions of the Indian Act that are enacted by this Act; and (b) cause to be laid before each House of Parliament a report on those reviews that includes, if he or she determines that any sexbased inequities still exist with respect to the provisions of section 6 of the Indian Act that are enacted by this Act, a statement of any changes to the Indian Act that he or she recommends in order to reduce or eliminate those sex-based inequities. Referral to committee (2) The report stands referred to any committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established to review matters related to Aboriginal affairs. 2015-2016-2017 Chapter 25: An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général) Consultations and Reports Sections 13-15 Publication 13 The Minister must publish every report laid before Parliament under sections 11 and 12 on the Department’s website immediately after their tabling. Same meaning 14 Words and expressions used in sections 11 to 13 have the same meaning as in the Indian Act. Coming into Force Order in council 15 (1) This Act, other than sections 2.1, 3.1, 3.2 and 10.1, comes into force or is deemed to have come into force on a day to be fixed by order of the Governor in Council, but that day must be the day on which the suspension of the declaration expires. Order in council (2) Sections 2.1, 3.1, 3.2 and 10.1 come into force on a day to be fixed by order of the Governor in Council, but that day must be after the day fixed under subsection (1). Published under authority of the Senate of Canada 2015-2016-2017 Disponible sur le site Web du Sénat du Canad

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 31 An Act to amend the Statistics Act ASSENTED TO DECEMBER 12, 2017 BILL C-36 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Statistics Act”. SUMMARY This enactment amends the Statistics Act to strengthen the independence of Statistics Canada, including by providing for the appointment of the Chief Statistician to hold office during good behaviour and by assigning to the Chief Statistician the powers related to methods, procedures and operations of Statistics Canada. It also establishes a transparent process to issue directives to the Chief Statistician concerning those methods, procedures and operations or the statistical programs. In addition, it establishes the Canadian Statistics Advisory Council, no longer requires the consent of respondents to transfer their Census information to Library and Archives Canada and repeals imprisonment as a penalty for any offence committed by a respondent. Finally, it amends certain provisions by modernizing the language of the Act to better reflect current methods of collecting statistical information. i 64-65-66 ELIZABETH II CHAPTER 31 An Act to amend the Statistics Act [Assented to 12th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. S-19 Statistics Act Amendments to the Act 1 Section 2 of the Statistics Act is amended by adding the following in alphabetical order: identifying information means any information that makes it possible to identify an individual person, business or organization; (renseignement identificateur) 2 Section 4 of the Act is replaced by the following: Chief Statistician 4 (1) The Governor in Council shall appoint the Chief Statistician of Canada to be the deputy head of Statistics Canada. Tenure (2) The Chief Statistician holds office for a term of not more than five years during good behaviour, but may be removed for cause by the Governor in Council. Reappointment (3) The Chief Statistician is eligible to be reappointed for an additional term of not more than five years. Interim appointment (4) In the event of the absence or incapacity of the Chief Statistician, or if that office is vacant, the Governor in Council may appoint any qualified person to hold that 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Section 2 office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the salary or other remuneration and expenses that may be fixed by the Governor in Council. Duties (5) The Chief Statistician shall, in addition to any other duties imposed on him or her under any other provision of this Act, (a) decide, based strictly on professional statistical standards that he or she considers appropriate, the methods and procedures for carrying out statistical programs regarding (i) the collection, compilation, analysis, abstraction and publication of statistical information that is produced or is to be produced by Statistics Canada, (ii) the content of statistical releases and publications issued by Statistics Canada, and (iii) the timing and methods of dissemination of statistics compiled by Statistics Canada; (b) advise on matters pertaining to statistical programs of the departments and agencies of the Government of Canada, and confer with those departments and agencies to that end; and (c) control the operations and staff of Statistics Canada. Report to Minister (6) In each fiscal year the Chief Statistician shall make a report to the Minister on the activities of Statistics Canada in the preceding fiscal year, and that report shall be included as a separate part of the Minister’s annual report to Parliament. Directives on methods, procedures and operations 4.1 (1) Directives on any methods, procedures and operations may only be issued to the Chief Statistician by the Governor in Council, by order, on the recommendation of the Minister. Tabling (2) Within 15 days after the day on which an order is made, the Minister shall cause a copy of the order to be tabled in each House of Parliament. 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 2-4 House not sitting (3) If the House is not sitting, in order to comply with subsection (2), the order shall be sent to the Clerk of the House within 15 days after the day on which the order is made. Directives on statistical programs 4.2 (1) The Minister may issue directives to the Chief Statistician on the statistical programs that aim to collect, compile, analyse, abstract and publish statistics on all or any of the matters referred to in section 22. Publication of directives (2) The Chief Statistician may require that any directive issued to him or her under subsection (1) be made in writing and made public before the Chief Statistician acts on it. 3 (1) Subsection 5(1) of the Act is replaced by the following: Temporary employees 5 (1) The Chief Statistician may employ, in the manner authorized by law, any commissioners, enumerators, agents or other persons that are necessary to collect for Statistics Canada the statistics and information that the Minister considers useful and in the public interest relating to the commercial, industrial, financial, social, economic and other activities that the Minister may determine. The duties of the commissioners, enumerators, agents or other persons shall be those duties prescribed by the Chief Statistician. (2) Subsection 5(3) of the Act is replaced by the following: Contracted services (3) Any persons retained under contract to perform special services for the Chief Statistician under this Act and the employees and agents of those persons are, for the purposes of this Act, deemed to be persons employed under this Act while performing those services. 4 Subsections 6(2) to 6(4) of the Act are replaced by the following: Attestation (2) The oath or solemn affirmation set out in subsection (1) shall be taken before the person, and returned and recorded in the manner, that the Chief Statistician may direct. 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 4-5 Incorporated contractors (3) If a person retained under contract to perform special services for the Chief Statistician under this Act is a corporation, its chief executive officer and any of its other officers, employees and agents that are used to perform the special services shall, before fulfilling any of the duties required under the contract, take and subscribe the following oath or solemn affirmation: I, ................., do solemnly swear (or affirm) that I will faithfully and honestly fulfil my duties as an employee of (name of the corporation) in respect of my employment in carrying out (identify here contract with Chief Statistician) in conformity with the requirements of the Statistics Act, and of all rules and instructions under that Act and that I will not without due authority disclose or make known any matter or thing that comes to my knowledge by reason of this employment. Attestation (4) The oath or solemn affirmation set out in subsection (3) shall be taken before the person, and returned and recorded in the manner, that the Chief Statistician may direct. 5 Sections 7 to 9 of the Act are replaced by the following: Rules, instructions and requests for information 7 (1) The Chief Statistician may prescribe the rules, instructions and, subject to subsection 21(1), requests for information that he or she considers necessary for conducting the work and business of Statistics Canada, the collecting, compiling and publishing of statistics and other information and the taking of any census authorized by this Act. Clarification (2) For greater certainty, any rule, instruction or request for information prescribed under subsection (1) is not a regulation for the purposes of the Statutory Instruments Act. Mandatory or voluntary requests for information 8 (1) The Chief Statistician shall determine whether a request for information is mandatory or voluntary, with the exception of the census of population and census of agriculture, both of which are mandatory. Publication (2) The Chief Statistician shall publish any mandatory request for information before the request is made. 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Section 5 Notification of Minister (3) The Chief Statistician shall notify the Minister of any new mandatory request for information at least 30 days before the day on which it is published. Voluntary requests for information — paragraph 31(a) does not apply (4) Paragraph 31(a) does not apply to a person to whom a voluntary request for information is made. Canadian Statistics Advisory Council Establishment 8.1 (1) An advisory council, to be known as the Canadian Statistics Advisory Council, is established (a) to advise the Minister and Chief Statistician in a transparent manner on any question that either of them has referred to the Council on the overall quality of the national statistical system, including the relevance, accuracy, accessibility and timeliness of its data; and (b) to make public an annual report on the state of the national statistical system. Membership (2) The Council is composed of, in addition to the Chief Statistician, not more than 10 other members appointed by the Governor in Council to hold office during pleasure, including one Chairperson. Ex officio (3) The Chief Statistician is an ex officio member of the Council. Tenure of Chairperson (4) The Chairperson is appointed to a term of not more than five years and may be reappointed for an additional term of three years. Tenure of other members (5) The other members are appointed to a term of three years and may be reappointed for an additional term of three years. Remuneration and expenses (6) The members appointed under subsection (2) shall be paid the remuneration that is fixed by the Governor in Council and are entitled to be paid any reasonable travel 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 5-7 and living expenses that are incurred while absent from their ordinary place of residence in the course of performing their duties under this Act. Statistics No discrimination 9 (1) The Governor in Council, the Minister and the Chief Statistician shall not, in the execution of the powers conferred by this Act, discriminate between individuals or companies to the prejudice of those individuals or companies. Use of sampling methods (2) Despite any other provision of this Act, the Chief Statistician may authorize the use of sampling methods for the collection of statistics. 6 Section 13 of the French version of the Act is replaced by the following: Accès aux archives 13 La personne ayant la garde ou la charge de documents ou d’archives qui sont conservés dans un ministère ou un bureau municipal ou auprès d’une personne morale, d’une entreprise ou d’une organisation et dont on pourrait tirer des renseignements recherchés pour les objets de la présente loi ou qui aideraient à compléter ou à corriger ces renseignements est tenue d’en permettre l’accès, à ces fins, à une personne autorisée par le statisticien en chef à obtenir ces renseignements ou cette aide pour compléter ou corriger ces renseignements. 7 Sections 14 and 15 of the Act are replaced by the following: Evidence of appointment 14 Any letter purporting to be signed by the Chief Statistician or any person who may be authorized to do so by the Chief Statistician that gives notice of an appointment or removal of, or that sets out any instructions to, a person employed in the execution of any duty under this Act is evidence of the appointment, removal or instructions and that the letter was signed and addressed as it purports to be. Presumption 15 Any request for information purporting to be authorized for the taking of a census or the collection of statistics or other information and presented as such by a person employed in the execution of any duty under this Act is presumed, in the absence of evidence to the contrary, to have been made by the proper authority. 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 8-10 8 (1) Paragraphs 17(1)(a) and (b) of the Act are replaced by the following: (a) no person, other than a person employed or deemed to be employed under this Act, and sworn under section 6, shall be permitted to examine any return or identifying information obtained for the purposes of this Act; and (b) no person who has been sworn under section 6 shall disclose or knowingly cause to be disclosed, by any means, any information obtained under this Act in a manner that it is possible from the disclosure to relate the information obtained to any identifiable individual person, business or organization. 1992, c. 1, s. 131 (2) The portion of subsection 17(2) of the French version of the Act before paragraph (a) is replaced by the following: Exception à l’interdiction (2) Le statisticien en chef peut, par ordre, autoriser la révélation des renseignements suivants : 9 Subsections 18(1) and (2) of the Act are replaced by the following: Privileged information — inadmissibility as evidence 18 (1) Except for the purposes of a prosecution under this Act, any return and any identifying information provided to Statistics Canada under this Act and any copy of a return in the possession of a respondent is privileged and shall not be used as evidence in any proceedings. Privileged information — person sworn (2) A person sworn under section 6 shall not, by an order of any court, tribunal or other body, be required in any proceedings to give oral testimony with respect to information obtained in the course of administering this Act or to produce any return or identifying information obtained. 2005, c. 31, s. 1 10 Subsections 18.1(1) and (2) of the Act are replaced by the following: 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 10-13 Census — disclosure after 92 years 18.1 (1) The information contained in the returns of each census of population taken between 1910 and 2005, as well as the information contained in the returns and the identifying information obtained in each census of population taken in or after 2021, is no longer subject to sections 17 and 18 ninety-two years after the census is taken. Census and survey — disclosure with consent (2) The information contained in the returns of each census of population taken in 2006, 2011 and 2016 and the 2011 National Household Survey is no longer subject to sections 17 and 18 ninety-two years after the census or survey is taken, but only if the person to whom the information relates consents, at the time of the census or survey, to the release of the information ninety-two years later. 11 The portion of section 22 of the Act before paragraph (a) is replaced by the following: General statistics 22 Without limiting the duties of Statistics Canada under section 3 or affecting any of its powers or duties in respect of any specific statistics that may otherwise be authorized or required under this Act, the Chief Statistician shall collect, compile, analyse, abstract and publish statistics in relation to all or any of the following matters in Canada: 1988, c. 65, s. 146 12 Subsection 22.1(1) of the French version of the Act is replaced by the following: Système de codification des marchandises 22.1 (1) Le statisticien en chef établit un système de codification des marchandises importées ou exportées qui lui permet de recueillir, de compiler, d’analyser, de dépouiller et de publier les statistiques concernant ces marchandises. 13 Section 23 of the Act is replaced by the following: Request for information by any method 23 (1) The requests for information prescribed under section 7 may be made by any method authorized by the Chief Statistician. 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 13-15 Duty to provide information (2) A person to whom a mandatory request for information is made shall provide the information to Statistics Canada, properly certified as accurate, not later than the time prescribed by the Chief Statistician and indicated to the person or not later than the extended time that may be allowed in the discretion of the Chief Statistician. 2005, c. 10, par. 34(1)(w) 14 Sections 26 to 29 of the Act are replaced by the following: Courts to furnish criminal statistics 26 The clerk of every court or tribunal administering criminal justice or, if there is no clerk, the judge or other functionary presiding over the court or tribunal shall, at the times, in the manner and for the periods that the Chief Statistician may establish, transmit the information requested by the Minister relating to the criminal business transacted in the court or tribunal. Wardens and sheriffs 27 The warden of every penitentiary and reformatory and the sheriff of every county, district or other territorial division shall, at the times, in the manner and for the periods that the Chief Statistician may establish, transmit the information requested by the Minister relating to the prisoners committed to any penitentiary, reformatory or jail under their charge or within their jurisdiction. Records 28 Every person who is required to transmit any information mentioned in section 26 or 27 shall from day to day make and keep entries and records of the particulars used to respond to requests for information made to them. Pardons 29 The Minister of Public Safety and Emergency Preparedness shall cause to be transmitted to the Chief Statistician, at the times and for the periods that the Chief Statistician may establish, the information requested by the Minister relating to the cases in which the prerogative of mercy has been exercised. 15 Section 31 of the Act is replaced by the following: 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 15-17 False or unlawful information 31 Every person is guilty of an offence and liable on summary conviction to a fine of not more than $500 who, without lawful excuse, (a) refuses or neglects, following a request for information under this Act, (i) to provide any requested information to the best of their knowledge and belief, or (ii) to provide any requested information when and as required under this Act; or (b) knowingly gives false or misleading information or practises any other deception under this Act. 16 (1) The portion of section 32 of the Act before paragraph (a) is replaced by the following: Refusal to grant access to records 32 Every person is guilty of an offence and liable on summary conviction to a fine of not more than $1,000 (2) Paragraph 32(a) of the French version of the Act is replaced by the following: a) ayant la garde ou la charge de documents ou d’archives qui sont conservés dans un ministère ou un bureau municipal ou auprès d’une personne morale, d’une entreprise ou d’une organisation et dont on pourrait tirer des renseignements recherchés pour les objets de la présente loi ou qui aideraient à compléter ou à corriger ces renseignements, refuse ou néglige d’en permettre l’accès à une personne autorisée à cet effet par le statisticien en chef; (3) The portion of section 32 of the English version of the Act after paragraph (a) is replaced by the following: (b) who otherwise in any way wilfully obstructs or seeks to obstruct any person employed in the execution of any duty under this Act. 17 Section 33 of the Act is replaced by the following: 2015-2016-2017 Chapter 31: An Act to amend the Statistics Act Statistics Act Amendments to the Act Sections 17-18 No imprisonment 32.1 Despite subsection 787(1) of the Criminal Code, no imprisonment may be imposed as punishment for a conviction under section 31 or 32. Leaving notice at house 33 (1) The leaving by an enumerator, agent or other person employed or deemed to be employed under this Act, or the delivery by the post office at any house, of any request for information purporting to be made under this Act that includes a notice requiring that the information be provided in the manner specified and within a stated time to Statistics Canada by the occupant of the house, or in their absence by some other member of the family, is, as against the occupant, a sufficient requirement to provide the information even if the occupant is not named in the notice nor personally served with it. Leaving notice at office (2) The leaving by an enumerator, agent or other person employed or deemed to be employed under this Act at the office or other place of business of any person, or the delivery by the post office to any person or their agent, of any request for information purporting to be made under this Act that includes a notice requiring that the information be provided in the manner specified and within a stated time to Statistics Canada is, as against the person, a sufficient requirement to do so. Transitional Provision Chief Statistician 18 The Chief Statistician holding office immediately before the coming into force of this Act shall continue to hold office during pleasure until an appointment is made under subsection 4(1) of the Statistics Act, as enacted by section 2 of this Act. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 19 An Act respecting a national strategy for Alzheimer’s disease and other dementias ASSENTED TO JUNE 22, 2017 BILL C-233 SUMMARY This enactment provides for the development and implementation of a national strategy for the health care of persons afflicted with Alzheimer’s disease and other forms of dementia. ii 64-65-66 ELIZABETH II CHAPTER 19 An Act respecting a national strategy for Alzheimer’s disease and other dementias [Assented to 22nd June, 2017] Preamble Whereas Alzheimer’s disease and other forms of dementia are progressive, degenerative diseases of the brain that result in impairment of thought processes and memory, as well as changes in abilities and behaviour; Whereas Alzheimer’s disease and other forms of dementia erode an individual’s independence and eventually cause death; Whereas there are more than 747,000 Canadians living with Alzheimer’s disease and other forms of dementia; Whereas, as Canada’s population ages, the number of Canadians diagnosed with these diseases is expected to double within a generation; Whereas research, collaboration and partnerships remain the key to finding a cure, and early diagnosis and support for treatment can lead to positive health outcomes for people with any form of dementia and can have a positive impact on the family and friends who provide care for them; And whereas the Government of Canada, in consultation with the ministers responsible for the delivery of health services in each province and territory should encourage the development of a national strategy for the care of people living with Alzheimer’s disease or other forms of dementia, as well as their families and caregivers; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2015-2016-2017 Chapter 19: National Strategy for Alzheimer’s Disease and Other Dementias Act Short Title Sections 1-3 Short Title Short title 1 This Act may be cited as the National Strategy for Alzheimer’s Disease and Other Dementias Act. Interpretation Definition of Minister 2 In this Act, Minister means the Minister of Health. National Strategy on Alzheimer’s Disease and other Dementias National strategy 3 (1) The Minister or delegated officials, in cooperation with representatives of the provincial and territorial governments responsible for public health, must develop and implement a comprehensive national strategy to address all aspects of Alzheimer’s disease and other forms of dementia that includes, among other things, (a) developing specific national objectives in order to improve the situation of persons suffering from Alzheimer’s disease and other forms of dementia and decrease the burden of those diseases on Canadian society; (b) encouraging greater investment in all areas of research related to Alzheimer’s disease and other forms of dementia, and in particular the areas of biomedical and clinical research as well as research relating to health systems, health services and population health; (c) coordinating with international bodies in the fight against Alzheimer’s disease and other forms of dementia globally and building on Canada’s existing contributions in this field; (d) assisting the provinces in developing and disseminating emerging clinical diagnostic and treatment guidelines based on new research; (e) assisting the provinces in assessing and disseminating best practices for improving the quality of life of people suffering from dementia and their caregivers, including greater integration of care, chronic disease prevention and management as well as coordination of community support and care aimed at minimizing familial impacts; 2015-2016-2017 Chapter 19: National Strategy for Alzheimer’s Disease and Other Dementias Act National Strategy on Alzheimer’s Disease and other Dementias Sections 3-4 (f) assisting the provinces in developing and disseminating information, to health care professionals as well as to the general public, on the importance of prevention and management of and early intervention in Alzheimer’s disease and other forms of dementia; and (g) making recommendations in respect of the development of national guidelines for standards of dementia care that are founded on evidence-based best practices in care delivery and daily programming focused on the needs of the persons suffering from those diseases. Conference (2) The Minister must, within 180 days after the day on which this Act comes into force, convene a conference with representatives of the provincial and territorial governments responsible for public health, basic and clinical researchers, family caregivers, health care professionals and other care providers, people suffering from dementia as well as representatives from the lay advocacy sector, the Alzheimer Society of Canada, other Alzheimer advocacy groups, and other dementia advocacy groups, for the purpose of developing the national strategy referred to in subsection (1). Advisory Board Appointment of members 4 (1) The Minister must establish an advisory board and appoint no more than 15 members to hold office during pleasure for a term not exceeding three years, which term may be renewed for one or more further terms. Chairperson (2) The Minister must appoint one of the members as Chairperson of the advisory board. Role of advisory board (3) The board is to advise the Minister on any matter related to the health care of persons living with Alzheimer’s disease or other forms of dementia. 2015-2016-2017 Chapter 19: National Strategy for Alzheimer’s Disease and Other Dementias Act Advisory Board Sections 4-5 Representation (4) The Minister may appoint any person with relevant knowledge or expertise to the advisory board, including (a) representatives from the federal, provincial and territorial governments responsible for public health; (b) representatives from Alzheimer advocacy groups and other dementia advocacy groups; (c) health care professionals; and (d) people living with Alzheimer’s disease or other forms of dementia or their caregivers. No remuneration (5) No member of the advisory board is to receive remuneration for the performance of their duties. Meetings (6) Meetings of the advisory board must be held at least twice annually, at times and places to be determined by the Chairperson. Review and Report Minister to report 5 Within two years of the coming into force of this Act, and every year after that, the Minister must prepare a report on the effectiveness of the national strategy, setting out his or her conclusions and recommendations regarding the strategy, including which national objectives should be given priority, and cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report is completed. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 18 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2018 ASSENTED TO JUNE 22, 2017 BILL C-54 SUMMARY This enactment grants the sum of $3,752,804,244 towards defraying charges and expenses of the federal public administration for the fiscal year ending March 31, 2018 that are not otherwise provided for. ii 64-65-66 ELIZABETH II CHAPTER 18 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2018 [Assented to 22nd June, 2017] MOST GRACIOUS SOVEREIGN, Preamble Whereas it appears by message from His Excellency the Right Honourable David Johnston, Governor General and Commander-in-Chief of Canada, and the Estimates accompanying that message, that the sums mentioned below are required to defray certain expenses of the federal public administration, not otherwise provided for, for the fiscal year ending March 31, 2018, and for other purposes connected with the federal public administration; May it therefore please Your Majesty, that it may be enacted, and be it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, that: Short title 1 This Act may be cited as the Appropriation Act No. 3, 2017–18. $3,752,804,244 granted for 2017–18 2 There may be paid out of the Consolidated Revenue Fund a sum not exceeding in the aggregate $3,752,804,244 towards defraying the various charges and expenses of the federal public administration for the fiscal year ending March 31, 2018, not otherwise provided for, which is the total of the amounts of the items set out in the Supplementary Estimates (A) for that fiscal year as set out in Schedules 1 and 2. 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 Sections 3-6 Transfers of appropriations 3 The transfers of appropriations set out in the Estimates referred to in section 2 are deemed to have been authorized on April 1, 2017. Purpose of each item 4 (1) The amount authorized by this Act to be paid in respect of an item may be paid only for the purposes, and subject to any terms and conditions, specified in the item. Effective date (2) The provisions of each item set out in Schedules 1 and 2 are deemed to have effect as of April 1, 2017. Commitments 5 (1) Where an item in the Estimates referred to in section 2 confers authority to enter into commitments up to an amount stated in those Estimates or increases the amount up to which commitments may be entered into under any other Act, or where a commitment is to be entered into under subsection (2), the commitment may be entered into in accordance with the terms of that item or in accordance with that subsection if the amount of the commitment proposed to be entered into, together with all previous commitments entered into in accordance with this section or under that other Act, does not exceed the total amount of the commitment authority stated in that item or calculated in accordance with that subsection. Commitment limits — revenue-spending authority (2) Where an item in the Estimates referred to in section 2 or a provision of any Act confers authority to spend revenues, commitments may be entered into in accordance with the terms of that item or provision up to an amount equal to the aggregate of (a) the amount, if any, appropriated in respect of that item or provision, and (b) whichever is greater: the amount of revenues actually received or the amount of the estimated revenues set out in those Estimates for that item or in respect of that provision. Adjustments in accounts of Canada — Schedule 1 6 An appropriation that is granted by this Act or any other Act and referred to in Schedule 1 may be charged after the end of the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that fiscal year are tabled in Parliament, for the purpose of making adjustments in the 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 Sections 6-7 accounts of Canada for that fiscal year that do not require payments out of the Consolidated Revenue Fund. Adjustments in accounts of Canada — Schedule 2 7 (1) An appropriation that is granted by this Act or any other Act and referred to in Schedule 2 may be charged after the end of the fiscal year following the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that second fiscal year are tabled in Parliament, for the purpose of making adjustments in the accounts of Canada for that second fiscal year that do not require payments out of the Consolidated Revenue Fund. Order of payment (2) Despite any other provision of this Act, amounts appropriated by this Act and set out in Schedule 2 may be paid and applied at any time on or before March 31, 2019, so long as every payment is charged first against the relevant amount appropriated under any Act that is earliest in time until that amount is exhausted, next against the relevant amount appropriated under any other Act, including this Act, that is next in time until that amount is exhausted and so on. The balance of amounts so appropriated by this Act that have not been charged, subject to the adjustments referred to in section 37 of the Financial Administration Act, lapse at the end of the fiscal year following the fiscal year ending March 31, 2018. 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 SCHEDULE 1 Based on Supplementary Estimates (A), 2017–18, the amount gr items set out in this Schedule. Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items ADMINISTRATIVE TRIBUNALS SUPPORT SERVICE OF CAN Service canadien d’appui aux tribunaux administratifs 1a – Program expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A CANADA MORTGAGE AND HOUSING CORPORATION Société canadienne d’hypothèques et de logement 1a – Payments to reimburse the Corporation for the amount grants, contributions and expenditures made, and losse curred, (a) under the National Housing Act; or (b) in the course of the exercise of powers or the car functions conferred on the Corporation under any o accordance with the Corporation’s authority under t Housing Corporation Act CANADIAN AIR TRANSPORT SECURITY AUTHORITY Administration canadienne de la sûreté du transport aé 1a – Payments to the Authority for operating and capital exp CANADIAN FOOD INSPECTION AGENCY Agence canadienne d’inspection des aliments 1a – Operating expenditures – Contributions 5a – Capital expenditures CANADIAN SECURITY INTELLIGENCE SERVICE Service canadien du renseignement de sécurité 1a – Program expenditures DEPARTMENT OF AGRICULTURE AND AGRI-FOOD Ministère de l’Agriculture et de l’Agroalimentaire 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) collaborative research agreements and research (b) the grazing and breeding activities of the Commu (c) the administration of the AgriStability program; a (d) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items 5a – Capital expenditures 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF CANADIAN HERITAGE Ministère du Patrimoine canadien 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the activities of the Canadian Conservation Instit itage Information Network and the Canadian Audio(b) activities undertaken under the Capital Experienc (c) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF CITIZENSHIP AND IMMIGRATION Ministère de la Citoyenneté et de l’Immigration 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year from the provision of services related to Canada — revenues that it receives in that fiscal year fro services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – Capital expenditures 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions, including the provision of goods and ser DEPARTMENT OF EMPLOYMENT AND SOCIAL DEVELOPM Ministère de l’Emploi et du Développement social 1a – Operating expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) the provision of Public Access Programs Sector s (b) the provision of services to assist provinces in th provincial programs funded under Labour Market D 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items (c) the provision of services on behalf of other feder ments; (d) the provision of internal support services under s (e) any amount charged to a Crown corporation und Government Employees Compensation Act in relatio for subrogated claims for Crown corporations; and (f) the portion of the Government Employees Comp tal or agency subrogated claim settlements related t – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF FISHERIES AND OCEANS Ministère des Pêches et des Océans 1a – Operating expenditures – Canada’s share of expenses of the international fisherie – Authority to provide free office accommodation for the commissions – Authority to make recoverable advances in the amounts ternational fisheries commissions of joint cost projects – Authority to make recoverable advances for transportat er shipping services performed for individuals, outside ernments in the course of, or arising out of, the exercis tion, including aids to navigation and shipping – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) in the course of, or arising from, the activities of Guard; and (b) from the provision of internal support services u Act – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – Capital expenditures – Authority to make payments to provinces, municipalitie thorities as contributions towards construction done by – Authority for the purchase and disposal of commercial 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF FOREIGN AFFAIRS, TRADE AND DEVEL Ministère des Affaires étrangères, du Commerce et du 1a – Operating expenditures, including those related to the a representatives abroad, to the staff of those representa ment of Canadians to the staffs of international organiz 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items – Authority to make recoverable advances to internationa amounts not exceeding the amounts of the shares of th – Expenditures in respect of the provision of office accom tional Civil Aviation Organization – Authority to make recoverable expenditures for assistan distressed Canadian citizens and Canadian residents liv their dependants – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) trade and education fairs; (b) departmental publications; and (c) the following services: (i) training services provided by the Canadian Fo (ii) trade missions and other international busine (iii) investment development services, (iv) international telecommunication services, (v) other services provided abroad to other depa Crown corporations and non-federal organization (vi) specialized consular services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State DEPARTMENT OF HEALTH Ministère de la Santé 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the provision of services or the sale of products r tion, regulatory activities and medical services; and (b) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – Capital expenditures 10a – Contributions, in the form of monetary payments or the services DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEV Ministère des Affaires indiennes et du Nord canadien 1a – Operating expenditures – Expenditures on works, buildings and equipment – Authority to make expenditures — recoverable or otherw formed on property that is not federal property and on spect of that property 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items – Authority to provide, in respect of Indian and Inuit econ ties, for the capacity development for Indians and Inuit terials and equipment – Authority to sell electric power to private consumers in alternative local sources of supply are not available, in and conditions approved by the Governor in Council – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions L20a – Loans to First Nations in British Columbia for the purpo participation in the British Columbia Treaty Commissio DEPARTMENT OF INDUSTRY Ministère de l’Industrie 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the provision of internal support services under s and the provision of internal support services to the Property Office; (b) activities and operations related to communicati munications Research Centre; (c) services and insolvency processes under the Ban Act at the Office of the Superintendent of Bankruptc (d) activities and operations carried out by Corporat Canada Business Corporations Act, the Boards of Tr operatives Act, the Canada Not-for-profit Corporatio Corporations Act; and (e) services and regulatory processes for mergers an ters, including pre-merger notifications, advance rul ten opinions, under the Competition Act at the Com – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – Capital expenditures 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF JUSTICE Ministère de la Justice 1a – Operating expenditures 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the provision of mandatory legal services to fede agencies; (b) the provision to Crown corporations, non-federa national organizations of optional legal services tha Department’s mandate; and (c) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF NATURAL RESOURCES Ministère des Ressources naturelles 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the sale of forestry and information products; (b) the issue of licences, permits and certificates und the Explosives Regulations, 2013; (c) training and certification activities related to the A ferred to in paragraph (b); (d) research, consultation, testing, analysis and adm research products as part of the departmental opera (e) the provision of internal support services under s cial Administration Act – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF PUBLIC SAFETY AND EMERGENCY PRE Ministère de la Sécurité publique et de la Protection civ 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items DEPARTMENT OF THE ENVIRONMENT Ministère de l’Environnement 1a – Operating expenditures – Authority for the Minister of the Environment to engage by different Boards at the remuneration that those Boa – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. provision of services or the sale of information product tions of the department funded from this Vote, includin (a) research, analysis and scientific services; (b) hydrometric surveys; (c) regulatory services; (d) monitoring services, including monitoring servic sands; (e) entry fees; (f) permits; and (g) real property services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – Capital expenditures – Authority to make payments to provinces and municipa wards construction done by those bodies – Authority to make recoverable advances not exceeding of provincial and outside agencies of the cost of joint p tures on other than federal property 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions, including ones to developing countries b Fund for the Implementation of the Montreal Protocol t tary payments or the provision of goods, equipment or DEPARTMENT OF TRANSPORT Ministère des Transports 1a – Operating expenditures – Authority to make expenditures on other than federal p or arising out of the exercise of jurisdiction in, aeronau – Authority for the payment of commissions for revenue Aeronautics Act – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – Capital expenditures 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. 20a Items Programs other than Gateways and corridors and Transpo – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF WESTERN ECONOMIC DIVERSIFICATIO Ministère de la Diversification de l’économie de l’Ouest 1a – Operating expenditures – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 5a – The grants listed in any of the Estimates for the fiscal ye – Contributions IMMIGRATION AND REFUGEE BOARD Commission de l’immigration et du statut de réfugié 1a – Program expenditures MARINE ATLANTIC INC. Marine Atlantique S.C.C. 1a – Payments to the corporation in respect of the costs of it – Payments to the corporation for capital expenditures – Payments to the corporation for transportation services transportation services between Nova Scotia and Newf and related vessels, terminals and infrastructure NATIONAL ENERGY BOARD Office national de l’énergie 1a – Program expenditures – Contributions NATIONAL RESEARCH COUNCIL OF CANADA Conseil national de recherches du Canada 1a – Operating expenditures 5a – Capital expenditures 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions, including the provision of goods and ser Thirty Meter Telescope Observatory OFFICE OF THE AUDITOR GENERAL Bureau du vérificateur général 1a – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) the provision of audit professional services to me Council of Legislative Auditors; and (b) the inquiries conducted under section 11 of the A 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items PARLIAMENTARY PROTECTIVE SERVICE Service de protection parlementaire 1a – Program expenditures PRIVY COUNCIL OFFICE Bureau du Conseil privé 1a – Program expenditures, including (a) operating expenditures of Commissions of Inqui for; (b) contributions in respect of costs incurred by pers Commissions of Inquiry; and (c) the operation of the Prime Minister’s residence – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State PUBLIC HEALTH AGENCY OF CANADA Agence de la santé publique du Canada 10a – The grants listed in any of the Estimates for the fiscal ye – Contributions SECURITY INTELLIGENCE REVIEW COMMITTEE Comité de surveillance des activités de renseignement 1a – Program expenditures TREASURY BOARD SECRETARIAT Secrétariat du Conseil du Trésor 1a – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal of internal support services under section 29.2 of that A tivities – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rata a year — that does not exceed the salary paid under the under section 67 of the Parliament of Canada Act, to m side over ministries of State 30a Paylist Requirements – Authority granted to the Treasury Board to supplement for the fiscal year for (a) requirements related to parental and maternity a (b) entitlements on cessation of service or employm (c) adjustments that have not been provided from V justments, made to terms and conditions of service 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 Vote No. Items federal public administration, including the Royal Ca as well as of members of the Canadian Forces VIA RAIL CANADA INC. VIA Rail Canada Inc. 1a – Payments to the corporation in respect of the costs of it – Payments to the corporation for capital expenditures – Payments to the corporation for the provision of rail pas Canada in accordance with contracts entered into pursu (c)(i) of Transport Vote 52d, Appropriation Act No. 1, 19 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) ANNEXE 1 D’après le Budget supplémentaire des dépenses (A) 2017-2018, la des postes figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes ADMINISTRATION CANADIENNE DE LA SÛRETÉ DU TRAN Canadian Air Transport Security Authority 1a – Paiements à l’Administration pour les dépenses de fonc penses en capital AGENCE CANADIENNE D’INSPECTION DES ALIMENTS Canadian Food Inspection Agency 1a – Dépenses de fonctionnement – Contributions 5a – Dépenses en capital AGENCE DE LA SANTÉ PUBLIQUE DU CANADA Public Health Agency of Canada 10a – Subventions inscrites à tout budget des dépenses pour – Contributions BUREAU DU CONSEIL PRIVÉ Privy Council Office 1a – Dépenses du programme, y compris : a) les dépenses de fonctionnement des commission b) les contributions relatives aux frais supportés par raissant devant des commissions dʼenquête; c) le fonctionnement de la résidence du premier min – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services de soutien internes de cette loi, à la compensation des dépenses connexes l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u BUREAU DU VÉRIFICATEUR GÉNÉRAL Office of the Auditor General 1a – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens connexes engagées au cours de l’exercice : a) les services professionnels de vérification aux me dien des vérificateurs législatifs; b) les enquêtes effectuées au titre de l’article 11 de l général. 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes COMITÉ DE SURVEILLANCE DES ACTIVITÉS DE RENSEIGN Security Intelligence Review Committee 1a – Dépenses du programme COMMISSION DE L’IMMIGRATION ET DU STATUT DE RÉF Immigration and Refugee Board 1a – Dépenses du programme CONSEIL NATIONAL DE RECHERCHES DU CANADA National Research Council of Canada 1a – Dépenses de fonctionnement 5a – Dépenses en capital 10a – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris la fourniture de biens et de ser international du Télescope de trente mètres MARINE ATLANTIQUE S.C.C. Marine Atlantic Inc. 1a – Paiements à la société pour les dépenses liées à sa gest – Paiements à la société pour les dépenses en capital – Paiements à la société pour les services de transport, y transport maritime entre la Nouvelle-Écosse et Terre N navires, terminaux et infrastructures connexes MINISTÈRE DE LA CITOYENNETÉ ET DE L’IMMIGRATION Department of Citizenship and Immigration 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services dans le cadre du pr ternationale Canada, à la compensation des dépenses c cours de l’exercice pour la prestation de ces services – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Dépenses en capital 10a – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris la fourniture de biens et de ser MINISTÈRE DE LA DIVERSIFICATION DE L’ÉCONOMIE DE Department of Western Economic Diversification 1a – Dépenses de fonctionnement – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Subventions inscrites à tout budget des dépenses pour 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Contributions MINISTÈRE DE L’AGRICULTURE ET DE LʼAGROALIMENTA Department of Agriculture and Agri-Food 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les ententes de recherche concertée et les service b) les activités de pâturage et de reproduction du Pr communautaires; c) l’administration du programme Agri-stabilité; d) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Dépenses en capital 10a – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE LA JUSTICE Department of Justice 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les services juridiques fournis de manière obligat ganismes fédéraux; b) les services juridiques — conformes au mandat d manière facultative à des sociétés d’État et à des org ou internationales; c) les services de soutien internes fournis en vertu d loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE LA SANTÉ Department of Health 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes celui-ci et provenant des éléments ci-après, à la compe gagées au cours de l’exercice : a) la prestation de services ou la vente de produits s tion de la santé, aux activités de réglementation et a b) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Dépenses en capital 10a – Contributions, sous forme de paiements en argent ou d de services MINISTÈRE DE LA SÉCURITÉ PUBLIQUE ET DE LA PROTE Department of Public Safety and Emergency Preparedn 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant notamment de la prestation de servi en vertu de l’article 29.2 de cette loi, à la compensation engagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u MINISTÈRE DE L’EMPLOI ET DU DÉVELOPPEMENT SOCIA Department of Employment and Social Development 1a – Dépenses de fonctionnement – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens connexes engagées au cours de l’exercice : a) les services du Secteur des programmes d’accès b) les services visant à aider les provinces à adminis vinciaux financés aux termes des ententes sur le dé du travail; c) les services offerts au nom d’autres ministères féd d) les services de soutien internes fournis en vertu d loi; e) tout montant facturé à une société d’État en vertu sur l’indemnisation des agents de l’État en lien avec les recours par subrogation pour les sociétés d’État; f) la portion des coûts de litige découlant des règlem de réclamation auprès de tiers pour les ministères e vertu de la Loi sur l’indemnisation des agents de l’É – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes dirige pas un département d’État, d’un traitement n’exc ministres d’État qui dirigent un département d’État, au traitements, rajusté en application de l’article 67 de la L Canada et au prorata, pour toute période inférieure à u 5a – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE L’ENVIRONNEMENT Department of the Environment 1a – Dépenses de fonctionnement – Autorisation au ministre de l’Environnement d’engager les commissions peuvent avoir besoin et versement à c déterminés par celles-ci – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant de la prestation de services de soutie l’article 29.2 de cette loi et des éléments ci-après, à la c penses connexes engagées au cours de l’exercice : a) les services de recherche, les services d’analyse e fiques; b) les relevés hydrologiques; c) les services de réglementation; d) les services de surveillance, notamment les activi sables bitumineux; e) les droits d’entrée; f) les permis; g) les services de biens immobiliers. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Dépenses en capital – Autorisation de faire des paiements aux provinces et au contributions aux travaux de construction entrepris par – Autorisation de faire des avances recouvrables ne dépa de projets conjoints assumée par des organismes prov nismes de l’extérieur, y compris les dépenses faites à lʼ partenant pas au gouvernement fédéral 10a – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris celles aux pays en développem téral pour l’application du Protocole de Montréal, sous argent ou de fourniture de biens, d’équipement ou de s MINISTÈRE DE L’INDUSTRIE Department of Industry 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes a) la prestation de services de soutien internes en ve cette loi et de services de soutien internes à l’Office lectuelle du Canada; b) les activités liées aux recherches sur les commun recherches sur les communications; c) les services et la procédure d’insolvabilité, au titre l’insolvabilité, au Bureau du surintendant des faillite d) les activités de Corporations Canada au titre de la sociétés par actions, de la Loi sur les chambres de c dienne sur les coopératives, de la Loi canadienne su non lucratif et de la Loi sur les corporations canadie e) les services et la procédure réglementaire au Bure pour les fusions et toute chose s’y rapportant, y com une fusion, les certificats de décision préalable et le de la Loi sur la concurrence. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a 10a – Dépenses en capital – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES AFFAIRES ÉTRANGÈRES, DU COMMERC DÉVELOPPEMENT Department of Foreign Affairs, Trade and Development 1a – Dépenses de fonctionnement, y compris celles liées à la tants du Canada à l’étranger, à leur personnel et aux Ca gouvernement canadien au personnel d’organismes in – Autorisation de faire des avances recouvrables à des or jusqu’à concurrence de la valeur des actions détenues nismes – Dépenses relatives aux locaux de l’Organisation de l’av – Autorisation dʼeffectuer des dépenses recouvrables pou sidents canadiens domiciliés à l’extérieur du Canada qu à l’étranger, y compris leurs personnes à charge, et pou – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens connexes engagées au cours de l’exercice : a) les foires commerciales et éducatives; b) les publications ministérielles; c) les services suivants : (i) la formation offerte par l’Institut canadien du s (ii) les missions commerciales et autres services commerce international, (iii) les services de développement des investisse (iv) les services de télécommunication internatio (v) les autres services fournis à l’étranger à d’aut nismes, sociétés d’État et autres organisations no (vi) les services consulaires spécialisés. 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au traitements, rajusté en application de l’article 67 de la L Canada et au prorata, pour toute période inférieure à u MINISTÈRE DES AFFAIRES INDIENNES ET DU NORD CAN Department of Indian Affairs and Northern Developmen 1a – Dépenses de fonctionnement – Dépenses relatives aux ouvrages, bâtiments et matériel – Autorisation d’effectuer des dépenses — recouvrables o vaux effectués sur des propriétés n’appartenant pas au aux services fournis à l’égard de celles-ci – Autorisation d’affecter des fonds dans le cadre d’activité économique des Indiens et des Inuits, relatives au déve des Indiens et des Inuits et à l’approvisionnement en m – Autorisation de vendre de l’électricité, conformément a par le gouverneur en conseil, aux consommateurs qui s vant dans des centres éloignés lorsque ces derniers n’o alternatives locales d’approvisionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci pour la prestation de services de soutien internes de cette loi, à la compensation des dépenses connexes l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 10a – Subventions inscrites à tout budget des dépenses pour – Contributions L20a – Prêts à des premières nations de la Colombie-Britanniq per au processus de la Commission des traités de la Co MINISTÈRE DES PÊCHES ET DES OCÉANS Department of Fisheries and Oceans 1a – Dépenses de fonctionnement – Participation du Canada aux dépenses des commission pêches – Autorisation de fournir gratuitement des locaux aux com des pêches – Autorisation de faire des avances recouvrables équivale quote-part de ces commissions dans les programmes à – Autorisation de faire des avances recouvrables pour de d’arrimage et d’autres services de la marine marchande liers, à des organismes indépendants et à d’autres gou l’exercice de sa compétence en matière de navigation, navigation et à la navigation maritime – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les activités de la Garde côtière canadienne; 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes b) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Dépenses en capital – Autorisation de faire des paiements aux provinces, aux torités locales ou privées à titre de contributions à des entrepris par ces administrations ou autorités – Autorisation d’acheter des bateaux de pêche commerci 10a – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES RESSOURCES NATURELLES Department of Natural Resources 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) la vente de produits d’information et de produits b) la délivrance de licences, de permis et de certifica les explosifs et du Règlement de 2013 sur les explos c) la formation et les attestations de formation liées visés à l’alinéa b); d) la perception, dans le cadre des activités du minis services de recherche, de consultation, d’évaluation tration, et pour lʼaccès à des travaux de recherche; e) la prestation de services de soutien internes en ve Loi sur la gestion des finances publiques. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 10a – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES TRANSPORTS Department of Transport 1a – Dépenses de fonctionnement – Autorisation d’engager des dépenses pour des biens au cadre de l’exercice d’une compétence en matière d’aéro – Autorisation de payer des commissions pour le recouvr tu de la Loi sur l’aéronautique – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant notamment de la prestation de servi en vertu de l’article 29.2 de cette loi, à la compensation au cours de l’exercice 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Dépenses en capital 20a Programmes autres que Portes d’entrée et corridors et Infr – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DU PATRIMOINE CANADIEN Department of Canadian Heritage 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les activités de l’Institut canadien de conservation d’information sur le patrimoine et du Bureau de cert diovisuels canadiens; b) les activités afférentes au programme Expérience c) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 5a – Subventions inscrites à tout budget des dépenses pour – Contributions OFFICE NATIONAL DE L’ÉNERGIE National Energy Board 1a – Dépenses du programme – Contributions SECRÉTARIAT DU CONSEIL DU TRÉSOR Treasury Board Secretariat 1a – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant de la prestation de services de soutie l’article 29.2 de cette loi et de ses autres activités, à la c penses engagées au cours de l’exercice – Versement, à chacun des membres du Conseil privé de qui a qualité de ministre sans portefeuille ou de ministr rige pas un département d’État, d’un traitement n’excéd ministres d’État qui dirigent un département d’État, au tements, rajusté en application de l’article 67 de la Loi s Canada et au prorata, pour toute période inférieure à u 30a Besoins en matière de rémunération 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Autorisation donnée au Conseil du Trésor d’augmenter l’exercice pour : a) des prestations parentales et de maternité; b) des versements liés à la cessation de service ou d c) des rajustements apportés aux modalités de serv nistration publique fédérale, notamment la Gendarm et des membres des Forces canadiennes, qui n’ont p crédit 15, Rajustements à la rémunération. SERVICE CANADIEN D’APPUI AUX TRIBUNAUX ADMINIS Administrative Tribunals Support Service of Canada 1a – Dépenses du programme – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc SERVICE CANADIEN DU RENSEIGNEMENT DE SÉCURITÉ Canadian Security Intelligence Service 1a – Dépenses du programme SERVICE DE PROTECTION PARLEMENTAIRE Parliamentary Protective Service 1a – Dépenses du programme SOCIÉTÉ CANADIENNE D’HYPOTHÈQUES ET DE LOGEME Canada Mortgage and Housing Corporation 1a – Paiements à la Société visant à la rembourser pour les r elle sur les prêts consentis, les subventions et contribu penses contractées, les pertes subies et les frais et déb cas : a) au titre de la Loi nationale sur l’habitation; b) dans le cadre des attributions qui lui sont conféré dérale et qu’elle exerce en conformité avec la Loi su d’hypothèques et de logement. VIA RAIL CANADA INC. VIA Rail Canada Inc. 1a – Paiements à la société pour les dépenses liées à sa gest – Paiements à la société pour les dépenses en capital – Paiements à la société en vue de la prestation d’un serv conformément aux contrats conclus en vertu du sous-a (Transports) de la Loi no 1 de 1977 portant affectation d 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 2 SCHEDULE 2 Based on Supplementary Estimates (A), 2017–18, the amount gr items set out in this Schedule. Sums granted to Her Majesty by this Act for the fiscal year endin following fiscal year ending March 31, 2019 and the purposes for w Vote No. Items CANADA BORDER SERVICES AGENCY Agence des services frontaliers du Canada 1a – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) fees, related to border operations, for the provisi of a facility or for a product, right or privilege; and (b) payments received under contracts entered into 5a – Capital expenditures PARKS CANADA AGENCY Agence Parcs Canada 1a – Program expenditures – Capital expenditures – The grants listed in any of the Estimates for the fiscal y – Contributions, including (a) expenditures on other than federal property; and (b) payments to provinces and municipalities as con cost of undertakings carried out by those bodies 2015-2016-2017 Chapter 18: Appropriation Act No. 3, 2017–18 SCHEDULE 2 (French) ANNEXE 2 D’après le Budget supplémentaire des dépenses (A) 2017-2018, la des postes figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice en cours et à l’exercice suivant se terminant le 31 mars 2019, et fin No du crédit Postes AGENCE DES SERVICES FRONTALIERS DU CANADA Canada Border Services Agency 1a – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, les recette lui-ci et provenant des éléments ci-après, à la compens gées au cours de l’exercice : a) les droits — liés aux activités à la frontière — perç service, l’utilisation d’une installation, l’achat d’un p droit ou d’un privilège; b) les paiements reçus au titre de contrats conclus p 5a – Dépenses en capital AGENCE PARCS CANADA Parks Canada Agency 1a – Dépenses du programme – Dépenses en capital – Subventions inscrites à tout budget des dépenses pour – Contributions, notamment : a) les dépenses afférentes à des propriétés autres q ment fédéral; b) les paiements aux provinces et aux municipalités l’égard des engagements assumés par ces dernière Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 30 An Act to recognize Charlottetown as the birthplace of Confederation ASSENTED TO DECEMBER 12, 2017 BILL S-236 SUMMARY This enactment recognizes Charlottetown as the birthplace of Confederation. ii 64-65-66 ELIZABETH II CHAPTER 30 An Act to recognize Charlottetown as the birthplace of Confederation [Assented to 12th December, 2017] Preamble Whereas, on September 1, 1864, leaders of the governments and legislatures of Prince Edward Island, Nova Scotia, New Brunswick and the Province of Canada met in Charlottetown, Prince Edward Island, and created a shared vision of a union of the British North American colonies and the creation of a new country; Whereas the ambitions and ideals that flourished at and grew out of the Charlottetown Conference form part of the basis for the nation of Canada; Whereas the rich heritage of Charlottetown is reflected in the recognition of Province House, where the discussions took place, as a national historic site and in the recognition of other national historic sites in Charlottetown in view of their strong association with the birth of this country; Whereas, by Proclamation of the Prime Minister of Canada on September 1, 1996, the role of Charlottetown as the birthplace of Confederation was recognized and affirmed as an integral part of our Canadian heritage; And whereas September 1, 2014, marked the 150th anniversary of the Charlottetown Conference, which, along with the Quebec Conference of 1864 and the London Conference of 1866-1867, led to the promulgation of the Constitution Act, 1867; Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2015-2016-2017 Chapter 30: An Act to recognize Charlottetown as the birthplace of Confederation Sections 1-3 Short title 1 This Act may be cited as the Recognition of Charlottetown as the Birthplace of Confederation Act. Birthplace of Confederation 2 Charlottetown, Prince Edward Island, is recognized as and declared to be the birthplace of Confederation. Jurisdiction of the Minister 3 For greater certainty, nothing in this Act constitutes a designation within the jurisdiction of the Minister responsible for the Parks Canada Agency under the Parks Canada Agency Act. Published under authority of the Senate of Canada 2015-2016-2017 Disponible sur le site Web du Sénat du Canad

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 24 An Act respecting National Sickle Cell Awareness Day ASSENTED TO DECEMBER 12, 2017 BILL S-211 SUMMARY This enactment designates the nineteenth day of June in each and every year as “National Sickle Cell Awareness Day”. ii 64-65-66 ELIZABETH II CHAPTER 24 An Act respecting National Sickle Cell Awareness Day [Assented to 12th December, 2017] Preamble Whereas sickle cell disease is characterized by a mutation in the shape of the red blood cell from a smooth, circular shape to a crescent shape, which can result in the blockage of small blood vessels and the impairment of blood flow, leading to a reduction in red blood cell survival and subsequent anemia; Whereas the poor blood oxygen levels and blood vessel blockages that result from sickle cell disease can lead to severe chronic pain, serious bacterial infections and tissue death; Whereas blood vessel blockages can affect all parts of the body and result in organs becoming starved for oxygen and unable to function properly; Whereas the lifespan of persons with severe sickle cell disease can be reduced by as much as 30 years; Whereas approximately 5% of the world’s population carries the trait gene for sickle cell disease, with the percentage of carriers of the gene being as high as 25% in some regions; Whereas sickle cell disease is particularly common among people whose ancestors come from India, Saudi Arabia and Mediterranean and Sub-Saharan African countries; Whereas it is important to raise awareness of sickle cell disease, including the need for uniform screening of newborns and improved diagnosis and treatment of the disease; And whereas the 19th of June is recognized annually by organizations such as the African Union, the World Health Organization, and the United Nations including the United Nations Educational, Scientific and Cultural Organization, as World Sickle Cell Day in order to promote awareness of the disease around the world; 2015-2016-2017 Chapter 24: An Act respecting National Sickle Cell Awareness Day Short Title Sections 1-3 Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the National Sickle Cell Awareness Day Act. National Sickle Cell Awareness Day National Sickle Cell Awareness Day 2 Throughout Canada, in each and every year, the nineteenth day of June is to be known as “National Sickle Cell Awareness Day”. Not a legal holiday 3 For greater certainty, National Sickle Cell Awareness Day is not a legal holiday or a non-juridical day. Published under authority of the Senate of Canada 2015-2016-2017 Disponible sur le site Web du Sénat du Canad

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 20 An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures ASSENTED TO JUNE 22, 2017 BILL C-44 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures”. SUMMARY Part 1 implements certain income tax measures proposed in the March 22, 2017 budget by (a) eliminating the investment tax credit for child care spaces; (b) eliminating the deduction for eligible home relocation loans; (c) ensuring that amounts received on account of the caregiver recognition benefit under the Veterans Well-being Act are exempt from income tax; (d) eliminating tax exemptions of allowances for members of legislative assemblies and certain municipal officers; (e) eliminating the tax exemption for insurers of farming and fishing property; (f) eliminating the additional deduction for gifts of medicine; (g) replacing the existing caregiver credit, infirm dependant credit and family caregiver tax credit with the new Canada caregiver credit; (h) eliminating the public transit tax credit; (i) ensuring certain costs related to the use of reproductive technologies qualify for the medical expense tax credit; (j) extending the list of medical practitioners that can certify eligibility for the disability tax credit to include nurse practitioners; (k) extending eligibility for the tuition tax credit to fees paid for occupational skills courses at post-secondary institutions and taking into account such courses in determining whether an individual is a qualifying student under the Income Tax Act; (l) extending, for one year, the mineral exploration tax credit for flow-through share investors; (m) eliminating the tobacco manufacturers’ surtax; (n) permitting employers to distribute T4 information slips electronically provided certain conditions are met; and (o) delaying the repeal of the provisions related to the National Child Benefit supplement in the Income Tax Act. ii Chapter 20: Budget Implementation Act, 2017, No. 1 SUMMARY Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2017 budget by (a) adding naloxone and its salts to the list of GST/HST zerorated non-prescription drugs that are used to treat life-threatening conditions; (b) amending the definition of “taxi business” to require, in certain circumstances, providers of ride-sharing services to register for the GST/HST and charge GST/HST in the same manner as taxi operators; and (c) repealing the GST/HST rebate available to non-residents for the GST/HST that is payable in respect of the accommodation portion of eligible tour packages. Part 3 implements certain excise measures proposed in the March 22, 2017 budget by (a) adjusting excise duty rates on tobacco products to account for the elimination of the tobacco manufacturers’ surtax; and (b) increasing the excise duty rates on alcohol products by 2% and automatically adjusting those rates annually by the Consumer Price Index starting in April 2018. Part 4 enacts and amends several Acts in order to implement various measures. Division 1 of Part 4 amends the Special Import Measures Act to provide for binding and appealable rulings as to whether a particular good falls within the scope of a trade remedy measure, authorities to investigate and address the circumvention of trade remedy measures, consideration of whether a particular market situation is rendering selling prices in an exporting country unreliable for the purposes of determining normal values and the termination of a trade remedy investigation in respect of an exporter found to have an insignificant margin of dumping or amount of subsidy. Division 2 of Part 4 enacts the Borrowing Authority Act, which allows the Minister of Finance to borrow money on behalf of Her Majesty in right of Canada with the authorization of the Governor in Council and provides for the maximum amount of certain borrowings. The Division amends the Financial Administration Act and the Hibernia Development Project Act to provide that the applicable rate of currency exchange quoted by the Bank of Canada is its daily average rate. It also amends the Financial Administration Act to allow that Minister to choose a rate of currency exchange other than one quoted by the Bank of Canada. Finally, it makes a consequential amendment to the Budget Implementation Act, 2016, No. 1. Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act and the Bank Act to (a) specify that one of the objects of the Canada Deposit Insurance Corporation is to act as the resolution authority for its member institutions; 2015-2016-2017 ii Chapter 20: Budget Implementation Act, 2017, No. 1 SUMMARY (b) require Canada’s domestic systemically important banks to develop, submit and maintain resolution plans to that Corporation; and (c) provide the Superintendent of Financial Institutions greater flexibility in setting the requirement for domestic systemically important banks to maintain a minimum capacity to absorb losses. Division 4 of Part 4 amends the Shared Services Canada Act in order to permit the Minister responsible for Shared Services Canada to do the following, subject to any terms and conditions that that Minister specifies: (a) delegate certain powers given to that Minister under that Act to an “appropriate Minister”, as defined in section 2 of the Financial Administration Act; and (b) authorize in exceptional circumstances a department to obtain a particular service other than from that Minister through Shared Services Canada, including by meeting its requirement for that service internally. Division 5 of Part 4 authorizes a payment to be made out of the Consolidated Revenue Fund to the Canadian Institute for Advanced Research to support a pan-Canadian artificial intelligence strategy. Division 6 of Part 4 amends the Canada Student Financial Assistance Act to expand eligibility for student financial assistance under that Act to include persons registered as Indians under the Indian Act, whether or not they are Canadian citizens, permanent residents or protected persons. It also amends the Canada Education Savings Act to permit the primary caregiver’s cohabiting spouse or common-law partner to designate a trust to which is to be paid a Canada Learning Bond or an additional amount of a Canada Education Savings grant and to apply to the Minister for the waiver of certain requirements of that Act or the regulations to avoid undue hardship. It also amends that Act to provide rules for the payment of an additional amount of a Canada Education Savings grant in situations where more than one trust has been designated. Division 7 of Part 4 amends the Parliament of Canada Act to provide for the Parliamentary Budget Officer to report directly to Parliament and to be supported by an office that is separate from the Library of Parliament and to provide for the appointment and tenure of the Parliamentary Budget Officer to be that of an officer of Parliament. It expands the Parliamentary Budget Officer’s right of access to government information, clarifies the Parliamentary Budget Officer’s mandate with respect to the provision of research, analysis and costings and establishes a new mandate with respect to the costing of platform proposals during election periods. It also makes consequential amendments to certain Acts. This Division also amends the Parliament of Canada Act to provide that the meetings of the Board of Internal Economy of the House of Commons are open, with certain exceptions, to the public. Division 8 of Part 4 amends the Investment Canada Act to provide for an immediate increase to $1 billion of the review threshold amount for certain investments by WTO investors that are not state-owned enterprises. In addition, it requires that the report of the Director of Investments on the administration of that Act also include Part IV.1. Division 9 of Part 4 provides funding to provinces for home care services and mental health services for the fiscal year 2017–2018. 2015-2016-2017 iv Chapter 20: Budget Implementation Act, 2017, No. 1 SUMMARY Division 10 of Part 4 amends the Judges Act to implement the Response of the Government of Canada to the Report of the 2015 Judicial Compensation and Benefits Commission. It provides for the continued statutory indexation of judicial salaries, an increase to the salaries of Federal Court prothonotaries to 80% of that of a Federal Court judge, an annual allowance for prothonotaries and reimbursement of legal costs incurred during their participation in the compensation review process. It also makes changes to the compensation of certain current and former chief justices to appropriately compensate them for their service and it makes technical amendments to ensure the correct division of annuities and enforcement of financial support orders, where necessary. Finally, it increases the number of judges of the Court of Queen’s Bench of Alberta and the Yukon Supreme Court and increases the number of judicial salaries that may be paid under paragraph 24(3)(a) of that Act from thirteen to sixteen and under paragraph 24(3)(b) from fifty to sixty-two. Division 11 of Part 4 amends the Employment Insurance Act to, among other things, allow for the payment of parental benefits over a longer period at a lower benefit rate, allow maternity benefits to be paid as early as the 12th week before the expected week of birth, create a benefit for family members to care for a critically ill adult and allow for benefits to care for a critically ill child to be payable to family members. This Division also amends the Canada Labour Code to, among other things, increase the maximum length of parental leave to 63 weeks, extend the period prior to the estimated date of birth when the maternity leave may begin to 13 weeks, create a leave for a family member to care for a critically ill adult and allow for the leave related to the critical illness of a child to be taken by a family member. Division 12 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things, (a) specify to whom career transition services may be provided under Part 1 of the Act and authorize the Governor in Council to make regulations respecting those services; (b) create a new education and training benefit that will provide a veteran with up to $80,000 for a course of study at an educational institution or for other education or training that is approved by the Minister of Veterans Affairs; (c) end the family caregiver relief benefit and replace it with a caregiver recognition benefit that is payable to a person designated by a veteran; (d) authorize the Minister of Veterans Affairs to waive the requirement for an application for compensation, services or assistance under the Act in certain cases; (e) set out to whom any amount payable under the Act is to be paid if the person who is entitled to that amount dies before receiving it; and (f) change the name of the Act. 2015-2016-2017 v Chapter 20: Budget Implementation Act, 2017, No. 1 SUMMARY The Division also amends the Pension Act and the Department of Veterans Affairs Act to remove references to hospitals under the jurisdiction of the Department of Veterans Affairs as there are no longer any such hospitals. Finally, it makes consequential amendments to other Acts. Division 13 of Part 4 amends the Immigration and Refugee Protection Act to (a) provide that a foreign national who is a member of a certain portion of the class of foreign nationals who are nominated by a province or territory for the purposes of that Act may be issued an invitation to make an application for permanent residence only in respect of that class; (b) provide that a foreign national who declines an invitation to make an application in relation to an expression of interest remains eligible to be invited to make an application in relation to the same expression of interest; (c) authorize the Minister to give a single ministerial instruction that sets out the rank, in respect of different classes, that an eligible foreign national must occupy to be invited to make an application; (d) provide that a ministerial instruction respecting the criteria that a foreign national must meet to be eligible to be invited to make an application applies in respect of an expression of interest that is submitted before the day on which the instruction takes effect; (e) authorize the Minister, for the purpose of facilitating the selection of a foreign national as a member of a class or a temporary resident, to disclose personal information in relation to the foreign national that is provided to the Minister by a third party or created by the Minister; (f) set out the circumstances in which an officer under that Act may issue documents in respect of an application to foreign nationals who do not meet certain criteria or do not have the qualifications they had when they were issued an invitation to make an application; and (g) provide that the Service Fees Act does not apply to fees for the acquisition of permanent residence status or to certain fees for services provided under the Immigration and Refugee Protection Act. Division 14 of Part 4 amends the Employment Insurance Act to broaden the definition of “insured participant”, in Part II of that Act, as well as the support measures that may be established by the Canada Employment Insurance Commission. It also repeals certain provisions of that Act. Division 15 of Part 4 amends the Aeronautics Act, the Navigation Protection Act, the Railway Safety Act and the Canada Shipping Act, 2001 to provide the Minister of Transport with the authority to enter into agreements respecting any matter for which a charge or fee could be prescribed under those Acts and to make related amendments. Division 16 of Part 4 amends the Food and Drugs Act to give the Minister of Health the authority to fix user fees for services, use of facilities, regulatory processes and approvals, products, rights and privileges that are related to drugs, medical devices, food and cosmetics. It also gives that Minister the authority to remit those fees, to adjust them and to withhold or withdraw services for the non-payment of them. Finally, it exempts those fees from the Service Fees Act. 2015-2016-2017 v Chapter 20: Budget Implementation Act, 2017, No. 1 SUMMARY Division 17 of Part 4 amends the Canada Labour Code to, among other things, (a) transfer to the Canada Industrial Relations Board the powers, duties and functions of appeals officers under Part II of that Act and of referees and adjudicators under Part III of that Act; (b) provide a complaint mechanism under Part III of that Act for employer reprisals; (c) permit the Minister of Labour to order an employer to determine, following an internal audit, whether it is in compliance with a provision of Part III of that Act and to provide the Minister with a corresponding report; (d) permit inspectors to order an employer to cease the contravention of a provision of Part III of that Act; (e) extend the period with respect to which a payment order to recover unpaid wages or other amounts may be issued; (f) impose administrative fees on employers to whom payment orders are issued; and (g) establish an administrative monetary penalty scheme to supplement existing enforcement measures under Parts II and III of that Act. This Division also amends the Wage Earner Protection Program Act to transfer to the Canada Industrial Relations Board the powers, duties and functions of adjudicators under that Act and makes consequential amendments to other Acts. Division 18 of Part 4 enacts the Canada Infrastructure Bank Act, which establishes the Canada Infrastructure Bank as a Crown corporation. The Bank’s purpose is to invest in, and seek to attract private sector and institutional investment to, revenue-generating infrastructure projects. The Act also provides for, among other things, the powers and functions of the Bank, its governance framework and its financial management and control, allows for the appointment of a designated Minister, and provides that the Minister of Finance may pay to the Bank up to $35 billion and approve loan guarantees. Finally, this Division makes consequential amendments to the Access to Information Act, the Financial Administration Act and the Payments in Lieu of Taxes Act. Division 19 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, expand the list of disclosure recipients to include the Department of National Defence and the Canadian Armed Forces and to include beneficial ownership information as “designated information” that can be disclosed by the Financial Transactions and Reports Analysis Centre of Canada. It also makes several technical amendments to ensure that the legislation functions as intended and to clarify certain provisions, including the definition of “client” and the application of that Act to trust companies. Division 20 of Part 4 enacts the Invest in Canada Act. It also makes consequential and related amendments to other Acts. Division 21 of Part 4 enacts the Service Fees Act. The Act requires responsible authorities, before certain fees are fixed, to develop fee proposals for consultation and to table them in Parliament. It also requires that performance standards be established in relation to certain fees and that responsible authorities remit those fees when the standards are not met. It adjusts certain fees on an annual basis in accordance with the Consumer 2015-2016-2017 vi Chapter 20: Budget Implementation Act, 2017, No. 1 SUMMARY Price Index. Furthermore, it requires responsible authorities and the President of the Treasury Board to report on fees. This Division also makes a related amendment to the Economic Action Plan 2014 Act, No. 1 and terminological amendments to other Acts and repeals the User Fees Act. 2015-2016-2017 vi TABLE OF PROVISIONS An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures Short Title 1 Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation 2 PART 2 Amendments to the Excise Tax Act (GST/HST Measures) PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 42 PART 4 Various Measures DIVISION 1 Special Import Measures Act 68 DIVISION 2 Public Debt 103 Enactment of Borrowing Authority Act An Act to provide the Minister of Finance with borrowing authority and to provide for a maximum amount of certain borrowings 1 Borrowing Authority Act Definitions 2015-2016-2017 ix Chapter 20: Budget Implementation Act, 2017, No. 1 TABLE OF PROVISIONS Borrowing authority Maximum amount that may be borrowed Exception — amounts not counting towards total Exception — maximum amount may be exceeded Minister’s responsibility Report to Parliament DIVISION 3 Financial Sector Stability 108 DIVISION 4 Shared Services Canada Act 113 DIVISION 5 Payment to the Canadian Institute for Advanced Research 115 DIVISION 6 Financial Assistance for Students 116 DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy 122 DIVISION 8 Investment Canada Act 192 DIVISION 9 Funding for Home Care Services and Mental Health Services 195 DIVISION 10 Judges Act 196 DIVISION 11 Support for Families: Benefits and Leaves 229 2015-2016-2017 x Chapter 20: Budget Implementation Act, 2017, No. 1 TABLE OF PROVISIONS DIVISION 12 Canadian Forces Members and Veterans 270 DIVISION 13 Immigration and Refugee Protection Act 300 DIVISION 14 Employment Insurance Act 306 DIVISION 15 Agreements — Minister of Transport 312 DIVISION 16 Food and Drugs Act 317 DIVISION 17 Labour and Employment Laws 318 DIVISION 18 Canada Infrastructure Bank Act 403 Enactment of Act An Act to establish the Canada Infrastructure Bank Short Title 1 Canada Infrastructure Bank Act Interpretation 2 Definitions Designation and Appropriate Minister 3 Designation of Minister Appropriate Minister Establishment and Organization of the Bank Status of the Bank 5 Establishment 2015-2016-2017 x Chapter 20: Budget Implementation Act, 2017, No. 1 TABLE OF PROVISIONS Purpose and Functions 6 Purpose of Bank Functions of Bank Board and Chief Executive Officer 8 Membership of Board Appointment of Chief Executive Officer Ineligibility for appointment No overlapping offices Remuneration Expenses of directors Accident compensation Committees of Board Financial Management and Control 16 Corporate plans Operating budgets Certain Bank Powers 18 Investments, etc. Loan guarantees — limitation Non-application of provision Subsidiaries — Ministerial authorization Powers of Minister of Finance 22 Recommendation for loan or loan guarantee Capital payments Loans to the Bank Miscellaneous Provisions 25 Capital and shares Financial year Five-year review Privileged information Use of Bank’s name, initials or acronyms Auditors Offence Regulations Inconsistency Transitional Provisions 34 First Chief Executive Officer 2015-2016-2017 xi Chapter 20: Budget Implementation Act, 2017, No. 1 TABLE OF PROVISIONS DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act 407 DIVISION 20 Invest in Canada Act 442 Enactment of Act An Act to establish the Invest in Canada Hub Short Title 1 Invest in Canada Act Interpretation 2 Definitions Designation 3 Designation of Minister Invest in Canada Hub Established 4 Invest in Canada Hub Mandate 5 Mandate Functions and Powers 6 Functions Powers of Invest in Canada Hub General authority Procurement of goods and services Legal proceedings Minister 11 Responsibility of Minister Board of Directors 12 Establishment and composition Role of board of directors Chairperson and Vice-Chaiperson 14 Role of Chairperson 2015-2016-2017 xi Chapter 20: Budget Implementation Act, 2017, No. 1 TABLE OF PROVISIONS Chief Executive Officer 15 Appointment Role of Chief Executive Officer Human Resources 17 Human resources management Power to appoint Group insurance and benefit programs Staffing program Negotiation of collective agreements Pension — Chief Executive Officer Compensation DIVISION 21 Modernization of Service Fees 451 Enactment of the Service Fees Act An Act respecting certain government fees, charges and levies Short Title 1 Service Fees Act Interpretation 2 Definitions Performance Standards 3 Application — sections 4 to 7 Obligation — responsible authority Amendments Accessibility Remissions Statutory Instruments Act Consultation and Parliamentary Review 9 Application — sections 10 to 15 Requirements Fee proposal Consultation Complaints Tabling of materials in Parliament Parliamentary review 2015-2016-2017 xi Chapter 20: Budget Implementation Act, 2017, No. 1 TABLE OF PROVISIONS Annual Adjustment 16 Non-application — sections 17 and 18 Consumer Price Index Effect of section 17 Reports 19 Non-application — sections 20 and 21 Report — responsible authority Report — President of the Treasury Board Low-materiality Fees 22 Non-application — sections 3 to 18 SCHEDULE 1 SCHEDULE 2 2015-2016-2017 xv 64-65-66 ELIZABETH II CHAPTER 20 An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures [Assented to 22nd June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short Title 1 This Act may be cited as the Budget Implementation Act, 2017, No. 1. PART 1 Amendments to the Income Tax Act and to Related Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 (1) Paragraph 6(1)(f.1) of the Income Tax Act is replaced by the following: Canadian Forces members and veterans income replacement benefits (f.1) the total of all amounts received by the taxpayer in the year on account of an earnings loss benefit, a supplementary retirement benefit or a career impact allowance payable to the taxpayer under Part 2 of the Veterans Well-being Act; (2) Subsection (1) comes into force on April 1, 2018. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 3-6 3 (1) Subsection 18(9) of the Act is amended by adding “and” at the end of paragraph (d), by striking out “and” at the end of paragraph (e) and by repealing paragraph (f). (2) Subsection (1) applies in respect of expenditures incurred after March 21, 2017, except that subsection (1) does not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017. 4 (1) Paragraph 20(1)(nn.1) of the Act is repealed. (2) Subsection (1) applies in respect of expenditures incurred after March 21, 2017, except that subsection (1) does not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017. 5 (1) Subsection 80.4(4) of the Act is replaced by the following: Interest on loans for home purchase or relocation (4) For the purpose of computing the benefit under subsection (1) in a taxation year in respect of a home purchase loan or a home relocation loan, the amount of interest determined under paragraph (1)(a) shall not exceed the amount of interest that would have been determined thereunder if it had been computed at the prescribed rate in effect at the time the loan was received or the debt was incurred, as the case may be. (2) Subsection (1) comes into force on January 1, 2018. 6 (1) Paragraph 81(1)(d.1) of the Act is replaced by the following: Canadian Forces members and veterans amounts (d.1) the total of all amounts received by the taxpayer in the year on account of a Canadian Forces income support benefit payable to the taxpayer under Part 2 of the Veterans Well-being Act, on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of that Act or on account of a family caregiver relief benefit or a caregiver recognition benefit payable to the taxpayer under Part 3.1 of that Act; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 6-9 (2) Paragraph 81(1)(d.1) of the Act, as enacted by subsection (1), is replaced by the following: Canadian Forces members and veterans amounts (d.1) the total of all amounts received by the taxpayer in the year on account of a Canadian Forces income support benefit payable to the taxpayer under Part 2 of the Veterans Well-being Act, on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of that Act or on account of a caregiver recognition benefit payable to the taxpayer under Part 3.1 of that Act; (3) Subsections 81(2) and (3) of the Act are repealed. (4) Subsection (1) comes into force on April 1, 2018. (5) Subsection (2) applies in respect of the 2020 and subsequent taxation years. (6) Subsection (3) comes into force on January 1, 2019. 7 (1) Paragraph (b) of the definition taxable Canadian corporation in subsection 89(1) of the Act is replaced by the following: (b) was not, by reason of a statutory provision, exempt from tax under this Part; (société canadienne imposable) (2) Subsection (1) applies to taxation years that begin after 2018. 8 (1) Paragraph 110(1)(j) of the Act is repealed. (2) Subsection 110(1.4) of the Act is repealed. (3) Subsections (1) and (2) come into force on January 1, 2018. 9 (1) Paragraph 110.1(1)(a.1) of the Act is repealed. (2) Subsections 110.1(8) and (9) of the Act are repealed. (3) Subsections (1) and (2) apply in respect of gifts made after March 21, 2017. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 10-12 10 (1) Paragraph (b) of the description of E in the definition non-capital loss in subsection 111(8) of the Act is replaced by the following: (b) an amount deducted under paragraph (1)(b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or (2) Subsection (1) comes into force on January 1, 2018. 11 (1) Subsection 117.1(1.1) of the Act is repealed. (2) Subsection (1) applies to the 2017 and subsequent taxation years. 12 (1) Clause (A) of the description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the Act is replaced by the following: (A) $2,150 if the spouse or common-law partner is dependent on the individual by reason of mental or physical infirmity, and (2) The portion of clause (A) before subclause (I) of the description of D in subparagraph (b)(iv) of the description of B in subsection 118(1) of the Act is replaced by the following: (A) $2,150 if (3) The portion of paragraph (b.1) before subparagraph (i) of the description of B in subsection 118(1) of the Act is replaced by the following: Caregiver amount for infirm child (b.1) $2,150 for each child, who is under the age of 18 years at the end of the taxation year, of the individual and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s personal needs and care, when compared to children of the same age if (4) Paragraphs (c.1) to (e) of the description of B in subsection 118(1) of the Act are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 12 Canada caregiver credit (d) for each person who, at any time in the year, (i) is dependent on the individual because of mental or physical infirmity, and (ii) either (A) is a spouse or common-law partner of the individual, or (B) has attained the age of 18 years and is a dependant of the individual, the amount determined by the formula $6,883 − E where E is the amount, if any, by which the dependant’s income for the year exceeds $16,163, and Additional amount (e) in the case of an individual entitled to a deduction in respect of a person because of paragraph (a) or (b) and who would also be entitled, but for paragraph (4)(c), to a deduction because of paragraph (d) in respect of the person, the amount by which the amount that would be determined under paragraph (d) exceeds the amount determined under paragraph (a) or (b), as the case may be, in respect of the person. (5) Paragraphs 118(4)(c) to (e) of the Act are replaced by the following: (c) if an individual is entitled to a deduction under subsection (1) because of paragraph (a) or (b) of the description of B in subsection (1) for a taxation year in respect of any person, no amount may be deducted because of paragraph (d) of that description by any individual for the year in respect of the person; and (d) if more than one individual is entitled to a deduction under subsection (1) because of paragraph (d) of the description of B in subsection (1) for a taxation year in respect of the same person, (i) the total of all amounts so deductible for the year shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that person if that individual were the only individual entitled to deduct an amount for the year because of that paragraph for that person, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 12-13 (ii) if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. (6) The portion of subsection 118(6) of the Act before paragraph (a) is replaced by the following: Definition of dependant (6) For the purposes of paragraph (d) of the description of B in subsection (1), dependant, of an individual for a taxation year, means a person who at any time in the year is dependent on the individual for support and is (7) Subsections (1) to (6) apply to the 2017 and subsequent taxation years. However, for the 2017 taxation year, subsection 117.1(1) of the Act does not apply in respect of amounts expressed in dollars in (a) clause (A) of the description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the Act, as enacted by subsection (1); (b) clause (A) of the description of D in subparagraph (b)(iv) of the description of B in subsection 118(1) of the Act, as amended by subsection (2); (c) paragraph (b.1) of the description of B in subsection 118(1) of the Act, as amended by subsection (3); and (d) paragraph (d) of the description of B in subsection 118(1) of the Act, as enacted by subsection (4). 13 (1) The description of C in the description of B in subsection 118.02(2) of the Act is replaced by the following: C is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year and before July 2017 by the individual or by a person who is in the taxation year a qualifying relation of the individual, and (2) Section 118.02 of the Act, as amended by subsection (1), is repealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 13-16 (3) Subsection (1) applies to the 2017 taxation year. (4) Subsection (2) applies to the 2018 and subsequent taxation years. 14 (1) Clause (c)(i)(B) of the definition eligible individual in subsection 118.041(1) of the Act is replaced by the following: (B) paragraph (d) of the description of B in that subsection where the qualifying individual is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or commonlaw partner, or (2) Subsection (1) applies to the 2017 and subsequent taxation years. 15 (1) Section 118.2 of the Act is amended by adding the following after subsection (2.1): Fertility expenses (2.2) An amount is deemed to be a medical expense of an individual for the purposes of this section if the amount (a) is paid for the purpose of a patient (within the meaning of subsection (2)) conceiving a child; and (b) would be a medical expense of the individual (within the meaning of subsection (2)) if the patient were incapable of conceiving a child because of a medical condition. (2) Subsection (1) applies to the 2017 and subsequent taxation years. However, if an individual makes a request for a refund in respect of a taxation year to the Minister of National Revenue within the time limit specified in paragraph 164(1.5)(a) of the Act, subsection (1) also applies in respect of that taxation year. 16 (1) The portion of paragraph 118.3(1)(a.2) of the Act before subparagraph (i) is replaced by the following: (a.2) in the case of an impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a single basic activity of daily living is markedly restricted or would be so 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 16-17 restricted but for therapy referred to in paragraph (a.1), a medical practitioner has certified in prescribed form that the impairment is a severe and prolonged impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted, but for therapy referred to in paragraph (a.1), where the medical practitioner is a medical doctor, a nurse practitioner or, in the case of (2) Subparagraphs 118.3(1)(a.3)(i) and (ii) of the Act are replaced by the following: (i) an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, a medical doctor, a nurse practitioner or an occupational therapist, and (ii) in the case of any other impairment, a medical doctor or nurse practitioner, (3) Clause 118.3(2)(a)(i)(B) of the Act is replaced by the following: (B) paragraph (d) of that description where the person is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or common-law partner, or (4) Subsections (1) and (2) apply in respect of certifications made after March 21, 2017. (5) Subsection (3) applies to the 2017 and subsequent taxation years. 17 (1) The portion of subsection 118.4(2) of the Act before paragraph (a) is replaced by the following: Reference to medical practitioners, etc. (2) For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, nurse practitioner, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 17-19 occupational therapist, optometrist, pharmacist, physiotherapist, psychologist or speech-language pathologist is a reference to a person authorized to practise as such, (2) Subsection (1) is deemed to have come into force on March 22, 2017. 18 (1) Subparagraph 118.5(1)(a)(ii.1) of the Act is replaced by the following: (ii.1) are paid to an educational institution described in subparagraph (i) in respect of courses that are not at the post-secondary school level, if (A) the individual had not attained the age of 16 years before the end of the year, or (B) the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation, (2) Subsection (1) applies to the 2017 and subsequent taxation years. 19 (1) The portion of the definition qualifying educational program in subsection 118.6(1) of the Act before paragraph (a) is replaced by the following: qualifying educational program means a program of not less than three consecutive weeks duration that provides that each student taking the program spend not less than 10 hours per week on courses or work in the program and, in respect of a program at an institution described in the definition designated educational institution (other than an institution described in subparagraph (a)(ii) of that definition), that is a program that does not consist primarily of research (unless the program leads to a diploma from a college or a Collège d’enseignement général et professionnel, or a bachelor, masters, doctoral or equivalent degree) but, in relation to any particular student, does not include a program if the student receives, from a person with whom the student is dealing at arm’s length, any allowance, benefit, grant or reimbursement for expenses in respect of the program other than (2) The portion of paragraph (c) of the definition qualifying student in subsection 118.6(1) of the Act before subparagraph (i) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 19-22 (c) in the case of an individual who is enrolled in a program (other than a program at the post-secondary school level) at a designated educational institution described in subparagraph (a)(i) of the definition designated educational institution or who is enrolled in a program at a designated educational institution described in subparagraph (a)(ii) of that definition, (3) The definition qualifying student in subsection 118.6(1) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in the case of an individual who is enrolled at a designated educational institution described in paragraph (c) of the definition designated educational institution, is enrolled in a program that is at the postsecondary level; (étudiant admissible) (4) Subsections (1) to (3) apply to the 2017 and subsequent taxation years. 20 (1) Section 118.92 of the Act is replaced by the following: Ordering of credits 118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121. (2) Subsection (1) applies to the 2018 and subsequent taxation years. 21 (1) Subparagraph 122.3(1)(e)(iii) of the Act is replaced by the following: (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d.2), (d.3), (f) or (g), in computing the individual’s taxable income for the year. (2) Subsection (1) comes into force on January 1, 2018. 22 (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 22-23 (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and (2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following: (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and (3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following: (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g), in computing the taxpayer’s taxable income for the year, (4) Subsections (1) to (3) come into force on January 1, 2018. 23 (1) Subparagraph 127(5)(a)(i) of the Act is replaced by the following: (i) the taxpayer’s investment tax credit at the end of the year in respect of property acquired before the end of the year, of the taxpayer’s apprenticeship expenditure for the year or a preceding taxation year, of the taxpayer’s flow-through mining expenditure for the year or a preceding taxation year, of the taxpayer’s pre-production mining expenditure for the year or a preceding taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the year or at the end of a preceding taxation year, and (2) Clause 127(5)(a)(ii)(A) of the Act is replaced by the following: (A) the taxpayer’s investment tax credit at the end of the year in respect of property acquired in a subsequent taxation year, of the taxpayer’s apprenticeship expenditure for a subsequent taxation year, of the taxpayer’s flow-through mining expenditure for a subsequent taxation year, of the taxpayer’s pre-production mining expenditure for a subsequent taxation year or of the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 23 taxpayer’s SR&ED qualified expenditure pool at the end of the subsequent taxation year to the extent that an investment tax credit was not deductible under this subsection for the subsequent taxation year, and (3) Subsection 127(7) of the Act is replaced by the following: Investment tax credit of certain trusts (7) If, in a particular taxation year of a taxpayer who is a beneficiary under a trust that is a graduated rate estate or that is deemed to be in existence by section 143, an amount is determined in respect of the trust under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition investment tax credit in subsection (9) for its taxation year that ends in that particular taxation year, the trust may, in its return of income for its taxation year that ends in that particular taxation year, designate the portion of that amount that can, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be attributable to the taxpayer and was not designated by the trust in respect of any other beneficiary of the trust, and that portion is to be added in computing the investment tax credit of the taxpayer at the end of that particular taxation year and is to be deducted in computing the investment tax credit of the trust at the end of its taxation year that ends in that particular taxation year. (4) The portion of subsection 127(8) of the Act before paragraph (a) is replaced by the following: Investment tax credit of partnership (8) Subject to subsection (28), where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined in respect of the partnership, for its taxation year that ends in the particular taxation year, under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition investment tax credit in subsection (9), if (5) Subparagraph 127(8.2)(b)(i) of the Act is amended by adding “or” at the end of clause (A.1) and by repealing clause (A.2). (6) Paragraph 127(8.31)(a) of the Act is replaced by the following: (a) the total of all amounts each of which is an amount that would, if the partnership were a person and its fiscal period were its taxation year, be determined in respect of the partnership under paragraph (a), (a.1), 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Section 23 (a.4), (b) or (e.1) of the definition investment tax credit in subsection (9) for a taxation year that is the fiscal period, (7) The definitions child care space amount, eligible child care space expenditure, specified child care start-up expenditure and specified property in subsection 127(9) of the Act are repealed. (8) Paragraph (a) of the definition flow-through mining expenditure in subsection 127(9) of the Act is replaced by the following: (a) that is a Canadian exploration expense incurred by a corporation after March 2017 and before 2019 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2019) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition mineral resource in subsection 248(1), (9) Paragraphs (c) and (d) of the definition flowthrough mining expenditure in subsection 127(9) of the Act are replaced by the following: (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2017 and before April 2018, and (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2017 and before April 2018; (dépense minière déterminée) (10) Paragraph (a.5) of the definition investment tax credit in subsection 127(9) of the Act is repealed. (11) Paragraph (e.1) of the definition investment tax credit in subsection 127(9) of the Act is amended by adding “or” at the end of subparagraph (v), by replacing “or” at the end of subparagraph (vi) with “and” and by repealing subparagraph (vii). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 23-24 (12) Paragraph (f.1) of the definition specified percentage in subsection 127(9) of the Act is amended by adding “or” at the end of subparagraph (i), by striking out “or” at the end of subparagraph (ii) and by repealing subparagraph (iii). (13) Subsection 127(11.1) of the Act is amended by adding “and” at the end of paragraph (c.4) and by repealing paragraph (c.5). (14) Subsection 127(11.2) of the Act is replaced by the following: Time of acquisition (11.2) In applying subsections (5), (7) and (8), paragraphs (a) and (a.1) of the definition investment tax credit in subsection (9) and section 127.1, qualified property and qualified resource property are deemed not to have been acquired by a taxpayer before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d). (15) Subsections 127(27.1) to (27.12) of the Act are repealed. (16) Subsection 127(28.1) of the Act is repealed. (17) Subparagraph 127(30)(a) of the Act is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii). (18) Paragraph 127(30)(b) of the Act is replaced by the following: (b) the amount that would be determined in respect of the partnership under subsection (8) if that subsection were read without reference to subsections (28) and (35). (19) Subsections (1) to (7) and (10) to (18) apply in respect of expenditures incurred after March 21, 2017, except that they do not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017. (20) Subsections (8) and (9) apply to expenses renounced under a flow-through share agreement entered into after March 2017. 24 (1) Paragraph 149(1)(t) of the Act is repealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 24-28 (2) Subsections 149(4.1) to (4.3) of the Act are repealed. (3) The portion of subsection 149(10) of the Act before paragraph (a) is replaced by the following: Becoming or ceasing to be exempt (10) If at any time (in this subsection referred to as that time), a person — that is a corporation or, if that time is after September 12, 2013, a trust — becomes or ceases to be exempt from tax under this Part on its taxable income, the following rules apply: (4) Subsections (1) to (3) apply to taxation years that begin after 2018. 25 (1) Subsection 149.1(15) of the Act is amended by adding “and” at the end of paragraph (b), by striking out “and” at the end of paragraph (c) and by repealing paragraph (d). (2) Subsection (1) applies in respect of gifts made after March 21, 2017. 26 (1) Subsection 182(1) of the Act is replaced by the following: Surtax 182 (1) Every corporation shall pay a tax under this Part for the corporation’s taxation year equal to the amount determined by the formula 0.5A(B/C) where A is the corporation’s Part I tax on tobacco manufacturing profits for the year; B is the number of days in the year that are before March 23, 2017; and C is the number of days in the year. (2) Subsection (1) applies to taxation years that include March 22, 2017. 27 (1) Part II of the Act, as amended by subsection 26(1), is repealed. (2) Subsection (1) applies to taxation years that begin after March 22, 2017. 28 (1) The Act is amended by adding the following after section 221: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Act Sections 28-31 Providing information returns in electronic format 221.01 A person may provide an information return electronically under subsection 209(5) of the Income Tax Regulations if the criteria specified by the Minister are met. (2) Subsection (1) comes into force on January 1, 2018. 29 (1) Subparagraph 241(4)(d)(viii) of the Act is replaced by the following: (viii) to an official of the Department of Veterans Affairs solely for the purposes of the administration of the War Veterans Allowance Act, the Veterans Well-being Act or Part XI of the Civilian Warrelated Benefits Act, (2) Subsection (1) comes into force on April 1, 2018. 2016, c. 7 Budget Implementation Act, 2016, No. 1 30 Subsection 29(9) of the Budget Implementation Act, 2016, No. 1 is replaced by the following: (9) Subsections (2) to (5) come into force on July 1, 2018. C.R.C., c. 945 Income Tax Regulations 31 (1) Section 209 of the Income Tax Regulations is amended by adding the following after subsection (4): (5) A person may provide a Statement of Remuneration Paid (T4) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless (a) the specified criteria referred to in section 221.01 of the Act are not met; (b) the taxpayer has requested that the information return be provided in paper format; or (c) at the time the return is required to be issued, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Income Tax Regulations Sections 31-34 (i) the taxpayer is on extended leave or is no longer an employee of the person, or (ii) the taxpayer cannot reasonably be expected to have access to the information return in electronic format. (2) Subsection (1) applies in respect of information returns that are required to be filed after 2017. 32 (1) Section 3505 of the Regulations is repealed. (2) Subsection (1) applies in respect of gifts made after March 21, 2017. 33 (1) Subsection 4802(2) of the Regulations is repealed. (2) Subsection (1) applies to taxation years that begin after 2018. Coordinating Amendments 2016, c. 7 34 (1) In this section, other Act means the Budget Implementation Act, 2016, No. 1. (2) If subsection 29(9) of the other Act produces its effects before section 30 of this Act comes into force, then (a) that section 30 is deemed never to have come into force and is repealed; (b) the following amendments are deemed to have come into force on July 1, 2017: (i) the first formula in subsection 122.61(1) of the Income Tax Act is replaced by the following: (A + C + M)/12 (ii) the formula in the description of A in subsection 122.61(1) of the Income Tax Act is replaced by the following: E−Q−R 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Coordinating Amendments Section 34 (iii) subsection 122.61(1) of the Income Tax Act is amended by adding the following after the description of A: C is the amount determined by the formula F – (G × H) where is, if the person is, at the beginning of the month, an eligible individual in respect of F (a) only one qualified dependant, $2,308, and (b) two or more qualified dependants, the total of (i) $2,308 for the first qualified dependant, (ii) $2,042 for the second qualified dependant, and (iii) $1,943 for each of the third and subsequent qualified dependants, G is the amount determined by the formula J – [K – (L/0.122)] where H J is the person’s adjusted income for the year, K is $45,282, and L is the amount referred to in paragraph (a) of the description of F, and is (a) if the person is an eligible individual in respect of only one qualified dependant, 12.2%, and (b) if the person is an eligible individual in respect of two or more qualified dependants, the fraction (expressed as a percentage rounded to the nearest one-tenth of one per cent) of which (i) the numerator is the total that would be determined under the description of F in respect of the eligible individual if that description were applied without reference to the fourth and subsequent qualified dependants in respect of whom the person is an eligible individual, and (ii) the denominator is the amount referred to in paragraph (a) of the description of F, divided by 0.122; and (iv) the description of A in subsection 122.61(1) of the Income Tax Act is amended by striking out “and” at the end of the description of E, by adding “and” at the end of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 1 Amendments to the Income Tax Act and to Related Legislation Coordinating Amendments Sections 34-35 the description of Q and by adding the following after the description of Q: R is the amount determined for C; (c) the following amendments come into force on July 1, 2018: (i) the first formula in subsection 122.61(1) of the Income Tax Act is replaced by the following: (A + M)/12 (ii) the formula in the description of A in subsection 122.61(1) of the Income Tax Act is replaced by the following: E−Q (iii) the description of C in subsection 122.61(1) of the Income Tax Act is repealed, and (iv) the description of A in subsection 122.61(1) of the Income Tax Act is amended by striking out “and” at the end of the description of Q, by adding “and” at the end of the description of E and by repealing the description of R. (3) If this Act receives royal assent on July 1, 2017, then section 30 of this Act is deemed to have come into force before subsection 29(9) of the other Act has produced its effects. PART 2 R.S., c. E-15 Amendments to the Excise Tax Act (GST/HST Measures) 35 (1) The definition taxi business in subsection 123(1) of the Excise Tax Act is replaced by the following: taxi business means (a) a business carried on in Canada of transporting passengers by taxi or other similar vehicle for fares that are regulated under the laws of Canada or a province, or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 2 Amendments to the Excise Tax Act (GST/HST Measures) Sections 35-36 (b) a business carried on in Canada by a person of transporting passengers for fares by motor vehicle — being a vehicle that would be an automobile, as defined in subsection 248(1) of the Income Tax Act, if that definition were read without reference to “a motor vehicle acquired primarily for use as a taxi,” in its paragraph (c) and without reference to its paragraph (e) — within a particular municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, other than (i) the part of the business that does not involve the making of taxable supplies by the person, (ii) the part of the business that is the operation of a sightseeing service or the school transportation of elementary or secondary students, or (iii) a prescribed business or a prescribed activity of a business; (entreprise de taxis) (2) The portion of the definition short-term accommodation in subsection 123(1) of the Act before paragraph (a) is replaced by the following: short-term accommodation means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of section 252.4, (3) Subsection (1) comes into force or is deemed to have come into force on July 1, 2017. (4) Subsection (2) comes into force on January 1, 2018 but does not apply in respect of any rebate under section 252.1 of the Act in respect of a supply made before that day. 36 (1) The portion of subsection 234(2) of the Act before paragraph (a) is replaced by the following: Deduction for rebate in respect of supplies to nonresidents (2) If, in the circumstances described in subsection 252(3) or 252.4(2) or (4), a registrant pays to, or credits in favour of, a person an amount on account of a rebate 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 2 Amendments to the Excise Tax Act (GST/HST Measures) Sections 36-37 referred to therein, the registrant may deduct the amount in determining the net tax of the registrant for (2) The portion of subsection 234(2.1) of the Act before paragraph (a) is replaced by the following: Late filing of information and adjustment for failure to file (2.1) If a registrant is required to file prescribed information in accordance with subsection 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate, (3) The portion of paragraph 234(2.1)(a) of the English version of the Act after subparagraph (ii) is replaced by the following: the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.4(5) and ending on the filing day; and (4) Paragraph 234(2.1)(b) of the English version of the Act is replaced by the following: (b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.4(5) and ending on the day on or before which the registrant is required under section 238 to file a return for the reporting period of the registrant that includes the particular day. (5) Subsections (1) to (4) come into force on January 1, 2018 but do not apply in respect of any amount paid or credited on account of a rebate under section 252.1 of the Act in respect of a supply made before that day. 37 (1) Section 252.1 of the Act is repealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 2 Amendments to the Excise Tax Act (GST/HST Measures) Sections 37-39 (2) Subsection (1) is deemed to have come into force on March 23, 2017 but does not apply in respect of any supply made on or before March 22, 2017 or in respect of any supply made after March 22, 2017 but before 2018 if all of the consideration for that supply is paid before 2018. 38 (1) The portion of section 252.2 of the Act before paragraph (a) is replaced by the following: Restriction 252.2 A rebate shall not be paid under section 252 to a person unless (2) Paragraph 252.2(a) of the Act is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii). (3) Section 252.2 of the Act is amended by adding “and” at the end of paragraph (d.1), by striking out “and” at the end of paragraph (e) and by repealing paragraph (g). (4) Subsections (1) to (3) come into force on January 1, 2018 but do not apply in respect of any rebate under section 252.1 of the Act in respect of a supply made before that day. 39 (1) Section 252.4 of the Act is amended by adding the following before subsection (1): Definitions 252.4 (0.1) The following definitions apply in this section. camping accommodation means a campsite at a recreational trailer park or campground (other than a campsite included in the definition short-term accommodation in subsection 123(1) or included in that part of a tour package that is not the taxable portion, as defined in subsection 163(3), of the tour package) that is supplied by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the campsite is less than one month. It includes water, electricity and waste disposal services, or the right to their use, if they are accessed by means of an outlet or hook-up at the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 2 Amendments to the Excise Tax Act (GST/HST Measures) Sections 39-41 campsite and are supplied with the campsite. (emplacement de camping) tour package has the same meaning as in subsection 163(3), but does not include a tour package that includes a convention facility or related convention supplies. (voyage organisé) (2) Subsection (1) is deemed to have come into force on March 23, 2017. 40 (1) The portion of section 252.5 of the Act before paragraph (a) is replaced by the following: Liability for amount paid or credited 252.5 If, under section 252 or 252.4, a registrant at a particular time pays to, or credits in favour of, a person an amount on account of a rebate and (2) Subsection (1) comes into force on January 1, 2018 but does not apply in respect of any rebate under section 252.1 of the Act in respect of a supply made before that day. 41 (1) Paragraph 2(e) of Part I of Schedule VI to the Act is amended by striking out “and” at the end of subparagraph (ix), by adding “and” at the end of subparagraph (x) and by adding the following after subparagraph (x): (xi) Naloxone and its salts, (2) Subsection (1) is deemed to have come into force on March 22, 2016 except that it does not apply (a) to any supply made after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, the supplier charged, collected or remitted any amount as or on account of tax under Part IX of the Act in respect of the supply; (b) for the purposes of section 6 of Schedule VII to the Act, to goods imported after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, any amount was paid as or on account of tax under Part IX of the Act in respect of the importation; or (c) for the purposes of section 15 of Part I of Schedule X to the Act, to property brought into a participating province after March 21, 2016 but on or before March 22, 2017 if, on or before 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 2 Amendments to the Excise Tax Act (GST/HST Measures) Sections 41-42 March 22, 2017, any amount was paid as or on account of tax under Part IX of the Act in respect of the bringing into the province. PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 R.S., c. E-14 Excise Act 42 (1) The Excise Act is amended by adding the following after section 170.1: Definition of inflationary adjusted year 170.2 (1) In this section, inflationary adjusted year means 2018 and every year after that year. Annual adjustments (2) Each rate of duty set out in Part II of the schedule applicable in respect of a hectolitre of beer or malt liquor is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of (a) the rate determined by the formula A×B where A is the rate of duty applicable to the hectolitre on March 31 of the inflationary adjusted year, and B is the amount, rounded to the nearest onethousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula C/D where C is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and D is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act Sections 42-44 (b) the rate of duty referred to in the description of A in paragraph (a). Rounding (3) The adjusted rate determined under subsection (2) is to be rounded (a) in the case of the rates set out in sections 1 and 2 of Part II of the schedule, to the nearest one-hundredth or, if the adjusted rate is equidistant from two consecutive one-hundredths, to the higher one-hundredth; and (b) in the case of the rate set out in section 3 of Part II of the schedule, to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth. Consumer Price Index (4) In this section, the Consumer Price Index for any 12month period is the result arrived at by (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period; (b) dividing the aggregate obtained under paragraph (a) by 12; and (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive onethousandths, to the higher one-thousandth. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 43 (1) The schedule to the Act is amended by replacing the references after “SCHEDULE” with the following: the heading (Sections 135, 170, 170.1, 170.2, 185 and 200) (2) Subsection (1) is deemed to have come into force on March 23, 2017. 44 (1) Parts II and II.1 of the schedule to the Act are replaced by the following: II. Beer 1 Per hectolitre of beer or malt liquor containing more than 2.5% absolute ethyl alcohol by volume, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act Section 44 (a) $31.84; or (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate. 2 Per hectolitre of beer or malt liquor containing more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, (a) $15.92; or (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate. 3 Per hectolitre of beer or malt liquor containing not more than 1.2% absolute ethyl alcohol by volume, (a) $2.643; or (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate. II.1 Canadian Beer 1 Per hectolitre of the first 2 000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II. 2 Per hectolitre of the next 3 000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II. 3 Per hectolitre of the next 10 000 hectolitres of beer and malt liquor brewed in Canada, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act Section 44 (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II. 4 Per hectolitre of the next 35 000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II. 5 Per hectolitre of the next 25 000 hectolitres of beer and malt liquor brewed in Canada, (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II; (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II. 6 The rates determined under section 5 are to be rounded (a) in the case of a rate determined under paragraph 5(a) or (b), to the nearest one-thousandth or, if the rate is equidistant from two consecutive onethousandths, to the higher one-thousandth; and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act Sections 44-46 (b) in the case of a rate determined under paragraph 5(c), to the nearest ten-thousandth or, if the rate is equidistant from two consecutive ten-thousandths, to the higher ten-thousandth. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 2002, c. 22 Excise Act, 2001 45 (1) Paragraph (a) of the definition adjustment day in section 58.1 of the Excise Act, 2001 is replaced by the following: (a) March 23, 2017; or (2) The portion of the definition taxed cigarettes in section 58.1 of the Act before paragraph (a) is replaced by the following: taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 before March 23, 2017 at the rate set out in paragraph 1(a) of Schedule 1, as it read on March 22, 2017, and that, at the beginning of March 23, 2017, (3) The portion of the definition taxed cigarettes in section 58.1 of the Act before paragraph (a), as enacted by subsection (2), is replaced by the following: taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day other than March 23, 2017, and that, at the beginning of the adjustment day, (4) Subsections (1) and (2) are deemed to have come into force on March 23, 2017. (5) Subsection (3) comes into force on November 30, 2019. 46 (1) Subsection 58.2(1) of the Act is replaced by the following: Imposition of tax — 2017 increase 58.2 (1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of March 23, 2017 at the rate of $0.00265 per cigarette. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 47-49 47 (1) Paragraph 58.5(1)(a) of the Act is replaced by the following: (a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017; or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 48 (1) Paragraph 58.6(1)(a) of the Act is replaced by the following: (a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017; or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 49 (1) The Act is amended by adding the following after section 123: Definitions 123.1 (1) The following definitions apply in this section. inflationary adjusted year means 2018 and every year after that year. (année inflationniste) reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence) Annual adjustments (2) Each rate of duty set out in Schedule 4 applicable in respect of a litre of absolute ethyl alcohol or in respect of a litre of spirits is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of (a) the rate determined by the formula A×B where A is the rate of duty applicable to the litre of absolute ethyl alcohol or the litre of spirits, as the case may be, on March 31 of the inflationary adjusted year, and B is the amount, rounded to the nearest onethousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula C/D where 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 49-50 C is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and D is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and (b) the rate of duty referred to in the description of A in paragraph (a). Rounding (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive onethousandths, to the higher one-thousandth. Consumer Price Index (4) In this section, the Consumer Price Index for any 12month period is the result arrived at by (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period; (b) dividing the aggregate obtained under paragraph (a) by 12; and (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive onethousandths, to the higher one-thousandth. Application of adjusted rate (5) If duties on spirits are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 50 (1) The Act is amended by adding the following after section 135: Definitions 135.1 (1) The following definitions apply in this section. inflationary adjusted year means 2018 and every year after that year. (année inflationniste) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Section 50 reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence) Annual adjustments (2) Each rate of duty set out in Schedule 6 applicable in respect of a litre of wine is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of (a) the rate determined by the formula A×B where A is the rate of duty applicable to the litre on March 31 of the inflationary adjusted year, and B is the amount, rounded to the nearest onethousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula C/D where C is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and D is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and (b) the rate of duty referred to in the description of A in paragraph (a). Rounding (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive onethousandths, to the higher one-thousandth. Consumer Price Index (4) In this section, the Consumer Price Index for any 12month period is the result arrived at by (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period; (b) dividing the aggregate obtained under paragraph (a) by 12; and (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 50-52 obtained is equidistant from two consecutive onethousandths, to the higher one-thousandth. Application of adjusted rate (5) If duties on wine are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year. (2) Subsection (1) is deemed to have come into force on March 23, 2017. 51 (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following: (i) $0.22 multiplied by the number of cigarettes to which the offence relates, (ii) $0.22 multiplied by the number of tobacco sticks to which the offence relates, (iii) $0.27 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and (iv) $0.42 multiplied by the number of cigars to which the offence relates, and (2) Subparagraphs 216(3)(a)(iii) and (iv) of the Act are replaced by the following: (iii) $0.40 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and (iv) $0.84 multiplied by the number of cigars to which the offence relates, and 52 (1) Subparagraphs 217(2)(a)(i) and (ii) of the Act are replaced by the following: (i) $11.930 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, (ii) $0.63 multiplied by the number of litres of wine to which the offence relates, and (2) Subparagraphs 217(2)(a)(i) and (ii) of the Act, as enacted by subsection (1), are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 52-53 (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed, (ii) the number of litres of wine to which the offence relates multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed, and (3) Subparagraphs 217(3)(a)(i) and (ii) of the Act are replaced by the following: (i) $23.860 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, (ii) $1.26 multiplied by the number of litres of wine to which the offence relates, and (4) Subparagraphs 217(3)(a)(i) and (ii) of the Act, as enacted by subsection (3), are replaced by the following: (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 200% of the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed, (ii) the number of litres of wine to which the offence relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed, and (5) Subsections (2) and (4) come into force on April 1, 2018. 53 (1) Subparagraphs 218(2)(a)(i) and (ii) of the Act are replaced by the following: (i) $23.860 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and (ii) $1.26 multiplied by the number of litres of wine to which the offence relates, and (2) Subparagraphs 218(2)(a)(i) and (ii) of the Act, as enacted by subsection (1), are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 53-54 (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 200% of the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed, and (ii) the number of litres of wine to which the offence relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed, and (3) Subparagraphs 218(3)(a)(i) and (ii) of the Act are replaced by the following: (i) $35.790 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and (ii) $1.89 multiplied by the number of litres of wine to which the offence relates, and (4) Subparagraphs 218(3)(a)(i) and (ii) of the Act, as enacted by subsection (3), are replaced by the following: (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 300% of the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed, and (ii) the number of litres of wine to which the offence relates multiplied by 300% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed, and (5) Subsections (2) and (4) come into force on April 1, 2018. 54 Paragraphs 240(a) to (c) of the Act are replaced by the following: (a) $0.41 per cigarette that was removed in contravention of that subsection, (b) $0.41 per tobacco stick that was removed in contravention of that subsection, and (c) $508.81 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 55-57 55 (1) Section 242 of the Act is replaced by the following: Contravention of section 72 242 Every person who contravenes section 72 is liable to a penalty equal to $1.26 per litre of wine to which the contravention relates. (2) Section 242 of the Act, as enacted by subsection (1), is replaced by the following: Contravention of section 72 242 Every person who contravenes section 72 is liable to a penalty equal to the number of litres of wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed. (3) Subsection (2) comes into force on April 1, 2018. 56 (1) Paragraph 243(1)(b) of the Act is replaced by the following: (b) if the contravention relates to wine, $1.26 per litre of that wine. (2) Paragraph 243(1)(b) of the Act, as enacted by subsection (1), is replaced by the following: (b) if the contravention relates to wine, the number of litres of that wine multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed. (3) Paragraph 243(2)(b) of the Act is replaced by the following: (b) if the contravention relates to wine, $0.63 per litre of that wine. (4) Paragraph 243(2)(b) of the Act, as enacted by subsection (3), is replaced by the following: (b) if the contravention relates to wine, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed. (5) Subsections (2) and (4) come into force on April 1, 2018. 57 (1) Paragraph 243.1(b) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 57-63 (b) if the contravention relates to wine, $0.63 per litre of that wine. (2) Paragraph 243.1(b) of the Act, as enacted by subsection (1), is replaced by the following: (b) if the contravention relates to wine, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed. (3) Subsection (2) comes into force on April 1, 2018. 58 (1) Paragraph 1(a) of Schedule 1 to the Act is replaced by the following: (a) $0.53900; or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 59 (1) Paragraph 2(a) of Schedule 1 to the Act is replaced by the following: (a) $0.10780; or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 60 (1) Paragraph 3(a) of Schedule 1 to the Act is replaced by the following: (a) $6.73750; or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 61 (1) Paragraph 4(a) of Schedule 1 to the Act is replaced by the following: (a) $23.46235; or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 62 (1) Subparagraph (a)(i) of Schedule 2 to the Act is replaced by the following: (i) $0.08434, or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 63 (1) Subparagraph (b)(i) of Schedule 2 to the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 63-65 (i) if the rate referred to in subparagraph (a)(i) has not been adjusted under subsection 43.1(2), 84%, or (2) Subsection (1) is deemed to have come into force on March 23, 2017. 64 (1) Schedule 4 to the Act is replaced by the following: SCHEDULE 4 (Sections 122, 123, 123.1 and 159.1) Rates of Duty on Spirits 1 Spirits: per litre of absolute ethyl alcohol contained in the spirits, (a) $11.930; or (b) if the rate referred to in paragraph (a) has been adjusted under subsection 123.1(2), the adjusted rate. 2 Spirits containing not more than 7% absolute ethyl alcohol by volume: per litre, (a) $0.301; or (b) if the rate referred to in paragraph (a) has been adjusted under subsection 123.1(2), the adjusted rate. (2) Schedule 4 to the Act, as enacted by subsection (1), is amended by replacing the references after the heading “SCHEDULE 4” with the following: (Sections 122, 123, 123.1, 159.1, 217 and 218) (3) Subsection (1) applies in respect of duties that become payable at a time that is after March 22, 2017. (4) Subsection (2) comes into force on April 1, 2018. 65 (1) Schedule 6 to the Act is replaced by the following: SCHEDULE 6 (Sections 134, 135, 135.1 and 159.1) Rates of Duty on Wine Wine: (a) in the case of wine that contains not more than 1.2% of absolute ethyl alcohol by volume, per litre, (i) $0.0209, or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1 Excise Act, 2001 Sections 65-67 (ii) if the rate referred to in subparagraph (i) has been adjusted under subsection 135.1(2), the adjusted rate; (b) in the case of wine that contains more than 1.2% of absolute ethyl alcohol by volume but not more than 7% of absolute ethyl alcohol by volume, per litre, (i) $0.301, or (ii) if the rate referred to in subparagraph (i) has been adjusted under subsection 135.1(2), the adjusted rate; and (c) in the case of wine that contains more than 7% of absolute ethyl alcohol by volume, per litre, (i) $0.63, or (ii) if the rate referred to in subparagraph (i) has been adjusted under subsection 135.1(2), the adjusted rate. (2) Schedule 6 to the Act, as enacted by subsection (1), is amended by replacing the references after the heading “SCHEDULE 6” with the following: (Sections 134, 135, 135.1, 159.1, 217, 218, 242, 243 and 243.1) (3) Subsection (1) applies in respect of duties that become payable at a time that is after March 22, 2017. (4) Subsection (2) comes into force on April 1, 2018. 2014, c. 20 Economic Action Plan 2014 Act, No. 1 66 (1) Subsection 69(3) of the Economic Action Plan 2014 Act, No. 1 is repealed. (2) Subsection 69(5) of the Act is repealed. Application 67 For the purposes of applying the provisions of the Customs Act and the Excise Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount is to be determined and interest is to be computed on it as though sections 44 and 58 to 63 and subsections 64(1) and 65(1) had been assented to on March 23, 2017. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures Section 68 PART 4 Various Measures DIVISION 1 R.S., c. S-15 Special Import Measures Act Amendments to the Act 68 (1) The definition margin of dumping in subsection 2(1) of the Special Import Measures Act is replaced by the following: margin of dumping, in relation to any goods, means, subject to sections 30.2 and 30.3, the amount by which the normal value of the goods exceeds the export price of the goods; (marge de dumping) (2) Paragraphs (a) and (b) of the definition order or finding in subsection 2(1) of the Act is replaced by the following: (a) means an order or finding made by the Tribunal under section 43 or 44 that has not been rescinded under any of sections 76.01 to 76.1 and subsection 91(3) but, if the order or finding has been amended one or more times under any of section 75.3, subsections 75.4(8) and 75.6(7) and sections 76.01 to 76.1, as it was last amended, and (b) includes, for the purposes of sections 3 to 6 and 76 to 76.1, an order or finding made by the Tribunal under subsection 91(3) that has not been rescinded under any of sections 76.01 to 76.1 but, if the order or finding has been amended one or more times under any of section 75.3, subsections 75.4(8) and 75.6(7) and sections 76.01 to 76.1, as it was last amended; (ordonnance ou conclusions) (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: scope ruling means a ruling made under subsection 66(1) as to whether certain goods are subject to an order of the Governor in Council imposing a countervailing duty made under section 7, an order or finding of the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 68-71 Tribunal or an undertaking in respect of which an investigation has been suspended under subparagraph 50(a)(iii); (décision sur la portée) 69 Section 3 of the Act is amended by adding the following after subsection (1): Duties — circumvention (1.1) A duty shall be levied, collected and paid on all dumped and subsidized goods imported into Canada in respect of which the Tribunal has made an order — amending an order or finding, before the release of the goods — to the effect that the importation of goods of the same description constitutes circumvention, as follows: (a) in the case of dumped goods, an anti-dumping duty in an amount that is equal to the margin of dumping of the imported goods; and (b) in the case of subsidized goods, a countervailing duty in an amount that is equal to the amount of subsidy on the imported goods. Duties — circumvention investigation (1.2) A duty shall be levied, collected and paid on all dumped and subsidized goods imported into Canada, after the initiation of an anti-circumvention investigation under section 72, in respect of which the Tribunal has made an order — amending an order or finding after the release of the goods — to the effect that the importation of goods of the same description constitutes circumvention, as follows: (a) in the case of dumped goods, an anti-dumping duty in an amount that is equal to the margin of dumping of the imported goods; and (b) in the case of subsidized goods, a countervailing duty in an amount that is equal to the amount of subsidy on the imported goods. 70 Paragraph 6(c) of the Act is replaced by the following: (c) in respect of which the President has made a specification under clause 41(1)(b)(ii)(C), 71 The portion of subsection 9.2(1) of the Act before paragraph (a) is replaced by the following: Duty ceases if final determination set aside by court 9.2 (1) If duty is leviable, collectable and payable (in this section referred to as “payable”) under this Act under 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 71-73 an order or finding of the Tribunal on goods imported into Canada, and proceedings are commenced in the Federal Court of Appeal by an application under section 96.1 to review and set aside the final determination of the President under paragraph 41(1)(b) on which the order or finding is based, duty continues, despite any order or decision that may be made or given in the course of the proceedings, to be so payable under the order or finding on imported goods of the same description as those goods during the course of the proceedings and after they are finally disposed of, unless the final disposition of the proceedings results in the final determination being set aside or being set aside in relation to particular goods, or the President recommencing the investigation and terminating it under paragraph 41(1)(a), in which case 72 The portion of subsection 9.21(1) of the Act before paragraph (a) is replaced by the following: Duty ceases if investigation terminated after review 9.21 (1) If duty is leviable, collectable and payable (in this section referred to as “payable”) under this Act under an order or finding of the Tribunal on goods of a NAFTA country imported into Canada, and a review is requested under Part I.1 of the final determination of the President under paragraph 41(1)(b) on which the order or finding is based, duty continues, despite any order or decision that may be made or given in the course of proceedings under that Part, to be so payable under the order or finding on imported goods of the same description as those goods during the course of the proceedings and after they are finally disposed of, unless the final disposition of the proceedings results in the President recommencing the investigation and terminating it under paragraph 41(1)(a), in which case 73 The portion of section 9.3 of the Act before paragraph (a) is replaced by the following: Duty ceases if investigation terminated after review 9.3 If duty is leviable, collectable and payable (in this section referred to as “payable”) under this Act under an order or finding of the Tribunal on goods of the United States imported into Canada, and a review is requested under Part II of the final determination of the President under paragraph 41(1)(b) on which the order or finding is based, duty continues, despite any order or decision that may be made or given in the course of proceedings under that Part, to be so payable under the order or finding on imported goods of the same description as those goods during the course of the proceedings and after they are finally disposed of, unless the final disposition of the proceedings results in the President recommencing the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 73-74 investigation and terminating it under paragraph 41(1)(a), in which case 74 (1) The portion of subsection 13.2(1) of the Act before paragraph (a) is replaced by the following: Request for review 13.2 (1) An exporter to Canada or producer of any goods to which an order or finding referred to in subsection 3(1) applies may request that the President review the normal value, export price or amount of subsidy in relation to those goods if the exporter or producer (2) Subsections 13.2(2) and (3) of the Act are replaced by the following: Request for review (1.1) An exporter to Canada of any goods to which an order or finding referred to in subsection 3(1.1) or (1.2) applies may request that the President review the normal value, export price or amount of subsidy in relation to those goods if the exporter has not been requested to provide information in relation to those goods, or in relation to any goods that are of the same description as those goods for the purposes of this Act, for the purposes of determining their normal value, export price or amount of subsidy. Form of request (2) A request under subsection (1) or (1.1) shall be made in the prescribed manner and form and shall contain the prescribed information. Review (3) If the President receives a request under subsection (1), the President shall initiate a review, on an expedited basis, of the normal value, export price or amount of subsidy, as the case may be, and shall, on completion of the review, either confirm or amend the value, price or amount. Review (3.1) If the President receives a request under subsection (1.1), the President shall initiate a review of the normal value, export price or amount of subsidy in respect of goods to which an order or finding referred to in subsection 3(1.1) or (1.2) applies, as the case may be. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 75-79 75 (1) Subsection 16(2) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) any sale of like goods for use in the country of export by the exporter to a purchaser if, in the opinion of the President, a particular market situation exists which does not permit a proper comparison with the sale of the goods to the importer in Canada. (2) Section 16 of the Act is amended by adding the following after subsection (2): Paragraph (2)(c) (2.1) For the purposes of paragraph (2)(c), a particular market situation may be found to exist in respect of any goods of a particular exporter or of a particular country, as is appropriate in the circumstances. 76 Section 30.1 of the Act is repealed. 77 The portion of subsection 35(1) of the Act before paragraph (b) is replaced by the following: Termination of investigation or inquiry 35 (1) The President shall act under subsection (2) and the Tribunal shall act under subsection (3) if, at any time before the President makes a preliminary determination under subsection 38(1) in respect of goods that are the subject of the investigation, (a) the President is satisfied in respect of some or all of those goods that the actual and potential volume of goods of a country or countries is negligible; or 78 Subsection 38(1.1) of the Act is replaced by the following: Insignificant margin or amount (1.1) The President may in making a preliminary determination under subsection (1), using the information available to him or her at that time, make the determination that the margin of dumping of, or the amount of subsidy on, any goods of a particular exporter is insignificant. 79 Subsections 41(1) and (2) of the Act are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 79-80 Final determination or termination 41 (1) Within 90 days after making a preliminary determination under subsection 38(1), the President shall (a) terminate the investigation in respect of any goods of a particular exporter if, on the available evidence, the President is satisfied that there has been no dumping or subsidizing of the goods or that the margin of dumping of, or amount of subsidy on, those goods is insignificant; and (b) make a final determination of dumping or subsidizing in respect of the goods that are the subject of the investigation and for which the investigation has not been terminated under paragraph (a) if, on the available evidence, the President is satisfied that there has been dumping or subsidizing and the President shall specify, in relation to each exporter of goods in respect of which the investigation is made, as follows: (i) in the case of dumped goods, the goods to which the determination applies and the margin of dumping of the goods, and (ii) in the case of subsidized goods, (A) the goods to which the determination applies, (B) the amount of subsidy on the goods, and (C) subject to subsection (2), if the whole or any part of the subsidy on the goods is a prohibited subsidy, the amount of the prohibited subsidy on the goods. Exception (2) The President shall not specify anything under clause (1)(b)(ii)(C) if the President is of the opinion that, having regard to the country that is providing the export subsidy, the nature of the goods and the circumstances under which the export subsidy is provided, provision of the export subsidy in relation to those goods is not inconsistent with that country’s obligations under the international agreement known as the General Agreement on Tariffs and Trade, 1994. 80 (1) The portion of subsection 41.1(1) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 80-81 Action on final determination or decision referred back by Court 41.1 (1) If a decision under paragraph 41(1)(a) or a final determination under paragraph 41(1)(b) is set aside and the matter referred back to the President on an application under section 96.1, the President shall (2) The portion of subsection 41.1(2) of the Act before paragraph (a) is replaced by the following: Action on final determination or decision referred back by panel (2) If a decision under paragraph 41(1)(a) or a final determination under paragraph 41(1)(b) is referred back to the President under subsection 77.015(3) or (4), 77.019(5), 77.15(3) or (4) or 77.19(4), the President shall 81 (1) The portion of paragraph 42(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) in the case of any subsidized goods in respect of which a specification has been made under clause 41(1)(b)(ii)(C) and to which the preliminary determination applies as to whether (2) Section 42 of the Act is amended by adding the following after subsection (3): Application of paragraph (3)(a) (3.1) For the purposes of paragraph (3)(a), (a) the margin of dumping in relation to goods of a particular country is the weighted average of the margins of dumping determined in accordance with section 30.2; and (b) the amount of subsidy in relation to goods of a particular country is the weighted average of the amounts of subsidy determined in accordance with section 30.4. (3) Section 42 of the Act is amended by adding the following after subsection (6): 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 81-84 Application (7) For the purposes of this section, dumped or subsidized goods do not include goods of an exporter in respect of which the margin of dumping or amount of subsidy is insignificant. 82 Paragraph 49(2)(b) of the Act is replaced by the following: (b) unless the President has made a preliminary determination under subsection 38(1); or 83 Paragraph 52(1.1)(d) of the Act is replaced by the following: (d) terminate the undertaking or undertakings in respect of those goods, and 84 The Act is amended by adding the following after section 55: Determination of circumvention 55.1 (1) If the Tribunal has made an order described in subsection 3(1.2) with respect to the goods to which the determination of circumvention applies, the President shall cause a designated officer to determine, not later than six months after the date of the order, (a) in respect of any goods referred to in subsection (2), whether the goods are in fact goods of the same description as goods described in the order; (b) the normal value and export price of or the amount of subsidy on the goods; and (c) if section 6 or 10 applies in respect of the goods, the amount of the export subsidy on the goods. Application (2) Subsection (1) applies only in respect of goods released on or after the day on which an anti-circumvention investigation is initiated under subsection 72(1) and on or before the day on which the Tribunal makes an order under section 75.3 in respect of the goods. Re-determination (3) A determination made under subsection (1) is deemed to be a re-determination by a designated officer under paragraph 57(b). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 85-87 85 The portion of subsection 56(1) of the Act before paragraph (a) is replaced by the following: Determination final 56 (1) If, after the making of an order or finding of the Tribunal or an order of the Governor in Council imposing a countervailing duty under section 7, any goods are imported into Canada, a determination by a designated officer 86 Section 60.1 of the Act is renumbered as subsection 60.1(1) and is amended by adding the following: Notice — section 59 re-determination (2) The President shall publish a notice of any re-determination made under paragraph 59(1)(a) or (e) in respect of whether goods are of the same description as goods described in the order or finding, in the prescribed manner. 87 Subsections 61(2) and (3) of the Act are replaced by the following: Appeal — scope ruling (1.1) Interested persons may appeal a scope ruling made under section 66 or, an amendment to such a ruling resulting from a review under subsection 67(2) or, subject to section 77.012 or 77.12 and only in respect of whether goods are of the same description as goods described in the order or finding, a re-determination made under paragraph 59(1)(a) or (e), to the Tribunal by filing a notice of appeal in writing with the President and the Tribunal within 90 days after the day on which the decision was made. Publication of notice of appeal (2) Notice of the hearing of an appeal under subsection (1) or (1.1) must be published in the Canada Gazette at least 21 days before the day of the hearing, and any person who enters an appearance with the Tribunal at least seven days before the day of the hearing may be heard on the appeal. Order or finding of the Tribunal (3) On any appeal under subsection (1) or (1.1), the Tribunal may make such order or finding as the nature of the matter may require and, without limiting the generality of the foregoing, may declare what duty is payable or that no duty is payable on the goods with respect to 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 87-89 which the appeal was taken, and an order, finding or declaration of the Tribunal is final and conclusive subject to further appeal as provided in section 62. 88 Paragraph 62(1)(c) of the Act is replaced by the following: (c) any person who entered an appearance in accordance with subsection 61(2), 89 The Act is amended by adding the following after section 62: Scope Ruling Application 63 (1) Any interested person may submit an application to the President for a scope ruling with respect to any goods. Application review period (2) The President shall, within 30 days after the day on which he or she receives the application, determine if it should be rejected or if a scope proceeding should be initiated. Extension of review period (3) The President may extend the period set out in subsection (2) to 45 days. Prescribed criteria (4) The President shall reject the application if any criteria prescribing the rejection of an application apply. Prescribed circumstances (5) The President may reject an application in the prescribed circumstances. Notice (6) The President shall provide written notice to the applicant if their application is rejected under subsection (4) or (5) and give reasons for the rejection. Incomplete application (7) If an application is incomplete, the notice referred to in subsection (6) must identify the deficiencies in the application. Initiation of scope proceeding (8) If the President does not reject the application under subsection (4) or (5), the President shall initiate a scope 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 proceeding with respect to the goods that are the subject of the application. President’s initiative 64 The President may initiate a scope proceeding with respect to any goods at any time, on the President’s own initiative. Notice of scope proceeding 65 If a scope proceeding is initiated under subsection 63(8) or section 64, the President shall provide written notice to the applicant, if any, the government of the country of export, the exporter, the importer and the domestic producers. Scope ruling 66 (1) Subject to subsections (2) and (3), on or before the one hundred twentieth day after the initiation of a scope proceeding under subsection 63(8) or section 64, the President shall make a scope ruling and provide reasons for it. Extension (2) The President may, in the prescribed circumstances, extend the period set out in subsection (1) to 210 days. Termination (3) At any time before the President makes a scope ruling under subsection (1), the President may cause the scope proceeding to be terminated in the prescribed circumstances. Scope ruling — effective date (4) A scope ruling made under subsection (1) takes effect on the day on which it is made, unless the President indicates otherwise, and it includes any terms and conditions that the President considers appropriate. Notice (5) The President shall give written notice to the government of the country of export and the applicant, if any, of: (a) an extension given under subsection (2); (b) the making of a scope ruling under subsection (1); and (c) the termination of a scope proceeding under subsection (3). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 Factors for ruling (6) In making a scope ruling, the President shall take into account any prescribed factors and any other factor that the President considers relevant. Ruling final (7) A scope ruling made under subsection (1) is final and conclusive, subject to further appeal as provided in subsection 61(1.1). Review of ruling 67 (1) For the purpose of giving effect to a decision of the Tribunal, the Federal Court of Appeal or the Supreme Court of Canada, the President shall review the scope ruling made under subsection 66(1) to which that Tribunal or Court decision relates. Review — prescribed circumstances (2) The President may review a scope ruling made under subsection 66(1) under prescribed circumstances. Confirmation, amendment or revocation (3) The President shall confirm, amend or revoke a scope ruling reviewed under subsection (1) or (2). Written notice (4) The President shall give written notice to the government of the country of export, the applicant, if any, and interested persons of a review undertaken under subsection (1) or (2). Application of scope ruling 68 A scope ruling applies to (a) any determination or re-determination under sections 55, 56 and 57 and paragraphs 59(1)(a) and (e); and (b) any decision relating to whether an undertaking in respect of which an investigation has been suspended under subparagraph 50(a)(iii) applies to goods. Binding decision 69 Subject to the regulations, a scope ruling is binding with respect to any decision, determination or re-determination made by a designated officer or the President in respect of any goods to which that scope ruling applies that are released on or after its effective date. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 Application — section 55 70 (1) A scope ruling may be applied by the President to any determination made under section 55 in respect of any goods which are accounted for under subsection 32(1), (3) or (5) of the Customs Act, no more than two years before the effective date of the scope ruling if, no later than 90 days after that effective date, (a) the importer of the goods (i) makes a written request in the prescribed form and manner and accompanied by the prescribed information, and (ii) has paid all duties owing on the goods; or (b) when the goods are goods of a NAFTA country, the government of that NAFTA country or, if they are of that NAFTA country, the producer, manufacturer or exporter of the goods makes a request as described in subparagraph (a)(i), whether or not the importer of the goods has paid all duties owing on the goods. Application — section 56 (2) A scope ruling may be applied by a designated officer to any determination made under section 56 no more than two years before the ruling’s effective date if the determination has not previously been re-determined under section 57 or 59 and, no later than 90 days after that date, (a) the importer of the goods (i) makes a written request in the prescribed form and manner and accompanied by the prescribed information, and (ii) has paid all duties owing on the goods; or (b) when the goods are goods of a NAFTA country, the government of that NAFTA country or, if they are of that NAFTA country, the producer, manufacturer or exporter of the goods makes a request as described in subparagraph (a)(i), whether or not the importer of the goods has paid all duties owing on the goods. Application — section 57 or 59 (3) A scope ruling may be applied by the President to any re-determination made under section 57 or paragraph 59(1)(a) or (e) in respect of any goods that are the subject of a determination made under subsection 56(1) or (2) no 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 more than two years before the ruling’s effective date if, no later than 90 days after that date, (a) the importer of the goods (i) makes a written request in the prescribed form and manner and accompanied by the prescribed information, and (ii) has paid all duties owing on the goods; or (b) when the goods are goods of a NAFTA country, the government of that NAFTA country or, if they are of that NAFTA country, the producer, manufacturer or exporter of the goods makes a request as described in subparagraph (a)(i), whether or not the importer of the goods has paid all duties owing on the goods. Scope ruling — designated officer (4) A scope ruling may be applied by a designated officer to any determination made under section 56 no more than two years before the ruling’s effective date if the designated officer deems it advisable within two years after the determination. Scope ruling — President (5) A scope ruling may be applied by the President to any determination made under section 55 or any re-determination made under section 56 or 57 or paragraph 59(1)(a) or (e) no more than two years before the ruling’s effective date if the President deems it advisable within two years after the day on which the determination or re-determination is made, as the case may be. Requests under subsection (1) or (3) (6) In the case of a request made under subsection (1) or (3), the President shall make a decision within one year after the day on which the request was made. Date of decision (7) Except for the purposes of making a request under subsection 58(1.1) or section 77.011 or filing a notice of appeal under subsection 61(1), a decision made under subsection (4) or (5) within 90 days after the scope ruling’s effective date is deemed to be made on that day. Deemed decision — subsection (1), (3) or (5) (8) A decision made under subsection (1), (3) or (5) is deemed to be a re-determination made by the President under subsection 59(1). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 Deemed decision — subsection (2) or (4) (9) A decision made under subsection (2) or (4) is deemed to be a re-determination made by a designated officer under section 57. Anti-circumvention Investigations Definition of circumvention 71 For the purposes of sections 72 to 75.6, circumvention means a situation in which all of the following exist: (a) a change has occurred in the pattern of trade since the day on which an order imposing a countervailing duty was made under section 7 or an investigation was initiated under section 31, as the case may be; (b) a prescribed activity is occurring and imports of the goods to which that prescribed activity applies are undermining the remedial effects of the order in council or the order or finding of the Tribunal; and (c) the principal cause of the change in trade pattern is the imposition of anti-dumping or countervailing duties. Initiation of investigation 72 (1) The President shall cause an investigation to be initiated respecting the circumvention of an order or finding of the Tribunal, or an order of the Governor in Council imposing a countervailing duty under section 7, on the President’s own initiative or, if he or she receives a written complaint respecting the circumvention, within 45 days after the day on which that complaint is received, if he or she is of the opinion that there is evidence that circumvention is occurring. Investigation — exporter or country (2) An anti-circumvention investigation may be initiated in respect of an exporter or in respect of a country, as the circumstances require. Complaint — required information (3) A complaint made under subsection (1) shall contain the information supporting the allegations that is reasonably available to the complainant and any other prescribed information. Notice of investigation 73 (1) If the President causes an anti-circumvention investigation to be initiated, he or she shall (a) cause notice of the investigation to be 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 (i) given to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any, and (ii) published in the Canada Gazette; and (b) publish the reasons for initiating the investigation in the prescribed manner. President decides not to initiate investigation (2) If, after receipt of a complaint referred to in subsection 72(1), the President decides, with respect to some or all of the goods specified in the complaint, not to cause an investigation to be initiated, the President shall send a written notice of the decision and the reasons for it to the complainant. Statement of essential facts 74 (1) Subject to subsection (2), the President shall publish, in the prescribed manner, a statement of essential facts in respect of an investigation initiated under subsection 72(1) that includes (a) the President’s preliminary assessment of whether the evidence discloses a reasonable indication of circumvention; and (b) a summary of the facts the President relied on in making that preliminary assessment. Comments (2) Before making a decision under subsection 75.1(1), the President shall allow interested parties sufficient time to provide written comments on the statement of essential facts. Publication of statement (3) The President shall give notice of the publication of the statement of essential facts to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any. Termination 75 (1) Despite section 74, the President may terminate an investigation at any time before the publication of the statement of essential facts, if the President is satisfied that the goods in respect of which an investigation was initiated under subsection 72(1) are of the same description as goods to which an order or finding of the Tribunal or an order of the Governor in Council applies. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 Factors (2) In making a decision under subsection (1), the President shall take into account the factors referred to in subsection 66(6). Notice of termination (3) If an investigation is terminated under subsection (1), the President shall (a) give notice of the termination to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any; (b) publish notice of the termination in the Canada Gazette; and (c) on the same day that the notice is given, publish the reasons for terminating the investigation in the prescribed manner, including the reasons for determining that the goods in question are of the same description as goods to which an order or finding of the Tribunal or an order of the Governor in Council applies. Scope ruling (4) A decision made under subsection (1) is deemed to be a scope ruling made under subsection 66(1). Decision — circumvention 75.1 (1) Subject to subsection 75(1), within 180 days after initiating an investigation under subsection 72(1), the President shall make a decision and shall (a) cause written notice of the decision to be (i) given to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any, and (ii) published in the Canada Gazette; (b) publish the reasons for the decision in the prescribed manner; and (c) in the case of the President finding that there is circumvention, file with the Tribunal the decision, the reasons for the decision and any other material relating to the decision that may be required under the rules of the Tribunal. Circumvention (2) In making the decision under subsection (1), the President may only make a finding of circumvention if, on the available evidence, the President is satisfied that 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 importation of some or all of the goods in question constitutes circumvention. Details of decision (3) A decision setting out a finding of circumvention must specify (a) the goods to which it applies; and (b) the exporters and the exporting countries to which it applies. Terms and conditions (4) A decision setting out a finding of circumvention may include any terms and conditions that the President considers appropriate. Extension of time period 75.2 (1) The President may, at any time before the publication of the statement of essential facts and before the expiry of the 180-day period set out in subsection 75.1(1), extend the period set out in that subsection to 240 days, in prescribed circumstances. Notice of extension (2) The President shall cause written notice of any extension to be (a) given to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any; and (b) published in the Canada Gazette. Tribunal 75.3 Without delay after a decision setting out a finding of circumvention is filed with the Tribunal under paragraph 75.1(1)(c), the Tribunal shall make an order amending the order or finding that is the subject of the President’s decision in the manner described in the decision, including any terms and conditions that are set out in the decision. Interim review 75.4 (1) The President may, on his or her own initiative or at the request of the Minister of Finance or any other person, the Tribunal or a government, conduct an interim review of (a) a decision made under subsection 75.1(1) that sets out a finding of circumvention; or (b) any aspect of a decision referred to in paragraph (a). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 Included decisions (2) For the purposes of subsection (1), a decision made under subsection 75.1(1) is deemed to include any decision relating to it that is made under subsection (6) or 75.6(5) prior to the initiation of a review under subsection (1). Limitation (3) The President shall not conduct an interim review at the request of any person or government or the Tribunal unless the person or government or the Tribunal satisfies the President that the review is warranted. Decision if interim review not initiated (4) If the President decides not to conduct an interim review at the request of a person or government, the President shall forward a copy of the decision and the reasons for it to that person or government. Initiation of interim review (5) If the President decides to conduct an interim review the President shall cause written notice of the decision to be (a) given to the importer, the exporter, the government of the exporting country, the domestic producers, and the person or government requesting the review, if any; and (b) published in the Canada Gazette. Decision (6) On completion of an interim review, the President shall make a decision rescinding the decision under review or confirming it, with or without amendment, as the circumstances require, and shall give reasons for making the decision. Notice (7) On completion of an interim review, the President shall (a) cause written notice of the decision made under subsection (6) to be given to the importer, the exporter, the government of the exporting country, the domestic producers and the person or government requesting the review, if any; (b) cause the notice to be published in the Canada Gazette; (c) publish the reasons for that decision in the prescribed manner; and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 (d) if the decision requires the amendment of an order or finding of the Tribunal, file with the Tribunal the decision, the reasons for the decision and any other material relating to the decision that may be required under the rules of the Tribunal. Tribunal (8) Without delay after a decision is filed with the Tribunal under paragraph (7)(d), the Tribunal shall make an order amending the order or finding that is the subject of the President’s decision in the manner described in the decision, including any terms and conditions that are set out in the decision. Review of decision 75.5 (1) For the purpose of giving effect to a decision of the Federal Court of Appeal or the Supreme Court of Canada, the President shall review the decision or determination made under subsection 75.1(1), 75.4(6) or 75.6(5) to which that Court decision relates. Confirmation, amendment or revocation (2) The President shall confirm, amend or revoke a decision reviewed under subsection (1) and the confirmation, amendment or revocation is deemed, except for the purposes of section 96.1, to be a decision or determination made under subsection 75.1(1), 75.4(6) or 75.6(5), as the case may be. Request for exemption 75.6 (1) An exporter to Canada of any goods to which an order or finding referred to in subsection 3(1.1) or (1.2) applies may request that the President determine whether the goods from that exporter may be exempt from the extension of duties if the exporter (a) establishes that they are not associated with any exporter who was given notice of the circumvention investigation; and (b) has not been (i) given notice of the initiation of that investigation, or (ii) requested to provide information during the course of that investigation. Form of request (2) A request under subsection (1) shall be made in the prescribed manner and form and shall contain the prescribed information. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 89 Review — circumvention (3) If the President receives a request under subsection (1) and he or she is satisfied that a review is warranted, the President shall initiate a review, on an expedited basis, in order to determine whether goods from that exporter may be exempt from the extension of duties. Notice (4) If a review is initiated under subsection (3), the President shall provide written notice to the importer, the exporter, the government of the exporting country and the domestic producers. Decision (5) Upon completion of the review, the President shall make a determination that the goods from the exporter are (a) subject to the extension of duties if the President is satisfied that circumvention is occurring; or (b) exempt from the extension of duties if the President is satisfied that no circumvention is occurring. Notice (6) Upon completion of the review, the President shall (a) cause notice of the determination to be given to the importer, the exporter, the government of the exporting country, the domestic producers and the person requesting the review; and (b) if the President makes a determination under paragraph (5)(b), cause to be filed with the Tribunal: (i) written notice of the determination, stating the reasons for the determination, and (ii) any other material that may be required under the rules of the Tribunal. Amendment — order or finding (7) Without delay after receipt of a notice under paragraph (6)(b), the Tribunal shall make an order amending the order or finding that is affected by the review in order to give effect to the President’s determination. Termination of investigation or review 75.7 (1) The President may terminate any investigation initiated under subsection 72(1) or any review initiated under subsection 75.4(1) or 75.6(3) in respect of any goods of an exporter or country, if the order or finding of the Tribunal or the order of the Governor in Council in 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 89-91 respect of which the investigation or review is undertaken has expired or been rescinded or amended in respect of those goods prior to the conclusion of the investigation or review. Notice of termination (2) The President shall cause written notice of the termination of an investigation or review under subsection (1) to be (a) given to the importer, the exporter, the government of the exporting country, the domestic producers and, if appropriate, to the complainant or applicant, if any; and (b) published in the Canada Gazette if the termination is in relation to an investigation initiated under subsection 72(1) or a review initiated under subsection 75.4(1). 90 (1) The portion of subsection 76.01(1) of the Act before paragraph (a) is replaced by the following: Interim review of orders by Tribunal 76.01 (1) Subject to subsection (1.1), at any time after the making of an order or finding described in any of sections 3 to 6, the Tribunal may, on its own initiative or at the request of the Minister of Finance, the President or any other person or of any government, conduct an interim review of (2) Section 76.01 of the Act is amended by adding the following after subsection (1): Exclusion (1.1) The Tribunal shall refer any portion of a request for interim review relating to a decision by the President setting out a finding of circumvention under subsection 75.1(1) or 75.4(6) to the President who shall make a decision relating to that portion of the request under section 75.4. 91 (1) The portion of subsection 76.03(1) of the Act before paragraph (a) is replaced by the following: Order or finding deemed to be rescinded 76.03 (1) If the Tribunal has not initiated an expiry review under subsection (3) with respect to an order or finding described in any of subsections 3(1) and (2) and sections 4 to 6 before the expiry of five years after whichever of the following days is applicable, the order or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Section 91 finding is deemed to have been rescinded as of the expiry of the five years: (2) The portion of subsection 76.03(3) of the Act before paragraph (a) is replaced by the following: Review of orders by Tribunal (3) The Tribunal may initiate an expiry review of an order or finding described in any of subsections 3(1) and (2) and sections 4 to 6 (3) Section 76.03 of the Act is amended by adding the following after subsection (12): Review period (13) For the purposes of conducting a review of an order or finding under this section the following are not to be considered: (a) an order made by the Tribunal under section 75.3 or subsection 75.4(8) or 75.6(7) amending the order or finding under review, if that order is made on or after the day on which notice is published under subsection (2) and before the day on which the order of the Tribunal is made under subsection (12); and (b) a decision or determination made by the President under subsection 75.1(1), 75.4(6) or 75.6(5) in respect of the order or finding under review. Expiry of anti-circumvention order (14) An order made as a result of a decision by the President setting out a finding of circumvention or an interim review decision of the President relating to a finding of circumvention, other than an order rescinding the extension of duties or exempting an exporter from the extension of duties, expires (a) if an expiry review is not initiated under subsection (3), five years after the day on which the order or finding that was the subject of the anti-circumvention investigation or interim review was made; and (b) if an expiry review of the order or finding that was the subject of the anti-circumvention investigation or interim review is initiated under subsection (3), the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 91-96 day on which the Tribunal makes an order under subsection (12). 92 Paragraphs 76.1(5)(a) and (b) of the Act are replaced by the following: (a) paragraph 41(1)(a), if the decision or determination was continued or made as a result of a review under this section of a decision of the President under that paragraph to cause an investigation to be terminated; (b) paragraph 41(1)(b), if the decision or determination was continued or made as a result of a review under this section of a final determination of the President under that paragraph; 93 Paragraphs (a) and (b) of the definition definitive decision in subsection 77.01(1) of the Act are replaced by the following: (a) a decision of the President under paragraph 41(1)(a), (b) a final determination of the President under paragraph 41(1)(b), 94 Subsection 77.013(3) of the Act is replaced by the following: Single panel (3) If a request is made for the review of a final determination of the President under paragraph 41(1)(b) that applies to or is made in respect of particular goods of a NAFTA country and another request is made for the review of an order or finding of the Tribunal under subsection 43(1) that applies to or is made in respect of those goods, one panel may, with the consent of the Minister and the government of that NAFTA country, be appointed to review the final determination and the order or finding. 95 Paragraphs (a) and (b) of the definition definitive decision in subsection 77.1(1) of the Act are replaced by the following: (a) a decision of the President under paragraph 41(1)(a), (b) a final determination of the President under paragraph 41(1)(b), 96 Subsection 77.13(2) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 96-98 Single panel (2) If a request is made for the review of a final determination of the President under paragraph 41(1)(b) that applies to or in respect of particular goods of the United States and another request is made for the review of an order or finding of the Tribunal under subsection 43(1) that applies to or in respect of those goods, one panel may, with the consent of the Minister and the United States government, be appointed to review the final determination and the order or finding. 97 (1) Paragraphs 96.1(1)(a) and (b) of the Act are replaced by the following: (a) a decision of the President under paragraph 41(1)(a); (b) a final determination of the President under paragraph 41(1)(b); (2) Subsection 96.1(1) of the Act is amended by adding the following after paragraph (c.1): (c.2) a decision of the President under subsection 75.1(1); (c.3) a decision of the President under subsection 75.4(6); (c.4) a determination of the President under subsection 75.6(5); 98 (1) Paragraph 97(1)(a.1) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after subparagraph (ii): (iii) whether there has been a change in the pattern of trade, (iv) whether the process of assembly or completion is insignificant, (v) the principal cause of a change in a pattern of trade, and (vi) whether a prescribed activity is undermining the remedial effects of an order of the Governor in Council or an order or finding; (2) Paragraph 97(1)(b) of the Act is replaced by the following: (a.2) respecting activities for the purposes of paragraph 71(b); 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Amendments to the Act Sections 98-100 (b) specifying the circumstances and manner in which two or more properly documented complaints, investigations or inquiries, including anti-circumvention complaints and investigations and scope ruling applications and scope proceedings, may be joined and carried on as one and the persons to whom and the manner in which notice of the joining shall be given; (c) prescribing, for the purpose of subsection 74(2), what constitutes a sufficient amount of time for interested parties to provide written comments; (3) Paragraph 97(1)(g) of the Act is replaced by the following: (g) defining the expression “person interested” for the purpose of subsection 45(6) or section 89 or 95 and the expression “interested person” for the purpose of subsections 61(1.1), 63(1) or 67(4); (g.01) prescribing what constitutes a complete application for the purposes of subsection 63(7); Transitional Provisions Definitions 99 The definitions in this section apply in this section and sections 100 and 101. commencement day means the day on which this section comes into force. (date de référence) former Act means the Special Import Measures Act as it read on the day before the commencement day. (ancienne loi) new Act means the Special Import Measures Act as it read on the commencement day. (nouvelle loi) Disposition of notified complaints 100 (1) Subject to subsections (2) to (7), if, before the commencement day, notice of a complaint respecting the dumping or subsidizing of goods that is properly documented, as defined in subsection 2(1) of the former Act, has been given under paragraph 32(1)(a) of that Act, any proceeding, process or action in respect of the goods shall be continued and disposed of in accordance with that Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Transitional Provisions Section 100 Goods subject to order made after commencement day (2) If the Canadian International Trade Tribunal makes an order or finding under subsection 43(1) of the new Act on or after the commencement day with respect to goods that are the subject of a complaint referred to in subsection (1), any subsequent proceeding, process or action in respect of those goods other than the following shall be disposed of in accordance with that Act: (a) a judicial review or dispute settlement under Part I.1 or II of the new Act in relation to that order or finding and any proceeding, process or action in relation to the judicial review or dispute settlement; (b) a proceeding, process or action in relation to any of those goods that were released before the commencement day; (c) a proceeding, process or action in relation to any of those goods that were released on or after the commencement day but on or before the day on which the Tribunal made the order or finding; or (d) a proceeding, process or action under section 45 of the new Act in relation to that order or finding. Effect of order or finding (3) For greater certainty, any order or finding that was made before the commencement day and is in effect on that day shall, for the purposes of sections 3 to 6 of the new Act, have the same force and effect as if it were made under that Act. New Act does not justify review (4) For the purpose of subsection 76.01(3) of the new Act, the fact that this Act comes into force is not sufficient reason for the Canadian International Trade Tribunal to be satisfied that an interim review of an order or finding is warranted. Determination — undertaking (5) Any determination, on or after the commencement day, of a normal value, export price, amount of subsidy or margin of dumping in relation to any goods that are subject to an undertaking accepted before the commencement day shall be made in accordance with the new Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 1 Special Import Measures Act Transitional Provisions Sections 100-103 Determination — deeming (6) A determination of a normal value, export price, amount of subsidy or margin of dumping made in relation to goods under the former Act is, for the purposes of goods released on or after the commencement day, other than goods to which paragraph (2)(c) applies, deemed to have been made under the new Act. Re-determination of normal value, etc. (7) A re-determination of a normal value, export price, amount of subsidy or margin of dumping referred to in subsection (6) shall be made in accordance with the new Act. Application 101 The provisions of the new Act, as enacted or amended by sections 68 to 98, apply to goods from a NAFTA country, as defined in subsection 2(1) of that Act. Coming into Force Order in council 102 Sections 68, 69, 74, 75 and 84 to 91, subsection 97(2) and sections 98 to 101 come into force on the day fixed by order of the Governor in Council. DIVISION 2 Public Debt Enactment of Borrowing Authority Act Enactment 103 The Borrowing Authority Act, whose text is as follows and whose schedule is set out in Schedule 1 to this Act, is enacted: An Act to provide the Minister of Finance with borrowing authority and to provide for a maximum amount of certain borrowings Short title 1 This Act may be cited as the Borrowing Authority Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 2 Public Debt Enactment of Borrowing Authority Act Section 103 Definitions 2 The following definitions apply in this Act. agent corporation has the same meaning as in subsection 83(1) of the Financial Administration Act. (société mandataire) Minister means the Minister of Finance. (ministre) Borrowing authority 3 The Minister, with the authorization of the Governor in Council under subsection 44(1) of the Financial Administration Act and in accordance with that Act, may borrow money on behalf of Her Majesty in right of Canada, by way of the issue and sale of securities, as defined in section 2 of that Act, or otherwise. Maximum amount that may be borrowed 4 Despite section 3 and any other Act of Parliament, but subject to section 6, the total of the following amounts must not at any time exceed $1,168,000,000,000: (a) the total amount of money borrowed by the Minister under section 3, the Financial Administration Act and the borrowing authority Acts listed in the schedule, (b) the total amount of money borrowed by way of the issue and sale of Canada Mortgage Bonds that are guaranteed by the Canada Mortgage and Housing Corporation, and (c) the total amount of money borrowed by all agent corporations, by way of the issue and sale of their securities or otherwise, other than (i) amounts that they borrowed from Her Majesty in right of Canada, and (ii) amounts that they are deemed under any other Act of Parliament to have borrowed. Exception — amounts not counting towards total 5 The following amounts do not count in the calculation of the amount referred to in paragraph 4(a): (a) amounts borrowed by the Minister under an order made under paragraph 46.1(c) of the Financial Administration Act; and (b) amounts borrowed by the Minister under an order made under paragraph 46.1(a) of that Act for the payment of any amount in respect of a debt that was 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 2 Public Debt Enactment of Borrowing Authority Act Section 103 originally incurred under an order made under paragraph 46.1(c) of that Act. Exception — maximum amount may be exceeded 6 The Minister may borrow an amount under an order made under paragraph 46.1(a) or (b) of the Financial Administration Act even if that borrowing causes the maximum amount referred to in section 4 of this Act to be exceeded. Minister’s responsibility 7 In the exercise of the Minister’s powers and duties under subsection 14(1) of the National Housing Act in respect of guarantees of Canada Mortgage Bonds by the Canada Mortgage and Housing Corporation, and of his or her powers and duties under subsections 127(2) and (3) of the Financial Administration Act in respect of agent corporations, the Minister must ensure that the maximum amount referred to in section 4 of this Act is not exceeded. Report to Parliament 8 (1) The Minister must cause to be tabled in each House of Parliament within three years after the day on which this section comes into force — or, if the House is not sitting on the last day of that three-year period, during the next 30 days that it is sitting — a report indicating (a) the total amount of borrowed money referred to in each of paragraphs 4(a) to (c); (b) the total amount of money borrowed under orders made under each of paragraphs 46.1(a) to (c) of the Financial Administration Act; and (c) the Minister’s assessment of whether the maximum amount referred to in section 4 of this Act should be increased or decreased. Subsequent triennial reports (2) The Minister must cause to be tabled in each House of Parliament, on or before the May 31 that follows the end of the third fiscal year after the fiscal year during which a report was previously tabled under this section — or, if the House is not sitting on that May 31, during the next 30 days that it is sitting — a report indicating the matters set out in paragraphs (1)(a) to (c). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 2 Public Debt Amendment to the Financial Administration Act Sections 104-106 R.S., c. F-11 Amendment to the Financial Administration Act 104 The portion of subsection 48(2) of the Financial Administration Act after paragraph (b) is replaced by the following: the authorized transaction may be undertaken, in whole or in part, in the currency of a country other than Canada, and for that purpose the specific or maximum number of dollars shall be construed as an equivalent amount in the currency of the other country, calculated at the daily average rate of exchange between the Canadian dollar and the currency concerned quoted by the Bank of Canada on the day immediately preceding the day on which the money is borrowed, the proceeds from the issue of securities are received or the guarantee is given, as the case may be, or at any other rate of exchange in use between those currencies that the Minister considers appropriate. 1990, c. 41 Amendment to the Hibernia Development Project Act 105 Paragraph 3(3)(a) of the Hibernia Development Project Act is replaced by the following: (a) where the guarantee is in respect of an amount that together with all guaranteed principal amounts outstanding at the time is in excess of the maximum aggregate principal amount guaranteed at any prior time, the daily average rate of exchange between the Canadian dollar and the currency concerned quoted by the Bank of Canada on the day immediately preceding the day on which the benefit of the guarantee is extended by certificate under paragraph (2)(b) to the amount in excess; or 2016, c. 7 Consequential Amendment to the Budget Implementation Act, 2016, No. 1 106 Section 186 of the Budget Implementation Act, 2016, No. 1 is repealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 2 Public Debt Coming into Force Sections 107-110 Coming into Force 2016, c. 7 107 Section 103 comes into force on the day on which section 183 of the Budget Implementation Act, 2016, No. 1 comes into force. DIVISION 3 Financial Sector Stability R.S., c. C-3 Canada Deposit Insurance Corporation Act 108 Section 7 of the Canada Deposit Insurance Corporation Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) to act as the resolution authority for its members. 109 (1) Subsection 11(2) of the Act is amended by adding the following after paragraph (d): (e) respecting the development, submission and maintenance of resolution plans by domestic systemically important banks, including specifying the contents of those plans; (2) Section 11 of the Act is amended by adding the following after subsection (2): Ministerial approval (2.01) A by-law made under paragraph (2)(e) is not effective unless it has been approved in writing by the Minister. 110 The Act is amended by adding the following after the heading “Restructuring of Federal Member Institutions” after section 39: Resolution Plans Submission of plan 39.01 A domestic systemically important bank shall, on the request of the Corporation, develop and maintain a resolution plan that meets the requirements referred to 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 3 Financial Sector Stability Canada Deposit Insurance Corporation Act Sections 110-113 in paragraph 11(2)(e) and shall submit that plan to the Corporation. 1991, c. 46 Bank Act 111 Subsection 485(1.2) of the Bank Act is replaced by the following: Superintendent’s order (1.2) For each domestic systemically important bank, the Superintendent shall, by order made after consulting with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act, provide for the amount that constitutes the bank’s minimum capacity to absorb losses. Amount — subsection (1.2) (1.21) The amount set under subsection (1.2) consists of capital, prescribed shares and prescribed liabilities, which have the value determined in accordance with any criteria the Superintendent considers appropriate. Coming into Force Order in council 112 (1) Section 110 comes into force on a day to be fixed by order of the Governor in Council. 2016, c. 7 or royal assent (2) Section 111 comes into force on the day on which section 160 of the Budget Implementation Act, 2016, No. 1 comes into force or, if it is later, on the day on which this Act receives royal assent. DIVISION 4 2012, c. 19, s. 711 Shared Services Canada Act 113 Section 7 of the Shared Services Canada Act is replaced by the following: Minister 7 The Minister may, for the purpose of providing services under this Act, exercise any of the powers, or perform any of the duties or functions, that are set out in paragraph 6(a), (b), (c) or (g) of the Department of Public Works and Government Services Act in respect of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 4 Shared Services Canada Act Section 113 departments, Crown corporations, persons, organizations and governments to which those services are provided. Delegation — appropriate Minister 7.1 (1) For the purpose of providing services under this Act to a department through Shared Services Canada, the Minister may delegate any of his or her powers under section 7 in respect of that department, for any period and under any terms and conditions that he or she considers suitable, to that department’s appropriate Minister. Delegation — chief executive (2) For the purpose of providing services under this Act, through Shared Services Canada, to a department over which the Minister does not preside but for which he or she is the appropriate Minister, the Minister may delegate any of his or her powers under section 7 in respect of that department, for any period and under any terms and conditions that he or she considers suitable, to that department’s chief executive. Subdelegation — chief executive (3) The appropriate Minister for a department may, subject to and in accordance with the delegation under subsection (1), subdelegate to the chief executive of that department, for any period and under any terms and conditions that the appropriate Minister considers suitable, the power that was delegated to him or her under that subsection. Subdelegation — subordinate (4) The chief executive of a department may, subject to and in accordance with the delegation under subsection (2) or the subdelegation under subsection (3), subdelegate to any person under his or her jurisdiction, for any period and under any terms and conditions that the chief executive considers suitable, the power that was delegated or subdelegated, as the case may be, to him or her under that subsection. Definitions (5) The following definitions apply in this section. appropriate Minister has the same meaning as in section 2 of the Financial Administration Act. (ministre compétent) chief executive means (a) with respect to a department named in Part I of Schedule VI to the Financial Administration Act, its deputy minister; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 4 Shared Services Canada Act Sections 113-114 (b) with respect to a department named in Part II or III of that Schedule, the person occupying the position set out opposite that name; and (c) with respect to a department that is not named in that Schedule, the chief executive officer, the deputy head or the person who occupies any other similar position, however called, in that department. (administrateur principal) 114 The Act is amended by adding the following after section 9: Authorization 9.1 (1) Despite the Governor in Council having specified, under paragraph 6(c), that a department must obtain a service that is specified under paragraph 6(a) exclusively from the Minister through Shared Services Canada and is not permitted to meet its requirement for that service internally, the Minister may, if the Minister considers that exceptional circumstances justify it, and under any terms and conditions that the Minister specifies, (a) authorize that department to obtain part of that service other than from the Minister through Shared Services Canada, including by meeting its requirement for that part of the service internally; or (b) authorize that department to obtain all of that service in respect of one or more portions of the department — but not all of the department — other than from the Minister through Shared Services Canada, including by meeting its requirement for that service internally. Power exercised personally (2) The Minister must personally exercise the power that is set out in subsection (1). Instructions (3) A department that is authorized, under subsection (1), to obtain all or part of a service other than from the Minister through Shared Services Canada, including by meeting its requirement for that service or that part of the service internally, must do so in accordance with any instructions that the Minister provides. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 5 Payment to the Canadian Institute for Advanced Research Sections 115-118 DIVISION 5 Payment to the Canadian Institute for Advanced Research Maximum payment of $125,000,000 115 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding $125,000,000 to the Canadian Institute for Advanced Research to support a pan-Canadian artificial intelligence strategy. DIVISION 6 Financial Assistance for Students 1994, c. 28 Canada Student Financial Assistance Act 116 Paragraph (a) of the definition qualifying student in subsection 2(1) of the Canada Student Financial Assistance Act is replaced by the following: (a) who is a Canadian citizen, a person registered as an Indian under the Indian Act, a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act or a protected person within the meaning of subsection 95(2) of that Act, 2004, c. 26 Canada Education Savings Act 117 Paragraph 2(2)(a) of the Canada Education Savings Act is replaced by the following: (a) the expressions adjusted income, cohabiting spouse or common-law partner, eligible individual and qualified dependant have the meanings assigned by section 122.6 of the Income Tax Act; 118 (1) Subsection 5(6.1) of the Act is replaced by the following: Change in care (6.1) If, in a month following January in a particular year, an individual who was not the primary caregiver of a beneficiary in January of that year becomes the beneficiary’s primary caregiver, then the adjusted income to be 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 6 Financial Assistance for Students Canada Education Savings Act Sections 118-120 used for the purposes of subsection (4) in respect of contributions made to the trustee of the trust designated by that individual or their cohabiting spouse or commonlaw partner is the adjusted income used to determine the amount of a Canada child benefit for the first month in the particular year in respect of which the individual’s eligibility for the Canada child benefit has been established. (2) Subsections 5(7) to (7.2) of the Act are replaced by the following: Designation (7) The amount referred to in subsection (4) is to be paid to the trustee of a trust designated, in the form and manner approved by the Minister, by the primary caregiver of the beneficiary at the time the contribution is made or the primary caregiver’s cohabiting spouse or commonlaw partner at that time. More than one designated trust (7.1) If there is more than one trust designated under subsection (7) at the time a contribution is made, the amount referred to in subsection (4) is to be paid to the trustee of the trust to which a contribution is first made. Additional grant less than maximum amount (7.2) For greater certainty, if there is more than one trust designated under subsection (7) and the total of all amounts paid under subsection (4) to the trustee of the trust to which a contribution is first made is less than the maximum amount that may be paid under subsection (4), then amounts may be paid under subsection (4) to the trustee of any trust designated under subsection (7). 119 Subsection 6(4) of the Act is replaced by the following: Designation (4) The amount of a bond in respect of a benefit year is to be paid to the trustee of a trust designated, in the form and manner approved by the Minister, by the primary caregiver of the beneficiary, the primary caregiver’s cohabiting spouse or common-law partner or, if the beneficiary is 18 years of age or more, the beneficiary. 120 Subsection 9.1(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 6 Financial Assistance for Students Canada Education Savings Act Sections 120-123 Waiver 9.1 (1) On application made by the primary caregiver of the beneficiary, the primary caregiver’s cohabiting spouse or common-law partner or, if the beneficiary is 18 years of age or more, the beneficiary, the Minister may, to avoid undue hardship, waive any of the requirements of this Act or the regulations that relate to the payment of CES grants or Canada Learning Bonds and that are specified in regulations made under paragraph 13(g). The application must be in the form and manner approved by the Minister. Coming into Force August 1, 2018 121 (1) Section 116 comes into force on August 1, 2018. January 1, 2018 (2) Sections 117 to 120 come into force on January 1, 2018. DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy R.S., c. P-1 Parliament of Canada Act Amendments to the Act 122 Subsection 50(6) of the Parliament Canada Act is replaced by the following: of Scope (6) For greater certainty, nothing in the oath or affirmation referred to in subsection (5) shall be construed as preventing the communication of any information or documents discussed in, or prepared for, a meeting of the Board that was open to the public. 123 The Act is amended by adding the following after section 51: Public meetings 51.1 Meetings of the Board shall be open to the public; however, a meeting or portion of a meeting shall be held in camera if 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 123-127 (a) the matters being discussed relate to security, employment, staff relations or tenders; (b) the circumstances prescribed by a by-law made under paragraph 52.5(1)(a.1) exist; or (c) all of the members of the Board who are present at the meeting agree that it be held in camera. 124 Subsection 52.2(2) of the Act is replaced by the following: Proceedings (2) For greater certainty, the proceedings of the Board are proceedings in Parliament. 125 (1) Subsection 52.5(1) of the Act is amended by adding the following after paragraph (a): (a.1) prescribing the circumstances in which a meeting of the Board shall be held in camera; (2) Section 52.5 of the Act is amended by adding the following after subsection (1): Unanimity (1.1) The Board may make a by-law under paragraph (1)(a.1) only on the unanimous vote of the members of the Board who are present at the meeting at which the vote is held. 126 Subsection 75(4) of the Act is replaced by the following: Other officers and employees (4) The officers, other than the Parliamentary Librarian and the Associate Parliamentary Librarian, and the clerks and servants who are authorized by law and required for the service of the Library may be appointed in the manner prescribed by law to hold office during pleasure. 127 Section 78 of the Act is replaced by the following: Duties of Librarians and staff 78 The Parliamentary Librarian, the Associate Parliamentary Librarian and the other officers, clerks and servants of the Library are responsible for the faithful discharge of their official duties, as defined, subject to this Act, by regulations agreed on by the Speakers of the two Houses of Parliament and concurred in by the joint committee referred to in section 74. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 128 Sections 79.1 to 79.5 of the Act are replaced by the following: Parliamentary Budget Officer Purpose 79.01 Sections 79.1 to 79.5 provide for an independent and non-partisan Parliamentary Budget Officer to support Parliament by providing analysis, including analysis of macro-economic and fiscal policy, for the purposes of raising the quality of parliamentary debate and promoting greater budget transparency and accountability. Appointment 79.1 (1) The Governor in Council shall, by commission under the Great Seal, appoint a Parliamentary Budget Officer after consultation with the following persons and after approval of the appointment by resolution of the Senate and House of Commons: (a) the persons referred to in paragraphs 62(a) and (b) and the leader of every caucus and of every recognized group in the Senate; and (b) the leader of every recognized party in the House of Commons. Experience and expertise (1.1) The Parliamentary Budget Officer shall have demonstrated experience and expertise in federal or provincial budgeting. Tenure (2) The Parliamentary Budget Officer holds office during good behaviour for a term of seven years but may be removed for cause by the Governor in Council on address of the Senate and House of Commons. Reappointment (3) The Parliamentary Budget Officer may be reappointed for one or more terms of up to seven years each. However, the Parliamentary Budget Officer shall serve no more than 14 years in office in total. Interim appointment (4) In the event of the absence or incapacity of the Parliamentary Budget Officer, or if that office is vacant, the Governor in Council may appoint any person to hold that office in the interim for a term not exceeding six months, and that person shall, while holding office, be paid the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 remuneration and expenses that may be fixed by the Governor in Council. Remuneration and expenses (5) The Parliamentary Budget Officer shall be paid the remuneration and expenses fixed by the Governor in Council. Deputy head 79.11 (1) The Parliamentary Budget Officer has the rank of a deputy head of a department of the Goverment of Canada and has the control and management of the office of the Parliamentary Budget Officer. Powers to contract (2) The Parliamentary Budget Officer may, in carrying out the work of the office of the Parliamentary Budget Officer, enter into contracts, memoranda of understanding or other arrangements. Staff (3) The Parliamentary Budget Officer may employ any officers and employees and may engage the services of any agents and mandataries, advisers and consultants that the Parliamentary Budget Officer considers necessary for the proper conduct of the work of the office of the Parliamentary Budget Officer. Technical assistance (4) The Parliamentary Budget Officer may engage on a temporary basis the services of persons having technical or specialized knowledge necessary for the proper conduct of the work of the office of the Parliamentary Budget Officer. Authorization (5) The Parliamentary Budget Officer may, subject to the conditions that he or she sets, authorize any person to exercise any powers under subsections (2) to (4) on behalf of the Parliamentary Budget Officer that he or she may determine. Salaries (6) The salaries of the officers and employees of the office of the Parliamentary Budget Officer shall be fixed according to the scale provided by law. Payment (7) The salaries of the officers and employees of the office of the Parliamentary Budget Officer, and any casual expenses connected with the office, shall be paid out of moneys provided by Parliament for that purpose. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 Estimate to be prepared (8) Before each fiscal year, the Parliamentary Budget Officer shall cause to be prepared an estimate of the sums that will be required to pay the charges and expenses of the office of the Parliamentary Budget Officer during the fiscal year. Inclusion in government estimates (9) The estimate referred to in subsection (8) shall be considered by the Speaker of the Senate and the Speaker of the House of Commons and then transmitted to the President of the Treasury Board, who shall lay it before the House of Commons with the estimates of the government for the fiscal year. Cooperation 79.12 The Parliamentary Budget Officer and the Parliamentary Librarian shall take all reasonable steps to cooperate with each other to avoid any unnecessary duplication of resources and services provided to parliamentary committees and members of the Senate and the House of Commons. Annual work plan 79.13 (1) Before each fiscal year, the Parliamentary Budget Officer shall prepare an annual work plan for that year that includes (a) criteria for the allocation of resources to the various functions within the Parliamentary Budget Officer’s mandate; (b) a list of matters of particular significance relating to the nation’s finances or economy that, in the Parliamentary Budget Officer’s opinion after consultation with the Speaker of the Senate and the Speaker of the House of Commons, should be brought to the attention of the Senate and the House of Commons during the year; and (c) a statement of the manner in which the Parliamentary Budget Officer intends to prioritize requests for his or her services from parliamentary committees and members of the Senate and the House of Commons. Annual work plan updated (2) The Parliamentary Budget Officer may update the annual work plan as required during the fiscal year. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 Tabling of annual work plan (3) After the annual work plan has been provided to the Speaker of the Senate and the Speaker of the House of Commons, they shall each table it in the House over which he or she presides. Mandate — Parliament not dissolved 79.2 (1) During periods when Parliament is not dissolved, the Parliamentary Budget Officer (a) may prepare reports containing the Parliamentary Budget Officer’s analysis of any of the following federal government documents: (i) a budget tabled by or on behalf of the Minister of Finance, (ii) an economic and fiscal update or statement issued by the Minister of Finance, (iii) a fiscal sustainability report issued by the Minister of Finance, (iv) the estimates of the government for a fiscal year; (b) may prepare reports on matters of particular significance relating to the nation’s finances or economy that are listed in an annual work plan; (c) shall, if requested to do so by any of the following committees, undertake research into and analysis of matters relating to the nation’s finances or economy: (i) the Standing Committee on National Finance of the Senate or, if there is not a Standing Committee on National Finance, the appropriate committee of the Senate, (ii) the Standing Committee on Finance of the House of Commons or, if there is not a Standing Committee on Finance, the appropriate committee of the House of Commons, (iii) the Standing Committee on Public Accounts of the House of Commons or, if there is not a Standing Committee on Public Accounts, the appropriate committee of the House of Commons, (iv) the Standing Committee on Government Operations and Estimates of the House of Commons or, if there is not a Standing Committee on Government Operations and Estimates, the appropriate committee of the House of Commons; (d) shall, if requested to do so by a committee of the Senate or of the House of Commons, or a committee of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 both Houses, that is mandated to consider the estimates of the government, undertake research into and analysis of those estimates; (e) shall, if requested to do so by a committee of the Senate or of the House of Commons, or a committee of both Houses, estimate the financial cost of any proposal that relates to a matter over which Parliament has jurisdiction; and (f) shall, if requested to do so by a member of the Senate or of the House of Commons, estimate the financial cost of any proposal that relates to a matter over which Parliament has jurisdiction. Reports to be tabled (2) The Parliamentary Budget Officer shall provide any report prepared under paragraph (1)(a) or (b) to the Speaker of the Senate and the Speaker of the House of Commons, who shall each table the report in the House over which he or she presides. The Parliamentary Budget Officer shall make the report available to the public one business day after the day on which the report is provided to the Speaker of the Senate and the Speaker of the House of Commons. Request by committee (3) The Parliamentary Budget Officer shall provide a report containing the research and analysis or estimate requested by a committee under paragraph (1)(c), (d) or (e) to the chair of the committee that requested it. The Parliamentary Budget Officer shall make the report available to the public one business day after the day on which the report is provided to the chair of the committee that requested it. Request by member (4) The Parliamentary Budget Officer shall provide a report containing the estimate requested under paragraph (1)(f) to the member of the Senate or of the House of Commons who requested it. The Parliamentary Budget Officer shall make the report available to the public one business day after the day on which the report is provided to the member. If Parliament is dissolved (5) If Parliament is dissolved before a report is provided to the chair of the committee or to the member under subsection (3) or (4), the Parliamentary Budget Officer shall discontinue work on the request. Mandate — general election 79.21 (1) During the period described in subsection (2), the Parliamentary Budget Officer shall, at the request of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 an authorized representative or a member, estimate the financial cost of any election campaign proposal that the authorized representative’s party or the member is considering making. Period (2) For the purposes of subsection (1), the period begins on the 120th day before the date fixed under section 56.1 or 56.2 of the Canada Elections Act and ends on the day before the date of the next general election. However, if Parliament is dissolved before that 120th day, the period begins on the day on which Parliament is dissolved and ends on the day before the date of the next general election. Request (3) A request referred to in subsection (1) shall be made in writing and describe the proposal for which an estimate is requested, including relevant details and objectives. Additional information (4) The Parliamentary Budget Officer may, in writing, request additional information from an authorized representative of the party on behalf of which an estimate was requested or from the member who made a request for an estimate. Ministerial agreement (5) A minister who presides over a department within the meaning of paragraph (a) of the definition department in section 2 of the Financial Administration Act may, at the request of the Parliamentary Budget Officer, personally agree that his or her department will provide assistance to the Parliamentary Budget Officer in preparing estimates under subsection (1) during the period described in subsection (2). Confidentiality (6) The Parliamentary Budget Officer shall not disclose to a minister any information related to a request for an estimate under subsection (3). Ministerial involvement (7) A minister who, under subsection (5), agrees that his or her department will provide assistance shall (a) instruct his or her deputy to make any arrangements that his or her deputy considers necessary for the provision of the assistance, including, at the deputy’s discretion, arrangements respecting the terms under which the assistance is to be provided; and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 (b) abstain from any personal involvement in the provision of the assistance. Confidentiality (8) If the Parliamentary Budget Officer makes a request to a deputy referred to in paragraph 7(a) for assistance in preparing an estimate under subsection (1), the Parliamentary Budget Officer shall not disclose to the deputy or any other person in the department the identity of the party on behalf of which the estimate was requested or the identity of the member who made the request for an estimate. Confidentiality (9) Except for the purposes of subsection (10), information that is obtained or created in the provision of assistance referred to in subsection (8) shall not be disclosed to any person other than the Parliamentary Budget Officer. Assistance of other departments (10) In order to provide assistance referred to in subsection (8), a person in a department may provide information to and obtain information from a person in another department if (a) the other department is also a department within the meaning of paragraph (a) of the definition department in section 2 of the Financial Administration Act; and (b) the minister who presides over the other department has also agreed to provide assistance under subsection (5). Withdrawal of request (11) An authorized representative of the party on behalf of which the estimate was requested or the member who made the request may withdraw it, in writing, before a report containing the estimate is provided to an authorized representative or the member. If a request is withdrawn, the Parliamentary Budget Officer shall discontinue work on the request and shall not disclose the request or the estimate. Report (12) The Parliamentary Budget Officer shall provide a report containing the estimate to an authorized representative of the party on behalf of which the estimate was requested or to the member who made the request. Proposal publicly announced (13) An authorized representative of the party on behalf of which an estimate was requested or the member who 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 made a request shall notify the Parliamentary Budget Officer, in writing, if the proposal for which the estimate is requested has been publicly announced. Report made public (14) The Parliamentary Budget Officer shall make a report available to the public as soon as feasible after the report has been provided to the authorized representative or the member under subsection (12) and the Parliamentary Budget Officer has been notified that the policy proposal has been publicly announced. However, the Parliamentary Budget Officer shall not make the report available to the public on or after the date of the general election. Estimate not completed (15) If, in the Parliamentary Budget Officer’s opinion, he or she does not have sufficient time or information to complete a requested estimate within the period described in subsection (2), the Parliamentary Budget Officer shall notify an authorized representative of the party on behalf of which the estimate was requested or the member who made the request, in writing, that he or she is discontinuing work on the estimate and that it will not be completed. Publication of request and statement (16) If the Parliamentary Budget Officer discontinues work on a request under subsection (15) and the request is for an estimate of the financial cost of a proposal that has been publicly announced, the Parliamentary Budget Officer shall, before the end of the period described in subsection (2), publish the request and a statement of the reasons why the request could not be completed. Definitions (17) The following definitions apply in this section. authorized representative means the leader of a recognized party in the House of Commons on the day before the first day of the period described in subsection (2) or a person authorized in writing by the leader for the purposes of this section. (représentant autorisé) member means a person who is a member of the House of Commons on the day before the first day of the period described in subsection (2) but who is not a member of a recognized party on that day. (membre) Annual report 79.22 The Parliamentary Budget Officer shall, within three months after the end of each fiscal year, submit a report on his or her activities under sections 79.2 and 79.21 for that year to the Speaker of the Senate and the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Section 128 Speaker of the House of Commons, who shall each table the report in the House over which he or she presides. The Parliamentary Budget Officer shall not make the report available to the public before it has been tabled in either the Senate or the House of Commons. Definitions 79.3 The following definitions apply in sections 79.4 to 79.5. department has the same meaning as in any of paragraphs (a), (a.1) and (d) of the definition department in section 2 of the Financial Administration Act. (ministère) head has the same meaning as in section 3 of the Access to Information Act. (responsable d’institution fédérale) parent Crown corporation has the same meaning as in subsection 83(1) of the Financial Administration Act. (société d’État mère) Access to information 79.4 (1) Except as provided by any other Act of Parliament that expressly refers to this subsection, the Parliamentary Budget Officer is entitled, by request made to the head of a department or of a parent Crown corporation, to free and timely access to any information under the control of the department or parent Crown corporation that is required for the performance of his or her mandate. Exception (2) Subsection (1) does not apply in respect of any information (a) the disclosure of which is restricted under section 19 of the Access to Information Act; (b) that is protected by solicitor-client privilege or professional secrecy of advocates and notaries or by litigation privilege; (c) the disclosure of which is restricted under any provision of any other Act of Parliament set out in Schedule II to the Access to Information Act; or (d) that is a confidence of the Queen’s Privy Council for Canada as defined in subsection 39(2) of the Canada Evidence Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 128-130 Refusal to provide access to information 79.41 If he or she refuses to provide access to information requested under subsection 79.4(1), the deputy minister of the department concerned or the person who occupies any other similar position for the federal institution or parent Crown corporation, as the case may be, shall provide the Parliamentary Budget Officer with a written justification for the refusal. Notification 79.42 If the Parliamentary Budget Officer is of the opinion that he or she has not been provided with free or timely access to information requested under subsection 79.4(1), he or she may so notify the Speaker of the Senate and the Speaker of the House of Commons or any appropriate committee of the Senate, of the House of Commons or of both Houses of Parliament. Confidentiality 79.5 The Parliamentary Budget Officer, and every person referred to in subsections 79.11(3) and (4), shall not disclose any information that comes to their knowledge under subsection 79.21(9) or section 79.4, unless the disclosure is essential for the performance of the Parliamentary Budget Officer’s mandate and, in the case of information referred to in subsection 79.21(9), the minister’s deputy has consented to the disclosure. Review 79.501 A committee of the Senate, of the House of Commons or of both Houses of Parliament shall, five years after the day on which this section comes into force, undertake a review of sections 79.01 to 79.5. 129 The definition parliamentary precinct in section 79.51 of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the Parliamentary Budget Officer. (Cité parlementaire) 130 Form 3 in the schedule to the Act is replaced by the following: Form 3 I, ......................................, do solemnly swear (affirm) that I will faithfully, truly and to the best of my judgment, skill and ability execute and perform the duties required of me as a member of the Board of Internal Economy of the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 130-133 House of Commons. (If an oath is taken, add “So help me God”). I further solemnly swear (affirm) that I will not, without the authority of the Board, communicate or allow to be communicated to any person any information or documents discussed in, or prepared for, a meeting of the Board that is held in camera. (If an oath is taken, add “So help me God”). Transitional Provisions Definitions 131 (1) The following definitions apply in sections 132 to 156. commencement day means the day on which section 128 comes into force. (date de référence) new Parliamentary Budget Officer means the Parliamentary Budget Officer appointed under subsection 79.1(1) of the Parliament of Canada Act as enacted by section 128. (nouveau directeur parlementaire du budget) Terminology — Parliamentary Employment and Staff Relations Act (2) Unless the context requires otherwise, words and expressions used in sections 133 to 150 have the same meaning as in section 3 of the Parliamentary Employment and Staff Relations Act. Parliamentary Budget Officer 132 The person occupying the position of Parliamentary Budget Officer immediately before the commencement day is deemed to have been appointed under subsection 79.1(1) of the Parliament of Canada Act as enacted by section 128. Despite subsection 79.1(2) of that Act as enacted by section 128, that person’s term of office is equal to the remainder of the term for which he or she was appointed under subsection 79.1(2) of that Act as it read immediately before the commencement day. Persons who occupy a position 133 (1) Every person who occupies a position in the portion of the Library of Parliament that immediately before the commencement day supported the Parliamentary Budget Officer occupies on the commencement day their position in the office of the new Parliamentary Budget Officer. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 133-135 No change in status (2) Nothing in subsection (1) is to be construed as affecting the status of any person who, immediately before the commencement day, occupies a position within the Library of Parliament, except that the person, beginning on that day, occupies their position in the office of the new Parliamentary Budget Officer. Collective agreements or arbitral awards continued 134 (1) Subject to sections 135 to 146, every collective agreement or arbitral award that applies to an employee who occupies a position in the portion of the Library of Parliament that immediately before the commencement day supported the Parliamentary Budget Officer and that is in force immediately before that day continues in force until its term expires. Binding effect (2) A collective agreement or arbitral award continued in force under subsection (1) is binding on (a) the office of the new Parliamentary Budget Officer, as if it were the employer referred to in the collective agreement or arbitral award; (b) the bargaining agent that is a party to the collective agreement or arbitral award; and (c) the employees of the office of the new Parliamentary Budget Officer in the bargaining unit in respect of which that bargaining agent has been certified. Parties may amend (3) Nothing in subsections (1) and (2) prohibits the office of the new Parliamentary Budget Officer and the bargaining agent from amending any provision of a collective agreement continued in force under subsection (1), other than a provision relating to its term. Application for certification 135 Any employee organization may apply to the Board for certification as the bargaining agent for the employees bound by a collective agreement or arbitral award that is continued in force under subsection 134(1), but it may do so only during the period in which an application for certification is authorized to be made under section 21 of the Parliamentary Employment and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 135-137 Staff Relations Act in respect of those employees. Power of Board 136 (1) If a collective agreement or arbitral award is continued in force under subsection 134(1), the Board must, by order, on application by the office of the new Parliamentary Budget Officer or any bargaining agent affected by the establishment of the office of the new Parliamentary Budget Officer, (a) determine whether the employees of the office of the new Parliamentary Budget Officer who are bound by the collective agreement or arbitral award constitute one or more units appropriate for collective bargaining; (b) determine which employee organization is to be the bargaining agent for the employees in each such unit; and (c) in respect of each collective agreement or arbitral award that binds employees of the office of the new Parliamentary Budget Officer, determine whether the collective agreement or arbitral award is to remain in force and, if it is to remain in force, determine whether it is to remain in force until the expiry of its term or until an earlier date that the Board may fix. When application must be made (2) The application may be made only during the period beginning on the 120th day after the commencement day and ending on the 150th day after that day. Application for leave to give notice to bargain collectively 137 (1) Either of the parties to a collective agreement or arbitral award that remains in force by reason of an order made under paragraph 136(1)(c) may apply to the Board for an order granting leave to give to the other party, under section 37 of the Parliamentary Employment and Staff Relations Act, a notice to bargain collectively. When application may be made (2) The application must be made within 90 days after the day on which the order is made under paragraph 136(1)(c). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 138-141 No application within specified period 138 (1) If no application for an order under subsection 136(1) is made within the period specified in subsection 136(2), the office of the new Parliamentary Budget Officer or any bargaining agent bound by a collective agreement or arbitral award that is continued in force under subsection 134(1) may apply to the Board for an order granting leave to give to the other party, under section 37 of the Parliamentary Employment and Staff Relations Act, a notice to bargain collectively. When application may be made (2) The application may be made only during the period beginning on the 151st day after the commencement day and ending on the 240th day after that day. Notice to bargain given before conversion 139 A notice to bargain collectively that was given before the commencement day does not bind the office of the new Parliamentary Budget Officer and a new notice to bargain collectively may be given only in the circumstances set out in paragraph 141(b). Duty to observe terms and conditions 140 If a notice to bargain collectively is given before the commencement day, then, unless the office of the new Parliamentary Budget Officer and the bargaining agent agree otherwise, the terms and conditions of employment continued in force under section 39 of the Parliamentary Employment and Staff Relations Act are binding on the office of the new Parliamentary Budget Officer, the bargaining agent for the bargaining unit and the employees in the bargaining unit from the commencement day until (a) the expiry of the 150th day following that day, if no application is made under paragraph 141(a); or (b) if such an application is made, the day on which the notice referred to in paragraph 141(b) is given. Application and notice to bargain collectively 141 If a notice to bargain collectively is given before the commencement day, (a) on application by the office of the new Parliamentary Budget Officer or by the bargaining 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 141-143 agent, made during the period beginning on the 120th day after the commencement day and ending on the 150th day after that day, the Board must make an order determining (i) whether the employees of the office of the new Parliamentary Budget Officer who are represented by the bargaining agent constitute one or more units appropriate for collective bargaining, and (ii) which employee organization is to be the bargaining agent for the employees in each such unit; and (b) if the Board makes the determinations under paragraph (a), the office of the new Parliamentary Budget Officer or the bargaining agent may, by notice given under section 37 of the Parliamentary Employment and Staff Relations Act, require the other to commence collective bargaining for the purpose of entering into a collective agreement. Inquiry and votes 142 Before making an order under subsection 136(1) or paragraph 141(a), the Board may make any inquiry or direct that a representation vote be taken among the employees to be affected by the order. Consideration of classification 143 (1) For the purposes of paragraphs 136(1)(a) and 141(a), in determining whether a group of employees constitutes a unit appropriate for collective bargaining, the Board must have regard to the office of the new Parliamentary Budget Officer’s classification of persons and positions, including the occupational groups or subgroups established by it. Unit co-extensive with occupational groups (2) The Board must establish bargaining units that are co-extensive with the occupational groups or subgroups established by the office of the new Parliamentary Budget Officer, unless doing so would not permit satisfactory representation of the employees to be included in a particular bargaining unit and, for that reason, such a unit would not be appropriate for collective bargaining. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 144-146 Determination of questions of membership in bargaining units 144 On application by the office of the new Parliamentary Budget Officer or the employee organization affected by the establishment of that office, the Board must determine every question that arises as to whether any employee or class of employees is included in a bargaining unit determined by the Board under paragraph 136(1)(a) or 141(a) to constitute a unit appropriate for collective bargaining, or is included in any other unit. Employer participation 145 (1) The Board is not authorized to determine that an employee organization is to be a bargaining agent under paragraph 136(1)(b) or 141(a) if it is of the opinion that the office of the new Parliamentary Budget Officer, or a person acting on behalf of that office, has participated or is participating in the formation or administration of the employee organization in a manner that impairs its fitness to represent the interests of the employees in the bargaining unit. Discrimination (2) The Board is not authorized to determine that an employee organization is to be a bargaining agent under paragraph 136(1)(b) or 141(a) if it discriminates against any employee on a prohibited ground of discrimination within the meaning of the Canadian Human Rights Act. Application of Parliamentary Employment and Staff Relations Act 146 (1) The provisions of Part I of the Parliamentary Employment and Staff Relations Act, and any rules or regulations made under that Act, apply to, or in respect of, the following and any matter related to the following: (a) an application made to the Board under any of sections 135 to 138, 141 and 144; (b) an order made by the Board under any of sections 136 to 138 and 141; (c) a determination of the Board made under any of sections 136, 141 and 144 and a bargaining unit, bargaining agent or employee or class of employees that is the subject of such a determination; (d) a collective agreement or arbitral award that is continued in force under subsection 134(1); and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 146-149 (e) collective bargaining that is commenced after the receipt of a notice referred to in section 137 or 138 or paragraph 141(b) and a collective agreement that is entered into following such collective bargaining. Powers, duties and functions of Board (2) The Board has, for the purposes of performing its duties and functions under any of sections 135 to 145, the powers conferred on it under Part I of the Parliamentary Employment and Staff Relations Act, and it must perform the duties and functions imposed on it under that Part in respect of those powers. Inconsistency (3) In the event of any inconsistency between sections 134 to 145 and the provisions of Part I of the Parliamentary Employment and Staff Relations Act, or anything issued, made or established under that Act, those sections prevail to the extent of the inconsistency. Persons not represented 147 The terms and conditions of employment of persons who are not represented by a bargaining agent or who are excluded from a bargaining unit and who, on the commencement day, occupy their position within the office of the new Parliamentary Budget Officer continue to apply until new terms and conditions of employment for those persons are established. Complaints 148 The provisions of Division I of Part I of the Parliamentary Employment and Staff Relations Act and any rules or regulations made under that Act, as they read immediately before the commencement day, continue to apply in respect of any complaint made under that Division before that day that relates to the portion of the Library of Parliament that supported the Parliamentary Budget Officer. Grievances 149 (1) The provisions of Division IV of Part I of the Parliamentary Employment and Staff Relations Act and any rules or regulations made under that Act, as they read immediately before the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 149-153 commencement day, continue to apply in respect of any grievance presented under that Division before that day by an employee of the Library of Parliament occupying a position in the portion of the Library of Parliament that supported the Parliamentary Budget Officer. Implementation of decision (2) A final decision with respect to a grievance referred to in subsection (1) that provides for the reinstatement of an employee or the payment of money to an employee must be implemented by the office of the new Parliamentary Budget Officer as soon as feasible. Matter referred to Board 150 The provisions of Division IV of Part I of the Parliamentary Employment and Staff Relations Act and any rules or regulations made under that Act, as they read immediately before the commencement day, continue to apply in respect of any matter referred to the Board under that Division before that day that relates to the portion of the Library of Parliament that supported the Parliamentary Budget Officer. References — Parliamentary Budget Officer 151 Every reference to the Parliamentary Budget Officer in any deed, contract, agreement, arrangement or other similar document is, beginning on the commencement day, to be read as a reference to the new Parliamentary Budget Officer unless the context requires otherwise. Commencement of legal or administrative proceedings 152 Every action, suit or other legal or administrative proceeding in respect of an obligation or liability incurred in relation to the portion of the Library of Parliament that supported the Parliamentary Budget Officer may, beginning on the commencement day, be brought against the new Parliamentary Budget Officer. Continuation of legal or administrative proceedings 153 Any action, suit or other legal or administrative proceeding to which the Parliamentary Budget Officer is a party that is pending on the commencement day may be continued by or against the new Parliamentary Budget Officer in the same manner and to the same extent as it could 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Parliament of Canada Act Sections 153-158 have been continued by or against the Parliamentary Budget Officer. Transfer of appropriation 154 Any amount that is appropriated by an Act of Parliament for the fiscal year in which section 128 comes into force to defray the expenditures of the Library of Parliament in relation to the Parliamentary Budget Officer and that is unexpended on the commencement day is deemed to be an amount appropriated to defray the expenditures of the office of the new Parliamentary Budget Officer. Transfer of data 155 All information that, immediately before the commencement day, is in the possession or under the control of the Parliamentary Budget Officer and that relates to the exercise or performance of his or her powers, duties and functions under the Parliament of Canada Act is, as of that day, under the control of the new Parliamentary Budget Officer. Completion of work 156 The new Parliamentary Budget Officer may complete any work that was started before the commencement day by the Parliamentary Budget Officer under section 79.2 of the Parliament of Canada Act as it read immediately before that day. Consequential Amendments R.S., c. A-1 Access to Information Act 157 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Parliament of Canada Act Loi sur le Parlement du Canada and a corresponding reference to “subsection 79.21(9)”. R.S., c. C-10 Canada Post Corporation Act 158 Subsection 35(2) of the Canada Post Corporation Act is amended by striking out “or” at the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e): 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 158-160 (f) the Parliamentary Budget Officer R.S., c. F-7; 2002, c. 8, s. 14 Federal Courts Act 159 Subsection 2(2) of the Federal Courts Act is replaced by the following: Senate and House of Commons (2) For greater certainty, the expression federal board, commission or other tribunal, as defined in subsection (1), does not include the Senate, the House of Commons, any committee or member of either House, the Senate Ethics Officer, the Conflict of Interest and Ethics Commissioner with respect to the exercise of the jurisdiction or powers referred to in sections 41.1 to 41.5 and 86 of the Parliament of Canada Act, the Parliamentary Protective Service or the Parliamentary Budget Officer. Deeming (3) Despite subsection (2), the Parliamentary Budget Officer is deemed to be a federal board, commission or other tribunal for the purpose of subsection 18.3(1). R.S., c. F-11 Financial Administration Act 160 (1) Paragraph (c) of the definition appropriate Minister in section 2 of the Financial Administration Act is replaced by the following: (c) with respect to the Senate and the office of the Senate Ethics Officer, the Speaker of the Senate, with respect to the House of Commons, the Board of Internal Economy, with respect to the office of the Conflict of Interest and Ethics Commissioner, the Speaker of the House of Commons, and with respect to the Library of Parliament, the Parliamentary Protective Service and the office of the Parliamentary Budget Officer, the Speakers of the Senate and the House of Commons, (2) Paragraph (c) of the definition department in section 2 of the Act is replaced by the following: (c) the staffs of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and office of the Parliamentary Budget Officer, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 161-164 R.S., c. G-2 Garnishment, Attachment and Pension Diversion Act 161 The heading of Division IV of Part 1 of the Garnishment, Attachment and Pension Diversion Act is replaced by the following: Senate, House of Commons, Library of Parliament, Office of the Senate Ethics Officer, Office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and Office of the Parliamentary Budget Officer 162 The portion of paragraph (b) of the definition salary in section 16 of the Act before subparagraph (i) is replaced by the following: (b) in the case of the staff of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer or the staff of members of the Senate or House of Commons, or in the case of any other person paid out of moneys appropriated by Parliament for use by the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, 163 The portion of section 17 of the Act before paragraph (a) is replaced by the following: Garnishment of salaries, remuneration 17 The Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and office of the Parliamentary Budget Officer are, subject to this Division and any regulation made under it, bound by provincial garnishment law in respect of 164 (1) Subsection 18(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 164-165 Service binding 18 (1) Subject to this Division, service on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer of a garnishee summons, together with a copy of the judgment or order against the debtor and an application in the prescribed form, binds the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, 15 days after the day on which those documents are served. (2) Subsection 18(2) of the English version of the Act is replaced by the following: When service is effective (2) A garnishee summons served on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer is of no effect unless it is served on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, in the first 30 days following the first day on which it could have been validly served on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be. 165 (1) Subsection 19(1) of the Act is replaced by the following: Place of service 19 (1) Service of documents on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer in connection with garnishment proceedings permitted by this Division must be effected at the place specified in the regulations. (2) Subsection 19(2) of the English version of the Act is replaced by the following: Method of service (2) In addition to any method of service permitted by the law of a province, service of documents on the Senate, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 165-166 House of Commons, Library of Parliament, office of the Senate Ethics Office, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer under subsection (1) may be effected by registered mail, whether within or outside the province, or by any other method prescribed. (3) Subsection 19(3) of the Act is replaced by the following: If service by registered mail (3) If service of a document on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer is effected by registered mail, the document shall be deemed to be served on the day of its receipt by the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be. 166 (1) The portion of section 21 of the French version of the Act before paragraph (a) is replaced by the following: Sommes frappées d’indisponibilité par la signification du bref de saisie-arrêt 21 Pour les besoins de toute procédure de saisie-arrêt prévue par la présente section, la signification au Sénat, à la Chambre des communes, à la bibliothèque du Parlement, au bureau du conseiller sénatorial en éthique, au bureau du commissaire aux conflits d’intérêts et à l’éthique, au Service de protection parlementaire ou au bureau du directeur parlementaire du budget du bref de saisie-arrêt frappe d’indisponibilité les sommes suivantes dont l’un ou l’autre est redevable envers le débiteur mentionné dans le bref : (2) Subparagraph 21(a)(i) of the English version of the Act is replaced by the following: (i) the salary to be paid on the last day of the second pay period next following the pay period in which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, is bound by the garnishee summons, and (3) Paragraph 21(b) of the English version of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 166-167 (b) in the case of remuneration described in paragraph 17(b), (i) the remuneration payable on the 15th day following the day on which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, is bound by the garnishee summons, and (ii) either (A) any remuneration becoming payable in the 30 days following the 15th day after the day on which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, is bound by the garnishee summons that is owing on that 15th day or that becomes owing in the 14 days following that 15th day, or (B) if the garnishee summons has continuing effect under the law of the province, any remuneration becoming payable subsequent to the 15th day after the day on which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, is bound by the garnishee summons. 167 (1) The portion of section 22 of the Act before paragraph (a) is replaced by the following: Time period to respond to garnishee summons 22 The Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer has the following time period within which to respond to a garnishee summons: (2) Paragraph 22(a) of the English version of the Act is replaced by the following: (a) in the case of a salary, 15 days, or any lesser number of days that is prescribed, after the last day of the second pay period next following the pay period in which the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 167-168 the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer is bound by the garnishee summons; or 168 (1) Subsection 23(1) of the Act is replaced by the following: Method of response 23 (1) In addition to any method of responding to a garnishee summons permitted by provincial garnishment law, the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer may respond to a garnishee summons by registered mail or by any other method prescribed. (2) Subsection 23(2) of the English version of the Act is replaced by the following: Response by registered mail (2) If the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer responds to a garnishee summons by registered mail, the receipt issued in accordance with regulations relating to registered mail made under the Canada Post Corporation Act shall be received in evidence and is, unless the contrary is shown, proof that the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, has responded to the garnishee summons. (3) Subsections 23(3) and (4) of the Act are replaced by the following: Effect of payment into court (3) A payment into court by the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer under this section is a good and sufficient discharge of liability, to the extent of the payment. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 168-171 Recovery of overpayment to debtor (4) If, in honouring a garnishee summons, the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, through error, pays to a debtor by way of salary or remuneration an amount in excess of the amount that it should have paid to that debtor, the excess becomes a debt due to the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as the case may be, by that debtor and may be recovered from the debtor at any time by set-off against future moneys payable to the debtor as salary or remuneration. 169 Paragraph 24(a) of the Act is replaced by the following: (a) specifying the place where service of documents on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer must be effected in connection with garnishment proceedings permitted by this Division; 170 Section 26 of the Act is replaced by the following: No execution 26 No execution shall issue on a judgment given against the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer in garnishment proceedings permitted by this Part. R.S., c. G-5 Government Employees Compensation Act 171 Paragraph (e) of the definition employee in section 2 of the Government Employees Compensation Act is replaced by the following: (e) any officer or employee of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer; (agents de l’État) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 172-173 R.S., c. P-36 Public Service Superannuation Act 172 The definition public service in subsection 3(1) of the Public Service Superannuation Act is replaced by the following: public service means the several positions in or under any department or portion of the executive government of Canada, except those portions of departments or portions of the executive government of Canada prescribed by the regulations and, for the purposes of this Part, of the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and office of the Parliamentary Budget Officer and any board, commission, corporation or portion of the federal public administration specified in Schedule I; (fonction publique) R.S., c. R-2; 1989, c. 17, s. 2 Radiocommunication Act 173 (1) Subsection 3(1) of the Radiocommunication Act is replaced by the following: Application to Her Majesty and Parliament 3 (1) Subject to subsection (2), this Act is binding on Her Majesty in right of Canada, on the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and office of the Parliamentary Budget Officer and on Her Majesty in right of a province. (2) The portion of subsection 3(2) of the Act before paragraph (a) is replaced by the following: Exemptions (2) The Governor in Council may by order exempt Her Majesty in right of Canada, or the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, as represented by the person or persons named in the order, from any or all provisions of this Act or the regulations, and such an exemption may be 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 173-175 R.S., c. R-10 Royal Canadian Mounted Police Act 173.1 Subsection 45.47(5) of the Royal Canadian Mounted Police Act is replaced by the following: Application (5) This section applies despite subsection 13(1) of the Auditor General Act and subsection 79.4(1) of the Parliament of Canada Act. R.S., c. 33 (2nd Supp.) Parliamentary Employment and Staff Relations Act 174 The long title of the Parliamentary Employment and Staff Relations Act is replaced by the following: An Act respecting employment and employer and employee relations in the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and office of the Parliamentary Budget Officer 175 Paragraph 2(a) of the Act is replaced by the following: (a) the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 176-179 176 The definition employer in section 3 of the Act is amended by striking out “or” at the end of paragraph (e), by adding “or” at the end of paragraph (f) and by adding the following after paragraph (f): (g) the office of the Parliamentary Budget Officer as represented by the Parliamentary Budget Officer; (employeur) 177 The definition employer in section 85 of the Act is amended by striking out “or” at the end of paragraph (c.3) and by adding the following after that paragraph: (c.4) the office of the Parliamentary Budget Officer as represented by the Parliamentary Budget Officer; or R.S., c. 15 (4th Supp.) Non-smokers’ Health Act 178 Paragraph (c) of the definition employer in subsection 2(1) of the Non-smokers’ Health Act is replaced by the following: (c) the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, in relation to their employees or the employees of a committee of the Senate or House of Commons, as the case may be, or R.S., c. 31 (4th Supp.) Official Languages Act 179 The definition federal institution in subsection 3(1) of the Official Languages Act is amended by adding the following after paragraph (c.2): (c.3) the office of the Parliamentary Budget Officer, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 179-182 180 Section 33 of the Act is replaced by the following: Regulations 33 The Governor in Council may make any regulations that the Governor in Council considers necessary to foster actively communications with and services from offices or facilities of federal institutions — other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer — in both official languages, if those communications and services are required under this Part to be provided in both official languages. 181 (1) The portion of subsection 38(1) of the Act before paragraph (a) is replaced by the following: Regulations 38 (1) The Governor in Council may make regulations in respect of federal institutions, other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, (2) Paragraph 38(2)(b) of the English version of the Act is replaced by the following: (b) substituting, with respect to any federal institution other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, a duty in relation to the use of the official languages of Canada in place of a duty under section 36 or the regulations made under subsection (1), having regard to the equality of status of both official languages, if there is a demonstrable conflict between the duty under section 36 or the regulations and the mandate of the institution. 182 Subsection 41(3) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 182-185 Regulations (3) The Governor in Council may make regulations in respect of federal institutions, other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer, prescribing the manner in which any duties of those institutions under this Part are to be carried out. 183 Subsection 46(1) of the Act is replaced by the following: Responsibilities of Treasury Board 46 (1) The Treasury Board has responsibility for the general direction and coordination of the policies and programs of the Government of Canada relating to the implementation of Parts IV, V and VI in all federal institutions other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service and office of the Parliamentary Budget Officer. 184 Paragraph 93(a) of the Act is replaced by the following: (a) prescribing anything that the Governor in Council considers necessary to effect compliance with this Act in the conduct of the affairs of federal institutions other than the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer; and 1991, c. 30 Public Sector Compensation Act 185 Paragraph 3(1)(c) of the Public Sector Compensation Act is replaced by the following: (c) the Senate, House of Commons, Library of Parliament, Parliamentary Protective Service or office of the Parliamentary Budget Officer. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 186-189 2003, c. 22, ss. 12 and 13 Public Service Employment Act 186 The portion of section 35.3 of the Public Service Employment Act before paragraph (a) is replaced by the following: Parliamentary employees 35.3 A person employed in the Senate, House of Commons, Library of Parliament, office of the Senate Ethics Officer, office of the Conflict of Interest and Ethics Commissioner, Parliamentary Protective Service or office of the Parliamentary Budget Officer 2006, c. 9, s. 2 Conflict of Interest Act 187 (1) The definition public office holder in subsection 2(1) of the Conflict of Interest Act is amended by adding the following after paragraph (d): (d.01) the Parliamentary Budget Officer; (2) The definition reporting public office holder in subsection 2(1) of the Act is amended by striking out “or” at the end of paragraph (e) and by adding the following after that paragraph: (e.1) the Parliamentary Budget Officer; or 188 Subsection 24(2) of the Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after that paragraph: (c.1) in the case of the Parliamentary Budget Officer, to the Speakers of the Senate and the House of Commons; and 2009, c. 2, s. 393 Expenditure Restraint Act 189 Paragraph 13(1)(c) of the Expenditure Restraint Act is replaced by the following: (c) the Senate, the House of Commons, the Library of Parliament, the office of the Senate Ethics Officer, the office of the Conflict of Interest and Ethics Commissioner, the Parliamentary Protective Service and the office of the Parliamentary Budget Officer. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 7 Parliamentary Budget Officer and Board of Internal Economy Consequential Amendments Sections 190-194 2013, c. 36 Language Skills Act 190 Section 2 of the Language Skills Act is amended by adding the following after paragraph (j): (k) the Parliamentary Budget Officer, appointed under subsection 79.1(1) of the Parliament of Canada Act. Coming into Force Order in council 191 Sections 126 to 129 and 131 to 190 come into force on a day to be fixed by order of the Governor in Council. DIVISION 8 R.S., c. 28 (1st Supp.) Investment Canada Act Amendments to the Act 192 Paragraphs 14.1(1)(a) to (d) of the Investment Canada Act are replaced by the following: (d) for an investment implemented at any time in the period that begins on the day on which this paragraph comes into force and that ends on December 31 of the following year, $1,000,000,000; and 193 Section 38.1 of the Act is replaced by the following: Annual report 38.1 The Director shall, for each fiscal year, submit a report on the administration of this Act to the Minister and the Minister shall make the report available to the public. Transitional Provision Application for review — subsection 14.1(1) 194 Any application that is filed under section 17 of the Investment Canada Act before the day on which paragraph 14.1(1)(d) of that Act, as enacted by section 192 of this Act, comes into force and in respect of which the Minister of Industry has not made a decision before that day is deemed never to have been filed if 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 8 Investment Canada Act Transitional Provision Sections 194-195 (a) the investment to which the application relates would have been subject to subsection 14.1(1) of that Act, had the application been filed on that day; and (b) the enterprise value of the assets to which the application relates is less than the amount referred to in paragraph 14.1(1)(d) of that Act, as enacted by section 192 of this Act. DIVISION 9 Funding for Home Care Services and Mental Health Services Payment to provinces — fiscal year 2017–2018 195 (1) For the fiscal year beginning on April 1, 2017, the Minister of Finance must pay to a province the amounts determined in accordance with subsections (2) and (3) for the purposes of assisting the province to provide home care services and mental health services if, no later than March 30, 2018, the Minister of Health notifies the Minister of Finance in writing that, in his or her opinion, the government of the province, before December 15, 2017, has accepted the federal proposal to strengthen health care for Canadians made on December 19, 2016. Amount — home care services (2) The amount to be paid for the purposes of assisting a province to provide home care services is the amount determined in accordance with the formula A × (B/C) where A is $200 million; B is the population of the province, according to the official estimate of the population of the province on July 1, 2016 published by Statistics Canada on September 28, 2016; and C is the total of the population of all provinces, according to the official estimate of the population of all provinces on July 1, 2016 published by Statistics Canada on September 28, 2016. Amount — mental health services (3) The amount to be paid for the purposes of assisting a province to provide mental health services is the amount determined in accordance with the formula A × (B/C) where A is $100 million; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 9 Funding for Home Care Services and Mental Health Services Sections 195-198 B is the population of the province, according to the official estimate of the population of the province on July 1, 2016 published by Statistics Canada on September 28, 2016; and C is the total of the population of all provinces, according to the official estimate of the population of all provinces on July 1, 2016 published by Statistics Canada on September 28, 2016. Payments out of C.R.F (4) Any amount to be paid under this section is to be paid out of the Consolidated Revenue Fund. DIVISION 10 R.S., c. J-1 Judges Act Amendments to the Act 196 Paragraphs 9(a) and (b) of the Judges Act are replaced by the following: (a) the Chief Justice of Canada, $403,800; and (b) the eight puisne judges, $373,900 each. 197 Paragraphs 10(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of the Federal Court of Appeal, $344,400; (b) the other judges of the Federal Court of Appeal, $314,100 each; (c) the Chief Justice of the Federal Court, $344,400; and (d) the other judges of the Federal Court, $314,100 each. 198 Section 10.1 of the Act is replaced by the following: Federal Court prothonotaries 10.1 The yearly salaries of the prothonotaries of the Federal Court shall be 80% of the yearly salaries, calculated in accordance with section 25, of the judges referred to in paragraph 10(d). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 198-202 Court Martial Appeal Court 10.2 The yearly salary of the Chief Justice of the Court Martial Appeal Court of Canada shall be $344,400. 199 Paragraphs 11(a) to (c) of the Act are replaced by the following: (a) the Chief Justice, $344,400; (b) the Associate Chief Justice, $344,400; and (c) the other judges, $314,100 each. 200 Paragraphs 12(a) to (d) of the Act are replaced by the following: (a) the Chief Justice and the Associate Chief Justice of Ontario, $344,400 each; (b) the 14 Justices of Appeal, $314,100 each; (c) the Chief Justice and the Associate Chief Justice of the Superior Court of Justice, $344,400 each; and (d) the 192 other judges of the Superior Court of Justice, $314,100 each. 201 Paragraphs 13(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of Quebec, $344,400; (b) the 18 puisne judges of the Court of Appeal, $314,100 each; (c) the Chief Justice, the Senior Associate Chief Justice and the Associate Chief Justice of the Superior Court, $344,400 each; and (d) the 144 puisne Court, $314,100 each. judges of the Superior 202 Paragraphs 14(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of Nova Scotia, $344,400; (b) the seven other judges of the Court of Appeal, $314,100 each; (c) the Chief Justice and the Associate Chief Justice of the Supreme Court, $344,400 each; and (d) the 23 other Court, $314,100 each. 2015-2016-2017 judges of the Supreme Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 203-206 203 Paragraphs 15(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of New Brunswick, $344,400; (b) the five other judges of the Court of Appeal, $314,100 each; (c) the Chief Justice of the Court of Queen’s Bench, $344,400; and (d) the 21 other judges of the Court of Queen’s Bench, $314,100 each. 204 Paragraphs 16(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of Manitoba, $344,400; (b) the six Judges of Appeal, $314,100 each; (c) the Chief Justice, the Senior Associate Chief Justice and the Associate Chief Justice of the Court of Queen’s Bench, $344,400 each; and (d) the 31 puisne judges of the Court of Queen’s Bench, $314,100 each. 205 Paragraphs 17(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of British Columbia, $344,400; (b) the 12 Justices of Appeal, $314,100 each; (c) the Chief Justice and the Associate Chief Justice of the Supreme Court, $344,400 each; and (d) the 81 other Court, $314,100 each. judges of the Supreme 206 Paragraphs 18(a) to (d) of the Act are replaced by the following: (a) the Chief land, $344,400; Justice of Prince Edward Is(b) the two other judges of the Court of Appeal, $314,100 each; (c) the Chief Justice of the Supreme Court, $344,400; and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 206-210 (d) the three other Court, $314,100 each. judges of the Supreme 207 Paragraphs 19(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of Saskatchewan, $344,400; (b) the six Judges of Appeal, $314,100 each; (c) the Chief Justice of the Court of Queen’s Bench, $344,400; and (d) the 29 other judges of the Court of Queen’s Bench, $314,100 each. 208 Paragraphs 20(a) to (d) of the Act are replaced by the following: (a) the Chief Justice of Alberta, $344,400; (b) the 10 Justices of Appeal, $314,100 each; (c) the Chief Justice and the Associate Chief Justice of the Court of Queen’s Bench, $344,400 each; and (d) the 68 other Justices of the Court of Queen’s Bench, $314,100 each. 209 Paragraphs 21(a) to (d) of the Act are replaced by the following: (a) the Chief Justice Labrador, $344,400; of Newfoundland and (b) the five Judges of Appeal, $314,100 each; (c) the Chief Justice of the Trial Division, $344,400; and (d) the 18 other judges of the Trial Division, $314,100 each. 210 (1) Paragraphs 22(1)(a) and (b) of the Act are replaced by the following: (a) the senior judge, $344,400; and (b) the two other judges, $314,100 each. (2) Paragraphs 22(2)(a) and (b) of the Act are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 210-214 (a) the senior judge, $344,400; and (b) the two other judges, $314,100 each. (3) Paragraphs 22(2.1)(a) and (b) of the Act are replaced by the following: (a) the senior judge, $344,400; and (b) the four other judges, $314,100 each. 211 Paragraphs 24(3)(a) and (b) of the Act are replaced by the following: (a) 16, in the case of judges appointed to appeal courts in the provinces; and (b) 62, in the case of judges appointed to superior courts in the provinces other than appeal courts. 212 (1) Subsection 25(1) of the Act is replaced by the following: Annual adjustment of salary 25 (1) The yearly salaries referred to in sections 9 to 22 apply in respect of the twelve-month period beginning on April 1, 2016. (2) The portion of subsection 25(2) of the Act before paragraph (a) is replaced by the following: Annual adjustment of salary (2) The salary annexed to an office of judge referred to in sections 9, 10 and 10.2 to 22 for the twelve-month period beginning on April 1, 2017, and for each subsequent twelve-month period, shall be the amount obtained by multiplying 213 Subsection 26(2) of the Act is replaced by the following: Quadrennial inquiry (2) The Commission shall commence an inquiry on June 1, 2020, and on June 1 of every fourth year after 2020, and shall submit a report containing its recommendations to the Minister of Justice of Canada within nine months after the date of commencement. 214 The Act is amended by adding the following after section 26.1: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 214-216 Definition of judiciary 26.11 In sections 26 and 26.1, judiciary includes the prothonotaries of the Federal Court. 215 Section 26.4 of the Act is replaced by the following: Costs payable to representative of prothonotaries 26.4 (1) The Commission may identify one representative of the prothonotaries of the Federal Court participating in an inquiry of the Commission to whom costs shall be paid in accordance with this section. Entitlement to payment of costs (2) The representative identified under subsection (1) is entitled to be paid, out of the Consolidated Revenue Fund, 95% of the costs determined under subsection (3) in respect of his or her participation. Determination of costs (3) An assessment officer of the Federal Court, other than a judge or a prothonotary, shall determine the amount of costs, on a solicitor-and-client basis, in accordance with the Federal Courts Rules. Application (4) This section applies to costs incurred as of April 1, 2015 in relation to participation in any inquiry of the Commission. 216 (1) Section 27 of the Act is amended by adding the following after subsection (1): Allowance for incidental expenditures by prothonotaries (1.1) On and after April 1, 2016, every prothonotary in receipt of a salary under this Act is entitled to be paid, up to a maximum of $3,000 for each year, for reasonable incidental expenditures that the fit and proper execution of the office of prothonotary may require, to the extent that the prothonotary has actually incurred the expenditures and is not entitled to be reimbursed for them under any other provision of this Act. (2) Subsection 27(2) of the French version of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 216-219 Indemnité supplémentaire de vie chère pour le Nord canadien (2) À compter du 1er avril 2004, les juges de la Cour suprême de Terre-Neuve-et-Labrador qui résident au Labrador, les juges des cours suprêmes du Yukon et des Territoires du Nord-Ouest et de la Cour de justice du Nunavut rémunérés au titre de la présente loi reçoivent en outre, sans avoir à en rendre compte, une indemnité de vie chère de 12 000 $ par an pour les territoires et le Labrador. 217 Subsection 31(1) of the French version of the Act is replaced by the following: Cour fédérale et Cour canadienne de l’impôt 31 (1) Les juges en chef de la Cour d’appel fédérale ou de la Cour fédérale ou le juge en chef ou juge en chef adjoint de la Cour canadienne de l’impôt peuvent, en avisant le ministre de la Justice du Canada de leur décision, devenir simples juges du tribunal auquel ils appartiennent; le cas échéant, ils exercent cette charge et touchent le traitement correspondant jusqu’à la cessation de leurs fonctions, notamment par mise à la retraite d’office, démission ou révocation. 218 The Act is amended by adding the following after section 31: Election of Chief Justice of the Court Martial Appeal Court of Canada 31.1 If the Chief Justice of the Court Martial Appeal Court of Canada notifies the Minister of Justice of Canada of their election to cease to perform the duties of that office and to perform only the duties of a judge of the court on which they serve, they shall, after giving that notice, hold only the office of a judge and shall be paid the salary annexed to the office of a judge, until they reach the age of retirement, resign or are removed from or otherwise cease to hold office. 219 Subsection 33(1) of the Act is replaced by the following: Deemed election and notice 33 (1) If a judge gives notice to the Minister of Justice of Canada and, if appropriate, to the attorney general of the province concerned of the judge’s election as provided in section 28, 29, 31, 31.1, 32 or 32.1 to be effective on a future day specified in the notice, being a day on which the judge will be eligible to so elect, the judge is, effective on that day, deemed to have elected and given notice of the election on that day under section 28, 29, 31, 31.1, 32 or 32.1, as the case may be. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 220-221 220 (1) The portion of paragraph 40(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) a judge of the Supreme Court of Newfoundland and Labrador resident in Labrador, the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice who moves to a place of residence in one of the 10 provinces or in another territory during the period of two years (2) Paragraph 40(1)(d) of the Act is replaced by the following: (d) a survivor or child, as defined in subsection 47(1), of a judge of the Supreme Court of Newfoundland and Labrador resident in Labrador, the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice who dies while holding office as such, if the survivor or child lives with the judge at the time of the judge’s death and, within two years after the death, moves to a place of residence in one of the 10 provinces or in another territory; (3) Subsection 40(1.1) of the Act is replaced by the following: Limitation (1.1) Paragraphs (1)(c) and (d) apply only in respect of (a) a judge who resided in one of the 10 provinces or in another territory at the time of appointment to the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice, as the case may be; or (b) a judge of the Supreme Court of Newfoundland and Labrador resident in Labrador who at the time of appointment did not reside there. 221 (1) Section 43 of the Act is amended by adding the following after subsection (1): Annuity for former supernumerary judge (1.1) If a supernumerary judge to whom subsection (1) applies is appointed to a different court to perform only the duties of a judge, the annuity payable to the judge under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office or position previously held by him or her of chief justice, senior associate chief justice, associate chief justice or senior judge. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 221-222 (2) Subsection 43(3) of the Act is replaced by the following: Annuity — election under section 31.1 (2.1) If the Chief Justice of the Court Martial Appeal Court of Canada, in accordance with section 31.1, has elected to cease to perform his or her duties as such and to perform only the duties of a judge, the annuity payable to him or her under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office held by him or her immediately before his or her election, if he or she had continued in that office for at least five years or had continued in that office and any other office of chief justice for a total of at least five years. Annuity payable to chief justice or senior judge (2.2) If a chief justice or a senior judge, as defined in subsection 22(3), is appointed to a different court to perform only the duties of a judge, the annuity payable to him or her under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office of chief justice or position of senior judge, if he or she had continued in that office or position for at least five years or had continued in that office or position and any other office or position of chief justice or senior judge for at least five years. Definition of chief justice and chief justice of a superior court of a province (3) In subsections (2) to (2.2), chief justice or chief justice of a superior court of a province means a chief justice, senior associate chief justice or associate chief justice of that court, or, if that court is constituted with divisions, of a division of that court. Application of subsections (1) and (2) (4) Subsections (1) and (2) are deemed to have come into force on April 1, 2012. 222 Paragraph 44(1)(b) of the Act is replaced by the following: (b) the salary annexed, at the date of death, to the office previously held by the judge of chief justice, senior associate chief justice or associate chief justice, if one of subsections 43(1), (1.1), (2), (2.1) or (2.2) would have applied to the judge if he or she had resigned, been removed or attained the age of retirement, on the day of death, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 223-225 223 The heading before section 52 of the French version of the Act is replaced by the following: Saisie-arrêt relative à un soutien financier 224 Subsection 52(1) of the Act is replaced by the following: Diversion of payments to satisfy financial support order 52 (1) If a court in Canada of competent jurisdiction has made an order requiring a recipient of an annuity or other amount payable under section 42, 43, 43.1, 44, 44.1 or 44.2 or subsection 51(1) to pay financial support, amounts so payable to the recipient are subject to being diverted to the person named in the order in accordance with Part II of the Garnishment, Attachment and Pension Diversion Act. 225 (1) The portion of subsection 52.14(3) of the French version of the Act before paragraph (a) is replaced by the following: Partage des contributions (3) Sous réserve des paragraphes (3.1) et (4), dans le cas où le juge n’est pas admissible à une pension à la fin de la période visée par le partage, l’approbation par le ministre du partage des prestations de pension entraîne l’attribution à l’époux, ex-époux ou ancien conjoint de fait du juge d’une part des prestations de pension, constituée de l’une des sommes suivantes : (2) The portion of subsection 52.14(3.1) of the French version of the Act before paragraph (a) is replaced by the following: Partage des contributions : pensionnaire infirme (3.1) Sous réserve du paragraphe (4), lorsque le ministre approuve le partage des prestations de pension d’un juge à qui a été accordée une pension pour cause d’infirmité mais qui n’était pas autrement admissible à une pension à la fin de la période visée par le partage, l’époux, exépoux ou ancien conjoint de fait a droit à une partie des prestations de pension équivalant à l’une des sommes suivantes : (3) Paragraph 52.14(3.1)(a) of the Act is replaced by the following: (a) an amount equal to 50% of the contributions that would have been made during the period described in subparagraph (2)(b)(i) if the judge had continued in 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 225-226 office, on the basis of the salary annexed to the office held by the judge at the time the judge ceased to hold office, plus 50% of any interest payable on those contributions; or (4) Subsections 52.14(4) and (5) of the French version of the Act are replaced by the following: Choix de l’époux, etc. (4) L’époux, ex-époux ou ancien conjoint de fait d’un juge qui a droit à une partie des cotisations de celui-ci aux termes des paragraphes (3) ou (3.1) peut choisir, selon les modalités réglementaires, de recevoir en échange de cette partie, au moment où le juge a droit à une pension — ou au moment où le juge aurait été admissible à une pension s’il n’avait pas démissionné ou été révoqué par suite d’une infirmité —, une part de la pension à laquelle le juge a ou aurait eu droit, déterminée conformément au paragraphe (1). Décès du juge (5) Si le juge décède ou cesse d’exercer ses fonctions, notamment par mise à la retraite d’office, démission ou révocation, avant d’être admissible à une pension, l’époux, ex-époux ou ancien conjoint de fait qui a effectué le choix visé au paragraphe (4) reçoit plutôt sur-le-champ la partie des cotisations versées par le juge à laquelle il avait autrement droit conformément aux paragraphes (3) ou (3.1). 226 (1) Paragraph 52.22(a) of the French version of the Act is replaced by the following: a) régir les modalités d’une demande, les renseignements à fournir dans la demande et les documents qui doivent l’accompagner; (2) Paragraphs 52.22(j) and (k) of the French version of the Act are replaced by the following: j) régir, pour l’application du paragraphe 52.14(1), la valeur d’une pension attribuée pour une période visée par le partage; k) régir, pour l’application des paragraphes 52.14(2) et (3.1), la date prévue pour la retraite du juge; (3) Paragraph 52.22(n) of the French version of the Act is replaced by the following: n) prévoir, pour l’application de l’alinéa 52.14(6)b), la façon de déterminer la période pendant laquelle les intéressés ont cohabité; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 10 Judges Act Amendments to the Act Sections 226-230 (4) Paragraph 52.22(r) of the French version of the Act is replaced by the following: r) régir, pour l’application du paragraphe 52.15(2), la portion d’une pension attribuée pour une période visée par le partage; Transitional Provision Tenure extension 227 Despite subsection 26.1(3) of the Judges Act, the term of office of the three members appointed under section 26.1 of that Act to the Judicial Compensation and Benefits Commission that began its inquiry on October 1, 2015 is extended to May 31, 2020. Coming into Force Order in council 228 (1) Subject to subsection (2), the provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council. April 1, 2016 (2) Sections 220 and 221 are deemed to have come into force on April 1, 2016. DIVISION 11 Support for Families: Benefits and Leaves 1996, c. 23 Employment Insurance Act Amendments to the Act 229 The definition special benefits in subsection 2(1) of the Employment Insurance Act is replaced by the following: special benefits means benefits paid for any reason mentioned in subsection 12(3) or 152.14(1); (prestations spéciales) 230 (1) The portion of subsection 10(5.2) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 230 Exception (5.2) A claim for benefits referred to in section 23.2 with respect to a critically ill child must not be regarded as having been made on an earlier day under subsection (4) or (5) if (2) Paragraph 10(5.2)(b) of the Act is replaced by the following: (b) the beginning of the period referred to in subsection 23.2(3) has already been determined with respect to that child and the claim would have the effect of moving the beginning of that period to an earlier date; or (3) Section 10 of the Act is amended by adding the following after subsection (5.2): Exception (5.3) A claim for benefits referred to in section 23.3 with respect to a critically ill adult must not be regarded as having been made on an earlier day under subsection (4) or (5) if (a) at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted; (b) the beginning of the period referred to in subsection 23.3(3) has already been determined with respect to that adult and the claim would have the effect of moving the beginning of that period to an earlier date; or (c) the claim is made in any other circumstances set out in the regulations. (4) Paragraph 10(13)(b) of the Act is replaced by the following: (b) benefits were paid to the claimant for more than one of the reasons mentioned in paragraphs 12(3)(a) to (f) and at least one of those benefits was paid for fewer than the applicable maximum number of weeks established for those reasons, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 230 (5) Section 10 of the Act is amended by adding the following after subsection (13): Extension of benefit period — reason mentioned in paragraph 12(3)(b) (13.01) The benefit period is extended by 26 weeks so that benefits may be paid for the reason mentioned in paragraph 12(3)(b) up to the maximum number of weeks if, during a claimant’s benefit period, (a) benefits were paid to the claimant for that reason and the applicable maximum number of weeks is established in subparagraph 12(3)(b)(ii); (b) regular benefits were not paid to the claimant; and (c) benefits were not paid for any reason mentioned in paragraph 12(3)(a), (c), (d), (e) or (f). Extension of benefit period — regular and special benefits (13.02) If, during a claimant’s benefit period, regular benefits were paid, benefits were paid for the reason mentioned in paragraph 12(3)(b) in the case where the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii), and benefits were paid for fewer than the total number of weeks established under subsection 12(6) as determined under subsection 12(7), the benefit period is extended so that benefits may be paid up to that total number of weeks. The extension must not exceed 26 weeks. Limitation (13.03) Only the regular benefits and benefits for any of the reasons mentioned in paragraphs 12(3)(a) to (f) that were paid during the claimant’s benefit period before it was extended under subsection (13.02) are payable during that extension. (6) Subsection 10(14) of the Act is replaced by the following: Maximum extension under subsections (10) to (13.02) (14) An extension under one or more of subsections (10) to (13.02) must not result in a benefit period of more than 104 weeks. (7) Subsection 10(15) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 230-231 Maximum extension under subsection (13) (15) Subject to subsection (14), unless the benefit period is also extended under any of subsections (10) to (12.1), an extension under subsection (13) must not result in a benefit period of more than the sum of two weeks and the total of the maximum number of weeks established under subsection 12(3) for each of the benefits paid to the claimant for one of the reasons mentioned in paragraphs 12(3)(a) to (f) during the claimant’s benefit period before it was extended under subsection (13). 231 (1) Paragraph 12(3)(b) of the Act is replaced by the following: (b) because the claimant is caring for one or more new-born children of the claimant or one or more children placed with the claimant for the purpose of adoption is, in accordance with the election under section 23, (i) 35, or (ii) 61; (2) Subsection 12(3) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) because the claimant is providing care or support to one or more critically ill adults described in subsection 23.3(1) is 15. (3) Paragraph 12(4)(b) of the Act is replaced by the following: (b) for the care of one or more new-born or adopted children as a result of a single pregnancy or placement is, in accordance with the election under section 23, 35 or 61. (4) Subsection 12(4.01) of the Act is replaced by the following: Maximum — parental benefits (4.01) If a claim is made under this Part in respect of a child or children referred to in paragraph (4)(b) and a claim is made under section 152.05 in respect of the same child or children, the maximum number of weeks of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 231-232 benefits payable under this Act in respect of the child or children is, in accordance with the election under section 23, 35 or 61. (5) Subsection 12(4.5) of the Act is replaced by the following: Maximum — critically ill adult (4.5) Even if more than one claim is made under this Act, at least one of which is made under section 23.3 — or even if more than one certificate is issued for the purposes of this Act, at least one of which is issued for the purposes of section 23.3 — for the same reason and in respect of the same critically ill adult, the maximum number of weeks of benefits payable under this Act in respect of that adult is 15 weeks during the period of 52 weeks that begins on the first day of the week referred to in paragraph 23.3(3)(a). (6) Section 12 of the Act is amended by adding the following after subsection (6): Determination — total number of weeks (7) For the purpose of determining whether the total number of weeks of benefits established under subsection (6) has been reached, in the case where benefits have been paid for the reason mentioned in paragraph 12(3)(b) and the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii), (a) the number of weeks of benefits that were paid for the reason mentioned in paragraph 12(3)(b) is converted to the number of weeks of benefits that would have been paid at a rate of weekly benefits of 55%, as set out in the table in Schedule IV; and (b) other than the weeks referred to in subsections 10(10) to (12.1) in respect of which the benefit period is extended and the week referred to in section 13, the weeks for which no benefits were paid are deemed to be weeks for which benefits were paid at a rate of weekly benefits of 55%. 232 Subsection 14(1) of the Act is replaced by the following: Rate of weekly benefits 14 (1) The rate of weekly benefits payable to a claimant is 55% of their weekly insurable earnings, or 33% of their 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 232-235 weekly insurable earnings for the weeks for which the claimant is paid benefits under section 23 in the case where the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii). 233 Subsection 18(2) of the Act is replaced by the following: Exception (2) A claimant to whom benefits are payable under any of sections 23 to 23.3 is not disentitled under paragraph (1)(b) for failing to prove that he or she would have been available for work were it not for the illness, injury or quarantine. 234 Subparagraph 22(2)(a)(i) of the Act is replaced by the following: (i) 12 weeks before the week in which her confinement is expected, and 235 (1) Section 23 of the Act is amended by adding the following after subsection (1): Election by claimant (1.1) In a claim for benefits made under this section, a claimant shall elect the maximum number of weeks referred to in either subparagraph 12(3)(b)(i) or (ii) for which benefits may be paid. Irrevocability of election (1.2) The election is irrevocable once benefits are paid under this section or under section 152.05 in respect of the same child or children. First to elect (1.3) If two major attachment claimants each make a claim for benefits under this section — or one major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05 — in respect of the same child or children, the election made under subsection (1.1) or 152.05(1.1) by the first claimant or individual, as the case may be, to make a claim for benefits under this section or under section 152.05 is binding on both claimants or on the claimant and the individual. (2) Subsection 23(3.2) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 235 Extension of period — special benefits (3.2) The period referred to in subsection (2) is extended so that benefits may be paid up to the applicable maximum number of weeks referred to in subparagraph 12(3)(b)(i) or (ii) if, during a claimant’s benefit period, (a) regular benefits were not paid to the claimant; (b) benefits were paid to the claimant for more than one of the reasons mentioned in paragraphs 12(3)(a) to (f); (c) the maximum total number of weeks established for those reasons is greater than 50; and (d) benefits were paid for the reason mentioned in paragraph 12(3)(b) but for fewer than the applicable maximum number of weeks established for that reason. Extension of period — reason mentioned in paragraph 12(3)(b) (3.21) The period referred to in subsection (2) is extended by 26 weeks so that benefits may be paid for the reason mentioned in paragraph 12(3)(b) up to the maximum number of weeks if, during a claimant’s benefit period, (a) benefits were paid to the claimant for that reason and the applicable maximum number of weeks is established in subparagraph 12(3)(b)(ii); (b) regular benefits were not paid to the claimant; and (c) benefits were not paid for any reason mentioned in paragraph 12(3)(a), (c), (d), (e) or (f). Extension of period — regular and special benefits (3.22) If, during a claimant’s benefit period, regular benefits were paid, benefits were paid for the reason mentioned in paragraph 12(3)(b) in the case where the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii), and benefits were paid for fewer than the total number of weeks established under subsection 12(6) as determined under subsection 12(7), the period referred to in subsection (2) is extended for the same number of weeks as the extension established under subsection 10(13.02). (3) Subsection 23(3.4) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 235-236 Limitation (3.4) An extension under one or more of subsections 10(10) to (13.02) must not result in the period referred to in subsection (2) being longer than 104 weeks. (4) Subsections 23(4) and (4.1) of the Act are replaced by the following: Division of weeks of benefits (4) If two major attachment claimants each make a claim for benefits under this section — or if one major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05 — in respect of the same child or children, weeks of benefits payable under this section, under section 152.05 or under both those sections may be divided between them up to a maximum of 35, if the applicable maximum number of weeks is established under subparagraph 12(3)(b)(i) or 152.14(1)(b)(i), or up to a maximum of 61, if that number of weeks is established under subparagraph 12(3)(b)(ii) or 152.14(1)(b)(ii). If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Maximum number of weeks that can be divided (4.1) For greater certainty, if, in respect of the same child, a major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05, the total number of weeks of benefits payable under this section and section 152.05 that may be divided between them may not exceed 35, if the applicable maximum number of weeks is established under subparagraph 12(3)(b)(i) or 152.14(1)(b)(i), or may not exceed 61, if that number of weeks is established under subparagraph 12(3)(b)(ii) or 152.14(1)(b)(ii). 236 (1) Subsection 23.1(1) of the Act is repealed. (2) The portion of subsection 23.1(2) of the Act before paragraph (a) is replaced by the following: Compassionate care benefits (2) Despite section 18, but subject to this section, benefits are payable to a major attachment claimant if a medical doctor or nurse practitioner has issued a certificate stating that 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 236-237 (3) Subparagraph 23.1(2)(a)(ii) of the Act is replaced by the following: (ii) in the case of a claim that is made before the day on which the certificate is issued, from the day from which the medical doctor or nurse practitioner certifies the family member’s medical condition, or (4) Subparagraph 23.1(4)(a)(ii) of the Act is replaced by the following: (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies the family member’s medical condition, or (5) Subsection 23.1(4.1) of the English version of the Act is replaced by the following: Certificate not necessary (4.1) For greater certainty, but subject to subsections (4) and 50(8.1), for benefits under this section to be payable after the end of the period of 26 weeks set out in paragraph (2)(a), it is not necessary for a medical doctor or nurse practitioner to issue an additional certificate under subsection (2). 237 (1) The portion of subsection 23.2(1) of the Act before paragraph (b) is replaced by the following: Benefits — critically ill child 23.2 (1) Despite section 18, but subject to this section, benefits are payable to a major attachment claimant who is a family member of a critically ill child in order to care for or support that child, if a medical doctor or nurse practitioner has issued a certificate that (a) states that the child is a critically ill child and requires the care or support of one or more of their family members; and (2) The portion of subsection 23.2(3) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 237 Weeks for which benefits may be paid (3) Subject to section 12, benefits under this section are payable for each week of unemployment in the period (3) Subparagraph 23.2(3)(a)(ii) of the Act is replaced by the following: (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies that the child is critically ill; and (4) Subsection 23.2(4) of the Act is repealed. (5) The portion of subsection 23.2(5) of the Act before paragraph (a) is replaced by the following: Exception (5) Subparagraph (3)(a)(ii) does not apply to a claim if (6) Paragraph 23.2(5)(b) of the Act is replaced by the following: (b) the beginning of the period referred to in subsection (3) has already been determined and the filing of the certificate with the Commission would have the effect of moving the beginning of that period to an earlier date; or (7) The portion of subsection 23.2(6) of the Act before paragraph (a) is replaced by the following: Deferral of waiting period (6) A claimant who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period if (8) Subsections 23.2(7) to (10) of the Act are replaced by the following: Division of weeks of benefits (8) If a claimant makes a claim for benefits under this section and another claimant makes a claim for benefits under this section or section 152.061 in respect of the same child, any remaining weeks of benefits payable under this section, under section 152.061 or under both those sections, up to a maximum of 35 weeks, may be divided in the manner agreed to by those claimants. If they 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 237-238 cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Maximum divisible number of weeks (9) For greater certainty, if, in respect of the same child, a claimant makes a claim for benefits under this section and another claimant makes a claim for benefits under section 152.061, the total number of weeks of benefits payable under this section and section 152.061 that may be divided between them must not exceed 35 weeks. Limitation — compassionate care benefits (10) Benefits under section 23.1 or 152.06 are not payable in respect of a child during the period referred to in subsection (3) or 152.061(3) that is established in respect of that child. Limitation — benefits for critically ill adult (10.1) Benefits under section 23.3 or 152.062 are not payable during the period of 52 weeks that begins on the first day of the week referred to in paragraph (3)(a) in respect of a person who was a critically ill child if benefits were paid in respect of that person under this section. 238 The Act is amended by adding the following after section 23.2: Benefits — critically ill adult 23.3 (1) Despite section 18, but subject to this section, benefits are payable to a major attachment claimant who is a family member of a critically ill adult, in order to care for or support that adult, if a medical doctor or nurse practitioner has issued a certificate that (a) states that the adult is a critically ill adult and requires the care or support of one or more of their family members; and (b) sets out the period during which the adult requires that care or support. Medical practitioner (2) In the circumstances set out in the regulations, the certificate referred to in subsection (1) may be issued by a member of a prescribed class of medical practitioners. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 238 Weeks for which benefits may be paid (3) Subject to section 12, benefits under this section are payable for each week of unemployment in the period (a) that begins on the first day of the week in which either of the following falls: (i) the day on which the first certificate is issued in respect of the adult that meets the requirements of subsection (1) and is filed with the Commission, or (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies that the adult is critically ill; and (b) that ends on the last day of the week in which any of the following occurs: (i) all benefits payable under this section in respect of the adult are exhausted, (ii) the adult dies, or (iii) the expiry of the 52 weeks following the first day of the week referred to in paragraph (a). Exception (4) Subparagraph (3)(a)(ii) does not apply to a claim if (a) at the time the certificate is filed with the Commission, all benefits that may otherwise have been payable in relation to that claim have already been exhausted; (b) the beginning of the period referred to in subsection (3) has already been determined and the filing of the certificate with the Commission would have the effect of moving the beginning of that period to an earlier date; or (c) the claim is made in any other circumstances set out in the regulations. Deferral of waiting period (5) A claimant who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period if 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 238 (a) another claimant has made a claim for benefits under this section or section 152.062 in respect of the same adult during the period described in subsection (3) and that other claimant has served or is serving their waiting period in respect of that claim; (b) another claimant is making a claim for benefits under this section or section 152.062 in respect of the same adult at the same time as the claimant and that other claimant elects to serve their waiting period; or (c) the claimant, or another claimant who has made a claim for benefits under this section or section 152.062 in respect of the same adult, meets the prescribed requirements. Division of weeks of benefits (6) If a claimant makes a claim for benefits under this section and another claimant makes a claim for benefits under this section or section 152.062 in respect of the same adult, any remaining weeks of benefits payable under this section, under section 152.062 or under both those sections, up to a maximum of 15 weeks, may be divided in the manner agreed to by those claimants. If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Maximum divisible number of weeks (7) For greater certainty, if, in respect of the same adult, a claimant makes a claim for benefits under this section and another claimant makes a claim for benefits under section 152.062, the total number of weeks of benefits payable under this section and section 152.062 that may be divided between them must not exceed 15 weeks. Limitation — compassionate care benefits (8) Benefits under section 23.1 or 152.06 are not payable in respect of an adult during the period referred to in subsection (3) or 152.062(3) that is established in respect of that adult. Limitation (9) When benefits are payable to a claimant for the reasons set out in this section and any allowances, money or other benefits are payable to the claimant under a provincial law for the same or substantially the same reasons, the benefits payable to the claimant under this section shall be reduced or eliminated as prescribed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 238-241 239 Subsection 50(8.1) of the Act is replaced by the following: Proof — additional certificate (8.1) For the purpose of proving that the conditions of subsection 23.1(2) or 152.06(1) are met, the Commission may require the claimant to provide it with an additional certificate issued by a medical doctor or nurse practitioner. 240 (1) Paragraph 54(c.2) of the Act is replaced by the following: (c.2) setting out circumstances for the purposes of paragraphs 10(5.1)(c), 10(5.2)(c), 10(5.3)(c), 23.1(6)(c), 23.2(5)(c), 23.3(4)(c), 152.06(5)(c), 152.061(5)(c), 152.062(4)(c), 152.11(6)(c), 152.11(6.1)(c) and 152.11(6.2)(c); (2) Paragraphs 54(f.2) to (f.4) of the Act are replaced by the following: (f.21) defining or determining what is a medical doctor, a nurse practitioner, a family member, a critically ill child and a critically ill adult for the purposes of subsections 23.1(2), 23.2(1), 23.3(1), 152.06(1), 152.061(1) and 152.062(1); (f.3) defining or determining what is care or support for the purposes of paragraphs 23.1(2)(b), 23.2(1)(a), 23.3(1)(a), 152.06(1)(b), 152.061(1)(a) and 152.062(1)(a); (f.4) prescribing classes of medical practitioners for the purposes of subsections 23.1(3), 23.2(2), 23.3(2), 152.06(2), 152.061(2) and 152.062(2) and setting out the circumstances in which a certificate may be issued by them under subsection 23.1(2), 23.2(1), 23.3(1), 152.06(1), 152.061(1) or 152.062(1); (3) Paragraphs 54(f.6) and (f.7) of the Act are replaced by the following: (f.6) prescribing requirements for the purposes of paragraphs 23.1(7)(c), 23.2(6)(c), 23.3(5)(c), 152.06(6)(c), 152.061(6)(c) and 152.062(5)(c); (f.7) prescribing rules for the purposes of subsections 23(4), 23.1(9), 23.2(8), 23.3(6), 152.05(12), 152.06(7), 152.061(8) and 152.062(6); 241 (1) Paragraph 69(1)(a) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 241-243 (a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care, compassionate care, a child’s critical illness or an adult’s critical illness under a plan that covers insured persons employed by the employer, other than one established under a provincial law, would have the effect of reducing the special benefits payable to the insured persons; and (2) Subsection 69(2) of the Act is replaced by the following: Provincial plans (2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer’s and employee’s premiums, the premiums under Part VII.1 or all those premiums, when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care, compassionate care, a child’s critical illness or an adult’s critical illness under a provincial law to insured persons, or to self-employed persons, as the case may be, would have the effect of reducing or eliminating the special benefits payable to those insured persons or the benefits payable to those self-employed persons. (3) Section 69 of the Act is amended by adding the following after subsection (7): Reference (8) The reference to the payment of allowances, money or other benefits because of an adult’s critical illness in subsections (1) and (2) means the payment of allowances, money or other benefits for the same or substantially the same reasons for which benefits are payable under section 23.3. 242 The definition family member in subsection 152.01(1) of the Act is repealed. 243 Subsection 152.03(1.1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 243-245 Exception (1.1) A self-employed person to whom benefits are payable under any of sections 152.05 to 152.062 is entitled to benefits under subsection (1) even though the person did not cease to work as a self-employed person because of a prescribed illness, injury or quarantine and would not be working even without the illness, injury or quarantine. 244 (1) Subparagraph 152.04(2)(a)(i) of the Act is replaced by the following: (i) 12 weeks before the week in which her confinement is expected, and (2) Section 152.04 of the Act is amended by adding the following after subsection (3): Presumption (3.1) With regard to serving the waiting period under section 152.15, the week that immediately precedes the period described in subsection (2) is deemed to be a week that is included in that period. 245 (1) Section 152.05 of the Act is amended by adding the following after subsection (1): Election by self-employed person (1.1) In a claim for benefits made under this section, a self-employed person shall elect the maximum number of weeks referred to in either subparagraph 152.14(1)(b)(i) or (ii) for which benefits may be paid. Irrevocability of election (1.2) The election is irrevocable once benefits are paid under this section or under section 23 in respect of the same child or children. First to elect (1.3) If two self-employed persons each make a claim for benefits under this section — or if one self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23 — in respect of the same child or children, the election made under subsection (1.1) or subsection 23(1.1) by the first person to make a claim for benefits under this section or under section 23 is binding on both persons. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 245 (2) Subsection 152.05(5) of the Act is replaced by the following: Extension of period (5) If, during a self-employed person’s benefit period, benefits were paid to the person for more than one of the reasons mentioned in paragraphs 152.14(1)(a) to (f), the maximum total number of weeks established for those reasons is greater than 50, and benefits were paid for the reason mentioned in paragraph 152.14(1)(b) but for fewer than the applicable maximum number of weeks established for that reason, the period referred to in subsection (2) is extended so that benefits may be paid up to the applicable maximum number of weeks referred to in subparagraph 152.14(1)(b)(i) or (ii). Extension of period — reason mentioned in paragraph 152.14(1)(b) (5.1) If, during a self-employed person’s benefit period, benefits were not paid for any reason mentioned in paragraph 152.14(1)(a), (c), (d), (e) or (f) and benefits were paid to the person for the reason mentioned in paragraph 152.14(1)(b) in the case where the applicable maximum number of weeks is established under subparagraph 152.14(1)(b)(ii), the period referred to in subsection (2) is extended by 26 weeks so that benefits may be paid up to that maximum number of weeks. (3) Subsection 152.05(7) of the Act is replaced by the following: Limitation (7) An extension under one or more of subsections 152.11(11) to (14.1) must not result in the period referred to in subsection (2) being longer than 104 weeks. (4) Subsections 152.05(12) and (13) of the Act are replaced by the following: Division of weeks of benefits (12) If two self-employed persons each make a claim for benefits under this section — or if one self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23 — in respect of the same child or children, the weeks of benefits payable under this section, under section 23 or under both those sections may be divided between them up to a maximum of 35, if the applicable maximum number of weeks is established under subparagraph 152.14(1)(b)(i) or 12(3)(b)(i), or up to a maximum of 61, if that number of weeks is established under subparagraph 152.14(1)(b)(ii) or 12(3)(b)(ii). If they cannot agree, the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 245-246 weeks of benefits are to be divided in accordance with the prescribed rules. Maximum number of weeks that can be divided (13) For greater certainty, if, in respect of the same child or children, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23, the total number of weeks of benefits payable under this section and section 23 that may be divided between them may not exceed 35, if the applicable maximum number of weeks is established under subparagraph 152.14(1)(b)(i) or 12(3)(b)(i), or may not exceed 61, if that number of weeks is established under subparagraph 152.14(1)(b)(ii) or 12(3)(b)(ii). 246 (1) The portion of subsection 152.06(1) of the Act before paragraph (a) is replaced by the following: Compassionate care benefits 152.06 (1) Subject to this Part, benefits are payable to a self-employed person if a medical doctor or nurse practitioner has issued a certificate stating that (2) Subparagraph 152.06(1)(a)(ii) of the Act is replaced by the following: (ii) in the case of a claim that is made before the day on which the certificate is issued, from the day from which the medical doctor or nurse practitioner certifies the family member’s medical condition; and (3) Subparagraph 152.06(3)(a)(ii) of the Act is replaced by the following: (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies the family member’s medical condition; and (4) Subsection 152.06(3.1) of the English version of the Act is replaced by the following: Certificate not necessary (3.1) For greater certainty, but subject to subsections (3) and 50(8.1), for benefits under this section to be payable 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 246-247 after the end of the period of 26 weeks set out in paragraph (1)(a), it is not necessary for a medical doctor or nurse practitioner to issue an additional certificate under subsection (1). 247 (1) The portion of subsection 152.061(1) of the Act before paragraph (b) is replaced by the following: Benefits — critically ill child 152.061 (1) Subject to this Part, benefits are payable to a self-employed person who is a family member of a critically ill child, in order to care for or support that child, if a medical doctor or nurse practitioner has issued a certificate that (a) states that the child is a critically ill child and requires the care or support of one or more of their family members; and (2) The portion of subsection 152.061(3) of the Act before paragraph (a) is replaced by the following: Weeks for which benefits may be paid (3) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (3) Subparagraph 152.061(3)(a)(ii) of the Act is replaced by the following: (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies that the child is critically ill; and (4) Subsection 152.061(4) of the Act is repealed. (5) The portion of subsection 152.061(5) of the Act before paragraph (a) is replaced by the following: Exception (5) Subparagraph (3)(a)(ii) does not apply to a claim if (6) Paragraph 152.061(5)(b) of the Act is replaced by the following: (b) the beginning of the period referred to in subsection (3) has already been determined and the filing of the certificate with the Commission would have the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 247 effect of moving the beginning of that period to an earlier date; or (7) The portion of subsection 152.061(6) of the Act before paragraph (a) is replaced by the following: Deferral of waiting period (6) A self-employed person who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period if (8) Subsections 152.061(7) to (10) of the Act are replaced by the following: Division of weeks of benefits (8) If a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under this section or section 23.2 in respect of the same child, any remaining weeks of benefits payable under this section, under section 23.2 or under both those sections, up to a maximum of 35 weeks, may be divided in the manner agreed to by the self-employed person and the other person. If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Maximum divisible number of weeks (9) For greater certainty, if, in respect of the same child, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23.2, the total number of weeks of benefits payable under this section and section 23.2 that may be divided between them must not exceed 35 weeks. Limitation — compassionate care benefits (10) Benefits under section 23.1 or 152.06 are not payable in respect of a child during the period referred to in subsection (3) or 23.2(3) that is established in respect of that child. Limitation — benefits for critically ill adult (10.1) Benefits under section 23.3 or 152.062 are not payable during the period of 52 weeks that begins on the first day of the week referred to in paragraph (3)(a) in 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 247-248 respect of a person who was a critically ill child if benefits were paid in respect of that person under this section. 248 The Act is amended by adding the following after section 152.061: Benefits — critically ill adult 152.062 (1) Subject to this Part, benefits are payable to a self-employed person who is a family member of a critically ill adult, in order to care for or support that adult, if a medical doctor or nurse practitioner has issued a certificate that (a) states that the adult is a critically ill adult and requires the care or support of one or more of their family members; and (b) sets out the period during which the adult requires that care or support. Medical practitioner (2) In the circumstances set out in the regulations, the certificate referred to in subsection (1) may be issued by a member of a prescribed class of medical practitioners. Weeks for which benefits may be paid (3) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (a) that begins on the first day of the week in which either of the following falls: (i) the day on which the first certificate is issued in respect of the adult that meets the requirements of subsection (1) and is filed with the Commission, or (ii) in the case of a claim that is made before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies that the adult is critically ill; and (b) that ends on the last day of the week in which any of the following occurs: (i) all benefits payable under this section in respect of the adult are exhausted, (ii) the adult dies, or (iii) the expiry of the 52 weeks following the first day of the week referred to in paragraph (a). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 248 Exception (4) Subparagraph (3)(a)(ii) does not apply to a claim if (a) at the time the certificate is filed with the Commission, all benefits that may otherwise have been payable in relation to that claim have already been exhausted; (b) the beginning of the period referred to in subsection (3) has already been determined and the filing of the certificate with the Commission would have the effect of moving the beginning of that period to an earlier date; or (c) the claim is made in any other circumstances set out in the regulations. Deferral of waiting period (5) A self-employed person who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period if (a) another claimant has made a claim for benefits under this section or section 23.3 in respect of the same adult during the period described in subsection (3) and that other claimant has served or is serving their waiting period in respect of that claim; (b) another claimant is making a claim for benefits under this section or section 23.3 in respect of the same adult at the same time as the claimant and that other claimant elects to serve their waiting period; or (c) the self-employed person, or another claimant who has made a claim for benefits under this section or section 23.3 in respect of the same adult, meets the prescribed requirements. Division of weeks of benefits (6) If a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under this section or section 23.3 in respect of the same adult, any remaining weeks of benefits payable under this section, under section 23.3 or under both those sections, up to a maximum of 15 weeks, may be divided in the manner agreed to by the self-employed person and the other person. If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 248-250 Maximum divisible number of weeks (7) For greater certainty, if, in respect of the same adult, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23.3, the total number of weeks of benefits payable under this section and section 23.3 that may be divided between them must not exceed 15 weeks. Limitation — compassionate care benefits (8) Benefits under section 23.1 or 152.06 are not payable in respect of an adult during the period referred to in subsection (3) or 23.3(3) that is established in respect of that adult. Limitation (9) When benefits are payable to a self-employed person for the reasons set out in this section and any allowances, money or other benefits are payable to the person under a provincial law for the same or substantially the same reasons, the benefits payable to the person under this section shall be reduced or eliminated as prescribed. 249 Subsection 152.09(2) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) providing care or support to one or more critically ill children; and (f) providing care or support to one or more critically ill adults. 250 (1) The portion of subsection 152.11(6.1) of the Act before paragraph (a) is replaced by the following: Exception (6.1) A claim for benefits referred to in section 152.061 with respect to a critically ill child must not be regarded as having been made on an earlier day under subsection (4) or (5) if (2) Paragraph 152.11(6.1)(b) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Section 250 (b) the beginning of the period referred to in subsection 152.061(3) has already been determined with respect to that child and the claim would have the effect of moving the beginning of that period to an earlier date; or (3) Section 152.11 of the Act is amended by adding the following after subsection (6.1): Exception (6.2) A claim for benefits referred to in section 152.062 with respect to a critically ill adult must not be regarded as having been made on an earlier day under subsection (4) or (5) if (a) at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted; (b) the beginning of the period referred to in subsection 152.062(3) has already been determined with respect to that adult and the claim would have the effect of moving the beginning of that period to an earlier date; or (c) the claim is made in any other circumstances set out in the regulations. (4) Subsections 152.11(14) to (16) of the Act are replaced by the following: Extension of benefit period (14) If, during a self-employed person’s benefit period, benefits were paid to the person for more than one of the reasons mentioned in paragraphs 152.14(1)(a) to (f), at least one of those benefits was paid for fewer than the applicable maximum number of weeks established for those reasons and the maximum total number of weeks established for those reasons is greater than 50, the benefit period is extended so that those benefits may be paid up to that maximum total number of weeks. Extension of benefit period — reason mentioned in paragraph 152.14(1)(b) (14.1) If, during a self-employed person’s benefit period, benefits were not paid for any reason mentioned in paragraph 152.14(1)(a), (c), (d), (e) or (f), and benefits were paid to the person for the reason mentioned in paragraph 152.14(1)(b) in the case where the applicable maximum number of weeks is established under subparagraph 152.14(1)(b)(ii), the benefit period is extended by 26 weeks so that benefits may be paid up to that maximum number of weeks. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 250-251 Maximum extension under subsections (11) to (14.1) (15) An extension under one or more of subsections (11) to (14.1) must not result in a benefit period of more than 104 weeks. Maximum extension under subsection (14) (16) Subject to subsection (15), unless the benefit period is also extended under any of subsections (11) to (13), an extension under subsection (14) must not result in a benefit period of more than the sum of two weeks and the total of the maximum number of weeks established under subsection 152.14(1) for each of the benefits paid to the self-employed person for one of the reasons mentioned in paragraphs 152.14(1)(a) to (f) during the person’s benefit period before it was extended under subsection (14). 251 (1) Paragraph 152.14(1)(b) of the Act is replaced by the following: (b) because the self-employed person is caring for one or more new-born children of the self-employed person, or one or more children placed with the self-employed person for the purpose of adoption is, in accordance with the election under section 152.05, (i) 35, or (ii) 61; (2) Subsection 152.14(1) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) because the self-employed person is providing care or support to one or more critically ill adults described in subsection 152.062(1) is 15. (3) Paragraph 152.14(2)(b) of the Act is replaced by the following: (b) for the care of one or more new-born or adopted children as a result of a single pregnancy or placement is, in accordance with the election under section 152.05, 35 or 61. (4) Subsection 152.14(4) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 251-254 Maximum — parental benefits (4) If a claim is made under this Part in respect of a child or children referred to in paragraph (2)(b) and a claim is made under section 23 in respect of the same child or children, the maximum number of weeks of benefits payable under this Act in respect of the child or children is, in accordance with the election under section 152.05, 35 or 61. (5) Subsection 152.14(5.2) of the Act is replaced by the following: Maximum — critically ill adult (5.2) Even if more than one claim is made under this Act, at least one of which is made under section 152.062 — or even if more than one certificate is issued for the purposes of this Act, at least one of which is issued for the purposes of section 152.062 — for the same reason and in respect of the same critically ill adult, the maximum number of weeks of benefits payable under this Act in respect of that adult is 15 weeks during the period of 52 weeks that begins on the first day of the week referred to in paragraph 152.062(3)(a). 252 The portion of subsection 152.16(1) of the Act before paragraph (a) is replaced by the following: Rate of weekly benefits 152.16 (1) The rate of weekly benefits payable to a selfemployed person is 55% — or 33% for the weeks for which the self-employed person is paid benefits under section 152.05 in the case where the applicable maximum number of weeks is established in subparagraph 152.14(1)(b)(ii) — of the result obtained by dividing the aggregate of the amounts referred to in the following paragraphs (a) and (b) by 52: 253 The Act is amended by adding, after Schedule III, the Schedule IV set out in Schedule 2 to this Act. Transitional Provisions Birth or placement for adoption 254 The Employment Insurance Act, as it read immediately before the day on which sections 235 and 245 come into force, continues to apply to a claimant for the purpose of paying benefits under section 23 or 152.05 of that Act in respect of a child or children who are, before that day, born 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 254-257 or placed with the claimant for the purpose of adoption. Critically ill child 255 The Employment Insurance Act, as it read immediately before the day on which sections 237 and 247 come into force, continues to apply to a claimant for the purpose of paying benefits under section 23.2 or 152.061 of that Act if the period referred to in subsection 23.2(3) or 152.061(3), as the case may be, of that Act begins before that day. Critically ill adult 256 Sections 23.3 and 152.062 of the Employment Insurance Act, as enacted by sections 238 and 248, respectively, apply to a claimant for any benefit period (a) that begins on or after the day on which sections 238 and 248 come into force; or (b) that has not ended before that day, but only for weeks of benefits that begin on or after that day. Coordinating Amendments 2000, c. 12 257 (1) In this section, other Act means the Modernization of Benefits and Obligations Act. (2) If subsection 235(1) of this Act comes into force before subsection 107(1) of the other Act, then that subsection 107(1) is replaced by the following: 107 (1) Subsection 23(1) of the Act is replaced by the following: Parental benefits 23 (1) Despite section 18, but subject to this section, benefits are payable to a major attachment claimant to care for (a) one or more new-born children of the claimant; (b) one or more children placed with the claimant for the purpose of adoption under the laws governing adoption in the province in which the claimant resides; or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 257-258 (c) one or more children if the claimant meets the requirements set out in the regulations made under paragraph 54(f.1). (1.1) Subsection 23(2) of the Act is replaced by the following: Weeks for which benefits may be paid (2) Subject to section 12, benefits under this section are payable for each week of unemployment in the period that begins with the week in which (a) the child or children of the claimant are born, (b) the child or children are actually placed with the claimant for the purpose of adoption, or (c) the claimant first meets the requirements set out in the regulations made under paragraph 54(f.1) and ends 52 weeks after that week. (3) If subsection 107(1) of the other Act comes into force on the same day as subsection 235(1) of this Act, then that subsection 107(1) is deemed to have come into force before that subsection 235(1). 2009, c. 33 258 (1) In this section, other Act means the Fairness for the Self-Employed Act. (2) If subsection 245(1) of this Act comes into force before paragraph 36(b) of the other Act produces its effects, then that paragraph 36(b) is replaced by the following: (b) subsection 152.05(1) of the Employment Insurance Act is replaced by the following: Parental benefits 152.05 (1) Subject to this Part, benefits are payable to a self-employed person to care for (a) one or more new-born children of the person; (b) one or more children placed with the person for the purpose of adoption under the laws governing adoption in the province in which the person resides; or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Employment Insurance Act Sections 258-259 (c) one or more children if the self-employed person meets the requirements set out in the regulations made under paragraph 54(f.1). (c) subsection 152.05(2) of the Employment Insurance Act is replaced by the following: Weeks for which benefits may be paid (2) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (a) that begins with the week in which the child or children of the self-employed person are born and that ends 52 weeks after that week; (b) that begins with the week in which the child or children of the self-employed person are actually placed with the self-employed person for the purpose of adoption and that ends 52 weeks after that week; or (c) that begins with the week in which the self-employed person first meets the requirements set out in the regulations made under paragraph 54(f.1) and ends 52 weeks after that week. (3) If paragraph 36(b) of the other Act produces its effects on the day on which subsection 245(1) of this Act comes into force, then that paragraph 36(b) is deemed to have produced its effects before that subsection 245(1) comes into force. R.S., c. L-2 Canada Labour Code Amendments to the Act 259 Subsection 206(1) of the Canada Labour Code is replaced by the following: Entitlement to leave 206 (1) Every employee is entitled to and shall be granted a leave of absence from employment of up to 17 weeks, which leave may begin not earlier than 13 weeks prior to the estimated date of her confinement and end not later than 17 weeks following the actual date of her confinement, if the employee: (a) has completed six consecutive months of continuous employment with an employer; and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Sections 259-262 (b) provides her employer with a certificate of a qualified medical practitioner certifying that she is pregnant. Extension of period (1.1) If the confinement has not occurred during the 17 weeks of her leave of absence, the leave of absence is extended until the date of her confinement. 260 (1) Subsection 206.1(1) of the Act is replaced by the following: Entitlement to leave 206.1 (1) Subject to subsections (2) and (3), every employee who has completed six consecutive months of continuous employment with an employer is entitled to and shall be granted a leave of absence from employment of up to 63 weeks to care for a new-born child of the employee or a child who is in the care of the employee for the purpose of adoption under the laws governing adoption in the province in which the employee resides. (2) The portion of subsection 206.1(2) of the Act before paragraph (a) is replaced by the following: Period when leave may be taken (2) The leave of absence granted under this section may only be taken during the 78-week period beginning (3) Subsection 206.1(3) of the Act is replaced by the following: Aggregate leave — two employees (3) The aggregate amount of leave that may be taken by two employees under this section in respect of the same birth or adoption shall not exceed 63 weeks. 261 Section 206.2 of the Act is replaced by the following: Aggregate leave — maternity and parental 206.2 The aggregate amount of leave that may be taken by one or two employees under sections 206 and 206.1 in respect of the same birth shall not exceed 78 weeks. 262 (1) Subsection 206.3(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Sections 262-263 Definitions 206.3 (1) For the purposes of this section, care, family member, medical doctor, nurse practitioner and support have, subject to the regulations, the same meanings as in the regulations made under the Employment Insurance Act and week means the period between midnight on Saturday and midnight on the immediately following Saturday. (2) The portion of subsection 206.3(2) of the Act before paragraph (a) is replaced by the following: Entitlement to leave (2) Subject to subsections (3) to (8), every employee is entitled to and shall be granted a leave of absence from employment of up to 28 weeks to provide care or support to a family member of the employee if a medical doctor or nurse practitioner issues a certificate stating that the family member has a serious medical condition with a significant risk of death within 26 weeks from (3) Section 206.3 of the Act is amended by adding the following after subsection (2): Medical practitioner (2.1) In the circumstances set out under the Employment Insurance Act, the certificate referred to in subsection (2) may be issued by a member of a class of medical practitioners that is prescribed under that Act. (4) Subsection 206.3(3.1) of the Act is replaced by the following: Certificate not necessary (3.1) For greater certainty, but subject to subsection (3), for leave under this section to be taken after the end of the period of 26 weeks set out in subsection (2), it is not necessary for a medical doctor or nurse practitioner to issue an additional certificate under that subsection (2). (5) Section 206.3 of the Act is amended by adding the following after subsection (7): Limitation — section 206.4 (7.1) No leave may be taken by one or more employees under subsection 206.4(2) or (2.1) before the end of the leave taken under subsection (2) in respect of the same person. 263 (1) Subsection 206.4(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Section 263 Interpretation 206.4 (1) For the purposes of this section, care, critically ill adult, critically ill child, family member, medical doctor, nurse practitioner and support have, subject to the regulations, the same meanings as in the regulations made under the Employment Insurance Act and week has the same meaning as in subsection 206.3(1). (2) The portion of subsection 206.4(2) of the Act before paragraph (b) is replaced by the following: Leave — 37 weeks (2) Every employee who has completed six consecutive months of continuous employment with an employer and who is a family member of a critically ill child is entitled to and shall be granted a leave of absence from employment of up to 37 weeks in order to care for or support that child if a medical doctor or nurse practitioner has issued a certificate that (a) states that the child is a critically ill child and requires the care or support of one or more of their family members; and (3) Subsection 206.4(3) of the Act is replaced by the following: Leave — 17 weeks (2.1) Every employee who has completed six consecutive months of continuous employment with an employer and who is a family member of a critically ill adult is entitled to and shall be granted a leave of absence from employment of up to 17 weeks in order to care for or support that adult if a medical doctor or nurse practitioner has issued a certificate that (a) states that the adult is a critically ill adult and requires the care or support of one or more of their family members; and (b) sets out the period during which the adult requires that care or support. Medical practitioner (3) In the circumstances set out under the Employment Insurance Act, the certificate referred to in subsection (2) or (2.1) may be issued by a member of a class of medical practitioners that is prescribed under that Act. (4) Subparagraphs 206.4(4)(a)(i) and (ii) of the Act are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Sections 263-264 (i) the day on which the first certificate is issued in respect of the child or adult, as the case may be, that meets the requirements of subsection (2) or (2.1), or (ii) if the leave begins before the day on which the certificate is issued, the day from which the medical doctor or nurse practitioner certifies that the child or adult, as the case may be, is critically ill; and (5) Subparagraph 206.4(4)(b)(i) of the Act is replaced by the following: (i) the child or adult, as the case may be, dies, or (6) Subsections 206.4(5) and (6) of the Act are replaced by the following: Aggregate leave — employees (5) The aggregate amount of leave that may be taken by employees under this section during the period referred to in subsection (4) must not exceed (a) in respect of the same critically ill child, 37 weeks; or (b) in respect of the same critically ill adult, 17 weeks. Limitation (6) No leave may be taken by one or more employees under subsection (2.1) before the end of the period referred to in subsection (4) if leave was granted under subsection (2) in respect of the same person. Limitation — section 206.3 (7) No leave may be taken by one or more employees under section 206.3 before the end of the leave taken under subsection (2) or (2.1) in respect of the same person. 264 (1) Paragraph 207(1)(a) of the Act is replaced by the following: (a) unless there is a valid reason for not doing so, give at least four weeks notice in writing to the employer before the day on which the leave is to begin; and (2) Subsection 207(2) of the Act is replaced by the following: Exception — valid reason (1.1) If there is a valid reason for not providing notice in accordance with paragraph (1)(a), the employee shall 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Sections 264-267 notify the employer in writing as soon as possible that the employee intends to take a leave of absence. Change in length of leave (2) Every employee who intends to take or who is on a leave of absence from employment under section 206 or 206.1 shall provide the employer with notice in writing of at least four weeks of any change in the length of leave intended to be taken, unless there is a valid reason why that notice cannot be given, in which case the employee shall provide the employer with notice in writing as soon as possible. 265 Subsection 207.2(4) of the Act is replaced by the following: Medical certificate (4) The employer may, in writing and no later than 15 days after an employee’s return to work, require the employee to provide a certificate issued by a medical doctor, as defined in subsection 206.3(1), attesting to the child’s hospitalization. 266 (1) Subsection 207.3(3) of the Act is replaced by the following: Notice — leave of more than four weeks (3) If the length of the leave taken under any of sections 206.3 to 206.5 is more than four weeks, the notice in writing of any change in the length of the leave shall be provided on at least four weeks’ notice, unless there is a valid reason why that cannot be done. (2) Subsection 207.3(5) of the Act is replaced by the following: Return to work postponed (5) If an employee who takes a leave of more than four weeks under any of sections 206.3 to 206.5 wishes to shorten the length of the leave but does not provide the employer with four weeks’ notice, the employer may postpone the employee’s return to work for a period of up to four weeks after the day on which the employee informs the employer of the new end date of the leave. If the employer informs the employee that their return to work is postponed, the employee is not entitled to return to work until the day that is indicated by the employer. 267 (1) Paragraph 209.4(a.1) of the Act is repealed. (2) Paragraphs 209.4(d) and (e) of the Act are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Sections 267-268 (d) enlarging the meaning of care and support in subsections 206.3(1) and 206.4(1), and of critically ill adult and critically ill child in subsection 206.4(1); (e) prescribing other persons to be included in the meanings of family member, medical doctor and nurse practitioner in subsections 206.3(1) and 206.4(1); (e.1) adapting the terminology of the definitions of care, critically ill adult, critically ill child, family member, medical doctor, nurse practitioner and support in the regulations made under the Employment Insurance Act for the purposes of the definitions of those terms in subsections 206.3(1) and 206.4(1) of this Act; (3) Paragraph 209.4(g) of the Act is replaced by the following: (g) prescribing shorter periods of consecutive months of continuous employment for the purposes of subsections 206(1), 206.1(1), 206.4(2) and (2.1) and 206.5(2) and (3); Coordinating Amendments 2012, c. 27 268 (1) In this section, other Act means the Helping Families in Need Act. (2) If section 35 of the other Act produces its effects before section 260 of this Act comes into force, then, on the day on which that section 260 comes into force, (a) subsection 206.1(1) of the Canada Labour Code is replaced by the following: Entitlement to leave 206.1 (1) Subject to subsections (2) and (3), every employee who has completed six consecutive months of continuous employment with an employer is entitled to and shall be granted a leave of absence from employment of up to 63 weeks to care for (a) a new-born child of the employee; (b) a child who is in the care of the employee for the purpose of adoption under the laws governing adoption in the province in which the employee resides; or (c) a child with respect to whom the employee meets the requirements of paragraph 23(1)(c) of the Employment Insurance Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Section 268 (b) subsection 206.1(3) of the Canada Labour Code is replaced by the following: Aggregate leave — two employees (3) The aggregate amount of leave that may be taken by two employees under this section in respect of the same event, as described in any of paragraphs (1)(a) to (c), shall not exceed 63 weeks. (3) If section 260 of this Act comes into force before section 35 of the other Act produces its effects, then, on the day on which that section 260 comes into force, (a) that section 35 is replaced by the following: 2000, c. 12 35 On the day on which subsection 107(1) of the Modernization of Benefits and Obligations Act comes into force, (a) subsections 206.1(1) and (2) of the Canada Labour Code are replaced by the following: Entitlement to leave 206.1 (1) Subject to subsections (2) and (3), every employee who has completed six consecutive months of continuous employment with an employer is entitled to and shall be granted a leave of absence from employment of up to 63 weeks to care for (a) a new-born child of the employee; (b) a child who is in the care of the employee for the purpose of adoption under the laws governing adoption in the province in which the employee resides; or (c) a child with respect to whom the employee meets the requirements of paragraph 23(1)(c) of the Employment Insurance Act. Period when leave may be taken (2) The leave of absence granted under this section may only be taken during the 78-week period beginning (a) in the case of a child described in paragraph (1)(a), at the option of the employee, on the day the child is born or comes into the actual care of the employee; (b) in the case of a child described in paragraph (1)(b), on the day the child comes into the actual care of the employee; and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 11 Support for Families: Benefits and Leaves Canada Labour Code Sections 268-271 (c) in the case of a child described in paragraph (1)(c), on the day the requirements referred to in that paragraph are met. (b) subsection 206.1(3) of the Canada Labour Code is replaced by the following: Aggregate leave — two employees (3) The aggregate amount of leave that may be taken by two employees under this section in respect of the same event, as described in any of paragraphs (1)(a) to (c), shall not exceed 63 weeks. (c) section 43 of the Budget Implementation Act, 2000 is repealed. (4) If section 35 of the other Act produces its effects on the day on which section 260 of this Act comes into force, then that section 35 is deemed to have produced its effects before that section 260 comes into force and subsection (2) applies as a consequence. Coming into Force Order in council 269 This Division, other than sections 257, 258 and 268, comes into force on a day to be fixed by order of the Governor in Council, which may not be earlier than July 10, 2017. DIVISION 12 Canadian Forces Members and Veterans 2005, c. 21 Canadian Forces Members and Veterans Re-establishment and Compensation Act 270 Section 1 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act is replaced by the following: Short title 1 This Act may be cited as the Veterans Well-being Act. 271 The definition compensation in subsection 2(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 271-272 compensation means any of the following benefits under this Act, namely, an education and training benefit, an education and training completion bonus, an earnings loss benefit, a supplementary retirement benefit, a Canadian Forces income support benefit, a career impact allowance, a retirement income security benefit, a critical injury benefit, a disability award, a death benefit, a clothing allowance, a detention benefit or a caregiver recognition benefit. (indemnisation) 272 Section 3 of the Act is replaced by the following: Eligibility 3 (1) Subject to this section, the Minister may, on application, provide career transition services to (a) a member who has completed basic training; (b) a veteran who completed basic training and who was released from the Canadian Forces on or after April 1, 2006; (c) a veteran who is entitled to a Canadian Forces income support benefit; (d) a spouse or common-law partner of a veteran who completed basic training and who was released from the Canadian Forces on or after April 1, 2006; (e) a survivor of a member who completed basic training and who died on or after April 1, 2006; (f) a survivor of a veteran who completed basic training and who was released from the Canadian Forces on or after April 1, 2006; and (g) a survivor who is entitled to a Canadian Forces income support benefit. Limitation — member (2) Career transition services may be provided to a member only if the member resides in Canada and the Minister is satisfied that they require assistance in making the transition to the civilian labour force. Limitation — veteran (3) Career transition services may be provided to a veteran only if 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 272-274 (a) the veteran resides in Canada; (b) the Minister is satisfied that the veteran requires assistance in making the transition to the civilian labour force; and (c) the veteran is not receiving rehabilitation services or vocational assistance under Part 2. Limitation — spouse, common-law partner or survivor (4) Career transition services may be provided to a spouse, common-law partner or survivor only if they reside in Canada and are not receiving rehabilitation services or vocational assistance under Part 2. Period — spouse or common-law partner of veteran (5) A spouse or common-law partner of a veteran who completed basic training and who was released from the Canadian Forces on or after April 1, 2006 may receive career transition services until the later of (a) March 31, 2020, and (b) the second anniversary of the day on which the veteran was released. 273 Subsection 4(1) of the Act is replaced by the following: Assessment of needs 4 (1) The Minister shall, on approving an application made under section 3, assess the needs of the member, veteran, spouse, common-law partner or survivor with respect to the career transition services that may be provided to them under this Part. 274 Section 5 of the Act is replaced by the following: Suspend or cancel 5 The Minister may, in the prescribed circumstances, suspend or cancel the provision of career transition services to a person under this Part. Regulations 5.1 The Governor in Council may make regulations (a) respecting the career transition services that may be provided under this Part; and (b) defining residence and defining intervals of absence from Canada that shall be deemed not to have 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Section 274 interrupted residence in Canada for the purposes of subsections 3(2) to (4). PART 1.1 Education and Training Benefit Eligibility — veterans 5.2 (1) The Minister may, on application, pay an education and training benefit to a veteran in accordance with section 5.3 or 5.5 if the veteran (a) served for a total of at least six years in the regular force, in the reserve force or in both; and (b) was honourably released from the Canadian Forces on or after April 1, 2006. Maximum cumulative amount (2) The maximum cumulative amount that the Minister may pay to a veteran is $40,000 or, if the veteran served for a total of at least 12 years in the regular force, in the reserve force or in both, $80,000. Definitions (3) In this section, regular force and reserve force have the same meanings as in subsection 2(1) of the National Defence Act. Course of study at educational institution 5.3 (1) An education and training benefit may be paid to a veteran entitled to a benefit under this Part in respect of (a) education or training received from an educational institution as part of a course of study leading to the completion of a degree, diploma, certification or designation; and (b) any expenses, including living expenses, that may be incurred by the veteran while enrolled at the institution. Request for payment (2) A veteran requesting payment in respect of education or training described in paragraph (1)(a) shall provide the Minister with proof of acceptance, enrolment or registration at the institution for an upcoming period of study and with any prescribed information. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Section 274 Additional information (3) The Minister may request that the veteran provide the Minister with additional information for the purpose of making the determination under subsection (4). Minister’s determination (4) On being provided with the proof and information, the Minister shall, if he or she is satisfied that the requested payment may be made to the veteran, determine (a) the amount of the payment; (b) the period of study to which that amount is allocated; and (c) the day on which the payment is to be made. Payment day (5) The day on which the payment is to be made must be no earlier than the 60th day before (a) the day on which fees for the education or training are due to be paid to the institution in respect of the period of study; or (b) the day on which the period of study begins, if the institution fixes no day on which the fees are due. Education and training completion bonus 5.4 On application, the Minister may pay, over and above an education and training benefit, an education and training completion bonus in the prescribed amount to a veteran who receives a degree, diploma, certification or designation in respect of which they received a payment of an education and training benefit under section 5.3. Other education or training 5.5 (1) An education and training benefit may be paid to a veteran entitled to a benefit under this Part for fees charged by the provider of any education or training, other than education or training described in paragraph 5.3(1)(a), that is approved by the Minister. Maximum cumulative amount (2) The maximum cumulative amount that may be paid to a veteran for such fees is the prescribed amount. Request for payment (3) A veteran requesting payment for such fees shall provide the Minister with a description of the education or training, the amount of the fees, the name of the provider and any prescribed information. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Section 274 Additional information (4) The Minister may request that the veteran provide the Minister with additional information for the purpose of making the determination under subsection (5). Minister’s determination (5) On being provided with the information referred to in subsections (3) and (4), the Minister may approve the education or training and shall, if he or she gives the approval and is satisfied that the requested payment may be made to the veteran, determine (a) the amount of the payment; and (b) the day on which the payment is to be made. Payment day (6) The day on which the payment is to be made must be no earlier than the 60th day before (a) the day on which fees for the education or training are due to be paid to the provider; or (b) the day on which the education or training begins, if the provider fixes no day on which the fees are due. No payment to member 5.6 For greater certainty, the Minister is not permitted to pay an education and training benefit to a person who is a member. No payment — other services or benefit 5.7 The Minister is not permitted to pay an education and training benefit to a veteran if they are being provided with rehabilitation services or vocational assistance under Part 2, or are entitled to a Canadian Forces income support benefit under that Part. Limitation — incarceration 5.8 If a veteran is incarcerated in a correctional institution and is not responsible for paying their living expenses, the Minister may limit the amount of an education and training benefit payable to the veteran to the amount that is, in the Minister’s opinion, required to allow the veteran to participate in the education or training. Duration of benefit 5.9 (1) An education and training benefit ceases to be payable to a veteran on the later of (a) April 1, 2028, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Section 274 (b) the day after the 10th anniversary of the day on which the veteran was last released from the Canadian Forces. Education or training ending after cessation (2) A payment of an education and training benefit that is made before the day on which the benefit ceases to be payable may be made in respect of education or training that ends on or after that day. Exception (3) Despite subsection (1), the Minister may, in the prescribed circumstances, pay an education and training benefit after it would otherwise cease to be payable. Limitation 5.91 The Minister is not permitted to pay an education and training benefit to a veteran after the day on which they receive the last of the payments totalling the maximum cumulative amount to which they are entitled on that day, despite any adjustment to the maximum cumulative amount that is made under the regulations after that day. Suspension or cancellation 5.92 The Minister may, in the prescribed circumstances, suspend the payment of an education and training benefit or cancel the benefit. Regulations 5.93 The Governor in Council may make regulations (a) prescribing how the length of service in the reserve force is to be determined for the purposes of paragraph 5.2(1)(a); (b) respecting what constitutes honourable release for the purpose of paragraph 5.2(1)(b); (c) providing for the periodic adjustment of the maximum cumulative amount referred to in subsection 5.2(2); (d) defining “educational institution” for the purposes of paragraph 5.3(1)(a); (e) prescribing the education or training that may or may not be approved by the Minister under section 5.5; and (f) defining what constitutes incarceration in a correctional institution for the purposes of section 5.8. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 274-279 275 Section 40.5 of the Act is repealed. 276 Section 42 of the Act is replaced by the following: Non-application of this Part 42 This Part, other than sections 44.1 and 44.2, does not apply in respect of an injury or a disease, or the aggravation of an injury or a disease, if the injury or disease, or the aggravation, is one for which a pension may be granted under the Pension Act. 277 Section 44.3 of the Act is repealed. 278 The heading to Part 3.1 of the Act is replaced by the following: Caregiver Recognition Benefit 279 (1) The portion of subsection 65.1(1) of the Act before paragraph (a) is replaced by the following: Eligibility 65.1 (1) The Minister may, on application by a veteran, pay a caregiver recognition benefit to a person designated by the veteran if (2) Paragraphs 65.1(1)(a) and (b) of the English version of the Act are replaced by the following: (a) the veteran has had an application for a disability award approved under section 45; (b) as a result of the disability for which the application for a disability award was approved, the veteran requires ongoing care; (3) Paragraph 65.1(1)(c) of the Act is replaced by the following: (b.1) the veteran has not been awarded a pension or compensation as those terms are defined in subsection 3(1) of the Pension Act; (c) the designated person is 18 years of age or older and plays an essential role in the provision or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 279-280 coordination of the ongoing care to the veteran in the veteran’s home for which the person receives no remuneration; and (4) Subsections 65.1(3) and (4) of the Act are replaced by the following: Factors to be considered (3) In deciding whether a designated person plays an essential role in the provision or coordination of the ongoing care to the veteran in the veteran’s home, the Minister shall consider only prescribed factors. 280 Sections 65.2 and 65.3 of the Act are replaced by the following: Amount of benefit 65.2 The monthly amount of a caregiver recognition benefit that is payable to a designated person shall be the amount set out in column 2 of item 5 of Schedule 2. Only one designated person 65.21 A veteran may, for the purpose of subsection 65.1(1), designate only one person at a time. When benefit payable 65.22 (1) Subject to subsection (2), a caregiver recognition benefit begins to be payable on the first day of the month in which the application for the benefit is made. Replacement of designated person (2) If a veteran, by means of a new application for a caregiver recognition benefit, replaces the designated person with a new designated person, the caregiver recognition benefit begins to be payable to the new designated person on the later of (a) the first day of the month in which the new application is made, and (b) the day on which the benefit ceases to be payable to the previously designated person. When benefit ceases to be payable 65.23 A caregiver recognition benefit ceases to be payable on the earliest of (a) the first day of the month after the month in which the conditions of eligibility set out in paragraphs 65.1(1)(a) to (d) are no longer met, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 280-281 (b) the first day of the month after the month in which the veteran makes a new application to replace the designated person with a new designated person, or (c) the first day of the month after the month in which the veteran or the designated person dies. Change in circumstances — veteran 65.24 (1) A veteran shall inform the Minister if there is any change in circumstances relating to the conditions of eligibility set out in paragraphs 65.1(1)(a) to (d) or if the designated person dies. Change in circumstances — designated person (2) A designated person shall inform the Minister if there is any change in circumstances relating to the conditions of eligibility set out in paragraph 65.1(1)(c) or if the veteran who designated the person dies. Assessment 65.3 The Minister may, for the purpose of determining whether a designated person may continue to receive a caregiver recognition benefit, require the veteran who designated the person to undergo an assessment by a person specified by the Minister. Suspension or cancellation 65.31 The Minister may, in the prescribed circumstances, suspend the payment of a caregiver recognition benefit or cancel the benefit. 281 The Act is amended by adding the following after section 78: Waiver Waiver of requirement for application 78.1 (1) The Minister may waive the requirement for an application for compensation, career transition services, rehabilitation services or vocational assistance under this Act if he or she believes, based on information that has been collected or obtained by him or her in the exercise of the Minister’s powers or the performance of the Minister’s duties and functions, that a person may be eligible for the compensation, services or assistance if they were to apply for it. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 281-282 Notice of intent (2) If the Minister intends to waive the requirement for an application in respect of a person, the Minister shall notify the person in the prescribed manner of that intention. Accepting waiver (3) The person may accept to have the requirement for an application waived by notifying the Minister in the prescribed manner of their decision to accept the waiver and, in that case, the person shall, in any period specified by the Minister, provide him or her with any information or document that he or she requests. Date of waiver (4) The requirement for an application is waived on the day on which the Minister receives the person’s notice of their decision to accept the waiver of the requirement. Minister may require application (5) The Minister may, at any time after he or she notifies the person of his or her intention to waive the requirement for an application and for any reason that he or she considers reasonable in the circumstances, including if the person does not provide the Minister with the information that he or she requested in the period that he or she specifies, require that the person make an application and, in that case, the Minister shall notify the person in writing of that requirement. Waiver cancelled (6) A waiver is cancelled on the day on which the Minister notifies the person that they are required to make an application. Effect of waiver 78.2 (1) If the requirement for an application for compensation, career transition services, rehabilitation services or vocational assistance under this Act is waived by the Minister, the application is deemed to have been made on the day on which the requirement is waived. Effect of cancelling waiver (2) Despite subsection (1), if the waiver is cancelled after the day on which the Minister receives the person’s notice of their decision to accept the waiver, no application is deemed to have been made. 282 Section 83 of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 282-284 Review of decision under Part 1, 1.1, 2 or 3.1 83 Subject to the regulations, the Minister may, on application or on the Minister’s own motion, review a decision made under Part 1, 1.1, 2 or 3.1 or under this section. 283 The Act is amended by adding the following after section 87: Payments Amount paid to survivor 87.1 (1) Any amount that is payable under this Act to a person who dies before receiving it, is to be paid to their survivor. Amount paid to estate or succession (2) However, the amount is to be paid to the person’s estate or succession if they have no survivor or their survivor dies before receiving the amount. Definition of survivor (3) For the purposes of subsections (1) and (2), survivor, in relation to a deceased person, means (a) their spouse who was, at the time of the person’s death, residing with them; or (b) the person who was, at the time of the person’s death, cohabiting with them in a conjugal relationship and had done so for a period of at least one year. 284 (1) The portion of subsection 88(4) of the English version of the Act before paragraph (a) is replaced by the following: Erroneous payments of benefits or allowances (4) Despite anything in this Act, the Minister may continue the payment of an education and training benefit, earnings loss benefit, a Canadian Forces income support benefit, a career impact allowance, a retirement income security benefit, a clothing allowance or a caregiver recognition benefit, in whole or in part, to a person who is not entitled to it, or not entitled to a portion of it, if (2) Paragraph 88(4)(d) of the English version of the Act is replaced by the following: (d) the benefit or allowance has been paid to the person for five years or more or, in the case of an education and training benefit, for three years or more. (3) Subsection 88(4) of the French version of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 284-285 Indemnisation erronée (4) Malgré les autres dispositions de la présente loi, le ministre peut continuer de verser à la personne, bien que celle-ci n’y ait pas droit, tout ou partie de l’allocation pour études et formation, de l’allocation pour perte de revenus, de l’allocation de soutien du revenu, de l’allocation pour incidence sur la carrière, de l’allocation de sécurité du revenu de retraite, de l’allocation vestimentaire ou de l’allocation de reconnaissance pour aidant dont le montant résulte d’une erreur, d’un retard ou d’un oubli de la part d’un cadre ou fonctionnaire de l’administration publique fédérale et a fait l’objet d’une remise au motif prévu à l’alinéa (3)d), s’il estime que le versement, fait depuis au moins cinq ans, ou depuis au moins trois ans dans le cas de l’allocation pour études et formation, ne résulte pas d’une déclaration trompeuse ou de la dissimulation de faits importants de la part de cette personne et que son annulation ou sa réduction lui causerait un préjudice abusif. 285 Paragraphs 94(e) to (g) of the Act are replaced by the following: (e) respecting the provision of any information, declaration or document to the Minister by any person who applies for or is in receipt of career transition services, an education and training benefit, an education and training completion bonus, rehabilitation services, vocational assistance, an earnings loss benefit, a Canadian Forces income support benefit, a career impact allowance, a retirement income security benefit or a clothing allowance under this Act, and authorizing the Minister to suspend delivery of the services or assistance or payment of the benefit, bonus or allowance until the information, declaration or document is provided; (e.1) respecting the provision of any information, declaration or document to the Minister by any veteran who applies for a caregiver recognition benefit under subsection 65.1(1) or by the person designated in the application, and authorizing the Minister to suspend payment of the benefit until the information, declaration or document is provided; (f) respecting the procedure to be followed by the Minister in suspending or cancelling career transition services, rehabilitation services, vocational assistance or payment of compensation; (g) providing for a review of any decisions made under Part 1, 1.1, 2 or 3.1 or under section 83, including the grounds for review, the powers on review and the number of reviews; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Canadian Forces Members and Veterans Re-establishment and Compensation Act Sections 285-288 286 Section 94.1 of the Act is replaced by the following: Retroactive application of regulations 94.1 Regulations made in respect of the retirement income security benefit and the caregiver recognition benefit under subsections 40.1(5), 40.2(5), 40.3(5) and 40.4(5) and sections 41, 65.4 and 94 may, if they so provide, be retroactive. 287 Item 5 of Schedule 2 to the Act is replaced by the following: Column 1 Item Allowance or Benefit Caregiver recognition benefit Column 2 Amount ($) 1,000.00 (monthly) R.S., c. P-6 Pension Act 288 (1) The portion of subsection 3.1(1) of the Pension Act before paragraph (a) is replaced by the following: No award payable 3.1 (1) Despite any other provision of this Act, no award is payable under this Act in respect of any application made by or in respect of a member of the forces after April 1, 2006 unless (2) Paragraph 3.1(1)(b) of the Act is replaced by the following: (b) the application is in respect of the death of a member of the forces, if the death occurred before April 1, 2006 or is the result of an injury or a disease, or the aggravation of an injury or a disease, for which a pension has been granted; (3) Paragraph 3.1(1)(e) of the Act is replaced by the following: (e) the Minister has determined under the Veterans Well-being Act that the injury or disease, or the aggravation of the injury or disease, for which the application is made is inseparable — for the purpose of assessing the extent of disability — from an injury or a disease, or the aggravation of an injury or a disease, for which a pension has been granted; or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Pension Act Sections 288-292 (4) Subsection 3.1(2) of the Act is replaced by the following: Exception (2) Subsection (1) does not apply in respect of an application for compensation made under Part III.1 if the application relates to a period spent as a prisoner of war that began before April 1, 2006. 289 Subsection 35(1.2) of the Act is replaced by the following: Assessments under Veterans Well-being Act (1.2) Any disability assessments under the Veterans Well-being Act shall be taken into account for the purpose of determining whether the extent of disability exceeds 100%. 290 Subsection 38(2) of the Act is repealed. R.S., c. V-1 Department of Veterans Affairs Act 291 (1) Paragraph 5(b) of the Department of Veterans Affairs Act is repealed. (2) Subparagraph 5(c.1)(i) of the Act is replaced by the following: (i) the circumstances in which a person is required to make payments in respect of all or part of the cost of accommodation and meals in a hospital, home or other institution, Terminology Changes Replacement of “Canadian Forces Members and Veterans Re-establishment and Compensation Act” 292 (1) Every reference to the “Canadian Forces Members and Veterans Re-establishment and Compensation Act” is replaced by a reference to the “Veterans Well-being Act” in the following provisions: (a) subparagraph 5(g.1)(i.1) of the Department of Veterans Affairs Act; (b) paragraphs (e) and (f) of the definition student in section 2 of the Children of Deceased Veterans Education Assistance Act; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Terminology Changes Sections 292-293 (c) the definition special duty service in subsection 3(1), the heading before section 3.1 and subsections 72(1) to (2) of the Pension Act; (d) subsection 32.1(2) of the Royal Canadian Mounted Police Superannuation Act; (e) section 18, subsection 19(2), section 30 and subsections 34(1), (3) and (4) and 37(1) of the Veterans Review and Appeal Board Act; (f) paragraph 13(a) of the Injured Military Members Compensation Act; (g) sections 102 and 103 and paragraph (a) of the definition dependent child in subsection 107(1) of the Economic Action Plan 2014, No. 1; (h) section 98 and the definition Act in section 99 of the Budget Implementation Act, 2016, No. 1. Other references (2) Unless the context requires otherwise, every reference to the “Canadian Forces Members and Veterans Re-establishment and Compensation Act” in any provision of an Act of Parliament other than a provision referred to in subsection (1) is to be read as a reference to the “Veterans Wellbeing Act”. Transitional Provisions Payment or reimbursement 293 (1) On or after April 1, 2018, the Minister of Veterans Affairs may, in accordance with Part 1 of the Veterans Well-being Act and the regulations, as they read immediately before that day, pay or reimburse fees that are in respect of career transition services provided under that Part before that day. Application of section 87.1 (2) Section 87.1 of the Veterans Well-being Act applies with respect to an amount payable under subsection (1) to a person to whom career transition services were provided. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Transitional Provisions Sections 294-298 Services before April 1, 2018 294 A person who is entitled, on March 31, 2018, to receive career transition services under the Veterans Well-being Act need not re-apply for career transition services under section 3 of that Act, as it reads on April 1, 2018, if they meet the requirements of that section. Cessation of family caregiver relief benefits 295 (1) Subject to subsection (2), all family caregiver relief benefits under Part 3.1 of the Veterans Well-being Act as it read on March 31, 2018 cease to be payable on April 1, 2018. Applications made before April 1, 2018 (2) An application for a family caregiver relief benefit that is made under subsection 65.1(1) of the Veterans Well-being Act as it read on March 31, 2018 and that is received by the Minister before April 1, 2018 is to be dealt with in accordance with that Act as it read on March 31, 2018. If the application is approved, the veteran is entitled to the benefit for only one year. April 1, 2006 296 Paragraph 94(j.1) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act is deemed to have come into force on April 1, 2006. Consequential Amendments 2012, c. 19 Jobs, Growth and Long-term Prosperity Act 297 Division 50 of the Jobs, Growth and Longterm Prosperity Act is repealed. 2016, c. 7 Budget Implementation Act, 2016, No. 1 298 Section 115 of the Budget Implementation Act, 2016, No. 1 and the heading before it are repealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 12 Canadian Forces Members and Veterans Coming into Force Sections 299-301 Coming into Force April 1, 2018 299 The provisions of this Division, other than sections 290, 291 and 296, come into force on April 1, 2018. DIVISION 13 2001, c. 27 Immigration and Refugee Protection Act 300 (1) Section 10.1 of the Immigration and Refugee Protection Act is amended by adding the following after subsection (1): Invitation to provincial nominees (1.1) A foreign national who is a member of a portion of the prescribed class of provincial nominees set out in an instruction given under paragraph 10.3(1)(a) may be issued an invitation only in respect of that class. (2) Section 10.1 of the Act is amended by adding the following after subsection (6): Declining invitation (7) Subsection (6) does not apply to a foreign national who declines an invitation to make an application within the period specified in an instruction given under paragraph 10.3(1)(k). 301 (1) Paragraph 10.3(1)(h) of the French version of the Act is replaced by the following: h) la base sur laquelle peuvent être classés les uns par rapport aux autres les étrangers qui peuvent être invités à présenter une demande; (2) Paragraph 10.3(1)(i) of the Act is replaced by the following: (i) the rank an eligible foreign national must occupy to be invited to make an application in respect of a class referred to in an instruction given under paragraph (a); (3) Subsection 10.3(3) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 13 Immigration and Refugee Protection Act Sections 301-303 Application of instructions (3) An instruction given under any of paragraphs (1)(a), (b) and (e) to (l) applies in respect of an expression of interest that is submitted before the day on which the instruction takes effect, unless the instruction provides otherwise. 302 Section 10.4 of the Act is replaced by the following: Disclosure of information 10.4 For the purpose of facilitating the selection of a foreign national as a member of the economic class or as a temporary resident, the Minister may disclose to an entity that is referred to in an instruction given under paragraph 10.3(1)(g) the personal information referred to in that instruction that is (a) provided to the Minister by the foreign national under section 10.1 or by a third party for the purposes of section 10.1 or 10.2; or (b) created by the Minister, on the basis of the information referred to in paragraph (a), for the purposes of sections 10.1 to 10.3. 303 (1) Section 11.2 of the French version of the Act is replaced by the following: Visa ou autre document ne pouvant être délivré 11.2 Ne peut être délivré à l’étranger à qui une invitation à présenter une demande de résidence permanente a été formulée en vertu de la section 0.1 un visa ou autre document à l’égard de la demande si, lorsque l’invitation a été formulée ou que la demande a été reçue par l’agent, il ne répondait pas aux critères prévus dans une instruction donnée en vertu de l’alinéa 10.3(1)e) ou il n’avait pas les attributs sur la base desquels il a été classé au titre d’une instruction donnée en vertu de l’alinéa 10.3(1)h) et sur la base desquels cette invitation a été formulée. (2) Section 11.2 of the Act is renumbered as subsection 11.2(1) and is amended by adding the following: Exceptions (2) Despite subsection (1), an officer may issue the visa or other document if, at the time the officer received their application, (a) the foreign national did not meet the criteria set out in an instruction given under paragraph 10.3(1)(e) — or did not have the qualifications on the basis of which they were ranked under an instruction given under paragraph 10.3(1)(h) — because the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 13 Immigration and Refugee Protection Act Sections 303-305 applicant’s birthday occurred after the invitation was issued; or (b) the foreign national did not have the qualifications they had at the time the invitation was issued and on the basis of which they were ranked under an instruction given under paragraph 10.3(1)(h), but (i) they met the criteria set out in an instruction given under paragraph 10.3(1)(e), and (ii) they occupied a rank that is not lower than the rank that a foreign national was required to have occupied to be invited to make an application. 304 (1) Subsection 89(1.2) of the Act is replaced by the following: Service Fees Act (1.2) The Service Fees Act does not apply to a fee for the provision of services in relation to the processing of an application (a) for a temporary resident visa or permanent resident visa; (b) for a work permit or study permit; (c) for an extension of an authorization to remain in Canada as a temporary resident; (d) to remain in Canada as a permanent resident; (e) to sponsor a foreign national as a member of the family class; (f) to make the request referred to in subsection 25(1); (g) for a travel document issued under subsection 31(3); and (h) for a permanent resident card. (2) Section 89 of the Act is amended by adding the following after subsection (3): Service Fees Act (4) The Service Fees Act does not apply to a fee for the examination of the circumstances of a foreign national under subsection 25.2(1). 305 The Act is amended by adding the following after section 89.1: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 13 Immigration and Refugee Protection Act Sections 305-311 Service Fees Act 89.11 The Service Fees Act does not apply to fees for the acquisition of permanent resident status. DIVISION 14 1996, c. 23 Employment Insurance Act Amendments to the Act 306 Section 58 of the Employment Insurance Act is replaced by the following: Definition of insured participant 58 In this Part, insured participant means an insured person who requests assistance under employment benefits and, when requesting the assistance, is an unemployed person for whom a benefit period is established or whose benefit period has ended within the previous 60 months or an unemployed person who paid, in at least 5 of the last 10 years, employee’s premiums that did not entitle the person to a refund under subsection 96(4). 307 (1) Paragraph 60(4)(a) of the Act is replaced by the following: (a) organizations that provide employment assistance services; (2) Paragraph 60(5)(a) of the Act is replaced by the following: (a) provide assistance for employed persons unless they are facing a loss of their employment or need assistance to maintain their employment; or 308 Subsection 63(2) of the Act is repealed. 309 Section 63.1 of the Act is repealed. 310 Schedule III to the Act is repealed. Coming into Force April 1, 2018 311 This Division comes into force on April 1, 2018. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 15 Agreements — Minister of Transport Sections 312-313 DIVISION 15 Agreements — Minister of Transport R.S., c. A-2 Aeronautics Act 312 The Aeronautics Act is amended by adding the following after section 4.4: Agreement — cost recovery 4.401 (1) The Minister may enter into an agreement with any person or organization respecting any matter for which a regulation made under subsection 4.4(1) or (2) could impose a charge. Regulations — exemption (2) If both an agreement entered into under subsection (1) and a regulation made under subsection 4.4(1) or (2) relate to the same matter, the regulation does not apply to the person or organization that has entered into the agreement in respect of the matter for which payment is required under the agreement. Recovery (3) When the Minister enters into an undertaking with respect to a matter for which payment of an amount is required from the other party under the terms of an agreement entered into under subsection (1), the undertaking is deemed, for the purposes of recovering that amount, not to be a duty of the Minister under this Act. Debt due to Her Majesty (4) All amounts payable under an agreement entered into under subsection (1) and any interest payable on them constitute a debt due to Her Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction. Spending (5) The Minister may spend the amounts received under an agreement entered into under subsection (1) in the fiscal year in which they are received or in the next fiscal year. 313 Section 4.41 of the Act is replaced by the following: Civil air navigation services 4.41 (1) An order or regulation must not be made under this Part that has the effect of imposing charges for civil air navigation services, and an agreement must not be 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 15 Agreements — Minister of Transport Aeronautics Act Sections 313-314 entered into under subsection 4.401(1) that has the effect of requiring payment for those services. Minister of National Defence (2) An order or regulation must not be made under this Part that has the effect of imposing charges for air navigation services provided by or on behalf of the Minister of National Defence, and an agreement must not be entered into under subsection 4.401(1) that has the effect of requiring payment for those services, if (a) the charges or payments are for services referred to in subsection 10(1) of the Civil Air Navigation Services Commercialization Act; or (b) the charges or payments are for services that are similar to services that the ANS Corporation provides and charges for in respect of Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services. R.S., c. N-22; 2012, c. 31, s. 316 Navigation Protection Act 314 The Navigation Protection Act is amended by adding the following after section 27: Agreement — cost recovery 27.1 (1) The Minister may enter into an agreement with any person or organization respecting any matter for which a regulation made under paragraph 28(1)(b) could prescribe a fee. Regulations — exemption (2) If both an agreement entered into under subsection (1) and a regulation made under paragraph 28(1)(b) relate to the same matter, the regulation does not apply to the person or organization that has entered into the agreement in respect of the matter for which payment is required under the agreement. Recovery (3) When the Minister enters into an undertaking with respect to a matter for which payment of an amount is required from the other party under the terms of an agreement entered into under subsection (1), the undertaking is deemed, for the purposes of recovering that amount, not to be a duty of the Minister under this Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 15 Agreements — Minister of Transport Navigation Protection Act Sections 314-315 Debt due to Her Majesty (4) All amounts payable under an agreement entered into under subsection (1) and any interest payable on them constitute a debt due to Her Majesty in right of Canada. Spending (5) The Minister may spend the amounts received under an agreement entered into under subsection (1) in the fiscal year in which they are received or in the next fiscal year. R.S., c. 32 (4th Supp.) Railway Safety Act 315 The Railway Safety Act is amended by adding the following after section 47.3: Agreements Agreement — cost recovery 47.4 (1) The Minister may enter into an agreement with any person respecting any matter for which a regulation made under subsection 47.2(1) could prescribe a fee or charge. Regulations — exemption (2) If both an agreement entered into under subsection (1) and a regulation made under subsection 47.2(1) relate to the same matter, the regulation does not apply to the person who has entered into the agreement in respect of the matter for which payment is required under the agreement. Recovery (3) When the Minister enters into an undertaking with respect to a matter for which payment of an amount is required from the other party under the terms of an agreement entered into under subsection (1), the undertaking is deemed, for the purposes of recovering that amount, not to be a duty of the Minister under this Act. Debt due to Her Majesty (4) All amounts payable under an agreement entered into under subsection (1) and any interest payable on them constitute a debt due to Her Majesty in right of Canada. Spending (5) The Minister may spend the amounts received under an agreement entered into under subsection (1) in the fiscal year in which they are received or in the next fiscal year. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 15 Agreements — Minister of Transport Canada Shipping Act, 2001 Sections 316-317 2001, c. 26 Canada Shipping Act, 2001 316 The Canada Shipping Act, 2001 is amended by adding the following after section 36: Agreement — cost recovery 36.01 (1) The Minister of Transport may enter into an agreement with any person or organization respecting any matter for which a regulation made under paragraph 35(1)(g) could prescribe a fee. Regulations — exemption (2) If both an agreement entered into under subsection (1) and a regulation made under paragraph 35(1)(g) relate to the same matter, the regulation does not apply to the person or organization that has entered into the agreement in respect of the matter for which payment is required under the agreement. Recovery (3) When the Minister of Transport enters into an undertaking in respect of a matter for which payment of an amount is required from the other party under the terms of an agreement entered into under subsection (1), the undertaking is deemed, for the purposes of recovering that amount, not to be a duty of the Minister under this Act. Debt due to Her Majesty (4) All amounts payable under an agreement entered into under subsection (1) and any interest payable on them constitute a debt due to Her Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction. Spending (5) The Minister of Transport may spend the amounts received under an agreement entered into under subsection (1) in the fiscal year in which they are received or in the next fiscal year. DIVISION 16 R.S., c. F-27 Food and Drugs Act 317 The Food and Drugs Act is amended by adding the following after section 30.6: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 16 Food and Drugs Act Section 317 Fees Fees 30.61 (1) The Minister may, by order, fix the following fees in relation to a drug, device, food or cosmetic: (a) fees to be paid for a service, or the use of a facility, provided under this Act; (b) fees to be paid in respect of regulatory processes or approvals provided under this Act; and (c) fees to be paid in respect of products, rights and privileges provided under this Act. Amount not to exceed cost (2) A fee fixed under paragraph (1)(a) may not exceed the cost to Her Majesty in right of Canada of providing the service or the use of the facility. Aggregate amount not to exceed cost (3) Fees fixed under paragraph (1)(b) may not in the aggregate exceed the cost to Her Majesty in right of Canada in respect of providing the regulatory processes or approvals. Consultation 30.62 Before making an order under subsection 30.61(1), the Minister shall consult with any persons that the Minister considers to be interested in the matter. Remission of fees 30.63 (1) The Minister may, by order, remit all or part of any fee fixed under subsection 30.61(1) and the interest on it. Remission may be conditional (2) A remission granted under subsection (1) may be conditional. Conditional remission (3) If a remission granted under subsection (1) is conditional and the condition is not fulfilled, then the remission is cancelled and is deemed never to have been granted. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 16 Food and Drugs Act Sections 317-320 Non-payment of fees 30.64 The Minister may withdraw or withhold a service, the use of a facility, a regulatory process or approval or a product, right or privilege under this Act from any person who fails to pay the fee fixed for it under subsection 30.61(1). Adjustment of amounts 30.65 (1) An order made under subsection 30.61(1) may prescribe rules for the adjustment of the amount of the fee by any amounts or ratios that are referred to in the order, for the period that is specified in the order. Notice of adjusted amount (2) The amount of a fee that is subject to an adjustment rule remains unadjusted for the specified period unless, before the beginning of that period, the Minister publishes a notice in the Canada Gazette that specifies the adjusted amount and the manner in which it was determined. Service Fees Act 30.66 The Service Fees Act does not apply to a fee fixed under subsection 30.61(1). DIVISION 17 Labour and Employment Laws R.S., c. L-2 Canada Labour Code 318 (1) Section 2 of the Canada Labour Code is amended by adding the following in alphabetical order: external adjudicator means a person appointed under subsection 12.001(1); (arbitre externe) (2) Section 2 of the Act is amended by adding the following in alphabetical order: Board means the Canada Industrial Relations Board established by section 9; (Conseil) 319 The definition Board in subsection 3(1) of the Act is repealed. 320 (1) Paragraph 9(2)(e) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 320-322 (e) any other full-time or part-time members that the Governor in Council considers necessary to assist the Board in carrying out its functions under Parts II and III. (2) Paragraph 9(2)(e) of the Act is replaced by the following: (e) any other full-time or part-time members that the Governor in Council considers necessary to assist the Board in carrying out its functions under Parts II, III and IV. 321 Section 10.1 of the Act is renumbered as subsection 10.1(1) and is amended by adding the following: Exemption (2) The Governor in Council may, by order, exempt a member from the requirement set out in subsection (1), subject to any conditions that the Governor in Council may prescribe. 322 (1) The Act is amended by adding the following after section 12: Appointment of external adjudicator 12.001 (1) The Chairperson may, if the Chairperson considers it advisable, appoint an external adjudicator to determine any matter that comes before the Board under Part II or III. Powers, duties and functions (2) An external adjudicator has all the powers, duties and functions that are conferred on the Board by this Act with respect to any matter for which they have been appointed. Decision of external adjudicator (3) An order or decision made or a direction issued by an external adjudicator under this Act is deemed to be an order or decision made or a direction issued by the Board, as the case may be. Remuneration and expenses (4) An external adjudicator shall be paid the remuneration and the fees that may be fixed by the Chairperson and is entitled to be paid reasonable travel and living expenses incurred by them in the course of their duties while absent from their ordinary place of residence. (2) Subsection 12.001(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 322-324 Appointment of external adjudicator 12.001 (1) The Chairperson may, if the Chairperson considers it advisable, appoint an external adjudicator to determine any matter that comes before the Board under Part II, III or IV. 323 Subsections 12.02(2) and (3) of the Act are replaced by the following: Quorum (2) For the purposes of subsection (1), the following persons constitute a quorum: (a) subject to paragraph (b), the Chairperson, two Vice-Chairpersons and two other members representing, respectively, employees and employers; or (b) at a meeting held for the making of regulations respecting matters that are not governed by Part I, the Chairperson, two Vice-Chairpersons and, if two or more full-time members have been appointed under paragraph 9(2)(e), two of those members. Equal representation (3) If, at a meeting referred to in subsection (1) held for the making of regulations respecting matters that are governed by Part I, there is an unequal number of members representing employers and employees, the Chairperson shall designate an equal number of members who are authorized to vote on the making of those regulations and who represent employers and employees respectively. Members not permitted to vote (4) Members who represent employees or employers are not permitted to vote on the making of regulations respecting matters that are not governed by Part I. 324 (1) The Act is amended by adding the following after section 12.05: Limitation of liability 12.051 The Chairperson, Vice-Chairpersons and other members are not personally liable, either civilly or criminally, for anything done or omitted to be done by them in good faith in the exercise or purported exercise of any power, or in the performance or purported performance of any duty or function, conferred on them under this Act. (2) Section 12.051 of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 324-326 Limitation of liability 12.051 The Chairperson, Vice-Chairpersons, other members and external adjudicators are not personally liable, either civilly or criminally, for anything done or omitted to be done by them in good faith in the exercise or purported exercise of any power, or in the performance or purported performance of any duty or function, conferred on them under this Act. 325 (1) Subsection 14(1) of the Act is replaced by the following: Panels 14 (1) Subject to subsections (3) and (3.1), a panel of not fewer than three members, at least one of whom is the Chairperson or a Vice-Chairperson, may determine any matter that comes before the Board under this Act. (2) Subsections 14(4) and (5) of the Act are replaced by the following: Single person — Parts II and III (3.1) The Chairperson, a Vice-Chairperson or a member appointed under paragraph 9(2)(e) may alone determine a matter that comes before the Board under Part II or III. Deemed panel (4) The Chairperson, a Vice-Chairperson or another member who determines a matter under subsection (3) or (3.1) is deemed to be a panel. Powers, duties and functions (5) A panel has all the powers, duties and functions that are conferred on the Board by this Act with respect to any matter assigned to the panel. (3) Subsection 14(3.1) of the Act is replaced by the following: Single person — Parts II, III and IV (3.1) The Chairperson, a Vice-Chairperson or a member appointed under paragraph 9(2)(e) may alone determine a matter that comes before the Board under Part II, III or IV. 326 Subsection 14.2(2) of the Act is replaced by the following: Time limit (2) If a decision is to be made under this Part, the panel shall make it and give notice of it to the parties no later than 90 days after the day on which the panel reserved 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 326-329 the decision or within any further period that may be determined by the Chairperson. 327 (1) Paragraph 15(g) of the Act is replaced by the following: (g) the hearing or determination of any application, complaint, question, dispute, difference or appeal that may be made or referred to the Board; (2) Section 15 of the Act is amended by striking out “and” at the end of paragraph (p) and by replacing paragraph (q) with the following: (p.1) the manner and criteria for selecting external adjudicators; and (q) any other matters and things that may be incidental or conducive to the proper performance of the duties of the Board under this Act. 328 Subsection 15.1(1) of the Act is replaced by the following: General power to assist parties 15.1 (1) The Board, any member of the Board or any external adjudicator — or an employee of the Administrative Tribunals Support Service of Canada who is authorized by the Board — may, if the parties agree, assist the parties in resolving any issues in dispute at any stage of a proceeding and by any means that the Board considers appropriate, without prejudice to the Board’s power to determine issues that have not been settled. 329 (1) Paragraph 16(m.1) of the Act is replaced by the following: (m.1) to extend the time limits set out in this Act for instituting a proceeding; (2) Section 16 of the Act is amended by striking out “and” at the end of paragraph (o.1), by adding “and” at the end of paragraph (p) and by adding the following after paragraph (p): (q) to decide any question that may arise in a proceeding under Part II or III. (3) Paragraph 16(q) of the Act is replaced by the following: (q) to decide any question that may arise in a proceeding under Part II, III or IV. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 330-334 330 Sections 19 and 19.1 of the Act are replaced by the following: Application of orders 19 Where the Board may make any decision or issue any order, prescribe any term or condition or do any other thing in relation to any person or organization, the Board may do so generally or in any particular case or class of cases. Interim orders 19.1 The Board may, on application by a trade union, an employer or an affected employee, make any interim order that the Board considers appropriate for the purpose of ensuring the fulfilment of the objectives of this Act. 331 Subsection 20(3) of the Act is replaced by the following: Definition of decision (3) In this section, decision includes an order, a direction, a determination and a declaration. 332 Section 21 of the Act is replaced by the following: Exercise of powers, duties and functions 21 The Board shall exercise the powers and perform the duties and functions that are conferred or imposed on it by this Act, or that may be incidental to the attainment of the objects of this Act, including the making of orders requiring compliance with the provisions of this Act, with any regulation made under this Act or with any decision made in respect of a matter before the Board. 333 Subsection 22(1) of the Act is replaced by the following: Order and decision final 22 (1) Subject to this Part, every order or decision made by the Board under this Part is final and shall not be questioned or reviewed in any court, except in accordance with the Federal Courts Act on the grounds referred to in paragraph 18.1(4)(a), (b) or (e) of that Act. 334 Subsection 23(1) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 334-338 Filing in Federal Court 23 (1) The Board shall, on the request in writing of any person or organization affected by any order or decision of the Board made under this Part, file a copy of the order or decision, exclusive of reasons, in the Federal Court, unless, in the opinion of the Board, 335 Section 23.1 of the Act is replaced by the following: Filing in provincial superior court 23.1 The Board may, on application by a person or organization affected by an order or decision of the Board made under this Part, file a copy of the order or decision, exclusive of reasons, in the superior court of a province. Section 23 applies, with any modifications that the circumstances require, to an order or decision filed in such a superior court. 336 Subsection 119(1) of the Act is replaced by the following: Not required to give evidence — Part I 119 (1) No member of a conciliation board or no conciliation officer, conciliation commissioner, officer or employee employed in the federal public administration or person appointed by the Board or the Minister under this Part shall be required to give evidence in any civil action, suit or other proceeding respecting information obtained in the discharge of their duties under this Part. Not required to give evidence — Act (1.1) No member of the Board or no external adjudicator shall be required to give evidence in any civil action, suit or other proceeding respecting information obtained in the discharge of their duties under this Act. 337 Paragraph 119.1(a) of the Act is replaced by the following: (a) notes or draft orders or decisions of the Board or any of its members, of an external adjudicator or of an arbitrator or arbitration board chairperson appointed by the Minister under this Part; and 338 (1) The definition appeals officer in subsection 122(1) of the Act is repealed. (2) The definition Board in subsection 122(1) of the Act is repealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 339-343 339 Paragraph 125(1)(x) of the Act is replaced by the following: (x) comply with every oral or written direction given to the employer by the Minister or the Board concerning the health and safety of employees; 340 Paragraph 126(1)(i) of the Act is replaced by the following: (i) comply with every oral or written direction of the Minister or the Board concerning the health and safety of employees; and 341 Subsection 129(7) of the Act is replaced by the following: Appeal (7) If the Minister makes a decision referred to in paragraph 128(13)(b) or (c), the employee is not entitled under section 128 or this section to continue to refuse to use or operate the machine or thing, work in that place or perform that activity, but the employee, or a person designated by the employee for the purpose, may appeal the decision, in writing, to the Board within 10 days after receiving notice of the decision. 342 Section 134 of the Act is renumbered as subsection 134(1) and is amended by adding the following: Enforcement of orders (2) Any person affected by an order of the Board under subsection (1), or the Minister on the request of such a person, may, after 14 days from the day on which the order is made, or from the day provided in the order for compliance, whichever is later, file in the Federal Court a copy of the order, exclusive of reasons. Registration (3) On filing in the Federal Court under subsection (2), an order of the Board shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken in respect of it, as if the order were a judgment obtained in that Court. 343 Paragraph 142(a) of the Act is replaced by the following: (a) the Minister to enable him or her to exercise his or her powers or to perform his or her duties or functions under this Part; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 343-346 (a.1) an external adjudicator and a member of the Board to enable them to, in accordance with subsection 12.001(2) or 14(5), exercise or perform the powers, duties or functions conferred on the Board by this Part; and 344 Paragraph 143(a) of the Act is replaced by the following: (a) the Minister in the exercise of his or her powers, or in the performance of his or her duties or functions, under this Part; (a.1) an external adjudicator or a member of the Board in the exercise or performance, in accordance with subsection 12.001(2) or 14(5), of the powers, duties or functions conferred on the Board by this Part; or 345 (1) The portion of section 143.1 of the French version of the Act before paragraph (a) is replaced by the following: Communication de renseignements 143.1 Il est interdit d’empêcher un employé de fournir des renseignements : (2) Paragraph 143.1(a) of the Act is replaced by the following: (a) the Minister in the exercise of his or her powers, or in the performance of his or her duties or functions under this Part; (a.1) an external adjudicator or a member of the Board in the exercise or performance, in accordance with subsection 12.001(2) or 14(5), of the powers, duties or functions conferred on the Board by this Part; or (3) Paragraph 143.1(b) of the French version of the Act is replaced by the following: b) à toute personne à qui des attributions ont été déléguées en vertu du paragraphe 140(1) ou d’un accord conclu en vertu du paragraphe 140(2) dans l’exercice de ces attributions. 346 Subsections 144(2) and (3) of the Act are replaced by the following: Member of the Board (2) No person who has accompanied or assisted an external adjudicator or a member of the Board in the exercise, in accordance with subsection 12.001(2) or 14(5), of the powers, or in the performance of the duties or functions, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 346-347 conferred on the Board by this Part shall be required to give testimony in any proceeding with regard to information obtained in accompanying or assisting the external adjudicator or member. Non-disclosure of information (3) Subject to subsection (4), the Minister, an external adjudicator or a member of the Board who is admitted to a work place under the powers conferred by section 141 — or a person who is admitted to a work place under the powers conferred by section 141 that are delegated to them under subsection 140(1) or under an agreement entered into under subsection 140(2) — and any person accompanying them, shall not disclose to any person any information obtained in the work place by the Minister, external adjudicator or member or person with regard to any secret process or trade secret, except for the purposes of this Part or as required by law. 347 Sections 145.1 and 146 of the Act are replaced by the following: Powers, duties and functions 145.1 For the purposes of sections 146 to 146.5, the Board has all of the powers, duties and functions of the Minister under this Part, except for those referred to in section 130, subsections 135(3) and (6), 137.1(1) to (2.1) and (7) to (9), 137.2(4), 138(1) to (2) and (4) to (6), section 139, subsections 140(1), (2) and (4) and 144(1), section 146.01, subsection 149(1), sections 152 and 155 and subsections 156.1(1), 157(3) and 159(2). Appeal of direction 146 (1) An employer, employee or trade union that feels aggrieved by a direction issued by the Minister under this Part may appeal the direction to the Board, in writing, within 30 days after the day on which the direction was issued or confirmed in writing. Direction not stayed (2) Unless otherwise ordered by the Board on application by the employer, employee or trade union, an appeal of a direction does not operate as a stay of the direction. Minister informed of appeal 146.01 (1) The Board shall inform the Minister in writing when an appeal is brought under subsection 129(7) or section 146 and provide him or her with a copy of the request for appeal. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 347-348 Documents provided to Board (2) The Minister shall, on request of the Board, provide to the Board a copy of any document that the Minister relied on for the purpose of making the decision or issuing the direction being appealed. Documents provided to Minister (3) The Board shall, on request of the Minister, provide to the Minister a copy of any document that is filed with the Board in the appeal. Power of Minister (4) The Minister may, in an appeal, present evidence and make representations to the Board. 348 (1) The portion of subsection 146.1(1) of the Act before paragraph (a) is replaced by the following: Inquiry 146.1 (1) If an appeal is brought under subsection 129(7) or section 146, the Board shall, in a summary way and without delay, inquire into the circumstances of the decision or direction, as the case may be, and the reasons for it and may (2) Paragraph 146.1(1)(b) of the English version of the Act is replaced by the following: (b) issue any direction that the Board considers appropriate under subsection 145(2) or (2.1). (3) Subsections 146.1(2) to (4) of the Act are replaced by the following: Decision and reasons (2) The Board shall provide a written decision, with reasons, and a copy of any direction to the employer, employee or trade union concerned and to the Minister, and the employer shall, without delay, give a copy of the decision, the reasons, and any direction to the work place committee or health and safety representative. Posting of notice (3) If the Board issues a direction under paragraph (1)(b), the employer shall, without delay, affix or cause to be affixed to or near the machine, thing or place in respect of which the direction is issued a notice of the direction, in the form and containing the information that the Board may specify, and no person may remove the notice unless authorized to do so by the Board. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 348-351 Cessation of use (4) If the Board directs, under paragraph (1)(b), that a machine or thing not be used, a place not be worked in or an activity not be performed until the direction is complied with, no person shall use the machine or thing, or work in the place or perform the activity until the direction is complied with, but nothing in this subsection prevents the doing of anything necessary for the proper compliance with the direction. 349 Sections 146.2 to 146.5 of the Act are replaced by the following: Wages 146.5 An employee who is a party to a proceeding under subsection 146.1(1) and who attends at the proceeding, or any employee who has been summoned by the Board to attend at such a proceeding and who attends, is entitled to be paid by the employer at the employee’s regular rate of wages for the time spent at the proceeding that would otherwise have been time at work. 350 The Act is amended by adding the following after section 154: Publication 154.1 The Minister may, subject to the regulations, make public the name of an employer convicted of an offence under this Part, the nature of the offence, the punishment imposed and any other prescribed information. 351 Section 156 of the Act and the heading before it are replaced by the following: Orders, Decisions and Directions of Board Decision final 156 (1) Every order or decision made or direction issued by the Board under this Part is final and shall not be questioned or reviewed in any court. No review by certiorari, etc. (2) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain the Board in any proceedings under this Part. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 352-354 352 Subsection 157(1) of the Act is amended by striking out “and” at the end of paragraph (a.1) and by adding the following after paragraph (a.1): (a.2) prescribing the method for calculating and determining the regular rate of wages for the purpose of section 146.5; and 353 (1) The portion of subsection 241(3) of the Act before paragraph (a) is replaced by the following: Complaint not settled (3) If a complaint is not settled under subsection (2) within the period that the inspector endeavouring to assist the parties under that subsection considers to be reasonable in the circumstances, the inspector shall, on the written request of the person who made the complaint that the complaint be referred to the Board, (2) Paragraph 241(3)(b) of the Act is replaced by the following: (b) deliver to the Board the complaint made under subsection 240(1), any written statement giving the reasons for the dismissal provided under subsection (1) and any other statements or documents that the inspector has that relate to the complaint. 354 (1) Subsections 242(1) and (2) of the Act are repealed. (2) The portion of subsection 242(3) of the Act before paragraph (a) is replaced by the following: Decision of the Board (3) Subject to subsection (3.1), the Board, after a complaint has been referred to it, shall (3) The portion of subsection 242(3.1) of the Act before paragraph (a) is replaced by the following: Limitation on complaints (3.1) No complaint shall be considered by the Board under subsection (3) in respect of a person if (4) The portion of subsection 242(4) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 354-356 Unjust dismissal (4) If the Board decides under subsection (3) that a person has been unjustly dismissed, the Board may, by order, require the employer who dismissed the person to 355 Sections 243 and 244 of the Act are replaced by the following: Order final 243 (1) Every order of the Board is final and shall not be questioned or reviewed in any court. No review by certiorari, etc. (2) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain the Board in any proceedings under section 242. Enforcement of orders 244 (1) Any person affected by an order of the Board under subsection 242(4), or the Minister on the request of such a person, may, after 14 days from the day on which the order is made, or from the day provided in the order for compliance, whichever is later, file in the Federal Court a copy of the order, exclusive of reasons. Registration (2) On filing in the Federal Court under subsection (1), an order of the Board shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken in respect of it, as if the order were a judgment obtained in that Court. 356 (1) The Act is amended by adding the following after section 246: DIVISION XIV.1 Complaints Relating to Reprisals Complaint to Board 246.1 (1) Any employee may make a complaint in writing to the Board if they believe that their employer has taken any of the following reprisals against them: (a) taking action against the employee in contravention of section 208, 209.3, 238, 239, 239.1 or 247.96; (b) dismissing, suspending, laying off, or demoting the employee, imposing a financial or other penalty on 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 356 the employee, or otherwise taking any disciplinary action against the employee, because the employee (i) has made a complaint under this Part, other than a complaint under section 240, (ii) has provided information regarding the wages, hours of work, annual vacation or conditions of work of any employee or provided any other assistance to the Minister or to an inspector in the exercise or performance of the Minister’s or the inspector’s powers, duties and functions under this Part, (iii) has testified or is about to testify in a proceeding taken or an inquiry held under this Part, or (iv) has exercised, or sought to exercise, any right conferred on the employee by this Part; (c) taking into account the fact that the employee has taken any of the actions referred to in subparagraphs (b)(i) to (iv) in any decision with respect to the promotion or training of the employee; or (d) threatening to take any of the reprisals referred to in paragraph (b) or (c). Limitation — dismissal (2) An employee who has been dismissed shall not make a complaint (a) under subsection (1) with respect to their dismissal if they have made a complaint under subsection 240(1) that has not been withdrawn; or (b) under subsection 240(1) if they have made a complaint under subsection (1) with respect to their dismissal that has not been withdrawn. Time for making complaint (3) A complaint referred to in subsection (1) shall be made to the Board not later than 90 days after the day on which the employee knew or, in the Board’s opinion, ought to have known of the action or circumstances giving rise to the complaint. Burden of proof (4) A complaint made under subsection (1) is itself evidence that the reprisal was actually taken and, if a party to the complaint proceedings alleges that the reprisal was not taken, the burden of proof is on that party. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 356 Suspension of complaint 246.2 (1) If satisfied that the employee must take measures before the complaint made under subsection 246.1(1) may be dealt with, the Board may suspend consideration of the complaint, in whole or in part. Notice (2) If the Board suspends a complaint, the Board shall notify the employee in writing and specify in the notice (a) the measures that the employee must take; and (b) the period of time within which the employee must take those measures. End of suspension (3) The suspension ends when, in the Board’s opinion, the measures specified in the notice have been taken. Rejection of complaint 246.3 (1) The Board may reject a complaint made under subsection 246.1(1), in whole or in part, (a) if the Board is satisfied that (i) the complaint is not within its jurisdiction, (ii) the complaint is frivolous, vexatious or not made in good faith, (iii) the complaint has been settled between the employer and the employee, (iv) there are other means available to the employee to resolve the subject matter of the complaint that the Board considers should be pursued, (v) the subject matter of the complaint has been adequately dealt with through recourse obtained before a court, tribunal, arbitrator or adjudicator, or (vi) in respect of a complaint made by an employee who is subject to a collective agreement, the collective agreement covers the subject matter of the complaint and provides a third party dispute resolution process; or (b) if consideration of the complaint was suspended under subsection 246.2(1) and if, in the Board’s opinion, the measures specified in the notice under subsection 246.2(2) were not taken within the specified time period. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 356 Notice of rejection of complaint (2) If the Board rejects a complaint, it shall notify the employee in writing, with reasons. Board orders 246.4 If the Board determines that a complaint under subsection 246.1(1) is justified, the Board may, by order, require the employer to cease engaging in or to rescind the reprisal and, if applicable, to (a) permit the employee who has made the complaint to return to the duties of their employment; (b) reinstate the employee; (c) pay to the employee compensation not exceeding the sum that, in the Board’s opinion, is equivalent to the remuneration that would, but for the reprisal, have been paid by the employer to the employee; (d) pay to the employee compensation not exceeding the sum that, in the Board’s opinion, is equivalent to any financial or other penalty imposed on the employee by the employer; and (e) do any other thing that the Board considers equitable for the employer to do to remedy or counteract any consequence of the reprisal. Decisions final 246.5 (1) Every decision of the Board made under this Division is final and shall not be questioned or reviewed in any court. No review by certiorari, etc. (2) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain the Board in any proceedings under this Division. Enforcement of orders 246.6 (1) Any person affected by an order of the Board under section 246.4, or the Minister on the request of such a person, may, after 14 days from the day on which the order is made, or from the day provided in the order for compliance, whichever is later, file in the Federal Court a copy of the order, exclusive of reasons. Registration (2) On filing in the Federal Court under subsection (1), an order of the Board shall be registered in the Court and, when registered, has the same force and effect, and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 356-357 all proceedings may be taken in respect of it, as if the order were a judgment obtained in that Court. Complaint to Board 246.7 (1) Despite subsection 14(1), the Chairperson or a Vice-Chairperson of the Board, or a member of the Board appointed under paragraph 9(2)(e), may dispose of any complaint made to the Board under this Division and, in relation to any complaint so made, that person (a) has all the powers, rights and privileges that are conferred on the Board by this Act other than the power to make regulations under section 15; and (b) is subject to all the obligations and limitations that are imposed on the Board by this Act. Application of Part I provisions (2) Subject to sections 246.5 and 246.6, the provisions of Part I respecting orders and decisions of and proceedings before the Board or any member under that Part apply in respect of all orders and decisions of and proceedings before the Board or the member under this Division. (2) Paragraph 246.1(1)(b) of the Act is amended by adding the following after subparagraph (ii): (ii.1) has provided information regarding the wages, hours of work, annual vacation or conditions of work of any employee or provided any other assistance to an external adjudicator or a member of the Board in the exercise or performance, in accordance with subsections 12.001(2) or 14(5), of the powers, duties or functions conferred on the Board by this Part, (3) Section 246.7 of the Act is repealed. 357 Section 251 of the Act is amended by adding the following after subsection (1): For greater certainty (1.1) For greater certainty, the inspector may, when exercising the powers referred to in subsection (1), make any finding necessary to determine whether an employee is entitled to any wages or other amounts under this Part, including a finding that the employee was dismissed for just cause for the purposes of section 230 or 235. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 357-358 Evidence (1.2) If the employer fails to make or keep any record in respect of an employee that the employer is required to make or keep under this Part — or fails to allow the inspector to examine, take extracts from or make copies of such a record — the inspector may, when exercising the powers referred to in subsection (1), rely on any other available evidence. 358 The Act is amended by adding the following after section 251: Internal Audit Internal audit order 251.001 (1) Subject to the regulations, the Minister may, in writing, for the purpose of verifying compliance or preventing non-compliance with this Part, order an employer to, in accordance with the order, (a) conduct an internal audit of its practices and books, payrolls and other records to determine whether the employer is in compliance with any provision of this Part or the regulations; and (b) provide a report of the results of the audit to the Minister and to any inspector named in the order. Contents of order (2) The Minister shall, in the internal audit order, specify (a) any industrial establishment and class of employees to which it applies; (b) the period of time to be covered by the internal audit; (c) the provisions of this Part or the regulations with respect to which the internal audit was ordered; (d) the date by which the employer is to provide the report; and (e) the form of the report. Information to include in report (3) The Minister may also specify in the order that the report is to contain any information that the Minister considers appropriate. Service (4) Service of the order or of a copy of it shall be by personal service, by registered mail or by any other means prescribed by regulation and, in the case of registered 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 358-359 mail, the order or its copy shall be deemed to have been received by the addressee on the seventh day after the day on which it was mailed. Proof of service (5) A certificate purporting to be signed by the Minister certifying that a document referred to in subsection (4) was sent by registered mail or by any other means prescribed by regulation to the addressee, accompanied by a true copy of the document and by an identifying post office certificate of the registration or other proof, prescribed by regulation, that the document has been sent or received, is admissible in evidence and is proof of the statements contained in the certificate, without proof of the signature or official character of the person appearing to have signed the certificate. Report — non-compliance (6) If the employer determines that it had not complied with any provision referred to in the order, the employer shall set out in the report the nature of the employer’s non-compliance and the steps that have been or will be taken by the employer to comply with the provision. Report — wages and other amounts (7) If the employer determines that any wages or other amounts to which an employee is entitled under this Part are owed, the employer shall also state in the report the name of the employee, the amount owed for the period of time covered by the internal audit, the method used to determine the amount owed and any payment subsequently made to the employee with respect to that amount owed. Inspection and complaint not precluded (8) For greater certainty, nothing in this section precludes an inspection from being made, or a complaint from being dealt with, under this Part. False information (9) No employer shall make a false or misleading statement in a report. 359 Subsection 251.01(4) of the Act is replaced by the following: Limitation (4) An employee who has been dismissed is not permitted to make a complaint under subsection (1) on the grounds that the employee considers the dismissal to be unjust. However, the employee may file a complaint under subsection (1) if it relates only to the payment of their wages or other amounts to which they are entitled under 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 359-361 this Part, including amounts referred to in subsection 230(1) or (2) or 235(1). 360 The heading before section 251.1 of the Act is replaced by the following: Inspector’s Orders Compliance order 251.06 (1) If an inspector is of the opinion that an employer is contravening or has contravened a provision of this Part, its regulations or any condition of a permit issued under subsection 176(1), the inspector may issue a compliance order in writing requiring the employer to terminate the contravention within the time that the inspector may specify and take any step, as specified by the inspector and within the time that the inspector may specify, to ensure that the contravention does not continue or reoccur. Limitation (2) An inspector shall not issue a compliance order under subsection (1), (a) to take any measure that could be set out in an order made under subsection 242(4) or section 246.4; or (b) to pay wages or other amounts to which an employee is entitled under this Part. Service of order (3) Service of an order or of a copy of it shall be by personal service, by registered mail or by any other means prescribed by regulation and, in the case of registered mail, the order or its copy shall be deemed to have been received by the addressee on the seventh day after the day on which it was mailed. Proof of service (4) A certificate purporting to be signed by the Minister certifying that a document referred to in subsection (3) was sent by registered mail or by any other means prescribed by regulation to the addressee, accompanied by a true copy of the document and by an identifying post office certificate of the registration or other proof, prescribed by regulation, that the document has been sent or received, is admissible in evidence and is proof of the statements contained in the certificate, without proof of the signature or official character of the person appearing to have signed the certificate. 361 (1) Paragraph 251.1(1.1)(a) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 361 (a) in the case where the employee made a complaint under subsection 251.01(1) that was not rejected under subsection 251.05(1), the 24 months, plus any extension of the period for making the complaint that is granted by the Minister under subsection 251.01(3), immediately before the day on which the complaint was made or, if there was a termination of employment prior to the complaint being made, the 24 months immediately before the date of termination; and (2) Subsection 251.1(1.1) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after paragraph (a): (a.1) in the case where the payment order was issued to the employer on the basis of, in whole or in part, a report provided under subsection 251.001(1), the 24 months immediately before the day on which the order to provide the report was served; and (3) Paragraph 251.1(1.1)(b) of the Act is replaced by the following: (b) in any other case, the 24 months immediately before the day on which an inspection under this Part, during the course of which the inspector made the finding referred to in subsection (1), began. (4) Subsections 251.1(1.2) to (4) of the Act are replaced by the following: Complaint unfounded (2) An inspector dealing with a complaint of non-payment of wages or other amounts to which an employee is entitled under this Part shall notify the employee in writing that their complaint is unfounded if the inspector concludes that the employer has paid to the employee all wages and other amounts to which the employee is entitled under this Part for the period of six months, plus any extension of the period for making the complaint that is granted by the Minister under subsection 251.01(3), immediately before the day on which the complaint was made. Notice of voluntary compliance (2.1) An inspector dealing with a complaint of non-payment of wages or other amounts to which an employee is entitled under this Part shall notify the employee in writing that the employer has voluntarily paid to the employee all wages and other amounts owing if (a) the inspector concludes that the employer has, since the complaint was made, paid to the employee all wages and other amounts owing for the period of 24 months, plus any extension of the period for 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 361-363 making the complaint that is granted by the Minister under subsection 251.01(3), immediately before the day on which the complaint was made and for any subsequent period specified by the inspector; and (b) the inspector has not issued a payment order or a notice of unfounded complaint with respect to the complaint. Service of order or notice (3) Service of a payment order or a copy of it, of a notice of unfounded complaint, or of a notice of voluntary compliance shall be by personal service, by registered mail or by any other means prescribed by regulation and, in the case of registered mail, the order, copy or notice shall be deemed to have been received by the addressee on the seventh day after the day on which it was mailed. Proof of service (4) A certificate purporting to be signed by the Minister certifying that a document referred to in subsection (3) was sent by registered mail or by any other means prescribed by regulation to the addressee, accompanied by a true copy of the document and by an identifying post office certificate of the registration or other proof, prescribed by regulation, that the document has been sent or received, is admissible in evidence and is proof of the statements contained in the certificate, without proof of the signature or official character of the person appearing to have signed the certificate. 362 The Act is amended by adding the following after section 251.1: Inspector’s Orders — Review and Appeal 363 (1) Subsection 251.101(1) of the Act is replaced by the following: Request for review 251.101 (1) A person who is affected by a payment order, a notice of unfounded complaint or a notice of voluntary compliance may send a written request with reasons for a review of the inspector’s decision to the Minister within 15 days after the day on which the order or a copy of the order or the notice is served. (2) Subsection 251.101(1) of the Act is replaced by the following: Request for review 251.101 (1) An employer to whom a compliance order has been issued or a person who is affected by a payment 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 363 order, a notice of unfounded complaint or a notice of voluntary compliance may send a written request with reasons for a review of the inspector’s decision to the Minister (a) subject to paragraph (b), within 15 days after the day on which the order or a copy of the order or the notice is served; or (b) if a compliance order is served with a notice of violation issued under subsection 276(1) for the same contravention, within 30 days after the day on which they are served. (3) Subsection 251.101(2) of the Act is replaced by the following: Payment of amount and administrative fee (2) An employer or a director of a corporation is not permitted to request a review of a payment order unless the employer or director pays to the Minister the amount indicated in the payment order and, in the case of an employer, the administrative fee specified in the payment order in accordance with subsection 251.131(1), subject to, in the case of a director, the maximum amount of the director’s liability under section 251.18. Security (2.1) The Minister may allow an employer or a director of a corporation to give security, in a form satisfactory to the Minister and on any conditions specified by the Minister, for all or part of the amount and fee referred to in subsection (2). (4) Subsections 251.101(3) to (5) of the Act are replaced by the following: Review (3) On receipt of the request for review, the Minister may, in writing, (a) confirm, rescind or vary, in whole or in part, the payment order; or (b) confirm the notice of unfounded complaint or the notice of voluntary compliance, or rescind the notice, in which case the Minister shall direct an inspector to re-examine the complaint. Service of documents (4) Service of a decision made under subsection (3) shall be by personal service, by registered mail or by any other means prescribed by regulation on any person who is 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 363 affected by the payment order, the notice of unfounded complaint or the notice of voluntary compliance and, in the case of registered mail, the decision shall be deemed to have been received by the addressee on the seventh day after the day on which it was mailed. Proof of service (5) A certificate purporting to be signed by the Minister certifying that a decision referred to in subsection (4) was sent by registered mail or by any other means prescribed by regulation to the addressee, accompanied by a true copy of the decision and by an identifying post office certificate of the registration or other proof, prescribed by regulation, that the decision has been sent or received, is admissible in evidence and is proof of the statements contained in the certificate, without proof of the signature or official character of the person appearing to have signed the certificate. (5) Paragraph 251.101(3)(a) of the Act is replaced by the following: (a) confirm, rescind or vary, in whole or in part, the payment order or the compliance order; or (6) Subsection 251.101(4) of the Act is replaced by the following: Service of documents (4) Service of a decision made under subsection (3) shall be by personal service, by registered mail or by any other means prescribed by regulation on any person who is affected by the payment order, the notice of unfounded complaint or the notice of voluntary compliance or, in the case of a compliance order, on the employer. If the decision is served by registered mail, it shall be deemed to have been received by the addressee on the seventh day after the day on which it was mailed. (7) Subsection 251.101(7) of the Act is replaced by the following: Request treated as an appeal (7) The Minister may, if the Minister considers it appropriate in the circumstances, treat the request for review as an appeal of the inspector’s decision, in which case the Minister shall so inform any person who is affected by the payment order, the notice of unfounded complaint or the notice of voluntary compliance, and the request for review shall be considered to be an appeal for the purposes of section 251.12. (8) Subsection 251.101(7) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 363-364 Request treated as an appeal (7) The Minister may, if the Minister considers it appropriate in the circumstances, treat the request for review as an appeal of the inspector’s decision, in which case the Minister shall so inform any person who is affected by the payment order, the notice of unfounded complaint or the notice of voluntary compliance and shall refer the request for review to the Board, and the Board shall be considered to have an appeal before it for the purposes of section 251.12. (9) Subsection 251.101(7) of the Act is replaced by the following: Request treated as an appeal (7) The Minister may, if the Minister considers it appropriate in the circumstances, treat the request for review as an appeal of the inspector’s decision, in which case the Minister shall so inform any person who is affected by the payment order, the notice of unfounded complaint or the notice of voluntary compliance — or, in the case of a compliance order, the employer — and shall refer the request for review to the Board, and the Board shall be considered to have an appeal before it for the purposes of section 251.12. 364 (1) Subsection 251.11(1) of the Act is replaced by the following: Appeal 251.11 (1) A person who is affected by a decision made under subsection 251.101(3), other than a decision to rescind a notice of unfounded complaint or a notice of voluntary compliance, may appeal the decision to the Minister, in writing, within 15 days after the day on which the decision is served, but only on a question of law or jurisdiction. (2) Subsection 251.11(1) of the Act is replaced by the following: Appeal 251.11 (1) A person who is affected by a decision made under subsection 251.101(3), other than a decision to rescind a notice of unfounded complaint or a notice of voluntary compliance, may appeal the decision to the Board, in writing, within 15 days after the day on which the decision is served, but only on a question of law or jurisdiction. (3) Subsection 251.11(1) of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 364-365 Appeal 251.11 (1) Subject to subsection (1.1), a person who is affected by a decision made under subsection 251.101(3), other than a decision to rescind a notice of unfounded complaint or a notice of voluntary compliance, may appeal the decision to the Board, in writing, within 15 days after the day on which the decision is served. Exception — compliance order (1.1) Only an employer to whom a compliance order has been issued may appeal a decision with respect to that order. Scope of appeal (1.2) Except in the case of a compliance order, the person may appeal the decision only on a question of law or jurisdiction. (4) Subsection 251.11(3) of the Act is replaced by the following: Payment of amount and administrative fee (3) An employer or director of a corporation is not permitted to appeal a decision confirming or varying a payment order unless the employer or director pays to the Minister the amount indicated in the decision — and, in the case of an employer, the administrative fee specified in the decision in accordance with subsection 251.131(1) — less any amount and administrative fee paid under subsection 251.101(2). Security (3.1) The Minister may allow an employer or a director of a corporation to give security, in a form satisfactory to the Minister and on any conditions specified by the Minister, for all or part of the amount and fee referred to in subsection (3). 365 Section 251.12 of the Act is replaced by the following: Minister informed of appeal 251.111 (1) The Board shall inform the Minister in writing when an appeal is brought under subsection 251.11(1) and provide him or her with a copy of the request for appeal. Documents provided to Board — Minister (2) In an appeal under this Part, the Minister shall, on request of the Board, provide to the Board a copy of any document that the Minister relied on for the purpose of making the decision being appealed. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 365 Documents provided to Board — inspector (3) In an appeal under subsection 251.101(7), the inspector shall, on request of the Board, provide to the Board a copy of any document that the inspector relied on for the purpose of issuing the order or notice being appealed. Documents provided to Minister (4) The Board shall, on request of the Minister, provide to the Minister a copy of any document that is filed with the Board in the appeal. Power of Minister (5) The Minister may, in an appeal under this Part, present evidence and make representations to the Board. Board decision 251.12 (1) The Board may, in an appeal under this Part, make any order that is necessary to give effect to its decision, including an order to (a) confirm, rescind or vary, in whole or in part, the decision being appealed; (b) direct payment to any specified person of any wages or other amounts held in trust by the Receiver General that relate to the appeal; (c) award costs in the proceedings; and (d) order a party, whose conduct in the proceedings has, in the Board’s opinion, unduly delayed the determination of the appeal, to pay to the Receiver General an amount that is equal to all or part of the expenses incurred in the proceedings by the Board. Copies of decision to be sent (2) The Board shall send a copy of the decision, with reasons, to each party to the appeal and to the Minister. Order final (3) The order of the Board is final and shall not be questioned or reviewed in any court. No review by certiorari, etc. (4) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain the Board in any proceedings under this section. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 365-366 Wages (5) An employee who has been summoned by the Board to attend at an appeal proceeding under this Part and who attends is entitled to be paid by the employer at the employee’s regular rate of wages for the time spent at the proceeding that would otherwise have been time at work. Debt to Her Majesty (6) The expenses to be paid in accordance with an order issued under paragraph (1)(d) constitute a debt due to Her Majesty in right of Canada and are recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act. 366 Section 251.13 of the Act is replaced by the following: General Provisions — Orders Order to debtor of employer 251.13 (1) A regional director may issue a written order to a person who is or is about to become indebted to an employer to whom a payment order has been issued under subsection 251.1(1) to pay any amount owing to the employer, up to the total of the amount and the administrative fee indicated in the payment order, directly to the Minister within 15 days, in satisfaction of the payment order. Order to debtor of director of corporation (1.1) A regional director may issue a written order to a person who is or is about to become indebted to a director of a corporation to whom a payment order has been issued under subsection 251.1(1) to pay any amount owing to the director of the corporation, up to the amount indicated in the payment order, directly to the Minister within 15 days, in satisfaction of the payment order. Banks, etc. (2) For the purposes of this section, a bank or other financial institution that has money on deposit to the credit of an employer or a director of a corporation shall be deemed to be indebted to that employer or that director. Administrative fee 251.131 (1) A payment order made to an employer under subsection 251.1(1), and any decision made under subsection 251.101(3) or section 251.12 with respect to that payment order ordering the employer to pay wages or other amounts to an employee, shall specify the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 366-368 amount of the administrative fee — which is equal to the greater of $200 and 15% of the amounts indicated in the payment order or decision — that the employer is to pay. Payment (2) The employer is liable only for the administrative fee that is specified in a final decision and shall pay it — less any administrative fee paid under subsection 251.101(2) or 251.11(3) — to the Minister. In the case of any overpayment, the employer is entitled to its reimbursement. Debt to Her Majesty (3) An administrative fee constitutes a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act, including under subsection 251.13(1) and section 251.15. Return of security 251.132 The Minister, after a final decision has been made in respect of which security was given, (a) may apply, in whole or in part, the security given under subsection 251.101(2.1) or 251.11(3.1) toward any amounts — and, if the security was given by an employer, any administrative fee — owing under the final decision by the employer or a director of a corporation who gave the security; and (b) shall return the security or, if it was applied under paragraph (a), any part that remains after the amounts and, in the case of an employer, the administrative fee have been paid. 367 Section 251.14 of the Act is amended by adding the following after subsection (1): Consolidated Revenue Fund (1.1) The moneys that are equal to the administrative fees paid to the Minister under this Part with respect to matters that are the subject of a final decision shall be debited from the account referred to in subsection (1) and credited to the Consolidated Revenue Fund no later than the fiscal year following the fiscal year in which the final decision is made. 368 (1) Subsections 251.15(1) and (1.1) of the Act are replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 368-371 Enforcement of orders 251.15 (1) Any person who is affected by a payment order issued under subsection 251.1(1) or confirmed or varied under subsection 251.101(3) or by an order of the Board made under subsection 251.12(1), or the Minister, may, after the day provided in the order for compliance or after 15 days following the day on which the order is issued, made, confirmed or varied, whichever is later, file in the Federal Court a copy of the payment order, or a copy of the order of the Board, exclusive of reasons. Limitation (1.1) However, a payment order is not to be filed while it is or may be the subject of a review under subsection 251.101(1) or an appeal under subsection 251.101(7) or section 251.11 or if an order of the Board is made under paragraph 251.12(1)(a) relating to the payment order. (2) Subsection 251.15(2) of the Act is replaced by the following: Enforcement of orders to debtors (2) After the expiration of the 15 day period specified in an order to a debtor of the employer or of the director of a corporation made under section 251.13, the regional director may file a copy of the order in the Federal Court. 369 Section 251.16 of the Act is replaced by the following: Regulations 251.16 The Governor in Council may make regulations respecting the operation of sections 251.001 and 251.1 to 251.15. 370 Section 251.16 of the Act is replaced by the following: Regulations 251.16 The Governor in Council may make regulations respecting the operation of sections 251.001, 251.1, 251.101 and 251.13 to 251.15. 371 Section 251.17 of the Act is replaced by the following: Statutory Instruments Act 251.17 The Statutory Instruments Act does not apply in respect of payment orders, notices of unfounded 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 371-374 complaint, notices of voluntary compliance or orders to debtors. 372 Section 251.17 of the Act is replaced by the following: Statutory Instruments Act 251.17 The Statutory Instruments Act does not apply in respect of internal audit orders, payment orders, notices of unfounded complaint, notices of voluntary compliance or orders to debtors. 373 Section 251.17 of the Act is replaced by the following: Statutory Instruments Act 251.17 The Statutory Instruments Act does not apply in respect of internal audit orders, compliance orders, payment orders, notices of unfounded complaint, notices of voluntary compliance or orders to debtors. 374 (1) The portion of subsection 253(1) of the Act before paragraph (b) is replaced by the following: Notice to furnish information 253 (1) Where the Minister is authorized to require a person to furnish information under this Part or the regulations, the Minister may require the information to be furnished by a notice to that effect served by personal service, by registered mail addressed to the latest known address of the addressee, or by any other means prescribed by regulation, and that person (a) if the notice is sent by registered mail, shall be deemed to have received the notice on the seventh day after the day on which it was mailed; and (2) Subsection 253(2) of the Act is replaced by the following: Proof of service (2) A certificate purporting to be signed by the Minister certifying that a notice was sent by registered mail or by any other means prescribed by regulation to the addressee, accompanied by a true copy of the notice and by an identifying post office certificate of the registration or other proof, prescribed by regulation, that the notice has been sent or received, is admissible in evidence and is proof of the statements contained in the certificate, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 374-377 without proof of the signature or official character of the person appearing to have signed the certificate. (3) Section 253 of the Act is amended by adding the following after subsection (5): Statutory Instruments Act (6) The Statutory Instruments Act does not apply in respect of notices referred to in subsection (1). 375 Paragraph 256(1)(a) of the Act is replaced by the following: (a) contravenes any provision of this Part or the regulations, other than a provision of Division IX, subsection 239.1(2), 239.2(1), 251.001(9) or 252(2) or any regulation made under section 227 or paragraph 264(a); 376 The Act is amended by adding the following after section 259.1: Publication 259.2 The Minister may, subject to the regulations, make public the name of an employer convicted of an offence under this Part, the nature of the offence, the punishment imposed and any other information prescribed by regulation. 377 The Act is amended by adding the following after section 267: PART IV Administrative Monetary Penalties Interpretation and Application Definitions 268 (1) The following definitions apply in this Part. department means a department in, or other portion of, the federal public administration to which Part II applies, as provided under subsection 123(2). (ministère) employer has, (a) in respect of a violation related to Part II, the same meaning as in subsection 122(1); and (b) in respect of a violation related to Part III, the same meaning as in section 166. (employeur) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 penalty means an administrative monetary penalty imposed under this Part for a violation. (pénalité) Application — department (2) This Part applies to a department and to persons employed in a department only in respect of a violation that is related to Part II. Purpose Purpose of Part 269 The purpose of this Part is to establish, as an alternative to the existing penal system and as a supplement to existing enforcement measures, a fair and efficient penalty system to promote compliance with Parts II and III of this Act. Regulations Regulations 270 (1) The Governor in Council may make regulations (a) designating as a violation that may be proceeded with in accordance with this Part (i) the contravention of any specified provision of Part II or III or of any regulations made under those Parts, (ii) the contravention of any direction, or of any direction of any specified class of directions, issued under any provision of Part II or of any regulations made under that Part, (iii) the contravention of any order, or of any order of any specified class of orders, made or issued under any provision of Part II or III or of any regulations made under those Parts, or (iv) the failure to comply with any condition, or with any condition of any specified class of conditions, of a permit issued under section 176; (b) respecting the determination of, or the method of determining, the amount payable as the penalty for each violation, penalties which may be different for individuals and for other persons and departments; (c) respecting the circumstances under which, the criteria by which and the manner in which a penalty may be reduced; (d) respecting the determination of a lesser amount than the penalty imposed that may be paid in 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 complete satisfaction of the penalty if paid within the time and manner prescribed by regulation; (e) respecting the service of documents required or authorized under this Part, including the manner and proof of service and the circumstances under which documents are deemed to be served; (f) prescribing the method of calculating and determining the regular rate of wages for the purpose of section 288; (g) prescribing anything that by this Part is to be prescribed; and (h) generally, for carrying out the purposes and provisions of this Part. Restriction — amount of penalty (2) The amount that may be determined under any regulations made under paragraph (1)(b) as the penalty for a violation may not exceed $250,000. Minister’s Powers Powers regarding notices of violation 271 The Minister may (a) establish the form of notices of violation; (b) designate persons, or classes of persons, who are authorized to issue notices of violation; and (c) establish, in respect of each violation, a short-form description to be used in notices of violation. Delegation 272 Subject to any terms and conditions specified by the Minister, the Minister may delegate to any qualified person or class of persons any of the powers the Minister is authorized to exercise or any of the duties or functions the Minister is authorized to perform for the purposes of this Part. Commission of Violations Violations 273 Every person or department that contravenes or fails to comply with a provision, direction, order or condition designated by regulations made under paragraph 270(1)(a) commits a violation and is liable to a penalty of an amount to be determined in accordance with the regulations. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 Liability of parties to violation 274 If a corporation or a department commits a violation, any of the following persons who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to the violation and is liable to a penalty of an amount to be determined in accordance with the regulations, whether or not the corporation or department has been proceeded against in accordance with this Part: (a) any officer, director, agent or mandatary of the corporation; (b) any senior official in the department; or (c) any other person exercising managerial or supervisory functions in the corporation or department. Proof of violation — employees 275 In any proceedings under this Part against a person or a department in relation to a violation, it is sufficient proof of the violation to establish that it was committed by an employee or agent or mandatary of the person or of the department, whether or not the employee or agent or mandatary has been identified or proceeded against in accordance with this Part. Notice of violation 276 (1) If a person designated under paragraph 271(b) has reasonable grounds to believe that a person or a department has committed a violation, the designated person may issue a notice of violation and shall cause it to be served on the person or on the department in accordance with the regulations. Contents (2) The notice of violation shall (a) name the person or department that is believed to have committed the violation; (b) set out the relevant facts surrounding the violation; (c) set out the penalty for the violation; (d) inform the person or department of their right to contest the facts of the alleged violation or the penalty, by way of review and appeal, and of the procedure to be followed to exercise that right; (e) inform the person or department of the manner of paying the penalty set out in the notice; and (f) inform the person or department that, if they do not pay the penalty or exercise their right referred to 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 in paragraph (d), they will be considered to have committed the violation and that they are liable for the penalty set out in the notice. Copy given by employer (3) If the notice of violation is issued to an employer who has committed a violation by contravening a provision of Part II or a direction issued under that Part, the employer shall, without delay, give a copy of the notice to the work place committee or health and safety representative, as those terms are defined in subsection 122(1). Rules About Violations Certain defences not available 277 (1) A person or department named in a notice of violation does not have a defence by reason that the person or the department (a) exercised due diligence to prevent the violation; or (b) reasonably and honestly believed in the existence of facts that, if true, would exonerate the person or the department. Common law principles (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under Part II or III applies in respect of a violation to the extent that it is not inconsistent with this Part. Continuing violation 278 A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued. Violation or offence 279 (1) Proceeding with any act or omission as a violation under this Part precludes proceeding with it as an offence under Part II or III, and proceeding with it as an offence under Part II or III precludes proceeding with it as a violation under this Part. For greater certainty (2) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation. Limitation period 280 No notice of violation in respect of a violation may be issued more than two years after the day on which the subject-matter of the violation arises. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 Reviews Request for review 281 A person or a department that is served with a notice of violation may, within 30 days after the day on which the notice is served, or within any longer period that the Minister allows, make a request, in the manner prescribed by regulation, to the Minister for a review of the penalty or the facts of the alleged violation, or both. Variation or cancellation of notice of violation 282 At any time before a request for review in respect of a notice of violation comes before the Minister, a person designated under paragraph 271(b) may cancel the notice of violation or correct an error in it. Review 283 (1) On receipt of a request for review made under section 281, the Minister shall conduct the review of the notice of violation. Rules of procedure (2) The Minister may make rules governing the procedure with respect to reviews under this Part. Request treated as an appeal (3) The Minister may, if the Minister considers it appropriate in the circumstances, treat the request for review as an appeal, in which case the Minister shall so inform the applicant and refer the request for review to the Board, and the Board shall be considered to have an appeal before it for the purposes of this Part. Object of review 284 (1) The Minister shall determine, as the case may be, whether the amount of the penalty for the violation was determined in accordance with the regulations or whether the applicant committed the violation, or both. Correction of penalty (2) If the Minister determines that the amount of the penalty for the violation was not determined in accordance with the regulations, the Minister shall correct the amount of the penalty. Decision (3) The Minister shall make a decision in writing and serve the applicant with a copy of the decision, with reasons. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 Copy given by employer (4) If a decision is made with respect to a notice of violation referred to in subsection 276(3), the employer shall, without delay, give a copy of the decision to the work place committee or health and safety representative, as those terms are defined in subsection 122(1). Obligation to pay (5) If the Minister determines that the applicant committed the violation, the applicant is liable for the penalty that is set out in the decision. Decision final (6) Subject to the right of appeal under section 285, every decision made under this section is final and shall not be questioned or reviewed in any court. Appeal Appeal 285 (1) A person or a department may appeal a decision referred to in section 284 to the Board, in writing, within 15 days after the day on which the decision is served. Grounds of appeal (2) The request for appeal shall contain a statement of the grounds of appeal. Minister informed of appeal 286 (1) The Board shall inform the Minister in writing when an appeal is brought under subsection 285(1) and provide him or her with a copy of the request for appeal. Documents provided to Board (2) The Minister shall, on request of the Board, provide to the Board a copy of any document that the Minister relied on for the purpose of making the decision being appealed. Documents provided to Minister (3) The Board shall, on request of the Minister, provide to the Minister a copy of any document that is filed with the Board in the appeal. Power of Minister (4) The Minister may, in an appeal, present evidence and make representations to the Board. Object of appeal 287 (1) In an appeal under this Part, the Board shall determine, as the case may be, whether the amount of the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 penalty for the violation was determined in accordance with the regulations or whether the appellant committed the violation, or both. Correction of penalty (2) If the Board determines that the amount of the penalty for the violation was not determined in accordance with the regulations, the Board shall correct the amount of the penalty. Decision (3) The Board shall make a decision in writing and provide the appellant and the Minister with a copy of the decision, with reasons. Copy given by employer (4) If a decision is made with respect to a notice of violation referred to in subsection 276(3), the employer shall, without delay, give a copy of the decision to the work place committee or health and safety representative, as those terms are defined in subsection 122(1). Obligation to pay (5) If the Board determines that the appellant committed the violation, the appellant is liable for the penalty that is set out in the decision. Decision final (6) Every decision made under this section is final and shall not be questioned or reviewed in any court. No review by certiorari, etc. (7) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain the Board in any proceedings under this section. Wages 288 An employee who has been summoned by the Board to attend at an appeal proceeding under this Part and who attends is entitled to be paid by the employer at the employee’s regular rate of wages for the time spent at the proceeding that would otherwise have been time at work. Responsibility Payment 289 If a person or a department pays the penalty set out in a notice of violation, the person or the department is 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Section 377 considered to have committed the violation and proceedings in respect of it are ended. Failure to act 290 A person or a department that neither pays a penalty imposed under this Part nor requests a review or an appeal in the specified time is considered to have committed the violation and is liable for the penalty. Recovery of Penalties Debt to Her Majesty 291 (1) A penalty constitutes a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction. Limitation period (2) No proceedings to recover the debt may be instituted more than five years after the day on which the debt becomes payable. Certificate 292 (1) The Minister may issue a certificate certifying the unpaid amount of any debt referred to in subsection 291(1). Registration (2) Registration in the Federal Court or in any other court of competent jurisdiction of a certificate issued under subsection (1) has the same force and effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs. General Admissibility of documents 293 In the absence of evidence to the contrary, a document that appears to be a notice of violation issued under subsection 276(1) is presumed to be authentic and is proof of its contents in any proceeding in respect of a violation. Burden of proof 294 If the facts of a violation are reviewed or appealed, the person who issued the notice of violation shall establish, on a balance of probabilities, that the applicant or the appellant committed the violation. Publication 295 The Minister may, subject to the regulations, make public the name of an employer who committed a 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Canada Labour Code Sections 377-379 violation under this Part, the nature of the violation, the amount of the penalty imposed and any other information prescribed by regulation. 2005, c. 47, s. 1 Wage Earner Protection Program Act 378 Subsection 2(1) of the Wage Earner Protection Program Act is amended by adding the following in alphabetical order: Board means the Canada Industrial Relations Board established by section 9 of the Canada Labour Code. (Conseil) 379 The heading before section 14 and sections 14 and 15 of the Act are replaced by the following: Appeal to Board Board 13.1 For the purposes of sections 14 to 20, the Board is considered to be composed of only the Chairperson and Vice-Chairpersons as its members. Appeal on question of law or jurisdiction 14 (1) The applicant may appeal the decision made by the Minister under section 12 to the Board only on a question of law or jurisdiction. Regulations (2) The Board may make regulations respecting the period during which and the manner in which an appeal may be made. Assignment or appointment 14.1 (1) The Chairperson of the Board may assign a member of the Board or appoint an external adjudicator to determine an appeal that comes before the Board. Powers, duties and functions (2) A member of the Board and an external adjudicator have all the powers, duties and functions that are conferred on the Board by this Act with respect to any matter that has been assigned to them or for which they have been appointed, as the case may be, other than the power referred to in subsection 14(2). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Wage Earner Protection Program Act Sections 379-380 Decision of member or external adjudicator (3) A decision made by a member of the Board or an external adjudicator under this Act is deemed to be a decision made by the Board. Limitation of liability (4) A member of the Board and an external adjudicator are not personally liable, either civilly or criminally, for anything done or omitted to be done by them in good faith in the exercise or purported exercise of any power, or in the performance or purported performance of any duty or function, conferred on them under this Act. Remuneration and expenses — external adjudicator (5) An external adjudicator shall be paid the remuneration and the fees that may be fixed by the Chairperson of the Board and is entitled to be paid reasonable travel and living expenses incurred by them in the course of their duties while absent from their ordinary place of residence. Minister informed of appeal 15 (1) The Board shall inform the Minister in writing when an appeal is brought and provide him or her with a copy of the request for appeal. Documents provided to Board (2) The Minister shall, on request of the Board, provide to the Board a copy of any document that the Minister relied on for the purpose of making the decision being appealed. Documents provided to Minister (3) The Board shall, on request of the Minister, provide to the Minister a copy of any document that is filed with the Board in the appeal. Power of Minister (4) The Minister may, in an appeal, make representations to the Board in writing. 380 Sections 17 to 20 of the Act are replaced by the following: Board’s decision 17 The Board may confirm, vary or rescind the decision made by the Minister under section 12. If the Board varies the decision, the Minister shall make any payment resulting from the variation. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Wage Earner Protection Program Act Sections 380-385 Copies of decision 18 The Board shall send a copy of its decision, and the reasons for it, to each party to the appeal and to the Minister. No review by certiorari, etc. 19 No order may be made to review, prohibit or restrain and no process entered or proceeding taken to question, review, prohibit or restrain in any court — whether by way of injunction, certiorari, prohibition, quo warranto or otherwise — an action of the Board under this Act. Decision is final 20 The Board’s decision is final and shall not be questioned or reviewed in any court. 381 Paragraph 41(g) of the Act is replaced by the following: (g) respecting the period during which and the manner in which a review may be requested under section 11; Transitional Provisions Appeals — subsection 146(1) 382 The Canada Labour Code, as it read immediately before the day on which this section comes into force, applies with respect to any appeal made before that day under subsection 146(1) of that Act. Complaints — subsection 240(1) 383 The Canada Labour Code, as it read immediately before the day on which this section comes into force, applies with respect to any complaint made before that day under subsection 240(1) of that Act. Complaints relating to reprisal 384 Division XIV.1 of Part III of the Canada Labour Code does not apply with respect to reprisals carried out before the day on which this section comes into force. Evidence 385 Subsection 251(1.2) of the Canada Labour Code does not apply with respect to an inspection, carried out under Part III of that Act, that began before the day on which this section comes into force or that began as a result of a complaint made before that day under subsection 251.01(1) of that Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Transitional Provisions Sections 386-391 Compliance orders 386 Section 251.06 of the Canada Labour Code does not apply to contraventions committed before the day on which this section comes into force. Review and appeal 387 The Canada Labour Code, as it read immediately before the day on which this section comes into force, applies with respect to any request for appeal made before that day under subsection 251.11(1) of that Act and any request for review that the Minister of Labour has decided, before that day, to treat as an appeal under subsection 251.101(7) of that Act. Order to debtor of director of corporation 388 Subsection 251.13(1.1) of the Canada Labour Code does not apply with respect to a payment order issued as a result of an inspection, carried out under Part III of that Act, that began before the day on which this section comes into force or that began as a result of a complaint made before that day under subsection 251.01(1) of that Act. Administrative fee 389 Section 251.131 of the Canada Labour Code does not apply with respect to (a) a payment order issued as a result of an inspection, carried out under Part III of that Act, that began before the day on which this section comes into force or that began as a result of a complaint made before that day under subsection 251.01(1) of that Act; or (b) a decision made under section 251.101 or 251.12 of that Act relating to the payment order. Part IV of the Canada Labour Code 390 Part IV of the Canada Labour Code does not apply to violations committed before the day on which this section comes into force. Appeals — eligibility to receive payments 391 The Wage Earner Protection Program Act, as it read immediately before the day on which this section comes into force, applies with 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Transitional Provisions Sections 391-393 respect to any appeal made before that day under section 14 of that Act. Persons who occupy a position 392 (1) All of the persons who occupy a position within the Department of Employment and Social Development and carry out powers, duties or functions that are in whole or in part in support of or related to the powers, duties and functions of appeals officers under Part II of the Canada Labour Code or those of the Minister of Labour under sections 242, 251.11 and 251.12 of that Act immediately before the day on which this section comes into force occupy their position within the Administrative Tribunals Support Service of Canada beginning on a day to be fixed by order of the Governor in Council. No change in status (2) Nothing in subsection (1) is to be construed as affecting the status of such a person, except that the person, beginning on the day fixed by the order referred to in subsection (1), occupies their position within the Administrative Tribunals Support Service of Canada. Transfer of money (3) Any money that is appropriated by an Act of Parliament, for the fiscal year that includes the day fixed by the order referred to in subsection (1), to defray any charges and expenses of the Department of Employment and Social Development related to an appeal under Part II or III of the Canada Labour Code or to the powers, duties and functions of the Minister of Labour under sections 242, 251.11 and 251.12 of that Act and that is unexpended on that day is deemed, on that day, to be an amount appropriated to defray the charges and expenses of the Administrative Tribunals Support Service of Canada. Persons who occupy a position 393 (1) All of the persons who occupy a position within the Department of Employment and Social Development and carry out powers, duties or functions that are in whole or in part in support of or related to the powers, duties and functions of the Minister of Labour under sections 14 to 20 of the Wage Earner Protection Program Act immediately before the day on which this section comes into force occupy their position within the Administrative Tribunals Support Service of Canada beginning on a day to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Transitional Provisions Sections 393-395 No change in status (2) Nothing in subsection (1) is to be construed as affecting the status of such a person, except that the person, beginning on the day fixed by the order referred to in subsection (1), occupies their position within the Administrative Tribunals Support Service of Canada. Transfer of money (3) Any money that is appropriated by an Act of Parliament, for the fiscal year that includes the day fixed by the order referred to in subsection (1), to defray any charges and expenses of the Department of Employment and Social Development related to an appeal under sections 14 to 20 of the Wage Earner Protection Program Act and that is unexpended on that day is deemed, on that day, to be an amount appropriated to defray the charges and expenses of the Administrative Tribunals Support Service of Canada. Consequential Amendments R.S., c. 33 (2nd Supp.) Parliamentary Employment and Staff Relations Act 394 Paragraph 88(b) of the Parliamentary Employment and Staff Relations Act is repealed. R.S., c. 24 (3rd Supp.), Part III; 2012, c. 31, par. 282(a) Hazardous Materials Information Review Act 395 Paragraph 46(2)(c) of the Hazardous Materials Information Review Act is replaced by the following: (c) any official of the Department of Employment and Social Development, the Canada Industrial Relations Board in the exercise of its powers or the performance of its duties or functions under Part II of the Canada Labour Code, other than the powers, duties and functions set out in sections 133 and 134 of that Act, or any person to whom powers, duties or functions have been delegated by the Minister of Labour under subsection 140(1) of that Act, or under an agreement entered into under subsection 140(2) of that Act, for the purposes of the administration or enforcement of Part II of that Act; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Consequential Amendments Sections 396-398 2003, c. 22, s. 2 Public Service Labour Relations Act 396 (1) Subparagraph 240(a)(ii) of the Public Service Labour Relations Act is replaced by the following: (ii) for the purposes of sections 133 and 134 of the Canada Labour Code, Board is to be read as a reference to the Public Service Labour Relations and Employment Board, (2) Paragraph 240(b) of the Act is repealed. 2005, c. 46 Public Servants Disclosure Protection Act 397 Paragraph 51(b) of the Public Servants Disclosure Protection Act is replaced by the following: (b) the Canada Industrial Relations Board from considering a complaint under section 242 of the Canada Labour Code. Coordinating Amendments This Act 398 (1) If subsection 320(1) comes into force on the same day as subsection 320(2), then subsections 320(1), 322(1), 325(2), 329(2), 363(8) and 364(2) are deemed to have come into force before subsections 320(2), 322(2), 325(3), 329(3), 363(9) and 364(3). (2) If subsection 356(1) comes into force on the same day as subsection 356(2), then subsection 356(1) is deemed to have come into force before subsection 356(2). (3) If subsection 363(1) comes into force on the same day as subsection 363(2), then subsections 363(1) and (4) are deemed to have come into force before subsections 363(2), (5) and (6). (4) If subsection 363(7) comes into force on the same day as subsection 363(8), then subsections 363(7) and 364(1) are deemed to have come into force before subsections 363(8) and 364(2). (5) If section 369 comes into force on the same day as section 370, then section 369 is deemed to have come into force before section 370. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Coordinating Amendments Sections 398-401 (6) If section 371 comes into force on the same day as section 372, then section 371 is deemed to have come into force before section 372. (7) If section 372 comes into force on the same day as section 373, then section 372 is deemed to have come into force before section 373. 2010, c. 12 399 (1) In this section, other Act means the Jobs and Economic Growth Act. (2) If subsection 338(1) of this Act comes into force before any of sections 2172 to 2177 of the other Act, then any of those sections 2172 to 2177 that is not in force on the day that subsection 338(1) comes into force is repealed. (3) If subsection 338(1) of this Act comes into force on the same day as any of sections 2172 to 2177 of the other Act, then any of those sections that comes into force on that same day is deemed never to have come into force and is repealed. 2015, c. 36 400 On the first day on which section 375 of this Act and subsection 91(1) of the Economic Action Plan 2015 Act, No. 1 are in force, paragraph 256(1)(a) of the Canada Labour Code is replaced by the following: (a) contravenes any provision of this Part or the regulations, other than a provision of Division IX, subsection 239.1(2), 239.2(1), 251.001(9) or 252(2) or any regulation made under section 227 or paragraph 264(1)(a) or (a.1); Bill S-201 401 If Bill S-201, introduced in the 1st session of the 42nd Parliament and entitled the Genetic Non-Discrimination Act, receives royal assent, then, on the first day on which both section 8 of that Act and section 354 of this Act are in force, (a) Section 247.99 of the Canada Labour Code is amended by adding the following after subsection (6): Powers of adjudicator (6.1) An adjudicator to whom a complaint has been referred under subsection (6) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Coordinating Amendments Section 401 (a) shall consider the complaint within such time as the Governor in Council may by regulation prescribe; (b) shall determine the procedure to be followed, but shall give full opportunity to the parties to the complaint to present evidence and make submissions to the adjudicator and shall consider the information relating to the complaint; and (c) has, in relation to any complaint before the adjudicator, the powers conferred on the Board, in relation to any proceeding before the Board, under paragraphs 16(a), (b) and (c). (b) Subsection 247.99(9) of the Act is replaced by the following: Decisions not to be reviewed by court (9) Every order of an adjudicator appointed under subsection (6) is final and shall not be questioned or reviewed in any court. No review by certiorari, etc. (10) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain an adjudicator in any proceedings of the adjudicator under this section. Enforcement of orders (11) Any person affected by an order of an adjudicator under subsection (8), or the Minister on the request of any such person, may, after fourteen days from the date on which the order is made, or from the date provided in it for compliance, whichever is the later date, file in the Federal Court a copy of the order, exclusive of the reasons for it. Registration (12) On filing in the Federal Court under subsection (11), an order of an adjudicator shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken on it, as if the order were a judgment obtained in that Court. Civil remedy (13) No civil remedy of an employee against his employer is suspended or affected by the making of a complaint under this section. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 17 Labour and Employment Laws Coming into Force Section 402 Coming into Force Order in council 402 (1) Subsections 318(1), 320(1) and 322(1), section 323, subsections 324(2) and 325(1) and (2), sections 326 to 328, subsections 329(1) and (2), sections 330 to 337, subsection 338(1), sections 339 to 349 and 351 to 355, subsections 356(2) and (3), 363(8) and 364(2), section 365, subsection 368(1) and sections 370, 378 to 383, 387 and 391 to 397 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the days fixed in accordance with subsections (2) and (6). Order in council (2) Subsection 318(2), section 319, subsections 338(2) and 356(1) and section 384 come into force on a day to be fixed by order of the Governor in Council. Order in council (3) Subsections 320(2), 322(2), 325(3) and 329(3), section 360, subsections 363(2), (5), (6) and (9) and 364(3) and sections 373, 377, 386 and 390 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day fixed in accordance with subsection (1). Order in council (4) Sections 350 and 376 come into force on a day to be fixed by order of the Governor in Council. Order in council (5) Sections 357 and 359, subsections 361(1), (3) and (4), section 362, subsections 363(1), (4) and (7) and 364(1) and sections 371, 374 and 385 come into force on a day to be fixed by order of the Governor in Council. Order in council (6) Section 358, subsection 361(2) and sections 369, 372 and 375 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day fixed in accordance with subsection (5). Order in council (7) Subsections 363(3) and 364(4), sections 366 and 367, subsection 368(2) and sections 388 and 389 come into force on a day to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Section 403 DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Enactment 403 The Canada Infrastructure Bank Act is enacted as follows: An Act to establish the Canada Infrastructure Bank Short Title Short title 1 This Act may be cited as the Canada Infrastructure Bank Act. Interpretation Definitions 2 The following definitions apply in this Act. Bank means the Canada Infrastructure Bank established by subsection 5(1). (Banque) Board means the board of directors of the Bank. (conseil) Chairperson means the Chairperson of the Board. (président) Chief Executive Officer means the chief executive officer of the Bank. (premier dirigeant) designated Minister means the member of the Queen’s Privy Council for Canada who is designated as the Minister under section 3. (ministre désigné) director means a member of the Board. (administrateur) infrastructure projects means projects described in section 6. (projets d’infrastructures) joint venture means an association of persons, when the relationship among those associated persons does not constitute a corporation, partnership or trust. (coentreprise) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 person includes a trust, a partnership, a joint venture and an association of natural persons or corporations. (personne) subsidiary means a subsidiary within the meaning of subsection 83(6) of the Financial Administration Act. (filiale) wholly-owned subsidiary has the same meaning as in subsection 83(1) of the Financial Administration Act. (filiale à cent pour cent) Designation and Appropriate Minister Designation of Minister 3 The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of this Act. Appropriate Minister 4 The designated Minister is the appropriate Minister for the Bank for the purposes of Part X of the Financial Administration Act. Establishment and Organization of the Bank Status of the Bank Establishment 5 (1) A corporation is established to be known as the Canada Infrastructure Bank. Head office (2) The head office of the Bank is to be at a place in Canada that is designated by the Governor in Council. Capacity (3) The Bank has the capacity and, subject to the provisions of this Act and of the regulations, the rights, powers and privileges of a natural person. Not a Crown agent (4) The Bank is not an agent of Her Majesty in right of Canada, except when (a) giving advice about investments in infrastructure projects to ministers of Her Majesty in right of Canada, to departments, boards, commissions and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 agencies of the Government of Canada and to Crown corporations as defined in subsection 83(1) of the Financial Administration Act; (b) collecting and disseminating data in accordance with paragraph 7(1)(g); (c) acting on behalf of the government of Canada in the provision of services or programs, and the delivery of financial assistance, specified in paragraph 18(h); and (d) carrying out any activity conducive to the carrying out of its purpose that the Governor in Council may, by order, specify. Purpose and Functions Purpose of Bank 6 The purpose of the Bank is to invest, and seek to attract investment from private sector investors and institutional investors, in infrastructure projects in Canada or partly in Canada that will generate revenue and that will be in the public interest by, for example, supporting conditions that foster economic growth or by contributing to the sustainability of infrastructure in Canada. Functions of Bank 7 (1) In order to carry out its purpose, the Bank may do only the following: (a) structure proposals and negotiate agreements, with the proponents of infrastructure projects and with investors in infrastructure projects, with regard to the Government of Canada’s support of those projects; (b) invest in infrastructure projects, including by means of innovative financial tools, and seek to attract investment from private sector investors and institutional investors in infrastructure projects; (c) receive unsolicited proposals for infrastructure projects that come from private sector investors or from institutional investors; (d) support infrastructure projects by, among other things, fostering evidence-based decision making; (e) act as a centre of expertise on infrastructure projects in which private sector investors or institutional investors are making a significant investment; (f) provide advice to all levels of governments with regard to infrastructure projects; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 (g) collect and disseminate data, in collaboration with the federal, provincial and municipal governments, in order to monitor and assess the state of infrastructure in Canada and to better inform investment decisions in regards to infrastructure projects; and (h) perform any other function conducive to the carrying out of its purpose that the Governor in Council may, by order, specify. Cessation of order’s effect (2) An order made under paragraph (1)(h) ceases to have effect on the second anniversary of the day on which it is made. Board and Chief Executive Officer Membership of Board 8 (1) The Bank has a board of directors composed of the Chairperson and not fewer than eight, but not more than 11, other directors. Appointment of directors (2) Each director, other than the Chairperson, is to be appointed by the Governor in Council to hold office during pleasure for a term of not more than four years that will ensure, to the extent possible, the expiry in any one year of the terms of office of not more than one half of the directors. Appointment of Chairperson (3) The Chairperson is to be appointed by the Governor in Council to hold office during pleasure for a term that the Governor in Council considers appropriate. Committee to advise designated Minister (4) The designated Minister may establish a committee to provide him or her with advice on the appointment of directors. The committee is to include representation from the Board. Consultation (5) The designated Minister may undertake any other consultations as to the appointment of directors that he or she considers appropriate, including with the provinces. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 Termination of appointment (6) The Governor in Council may terminate the appointment of, or remove or suspend, any director. However, before terminating the appointment of or removing or suspending the Chairperson, the Governor in Council must consult with the Board. The Board may also, with the approval of the Governor in Council, terminate the appointment of or remove or suspend any director. Reappointment (7) A director is eligible for reappointment. Continuation in office (8) Despite subsection (2), if a director is not appointed to take office on the expiry of the term of an incumbent director, other than the Chairperson, the incumbent director continues in office until their successor is appointed. Absence or incapacity (9) If the Chairperson is absent or unable to act or the office of Chairperson is vacant, the Board may authorize one of the other directors to act as Chairperson, but that person is not authorized to act as Chairperson for a period of more than 180 days without the approval of the Governor in Council. Appointment of Chief Executive Officer 9 (1) A Chief Executive Officer is to be appointed by the Board to hold office during pleasure for a term to be fixed by the Board. The appointment and term of office are subject to the approval of the Governor in Council. Termination of appointment (2) The Governor in Council may, after consulting with the Board, terminate the appointment of or remove or suspend the Chief Executive Officer. The Board may also, with the approval of the Governor in Council, terminate the appointment of or remove or suspend the Chief Executive Officer. Full-time office (3) The Chief Executive Officer must carry out the duties and functions of his or her office on a full-time basis. Absence or incapacity (4) If the Chief Executive Officer is absent or unable to act or the office of Chief Executive Officer is vacant, the designated Minister may appoint a person to act as Chief Executive Officer. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 Attendance at Board meetings (5) Subject to any by-law of the Board, the Chief Executive Officer may attend meetings of the Board or any committee of the Board. Ineligibility for appointment 10 An individual is not eligible to be appointed as the Chief Executive Officer, the Chairperson or a director if the individual (a) is less than 18 years of age; (b) has the status of bankrupt; (c) is employed in the federal public administration or by a provincial, municipal or local authority; or (d) is a member of the Senate or House of Commons or a member of the legislature of a province. No overlapping offices 11 An individual is not entitled to hold the offices of Chairperson and Chief Executive Officer at the same time. Remuneration 12 (1) The Chief Executive Officer, the Chairperson and each of the other directors are to be paid by the Bank remuneration for their services in respect of that office. Rate of remuneration — directors (2) The rate of any remuneration paid to the Chairperson and the other directors is to be fixed by the Governor in Council. Rate of remuneration — Chief Executive Officer (3) The rate of any remuneration paid to the Chief Executive Officer is to be fixed by the Governor in Council on the recommendation of the Board. In making its recommendation, the Board is to take into account the skills required for the position and the remuneration paid to persons in comparable positions. Expenses of directors 13 (1) Each director is to be paid by the Bank reasonable travel and living expenses incurred in connection with their services in respect of that office while absent from their ordinary place of residence. Expenses of Chief Executive Officer (2) The Chief Executive Officer is to be paid by the Bank reasonable travel and living expenses incurred in connection with his or her services in respect of that office while absent from his or her ordinary place of work. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 Accident compensation 14 The directors and the officers and the employees of the Bank are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act. Committees of Board 15 (1) The Board may establish any committee of the Board that it considers advisable and may determine the committee’s composition and duties and the tenure of its members. Delegation of powers (2) The Board may delegate powers to any of its committees to act in all matters that are not by this Act or any by-law or resolution specifically reserved to the Board. Financial Management and Control Corporate plans 16 The Bank must annually submit a corporate plan to the designated Minister, who may, with the concurrence of the Minister of Finance, recommend it for the approval of the Governor in Council. Operating budgets 17 (1) The Bank must annually submit an operating budget for its next financial year to the designated Minister, who may, with the concurrence of the Minister of Finance, recommend it for the approval of the Treasury Board. Capital budgets (2) The Bank must annually submit a capital budget for its next financial year to the designated Minister, who may, with the concurrence of the Minister of Finance, recommend it for the approval of the Treasury Board. Certain Bank Powers Investments, etc. 18 In particular, the Bank may (a) make investments in any person, including by way of equity investment in, or by making a loan to or acquiring a derivative from, the person; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 (b) extend credit or provide liquidity to, or in relation to, any person; (c) acquire and deal with as its own any investment made by another person; (d) acquire and hold security or a security interest, including, in Quebec, a right in a security, of any kind and in any form for the due discharge of obligations under an investment or agreement that it makes; (e) surrender the security, security interest or right in the security and acquire and hold, in exchange, security or a security interest, including, in Quebec, a right in a security, of any kind and in any form; (f) realize the security, security interest or right in the security made, acquired or held by it on the investment or agreement; (g) exchange, sell, assign, convey or otherwise dispose of, or lease, the investment, agreement, security, security interest or right in a security; (h) enter into arrangements or agreements with, and act as agent or mandatary for, any department or agency of the government of Canada or a province, or any other body or person, for the provision of services or programs to, by, on behalf of or jointly with that body or person, and deliver financial assistance on their behalf under the arrangement or agreement; (i) accept any interest or rights in real property or personal property or any rights in immovables or movables as security for the due performance of any arrangement or agreement with the Bank; (j) determine and charge interest and any other form of compensation for services provided by the Bank in the exercise of its powers or the performance of its functions under this Act; (k) acquire and dispose of any interest or right in any entity by any means; and (l) acquire, hold, exchange, sell or otherwise dispose of, or lease, any interest or rights in real property or personal property or any right in immovables or movables and retain and use the proceeds of disposition. Loan guarantees — limitation 19 (1) The Bank may provide loan guarantees only in accordance with this section. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 Recommendation (2) The Bank may recommend to the designated Minister that the Minister of Finance approve a loan guarantee with respect to an infrastructure project. If the designated Minister concurs with the recommendation, he or she is to recommend to the Minister of Finance that the Minister of Finance approve the loan guarantee. Power to provide (3) The Bank may provide a loan guarantee with respect to an infrastructure project only if the Minister of Finance approves the loan guarantee. Non-application of provision 20 Section 91 of the Financial Administration Act does not apply to or in respect of the Bank or a wholly-owned subsidiary of the Bank. Subsidiaries — Ministerial authorization 21 The Bank or a wholly-owned subsidiary of the Bank may procure the incorporation, dissolution or amalgamation of its subsidiaries, and acquire or dispose of any shares in its subsidiaries, only with the concurrence of the designated Minister. Powers of Minister of Finance Recommendation for loan or loan guarantee 22 (1) The Bank may recommend to the designated Minister that the Minister of Finance make a loan or provide a loan guarantee with respect to an infrastructure project. If the designated Minister concurs with the recommendation, he or she is to recommend to the Minister of Finance that the Minister of Finance make the loan or provide the loan guarantee. Power to make loan or provide loan guarantee (2) The Minister of Finance, on the recommendation of the designated Minister, may make a loan or provide a loan guarantee with respect to the infrastructure project. Capital payments 23 The Minister of Finance may pay to the Bank, out of the Consolidated Revenue Fund, amounts of not more than $35,000,000,000 in the aggregate, or any greater aggregate amount that may be authorized from time to time under an appropriation Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 Loans to the Bank 24 At the request of the Bank, the Minister of Finance may lend money to the Bank, on the recommendation of the designated Minister, out of the Consolidated Revenue Fund, on any terms and conditions that the Minister of Finance may fix. Miscellaneous Provisions Capital and shares 25 (1) The capital of the Bank is $100, divided into 10 shares having a par value of $10 each. The shares are to be issued to the designated Minister to be held on behalf of Her Majesty in right of Canada. Registration (2) The shares issued to the designated Minister are to be registered by the Bank in the name of the designated Minister. Financial year 26 The financial year of the Bank is the period of 12 months beginning on April 1 and ending on the next March 31, unless the Governor in Council directs otherwise. Five-year review 27 (1) Every five years beginning on the day on which this Act comes into force, the designated Minister must have a review of the provisions and operation of this Act undertaken. Report to Parliament (2) Within one year after the review is undertaken, the designated Minister must cause a copy of the report on the review to be laid before each House of Parliament. Review of report (3) The report must be reviewed by any committee of the Senate or of the House of Commons, or any joint committee, that may be designated or established for the purpose of reviewing the report. Privileged information 28 (1) Subject to subsection (2), all information obtained by the Bank, by any of the Bank’s subsidiaries or by any of the subsidiaries of the Bank’s wholly-owned subsidiaries in relation to the proponents of, or private sector investors or institutional investors in, infrastructure projects is privileged and a director, officer, employee, or agent or mandatary of, or adviser or consultant to, the Bank, any of its subsidiaries, or any of the 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Section 403 subsidiaries of its wholly-owned subsidiaries must not knowingly communicate, disclose or make available the information, or permit it to be communicated, disclosed or made available. Authorized disclosure (2) Privileged information may be communicated, disclosed or made available in the following circumstances: (a) it is communicated, disclosed or made available for the purpose of the administration or enforcement of this Act and legal proceedings related to it; (b) it is communicated, disclosed or made available for the purpose of prosecuting an offence under this Act or any other Act of Parliament; (c) it is communicated, disclosed or made available to the Minister of National Revenue solely for the purpose of administering or enforcing the Income Tax Act or the Excise Tax Act; or (d) it is communicated, disclosed or made available with the written consent of the person to whom the information relates. Use of Bank’s name, initials or acronyms 29 Except with the written consent of the Bank, a person must not in any prospectus or advertisement, or for any other business purpose, use the name of the Bank, the initials “C.I.B.” or “B.I.C.” or the acronyms “CIB” or “BIC” in reference to any function of the Bank under section 7. Auditors 30 The Auditor General of Canada and an auditor appointed annually by the Governor in Council under subsection 134(1) of the Financial Administration Act are the auditors of the Bank. Offence 31 A person who contravenes section 28 or 29 is guilty of an offence and liable on summary conviction to a fine of not more than $10,000 or to imprisonment for a term of not more than six months, or to both. Regulations 32 The Governor in Council may make regulations for the purpose of carrying out the purposes and provisions of this Act, including regulations setting out requirements in respect of the exercise of the Bank’s powers under this Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Enactment of Act Sections 403-405 Inconsistency 33 In the event of any inconsistency between this Act and Part X of the Financial Administration Act, this Act prevails to the extent of the inconsistency. Transitional Provisions First Chief Executive Officer 34 (1) The first Chief Executive Officer is to be appointed by the Governor in Council to hold office during pleasure for a term that the Governor in Council considers appropriate. Consultation (2) Before the first Chief Executive Officer is appointed, the designated Minister must consult with any directors then in office. Chairperson’s interim powers (3) During the period before the first day on which there is a Chairperson and at least eight other directors in office, the Chairperson, once appointed, comprises the Board and may exercise all the powers of the Board, and during the period before the first Chief Executive Officer is appointed, the Chairperson may exercise all the powers of the Chief Executive Officer. Consequential Amendments R.S., c. A-1 Access to Information Act 404 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Canada Infrastructure Bank Act Loi sur la Banque de l’infrastructure du Canada and a corresponding reference to “section 28”. R.S., c. F-11 Financial Administration Act 405 Part I of Schedule III to the Financial Administration Act is amended by adding, in alphabetical order, a reference to Canada Infrastructure Bank Banque de l’infrastructure du Canada 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 18 Canada Infrastructure Bank Act Consequential Amendments Sections 406-407 R.S., c. M-13; 2000, c. 8, s. 2 Payments in Lieu of Taxes Act 406 Schedule IV to the Payments in Lieu of Taxes Act is amended by adding, in alphabetical order, a reference to Canada Infrastructure Bank Banque de l’infrastructure du Canada DIVISION 19 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act 407 (1) The definition courier in section 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is repealed. (2) The definition client in section 2 of the Act is replaced by the following: client includes a person or entity that engages in a financial transaction with another person or entity. (client) (3) Section 2 of the Act is amended by adding the following in alphabetical order: foreign state, except for the purposes of Part 2, means a country other than Canada and includes any political subdivision or territory of a foreign state. (État étranger) (4) Section 2 of the Act is renumbered as subsection 2(1) and is amended by adding the following: Definitions — regulations (2) The Governor in Council may, on the recommendation of the Minister, make regulations defining the following words and expressions: (a) “courier”; (b) “monetary instruments”; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 407-410 (c) “shell bank”; and (d) “identifying information”, for the purposes of subsection 54.1(3). 408 (1) Section 5 of the Act is amended by adding the following after paragraph (e): (e.1) trust companies incorporated or formed by or under a provincial Act that are not regulated by a provincial Act; (2) Paragraphs 5(i) and (j) of the Act are replaced by the following: (i) persons and entities engaged in a prescribed business, profession or activity; (j) persons and entities engaged in a prescribed business or profession, while carrying out a prescribed activity; (3) Paragraph 5(l) of the Act is replaced by the following: (l) departments and agents or mandataries of Her Majesty in right of Canada or of a province that are engaged in the business of accepting deposit liabilities, that issue or sell money orders to, or redeem them from, the public or that sell prescribed precious metals, while carrying out a prescribed activity; and 409 Sections 6 and 6.1 of the Act are replaced by the following: Record keeping 6 Every person or entity referred to in section 5 shall keep records in accordance with the regulations. Verifying identity 6.1 Every person or entity referred to in section 5 shall verify the identity of a person or entity in accordance with the regulations. 410 The portion of section 7 of the Act before paragraph (a) is replaced by the following: Transactions if reasonable grounds to suspect 7 Subject to section 10.1, every person or entity referred to in section 5 shall, in accordance with the regulations, report to the Centre every financial transaction that occurs or that is attempted in the course of their activities 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 410-415 and in respect of which there are reasonable grounds to suspect that 411 Subsection 7.1(1) of the Act is replaced by the following: Disclosure 7.1 (1) Every person or entity referred to in section 5 that is required to make a disclosure under section 83.1 of the Criminal Code or under section 8 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism shall report to the Centre in accordance with the regulations. 412 Section 8 of the Act is replaced by the following: No disclosure of reports 8 No person or entity shall disclose that they have made, are making or will make a report under section 7, or disclose the contents of such a report, with the intent to prejudice a criminal investigation, whether or not a criminal investigation has begun. 413 The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following: Financial transactions to be reported 9 (1) Subject to section 10.1, every person or entity referred to in section 5 shall report to the Centre, in accordance with the regulations, 414 Sections 9.1 and 9.2 of the Act are replaced by the following: Reports under other Acts 9.1 Subject to section 9, every person or entity that is required to make a report to the Centre under another Act of Parliament or any regulations under it shall make the report in the form and manner and within the period prescribed under this Act for a report under that Act. Inability to verify identity 9.2 No person or entity that is referred to in section 5 shall open an account for a client if the person or entity cannot verify the identity of the client in accordance with the regulations. 415 (1) The portion of subsection 9.4(1) of the Act before paragraph (a) is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 415-417 Correspondent banking 9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d) and (e) and every other entity that is referred to in section 5 and that is prescribed shall take the measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship: (2) The portion of subsection 9.4(1) of the Act before paragraph (a) is replaced by the following: Correspondent banking 9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) and every other entity that is referred to in section 5 and that is prescribed shall take the measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship: (3) Subsection 9.4(3) of the Act is replaced by the following: Definition of correspondent banking relationship (3) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity prescribed services or international electronic funds transfers, cash management or cheque clearing services. 416 Subsection 9.6(3) of the Act is replaced by the following: Special measures (3) If, at any time, the person or entity considers that the risk referred to in subsection (2) is high, or in the prescribed circumstances, the person or entity shall take the special measures referred to in the regulations. 417 The Act is amended by adding the following after section 9.6: Measures and information: paragraph 5(e.1) 9.61 (1) Every entity referred to in paragraph 5(e.1) shall take the prescribed measures related to the program referred to in subsection 9.6(1) and shall provide the prescribed information to the Centre in the prescribed circumstances. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 417-419 Service (2) An entity referred to in paragraph 5(e.1) must provide to the Centre the name and address for service of a person who resides in Canada and who is authorized to accept, on behalf of the entity, notices that are served or caused to be served by the Centre under this Act. Authorized person (3) The service of a notice by or on behalf of the Centre on an entity referred to in paragraph 5(e.1) is sufficient if it is served on the person whose name is provided under subsection (2). 418 (1) Subsection 9.7(1) of the Act is replaced by the following: Foreign branches and subsidiaries 9.7 (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall, in respect of its foreign branches, and in respect of its foreign subsidiaries that carry out activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, develop policies that establish requirements similar to the requirements of sections 6, 6.1 and 9.6 and ensure that those branches and subsidiaries apply those policies to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located. (2) Subsection 9.7(4) of the Act is replaced by the following: Records and reporting (4) If the application by a foreign branch or a foreign subsidiary of a policy referred to in subsection (1) is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons. 419 Section 11.1 of the Act is replaced by the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 419-420 Registration requirement 11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h), those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, the public, and every other person or entity that is referred to in section 5 and that is prescribed must be registered with the Centre in accordance with this section and sections 11.11 to 11.2. 420 (1) Paragraph 11.11(1)(a) of the Act is replaced by the following: (a) a person or entity that is subject to sanctions associated with terrorist activity or a prohibition relating to financial services under the United Nations Act; (2) Subsection 11.11(1) of the Act is amended by adding the following after paragraph (b): (b.1) a person or entity that is subject to a prohibition on financial or related services under the Special Economic Measures Act; (3) The portion of paragraph 11.11(1)(c) of the French version of the Act before subparagraph (i) is replaced by the following: c) la personne ou entité condamnée pour l’une ou l’autre des infractions ci-après ou qui a été condamnée pour une infraction essentiellement similaire prévue par les lois d’un État étranger : (4) Subparagraphs 11.11(1)(c)(i) to (iv) of the English version of the Act are replaced by the following: (i) a money laundering offence, or an offence under the laws of a foreign state that is substantially similar to a money laundering offence, (ii) a terrorist activity financing offence, or an offence under the laws of a foreign state that is substantially similar to a terrorist activity financing offence, (iii) an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 when convicted on indictment, or an offence under the laws of a foreign state that is substantially similar to an offence under either Act, (iv) an offence under any of sections 83.18 to 83.231, 354 or 467.11 to 467.13 of the Criminal Code, 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 420-422 or an offence under the laws of a foreign state that is substantially similar to such an offence, or (5) The portion of paragraph 11.11(1)(d) of the Act before subparagraph (i) is replaced by the following: (d) a person or entity that has been convicted on indictment or convicted more than once of an offence under any of the following, or that has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under any of the following: (6) Paragraph 11.11(1)(e) of the Act is replaced by the following: (e) an entity that is a corporation in respect of which a director, the chief executive officer, the president or a person who owns or controls, directly or indirectly, 20% or more of the shares has been convicted on indictment of an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 or has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under either Act; 421 Subsection 11.12(1) of the Act is replaced by the following: Application for registration 11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner, shall include a list of the applicant’s agents or mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h), in issuing or selling money orders to, or redeeming them from, the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities, and shall include any prescribed information. 422 Section 11.41 of the Act is replaced by the following: Definition of foreign entity 11.41 In this Part, foreign entity means an entity, other than an entity referred to in section 5, that is incorporated or formed by or under the laws of a foreign state, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or activities referred to in paragraph 5(h) or (h.1). 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 423-424 423 (1) Subsection 11.42(1) of the Act is replaced by the following: Minister’s written directive 11.42 (1) In addition to any other measure required by this Act, the Minister may, by written directive, require any person or entity referred to in section 5 to take, in order to safeguard the integrity of Canada’s financial system, any measure specified in the directive with respect to any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state, foreign entity or entity referred to in paragraph 5(e.1), that occurs or is attempted in the course of their activities, or with respect to any activity that is related to any such financial transaction or class of financial transactions. (2) Paragraph 11.42(2)(d) of the Act is replaced by the following: (d) the keeping of any records; (3) Paragraphs 11.42(4)(a) and (b) of the Act are replaced by the following: (a) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state, foreign entity or entity referred to in paragraph 5(e.1) on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient; or (b) the anti-money laundering or anti-terrorist financing measures that a foreign state, a foreign entity or an entity referred to in paragraph 5(e.1) has implemented are ineffective or insufficient and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system. 424 Section 11.44 of the Act is replaced by the following: Foreign branches and subsidiaries 11.44 (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall ensure that its foreign branches, and that its foreign subsidiaries that carry out 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 424-425 activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, comply with any directive issued under this Part, except with respect to any reporting measure as contemplated by paragraph 11.42(2)(e), to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located. Records and reporting (2) If compliance with a directive by a branch or a subsidiary is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict, and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons. 425 (1) Paragraph 11.49(1)(a) of the Act is replaced by the following: (a) imposing a limitation or a prohibition on any person or entity referred to in section 5, with respect to entering into, undertaking or facilitating, directly or indirectly, any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state, foreign entity or entity referred to in paragraph 5(e.1); (2) Paragraphs 11.49(3)(a) and (b) of the Act are replaced by the following: (a) if (i) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state, foreign entity or entity referred to in paragraph 5(e.1) on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient, and (ii) there is a risk that money laundering activities or terrorist financing activities may be carried out in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1); or (b) if the anti-money laundering or anti-terrorist financing measures that a foreign state, a foreign entity 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 425-429 or an entity referred to in paragraph 5(e.1) has implemented are ineffective or insufficient, the risk of money laundering activities or terrorist financing activities being carried out in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1) is significant and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system. 426 Section 11.6 of the Act is replaced by the following: Foreign branches 11.6 Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall ensure that its foreign branches comply with any regulation made under subsection 11.49(1) to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch is located. 427 Subsection 30(1) of the Act is replaced by the following: Appeal to Federal Court 30 (1) A person who makes a request under section 25 for a decision of the Minister may, within 90 days after being notified of the decision, appeal the decision by way of an action in the Federal Court in which the person is the plaintiff and the Minister is the defendant. 428 Paragraph 53.3(1)(c) of the Act is replaced by the following: (c) a government of a foreign state, an international organization or an institution or agency of a foreign state that has powers and duties similar to those of the Centre, with which the Minister or the Centre has entered into a written agreement or arrangement under subsection 56(1) or (2), if the agreement or arrangement so provides. 429 Subsection 55(7) of the Act is amended by striking out “and” at the end of paragraph (p) and by adding the following after paragraph (q): (r) the name, address, electronic mail address and telephone number of every trustee and every known beneficiary and settlor of a trust referred to in paragraph (a); 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 429-431 (s) the name, address, electronic mail address and telephone number of each person who owns or controls, directly or indirectly, 25 % or more of an entity referred to in paragraph (a), other than a trust; and (t) information respecting the ownership, control and structure of an entity referred to in paragraph (a). 430 (1) Subsection 55.1(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the Department of National Defence and the Canadian Forces, if the Centre also has reasonable grounds to suspect that the information is relevant to such a threat as it relates to that Department or the Canadian Forces. (2) Subsection 55.1(3) of the Act is amended by striking out “and” at the end of paragraph (p) and by adding the following after paragraph (q): (r) the name, address, electronic mail address and telephone number of every trustees and every known beneficiary and settlor of a trust referred to in paragraph (a); (s) the name, address, electronic mail address and telephone number of each person who owns or controls, directly or indirectly, 25 % or more of an entity referred to in paragraph (a), other than a trust; and (t) information respecting the ownership, control and structure of an entity referred to in paragraph (a). 431 Subsection 56(1) of the Act is replaced by the following: Agreements and arrangements 56 (1) The Minister may enter into an agreement or arrangement, in writing, with the government of a foreign state or an international organization regarding the exchange, between the Centre and any institution or agency of that state or organization that has powers and duties similar to those of the Centre, of information that the Centre, institution or agency has reasonable grounds to suspect would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence, or an offence that is substantially similar to either offence. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 432-434 432 (1) The portion of subsection 56.1(1) of the Act before paragraph (a) is replaced by the following: Disclosure to foreign agencies 56.1 (1) The Centre may disclose designated information to an institution or agency of a foreign state or of an international organization that has powers and duties similar to those of the Centre, if (2) Subsection 56.1(5) of the Act is amended by striking out “and” at the end of paragraph (o) and by adding the following after paragraph (p): (q) the name, address, electronic mail address and telephone number of every trustee and every known beneficiary and settlor of a trust referred to in paragraph (a); (r) the name, address, electronic mail address and telephone number of each person who owns or controls, directly or indirectly, 25% or more of an entity referred to in paragraph (a), other than a trust; and (s) information respecting the ownership, control and structure of an entity referred to in paragraph (a). 433 The portion of subsection 65.1(1) of the Act before paragraph (a) is replaced by the following: Agreements and arrangements 65.1 (1) The Centre may enter into an agreement or arrangement, in writing, with an institution or agency of a foreign state that has powers and duties, similar to those of the Centre, with respect to verifying compliance with requirements to identify persons or entities, keep records or make reports, or with an international organization made up of such institutions or agencies, that stipulates 434 Paragraphs 73(1)(a) to (z.1) of the Act are replaced by the following: (a) respecting dealing in virtual currencies; (b) respecting the keeping of records referred to in section 6; (c) respecting the verification of the identity of persons and entities referred to in section 6.1; (d) respecting the reports to the Centre referred to in section 7 and subsections 7.1(1) and 9(1); 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act Sections 434-436 (e) respecting the determination of whether a person is a person described in any of paragraphs 9.3(1)(a) to (c); (f) respecting the measures referred to in subsections 9.3(2) and (2.1); (g) respecting the measures referred to in subsection 9.4(1); (h) respecting the program referred to in subsection 9.6(1); (i) respecting the special measures referred to in subsection 9.6(3); (j) respecting the registration referred to in sections 11.1 to 11.2; (k) respecting the reports referred to in subsection 12(1); and (l) prescribing anything that by this Act is to be prescribed. 435 Subsection 73.15(2) of the French version of the Act is replaced by the following: Présentation d’observations (2) Si des observations sont présentées conformément au procès-verbal, le directeur détermine, selon la prépondérance des probabilités, la responsabilité de l’intéressé. Le cas échéant, il peut, sous réserve des règlements pris en vertu de l’alinéa 73.1(1)c), imposer la pénalité mentionnée au procès-verbal ou une pénalité réduite, ou encore n’imposer aucune pénalité. 2014, c. 20 Economic Action Plan 2014 Act, No. 1 Amendments to the Act 436 (1) Subsection 256(2) of the French version of the Economic Action Plan 2014 Act, No. 1 is amended by replacing the portion of paragraph 5(h) before subparagraph (i) that it enacts with the following: h) les personnes et entités qui ont un établissement au Canada et qui se livrent à la fourniture de l’un des services suivants : (2) Subsection 256(2) of the Act is amended by replacing the subparagraphs 5(h)(iv) and (v) that it enacts with the following: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Economic Action Plan 2014 Act, No. 1 Sections 436-437 (iv) dealing in virtual currencies, or (v) any prescribed service; (3) Subsection 256(2) of the Act is amended by replacing the portion of paragraph 5(h.1) before subparagraph (i) that it enacts with the following: (h.1) persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada: (4) Subsection 256(2) of the Act is amended by replacing the subparagraphs 5(h.1)(iv) and (v) that it enacts with the following: (iv) dealing in virtual currencies, or (v) any prescribed service; 437 (1) Section 258 of the Act is amended by replacing the subsections 9.3(2) and (2.1) that it enacts with the following: Measures — politically exposed foreign persons (2) If the person or entity determines that it is dealing with a person described in paragraph (1)(a), the person or entity shall take the measures referred to in the regulations. Measures — other persons (2.1) If the person or entity determines that it is dealing with a person described in paragraph (1)(b) or (c) and considers, based on an assessment referred to in subsection 9.6(2), that the person poses a high risk of committing a money laundering offence or a terrorist activity financing offence, the person or entity shall take the measures referred to in the regulations. (2) Section 258 of the Act is amended by replacing the definition head of an international organization in the subsection 9.3(3) that it enacts with the following: head of an international organization means a person who, at a given time, holds — or has held within a prescribed period before that time — the office or position of head of an international organization that is established by the governments of states or the head of an institution of any such organization. (dirigeant d’une organisation internationale) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Economic Action Plan 2014 Act, No. 1 Sections 438-439 2000, c. 17; 2001, c. 41, s. 48 Related Amendment to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act 438 Section 9.31 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as enacted by section 258 of the Act, is replaced by the following: Prohibition if unregistered 9.31 (1) No entity referred to in paragraph 5(a), (b), (d), (e) or (e.1) and no other entity that is referred to in section 5 and that is prescribed shall open or maintain an account for, or have a correspondent banking relationship with, a person or entity referred to in paragraph 5(h.1) unless that person or entity is registered with the Centre under section 11.1. Definition of correspondent banking relationship (2) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in paragraph 5(a), (b), (d), (e) or (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a person or entity referred to in paragraph 5(h.1) prescribed services or international electronic funds transfers, cash management or cheque clearing services. Coordinating Amendments 2014, c. 20 439 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1. (2) If subsection 256(2) of the other Act comes into force before section 436 of this Act, then (a) that section 436 is deemed never to have come into force and is repealed; and (b) the portion of paragraph 5(h) of the French version of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act before subparagraph (i) is replaced by the following: h) les personnes et entités qui ont un établissement au Canada et qui se livrent à la fourniture de l’un des services suivants : (c) subparagraphs 5(h)(iv) and (v) of the Proceeds of Crime (Money Laundering) and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Coordinating Amendments Section 439 Terrorist Financing Act are replaced by the following: (iv) dealing in virtual currencies, or (v) any prescribed service; (d) the portion of paragraph 5(h.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act before subparagraph (i) is replaced by the following: (h.1) persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada: (e) subparagraphs 5(h.1)(iv) and (v) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are replaced by the following: (iv) dealing in virtual currencies, or (v) any prescribed service; (3) If section 436 of this Act comes into force on the same day as subsection 256(2) of the other Act, then that section 436 is deemed to have come into force before that subsection 256(2). (4) If section 258 of the other Act comes into force before section 437 of this Act, then (a) that section 437 is deemed never to have come into force and is repealed; (b) subsections 9.3(2) and (2.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are replaced by the following: Measures — politically exposed foreign persons (2) If the person or entity determines that it is dealing with a person described in paragraph (1)(a), the person or entity shall take the measures referred to in the regulations. Measures — other persons (2.1) If the person or entity determines that it is dealing with a person described in paragraph (1)(b) or (c) and considers, based on an assessment referred to in subsection 9.6(2), that the person poses a high risk of committing a money laundering offence or a terrorist activity 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Coordinating Amendments Section 439 financing offence, the person or entity shall take the measures referred to in the regulations. (c) the definition head of an international organization in subsection 9.3(3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: head of an international organization means a person who, at a given time, holds — or has held within a prescribed period before that time — the office or position of head of an international organization that is established by the governments of states or the head of an institution of any such organization. (dirigeant d’une organisation internationale) (5) If section 437 of this Act comes into force on the same day as section 258 of the other Act, then that section 437 is deemed to have come into force before that section 258. (6) On the first day on which both section 261 of the other Act and section 419 of this Act are in force, section 11.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: Registration requirement 11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, the public, and every other person or entity that is referred to in section 5 and that is prescribed must be registered with the Centre in accordance with this section and sections 11.11 to 11.2. (7) If section 263 of the other Act comes into force before section 421 of this Act, then (a) that section 421 is deemed never to have come into force and is repealed; and (b) paragraph 11.12(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: (a) a list of the applicant’s agents or mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h) or (h.1), in issuing or selling money orders to, or redeeming them from, the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Coordinating Amendments Sections 439-440 (8) If section 421 of this Act comes into force before section 263 of the other Act, then, on the day on which that section 263 comes into force, paragraph 11.12(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: (a) a list of the applicant’s agents or mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h) or (h.1), in issuing or selling money orders to, or redeeming them from, the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities; (9) If section 421 of this Act comes into force on the same day as section 263 of the other Act, then that section 421 is deemed to have come into force before that section 263 and subsection (8) applies as a consequence. (10) If section 434 of this Act comes into force before subsection 294(1) of the other Act, then that subsection 294(1) is repealed. (11) If section 434 of this Act comes into force on the same day as subsection 294(1) of the other Act, then that subsection 294(1) is deemed to have come into force before that section 434. (12) If section 434 of this Act comes into force before subsection 294(3) of the other Act, then that subsection 294(3) is repealed. (13) If section 434 of this Act comes into force on the same day as subsection 294(3) of the other Act, then that subsection 294(3) is deemed to have come into force before that section 434. (14) If section 434 of this Act comes into force before subsection 294(5) of the other Act, then that subsection 294(5) is repealed. (15) If section 434 of this Act comes into force on the same day as subsection 294(5) of the other Act, then that subsection 294(5) is deemed to have come into force before that section 434. 2014, c. 39 440 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 2. (2) If section 250 of the other Act comes into force before section 422 of this Act, then section 11.41 of the Proceeds of Crime (Money Laundering) and 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Coordinating Amendments Section 440 Terrorist Financing Act is replaced by the following: Definition of foreign entity 11.41 In this Part, foreign entity means (a) an entity referred to in paragraph 5(h.1); or (b) an entity, other than an entity referred to in section 5, that is incorporated or formed by or under the laws of a foreign state, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or activities referred to in paragraph 5(h) or (h.1). (3) If section 422 of this Act comes into force before section 250 of the other Act, then (a) that section 250 is repealed; and (b) on the day on which subsection 256(2) of the Economic Action Plan 2014 Act, No. 1 comes into force, section 11.41 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: Definition of foreign entity 11.41 In this Part, foreign entity means (a) an entity referred to in paragraph 5(h.1); or (b) an entity, other than an entity referred to in section 5, that is incorporated or formed by or under the laws of a foreign state, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or activities referred to in paragraph 5(h) or (h.1). (4) If section 422 of this Act comes into force on the same day as section 250 of the other Act, then that section 422 is deemed to have come into force before that section 250 and subsection (3) applies as a consequence. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 19 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Coming into Force Sections 441-442 Coming into Force Order in council 441 (1) Subsection 408(1), subsections 415(2) and (3), section 417, subsections 423(1) and (3) and sections 425 and 438 come into force on a day to be fixed by the Governor in Council, but that day must not be earlier than the day after the day on which section 258 of the Economic Action Plan 2014 Act, No. 1 comes into force. 2014, c. 20 or royal assent (2) Section 434 comes into force on the day after the day on which section 258 of the Economic Action Plan 2014 Act, No. 1 comes into force or, if it is later, on the day on which this Act receives royal assent. DIVISION 20 Invest in Canada Act Enactment of Act Enactment 442 The Invest in Canada Act is enacted as follows: An Act to establish the Invest in Canada Hub Short Title Short title 1 This Act may be cited as the Invest in Canada Act. Interpretation Definitions 2 The following definitions apply in this Act. Invest in Canada Hub means the corporation established under subsection 4(1). (Investir au Canada) Minister means the member of the Queen’s Privy Council for Canada designated under section 3. (ministre) 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 Designation Designation of Minister 3 The Governor in Council may, by order, designate a member of the Queen’s Privy Council for Canada as the Minister for the purpose of this Act. Invest in Canada Hub Established Invest in Canada Hub 4 (1) A corporation is established to be called the Invest in Canada Hub. Agent of Her Majesty (2) The Invest in Canada Hub is for all purposes an agent of Her Majesty in right of Canada. Head office (3) The head office of the Invest in Canada Hub is to be at a place in Canada that is designated by the Minister. Mandate Mandate 5 The Invest in Canada Hub’s mandate, for the purpose of supporting economic prosperity and stimulating innovation in Canada, is to (a) promote foreign direct investment in Canada and attract and facilitate that investment; and (b) coordinate the efforts of the government, the private sector and other stakeholders with respect to foreign direct investment in Canada. Functions and Powers Functions 6 In carrying out its mandate, the Invest in Canada Hub is to (a) develop and implement a national strategy to attract foreign direct investment to Canada; (b) create and maintain partnerships with any department, board or agency of any government in Canada, the private sector in Canada or any other Canadian stakeholder with an interest in foreign direct investment in order to optimize the benefits of any 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 programs, resources and services that are offered with respect to foreign direct investment; (c) plan, direct, manage and implement activities, events, conferences and programs to promote Canada as an investment destination; (d) collect, prepare and disseminate information to support the decisions of foreign investors with respect to foreign direct investment in Canada; and (e) provide services in a coordinated manner to foreign investors with respect to their actual or potential investments in Canada. Powers of Invest in Canada Hub 7 (1) When carrying out its mandate, the Invest in Canada Hub may (a) enter into contracts, agreements, memoranda of understanding or other arrangements with a department, board or agency of the Government of Canada, with any other government or any of its departments, boards or agencies or with any person or organization in the name of Her Majesty in right of Canada or in its own name; (b) enter into contracts, agreements, memoranda of understanding or other arrangements with Her Majesty in right of Canada as if it were not an agent of Her Majesty; (c) acquire, hold, administer, dispose of or lease personal property or movables; or (d) do anything else that it considers necessary or incidental to achieving its mandate, exercising its powers or performing its duties and functions. Title to property (2) Title to property acquired by the Invest in Canada Hub may be held in the name of Her Majesty or in the name of the Invest in Canada Hub. General authority 8 (1) The Invest in Canada Hub has authority over all matters relating to (a) its policies with respect to contracts, communications, travel, hospitality, conferences and events and any of its other general administrative policies; (b) its organization; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 (c) human resources management, including the determination of the terms and conditions of employment of persons whom it employs; and (d) its internal auditing. Non-application of regulations and requirements (2) Despite the Financial Administration Act, the Invest in Canada Hub is not subject to any regulation or requirement established by the Treasury Board under that Act that relates to any matter referred to in subsection (1), except (a) to the extent that the regulation or requirement under that Act relates to financial management; or (b) with respect to any regulation or requirement as it relates to any matter referred to in paragraphs (1)(a), (b) and (d), to the extent provided by the Governor in Council, by order, on the recommendation of the President of the Treasury Board. Procurement of goods and services 9 (1) Despite section 9 of the Department of Public Works and Government Services Act, the Invest in Canada Hub may procure goods and services from outside the federal public administration. Legal services (2) However, the Invest in Canada Hub may only procure legal services from outside the federal public administration with the approval of the Attorney General of Canada. Legal proceedings 10 Actions, suits or other legal proceedings in respect of any right or obligation acquired or incurred by the Invest in Canada Hub, whether in its own name or in the name of Her Majesty in right of Canada, may be brought or taken by or against the Invest in Canada Hub in its name. Minister Responsibility of Minister 11 (1) The Minister is responsible for the Invest in Canada Hub. Ministerial direction (2) The Invest in Canada Hub must comply with any general or special direction given by the Minister in carrying out its mandate. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 Minister’s power of inquiry (3) The Minister may inquire into any of the Invest in Canada Hub’s activities and require it to provide him or her with any information under its control. Reports (4) The Minister may require the Invest in Canada Hub to provide him or her with a report on its activities and operations. Board of Directors Establishment and composition 12 (1) The Invest in Canada Hub is to have a board of directors consisting of not more than 11 directors, including a Chairperson and a Vice-Chairperson. Ex officio director — Deputy Minister (2) The Deputy Minister of the department for which the Minister is responsible is ex officio a director of the board of directors. Appointment (3) The Chairperson, Vice-Chairperson and the other directors, except the Deputy Minister, are to be appointed by the Governor in Council to hold office on a part-time basis and during pleasure for a term not exceeding three years that will ensure, to the extent possible, the end in any one year of the terms of office of not more than one half of the directors. Reappointment (4) A director appointed under subsection (3) is eligible for reappointment in the same or another capacity. Remuneration and expenses (5) A director appointed under subsection (3) is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and living expenses incurred while absent from their ordinary place of residence in the course of their duties under this Act. Role of board of directors 13 (1) The board of directors is responsible for supervising and managing the Invest in Canada Hub’s business and affairs and for advising the Minister and the Chief Executive Officer on matters relating to the Invest in Canada Hub’s mandate. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 By-laws (2) The board of directors may make by-laws respecting the conduct of its proceedings and the general conduct of its activities. Quorum (3) A majority of the directors holding office or five directors, whichever is greater, constitutes a quorum of the board of directors. Chairperson and ViceChairperson Role of Chairperson 14 (1) The Chairperson presides over meetings of the board of directors and performs any other duties that are assigned to them by the Minister. Acting Chairperson (2) In the event of the absence or incapacity of the Chairperson, or a vacancy in that office, the Vice-Chairperson acts as Chairperson. Chief Executive Officer Appointment 15 (1) The Chief Executive Officer of the Invest in Canada Hub is to be appointed by the Governor in Council to hold office during pleasure for a term of up to five years. Reappointment (2) The Chief Executive Officer is eligible for reappointment. Remuneration and expenses (3) The Chief Executive Officer is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and living expenses while absent from his or her ordinary place of work in the course of his or her duties under this Act. Role of Chief Executive Officer 16 (1) The Chief Executive Officer is responsible for the Invest in Canada Hub’s day-to-day operations. Rank of deputy head (2) The Chief Executive Officer has the rank and the powers of a deputy head of a department. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 Annual business plan and report (3) The Chief Executive Officer must submit to the board of directors, for its approval, an annual business plan and an annual report on the Invest in Canada Hub’s operations and performance during the preceding fiscal year. Acting Chief Executive Officer (4) In the event of the absence or incapacity of the Chief Executive Officer, or a vacancy in that office, the Minister may appoint any person to act as Chief Executive Officer, but that person may only act as Chief Executive Officer for a period exceeding 90 days with the approval of the Governor in Council. Human Resources Human resources management 17 The Invest in Canada Hub may, in the exercise of its responsibilities in relation to human resources management, (a) determine its requirements with respect to human resources and provide for the allocation and effective utilization of human resources; (b) determine requirements for the training and development of its personnel and fix the terms and conditions on which that training and development may be carried out; (c) provide for the classification of the Invest in Canada Hub positions and employees; (d) after consulting with the President of the Treasury Board, determine and regulate the pay to which persons employed by the Invest in Canada Hub are entitled for services rendered, the hours of work and leave of those persons and any related matters; (e) provide for the awards that may be made to persons employed by the Invest in Canada Hub for outstanding performance of their duties and for other meritorious achievement in relation to those duties; (f) establish standards of discipline for its employees and prescribe the financial and other penalties, including termination of employment and suspension, that may be applied for breaches of discipline or misconduct and the circumstances and manner in which and the authority by which or by whom those penalties may be applied or may be varied or rescinded in whole or in part; (g) provide for the termination of employment or the demotion to a position at a lower maximum rate of 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Section 442 pay, for reasons other than breaches of discipline or misconduct, of persons employed by the Invest in Canada Hub and establish the circumstances and manner in which and the authority by which or by whom those measures may be taken or may be varied or rescinded in whole or in part; and (h) provide for any other matters that the Invest in Canada Hub considers necessary for effective personnel management, including terms and conditions of employment not otherwise specifically provided for in this section. Power to appoint 18 The Invest in Canada Hub has the exclusive authority to appoint any employees, including senior vice-presidents and account executives, that it considers necessary for carrying out its mandate. Group insurance and benefit programs 19 (1) The Invest in Canada Hub may establish or enter into a contract to acquire group insurance or benefit programs for its employees and may set any terms and conditions in respect of those programs, including those relating to premiums, contributions, benefits, management and control and expenditures to be made from those contributions and premiums, and may audit and make contributions and pay premiums in respect of those programs. Non-application of Financial Administration Act (2) The Financial Administration Act does not apply to any contributions made or premiums paid by the Invest in Canada Hub or the members in respect of any program established under subsection (1) or any benefits received by the members of such a program. Staffing program 20 (1) The Invest in Canada Hub must develop a program governing staffing, including the appointment of, and recourse for, employees. Collective agreements (2) Matters governed by the staffing program are not to be covered by a collective agreement. Negotiation of collective agreements 21 Before entering into collective bargaining with the bargaining agent for a bargaining unit composed of the Invest in Canada Hub’s employees, the Invest in Canada 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Enactment of Act Sections 442-443 Hub must have its negotiating mandate approved by the President of the Treasury Board. Pension — Chief Executive Officer 22 (1) Unless the Governor in Council otherwise orders, the Chief Executive Officer is deemed not to be employed in the public service for the purposes of the Public Service Superannuation Act. Pension — other employees (2) Senior vice-presidents and account executives are deemed not to be employed in the public service for the purposes of the Public Service Superannuation Act. Compensation 23 A director appointed under subsection 12(3) and the Chief Executive Officer are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of regulations made under section 9 of the Aeronautics Act. Transitional Provisions Words and expressions 443 (1) The words and expressions used in this section have the same meaning as in the Invest in Canada Act, as enacted by section 442. Powers, duties and functions of Chief Executive Officer (2) Any power, duty or function of the Invest in Canada Hub under the Invest in Canada Act is vested in or may be performed or exercised by the Chief Executive Officer of the Invest in Canada Hub until the first meeting of the board of directors. Transfer of money (3) Any money that is appropriated by an Act of Parliament, for the fiscal year in which section 442 comes into force, to defray any expenditure of the Department of Foreign Affairs, Trade and Development related to the Invest in Canada Hub and that, on the day on which that section comes into force, is unexpended is deemed, on that day, to be an amount appropriated to defray any expenditure of the Invest in Canada Hub. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Consequential and Related Amendments Sections 444-449 Consequential and Related Amendments R.S., c. A-1 Access to Information Act 444 Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”: Invest in Canada Hub Investir au Canada R.S. c. F-11 Financial Administration Act 445 Subsection 41(2) of the Financial Administration Act is replaced by the following: Exception (2) Subsection (1) does not apply in respect of Crown corporations, the Canada Revenue Agency or the Invest in Canada Hub. 446 Schedule II to the Act is amended by adding the following in alphabetical order: Invest in Canada Hub Investir au Canada 447 Schedule V to the Act is amended by adding the following in alphabetical order: Invest in Canada Hub Investir au Canada R.S., c. P-21 Privacy Act 448 The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”: Invest in Canada Hub Investir au Canada R.S., c. P-36 Public Service Superannuation Act 449 Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order: 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 20 Invest in Canada Act Consequential and Related Amendments Sections 449-451 Invest in Canada Hub Investir au Canada Coming into Force Order in council 450 The provisions of this Division comes into force on a day or days to be fixed by order of the Governor in Council. DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Enactment 451 The Service Fees Act is enacted as follows: An Act respecting certain government fees, charges and levies Short title Short title 1 This Act may be cited as the Service Fees Act. Interpretation Definitions 2 (1) The following definitions apply in this Act. federal entity means (a) a department named in Schedule I to the Financial Administration Act; (b) a division or branch of the federal public administration set out in column I of Schedule I.1 to that Act; or (c) a corporation named in Schedule II to that Act. (entité fédérale) fee means an amount — called a fee, charge, levy or by any other name — that, in relation to a federal entity, is fixed by the Governor in Council, the Treasury Board, a minister or the federal entity under a power conferred by 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 an Act of Parliament or a capacity to contract and is payable for (a) the provision of a service; (b) the provision of the use of a facility; (c) the conferral, by means of a licence, permit or other authorization, of a right or privilege; (d) the provision of a product; or (e) the recovery, in whole or in part, of costs that are incurred in relation to a regulatory scheme. (frais) fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year. (exercice) responsible authority means, with respect to a fee fixed in relation to a federal entity, the appropriate Minister, as defined in section 2 of the Financial Administration Act, with respect to that entity or a person designated under subsection 2(2). (autorité compétente) Designation of responsible authority (2) The appropriate Minister, as defined in section 2 of the Financial Administration Act, with respect to a federal entity may, in writing, designate the federal entity’s chief executive officer or deputy head, whatever their title, as the responsible authority with respect to any fees fixed in relation to that entity. Performance Standards Application — sections 4 to 7 3 (1) Sections 4 to 7 apply in respect of a fee referred to in any of paragraphs (a) to (c) of the definition fee. Non-application (2) However, those sections do not apply if (a) the fee is fixed by contract; (b) the person or body that fixes the fee does so by fixing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or referring to a market rate; (c) it is fixed under the Access to Information Act or the Privacy Act; or 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 (d) it is paid only by or on behalf of a minister or federal entity. Obligation — responsible authority 4 The responsible authority with respect to a fee must ensure that a performance standard is established in respect of the fee, in accordance with Treasury Board policies or directives, if any. Amendments 5 Before a performance standard established in respect of a fee that is fixed after this section comes into force is amended, the responsible authority with respect to the fee must consult any persons and organizations that the responsible authority considers to be interested in the matter. Accessibility 6 The responsible authority with respect to a fee must ensure that the performance standard established in respect of the fee, or any amended standard, is accessible to the public. Remissions 7 (1) If the responsible authority with respect to a fee considers that the performance standard in relation to the fee has not been met in a fiscal year, the responsible authority must remit, before July 1 of the following fiscal year, the portion of the fee that the responsible authority considers appropriate to any affected person who paid the fee. Policies or directives (2) The consideration of whether the performance standard in relation to a fee has not been met and what is the appropriate portion of a fee to be remitted, as well as the remission, must be made in accordance with Treasury Board policies or directives. Statutory Instruments Act 8 A performance standard is not a statutory instrument for the purposes of the Statutory Instruments Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 Consultation and Parliamentary Review Application — sections 10 to 15 9 (1) Sections 10 to 15 apply in respect of a fee referred to in any of paragraphs (a) to (d) of the definition fee. Non-application (2) However, those sections do not apply if (a) the fee is fixed by contract; (b) the person or body that fixes the fee does so by fixing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or referring to a market rate; (c) it is fixed under the Access to Information Act or the Privacy Act; (d) it is fixed by a regulation, as defined in subsection 2(1) of the Statutory Instruments Act, that is published in Part I of the Canada Gazette before it is made; (e) an Act of Parliament other than this Act requires consultation before the fee is fixed; or (f) it is paid only by or on behalf of a minister or federal entity. Requirements 10 (1) The requirements of sections 11 to 15 are to be met before a fee is fixed. Non-application in case of adjustment (2) For greater certainty, those sections do not apply when a fee is adjusted annually by operation of section 17 or periodically by operation of an Act of Parliament other than this Act, or an instrument made under such an Act. Fee proposal 11 The responsible authority with respect to a fee must develop a fee proposal that includes the following information: (a) the amount of the fee or the manner for determining its amount; (b) the circumstances in which the fee will be payable; 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 (c) the rationale for the fee; (d) the factors taken into account in determining the amount of the fee or the manner for determining its amount; and (e) any performance standard that will apply in respect of the fee. Consultation 12 The responsible authority must consult interested persons and organizations on the fee proposal by (a) making it accessible to the public; (b) inviting interested persons and organizations to make representations on it, specifying a deadline for making those representations, providing information on the requirement of paragraph (c) and specifying the time limit for submitting a complaint under subsection 13(1); and (c) replying to any representations made by interested persons and organizations within 30 days after the deadline specified under paragraph (b). Complaints 13 (1) An interested person or organization may, within 10 days after the time limit set out in paragraph 12(c) expires, submit a complaint in writing to the responsible authority with respect to the responsible authority’s reply to their representations. Establishment of panel (2) The responsible authority must, within 30 days after the time limit set out in subsection (1) expires, establish a panel to review all complaints submitted under subsection (1). Composition of panel (3) The panel is to be composed of the following members: (a) one person selected by the responsible authority; (b) one person selected by all the interested persons and organizations that submitted complaints; and (c) one person selected by the persons selected under paragraphs (a) and (b). Selection by responsible authority (4) If a selection referred to in paragraph (3)(b) or (c) is not made within the time limit set out in subsection (2), 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 the responsible authority must select a person to be a panel member as soon as feasible. Costs (5) The responsible authority is responsible for the costs of the panel, including the remuneration and expenses that are payable to the panel members. Report (6) The panel must issue a report on the complaints within 90 days after the day on which the panel is established. Any recommendations set out in the report are not binding on the responsible authority. Extension of time limit (7) The responsible authority may, at the request of the panel, extend the time limit set out in subsection (6) by a maximum of 30 days. Tabling of materials in Parliament 14 The responsible authority must cause the following materials to be tabled in both Houses of Parliament: (a) the fee proposal; (b) a summary of the consultations on the fee proposal; and (c) if a review panel was established, its report and a summary of any actions taken by the responsible authority as a result of the report. Parliamentary review 15 (1) The tabled materials stand permanently referred to the committee of each House of Parliament that is designated or established to review matters relating to the activities of the federal entity in question. Report (2) The committee may review the materials and may submit to the Senate or the House of Commons, as the case may be, a report that contains its recommendations with respect to the fee proposal. Deemed report (3) If the committee does not submit a report that contains its recommendations within the first 20 sitting days after the day on which the materials are tabled, the committee is considered to have submitted a report to the Senate or the House of Commons, as the case may be, recommending the approval of the fee proposal. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 Annual Adjustment Non-application — sections 17 and 18 16 Sections 17 and 18 do not apply in respect of a fee if (a) the fee is fixed by contract; (b) the person or body that fixes the fee does so by fixing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or referring to a market rate; (c) it is fixed under the Access to Information Act or the Privacy Act; (d) it is adjusted periodically by operation of an Act of Parliament other than this Act, or by operation of an instrument made under such an Act; or (e) it is paid only by or on behalf of a minister or federal entity. Consumer Price Index 17 (1) A fee is adjusted in each fiscal year — on the anniversary of a date that is selected by the responsible authority with respect to the fee before the first adjustment — by the percentage change over 12 months in the April All-items Consumer Price Index for Canada, as published by Statistics Canada under the Statistics Act, for the previous fiscal year. Exception (2) However, a fee is not adjusted by operation of subsection (1) in a fiscal year if the fee is fixed in that fiscal year before the adjustment date. Effect of section 17 18 For greater certainty, section 17 does not limit any power conferred under an Act of Parliament to fix a fee. Reports Non-application — sections 20 and 21 19 Sections 20 and 21 do not apply in respect of a fee if it is paid only by or on behalf of a minister or federal entity. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Section 451 Report — responsible authority 20 (1) In each fiscal year, a responsible authority must, in accordance with Treasury Board policies or directives, if any, cause a report to be tabled before each House of Parliament that sets out (a) the fees within the jurisdiction of the responsible authority that were payable in the previous fiscal year; (b) the authorities under which those fees were fixed; (c) the revenue received from those fees; (d) any costs incurred in relation to the things for which those fees were paid; (e) the degree of compliance with any performance standards established in respect of those fees; (f) any remissions made under section 7 in respect of those fees; (g) the fees within the jurisdiction of the responsible authority that will be adjusted by operation of section 17 in the fiscal year after the year in which the report is tabled along with the adjustment date and the adjusted amount or adjusted manner for determining the amount; and (h) any other information required by the Treasury Board. Referral to committee (2) The report stands permanently referred to the committee of each House of Parliament that is designated or established to review matters relating to the activities of the federal entity in question. Report — President of the Treasury Board 21 The President of the Treasury Board must, no later than March 31 of a fiscal year in which any report referred to in subsection 20(1) is tabled, make a report accessible to the public that consolidates the information set out in the tabled reports. Low-materiality Fees Non-application — sections 3 to 18 22 (1) Subject to the regulations, sections 3 to 18 do not apply in respect of a low-materiality fee. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Enactment of Service Fees Act Sections 451-453 Regulations (2) The Treasury Board may make regulations respecting low-materiality fees, including regulations (a) listing the fees that the Treasury Board considers to be low-materiality fees or setting out criteria for determining whether fees are low-materiality fees and when low-materiality fees cease to be low-materiality fees; and (b) setting out when sections 3 to 18 cease to apply in respect of low-materiality fees and when those sections apply to fees that have ceased to be low-materiality fees. Transitional Provisions Definitions 452 (1) In this section, fee and responsible authority have the same meaning as in section 2 of the Service Fees Act, as enacted by section 451. Performance standards — existing fees (2) If a fee that is payable on the day on which this section comes into force is subject to section 4 of the Service Fees Act and a performance standard has not been established in respect of the fee on or before that day, the responsible authority with respect to the fee must ensure that a performance standard is established in respect of the fee within one year after that day. Application of sections 5 to 8 (3) Sections 5 to 8 of the Service Fees Act apply in respect of the fee beginning on the day on which the performance standard is established in respect of the fee. 2014, c. 20 Related Amendment to the Economic Action Plan 2014 Act, No. 1 453 Section 252 of the Economic Action Plan 2014 Act, No. 1 is amended by replacing the section 25.1 that it enacts with the following: Service Fees Act 25.1 Sections 3 to 15 of the Service Fees Act do not apply to a fee fixed under section 24 for a service or the use of a 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Related Amendment to the Economic Action Plan 2014 Act, No. 1 Sections 453-454 facility provided by the Agency under the Safe Food for Canadians Act or to a fee fixed under section 25 in respect of products, rights and privileges provided by the Agency under that Act. Terminology Replacement of “User Fees Act” 454 (1) Every reference to the “User Fees Act” is replaced by a reference to the “Service Fees Act” in the following provisions: (a) section 27.3 of the Citizenship Act; (b) subsection 11.1(4) of the Customs Act; (c) section 29.2 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act; (d) section 66.6 of the Employment Insurance Act; (e) section 64.91 of the Canada Marine Act; (f) section 30.2 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act; (g) subsection 36.1(2) of the Canada Shipping Act, 2001; (h) in the Immigration and Refugee Protection Act, (i) subsection 14.1(11), (ii) subsections 89(1.1), (2) and (3), (iii) subsection 89.1(2), and (iv) subsection 89.2(2); (i) section 14 of the Donkin Coal Block Development Opportunity Act; (j) subsection 59(2) of the Canadian Environmental Assessment Act, 2012; and (k) subsection 6(2) of the New Bridge for the St. Lawrence Act. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 PART 4 Various Measures DIVISION 21 Modernization of Service Fees Terminology Sections 454-457 Other references to User Fees Act (2) Unless the context requires otherwise, every reference to the User Fees Act in any provision of an Act of Parliament other than a provision referred to in subsection (1) is to be read as a reference to the Service Fees Act. Coordinating Amendment Bill C-30 455 If Bill C-30, introduced in the 1st session of the 42nd Parliament and entitled the Canada– European Union Comprehensive Economic and Trade Agreement Implementation Act, receives royal assent, then, on the first day on which both section 59 of that Act and section 451 of this Act are in force, section 133 of the Patent Act is replaced by the following: Service Fees Act 133 The Service Fees Act does not apply in respect of the fees referred to in section 106 or 134. Repeal Repeal 456 The User Fees Act, chapter 6 of the Statutes of Canada, 2004, is repealed. Coming into Force April 1, 2018 457 (1) Sections 16 to 18 and paragraph 20(1)(g) of the Service Fees Act, as enacted by section 451 of this Act, come into force on April 1, 2018. Order in council (2) Section 22 of the Service Fees Act, as enacted by section 451 of this Act, comes into force on a day to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 SCHEDULE 1 SCHEDULE 1 (section 103) SCHEDULE (Paragraph 4(a)) Borrowing Authority Acts 1 Borrowing Authority Act, 1986-87, S.C. 1986, c. 19 Borrowing Authority Act, 1986-87 (No. 2), S.C. 1987, c. 5, Part I Borrowing Authority Act, 1987-88, S.C. 1987, c. 5, Part II Borrowing Authority Act, 1988-89, S.C. 1988, c. 7 Borrowing Authority Act, 1989-90, S.C. 1989, c. 4 Borrowing Authority Act, 1990-91, S.C. 1990, c. 19 Borrowing Authority Act, 1991-92, S.C. 1991, c. 23 Borrowing Authority Act, 1992-93, S.C. 1992, c. 12 Borrowing Authority Act, 1992-93 (No. 2), S.C. 1993, c. 4 Borrowing Authority Act, 1993-94, S.C. 1993, c. 20 Borrowing Authority Act, 1994-95, S.C. 1994, c. 4 Borrowing Authority Act, 1995-96, S.C. 1995, c. 8 Borrowing Authority Act, 1996-97, S.C. 1996, c. 3 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 SCHEDULE 2 SCHEDULE 2 (section 253) SCHEDULE IV (paragraph 12(7)(a)) Number of Weeks of Benefits Conversion Table Number of weeks of benefits Number of weeks of paid – subparagraph benefits that would have 12(3)(b)(ii) been paid at a rate of weekly benefits of 55% 1 1 2 2 3 2 4 3 5 3 6 4 7 5 8 5 9 6 10 6 11 7 12 7 13 8 14 9 15 9 16 10 17 10 18 11 19 11 20 12 21 13 22 13 23 14 24 14 25 15 26 15 27 16 28 17 29 17 30 18 31 18 32 19 33 19 34 20 35 21 36 21 37 22 2015-2016-2017 Chapter 20: Budget Implementation Act, 2017, No. 1 SCHEDULE 2 Number of weeks of benefits Number of weeks of paid – subparagraph benefits that would have 12(3)(b)(ii) been paid at a rate of weekly benefits of 55% 38 22 39 23 40 23 41 24 42 25 43 25 44 26 45 26 46 27 47 27 48 28 49 29 50 29 51 30 52 30 53 31 54 31 55 32 56 33 57 33 58 34 59 34 60 35 61 35 Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 34 An Act to amend the Yukon Environmental and Socio-economic Assessment Act and to make a consequential amendment to another Act ASSENTED TO DECEMBER 14, 2017 BILL C-17 SUMMARY This enactment amends the Yukon Environmental and Socioeconomic Assessment Act, in particular by repealing the provisions (a) that authorize the federal minister to delegate any of his or her powers, duties and functions under that Act to the territorial minister; (b) that exempt projects and existing projects from the requirement of a new assessment when an authorization is renewed or amended and there are no significant changes to the original project as previously assessed; (c) that establish time limits for assessments; and (d) that authorize the federal minister to issue binding policy directions to the Yukon Environmental and Socio-economic Assessment Board. The enactment also amends the Yukon and Nunavut Regulatory Improvement Act by repealing the transitional provision relating to the application of time limit provisions enacted by that Act to projects in respect of which the evaluation, screening or review had begun before that Act came into force but for which no decision had yet been made. i 64-65-66 ELIZABETH II CHAPTER 34 An Act to amend the Yukon Environmental and Socio-economic Assessment Act and to make a consequential amendment to another Act [Assented to 14th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2003, c. 7 Yukon Environmental and Socio-economic Assessment Act 2015, c. 19, s. 2 1 Section 6.1 of the Yukon Environmental and Socio-economic Assessment Act is repealed. 2015, c. 19, s. 14 2 Section 49.1 of the Act is repealed. 2015, c. 19, s. 16 3 (1) The portion of subsection 56(1) of the Act before paragraph (a) is replaced by the following: Conclusion of evaluation 56 (1) At the conclusion of its evaluation of the project, a designated office shall 2015, c. 19, s. 16 (2) Paragraphs 56(1)(a) to (d) of the English version of the Act are replaced by the following: (a) recommend to the decision bodies for the project that the project be allowed to proceed, if it determines that the project will not have significant adverse environmental or socio-economic effects in or outside Yukon; 2015-2016-2017 Chapter 34: An Act to amend the Yukon Environmental and Socio-economic Assessment Act and to make a consequential amendment to another Act Yukon Environmental and Socio-economic Assessment Act Sections 3-4 (b) recommend to those decision bodies that the project be allowed to proceed, subject to specified terms and conditions, if it determines that the project will have, or is likely to have, significant adverse environmental or socio-economic effects in or outside Yukon that can be mitigated by those terms and conditions; (c) recommend to those decision bodies that the project not be allowed to proceed, if it determines that the project will have, or is likely to have, significant adverse environmental or socio-economic effects in or outside Yukon that cannot be mitigated; or (d) refer the project to the executive committee for a screening, if, after taking into account any mitigative measures included in the project proposal, it cannot determine whether the project will have, or is likely to have, significant adverse environmental or socioeconomic effects. 2015, c. 19, s. 16 (3) Subsections 56(1.1) to (1.3) of the Act are repealed. 2015, c. 19, s. 17 4 (1) The portion of subsection 58(1) of the Act before paragraph (a) is replaced by the following: Conclusion of screening 58 (1) At the conclusion of its screening of the project, the executive committee shall 2015, c. 19, s. 17 (2) Paragraphs 58(1)(a) to (d) of the English version of the Act are replaced by the following: (a) recommend to the decision bodies for the project that the project be allowed to proceed without a review, if it determines that the project will not have significant adverse environmental or socio-economic effects in or outside Yukon; (b) recommend to those decision bodies that the project be allowed to proceed without a review, subject to specified terms and conditions, if it determines that the project will have, or is likely to have, significant adverse environmental or socio-economic effects in or outside Yukon that can be mitigated by those terms and conditions; (c) recommend to those decision bodies that the project not be allowed to proceed and not be subject to a review, if it determines that the project will have, or 2015-2016-2017 Chapter 34: An Act to amend the Yukon Environmental and Socio-economic Assessment Act and to make a consequential amendment to another Act Yukon Environmental and Socio-economic Assessment Act Sections 4-9 is likely to have, significant adverse environmental or socio-economic effects in or outside Yukon that cannot be mitigated; or (d) require a review of the project, if, after taking into account any mitigative measures included in the project proposal, it cannot determine whether the project will have, or is likely to have, significant adverse environmental or socio-economic effects. 2015, c. 19, s. 17 (3) Subsections 58(1.1) to (1.3) of the Act are repealed. 2015, c. 19, s. 21 5 Section 66.1 of the Act is repealed. 2015, c. 19, s. 23(2) 6 Subsections 72(4.1) to (4.4) of the Act are repealed. 2015, c. 19, s. 27 7 Subsection 77(2) of the Act is replaced by the following: Time limits (2) The executive committee or panel of the Board shall make a new recommendation to the decision bodies in respect of the project within the period prescribed by the rules. If it does not make such a recommendation, it is deemed to have made the same recommendation that it made at the conclusion of its screening or review. 2015, c. 19, s. 34 8 Section 121.1 of the Act and the heading before it are repealed. 2015, c. 19 Consequential Amendment to the Yukon and Nunavut Regulatory Improvement Act 9 Section 39 of the Yukon and Nunavut Regulatory Improvement Act is replaced by the following: Ongoing projects 39 The Yukon Environmental and Socioeconomic Assessment Act, as it read immediately before June 18, 2015, continues to apply to a proposal for a project that was submitted before that day. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 21 An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights and to make related amendments to the Special Economic Measures Act and the Immigration and Refugee Protection Act ASSENTED TO OCTOBER 18, 2017 BILL S-226 SUMMARY This enactment enacts the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights. It also proposes related amendments to the Special Economic Measures Act and to the Immigration and Refugee Protection Act. ii 64-65-66 ELIZABETH II CHAPTER 21 An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights and to make related amendments to the Special Economic Measures Act and the Immigration and Refugee Protection Act [Assented to 18th October, 2017] Preamble Whereas human rights and the rule of law are integral to international law and Canada has repeatedly asserted its commitment to promoting international justice and respect for human rights; Whereas signatory States to international human rights agreements have committed themselves to the obligations and responsibilities set out in those agreements; Whereas Sergei Magnitsky, a Moscow lawyer who uncovered the largest tax fraud in Russian history, was detained without trial, tortured and consequently died in a Moscow prison on November 16, 2009; Whereas no thorough, independent and objective investigation has been conducted by Russian authorities into the detention, torture and death of Sergei Magnitsky, nor have the individuals responsible been brought to justice; Whereas the unprecedented posthumous trial and conviction of Sergei Magnitsky in Russia for the very fraud he uncovered constitute a violation of the principles of fundamental justice and the rule of law; Whereas legislation and motions adopted by legislative assemblies in the United States, the European Parliament, the United Kingdom, the Netherlands, Italy, Poland and Canada have condemned the mistreatment of Sergei Magnitsky as "a violation of the principles of fundamental justice and the rule of law" and called for sanctions against any foreign nationals responsible for violations of internationally recognized human rights in a foreign country when authorities in that country are unable or unwilling to con2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Preamble duct a thorough, independent and objective investigation of the violations; Whereas the Litvinenko Inquiry report, presented to the United Kingdom Parliament on January 21, 2016, found that two Russian agents, Andrei Lugovoi and Dmitry Kovtun, were responsible for the assassination of Alexander Litvinenko and that there was a "strong possibility" that they were acting on behalf of the Russian Federal Security Service; Whereas Russian opposition politician Boris Nemtsov was assassinated outside the Kremlin on February 27, 2015, and to this day no thorough, independent and objective investigation has been conducted by Russian authorities; Whereas the Senate, on May 5, 2015, and the House of Commons, on March 25, 2015, by unanimous resolutions called upon the Government of Canada to explore and encourage sanctions against any foreign nationals responsible for the detention, torture and death of Sergei Magnitsky and to explore sanctions as appropriate against any foreign nationals responsible for violations of internationally recognized human rights in a foreign country, when authorities in that country are unable or unwilling to conduct a thorough, independent and objective investigation of the violations; Whereas member of the Ukrainian Parliament Lieutenant Nadiya Savchenko and other Ukrainians were illegally convicted and imprisoned in Russia in violation of international norms and fundamental justice; Whereas the Special Economic Measures Act authorizes the Government of Canada to take economic measures against a foreign state or national for the purpose of implementing a decision, resolution or recommendation of an international organization or association of states, or in cases of a grave breach of international peace and security that resulted or is likely to result in a serious international crisis; Whereas adding gross violations of internationally recognized human rights as a ground on which sanctions may be imposed against foreign states and nationals would further Canada’s support for human rights and advance its responsibility to protect activists who fight for human rights; Whereas it is important to acknowledge and remember Sergei Magnitsky’s sacrifice, as well as the sacrifice of other victims of gross violations of internationally recognized human rights; And whereas all violators of internationally recognized human rights should be treated and sanctioned equally throughout the world, 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Short Title Sections 1-2 Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short Title 1 This Act may be cited as the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). Interpretation Definitions 2 The following definitions apply in this Act. Canadian means a person who is a citizen within the meaning of the Citizenship Act or a corporation incorporated or continued by or under the laws of Canada or of a province. (Canadien) entity means a corporation, trust, partnership, fund, an unincorporated association or organization or a foreign state. (entité) foreign national means an individual who is not (a) a Canadian citizen; or (b) a permanent resident under the Immigration and Refugee Protection Act. (étranger ) foreign public official has the same meaning as in section 2 of the Corruption of Foreign Public Officials Act. (agent public étranger) foreign state means a country other than Canada, and includes (a) any of its political subdivisions; 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Interpretation Sections 2-4 (b) its government and any of its departments, or the government or any department of any of its political subdivisions; and (c) any of its agencies or any agency of any of its political subdivisions. (État étranger) Minister means the Minister of Foreign Affairs. (ministre) person means an individual or an entity. (personne) prescribed means prescribed by regulation. (version anglaise seulement) Her Majesty Binding on Her Majesty 3 This Act is binding on Her Majesty in right of Canada or a province. Orders and Regulations Orders and Regulations 4 (1) The Governor in Council may, if the Governor in Council is of the opinion that any of the circumstances described in subsection (2) has occurred, (a) make any orders or regulations with respect to the restriction or prohibition of any of the activities referred to in subsection (3) in relation to a foreign national that the Governor in Council considers necessary; and (b) by order, cause to be seized, frozen or sequestrated in the manner set out in the order any of the foreign national’s property situated in Canada. Circumstances (2) The circumstances referred to in subsection (1) are the following: (a) a foreign national is responsible for, or complicit in, extrajudicial killings, torture or other gross violations of internationally recognized human rights committed against individuals in any foreign state who seek (i) to expose illegal activity carried out by foreign public officials, or (ii) to obtain, exercise, defend or promote internationally recognized human rights and freedoms, such as freedom of conscience, religion, thought, 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Orders and Regulations Section 4 belief, opinion, expression, peaceful assembly and association, and the right to a fair trial and democratic elections; (b) a foreign national acts as an agent of or on behalf of a foreign state in a matter relating to an activity described in paragraph (a); (c) a foreign national, who is a foreign public official or an associate of such an official, is responsible for or complicit in ordering, controlling or otherwise directing acts of corruption — including bribery, the misappropriation of private or public assets for personal gain, the transfer of the proceeds of corruption to foreign states or any act of corruption related to expropriation, government contracts or the extraction of natural resources — which amount to acts of significant corruption when taking into consideration, among other things, their impact, the amounts involved, the foreign national’s influence or position of authority or the complicity of the government of the foreign state in question in the acts; or (d) a foreign national has materially assisted, sponsored, or provided financial, material or technological support for, or goods or services in support of, an activity described in paragraph (c). Restricted or prohibited activities (3) Orders and regulations may be made under paragraph (1)(a) with respect to the restriction or prohibition of any of the following activities, whether carried out in or outside Canada: (a) the dealing, directly or indirectly, by any person in Canada or Canadian outside Canada in any property, wherever situated, of the foreign national; (b) the entering into or facilitating, directly or indirectly, by any person in Canada or Canadian outside Canada, of any financial transaction related to a dealing referred to in paragraph (a); and (c) the provision by any person in Canada or Canadian outside Canada of financial services or any other services to, for the benefit of or on the direction or order of the foreign national; (d) the acquisition by any person in Canada or Canadian outside Canada of financial services or any other services for the benefit of or on the direction or order of the foreign national; and (e) the making available by any person in Canada or Canadian outside Canada of any property, wherever 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Orders and Regulations Sections 4-6 situated, to the foreign national or to a person acting on behalf of the foreign national. Order authorizing Minister (4) The Governor in Council may, by order, authorize the Minister to (a) issue to any person in Canada or Canadian outside Canada a permit to carry out a specified activity or transaction, or class of activity or transaction, that is restricted or prohibited under this Act or any order or regulations made under this Act; or (b) issue a general permit allowing any person in Canada or Canadian outside Canada to carry out a class of activity or transaction that is restricted or prohibited under this Act or any order or regulations made under this Act. Ministerial permit (5) The Minister may issue a permit or general permit, subject to any terms and conditions that are, in the opinion of the Minister, consistent with this Act and any order or regulations made under this Act. Revocation, etc. (6) The Minister may amend, suspend, revoke or reinstate any permit or general permit issued by the Minister. Tabling of order 5 A copy of each order or regulation made under section 4 must be tabled in each House of Parliament within 15 days after it is made. It may be sent to the Clerk of the House if the House is not sitting. Duty to Determine Determination 6 Each of the following entities must determine on a continuing basis whether it is in possession or control of property that it has reason to believe is the property of a foreign national who is the subject of an order or regulation made under section 4: (a) authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada or banks to which that Act applies; 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Duty to Determine Sections 6-7 (b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act; (c) foreign companies, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada; (d) companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act; (e) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act; (f) companies to which the Trust and Loan Companies Act applies; (g) trust companies regulated by a provincial Act; (h) loan companies regulated by a provincial Act; (i) entities that engage in any activity described in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act if the activity involves the opening of an account for a client; (j) entities authorized under provincial legislation to engage in the business of dealing in securities or to provide portfolio management or investment counselling services; and (k) other entities of a prescribed class of entities. Disclosure Duty to disclose — supervising and regulating agencies 7 (1) Every entity referred to in section 6 must disclose, every month, to the principal agency or body that supervises or regulates it under federal or provincial law, whether it is in possession or control of any property referred to in that section and, if so, the number of persons or dealings involved and the total value of the property. 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Disclosure Sections 7-8 Duty to disclose — RCMP or CSIS (2) Every person in Canada and every Canadian outside Canada must disclose without delay to the Commissioner of the Royal Canadian Mounted Police or the Director of the Canadian Security Intelligence Service (a) that they have reason to believe that property in their possession or control is owned, held or controlled by or on behalf of a foreign national who is the subject of an order or regulation made under section 4; and (b) any information about a transaction or proposed transaction in respect of property referred to in paragraph (a). Immunity (3) No proceedings under this Act and no civil proceedings lie against a person for a disclosure made in good faith under subsection (1) or (2). Rights of Foreign Nationals Who are the Subject of an Order or Regulation Application 8 (1) A foreign national who is the subject of an order or regulation made under section 4 may apply in writing to the Minister to cease being the subject of the order or regulation. Recommendation (2) On receipt of the application, the Minister must decide whether there are reasonable grounds to recommend to the Governor in Council that the order or regulation be amended or repealed, as the case may be, so that the applicant ceases to be the subject of it. Time limit (3) The Minister must make a decision on the application within 90 days after the day on which the application is received. Notice if application rejected (4) The Minister must give notice without delay to the applicant of any decision to reject the application. 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Rights of Foreign Nationals Who are the Subject of an Order or Regulation Sections 8-10 New application (5) If there has been a material change in the applicant’s circumstances since their last application under subsection (1) was submitted, he or she may submit another application. Application for a Certificate Mistaken identity 9 (1) Any person in Canada or any Canadian outside Canada whose name is the same as or similar to the name of a foreign national who is the subject of an order or regulation made under section 4 may, if they claim not to be that foreign national, apply to the Minister in writing for a certificate stating that they are not that foreign national. Determination by Minister (2) Within 45 days after the day on which the application was received, the Minister must, (a) if he or she is satisfied that the applicant is not the foreign national, issue the certificate to the applicant; or (b) if he or she is not so satisfied, provide a notice to the applicant of his or her determination. Reasonable expenses 10 (1) A foreign national who is the subject of an order or regulation made under section 4 may apply to the Minister in writing for a certificate to exempt property from the application of the order or regulation if the property is necessary to meet the reasonable expenses of the person and their dependents. Certificate (2) If the Minister determines that the property is necessary to meet the reasonable expenses of the applicant and their dependents, the Minister must issue a certificate to the applicant. Time limit (3) The Minister must make a decision on the application and, if applicable, issue a certificate within 90 days after the day on which the application is received. 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Offences Sections 11-16 Offences Offence and punishment 11 Every person who knowingly contravenes or fails to comply with an order or regulation made under section 4 (a) is guilty of an indictable offence and is liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction and is liable to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both. General No civil liability 12 A person who, in relation to any property that is the subject of an order or regulation made under section 4, acts reasonably in taking, or omitting to take, measures to comply with the order or regulation is not liable in any civil action arising from having taken or omitted to take the measures if they took all reasonable steps to satisfy themselves that the property was property that is the subject of the order or regulation. Existing equities maintained 13 All secured and unsecured rights and interests in any property that is the subject of an order or regulation made under section 4 that are held by a person, other than the foreign national who is the subject of the order or regulation, are entitled to the same ranking that they would have been entitled to had the order or regulation not been made. Proceedings not precluded 14 The making of an order or regulation under section 4 does not preclude the commencement of proceedings under any Act of Parliament other than this Act, or any civil proceedings, in respect of any property that is the subject of the order or regulation. Regulations 15 The Governor in Council may make regulations for carrying out the purposes and provisions of this Act. Review and Report Review 16 (1) Within five years after the day on which this section comes into force, a comprehensive review of the pro2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Review and Report Sections 16-17 visions and operation of this Act and of the Special Economic Measures Act must be undertaken by the committees of the Senate and of the House of Commons that are designated or established by each House for that purpose. Report (2) The committees referred to in subsection (1) must, within a year after a review is undertaken under that subsection or within any further time that may be authorized by the Senate or the House of Commons, as the case may be, submit a report on the review to Parliament, including a statement of any changes that the committees recommend. Review (3) Committees of the Senate and the House of Commons that are designated or established by each House for that purpose may conduct a review concerning the foreign nationals who are the subject of an order or regulation made under this Act and submit a report to the appropriate House together with their recommendations as to whether those foreign nationals should remain, or no longer be, the subject of that order or regulation. Related Amendments 1992, c. 17 Special Economic Measures Act 17 (1) The portion of subsection 4(1) of the Special Economic Measures Act before paragraph (a) is replaced by the following: Orders and regulations 4 (1) The Governor in Council may, if the Governor in Council is of the opinion that any of the circumstances described in subsection (1.1) has occurred, (2) Section 4 of the Act is amended by adding the following after subsection (1): Circumstances (1.1) The circumstances referred to in subsection (1) are the following: 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Related Amendments Special Economic Measures Act Sections 17-18 (a) an international organization of states or association of states, of which Canada is a member, has made a decision or a recommendation or adopted a resolution calling on its members to take economic measures against a foreign state; (b) a grave breach of international peace and security has occurred that has resulted in or is likely to result in a serious international crisis; (c) gross and systematic human rights violations have been committed in a foreign state; or (d) a national of a foreign state who is either a foreign public official, within the meaning of section 2 of the Corruption of Foreign Public Officials Act, or an associate of such an official, is responsible for or complicit in ordering, controlling or otherwise directing acts of corruption — including bribery, the misappropriation of private or public assets for personal gain, the transfer of the proceeds of corruption to foreign states or any act of corruption related to expropriation, government contracts or the extraction of natural resources — which amount to acts of significant corruption when taking into consideration, among other things, their impact, the amounts involved, the foreign national’s influence or position of authority or the complicity of the government of the foreign state in question in the acts. 2001, c. 27 Immigration and Refugee Protection Act 18 (1) Subsection 35(1) of the Immigration and Refugee Protection Act is amended by striking out “or” at the end of paragraph (b), and by adding the following after paragraph (c): (d) being a person, other than a permanent resident, who is currently the subject of an order or regulation made under section 4 of the Special Economic Measures Act on the grounds that any of the circumstances described in paragraph 4(1.1)(c) or (d) of that Act has occurred; or (e) being a person, other than a permanent resident, who is currently the subject of an order or regulation made under section 4 of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). (2) Section 35 of the Act is amended by adding the following after subsection (1): 2015-2016-2017 Chapter 21: An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights ... Related Amendments Immigration and Refugee Protection Act Section 18 Clarification (2) For greater certainty, despite section 33, a person who ceases being the subject of an order or regulation referred to in paragraph (1)(d) or (e) is no longer inadmissible under that paragraph. Published under authority of the Senate of Canada 2015-2016-2017

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 23 An Act to amend the Criminal Code (mischief) ASSENTED TO DECEMBER 12, 2017 BILL C-305 SUMMARY This enactment amends the Criminal Code to add to the offence of mischief relating to religious property the act of mischief in relation to property that is used for educational purposes, for administrative, social, cultural or sports activities or events or as a residence for seniors. i 64-65-66 ELIZABETH II CHAPTER 23 An Act to amend the Criminal Code (mischief) [Assented to 12th December, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. C-46 Criminal Code 1 (1) The portion of subsection 430(4.1) of the Criminal Code before paragraph (a) is replaced by the following: Mischief relating to religious property, educational institutions, etc. (4.1) Everyone who commits mischief in relation to property described in any of paragraphs (4.101)(a) to (d), if the commission of the mischief is motivated by bias, prejudice or hate based on religion, race, colour, national or ethnic origin, age, sex, sexual orientation or mental or physical disability, (2) Section 430 of the Act is amended by adding the following after subsection (4.1): Definition of property (4.101) For the purposes of subsection (4.1), property means (a) a building or structure, or part of a building or structure, that is primarily used for religious worship — including a church, mosque, synagogue or temple —, an object associated with religious worship located in or on the grounds of such a building or structure, or a cemetery; (b) a building or structure, or part of a building or structure, that is primarily used by an identifiable group as defined in subsection 318(4) as an educational institution — including a school, daycare centre, college or university —, or an object associated with 2015-2016-2017 Chapter 23: An Act to amend the Criminal Code (mischief) Criminal Code Sections 1-2 that institution located in or on the grounds of such a building or structure; (c) a building or structure, or part of a building or structure, that is primarily used by an identifiable group as defined in subsection 318(4) for administrative, social, cultural or sports activities or events — including a town hall, community centre, playground or arena —, or an object associated with such an activity or event located in or on the grounds of such a building or structure; or (d) a building or structure, or part of a building or structure, that is primarily used by an identifiable group as defined in subsection 318(4) as a residence for seniors or an object associated with that residence located in or on the grounds of such a building or structure. Coordinating Amendment Bill C-16 2 If Bill C-16, introduced in the 1st session of the 42nd Parliament and entitled An Act to amend the Canadian Human Rights Act and the Criminal Code, receives royal assent, then, on the first day on which both section 3 of that Act and section 1 of this Act are in force, the portion of subsection 430(4.1) of the Criminal Code before paragraph (a) is replaced by the following: Mischief relating to religious property, educational institutions, etc. (4.1) Everyone who commits mischief in relation to property described in any of paragraphs (4.101)(a) to (d), if the commission of the mischief is motivated by bias, prejudice or hate based on colour, race, religion, national or ethnic origin, age, sex, sexual orientation, gender identity or expression or mental or physical disability, Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 22 An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) ASSENTED TO OCTOBER 18, 2017 BILL S-231 SUMMARY This enactment amends the Canada Evidence Act to protect the confidentiality of journalistic sources. It allows journalists to not disclose information or a document that identifies or is likely to identify a journalistic source unless the information or document cannot be obtained by any other reasonable means and the public interest in the administration of justice outweighs the public interest in preserving the confidentiality of the journalistic source. The enactment also amends the Criminal Code so that only a judge of a superior court of criminal jurisdiction or a judge within the meaning of section 552 of that Act may issue a search warrant relating to a journalist. It also provides that a search warrant can be issued only if the judge is satisfied that there is no other way by which the desired information can reasonably be obtained and that the public interest in the investigation and prosecution of a criminal offence outweighs the journalist’s right to privacy in the collection and dissemination of information. The judge must also be satisfied that these same conditions apply before an officer can examine, reproduce or make copies of a document obtained under a search warrant relating to a journalist. ii 64-65-66 ELIZABETH II CHAPTER 22 An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) [Assented to 18th October, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short Title 1 This Act may be cited as the Journalistic Sources Protection Act. R.S., c. C-5 Canada Evidence Act 2 The Canada Evidence Act is amended by adding the following after section 39: Journalistic Sources Definitions 39.1 (1) The following definitions apply in this section. document has the same meaning as in section 487.011 of the Criminal Code. (document) journalist means a person whose main occupation is to contribute directly, either regularly or occasionally, for consideration, to the collection, writing or production of information for dissemination by the media, or anyone who assists such a person. (journaliste) journalistic source means a source that confidentially transmits information to a journalist on the journalist’s undertaking not to divulge the identity of the source, 2015-2016-2017 Chapter 22: An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) Canada Evidence Act Section 2 whose anonymity is essential to the relationship between the journalist and the source. (source journalistique) Objection (2) Subject to subsection (7), a journalist may object to the disclosure of information or a document before a court, person or body with the authority to compel the disclosure of information on the grounds that the information or document identifies or is likely to identify a journalistic source. Former journalist (3) For the purposes of subsections (2) and (7), journalist includes an individual who was a journalist when information that identifies or is likely to identify the journalistic source was transmitted to that individual. Power of court, person or body (4) The court, person or body may raise the application of subsection (2) on their own initiative. Objection of court, person or body (5) When an objection or the application of subsection (2) is raised, the court, person or body shall ensure that the information or document is not disclosed other than in accordance with this section. Observations (6) Before determining the question, the court, person or body must give the parties and interested persons a reasonable opportunity to present observations. Authorization (7) The court, person or body may authorize the disclosure of information or a document only if they consider that (a) the information or document cannot be produced in evidence by any other reasonable means; and (b) the public interest in the administration of justice outweighs the public interest in preserving the confidentiality of the journalistic source, having regard to, among other things, (i) the importance of the information or document to a central issue in the proceeding, (ii) freedom of the press, and 2015-2016-2017 Chapter 22: An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) Canada Evidence Act Sections 2-3 (iii) the impact of disclosure on the journalistic source and the journalist. Conditions (8) An authorization under subsection (7) may contain any conditions that the court, person or body considers appropriate to protect the identity of the journalistic source. Burden of proof (9) A person who requests the disclosure has the burden of proving that the conditions set out in subsection (7) are fulfilled. Appeal (10) An appeal lies from a determination under subsection (7) (a) to the Federal Court of Appeal from a determination of the Federal Court; (b) to the court of appeal of a province from a determination of a superior court of the province; (c) to the Federal Court from a determination of a court, person or body vested with power to compel production by or under an Act of Parliament if the court, person or body is not established under a law of a province; or (d) to the trial division or trial court of the superior court of the province within which the court, person or body exercises its jurisdiction, in any other case. Limitation period for appeal (11) An appeal under subsection (10) shall be brought within 10 days after the date of the determination appealed from or within any further time that the court having jurisdiction to hear the appeal considers appropriate in the circumstances. Hearing in summary way (12) An appeal under subsection (10) shall be heard and determined without delay and in a summary way. R.S., c. C-46 Criminal Code 3 The Criminal Code is amended by adding the following after section 488: 2015-2016-2017 Chapter 22: An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) Criminal Code Section 3 Definitions 488.01 (1) The following definitions apply in this section and in section 488.02. data has the same meaning as in section 487.011. (données) document has the same meaning as in section 487.011. (document) journalist has the same meaning as in subsection 39.1(1) of the Canada Evidence Act. (journaliste) journalistic source has the same meaning as in subsection 39.1(1) of the Canada Evidence Act. (source journalistique) officer means a peace officer or public officer. (fonctionnaire) Warrant, authorization and order (2) Despite any other provision of this Act, if an applicant for a warrant under section 487.01, 487.1, 492.1 or 492.2, a search warrant under this Act, notably under section 487, an authorization under section 184.2, 184.3, 186 or 188, or an order under any of sections 487.014 to 487.017 knows that the application relates to a journalist’s communications or an object, document or data relating to or in the possession of a journalist, they shall make an application to a judge of a superior court of criminal jurisdiction or to a judge as defined in section 552. That judge has exclusive jurisdiction to dispose of the application. Warrant, authorization and order (3) A judge may issue a warrant, authorization or order under subsection (2) only if, in addition to the conditions required for the issue of the warrant, authorization or order, he or she is satisfied that (a) there is no other way by which the information can reasonably be obtained; and (b) the public interest in the investigation and prosecution of a criminal offence outweighs the journalist’s right to privacy in gathering and disseminating information. Special Advocate (4) The judge to whom the application for the warrant, authorization or order is made may, in his or her discretion, request that a special advocate present observations 2015-2016-2017 Chapter 22: An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) Criminal Code Section 3 in the interests of freedom of the press concerning the conditions set out in subsection (3). Offence by journalist — exception (5) Subsections (3) and (4) do not apply in respect of an application for a warrant, authorization or order that is made in relation to the commission of an offence by a journalist. Offence by journalist — order (6) If a warrant, authorization or order referred to in subsection (2) is sought in relation to the commission of an offence by a journalist and the judge considers it necessary to protect the confidentiality of journalistic sources, the judge may order that some or all documents obtained pursuant to the warrant, authorization or order are to be dealt with in accordance with section 488.02. Conditions (7) The warrant, authorization or order referred to in subsection (2) may contain any conditions that the judge considers appropriate to protect the confidentiality of journalistic sources and to limit the disruption of journalistic activities. Powers (8) The judge who rules on the application for the warrant, authorization or order referred to in subsection (2) has the same powers, with the necessary adaptations, as the authority who may issue the warrant, authorization or order. Discovery of relation to journalist (9) If an officer, acting under a warrant, authorization or order referred to in subsection (2) for which an application was not made in accordance with that subsection, becomes aware that the warrant, authorization or order relates to a journalist’s communications or an object, document or data relating to or in the possession of a journalist, the officer shall, as soon as possible, make an ex parte application to a judge of a superior court of criminal jurisdiction or a judge as defined in section 552 and, until the judge disposes of the application, (a) refrain from examining or reproducing, in whole or in part, any document obtained pursuant to the warrant, authorization or order; and (b) place any document obtained pursuant to the warrant, authorization or order in a sealed packet and keep it in a place to which the public has no access. 2015-2016-2017 Chapter 22: An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) Criminal Code Section 3 Powers of judge (10) On an application under subsection (9), the judge may (a) confirm the warrant, authorization or order if the judge is of the opinion that no additional conditions to protect the confidentiality of journalistic sources and to limit the disruption of journalistic activities should be imposed; (b) vary the warrant, authorization or order to impose any conditions that the judge considers appropriate to protect the confidentiality of journalistic sources and to limit the disruption of journalistic activities; (c) if the judge considers it necessary to protect the confidentiality of journalistic sources, order that some or all documents that were or will be obtained pursuant to the warrant, authorization or order are to be dealt with in accordance with section 488.02; or (d) revoke the warrant, authorization or order if the judge is of the opinion that the applicant knew or ought reasonably to have known that the application for the warrant, authorization or order related to a journalist’s communications or an object, document or data relating to or in the possession of a journalist. Documents 488.02 (1) Any document obtained pursuant to a warrant, authorization or order issued in accordance with subsection 488.01(3), or that is the subject of an order made under subsection 488.01(6) or paragraph 488.01(10)(c), is to be placed in a packet and sealed by the court that issued the warrant, authorization or order and is to be kept in the custody of the court in a place to which the public has no access or in such other place as the judge may authorize and is not to be dealt with except in accordance with this section. Notice (2) No officer is to examine or reproduce, in whole or in part, a document referred to in subsection (1) without giving the journalist and relevant media outlet notice of his or her intention to examine or reproduce the document. Application (3) The journalist or relevant media outlet may, within 10 days of receiving the notice referred to in subsection (2), apply to a judge of the court that issued the warrant, authorization or order to issue an order that the document is not to be disclosed to an officer on the grounds 2015-2016-2017 Chapter 22: An Act to amend the Canada Evidence Act and the Criminal Code (protection of journalistic sources) Criminal Code Section 3 that the document identifies or is likely to identity a journalistic source. Disclosure: prohibition (4) A document that is subject to an application under subsection (3) is to be disclosed to an officer only following a disclosure order in accordance with paragraph (7)(b). Disclosure order (5) The judge may order the disclosure of a document only if he or she is satisfied that (a) there is no other way by which the information can reasonably be obtained; and (b) the public interest in the investigation and prosecution of a criminal offence outweighs the journalist’s right to privacy in gathering and disseminating information. Examination (6) The judge may, if he or she considers it necessary, examine a document to determine whether it should be disclosed. Order (7) The judge must, (a) if he or she is of the opinion that the document should not be disclosed, order that it be returned to the journalist or the media outlet, as the case may be; or (b) if he or she is of the opinion that the document should be disclosed, order that it be delivered to the officer who gave the notice under subsection (2), subject to such restrictions and conditions as the judge deems appropriate. Published under authority of the Senate of Canada 2015-2016-2017

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 13 An Act to amend the Canadian Human Rights Act and the Criminal Code ASSENTED TO JUNE 19, 2017 BILL C-16 SUMMARY This enactment amends the Canadian Human Rights Act to add gender identity and gender expression to the list of prohibited grounds of discrimination. The enactment also amends the Criminal Code to extend the protection against hate propaganda set out in that Act to any section of the public that is distinguished by gender identity or expression and to clearly set out that evidence that an offence was motivated by bias, prejudice or hate based on gender identity or expression constitutes an aggravating circumstance that a court must take into consideration when it imposes a sentence. ii 64-65-66 ELIZABETH II CHAPTER 13 An Act to amend the Canadian Human Rights Act and the Criminal Code [Assented to 19th June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. H-6 Canadian Human Rights Act 1998, c. 9, s. 9; 2012, c. 1, s. 137(E) 1 Section 2 of the Canadian Human Rights Act is replaced by the following: Purpose 2 The purpose of this Act is to extend the laws in Canada to give effect, within the purview of matters coming within the legislative authority of Parliament, to the principle that all individuals should have an opportunity equal with other individuals to make for themselves the lives that they are able and wish to have and to have their needs accommodated, consistent with their duties and obligations as members of society, without being hindered in or prevented from doing so by discriminatory practices based on race, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, disability or conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered. 1996, c. 14, s. 2; 2012, c. 1, s. 138(E) 2 Subsection 3(1) of the Act is replaced by the following: Prohibited grounds of discrimination 3 (1) For all purposes of this Act, the prohibited grounds of discrimination are race, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, disability 2015-2016-2017 Chapter 13: An Act to amend the Canadian Human Rights Act and the Criminal Code Canadian Human Rights Act Sections 2-4 and conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered. R.S., c. C-46 Criminal Code 2014, c. 31, s. 12 3 Subsection 318(4) of the Criminal Code is replaced by the following: Definition of identifiable group (4) In this section, identifiable group means any section of the public distinguished by colour, race, religion, national or ethnic origin, age, sex, sexual orientation, gender identity or expression, or mental or physical disability. 1995, c. 22, s. 6 4 Subparagraph 718.2(a)(i) of the Act is replaced by the following: (i) evidence that the offence was motivated by bias, prejudice or hate based on race, national or ethnic origin, language, colour, religion, sex, age, mental or physical disability, sexual orientation, or gender identity or expression, or on any other similar factor, Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 12 An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act ASSENTED TO JUNE 19, 2017 BILL C-4 SUMMARY This enactment amends the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act to restore the procedures for the certification and the revocation of certification of bargaining agents that existed before June 16, 2015. It also amends the Income Tax Act to remove from that Act the requirement that labour organizations and labour trusts provide annually to the Minister of National Revenue certain information returns containing specific information that would be made available to the public. ii 64-65-66 ELIZABETH II CHAPTER 12 An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act [Assented to 19th June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. L-2 Canada Labour Code 2014, c. 40, s. 2 1 Section 28 of the Canada Labour Code is replaced by the following: Duty to certify trade union 28 The Board shall, subject to this Part, certify a trade union as the bargaining agent for a bargaining unit if the Board (a) has received from the trade union an application for certification as the bargaining agent for a unit; (b) has determined the unit that constitutes a unit appropriate for collective bargaining; and (c) is satisfied that, as of the date of the filing of the application or of any other date that the Board considers appropriate, a majority of the employees in the unit wish to have the trade union represent them as their bargaining agent. 2 (1) Section 29 of the Act is amended by adding the following before subsection (1.1): Representation vote 29 (1) The Board may, in any case, for the purpose of satisfying itself as to whether employees in a unit wish to have a particular trade union represent them as their 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Canada Labour Code Sections 2-4 bargaining agent, order that a representation vote be taken among the employees in the unit. (2) Section 29 of the Act is amended by adding the following after subsection (1.1): Mandatory vote (2) If a trade union applies for certification as the bargaining agent for a unit in respect of which no other trade union is the bargaining agent, and the Board is satisfied that not less than 35% and not more than 50% of the employees in the unit are members of the trade union, the Board shall order that a representation vote be taken among the employees in the unit. 2014, c. 40, s. 4(1) 3 (1) Subsection 38(1) of the Act is replaced by the following: Application for revocation of certification 38 (1) If a trade union has been certified as the bargaining agent for a bargaining unit, any employee who claims to represent a majority of the employees in the bargaining unit may, subject to subsection (5), apply to the Board for an order revoking the certification of that trade union. 2014, c. 40, s. 4(2) (2) Subsection 38(3) of the Act is replaced by the following: Application for order that bargaining agent not entitled to represent bargaining unit (3) If a collective agreement applicable to a bargaining unit is in force but the bargaining agent that is a party to the collective agreement has not been certified by the Board, any employee who claims to represent a majority of the employees in the bargaining unit may, subject to subsection (5), apply to the Board for an order declaring that the bargaining agent is not entitled to represent the employees in the bargaining unit. 2014, c. 40, s. 5 4 Section 39 of the Act is replaced by the following: Order revoking certification or declaring bargaining agent not entitled to represent bargaining unit 39 (1) If, on receipt of an application for an order made under subsection 38(1) or (3) in respect of a bargaining agent for a bargaining unit, and after any inquiry by way of a representation vote or otherwise that the Board considers appropriate in the circumstances, the Board is 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Canada Labour Code Sections 4-5 satisfied that a majority of the employees in the bargaining unit no longer wish to have the bargaining agent represent them, the Board shall, subject to subsection (2), by order, (a) in the case of an application made under subsection 38(1), revoke the certification of the trade union as the bargaining agent for the bargaining unit; or (b) in the case of an application made under subsection 38(3), declare that the bargaining agent is not entitled to represent the employees in the bargaining unit. Limitation (2) If no collective agreement applicable to a bargaining unit is in force, an order shall not be made under paragraph (1)(a) in relation to the bargaining agent for the bargaining unit unless the Board is satisfied that the bargaining agent has failed to make a reasonable effort to enter into a collective agreement in relation to the bargaining unit. R.S., c. 33 (2nd Supp.) Parliamentary Employment and Staff Relations Act 2014, c. 40, s. 6 5 Section 25 of the Parliamentary Employment and Staff Relations Act is replaced by the following: Certification of employee organization as bargaining unit 25 The Board shall, subject to this Part, certify an employee organization as bargaining agent for the employees in a bargaining unit if the Board (a) has received from the employee organization an application for certification as the bargaining agent for the bargaining unit in accordance with this Part; (b) has determined the group of employees that constitutes a unit appropriate for collective bargaining in accordance with section 23; (c) is satisfied that a majority of employees in the bargaining unit wish the employee organization to represent them as their bargaining agent; and (d) is satisfied that the persons representing the employee organization in the making of the application have been duly authorized to make the application. 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Parliamentary Employment and Staff Relations Act Sections 6-7 2014, c. 40, s. 7(1) 6 (1) The portion of subsection 26(1) of the Act before paragraph (a) is replaced by the following: Powers of Board in relation to certification 26 (1) For the purpose of enabling the Board to discharge any obligation imposed by section 25 to satisfy itself as to the matters described in paragraphs (c) and (d) of that section, the Board may (2) Section 26 of the Act is amended by adding the following after subsection (1): Representation vote directed to be taken (2) For the purpose of satisfying itself under paragraph 25(c) that a majority of employees in the bargaining unit wish the employee organization to represent them as their bargaining agent, the Board, in its sole discretion, may direct that a representation vote be taken among the employees in the bargaining unit. 2014, c. 40, s. 7(3) (3) The portion of subsection 26(3) of the Act before paragraph (a) is replaced by the following: Arrangements to be made for representation vote (3) If, under subsection (2), the Board directs that a representation vote be taken, the Board shall 2014, c. 40, s. 8(1) 7 (1) Subsection 29(1) of the Act is replaced by the following: Application for declaration that employee organization no longer represents employees 29 (1) If a collective agreement or an arbitral award is in force in respect of a bargaining unit, any person claiming to represent a majority of the employees in the bargaining unit may, in accordance with subsection (2), apply to the Board for a declaration that the employee organization certified as bargaining agent for that bargaining unit no longer represents a majority of the employees in the bargaining unit. 2014, c. 40, s. 8(2) (2) Subsections 29(3) to (5) of the Act are replaced by the following: 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Parliamentary Employment and Staff Relations Act Sections 7-8 If no collective agreement or award in force (3) If no collective agreement or arbitral award is in force in respect of a bargaining unit, any person claiming to represent a majority of the employees in the bargaining unit may, at any time after the 12-month period following the date of certification of the bargaining agent for that bargaining unit, apply to the Board for a declaration that the employee organization certified as bargaining agent for that bargaining unit no longer represents a majority of the employees in the bargaining unit. Taking of representation vote (4) On an application under subsection (1) or (3), the Board in its sole discretion may direct the taking of a representation vote to determine whether a majority of the employees in the bargaining unit no longer wish to be represented by the employee organization that is the bargaining agent for that bargaining unit, and in relation to the taking of such a vote the provisions of subsection 26(3) apply. Revocation of certification of employee organization (5) After hearing any application under subsection (1) or (3), the Board shall revoke the certification of an employee organization as bargaining agent for a bargaining unit if the Board is satisfied that a majority of the employees in the bargaining unit no longer wish to be represented by the employee organization. 2003, c. 22, s. 2 Public Service Labour Relations Act 2014, c. 40, s. 9 8 Subsections 64(1) and (1.1) of the Public Service Labour Relations Act are replaced by the following: Conditions for certification 64 (1) After having determined the unit appropriate for collective bargaining, the Board must certify the applicant employee organization as the bargaining agent for the bargaining unit if the Board is satisfied (a) that a majority of employees in that bargaining unit wish the applicant employee organization to represent them as their bargaining agent; (b) that the persons representing the employee organization in the making of the application have been duly authorized to make the application; and 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Public Service Labour Relations Act Sections 8-11 (c) if the applicant is a council of employee organizations, that each of the employee organizations forming the council has vested appropriate authority in the council to enable it to discharge the duties and responsibilities of a bargaining agent. 9 Section 65 of the Act is amended by adding the following before subsection (2): Representation vote 65 (1) The Board may order that a representation vote be taken among the employees in the bargaining unit for the purpose of satisfying itself that a majority of them wish the applicant employee organization to represent them as their bargaining agent. 2014, c. 40, s. 11 10 Subsection 94(1) of the Act is replaced by the following: When employee organization no longer represents employees 94 (1) Any person claiming to represent a majority of the employees in a bargaining unit bound by a collective agreement or an arbitral award may apply to the Board for a declaration that the employee organization that is certified as the bargaining agent for the bargaining unit no longer represents a majority of the employees in the bargaining unit. 2014, c. 40, s. 12 11 Sections 95 and 96 of the Act are replaced by the following: Taking of representation vote 95 After the application is made, the Board may order that a representation vote be taken to determine whether a majority of the employees in the bargaining unit no longer wish to be represented by the employee organization that is the bargaining agent for that bargaining unit. The provisions of subsection 65(2) apply in relation to the taking of the vote. Revocation of certification 96 If, after hearing the application, the Board is satisfied that a majority of the employees in the bargaining unit no longer wish to be represented by the employee organization, it must revoke the certification of the employee organization as the bargaining agent. 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Income Tax Act Sections 12-16 R.S., c. 1 (5th Supp.) Income Tax Act 12 Section 149.01 of the Income Tax Act is repealed. 13 Subsection 239(2.31) of the Act is repealed. Transitional Provisions Canada Labour Code — existing applications 14 If the Canada Industrial Relations Board has, during the period beginning on June 16, 2015 and ending immediately before the day on which section 1 comes into force, received an application for certification referred to in paragraph 28(2)(a) of the Canada Labour Code or an application for an order made under subsection 38(1) or (3) of that Act, and the application has not been finally disposed of before that coming into force, that application is to be dealt with and disposed of in accordance with that Act as it read immediately before that coming into force. Parliamentary Employment and Staff Relations Act — existing applications 15 If the Public Service Labour Relations and Employment Board has, during the period beginning on June 16, 2015 and ending immediately before the day on which section 5 comes into force, received an application for certification referred to in paragraph 25(2)(a) of the Parliamentary Employment and Staff Relations Act or an application for a declaration made under subsection 29(1) or (3) of that Act, and the application has not been finally disposed of before that coming into force, that application is to be dealt with and disposed of in accordance with that Act as it read immediately before that coming into force. Public Service Labour Relations Act — existing applications 16 If the Public Service Labour Relations and Employment Board has, during the period beginning on June 16, 2015 and ending immediately before the day on which section 8 comes into force, received an application for certification referred to in paragraph 64(1.1)(a) of the Public Service Labour Relations Act or an application for a declaration made under subsection 94(1) of that Act, and the application has not been finally disposed of before that coming into force, that application 2015-2016-2017 Chapter 12: An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and ... Transitional Provisions Sections 16-17 is to be dealt with and disposed of in accordance with that Act as it read immediately before that coming into force. Coming into Force Third day after royal assent 17 This Act, other than sections 12 and 13, comes into force on the third day after the day on which it receives royal assent. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 10 An Act to amend the Rouge National Urban Park Act, the Parks Canada Agency Act and the Canada National Parks Act ASSENTED TO JUNE 19, 2017 BILL C-18 SUMMARY This enactment amends the Rouge National Urban Park Act to set out priorities in respect of factors to be considered in the management of the park. Additionally, it adds land to the park. It also amends the Parks Canada Agency Act to allow the New Parks and Historic Sites Account to be used in a broader manner. Finally, it amends the Canada National Parks Act to modify the boundary of Wood Buffalo National Park of Canada. ii 64-65-66 ELIZABETH II CHAPTER 10 An Act to amend the Rouge National Urban Park Act, the Parks Canada Agency Act and the Canada National Parks Act [Assented to 19th June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 2015, c. 10 Rouge National Urban Park Act 1 Section 2 of the Rouge National Urban Park Act is amended by adding the following in alphabetical order: ecological integrity means, with respect to the Park, a condition that is determined to be characteristic of its natural region and likely to persist, including abiotic components and the composition and abundance of native species and biological communities, rates of change and supporting processes. (intégrité écologique) 2 Section 6 of the Act is replaced by the following: Factors to be considered 6 (1) Maintenance or restoration of ecological integrity, through the protection of natural resources and natural processes, must be the first priority of the Minister when considering all aspects of the management of the Park. For greater certainty (2) For greater certainty, subsection (1) does not prevent the carrying out of agricultural activities as provided for in this Act. 3 The schedule to the Act is amended by adding the following after the last paragraph: 2015-2016-2017 Chapter 10: An Act to amend the Rouge National Urban Park Act, the Parks Canada Agency Act and the Canada National Parks Act Rouge National Urban Park Act Sections 3-4 Fourthly; Parcels 1, 2, 3 and 4, Plan 105195 CLSR, being part of Lots 26, 27, 28, 29 and part of the East 3/4 of Lot 30, Concession 8, and part of Lots 26, 27, 28, 29 and 30, Concession 9, and all of Lots 26, 27, 28, 29 and 30, Concession 10, containing 773.68 hectares, or 7.7368 square kilometres, more or less; Fifthly; Parcels 1 and 2, Plan 105196 CLSR, being part of Lots 21, 22, 23, 24 and 25, Concession 9, and all of Lots 21, 22 and 23 and all of South Half of Lot 24, all of North Half of Lot 24, all of West Half of Lot 25 and all of East Part of Lot 25, Concession 10, containing 678 hectares, or 6.78 square kilometres, more or less; Sixthly; Parcel 1, Plan 105197 CLSR, being part of Lot 17 and all of Lots 18, 19 and 20, Concession 10, containing 217 hectares, or 2.17 square kilometres, more or less. 1998, c. 31 Parks Canada Agency Act 2002, c. 18, s. 38(1) 4 (1) Paragraphs 21(3)(b) and (c) of the Parks Canada Agency Act are replaced by the following: (b) to acquire any real property or immovables for the purpose of establishing, enlarging or designating, as the case may be, any national park, national historic site, national marine conservation area or other protected heritage area; (c) to develop or maintain any national park, national historic site, national marine conservation area or other protected heritage area that is being established, enlarged or designated, and to make any related contribution or other payment; 2002, c. 18, s. 38(1) (2) Subsections 21(4) and (5) of the Act are repealed. 2015-2016-2017 Chapter 10: An Act to amend the Rouge National Urban Park Act, the Parks Canada Agency Act and the Canada National Parks Act Canada National Parks Act Sections 5-6 2000, c. 32 Canada National Parks Act 5 The last paragraph of the description of Wood Buffalo National Park of Canada in Part 2 of Schedule 1 to the Canada National Parks Act is replaced by the following: Ninthly: in Theoretical Township 112, Range 23, West of the 4th Meridian and in Theoretical Townships 111 and 112, Range 24, West of the 4th Meridian, all that land and land covered with water labelled Garden River Indian Reserve No. 238 as shown on Plan 100429 recorded in the Canada Lands Surveys Records in Ottawa of which a copy is deposited in the Alberta Land Titles Office in Edmonton under Plan Number 1222163, the said Garden River Indian Reserve No. 238 containing 37.41 square kilometres (3 741 hectares), more or less, together with all mines and minerals. 6 Part 2 of Schedule 1 to the French version of the Act is amended by replacing “canton” with “township” in the following provisions of the description of Wood Buffalo National Park of Canada: (a) the paragraph beginning with “Secondly”; (b) the paragraph beginning with “Thirdly”; (c) the paragraph beginning with “Fourthly”; (d) the paragraph beginning with “Fifthly”; (e) the paragraph beginning with “Sixthly”; and (f) the paragraph beginning with “Seventhly”. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 11 An Act to amend the Customs Act and the Immigration and Refugee Protection Act (presentation and reporting requirements) ASSENTED TO JUNE 19, 2017 BILL S-233 SUMMARY This enactment amends the Customs Act to exempt certain persons from the requirement to present themselves to a customs officer if (a) they enter Canadian waters, including the inland waters, or the airspace over Canada on board a conveyance directly from outside Canada and then leave Canada on board the conveyance, as long as they did not land in Canada and the conveyance did not stop while in Canadian waters, including inland waters, or did not land while in Canada; or (b) they leave Canadian waters, including the inland waters, or the airspace over Canada on board a conveyance and then re-enter Canada on board the conveyance, as long as they did not land outside Canada and the conveyance did not stop or land while outside Canada, unless the officer requires them to comply with subsections 11(1) and (3) of that Act. It also exempts the goods imported on board such a conveyance from the requirement to be reported at a customs office unless an officer otherwise requires. Further, it adds a regulationmaking authority for defining the expression “make contact with a conveyance”. Finally, this enactment amends the Immigration and Refugee Protection Act by adding regulation-making authorities, including one for the exemption of certain persons or categories of persons from the requirement to appear for an examination to determine their right to enter or remain in Canada. It also allows an officer to require these persons or categories of persons to appear for such an examination despite that exemption. ii 64-65-66 ELIZABETH II CHAPTER 11 An Act to amend the Customs Act and the Immigration and Refugee Protection Act (presentation and reporting requirements) [Assented to 19th June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title Short title 1 This Act may be cited as the Conveyance Presentation and Reporting Requirements Modernization Act. R.S., c. 1 (2nd Supp.) Customs Act 2 Subsection 11(5) of the Customs Act is replaced by the following: Entry and departure (5) Subject to the regulations, subsections (1) and (3) do not apply to any of the following persons, unless an officer requires them to comply with those subsections: (a) a person who enters Canadian waters, including the inland waters, or the airspace over Canada on board a conveyance directly from outside Canada and then leaves Canada on board the conveyance, as long as the person was continuously on board that conveyance while in Canada and (i) in the case of a conveyance other than an aircraft, the person did not land in Canada and the conveyance did not anchor, moor or make contact with another conveyance while in Canadian waters, including the inland waters, or (ii) in the case of an aircraft, the conveyance did not land while in Canada; and 2015-2016-2017 Chapter 11: An Act to amend the Customs Act and the Immigration and Refugee Protection Act (presentation and reporting requirements) Customs Act Sections 2-3 (b) a person who leaves Canadian waters, including the inland waters, or the airspace over Canada on board a conveyance and then re-enters Canada on board the conveyance, as long as the person was continuously on board that conveyance while outside Canada and (i) in the case of a conveyance other than an aircraft, the person did not land outside Canada and the conveyance did not anchor, moor or make contact with another conveyance while outside Canada, or (ii) in the case of an aircraft, the conveyance did not land while outside Canada. 3 Subsection 12(5) of the Act is replaced by the following: Exception — entry and departure (5) Subject to the regulations, unless an officer otherwise requires, this section does not apply in respect of goods on board a conveyance (a) that enters Canadian waters, including the inland waters, or the airspace over Canada directly from outside Canada and then leaves Canada, as long as (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while in Canadian waters, including the inland waters, or (ii) in the case of an aircraft, the conveyance did not land while in Canada; or (b) that leaves Canadian waters, including the inland waters, or the airspace over Canada and then re-enters Canada, as long as (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while outside Canada, or (ii) in the case of an aircraft, the conveyance did not land while outside Canada. 2015-2016-2017 Chapter 11: An Act to amend the Customs Act and the Immigration and Refugee Protection Act (presentation and reporting requirements) Customs Act Sections 4-6 4 The Act is amended by adding the following after section 12: Regulations 12.01 The Governor in Council may make regulations for the purposes of sections 11 and 12, including regulations (a) prescribing the circumstances under which persons, goods or classes thereof on board a conveyance, or classes thereof, are required to present themselves or to be reported, as the case may be, despite subsection 11(5) or 12(5); or (b) defining the expression “make contact with another conveyance” for the purposes of subsections 11(5) and 12(5) and prescribing the circumstances under which a conveyance or a class thereof makes contact with another conveyance. 2001, c. 27 Immigration and Refugee Protection Act 5 (1) Subsection 18(1) of the Immigration and Refugee Protection Act is replaced by the following: Examination by officer 18 (1) Subject to the regulations, every person seeking to enter Canada must appear for an examination to determine whether that person has a right to enter Canada or is or may become authorized to enter and remain in Canada. (2) Section 18 of the Act is amended by adding the following after subsection (2): Powers of officer (3) Even though a person seeking to enter Canada is not, in accordance with regulations made under subsection 26(2), required to appear for an examination, an officer may require the person to do so. 6 Section 26 of the Act is renumbered as subsection 26(1) and is amended by adding the following: Exemptions (2) The regulations may exempt persons or categories of persons from the application of section 18 and prescribe the conditions under which the exemption applies. 2015-2016-2017 Chapter 11: An Act to amend the Customs Act and the Immigration and Refugee Protection Act (presentation and reporting requirements) Coordinating Amendment Section 7 Coordinating Amendment 7 If Bill C-21, introduced in the 1st session of the 42nd Parliament and entitled An Act to amend the Customs Act, receives royal assent, then, on the first day on which both section 3 of that Act and section 4 of this Act are in force, subsections 95(1) to (2) of the Customs Act are replaced by the following: Report 95 (1) Subject to subsection (1.1) and regulations made under paragraph (2)(a), all goods that are exported shall be reported at any prescribed time and place and in any prescribed manner. Exception — entering or leaving temporarily (1.1) Subject to regulations made under paragraphs (2)(c) and (d), subsection (1) does not apply in respect of goods on board a conveyance (a) that enters Canadian waters, including the inland waters, or the airspace over Canada directly from outside Canada and then leaves Canada, as long as (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while in Canadian waters, including the inland waters, or (ii) in the case of an aircraft, the conveyance did not land while in Canada; or (b) that leaves Canadian waters, including the inland waters, or the airspace over Canada and then re-enters Canada, as long as (i) in the case of a conveyance other than an aircraft, the conveyance did not anchor, moor or make contact with another conveyance while outside Canada, or (ii) in the case of an aircraft, the conveyance did not land while outside Canada. Powers of officer (1.2) However, an officer may require that goods that are exempted under subsection (1.1) or regulations made under paragraph (2)(a) be reported under subsection (1). 2015-2016-2017 Chapter 11: An Act to amend the Customs Act and the Immigration and Refugee Protection Act (presentation and reporting requirements) Coordinating Amendment Section 7 Regulations (2) The Governor in Council may make regulations (a) prescribing the classes of goods that are exempted from the requirements of subsection (1) and the circumstances in which any of those classes of goods are not so exempted; (b) prescribing the classes of persons who are required to report goods under subsection (1) and the circumstances in which they are so required; (c) prescribing the circumstances in which goods, or classes of goods, on board a conveyance, or a class of conveyances, are required to be reported despite subsection (1.1); and (d) defining the expression “make contact with another conveyance” for the purposes of subsection (1.1) and prescribing the circumstances in which a conveyance or class of conveyances makes contact with another conveyance. Published under authority of the Senate of Canada 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 29 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2018 ASSENTED TO DECEMBER 12, 2017 BILL C-67 SUMMARY This enactment grants the sum of $4,486,681,809 towards defraying charges and expenses of the federal public administration for the fiscal year ending March 31, 2018 that are not otherwise provided for. i 64-65-66 ELIZABETH II CHAPTER 29 An Act for granting to Her Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2018 [Assented to 12th December, 2017] MOST GRACIOUS SOVEREIGN, Preamble Whereas it appears by message from Her Excellency the Right Honourable Julie Payette, Governor General and Commander-in-Chief of Canada, and the Estimates accompanying that message, that the sums mentioned below are required to defray certain expenses of the federal public administration, not otherwise provided for, for the fiscal year ending March 31, 2018, and for other purposes connected with the federal public administration; May it therefore please Your Majesty, that it may be enacted, and be it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, that: Short title 1 This Act may be cited as the Appropriation Act No. 4, 2017–18. $4,486,681,809 granted for 2017–18 2 There may be paid out of the Consolidated Revenue Fund a sum not exceeding in the aggregate $4,486,681,809 towards defraying the various charges and expenses of the federal public administration for the fiscal year ending March 31, 2018, not otherwise provided for, which is the total of the amounts of the items set out in the Supplementary Estimates (B) for that fiscal year as set out in Schedules 1 and 2. 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 Sections 3-6 Transfers of appropriations 3 The transfers of appropriations set out in the Estimates referred to in section 2 are deemed to have been authorized on April 1, 2017. Purpose of each item 4 (1) The amount authorized by this Act to be paid in respect of an item may be paid only for the purposes, and subject to any terms and conditions, specified in the item. Effective date (2) The provisions of each item set out in Schedules 1 and 2 are deemed to have effect as of April 1, 2017. Commitments 5 (1) Where an item in the Estimates referred to in section 2 confers authority to enter into commitments up to an amount stated in those Estimates or increases the amount up to which commitments may be entered into under any other Act, or where a commitment is to be entered into under subsection (2), the commitment may be entered into in accordance with the terms of that item or in accordance with that subsection if the amount of the commitment proposed to be entered into, together with all previous commitments entered into in accordance with this section or under that other Act, does not exceed the total amount of the commitment authority stated in that item or calculated in accordance with that subsection. Commitment limits — revenue-spending authority (2) Where an item in the Estimates referred to in section 2 or a provision of any Act confers authority to spend revenues, commitments may be entered into in accordance with the terms of that item or provision up to an amount equal to the aggregate of (a) the amount, if any, appropriated in respect of that item or provision, and (b) whichever is greater: the amount of revenues actually received or the amount of the estimated revenues set out in those Estimates for that item or in respect of that provision. Adjustments in accounts of Canada — Schedule 1 6 An appropriation that is granted by this Act or any other Act and referred to in Schedule 1 may be charged after the end of the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that fiscal year are tabled in Parliament, for the purpose of making adjustments in the 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 Sections 6-7 accounts of Canada for that fiscal year that do not require payments out of the Consolidated Revenue Fund. Adjustments in accounts of Canada — Schedule 2 7 (1) An appropriation that is granted by this Act or any other Act and referred to in Schedule 2 may be charged after the end of the fiscal year following the fiscal year for which the appropriation is granted at any time before the day on which the Public Accounts for that second fiscal year are tabled in Parliament, for the purpose of making adjustments in the accounts of Canada for that second fiscal year that do not require payments out of the Consolidated Revenue Fund. Order of payment (2) Despite any other provision of this Act, amounts appropriated by this Act and set out in Schedule 2 may be paid and applied at any time on or before March 31, 2019, so long as every payment is charged first against the relevant amount appropriated under any Act that is earliest in time until that amount is exhausted, next against the relevant amount appropriated under any other Act, including this Act, that is next in time until that amount is exhausted and so on. The balance of amounts so appropriated by this Act that have not been charged, subject to the adjustments referred to in section 37 of the Financial Administration Act, lapse at the end of the fiscal year following the fiscal year ending March 31, 2018. 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 SCHEDULE 1 Based on Supplementary Estimates (B), 2017–18, the amount gr items set out in this Schedule. Sums granted to Her Majesty by this Act for the fiscal year ending Vote No. Items ADMINISTRATIVE TRIBUNALS SUPPORT SERVICE OF CAN Service canadien d’appui aux tribunaux administratifs 1b – Program expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A ATLANTIC CANADA OPPORTUNITIES AGENCY Agence de promotion économique du Canada atlantiqu 5b – The grants listed in any of the Estimates for the fiscal ye – Contributions ATOMIC ENERGY OF CANADA LIMITED Énergie atomique du Canada, Limitée 1b – Payments to the corporation for operating and capital e CANADA COUNCIL FOR THE ARTS Conseil des Arts du Canada 1b – Payments to the Council to be used for the furtherance section 8 of the Canada Council for the Arts Act CANADA MORTGAGE AND HOUSING CORPORATION Société canadienne d’hypothèques et de logement 1b – Payments to reimburse the Corporation for the amount grants, contributions and expenditures made, and losse curred, (a) under the National Housing Act; or (b) in the course of the exercise of powers or the car functions conferred on the Corporation under any o accordance with the Corporation’s authority under t Housing Corporation Act CANADIAN AIR TRANSPORT SECURITY AUTHORITY Administration canadienne de la sûreté du transport aé 1b – Payments to the Authority for operating and capital exp CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY Agence canadienne d’évaluation environnementale 1b – Program expenditures – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the conduct of environmental assessments by a (b) the provision of training; and (c) the provision of internal support services under s 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items CANADIAN FOOD INSPECTION AGENCY Agence canadienne d’inspection des aliments 1b – Operating expenditures – Contributions CANADIAN HIGH ARCTIC RESEARCH STATION Station canadienne de recherche dans l’Extrême-Arctiq 1b – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions CANADIAN INSTITUTES OF HEALTH RESEARCH Instituts de recherche en santé du Canada 1b – Operating expenditures 5b – The grants listed in any of the Estimates for the fiscal ye CANADIAN MUSEUM OF HISTORY Musée canadien de l’histoire 1b – Payments to the Museum for operating and capital expe CANADIAN NORTHERN ECONOMIC DEVELOPMENT AGEN Agence canadienne de développement économique du 1b – Operating expenditures 5b – Contributions CANADIAN SECURITY INTELLIGENCE SERVICE Service canadien du renseignement de sécurité 1b – Program expenditures CANADIAN SPACE AGENCY Agence spatiale canadienne 1b – Operating expenditures 5b – Capital expenditures CANADIAN TRANSPORTATION ACCIDENT INVESTIGATIO Bureau canadien d’enquête sur les accidents de transpo transports 1b – Program expenditures COMMUNICATIONS SECURITY ESTABLISHMENT Centre de la sécurité des télécommunications 1b – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal including the provision of internal support services und 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items CORRECTIONAL SERVICE OF CANADA Service correctionnel du Canada 1b – Operating expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions – Authority to deposit into the Inmate Welfare Fund reven cal year from projects operated by inmates and finance – Authority to operate canteens in federal institutions and fiscal year, revenue from sales into the Inmate Welfare – Payments, in accordance with terms and conditions pre in Council, (a) to or on behalf of discharged inmates who suffer caused by participation in normal program activity i (b) to dependants of deceased inmates and discharg deaths resulted from participation in normal progra tutions – Authority for the Minister of Public Safety and Emergen to the approval of the Governor in Council, to enter into province for (a) the confinement in institutions of that province o committed or transferred to a penitentiary; (b) compensation for the maintenance of such perso (c) payment in respect of the construction and relate tions COURTS ADMINISTRATION SERVICE Service administratif des tribunaux judiciaires 1b – Program expenditures DEPARTMENT OF AGRICULTURE AND AGRI-FOOD Ministère de l’Agriculture et de l’Agroalimentaire 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) collaborative research agreements and research (b) the grazing and breeding activities of the Commu (c) the administration of the AgriStability program; a (d) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b 10b – Capital expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items DEPARTMENT OF CANADIAN HERITAGE Ministère du Patrimoine canadien 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the activities of the Canadian Conservation Instit itage Information Network and the Canadian Audio(b) activities undertaken under the Capital Experienc (c) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF CITIZENSHIP AND IMMIGRATION Ministère de la Citoyenneté et de l’Immigration 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year from the provision of services related to Canada — revenues that it receives in that fiscal year fr services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – Capital expenditures DEPARTMENT OF EMPLOYMENT AND SOCIAL DEVELOPM Ministère de l’Emploi et du Développement social 1b – Operating expenditures – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) the provision of Public Access Programs Sector s (b) the provision of services to assist provinces in th provincial programs funded under Labour Market D (c) the provision of services on behalf of other feder ments; (d) the provision of internal support services under s (e) any amount charged to a Crown corporation und Government Employees Compensation Act in relatio for subrogated claims for Crown corporations; and (f) the portion of the Government Employees Comp tal or agency subrogated claim settlements related t 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF FINANCE Ministère des Finances 1b – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min DEPARTMENT OF FISHERIES AND OCEANS Ministère des Pêches et des Océans 1b – Operating expenditures – Canada’s share of expenses of the international fisherie – Authority to provide free office accommodation for the commissions – Authority to make recoverable advances in the amounts ternational fisheries commissions of joint cost projects – Authority to make recoverable advances for transportat er shipping services performed for individuals, outside ernments in the course of, or arising out of, the exercis tion, including aids to navigation and shipping – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) in the course of, or arising from, the activities of Guard; and (b) from the provision of internal support services u Act – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – Capital expenditures – Authority to make payments to provinces, municipalitie thorities as contributions towards construction done by – Authority for the purchase and disposal of commercial 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. 10b Items – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF FOREIGN AFFAIRS, TRADE AND DEVEL Ministère des Affaires étrangères, du Commerce et du 1b – Operating expenditures, including those related to the a representatives abroad, to the staff of those representa ment of Canadians to the staffs of international organiz – Authority to make recoverable advances to internationa amounts not exceeding the amounts of the shares of th – Expenditures in respect of the provision of office accom tional Civil Aviation Organization – Authority to make recoverable expenditures for assistan distressed Canadian citizens and Canadian residents liv their dependants – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t (a) trade and education fairs; (b) departmental publications; and (c) the following services: (i) training services provided by the Canadian Fo (ii) trade missions and other international busine (iii) investment development services, (iv) international telecommunication services, (v) other services provided abroad to other depa Crown corporations and non-federal organization (vi) specialized consular services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – Capital expenditures 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions, including payments for other specified p sion of goods and services for (a) the promotion of trade and investment; and (b) international humanitarian assistance and assist national security, international development and glo DEPARTMENT OF HEALTH Ministère de la Santé 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the provision of services or the sale of products r tion, regulatory activities and medical services; and 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items (b) the provision of internal support services under s – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – Capital expenditures 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions, in the form of monetary payments or the services DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEV Ministère des Affaires indiennes et du Nord canadien 1b – Operating expenditures – Expenditures on works, buildings and equipment – Authority to make expenditures — recoverable or other formed on property that is not federal property and on spect of that property – Authority to provide, in respect of Indian and Inuit econ ties, for the capacity development for Indians and Inuit terials and equipment – Authority to sell electric power to private consumers in alternative local sources of supply are not available, in and conditions approved by the Governor in Council – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 7b – The forgiveness, as referred to in section 24.1 of the Fin of certain debts due to Her Majesty in right of Canada a relating to loans to the Labrador Innu Nation and the N Nation 9b – The writing off, as referred to in subsection 25(2) of the Act, of debts due to Her Majesty in right of Canada amo ing to loans to the Mohawk Trading Company and to th Home 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF INDUSTRY Ministère de l’Industrie 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items (a) the provision of internal support services under s and the provision of internal support services to the Property Office; (b) activities and operations related to communicati munications Research Centre; (c) services and insolvency processes under the Ban Act at the Office of the Superintendent of Bankruptc (d) activities and operations carried out by Corporat Canada Business Corporations Act, the Boards of Tr operatives Act, the Canada Not-for-profit Corporatio Corporations Act; and (e) services and regulatory processes for mergers an ters, including pre-merger notifications, advance rul ten opinions, under the Competition Act at the Com – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF NATIONAL DEFENCE Ministère de la Défense nationale 1b – Operating expenditures – Authority for total commitments, subject to allotment b of $29,570,334,909 for the purposes of Votes 1, 5 and 10 gardless of the year in which the payment of those com which it is estimated that $11,760,112,207 will come du years) – Authority, subject to the direction of the Treasury Board penditures or advances in respect of materials supplied formed on behalf of, individuals, corporations, outside departments and agencies and other governments – Authority to make payments (a) in respect of pension, insurance and social secur rangements for employees locally engaged outside (b) in respect of the administration of such program cluding premiums, contributions, benefit payments, tures made in respect of such employees and for an Treasury Board determines – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – Capital expenditures 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items DEPARTMENT OF NATURAL RESOURCES Ministère des Ressources naturelles 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) the sale of forestry and information products; (b) the issue of licences, permits and certificates und the Explosives Regulations, 2013; (c) training and certification activities related to the A ferred to in paragraph (b); (d) research, consultation, testing, analysis, and adm part of the departmental operations; and (e) the provision of internal support services under s cial Administration Act – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF PUBLIC SAFETY AND EMERGENCY PRE Ministère de la Sécurité publique et de la Protection civ 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – The grants listed in any of the Estimates for the fiscal ye – Contributions DEPARTMENT OF THE ENVIRONMENT Ministère de l’Environnement 1b – Operating expenditures – Authority for the Minister of the Environment to engage by different Boards at the remuneration that those Boa – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. provision of services or the sale of information product tions of the department funded from this Vote, includin 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items (a) research, analysis and scientific services; (b) hydrometric surveys; (c) regulatory services; (d) monitoring services, including monitoring servic sands; (e) entry fees; (f) permits; and (g) real property services – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – Capital expenditures – Authority to make payments to provinces and municipa wards construction done by those bodies – Authority to make recoverable advances not exceeding of provincial and outside agencies of the cost of joint p tures on other than federal property 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions, including ones to developing countries b Fund for the Implementation of the Montreal Protocol t tary payments or the provision of goods, equipment or DEPARTMENT OF TRANSPORT Ministère des Transports 1b – Operating expenditures – Authority to make expenditures on other than federal p or arising out of the exercise of jurisdiction in, aeronau – Authority for the payment of commissions for revenue nautics Act – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b 15b – Capital expenditures Transportation infrastructure – The grants listed in any of the Estimates for the fiscal ye – Contributions 20b Programs other than “Gateways and corridors” and “Tran – The grants listed in any of the Estimates for the fiscal ye – Contributions 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items DEPARTMENT OF VETERANS AFFAIRS Ministère des Anciens Combattants 1b – Operating expenditures – Expenditures related to the upkeep of real property, inc other investigatory planning expenses that do not add property, payment of taxes, insurance and public utiliti – Expenditures related to, subject to the approval of the G (a) necessary remedial work on properties construct price contracts and sold under the Veterans’ Land A correct defects for which neither the veteran nor the financially responsible; and (b) other work on other properties that is required to terest in those properties – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 5b – The grants listed in any of the Estimates for the fiscal ye listed for any grant may be increased or decreased, sub the Treasury Board – Contributions DEPARTMENT OF WESTERN ECONOMIC DIVERSIFICATIO Ministère de la Diversification de l’économie de l’Ouest 5b – The grants listed in any of the Estimates for the fiscal ye – Contributions ECONOMIC DEVELOPMENT AGENCY OF CANADA FOR TH Agence de développement économique du Canada pou 5b – The grants listed in any of the Estimates for the fiscal ye – Contributions FINANCIAL TRANSACTIONS AND REPORTS ANALYSIS CE Centre d’analyse des opérations et déclarations financi 1b – Program expenditures HOUSE OF COMMONS Chambre des communes 1b – Program expenditures, including payments in respect o Members’ constituency offices – Contributions – Authority to expend revenues that it receives in the fisc tivities 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items LIBRARY AND ARCHIVES OF CANADA Bibliothèque et Archives du Canada 1b – Operating expenditures – The grants listed in any of the Estimates for the fiscal ye – Contributions – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t viding access to the collection and from the reproductio collection LIBRARY OF PARLIAMENT Bibliothèque du Parlement 1b – Program expenditures – Authority to expend revenues that it receives in the fisc tivities MARINE ATLANTIC INC. Marine Atlantique S.C.C. 1b – Payments to the corporation in respect of the costs of it – Payments to the corporation for capital expenditures – Payments to the corporation for transportation services transportation services between Nova Scotia and Newf and related vessels, terminals and infrastructure MILITARY GRIEVANCES EXTERNAL REVIEW COMMITTEE Comité externe d’examen des griefs militaires 1b – Program expenditures NATIONAL CAPITAL COMMISSION Commission de la capitale nationale 5b – Payments to the Commission for capital expenditures NATIONAL ENERGY BOARD Office national de l’énergie 1b – Program expenditures – Contributions NATIONAL FILM BOARD Office national du film 1b – Program expenditures NATIONAL MUSEUM OF SCIENCE AND TECHNOLOGY Musée national des sciences et de la technologie 1b – Payments to the Museum for operating and capital expe 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items NATIONAL RESEARCH COUNCIL OF CANADA Conseil national de recherches du Canada 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions, including the provision of goods and ser Thirty Meter Telescope Observatory NATURAL SCIENCES AND ENGINEERING RESEARCH COU Conseil de recherches en sciences naturelles et en géni 1b – Operating expenditures 5b – The grants listed in any of the Estimates for the fiscal ye OFFICE OF INFRASTRUCTURE OF CANADA Bureau de l’infrastructure du Canada 1b – Operating expenditures 5b – Capital expenditures OFFICE OF THE COMMISSIONER FOR FEDERAL JUDICIAL Bureau du commissaire à la magistrature fédérale 5b – Operating expenditures — Canadian Judicial Council OFFICE OF THE COMMISSIONER OF LOBBYING Commissariat au lobbying 1b – Program expenditures OFFICE OF THE CO-ORDINATOR, STATUS OF WOMEN Bureau de la coordonnatrice de la situation de la femm 1b – Operating expenditures – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min OFFICES OF THE INFORMATION AND PRIVACY COMMISS Commissariats à l’information et à la protection de la v 1b – Program expenditures — Office of the Information Com PARLIAMENTARY PROTECTIVE SERVICE Service de protection parlementaire 1b – Program expenditures – Authority to expend revenues that it receives in the fisc tivities 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items PRIVY COUNCIL OFFICE Bureau du Conseil privé 1b – Program expenditures, including (a) operating expenditures of Commissions of Inqui for; (b) contributions in respect of costs incurred by pers Commissions of Inquiry; and (c) the operation of the Prime Minister’s residence – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t provision of internal support services under section 29. – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min PUBLIC HEALTH AGENCY OF CANADA Agence de la santé publique du Canada 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal products, inspection services and the provision of inter der section 29.2 of that Act 10b – The grants listed in any of the Estimates for the fiscal ye – Contributions PUBLIC SERVICE COMMISSION Commission de la fonction publique 1b – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal of staffing, assessment and counselling services and pr of internal support services under section 29.2 of that A REGISTRAR OF THE SUPREME COURT OF CANADA Registraire de la Cour suprême du Canada 1b – Program expenditures ROYAL CANADIAN MOUNTED POLICE Gendarmerie royale du Canada 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se 5b – Capital expenditures 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. 10b Items – The grants listed in any of the Estimates for the fiscal ye listed for any grant may be increased or decreased, sub the Treasury Board – Contributions ROYAL CANADIAN MOUNTED POLICE EXTERNAL REVIEW Comité externe d’examen de la Gendarmerie royale du 1b – Program expenditures SECRETARIAT OF THE NATIONAL SECURITY AND INTELL PARLIAMENTARIANS Secrétariat du Comité des parlementaires sur la sécurit renseignement 3b – Program expenditures SHARED SERVICES CANADA Services partagés Canada 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year from the provision of information techn Shared Services Canada Act — revenues that it receive the provision of those services 5b – Capital expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset cap incurs in that fiscal year — revenues that it receives in t provision of information technology services under the Act SOCIAL SCIENCES AND HUMANITIES RESEARCH COUNC Conseil de recherches en sciences humaines 1b – Operating expenditures STANDARDS COUNCIL OF CANADA Conseil canadien des normes 1b – Payments to the Council that are referred to in paragrap Council of Canada Act STATISTICS CANADA Statistique Canada 1b – Program expenditures – The grants listed in any of the Estimates for the fiscal ye – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset rela incurs in that fiscal year — revenues that it receives in t from the provision of internal support services under se TELEFILM CANADA Téléfilm Canada 1b – Payments to the corporation to be used for the purpose Canada Act 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 Vote No. Items TREASURY BOARD SECRETARIAT Secrétariat du Conseil du Trésor 1b – Program expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal of internal support services under section 29.2 of that A tivities – The payment to each member of the Queen’s Privy Cou minister without portfolio, or a minister of State who d ministry of State, of a salary — paid annually or pro rat a year — that does not exceed the salary paid under the down to the nearest hundred dollars under section 67 o Canada Act, to ministers of State who preside over min 15b Compensation Adjustments – Authority granted to the Treasury Board to supplement for the fiscal year that may need to be partially or fully justments made to terms and conditions of service or e public administration, including the Royal Canadian Mo of members of the Canadian Forces, persons appointed Council and employees of Crown corporations as defin the Financial Administration Act 20b Public Service Insurance – Payments, in respect of insurance, pension or benefit pr ments, or in respect of the administration of such progr cluding premiums, contributions, benefits, fees and oth respect of the federal public administration, or any part any other persons that the Treasury Board determines – Authority to expend any revenues or other amounts rec ance, pension or benefit programs or other arrangemen (a) to offset premiums, contributions, benefits, fees respect of those programs or arrangements; and (b) to provide for the return to eligible employees of der subsection 96(3) of the Employment Insurance A WINDSOR-DETROIT BRIDGE AUTHORITY Autorité du pont Windsor-Détroit 1b – Payments to the Authority for the discharge of its mand Letters Patent and the Canada-Michigan Crossing Agre 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) ANNEXE 1 D’après le Budget supplémentaire des dépenses (B) 2017-2018, la des postes figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice dées. No du crédit Postes ADMINISTRATION CANADIENNE DE LA SÛRETÉ DU TRAN Canadian Air Transport Security Authority 1b – Paiements à l’Administration pour les dépenses de fonc penses en capital AGENCE CANADIENNE DE DÉVELOPPEMENT ÉCONOMIQ Canadian Northern Economic Development Agency 1b – Dépenses de fonctionnement 5b – Contributions AGENCE CANADIENNE D’ÉVALUATION ENVIRONNEMEN Canadian Environmental Assessment Agency 1b – Dépenses du programme – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : a) la réalisation d’évaluations environnementales pa b) la formation; c) la prestation de services de soutien internes en ve cette loi. AGENCE CANADIENNE D’INSPECTION DES ALIMENTS Canadian Food Inspection Agency 1b – Dépenses de fonctionnement – Contributions AGENCE DE DÉVELOPPEMENT ÉCONOMIQUE DU CANAD DU QUÉBEC Economic Development Agency of Canada for the Regi 5b – Subventions inscrites à tout budget des dépenses pour – Contributions AGENCE DE LA SANTÉ PUBLIQUE DU CANADA Public Health Agency of Canada 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de la vente de produits, de services d’inspecti services de soutien internes en vertu de l’article 29.2 de 10b – Subventions inscrites à tout budget des dépenses pour – Contributions 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes AGENCE DE PROMOTION ÉCONOMIQUE DU CANADA AT Atlantic Canada Opportunities Agency 5b – Subventions inscrites à tout budget des dépenses pour – Contributions AGENCE SPATIALE CANADIENNE Canadian Space Agency 1b – Dépenses de fonctionnement 5b – Dépenses en capital AUTORITÉ DU PONT WINDSOR-DÉTROIT Windsor-Detroit Bridge Authority 1b – Paiements à l’Autorité pour l’exécution de son mandat, lettres patentes et à l’Accord sur le passage Canada-Mi BIBLIOTHÈQUE DU PARLEMENT Library of Parliament 1b – Dépenses du programme – Autorisation de dépenser les recettes perçues au cours de ses activités BIBLIOTHÈQUE ET ARCHIVES DU CANADA Library and Archives of Canada 1b – Dépenses de fonctionnement – Subventions inscrites à tout budget des dépenses pour – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent des droits d’accès à la collection tion d’éléments de celle-ci BUREAU CANADIEN D’ENQUÊTE SUR LES ACCIDENTS D SÉCURITÉ DES TRANSPORTS Canadian Transportation Accident Investigation and Sa 1b – Dépenses du programme BUREAU DE LA COORDONNATRICE DE LA SITUATION DE Office of the Co-ordinator, Status of Women 1b – Dépenses de fonctionnement – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P BUREAU DE L’INFRASTRUCTURE DU CANADA Office of Infrastructure of Canada 1b – Dépenses de fonctionnement 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit 5b Postes – Dépenses en capital BUREAU DU COMMISSAIRE À LA MAGISTRATURE FÉDÉR Office of the Commissioner for Federal Judicial Affairs 5b – Dépenses de fonctionnement — Conseil canadien de la BUREAU DU CONSEIL PRIVÉ Privy Council Office 1b – Dépenses du programme, y compris : a) les dépenses de fonctionnement des commission b) les contributions relatives aux frais engagés par d sant devant des commissions d’enquête; c) le fonctionnement de la résidence du premier min – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci pour la prestation de services de soutien internes de cette loi – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P CENTRE D’ANALYSE DES OPÉRATIONS ET DÉCLARATION CANADA Financial Transactions and Reports Analysis Centre of C 1b – Dépenses du programme CENTRE DE LA SÉCURITÉ DES TÉLÉCOMMUNICATIONS Communications Security Establishment 1b – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ses activités, notamment la prestation de s ternes en vertu de l’article 29.2 de cette loi CHAMBRE DES COMMUNES House of Commons 1b – Dépenses du programme, notamment les paiements lié bureaux de circonscription des députés – Contributions – Autorisation de dépenser les recettes perçues au cours de ses activités COMITÉ EXTERNE D’EXAMEN DE LA GENDARMERIE ROY Royal Canadian Mounted Police External Review Comm 1b – Dépenses du programme 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes COMITÉ EXTERNE D’EXAMEN DES GRIEFS MILITAIRES Military Grievances External Review Committee 1b – Dépenses du programme COMMISSARIAT AU LOBBYING Office of the Commissioner of Lobbying 1b – Dépenses du programme COMMISSARIATS À L’INFORMATION ET À LA PROTECTIO CANADA Offices of the Information and Privacy Commissioners 1b – Dépenses du programme — Commissariat à l’informatio COMMISSION DE LA CAPITALE NATIONALE National Capital Commission 5b – Paiements à la Commission pour les dépenses en capit COMMISSION DE LA FONCTION PUBLIQUE Public Service Commission 1b – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de la fourniture de produits et services de dot counseling et de la prestation de services de soutien in 29.2 de cette loi CONSEIL CANADIEN DES NORMES Standards Council of Canada 1b – Paiements au Conseil aux termes de l’alinéa 5a) de la Lo des normes CONSEIL DE RECHERCHES EN SCIENCES HUMAINES Social Sciences and Humanities Research Council 1b – Dépenses de fonctionnement CONSEIL DE RECHERCHES EN SCIENCES NATURELLES E Natural Sciences and Engineering Research Council 1b – Dépenses de fonctionnement 5b – Subventions inscrites à tout budget des dépenses pour CONSEIL DES ARTS DU CANADA Canada Council for the Arts 1b – Paiements au Conseil devant servir aux fins générales p Loi sur le Conseil des Arts du Canada CONSEIL NATIONAL DE RECHERCHES DU CANADA National Research Council of Canada 10b – Subventions inscrites à tout budget des dépenses pour 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Contributions, y compris la fourniture de biens et de se international du Télescope de trente mètres ÉNERGIE ATOMIQUE DU CANADA, LIMITÉE Atomic Energy of Canada Limited 1b – Paiements à la société pour les dépenses de fonctionne capital GENDARMERIE ROYALE DU CANADA Royal Canadian Mounted Police 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent notamment de la prestation de se en vertu de l’article 29.2 de cette loi 5b – Dépenses en capital 10b – Subventions inscrites à tout budget des dépenses pour prévu pour chaque subvention pouvant être modifié so tion du Conseil du Trésor – Contributions INSTITUTS DE RECHERCHE EN SANTÉ DU CANADA Canadian Institutes of Health Research 1b – Dépenses de fonctionnement 5b – Subventions inscrites à tout budget des dépenses pour MARINE ATLANTIQUE S.C.C. Marine Atlantic Inc. 1b – Paiements à la société pour les dépenses liées à sa gest – Paiements à la société pour les dépenses en capital – Paiements à la société pour les services de transport, y transport maritime entre la Nouvelle-Écosse et Terre-N navires, terminaux et infrastructures connexes MINISTÈRE DE LA CITOYENNETÉ ET DE L’IMMIGRATION Department of Citizenship and Immigration 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice pour la prestation de s programme « Expérience internationale Canada », les r de cet exercice qui proviennent de la prestation de ces – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes MINISTÈRE DE LA DÉFENSE NATIONALE Department of National Defence 1b – Dépenses de fonctionnement – Autorisation de contracter, sous réserve d’affectation pa des engagements totalisant 29 570 334 909 $ à l’égard d ministère, quelle que soit l’année au cours de laquelle s ment afférent à l’un ou l’autre de ces engagements (et tranche de 11 760 112 207 $ deviendra payable dans les – Autorisation de faire des dépenses ou des avances reco des directives du Conseil du Trésor, à l’égard du matér liers, des sociétés, des organismes extérieurs, d’autres fédéraux et d’autres administrations, ou des services re – Autorisation d’effectuer des paiements dans le cadre : a) de programmes de pension, d’assurance et de sé ententes pour les employés recrutés sur place à l’ex b) de l’administration de ces programmes ou entent contributions, avantages, frais et autres dépenses en recrutés sur place à l’extérieur du Canada et pour d’ minées par le Conseil du Trésor. – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent notamment de la prestation de se en vertu de l’article 29.2 de cette loi – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital MINISTÈRE DE LA DIVERSIFICATION DE L’ÉCONOMIE DE Department of Western Economic Diversification 5b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE L’AGRICULTURE ET DE L’AGROALIMENTA Department of Agriculture and Agri-Food 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : a) les ententes de recherche concertée et les service b) les activités de pâturage et de reproduction du Pr communautaires; c) l’administration du programme « Agri-stabilité »; d) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital 10b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE LA SANTÉ Department of Health 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : a) la prestation de services ou la vente de produits s tion de la santé, aux activités de réglementation et a b) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital 10b – Subventions inscrites à tout budget des dépenses pour – Contributions, sous forme de paiements en argent ou d de services MINISTÈRE DE LA SÉCURITÉ PUBLIQUE ET DE LA PROTE Department of Public Safety and Emergency Preparedn 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent notamment de la prestation de se en vertu de l’article 29.2 de cette loi – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE L’EMPLOI ET DU DÉVELOPPEMENT SOCIA Department of Employment and Social Development 1b – Dépenses de fonctionnement – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent de ce qui suit : a) les services du Secteur des programmes d’accès b) les services visant à aider les provinces à adminis vinciaux financés aux termes des ententes sur le dé du travail; c) les services offerts au nom d’autres ministères féd d) les services de soutien internes fournis en vertu d loi; e) tout montant facturé à une société d’État en vertu sur l’indemnisation des agents de l’État en lien avec les recours par subrogation pour les sociétés d’État; f) la portion des coûts de litige découlant des règlem de réclamation auprès de tiers pour les ministères e vertu de la Loi sur l’indemnisation des agents de l’É – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DE L’ENVIRONNEMENT Department of the Environment 1b – Dépenses de fonctionnement – Autorisation au ministre de l’Environnement d’engager les commissions peuvent avoir besoin et versement à c déterminés par celles-ci – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent de la prestation de services de so l’article 29.2 de cette loi et de ce qui suit : a) les services de recherche, les services d’analyse e fiques; b) les relevés hydrologiques; c) les services de réglementation; d) les services de surveillance, notamment les activi sables bitumineux; e) les droits d’entrée; f) les permis; g) les services de biens immobiliers. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit 5b Postes – Dépenses en capital – Autorisation de faire des paiements aux provinces et au contributions aux travaux de construction entrepris par – Autorisation de faire des avances recouvrables ne dépa de projets conjoints assumée par des organismes prov de l’extérieur, y compris les dépenses faites à lʼégard d nant pas au gouvernement fédéral 10b – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris celles aux pays en développem téral pour l’application du Protocole de Montréal, sous argent ou de fourniture de biens, d’équipement ou de s MINISTÈRE DE L’INDUSTRIE Department of Industry 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : a) la prestation de services de soutien internes en ve cette loi et de services de soutien internes à l’Office lectuelle du Canada; b) les activités liées aux recherches sur les commun recherches sur les communications; c) les services et la procédure d’insolvabilité, au titre l’insolvabilité, au Bureau du surintendant des faillite d) les activités de Corporations Canada au titre de la sociétés par actions, de la Loi sur les chambres de c dienne sur les coopératives, de la Loi canadienne su non lucratif et de la Loi sur les corporations canadie e) les services et la procédure réglementaire au Bure pour les fusions et toute chose s’y rapportant, y com une fusion, les certificats de décision préalable et le de la Loi sur la concurrence. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 10b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES AFFAIRES ÉTRANGÈRES, DU COMMERC DÉVELOPPEMENT Department of Foreign Affairs, Trade and Development 1b – Dépenses de fonctionnement, y compris celles liées à la tants du Canada à l’étranger, à leur personnel et aux Ca gouvernement canadien au personnel d’organismes in – Autorisation de faire des avances recouvrables à des or jusqu’à concurrence de la valeur des actions détenues – Dépenses relatives aux locaux de l’Organisation de l’av 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Autorisation dʼeffectuer des dépenses recouvrables pou sidents canadiens domiciliés à l’extérieur du Canada qu à l’étranger, y compris leurs personnes à charge, et pou – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent de ce qui suit : a) les foires commerciales et éducatives; b) les publications ministérielles; c) les services suivants : (i) la formation offerte par l’Institut canadien du s (ii) les missions commerciales et autres services commerce international, (iii) les services de développement des investisse (iv) les services de télécommunication internatio (v) les autres services fournis à l’étranger à d’aut nismes, sociétés d’État et autres organisations no (vi) les services consulaires spécialisés. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital 10b – Subventions inscrites à tout budget des dépenses pour – Contributions, y compris les paiements à d’autres fins p de biens et de services pour : a) la promotion du commerce et de l’investissement b) l’aide humanitaire internationale et l’aide fournie ternationale, le développement international et la pa MINISTÈRE DES AFFAIRES INDIENNES ET DU NORD CAN Department of Indian Affairs and Northern Developmen 1b – Dépenses de fonctionnement – Dépenses relatives aux ouvrages, bâtiments et matériel – Autorisation d’effectuer des dépenses — recouvrables o vaux effectués sur des propriétés n’appartenant pas au aux services fournis à l’égard de celles-ci – Autorisation d’affecter des fonds dans le cadre d’activit économique des Indiens et des Inuits, relatives au déve des Indiens et des Inuits et à l’approvisionnement en m – Autorisation de vendre de l’électricité, conformément a par le gouverneur en conseil, aux consommateurs qui s vant dans des centres éloignés lorsque ces derniers n’o alternatives locales d’approvisionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent de la prestation de services de so l’article 29.2 de cette loi 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 7b – Renonciation, au titre de l’article 24.1 de la Loi sur la ge bliques, à certaines créances relatives à des prêts conse du Labrador et à la Nation métisse des Territoires du N jesté du chef du Canada et s’élevant au total à 526 408 $ 9b – Radiation, au titre du paragraphe 25(2) de la Loi sur la g bliques, des créances relatives à des prêts consentis à l pany et au Wikwemikong Nursing Home, dues à Sa Ma et s’élevant au total à 100 114 $ 10b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES ANCIENS COMBATTANTS Department of Veterans Affairs 1b – Dépenses de fonctionnement – Dépenses afférentes à l’entretien de propriétés immobi latives à des travaux de génie et de recherche techniqu valeur tangible à la propriété ainsi que le paiement des vices publics – Sous réserve de l’approbation du gouverneur en conse rentes : a) aux travaux de réparation nécessaires sur des pro vertu de contrats particuliers à prix ferme et vendue sur les terres destinées aux anciens combattants (S. de corriger des défectuosités dont ni l’ancien comba peuvent être tenus financièrement responsables; b) à tout autre travail qui s’impose sur d’autres prop der l’intérêt que le directeur y possède. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Subventions inscrites à tout budget des dépenses pour crit à chacune des subventions pouvant être modifié so tion du Conseil du Trésor – Contributions MINISTÈRE DES FINANCES Department of Finance 1b – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour – Contributions – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent de la prestation de services de so l’article 29.2 de cette loi 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P MINISTÈRE DES PÊCHES ET DES OCÉANS Department of Fisheries and Oceans 1b – Dépenses de fonctionnement – Participation du Canada aux dépenses des commission pêches – Autorisation de fournir gratuitement des locaux aux com des pêches – Autorisation de faire des avances recouvrables équivale quote-part de ces commissions dans les programmes à – Autorisation de faire des avances recouvrables pour de d’arrimage et d’autres services de la marine marchande liers, à des organismes indépendants et à d’autres gou l’exercice de sa compétence en matière de navigation, navigation et à la navigation maritime – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : a) les activités de la Garde côtière canadienne; b) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital – Autorisation de faire des paiements aux provinces, aux torités locales ou privées à titre de contributions à des entrepris par ces administrations ou autorités – Autorisation d’acheter des bateaux de pêche commerci 10b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES RESSOURCES NATURELLES Department of Natural Resources 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : a) la vente de produits d’information et de produits b) la délivrance de licences, de permis et de certifica les explosifs et du Règlement de 2013 sur les explos 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes c) la formation et les attestations de formation liées visés à l’alinéa b); d) la perception, dans le cadre des activités du minis services de recherche, de consultation, d’évaluation tration et pour l’accès à des travaux de recherche; e) la prestation de services de soutien internes en ve Loi sur la gestion des finances publiques. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 10b – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DES TRANSPORTS Department of Transport 1b – Dépenses de fonctionnement – Autorisation d’engager des dépenses pour des biens au cadre de l’exercice d’une compétence en matière d’aéro – Autorisation de payer des commissions pour le recouvr tu de la Loi sur l’aéronautique – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent notamment de la prestation de services de so l’article 29.2 de cette loi – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Dépenses en capital 15b Infrastructures de transport – Subventions inscrites à tout budget des dépenses pour – Contributions 20b Programmes autres que « Portes d’entrée et corridors » et port » – Subventions inscrites à tout budget des dépenses pour – Contributions MINISTÈRE DU PATRIMOINE CANADIEN Department of Canadian Heritage 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au viennent de ce qui suit : 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes a) les activités de l’Institut canadien de conservation d’information sur le patrimoine et du Bureau de cert diovisuels canadiens; b) les activités afférentes au programme « Expérienc c) la prestation de services de soutien internes en ve cette loi. – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 5b – Subventions inscrites à tout budget des dépenses pour – Contributions MUSÉE CANADIEN DE L’HISTOIRE Canadian Museum of History 1b – Paiements au Musée pour les dépenses de fonctionnem capital MUSÉE NATIONAL DES SCIENCES ET DE LA TECHNOLOG National Museum of Science and Technology 1b – Paiements au Musée pour les dépenses de fonctionnem capital OFFICE NATIONAL DE L’ÉNERGIE National Energy Board 1b – Dépenses du programme – Contributions OFFICE NATIONAL DU FILM National Film Board 1b – Dépenses du programme REGISTRAIRE DE LA COUR SUPRÊME DU CANADA Registrar of the Supreme Court of Canada 1b – Dépenses du programme SECRÉTARIAT DU COMITÉ DES PARLEMENTAIRES SUR L ET LE RENSEIGNEMENT Secretariat of the National Security and Intelligence Co Parliamentarians 3b – Dépenses du programme SECRÉTARIAT DU CONSEIL DU TRÉSOR Treasury Board Secretariat 1b – Dépenses du programme – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice, les recettes perçues au 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes viennent de la prestation de services de soutien interne de cette loi et de ses autres activités – Versement, à chacun des membres du Conseil privé de qui occupe une charge de ministre sans portefeuille ou de ministre d’État sans être à la tête d’un département n’excédant pas celui versé, au titre de la Loi sur les trai d’État qui sont à la tête d’un département dʼÉtat, payab prorata pour toute période de moins d’un an et arrondi inférieure en application de lʼarticle 67 de la Loi sur le P 15b Rajustements à la rémunération – Autorisation donnée au Conseil du Trésor d’augmenter l’exercice qui peut nécessiter un financement partiel ou justements effectués aux modalités de service ou d’em publique fédérale, notamment la Gendarmerie royale d des Forces canadiennes, des personnes nommées par et des employés des sociétés d’État, au sens du paragr gestion des finances publiques 20b Assurances de la fonction publique – À l’égard de tout ou partie de la fonction publique et de déterminées par le Conseil du Trésor, paiements effect grammes d’assurance, de pension, d’avantages sociau tentes — ou de l’administration de ces programmes ou au titre des primes, contributions, avantages sociaux, f – Autorisation d’affecter tous revenus ou toutes autres so cadre des programmes d’assurance, de pension, d’avan d’autres ententes : a) pour compenser notamment les primes, contribu frais et autres dépenses liés à ces programmes ou a b) pour rembourser les employés éligibles, en appli 96(3) de la Loi sur l’assurance-emploi, pour l’excéde SERVICE ADMINISTRATIF DES TRIBUNAUX JUDICIAIRES Courts Administration Service 1b – Dépenses du programme SERVICE CANADIEN D’APPUI AUX TRIBUNAUX ADMINIS Administrative Tribunals Support Service of Canada 1b – Dépenses du programme – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc SERVICE CANADIEN DU RENSEIGNEMENT DE SÉCURITÉ Canadian Security Intelligence Service 1b – Dépenses du programme SERVICE CORRECTIONNEL DU CANADA Correctional Service of Canada 1b – Dépenses de fonctionnement – Subventions inscrites à tout budget des dépenses pour – Contributions – Autorisation de verser à la Caisse de bienfaisance des d au cours de l’exercice, des activités des détenus financé – Autorisation d’exploiter des cantines dans les établissem ser les recettes, au cours de l’exercice, à la Caisse de bi 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes – Paiements, selon les conditions fixées par le gouverneu a) aux détenus libérés aux prises avec une incapacit leur participation aux activités normales dans des ét pour le compte de tels détenus; b) aux personnes à charge de détenus — libérés ou de leur participation à de telles activités. – Autorisation au ministre de la Sécurité publique et de la serve de l’approbation du gouverneur en conseil, de co le gouvernement de toute province en vue, selon le cas a) de l’incarcération, dans les établissements de cett condamnées ou transférées dans un pénitencier; b) de l’indemnisation afférente à l’entretien de ces p c) du paiement des frais de construction et d’autres blissements. SERVICE DE PROTECTION PARLEMENTAIRE Parliamentary Protective Service 1b – Dépenses du programme – Autorisation de dépenser les recettes perçues au cours de ses activités SERVICES PARTAGÉS CANADA Shared Services Canada 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe gagées au cours de cet exercice pour la prestation de s de l’information au titre de la Loi sur Services partagés çues au cours de celui-ci qui proviennent de la prestatio 5b – Dépenses en capital – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe capital engagées au cours de cet exercice, les recettes p ci qui proviennent de la prestation de services de techn titre de la Loi sur Services partagés Canada SOCIÉTÉ CANADIENNE D’HYPOTHÈQUES ET DE LOGEME Canada Mortgage and Housing Corporation 1b – Paiements à la Société visant à la rembourser pour les r sur les prêts consentis, les subventions et contributions contractées, les pertes subies et les frais et débours eng a) au titre de la Loi nationale sur l’habitation; b) dans le cadre des attributions qui lui sont conféré dérale et qu’elle exerce en conformité avec la Loi su d’hypothèques et de logement. STATION CANADIENNE DE RECHERCHE DANS LʼEXTRÊM Canadian High Arctic Research Station 1b – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour – Contributions 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 1 (French) No du crédit Postes STATISTIQUE CANADA Statistics Canada 1b – Dépenses du programme – Subventions inscrites à tout budget des dépenses pour – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recette lui-ci qui proviennent notamment de la prestation de se en vertu de l’article 29.2 de cette loi TÉLÉFILM CANADA Telefilm Canada 1b – Paiements à la société devant servir aux fins prévues pa Canada 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 2 SCHEDULE 2 Based on Supplementary Estimates (B), 2017–18, the amount g items set out in this Schedule. Sums granted to Her Majesty by this Act for the fiscal year endin following fiscal year ending March 31, 2019 and the purposes for w Vote No. Items CANADA BORDER SERVICES AGENCY Agence des services frontaliers du Canada 1b – Operating expenditures – Authority, as referred to in paragraph 29.1(2)(a) of the F Act, to expend in the fiscal year — in order to offset exp that fiscal year — revenues that it receives in that fiscal (a) fees, related to border operations, for the provisi of a facility or for a product, right or privilege; and (b) payments received under contracts entered into 5b – Capital expenditures CANADA REVENUE AGENCY Agence du revenu du Canada 1b – Operating expenditures – Contributions – Authority to make recoverable expenditures in relation Canada Pension Plan and the Employment Insurance A PARKS CANADA AGENCY Agence Parcs Canada 1b – Program expenditures – Capital expenditures – The grants listed in any of the Estimates for the fiscal y – Contributions, including (a) expenditures on other than federal property; and (b) payments to provinces and municipalities as con cost of undertakings carried out by those bodies 2015-2016-2017 Chapter 29: Appropriation Act No. 4, 2017–18 SCHEDULE 2 (French) ANNEXE 2 D’après le Budget supplémentaire des dépenses (B) 2017-2018, la des postes figurant à la présente annexe. Sommes accordées par la présente loi à Sa Majesté pour l’exercice en cours et à l’exercice suivant se terminant le 31 mars 2019, et fin No du crédit Postes AGENCE DES SERVICES FRONTALIERS DU CANADA Canada Border Services Agency 1b – Dépenses de fonctionnement – Autorisation, au titre du paragraphe 29.1(2) de la Loi su publiques, d’affecter, au cours de l’exercice, à la compe connexes engagées au cours de cet exercice, les recett celui-ci qui proviennent de ce qui suit : a) les droits — liés aux activités à la frontière — perç d’un service, l’utilisation d’une installation, l’achat d d’un droit ou d’un privilège; b) les paiements reçus au titre de contrats conclus p 5b – Dépenses en capital AGENCE DU REVENU DU CANADA Canada Revenue Agency 1b – Dépenses de fonctionnement – Contributions – Autorisation dʼeffectuer des dépenses recouvrables liée gime de pensions du Canada et de la Loi sur l’assuranc AGENCE PARCS CANADA Parks Canada Agency 1b – Dépenses du programme – Dépenses en capital – Subventions inscrites à tout budget des dépenses pour – Contributions, notamment : a) les dépenses afférentes à des propriétés autres q ment fédéral; b) les paiements aux provinces et aux municipalités l’égard des engagements assumés par ces dernière Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web de la Chambre des comm

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 15 An Act to establish the National Security and Intelligence Committee of Parliamentarians and to make consequential amendments to certain Acts ASSENTED TO JUNE 22, 2017 BILL C-22 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to establish the National Security and Intelligence Committee of Parliamentarians and to make consequential amendments to certain Acts”. SUMMARY This enactment establishes the National Security and Intelligence Committee of Parliamentarians and sets out its composition and mandate. In addition, it establishes the Committee’s Secretariat, the role of which is to assist the Committee in fulfilling its mandate. It also makes consequential amendments to certain Acts. ii TABLE OF PROVISIONS An Act to establish the National Security and Intelligence Committee of Parliamentarians and to make consequential amendments to certain Acts Short Title 1 National Security and Intelligence Committee of Parliamentarians Act Interpretation 2 Definitions Designation of Minister 3 Power of Governor in Council Committee and Members 4 Committee established Appointment of members Designation of Chair Expenses Mandate of Committee 8 Review of national security matters Cooperation Security and Confidentiality 10 Compliance with security requirements Disclosure prohibited Parliamentary privilege Access to Information 13 Right of access Exceptions Request for information Refusal of information Procedure 17 Meetings — call of Chair Meetings held in private Voting Procedure 2015-2016-2017 ii Chapter 15: National Security and Intelligence Committee of Parliamentarians Act TABLE OF PROVISIONS Reports 21 Annual report Review Bodies 22 Provision of information to Committee Provision of information to review bodies Secretariat 24 Secretariat established Executive director Absence or incapacity Remuneration and expenses Chief executive officer Contracts, etc. Employees General Provisions 31 Final decision 31.1 Compliance of activity Expenses — appearance before Committee Regulations Review of Act after five years Consequential Amendments 35 Access to Information Act Financial Administration Act Security of Information Act Parliament of Canada Act Privacy Act Proceeds of Crime (Money Laundering) and Terrorist Financing Act Conflict of Interest Act Coming into Force 49 Order in council SCHEDULE 2015-2016-2017 iv 64-65-66 ELIZABETH II CHAPTER 15 An Act to establish the National Security and Intelligence Committee of Parliamentarians and to make consequential amendments to certain Acts [Assented to 22nd June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the National Security and Intelligence Committee of Parliamentarians Act. Interpretation Definitions 2 The following definitions apply in this Act. appropriate Minister means (a) with respect to a department named in Schedule I to the Financial Administration Act, the Minister presiding over the department; (b) with respect to a division or branch of the federal public administration set out in column I of Schedule I.1 to the Financial Administration Act, the Minister set out in column II of that Schedule; (c) with respect to a corporation named in Schedule II to the Financial Administration Act, the Minister designated as the appropriate Minister by order of the Governor in Council made under that Act; (c.1) with respect to a parent Crown corporation as defined in subsection 83(1) of the Financial Administration Act, the appropriate Minister as defined in that subsection; or 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Interpretation Sections 2-4 (d) with respect to the Canadian Forces, the Minister of National Defence. (ministre compétent) Committee means the National Security and Intelligence Committee of Parliamentarians established by section 4. (Comité) department means, except in subsection 25(2), a department named in Schedule I to the Financial Administration Act, a division or branch of the federal public administration — other than a review body — set out in column I of Schedule I.1 to that Act, a corporation named in Schedule II to that Act, a parent Crown corporation as defined in subsection 83(1) of that Act or the Canadian Forces. (ministère) review body means (a) the Civilian Review and Complaints Commission for the Royal Canadian Mounted Police established by subsection 45.29(1) of the Royal Canadian Mounted Police Act; (b) the Commissioner of the Communications Security Establishment appointed under subsection 273.63(1) of the National Defence Act; or (c) the Security Intelligence Review Committee established by subsection 34(1) of the Canadian Security Intelligence Service Act. (organisme de surveillance) Secretariat means the Secretariat of the National Security and Intelligence Committee of Parliamentarians established by subsection 24(1). (Secrétariat) Designation of Minister Power of Governor in Council 3 The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of this Act. Committee and Members Committee established 4 (1) The National Security and Intelligence Committee of Parliamentarians is established, consisting of a Chair and up to 10 other members, each of whom must be a member of either House of Parliament other than a 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Committee and Members Sections 4-5 minister of the Crown, a minister of state or a parliamentary secretary. Members (2) The Committee is to consist of not more than three members who are members of the Senate and not more than eight members who are members of the House of Commons. Not more than five Committee members who are members of the House of Commons may be members of the government party. Not a committee of Parliament (3) The Committee is not a committee of either House of Parliament or of both Houses. Appointment of members 5 (1) The members of the Committee are to be appointed by the Governor in Council, on the recommendation of the Prime Minister, to hold office during pleasure until the dissolution of Parliament following their appointment. Nomination deadline (1.1) After a general election, the members of the Committee are to be appointed within 60 days after the day on which Parliament is summoned to sit. Consultation (2) A member of the Senate may be appointed to the Committee only after the Prime Minister has consulted with the persons referred to in paragraphs 62(a) and (b) of the Parliament of Canada Act and the leader of every caucus and of every recognized group in the Senate. Members of other parties (3) A member of the House of Commons who belongs to a party that is not the government party and that has a recognized membership of 12 or more persons in that House may be appointed to the Committee only after the Prime Minister has consulted with the leader of that party. Ceasing to be member (4) A member of the Committee ceases to be a member on being appointed a minister of the Crown, a minister of state or a parliamentary secretary or on ceasing to be a member of the Senate or the House of Commons. Resignation (5) A member may resign by notifying the Prime Minister in writing of their intention to resign and the member ceases to be a member on the day on which the Prime 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Committee and Members Sections 5-8 Minister receives the notification or on the date specified in the notification, whichever is later. Designation of Chair 6 (1) The Governor in Council is to designate the Chair of the Committee from among the members of the Committee, on the recommendation of the Prime Minister. Absence or incapacity (2) If the Chair is absent or incapacitated or the office of Chair is vacant, the Committee may designate one of its other members to act as Chair, but the member must not be so designated for more than 90 days without the Governor in Council’s approval. Expenses 7 Each member of the Committee is entitled to be paid, in accordance with Treasury Board directives, reasonable travel and living expenses incurred by the member in the exercise of their powers or the performance of their duties or functions. Mandate of Committee Review of national security matters 8 (1) The mandate of the Committee is to review (a) the legislative, regulatory, policy, administrative and financial framework for national security and intelligence; (b) any activity carried out by a department that relates to national security or intelligence, unless the activity is an ongoing operation and the appropriate Minister determines that the review would be injurious to national security; and (c) any matter relating to national security or intelligence that a minister of the Crown refers to the Committee. Review injurious to national security (2) If the appropriate Minister determines that a review would be injurious to national security, he or she must inform the Committee of his or her determination and the reasons for it. Review no longer injurious (3) If the appropriate Minister determines that the review would no longer be injurious to national security or if the appropriate Minister is informed that the activity is 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Mandate of Committee Sections 8-12 no longer ongoing, he or she must inform the Committee that the review may be conducted. Cooperation 9 The Committee and each review body are to take all reasonable steps to cooperate with each other to avoid any unnecessary duplication of work by the Committee and that review body in relation to the fulfilment of their respective mandates. Security and Confidentiality Compliance with security requirements 10 Each member of the Committee must (a) obtain and maintain the necessary security clearance from the Government of Canada; (b) take the oath or solemn affirmation set out in the schedule; and (c) comply with the procedures and practices set out in the regulations. Disclosure prohibited 11 (1) Subject to subsection (2), a member or former member of the Committee, the executive director or a former executive director of the Secretariat or a person who is or was engaged by the Secretariat must not knowingly disclose any information that they obtained, or to which they had access, in the course of exercising their powers or performing their duties or functions under this Act and that a department is taking measures to protect. Exceptions (2) A person referred to in subsection (1) may disclose information referred to in that subsection for the purpose of exercising their powers or performing their duties or functions under this Act or as required by any other law. Parliamentary privilege 12 (1) Despite any other law, no member or former member of the Committee may claim immunity based on parliamentary privilege in a proceeding against them in relation to a contravention of subsection 11(1) or of a provision of the Security of Information Act or in relation to any other proceeding arising from any disclosure of information that is prohibited under that subsection. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Security and Confidentiality Sections 12-14 Evidence (2) A statement made by a member or former member of the Committee before either House of Parliament or a committee of the Senate, of the House of Commons or of both Houses of Parliament is admissible in evidence against them in a proceeding referred to in subsection (1). Access to Information Right of access 13 (1) Despite any other Act of Parliament but subject to sections 14 and 16, the Committee is entitled to have access to any information that is under the control of a department and that is related to the fulfilment of the Committee’s mandate. Protected information (2) The information includes information that is protected by litigation privilege or by solicitor-client privilege or the professional secrecy of advocates and notaries. Inconsistency or conflict (3) In the event of any inconsistency or conflict between subsection (1) and any provision of an Act of Parliament other than this Act, subsection (1) prevails to the extent of the inconsistency or conflict. Exceptions 14 The Committee is not entitled to have access to any of the following information: (a) a confidence of the Queen’s Privy Council for Canada, as defined in subsection 39(2) of the Canada Evidence Act; (b) information the disclosure of which is described in subsection 11(1) of the Witness Protection Program Act; (c) the identity of a person who was, is or is intended to be, has been approached to be, or has offered or agreed to be, a confidential source of information, intelligence or assistance to the Government of Canada, or the government of a province or of any state allied with Canada, or information from which the person’s identity could be inferred; (d) information relating directly to an ongoing investigation carried out by a law enforcement agency that may lead to a prosecution. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Access to Information Sections 15-16 Request for information 15 (1) If the Committee is entitled to have access to information that is under the control of a department, the Committee may make a request to the appropriate Minister for that department that the information be provided to the Committee. Exception (2) If the Committee requests information that is in respect of an identifiable person or entity, that has been received or collected by the Financial Transactions and Reports Analysis Centre of Canada under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and that has been disclosed to a department under subsection 55(3), 55.1(1), 65(1), 65.01(1) or 65.02(1) of that Act, the Committee may make the request only to the appropriate Minister for that department. Department — parent Crown corporation (2.1) If the requested information is under the control of a department that is a parent Crown corporation, the department must, at the request of the appropriate Minister, provide the information to that Minister. Compliance (2.2) Compliance by a department with subsection (2.1) is deemed to be in the best interests of the department. Provision of information (3) After the appropriate Minister receives the request, he or she must provide or cause to be provided to the Committee, in a timely manner, the requested information to which it is entitled to have access. Information provided orally (4) The appropriate Minister or officials of the department may appear before the Committee to provide the information orally. Refusal of information 16 (1) The appropriate Minister for a department may refuse to provide information to which the Committee would, but for this section, otherwise be entitled to have access and that is under the control of that department, but only if he or she is of the opinion that (a) the information constitutes special operational information, as defined in subsection 8(1) of the Security of Information Act; and (b) provision of the information would be injurious to national security. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Access to Information Sections 16-20 Reasons (2) If the appropriate Minister refuses to provide information under subsection (1), he or she must inform the Committee of his or her decision and the reasons for the decision. Review bodies informed of decision (3) If the appropriate Minister makes the decision in respect of any of the following information, he or she must provide the decision and reasons to, (a) in the case of information under the control of the Royal Canadian Mounted Police, the Civilian Review and Complaints Commission for the Royal Canadian Mounted Police; (b) in the case of information under the control of the Communications Security Establishment, the Commissioner of the Communications Security Establishment; and (c) in the case of information under the control of the Canadian Security Intelligence Service, the Security Intelligence Review Committee. Procedure Meetings — call of Chair 17 The Committee is to meet at the call of the Chair. Meetings held in private 18 Meetings of the Committee are to be held in private if any information that a department is taking measures to protect is likely to be disclosed during the course of the meeting or if the Chair considers it to be otherwise necessary. Voting 19 The Chair may vote at meetings of the Committee only in the case of a tie. Procedure 20 Subject to the provisions of this Act and the regulations, the Committee may determine the procedure to be followed in the exercise of any of its powers or the performance of any of its duties or functions, including in respect of the appearance of persons before the Committee. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Reports Section 21 Reports Annual report 21 (1) Each year the Committee must submit to the Prime Minister a report of the reviews it conducted during the preceding year. The report must contain (a) the Committee’s findings; (b) its recommendations, if any; (c) any summary referred to in subsection (3); and (d) the number of times in the preceding year that an appropriate Minister (i) determined that a review referred to in paragraph 8(1)(b) would be injurious to national security, and (ii) decided to refuse to provide information under subsection 16(1). Special report (2) If, in the Committee’s opinion, a special report on any matter related to its mandate is necessary, it may, at any time, submit such a report to the Prime Minister and the minister concerned. Summary of special report (3) The Committee may prepare a summary of a special report and, on submitting the report, must notify the Prime Minister of its intention to do so. Special report not to be tabled (4) Subsection (5) does not apply to a special report that is the subject of a notification under subsection (3) and that report is not to be laid before either House of Parliament. Direction to submit revised report (5) If, after consulting the Chair of the Committee, the Prime Minister is of the opinion that information in an annual or special report is information the disclosure of which would be injurious to national security, national defence or international relations or is information that is protected by litigation privilege or by solicitor-client privilege or the professional secrecy of advocates and notaries, the Prime Minister may direct the Committee to submit to the Prime Minister a revised version of the annual or special report that does not contain that information. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Reports Sections 21-23 Revised version of report (5.1) If the Committee is directed by the Prime Minister to submit a revised version, the revised version must be clearly identified as a revised version and must indicate the extent of, and the reasons for, the revisions. Tabling (6) Subject to subsection (4), the Prime Minister must cause to be laid before each House of Parliament, on any of the first 30 days on which that House is sitting after a report is submitted under subsection (1) or (2), a copy of the report or, if the Committee was directed to submit a revised version, a copy of the revised version. Referral (7) After it is tabled, the annual or special report stands referred to (a) the Standing Committee on National Security and Defence of the Senate or, if there is not a Standing Committee on National Security and Defence, the appropriate committee of the Senate, as determined by its rules; and (b) the Standing Committee on Public Safety and National Security of the House of Commons or, if there is not a Standing Committee on Public Safety and National Security, the appropriate committee of the House of Commons, as determined by its rules. Review Bodies Provision of information to Committee 22 (1) Despite any provision of any other Act of Parliament — including section 45.47 of the Royal Canadian Mounted Police Act — but subject to subsection (2), a review body may provide to the Committee information that is under its control and that is related to the fulfilment of the Committee’s mandate. Exceptions (2) The review body must not provide to the Committee (a) information that is referred to in section 14; or (b) information that is the subject of a decision that has been provided to the review body under subsection 16(3). Provision of information to review bodies 23 The Committee may provide, 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Review Bodies Sections 23-26 (a) to the Civilian Review and Complaints Commission for the Royal Canadian Mounted Police, information that is obtained from — or that is created by the Committee from information obtained from — the Royal Canadian Mounted Police and that is related to the fulfilment of that review body’s mandate; (b) to the Commissioner of the Communications Security Establishment, information that is obtained from — or that is created by the Committee from information obtained from — the Communications Security Establishment and that is related to the fulfilment of that review body’s mandate; or (c) to the Security Intelligence Review Committee, information that is obtained from — or that is created by the Committee from information obtained from — the Canadian Security Intelligence Service and that is related to the fulfilment of that review body’s mandate. Secretariat Secretariat established 24 (1) The Secretariat of the National Security and Intelligence Committee of Parliamentarians is established. Role (2) The Secretariat is to assist the Committee in fulfilling its mandate. Office (3) The head office of the Secretariat is to be in the National Capital Region as described in the schedule to the National Capital Act. Executive director 25 (1) There is to be an executive director of the Secretariat, who is to be appointed by the Governor in Council to hold office during pleasure for a term of up to five years. The executive director is eligible to be reappointed on the expiry of a first or subsequent term of office. Deputy head (2) The executive director has the rank and all the powers of a deputy head of a department. Absence or incapacity 26 If the executive director is absent or incapacitated or the office of executive director is vacant, the Minister designated under section 3 may designate another person to act as executive director, but a person must not be so designated for more than 90 days without the Governor in Council’s approval. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Secretariat Sections 27-31.1 Remuneration and expenses 27 (1) The executive director is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and living expenses incurred in the exercise of their powers or the performance of their duties or functions while absent from their ordinary place of work. Compensation (2) The executive director is deemed to be a person employed in the public service for the purposes of the Public Service Superannuation Act and to be employed in the federal public administration for the purposes of the Government Employees Compensation Act and any regulations made under section 9 of the Aeronautics Act. Chief executive officer 28 The executive director is the chief executive officer of the Secretariat and has the control and management of the Secretariat and all matters connected with it. Contracts, etc. 29 The executive director may enter into contracts, memoranda of understanding or other arrangements, including contracts to engage the services of legal counsel or other persons having professional, technical or specialized knowledge to advise or assist the Committee or any of its members. Employees 30 The employees of the Secretariat are to be appointed in accordance with the Public Service Employment Act. General Provisions Final decision 31 (1) The appropriate Minister’s determination that a review referred to in paragraph 8(1)(b) would be injurious to national security or the appropriate Minister’s decision to refuse to provide information under subsection 16(1) is final. Committee’s response (2) If the Committee is dissatisfied with the determination or the decision, the Committee is not to bring the matter before the courts, but it may note its dissatisfaction in a report referred to in section 21. Compliance of activity 31.1 The Committee must inform the appropriate Minister and the Attorney General of Canada of any activity 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act General Provisions Sections 31.1-35 that is carried out by a department and is related to national security or intelligence and that, in the Committee’s opinion, may not be in compliance with the law. Expenses — appearance before Committee 32 Subject to the regulations, a person is entitled to be paid reasonable travel and living expenses incurred as a result of their appearance before the Committee. Regulations 33 The Governor in Council may make regulations (a) respecting the procedures and practices for the secure handling, storage, transportation, transmission and destruction of information or documents provided to or created by the Committee; (b) respecting the procedure to be followed by the Committee in the exercise of any of its powers or the performance of any of its duties or functions; (c) respecting the expenses referred to in section 32; and (d) generally for carrying out the purposes and provisions of this Act. Review of Act after five years 34 Five years after the day on which this Act comes into force, a comprehensive review of the provisions and operation of the Act is to be undertaken by the committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established by the Senate or the House of Commons, or by both Houses of Parliament, as the case may be, for that purpose. Consequential Amendments R.S., c. A-1 Access to Information Act 35 The Access to Information Act is amended by adding the following after section 16.5: Secretariat of National Security and Intelligence Committee of Parliamentarians 16.6 The Secretariat of the National Security and Intelligence Committee of Parliamentarians shall refuse to disclose any record requested under this Act that contains information obtained or created by it or on its behalf in the course of assisting the National Security and Intelligence Committee of Parliamentarians in fulfilling its mandate. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Consequential Amendments Access to Information Act Sections 36-40 36 Schedule I to the Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”: Secretariat of the National Security and Intelligence Committee of Parliamentarians Secrétariat du Comité des parlementaires sur la sécurité nationale et le renseignement R.S., c. F-11 Financial Administration Act 37 Schedule I.1 to the Financial Administration Act is amended by adding, in alphabetical order in column I, a reference to Secretariat of the National Security and Intelligence Committee of Parliamentarians Secrétariat du Comité des parlementaires sur la sécurité nationale et le renseignement and a corresponding reference in column II to “Leader of the Government in the House of Commons”. 38 Schedule IV to the Act is amended by adding the following in alphabetical order: Secretariat of the National Security and Intelligence Committee of Parliamentarians Secrétariat du Comité des parlementaires sur la sécurité nationale et le renseignement 39 Part III of Schedule VI to the Act is amended by adding, in alphabetical order in column I, a reference to Secretariat of the National Security and Intelligence Committee of Parliamentarians Secrétariat du Comité des parlementaires sur la sécurité nationale et le renseignement and a corresponding reference in column II to “Executive Director”. R.S., c. O-5; 2001, c. 41, s. 25 Security of Information Act 2001, c. 41, s. 29; 2003, c. 22, par. 224(z.76)(E) 40 (1) Paragraph (a) of the definition person permanently bound to secrecy in subsection 8(1) of the French version of the Security of Information Act is replaced by the following: 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Consequential Amendments Security of Information Act Sections 40-43 a) Le membre ou l’employé — ancien ou actuel — d’un ministère, d’un secteur ou d’un organisme de l’administration publique fédérale mentionné à l’annexe; (2) The definition person permanently bound to secrecy in subsection 8(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) a current or former member of the National Security and Intelligence Committee of Parliamentarians; or 2001, c. 41, s. 29 (3) Paragraph (b) of the definition person permanently bound to secrecy in subsection 8(1) of the French version of the Act is replaced by the following: b) la personne qui a reçu signification à personne de l’avis mentionné au paragraphe 10(1) ou qui a été informée de sa délivrance conformément aux règlements pris en vertu du paragraphe 11(2). (person permanently bound to secrecy) 41 The schedule to the Act is amended by adding the following in alphabetical order: Secretariat of the National Security and Intelligence Committee of Parliamentarians Secrétariat du Comité des parlementaires sur la sécurité nationale et le renseignement R.S., c. P-1 Parliament of Canada Act 42 Section 33 of the Parliament of Canada Act is amended by adding the following after subsection (3): National Security and Intelligence Committee of Parliamentarians (3.1) Despite anything in this Division, a person is not rendered ineligible to be a member of the House of Commons, or disqualified from sitting or voting in that House, by reason only that the person is a member of the National Security and Intelligence Committee of Parliamentarians. 43 Section 62.3 of the Act is amended by adding the following after subsection (2): 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Consequential Amendments Parliament of Canada Act Sections 43-45 Members of National Security and Intelligence Committee of Parliamentarians (3) For the fiscal year commencing on April 1, 2016, there shall be paid to the following members of the Senate or the House of Commons the following additional annual allowances: (a) the member of the Senate or the House of Commons who is the Chair of the National Security and Intelligence Committee of Parliamentarians, $42,200; and (b) each member of the Senate or the House of Commons who is a member of that Committee, other than the Chair, $11,900. Subsequent fiscal years (4) The additional annual allowance that shall be paid for each fiscal year subsequent to the fiscal year referred to in subsection (3) to a member of the Senate or the House of Commons referred to in that subsection is the additional annual allowance for the previous fiscal year plus the amount obtained by multiplying that additional annual allowance by the index described in section 67.1 for the previous calendar year. 2005, c. 16, par. 21(3)(a); 2013, c. 40, par. 237(1)(m) 44 Section 67.1 of the Act is replaced by the following: Index 67.1 The index referred to in paragraph 55.1(2)(b) and subsections 62.1(2), 62.2(2) and 62.3(2) and (4) for a calendar year is the index of the average percentage increase in base-rate wages for the calendar year, resulting from major settlements negotiated with bargaining units of 500 or more employees in the private sector in Canada, as published by the Department of Employment and Social Development within three months after the end of that calendar year. R.S., c. P-21 Privacy Act 45 The Privacy Act is amended by adding the following after section 22.3: Secretariat of National Security and Intelligence Committee of Parliamentarians 22.4 The Secretariat of the National Security and Intelligence Committee of Parliamentarians shall refuse to disclose personal information requested under subsection 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Consequential Amendments Privacy Act Sections 45-48 12(1) that was obtained or created by it or on its behalf in the course of assisting the National Security and Intelligence Committee of Parliamentarians in fulfilling its mandate. 46 The schedule to the Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”: Secretariat of the National Security and Intelligence Committee of Parliamentarians Secrétariat du Comité des parlementaires sur la sécurité nationale et le renseignement 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act 47 The Proceeds of Crime (Money Laundering) and Terrorist Financing Act is amended by adding the following after section 53.3: National Security and Intelligence Committee of Parliamentarians Act 53.4 The Director shall, at the request of the Minister or an officer of the Department of Finance, disclose to the Minister or the officer, as the case may be, in the form and manner that the Minister or officer directs, any information under the control of the Centre that would assist the Minister in exercising his or her powers or performing his or her duties or functions under the National Security and Intelligence Committee of Parliamentarians Act. 2006, c. 9, s. 2 Conflict of Interest Act 48 Paragraph (d) of the definition public office holder in subsection 2(1) of the Conflict of Interest Act is amended by striking out “and” at the end of subparagraph (v), by adding “and” at the end of subparagraph (vi) and by adding the following after subparagraph (vi): (vii) a member of the National Security and Intelligence Committee of Parliamentarians; 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act Coming into Force Section 49 Coming into Force Order in council 49 This Act comes into force on a day to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 15: National Security and Intelligence Committee of Parliamentarians Act SCHEDULE Oath or Solemn Affirmation SCHEDULE (Paragraph 10(b)) Oath or Solemn Affirmation I, ....................., swear (solemnly affirm) that I will be faithful and bear true loyalty to Canada and to its people, whose democratic beliefs I share, whose rights and freedoms I respect and whose laws I will uphold and obey. I further swear (solemnly affirm) that I will, to the best of my ability, discharge my responsibilities as a member of the National Security and Intelligence Committee of Parliamentarians and will not communicate or use without due authority any information obtained in confidence by me in that capacity. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www

First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 STATUTES OF CANADA 2017 CHAPTER 14 An Act to amend the Citizenship Act and to make consequential amendments to another Act ASSENTED TO JUNE 19, 2017 BILL C-6 SUMMARY This enactment amends the Citizenship Act to, among other things, (a) remove the grounds for the revocation of Canadian citizenship that relate to national security; (b) remove the requirement that an applicant intend, if granted citizenship, to continue to reside in Canada; (c) reduce the number of days during which a person must have been physically present in Canada before applying for citizenship and provide that, in the calculation of the length of physical presence, the number of days during which the person was physically present in Canada before becoming a permanent resident may be taken into account; (d) limit the requirement to demonstrate knowledge of Canada and of one of its official languages to applicants between the ages of 18 and 54; (e) authorize the Minister to seize any document that he or she has reasonable grounds to believe was fraudulently or improperly obtained or used or could be fraudulently or improperly used; (f) change the process for the revocation of Canadian citizenship on the grounds of false representation, fraud or knowingly concealing material circumstances; and (g) remove the requirement that an applicant be 18 years of age or over for citizenship to be granted under subsection 5(1) of that Act. It also makes consequential amendments to the Immigration and Refugee Protection Act. ii 64-65-66 ELIZABETH II CHAPTER 14 An Act to amend the Citizenship Act and to make consequential amendments to another Act [Assented to 19th June, 2017] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. C-29 Citizenship Act 1 (0.1) Paragraph 5(1)(b) of the Citizenship Act is repealed. 2014, c. 22, s. 3(1) (1) The portion of paragraph 5(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) is a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, has, subject to the regulations, no unfulfilled conditions under that Act relating to his or her status as a permanent resident and has 2014, c. 22, s. 3(1) (2) Subparagraph 5(1)(c)(i) of the Act is replaced by the following: (i) been physically present in Canada for at least 1,095 days during the five years immediately before the date of his or her application, and 2014, c. 22, s. 3(1) (3) Subparagraph 5(1)(c)(ii) of the Act is repealed. 2014, c. 22, s. 3(1) (4) Subparagraph 5(1)(c)(iii) of the Act is replaced by the following: (iii) met any applicable requirement under the Income Tax Act to file a return of income in respect of three taxation years that are fully or partially within 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Section 1 the five years immediately before the date of his or her application; 2014, c. 22, s. 3(1) (5) Paragraph 5(1)(c.1) of the Act is repealed. 2014, c. 22, s. 3(1) (6) Paragraphs 5(1)(d) and (e) of the Act are replaced by the following: (d) if 18 years of age or more but less than 55 years of age at the date of his or her application, has an adequate knowledge of one of the official languages of Canada; (e) if 18 years of age or more but less than 55 years of age at the date of his or her application, demonstrates in one of the official languages of Canada that he or she has an adequate knowledge of Canada and of the responsibilities and privileges of citizenship; and (7) Section 5 of the Act is amended by adding the following after subsection (1): Length of physical presence — calculation (1.001) For the purpose of subparagraph (1)(c)(i), the length of physical presence is calculated in the following manner: (a) for every day during which the person was physically present in Canada as a temporary resident or protected person under the Immigration and Refugee Protection Act before becoming a permanent resident, the person accumulates half of a day of physical presence, up to a maximum of 365 days; and (b) for every day during which the person has been physically present in Canada since becoming a permanent resident, the person accumulates one day of physical presence. (7.1) Section 5 of the Act is amended by adding the following after subsection (1.03): Application — minor (1.04) When the application referred to in paragraph (1)(a) is in respect of a minor, it must be (a) made by a person who has custody of the minor or who is empowered to act on their behalf by virtue of a court order or written agreement or by operation of law, unless otherwise ordered by a court; and 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Section 1 (b) countersigned by the minor, if the minor has attained the age of 14 years on or before the day on which the application is made and is not prevented from understanding the significance of the application because of a mental disability. Application made by minor (1.05) If the Minister waives the requirement set out in paragraph (1.04)(a) under subparagraph (3)(b)(v), the application referred to in paragraph (1)(a) may be made by the minor. 2014, c. 22, s. 3(2) (8) Subsection 5(1.1) of the Act is repealed. 2014, c. 22, s. 3(5) (9) Subsection 5(2) of the Act is amended by adding “and” at the end of paragraph (a) and by repealing paragraphs (c) and (d). 2014, c. 22, s. 3(6) (10) Paragraph 5(3)(a) of the Act is replaced by the following: (a) in the case of any person, the requirements of paragraph (1)(d) or (e); 2014, c. 22, s. 3(6) (11) Subparagraph 5(3)(b)(i) of the Act is repealed. (11.1) Subparagraph 5(3)(b)(iii) of the Act is repealed. (11.2) Paragraph 5(3)(b) of the Act is amended by adding “or” at the end of subparagraph (iv) and by adding the following after subparagraph (iv): (v) the requirement respecting who may make an application in respect of a minor set out in paragraph (1.04)(a). 2014, c. 22, s. 3(6) (12) Subsection 5(3) of the Act is amended by adding “and” at the end of paragraph (b) and by repealing paragraph (b.1). (13) Section 5 of the Act is amended by adding the following after subsection (3): Disabled persons (3.1) For the purposes of this section, if an applicant for citizenship is a disabled person, the Minister shall take into consideration the measures that are reasonable to accommodate the needs of that person. 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Sections 1-3 (14) Subsection 5(4) of the Act is replaced by the following: Special cases (4) Despite any other provision of this Act, the Minister may, in his or her discretion, grant citizenship to any person to alleviate cases of statelessness or of special and unusual hardship or to reward services of an exceptional value to Canada. 2014, c. 22, s. 7(2) 2 Subsections 9(2.1) and (2.2) of the Act are replaced by the following: Exception (2.1) No application for renunciation may be made if the Minister has provided the applicant with a notice referred to in subsection 10(3) or has commenced an action under subsection 10.1(1) for a declaration in respect of the applicant until the Minister provides the applicant with his or her decision under subsection 10(5) or a final judgment has been rendered in that action, as the case may be. Processing of application suspended (2.2) If an application for renunciation is made and the Minister subsequently provides the applicant with a notice referred to in subsection 10(3) or commences an action under subsection 10.1(1) for a declaration in respect of the applicant, the processing of that application is suspended until the Minister provides the applicant with his or her decision under subsection 10(5) or a final judgment has been rendered in that action, as the case may be. 2014, c. 22, s. 8 3 (1) Subsection 10(2) of the Act is repealed. (2) Subsection 10(3) of the Act is replaced by the following: Notice (3) Before a person’s citizenship or renunciation of citizenship may be revoked, the Minister shall provide the person with a written notice that (a) advises the person of his or her right to make written representations; (b) specifies the form and manner in which the representations must be made; 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Section 3 (c) sets out the specific grounds and reasons, including reference to materials, on which the Minister is relying to make his or her decision; and (d) advises the person that the case will be referred to the Court unless the person requests that the case be decided by the Minister. Representations and request for decision by Minister (3.1) The person may, within 60 days after the day on which the notice is sent, or within any extended time that the Minister may allow for special reasons, (a) make written representations with respect to the matters set out in the notice, including any considerations respecting his or her personal circumstances — such as the best interests of a child directly affected — that warrant special relief in light of all the circumstances of the case and whether the decision will render the person stateless; and (b) request that the case be decided by the Minister. Consideration of representations (3.2) The Minister shall consider any representations received from the person pursuant to paragraph (3.1)(a) before making a decision. (3) The Act is amended by adding the following after subsection 10(4): Referral to Court (4.1) The Minister shall refer the case to the Court under subsection 10.1(1) unless (a) the person has made written representations under paragraph (3.1)(a) and the Minister is satisfied (i) on a balance of probabilities that the person has not obtained, retained, renounced or resumed his or her citizenship by false representation or fraud or by knowingly concealing material circumstances, or (ii) that considerations respecting the person’s personal circumstances warrant special relief in light of all the circumstances of the case; or (b) the person has made a request under paragraph (3.1)(b). 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Sections 4-5.1 2014, c. 22, s. 8 4 (1) Subsection 10.1(1) of the Act is replaced by the following: Revocation for fraud — declaration of Court 10.1 (1) Unless a person makes a request under paragraph 10(3.1)(b), the person’s citizenship or renunciation of citizenship may be revoked only if the Minister seeks a declaration, in an action that the Minister commences, that the person has obtained, retained, renounced or resumed his or her citizenship by false representation or fraud or by knowingly concealing material circumstances and the Court makes such a declaration. (2) Subsections 10.1(2) and (3) of the Act are replaced by the following: Effect of declaration (3) A declaration made under subsection (1) has the effect of revoking a person’s citizenship or renunciation of citizenship. (3) Subsection 10.1(4) of the Act is replaced by the following: Proof (4) For the purposes of subsection (1), if the Minister seeks a declaration that the person has obtained, retained, renounced or resumed his or her citizenship by false representation or fraud or by knowingly concealing material circumstances, with respect to a fact described in section 34, 35 or 37 of the Immigration and Refugee Protection Act, the Minister need prove only that the person has obtained, retained, renounced or resumed his or her citizenship by false representation or fraud or by knowingly concealing material circumstances. 2014, c. 22, s. 8 5 Sections 10.3 and 10.4 of the Act are repealed. 5.1 Subsection 10.5(1) of the Act is replaced by the following: Inadmissibility 10.5 (1) On the request of the Minister of Public Safety and Emergency Preparedness, the Minister shall — in the originating document that commences an action under subsection 10.1(1) on the basis that the person obtained, retained, renounced or resumed his or her citizenship by false representation or fraud or by knowingly concealing material circumstances, with respect to a fact described in section 34, 35 or 37 of the Immigration and Refugee 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Sections 5.1-9 Protection Act other than a fact that is also described in paragraph 36(1)(a) or (b) or (2)(a) or (b) of that Act — seek a declaration that the person who is the subject of the action is inadmissible on security grounds, on grounds of violating human or international rights or on grounds of organized criminality under, respectively, subsection 34(1), paragraph 35(1)(a) or (b) or subsection 37(1) of the Immigration and Refugee Protection Act. 2014, c. 22, s. 8 6 Section 10.6 of the Act is replaced by the following: No appeal from interlocutory judgment 10.6 Despite paragraph 27(1)(c) of the Federal Courts Act, no appeal may be made from an interlocutory judgment made with respect to a declaration referred to in subsection 10.1(1) or 10.5(1). 2014, c. 22, s. 9(2) 7 Subsection 11(1) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (c) and by repealing paragraph (e). 2014, c. 22, s. 12(1) 8 Paragraph 14(1)(a) of the Act is replaced by the following: (a) subparagraph 5(1)(c)(i), in the case of an application for citizenship under subsection 5(1); 2014, c. 22, s. 17 9 (1) The portion of section 21 of the English version of the Act before paragraph (c) is replaced by the following: Periods not counted as physical presence 21 Despite anything in this Act, no period may be counted as a period of physical presence for the purpose of this Act during which a person, under any enactment in force in Canada, (a) has been under a probation order; (b) has been a paroled inmate; or (2) Paragraph 21(c) of the Act is replaced by the following: (c) has served a term of imprisonment. 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Sections 10-13 R.S., c. 30 (3rd Supp.), s. 11(1) 10 (1) The portion of paragraph 22(1)(a) of the English version of the Act before subparagraph (iii) is replaced by the following: (a) while the person, under any enactment in force in Canada, (i) is under a probation order, (ii) is a paroled inmate, or R.S., c. 30 (3rd Supp.), s. 11(1) (2) Subparagraph 22(1)(a)(iii) of the Act is replaced by the following: (iii) is serving a term of imprisonment; 2014, c. 22, s. 19(2) (3) Subsection 22(1) of the Act is amended by adding “or” at the end of paragraph (e.2) and by replacing paragraphs (f) and (g) with the following: (f) if, during the 10 years immediately before the person’s application, the person ceased to be a citizen under paragraph 10(1)(a), as it read immediately before the coming into force of section 8 of the Strengthening Canadian Citizenship Act, or under subsection 10(1) or 10.1(3). 11 The Act is amended by adding the following after section 23.1: Seizure 23.2 The Minister may seize and detain any document that is provided to him or her for the purposes of this Act if he or she has reasonable grounds to believe that it was fraudulently or improperly obtained or used or that the measure is necessary to prevent its fraudulent or improper use. 12 Subsection 27(1) of the Act is amended by adding the following after paragraph (i.1): (i.2) prescribing the procedures to be followed in relation to a document that may be seized under section 23.2, including in relation to its seizure, storage, return and disposition; 2014, c. 22, s. 26 13 The portion of paragraph 27.2(c) of the Act before subparagraph (i) is replaced by the following: 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Citizenship Act Sections 13-17 (c) with regard to the requirements of paragraphs 5(1)(d) and (e), Transitional Provisions Presence in Canada — pending applications 14 Paragraphs 5(1)(c) and 14(1)(a) of the Citizenship Act, as they read immediately before the day on which subsection 1(1) comes into force, apply to a person whose application for citizenship was made on or after June 11, 2015 but before the day on which that subsection comes into force and has not been finally disposed of before the day on which that subsection comes into force. Presence in Canada — pending applications (subsections 1(1) and (2)) 15 If subsection 1(1) comes into force before subsection 1(2), then paragraph 5(1)(c) of the Citizenship Act, as it read immediately before the day on which subsection 1(2) comes into force, applies to a person whose application for citizenship is made on or after the day on which subsection 1(1) comes into force but before the day on which subsection 1(2) comes into force and has not been finally disposed of before the day on which subsection 1(2) comes into force. Intention to reside in Canada — citizenship granted 16 Paragraph 5(1)(c.1) of the Citizenship Act, as it read immediately before the day on which subsection 1(5) comes into force, is deemed never to have applied to a person whose application for citizenship was made on or after June 11, 2015 and who was granted citizenship before the day on which that subsection comes into force. Intention to reside in Canada — pending applications 17 Paragraph 5(1)(c.1) of the Citizenship Act, as it read immediately before the day on which subsection 1(5) comes into force, does not apply to a person whose application for citizenship was made on or after June 11, 2015 but before the day on which that subsection comes into force and has not been finally disposed of before the day on which that subsection comes into force. 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Transitional Provisions Sections 17.1-19.1 Knowledge of Canada and official languages 17.1 Until the day on which subsection 1(6) comes into force, paragraphs 5(1)(d) and (e) of the Citizenship Act are replaced by the following: (d) if 18 years of age or more but less than 65 years of age at the date of his or her application, has an adequate knowledge of one of the official languages of Canada; (e) if 18 years of age or more but less than 65 years of age at the date of his or her application, demonstrates in one of the official languages of Canada that he or she has an adequate knowledge of Canada and of the responsibilities and privileges of citizenship; and Knowledge of Canada and official language — pending applications 18 Paragraphs 5(1)(d) and (e) of the Citizenship Act, as enacted by subsection 1(6), apply to a person whose application for citizenship was made on or after June 11, 2015 but before the day on which that subsection comes into force and has not been finally disposed of before the day on which that subsection comes into force. Knowledge of Canada and official language (minors) — pending applications 19 Paragraphs 5(2)(c) and (d) of the Citizenship Act, as they read immediately before the day on which subsection 1(9) comes into force, do not apply to a person whose application for citizenship was made on or after June 11, 2015 but before the day on which that subsection comes into force and has not been finally disposed of before the day on which that subsection comes into force. Decisions sent back for redetermination 19.1 (1) Any decision that is made under subsection 10(1) of the Citizenship Act as it read immediately before the day on which subsection 3(2) comes into force and that is set aside by the Federal Court and sent back for a redetermination on or after that day is to be determined in accordance with that Act as it reads on that day. Pending proceedings (2) A proceeding that is pending before the Federal Court before the day on which subsection 3(2) comes into force as a result of an action commenced under subsection 10.1(1) of the 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Transitional Provisions Sections 19.1-23 Citizenship Act is to be dealt with and disposed of in accordance with that Act as it read immediately before that day. Citizenship deemed not to have been revoked 20 A person whose citizenship was revoked under subsection 10(2) of the Citizenship Act, as it read immediately before the day on which section 3 comes into force, is deemed never to have had their citizenship revoked. Request — new procedure 20.1 If, before the day on which subsection 3(2) comes into force, a notice has been given to a person under subsection 10(3) of the Citizenship Act and a decision has not been made by the Minister before that day, the person may, within 30 days after that day, request to have the matter dealt with and disposed of as if the notice had been given under subsection 10(3) of that Act as it reads on that day. Intention to reside in Canada — citizenship granted (resumption) 21 Paragraph 11(1)(e) of the Citizenship Act, as it read immediately before the day on which section 7 comes into force, is deemed never to have applied to a person whose application for resumption of citizenship was made on or after June 11, 2015 and who was granted citizenship before the day on which that section comes into force. Intention to reside in Canada — pending applications (resumption) 22 Paragraph 11(1)(e) of the Citizenship Act, as it read immediately before the day on which section 7 comes into force, does not apply to a person whose application for resumption of citizenship was made on or after June 11, 2015 but before the day on which that section comes into force and has not been finally disposed of before the day on which that section comes into force. Persons serving term of imprisonment — pending applications 23 Paragraph 21(c) and subparagraph 22(1)(a)(iii) of the Citizenship Act, as enacted by subsections 9(2) and 10(2), respectively, apply to a person whose application has not been finally disposed of before the day on which section 9 comes into force. 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Prohibition on Taking Oath of Citizenship Sections 24-27 Prohibition on Taking Oath of Citizenship Prohibition — taking oath 24 Subsection 22(6) of the Citizenship Act applies to a person who made an application under subsection 5(1) or (2) or 11(1) of that Act before June 11, 2015 and who is required under that Act to take the oath of citizenship to become a citizen but has not done so before the day on which this section comes into force. 2001, c. 27 Consequential Amendments to the Immigration and Refugee Protection Act 2014, c. 22, s. 42 25 Subparagraph 40(1)(d)(iii) of the Immigration and Refugee Protection Act is replaced by the following: (iii) subsection 10.1(3) of the Citizenship Act, in the circumstances set out in section 10.2 of that Act. 2014, c. 22, s. 43 26 Paragraph 46(2)(c) of the Act is replaced by the following: (c) subsection 10.1(3) of the Citizenship Act, other than in the circumstances set out in section 10.2 of that Act. Coming into Force Order in council 27 (1) Subsections 1(1), (3) and (7) and section 8 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Subsections 1(2) and (4) come into force on a day to be fixed by order of the Governor in Council. Order in council (3) Subsections 1(6), (9) and (10) and section 13 come into force on a day to be fixed by order of the Governor in Council. 2015-2016-2017 Chapter 14: An Act to amend the Citizenship Act and to make consequential amendments to another Act Coming into Force Section 27 Order in council (3.1) Subsections 3(2) and (3) and 4(1) and (3) and section 5.1 come into force on a day to be fixed by order of the Governor in Council. Order in council (4) Sections 11 and 12 come into force on a day to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of Commons 2015-2016-2017 Disponible sur le site Web du Parlem http://www